HB 1907 2003
1	A bill to be entitled
2	An act relating to taxation; amending s. 199.052, F.S.;
3	deleting a requirement to permit a voluntary contribution
4	to the Election Campaign Financing Trust Fund when filing
5	an intangible tax return; amending ss. 202.11, 202.125,
6	202.22, 202.27, 202.28, 202.34, and 202.35, F.S., relating
7	to the local communications services tax; revising
8	definitions; changing sourcing requirements for third-
9	number and calling-card calls; excluding certain not-for-
10	hire mobile communications services from the definition of
11	the term "substitute communications systems"; providing an
12	exemption for homes for the aged; defining the term "home
13	for the aged" and providing qualification requirements;
14	providing limitations on refunds of or credits for taxes
15	collected; providing legislative intent with respect to
16	provisions clarifying the law; requiring a taxpayer to
17	designate a managerial representative; requiring a
18	response from the dealer; providing a procedure for the
19	taxpayer and the department to resolve a material error on
20	a tax return; providing a definition; providing for
21	repeal; providing penalties for failure to properly report
22	and identify taxes on the appropriate return schedule;
23	providing penalties for failure to assign service
24	addresses to the correct local jurisdiction under certain
25	circumstances; authorizing the department to allocate
26	service addresses to local jurisdictions under specified
27	circumstances; requiring that a taxpayer provide certain
28	records to the Department of Revenue in a certain format
29	under certain circumstances; authorizing the department to
30	determine the allocation or reallocation of certain taxes
31	to local governments under certain circumstances; amending
32	s. 206.02, F.S.; prohibiting a person from engaging in
33	business as a biodiesel manufacturer unless the person is
34	licensed by the department; revising licensing
35	requirements; requiring biodiesel manufacturers to meet
36	the reporting, bonding, and licensing requirements
37	prescribed for wholesalers of motor fuel; amending s.
38	206.026, F.S.; requiring the department to obtain
39	fingerprints for criminal background checks for certain
40	license holders; amending s. 206.052, F.S., relating to
41	the export of tax-free fuels; conforming a cross reference
42	to changes made by the act; amending s. 206.14, F.S.;
43	providing a penalty for failure to provide records as
44	required by the department; amending s. 206.414, F.S.,
45	relating to local option fuel taxes; providing for the tax
46	to be collected when fuel is removed through the terminal
47	loading rack; providing procedures for such tax
48	collection; amending s. 206.416, F.S.; deleting certain
49	provisions authorizing a change in the destination of
50	fuel; requiring that a wholesaler or exporter register as
51	an importer under certain circumstances; providing
52	penalties; amending s. 206.485, F.S., relating to tracking
53	reports for petroleum products; imposing a penalty for
54	failure to provide such reports; amending s. 206.86, F.S.;
55	revising the definition of the term "diesel fuel" and
56	defining the terms "biodiesel" and "biodiesel
57	manufacturer" for certain purposes; amending s. 206.89,
58	F.S., relating to the regulating of alternative fuels;
59	requiring the licensure of retailers rather than
60	wholesalers; amending s. 212.055, F.S.; providing
61	additional uses for the proceeds of the local government
62	infrastructure surtax for certain counties under specified
63	circumstances; amending s. 212.0606, F.S., relating to the
64	rental car surcharge; requiring dealers to report the
65	surcharge collections by the county where collected;
66	amending s. 212.08, F.S.; authorizing certain carriers to
67	prorate the state tax on motor or diesel fuels used in
68	interstate commerce in the initial year of operation;
69	revising the definition of a housing project for purposes
70	of the sales and use tax exemption for building materials
71	used in redevelopment projects; creating an exemption from
72	the sales and use tax for low speed vehicles; amending s.
73	212.11, F.S.; correcting a cross reference; amending s.
74	212.12, F.S.; deleting a prohibition on certain allowances
75	if the tax is delinquent; revising a limitation on certain
76	penalties; providing an additional penalty for failure to
77	timely disclose a tax or fee; requiring that the
78	department make certain tax amounts and brackets available
79	in an electronic format; deleting a requirement that the
80	amounts and brackets be established pursuant to rule;
81	amending s. 213.053, F.S.; deleting a repeal of the
82	allowance of confidential information sharing concerning a
83	certified public accountant participating in the certified
84	audits project under specified circumstances; authorizing
85	the Department of Revenue to share information with the
86	Department of Transportation on rental car surcharge
87	revenues; amending s. 213.0535, F.S.; providing that a
88	local government which collects a municipal resort tax may
89	participate in the Registration Information Sharing and
90	Exchange Program; amending s. 213.21, F.S.; revising the
91	period during which a taxpayer may voluntarily disclose a
92	tax liability; providing for applicability; deleting a
93	repeal of the Department of Revenue’s compromise authority
94	for interest and penalties related to the certified audits
95	project; amending s. 213.285, F.S.; deleting a repeal of
96	the certified audits project; requiring a report regarding
97	the effectiveness of the certified audits project;
98	amending s. 336.021, F.S.; revising certain dates for
99	purposes of certifying distributions of local option fuel
100	taxes; amending ss. 443.036, 443.131, and 443.1316, F.S.,
101	relating to the unemployment compensation tax; requiring
102	that a limited liability company be treated at the same
103	status as it is classified for federal income tax
104	purposes; clarifying succession requirements for
105	employers; providing for transfer of employees; providing
106	that recovery of certain federal moneys from the Agency
107	for Workforce Innovation is not limited by state law on
108	indirect cost recovery; amending s. 443.163, F.S.;
109	revising requirements of electronic reporting and
110	remitting for certain persons who prepare and report
111	taxes; revising penalties for failing to report or remit
112	taxes by electronic means; providing for retroactive
113	application; amending s. 624.509, F.S.; creating an
114	allocation formula for employee salary credits for certain
115	corporations for the purpose of calculating the salary tax
116	credit for insurance premium tax purposes; providing
117	definitions; providing for disallowing the salary tax
118	credit under certain circumstances; amending s. 832.062,
119	F.S.; prohibiting certain electronic funds transfers if
120	the taxpayer knows at the time of such transfer that funds
121	are insufficient to cover the transfer; providing
122	effective dates.
123
124	Be It Enacted by the Legislature of the State of Florida:
125
126	Section 1. Subsections (13), (14), and (15) of section
127	199.052, Florida Statutes, are amended to read:
128	199.052 Annual tax returns; payment of annual tax.--
129	(13) The annual intangible tax return shall include
130	language permitting a voluntary contribution of $5 per taxpayer,
131	which contribution shall be transferred into the Election
132	Campaign Financing Trust Fund. A statement providing an
133	explanation of the purpose of the trust fund shall also be
134	included.
135	(13)(14)If a bank or savings association, as defined in
136	s. 220.62, acts as a fiduciary or agent of a trust other than as
137	a trustee, the bank or savings association is not responsible
138	for returning the trust's intangible personal property and is
139	not required to pay any annual tax on it, and the management or
140	control of the bank or savings association shall not be used as
141	the basis for imposing any annual tax on any person or any
142	assets of the trust. If a person acts as a fiduciary or agent
143	for purposes of managing intangible assets owned by another
144	person, such intangible assets shall not have a taxable situs in
145	this state pursuant to s. 199.175 solely by virtue of the
146	management or control of such assets by the person who is not
147	the owner of the assets.
148	(14)(15)(a) Except as provided in paragraph (b), all banks
149	and financial organizations filing annual intangible tax returns
150	for their customers shall file return information for taxes due
151	January 1, 1999, and thereafter using machine-sensible media.
152	The information required by this subsection must be reported by
153	banks or financial organizations on machine-sensible media,
154	using specifications and instructions of the department. A bank
155	or financial organization that demonstrates to the satisfaction
156	of the department that a hardship exists is not required to file
157	intangible tax returns for its customers using machine-sensible
158	media. The department shall adopt rules necessary to administer
159	this paragraph.
160	(b) A taxpayer may choose to file an annual intangible
161	personal property tax return in a form initiated through an
162	electronic data interchange using an advanced encrypted
163	transmission by means of the Internet or other suitable
164	transmission. The department shall prescribe by rule the format
165	and instructions necessary for such filing to ensure a full
166	collection of taxes due. The acceptable method of transfer, the
167	method, form, and content of the electronic data interchange,
168	and the means, if any, by which the taxpayer will be provided
169	with an acknowledgment shall be prescribed by the department.
170	Section 2. Paragraph (a) of subsection (15) and subsection
171	(16) of section 202.11, Florida Statutes, are amended to read:
172	202.11 Definitions.--As used in this chapter:
173	(15) "Service address" means:
174	(a) Except as otherwise provided in this section, the
175	location of the communications equipment from which
176	communications services originate or at which communications
177	services are received by the customer. If the location of such
178	equipment cannot be determined as part of the billing process,
179	as in the case of third-number and calling-card calls and
180	similar services, the term means the location determined by the
181	dealer based on the customer's telephone number, the customer's
182	mailing address to which bills are sent by the dealer, or
183	another street address provided by the customer.In the case of
184	a communications service paid through a credit or payment
185	mechanism that does not relate to a service address, such as a
186	bank, travel, debit, or credit card, and in the case of third-
187	number and calling-card calls,the service address is the
188	address of the central office, as determined by the area code
189	and the first three digits of the seven-digit originating
190	telephone number.
191	(16) "Substitute communications system" means any
192	telephone system, or other system capable of providing
193	communications services, which a person purchases, installs,
194	rents, or leases for his or her own use to provide himself or
195	herself with services used as a substitute for any switched
196	service or dedicated facility by which a dealer of
197	communications services provides a communication path. The term
198	does not include a not-for-hire mobile communications service
199	that exclusively serves the internal communication needs of a
200	nonprofit utility provider.
201	Section 3. Subsection (4) of section 202.125, Florida
202	Statutes, is amended to read:
203	202.125 Sales of communications services; specified
204	exemptions.--
205	(4) The sale of communications services to a home for the
206	aged, religious institution,or educational institution that is
207	exempt from federal income tax under s. 501(c)(3) of the
208	Internal Revenue Code, or by a religious institution that is
209	exempt from federal income tax under s. 501(c)(3) of the
210	Internal Revenue Code having an established physical place for
211	worship at which nonprofit religious services and activities are
212	regularly conducted and carried on, is exempt from the taxes
213	imposed or administered pursuant to ss. 202.12 and 202.19. As
214	used in this subsection, the term:
215	(a) "Religious institution" means an organization owning
216	and operating an established physical place for worship at which
217	nonprofit religious services and activities are regularly
218	conducted. The term also includes:
219	1. Any nonprofit corporation the sole purpose of which is
220	to provide free transportation services to religious institution
221	members, their families, and other religious institution
222	attendees.
223	2. Any nonprofit state, district, or other governing or
224	administrative office the function of which is to assist or
225	regulate the customary activities of religious institutions.
226	3. Any nonprofit corporation that owns and operates a
227	television station in this state of which at least 90 percent of
228	the programming consists of programs of a religious nature and
229	the financial support for which, exclusive of receipts for
230	broadcasting from other nonprofit organizations, is
231	predominantly from contributions from the public.
232	4. Any nonprofit corporation the primary activity of which
233	is making and distributing audio recordings of religious
234	scriptures and teachings to blind or visually impaired persons
235	at no charge.
236	5. Any nonprofit corporation the sole or primary purpose
237	of which is to provide, upon invitation, nonprofit religious
238	services, evangelistic services, religious education,
239	administrative assistance, or missionary assistance for a
240	religious institution, or established physical place of worship
241	at which nonprofit religious services and activities are
242	regularly conducted.
243	(b) "Educational institution" includes:
244	1. Any state tax-supported, parochial, religious
245	institution, and nonprofit private school, college, or
246	university that conducts regular classes and courses of study
247	required for accreditation by or membership in the Southern
248	Association of Colleges and Schools, the Florida Council of
249	Independent Schools, or the Florida Association of Christian
250	Colleges and Schools, Inc.
251	2. Any nonprofit private school that conducts regular
252	classes and courses of study which are accepted for continuing
253	education credit by a board of the Division of Medical Quality
254	Assurance of the Department of Health.
255	3. Any nonprofit library.
256	4. Any nonprofit art gallery.
257	5. Any nonprofit performing arts center that provides
258	educational programs to school children, which programs involve
259	performances or other educational activities at the performing
260	arts center and serve a minimum of 50,000 school children a
261	year.
262	6. Any nonprofit museum that is open to the public.
263	(c) "Home for the aged" includes any nonprofit
264	corporation:
265	1.a. In which at least 75 percent of the occupants are 62
266	years of age or older or totally and permanently disabled.
267	b. Which qualifies for an ad valorem property tax
268	exemption under s. 196.196, s. 196.197, or s. 196.1975.
269	c. Which is exempt from the sales tax imposed under
270	chapter 212.
271	2. Licensed as a nursing home or an assisted living
272	facility under chapter 400 and which is exempt from the sales
273	tax imposed under chapter 212.
274	Section 4. Subsection (8) is added to section 202.22,
275	Florida Statutes, to read:
276	202.22 Determination of local tax situs.--
277	(8) All local communications services taxes collected by a
278	dealer are subject to the provisions of s. 213.756. The hold
279	harmless protection provided by subsection (1) does not entitle
280	a dealer to retain or take credits for taxes collected from any
281	customers that are assigned to an incorrect local taxing
282	jurisdiction in excess of the taxes due to the correct local
283	taxing jurisdiction for that customer. Dealers are entitled to
284	refunds of or credits for such excess collections only upon
285	making refunds or providing credits to the customer.
286	Section 5. The amendment to s. 202.22(8), Florida
287	Statutes, made by this act is remedial in nature and is intended
288	to clarify existing law.
289	Section 6. Subsection (6) of section 202.27, Florida
290	Statutes, is renumbered as subsection (8) and subsections (6)
291	and (7) are added to said section to read:
292	202.27 Return filing; rules for self-accrual.--
293	(6) In addition to the contact person identified on the
294	return, each dealer of communications services obligated to
295	collect and remit local communications services tax imposed
296	under s. 202.19 may at any time, and shall within 10 days after
297	a request, designate a managerial representative to whom the
298	department shall direct any inquiry regarding the completeness
299	or accuracy of the dealer's return when the response provided by
300	the contact person identified on the return was inadequate. When
301	the representative designated under this subsection is contacted
302	by the department, the dealer shall respond to the department
303	within 30 days.
304	(7)(a) If the department determines it is probable that a
305	return filed pursuant to this chapter contains a material error
306	in the reporting of local communications service taxes by
307	jurisdiction as required by s. 202.37(2), the department,
308	subject to the provisions of this subsection, may issue a notice
309	as described in this subsection to the dealer that filed the
310	return. The notice shall be in writing and shall be issued as
311	soon as possible following the date the department received the
312	return. Prior to issuing the notice, the department shall
313	attempt to resolve the issue in the manner provided in
314	subsection (6), shall consult with the affected local
315	jurisdictions, and shall consult other sources of information
316	available to the department that would have a bearing on whether
317	the existence of a material error in the return is probable.
318	Such inquiry by the department shall include, without
319	limitation, whether local rate changes, changes in
320	jurisdictional boundaries, or fluctuations in the taxes reported
321	by other dealers are consistent with the reporting on the return
322	that is the subject of the notice. The notice shall specify the
323	schedule and the line or lines of the return that are the
324	subject of the notice, describe the reporting error, and
325	describe the other sources of information consulted by the
326	department as required herein and the results of such inquiry.
327	(b) The dealer shall respond in writing to the notice
328	within 90 days after receipt of the notice, except that an
329	extension of such 90-day period shall be granted if requested by
330	the dealer for reasonable cause. The dealer's response shall
331	state either that the return contained a material error
332	conforming to the department’s description and that the error
333	has been corrected by filing a corrected return or that the
334	dealer has been unable to locate such an error. In the latter
335	event, the dealer’s response shall also state whether any of the
336	following events have occurred that might reasonably account for
337	the condition described in the notice as a probable reporting
338	error:
339	1. The dealer has changed from one of the methods
340	specified in s. 202.22(1) of assigning customers to local
341	jurisdictions to another method specified in such subsection;
342	2. There has been an acquisition or disposition of an
343	entity providing communications services, an acquisition or
344	disposition of such an entity’s assets used to provide such
345	services, or a change in the dealer’s licensed service area;
346	3. The dealer has implemented a new billing system;
347	4. There has been an update to the dealer’s database or
348	corrections in assignments of service addresses pursuant to s.
349	202.22(4)(b); or
350	5. Substantial credits, refunds, or adjustments to
351	customer accounts are reflected in the return identified in the
352	notice.
353
354	This paragraph shall not be construed to require the dealer to
355	perform a self-audit to ascertain whether the condition
356	described in the notice is attributable to any of the foregoing
357	events and the issuance of the notice shall not be considered to
358	determine the dealer's substantial interests or be considered to
359	constitute an audit for purposes of this chapter.
360	(c) If the dealer responds as required in this subsection
361	and provides information prescribed in subparagraphs (b)1.-5.
362	that is incorrect and, after audit, the return is finally
363	determined to contain the specific material error identified in
364	the notice, the dealer shall be subject to a penalty not to
365	exceed the lesser of 10 percent of any taxes reported for an
366	incorrect jurisdiction as a result of the error or $10,000. If
367	the dealer fails to respond to the notice or request an
368	extension within the time prescribed, the dealer shall be
369	subject to a specific penalty of $5,000, except that the
370	department shall waive the specific penalty if the dealer
371	responds as required within 30 days after notification that the
372	specific penalty has been imposed.
373	(d) For purposes of this subsection, the term “material
374	error” means an error in the reporting of tax on a return for a
375	specific local jurisdiction that exceeds the greater of $50,000
376	or 50 percent of the tax reported for such local jurisdiction.
377	Material error also includes a return for which Schedule I or
378	Schedule II is not included, regardless of the tax amount
379	reported. The term “material error” does not include, and the
380	penalties set forth in this subsection shall not apply to, any
381	error resulting from the assignment of a service address to an
382	incorrect local taxing jurisdiction for which the dealer is held
383	harmless under s. 202.22(1).
384	(e) This subsection is repealed June 30, 2004.
385	Section 7. Paragraphs (d) and (e) are added to subsection
386	(2) of section 202.28, Florida Statutes, to read:
387	202.28 Credit for collecting tax; penalties.--
388	(2)
389	(d) If a dealer fails to separately report and identify
390	local communications services taxes on the appropriate return
391	schedule, the dealer shall be subject to a penalty of $5,000 per
392	return.
393	(e) If a dealer of communications services does not use
394	one or more of the methods specified in s. 202.22(1) for
395	assigning service addresses to local jurisdictions and assigns
396	one or more service addresses to an incorrect local jurisdiction
397	in collecting and remitting local communications services taxes
398	imposed under s. 202.19, the dealer shall be subject to a
399	specific penalty of 10 percent of any tax collected but reported
400	to the incorrect jurisdiction as a result of incorrect
401	assignment, provided that in no event shall the penalty imposed
402	hereunder with respect to a single return exceed $10,000.
403	Section 8. Subsection (5) is added to section 202.34,
404	Florida Statutes, to read:
405	202.34 Records required to be kept; power to inspect;
406	audit procedure.--
407	(5) If a dealer retains records in both machine-sensible
408	and hard copy formats, upon request by the department, the
409	dealer shall make the records available to the department in the
410	machine-sensible format. Any dealer or other person who fails or
411	refuses to provide such records within 60 days after the
412	department’s request or any extension thereof shall, in addition
413	to all other penalties provided by law, be subject to a specific
414	penalty of $5,000 per audit.
415	Section 9. Subsection (3) of section 202.35, Florida
416	Statutes, is amended to read:
417	202.35 Powers of department in dealing with delinquents;
418	tax to be separately stated.--
419	(3) If a dealer or other person fails or refuses to make
420	his or her records available for inspection so that an audit or
421	examination of his or her books and records cannot be made,
422	fails or refuses to register as a dealer, fails to make a report
423	and pay the tax as provided by this chapter, makes a grossly
424	incorrect report, or makes a report that is false or fraudulent,
425	the department shall make an assessment from an estimate based
426	upon the best information then available to it for the taxable
427	period of retail sales of the dealer, together with any accrued
428	interest and penalties. The department shall then proceed to
429	collect the taxes, interest, and penalties on the basis of such
430	assessment, which shall be considered prima facie correct; and
431	the burden to show the contrary rests upon the dealer or other
432	person. If a dealer fails to respond to a contact made pursuant
433	to s. 202.27(6) or a notice issued pursuant to s. 202.27(7), or
434	if a dealer’s records are determined to be inadequate for
435	purposes of determining whether the dealer properly allocated
436	tax to and between local governments, the department is
437	authorized to determine the proper allocation or reallocation of
438	the tax based upon the best information available to the
439	department and shall seek the agreement of the affected local
440	governments.
441	Section 10. Section 206.02, Florida Statutes, is amended
442	to read:
443	206.02 Application for license; temporary license;
444	terminal suppliers, importers, exporters, blenders, biodiesel
445	manufacturers,and wholesalers.--
446	(1) It is unlawful for any person to engage in business as
447	a terminal supplier, importer, exporter, blender, biodiesel
448	manufacturer,or wholesaler of motor fuel within this state
449	unless such person is the holder of an unrevoked license issued
450	by the department to engage in such business. A person is
451	engaging in such business if he or she:
452	(a) Imports or causes any motor fuel to be imported and
453	sells such fuel at wholesale, retail, or otherwise within this
454	state.
455	(b) Imports and withdraws for use within this state by
456	himself or herself or others any motor fuel from the tank car,
457	truck, or other original container or package in which such
458	motor fuel was imported into this state.
459	(c) Manufactures, refines, produces, or compounds any
460	motor fuel and sells such fuel at wholesale or retail, or
461	otherwise within this state for use or consumption within this
462	state.
463	(d) Imports into this state from any other state or
464	foreign country, or receives by any means into this state, any
465	motor fuel which is intended to be used for consumption in this
466	state and keeps such fuel in storage in this state for a period
467	of 24 hours or more after it loses its interstate or foreign
468	commerce character as a shipment in interstate or foreign
469	commerce.
470	(e) Is primarily liable under the fuel tax laws of this
471	state for the payment of motor fuel taxes.
472	(f) Purchases or receives in this state motor fuel upon
473	which the tax has not been paid.
474	(g) Exports taxable motor or diesel fuels either from
475	substorage at a bulk facility or directly from a terminal rack
476	to a destination outside the state.
477	(2) To procure a terminal supplier license, a person shall
478	file with the department an application under oath, and in such
479	form as the department may prescribe, setting forth:
480	(a) The name under which the person will transact business
481	within the state and that person's registration number under s.
482	4101 of the Internal Revenue Code.
483	(b) The location, with street number address, of his or
484	her principal office or place of business and the location where
485	records will be made available for inspection.
486	(c) The name and complete residence address of the owner
487	or the names and addresses of the partners, if such person is a
488	partnership, or of the principal officers, if such person is a
489	corporation or association; and, if such person is a corporation
490	organized under the laws of another state, territory, or
491	country, he or she shall also indicate the state, territory, or
492	country in which the corporation is organized and the date the
493	corporation was registered withfile with the application a
494	certified copy of the certificate or license issued bythe
495	Department of State as a foreign corporationshowing that such
496	corporation isauthorized to transact business in the state.
497
498	The application shall require a $30 license tax. Each license
499	shall be renewed annually through application, including an
500	annual $30 license tax.
501	(3) To procure an importer, exporter, or blender of motor
502	fuels license, a person shall file with the department an
503	application under oath, and in such form as the department may
504	prescribe, setting forth:
505	(a) The name under which the person will transact business
506	within the state.
507	(b) The location, with street number address, of his or
508	her principal office or place of business and the location where
509	records will be made available for inspection.
510	(c) The name and complete residence address of the owner
511	or the names and addresses of the partners, if such person is a
512	partnership, or of the principal officers, if such person is a
513	corporation or association; and, if such person is a corporation
514	organized under the laws of another state, territory, or
515	country, he or she shall also indicate the state, territory, or
516	country in which the corporation is organized and the date the
517	corporation was registered withfile with the application a
518	certified copy of the certificate or license issued bythe
519	Department of State as a foreign corporationshowing that such
520	corporation isauthorized to transact business in the state.
521
522	The application shall require a $30 license tax. Each license
523	shall be renewed annually through application, including an
524	annual $30 license tax.
525	(4) To procure a wholesaler of motor fuel license, a
526	person shall file with the department an application under oath
527	and in such form as the department may prescribe, setting forth:
528	(a) The name under which the person will transact business
529	within the state.
530	(b) The location, with street number address, of his or
531	her principal office or place of business within this state and
532	the location where records will be made available for
533	inspection.
534	(c) The name and complete residence address of the owner
535	or the names and addresses of the partners, if such person is a
536	partnership, or of the principal officers, if such person is a
537	corporation or association; and, if such person is a corporation
538	organized under the laws of another state, territory, or
539	country, he or she shall also indicate the state, territory, or
540	country in which the corporation is organized and the date the
541	corporation was registered withfile with the application a
542	certified copy of the certificate or license issued bythe
543	Department of State as a foreign corporationshowing that such
544	corporation isauthorized to transact business in the state.
545
546	The application shall require a $30 license tax. Each license
547	shall be renewed annually through application, including an
548	annual $30 license fee.
549	(5) Each biodiesel manufacturer must meet the reporting,
550	bonding, and licensing requirements prescribed for wholesalers
551	by this chapterAny importer who establishes a business location
552	in this state must, prior to beginning business in the state,
553	apply for and be issued a wholesaler's license. An importer's
554	license becomes invalid on the date business operations begin
555	from a location within this state.
556	(6) Upon the filing of an application for a license and
557	concurrently therewith, a bond of the character stipulated and
558	in the amount provided for shall be filed with the department.
559	No license shall issue upon any application unless accompanied
560	by such a bond, except as provided in s. 206.05(1).
561	(7)(a) If all applicants for a license hold a current
562	license in good standing of the same type and kind, the
563	department shall issue a temporary license upon the filing of a
564	completed application, payment of all fees, and the posting of
565	adequate bond. A temporary license shall automatically expire 90
566	days after its effective date or, prior to the expiration of 90
567	days or the period of any extension, upon issuance of a
568	permanent license or of a notice of intent to deny a permanent
569	license. A temporary license may be extended once for a period
570	not to exceed 60 days, upon written request of the applicant,
571	subject to the restrictions imposed by this subsection.
572	(b) A publicly held corporation, the securities of which
573	are regularly traded on a national securities exchange and not
574	over the counter, which begins a new business and which applies
575	for a license as a terminal supplier, importer, exporter, or
576	wholesaler shall be issued a license without the department's
577	background investigation.
578	Section 11. Subsection (5) of section 206.026, Florida
579	Statutes, is amended to read:
580	206.026 Certain persons prohibited from holding a terminal
581	supplier, importer, exporter, blender, carrier, terminal
582	operator, or wholesaler license; suspension and revocation.--
583	(5) The department shall obtain fingerprints andmake such
584	rules for the photographing, fingerprinting, and obtaining of
585	personal data from personsof individualsdescribed in paragraph
586	(1)(a) for purposes of determining whether such persons have a
587	criminal background and shall obtainthe obtaining of suchdata
588	regarding the business entities described in paragraph (1)(a) as
589	are necessary to effectuate the provisions of this section. Such
590	fingerprints shall be used for statewide criminal and juvenile
591	records checks through the Department of Law Enforcement and
592	federal criminal records checks through the Federal Bureau of
593	Investigation.
594	Section 12. Subsection (2) of section 206.052, Florida
595	Statutes, is amended to read:
596	206.052 Export of tax-free fuels.--
597	(2) A licensed exporter shall not divert for sale or use
598	in this state any fuel designated to a destination outside this
599	state without first obtaining a diversion number from the
600	department as specified in s. 206.416(1)(b)(d)and manually
601	recording that number on the shipping paper prior to diversion
602	of fuel for sale or use in this state.
603	Section 13. Subsection (2) of section 206.14, Florida
604	Statutes, is amended to read:
605	206.14 Inspection of records; audits; hearings; forms;
606	rules and regulations.--
607	(2)(a)The department or any authorized deputy, employee,
608	or agent is authorized to audit and examine the records, books,
609	papers, and equipment of terminal suppliers, importers,
610	exporters, or wholesalers, retail dealers, terminal operators,
611	or all private and common carriers to verify the truth and
612	accuracy of any statement or report and ascertain whether or not
613	the tax imposed by this law has been paid. No prior written
614	notification is necessary. In addition to making all records
615	available to the department to determine the accuracy of tax
616	payments to the state and suppliers, all persons, including
617	retail dealers, wholesalers, importers, exporters, terminal
618	suppliers, and end users with storage other than the fuel tank
619	of a highway vehicle, shall make available to the department,
620	during normal business hours, records disclosing all receipts,
621	sales, inventory records, fuel payments, and tax payment
622	information. These records shall cover all transactions within
623	the last 3 complete calendar months and shall be made available
624	within 3 business days of the department's request. The
625	department may correct by credit or refund any overpayment of
626	tax, penalty, or interest revealed by an audit or examination
627	and shall make assessment of any deficiency in tax, penalty, or
628	interest determined to be due.
629	(b) Any person who fails to provide the records required
630	by this section shall, in addition to all other penalties, be
631	subject to a penalty of $5,000.
632	Section 14. Section 206.414, Florida Statutes, is amended
633	to read:
634	206.414 Collection of certain taxes; prohibited credits
635	and refunds.--
636	(1) Notwithstanding the provisions of s. 206.41 requiring
637	the collection of taxes due when motor fuel is removed through
638	the terminal loading rack, the taxes imposed by s. 206.41(1)(d),
639	(e), and (f) shall be collected in the following manner:
640	(a) Prior to January 1 of each year, the department shall
641	determine the minimum amount of taxes to be imposed by s.
642	206.41(1)(d), (e), and (f) in any county.
643	(b) The minimum tax imposed by s. 206.41(1)(d), (e), and
644	(f) shall be collected in the same manner as the taxes imposed
645	under s. 206.41(1)(a), (b), and (c), at the point of removal
646	through the terminal loading rack or as provided in paragraph
647	(c). All taxes collected, refunded, or credited shall be
648	distributed based on the current applied period.
649	(c)(1) The taxes imposed by s. 206.41(1)(d), (e), and (f)
650	above the annual minimumshall be collected and remitted by
651	licensed wholesalers and terminal suppliers upon each sale,
652	delivery, or consignment to retail dealers, resellers, and end
653	users.
654	(2) Terminal suppliers and wholesalers shall not collect
655	the taxes imposed by s. 206.41(1)(d), (e), and (f) above the
656	annual minimum established in this sectionon authorized
657	exchanges and sales to terminal suppliers, wholesalers, and
658	importers.
659	(3) Terminal suppliers, wholesalers, and importers shall
660	not pay the taxes imposed by s. 206.41(1)(d), (e), and (f) above
661	the annual minimum established in this sectionto their
662	suppliers. There shall be no credit or refund for any of the
663	taxes imposed by s. 206.41(1)(d), (e), and (f) above the annual
664	minimum established in this sectionpaid by a terminal supplier,
665	wholesaler, or importer to any supplier.
666	Section 15. Subsection (1) of section 206.416, Florida
667	Statutes, is amended to read:
668	206.416 Change in state destination.--
669	(1)(a) A terminal supplier or person who is receiving fuel
670	pursuant to an exchange agreement who sells fuel destined for
671	sale or use in this state may change the destination state
672	designated on the original shipping paper upon notification by
673	the purchaser of the fuel by the 10th day of the month following
674	the date of the transaction. The terminal supplier or position
675	holder shall document a timely change in destination state by
676	issuing a new invoice bearing the corrected destination state.
677	Each terminal supplier and position holder shall report monthly
678	to the department all changes in the state of destination
679	issued, including the name of purchaser, date, number of gallons
680	of fuel, and the basis for the change.
681	(b) A terminal supplier or position holder who issues a
682	change in the state of destination on the invoice to this state
683	from another state shall collect and remit to the department the
684	tax levied pursuant to this part on such fuel. A terminal
685	supplier or position holder who issues a change in the state of
686	destination from this state to another state shall be entitled
687	to a credit or refund of any tax levied pursuant to this part on
688	such fuel which it has collected and remitted to the department.
689	(a)(c)A terminal supplier or position holder may sell
690	motor or diesel fuel, other than by bulk transfer, a portion of
691	which fuel is destined for sale or use in this state and a
692	portion of which fuel is destined for sale or use in another
693	state or states. However, such sale shall be documented by the
694	terminal supplier or position holder by issuing shipping papers
695	designating the state of destination for each portion of the
696	fuel.
697	(b)(d) A licensed terminal supplier,wholesaler, importer,
698	or exporter who intends to sell or use motor fuel in this state
699	which was purchased pursuant to shipping papers bearing an out-
700	of-state destination shall obtain a diversion number issued by
701	the department which shall be manually recorded by the terminal
702	supplier,wholesaler, importer, or exporter on the shipping
703	paper prior to importing the fuel into this state. The terminal
704	supplier,If the licensed wholesaler, importer, or exporter
705	fails to timely notify the terminal supplier or position holder
706	pursuant to paragraph (a) to obtain a corrected invoice, the
707	licensed wholesaler, importer, or exporter isshall be liable
708	for reporting and remittingto report and remitall applicable
709	taxes on said fuel with the return required pursuant to s.
710	206.43.
711	(c) If a wholesaler or exporter diverts to this state,
712	within 3 consecutive months, more than six loads of fuel which
713	were originally destined for allocation outside the state, the
714	wholesaler or exporter must register as an importer within 30
715	days after such diversion. A wholesaler or exporter who violates
716	this paragraph is subject to the penalties prescribed under ss.
717	206.413 and 206.872.
718	Section 16. Section 206.485, Florida Statutes, is amended
719	to read:
720	206.485 Tracking system reporting requirements.--
721	(1)The information required for tracking movements of
722	petroleum products pursuant to ss. 206.08, 206.09, 206.095, and
723	206.48 shall be submitted in the manner prescribed by the
724	executive director of the department by rule. The rule shall
725	include, but not be limited to, the data elements, the format of
726	the data elements, and the method and medium of transmission to
727	the department.
728	(2) Any person liable for reporting under this chapter who
729	fails to meet the requirements of this section within 3 months
730	after notification of such failure by the department shall, in
731	addition to all other penalties prescribed by this chapter, be
732	subject to an additional penalty of $5,000 for each month such
733	failure continues.
734	Section 17. Subsection (1) of section 206.86, Florida
735	Statutes, is amended, and subsections (14) and (15) are added to
736	said section, to read:
737	206.86 Definitions.--As used in this part:
738	(1) "Diesel fuel" means all petroleum distillates commonly
739	known as diesel #2, biodiesel,or any other product blended with
740	diesel or any product placed into the storage supply tank of a
741	diesel-powered motor vehicle.
742	(14) "Biodiesel" means any product made from nonpetroleum-
743	based oils or fats which is suitable for use in diesel-powered
744	engines. Biodiesel is also referred to as "alkyl esters."
745	(15) "Biodiesel manufacturer" means those industrial
746	plants, regardless of capacity, at which organic products are
747	used in the production of biodiesel. Biodiesel manufacturer
748	includes businesses that process or blend organic products that
749	are marketed as biodiesel.
750	Section 18. Section 206.89, Florida Statutes, is amended
751	to read:
752	206.89 Licenses; necessity; prerequisites; issuance;
753	nonassignability.--
754	(1)(a) ANo person may notshall act as a retailer
755	wholesaler of alternative fuel unless he or she holds a valid
756	retailerwholesalerof alternative fuel license issued by the
757	department. A person who has no facilities for placing diesel
758	fuel into the supply system of a motor vehicle and who sells
759	into containers of 5 gallons or less isshall not berequired to
760	be licensed as a retailerwholesalerof alternative fuel.
761	(b) Any person who acts as a retailerwholesalerof
762	alternative fuel and does not hold a valid retailerwholesaler
763	of alternative fuel license shall pay a penalty of 25 percent of
764	the tax assessed on the total purchases.
765	(2) To procure a retailerwholesalerof alternative fuel
766	license, a person shall file with the department an application
767	in such form as the department may prescribe, with a bond. ANo
768	license may notshallbe issued upon any application unless
769	accompanied by such bond, except as provided in s. 206.90(1).
770	(3) When an application for a retailerwholesalerof
771	alternative fuel license is filed by a person whose license has
772	been canceled for cause by the department or when the department
773	is of the opinion that such application is not filed in good
774	faith or is filed by some person as a subterfuge for the real
775	person in interest whose license has theretofore been canceled,
776	the department mayshall have authority, if the evidence
777	warrants, to refuse to issue tothat person a license.
778	(4) At the time of filing an application for a license, a
779	filing fee of $5 shall be paid to the department for deposit
780	into the General Revenue Fund.
781	(5) All requirements of this section having been complied
782	with, the department shall issue to the applicant a license, and
783	such license shall remain in effect until canceled as provided
784	in this part.
785	(6) Such license mayshall not be assignedassignable and
786	isshall be valid only for the retailerwholesalerof
787	alternative fuel in whose name it is issued. It shall be
788	displayed conspicuously by the retailerwholesalerof
789	alternative fuel in the principal place of business for which it
790	was issued.
791	(7) Every person as defined in this part, except those
792	licensed under this chapter, including, but not limited to, a
793	state agency, federal agency, municipality, county, or special
794	district, which operates as a retailerwholesalerof alternative
795	fuel shalland report monthly to the department and, orpay tax
796	on all fuel purchases.
797	Section 19. Paragraph (d) of subsection (2) of section
798	212.055, Florida Statutes, is amended to read:
799	212.055 Discretionary sales surtaxes; legislative intent;
800	authorization and use of proceeds.--It is the legislative intent
801	that any authorization for imposition of a discretionary sales
802	surtax shall be published in the Florida Statutes as a
803	subsection of this section, irrespective of the duration of the
804	levy. Each enactment shall specify the types of counties
805	authorized to levy; the rate or rates which may be imposed; the
806	maximum length of time the surtax may be imposed, if any; the
807	procedure which must be followed to secure voter approval, if
808	required; the purpose for which the proceeds may be expended;
809	and such other requirements as the Legislature may provide.
810	Taxable transactions and administrative procedures shall be as
811	provided in s. 212.054.
812	(2) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.--
813	(d)1. The proceeds of the surtax authorized by this
814	subsection and any interest accrued thereto shall be expended by
815	the school district or within the county and municipalities
816	within the county, or, in the case of a negotiated joint county
817	agreement, within another county, to finance, plan, and
818	construct infrastructure and to acquire land for public
819	recreation or conservation or protection of natural resources
820	and to finance the closure of county-owned or municipally owned
821	solid waste landfills that are already closed or are required to
822	close by order of the Department of Environmental Protection.
823	Any use of such proceeds or interest for purposes of landfill
824	closure prior to July 1, 1993, is ratified. Neither the proceeds
825	nor any interest accrued thereto shall be used for operational
826	expenses of any infrastructure, except that any county with a
827	population of less than 75,000 that is required to close a
828	landfill by order of the Department of Environmental Protection
829	may use the proceeds or any interest accrued thereto for long-
830	term maintenance costs associated with landfill closure and
831	except that a charter county which is a member of a three-county
832	expressway or transit authority created by law, and at least one
833	of the three member counties is eligible to levy the tax
834	pursuant to s. 125.0104(3)(m), may use the proceeds or any
835	interests accrued thereto for operation and maintenance of a
836	transit system. Counties, as defined in s. 125.011(1), and
837	charter counties may, in addition, use the proceeds and any
838	interest accrued thereto to retire or service indebtedness
839	incurred for bonds issued prior to July 1, 1987, for
840	infrastructure purposes, and for bonds subsequently issued to
841	refund such bonds. Any use of such proceeds or interest for
842	purposes of retiring or servicing indebtedness incurred for such
843	refunding bonds prior to July 1, 1999, is ratified.
844	2. For the purposes of this paragraph, "infrastructure"
845	means:
846	a. Any fixed capital expenditure or fixed capital outlay
847	associated with the construction, reconstruction, or improvement
848	of public facilities which have a life expectancy of 5 or more
849	years and any land acquisition, land improvement, design, and
850	engineering costs related thereto.
851	b. A fire department vehicle, an emergency medical service
852	vehicle, a sheriff's office vehicle, a police department
853	vehicle, or any other vehicle, and such equipment necessary to
854	outfit the vehicle for its official use or equipment that has a
855	life expectancy of at least 5 years.
856	3. Notwithstanding any other provision of this subsection,
857	a discretionary sales surtax imposed or extended after the
858	effective date of this act may provide for an amount not to
859	exceed 15 percent of the local option sales surtax proceeds to
860	be allocated for deposit to a trust fund within the county's
861	accounts created for the purpose of funding economic development
862	projects of a general public purpose targeted to improve local
863	economies, including the funding of operational costs and
864	incentives related to such economic development. The ballot
865	statement must indicate the intention to make an allocation
866	under the authority of this subparagraph.
867	Section 20. Effective January 1, 2004, subsections (2) and
868	(3) of section 212.0606, Florida Statutes, are amended to read:
869	212.0606 Rental car surcharge.--
870	(2)(a) Notwithstanding the provisions of section 212.20,
871	and less costs of administration, 80 percent of the proceeds of
872	this surcharge shall be deposited in the State Transportation
873	Trust Fund, 15.75 percent of the proceeds of this surcharge
874	shall be deposited in the Tourism Promotional Trust Fund created
875	in s. 288.122, and 4.25 percent of the proceeds of this
876	surcharge shall be deposited in the Florida International Trade
877	and Promotion Trust Fund. For the purposes of this subsection,
878	"proceeds" of the surcharge means all funds collected and
879	received by the department under this section, including
880	interest and penalties on delinquent surcharges. The department
881	shall provide to the Department of Transportation rental car
882	surcharge revenues for the previous state fiscal year by
883	September 1 of each year.
884	(b) Notwithstanding any other provision of law, in fiscal
885	year 2007-2008 and each year thereafter, the proceeds deposited
886	in the State Transportation Trust Fund shall be allocated on an
887	annual basis in the Department of Transportation's work program
888	to each department district, except the Turnpike District. The
889	amount allocated for each district shall be based upon the
890	amount of proceeds attributed tocollected inthe counties
891	within each respective district.
892	(3)(a)Except as provided in this section, the department
893	shall administer, collect, and enforce the surcharge as provided
894	in this chapter. The provisions of this chapter which apply to
895	interest and penalties on delinquent taxes shall apply to the
896	surcharge. The surcharge shall not be included in the
897	calculation of estimated taxes pursuant to s. 212.11. The
898	dealer's credit provided in s. 212.12 shall not apply to any
899	amount collected under this section.
900	(b) The department shall require dealers to report
901	surcharge collections according to the county to which the
902	surcharge was attributed. For purposes of this paragraph, the
903	surcharge shall be attributed to the county in which the rental
904	agreement was entered into.
905	(c) Dealers who collect the rental car surcharge shall
906	report all surcharge revenues attributed to the county in which
907	the rental agreement was entered into to the department on a
908	timely filed return for each required reporting period.
909	Section 21. Paragraph (a) of subsection (4) and paragraph
910	(o) of subsection (5) of section 212.08, Florida Statutes, are
911	amended, and paragraph (ccc) is added to subsection (7) of said
912	section, to read:
913	212.08 Sales, rental, use, consumption, distribution, and
914	storage tax; specified exemptions.--The sale at retail, the
915	rental, the use, the consumption, the distribution, and the
916	storage to be used or consumed in this state of the following
917	are hereby specifically exempt from the tax imposed by this
918	chapter.
919	(4) EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES, ETC.--
920	(a) Also exempt are:
921	1. Water delivered to the purchaser through pipes or
922	conduits or delivered for irrigation purposes. The sale of
923	drinking water in bottles, cans, or other containers, including
924	water that contains minerals or carbonation in its natural state
925	or water to which minerals have been added at a water treatment
926	facility regulated by the Department of Environmental Protection
927	or the Department of Health, is exempt. This exemption does not
928	apply to the sale of drinking water in bottles, cans, or other
929	containers if carbonation or flavorings, except those added at a
930	water treatment facility, have been added. Water that has been
931	enhanced by the addition of minerals and that does not contain
932	any added carbonation or flavorings is also exempt.
933	2. All fuels used by a public or private utility,
934	including any municipal corporation or rural electric
935	cooperative association, in the generation of electric power or
936	energy for sale. Fuel other than motor fuel and diesel fuel is
937	taxable as provided in this chapter with the exception of fuel
938	expressly exempt herein. Motor fuels and diesel fuels are
939	taxable as provided in chapter 206, with the exception of those
940	motor fuels and diesel fuels used by railroad locomotives or
941	vessels to transport persons or property in interstate or
942	foreign commerce, which are taxable under this chapter only to
943	the extent provided herein. The basis of the tax shall be the
944	ratio of intrastate mileage to interstate or foreign mileage
945	traveled by the carrier's railroad locomotives or vessels that
946	were used in interstate or foreign commerce and that had at
947	least some Florida mileage during the previous fiscal year of
948	the carrier, such ratio to be determined at the close of the
949	fiscal year of the carrier. However, during the fiscal year in
950	which the carrier begins its initial operations in this state,
951	the carrier's mileage apportionment factor may be determined on
952	the basis of an estimated ratio of anticipated miles in this
953	state to anticipated total miles for that year and,
954	subsequently, additional tax shall be paid on the motor fuel and
955	diesel fuels, or a refund may be applied for, on the basis of
956	the actual ratio of the carrier's railroad locomotives' or
957	vessels' miles in this state to its total miles for that year.
958	This ratio shall be applied each month to the total Florida
959	purchases made in this state of motor and diesel fuels to
960	establish that portion of the total used and consumed in
961	intrastate movement and subject to tax under this chapter. The
962	basis for imposition of any discretionary surtax shall be set
963	forth in s. 212.054. Fuels used exclusively in intrastate
964	commerce do not qualify for the proration of tax.
965	3. The transmission or wheeling of electricity.
966	(5) EXEMPTIONS; ACCOUNT OF USE.--
967	(o) Building materials in redevelopment projects.--
968	1. As used in this paragraph, the term:
969	a. "Building materials" means tangible personal property
970	that becomes a component part of a housing project or a mixed-
971	use project.
972	b. "Housing project" means the conversion of an existing
973	manufacturing or industrial building to housing units in an
974	urban high-crime area, enterprise zone, empowerment zone, Front
975	Porch Community, designated brownfield area, or urban infill
976	area and in which the developer agrees to set aside at least 20
977	percent of the housing units in the project for low-income and
978	moderate-income persons, or the construction in a designated
979	brownfield area of affordable housing for persons described in
980	s. 420.0004(9), (10), or (14) or in s. 159.603(7).
981	c. "Mixed-use project" means the conversion of an existing
982	manufacturing or industrial building to mixed-use units that
983	include artists' studios, art and entertainment services, or
984	other compatible uses. A mixed-use project must be located in an
985	urban high-crime area, enterprise zone, empowerment zone, Front
986	Porch Community, designated brownfield area, or urban infill
987	area, and the developer must agree to set aside at least 20
988	percent of the square footage of the project for low-income and
989	moderate-income housing.
990	d. "Substantially completed" has the same meaning as
991	provided in s. 192.042(1).
992	2. Building materials used in the construction of a
993	housing project or mixed-use project are exempt from the tax
994	imposed by this chapter upon an affirmative showing to the
995	satisfaction of the department that the requirements of this
996	paragraph have been met. This exemption inures to the owner
997	through a refund of previously paid taxes. To receive this
998	refund, the owner must file an application under oath with the
999	department which includes:
1000	a. The name and address of the owner.
1001	b. The address and assessment roll parcel number of the
1002	project for which a refund is sought.
1003	c. A copy of the building permit issued for the project.
1004	d. A certification by the local building code inspector
1005	that the project is substantially completed.
1006	e. A sworn statement, under penalty of perjury, from the
1007	general contractor licensed in this state with whom the owner
1008	contracted to construct the project, which statement lists the
1009	building materials used in the construction of the project and
1010	the actual cost thereof, and the amount of sales tax paid on
1011	these materials. If a general contractor was not used, the owner
1012	shall provide this information in a sworn statement, under
1013	penalty of perjury. Copies of invoices evidencing payment of
1014	sales tax must be attached to the sworn statement.
1015	3. An application for a refund under this paragraph must
1016	be submitted to the department within 6 months after the date
1017	the project is deemed to be substantially completed by the local
1018	building code inspector. Within 30 working days after receipt of
1019	the application, the department shall determine if it meets the
1020	requirements of this paragraph. A refund approved pursuant to
1021	this paragraph shall be made within 30 days after formal
1022	approval of the application by the department. The provisions of
1023	s. 212.095 do not apply to any refund application made under
1024	this paragraph.
1025	4. The department shall establish by rule an application
1026	form and criteria for establishing eligibility for exemption
1027	under this paragraph.
1028	5. The exemption shall apply to purchases of materials on
1029	or after July 1, 2000.
1030	(7) MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any
1031	entity by this chapter do not inure to any transaction that is
1032	otherwise taxable under this chapter when payment is made by a
1033	representative or employee of the entity by any means,
1034	including, but not limited to, cash, check, or credit card, even
1035	when that representative or employee is subsequently reimbursed
1036	by the entity. In addition, exemptions provided to any entity by
1037	this subsection do not inure to any transaction that is
1038	otherwise taxable under this chapter unless the entity has
1039	obtained a sales tax exemption certificate from the department
1040	or the entity obtains or provides other documentation as
1041	required by the department. Eligible purchases or leases made
1042	with such a certificate must be in strict compliance with this
1043	subsection and departmental rules, and any person who makes an
1044	exempt purchase with a certificate that is not in strict
1045	compliance with this subsection and the rules is liable for and
1046	shall pay the tax. The department may adopt rules to administer
1047	this subsection.
1048	(ccc) Low speed vehicles.--Also exempt from the tax
1049	imposed by this chapter are low speed vehicles as defined in s.
1050	320.01(42).
1051	Section 22. Paragraph (e) of subsection (4) of section
1052	212.11, Florida Statutes, is amended to read:
1053	212.11 Tax returns and regulations.--
1054	(4)
1055	(e) The penalty provisions of this chapter, except s.
1056	212.12(2)(f)(e), apply to the provisions of this subsection.
1057	Section 23. Subsections (1), (2), (9), (10), and (11) of
1058	section 212.12, Florida Statutes, are amended to read:
1059	212.12 Dealer's credit for collecting tax; penalties for
1060	noncompliance; powers of Department of Revenue in dealing with
1061	delinquents; brackets applicable to taxable transactions;
1062	records required.--
1063	(1) Notwithstanding any other provision of law and for the
1064	purpose of compensating persons granting licenses for and the
1065	lessors of real and personal property taxed hereunder, for the
1066	purpose of compensating dealers in tangible personal property,
1067	for the purpose of compensating dealers providing communication
1068	services and taxable services, for the purpose of compensating
1069	owners of places where admissions are collected, and for the
1070	purpose of compensating remitters of any taxes or fees reported
1071	on the same documents utilized for the sales and use tax, as
1072	compensation for the keeping of prescribed records, filing
1073	timely tax returns, and the proper accounting and remitting of
1074	taxes by them, such seller, person, lessor, dealer, owner, and
1075	remitter (except dealers who make mail order sales) shall be
1076	allowed 2.5 percent of the amount of the tax due and accounted
1077	for and remitted to the department, in the form of a deduction
1078	in submitting his or her report and paying the amount due by him
1079	or her; the department shall allow such deduction of 2.5 percent
1080	of the amount of the tax to the person paying the same for
1081	remitting the tax and making of tax returns in the manner herein
1082	provided, for paying the amount due to be paid by him or her,
1083	and as further compensation to dealers in tangible personal
1084	property for the keeping of prescribed records and for
1085	collection of taxes and remitting the same. However, if the
1086	amount of the tax due and remitted to the department for the
1087	reporting period exceeds $1,200, no allowance shall be allowed
1088	for all amounts in excess of $1,200. The executive director of
1089	the department is authorized to negotiate a collection
1090	allowance, pursuant to rules promulgated by the department, with
1091	a dealer who makes mail order sales. The rules of the department
1092	shall provide guidelines for establishing the collection
1093	allowance based upon the dealer's estimated costs of collecting
1094	the tax, the volume and value of the dealer's mail order sales
1095	to purchasers in this state, and the administrative and legal
1096	costs and likelihood of achieving collection of the tax absent
1097	the cooperation of the dealer. However, in no event shall the
1098	collection allowance negotiated by the executive director exceed
1099	10 percent of the tax remitted for a reporting period.
1100	(a) The collection allowance may not be granted, nor may
1101	any deduction be permitted, if the required tax return or tax is
1102	delinquent at the time of payment.
1103	(a)(b)The Department of Revenue may deny the collection
1104	allowance if a taxpayer files an incomplete return or if the
1105	required tax return or tax is delinquent at the time of payment.
1106	1. An "incomplete return" is, for purposes of this
1107	chapter, a return which is lacking such uniformity,
1108	completeness, and arrangement that the physical handling,
1109	verification, review of the return, or determination of other
1110	taxes and fees reported on the return may not be readily
1111	accomplished.
1112	2. The department shall adopt rules requiring such
1113	information as it may deem necessary to ensure that the tax
1114	levied hereunder is properly collected, reviewed, compiled,
1115	reported, and enforced, including, but not limited to: the
1116	amount of gross sales; the amount of taxable sales; the amount
1117	of tax collected or due; the amount of lawful refunds,
1118	deductions, or credits claimed; the amount claimed as the
1119	dealer's collection allowance; the amount of penalty and
1120	interest; the amount due with the return; and such other
1121	information as the Department of Revenue may specify. The
1122	department shall require that transient rentals and agricultural
1123	equipment transactions be separately shown. Sales made through
1124	vending machines as defined in s. 212.0515 must be separately
1125	shown on the return. Sales made through coin-operated amusement
1126	machines as defined by s. 212.02 and the number of machines
1127	operated must be separately shown on the return or on a form
1128	prescribed by the department. If a separate form is required,
1129	the same penalties for late filing, incomplete filing, or
1130	failure to file as provided for the sales tax return shall apply
1131	to said form.
1132	(b)(c)The collection allowance and other credits or
1133	deductions provided in this chapter shall be applied
1134	proportionally to any taxes or fees reported on the same
1135	documents used for the sales and use tax.
1136	(2)(a) When any person, firm, or corporationrequired
1137	hereunder to make any return or to pay any tax or fee imposed by
1138	this chapter fails to timely file such return or fails to pay
1139	the tax or fee shown due on the returnwithin the time required
1140	hereunder, in addition to all other penalties provided herein
1141	and by the laws of this state in respect to such taxes or fees,
1142	a specific penalty shall be added to the tax or fee in the
1143	amount of 10 percent of the tax or fee shown on the return that
1144	is not timely filed or any unpaid tax or fee not timely paidif
1145	the failure is for not more than 30 days, with an additional 10
1146	percent of any unpaid tax or fee for each additional 30 days, or
1147	fraction thereof, during the time which the failure continues,
1148	not to exceed a total penalty of 50 percent, in the aggregate,
1149	of any unpaid tax or fee. In no event may The penalty may notbe
1150	less than $50$10for failure to timely file a tax return
1151	required by s. 212.11(1)(b) or timely pay the tax or fee shown
1152	due on the return except as provided in s. 213.21(10). If a
1153	person fails to timely file a return required by s. 212.11(1)
1154	and to timely pay the tax or fee shown due on the return, only
1155	one penalty of 10 percent, a minimum of $50, shall be imposed$5
1156	for failure to timely file a tax return authorized by s.
1157	212.11(1)(c) or (d).
1158	(b) When any person required under this section to make a
1159	return or to pay a tax or fee imposed by this chapter fails to
1160	disclose the tax or fee on the return within the time required,
1161	excluding a noncompliant filing event generated by situations
1162	covered in paragraph (a), in addition to all other penalties
1163	provided in this section and by the laws of this state in
1164	respect to such taxes or fees, a specific penalty shall be added
1165	to the additional tax or fee owed in the amount of 10 percent of
1166	any such unpaid tax or fee not paid timely if the failure is for
1167	not more than 30 days, with an additional 10 percent of any such
1168	unpaid tax or fee for each additional 30 days, or fraction
1169	thereof, while the failure continues, not to exceed a total
1170	penalty of 50 percent, in the aggregate, of any unpaid tax or
1171	fee.
1172	(c)(b)Any person who knowingly and with a willful intent
1173	to evade any tax imposed under this chapter fails to file six
1174	consecutive returns as required by law commits a felony of the
1175	third degree, punishable as provided in s. 775.082 or s.
1176	775.083.
1177	(d)(c)Any person who makes a false or fraudulent return
1178	with a willful intent to evade payment of any tax or fee imposed
1179	under this chapter shall, in addition to the other penalties
1180	provided by law, be liable for a specific penalty of 100 percent
1181	of the tax bill or fee and, upon conviction, for fine and
1182	punishment as provided in s. 775.082, s. 775.083, or s. 775.084.
1183	1. If the total amount of unreported taxes or fees is less
1184	than $300, the first offense resulting in conviction is a
1185	misdemeanor of the second degree, the second offense resulting
1186	in conviction is a misdemeanor of the first degree, and the
1187	third and all subsequent offenses resulting in conviction are
1188	felonies of the third degree.
1189	2. If the total amount of unreported taxes or fees is $300
1190	or more but less than $20,000, the offense is a felony of the
1191	third degree.
1192	3. If the total amount of unreported taxes or fees is
1193	$20,000 or more but less than $100,000, the offense is a felony
1194	of the second degree.
1195	4. If the total amount of unreported taxes or fees is
1196	$100,000 or more, the offense is a felony of the first degree.
1197	(e)(d)When any person, firm, or corporation fails to
1198	timely remit the proper estimated payment required under s.
1199	212.11, a specific penalty shall be added in an amount equal to
1200	10 percent of any unpaid estimated tax. Beginning with January
1201	1, 1985, returns, the department, upon a showing of reasonable
1202	cause, is authorized to waive or compromise penalties imposed by
1203	this paragraph. However, other penalties and interest shall be
1204	due and payable if the return on which the estimated payment was
1205	due was not timely or properly filed.
1206	(f)(e)Dealers filing a consolidated return pursuant to s.
1207	212.11(1)(e) shall be subject to the penalty established in
1208	paragraph (e)(d)unless the dealer has paid the required
1209	estimated tax for his or her consolidated return as a whole
1210	without regard to each location. If the dealer fails to pay the
1211	required estimated tax for his or her consolidated return as a
1212	whole, each filing location shall stand on its own with respect
1213	to calculating penalties pursuant to paragraph (e)(d).
1214	(9) Taxes imposed by this chapter upon the privilege of
1215	the use, consumption, storage for consumption, or sale of
1216	tangible personal property, admissions, license fees, rentals,
1217	communication services, and upon the sale or use of services as
1218	herein taxed shall be collected upon the basis of an addition of
1219	the tax imposed by this chapter to the total price of such
1220	admissions, license fees, rentals, communication or other
1221	services, or sale price of such article or articles that are
1222	purchased, sold, or leased at any one time by or to a customer
1223	or buyer; the dealer, or person charged herein, is required to
1224	pay a privilege tax in the amount of the tax imposed by this
1225	chapter on the total of his or her gross sales of tangible
1226	personal property, admissions, license fees, rentals, and
1227	communication services or to collect a tax upon the sale or use
1228	of services, and such person or dealer shall add the tax imposed
1229	by this chapter to the price, license fee, rental, or
1230	admissions, and communication or other services and collect the
1231	total sum from the purchaser, admittee, licensee, lessee, or
1232	consumer. The department shall make available in an electronic
1233	format or otherwise the tax amounts andNotwithstanding the rate
1234	of taxes imposed upon the privilege of sales, admissions,
1235	license fees, rentals, and communication services, or upon the
1236	sale or use of services, the following brackets shall be
1237	applicable to all transactions taxable at the rate of 6 percent:
1238	(a) On single sales of less than 10 cents, no tax shall be
1239	added.
1240	(b) On single sales in amounts from 10 cents to 16 cents,
1241	both inclusive, 1 cent shall be added for taxes.
1242	(c) On sales in amounts from 17 cents to 33 cents, both
1243	inclusive, 2 cents shall be added for taxes.
1244	(d) On sales in amounts from 34 cents to 50 cents, both
1245	inclusive, 3 cents shall be added for taxes.
1246	(e) On sales in amounts from 51 cents to 66 cents, both
1247	inclusive, 4 cents shall be added for taxes.
1248	(f) On sales in amounts from 67 cents to 83 cents, both
1249	inclusive, 5 cents shall be added for taxes.
1250	(g) On sales in amounts from 84 cents to $1, both
1251	inclusive, 6 cents shall be added for taxes.
1252	(h) On sales in amounts of more than $1, 6 percent shall
1253	be charged upon each dollar of price, plus the appropriate
1254	bracket charge upon any fractional part of a dollar.
1255	(10) In counties which have adopted a discretionary sales
1256	surtax at the rate of 1 percent, the department shall make
1257	available in an electronic format or otherwise the tax amounts
1258	and the following brackets shall beapplicable to all taxable
1259	transactions thatwhichwould otherwise have been transactions
1260	taxable at the rate of 6 percent:
1261	(a) On single sales of less than 10 cents, no tax shall be
1262	added.
1263	(b) On single sales in amounts from 10 cents to 14 cents,
1264	both inclusive, 1 cent shall be added for taxes.
1265	(c) On sales in amounts from 15 cents to 28 cents, both
1266	inclusive, 2 cents shall be added for taxes.
1267	(d) On sales in amounts from 29 cents to 42 cents, both
1268	inclusive, 3 cents shall be added for taxes.
1269	(e) On sales in amounts from 43 cents to 57 cents, both
1270	inclusive, 4 cents shall be added for taxes.
1271	(f) On sales in amounts from 58 cents to 71 cents, both
1272	inclusive, 5 cents shall be added for taxes.
1273	(g) On sales in amounts from 72 cents to 85 cents, both
1274	inclusive, 6 cents shall be added for taxes.
1275	(h) On sales in amounts from 86 cents to $1, both
1276	inclusive, 7 cents shall be added for taxes.
1277	(i) On sales in amounts from $1 up to, and including, the
1278	first $5,000 in price, 7 percent shall be charged upon each
1279	dollar of price, plus the appropriate bracket charge upon any
1280	fractional part of a dollar.
1281	(j) On sales in amounts of more than $5,000 in price, 7
1282	percent shall be added upon the first $5,000 in price, and 6
1283	percent shall be added upon each dollar of price in excess of
1284	the first $5,000 in price, plus the bracket charges upon any
1285	fractional part of a dollar as provided for in subsection (9).
1286	(11) The department shall make available in an electronic
1287	format or otherwiseis authorized to provide by rulethe tax
1288	amounts and brackets applicable to all taxable transactions that
1289	occur in counties that have a surtax at a rate other than 1
1290	percent which transactions would otherwise have been
1291	transactions taxable at the rate of 6 percent. Likewise, the
1292	department shall make available in an electronic format or
1293	otherwiseis authorized to promulgate by rulethe tax amounts
1294	and brackets applicable to transactions taxable at 2.5 or 3
1295	percent pursuant to s. 212.08(3), transactions taxable at 7
1296	percent pursuant to s. 212.05(1)(e), and on transactions which
1297	would otherwise have been so taxable in counties which have
1298	adopted a discretionary sales surtax.
1299	Section 24. Paragraph (n) of subsection (7) of section
1300	213.053, Florida Statutes, is amended, and paragraph (x) is
1301	added to said subsection, to read:
1302	213.053 Confidentiality and information sharing.--
1303	(7) Notwithstanding any other provision of this section,
1304	the department may provide:
1305	(n) Information contained in returns, reports, accounts,
1306	or declarations to the Board of Accountancy in connection with a
1307	disciplinary proceeding conducted pursuant to chapter 473 when
1308	related to a certified public accountant participating in the
1309	certified audits project, or to the court in connection with a
1310	civil proceeding brought by the department relating to a claim
1311	for recovery of taxes due to negligence on the part of a
1312	certified public accountant participating in the certified
1313	audits project. In any judicial proceeding brought by the
1314	department, upon motion for protective order, the court shall
1315	limit disclosure of tax information when necessary to effectuate
1316	the purposes of this section. This paragraph is repealed on July
1317	1, 2006.
1318	(x) Rental car surcharge revenues authorized by s.
1319	212.0606, reported according to the county to which the
1320	surcharge was attributed to the Department of Transportation.
1321
1322	Disclosure of information under this subsection shall be
1323	pursuant to a written agreement between the executive director
1324	and the agency. Such agencies, governmental or nongovernmental,
1325	shall be bound by the same requirements of confidentiality as
1326	the Department of Revenue. Breach of confidentiality is a
1327	misdemeanor of the first degree, punishable as provided by s.
1328	775.082 or s. 775.083.
1329	Section 25. Subsection (4) of section 213.0535, Florida
1330	Statutes, is amended to read:
1331	213.0535 Registration Information Sharing and Exchange
1332	Program.--
1333	(4) There are two levels of participation:
1334	(a) Each unit of state or local government responsible for
1335	administering one or more of the provisions specified in
1336	subparagraphs 1.-7. is a level-one participant. Level-one
1337	participants shall exchange, monthly or quarterly, as determined
1338	jointly by each participant and the department, the data
1339	enumerated in subsection (2) for each new registrant, new filer,
1340	or initial reporter, permittee, or licensee, with respect to the
1341	following taxes, licenses, or permits:
1342	1. The sales and use tax imposed under chapter 212.
1343	2. The tourist development tax imposed under s. 125.0104.
1344	3. The tourist impact tax imposed under s. 125.0108.
1345	4. Local occupational license taxes imposed under chapter
1346	205.
1347	5. Convention development taxes imposed under s. 212.0305.
1348	6. Public lodging and food service establishment licenses
1349	issued pursuant to chapter 509.
1350	7. Beverage law licenses issued pursuant to chapter 561.
1351	8. A municipal resort tax as authorized under chapter 67-
1352	930, Laws of Florida.
1353	(b) Level-two participants include the Department of
1354	Revenue and local officials responsible for collecting the
1355	tourist development tax pursuant to s. 125.0104, the tourist
1356	impact tax pursuant to s. 125.0108, ora convention development
1357	tax pursuant to s. 212.0305, or a municipal resort tax as
1358	authorized under chapter 67-930, Laws of Florida. Level-two
1359	participants shall, in addition to the data shared by level-one
1360	participants, exchange data relating to tax payment history,
1361	audit assessments, and registration cancellations of dealers
1362	engaging in transient rentals, and such data may relate only to
1363	sales and use taxes, tourist development taxes, andconvention
1364	development taxes, and municipal resort taxes. The department
1365	shall prescribe, by rule, the data elements to be shared and the
1366	frequency of sharing; however, audit assessments must be shared
1367	at least quarterly.
1368	(c) A level-two participant may disclose information as
1369	provided in paragraph (b) in response to a request for such
1370	information from any other level-two participant. Information
1371	relative to specific taxpayers shall be requested or disclosed
1372	under this paragraph only to the extent necessary in the
1373	administration of a tax or licensing provision as enumerated in
1374	paragraph (a). When a disclosure made under this paragraph
1375	involves confidential information provided to the participant by
1376	the Department of Revenue, the participant who provides the
1377	information shall maintain records of the disclosures, which
1378	records shall be subject to review by the Department of Revenue
1379	for a period of 5 years after the date of the disclosure.
1380	Section 26. Effective upon this act becoming a law,
1381	paragraph (a) of subsection (7) of section 213.21, Florida
1382	Statutes, is amended to read:
1383	213.21 Informal conferences; compromises.--
1384	(7)(a) When a taxpayer voluntarily self-discloses a
1385	liability for tax to the department, the department may settle
1386	and compromise the tax and interest due under the voluntary
1387	self-disclosure to those amounts due for the 35years
1388	immediately preceding the date that the taxpayer initially
1389	contacted the department concerning the voluntary self-
1390	disclosure. For purposes of this paragraph, the term "years"
1391	means tax years or calendar years, whichever is applicable to
1392	the tax that is voluntarily self-disclosed. A voluntary self-
1393	disclosure does not occur if the department has contacted or
1394	informed the taxpayer that the department is inquiring into the
1395	taxpayer's liability for tax or whether the taxpayer is subject
1396	to tax in this state.
1397	Section 27. The amendment to s. 213.21(7)(a), Florida
1398	Statutes, made by this act applies to any voluntary self-
1399	disclosure made to the Department of Revenue on or after that
1400	date.
1401	Section 28. Subsection (8) of section 213.21, Florida
1402	Statutes, is amended to read:
1403	213.21 Informal conferences; compromises.--
1404	(8) In order to determine whether certified audits are an
1405	effective tool in the overall state tax collection effort, the
1406	executive director of the department or the executive director's
1407	designee shall settle or compromise penalty liabilities of
1408	taxpayers who participate in the certified audits project. As
1409	further incentive for participating in the program, the
1410	department shall abate the first $25,000 of any interest
1411	liability and 25 percent of any interest due in excess of the
1412	first $25,000. A settlement or compromise of penalties or
1413	interest pursuant to this subsection shall not be subject to the
1414	provisions of paragraph (3)(a), except for the requirement
1415	relating to confidentiality of records. The department may
1416	consider an additional compromise of tax or interest pursuant to
1417	the provisions of paragraph (3)(a). This subsection does not
1418	apply to any liability related to taxes collected but not
1419	remitted to the department. This subsection is repealed on July
1420	1, 2006.
1421	Section 29. Paragraph (c) of subsection (2) of section
1422	213.285, Florida Statutes, is amended to read:
1423	213.285 Certified audits.--
1424	(2)
1425	(c) The department shall submit a report to the President
1426	of the Senate, the Speaker of the House of Representatives, the
1427	chair of the Senate Committee on Finance and Taxation, and the
1428	chair of the House Committee on Finance and Tax, by January 1,
1429	2006, regarding the effectiveness of certified audits as a tool
1430	in the overall state tax collection effort. The report shall
1431	include statistics, from the time of the program's inception, on
1432	taxes assessed and collected pursuant to the certified audits,
1433	interest, and penalties compromised, the cost to the state to
1434	support the certified audits project, and the impact, if any, on
1435	taxpayer compliance. The Legislature will review the report at
1436	that time to determine if any modifications should be madeThe
1437	certified audits project is repealed on July 1, 2006, or upon
1438	completion of the project as determined by the department,
1439	whichever occurs first.
1440	Section 30. Paragraphs (c) and (d) of subsection (1) of
1441	section 336.021, Florida Statutes, are amended to read:
1442	336.021 County transportation system; levy of ninth-cent
1443	fuel tax on motor fuel and diesel fuel.--
1444	(1)
1445	(c) Local option taxes collected on sales or use of diesel
1446	fuel in this state shall be distributed in the following manner:
1447	1. The fiscal year of July 1, 1995, through June 30, 1996,
1448	shall be the base year for all distributions.
1449	2. Each year the tax collected, less the service and
1450	administrative charges enumerated in s. 215.20 and the
1451	allowances allowed under s. 206.91, on the number of gallons
1452	reported, up to the total number of gallons reported in the base
1453	year, shall be distributed to each county using the distribution
1454	percentage calculated for the base year.
1455	3. After the distribution of taxes pursuant to
1456	subparagraph 2., additional taxes available for distribution
1457	shall first be distributed pursuant to this subparagraph. A
1458	distribution shall be made to each county in which a qualified
1459	new retail station is located. A qualified new retail station is
1460	a retail station that began operation after June 30, 1996, and
1461	that has sales of diesel fuel exceeding 50 percent of the sales
1462	of diesel fuel reported in the county in which it is located
1463	during the 1995-1996 state fiscal year. The determination of
1464	whether a new retail station is qualified shall be based on the
1465	total gallons of diesel fuel sold at the station during each
1466	full month of operation during the 12-month period ending
1467	JanuaryMarch31, divided by the number of full months of
1468	operation during those 12 months, and the result multiplied by
1469	12. The amount distributed pursuant to this subparagraph to each
1470	county in which a qualified new retail station is located shall
1471	equal the local option taxes due on the gallons of diesel fuel
1472	sold by the new retail station during the year ending January
1473	March31, less the service charges enumerated in s. 215.20 and
1474	the dealer allowance provided for by s. 206.91. Gallons of
1475	diesel fuel sold at the qualified new retail station shall be
1476	certified to the department by the county requesting the
1477	additional distribution by June 15, 1997, and by MarchMay1 in
1478	each subsequent year. The certification shall include the
1479	beginning inventory, fuel purchases and sales, and the ending
1480	inventory for the new retail station for each month of operation
1481	during the year, the original purchase invoices for the period,
1482	and any other information the department deems reasonable and
1483	necessary to establish the certified gallons. The department may
1484	review and audit the retail dealer's records provided to a
1485	county to establish the gallons sold by the new retail station.
1486	Notwithstanding the provisions of this subparagraph, when more
1487	than one county qualifies for a distribution pursuant to this
1488	subparagraph and the requested distributions exceed the total
1489	taxes available for distribution, each county shall receive a
1490	prorated share of the moneys available for distribution.
1491	4. After the distribution of taxes pursuant to
1492	subparagraph 3., all additional taxes available for distribution
1493	shall be distributed based on vehicular diesel fuel storage
1494	capacities in each county pursuant to this subparagraph. The
1495	total vehicular diesel fuel storage capacity shall be
1496	established for each fiscal year based on the registration of
1497	facilities with the Department of Environmental Protection as
1498	required by s. 376.303 for the following facility types: retail
1499	stations, fuel user/nonretail, state government, local
1500	government, and county government. Each county shall receive a
1501	share of the total taxes available for distribution pursuant to
1502	this subparagraph equal to a fraction, the numerator of which is
1503	the storage capacity located within the county for vehicular
1504	diesel fuel in the facility types listed in this subparagraph
1505	and the denominator of which is the total statewide storage
1506	capacity for vehicular diesel fuel in those facility types. The
1507	vehicular diesel fuel storage capacity for each county and
1508	facility type shall be that established by the Department of
1509	Environmental Protection by June 1, 1997, for the 1996-1997
1510	fiscal year, and by January 31 for each succeeding fiscal year.
1511	The storage capacities so established shall be final. The
1512	storage capacity for any new retail station for which a county
1513	receives a distribution pursuant to subparagraph 3. shall not be
1514	included in the calculations pursuant to this subparagraph.
1515	(d) The tax received by the department on motor fuel
1516	pursuant to this subsectionshall be distributed monthly by the
1517	department to the county reported by the terminal suppliers,
1518	wholesalers, and importers as the destination of the gallons
1519	distributedfor retail sale or use. The tax on diesel fuel shall
1520	be distributed monthly by the department to each county as
1521	provided in paragraph (c).
1522	Section 31. Effective January 1, 2004, subsection (20) of
1523	section 443.036, Florida Statutes, is amended to read:
1524	443.036 Definitions.--As used in this chapter, unless the
1525	context clearly requires otherwise:
1526	(20) EMPLOYING UNIT.--"Employing unit" means any
1527	individual or type of organization, including any partnership,
1528	limited liability company,association, trust, estate, joint-
1529	stock company, insurance company, or corporation, whether
1530	domestic or foreign; the receiver, trustee in bankruptcy,
1531	trustee, or successor of any of the foregoing; or the legal
1532	representative of a deceased person, which has or had in its
1533	employ one or more individuals performing services for it within
1534	this state.
1535	(a) Each individual employed to perform or to assist in
1536	performing the work of any agent or employee of an employing
1537	unit shall be deemed to be employed by such employing unit for
1538	all the purposes of this chapter, whether such individual was
1539	hired or paid directly by such employing unit or by such agent
1540	or employee, provided the employing unit had actual or
1541	constructive knowledge of the work.
1542	(b) All individuals performing services within this state
1543	for any employing unit which maintains two or more separate
1544	establishments within this state shall be deemed to be
1545	performing services for a single employing unit for all the
1546	purposes of this chapter.
1547	(c) Any person who is an officer of a corporation or a
1548	member of a limited liability company classified as a
1549	corporation for federal income tax purposesand who performs
1550	services for such corporation or limited liability company
1551	within this state, whether or not such services are continuous,
1552	shall be deemed an employee of the corporation or limited
1553	liability companyduring all of each week of his or her tenure
1554	of office, regardless of whether or not he or she is compensated
1555	for such services. Services shall be presumed to have been
1556	rendered the corporation in cases where such officer is
1557	compensated by means other than dividends upon shares of stock
1558	of such corporation owned by him or her.
1559	(d) A limited liability company shall be treated as having
1560	the same status as that under which it is classified for federal
1561	income tax purposes.
1562	Section 32. Effective January 1, 2004, paragraph (g) of
1563	subsection (3) of section 443.131, Florida Statutes, is amended
1564	to read:
1565	443.131 Contributions.--
1566	(3) CONTRIBUTION RATES BASED ON BENEFIT EXPERIENCE.--
1567	(g)1. For the purposes of this subsection, two or more
1568	employers who are parties to a transfer of business or the
1569	subject of a merger, consolidation, or other form of
1570	reorganization, effecting a change in legal identity or form,
1571	shall be deemed to be a single employer and shall be considered
1572	as one employer with a continuous employment record if the
1573	departmentdivisionfinds that the successor employer continues
1574	to carry on the employing enterprises of the predecessor
1575	employer or employers and that the successor employer has paid
1576	all contributions required of and due from the predecessor
1577	employer or employers and has assumed liability for all
1578	contributions that may become due from the predecessor employer
1579	or employers. In addition, an employer may not be considered a
1580	successor under this subparagraph if the employer purchases a
1581	company with a lower rate into which employees with job
1582	functions unrelated to the business endeavors of the predecessor
1583	are transferred for the purpose of acquiring the low rate and
1584	avoiding taxes.As used in this paragraph, the term
1585	"contributions" means all indebtedness to the department
1586	division, including, but not limited to, interest, penalty,
1587	collection fee, and service fee. A successor has 30 days from
1588	the date of the official notification of liability by succession
1589	to accept the transfer of the predecessor's or predecessors'
1590	employment record or records. If the predecessor or predecessors
1591	have unpaid contributions or outstanding quarterly reports, the
1592	successor has 30 days from the date of the notice listing the
1593	total amount due to pay the total amount with certified funds.
1594	After the total indebtedness has been paid, the employment
1595	record or records of the predecessor or predecessors will be
1596	transferred to the successor. Employment records may be
1597	transferred by the division.The tax rate of total successor and
1598	predecessor upon the transfer of employment records shall be
1599	determined by the departmentdivisionas prescribed by rule in
1600	order to calculate any tax rate change resulting from the
1601	transfer of employment records.
1602	2. Whether or not there is a transfer of employment record
1603	as contemplated in this paragraph, the predecessor shall in the
1604	event he or she again employs persons be treated as an employer
1605	without previous employment record or, if his or her coverage
1606	has been terminated as provided in s. 443.121, as a new
1607	employing unit.
1608	3. The division may provide by rule for partial transfer
1609	of experience rating when an employer has transferred at any
1610	time an identifiable and segregable portion of his or her
1611	payrolls and business to a successor employing unit. As a
1612	condition of such partial transfer of experience, the rules
1613	shall require an application by the successor, agreement by the
1614	predecessor, and such evidence as the division may prescribe of
1615	the experience and payrolls attributable to the transferred
1616	portion up to the date of transfer. The rules shall provide that
1617	the successor employing unit, if not already an employer, shall
1618	become an employer as of the date of the transfer and that the
1619	experience of the transferred portion of the predecessor's
1620	account shall be removed from the experience-rating record of
1621	the predecessor, and for each calendar year following the date
1622	of the transfer of the employment record on the books of the
1623	division, the division shall compute the rate of contribution
1624	payable by the successor on the basis of his or her experience,
1625	if any, combined with the experience of the portion of the
1626	record transferred. The rules may also provide what rates shall
1627	be payable by the predecessor and successor employers for the
1628	period between the date of the transfer of the employment record
1629	of the transferred unit on the books of the division and the
1630	first day of the next calendar year.
1631	4. This paragraph shall not apply to the employee leasing
1632	company and client contractual agreement as defined in s.
1633	443.036. The client shall, in the event of termination of the
1634	contractual agreement or failure by the employee leasing company
1635	to submit reports or pay contributions as required by the
1636	division, be treated as a new employer without previous
1637	employment record unless otherwise eligible for a rate
1638	computation.
1639	Section 33. Section 443.1316, Florida Statutes, is amended
1640	to read:
1641	443.1316 Contract with Department of Revenue for
1642	unemployment tax collection services.—
1643	(1)By January 1, 2001,The Agency for Workforce
1644	Innovation shall enter into a contract with the Department of
1645	Revenue which shall provide for the Department of Revenue to
1646	provide unemployment tax collection services. The Department of
1647	Revenue, in consultation with the Department of Labor and
1648	Employment Security, shall determine the number of positions
1649	needed to provide unemployment tax collection services within
1650	the Department of Revenue. The number of unemployment tax
1651	collection service positions the Department of Revenue
1652	determines are needed shall not exceed the number of positions
1653	that, prior to the contract, were authorized to the Department
1654	of Labor and Employment Security for this purpose. Upon entering
1655	into the contract with the Agency for Workforce Innovation to
1656	provide unemployment tax collection services, the number of
1657	required positions, as determined by the Department of Revenue,
1658	shall be authorized within the Department of Revenue. Beginning
1659	January 1, 2002, the Office of Program Policy Analysis and
1660	Government Accountability shall conduct a feasibility study
1661	regarding privatization of unemployment tax collection services.
1662	A report on the conclusions of this study shall be submitted to
1663	the Governor, the President of the Senate, and the Speaker of
1664	the House of Representatives.
1665	(2)(a)The Department of Revenue is considered to be
1666	administering a revenue law of this state when the department
1667	provides unemployment compensation tax collection services
1668	pursuant to a contract of the department with the Agency for
1669	Workforce Innovation.
1670	(b)Sections 213.018, 213.025, 213.051, 213.053, 213.055,
1671	213.071, 213.10, 213.2201, 213.23, 213.24(2), 213.27, 213.28,
1672	213.285, 213.37, 213.50, 213.67, 213.69, 213.73, 213.733,
1673	213.74, and 213.757 apply to the collection of unemployment
1674	contributions by the Department of Revenue unless prohibited by
1675	federal law.
1676	(c) Notwithstanding s. 216.346, the Department of Revenue
1677	may charge no more than 10 percent of the total cost of the
1678	interagency agreement for the overhead or indirect costs, or for
1679	any other costs not required for the payment of the direct
1680	costs, of providing unemployment tax collection services.
1681	Section 34. Subsections (1) and (2) of section 443.163,
1682	Florida Statutes, are amended to read:
1683	443.163 Electronic reporting and remitting of taxes.--
1684	(1) An employer may choose to file any report and remit
1685	any taxes required by this chapter by electronic means. The
1686	Agency for Workforce Innovation or its designee shall prescribe
1687	by rule the format and instructions necessary for such filing of
1688	reports and remitting of taxes to ensure a full collection of
1689	contributions due. The acceptable method of transfer, the
1690	method, form, and content of the electronic means, and the
1691	method, if any, by which the employer will be provided with an
1692	acknowledgment shall be prescribed by the agency or its
1693	designee. However, any employer who employed 10 or more
1694	employees in any quarter during the preceding state fiscal year,
1695	or any person that prepared and reported for 5 or more employers
1696	in the preceding state fiscal year,must submit the Employers
1697	Quarterly Reports (UCT-6) for the current calendar year and
1698	remit the taxes due by electronic means approved by the agency
1699	or its designee. A person who prepared and reported for 100 or
1700	more employers in any quarter during the preceding state fiscal
1701	year must file the Employers Quarterly Reports (UCT-6) for each
1702	calendar quarter in the current calendar year, beginning with
1703	reports due for the second calendar quarter of 2003, by
1704	electronic means approved by the Agency for Workforce Innovation
1705	or its designee.
1706	(2) Any employer or person who fails to file an Employers
1707	Quarterly Report (UCT-6) by electronic means required by law is
1708	liable for a penalty of 10 percent of the tax due, but not less
1709	than $10 for sucheachreport, which is in addition to any other
1710	penalty provided by this chapter which may be applicable, unless
1711	the employer or person has first obtained a waiver for such
1712	requirement from the agency or its designee. AnAny employer or
1713	personwho fails to remit tax by electronic means as required by
1714	law is liable for a penalty of $10 for each remittance
1715	submitted, which is in addition to any other penalty provided by
1716	this chapter which may be applicable.
1717	Section 35. The amendments made by this act to s.
1718	443.163(1) and (2), Florida Statutes, shall apply retroactively
1719	for Employers Quarterly Reports (UCT-6) due on or after April 1,
1720	2003.
1721	Section 36. Effective upon this act becoming a law and
1722	applying to tax years beginning January 1, 2003, subsection (5)
1723	of section 624.509, Florida Statutes, is amended to read:
1724	624.509 Premium tax; rate and computation.--
1725	(5) There shall be allowed a credit against the net tax
1726	imposed by this section equal to 15 percent of the amount paid
1727	by the insurer in salaries to employees located or based within
1728	this state and who are covered by the provisions of chapter 443.
1729	For purposes of this subsection:
1730	(a) The term "salaries" does not include amounts paid as
1731	commissions.
1732	(b) The term "employees" does not include independent
1733	contractors or any person whose duties require that the person
1734	hold a valid license under the Florida Insurance Code, except
1735	persons defined in s. 626.015(1), (16), and (18).
1736	(c) The term "net tax" means the tax imposed by this
1737	section after applying the calculations and credits set forth in
1738	subsection (4).
1739	(d)1. An affiliated group of corporations that created a
1740	service company within its affiliated group on July 30, 2002,
1741	shall allocate the salary of each service company employee
1742	covered by contracts with affiliated group members to the
1743	companies for which the employees perform services. The salary
1744	allocation is based on the amount of time during the tax year
1745	that the individual employee spends performing services or
1746	otherwise working for each company over the total amount of time
1747	the employee spends performing services or otherwise working for
1748	all companies. The total amount of salary allocated to an
1749	insurance company within the affiliated group shall be included
1750	as the insurer’s employee salaries for purposes of this section.
1751	a. The term “affiliated group of corporations” means two
1752	or more corporations which are entirely owned by a single
1753	corporation and which constitute an affiliated group of
1754	corporations as defined in section 1504(a) of the Internal
1755	Revenue Code.
1756	b. The term “service company” means a separate corporation
1757	within the affiliated group of corporations whose employees
1758	provide services to affiliated group members and which are
1759	treated as service company employees for unemployment
1760	compensation and common law purposes. The holding company of an
1761	affiliated group may not qualify as a service company. An
1762	insurance company may not qualify as a service company.
1763	2. If an insurance company fails to substantiate, whether
1764	by means of adequate records or otherwise, its eligibility to
1765	claim the service company exception under this section or its
1766	salary allocation under this section, no credit shall be
1767	allowed.
1768	Section 37. Section 832.062, Florida Statutes, is amended
1769	to read:
1770	832.062 Prosecution for worthless checks, drafts, ordebit
1771	card orders, or electronic funds transfers madegivento pay any
1772	tax or associated amount administered by the Department of
1773	Revenue.--
1774	(1) It is unlawful for any person, firm, or corporation to
1775	draw, make, utter, issue, or deliver to the Department of
1776	Revenue any check, draft, or other written order on any bank or
1777	depository, or to use a debit card, or to make, send, instruct,
1778	order, or initiate any electronic funds transfer, or to cause or
1779	direct the making, sending, instructing, ordering, or initiating
1780	of any electronic funds transfer,for the payment of any taxes,
1781	penalties, interest, fees, or associated amounts administered by
1782	the Department of Revenue, knowing at the time of the drawing,
1783	making, uttering, issuing, or delivering ofsuch check, draft,
1784	or other written order, or at the time of using such debit card,
1785	orat the time of making, sending, instructing, ordering, or
1786	initiating any electronic funds transfer, or at the time of
1787	causing or directing the making, sending, instructing, ordering,
1788	initiating, or executing of any electronic funds transfer,that
1789	the maker,or drawer, sender, or receiverthereof has not
1790	sufficient funds on deposit in or credit with such bank or
1791	depository with which to pay the same on presentation.; except
1792	that This section does not apply to any check or electronic
1793	funds transferwhen the Department of Revenue knows or has been
1794	expressly notified prior to the drawing or uttering of the check
1795	or the sending or initiating of the electronic funds transfer,
1796	or has reason to believe, that the drawer, sender, or receiver
1797	did not have on deposit or to the drawer's, sender’s, or
1798	receiver’s credit with the drawee or receiving bank or
1799	depository sufficient funds to ensure payment as aforesaid and,
1800	nor does this section does notapply to any postdated check.
1801	(2) A violation of the provisions ofthis section
1802	constitutes a misdemeanor of the second degree, punishable as
1803	provided in s. 775.082 or s. 775.083, unless the check, draft,
1804	debit card order, orother written order drawn, made, uttered,
1805	issued, or delivered, or any electronic funds transfer made,
1806	sent, instructed, ordered, or initiated, or any electronic funds
1807	transfer caused or directed to be made, sent, instructed,
1808	ordered, or initiated,is in the amount of $150 or more. In that
1809	event, the violation constitutes a felony of the third degree,
1810	punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
1811	(3) For purposes of prosecution, a violation under this
1812	section occurs in the county in which the check is issued or the
1813	electronic funds transfer is sentand in the county in which it
1814	is received. A check will be deemed issued at the residence
1815	address of an individual taxpayer and at the business address of
1816	a business taxpayer.
1817	Section 38. Except as otherwise provided herein, this act
1818	shall take effect July 1, 2003.