House Bill 0187
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Florida House of Representatives - 2000 HB 187
By Representative Starks
1 A bill to be entitled
2 An act relating to intangible personal property
3 taxes; amending s. 199.032, F.S.; reducing the
4 rate of the annual tax; amending s. 199.033,
5 F.S.; reducing the rates of the tax on
6 securities in a Florida's Future Investment
7 Fund to conform; amending s. 199.185, F.S.;
8 providing that all accounts receivable are
9 exempt from intangible personal property taxes;
10 revising the application of the exemption from
11 the annual tax granted to natural persons;
12 providing an effective date.
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14 Be It Enacted by the Legislature of the State of Florida:
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16 Section 1. Section 199.032, Florida Statutes, is
17 amended to read:
18 199.032 Levy of annual tax.--An annual tax of 1 mill
19 1.5 mills is imposed on each dollar of the just valuation of
20 all intangible personal property that has a taxable situs in
21 this state, except for notes and other obligations for the
22 payment of money, other than bonds, which are secured by
23 mortgage, deed of trust, or other lien upon real property
24 situated in the state. This tax shall be assessed and
25 collected as provided in this chapter.
26 Section 2. Subsection (1) of section 199.033, Florida
27 Statutes, is amended to read:
28 199.033 Securities in a Florida's Future Investment
29 Fund; tax rate.--
30 (1) Notwithstanding the provisions of this chapter,
31 the tax imposed under s. 199.032 on securities in a Florida's
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Florida House of Representatives - 2000 HB 187
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1 Future Investment Fund shall apply at the rate of .85 mill
2 1.35 mills when the average daily balance in such funds
3 exceeds $2 billion and at the rate of .70 mill 1.20 mills when
4 the average daily balance in such funds exceeds $5 billion.
5 Section 3. Paragraph (l) of subsection (1) and
6 paragraph (a) of subsection (2) of section 199.185, Florida
7 Statutes, are amended to read:
8 199.185 Property exempted from annual and nonrecurring
9 taxes.--
10 (1) The following intangible personal property shall
11 be exempt from the annual and nonrecurring taxes imposed by
12 this chapter:
13 (l) All Two-thirds of the accounts receivable arising
14 or acquired in the ordinary course of a trade or business
15 which are owned, controlled, or managed by a taxpayer on
16 January 1, 2000, and thereafter. It is the intent of the
17 Legislature that, pursuant to future legislative action, the
18 portion of such accounts receivable exempt from taxation be
19 increased to all such accounts receivable on January 1, 2001,
20 and thereafter. This exemption does not apply to accounts
21 receivable that arise outside the taxpayer's ordinary course
22 of trade or business. For the purposes of this chapter, the
23 term "accounts receivable" means a business debt that is owed
24 by another to the taxpayer or the taxpayer's assignee in the
25 ordinary course of trade or business and is not supported by
26 negotiable instruments. Accounts receivable include, but are
27 not limited to, credit card receivables, charge card
28 receivables, credit receivables, margin receivables, inventory
29 or other floor plan financing, lease payments past due,
30 conditional sales contracts, retail installment sales
31 agreements, financing lease contracts, and a claim against a
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Florida House of Representatives - 2000 HB 187
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1 debtor usually arising from sales or services rendered and
2 which is not necessarily due or past due. The examples
3 specified in this paragraph shall be deemed not to be
4 supported by negotiable instruments. The term "negotiable
5 instrument" means a written document that is legally capable
6 of being transferred by indorsement or delivery. The term
7 "indorsement" means the act of a payee or holder in writing
8 his or her name on the back of an instrument without further
9 qualifying words other than "pay to the order of" or "pay to"
10 whereby the property is assigned and transferred to another.
11 (2)(a) With respect to the first 0.5 mill of the
12 annual tax, every natural person is entitled each year to an
13 exemption of the first $20,000 of the value of property
14 otherwise subject to said tax. A husband and wife filing
15 jointly shall have an exemption of $40,000.
16 (b) With respect to the last 0.5 mill of the annual
17 tax, every natural person is entitled each year to an
18 exemption of the first $100,000 of the value of property
19 otherwise subject to said tax. A husband and wife filing
20 jointly shall have an exemption of $200,000.
21
22 Agents and fiduciaries, other than guardians and custodians
23 under a gifts-to-minors act, filing as such may not claim this
24 exemption on behalf of their principals or beneficiaries;
25 however, if the principal or beneficiary returns the property
26 held by the agent or fiduciary and is a natural person, the
27 principal or beneficiary may claim the exemption. No taxpayer
28 shall be entitled to more than one exemption under paragraph
29 (a) and one exemption under paragraph (b). This exemption
30 shall not apply to that intangible personal property described
31 in s. 199.023(1)(d).
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Florida House of Representatives - 2000 HB 187
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1 Section 4. This act shall take effect January 1, 2001.
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4 HOUSE SUMMARY
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Reduces the rate of the annual intangible tax from 1.5
6 mills to 1 mill, and revises the application of the
exemption granted to natural persons to conform.
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8 Implements legislative intent that the last one-third of
accounts receivable become exempt from intangible
9 personal property taxes on January 1, 2001. Present law
exempts two-thirds and expresses the intent that all
10 accounts receivable be exempt beginning on that date.
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