Senate Bill sb1676

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    Florida Senate - 2002                                  SB 1676

    By Senator Campbell





    33-1497-02                                              See HB

  1                      A bill to be entitled

  2         An act relating to the annual intangible

  3         personal property tax; providing legislative

  4         intent; amending s. 199.185, F.S.; exempting

  5         certain natural persons from payment of the

  6         annual tax; providing for emergency rules of

  7         the Department of Revenue for certain purposes;

  8         providing effective dates.

  9

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

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12         Section 1.  It is the intent of the Legislature that

13  the annual intangible personal property tax be ultimately

14  eliminated as a tax in this state. Through a series of

15  amendments to chapter 199, Florida Statutes, the Legislature

16  has consistently reduced the burden of the tax upon the

17  citizens of this state. In order to effectuate the

18  Legislature's intent to accomplish the goal over a period of

19  time, but in the meantime to protect those elderly, disabled,

20  and financially disadvantaged individuals in this state who

21  cannot afford such a tax, the Legislature desires to provide

22  for a method to exempt such individuals from the tax

23  completely.

24         Section 2.  Effective upon this act becoming a law and

25  operating retroactively to January 1, 2002, subsection (2) of

26  section 199.185, Florida Statutes, as amended by section 1 of

27  chapter 2001-371, Laws of Florida, is amended to read:

28         199.185  Property exempted from annual and nonrecurring

29  taxes.--

30         (2)(a)  Except as provided in paragraph (b), every

31  natural person is entitled each year to an exemption of the

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    Florida Senate - 2002                                  SB 1676
    33-1497-02                                              See HB




  1  first $20,000 of the value of property otherwise subject to

  2  the annual tax.  A husband and wife filing jointly shall have

  3  an exemption of $40,000 of the value of property otherwise

  4  subject to the annual tax.

  5         (b)  Every natural person whose annual household total

  6  gross income, as defined under the United States Internal

  7  Revenue Code, is less than $14,500 in a tax year shall be

  8  exempt from payment of the annual tax that year. A husband and

  9  wife filing a joint return whose combined total gross income,

10  as defined under the United States Internal Revenue Code, is

11  less than $29,000 in a tax year shall be exempt from payment

12  of the annual tax that year.

13

14  Agents and fiduciaries, other than guardians and custodians

15  under a gifts-to-minors act, filing as such may not claim this

16  exemption on behalf of their principals or beneficiaries;

17  however, if the principal or beneficiary returns the property

18  held by the agent or fiduciary and is a natural person, the

19  principal or beneficiary may claim the exemption. No taxpayer

20  shall be entitled to more than one exemption under this

21  subsection. This exemption shall not apply to that intangible

22  personal property described in s. 199.023(1)(d).

23         Section 3.  Effective July 1, 2003, subsection (2) of

24  section 199.185, Florida Statutes, as amended by this act, is

25  amended to read:

26         199.185  Property exempted from annual and nonrecurring

27  taxes.--

28         (2)(a)  Except as provided in paragraph (b), Every

29  natural person is entitled each year to an exemption of the

30  first $250,000 $20,000 of the value of property otherwise

31  subject to the annual tax.  A husband and wife filing jointly

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    Florida Senate - 2002                                  SB 1676
    33-1497-02                                              See HB




  1  shall have an exemption of $500,000 $40,000 of the value of

  2  property otherwise subject to the annual tax. Every taxpayer

  3  that is not a natural person is entitled to an exemption of

  4  the first $250,000 of the value of property otherwise subject

  5  to the annual tax.

  6         (b)  Every natural person whose annual household total

  7  gross income, as defined under the United States Internal

  8  Revenue Code, is less than $14,500 in a tax year shall be

  9  exempt from payment of the annual tax that year. A husband and

10  wife filing a joint return whose combined total gross income,

11  as defined under the United States Internal Revenue Code, is

12  less than $18,000 for a tax year shall be exempt from payment

13  of the annual tax that year.

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15  Agents and fiduciaries, other than guardians and custodians

16  under a gifts-to-minors act, filing as such may not claim this

17  exemption on behalf of their principals or beneficiaries;

18  however, if the principal or beneficiary returns the property

19  held by the agent or fiduciary and is a natural person, the

20  principal or beneficiary may claim the exemption. No taxpayer

21  shall be entitled to more than one exemption under this

22  subsection. This exemption shall not apply to that intangible

23  personal property described in s. 199.023(1)(d).

24         Section 4.  The executive director of the Department of

25  Revenue is authorized, and all conditions are deemed met, to

26  adopt emergency rules under sections 120.536(1) and 120.54,

27  Florida Statutes, to implement chapter 199, Florida Statutes,

28  as provided in section 199.202, Florida Statutes.

29  Notwithstanding any other provision of law, such emergency

30  rules shall remain effective for 6 months after the date of

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    Florida Senate - 2002                                  SB 1676
    33-1497-02                                              See HB




  1  adoption and may be renewed during the pendency of procedures

  2  to adopt rules addressing the subject of the emergency rules.

  3         Section 5.  Except as otherwise provided in this act,

  4  this act shall take effect upon becoming a law.

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  7                       LEGISLATIVE SUMMARY

  8    Exempts natural persons whose household total gross
      income is less than $14,500 or husbands and wives filing
  9    jointly whose household total gross income is less than
      $29,000 from payment of the annual intangible personal
10    property tax. Phases out such exemption July 1, 2003,
      concurrent with the scheduled increase in the exempt
11    value of property subject to the tax. (See bill for
      details.)
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