Senate Bill 0338

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


    Florida Senate - 2000                                   SB 338

    By Senator Horne





    6-100-00

  1                      A bill to be entitled

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

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

  4         providing for a credit or refund against such

  5         tax paid by a dealer on the unpaid balance due

  6         on certain worthless accounts; providing

  7         procedures; providing restrictions; providing

  8         applicability; providing an effective date.

  9

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

11

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

13  Florida Statutes, to read:

14         212.17  Credits for returned goods, rentals, or

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

16  subsequently resold; additional powers of department.--

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

18  chapter on tangible personal property or services may take a

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

20  the unpaid balance due on worthless accounts within 12 months

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

22  for federal income tax purposes by the dealer or by the person

23  who owns the retail account pursuant to a private label credit

24  card agreement with the dealer. As used in this subsection,

25  the term "private label credit card agreement" means an

26  agreement made directly between a dealer and a bank or other

27  financial institution pursuant to which the bank or other

28  financial institution issues to some of the dealer's customers

29  credit cards that carry the name of the dealer and can be used

30  solely for purchases from that dealer or from another member

31  of an affiliated group of corporations, as defined in s.

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






    Florida Senate - 2000                                   SB 338
    6-100-00




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

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

  3  department may look solely to records and information

  4  available from the dealer and may, but is not required to,

  5  audit the bank or financial institution that issued the

  6  private label credit card. If a tax credit or refund has been

  7  made for any account so charged off and the account is

  8  thereafter paid in whole or in part, the amount so paid must

  9  be included in the first return filed after such a collection,

10  and the tax must be paid accordingly. It is the intent of the

11  Legislature that this subsection neither validates nor

12  invalidates any assignment by a dealer to another person of

13  the right to any credit or refund under this section. In

14  addition, this subsection may not be used as evidence of

15  legislative intent as to subsection (2) or subsection (3) in

16  any judicial proceeding pending on June 30, 2000, or initiated

17  after that date, or with respect to any credit or refund claim

18  pending on or initiated after that date. It is the further

19  intent of the Legislature that this subsection applies only to

20  transactions that entail the use of a private label credit

21  card.

22         Section 2.  This act shall take effect July 1, 2000.

23

24            *****************************************

25                          SENATE SUMMARY

26    Provides for a credit or refund against the tax on sales,
      use, and other transactions for the tax paid on the
27    unpaid balance due on certain worthless accounts when the
      transactions creating the accounts entail the use of a
28    private label credit card. Provides procedures. Defines
      the term "private label credit card agreement." Provides
29    restrictions. Prohibits using this act as evidence of
      legislative intent concerning s. 212.17(2), F.S., or s.
30    212.17(3), F.S. Provides applicability.

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