Senate Bill 0888c1

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    Florida Senate - 1999                            CS for SB 888

    By the Committee on Fiscal Resource and Senator Horne





    314-1648-99

  1                      A bill to be entitled

  2         An act relating to tax administration;

  3         repealing s. 198.12, F.S., and amending ss.

  4         198.13, 198.23, 198.26, 198.32, 198.33, 198.39,

  5         F.S.; discontinuing the use of unnecessary

  6         estate tax returns for small estates that owe

  7         no tax; amending s. 199.106, F.S.; granting a

  8         credit against the intangibles tax to natural

  9         persons for an identical tax paid in another

10         state; creating s. 201.165, F.S.; granting a

11         credit against the documentary stamp tax for an

12         identical tax paid in another state; amending

13         s. 212.02, F.S.; amending the definition of the

14         term "retail sale" with respect to materials

15         that are incorporated into repaired motor

16         vehicles, airplanes, or boats; amending ss.

17         212.04, 212.12, 212.13, F.S., and creating s.

18         213.757, F.S.; increasing the criminal

19         penalties for willful violations of certain tax

20         provisions; amending s. 212.08, F.S.; amending

21         the exemption for electricity and steam used

22         for manufacturing; amending s. 213.27, F.S.;

23         authorizing the Department of Revenue to enter

24         into contracts with private vendors to develop

25         an automated case-tracking system; amending s.

26         213.67, F.S.; authorizing the Department of

27         Revenue to reduce the amount of an

28         administrative garnishment which is subject to

29         a freeze to the amount equal to the delinquent

30         amount; amending ss. 220.151, 220.21, 220.221,

31         220.222, F.S.; authorizing the Department of

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  1         Revenue to accept electronic or telephonic

  2         corporate income tax returns in lieu of written

  3         paper returns; providing an effective date.

  4

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

  6

  7         Section 1.  Section 198.12, Florida Statutes, is

  8  repealed effective January 1, 2000.

  9         Section 2.  Effective January 1, 2000, section 198.13,

10  Florida Statutes, is amended to read:

11         198.13  Tax return to be made in certain cases.--

12         (1)  The personal representative of every estate

13  required by the laws of the United States to file a federal

14  estate tax return shall file with the department, on or before

15  the last day prescribed by law for filing the initial federal

16  estate tax return for such estate, a return consisting of an

17  executed copy of the federal estate tax return and shall file

18  with such return all supplemental data, if any, as may be

19  necessary to determine and establish the correct tax under

20  this chapter.  Such return shall be made in the case of every

21  decedent who at the time of death was not a resident of the

22  United States and whose gross estate includes any real

23  property situate in the state, tangible personal property

24  having an actual situs in the state, and intangible personal

25  property physically present within the state.

26         (2)  Whenever it is made to appear to the department

27  that an estate that has filed a return owes no taxes provided

28  in this chapter, the department will issue to the personal

29  representative a certificate in writing to that effect, which

30  certificate will have the same force and effect as a receipt

31  showing payment. The certificate will be subject to record and

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  1  admissible in evidence in like manner as receipts showing

  2  payment of taxes. A fee of $5 will be paid to the department

  3  for each certificate so issued.

  4         (3)(2)  Every person required to file a return

  5  reporting a generation-skipping transfer under applicable

  6  federal statutes and regulations shall file with the

  7  Department of Revenue, on or before the last day prescribed

  8  for filing the federal return, a return consisting of a

  9  duplicate copy of the federal return.

10         Section 3.  Effective January 1, 2000, section 198.23,

11  Florida Statutes, is amended to read:

12         198.23  Personal liability of personal

13  representative.--If any personal representative shall make

14  distribution either in whole or in part of any of the property

15  of an estate to the heirs, next of kin, distributees,

16  legatees, or devisees without having paid or secured the tax

17  due the state under this chapter, or having obtained the

18  release of such property from the lien of such tax, either by

19  the department or pursuant to s. 198.32(2), he or she shall

20  become personally liable for the tax so due the state, or so

21  much thereof as may remain due and unpaid, to the full extent

22  of the full value of any property belonging to such person or

23  estate which may come into the personal representative's

24  hands, custody, or control.

25         Section 4.  Effective January 1, 2000, section 198.26,

26  Florida Statutes, is amended to read:

27         198.26  No discharge of personal representative until

28  tax is paid.--No final account of a personal representative of

29  the estate of a nonresident, nor of the estate of a resident

30  when the value of the gross estate wherever situate exceeds

31  $60,000 shall be allowed by any court unless and until such

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  1  account shows, and the judge of said court finds, that the tax

  2  imposed by the provisions of this chapter upon the personal

  3  representative, which has become payable, has been paid.  The

  4  certificate of the department of nonliability for the tax or

  5  its receipt for the amount of tax therein certified shall be

  6  conclusive in such proceedings as to the liability or the

  7  payment of the tax to the extent of said certificate. In the

  8  case of a nontaxable estate, the court may consider the

  9  affidavit prepared pursuant to s. 198.32(2) as evidence of the

10  nonliability for tax.

11         Section 5.  Effective January 1, 2000, section 198.32,

12  Florida Statutes, is amended to read:

13         198.32  Prima facie liability for tax.--

14         (1)  The estate of each decedent whose property is

15  subject to the laws of the state shall be deemed prima facie

16  liable for estate taxes under this chapter and shall be

17  subject to a lien therefor in such amount as may be later

18  determined to be due and payable on the estate as provided in

19  this chapter.  This presumption of liability shall begin on

20  the date of the death of the decedent and shall continue until

21  the full settlement of all taxes which may be found to be due

22  under this chapter, the settlement to be shown by receipts for

23  all taxes due to be issued by the department as provided for

24  in this chapter. Whenever it is made to appear to the

25  department that an estate is not subject to any tax under this

26  chapter, the department shall issue to the personal

27  representative, administrator, or curator, or to the heirs,

28  devisees, or legatees of the decedent, a certificate in

29  writing to that effect, showing such nonliability to tax,

30  which certificate of nonliability shall have the same force

31  and effect as a receipt showing payment.  The certificate of

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  1  nonliability shall be subject to record and admissible in

  2  evidence in like manner as receipts showing payment of taxes.

  3  A fee of $5 shall be paid to the department for each

  4  certificate so issued.

  5         (2)  Whenever an estate is not subject to tax under

  6  this chapter and is not required to file a return, the

  7  personal representative may execute an affidavit attesting

  8  that the estate is not taxable. The form of the affidavit will

  9  be prescribed by the department, and will include, but not be

10  limited to, statements regarding the decedent's domicile,

11  whether a federal estate tax return will be filed, and

12  acknowledgment of the personal representative's personal

13  liability under s. 198.23. Such affidavit shall be subject to

14  record and admissible in evidence to show nonliability for

15  tax.

16         Section 6.  Effective January 1, 2000, subsection (1)

17  of section 198.33, Florida Statutes, is amended to read:

18         198.33  Discharge of estate, notice of lien, limitation

19  on lien, etc.--

20         (1)  Where no receipt for the payment of taxes, or no

21  affidavit or certificate receipt of nonliability for taxes has

22  been issued or recorded as provided for in this chapter, the

23  property constituting the estate of the decedent in this state

24  shall be deemed fully acquitted and discharged of all

25  liability for estate and inheritance taxes under this chapter

26  after a lapse of 10 years from the date of the filing with the

27  department of notice of the decedent's death, or after a lapse

28  of 10 years from the date of the filing with the department of

29  an estate tax return, whichever date shall be earlier, unless

30  the department shall make out and file and have recorded in

31  the public records of the county wherein any part of the

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  1  estate of the decedent may be situated in this state, a notice

  2  of lien against the property of the estate, specifying the

  3  amount or approximate amount of taxes claimed to be due to the

  4  state under this chapter, which notice of lien shall continue

  5  said lien in force for an additional period of 5 years or

  6  until payment is made.  Such notice of lien shall be filed and

  7  recorded in the book of deeds in the office of the clerk of

  8  the circuit court; provided, where no receipt for the payment

  9  of taxes, or no affidavit or certificate of nonliability for

10  taxes, has been issued or recorded as provided for in this

11  chapter, the property constituting the estate of the decedent

12  in this state, if said decedent was a resident of this state

13  at the time of death, shall be deemed fully acquitted and

14  discharged of all liability for tax under this chapter after a

15  lapse of 10 years from the date of the death of the decedent,

16  unless the department shall make out and file and have

17  recorded notice of lien as herein provided, which notice shall

18  continue said lien in force against such property of the

19  estate as is situate in the county wherein said notice of lien

20  was recorded for an additional period of 5 years or until

21  payment is made.

22         Section 7.  Effective January 1, 2000, section 198.39,

23  Florida Statutes, is amended to read:

24         198.39  False statement in return; penalty.--Whoever

25  knowingly makes any false statement in any notice, affidavit,

26  or return required to be filed or made under this chapter is

27  guilty of a misdemeanor of the first degree, punishable as

28  provided in s. 775.082 or s. 775.083.

29         Section 8.  Subsections (2) and (3) of section 199.106,

30  Florida Statutes, are amended to read:

31         199.106  Credit for taxes imposed by other states.--

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  1         (2)  For intangible personal property that has a

  2  taxable situs in this state under s. 199.175(1) or any similar

  3  predecessor statute, a credit against the tax imposed by s.

  4  199.032 is allowed to a taxpayer, other than a natural person,

  5  in an amount equal to a like tax lawfully imposed and paid by

  6  that taxpayer on the same property in another state, territory

  7  of the United States, or the District of Columbia when the

  8  other taxing authority is also claiming situs under provisions

  9  similar or identical to those in s. 199.175(1) or any similar

10  predecessor statute.  For purposes of this subsection, "like

11  tax" means an ad valorem tax on intangible personal property

12  which is also subject to tax under s. 199.032.  The credit may

13  not exceed the tax imposed on the property under s. 199.032.

14  Proof of entitlement to such a credit must be made pursuant to

15  rules and forms adopted by the department.

16         (3)  The credits provided by this section subsections

17  (1) and (2) apply retroactively to December 31, 1979.

18  However, notwithstanding the retroactivity of these credit

19  provisions, this section does not reopen a closed period of

20  nonclaim under s. 215.26 or any other statute or extend the

21  period of nonclaim under s. 215.26 or any other statute.

22         Section 9.  Section 201.165, Florida Statutes, is

23  created to read:

24         201.165  Credit for tax paid to other states.--

25         (1)  With respect to each tax imposed by any section of

26  this chapter, a credit against the specific tax imposed by

27  that section is allowed in an amount equal to the amount of a

28  like tax lawfully imposed and paid on the same document or

29  instrument in another state or territory of the United States

30  or in the District of Columbia. As used in this subsection,

31  the term "like tax" means an excise tax on documents which is

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  1  in substance identical to the tax imposed by this chapter on

  2  the same document. The credit may not exceed the amount of the

  3  tax imposed on the document by this chapter. Proof of

  4  entitlement to the credit must be provided to the department.

  5  The department may adopt rules to implement this credit and

  6  designate forms that establish what proof is required.

  7         (2)  The credit provided by this section applies

  8  retroactively. Notwithstanding the retroactivity of this

  9  credit provision, this section does not reopen a closed period

10  of nonclaim under s. 215.26 or any other statute, nor does

11  this section extend the period of nonclaim under s. 215.26 or

12  any other statute.

13         Section 10.  Paragraph (c) of subsection (14) of

14  section 212.02, Florida Statutes, 1998 Supplement, is amended

15  to read:

16         212.02  Definitions.--The following terms and phrases

17  when used in this chapter have the meanings ascribed to them

18  in this section, except where the context clearly indicates a

19  different meaning:

20         (14)

21         (c)  "Retail sales," "sale at retail," "use,"

22  "storage," and "consumption" do not include materials,

23  containers, labels, sacks, bags, or similar items intended to

24  accompany a product sold to a customer without which delivery

25  of the product would be impracticable because of the character

26  of the contents and be used one time only for packaging

27  tangible personal property for sale or for the convenience of

28  the customer or for packaging in the process of providing a

29  service taxable under this chapter. When a separate charge for

30  packaging materials is made, the charge shall be considered

31  part of the sales price or rental charge for purposes of

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  1  determining the applicability of tax. The terms do term also

  2  does not include the sale, use, storage, or consumption of

  3  industrial materials, including chemicals and fuels except as

  4  provided herein, for future processing, manufacture, or

  5  conversion into articles of tangible personal property for

  6  resale when such industrial materials, including chemicals and

  7  fuels except as provided herein, become a component or

  8  ingredient of the finished product and do not include the

  9  sale, use, storage, or consumption of materials for use in

10  repairing a motor vehicle, airplane, or boat, when such

11  materials are incorporated into the repaired vehicle,

12  airplane, or boat. However, the terms include the sale, use,

13  storage, or consumption of tangible personal property,

14  including machinery and equipment or parts thereof, purchased

15  electricity, and fuels used to power machinery, when such

16  items are used and dissipated in fabricating, converting, or

17  processing tangible personal property for sale, even though

18  they may become ingredients or components of the tangible

19  personal property for sale through accident, wear, tear,

20  erosion, corrosion, or similar means. The terms do not include

21  the sale of materials to a registered repair facility for use

22  in repairing a motor vehicle, airplane, or boat when such

23  materials are incorporated into and sold as part of the

24  repair. Such a sale is to be considered a purchase for resale

25  by the repair facility even though every material is not

26  separately stated or separately priced on the repair invoice.

27         Section 11.  Effective January 1, 2000, subsections (4)

28  and (5) of section 212.04, Florida Statutes, 1998 Supplement,

29  are amended to read:

30         212.04  Admissions tax; rate, procedure, enforcement.--

31

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  1         (4)  Each person who exercises the privilege of

  2  charging admission taxes, as herein defined, shall apply for,

  3  and at that time shall furnish the information and comply with

  4  the provisions of s. 212.18 not inconsistent herewith and

  5  receive from the department, a certificate of right to

  6  exercise such privilege, which certificate shall apply to each

  7  place of business where such privilege is exercised and shall

  8  be in the manner and form prescribed by the department.  Such

  9  certificate shall be issued upon payment to the department of

10  a registration fee of $5 by the applicant.  Each person

11  exercising the privilege of charging such admission taxes as

12  herein defined shall cause to be kept records and accounts

13  showing the admission which shall be in the form as the

14  department may from time to time prescribe, inclusive of

15  records of all tickets numbered and issued for a period of not

16  less than the time within which the department may, as

17  permitted by s. 95.091(3), make an assessment with respect to

18  any admission evidenced by such records and accounts, and

19  inclusive of all bills or checks of customers who are charged

20  any of the taxes defined herein, showing the charge made to

21  each for that period.  The department is empowered to use each

22  and every one of the powers granted herein to the department

23  to discover the amount of tax to be paid by each such person

24  and to enforce the payment thereof as are hereby granted the

25  department for the discovery and enforcement of the payment of

26  taxes hereinafter levied on the sales of tangible personal

27  property.  The failure of any person to pay such taxes before

28  the 21st day of the succeeding month after the taxes are

29  collected shall render such person liable to the same

30  penalties that are hereafter imposed upon such person for

31  being delinquent in the payment of taxes imposed upon the

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  1  sales of tangible personal property; the failure of any person

  2  to render returns and to pay taxes as prescribed herein shall

  3  render such person subject to the same penalties, by way of

  4  charges for delinquencies, at the rate of 10 percent per month

  5  for a total amount of tax delinquent up to a total of 50

  6  percent of such tax and at the rate of 100-percent penalty for

  7  attempted evasion of payment of any such tax or for any

  8  attempt to file false or misleading returns that are required

  9  to be filed by the department.

10         (5)  All of the provisions of this chapter relating to

11  collection, investigation, discovery, and aids to collection

12  of taxes upon sales of tangible personal property shall

13  likewise apply to all privileges described or referred to in

14  this section, and the obligations imposed in this chapter upon

15  retailers are hereby imposed upon the seller of such

16  admissions. All penalties applicable to a dealer of tangible

17  personal property for failure to meet any such obligation,

18  including, but not limited to, any failure related to the

19  filing of returns, the payment of taxes, or the maintenance

20  and production of records, are applicable to the seller of

21  admissions. When tickets or admissions are sold and not used

22  but returned and credited by the seller, the seller may apply

23  to the department for a credit allowance for such returned

24  tickets or admissions if advance payments have been made by

25  the buyer and have been returned by the seller, upon such form

26  and in such manner as the department may from time to time

27  prescribe.  The department may, upon obtaining satisfactory

28  proof of the refunds on the part of the seller, credit the

29  seller for taxes paid upon admissions that have been returned

30  unused to the purchaser of those admissions. The seller of

31  admissions, upon the payment of the taxes before they become

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  1  delinquent and the rendering of the returns in accordance with

  2  the requirement of the department and as provided in this law,

  3  shall be entitled to a discount of 2.5 percent of the amount

  4  of taxes upon the payment thereof before such taxes become

  5  delinquent, in the same manner as permitted the sellers of

  6  tangible personal property in this chapter.  However, if the

  7  amount of the tax due and remitted to the department for the

  8  reporting period exceeds $1,200, no discount shall be allowed

  9  for all amounts in excess of $1,200.

10         Section 12.  Paragraph (ii) of section 212.08, Florida

11  Statutes, 1998 Supplement, is amended to read:

12         212.08  Sales, rental, use, consumption, distribution,

13  and storage tax; specified exemptions.--The sale at retail,

14  the rental, the use, the consumption, the distribution, and

15  the storage to be used or consumed in this state of the

16  following are hereby specifically exempt from the tax imposed

17  by this chapter.

18         (7)  MISCELLANEOUS EXEMPTIONS.--

19         (ii)  Certain electricity or steam uses.--

20         1.  Subject to the phase-in provisions in subparagraph

21  4., charges for electricity or steam used to operate machinery

22  and equipment at a fixed location in this state when such

23  machinery and equipment is used to manufacture, process,

24  compound, produce, or prepare for shipment items of tangible

25  personal property for sale, or to operate pollution control

26  equipment, recycling equipment, maintenance equipment, or

27  monitoring or control equipment used in such operations are

28  exempt to the extent provided in this paragraph. If In order

29  to qualify for this exemption, 75 percent or more of the

30  electricity or steam used at the fixed location is must be

31  used to operate qualifying machinery or equipment, 100 percent

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  1  of the charges for electricity or steam used at the fixed

  2  location is exempt. If less than 75 percent but 50 percent or

  3  more of the electricity or steam is used at the a fixed

  4  location is used to operate qualifying machinery or equipment,

  5  then it is presumed that 50 percent of the charges for

  6  electricity or steam used at the fixed location is exempt

  7  charge for electricity is for nonexempt purposes. If less than

  8  50 percent of the electricity or steam used at the fixed

  9  location is used to operate qualifying machinery and

10  equipment, none of the charges for electricity or steam used

11  at the fixed location is exempt.

12         2.  This exemption applies only to industries

13  classified under SIC Industry Major Group Numbers 10, 12, 13,

14  14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,

15  35, 36, 37, 38, and 39. As used in this paragraph, "SIC" means

16  those classifications contained in the Standard Industrial

17  Classification Manual, 1987, as published by the Office of

18  Management and Budget, Executive Office of the President.

19         3.  Possession by a seller of a written certification

20  by the purchaser, certifying the purchaser's entitlement to an

21  exemption permitted by this subsection, relieves the seller

22  from the responsibility of collecting the tax on the

23  nontaxable amounts, and the department shall look solely to

24  the purchaser for recovery of such tax if it determines that

25  the purchaser was not entitled to the exemption.

26         4.  Such exemption shall be applied as follows:

27         a.  Beginning July 1, 1996, 20 percent of the charges

28  for such electricity shall be exempt.

29         b.  Beginning July 1, 1997, 40 percent of the charges

30  for such electricity shall be exempt.

31

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  1         c.  Beginning July 1, 1998, 60 percent of the charges

  2  for such electricity or steam shall be exempt.

  3         d.  Beginning July 1, 1999, 80 percent of the charges

  4  for such electricity or steam shall be exempt.

  5         e.  Beginning July 1, 2000, 100 percent of the charges

  6  for such electricity or steam shall be exempt.

  7         5.  Notwithstanding any other provision in this

  8  paragraph to the contrary, in order to receive the exemption

  9  provided in this paragraph a taxpayer must first register with

10  the WAGES Program Business Registry established by the local

11  WAGES coalition for the area in which the taxpayer is located.

12  Such registration establishes a commitment on the part of the

13  taxpayer to hire WAGES program participants to the maximum

14  extent possible consistent with the nature of their business.

15         6.a.  In order to determine whether the exemption

16  provided in this paragraph from the tax on charges for

17  electricity or steam has an effect on retaining or attracting

18  companies to this state, the Office of Program Policy Analysis

19  and Governmental Accountability shall periodically monitor and

20  report on the industries receiving the exemption.

21         b.  The first report shall be submitted no later than

22  January 1, 1997, and must be conducted in such a manner as to

23  specifically determine the number of companies within each SIC

24  Industry Major Group receiving the exemption as of September

25  1, 1996, and the number of individuals employed by companies

26  within each SIC Industry Major Group receiving the exemption

27  as of September 1, 1996.

28         c.  The second report shall be submitted no later than

29  January 1, 2001, and must be comprehensive in scope, but, at a

30  minimum, must be conducted in such a manner as to specifically

31  determine the number of companies within each SIC Industry

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  1  Major Group receiving the exemption as of September 1, 2000,

  2  the number of individuals employed by companies within each

  3  SIC Industry Major Group receiving the exemption as of

  4  September 1, 2000, whether the change, if any, in such number

  5  of companies or employees is attributable to the exemption

  6  provided in this paragraph, whether it would be sound public

  7  policy to continue or discontinue the exemption, and the

  8  consequences of doing so.

  9         d.  Both reports shall be submitted to the President of

10  the Senate, the Speaker of the House of Representatives, the

11  Senate Minority Leader, and the House Minority Leader.

12

13  Exemptions provided to any entity by this subsection shall not

14  inure to any transaction otherwise taxable under this chapter

15  when payment is made by a representative or employee of such

16  entity by any means, including, but not limited to, cash,

17  check, or credit card even when that representative or

18  employee is subsequently reimbursed by such entity.

19         Section 13.  Effective January 1, 2000, subsections (2)

20  and (13) of section 212.12, Florida Statutes, 1998 Supplement,

21  are amended to read:

22         212.12  Dealer's credit for collecting tax; penalties

23  for noncompliance; powers of Department of Revenue in dealing

24  with delinquents; brackets applicable to taxable transactions;

25  records required.--

26         (2)(a)  When any person, firm, or corporation required

27  hereunder to make any return or to pay any tax or fee imposed

28  by this chapter fails to timely file such return or fails to

29  pay the tax or fee due within the time required hereunder, in

30  addition to all other penalties provided herein and by the

31  laws of this state in respect to such taxes or fees, a

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  1  specific penalty shall be added to the tax or fee in the

  2  amount of 10 percent of any unpaid tax or fee if the failure

  3  is for not more than 30 days, with an additional 10 percent of

  4  any unpaid tax or fee for each additional 30 days, or fraction

  5  thereof, during the time which the failure continues, not to

  6  exceed a total penalty of 50 percent, in the aggregate, of any

  7  unpaid tax or fee.  In no event may the penalty be less than

  8  $10 for failure to timely file a tax return required by s.

  9  212.11(1)(b) or $5 for failure to timely file a tax return

10  authorized by s. 212.11(1)(c) or (d).

11         (b)  Any person who knowingly and with a willful intent

12  to evade any tax imposed under this chapter fails to file six

13  consecutive returns as required by law commits a felony of the

14  third degree, punishable as provided in s. 775.082 or s.

15  775.083.

16         (c)  Any person who makes a false or fraudulent return

17  with a willful intent to evade payment of any tax or fee

18  imposed under this chapter is, in addition to the other

19  penalties provided by law, liable for a specific penalty of

20  100 percent of the tax bill or fee and for fine and punishment

21  as provided in s. 775.082, s. 775.083, or s. 775.084.

22         1.  If the total amount of unreported taxes or fees is

23  less than $300, the first offense is a misdemeanor of the

24  second degree, the second offense is a misdemeanor of the

25  first degree, and the third and each subsequent offense is a

26  felony of the third degree.

27         2.  If the total amount of unreported taxes or fees is

28  at least $300 but less than $20,000, the offense is a felony

29  of the third degree.

30

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  1         3.  If the total amount of unreported taxes or fees is

  2  at least $20,000 but less than $100,000, the offense is a

  3  felony of the second degree.

  4         4.  If the total amount of unreported taxes or fees is

  5  $100,000 or more, the offense is a felony of the first degree.

  6  In the case of a false or fraudulent return or a willful

  7  intent to evade payment of any tax or fee imposed under this

  8  chapter, in addition to the other penalties provided by law,

  9  the person making such false or fraudulent return or willfully

10  attempting to evade the payment of such a tax or fee shall be

11  liable for a specific penalty of 100 percent of the tax bill

12  or fee and for fine and punishment as provided by law for a

13  conviction of a misdemeanor of the first degree.

14         (d)(b)  When any person, firm, or corporation fails to

15  timely remit the proper estimated payment required under s.

16  212.11, a specific penalty shall be added in an amount equal

17  to 10 percent of any unpaid estimated tax. Beginning with

18  January 1, 1985, returns, The department, upon a showing of

19  reasonable cause, is authorized to waive or compromise

20  penalties imposed by this paragraph. However, other penalties

21  and interest shall be due and payable if the return on which

22  the estimated payment was due was not timely or properly

23  filed.

24         (e)(c)  Dealers filing a consolidated return pursuant

25  to s. 212.11(1)(e) s. 212.11(1)(d) shall be subject to the

26  penalty established in paragraph (b) unless the dealer has

27  paid the required estimated tax for his or her consolidated

28  return as a whole without regard to each location.  If the

29  dealer fails to pay the required estimated tax for his or her

30  consolidated return as a whole, each filing location shall

31

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  1  stand on its own with respect to calculating penalties

  2  pursuant to paragraph (b).

  3         (13)  In order to aid the administration and

  4  enforcement of the provisions of this chapter with respect to

  5  the rentals and license fees, each lessor or person granting

  6  the use of any hotel, apartment house, roominghouse, tourist

  7  or trailer camp, real property, or any interest therein, or

  8  any portion thereof, inclusive of owners; property managers;

  9  lessors; landlords; hotel, apartment house, and roominghouse

10  operators; and all licensed real estate agents within the

11  state leasing, granting the use of, or renting such property,

12  shall be required to keep a record of each and every such

13  lease, license, or rental transaction which is taxable under

14  this chapter, in such a manner and upon such forms as the

15  department may prescribe, and to report such transaction to

16  the department or its designated agents, and to maintain such

17  records as long as required by s. 213.35, subject to the

18  inspection of the department and its agents.  Upon the failure

19  by such owner; property manager; lessor; landlord; hotel,

20  apartment house, roominghouse, tourist or trailer camp

21  operator; or real estate agent to keep and maintain such

22  records and to make such reports upon the forms and in the

23  manner prescribed, such owner; property manager; lessor;

24  landlord; hotel, apartment house, roominghouse, tourist or

25  trailer camp operator; receiver of rent or license fees; or

26  real estate agent is guilty of a misdemeanor of the second

27  degree, punishable as provided in s. 775.082 or s. 775.083,

28  for the first offense; for subsequent offenses, they are each

29  guilty of a misdemeanor of the first degree, punishable as

30  provided in s. 775.082 or s. 775.083. However, any subsequent

31  offense that involves intentional destruction of such records

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  1  with intent to evade payment of or deprive the state of any

  2  tax revenues is a felony of the third degree, punishable as

  3  provided in s. 775.082 or s. 775.083.

  4         Section 14.  Effective January 1, 2000, subsection (1)

  5  and (2) of section 212.13, Florida Statutes, are amended to

  6  read:

  7         212.13  Records required to be kept; power to inspect;

  8  audit procedure.--

  9         (1)  For the purpose of enforcing the collection of the

10  tax levied by this chapter, the department is hereby

11  specifically authorized and empowered to examine at all

12  reasonable hours the books, records, and other documents of

13  all transportation companies, agencies, or firms that conduct

14  their business by truck, rail, water, aircraft, or otherwise,

15  in order to determine what dealers, or other persons charged

16  with the duty to report or pay a tax under this chapter, are

17  importing or are otherwise shipping in articles or tangible

18  personal property which are liable for said tax.  In the event

19  said transportation company, agency, or firm refuses to permit

20  such examination of its books, records, or other documents by

21  the department as aforesaid, it is guilty of a misdemeanor of

22  the first degree, punishable as provided in s. 775.082 or s.

23  775.083. However, any subsequent offense that involves

24  intentional destruction of such records with an intent to

25  evade payment of or deprive the state of any tax revenues is a

26  felony of the third degree, punishable as provided in s.

27  775.082 or s. 775.083. The department shall have the right to

28  proceed in any chancery court to seek a mandatory injunction

29  or other appropriate remedy to enforce its right against the

30  offender, as granted by this section, to require an

31

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  1  examination of the books and records of such transportation

  2  company or carrier.

  3         (2)  Each dealer, as defined in this chapter, shall

  4  secure, maintain, and keep as long as required by s. 213.35 a

  5  complete record of tangible personal property or services

  6  received, used, sold at retail, distributed or stored, leased

  7  or rented by said dealer, together with invoices, bills of

  8  lading, gross receipts from such sales, and other pertinent

  9  records and papers as may be required by the department for

10  the reasonable administration of this chapter; all such

11  records which are located or maintained in this state shall be

12  open for inspection by the department at all reasonable hours

13  at such dealer's store, sales office, general office,

14  warehouse, or place of business located in this state. Any

15  dealer who maintains such books and records at a point outside

16  this state must make such books and records available for

17  inspection by the department where the general records are

18  kept. Any dealer subject to the provisions of this chapter who

19  violates these provisions is guilty of a misdemeanor of the

20  first degree, punishable as provided in s. 775.082 or s.

21  775.083. However, any subsequent offense that involves

22  intentional destruction of such records with an intent to

23  evade payment of or deprive the state of any tax revenues is a

24  felony of the third degree, punishable as provided in s.

25  775.082 or s. 775.083.

26         Section 15.  Subsection (8) is added to section 213.27,

27  Florida Statutes, to read:

28         213.27  Contracts with debt collection agencies.--

29         (8)(a)  The executive director of the department may

30  enter into contracts with private vendors to develop and

31  implement systems for enhancing tax collections. The vendor's

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  1  compensation under such a contract must be funded through

  2  increased tax collections. The amount of the compensation paid

  3  to a vendor must be a percentage of the increase in the amount

  4  of tax collected which is attributable to the system, after

  5  all administrative and judicial appeals are exhausted, and the

  6  total amount of compensation paid to a vendor may not exceed

  7  the maximum amount stated in the contract.

  8         (b)  A person acting on behalf of the department under

  9  a contract authorized by this section does not exercise any of

10  the powers of the department, except that the person is an

11  agent of the department for the purposes of developing and

12  implementing a system for enhancing tax collections.

13         (c)  Disclosure of information under this subsection

14  must be governed by a written agreement between the executive

15  director and the private vendor. The vendor is bound by the

16  confidentiality requirements that apply to the Department of

17  Revenue. Breach of confidentiality is a misdemeanor of the

18  first degree, punishable as provided in s. 775.082 or s.

19  775.083.

20         Section 16.  Subsection (1) of section 213.67, Florida

21  Statutes, 1998 Supplement, is amended to read:

22         213.67  Garnishment.--

23         (1)  If a person is delinquent in the payment of any

24  taxes, penalties, and interest owed to the department, the

25  executive director or his or her designee may give notice of

26  the amount of such delinquency by registered mail to all

27  persons having in their possession or under their control any

28  credits or personal property, exclusive of wages, belonging to

29  the delinquent taxpayer, or owing any debts to such delinquent

30  taxpayer at the time of receipt by them of such notice.

31  Thereafter, any person who has been notified may not transfer

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  1  or make any other disposition of such credits, other personal

  2  property, or debts until the executive director or his or her

  3  designee consents to a transfer or disposition or until 60

  4  days after the receipt of such notice, except that the amount

  5  by which the value of the credits, other personal property, or

  6  debts, wherever held, exceeds the delinquent amount stipulated

  7  in the notice is exempt from this section if the dealer does

  8  not have a prior history of tax delinquencies. If during the

  9  effective period of the notice to withhold, any person so

10  notified makes any transfer or disposition of the property or

11  debts required to be withheld hereunder, he or she is liable

12  to the state for any indebtedness owed to the department by

13  the person with respect to whose obligation the notice was

14  given to the extent of the value of the property or the amount

15  of the debts thus transferred or paid if, solely by reason of

16  such transfer or disposition, the state is unable to recover

17  the indebtedness of the person with respect to whose

18  obligation the notice was given. If the delinquent taxpayer

19  contests the intended levy in circuit court or under chapter

20  120, the notice under this section remains effective until

21  that final resolution of the contest. Any financial

22  institution receiving such notice will maintain a right of

23  setoff for any transaction involving a debit card occurring on

24  or before the date of receipt of such notice.

25         Section 17.  Effective January 1, 2000, section

26  213.757, Florida Statutes, is created to read:

27         213.757  Willful failure to pay over funds or

28  destruction of records by agent.--Any person who accepts from

29  a taxpayer money that is due to the department, for the

30  purpose of acting as the taxpayer's agent to make the payment

31  to the department, but who willfully fails to remit the

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  1  payment to the department when due, commits a felony of the

  2  third degree, punishable as provided in s. 775.082, s.

  3  775.083, or s. 775.084. Any person who has possession as a

  4  taxpayer's agent of the taxpayer's records that are required

  5  to be maintained under the revenue laws of this state and who

  6  intentionally destroys those records with the intent of

  7  depriving the state of tax revenues commits a felony of the

  8  third degree, punishable as provided in s. 775.082, s.

  9  775.083, or s. 775.084.

10         Section 18.  Paragraph (b) of subsection (1) of section

11  220.151, Florida Statutes, is amended to read:

12         220.151  Apportionment; methods for special

13  industries.--

14         (1)

15         (b)  If the principal source of premiums written by an

16  insurance company consists of premiums for reinsurance

17  accepted by it, the tax base of such company shall be

18  apportioned to this state by multiplying such base by a

19  fraction the numerator of which is the sum of:

20         1.  Direct premiums written for insurance upon

21  properties and risks in this state, plus

22         2.  Premiums written for reinsurance, accepted in

23  respect to properties and risks in this state,

24

25  and the denominator of which is the sum of direct premiums

26  written for insurance upon properties and risks everywhere

27  plus premiums written for reinsurance accepted in respect to

28  properties and risks everywhere.  For purposes of this

29  paragraph, premiums written for reinsurance accepted in

30  respect to properties and risks in this state, whether or not

31  otherwise determinable, shall may, at the election of the

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  1  company, either be determined on the basis of the proportion

  2  which premiums written for reinsurance accepted from companies

  3  resident in or having a regional home office in the state

  4  bears to premiums written for reinsurance accepted from all

  5  sources or, alternatively, on the basis of the proportion

  6  which the sum of the direct premiums written for insurance

  7  upon properties and risks in this state by each ceding company

  8  from which reinsurance is accepted bears to the sum of the

  9  total direct premiums written by each such ceding company for

10  the taxable year.

11         Section 19.  Section 220.21, Florida Statutes, is

12  amended to read:

13         220.21  Returns and records; regulations.--Every

14  taxpayer liable for the tax imposed by this code shall keep

15  such records, render such statements, make such returns and

16  notices, and comply with such rules and regulations, as the

17  department may from time to time prescribe.  The director may

18  require any taxpayer or class of taxpayers, by notice or by

19  regulation, to make such returns and notices, render such

20  statements, and keep such records as the director deems

21  necessary to determine whether such taxpayer or taxpayers are

22  liable for tax under this code. The department may prescribe

23  standards for acceptance of electronic or telephonic returns;

24  however, national standards for taxpayer authentication must

25  be used in lieu of signature.

26         Section 20.  Subsection (3) of section 220.221, Florida

27  Statutes, is amended to read:

28         220.221  Returns; signing and verification.--

29         (3)  Each return or notice required to be filed under

30  this code shall be verified by a written declaration that it

31  is made under the penalties of perjury, and if prepared by

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  1  someone other than the taxpayer the return shall also contain

  2  a declaration by the preparer that it was prepared on the

  3  basis of all information of which the preparer had knowledge.

  4         Section 21.  Paragraphs (a) and (b) of subsection (2)

  5  of section 220.222, Florida Statutes, 1998 Supplement, are

  6  amended to read:

  7         220.222  Returns; time and place for filing.--

  8         (2)(a)  When a taxpayer has been granted an extension

  9  or extensions of time within which to file its federal income

10  tax return for any taxable year, and if the requirements of s.

11  220.32 are met, the filing of a written request for such

12  extension or extensions with the department shall

13  automatically extend the due date of the return required under

14  this code until 15 days after the expiration of the federal

15  extension or until the expiration of 6 months from the

16  original due date, whichever first occurs.

17         (b)  The department may grant an extension or

18  extensions of time for the filing of any return required under

19  this code upon receiving a prior written request therefor if

20  good cause for an extension is shown.  However, the aggregate

21  extensions of time under paragraphs (a) and (b) shall not

22  exceed 6 months. No extension granted under this paragraph

23  shall be valid unless the taxpayer complies with the

24  requirements of s. 220.32.

25         Section 22.  Except as otherwise expressly provided in

26  this act, this act shall take effect July 1, 1999, except that

27  the amendments made by this act to sections 198.12, 198.13,

28  198.23, 198.26, 198.32, 198.33, and 198.39, Florida Statutes,

29  apply to taxes with respect to estates of decedents who have

30  passed away after December 31, 1999, and the law in effect

31

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  1  before January 1, 2000, shall apply to estates of decedents

  2  who have passed away before such date.

  3

  4          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  5                              SB 888

  6

  7  The bill deletes the sales tax exemption for 501(c)(3)
    organizations.
  8
    The bill deletes the annual issuance of resale certificates to
  9  active sales tax accounts.

10  The bill repeals provisions requiring small estates to file a
    report when no estate tax is due along with a $5.00 fee and
11  allows the recording with the Clerk of the Court, of an
    affidavit stating that no tax is due.
12

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