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



                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___

                            CHAMBER ACTION
              Senate                               House
                                   .
                                   .
  1                                .
                                   .
  2                                .
                                   .
  3                                .
                                   .
  4  ______________________________________________________________

  5

  6

  7

  8

  9

10  ______________________________________________________________

11  Senator Horne moved the following amendment:

12

13         Senate Amendment (with title amendment) 

14         Delete everything after the enacting clause

15

16  and insert:

17         Section 1.  Section 196.2002, Florida Statutes, is

18  created to read:

19         196.2002  Exemption for 501(c)(12) Not-for-Profit Water

20  and Wastewater Systems.--Property of any not-for-profit water

21  and wastewater corporation which holds a current exemption

22  from federal income tax under section 501(c)(12) of the

23  Internal Revenue Code, as amended, shall be exempt from ad

24  valorem taxation if the sole or primary function of the

25  corporation is to construct, maintain or operate a water

26  and/or wastewater system in this state.

27         Section 2.  Paragraph (a) of subsection (3) of section

28  95.091, Florida Statutes, is amended to read:

29         95.091  Limitation on actions to collect taxes.--

30         (3)(a)  With the exception of taxes levied under

31  chapter 198 and tax adjustments made pursuant to s. 220.23,

                                  1
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  the Department of Revenue may determine and assess the amount

  2  of any tax, penalty, or interest due under any tax enumerated

  3  in s. 72.011 which it has authority to administer and the

  4  Department of Business and Professional Regulation may

  5  determine and assess the amount of any tax, penalty, or

  6  interest due under any tax enumerated in s. 72.011 which it

  7  has authority to administer:

  8         1.a.  For taxes due before July 1, 1999, within 5 years

  9  after the date the tax is due, any return with respect to the

10  tax is due, or such return is filed, whichever occurs later;

11  and for taxes due on or after July 1, 1999, within 3 years

12  after the date the tax is due, any return with respect to the

13  tax is due, or such return is filed, whichever occurs later;

14         b.  Effective July 1, 2002, notwithstanding

15  sub-subparagraph a., within 3 years after the date the tax is

16  due, any return with respect to the tax is due, or such return

17  is filed, whichever occurs later;

18         2.  For taxes due before July 1, 1999, within 6 years

19  after the date the taxpayer either makes a substantial

20  underpayment of tax, or files a substantially incorrect

21  return;

22         3.  At any time while the right to a refund or credit

23  of the tax is available to the taxpayer;

24         4.  For taxes due before July 1, 1999, at any time

25  after the taxpayer has filed a grossly false return;

26         5.  At any time after the taxpayer has failed to make

27  any required payment of the tax, has failed to file a required

28  return, or has filed a fraudulent return, except that for

29  taxes due on or after July 1, 1999, the limitation prescribed

30  in subparagraph 1. sub-subparagraph a. applies if the taxpayer

31  has disclosed in writing the tax liability to the department

                                  2
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  before the department has contacted the taxpayer; or

  2         6.  In any case in which there has been a refund of tax

  3  erroneously made for any reason:

  4         a.  For refunds made before July 1, 1999, within 5

  5  years after making such refund; and

  6         b.  For refunds made on or after July 1, 1999, within 3

  7  years after making such refund,

  8

  9  or at any time after making such refund if it appears that any

10  part of the refund was induced by fraud or the

11  misrepresentation of a material fact.

12         Section 3.  Subsection (2) of section 106.265, Florida

13  Statutes, is amended to read:

14         106.265  Civil penalties.--

15         (2)  If any person, political committee, committee of

16  continuous existence, or political party fails or refuses to

17  pay to the commission any civil penalties assessed pursuant to

18  the provisions of this section, the commission Department of

19  Revenue shall be responsible for collecting the civil

20  penalties resulting from such action.

21         Section 4.  Paragraph (b) of subsection (14) of section

22  120.80, Florida Statutes, is amended to read:

23         120.80  Exceptions and special requirements;

24  agencies.--

25         (14)  DEPARTMENT OF REVENUE.--

26         (b)  Taxpayer contest proceedings.--

27         1.  In any administrative proceeding brought pursuant

28  to this chapter as authorized by s. 72.011(1), the taxpayer

29  shall be designated the "petitioner" and the Department of

30  Revenue shall be designated the "respondent," except that for

31  actions contesting an assessment or denial of refund under

                                  3
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  chapter 207, the Department of Highway Safety and Motor

  2  Vehicles shall be designated the "respondent," and for actions

  3  contesting an assessment or denial of refund under chapters

  4  210, 550, 561, 562, 563, 564, and 565, the Department of

  5  Business and Professional Regulation shall be designated the

  6  "respondent."

  7         2.  In any such administrative proceeding, the

  8  applicable department's burden of proof, except as otherwise

  9  specifically provided by general law, shall be limited to a

10  showing that an assessment has been made against the taxpayer

11  and the factual and legal grounds upon which the applicable

12  department made the assessment.

13         3.a.  Prior to filing a petition under this chapter,

14  the taxpayer shall pay to the applicable department the amount

15  of taxes, penalties, and accrued interest assessed by that

16  department which are not being contested by the taxpayer.

17  Failure to pay the uncontested amount shall result in the

18  dismissal of the action and imposition of an additional

19  penalty of 25 percent of the amount taxed.

20         b.  The requirements of s. 72.011(2) and (3)(a) are

21  jurisdictional for any action under this chapter to contest an

22  assessment or denial of refund by the Department of Revenue,

23  the Department of Highway Safety and Motor Vehicles, or the

24  Department of Business and Professional Regulation.

25         4.  Except as provided in s. 220.719, further

26  collection and enforcement of the contested amount of an

27  assessment for nonpayment or underpayment of any tax,

28  interest, or penalty shall be stayed beginning on the date a

29  petition is filed. Upon entry of a final order, an agency may

30  resume collection and enforcement action.

31         5.  The prevailing party, in a proceeding under ss.

                                  4
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  120.569 and 120.57 authorized by s. 72.011(1), may recover all

  2  legal costs incurred in such proceeding, including reasonable

  3  attorney's fees, if the losing party fails to raise a

  4  justiciable issue of law or fact in its petition or response.

  5         6.  Upon review pursuant to s. 120.68 of final agency

  6  action concerning an assessment of tax, penalty, or interest

  7  with respect to a tax imposed under chapter 212, or the denial

  8  of a refund of any tax imposed under chapter 212, if the court

  9  finds that the Department of Revenue improperly rejected or

10  modified a conclusion of law, the court may award reasonable

11  attorney's fees and reasonable costs of the appeal to the

12  prevailing appellant.

13         Section 5.  Subsection (1) of section 166.231, Florida

14  Statutes, is amended, to read:

15         166.231  Municipalities; public service tax.--

16         (1)(a)  A municipality may levy a tax on the purchase

17  of electricity, metered natural gas, liquefied petroleum gas

18  either metered or bottled, manufactured gas either metered or

19  bottled, and water service. Except for those municipalities in

20  which (c) applies, the tax shall be levied only upon purchases

21  within the municipality and shall not exceed 10 percent of the

22  payments received by the seller of the taxable item from the

23  purchaser for the purchase of such service. Municipalities

24  imposing a tax on the purchase of cable television service as

25  of May 4, 1977, may continue to levy such tax to the extent

26  necessary to meet all obligations to or for the benefit of

27  holders of bonds or certificates which were issued prior to

28  May 4, 1977.  Purchase of electricity means the purchase of

29  electric power by a person who will consume it within the

30  municipality.

31         (b)  The tax imposed by paragraph (a) shall not be

                                  5
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  applied against any fuel adjustment charge, and such charge

  2  shall be separately stated on each bill. The term "fuel

  3  adjustment charge" means all increases in the cost of utility

  4  services to the ultimate consumer resulting from an increase

  5  in the cost of fuel to the utility subsequent to October 1,

  6  1973.

  7         (c)  The tax in paragraph (a) on water service may be

  8  applied outside municipal boundaries to property included in a

  9  development of regional impact approved pursuant to s. 380.06,

10  if agreed to in writing by the development of such property

11  and the municipality prior to March 31, 2000, if a tax levied

12  pursuant to the subsection is challenged, recovery, if any,

13  shall be limited to monies paid into an escrow account of the

14  clerk of the court subsequent to such challenge.

15         Section 6.  Section 175.111, Florida Statutes, is

16  amended to read:

17         175.111  Certified copy of ordinance or resolution

18  filed; insurance companies' annual report of premiums;

19  duplicate files; book of accounts.--For any municipality,

20  special fire control district, chapter plan, local law

21  municipality, local law special fire control district, or

22  local law plan under this chapter, whenever any municipality

23  passes an ordinance or whenever any special fire control

24  district passes a resolution establishing a chapter plan or

25  local law plan assessing and imposing the taxes authorized in

26  s. 175.101, a certified copy of such ordinance or resolution

27  shall be deposited with the division. Thereafter every

28  insurance company, association, corporation, or other insurer

29  carrying on the business of property insurance on real or

30  personal property, on or before the succeeding March 1 after

31  date of the passage of the ordinance or resolution, shall

                                  6
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  report fully in writing and under oath to the division and the

  2  Department of Revenue a just and true account of all premiums

  3  by such insurer received for property insurance policies

  4  covering or insuring any real or personal property located

  5  within the corporate limits of each such municipality or

  6  special fire control district during the period of time

  7  elapsing between the date of the passage of the ordinance or

  8  resolution and the end of the calendar year.  The report shall

  9  include the code designation as prescribed by the division for

10  each piece of insured property, real or personal, located

11  within the corporate limits of each municipality and within

12  the legally defined boundaries of each special fire control

13  district.  The aforesaid insurer shall annually thereafter, on

14  March 1, file with the division and the Department of Revenue

15  a similar report covering the preceding year's premium

16  receipts, and every such insurer at the same time of making

17  such reports shall pay to the Department of Revenue the amount

18  of the tax hereinbefore mentioned.  Every insurer engaged in

19  carrying on such insurance business in the state shall keep

20  accurate books of accounts of all such business done by it

21  within the corporate limits of each such municipality and

22  within the legally defined boundaries of each such special

23  fire control district, and in such manner as to be able to

24  comply with the provisions of this chapter.  Based on the

25  insurers' reports of premium receipts, the division shall

26  prepare a consolidated premium report and shall furnish to any

27  municipality or special fire control district requesting the

28  same a copy of the relevant section of that report.

29         Section 7.  Section 185.09, Florida Statutes, is

30  amended to read:

31         185.09  Report of premiums paid; date tax payable.--For

                                  7
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  any municipality, chapter plan, local law municipality, or

  2  local law plan under this chapter, whenever any municipality

  3  passes an ordinance establishing a chapter plan or local law

  4  plan and assessing and imposing the tax authorized in s.

  5  185.08, a certified copy of such ordinance shall be deposited

  6  with the division; and thereafter every insurance company,

  7  corporation, or other insurer carrying on the business of

  8  casualty insuring, on or before the succeeding March 1 after

  9  date of the passage of the ordinance, shall report fully in

10  writing to the division and the Department of Revenue a just

11  and true account of all premiums received by such insurer for

12  casualty insurance policies covering or insuring any property

13  located within the corporate limits of such municipality

14  during the period of time elapsing between the date of the

15  passage of the ordinance and the end of the calendar year. The

16  aforesaid insurer shall annually thereafter, on March 1, file

17  with the division and the Department of Revenue a similar

18  report covering the preceding year's premium receipts. Every

19  such insurer shall, at the time of making such report, pay to

20  the Department of Revenue the amount of the tax heretofore

21  mentioned. Every insurer engaged in carrying on a general

22  casualty insurance business in the state shall keep accurate

23  books of account of all such business done by it within the

24  limits of such incorporated municipality in such a manner as

25  to be able to comply with the provisions of this chapter.

26  Based on the insurers' reports of premium receipts, the

27  division shall prepare a consolidated premium report and shall

28  furnish to any municipality requesting the same a copy of the

29  relevant section of that report.

30         Section 8.  Paragraphs (r) and (s) are added to

31  subsection (7) of section 213.053, Florida Statutes, to read:

                                  8
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1         213.053  Confidentiality and information sharing.--

  2         (7)  Notwithstanding any other provision of this

  3  section, the department may provide:

  4         (r)  Information relative to the returns required by

  5  ss. 175.111 and 185.09 to the Department of Management

  6  Services in the conduct of its official duties. The Department

  7  of Management Services is, in turn, authorized to disclose

  8  payment information to a governmental agency as necessary in

  9  the administration of chapters 175 and 185.

10         (s)  Names, addresses, and federal employer

11  identification numbers, or similar identifiers, to the

12  Department of Highway Safety and Motor Vehicles for use in the

13  conduct of its official duties.

14

15  Disclosure of information under this subsection shall be

16  pursuant to a written agreement between the executive director

17  and the agency.  Such agencies, governmental or

18  nongovernmental, shall be bound by the same requirements of

19  confidentiality as the Department of Revenue.  Breach of

20  confidentiality is a misdemeanor of the first degree,

21  punishable as provided by s. 775.082 or s. 775.083.

22         Section 9.  Section 189.420, Florida Statutes, is

23  created to read:

24         189.420  Assessments levied on facilities regulated

25  under chapter 513.--When an independent or dependent special

26  district levies an assessment on a facility regulated under

27  chapter 513, the assessment shall not be based on the

28  assertion that the facility is comprised of residential units.

29  Instead, facilities regulated under chapter 513 shall be

30  assessed in the same manner as a hotel, motel, or other

31  similar facility.

                                  9
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1         Section 10.  Effective January 1, 2001, paragraph (g)

  2  is added to subsection (1) of section 203.01, Florida

  3  Statutes, to read:

  4         203.01  Tax on gross receipts for utility services.--

  5         (1)(a)  Every person that receives payment for any

  6  utility service shall report by the last day of each month to

  7  the Department of Revenue, under oath of the secretary or some

  8  other officer of such person, the total amount of gross

  9  receipts derived from business done within this state, or

10  between points within this state, for the preceding month and,

11  at the same time, shall pay into the State Treasury an amount

12  equal to a percentage of such gross receipts at the rate set

13  forth in paragraph (b).  Such collections shall be certified

14  by the Comptroller upon the request of the State Board of

15  Education.

16         (b)  Beginning July 1, 1992, and thereafter, the rate

17  shall be 2.5 percent.

18         (c)  Any person who purchases, installs, rents, or

19  leases a telephone system or telecommunication system for his

20  or her own use to provide that person with telephone service

21  or telecommunication service which is a substitute for any

22  telephone company switched service or a substitute for any

23  dedicated facility by which a telephone company provides a

24  communication path shall register with the Department of

25  Revenue and pay into the State Treasury a yearly amount equal

26  to a percentage of the actual cost of operating such system at

27  the rate set forth in paragraph (b). "Actual cost" includes,

28  but is not limited to, depreciation, interest, maintenance,

29  repair, and other expenses directly attributable to the

30  operation of such system.  For purposes of this paragraph, the

31  depreciation expense to be included in actual cost shall be

                                  10
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  the depreciation expense claimed for federal income tax

  2  purposes. The total amount of any payment required by a lease

  3  or rental contract or agreement shall be included within the

  4  actual cost.  The provisions of this paragraph do not apply to

  5  the use by any local telephone company or any

  6  telecommunication carrier of its own telephone system or

  7  telecommunication system to conduct a telecommunication

  8  service for hire or to the use of any radio system operated by

  9  any county or municipality or by the state or any political

10  subdivision thereof.  If a system described in this paragraph

11  is located in more than one state, the actual cost of such

12  system for purposes of this paragraph shall be the actual cost

13  of the system's equipment located in Florida.  The term

14  "telecommunications carrier" specifically includes cellular

15  telephone carriers and other radio common carriers.

16         (d)  Electricity produced by cogeneration or by small

17  power producers which is transmitted and distributed by a

18  public utility between two locations of a customer of the

19  utility pursuant to s. 366.051 is subject to the tax imposed

20  by this section.  The tax shall be applied to the cost price

21  of such electricity as provided in s. 212.02(4) and shall be

22  paid each month by the producer of such electricity.

23         (e)  Electricity produced by cogeneration or by small

24  power producers during the 12-month period ending June 30 of

25  each year which is in excess of nontaxable electricity

26  produced during the 12-month period ending June 30, 1990, is

27  subject to the tax imposed by this section.  The tax shall be

28  applied to the cost price of such electricity as provided in

29  s. 212.02(4) and shall be paid each month, beginning with the

30  month in which total production exceeds the production of

31  nontaxable electricity for the 12-month period ending June 30,

                                  11
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  1990.  For purposes of this paragraph, "nontaxable

  2  electricity" means electricity produced by cogeneration or by

  3  small power producers which is not subject to tax under

  4  paragraph (d).  Taxes paid pursuant to paragraph (d) may be

  5  credited against taxes due under this paragraph.  Electricity

  6  generated as part of an industrial manufacturing process which

  7  manufactures products from phosphate rock, raw wood fiber,

  8  paper, citrus or any agricultural product shall not be subject

  9  to the tax imposed by this paragraph. "Industrial

10  manufacturing process" means the entire process conducted at

11  the location where the process takes place.

12         (f)  Any person other than a cogenerator or small power

13  producer described in paragraph (e) who produces for his or

14  her own use electrical energy which is a substitute for

15  electrical energy produced by an electric utility as defined

16  in s. 366.02 is subject to the tax imposed by this section.

17  The tax shall be applied to the cost price of such electrical

18  energy as provided in s. 212.02(4) and shall be paid each

19  month.  The provisions of this paragraph do not apply to any

20  electrical energy produced and used by an electric utility.

21         (g)  Notwithstanding any other provision of this

22  chapter, with the exception of a telephone or

23  telecommunication system described in paragraph (c), the

24  department may require:

25         1.  A quarterly return and payment when the tax

26  remitted for the preceding four calendar quarters did not

27  exceed $1,000;

28         2.  A semiannual return and payment when the tax

29  remitted for the preceding four calendar quarters did not

30  exceed $500; or

31         3.  An annual return and payment when the tax remitted

                                  12
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  for the preceding four calendar quarters did not exceed $100.

  2         Section 11.  Effective July 1, 2000, section 206.09,

  3  Florida Statutes, is amended to read:

  4         206.09  Reports from carriers transporting motor fuel

  5  or similar products.--

  6         (1)  Every railroad company, pipeline company, water

  7  transportation company, private carrier, and common carrier

  8  transporting motor fuel, casinghead gasoline, natural

  9  gasoline, naphtha, or diesel fuel distillate, either in

10  interstate or intrastate or foreign commerce, to points within

11  Florida, and every person transporting motor fuel, casinghead

12  gasoline, natural gasoline, naphtha, or diesel fuel

13  distillate, by whatever manner, to a point in Florida from any

14  point outside of said state, shall file monthly returns

15  setting forth:

16         (a)  The name under which such person is transacting

17  business within the state.

18         (b)  The location with street number address of such

19  person's principal office or place of business within the

20  state.

21         (c)  The name, federal employer identification number

22  or, if such number is not available, the social security

23  number, and business address of the owner or the names and

24  addresses of the partners, if such person is a partnership, or

25  the principal officers, if such person is a corporation or

26  association.

27         (2)  Such person or company shall report under oath to

28  the department on forms prescribed by the department all

29  deliveries of motor fuel, casinghead gasoline, natural

30  gasoline, naphtha, or diesel fuel distillate so made to points

31  within the state.

                                  13
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1         (3)  Such reports shall cover monthly periods and be

  2  submitted within 20 days after the close of the month covered

  3  by the report and shall show:

  4         (a)  The name, federal employer identification number

  5  or, if such number is not available, the social security

  6  number, and complete business address of the person to whom

  7  the deliveries of motor fuel, casinghead gasoline, natural

  8  gasoline, naphtha, or diesel fuel distillate have actually and

  9  in fact been made;

10         (b)  The name, federal employer identification number

11  or, if such number is not available, the social security

12  number, and complete business address of the originally named

13  consignee, if motor fuel, casinghead gasoline, natural

14  gasoline, naphtha, or diesel fuel distillate has been

15  delivered to any person other than the originally named

16  consignee;

17         (c)  The municipality and state of origin, the

18  municipality, county, and state of delivery, the date of

19  delivery, and the number and initials of each tank car and the

20  number of gallons contained therein, if shipped by rail;

21         (d)  The name of the boat, barge, or vessel and the

22  number of gallons contained therein, if shipped by water;

23         (e)  The company unit number of each tank truck and the

24  number of gallons contained therein, if transported by motor

25  truck;

26         (f)  If delivered by other means, the manner in which

27  such delivery is made; and

28         (g)  Such other additional information relative to

29  shipments of motor fuel as the department may require.

30         (4)  The department is authorized to suspend the

31  reporting requirements of this section if substantially the

                                  14
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  same data is filed with the Internal Revenue Service and

  2  provided to the department through a national information

  3  reporting system.

  4         (5)(4)  If any such person or company required to file

  5  under this section fails to make a complete report, the

  6  department shall impose, in addition to any other penalty or

  7  interest due, a penalty in the amount of $200.

  8         Section 12.  Effective July 1, 2000, section 206.095,

  9  Florida Statutes, is amended to read:

10         206.095  Reports from terminal operators.--

11         (1)  Every terminal operator who stores, handles, or

12  transfers motor fuel, casinghead gasoline, natural gasoline,

13  naphtha, diesel fuel, kerosene, or other middle distillates

14  shall file a report on forms prescribed by the department.

15  The report shall be filed on a monthly basis within 20 days

16  after the close of the month covered by the report and shall

17  show:

18         (a)  The name, address, and license number of the

19  terminal supplier, importer, or exporter storing or

20  transferring such product.

21         (b)  The name of the boat, barge, or vessel

22  transporting the product to the terminal.

23         (c)  The number of gallons and type of product which is

24  being stored.

25         (d)  Such other additional information relative to

26  shipments and storage of products as the department may

27  require.

28         (2)  The department is authorized to suspend the

29  reporting requirements of this section if substantially the

30  same data is filed with the Internal Revenue Service and

31  provided to the department through a national information

                                  15
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  reporting system.

  2         (3)(2)  If any terminal operator fails to make a

  3  complete report, the department shall impose, in addition to

  4  any other penalty and interest due, a penalty in the amount of

  5  $100.

  6         Section 13.  Effective July 1, 2000, section 212.051,

  7  Florida Statutes, is amended to read:

  8         212.051  Equipment, or machinery, and other materials

  9  for pollution control; not subject to sales or use tax.--

10         (1)  Notwithstanding any provision to the contrary,

11  sales, use, or privilege taxes shall not be collected with

12  respect to any facility, device, fixture, equipment, or

13  machinery, specialty chemical, or bioaugmentation product used

14  primarily for the control or abatement of pollution or

15  contaminants in manufacturing, processing, compounding, or

16  producing for sale items of tangible personal property at a

17  fixed location, or any structure, machinery, or equipment

18  installed in the reconstruction or replacement of such

19  facility, device, fixture, equipment, or machinery. To

20  qualify, such facility, device, fixture, equipment, or

21  structure, specialty chemical, or bioaugmentation product must

22  be used, installed, or constructed to meet a law implemented

23  by, or a condition of a permit issued by, the Department of

24  Environmental Protection; however, such exemption shall not be

25  allowed unless the purchaser signs a certificate stating that

26  the facility, device, fixture, equipment, or structure,

27  specialty chemical, or bioaugmentation product to be exempted

28  is required to meet such law or condition.

29         (2)  Equipment, machinery, or materials required to

30  meet any law implemented by, or any condition of a permit

31  issued by, the Department of Environmental Protection that are

                                  16
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  purchased for the monitoring, prevention, abatement, or

  2  control of pollution or contaminants at privately owned or

  3  operated landfills or construction and demolition debris

  4  disposal facilities shall be exempt from taxation as otherwise

  5  imposed by this chapter; however, such exemption shall not be

  6  allowed unless the purchaser signs a certificate stating that

  7  the equipment, machinery, or materials to be exempted are

  8  required to meet such law or condition.  This exemption does

  9  not include solid waste collection vehicles, compactors,

10  graders, or other earthmoving equipment.

11         (3)  For the purposes of this section, "specialty

12  chemicals" means those chemicals used to enhance or further

13  treat wastewater, including, but not limited to, defoamers,

14  nutrients, and polymers, and "bioaugmentation products" means

15  the microorganisms used in waste treatment plants to break

16  down solids and consume organic matter.

17         Section 14.  (1)  Paragraph (c) of subsection (1) of

18  section 212.06, Florida Statutes, is amended to read:

19         212.06  Sales, storage, use tax; collectible from

20  dealers; "dealer" defined; dealers to collect from purchasers;

21  legislative intent as to scope of tax.--

22         (1)

23         (c)1.  Notwithstanding the provisions of paragraph (b),

24  the use tax on asphalt manufactured for one's own use shall be

25  calculated with respect to paragraph (b) only upon the cost of

26  materials which become a component part or which are an

27  ingredient of the finished asphalt and upon the cost of the

28  transportation of such components and ingredients.  In

29  addition, an indexed tax of 38 cents per ton of such

30  manufactured asphalt shall be due at the same time and in the

31  same manner as taxes due pursuant to paragraph (b). Beginning

                                  17
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  July 1, 1989, the indexed tax shall be adjusted each July 1 to

  2  an amount, rounded to the nearest cent, equal to the product

  3  of 38 cents multiplied by a fraction, the numerator of which

  4  is the annual average of the "materials and components for

  5  construction" series of the producer price index, as

  6  calculated and published by the United States Department of

  7  Labor, Bureau of Statistics, for the previous calendar year,

  8  and the denominator of which is the annual average of said

  9  series for calendar year 1988.

10         2.  Beginning July 1, 1999, the indexed tax imposed by

11  this paragraph on shall not apply to manufactured asphalt

12  which is used for any federal, state, or local government

13  public works project shall be reduced by 20 percent. Beginning

14  July 1, 1999, 20 percent of such amount is exempt.

15         (2)  It is the intent of the Legislature that the

16  amendment to s. 212.06(1)(c), Florida Statutes, by this

17  section is remedial in nature and merely clarifies existing

18  law.

19         Section 15.  (1)  Effective July 1, 2000, paragraphs

20  (a) and (c) of subsection (5) and paragraph (eee) of

21  subsection (7) of section 212.08, Florida Statutes, are

22  amended, and paragraph (ggg) is added to subsection (7) of

23  said section, to read:

24         212.08  Sales, rental, use, consumption, distribution,

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

26  the rental, the use, the consumption, the distribution, and

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

28  following are hereby specifically exempt from the tax imposed

29  by this chapter.

30         (5)  EXEMPTIONS; ACCOUNT OF USE.--

31         (a)  Items in agricultural use and certain nets.--There

                                  18
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  are exempt from the tax imposed by this chapter nets designed

  2  and used exclusively by commercial fisheries; disinfectants,

  3  fertilizers, insecticides, pesticides, herbicides, fungicides,

  4  and weed killers used for application on crops or groves,

  5  including commercial nurseries and home vegetable gardens,

  6  used in dairy barns or on poultry farms for the purpose of

  7  protecting poultry or livestock, or used directly on poultry

  8  or livestock; portable containers or moveable receptacles in

  9  which portable containers are placed, used for processing farm

10  products; field and garden seeds, including flower seeds;

11  nursery stock, seedlings, cuttings, or other propagative

12  material purchased for growing stock; seeds, seedlings,

13  cuttings, and plants used to produce food for human

14  consumption; cloth, plastic, and other similar materials used

15  for shade, mulch, or protection from frost or insects on a

16  farm; generators used on poultry farms; and liquefied

17  petroleum gas or other fuel used to heat a structure in which

18  started pullets or broilers are raised; however, such

19  exemption shall not be allowed unless the purchaser or lessee

20  signs a certificate stating that the item to be exempted is

21  for the exclusive use designated herein. Also exempt are

22  cellophane wrappers, glue for tin and glass (apiarists),

23  mailing cases for honey, shipping cases, window cartons, and

24  baling wire and twine used for baling hay, when used by a

25  farmer to contain, produce, or process an agricultural

26  commodity.

27         (c)  Machinery and equipment used in production of

28  electrical or steam energy.--

29         1.  The purchase of machinery and equipment for use at

30  a fixed location which machinery and equipment are necessary

31  in the production of electrical or steam energy resulting from

                                  19
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  the burning of boiler fuels other than residual oil is exempt

  2  from the tax imposed by this chapter.  Such electrical or

  3  steam energy must be primarily for use in manufacturing,

  4  processing, compounding, or producing for sale items of

  5  tangible personal property in this state. Use of a de minimis

  6  amount of residual fuel to facilitate the burning of

  7  nonresidual fuel shall not reduce the exemption otherwise

  8  available under this paragraph.

  9         2.  In facilities where machinery and equipment are

10  necessary to burn both residual and nonresidual fuels, the

11  exemption shall be prorated. Such proration shall be based

12  upon the production of electrical or steam energy from

13  nonresidual fuels as a percentage of electrical or steam

14  energy from all fuels. If it is determined that 15 percent or

15  less of all electrical or steam energy generated was produced

16  by burning residual fuel, the full exemption shall apply.

17  Purchasers claiming a partial exemption shall obtain such

18  exemption by refund of taxes paid, or as otherwise provided in

19  the department's rules.

20         3.  The department may adopt rules that provide for

21  implementation of this exemption. Purchasers of machinery and

22  equipment qualifying for the exemption provided in this

23  paragraph shall furnish the department with an affidavit

24  stating that the item or items to be exempted are for the use

25  designated herein. Any person furnishing a false affidavit to

26  the vendor for the purpose of evading payment of any tax

27  imposed under this chapter shall be subject to the penalty set

28  forth in s. 212.085 and as otherwise provided by law.

29  Purchasers with self-accrual authority shall maintain all

30  documentation necessary to prove the exempt status of

31  purchases.

                                  20
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1         (7)  MISCELLANEOUS EXEMPTIONS.--

  2         (eee)  Certain repair and labor charges.--

  3         1.  Subject to the provisions of subparagraphs 2. and

  4  3., there is exempt from the tax imposed by this chapter all

  5  labor charges for the repair of, and parts and materials used

  6  in the repair of and incorporated into, industrial machinery

  7  and equipment which is used for the manufacture, processing,

  8  compounding, or production, or preparation for shipping of

  9  items of tangible personal property at a fixed location within

10  this state.

11         2.  This exemption applies only to industries

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

13  14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,

14  35, 36, 37, 38, and 39 and Industry Group Number 212. As used

15  in this subparagraph, "SIC" means those classifications

16  contained in the Standard Industrial Classification Manual,

17  1987, as published by the Office of Management and Budget,

18  Executive Office of the President.

19         3.  This exemption shall be applied as follows:

20         a.  Beginning July 1, 1999, 25 percent of such charges

21  for repair parts and labor shall be exempt.

22         b.  Beginning July 1, 2000, 50 percent of such charges

23  for repair parts and labor shall be exempt.

24         c.  Beginning July 1, 2001, 75 percent of such charges

25  for repair parts and labor shall be exempt.

26         d.  Beginning July 1, 2002, 100 percent of such charges

27  for repair parts and labor shall be exempt.

28         (ggg)  People-mover systems.--People-mover systems, and

29  parts thereof, which are purchased or manufactured by

30  contractors employed either directly by or as agents for the

31  United States Government, the state, a county, a municipality,

                                  21
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  a political subdivision of the state, or the public operator

  2  of a public-use airport as defined by s. 332.004(14) are

  3  exempt from the tax imposed by this chapter when the systems

  4  or parts go into or become part of publicly owned facilities.

  5  In the case of contractors who manufacture and install such

  6  systems and parts, this exemption extends to the purchase of

  7  component parts and all other manufacturing and fabrication

  8  costs. The department may provide a form to be used by

  9  contractors to provide to suppliers of people-mover systems or

10  parts to certify the contractors' eligibility for the

11  exemption provided under this paragraph. As used in this

12  paragraph, "people-mover systems" includes wheeled passenger

13  vehicles and related control and power distribution systems

14  that are part of a transportation system for use by the

15  general public, regardless of whether such vehicles are

16  operator-controlled or driverless, self-propelled or propelled

17  by external power and control systems, or conducted on roads,

18  rails, guidebeams, or other permanent structures that are an

19  integral part of such transportation system. "Related control

20  and power distribution systems" includes any electrical or

21  electronic control or signaling equipment, but does not

22  include the embedded wiring, conduits, or cabling used to

23  transmit electrical or electronic signals among such control

24  equipment, power distribution equipment, signaling equipment,

25  and wheeled vehicles.

26

27  Exemptions provided to any entity by this subsection shall not

28  inure to any transaction otherwise taxable under this chapter

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

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

31  check, or credit card even when that representative or

                                  22
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  employee is subsequently reimbursed by such entity.

  2         (2)  The amendment to s. 212.08(7)(eee)2., Florida

  3  Statutes, by this section is remedial in nature and shall have

  4  the same force and effect as if SIC Industry Major Group

  5  Number 35 had been included from July 1, 1999.

  6         Section 16.  Effective July 1, 2000, paragraph (c) of

  7  subsection (1) of section 212.11, Florida Statutes, is amended

  8  to read:

  9         212.11  Tax returns and regulations.--

10         (1)

11         (c)  However, the department may require:

12         1.  A quarterly return and payment when the tax

13  remitted by the dealer for the preceding four calendar

14  quarters did not exceed $1,000.

15         2.  A semiannual return and payment when the tax

16  remitted by the dealer for the preceding four calendar

17  quarters did not exceed $500.

18         3.  An annual return and payment when the tax remitted

19  by the dealer for the preceding four calendar quarters did not

20  exceed $100.

21         4.  A quarterly return and monthly payment when the tax

22  remitted by the dealer for the preceding four calendar

23  quarters exceeded $1,000 but did not exceed $12,000.

24

25  The department is authorized to allow a dealer filing returns

26  and paying tax under subparagraph 1., subparagraph 2.,

27  subparagraph 3., or subparagraph 4. to continue to use the

28  same filing frequency, even though the dealer has paid tax in

29  a filing period that is greater than the maximum amount

30  allowed for such period. The dealer must submit a written

31  request to the department to be continued on the same filing

                                  23
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  frequency, and such request must be based on an explanation

  2  that the tax amount submitted represents nonrecurring business

  3  activity.

  4         Section 17.  (1)  Paragraph (c) of subsection (6) of

  5  section 212.12, Florida Statutes, is amended to read:

  6         212.12  Dealer's credit for collecting tax; penalties

  7  for noncompliance; powers of Department of Revenue in dealing

  8  with delinquents; brackets applicable to taxable transactions;

  9  records required.--

10         (6)

11         (c)1.  If the records of a dealer are adequate but

12  voluminous in nature and substance, the department may

13  statistically sample such records, except for fixed assets,

14  and project the audit findings derived therefrom over the

15  entire audit period to determine the proportion that taxable

16  retail sales bear to total retail sales or the proportion that

17  taxable purchases bear to total purchases.  In order to

18  conduct such a sample, the department must first make a good

19  faith effort to reach an agreement with the dealer, which

20  agreement provides for the means and methods to be used in the

21  sampling process.  In the event that no agreement is reached,

22  the dealer is entitled to a review by the executive director.

23         2.  For the purposes of sampling pursuant to

24  subparagraph 1., the department shall project any deficiencies

25  and overpayments derived therefrom over the entire audit

26  period. In determining the dealer's compliance, the department

27  shall reduce any tax deficiency as derived from the sample by

28  the amount of any overpayment derived from the sample. In the

29  event the department determines from the sample results that

30  the dealer has a net tax overpayment, the department shall

31  provide the findings of this overpayment to the Comptroller

                                  24
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  for repayment of funds paid into the State Treasury through

  2  error pursuant to s. 215.26.

  3         (2)  It is the intent of the Legislature that this

  4  section clarify rather than change existing law. Further, this

  5  section shall apply to all tax periods that are still open for

  6  assessment or refund when this section takes effect, including

  7  tax periods that are the subject of assessment or refund

  8  claims that are pending in administrative or judicial

  9  proceedings when this section takes effect.

10         Section 18.  Effective July 1, 2000, subsections (3)

11  and (5) of section 213.015, Florida Statutes, are amended to

12  read:

13         213.015  Taxpayer rights.--There is created a Florida

14  Taxpayer's Bill of Rights to guarantee that the rights,

15  privacy, and property of Florida taxpayers are adequately

16  safeguarded and protected during tax assessment, collection,

17  and enforcement processes administered under the revenue laws

18  of this state.  The Taxpayer's Bill of Rights compiles, in one

19  document, brief but comprehensive statements which explain, in

20  simple, nontechnical terms, the rights and obligations of the

21  Department of Revenue and taxpayers.  The rights afforded

22  taxpayers to assure that their privacy and property are

23  safeguarded and protected during tax assessment and collection

24  are available only insofar as they are implemented in other

25  parts of the Florida Statutes or rules of the Department of

26  Revenue. The rights so guaranteed Florida taxpayers in the

27  Florida Statutes and the departmental rules are:

28         (3)  The right to be represented or advised by counsel

29  or other qualified representatives at any time in

30  administrative interactions with the department, the right to

31  procedural safeguards with respect to recording of interviews

                                  25
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  during tax determination or collection processes conducted by

  2  the department, the right to be treated in a professional

  3  manner by department personnel, and the right to have audits,

  4  inspections of records, and interviews conducted at a

  5  reasonable time and place except in criminal and internal

  6  investigations (see ss. 198.06, 199.218, 201.11(1), 203.02,

  7  206.14, 211.125(3), 211.33(3), 212.0305(3), 212.12(5)(a),

  8  (6)(a), and (13), 212.13(5), 213.05, 213.21(1)(a) and (c), and

  9  213.34).

10         (5)  The right to obtain simple, nontechnical

11  statements which explain the reason for audit selection and

12  the procedures, remedies, and rights available during audit,

13  appeals, and collection proceedings, including, but not

14  limited to, the rights pursuant to this Taxpayer's Bill of

15  Rights and the right to be provided with a narrative

16  description which explains the basis of audit changes,

17  proposed assessments, assessments, and denials of refunds;

18  identifies any amount of tax, interest, or penalty due; and

19  states the consequences of the taxpayer's failure to comply

20  with the notice.

21         Section 19.  (1)  Effective July 1, 2000, subsections

22  (2) and (3) of section 213.21, Florida Statutes, are amended

23  to read:

24         213.21  Informal conferences; compromises.--

25         (2)(a)  The executive director of the department or his

26  or her designee is authorized to enter into closing agreements

27  with any taxpayer settling or compromising the taxpayer's

28  liability for any tax, interest, or penalty assessed under any

29  of the chapters specified in s. 72.011(1). Such agreements

30  shall be in writing when the amount of tax, penalty, or

31  interest compromised exceeds $30,000 or for lesser amounts

                                  26
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  when the department deems it appropriate or when requested by

  2  the taxpayer. When a written closing agreement has been

  3  approved by the department and signed by the executive

  4  director or his or her designee and the taxpayer, it shall be

  5  final and conclusive; and, except upon a showing of fraud or

  6  misrepresentation of material fact or except as to adjustments

  7  pursuant to ss. 198.16 and 220.23, no additional assessment

  8  may be made by the department against the taxpayer for the

  9  tax, interest, or penalty specified in the closing agreement

10  for the time period specified in the closing agreement, and

11  the taxpayer shall not be entitled to institute any judicial

12  or administrative proceeding to recover any tax, interest, or

13  penalty paid pursuant to the closing agreement.  The

14  department is authorized to delegate to the executive director

15  the authority to approve any such closing agreement resulting

16  in a tax reduction of $250,000 or less.

17         (b)  Notwithstanding the provisions of paragraph (a),

18  for the purpose of facilitating the settlement and

19  distribution of an estate held by a personal representative,

20  the executive director of the department may, on behalf of the

21  state, agree upon the amount of taxes at any time due or to

22  become due from such personal representative under the

23  provisions of chapter 198; and payment in accordance with such

24  agreement shall be full satisfaction of the taxes to which the

25  agreement relates.

26         (c)  Notwithstanding paragraph (a), for the purpose of

27  compromising the liability of any taxpayer for tax or interest

28  on the grounds of doubt as to liability based on the

29  taxpayer's reasonable reliance on a written determination

30  issued by the department as described in paragraph (3)(b), the

31  department may compromise the amount of such tax or interest

                                  27
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  liability resulting from such reasonable reliance.

  2         (3)(a)  A taxpayer's liability for any tax or interest

  3  specified in s. 72.011(1) may be compromised by the department

  4  upon the grounds of doubt as to liability for or

  5  collectibility of such tax or interest. A taxpayer's liability

  6  for penalties under any of the chapters specified in s.

  7  72.011(1) may be settled or compromised if it is determined by

  8  the department that the noncompliance is due to reasonable

  9  cause and not to willful negligence, willful neglect, or

10  fraud. A taxpayer who establishes reasonable reliance on the

11  written advice issued by the department to the taxpayer will

12  be deemed to have shown reasonable cause for the

13  noncompliance. In addition, a taxpayer's liability for

14  penalties under any of the chapters specified in s. 72.011(1)

15  in excess of 25 percent of the tax shall be settled or

16  compromised if the department determines that the

17  noncompliance is due to reasonable cause and not to willful

18  negligence, willful neglect, or fraud. The department shall

19  maintain records of all compromises, and the records shall

20  state the basis for the compromise. The records of compromise

21  under this paragraph shall not be subject to disclosure

22  pursuant to s. 119.07(1) and shall be considered confidential

23  information governed by the provisions of s. 213.053.

24         (b)  Doubt as to liability of a taxpayer for tax and

25  interest exists if the taxpayer demonstrates that he or she

26  reasonably relied on a written determination of the department

27  in any of the following circumstances:

28         1.  The audit workpapers clearly show that the same

29  issue was considered in a prior audit of the taxpayer

30  conducted by or on behalf of the department and, after

31  consideration of the issue, the department's auditor

                                  28
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  determined that no assessment was appropriate in regard to

  2  that issue.

  3         2.  The same issue was raised in a prior audit of the

  4  taxpayer and during the informal protest of the proposed

  5  assessment the department issued a notice of decision

  6  withdrawing the issue from the assessment.

  7         3.  The taxpayer received a technical assistance

  8  advisement pursuant to s. 213.22 in regard to the issue.

  9

10  The circumstances listed in this paragraph are not intended to

11  be the only circumstances in which doubt as to liability

12  exists. Nothing contained in this section shall interfere with

13  the state's ability to structure a remedy to cure a judicially

14  determined constitutional defect in a tax law.

15         (c)  A taxpayer shall not be deemed to have reasonably

16  relied on a written determination of the department under any

17  of the following circumstances:

18         1.  The taxpayer misrepresented material facts or did

19  not fully disclose material facts at the time the written

20  determination was issued.

21         2.  The specific facts and circumstances have changed

22  in such a material manner that the written determination no

23  longer applies.

24         3.  The statutes or regulations on which the

25  determination was based have been materially revised or a

26  published judicial opinion constituting precedent in the

27  taxpayer's jurisdiction has overruled the department's

28  determination on the issue.

29         4.  The department has informed the taxpayer in writing

30  that its previous written determination has been revised and

31  should no longer be relied upon.

                                  29
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1         (d)(b)  A taxpayer's liability for the service fee

  2  required by s. 215.34(2) may be settled or compromised if it

  3  is determined that the dishonored check, draft, or order was

  4  returned due to an error committed by the issuing financial

  5  institution, and the error is substantiated by the department.

  6  The department shall maintain records of all compromises, and

  7  the records shall state the basis for the compromise.

  8         (2)  The amendments to s. 213.21(2) and (3), Florida

  9  Statutes, by this section shall apply only to notices of

10  intent to conduct an audit issued on or after October 1, 2000.

11         Section 20.  Subsection (6) of section 213.235, Florida

12  Statutes, is repealed.

13         Section 21.  Subsection (9) is added to section 213.27,

14  Florida Statutes, to read:

15         213.27  Contracts with debt collection agencies and

16  certain vendors.--

17         (9)(a)  The department may enter into contracts with

18  public or private vendors to develop and implement a voluntary

19  system for sales and use tax collection and administration.

20  The amount of compensation paid to vendors shall be

21  established by the executive director of the department and

22  shall be based upon a percentage of the sales and use tax

23  collections made through the system or on a per transaction

24  basis; however, if the amount of compensation is based upon a

25  percentage of the sales and use tax collections made through

26  the system, the percentage shall not exceed the negotiated

27  percentage provided in s. 212.12(1). The department shall

28  provide quarterly reports to the Speaker of the House of

29  Representatives, Minority Leader of the House of

30  Representatives, President of the Senate, and Minority Leader

31  of the Senate on the amount of compensation paid pursuant to

                                  30
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  these contracts. The system shall have the capability to

  2  determine the taxability of a transaction, the appropriate tax

  3  rate to be applied to a taxable transaction, and the total tax

  4  due on a transaction, and shall provide a method for remitting

  5  the tax to the department. The department shall be responsible

  6  for testing and certifying the accuracy of the system.

  7         (b)  A seller of goods or services subject to sales and

  8  use tax who utilizes the system for purposes of computation

  9  and remittance of sales and use tax shall not be subject to

10  the reporting and remittance requirements of ss. 212.11 and

11  212.15(1) for those transactions handled through the system

12  and shall not be entitled to the credit provided in s.

13  212.12(1). A seller of goods or services subject to sales and

14  use tax who utilizes the system for purposes of computation

15  and remittance of sales and use tax shall not be subject to

16  audit for those transactions handled through the system,

17  unless there are indicia that fraud has been committed by the

18  seller.

19         (c)  Disclosure of information necessary under this

20  subsection shall be pursuant to a written agreement between

21  the executive director of the department and the vendor. The

22  vendor shall be bound by the same requirements of

23  confidentiality as the department. Breach of confidentiality

24  is a misdemeanor of the first degree, punishable as provided

25  in s. 775.082 or s. 775.083.

26         (d)  On or before January 1 annually, the department

27  shall provide recommendations to the Speaker of the House of

28  Representatives, Minority Leader of the House of

29  Representatives, President of the Senate, and Minority Leader

30  of the Senate for provisions to be adopted for inclusion

31  within the system that will make sales and use tax collection

                                  31
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  and administration simplified and uniform.

  2         Section 22.  (1)  Paragraph (n) of subsection (1) and

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

  4  Statutes, are amended to read:

  5         220.03  Definitions.--

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

  7  not otherwise distinctly expressed or manifestly incompatible

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

  9  following meanings:

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

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

12  January 1, 2000 1999, except as provided in subsection (3).

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

14  neither otherwise distinctly expressed nor manifestly

15  incompatible with the intent thereof:

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

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

18  Revenue Code and other statutes of the United States relating

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

20  effect on January 1, 2000 1999. However, if subsection (3) is

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

22  time the term is applied under this code.

23         (2)  This section shall operate retroactively to

24  January 1, 2000.

25         Section 23.  Subsection (2) of section 220.62, Florida

26  Statutes, is amended to read:

27         220.62  Definitions.--For purposes of this part:

28         (2)  The term "savings association" means a savings

29  association holding company registered under the Homeowners'

30  Loan Act (HOLA) of 1933, 12 U.S.C. 1467a, as amended, or any

31  savings association, building and loan association, savings

                                  32
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  and loan association, or mutual savings bank not having

  2  capital stock, whether subject to the laws of this or any

  3  other jurisdiction.

  4         Section 24.  Section 1 of chapter 98-187, Laws of

  5  Florida, applies retroactively to the renewal of any

  6  promissory note evidencing a term obligation executed on or

  7  after January 1, 1990, for which the tax under s. 201.09,

  8  Florida Statutes, has not been paid and which was the subject

  9  of a pending protest that was initiated prior to January 1,

10  1998.

11         Section 25.  For purposes of future calculations only,

12  the base year revenue received by a municipality for the

13  calendar year 1997, as provided for in ss. 175.351(1) and

14  185.35(1), Florida Statutes, respectively, shall be adjusted

15  by the Division of Retirement based on all original 1997

16  insurance returns as adjusted by all amended 1997 insurance

17  returns received by the Department of Revenue no later than

18  February 28, 2001. The Department of Revenue is authorized to

19  provide, and shall provide, the return data for the excise

20  taxes under chapters 175 and 185, Florida Statutes, to the

21  Division of Retirement. It is the intent of the Legislature

22  that this section shall not impact any judicial proceeding

23  pending on or before March 31, 2000.

24         Section 26.  For the period July 1, 1998, through June

25  30, 1999, every person who was classified under SIC Industry

26  Group Number 212 and who paid the tax imposed under chapter

27  212, Florida Statutes, on charges for steam or electrical

28  energy which was used in the manner described in s.

29  212.08(7)(ii), Florida Statutes, shall be entitled to receive

30  a refund of said taxes pursuant to ss. 213.255 and 215.26,

31  Florida Statutes. For the period July 1, 1998, through June

                                  33
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  30, 1999, every person who was classified under SIC Industry

  2  Group Number 212 and who did not pay the tax imposed under

  3  chapter 212, Florida Statutes, on charges for steam or

  4  electrical energy which was used in the manner described in s.

  5  212.08(7)(ii), Florida Statutes, shall not be required to pay

  6  the tax, penalty, or interest on those charges. As used in

  7  this section, "SIC" means those classifications contained in

  8  the Standard Industrial Classification Manual, 1987, as

  9  published by the Office of Management and Budget, Executive

10  Office of the President.

11         Section 27.  Notwithstanding the provisions of s.

12  199.052(10), Florida Statutes, failure to timely file a

13  consolidated return for any one or more years shall not

14  prejudice the taxpayer's right to file a consolidated return

15  if the consolidated return is filed prior to July 31, 2000,

16  and the affiliated group of corporations of which the taxpayer

17  is a member has previously filed consolidated returns for

18  corporate income tax purposes under s. 220.131, Florida

19  Statutes.

20         Section 28.  Effective July 1, 2000, paragraph (a) of

21  subsection (2) of section 210.20, Florida Statutes, is amended

22  to read:

23         210.20  Employees and assistants; distribution of

24  funds.--

25         (2)  As collections are received by the division from

26  such cigarette taxes, it shall pay the same into a trust fund

27  in the State Treasury designated "Cigarette Tax Collection

28  Trust Fund" which shall be paid and distributed as follows:

29         (a)  The division shall from month to month certify to

30  the Comptroller the amount derived from the cigarette tax

31  imposed by s. 210.02, less the service charges provided for in

                                  34
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  s. 215.20 and less 0.9 percent of the amount derived from the

  2  cigarette tax imposed by s. 210.02, which shall be deposited

  3  into the Alcoholic Beverage and Tobacco Trust Fund, specifying

  4  the amounts to be transferred from the Cigarette Tax

  5  Collection Trust Fund and credited on the basis of 5.8 percent

  6  of the net collections to the Municipal Financial Assistance

  7  Trust Fund, 32.4 percent of the net collections to the Revenue

  8  Sharing Trust Fund for Municipalities, 2.9 percent of the net

  9  collections to the Revenue Sharing Trust Fund for Counties,

10  and 29.3 percent of the net collections for the funding of

11  indigent health care to the Public Medical Assistance Trust

12  Fund.

13         Section 29.  Effective July 1, 2000, paragraph (f) of

14  subsection (6) of section 212.20, Florida Statutes, is amended

15  to read:

16         212.20  Funds collected, disposition; additional powers

17  of department; operational expense; refund of taxes

18  adjudicated unconstitutionally collected.--

19         (6)  Distribution of all proceeds under this chapter

20  shall be as follows:

21         (f)  The proceeds of all other taxes and fees imposed

22  pursuant to this chapter shall be distributed as follows:

23         1.  In any fiscal year, the greater of $500 million,

24  minus an amount equal to 4.6 percent of the proceeds of the

25  taxes collected pursuant to chapter 201, or 5 percent of all

26  other taxes and fees imposed pursuant to this chapter shall be

27  deposited in monthly installments into the General Revenue

28  Fund.

29         2.  Two-tenths of one percent shall be transferred to

30  the Solid Waste Management Trust Fund.

31         3.  After the distribution under subparagraphs 1. and

                                  35
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  2., 9.653 percent of the amount remitted by a sales tax dealer

  2  located within a participating county pursuant to s. 218.61

  3  shall be transferred into the Local Government Half-cent Sales

  4  Tax Clearing Trust Fund.

  5         4.  After the distribution under subparagraphs 1., 2.,

  6  and 3., 0.054 percent shall be transferred to the Local

  7  Government Half-cent Sales Tax Clearing Trust Fund and

  8  distributed pursuant to s. 218.65.

  9         5.  For proceeds received after July 1, 2000, and after

10  the distributions under subparagraphs 1., 2., 3., and 4.,

11  1.0715 percent of the available proceeds pursuant to this

12  paragraph shall be transferred monthly to the Revenue Sharing

13  Trust Fund for Municipalities pursuant to s. 218.215. If the

14  total revenue to be distributed pursuant to this subparagraph

15  is at least as great as the amount due from the Revenue

16  Sharing Trust Fund for Municipalities and the Municipal

17  Financial Assistance Trust Fund in state fiscal year

18  1999-2000, no municipality shall receive less than the amount

19  due from the Revenue Sharing Trust Fund for Municipalities and

20  the Municipal Financial Assistance Trust Fund in state fiscal

21  year 1999-2000. If the total proceeds to be distributed are

22  less than the amount received in combination from the Revenue

23  Sharing Trust Fund for Municipalities and the Municipal

24  Financial Assistance Trust Fund in state fiscal year

25  1999-2000, each municipality shall receive an amount

26  proportionate to the amount it was due in state fiscal year

27  1999-2000.

28         6.5.  Of the remaining proceeds:

29         a.  One hundred sixty-six thousand six hundred and

30  sixty-seven dollars Beginning July 1, 1992, $166,667 shall be

31  distributed monthly by the department to each applicant that

                                  36
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  has been certified as a "facility for a new professional

  2  sports franchise" or a "facility for a retained professional

  3  sports franchise" pursuant to s. 288.1162 and $41,667 shall be

  4  distributed monthly by the department to each applicant that

  5  has been certified as a "new spring training franchise

  6  facility" pursuant to s. 288.1162. Distributions shall begin

  7  60 days following such certification and shall continue for 30

  8  years. Nothing contained herein shall be construed to allow an

  9  applicant certified pursuant to s. 288.1162 to receive more in

10  distributions than actually expended by the applicant for the

11  public purposes provided for in s. 288.1162(7). However, a

12  certified applicant shall receive distributions up to the

13  maximum amount allowable and undistributed under this section

14  for additional renovations and improvements to the facility

15  for the franchise without additional certification.

16         b.  Beginning 30 days after notice by the Office of

17  Tourism, Trade, and Economic Development to the Department of

18  Revenue that an applicant has been certified as the

19  professional golf hall of fame pursuant to s. 288.1168 and is

20  open to the public, $166,667 shall be distributed monthly, for

21  up to 300 months, to the applicant.

22         c.  Beginning 30 days after notice by the Department of

23  Commerce to the Department of Revenue that the applicant has

24  been certified as the International Game Fish Association

25  World Center facility pursuant to s. 288.1169, and the

26  facility is open to the public, $83,333 shall be distributed

27  monthly, for up to 180 months, to the applicant.  This

28  distribution is subject to reduction pursuant to s. 288.1169.

29         7.6.  All other proceeds shall remain with the General

30  Revenue Fund.

31         Section 30.  Effective July 1, 2000, subsection (6) of

                                  37
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  section 288.1169, Florida Statutes, is amended to read:

  2         288.1169  International Game Fish Association World

  3  Center facility; department duties.--

  4         (6)  The Department of Commerce must recertify every 10

  5  years that the facility is open, that the International Game

  6  Fish Association World Center continues to be the only

  7  international administrative headquarters, fishing museum, and

  8  Hall of Fame in the United States recognized by the

  9  International Game Fish Association, and that the project is

10  meeting the minimum projections for attendance or sales tax

11  revenues as required at the time of original certification.

12  If the facility is not recertified during this 10-year review

13  as meeting the minimum projections, then funding will be

14  abated until certification criteria are met.  If the project

15  fails to generate $1 million of annual revenues pursuant to

16  paragraph (2)(e), the distribution of revenues pursuant to s.

17  212.20(6)(f)6.5.c. shall be reduced to an amount equal to

18  $83,333 multiplied by a fraction, the numerator of which is

19  the actual revenues generated and the denominator of which is

20  $1 million.  Such reduction shall remain in effect until

21  revenues generated by the project in a 12-month period equal

22  or exceed $1 million.

23         Section 31.  Effective July 1, 2000, paragraph (b) of

24  subsection (3) of section 11.45, Florida Statutes, is amended

25  to read:

26         11.45  Definitions; duties; audits; reports.--

27         (3)

28         (b)  The Legislative Auditing Committee shall direct

29  the Auditor General to make a financial audit of any

30  municipality whenever petitioned to do so by at least 20

31  percent of the electors of that municipality.  The supervisor

                                  38
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1  of elections of the county in which the municipality is

  2  located shall certify whether or not the petition contains the

  3  signatures of at least 20 percent of the electors of the

  4  municipality. After the completion of the audit, the Auditor

  5  General shall determine whether the municipality has the

  6  fiscal resources necessary to pay the cost of the audit. The

  7  municipality shall pay the cost of the audit within 90 days

  8  after the Auditor General's determination that the

  9  municipality has the available resources. If the municipality

10  fails to pay the cost of the audit, the Department of Revenue

11  shall, upon certification of the Auditor General, withhold

12  from that portion of the distribution pursuant to s.

13  212.20(6)(f)5. municipal financial assistance trust fund for

14  municipalities which is derived from the cigarette tax imposed

15  under chapter 210, and which is distributable to such

16  municipality, a sum sufficient to pay the cost of the audit

17  and shall deposit that sum into the General Revenue Fund of

18  the state.

19         Section 32.  Effective July 1, 2000, section 200.132,

20  Florida Statutes, is repealed.

21         Section 33.  Except as otherwise provided herein, this

22  act shall take effect upon becoming a law.

23

24

25  ================ T I T L E   A M E N D M E N T ===============

26  And the title is amended as follows:delete the entire title

27

28  and insert:

29                      A bill to be entitled

30         An act relating to taxation; creating s.

31         196.2002, F.S., providing an exemption for

                                  39
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1         not-for-profit water and wastewater

  2         corporations; amending s. 95.091, F.S.;

  3         specifying the time period within which the

  4         Department of Revenue and Department of

  5         Business and Professional Regulation may

  6         determine and assess the amount of certain

  7         taxes, penalties, or interest due beginning

  8         July 1, 2002; correcting a reference; amending

  9         s. 106.265, F.S.; providing that the Florida

10         Elections Commission, rather than the

11         Department of Revenue, shall have

12         responsibility for collecting civil penalties

13         for violation of chapter 104 or chapter 106,

14         F.S.; amending s. 120.80, F.S.; providing for

15         the award of reasonable attorney's fees and

16         costs of an appeal to a prevailing appellant on

17         an appeal of an assessment imposed or refund

18         denied under chapter 212, F.S., under specified

19         circumstances; amending s. 166.231(1), F.S., to

20         allow a municipality to levy tax on water

21         service outside municipal boundaries if an

22         agreement is reached by specific date; amending

23         ss. 175.111 and 185.09, F.S.; removing a

24         requirement that insurers subject to a premium

25         tax for a municipal or special district

26         firefighter pension plan or a municipal police

27         pension plan file an annual premium receipt

28         report with the Division of Retirement;

29         amending s. 213.053, F.S.; authorizing the

30         Department of Revenue to share information

31         regarding such reports with the Department of

                                  40
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1         Management Services, and to share certain

  2         identifying information with the Department of

  3         Highway Safety and Motor Vehicles; creating s.

  4         189.420, F.S.; providing requirements with

  5         respect to special district assessments on

  6         facilities regulated under ch. 513, F.S.;

  7         amending s. 203.01, F.S.; authorizing the

  8         department to require quarterly, semiannual, or

  9         annual returns for the tax on gross receipts

10         for utility services under certain conditions;

11         amending ss. 206.09 and 206.095, F.S.;

12         authorizing the department to suspend a

13         requirement for certain reports from carriers

14         transporting, or terminal operators handling,

15         motor fuel and similar products, under certain

16         conditions; amending s. 212.051, F.S.;

17         including specialty chemicals and

18         bioaugmentation products within the sales tax

19         exemption for equipment and machinery used for

20         pollution control in connection with the

21         manufacture of items of tangible personal

22         property for sale; providing definitions;

23         amending s. 212.06, F.S.; clarifying language

24         with respect to the exemption from the indexed

25         tax on manufactured asphalt for asphalt used

26         for government public works projects;

27         specifying that the exemption includes federal

28         projects; amending s. 212.08, F.S.; revising

29         application of the exemption for portable

30         containers used for processing farm products;

31         providing conditions under which the full sales

                                  41
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1         tax exemption for machinery and equipment used

  2         to produce electrical or steam energy will

  3         apply when both residual and nonresidual fuels

  4         are used; revising application of the sales tax

  5         exemption for repair and labor charges for

  6         certain industrial machinery and equipment;

  7         providing intent; providing an exemption for

  8         people-mover systems and parts thereof

  9         purchased or manufactured by certain

10         contractors; providing an exemption for the

11         purchase of component parts by, and other

12         manufacturing costs incurred by, certain

13         contractors who manufacture and install such

14         systems and parts; providing definitions;

15         amending s. 212.11, F.S.; authorizing the

16         department to allow a sales tax dealer to

17         continue to use a filing frequency when the

18         dealer exceeds the maximum tax for that

19         frequency, under certain conditions; amending

20         s. 212.12, F.S.; revising provisions which

21         authorize the department to sample a dealer's

22         records when such records are adequate but

23         voluminous, in order to determine the dealer's

24         tax liability; providing that overpayments and

25         deficiencies shall be projected over the entire

26         audit period, and the tax deficiency reduced or

27         refund made as necessary; providing intent;

28         amending s. 213.015, F.S.; specifying

29         additional taxpayer rights with respect to

30         treatment by department personnel and

31         explanation of the reason for audit selection;

                                  42
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1         amending s. 213.21, F.S.; providing conditions

  2         under which a taxpayer's liability may be

  3         compromised when the taxpayer establishes

  4         reasonable reliance on written advice issued by

  5         the department; providing application;

  6         repealing s. 213.235(6), F.S., which relates to

  7         application of the annual rate of interest

  8         applicable to tax payment deficiencies as

  9         determined under said section; amending s.

10         213.27, F.S.; authorizing the department to

11         contract with public or private vendors to

12         develop and implement a voluntary system for

13         sales and use tax collection and

14         administration; providing for compensation;

15         requiring reports; providing for application of

16         provisions of chapter 212, F.S., to system

17         users; providing for maintenance of

18         confidentiality of certain information;

19         providing a penalty; amending s. 220.03, F.S.;

20         updating references to the Internal Revenue

21         Code for corporate income tax purposes;

22         providing for retroactive effect; amending s.

23         220.62, F.S.; including savings association

24         holding companies registered under the

25         Homeowners' Loan Act within the definition of

26         "savings association" for purposes of the

27         franchise tax on banks and savings

28         associations; providing that s. 1 of ch.

29         98-187, Laws of Florida, which amends s.

30         201.09, F.S., to provide liability for the

31         excise tax on documents when a renewal note

                                  43
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1         increases the unpaid balance or the original

  2         face amount of the original contract and

  3         obligation, applies retroactively to certain

  4         term obligations; directing the Division of

  5         Retirement to adjust a municipality's 1997 base

  6         year revenue for purposes of its own pension

  7         plan for firefighters or police officers based

  8         on specified information; authorizing the

  9         department to provide data to the division;

10         providing that, for a specified period, persons

11         classified under SIC Industry Group Number 212

12         who paid tax under ch. 212, F.S., on certain

13         charges for steam or electrical energy entitled

14         to exemption are entitled to a refund, and that

15         such persons who did not pay the tax are not

16         required to pay the tax, penalty, or interest;

17         providing that failure to timely file a

18         consolidated return for intangible personal

19         property tax for any one or more years shall

20         not prejudice a taxpayer's right to file a

21         consolidated return under certain conditions;

22         amending s. 210.20, F.S.; eliminating transfers

23         of net cigarette tax collections to the

24         Municipal Financial Assistance Trust Fund and

25         Revenue Sharing Trust Fund for Municipalities;

26         amending s. 212.20, F.S.; authorizing a

27         distribution of proceeds under ch. 212, F.S.,

28         to the Revenue Sharing Trust Fund for

29         Municipalities; amending s. 288.1169, F.S.;

30         revising a cross reference, to conform;

31         amending s. 11.45, F.S.; revising a reference,

                                  44
    8:22 AM   05/04/00                              s1070c1c-06e0a




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1070, 1st Eng.

    Amendment No. ___





  1         to conform; repealing s. 200.132, F.S.,

  2         relating to the Municipal Financial Assistance

  3         Trust Fund; providing effective dates.

  4

  5

  6

  7

  8

  9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  45
    8:22 AM   05/04/00                              s1070c1c-06e0a