House Bill 2433e1

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                                          HB 2433, First Engrossed



  1                      A bill to be entitled

  2         An act relating to taxation; amending s.

  3         95.091, F.S.; specifying the time period within

  4         which the Department of Revenue and Department

  5         of 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. 166.231(1), F.S.; to allow a

15         municipality to levy tax on water service

16         outside municipal boundaries if an agreement is

17         reached by specific date; amending ss. 175.111

18         and 185.09, F.S.; removing a requirement that

19         insurers subject to a premium tax for a

20         municipal or special district firefighter

21         pension plan or a municipal police pension plan

22         file an annual premium receipt report with the

23         Division of Retirement; amending s. 213.053,

24         F.S.; authorizing the Department of Revenue to

25         share information regarding such reports with

26         the Department of Management Services, and to

27         share certain identifying information with the

28         Department of Highway Safety and Motor

29         Vehicles; creating s. 189.420, F.S.; providing

30         requirements with respect to special district

31         assessments on facilities regulated under ch.


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                                          HB 2433, First Engrossed



  1         513, F.S.; amending s. 203.01, F.S.;

  2         authorizing the department to require

  3         quarterly, semiannual, or annual returns for

  4         the tax on gross receipts for utility services

  5         under certain conditions; amending ss. 206.09

  6         and 206.095, F.S.; authorizing the department

  7         to suspend a requirement for certain reports

  8         from carriers transporting, or terminal

  9         operators handling, motor fuel and similar

10         products, under certain conditions; amending s.

11         212.051, F.S.; including specialty chemicals

12         and bioaugmentation products within the sales

13         tax exemption for equipment and machinery used

14         for pollution control in connection with the

15         manufacture of items of tangible personal

16         property for sale; providing definitions;

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

18         with respect to the exemption from the indexed

19         tax on manufactured asphalt for asphalt used

20         for government public works projects;

21         specifying that the exemption includes federal

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

23         application of the exemption for portable

24         containers used for processing farm products;

25         providing conditions under which the full sales

26         tax exemption for machinery and equipment used

27         to produce electrical or steam energy will

28         apply when both residual and nonresidual fuels

29         are used; revising application of the sales tax

30         exemption for repair and labor charges for

31         certain industrial machinery and equipment;


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                                          HB 2433, First Engrossed



  1         providing intent; providing an exemption for

  2         people-mover systems and parts thereof

  3         purchased or manufactured by certain

  4         contractors; providing an exemption for the

  5         purchase of component parts by, and other

  6         manufacturing costs incurred by, certain

  7         contractors who manufacture and install such

  8         systems and parts; providing definitions;

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

10         department to allow a sales tax dealer to

11         continue to use a filing frequency when the

12         dealer exceeds the maximum tax for that

13         frequency, under certain conditions; amending

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

15         authorize the department to sample a dealer's

16         records when such records are adequate but

17         voluminous, in order to determine the dealer's

18         tax liability; providing that overpayments and

19         deficiencies shall be projected over the entire

20         audit period, and the tax deficiency reduced or

21         refund made as necessary; providing intent;

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

23         additional taxpayer rights with respect to

24         treatment by department personnel and

25         explanation of the reason for audit selection;

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

27         under which a taxpayer's liability may be

28         compromised when the taxpayer establishes

29         reasonable reliance on written advice issued by

30         the department; providing application;

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


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                                          HB 2433, First Engrossed



  1         application of the annual rate of interest

  2         applicable to tax payment deficiencies as

  3         determined under said section; amending s.

  4         213.27, F.S.; authorizing the department to

  5         contract with public or private vendors to

  6         develop and implement a voluntary system for

  7         sales and use tax collection and

  8         administration; providing for compensation;

  9         requiring reports; providing for application of

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

11         users; providing for maintenance of

12         confidentiality of certain information;

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

14         updating references to the Internal Revenue

15         Code for corporate income tax purposes;

16         providing for retroactive effect; amending s.

17         220.62, F.S.; including savings association

18         holding companies registered under the

19         Homeowners' Loan Act within the definition of

20         "savings association" for purposes of the

21         franchise tax on banks and savings

22         associations; providing that s. 1 of ch.

23         98-187, Laws of Florida, which amends s.

24         201.09, F.S., to provide liability for the

25         excise tax on documents when a renewal note

26         increases the unpaid balance or the original

27         face amount of the original contract and

28         obligation, applies retroactively to certain

29         term obligations; directing the Division of

30         Retirement to adjust a municipality's 1997 base

31         year revenue for purposes of its own pension


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                                          HB 2433, First Engrossed



  1         plan for firefighters or police officers based

  2         on specified information; authorizing the

  3         department to provide data to the division;

  4         providing that, for a specified period, persons

  5         classified under SIC Industry Group Number 212

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

  7         charges for steam or electrical energy entitled

  8         to exemption are entitled to a refund, and that

  9         such persons who did not pay the tax are not

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

11         providing that failure to timely file a

12         consolidated return for intangible personal

13         property tax for any one or more years shall

14         not prejudice a taxpayer's right to file a

15         consolidated return under certain conditions;

16         providing effective dates.

17

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

19

20         Section 1.  Paragraph (a) of subsection (3) of section

21  95.091, Florida Statutes, is amended to read:

22         95.091  Limitation on actions to collect taxes.--

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

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

25  the Department of Revenue may determine and assess the amount

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

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

28  Department of Business and Professional Regulation may

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

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

31  has authority to administer:


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                                          HB 2433, First Engrossed



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

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

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

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

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

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

  7         b.  Effective July 1, 2002, notwithstanding

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

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

10  is filed, whichever occurs later;

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

12  after the date the taxpayer either makes a substantial

13  underpayment of tax, or files a substantially incorrect

14  return;

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

16  of the tax is available to the taxpayer;

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

18  after the taxpayer has filed a grossly false return;

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

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

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

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

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

24  has disclosed in writing the tax liability to the department

25  before the department has contacted the taxpayer; or

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

27  erroneously made for any reason:

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

29  years after making such refund; and

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

31  years after making such refund,


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                                          HB 2433, First Engrossed



  1

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

  3  part of the refund was induced by fraud or the

  4  misrepresentation of a material fact.

  5         Section 2.  Subsection (2) of section 106.265, Florida

  6  Statutes, is amended to read:

  7         106.265  Civil penalties.--

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

  9  continuous existence, or political party fails or refuses to

10  pay to the commission any civil penalties assessed pursuant to

11  the provisions of this section, the commission Department of

12  Revenue shall be responsible for collecting the civil

13  penalties resulting from such action.

14         Section 3.  Subsection (1) of section 166.231, Florida

15  Statutes, is amended, to read:

16         166.231  Municipalities; public service tax.--

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

18  of electricity, metered natural gas, liquefied petroleum gas

19  either metered or bottled, manufactured gas either metered or

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

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

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

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

24  purchaser for the purchase of such service. Municipalities

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

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

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

28  holders of bonds or certificates which were issued prior to

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

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

31  municipality.


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                                          HB 2433, First Engrossed



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

  2  applied against any fuel adjustment charge, and such charge

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

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

  5  services to the ultimate consumer resulting from an increase

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

  7  1973.

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

  9  applied outside municipal boundaries to property included in a

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

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

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

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

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

15  clerk of the court subsequent to such challenge.

16         Section 4.  Section 175.111, Florida Statutes, is

17  amended to read:

18         175.111  Certified copy of ordinance or resolution

19  filed; insurance companies' annual report of premiums;

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

21  special fire control district, chapter plan, local law

22  municipality, local law special fire control district, or

23  local law plan under this chapter, whenever any municipality

24  passes an ordinance or whenever any special fire control

25  district passes a resolution establishing a chapter plan or

26  local law plan assessing and imposing the taxes authorized in

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

28  shall be deposited with the division. Thereafter every

29  insurance company, association, corporation, or other insurer

30  carrying on the business of property insurance on real or

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


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                                          HB 2433, First Engrossed



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

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

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

  4  by such insurer received for property insurance policies

  5  covering or insuring any real or personal property located

  6  within the corporate limits of each such municipality or

  7  special fire control district during the period of time

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

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

10  include the code designation as prescribed by the division for

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

12  within the corporate limits of each municipality and within

13  the legally defined boundaries of each special fire control

14  district.  The aforesaid insurer shall annually thereafter, on

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

16  a similar report covering the preceding year's premium

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

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

19  of the tax hereinbefore mentioned.  Every insurer engaged in

20  carrying on such insurance business in the state shall keep

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

22  within the corporate limits of each such municipality and

23  within the legally defined boundaries of each such special

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

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

26  insurers' reports of premium receipts, the division shall

27  prepare a consolidated premium report and shall furnish to any

28  municipality or special fire control district requesting the

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

30         Section 5.  Section 185.09, Florida Statutes, is

31  amended to read:


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                                          HB 2433, First Engrossed



  1         185.09  Report of premiums paid; date tax payable.--For

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

  3  local law plan under this chapter, whenever any municipality

  4  passes an ordinance establishing a chapter plan or local law

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

  6  185.08, a certified copy of such ordinance shall be deposited

  7  with the division; and thereafter every insurance company,

  8  corporation, or other insurer carrying on the business of

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

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

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

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

13  casualty insurance policies covering or insuring any property

14  located within the corporate limits of such municipality

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

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

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

18  with the division and the Department of Revenue a similar

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

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

21  the Department of Revenue the amount of the tax heretofore

22  mentioned. Every insurer engaged in carrying on a general

23  casualty insurance business in the state shall keep accurate

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

25  limits of such incorporated municipality in such a manner as

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

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

28  division shall prepare a consolidated premium report and shall

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

30  relevant section of that report.

31


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                                          HB 2433, First Engrossed



  1         Section 6.  Paragraphs (r) and (s) are added to

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

  3         213.053  Confidentiality and information sharing.--

  4         (7)  Notwithstanding any other provision of this

  5  section, the department may provide:

  6         (r)  Information relative to the returns required by

  7  ss. 175.111 and 185.09 to the Department of Management

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

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

10  payment information to a governmental agency as necessary in

11  the administration of chapters 175 and 185.

12         (s)  Names, addresses, and federal employer

13  identification numbers, or similar identifiers, to the

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

15  conduct of its official duties.

16

17  Disclosure of information under this subsection shall be

18  pursuant to a written agreement between the executive director

19  and the agency.  Such agencies, governmental or

20  nongovernmental, shall be bound by the same requirements of

21  confidentiality as the Department of Revenue.  Breach of

22  confidentiality is a misdemeanor of the first degree,

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

24         Section 7.  Section 189.420, Florida Statutes, is

25  created to read:

26         189.420  Assessments levied on facilities regulated

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

28  district levies an assessment on a facility regulated under

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

30  assertion that the facility is comprised of residential units.

31  Instead, facilities regulated under chapter 513 shall be


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                                          HB 2433, First Engrossed



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

  2  similar facility.

  3         Section 8.  Effective January 1, 2001, paragraph (g) is

  4  added to subsection (1) of section 203.01, Florida Statutes,

  5  to read:

  6         203.01  Tax on gross receipts for utility services.--

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

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

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

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

11  receipts derived from business done within this state, or

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

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

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

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

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

17  Education.

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

19  shall be 2.5 percent.

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

21  leases a telephone system or telecommunication system for his

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

23  or telecommunication service which is a substitute for any

24  telephone company switched service or a substitute for any

25  dedicated facility by which a telephone company provides a

26  communication path shall register with the Department of

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

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

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

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

31  repair, and other expenses directly attributable to the


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                                          HB 2433, First Engrossed



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

  2  depreciation expense to be included in actual cost shall be

  3  the depreciation expense claimed for federal income tax

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

  5  or rental contract or agreement shall be included within the

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

  7  the use by any local telephone company or any

  8  telecommunication carrier of its own telephone system or

  9  telecommunication system to conduct a telecommunication

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

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

12  subdivision thereof.  If a system described in this paragraph

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

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

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

16  "telecommunications carrier" specifically includes cellular

17  telephone carriers and other radio common carriers.

18         (d)  Electricity produced by cogeneration or by small

19  power producers which is transmitted and distributed by a

20  public utility between two locations of a customer of the

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

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

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

24  paid each month by the producer of such electricity.

25         (e)  Electricity produced by cogeneration or by small

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

27  each year which is in excess of nontaxable electricity

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

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

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

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


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                                          HB 2433, First Engrossed



  1  month in which total production exceeds the production of

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

  3  1990.  For purposes of this paragraph, "nontaxable

  4  electricity" means electricity produced by cogeneration or by

  5  small power producers which is not subject to tax under

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

  7  credited against taxes due under this paragraph.  Electricity

  8  generated as part of an industrial manufacturing process which

  9  manufactures products from phosphate rock, raw wood fiber,

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

11  to the tax imposed by this paragraph. "Industrial

12  manufacturing process" means the entire process conducted at

13  the location where the process takes place.

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

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

16  her own use electrical energy which is a substitute for

17  electrical energy produced by an electric utility as defined

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

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

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

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

22  electrical energy produced and used by an electric utility.

23         (g)  Notwithstanding any other provision of this

24  chapter, with the exception of a telephone or

25  telecommunication system described in paragraph (c), the

26  department may require:

27         1.  A quarterly return and payment when the tax

28  remitted for the preceding four calendar quarters did not

29  exceed $1,000;

30

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                                          HB 2433, First Engrossed



  1         2.  A semiannual return and payment when the tax

  2  remitted for the preceding four calendar quarters did not

  3  exceed $500; or

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

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

  6         Section 9.  Effective July 1, 2000, section 206.09,

  7  Florida Statutes, is amended to read:

  8         206.09  Reports from carriers transporting motor fuel

  9  or similar products.--

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

11  transportation company, private carrier, and common carrier

12  transporting motor fuel, casinghead gasoline, natural

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

14  interstate or intrastate or foreign commerce, to points within

15  Florida, and every person transporting motor fuel, casinghead

16  gasoline, natural gasoline, naphtha, or diesel fuel

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

18  point outside of said state, shall file monthly returns

19  setting forth:

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

21  business within the state.

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

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

24  state.

25         (c)  The name, federal employer identification number

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

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

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

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

30  association.

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                                          HB 2433, First Engrossed



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

  2  the department on forms prescribed by the department all

  3  deliveries of motor fuel, casinghead gasoline, natural

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

  5  within the state.

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

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

  8  by the report and shall show:

  9         (a)  The name, federal employer identification number

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

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

12  the deliveries of motor fuel, casinghead gasoline, natural

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

14  in fact been made;

15         (b)  The name, federal employer identification number

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

17  number, and complete business address of the originally named

18  consignee, if motor fuel, casinghead gasoline, natural

19  gasoline, naphtha, or diesel fuel distillate has been

20  delivered to any person other than the originally named

21  consignee;

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

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

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

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

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

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

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

29  number of gallons contained therein, if transported by motor

30  truck;

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                                          HB 2433, First Engrossed



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

  2  such delivery is made; and

  3         (g)  Such other additional information relative to

  4  shipments of motor fuel as the department may require.

  5         (4)  The department is authorized to suspend the

  6  reporting requirements of this section if substantially the

  7  same data is filed with the Internal Revenue Service and

  8  provided to the department through a national information

  9  reporting system.

10         (5)(4)  If any such person or company required to file

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

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

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

14         Section 10.  Effective July 1, 2000, section 206.095,

15  Florida Statutes, is amended to read:

16         206.095  Reports from terminal operators.--

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

18  transfers motor fuel, casinghead gasoline, natural gasoline,

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

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

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

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

23  show:

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

25  terminal supplier, importer, or exporter storing or

26  transferring such product.

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

28  transporting the product to the terminal.

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

30  being stored.

31


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                                          HB 2433, First Engrossed



  1         (d)  Such other additional information relative to

  2  shipments and storage of products as the department may

  3  require.

  4         (2)  The department is authorized to suspend the

  5  reporting requirements of this section if substantially the

  6  same data is filed with the Internal Revenue Service and

  7  provided to the department through a national information

  8  reporting system.

  9         (3)(2)  If any terminal operator fails to make a

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

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

12  $100.

13         Section 11.  Effective July 1, 2000, section 212.051,

14  Florida Statutes, is amended to read:

15         212.051  Equipment, or machinery, and other materials

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

17         (1)  Notwithstanding any provision to the contrary,

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

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

20  machinery, specialty chemical, or bioaugmentation product used

21  primarily for the control or abatement of pollution or

22  contaminants in manufacturing, processing, compounding, or

23  producing for sale items of tangible personal property at a

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

25  installed in the reconstruction or replacement of such

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

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

28  structure, specialty chemical, or bioaugmentation product must

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

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

31  Environmental Protection; however, such exemption shall not be


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                                          HB 2433, First Engrossed



  1  allowed unless the purchaser signs a certificate stating that

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

  3  specialty chemical, or bioaugmentation product to be exempted

  4  is required to meet such law or condition.

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

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

  7  issued by, the Department of Environmental Protection that are

  8  purchased for the monitoring, prevention, abatement, or

  9  control of pollution or contaminants at privately owned or

10  operated landfills or construction and demolition debris

11  disposal facilities shall be exempt from taxation as otherwise

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

13  allowed unless the purchaser signs a certificate stating that

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

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

16  not include solid waste collection vehicles, compactors,

17  graders, or other earthmoving equipment.

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

19  chemicals" means those chemicals used to enhance or further

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

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

22  the microorganisms used in waste treatment plants to break

23  down solids and consume organic matter.

24         Section 12.  (1)  Paragraph (c) of subsection (1) of

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

26         212.06  Sales, storage, use tax; collectible from

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

28  legislative intent as to scope of tax.--

29         (1)

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

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


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                                          HB 2433, First Engrossed



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

  2  materials which become a component part or which are an

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

  4  transportation of such components and ingredients.  In

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

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

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

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

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

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

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

12  construction" series of the producer price index, as

13  calculated and published by the United States Department of

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

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

16  series for calendar year 1988.

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

18  this paragraph on shall not apply to manufactured asphalt

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

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

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

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

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

24  section is remedial in nature and merely clarifies existing

25  law.

26         Section 13.  (1)  Effective July 1, 2000, paragraphs

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

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

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

30  said section, to read:

31


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                                          HB 2433, First Engrossed



  1         212.08  Sales, rental, use, consumption, distribution,

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

  3  the rental, the use, the consumption, the distribution, and

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

  5  following are hereby specifically exempt from the tax imposed

  6  by this chapter.

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

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

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

10  and used exclusively by commercial fisheries; disinfectants,

11  fertilizers, insecticides, pesticides, herbicides, fungicides,

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

13  including commercial nurseries and home vegetable gardens,

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

15  protecting poultry or livestock, or used directly on poultry

16  or livestock; portable containers or moveable receptacles in

17  which portable containers are placed, used for processing farm

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

19  nursery stock, seedlings, cuttings, or other propagative

20  material purchased for growing stock; seeds, seedlings,

21  cuttings, and plants used to produce food for human

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

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

24  farm; generators used on poultry farms; and liquefied

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

26  started pullets or broilers are raised; however, such

27  exemption shall not be allowed unless the purchaser or lessee

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

29  for the exclusive use designated herein. Also exempt are

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

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


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                                          HB 2433, First Engrossed



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

  2  farmer to contain, produce, or process an agricultural

  3  commodity.

  4         (c)  Machinery and equipment used in production of

  5  electrical or steam energy.--

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

  7  a fixed location which machinery and equipment are necessary

  8  in the production of electrical or steam energy resulting from

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

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

11  steam energy must be primarily for use in manufacturing,

12  processing, compounding, or producing for sale items of

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

14  amount of residual fuel to facilitate the burning of

15  nonresidual fuel shall not reduce the exemption otherwise

16  available under this paragraph.

17         2.  In facilities where machinery and equipment are

18  necessary to burn both residual and nonresidual fuels, the

19  exemption shall be prorated. Such proration shall be based

20  upon the production of electrical or steam energy from

21  nonresidual fuels as a percentage of electrical or steam

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

23  less of all electrical or steam energy generated was produced

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

25  Purchasers claiming a partial exemption shall obtain such

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

27  the department's rules.

28         3.  The department may adopt rules that provide for

29  implementation of this exemption. Purchasers of machinery and

30  equipment qualifying for the exemption provided in this

31  paragraph shall furnish the department with an affidavit


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                                          HB 2433, First Engrossed



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

  2  designated herein. Any person furnishing a false affidavit to

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

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

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

  6  Purchasers with self-accrual authority shall maintain all

  7  documentation necessary to prove the exempt status of

  8  purchases.

  9         (7)  MISCELLANEOUS EXEMPTIONS.--

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

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

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

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

14  in the repair of and incorporated into, industrial machinery

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

16  compounding, or production, or preparation for shipping of

17  items of tangible personal property at a fixed location within

18  this state.

19         2.  This exemption applies only to industries

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

21  14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,

22  35, 36, 37, 38, and 39 and Industry Group Number 212. As used

23  in this subparagraph, "SIC" means those classifications

24  contained in the Standard Industrial Classification Manual,

25  1987, as published by the Office of Management and Budget,

26  Executive Office of the President.

27         3.  This exemption shall be applied as follows:

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

29  for repair parts and labor shall be exempt.

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

31  for repair parts and labor shall be exempt.


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                                          HB 2433, First Engrossed



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

  2  for repair parts and labor shall be exempt.

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

  4  for repair parts and labor shall be exempt.

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

  6  parts thereof, which are purchased or manufactured by

  7  contractors employed either directly by or as agents for the

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

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

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

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

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

13  In the case of contractors who manufacture and install such

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

15  component parts and all other manufacturing and fabrication

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

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

18  parts to certify the contractors' eligibility for the

19  exemption provided under this paragraph. As used in this

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

21  vehicles and related control and power distribution systems

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

23  general public, regardless of whether such vehicles are

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

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

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

27  integral part of such transportation system. "Related control

28  and power distribution systems" includes any electrical or

29  electronic control or signaling equipment, but does not

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

31  transmit electrical or electronic signals among such control


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                                          HB 2433, First Engrossed



  1  equipment, power distribution equipment, signaling equipment,

  2  and wheeled vehicles.

  3

  4  Exemptions provided to any entity by this subsection shall not

  5  inure to any transaction otherwise taxable under this chapter

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

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

  8  check, or credit card even when that representative or

  9  employee is subsequently reimbursed by such entity.

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

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

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

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

14         Section 14.  Effective July 1, 2000, paragraph (c) of

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

16  to read:

17         212.11  Tax returns and regulations.--

18         (1)

19         (c)  However, the department may require:

20         1.  A quarterly return and payment when the tax

21  remitted by the dealer for the preceding four calendar

22  quarters did not exceed $1,000.

23         2.  A semiannual return and payment when the tax

24  remitted by the dealer for the preceding four calendar

25  quarters did not exceed $500.

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

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

28  exceed $100.

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

30  remitted by the dealer for the preceding four calendar

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


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                                          HB 2433, First Engrossed



  1

  2  The department is authorized to allow a dealer filing returns

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

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

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

  6  a filing period that is greater than the maximum amount

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

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

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

10  that the tax amount submitted represents nonrecurring business

11  activity.

12         Section 15.  (1)  Paragraph (c) of subsection (6) of

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

14         212.12  Dealer's credit for collecting tax; penalties

15  for noncompliance; powers of Department of Revenue in dealing

16  with delinquents; brackets applicable to taxable transactions;

17  records required.--

18         (6)

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

20  voluminous in nature and substance, the department may

21  statistically sample such records, except for fixed assets,

22  and project the audit findings derived therefrom over the

23  entire audit period to determine the proportion that taxable

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

25  taxable purchases bear to total purchases.  In order to

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

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

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

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

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

31


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                                          HB 2433, First Engrossed



  1         2.  For the purposes of sampling pursuant to

  2  subparagraph 1., the department shall project any deficiencies

  3  and overpayments derived therefrom over the entire audit

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

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

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

  7  event the department determines from the sample results that

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

  9  provide the findings of this overpayment to the Comptroller

10  for repayment of funds paid into the State Treasury through

11  error pursuant to s. 215.26.

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

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

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

15  assessment or refund when this section takes effect, including

16  tax periods that are the subject of assessment or refund

17  claims that are pending in administrative or judicial

18  proceedings when this section takes effect.

19         Section 16.  Effective July 1, 2000, subsections (3)

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

21  read:

22         213.015  Taxpayer rights.--There is created a Florida

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

24  privacy, and property of Florida taxpayers are adequately

25  safeguarded and protected during tax assessment, collection,

26  and enforcement processes administered under the revenue laws

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

28  document, brief but comprehensive statements which explain, in

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

30  Department of Revenue and taxpayers.  The rights afforded

31  taxpayers to assure that their privacy and property are


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                                          HB 2433, First Engrossed



  1  safeguarded and protected during tax assessment and collection

  2  are available only insofar as they are implemented in other

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

  4  Revenue. The rights so guaranteed Florida taxpayers in the

  5  Florida Statutes and the departmental rules are:

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

  7  or other qualified representatives at any time in

  8  administrative interactions with the department, the right to

  9  procedural safeguards with respect to recording of interviews

10  during tax determination or collection processes conducted by

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

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

13  inspections of records, and interviews conducted at a

14  reasonable time and place except in criminal and internal

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

16  206.14, 211.125(3), 211.33(3), 212.0305(3), 212.12(5)(a),

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

18  213.34).

19         (5)  The right to obtain simple, nontechnical

20  statements which explain the reason for audit selection and

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

22  appeals, and collection proceedings, including, but not

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

24  Rights and the right to be provided with a narrative

25  description which explains the basis of audit changes,

26  proposed assessments, assessments, and denials of refunds;

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

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

29  with the notice.

30

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                                          HB 2433, First Engrossed



  1         Section 17.  (1)  Effective July 1, 2000, subsections

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

  3  to read:

  4         213.21  Informal conferences; compromises.--

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

  6  or her designee is authorized to enter into closing agreements

  7  with any taxpayer settling or compromising the taxpayer's

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

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

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

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

12  when the department deems it appropriate or when requested by

13  the taxpayer. When a written closing agreement has been

14  approved by the department and signed by the executive

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

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

17  misrepresentation of material fact or except as to adjustments

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

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

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

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

22  the taxpayer shall not be entitled to institute any judicial

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

24  penalty paid pursuant to the closing agreement.  The

25  department is authorized to delegate to the executive director

26  the authority to approve any such closing agreement resulting

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

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

29  for the purpose of facilitating the settlement and

30  distribution of an estate held by a personal representative,

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


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                                          HB 2433, First Engrossed



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

  2  become due from such personal representative under the

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

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

  5  agreement relates.

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

  7  compromising the liability of any taxpayer for tax or interest

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

  9  taxpayer's reasonable reliance on a written determination

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

11  department may compromise the amount of such tax or interest

12  liability resulting from such reasonable reliance.

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

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

15  upon the grounds of doubt as to liability for or

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

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

18  72.011(1) may be settled or compromised if it is determined by

19  the department that the noncompliance is due to reasonable

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

21  fraud. A taxpayer who establishes reasonable reliance on the

22  written advice issued by the department to the taxpayer will

23  be deemed to have shown reasonable cause for the

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

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

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

27  compromised if the department determines that the

28  noncompliance is due to reasonable cause and not to willful

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

30  maintain records of all compromises, and the records shall

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


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                                          HB 2433, First Engrossed



  1  under this paragraph shall not be subject to disclosure

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

  3  information governed by the provisions of s. 213.053.

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

  5  interest exists if the taxpayer demonstrates that he or she

  6  reasonably relied on a written determination of the department

  7  in any of the following circumstances:

  8         1.  The audit workpapers clearly show that the same

  9  issue was considered in a prior audit of the taxpayer

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

11  consideration of the issue, the department's auditor

12  determined that no assessment was appropriate in regard to

13  that issue.

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

15  taxpayer and during the informal protest of the proposed

16  assessment the department issued a notice of decision

17  withdrawing the issue from the assessment.

18         3.  The taxpayer received a technical assistance

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

20

21  The circumstances listed in this paragraph are not intended to

22  be the only circumstances in which doubt as to liability

23  exists. Nothing contained in this section shall interfere with

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

25  determined constitutional defect in a tax law.

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

27  relied on a written determination of the department under any

28  of the following circumstances:

29         1.  The taxpayer misrepresented material facts or did

30  not fully disclose material facts at the time the written

31  determination was issued.


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                                          HB 2433, First Engrossed



  1         2.  The specific facts and circumstances have changed

  2  in such a material manner that the written determination no

  3  longer applies.

  4         3.  The statutes or regulations on which the

  5  determination was based have been materially revised or a

  6  published judicial opinion constituting precedent in the

  7  taxpayer's jurisdiction has overruled the department's

  8  determination on the issue.

  9         4.  The department has informed the taxpayer in writing

10  that its previous written determination has been revised and

11  should no longer be relied upon.

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

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

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

15  returned due to an error committed by the issuing financial

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

17  The department shall maintain records of all compromises, and

18  the records shall state the basis for the compromise.

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

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

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

22         Section 18.  Subsection (6) of section 213.235, Florida

23  Statutes, is repealed.

24         Section 19.  Subsection (9) is added to section 213.27,

25  Florida Statutes, to read:

26         213.27  Contracts with debt collection agencies and

27  certain vendors.--

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

29  public or private vendors to develop and implement a voluntary

30  system for sales and use tax collection and administration.

31  The amount of compensation paid to vendors shall be


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                                          HB 2433, First Engrossed



  1  established by the executive director of the department and

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

  3  collections made through the system or on a per transaction

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

  5  percentage of the sales and use tax collections made through

  6  the system, the percentage shall not exceed the negotiated

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

  8  provide quarterly reports to the Speaker of the House of

  9  Representatives, Minority Leader of the House of

10  Representatives, President of the Senate, and Minority Leader

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

12  these contracts. The system shall have the capability to

13  determine the taxability of a transaction, the appropriate tax

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

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

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

17  for testing and certifying the accuracy of the system.

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

19  use tax who utilizes the system for purposes of computation

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

21  the reporting and remittance requirements of ss. 212.11 and

22  212.15(1) for those transactions handled through the system

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

24  212.12(1). A seller of goods or services subject to sales and

25  use tax who utilizes the system for purposes of computation

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

27  audit for those transactions handled through the system,

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

29  seller.

30         (c)  Disclosure of information necessary under this

31  subsection shall be pursuant to a written agreement between


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                                          HB 2433, First Engrossed



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

  2  vendor shall be bound by the same requirements of

  3  confidentiality as the department. Breach of confidentiality

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

  5  in s. 775.082 or s. 775.083.

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

  7  shall provide recommendations to the Speaker of the House of

  8  Representatives, Minority Leader of the House of

  9  Representatives, President of the Senate, and Minority Leader

10  of the Senate for provisions to be adopted for inclusion

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

12  and administration simplified and uniform.

13         Section 20.  (1)  Paragraph (n) of subsection (1) and

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

15  Statutes, are amended to read:

16         220.03  Definitions.--

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

18  not otherwise distinctly expressed or manifestly incompatible

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

20  following meanings:

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

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

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

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

25  neither otherwise distinctly expressed nor manifestly

26  incompatible with the intent thereof:

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

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

29  Revenue Code and other statutes of the United States relating

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

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


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                                          HB 2433, First Engrossed



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

  2  time the term is applied under this code.

  3         (2)  This section shall operate retroactively to

  4  January 1, 2000.

  5         Section 21.  Subsection (2) of section 220.62, Florida

  6  Statutes, is amended to read:

  7         220.62  Definitions.--For purposes of this part:

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

  9  association holding company registered under the Homeowners'

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

11  savings association, building and loan association, savings

12  and loan association, or mutual savings bank not having

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

14  other jurisdiction.

15         Section 22.  Section 1 of chapter 98-187, Laws of

16  Florida, applies retroactively to the renewal of any

17  promissory note evidencing a term obligation executed on or

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

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

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

21  1998.

22         Section 23.  For purposes of future calculations only,

23  the base year revenue received by a municipality for the

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

25  185.35(1), Florida Statutes, respectively, shall be adjusted

26  by the Division of Retirement based on all original 1997

27  insurance returns as adjusted by all amended 1997 insurance

28  returns received by the Department of Revenue no later than

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

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

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


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                                          HB 2433, First Engrossed



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

  2  that this section shall not impact any judicial proceeding

  3  pending on or before March 31, 2000.

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

  5  30, 1999, every person who was classified under SIC Industry

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

  7  212, Florida Statutes, on charges for steam or electrical

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

  9  212.08(7)(ii), Florida Statutes, shall be entitled to receive

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

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

12  30, 1999, every person who was classified under SIC Industry

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

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

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

16  212.08(7)(ii), Florida Statutes, shall not be required to pay

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

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

19  the Standard Industrial Classification Manual, 1987, as

20  published by the Office of Management and Budget, Executive

21  Office of the President.

22         Section 25.  Notwithstanding the provisions of s.

23  199.052(10), Florida Statutes, failure to timely file a

24  consolidated return for any one or more years shall not

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

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

27  and the affiliated group of corporations of which the taxpayer

28  is a member has previously filed consolidated returns for

29  corporate income tax purposes under s. 220.131, Florida

30  Statutes.

31


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                                          HB 2433, First Engrossed



  1         Section 26.  Except as otherwise provided herein, this

  2  act shall take effect upon becoming a law.

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