Senate Bill sb2434

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    Florida Senate - 2002                                  SB 2434

    By Senator Campbell





    33-1537-02

  1                      A bill to be entitled

  2         An act relating to alcoholic beverage taxes;

  3         transferring powers, duties, and functions of

  4         the Division of Alcoholic Beverages and Tobacco

  5         of the Department of Business and Professional

  6         Regulation relating to collection of taxes

  7         under the Beverage Law to the Department of

  8         Revenue; amending ss. 20.165, 561.025, 561.051,

  9         561.111, 561.181, 561.19, 561.221, 561.50,

10         561.501, 561.55, 562.16, 562.25, 563.07,

11         564.06, 565.02, 565.13, F.S., to conform;

12         providing an effective date.

13

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

15

16         Section 1.  All powers, duties, and functions of the

17  Division of Alcoholic Beverages and Tobacco of the Department

18  of Business and Professional Regulation relating to the

19  collection of taxes under the Beverage Law, chapters 561

20  through 565, 567, and 568, Florida Statutes, are transferred

21  by a type two transfer, as defined in section 20.06, Florida

22  Statutes, to the Department of Revenue.

23         Section 2.  Paragraph (a) of subsection (9) of section

24  20.165, Florida Statutes, is amended to read:

25         20.165  Department of Business and Professional

26  Regulation.--There is created a Department of Business and

27  Professional Regulation.

28         (9)(a)  All employees authorized by the Division of

29  Alcoholic Beverages and Tobacco shall have access to, and

30  shall have the right to inspect, premises licensed by the

31  division, to collect taxes and remit them to the officers

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  1  entitled to them, and to examine the books and records of all

  2  licensees.  The authorized employees shall require of each

  3  licensee strict compliance with the laws of this state

  4  relating to the transaction of such business.

  5         Section 3.  Section 561.025, Florida Statutes, is

  6  amended to read:

  7         561.025  Alcoholic Beverage and Tobacco Trust

  8  Fund.--There is created within the State Treasury the

  9  Alcoholic Beverage and Tobacco Trust Fund. All funds collected

10  by the division under s. ss. 210.15, s. 210.40, or under s.

11  569.003, and all funds collected by the Department of Revenue

12  under the Beverage Law with the exception of state funds

13  collected pursuant to ss. 561.501, 563.05, 564.06, and 565.12,

14  shall be deposited in the State Treasury to the credit of the

15  trust fund, notwithstanding any other provision of law to the

16  contrary.  Moneys deposited to the credit of the trust fund

17  shall be used to operate the division and to provide a

18  proportionate share of the operation of the office of the

19  secretary and the Division of Administration of the Department

20  of Business and Professional Regulation; except that:

21         (1)  The revenue transfer provisions of ss. 561.32 and

22  561.342(1) and (2) shall continue in full force and effect,

23  and the division shall cause such revenue to be returned to

24  the municipality or county in the manner provided for in s.

25  561.32 or s. 561.342(1) and (2); and

26         (2)  Ten percent of the revenues derived from retail

27  tobacco products dealer permit fees collected under s. 569.003

28  shall be transferred to the Department of Education to provide

29  for teacher training and for research and evaluation to reduce

30  and prevent the use of tobacco products by children.

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  1         Section 4.  Section 561.051, Florida Statutes, is

  2  amended to read:

  3         561.051  Reporting requirements of director.--The

  4  Department of Revenue director of the division shall promptly

  5  report and remit to the Treasurer all taxes and fees it

  6  collects under the Beverage Law collected by him or her

  7  hereunder and shall send copies of the reports to the

  8  Comptroller.

  9         Section 5.  Section 561.111, Florida Statutes, is

10  amended to read:

11         561.111  Payment of taxes by electronic funds

12  transfer.--The Secretary of Business and Professional

13  Regulation may require a person who manufactures or

14  distributes alcoholic beverages within the state to remit to

15  the Department of Revenue by electronic funds transfer any tax

16  imposed under chapter 563, chapter 564, or chapter 565 if the

17  taxpayer is subject to tax and if the total of such taxes he

18  or she paid in the prior year amounted to $50,000 or more.

19         Section 6.  Subsection (3) of section 561.181, Florida

20  Statutes, is amended to read:

21         561.181  Temporary initial licenses.--

22         (3)  Each applicant seeking a temporary initial license

23  shall pay to the Department of Revenue division for such

24  license a fee equal to one-fourth of the annual license fee

25  for the type and series of license being applied for or $100,

26  whichever is greater, which fee shall be deposited into the

27  General Revenue Fund.

28         Section 7.  Subsections (1) and (6) of section 561.19,

29  Florida Statutes, are amended to read:

30         561.19  License issuance upon approval of division.--

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  1         (1)  Upon the completion of the investigation of an

  2  application, the division shall approve or disapprove the

  3  application.  If approved, the license shall be issued upon

  4  payment to the Department of Revenue division of the license

  5  tax hereinafter provided.

  6         (6)  The state license tax shall be collected by the

  7  Department of Revenue division, and that department the

  8  division shall return the county and municipal share pursuant

  9  to s. 561.342 to the appropriate county and municipality

10  monthly on or before the 10th day of the month succeeding the

11  beginning of the taxable year and quarterly thereafter.

12         Section 8.  Paragraph (b) of subsection (3) of section

13  561.221, Florida Statutes, is amended to read:

14         561.221  Licensing of manufacturers and distributors as

15  vendors and of vendors as manufacturers; conditions and

16  limitations.--

17         (3)

18         (b)  Any vendor which is also licensed as a

19  manufacturer of malt beverages pursuant to this subsection

20  shall be responsible for applicable reports pursuant to ss.

21  561.50 and 561.55 with respect to the amount of beverage

22  manufactured each month and shall pay applicable excise taxes

23  thereon to the Department of Revenue division by the 10th day

24  of each month for the previous month.

25         Section 9.  Subsection (1) of section 561.50, Florida

26  Statutes, is amended to read:

27         561.50  One state tax payment; reports.--

28         (1)  There shall be only one state tax paid as to each

29  gallon or fraction thereof of beverage sold under the Beverage

30  Law, and no other excise tax shall be levied directly or

31  indirectly. Such tax shall be computed from the reports,

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  1  books, and records of manufacturers and distributors; and the

  2  amount so computed shall be remitted with the report required

  3  by s. 561.55 to the Department of Revenue division at

  4  intervals of 1 month, on or before the 10th of each month, for

  5  all beverages sold during the previous calendar month, and

  6  such payment of tax shall accompany the report required by s.

  7  561.55.  If the monthly tax liability of a manufacturer or

  8  distributor exceeds the amount of the bond furnished for

  9  payment of taxes, the division, upon a finding based upon

10  substantial and competent evidence that the security of the

11  tax revenue involved is in jeopardy, may require a bond equal

12  to the anticipated tax liability of the manufacturer or

13  distributor. Additionally, the division may increase the

14  frequency of the remittance of the tax when the security of

15  the tax involved is in immediate jeopardy or the financial

16  condition of the manufacturer or distributor is unstable and

17  the potential tax liability exceeds the bond furnished under

18  the Beverage Law.  In arriving at a conclusion that the

19  security of the tax revenue involved is in jeopardy, the

20  division shall consider and be guided by the prior history, if

21  any, of the compliance or noncompliance by the manufacturer or

22  distributor with beverage tax obligations; the transient or

23  nontransient nature of the manufacturer or distributorship;

24  the type of inventory, the equity of the manufacturer or

25  distributor therein, and the mobility of such inventory; the

26  financial status of the manufacturer or distributor; and the

27  anticipated tax obligation of the manufacturer or distributor.

28         Section 10.  Subsections (2) and (5) of section

29  561.501, Florida Statutes, are amended to read:

30         561.501  Surcharge on sale of alcoholic beverages for

31  consumption on the premises; penalty.--

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  1         (2)  The vendor shall report and remit payments to the

  2  division and remit payments to the Department of Revenue each

  3  month by the 15th of the month following the month in which

  4  the surcharges are imposed.  For purposes of compensating the

  5  retailer for the keeping of prescribed records and the proper

  6  accounting and remitting of surcharges imposed under this

  7  section, the retailer shall be allowed to deduct from the

  8  payment due the state 1 percent of the amount of the surcharge

  9  due. Retail records shall be kept on the quantities of all

10  liquor, wine, and beer purchased, inventories, and sales.

11  However, a collection allowance is not allowed on any

12  collections that are not timely remitted. If by the 20th of

13  the month following the month in which the surcharges are

14  imposed, reports and remittances are not made, the division

15  shall assess a late penalty in the amount of 10 percent of the

16  amount due per month for each 30 days, or fraction thereof,

17  after the 20th of the month, not to exceed a total penalty of

18  50 percent, in the aggregate, of any unpaid surcharges.  The

19  division shall establish, by rule, the required reporting,

20  collection, and accounting procedures.  Records must be

21  maintained for 3 years. Failure to accurately and timely remit

22  surcharges imposed under this section is a violation of the

23  Beverage Law.

24         (5)  All penalties and interest imposed by this section

25  are payable to and collectible by the Department of Revenue

26  division in the same manner as if they were a part of the tax

27  imposed.  The division may settle or compromise any such

28  interest or penalty under paragraph (3)(a).

29         Section 11.  Subsection (2) of section 561.55, Florida

30  Statutes, is amended to read:

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  1         561.55  Manufacturers', distributors', brokers', sales

  2  agents', importers', vendors', and exporters' records and

  3  reports.--

  4         (2)  Each manufacturer, distributor, broker, sales

  5  agent, and importer shall make a full and complete report by

  6  the 10th day of each month for the previous calendar month.

  7  The report shall be made out in quadruplicate triplicate; two

  8  copies shall be sent to the division, one copy shall be sent

  9  to the Department of Revenue, and the fourth third copy shall

10  be retained for the manufacturer's, distributor's, broker's,

11  sales agent's, or importer's record.  Reports shall be made on

12  forms prepared and furnished by the division.

13         Section 12.  Section 562.16, Florida Statutes, is

14  amended to read:

15         562.16  Possession of beverages upon which tax is

16  unpaid.--Any person or corporation who shall own or have in

17  her or his or its possession any beverage upon which a tax is

18  imposed by the Beverage Law, or which would be imposed if such

19  beverage were manufactured in or brought into this state in

20  accordance with the regulatory provisions of the Beverage Law,

21  and upon which such tax has not been paid shall, in addition

22  to the fines and penalties otherwise provided in the Beverage

23  Law, be personally liable for the amount of the tax imposed on

24  such beverage, and the Department of Revenue division may

25  collect such tax from such person by suit or otherwise;

26  provided, that this section shall not apply to manufacturers

27  or distributors licensed under the Beverage Law, to state

28  bonded warehouses or to common carriers; provided, further,

29  this section shall not apply to persons possessing not in

30  excess of 1 gallon of such beverages; provided, the beverage

31  shall have been purchased by said possessor outside of the

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  1  state in accordance with the laws of the place where purchased

  2  and shall have been brought into this state by said possessor.

  3  The burden of proof that such beverages were purchased outside

  4  the state and in accordance with the laws of the place where

  5  purchased in all cases shall be upon the possessor of such

  6  beverages.

  7         Section 13.  Subsection (1) of section 562.25, Florida

  8  Statutes, is amended to read:

  9         562.25  State bonded warehouses.--

10         (1)  No operator of any storage warehouse shall accept

11  for storage in such warehouse any alcoholic beverage subject

12  to tax under the Beverage Law until such operator shall have

13  obtained from the division a permit to store such beverage and

14  shall have filed a bond payable to the division, conditioned

15  upon the full compliance by such operator with the provisions

16  of this section. This section shall not apply to a federal

17  bonded warehouse owned wholly by, and operated solely for, a

18  manufacturer or distributor licensed under the Beverage Law.

19  Such permit shall issue upon the payment of $1 to the

20  Department of Revenue division, and may be refused, suspended,

21  or revoked in the same manner and upon the same grounds that

22  the license of a distributor may be refused, suspended, or

23  revoked. Such bond shall be in an amount of not more than

24  $5,000 nor less than $1,000, in the discretion of the

25  division, with a surety company licensed to do business in the

26  state as surety.

27         Section 14.  Section 563.07, Florida Statutes, is

28  amended to read:

29         563.07  Beer distributors' collection credit.--For the

30  purpose of allowing credit to licensed distributors of malt

31  beverages or beer for keeping prescribed records, furnishing

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  1  bond, and properly accounting for and remitting taxes due to

  2  the state, such licensed distributors shall be allowed 2.5

  3  percent of the amount of the tax due, accounted for, and

  4  remitted to the Department of Revenue division, in the form of

  5  a deduction from such remittance.  However, no allowance may

  6  be granted or permitted when the tax is delinquent at the time

  7  of payment.

  8         Section 15.  Subsection (7) of section 564.06, Florida

  9  Statutes, is amended to read:

10         564.06  Excise taxes on wines and beverages.--

11         (7)  Every distributor selling wine within the state

12  shall pay the tax to the Department of Revenue division

13  monthly on or before the 10th day of the following month, less

14  1.9 percent of the tax due, which shall be withheld by the

15  distributor for keeping prescribed records, furnishing bond,

16  and properly accounting for and remitting taxes due to the

17  state.  However, no allowance shall be granted or permitted

18  when the tax is delinquent at the time of payment.

19         Section 16.  Subsections (2), (3), and (9) of section

20  565.02, Florida Statutes, are amended to read:

21         565.02  License fees; vendors; clubs; caterers; and

22  others.--

23         (2)  Any operator of railroads or sleeping cars in this

24  state may obtain a license to sell the beverages mentioned in

25  the Beverage Law on passenger trains upon the payment of an

26  annual license tax of $2,500, the tax to be paid to the

27  Department of Revenue division.  Such license shall authorize

28  the holder thereof to keep for sale and sell all beverages

29  mentioned in the Beverage Law upon any dining, club, parlor,

30  buffet, or observation car operated by it in this state, but

31  such beverages may be sold only to passengers upon the cars

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  1  and must be served for consumption thereon.  It is unlawful

  2  for such licensees to purchase or sell any liquor except in

  3  miniature bottles of not more than 2 ounces. Every such

  4  license shall be good throughout the state.  No license shall

  5  be required, or tax levied by any municipality or county, for

  6  the privilege of selling such beverages for consumption in

  7  such cars.  Such beverages shall be sold only on cars in which

  8  are posted certified copies of the licenses issued to such

  9  operator.  Such certified copies of such licenses shall be

10  issued by the division upon the payment of a tax of $10.

11         (3)(a)  Operators of steamships and steamship lines,

12  buses and bus lines, or airplanes and airlines engaged in

13  interstate or foreign commerce or plying between fixed

14  terminals and upon fixed schedules in this state may obtain

15  licenses to sell the beverages mentioned in the Beverage Law:

16         1.  On steamships, buses, and airplanes operated by

17  such operators, upon the payment of an annual license tax of

18  $1,100; and

19         2.  In no more than one passenger waiting lounge

20  licensed by the division and operated by an airline licensed

21  herein at each of its terminals in the state for ticketed

22  passengers whose flights are scheduled to depart within 24

23  hours of service and guests in the company of such

24  ticketholders, provided such licensed airline has first

25  obtained an appropriate space lease or permit providing for

26  payment of nondiscriminatory rental and concession fees and

27  upon the payment of an additional license tax of $1,100 per

28  lounge.

29

30  All such license taxes shall be paid to the Department of

31  Revenue division.  Such licenses shall authorize the holders

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  1  thereof to keep for sale and sell all beverages mentioned in

  2  the Beverage Law upon any steamship, bus, or airplane or in

  3  any such airline passenger waiting lounge operated by such

  4  operators in this state, but such beverages may be sold only

  5  to passengers upon such steamships, buses, and airplanes and

  6  to ticketed passengers and their guests in such airline

  7  passenger waiting lounges and may be served only for

  8  consumption on such steamships, buses, and airplanes or in

  9  such airline passenger waiting lounges.  It is unlawful for

10  such licensees to purchase for resale any liquor except in

11  miniature bottles of not more than 2 ounces or liquor in

12  individual containers of not less than one-fifth of 1 gallon.

13  Such sales are permitted while such steamships, buses, and

14  airplanes are in transit; but such sales are not permitted on

15  airplanes while such airplanes are in airports.  Every such

16  license shall be good throughout the state.  No license may be

17  required or tax levied by any municipality or county for the

18  privilege of selling such beverages for consumption on such

19  steamships, buses, or airplanes or in such airline passenger

20  waiting lounges.  The division shall issue a license to sell

21  alcoholic beverages on steamships, buses, and airplanes to an

22  operator of a steamship line, bus line, or airline, at a

23  central location designated on the sworn application for

24  license.  The application for initial issuance of such a

25  license must specify the number of steamships, buses, or

26  airplanes in the fleet scheduled by the operator of the line

27  for operation in this state. An application for renewal of

28  such a license must specify the total number of steamships,

29  buses, or airplanes in the fleet that operated in this state

30  during the preceding license year.  In addition to the annual

31  license tax imposed under this subsection, a tax of $25 is

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  1  imposed for each steamship, bus, or airplane which is

  2  disclosed on the application for license or renewal of

  3  license. Upon the payment of all applicable license taxes,

  4  each such steamship, bus, or airplane is considered a licensed

  5  premises under the Beverage Law.  However, this paragraph does

  6  not apply to operators of pleasure, excursion, sightseeing, or

  7  charter boats not having regular round-trip runs of more than

  8  100 miles in each direction; but operators of such boats may

  9  obtain licenses, with such boats being designated as their

10  places of business, upon compliance with all the laws relating

11  to vendors operating places of business where consumption on

12  the premises is permitted. However, the operator of any

13  pleasure, excursion, sightseeing, or charter boat which has a

14  Coast Guard-approved capacity of at least 125 passengers may

15  be granted a special liquor license to sell and serve

16  alcoholic beverages to passengers during a period of no longer

17  than 1 hour prior to departure on a scheduled or chartered

18  cruise while the boat is docked at a docking facility or

19  marina and the period during which the boat is in operation on

20  the scheduled or chartered cruise for consumption on the

21  premises only.  The fee for such special license shall be the

22  same as that charged pursuant to paragraphs (1)(b)-(f) based

23  on the location of the home port of the boat. Also, no license

24  to sell the beverages herein defined shall be issued to the

25  operator of any boat which plies upon or is anchored upon the

26  waters of any lake within this state.

27         (b)  Operators of railroads, sleeping cars, steamships,

28  buses, and airplanes licensed under this section shall not be

29  required to obtain their beverages from licensees under the

30  Beverage Law, but such operators shall keep strict accounts of

31  all such beverages sold within this state and shall make

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  1  monthly reports to the division on the forms prepared and

  2  furnished by the division.  Such operators are required to pay

  3  an excise tax for such beverages sold within this state as to

  4  which such excise tax has not theretofore been paid, equal to

  5  the tax assessed against manufacturers and distributors.  Such

  6  operators shall pay such tax monthly to the Department of

  7  Revenue division at the same time they furnish the reports

  8  hereinabove provided for.  Such reports shall be filed on or

  9  before the 15th day of each month for sales for the previous

10  calendar month.

11         (9)  It is the finding of the Legislature that

12  passenger vessels engaged exclusively in foreign commerce are

13  susceptible to a distinct and separate classification for

14  purposes of the sale of alcoholic beverages under the Beverage

15  Law.  Upon the filing of an application and payment of an

16  annual fee of $1,100, the director is authorized to issue a

17  permit authorizing the operator, or, if applicable, his or her

18  concessionaire, of a passenger vessel which has cabin-berth

19  capacity for at least 75 passengers, and which is engaged

20  exclusively in foreign commerce, to sell alcoholic beverages

21  on the vessel for consumption on board only:

22         (a)  During a period not in excess of 24 hours prior to

23  departure while the vessel is moored at a dock or wharf in a

24  port of this state; or

25         (b)  At any time while the vessel is located in Florida

26  territorial waters and is in transit to or from international

27  waters.

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29  One such permit shall be required for each such vessel and

30  shall name the vessel for which it is issued.  No license

31  shall be required or tax levied by any municipality or county

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  1  for the privilege of selling beverages for consumption on

  2  board such vessels.  The beverages so sold may be purchased

  3  outside the state by the permittee, and the same shall not be

  4  considered as imported for the purposes of s. 561.14(3) solely

  5  because of such sale.  The permittee is not required to obtain

  6  its beverages from licensees under the Beverage Law, but it

  7  shall keep a strict account of all such beverages sold within

  8  this state and shall make monthly reports to the division on

  9  forms prepared and furnished by the division.  A permittee who

10  sells on board the vessel beverages withdrawn from United

11  States Customs Service bonded storage on board the vessel may

12  satisfy such accounting requirement by supplying the division

13  with copies of the appropriate United States Customs Service

14  forms evidencing such withdrawals as importations under United

15  States customs laws. Such permittee shall pay to the state an

16  excise tax for beverages sold pursuant to this section, if

17  such excise tax has not previously been paid, in an amount

18  equal to the tax which would be required to be paid on such

19  sales by a licensed manufacturer or distributor.  A vendor

20  holding such permit shall pay the tax monthly to the

21  Department of Revenue division at the same time he or she

22  furnishes the required report.  Such report shall be filed on

23  or before the 15th day of each month for the sales occurring

24  during the previous calendar month.

25         Section 17.  Section 565.13, Florida Statutes, is

26  amended to read:

27         565.13  Monthly payment of tax by distributor.--Every

28  distributor selling spirituous beverages within the state

29  shall pay the tax to the Department of Revenue division

30  monthly on or before the 10th day of the following month, less

31  1.0 percent of the tax due, which shall be withheld by the

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  1  distributor for keeping prescribed records, furnishing bond,

  2  and properly accounting for and remitting taxes due to the

  3  state.  However, no allowance may be granted or permitted when

  4  the tax is delinquent at the time of payment.

  5         Section 18.  This act shall take effect July 1, 2003.

  6

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  8                          SENATE SUMMARY

  9    Transfers responsibility for collecting beverage taxes
      from the Division of Alcoholic Beverages and Tobacco to
10    the Department of Revenue.

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