Senate Bill 0676e1

    SB 676                                         First Engrossed



  1                      A bill to be entitled

  2         An act relating to taxation; amending s.

  3         220.03, F.S.; revising definitions relating to

  4         the income tax code to incorporate the most

  5         recent changes to the United States Internal

  6         Revenue Code; defining "citrus processing

  7         company"; amending s. 220.151, F.S.; allowing

  8         certain citrus processing companies to elect to

  9         determine the apportionment of their adjusted

10         federal income to this state solely by use of

11         the sales factor; providing for retroactive

12         application; providing an effective date.

13

14  Be It Enacted by the Legislature of the State of Florida:

15

16         Section 1.  Paragraph (n) of subsection (1) and

17  paragraph (c) of subsection (2) of section 220.03, Florida

18  Statutes, 1998 Supplement, are amended and a new subsection

19  (hh) is added to subsection (1) of that section to read:

20         220.03  Definitions.--

21         (1)  SPECIFIC TERMS.--When used in this code, and when

22  not otherwise distinctly expressed or manifestly incompatible

23  with the intent thereof, the following terms shall have the

24  following meanings:

25         (n)  "Internal Revenue Code" means the United States

26  Internal Revenue Code of 1986, as amended and in effect on

27  January 1, 1999 1998, except as provided in subsection (3).

28         (hh)  "Citrus processing company" means a corporation

29  which, during the 60-month period ending on December 31, 1997,

30  had derived more than 50 percent of its total gross receipts

31


                                  1

CODING: Words stricken are deletions; words underlined are additions.






    SB 676                                         First Engrossed



  1  from the processing of citrus products and the manufacture of

  2  juices.

  3         (2)  DEFINITIONAL RULES.--When used in this code and

  4  neither otherwise distinctly expressed nor manifestly

  5  incompatible with the intent thereof:

  6         (c)  Any term used in this code shall have the same

  7  meaning as when used in a comparable context in the Internal

  8  Revenue Code and other statutes of the United States relating

  9  to federal income taxes, as such code and statutes are in

10  effect on January 1, 1999 1998. However, if subsection (3) is

11  implemented, the meaning of any term shall be taken at the

12  time the term is applied under this code.

13         Section 2.  Subsection (3) is added to section 220.151,

14  Florida Statutes, to read:

15         220.151  Apportionment; methods for special

16  industries.--

17         (3)  For any taxable year beginning on or after January

18  1, 1999, a citrus processing company may, if required to

19  apportion its taxable net income pursuant to the three-factor

20  apportionment method set forth in s. 220.15(1), elect to have

21  such apportionment determined for that taxable year solely by

22  use of the sales factor, as set forth in s. 220.15(5). The

23  election shall be made by the filing of a return for the

24  taxable year utilizing this method.

25         Section 3.  This act shall take effect upon becoming a

26  law, and shall operate retroactively to January 1, 1999.

27

28

29

30

31


                                  2