Senate Bill 0888e1
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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, F.S., and creating s. 213.757,
18 F.S.; increasing the criminal penalties for
19 willful violations of certain tax provisions;
20 amending s. 212.0602, F.S.; providing
21 additional exemption to facilitate investment
22 in education and job training; clarifying
23 qualification requirements for exemption;
24 amending s. 212.08, F.S.; amending the
25 exemption for electricity and steam used for
26 manufacturing; revising provisions which
27 specify application of tax to the sale of a
28 motor vehicle in this state to a resident of
29 another state; revising the time within which
30 the purchaser must license the vehicle in his
31 or her home state; providing construction
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1 regarding removal of the vehicle from this
2 state; amending s. 212.11, F.S.; conforming a
3 cross-reference; amending s. 213.27, F.S.;
4 authorizing the Department of Revenue to enter
5 into contracts with private vendors to develop
6 an automated case-tracking system; amending s.
7 213.67, F.S.; authorizing the Department of
8 Revenue to reduce the amount of an
9 administrative garnishment which is subject to
10 a freeze to the amount equal to the delinquent
11 amount; amending ss. 220.151, 220.21, 220.221,
12 220.222, F.S.; authorizing the Department of
13 Revenue to accept electronic or telephonic
14 corporate income tax returns in lieu of written
15 paper returns; creating s. 166.235, F.S.;
16 providing procedures for purchasers to obtain
17 refund of or credit for public service taxes
18 collected in error; providing transitional
19 provisions; providing an effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Section 198.12, Florida Statutes, is
24 repealed effective January 1, 2000.
25 Section 2. Effective January 1, 2000, section 198.13,
26 Florida Statutes, is amended to read:
27 198.13 Tax return to be made in certain cases.--
28 (1) The personal representative of every estate
29 required by the laws of the United States to file a federal
30 estate tax return shall file with the department, on or before
31 the last day prescribed by law for filing the initial federal
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1 estate tax return for such estate, a return consisting of an
2 executed copy of the federal estate tax return and shall file
3 with such return all supplemental data, if any, as may be
4 necessary to determine and establish the correct tax under
5 this chapter. Such return shall be made in the case of every
6 decedent who at the time of death was not a resident of the
7 United States and whose gross estate includes any real
8 property situate in the state, tangible personal property
9 having an actual situs in the state, and intangible personal
10 property physically present within the state.
11 (2) Whenever it is made to appear to the department
12 that an estate that has filed a return owes no taxes provided
13 in this chapter, the department will issue to the personal
14 representative a certificate in writing to that effect, which
15 certificate will have the same force and effect as a receipt
16 showing payment. The certificate will be subject to record and
17 admissible in evidence in like manner as receipts showing
18 payment of taxes. A fee of $5 will be paid to the department
19 for each certificate so issued.
20 (3)(2) Every person required to file a return
21 reporting a generation-skipping transfer under applicable
22 federal statutes and regulations shall file with the
23 Department of Revenue, on or before the last day prescribed
24 for filing the federal return, a return consisting of a
25 duplicate copy of the federal return.
26 Section 3. Effective January 1, 2000, section 198.23,
27 Florida Statutes, is amended to read:
28 198.23 Personal liability of personal
29 representative.--If any personal representative shall make
30 distribution either in whole or in part of any of the property
31 of an estate to the heirs, next of kin, distributees,
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1 legatees, or devisees without having paid or secured the tax
2 due the state under this chapter, or having obtained the
3 release of such property from the lien of such tax, either by
4 the department or pursuant to s. 198.32(2), he or she shall
5 become personally liable for the tax so due the state, or so
6 much thereof as may remain due and unpaid, to the full extent
7 of the full value of any property belonging to such person or
8 estate which may come into the personal representative's
9 hands, custody, or control.
10 Section 4. Effective January 1, 2000, section 198.26,
11 Florida Statutes, is amended to read:
12 198.26 No discharge of personal representative until
13 tax is paid.--No final account of a personal representative of
14 the estate of a nonresident, nor of the estate of a resident
15 when the value of the gross estate wherever situate exceeds
16 $60,000 shall be allowed by any court unless and until such
17 account shows, and the judge of said court finds, that the tax
18 imposed by the provisions of this chapter upon the personal
19 representative, which has become payable, has been paid. The
20 certificate of the department of nonliability for the tax or
21 its receipt for the amount of tax therein certified shall be
22 conclusive in such proceedings as to the liability or the
23 payment of the tax to the extent of said certificate. In the
24 case of a nontaxable estate, the court may consider the
25 affidavit prepared pursuant to s. 198.32(2) as evidence of the
26 nonliability for tax.
27 Section 5. Effective January 1, 2000, section 198.32,
28 Florida Statutes, is amended to read:
29 198.32 Prima facie liability for tax.--
30 (1) The estate of each decedent whose property is
31 subject to the laws of the state shall be deemed prima facie
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1 liable for estate taxes under this chapter and shall be
2 subject to a lien therefor in such amount as may be later
3 determined to be due and payable on the estate as provided in
4 this chapter. This presumption of liability shall begin on
5 the date of the death of the decedent and shall continue until
6 the full settlement of all taxes which may be found to be due
7 under this chapter, the settlement to be shown by receipts for
8 all taxes due to be issued by the department as provided for
9 in this chapter. Whenever it is made to appear to the
10 department that an estate is not subject to any tax under this
11 chapter, the department shall issue to the personal
12 representative, administrator, or curator, or to the heirs,
13 devisees, or legatees of the decedent, a certificate in
14 writing to that effect, showing such nonliability to tax,
15 which certificate of nonliability shall have the same force
16 and effect as a receipt showing payment. The certificate of
17 nonliability shall be subject to record and admissible in
18 evidence in like manner as receipts showing payment of taxes.
19 A fee of $5 shall be paid to the department for each
20 certificate so issued.
21 (2) Whenever an estate is not subject to tax under
22 this chapter and is not required to file a return, the
23 personal representative may execute an affidavit attesting
24 that the estate is not taxable. The form of the affidavit will
25 be prescribed by the department, and will include, but not be
26 limited to, statements regarding the decedent's domicile,
27 whether a federal estate tax return will be filed, and
28 acknowledgment of the personal representative's personal
29 liability under s. 198.23. Such affidavit shall be subject to
30 record and admissible in evidence to show nonliability for
31 tax.
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1 Section 6. Effective January 1, 2000, subsection (1)
2 of section 198.33, Florida Statutes, is amended to read:
3 198.33 Discharge of estate, notice of lien, limitation
4 on lien, etc.--
5 (1) Where no receipt for the payment of taxes, or no
6 affidavit or certificate receipt of nonliability for taxes has
7 been issued or recorded as provided for in this chapter, the
8 property constituting the estate of the decedent in this state
9 shall be deemed fully acquitted and discharged of all
10 liability for estate and inheritance taxes under this chapter
11 after a lapse of 10 years from the date of the filing with the
12 department of notice of the decedent's death, or after a lapse
13 of 10 years from the date of the filing with the department of
14 an estate tax return, whichever date shall be earlier, unless
15 the department shall make out and file and have recorded in
16 the public records of the county wherein any part of the
17 estate of the decedent may be situated in this state, a notice
18 of lien against the property of the estate, specifying the
19 amount or approximate amount of taxes claimed to be due to the
20 state under this chapter, which notice of lien shall continue
21 said lien in force for an additional period of 5 years or
22 until payment is made. Such notice of lien shall be filed and
23 recorded in the book of deeds in the office of the clerk of
24 the circuit court; provided, where no receipt for the payment
25 of taxes, or no affidavit or certificate of nonliability for
26 taxes, has been issued or recorded as provided for in this
27 chapter, the property constituting the estate of the decedent
28 in this state, if said decedent was a resident of this state
29 at the time of death, shall be deemed fully acquitted and
30 discharged of all liability for tax under this chapter after a
31 lapse of 10 years from the date of the death of the decedent,
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1 unless the department shall make out and file and have
2 recorded notice of lien as herein provided, which notice shall
3 continue said lien in force against such property of the
4 estate as is situate in the county wherein said notice of lien
5 was recorded for an additional period of 5 years or until
6 payment is made.
7 Section 7. Effective January 1, 2000, section 198.39,
8 Florida Statutes, is amended to read:
9 198.39 False statement in return; penalty.--Whoever
10 knowingly makes any false statement in any notice, affidavit,
11 or return required to be filed or made under this chapter is
12 guilty of a misdemeanor of the first degree, punishable as
13 provided in s. 775.082 or s. 775.083.
14 Section 8. Subsections (2) and (3) of section 199.106,
15 Florida Statutes, are amended to read:
16 199.106 Credit for taxes imposed by other states.--
17 (2) For intangible personal property that has a
18 taxable situs in this state under s. 199.175(1) or any similar
19 predecessor statute, a credit against the tax imposed by s.
20 199.032 is allowed to a taxpayer, other than a natural person,
21 in an amount equal to a like tax lawfully imposed and paid by
22 that taxpayer on the same property in another state, territory
23 of the United States, or the District of Columbia when the
24 other taxing authority is also claiming situs under provisions
25 similar or identical to those in s. 199.175(1) or any similar
26 predecessor statute. For purposes of this subsection, "like
27 tax" means an ad valorem tax on intangible personal property
28 which is also subject to tax under s. 199.032. The credit may
29 not exceed the tax imposed on the property under s. 199.032.
30 Proof of entitlement to such a credit must be made pursuant to
31 rules and forms adopted by the department.
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1 (3) The credits provided by this section subsections
2 (1) and (2) apply retroactively to December 31, 1979.
3 However, notwithstanding the retroactivity of these credit
4 provisions, this section does not reopen a closed period of
5 nonclaim under s. 215.26 or any other statute or extend the
6 period of nonclaim under s. 215.26 or any other statute.
7 Section 9. Section 201.165, Florida Statutes, is
8 created to read:
9 201.165 Credit for tax paid to other states.--
10 (1) With respect to each tax imposed by any section of
11 this chapter, a credit against the specific tax imposed by
12 that section is allowed in an amount equal to the amount of a
13 like tax lawfully imposed and paid on the same document or
14 instrument in another state or territory of the United States
15 or in the District of Columbia. As used in this subsection,
16 the term "like tax" means an excise tax on documents which is
17 in substance identical to the tax imposed by this chapter on
18 the same document. The credit may not exceed the amount of the
19 tax imposed on the document by this chapter. Proof of
20 entitlement to the credit must be provided to the department.
21 The department may adopt rules to implement this credit and
22 designate forms that establish what proof is required.
23 (2) The credit provided by this section applies
24 retroactively. Notwithstanding the retroactivity of this
25 credit provision, this section does not reopen a closed period
26 of nonclaim under s. 215.26 or any other statute, nor does
27 this section extend the period of nonclaim under s. 215.26 or
28 any other statute.
29 Section 10. Paragraph (c) of subsection (14) of
30 section 212.02, Florida Statutes, 1998 Supplement, is amended
31 to read:
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1 212.02 Definitions.--The following terms and phrases
2 when used in this chapter have the meanings ascribed to them
3 in this section, except where the context clearly indicates a
4 different meaning:
5 (14)
6 (c) "Retail sales," "sale at retail," "use,"
7 "storage," and "consumption" do not include materials,
8 containers, labels, sacks, bags, or similar items intended to
9 accompany a product sold to a customer without which delivery
10 of the product would be impracticable because of the character
11 of the contents and be used one time only for packaging
12 tangible personal property for sale or for the convenience of
13 the customer or for packaging in the process of providing a
14 service taxable under this chapter. When a separate charge for
15 packaging materials is made, the charge shall be considered
16 part of the sales price or rental charge for purposes of
17 determining the applicability of tax. The terms do term also
18 does not include the sale, use, storage, or consumption of
19 industrial materials, including chemicals and fuels except as
20 provided herein, for future processing, manufacture, or
21 conversion into articles of tangible personal property for
22 resale when such industrial materials, including chemicals and
23 fuels except as provided herein, become a component or
24 ingredient of the finished product and do not include the
25 sale, use, storage, or consumption of materials for use in
26 repairing a motor vehicle, airplane, or boat, when such
27 materials are incorporated into the repaired vehicle,
28 airplane, or boat. However, the terms include the sale, use,
29 storage, or consumption of tangible personal property,
30 including machinery and equipment or parts thereof, purchased
31 electricity, and fuels used to power machinery, when such
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1 items are used and dissipated in fabricating, converting, or
2 processing tangible personal property for sale, even though
3 they may become ingredients or components of the tangible
4 personal property for sale through accident, wear, tear,
5 erosion, corrosion, or similar means. The terms do not include
6 the sale of materials to a registered repair facility for use
7 in repairing a motor vehicle, airplane, or boat when such
8 materials are incorporated into and sold as part of the
9 repair. Such a sale is to be considered a purchase for resale
10 by the repair facility even though every material is not
11 separately stated or separately priced on the repair invoice.
12 Section 11. Effective January 1, 2000, subsections (4)
13 and (5) of section 212.04, Florida Statutes, 1998 Supplement,
14 are amended to read:
15 212.04 Admissions tax; rate, procedure, enforcement.--
16 (4) Each person who exercises the privilege of
17 charging admission taxes, as herein defined, shall apply for,
18 and at that time shall furnish the information and comply with
19 the provisions of s. 212.18 not inconsistent herewith and
20 receive from the department, a certificate of right to
21 exercise such privilege, which certificate shall apply to each
22 place of business where such privilege is exercised and shall
23 be in the manner and form prescribed by the department. Such
24 certificate shall be issued upon payment to the department of
25 a registration fee of $5 by the applicant. Each person
26 exercising the privilege of charging such admission taxes as
27 herein defined shall cause to be kept records and accounts
28 showing the admission which shall be in the form as the
29 department may from time to time prescribe, inclusive of
30 records of all tickets numbered and issued for a period of not
31 less than the time within which the department may, as
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1 permitted by s. 95.091(3), make an assessment with respect to
2 any admission evidenced by such records and accounts, and
3 inclusive of all bills or checks of customers who are charged
4 any of the taxes defined herein, showing the charge made to
5 each for that period. The department is empowered to use each
6 and every one of the powers granted herein to the department
7 to discover the amount of tax to be paid by each such person
8 and to enforce the payment thereof as are hereby granted the
9 department for the discovery and enforcement of the payment of
10 taxes hereinafter levied on the sales of tangible personal
11 property. The failure of any person to pay such taxes before
12 the 21st day of the succeeding month after the taxes are
13 collected shall render such person liable to the same
14 penalties that are hereafter imposed upon such person for
15 being delinquent in the payment of taxes imposed upon the
16 sales of tangible personal property; the failure of any person
17 to render returns and to pay taxes as prescribed herein shall
18 render such person subject to the same penalties, by way of
19 charges for delinquencies, at the rate of 10 percent per month
20 for a total amount of tax delinquent up to a total of 50
21 percent of such tax and at the rate of 100-percent penalty for
22 attempted evasion of payment of any such tax or for any
23 attempt to file false or misleading returns that are required
24 to be filed by the department.
25 (5) All of the provisions of this chapter relating to
26 collection, investigation, discovery, and aids to collection
27 of taxes upon sales of tangible personal property shall
28 likewise apply to all privileges described or referred to in
29 this section, and the obligations imposed in this chapter upon
30 retailers are hereby imposed upon the seller of such
31 admissions. All penalties applicable to a dealer of tangible
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1 personal property for failure to meet any such obligation,
2 including, but not limited to, any failure related to the
3 filing of returns, the payment of taxes, or the maintenance
4 and production of records, are applicable to the seller of
5 admissions. When tickets or admissions are sold and not used
6 but returned and credited by the seller, the seller may apply
7 to the department for a credit allowance for such returned
8 tickets or admissions if advance payments have been made by
9 the buyer and have been returned by the seller, upon such form
10 and in such manner as the department may from time to time
11 prescribe. The department may, upon obtaining satisfactory
12 proof of the refunds on the part of the seller, credit the
13 seller for taxes paid upon admissions that have been returned
14 unused to the purchaser of those admissions. The seller of
15 admissions, upon the payment of the taxes before they become
16 delinquent and the rendering of the returns in accordance with
17 the requirement of the department and as provided in this law,
18 shall be entitled to a discount of 2.5 percent of the amount
19 of taxes upon the payment thereof before such taxes become
20 delinquent, in the same manner as permitted the sellers of
21 tangible personal property in this chapter. However, if the
22 amount of the tax due and remitted to the department for the
23 reporting period exceeds $1,200, no discount shall be allowed
24 for all amounts in excess of $1,200.
25 Section 12. Section 212.0602, Florida Statutes, is
26 amended to read:
27 212.0602 Education; limited exemption.--To facilitate
28 investment in education and job training, there is also exempt
29 from the taxes levied under this chapter, subject to the
30 provisions of this section, the purchase or lease of
31 materials, equipment, and other items or the license in or
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1 lease of real property by any entity, institution, or
2 organization that is primarily engaged in teaching students to
3 perform any of the activities or services described in s.
4 212.031(1)(a)9., that conducts classes at a fixed location
5 located in this state, that is licensed under chapter 246, and
6 that has at least 500 enrolled students. Any entity,
7 institution, or organization meeting the requirements of this
8 section shall be deemed to qualify for the exemptions in ss.
9 212.031(1)(a)9. and 212.08(5)(f) and (12), and to qualify for
10 an exemption for its purchase or lease of materials,
11 equipment, and other items used for education or demonstration
12 of the school's curriculum, including supporting operations.
13 Nothing in this section shall preclude an entity described in
14 this section from qualifying for any other exemption provided
15 for in this chapter.
16 Section 13. Paragraph (ii) of subsection (7) and
17 subsection (10) of section 212.08, Florida Statutes, 1998
18 Supplement, are amended to read:
19 212.08 Sales, rental, use, consumption, distribution,
20 and storage tax; specified exemptions.--The sale at retail,
21 the rental, the use, the consumption, the distribution, and
22 the storage to be used or consumed in this state of the
23 following are hereby specifically exempt from the tax imposed
24 by this chapter.
25 (7) MISCELLANEOUS EXEMPTIONS.--
26 (ii) Certain electricity or steam uses.--
27 1. Subject to the phase-in provisions in subparagraph
28 4., charges for electricity or steam used to operate machinery
29 and equipment at a fixed location in this state when such
30 machinery and equipment is used to manufacture, process,
31 compound, produce, or prepare for shipment items of tangible
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1 personal property for sale, or to operate pollution control
2 equipment, recycling equipment, maintenance equipment, or
3 monitoring or control equipment used in such operations are
4 exempt to the extent provided in this paragraph. If In order
5 to qualify for this exemption, 75 percent or more of the
6 electricity or steam used at the fixed location is must be
7 used to operate qualifying machinery or equipment, 100 percent
8 of the charges for electricity or steam used at the fixed
9 location is exempt. If less than 75 percent but 50 percent or
10 more of the electricity or steam is used at the a fixed
11 location is used to operate qualifying machinery or equipment,
12 then it is presumed that 50 percent of the charges for
13 electricity or steam used at the fixed location is exempt
14 charge for electricity is for nonexempt purposes. If less than
15 50 percent of the electricity or steam used at the fixed
16 location is used to operate qualifying machinery and
17 equipment, none of the charges for electricity or steam used
18 at the fixed location is exempt.
19 2. This exemption applies only to industries
20 classified under SIC Industry Major Group Numbers 10, 12, 13,
21 14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,
22 35, 36, 37, 38, and 39. As used in this paragraph, "SIC" means
23 those classifications contained in the Standard Industrial
24 Classification Manual, 1987, as published by the Office of
25 Management and Budget, Executive Office of the President.
26 3. Possession by a seller of a written certification
27 by the purchaser, certifying the purchaser's entitlement to an
28 exemption permitted by this subsection, relieves the seller
29 from the responsibility of collecting the tax on the
30 nontaxable amounts, and the department shall look solely to
31
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1 the purchaser for recovery of such tax if it determines that
2 the purchaser was not entitled to the exemption.
3 4. Such exemption shall be applied as follows:
4 a. Beginning July 1, 1996, 20 percent of the charges
5 for such electricity shall be exempt.
6 b. Beginning July 1, 1997, 40 percent of the charges
7 for such electricity shall be exempt.
8 c. Beginning July 1, 1998, 60 percent of the charges
9 for such electricity or steam shall be exempt.
10 d. Beginning July 1, 1999, 80 percent of the charges
11 for such electricity or steam shall be exempt.
12 e. Beginning July 1, 2000, 100 percent of the charges
13 for such electricity or steam shall be exempt.
14 5. Notwithstanding any other provision in this
15 paragraph to the contrary, in order to receive the exemption
16 provided in this paragraph a taxpayer must first register with
17 the WAGES Program Business Registry established by the local
18 WAGES coalition for the area in which the taxpayer is located.
19 Such registration establishes a commitment on the part of the
20 taxpayer to hire WAGES program participants to the maximum
21 extent possible consistent with the nature of their business.
22 6.a. In order to determine whether the exemption
23 provided in this paragraph from the tax on charges for
24 electricity or steam has an effect on retaining or attracting
25 companies to this state, the Office of Program Policy Analysis
26 and Governmental Accountability shall periodically monitor and
27 report on the industries receiving the exemption.
28 b. The first report shall be submitted no later than
29 January 1, 1997, and must be conducted in such a manner as to
30 specifically determine the number of companies within each SIC
31 Industry Major Group receiving the exemption as of September
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1 1, 1996, and the number of individuals employed by companies
2 within each SIC Industry Major Group receiving the exemption
3 as of September 1, 1996.
4 c. The second report shall be submitted no later than
5 January 1, 2001, and must be comprehensive in scope, but, at a
6 minimum, must be conducted in such a manner as to specifically
7 determine the number of companies within each SIC Industry
8 Major Group receiving the exemption as of September 1, 2000,
9 the number of individuals employed by companies within each
10 SIC Industry Major Group receiving the exemption as of
11 September 1, 2000, whether the change, if any, in such number
12 of companies or employees is attributable to the exemption
13 provided in this paragraph, whether it would be sound public
14 policy to continue or discontinue the exemption, and the
15 consequences of doing so.
16 d. Both reports shall be submitted to the President of
17 the Senate, the Speaker of the House of Representatives, the
18 Senate Minority Leader, and the House Minority Leader.
19
20 Exemptions provided to any entity by this subsection shall not
21 inure to any transaction otherwise taxable under this chapter
22 when payment is made by a representative or employee of such
23 entity by any means, including, but not limited to, cash,
24 check, or credit card even when that representative or
25 employee is subsequently reimbursed by such entity.
26 (10) PARTIAL EXEMPTION; MOTOR VEHICLE SOLD TO RESIDENT
27 OF ANOTHER STATE.--The tax collected on the sale of a new or
28 used motor vehicle in this state to a resident of another
29 state shall be an amount equal to the sales tax which would be
30 imposed on such sale under the laws of the state of which the
31 purchaser is a resident, except that such tax shall not exceed
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1 the tax that would otherwise be imposed under this chapter.
2 At the time of the sale, the purchaser shall execute a
3 notarized statement of his or her intent to license the
4 vehicle in the state of which the purchaser is a resident
5 within 45 10 days of the sale and of the fact of the payment
6 to the State of Florida of a sales tax in an amount equivalent
7 to the sales tax of his or her state of residence and shall
8 submit the statement to the appropriate sales tax collection
9 agency in his or her state of residence. Nothing in this
10 subsection shall be construed to require the removal of the
11 vehicle from this state following the filing of an intent to
12 license the vehicle in the purchaser's home state if the
13 purchaser licenses the vehicle in his or her home state within
14 45 days after the date of sale.
15 Section 14. Effective January 1, 2000, paragraph (e)
16 of subsection (4) of section 212.11, Florida Statutes, 1998
17 Supplement, is amended to read:
18 212.11 Tax returns and regulations.--
19 (4)
20 (e) The penalty provisions of this chapter, except s.
21 212.12(2)(e) s. 212.12(2)(c), apply to the provisions of this
22 subsection.
23 Section 15. Effective January 1, 2000, subsection (2)
24 of section 212.12, Florida Statutes, 1998 Supplement, is
25 amended to read:
26 212.12 Dealer's credit for collecting tax; penalties
27 for noncompliance; powers of Department of Revenue in dealing
28 with delinquents; brackets applicable to taxable transactions;
29 records required.--
30 (2)(a) When any person, firm, or corporation required
31 hereunder to make any return or to pay any tax or fee imposed
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1 by this chapter fails to timely file such return or fails to
2 pay the tax or fee due within the time required hereunder, in
3 addition to all other penalties provided herein and by the
4 laws of this state in respect to such taxes or fees, a
5 specific penalty shall be added to the tax or fee in the
6 amount of 10 percent of any unpaid tax or fee if the failure
7 is for not more than 30 days, with an additional 10 percent of
8 any unpaid tax or fee for each additional 30 days, or fraction
9 thereof, during the time which the failure continues, not to
10 exceed a total penalty of 50 percent, in the aggregate, of any
11 unpaid tax or fee. In no event may the penalty be less than
12 $10 for failure to timely file a tax return required by s.
13 212.11(1)(b) or $5 for failure to timely file a tax return
14 authorized by s. 212.11(1)(c) or (d).
15 (b) Any person who knowingly and with a willful intent
16 to evade any tax imposed under this chapter fails to file six
17 consecutive returns as required by law commits a felony of the
18 third degree, punishable as provided in s. 775.082 or s.
19 775.083.
20 (c) Any person who makes a false or fraudulent return
21 with a willful intent to evade payment of any tax or fee
22 imposed under this chapter is, in addition to the other
23 penalties provided by law, liable for a specific penalty of
24 100 percent of the tax bill or fee and for fine and punishment
25 as provided in s. 775.082, s. 775.083, or s. 775.084.
26 1. If the total amount of unreported taxes or fees is
27 less than $300, the first offense is a misdemeanor of the
28 second degree, the second offense is a misdemeanor of the
29 first degree, and the third and each subsequent offense is a
30 felony of the third degree.
31
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1 2. If the total amount of unreported taxes or fees is
2 at least $300 but less than $20,000, the offense is a felony
3 of the third degree.
4 3. If the total amount of unreported taxes or fees is
5 at least $20,000 but less than $100,000, the offense is a
6 felony of the second degree.
7 4. If the total amount of unreported taxes or fees is
8 $100,000 or more, the offense is a felony of the first degree.
9 In the case of a false or fraudulent return or a willful
10 intent to evade payment of any tax or fee imposed under this
11 chapter, in addition to the other penalties provided by law,
12 the person making such false or fraudulent return or willfully
13 attempting to evade the payment of such a tax or fee shall be
14 liable for a specific penalty of 100 percent of the tax bill
15 or fee and for fine and punishment as provided by law for a
16 conviction of a misdemeanor of the first degree.
17 (d)(b) When any person, firm, or corporation fails to
18 timely remit the proper estimated payment required under s.
19 212.11, a specific penalty shall be added in an amount equal
20 to 10 percent of any unpaid estimated tax. Beginning with
21 January 1, 1985, returns, The department, upon a showing of
22 reasonable cause, is authorized to waive or compromise
23 penalties imposed by this paragraph. However, other penalties
24 and interest shall be due and payable if the return on which
25 the estimated payment was due was not timely or properly
26 filed.
27 (e)(c) Dealers filing a consolidated return pursuant
28 to s. 212.11(1)(e) s. 212.11(1)(d) shall be subject to the
29 penalty established in paragraph (b) unless the dealer has
30 paid the required estimated tax for his or her consolidated
31 return as a whole without regard to each location. If the
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1 dealer fails to pay the required estimated tax for his or her
2 consolidated return as a whole, each filing location shall
3 stand on its own with respect to calculating penalties
4 pursuant to paragraph (b).
5 Section 16. Subsection (8) is added to section 213.27,
6 Florida Statutes, to read:
7 213.27 Contracts with debt collection agencies.--
8 (8)(a) The executive director of the department may
9 enter into contracts with private vendors to develop and
10 implement systems for enhancing tax collections. The vendor's
11 compensation under such a contract must be funded through
12 increased tax collections. The amount of the compensation paid
13 to a vendor must be a percentage of the increase in the amount
14 of tax collected which is attributable to the system, after
15 all administrative and judicial appeals are exhausted, and the
16 total amount of compensation paid to a vendor may not exceed
17 the maximum amount stated in the contract.
18 (b) A person acting on behalf of the department under
19 a contract authorized by this section does not exercise any of
20 the powers of the department, except that the person is an
21 agent of the department for the purposes of developing and
22 implementing a system for enhancing tax collections.
23 (c) Disclosure of information under this subsection
24 must be governed by a written agreement between the executive
25 director and the private vendor. The vendor is bound by the
26 confidentiality requirements that apply to the Department of
27 Revenue. Breach of confidentiality is a misdemeanor of the
28 first degree, punishable as provided in s. 775.082 or s.
29 775.083.
30 Section 17. Subsection (1) of section 213.67, Florida
31 Statutes, 1998 Supplement, is amended to read:
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1 213.67 Garnishment.--
2 (1) If a person is delinquent in the payment of any
3 taxes, penalties, and interest owed to the department, the
4 executive director or his or her designee may give notice of
5 the amount of such delinquency by registered mail to all
6 persons having in their possession or under their control any
7 credits or personal property, exclusive of wages, belonging to
8 the delinquent taxpayer, or owing any debts to such delinquent
9 taxpayer at the time of receipt by them of such notice.
10 Thereafter, any person who has been notified may not transfer
11 or make any other disposition of such credits, other personal
12 property, or debts until the executive director or his or her
13 designee consents to a transfer or disposition or until 60
14 days after the receipt of such notice, except that the amount
15 by which the value of the credits, other personal property, or
16 debts, wherever held, exceeds the delinquent amount stipulated
17 in the notice is exempt from this section if the dealer does
18 not have a prior history of tax delinquencies. If during the
19 effective period of the notice to withhold, any person so
20 notified makes any transfer or disposition of the property or
21 debts required to be withheld hereunder, he or she is liable
22 to the state for any indebtedness owed to the department by
23 the person with respect to whose obligation the notice was
24 given to the extent of the value of the property or the amount
25 of the debts thus transferred or paid if, solely by reason of
26 such transfer or disposition, the state is unable to recover
27 the indebtedness of the person with respect to whose
28 obligation the notice was given. If the delinquent taxpayer
29 contests the intended levy in circuit court or under chapter
30 120, the notice under this section remains effective until
31 that final resolution of the contest. Any financial
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1 institution receiving such notice will maintain a right of
2 setoff for any transaction involving a debit card occurring on
3 or before the date of receipt of such notice.
4 Section 18. Effective January 1, 2000, section
5 213.757, Florida Statutes, is created to read:
6 213.757 Willful failure to pay over funds or
7 destruction of records by agent.--Any person who accepts from
8 a taxpayer money that is due to the department, for the
9 purpose of acting as the taxpayer's agent to make the payment
10 to the department, but who willfully fails to remit the
11 payment to the department when due, commits a felony of the
12 third degree, punishable as provided in s. 775.082, s.
13 775.083, or s. 775.084. Any person who has possession as a
14 taxpayer's agent of the taxpayer's records that are required
15 to be maintained under the revenue laws of this state and who
16 intentionally destroys those records with the intent of
17 depriving the state of tax revenues commits a felony of the
18 third degree, punishable as provided in s. 775.082, s.
19 775.083, or s. 775.084.
20 Section 19. Paragraph (b) of subsection (1) of section
21 220.151, Florida Statutes, is amended to read:
22 220.151 Apportionment; methods for special
23 industries.--
24 (1)
25 (b) If the principal source of premiums written by an
26 insurance company consists of premiums for reinsurance
27 accepted by it, the tax base of such company shall be
28 apportioned to this state by multiplying such base by a
29 fraction the numerator of which is the sum of:
30 1. Direct premiums written for insurance upon
31 properties and risks in this state, plus
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1 2. Premiums written for reinsurance, accepted in
2 respect to properties and risks in this state,
3
4 and the denominator of which is the sum of direct premiums
5 written for insurance upon properties and risks everywhere
6 plus premiums written for reinsurance accepted in respect to
7 properties and risks everywhere. For purposes of this
8 paragraph, premiums written for reinsurance accepted in
9 respect to properties and risks in this state, whether or not
10 otherwise determinable, shall may, at the election of the
11 company, either be determined on the basis of the proportion
12 which premiums written for reinsurance accepted from companies
13 resident in or having a regional home office in the state
14 bears to premiums written for reinsurance accepted from all
15 sources or, alternatively, on the basis of the proportion
16 which the sum of the direct premiums written for insurance
17 upon properties and risks in this state by each ceding company
18 from which reinsurance is accepted bears to the sum of the
19 total direct premiums written by each such ceding company for
20 the taxable year.
21 Section 20. Section 220.21, Florida Statutes, is
22 amended to read:
23 220.21 Returns and records; regulations.--Every
24 taxpayer liable for the tax imposed by this code shall keep
25 such records, render such statements, make such returns and
26 notices, and comply with such rules and regulations, as the
27 department may from time to time prescribe. The director may
28 require any taxpayer or class of taxpayers, by notice or by
29 regulation, to make such returns and notices, render such
30 statements, and keep such records as the director deems
31 necessary to determine whether such taxpayer or taxpayers are
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1 liable for tax under this code. The department may prescribe
2 standards for acceptance of electronic or telephonic returns;
3 however, national standards for taxpayer authentication must
4 be used in lieu of signature.
5 Section 21. Subsection (3) of section 220.221, Florida
6 Statutes, is amended to read:
7 220.221 Returns; signing and verification.--
8 (3) Each return or notice required to be filed under
9 this code shall be verified by a written declaration that it
10 is made under the penalties of perjury, and if prepared by
11 someone other than the taxpayer the return shall also contain
12 a declaration by the preparer that it was prepared on the
13 basis of all information of which the preparer had knowledge.
14 Section 22. Paragraphs (a) and (b) of subsection (2)
15 of section 220.222, Florida Statutes, 1998 Supplement, are
16 amended to read:
17 220.222 Returns; time and place for filing.--
18 (2)(a) When a taxpayer has been granted an extension
19 or extensions of time within which to file its federal income
20 tax return for any taxable year, and if the requirements of s.
21 220.32 are met, the filing of a written request for such
22 extension or extensions with the department shall
23 automatically extend the due date of the return required under
24 this code until 15 days after the expiration of the federal
25 extension or until the expiration of 6 months from the
26 original due date, whichever first occurs.
27 (b) The department may grant an extension or
28 extensions of time for the filing of any return required under
29 this code upon receiving a prior written request therefor if
30 good cause for an extension is shown. However, the aggregate
31 extensions of time under paragraphs (a) and (b) shall not
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1 exceed 6 months. No extension granted under this paragraph
2 shall be valid unless the taxpayer complies with the
3 requirements of s. 220.32.
4 Section 23. Section 166.235, Florida Statutes, is
5 created to read:
6 166.235 Procedure on purchaser's request for refund or
7 credit.--
8 (1) A purchaser seeking a refund of or credit for
9 public service taxes shall submit a written request therefor
10 to the seller within the time prescribed in s. 166.234(6) and
11 in accordance with this section. A request may not be granted
12 unless the amount claimed was collected from the purchaser and
13 was not due to any municipality.
14 (a) The request must be signed by the purchaser and is
15 considered completed for purposes of this section and the
16 limitations period if it states the purchaser's name, mailing
17 address, and account number; the tax amounts claimed; the
18 specific months during which those amounts were collected; and
19 the reason for the purchaser's claim that such amounts were
20 not due to any municipality. Upon receipt of a completed
21 request, the seller shall ascertain whether it collected the
22 tax claimed from the purchaser and whether the request is
23 timely.
24 (b) Within 30 days following receipt of a completed
25 request, the seller shall determine whether lists available
26 pursuant to s. 166.233(3) support the purchaser's claim and
27 whether all or any portion of the tax timely claimed was not
28 due to any municipality and was collected solely as a result
29 of the seller's error. The seller shall refund or credit the
30 purchaser's account for any such amount within 45 days
31 following its determination thereof.
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1 (c) With respect to all amounts timely claimed which
2 the seller collected from the purchaser and which the seller
3 has not determined to be subject to refund or credit pursuant
4 to paragraph (b), the seller shall within 30 days following
5 receipt of the completed request provide a copy thereof to
6 each municipality to which the taxes claimed were remitted and
7 to each municipality that has asserted in writing the right to
8 impose the tax in a geographic area that includes the
9 purchaser's billing address or service address, as the case
10 may be. Within 30 days following receipt of such information,
11 each such municipality shall notify the seller in writing if
12 it approves the issuance of a refund or credit for all or a
13 specified portion of the purchaser's claim. A municipality
14 shall approve the refund or credit except to the extent that
15 the tax was due to such municipality. Within 45 days
16 following receipt of notifications establishing that all of
17 the municipalities receiving the request have approved a
18 refund or credit, the seller shall issue a refund or credit
19 the purchaser's account for the amount approved by all such
20 municipalities. The seller's obligation to refund or credit
21 the purchaser's account is limited to amounts approved in
22 accordance with this section. The seller is entitled to a
23 corresponding refund or credit from any municipality to which
24 the tax was remitted.
25 (d) The seller shall issue a written response advising
26 the purchaser of the disposition of the purchaser's request.
27 The response shall specify any portion of the tax claimed that
28 is being refunded or credited to the purchaser's account and
29 the reason for denial of any portion of the request. Reasons
30 for denial include untimely submission of the request, the
31 failure of the seller to collect the tax claimed, the absence
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1 of municipal approval to issue a refund or credit, the
2 previous receipt by the purchaser of a refund of or credit for
3 the same tax, and the failure to provide information required
4 to complete the request. A copy of each notification received
5 from a municipality pursuant to paragraph (c) must accompany
6 the response. If the seller submitted the request to a
7 municipality but received no such notification, the response
8 must so state. With respect to any portion of the request
9 that is granted, the response must be issued at the time of
10 refund or credit to the purchaser's account. With respect to
11 any portion of the request which is denied, the response must
12 be issued within 90 days following receipt of the purchaser's
13 completed request.
14 (e) The seller may deduct from any refund or credit
15 under this section any amount owed by the purchaser to the
16 seller which is delinquent.
17 (2) This section provides the sole and exclusive
18 procedure and remedy for a purchaser who claims that a seller
19 has collected municipal public service taxes that were not
20 due. An action arising as a result of the claimed collection
21 of municipal public service taxes that were not due may not be
22 commenced or maintained by or on behalf of a purchaser against
23 a seller or a municipality unless the purchaser pleads and
24 proves that the purchaser has exhausted the procedures in
25 subsection (1) and that the defendant has failed to comply
26 with that subsection; however, no determination of a seller
27 under paragraph (1)(b) shall be deemed to be a failure to
28 comply with subsection (1) if the seller has complied with
29 paragraphs (1)(c) and (d). In any such action it is a
30 complete defense that the seller or municipality has refunded
31 the taxes claimed or has credited the purchaser's account
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1 therewith; and in such an action against a seller it is a
2 complete defense that the seller collected the tax in reliance
3 upon written information provided by a municipality pursuant
4 to s. 166.233(3) or supplementing such information. Such an
5 action must be commenced within 180 days following the
6 purchaser's submission of a completed request, or it is
7 barred. The relief available to a purchaser as a result of
8 collection of municipal public service taxes that were not due
9 is limited to a refund of or credit for such taxes.
10 Section 24. Section 166.235, Florida Statutes, as
11 created by this act, is remedial in nature, and applies to all
12 claims asserted by purchasers before, on, or after the
13 effective date of this act based upon the alleged collection
14 of municipal public service taxes that were not due, except
15 for claims that have been finally resolved by judgment,
16 settlement, or the issuance of refunds or credits before the
17 effective date of this act. With respect to any claim that
18 was properly asserted before the effective date of this act
19 and that is the subject of pending litigation in a trial or
20 appellate court on or after the effective date of this act,
21 the court shall, upon motion, direct the parties to comply
22 with the procedures prescribed in section 166.235, Florida
23 Statutes, as created by this act, and allow such amendments of
24 the pleadings and enter such other orders as are appropriate
25 to dispose of the cause in a manner consistent with section
26 166.235, Florida Statutes, as created by this act.
27 Section 25. Except as otherwise expressly provided in
28 this act, this act shall take effect July 1, 1999, except that
29 the amendments made by this act to sections 198.12, 198.13,
30 198.23, 198.26, 198.32, 198.33, and 198.39, Florida Statutes,
31 apply to taxes with respect to estates of decedents who have
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1 passed away after December 31, 1999, and the law in effect
2 before January 1, 2000, shall apply to estates of decedents
3 who have passed away before such date.
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