HB 1935 2003
1	A bill to be entitled
2	An act relating to tax administration; directing the
3	Department of Revenue to develop and implement an amnesty
4	program for taxpayers subject to the state and local taxes
5	imposed by chapters 125, 198, 199, 201, 202, 203, 206,
6	211, 212, 220, 221, 336, 370, 376, 403, 538, 624, 627, and
7	681, F.S.; providing time periods; providing program
8	guidelines; providing for eligible participants; providing
9	for waiver of penalties and interest under specified
10	circumstances; providing for emergency rules; amending ss.
11	213.235 and 220.807, F.S.; providing that the interest
12	rate on certain tax deficiencies shall be an adjusted
13	prime rate plus 4 percentage points; providing legislative
14	intent; providing an appropriation; providing an effective
15	date.
16
17	WHEREAS, state government should undertake all reasonable
18	efforts to ensure uniform compliance with the existing state
19	revenue laws across the state, and
20	WHEREAS, the Department of Revenue has implemented an
21	integrated tax-administration information system (SUNTAX) that
22	will provide the department with better information on taxpayer
23	compliance, and
24	WHEREAS, the SUNTAX system provides the department with
25	additional capabilities to discover unregistered and
26	noncompliant taxpayers, and
27	WHEREAS, the department is currently using the SUNTAX
28	system to identify areas of noncompliance and to help taxpayers
29	come into full compliance with the law, and
30	WHEREAS, the department expects SUNTAX to be of substantial
31	further benefit in helping to ensure that all taxpayers bear
32	their fair share of the state’s tax burden, and
33	WHEREAS, taxpayers that are not in full compliance with tax
34	laws may be unaware of some aspects of their obligations under
35	Florida law, and
36	WHEREAS, it is the intent of this state to assist taxpayers
37	in fully understanding their tax obligations and in complying
38	with those obligations in ways that place the lowest possible
39	burden on taxpayers, and
40	WHEREAS, the department is aware of circumstances in which
41	taxpayers, often without their knowledge, are not in compliance
42	with the tax laws of the state, and
43	WHEREAS, the Legislature finds and declares that taxpayers
44	should be given an opportunity to come into voluntary compliance
45	before the department undertakes further steps to identify
46	taxpayers that are in noncompliance, and
47	WHEREAS, the Legislature finds and declares that a public
48	purpose is served by the waiver of tax penalties and interest in
49	return for the immediate reporting and payment of previously
50	underreported, unreported, or unpaid tax liabilities, and
51	WHEREAS, the Legislature further finds and declares that
52	among the benefits gained through an amnesty program are
53	increased collection of currently owed taxes and permanently
54	bringing into the tax system taxpayers that have been unaware of
55	or have not been fulfilling their tax obligations, and
56	WHEREAS, to encourage the full payment of taxes owed to the
57	State of Florida, NOW, THEREFORE,
58
59	Be It Enacted by the Legislature of the State of Florida:
60
61	Section 1. (1) No later than July 1, 2003, the Department
62	of Revenue shall develop and implement an amnesty program for
63	taxpayers subject to the state and local taxes imposed by
64	chapters 125, 198, 199, 201, 202, 203, 206, 211, 212, 220, 221,
65	336, 370, 376, 403, 538, 624, 627, and 681, Florida Statutes.
66	(2) The amnesty program shall be a one-time opportunity
67	for eligible taxpayers to satisfy their tax liabilities under
68	the revenue laws of this state and thereby avoid criminal
69	prosecution, penalties, and interest as provided in subsections
70	(4), (5), and (6).
71	(3) The amnesty program shall be in effect for a 4-month
72	period beginning on July 1, 2003, and ending on October 31,
73	2003. The amnesty program shall apply only to tax liabilities
74	due prior to July 1, 2003. In order to participate in the
75	amnesty program, eligible taxpayers must file the forms and
76	other documentation specified by the Department of Revenue,
77	including, but not limited to, returns and amended returns, must
78	make full payment of tax due, and must make payment of the
79	interest due as provided in subsections (4) and (5).
80	(4) A taxpayer may participate in the amnesty program
81	whether or not the taxpayer is under audit, inquiry,
82	examination, or civil investigation initiated by the Department
83	of Revenue, regardless of whether the amount due is included in
84	a proposed assessment or an assessment, bill, notice, or demand
85	for payment issued by the Department of Revenue, and without
86	regard to whether the amount due is subject to a pending
87	administrative or judicial proceeding. If any of the
88	circumstances set forth in this subsection apply, the taxpayer
89	shall be required to pay the full amount of the tax due and 75
90	percent of the amount of interest due. A taxpayer that is
91	participating in the certified audits program authorized by s.
92	213.285, Florida Statutes, shall be eligible for the interest
93	and penalty compromises authorized by either the amnesty program
94	or the certified audits program, but not both.
95	(5) If the circumstances set forth in subsection (4) do
96	not apply and the initial contact with the Department of Revenue
97	is made by the taxpayer pursuant to the amnesty program, the
98	taxpayer shall be required to pay the full amount of the tax due
99	and 50 percent of the amount of interest due.
100	(6) No penalties shall be imposed on any tax paid pursuant
101	to the amnesty program, and the Department of Revenue shall not
102	initiate a criminal investigation against or refer for
103	prosecution any taxpayer participating in the amnesty program
104	with respect to the failure to timely pay the tax disclosed in
105	the amnesty program.
106	(7) Participation in the amnesty program shall be
107	conditioned upon the taxpayer’s express waiver of rights to
108	contest taxes being reported pursuant to the amnesty program. If
109	the taxes reported pursuant to the amnesty program are the
110	subject of a pending informal protest under s. 213.21, Florida
111	Statutes, or of administrative or judicial proceedings that have
112	not become final as of the date payment of the taxes is made
113	pursuant to the amnesty program, participation in the amnesty
114	program is conditioned upon the taxpayer’s withdrawal of such
115	informal protest or dismissal of such administrative or judicial
116	proceeding. Participation in the amnesty program shall also be
117	conditioned upon the taxpayer’s express agreement to waive any
118	right to claim a refund or to protest or initiate an
119	administrative or judicial proceeding to review any denial of a
120	refund claim for any refund of tax or interest paid under the
121	amnesty program except as provided in this subsection. No refund
122	may be made of any penalty or interest paid prior to July 1,
123	2003. Any credit or refund of tax or interest paid as a result
124	of participation in the amnesty program shall be strictly
125	limited to amounts determined by the Department of Revenue to
126	have been paid in error.
127	(8) A taxpayer that has been placed on notice that the
128	taxpayer is under criminal investigation, or is under
129	indictment, information, or prosecution regarding a revenue law
130	of this state shall not be eligible to participate in the
131	amnesty program. A taxpayer that has been convicted of a crime
132	regarding a revenue law of this state shall not be eligible to
133	participate in the amnesty program.
134	(9) With or without an audit, the Department of Revenue is
135	authorized to issue a notice or demand for payment with respect
136	to any tax or interest that it determines to be due with any
137	return filed under the tax amnesty program, and such notice and
138	demand shall be prima facie correct in any administrative,
139	judicial, or quasi-judicial proceeding.
140	(10) The Department of Revenue may, on the basis of fraud,
141	misrepresentation, or mutual mistake of fact, rescind a grant of
142	amnesty. Any taxpayer that files under the amnesty program
143	false or fraudulent returns, forms, or documentation or attempts
144	in any manner to defeat or evade a tax is subject to applicable
145	penalties and criminal prosecution.
146	(11) Any local option tax administered by a local
147	government that imposed the tax pursuant to a statute permitting
148	self-administration is excluded from the amnesty program unless
149	the local government notifies the Department of Revenue by June
150	1, 2003, that it chooses to participate in the amnesty program.
151	Any taxpayer that has entered into a settlement of liability
152	for local option taxes before July 1, 2003, but has not made
153	full and complete payment of the settlement amount shall not be
154	eligible to participate in the amnesty program.
155	(12) The executive director of the Department of Revenue
156	is authorized to adopt emergency rules under ss. 120.536(1) and
157	120.54(4), Florida Statutes, to implement the amnesty program.
158	Such rules may provide forms, procedures, terms, conditions, and
159	methods of payment appropriate for fair and effective
160	administration of the amnesty program and to ensure the
161	taxpayer's ongoing commitment to proper remittance of taxes to
162	the state. Notwithstanding any other law, the emergency rules
163	shall remain in effect until the later of the date that is 6
164	months after the date of adoption of the rule or the date of
165	final resolution of all amnesty applications filed pursuant to
166	this section.
167	Section 2. Effective July 1, 2003, subsections (2) and (3)
168	of section 213.235, Florida Statutes, are amended to read:
169	213.235 Determination of interest on deficiencies.--
170	(2) If the adjusted prime rate charged by banks, rounded
171	to the nearest full percent, plus 4 percentage points,during
172	either:
173	(a) The 6-month period ending on September 30 of any
174	calendar year, or
175	(b) The 6-month period ending on March 31 of any calendar
176	year
177
178	differs from the interest rate in effect on either such date,
179	the executive director of the department shall, within 20 days,
180	establish an adjusted rate of interest equal to such adjusted
181	prime rate plus 4 percentage points.
182	(3) An adjusted rate of interest established under this
183	section becomes effective:
184	(a) On January 1 of the succeeding year, if based upon the
185	adjusted prime rate plus 4 percentage pointsfor the 6-month
186	period ending on September 30; or
187	(b) On July 1 of the same calendar year, if based upon the
188	adjusted prime rate plus 4 percentage pointsfor the 6-month
189	period ending on March 31.
190	Section 3. Amendments made by this act to s. 213.235(2)
191	and (3), Florida Statutes, apply to interest due on tax payment
192	deficiencies that arise on or after July 1, 2003, and also apply
193	to interest due on tax payment deficiencies that arose on or
194	after January 1, 2000, but remain unpaid as of July 1, 2003.
195	Section 4. Effective July 1, 2003, subsections (2) and (3)
196	of section 220.807, Florida Statutes, are amended to read:
197	220.807 Determination of rate of interest.--
198	(2) If the adjusted prime rate charged by banks, rounded
199	to the nearest full percent, plus 4 percentage points,during
200	either:
201	(a) The 6-month period ending on September 30 of any
202	calendar year; or
203	(b) The 6-month period ending on March 31 of any calendar
204	year,
205
206	differs from the interest rate in effect on either such date,
207	the executive director of the Department of Revenue shall,
208	within 20 days, establish an adjusted rate of interest equal to
209	such adjusted prime rate plus 4 percentage points.
210	(3) An adjusted rate of interest established under this
211	section shall become effective:
212	(a) On January 1 of the succeeding year, if based upon the
213	adjusted prime rate plus 4 percentage pointsfor the 6-month
214	period ending on September 30; or
215	(b) On July 1 of the same calendar year, if based upon the
216	adjusted prime rate plus 4 percentage pointsfor the 6-month
217	period ending on March 31.
218	Section 5. Amendments made by this act to s. 220.807(2)
219	and (3), Florida Statutes, apply to interest due on tax payment
220	deficiencies that arise on or after July 1, 2003, and also apply
221	to interest due on tax payment deficiencies that arose before
222	January 1, 2003, but remain unpaid as of July 1, 2003.
223	Section 6. The sum of $385,000 is appropriated from the
224	General Revenue Fund to the Department of Revenue for the
225	purpose of administering the amnesty program created by this
226	act.
227	Section 7. Except as otherwise provided herein, this act
228	shall take effect upon becoming a law.