House Bill 0165

    Florida House of Representatives - 2000                 HB 165

        By Representative Byrd






  1                      A bill to be entitled

  2         An act relating to tax on sales, use, and other

  3         transactions; amending s. 212.17, F.S.;

  4         providing conditions under which a dealer who

  5         has entered into a private label credit card

  6         agreement may take a credit or obtain a refund

  7         for taxes paid on unpaid balances of worthless

  8         accounts; providing intent; providing an

  9         effective date.

10

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

12

13         Section 1.  Subsection (8) is added to section 212.17,

14  Florida Statutes, to read:

15         212.17  Credits for returned goods, rentals, or

16  admissions; goods acquired for dealer's own use and

17  subsequently resold; additional powers of department.--

18         (8)  A dealer who has paid the tax imposed by this

19  chapter on tangible personal property or services may take a

20  credit or obtain a refund for any tax paid by the dealer on

21  the unpaid balance due on worthless accounts within 12 months

22  following the month in which the bad debt has been charged off

23  for federal income tax purposes by the person who owns the

24  retail account pursuant to a private label credit card

25  agreement with the dealer. As used in this subsection,

26  "private label credit card agreement" means an agreement

27  directly between a dealer and a bank or other financial

28  institution pursuant to which the bank or other financial

29  institution issues to some of the dealer's customers credit

30  cards that carry the name of the dealer and can be used solely

31  for purchases from that dealer or from another member of an

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






    Florida House of Representatives - 2000                 HB 165

    577-154-00






  1  affiliated group of corporations, as defined by s.

  2  220.03(1)(b), in which the dealer is a member. In determining

  3  whether a credit or refund has been properly claimed, the

  4  department may look solely to records and information

  5  available from the dealer, and may, but shall not be required

  6  to, audit the bank or financial institution which issued the

  7  private label credit card. If any accounts so charged off for

  8  which a credit or refund has been obtained are thereafter in

  9  whole or in part paid, the amount so paid shall be included in

10  the first return filed after such collection and the tax paid

11  accordingly.

12         Section 2.  It is the specific intent of the

13  Legislature that nothing in this act either affirms or denies

14  the efficacy of any assignment by a dealer to another person

15  of the right to any credit or refund under s. 212.17, Florida

16  Statutes. In addition, this act shall not, in any pending or

17  future administrative or judicial proceeding or with respect

18  to any pending or future credit or refund claim, be argued or

19  offered as evidence of legislative intent as to s. 212.17(2)or

20  (3), Florida Statutes. Further, it is the intent of the

21  Legislature that this act has no operation except with respect

22  to transactions entailing the use of a private label credit

23  card.

24         Section 3.  This act shall take effect July 1, 2000.

25

26            *****************************************

27                          HOUSE SUMMARY

28
      Provides conditions under which a sales tax dealer who
29    has entered into a private label credit card agreement
      may take a credit or obtain a refund for taxes paid on
30    unpaid balances of worthless accounts.

31

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