HB 0059A 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 maximum
14	limitations on certain annual interest rates; providing
15	application of certain adjustments; requiring the
16	Department of Revenue to use certain adjusted prime rates
17	in certain calculations; providing legislative intent;
18	amending s. 202.35, F.S.; limiting certain annual rates of
19	interest; providing an appropriation; providing for
20	reversion and reappropriation of certain amounts under
21	certain circumstances; providing for construction of the
22	act in pari materia with laws enacted during the 2003
23	Regular Session of the Legislature; providing effective
24	dates.
25
26	WHEREAS, state government should undertake all reasonable
27	efforts to ensure uniform compliance with the existing state
28	revenue laws across the state, and
29	WHEREAS, the Department of Revenue has implemented an
30	integrated tax-administration information system (SUNTAX) that
31	will provide the department with better information on taxpayer
32	compliance, and
33	WHEREAS, the SUNTAX system provides the department with
34	additional capabilities to discover unregistered and
35	noncompliant taxpayers, and
36	WHEREAS, the department is currently using the SUNTAX
37	system to identify areas of noncompliance and to help taxpayers
38	come into full compliance with the law, and
39	WHEREAS, the department expects SUNTAX to be of substantial
40	further benefit in helping to ensure that all taxpayers bear
41	their fair share of the state’s tax burden, and
42	WHEREAS, taxpayers that are not in full compliance with tax
43	laws may be unaware of some aspects of their obligations under
44	Florida law, and
45	WHEREAS, it is the intent of this state to assist taxpayers
46	in fully understanding their tax obligations and in complying
47	with those obligations in ways that place the lowest possible
48	burden on taxpayers, and
49	WHEREAS, the department is aware of circumstances in which
50	taxpayers, often without their knowledge, are not in compliance
51	with the tax laws of the state, and
52	WHEREAS, the Legislature finds and declares that taxpayers
53	should be given an opportunity to come into voluntary compliance
54	before the department undertakes further steps to identify
55	taxpayers that are in noncompliance, and
56	WHEREAS, the Legislature finds and declares that a public
57	purpose is served by the waiver of tax penalties and interest in
58	return for the immediate reporting and payment of previously
59	underreported, unreported, or unpaid tax liabilities, and
60	WHEREAS, the Legislature further finds and declares that
61	among the benefits gained through an amnesty program are
62	increased collection of currently owed taxes and permanently
63	bringing into the tax system taxpayers that have been unaware of
64	or have not been fulfilling their tax obligations, and
65	WHEREAS, to encourage the full payment of taxes owed to the
66	State of Florida, NOW, THEREFORE,
67
68	Be It Enacted by the Legislature of the State of Florida:
69
70	Section 1. (1) No later than July 1, 2003, the Department
71	of Revenue shall develop and implement an amnesty program for
72	taxpayers subject to the state and local taxes imposed by
73	chapters 125, 198, 199, 201, 202, 203, 206, 211, 212, 220, 221,
74	336, 370, 376, 403, 538, 624, 627, and 681, Florida Statutes.
75	(2) The amnesty program shall be a one-time opportunity
76	for eligible taxpayers to satisfy their tax liabilities under
77	the revenue laws of this state and thereby avoid criminal
78	prosecution, penalties, and interest as provided in subsections
79	(4), (5), and (6). Any taxpayer that has entered into a
80	settlement of liability for state or local option taxes before
81	July 1, 2003, whether or not full and complete payment of the
82	settlement amount has been made, shall not be eligible to
83	participate in the amnesty program.
84	(3) The amnesty program shall be in effect for a 4-month
85	period beginning on July 1, 2003, and ending on October 31,
86	2003. The amnesty program shall apply only to tax liabilities
87	due prior to July 1, 2003. In order to participate in the
88	amnesty program, eligible taxpayers must file the forms and
89	other documentation specified by the department, including, but
90	not limited to, returns and amended returns, must make full
91	payment of tax due, and must make payment of the interest due as
92	provided in subsections (4) and (5).
93	(4) A taxpayer may participate in the amnesty program
94	whether or not the taxpayer is under audit, inquiry,
95	examination, or civil investigation initiated by the department,
96	regardless of whether the amount due is included in a proposed
97	assessment or an assessment, bill, notice, or demand for payment
98	issued by the department, and without regard to whether the
99	amount due is subject to a pending administrative or judicial
100	proceeding. If any of the circumstances set forth in this
101	subsection apply, the taxpayer shall be required to pay the full
102	amount of the tax due and 75 percent of the amount of interest
103	due. When the department has issued a notice of intent to
104	conduct an audit to a taxpayer but has not commenced the audit,
105	the taxpayer may apply to the department during the amnesty
106	program for approval to have the audit converted to the
107	certified audits program authorized by s. 213.285, Florida
108	Statutes. When a taxpayer has been approved during the amnesty
109	program to have an audit converted to the certified audits
110	program, payment of any liability determined as a result of this
111	participation in the certified audits program must be made
112	during the period the amnesty program is in effect. A taxpayer
113	that is participating in the certified audits program shall be
114	eligible for the interest and penalty compromises authorized by
115	either the amnesty program or the certified audits program, but
116	not both.
117	(5) If the circumstances set forth in subsection (4) do
118	not apply and the initial contact with the department is made by
119	the taxpayer pursuant to the amnesty program, the taxpayer shall
120	be required to pay the full amount of the tax due and 50 percent
121	of the amount of interest due.
122	(6) No penalties shall be imposed on any tax paid pursuant
123	to the amnesty program, and the department shall not initiate a
124	criminal investigation against or refer for prosecution any
125	taxpayer participating in the amnesty program with respect to
126	the failure to timely pay the tax disclosed in the amnesty
127	program.
128	(7) Participation in the amnesty program shall be
129	conditioned upon the taxpayer’s express waiver of rights to
130	contest taxes being reported pursuant to the amnesty program. If
131	the taxes reported pursuant to the amnesty program are the
132	subject of a pending informal protest under s. 213.21, Florida
133	Statutes, or of administrative or judicial proceedings that have
134	not become final as of the date payment of the taxes is made
135	pursuant to the amnesty program, participation in the amnesty
136	program is conditioned upon the taxpayer’s withdrawal of such
137	informal protest or dismissal of such administrative or judicial
138	proceeding. Participation in the amnesty program shall also be
139	conditioned upon the taxpayer’s express agreement to waive any
140	right to claim a refund or to protest or initiate an
141	administrative or judicial proceeding to review any denial of a
142	refund claim for any refund of tax or interest paid under the
143	amnesty program except as provided in this subsection. No refund
144	may be made of any penalty or interest paid prior to July 1,
145	2003. Any credit or refund of tax or interest paid as a result
146	of participation in the amnesty program shall be strictly
147	limited to amounts determined by the department to have been
148	paid in error.
149	(8) A taxpayer under criminal investigation, indictment,
150	information, or prosecution regarding a revenue law of this
151	state shall not be eligible to participate in the amnesty
152	program. A taxpayer that has been convicted of a crime regarding
153	a revenue law of this state shall not be eligible to participate
154	in the amnesty program.
155	(9) With or without an audit, the department is authorized
156	to issue a notice or demand for payment with respect to any tax
157	or interest that it determines to be due with any return filed
158	under the tax amnesty program, and such notice and demand shall
159	be prima facie correct in any administrative, judicial, or
160	quasi-judicial proceeding.
161	(10) The department may rescind, on the basis of fraud,
162	misrepresentation, or mutual mistake of fact, a grant of
163	amnesty, including any amnesty granted as a result of
164	participation in the certified audit program during the period
165	the amnesty program is in effect. Any taxpayer that files under
166	the amnesty program false or fraudulent returns, forms, or
167	documentation or that attempts in any manner to defeat or evade
168	a tax is subject to applicable penalties and criminal
169	prosecution.
170	(11) Any local option tax administered by a local
171	government that imposed the tax pursuant to a statute permitting
172	self-administration is excluded from the amnesty program unless
173	the local government notifies the department by June 10, 2003,
174	that it chooses to participate in the amnesty program.
175	(12) The executive director of the department is
176	authorized to adopt emergency rules under ss. 120.536(1) and
177	120.54(4), Florida Statutes, to implement the amnesty program.
178	Such rules may provide forms, procedures, terms, conditions, and
179	methods of payment appropriate for fair and effective
180	administration of the amnesty program and to ensure the
181	taxpayer's ongoing commitment to proper remittance of taxes to
182	the state. Notwithstanding any other law, the emergency rules
183	shall remain in effect until the later of the date that is 6
184	months after the date of adoption of the rule or the date of
185	final resolution of all amnesty applications filed pursuant to
186	this section.
187	Section 2. Effective November 1, 2003, subsections (2) and
188	(3) of section 213.235, Florida Statutes, are amended to read:
189	213.235 Determination of interest on deficiencies.--
190	(2) If the adjusted prime rate charged by banks, rounded
191	to the nearest full percent, plus 4 percentage points,during
192	either:
193	(a) The 6-month period ending on September 30 of any
194	calendar year, or
195	(b) The 6-month period ending on March 31 of any calendar
196	year
197
198	differs from the interest rate in effect on either such date,
199	the executive director of the department shall, within 20 days,
200	establish an adjusted rate of interest equal to such adjusted
201	prime rate plus 4 percentage points.
202	(3) An adjusted rate of interest established under this
203	section becomes effective:
204	(a) On January 1 of the succeeding year, if based upon the
205	adjusted prime rate plus 4 percentage pointsfor the 6-month
206	period ending on September 30; or
207	(b) On July 1 of the same calendar year, if based upon the
208	adjusted prime rate plus 4 percentage pointsfor the 6-month
209	period ending on March 31.
210	Section 3. Amendments made by this act to s. 213.235(2)
211	and (3), Florida Statutes, apply to interest due on tax payment
212	deficiencies that arise on or after November 1, 2003, and also
213	apply to interest due on tax payment deficiencies that arose on
214	or after January 1, 2000, but remain unpaid as of November 1,
215	2003. When calculating the rate that takes effect on November 1,
216	2003, the department shall use in making that calculation the
217	adjusted prime rate charged by banks, rounded to the nearest
218	full percent, during the 6-month period ending on March 31,
219	2003.
220	Section 4. Effective November 1, 2003, subsections (1),
221	(2), and (3) of section 220.807, Florida Statutes, are amended
222	to read:
223	220.807 Determination of rate of interest.--
224	(1) The annual rate of interest applicable to this chapter
225	shall be the adjusted rate established by the executive director
226	of the Department of Revenue under subsection (2), except the
227	annual rate of interest shall never be greater than 12 percent.
228	(2) If the adjusted prime rate charged by banks, rounded
229	to the nearest full percent, plus 4 percentage points,during
230	either:
231	(a) The 6-month period ending on September 30 of any
232	calendar year; or
233	(b) The 6-month period ending on March 31 of any calendar
234	year,
235
236	differs from the interest rate in effect on either such date,
237	the executive director of the Department of Revenue shall,
238	within 20 days, establish an adjusted rate of interest equal to
239	such adjusted prime rate plus 4 percentage points.
240	(3) An adjusted rate of interest established under this
241	section shall become effective:
242	(a) On January 1 of the succeeding year, if based upon the
243	adjusted prime rate plus 4 percentage pointsfor the 6-month
244	period ending on September 30; or
245	(b) On July 1 of the same calendar year, if based upon the
246	adjusted prime rate plus 4 percentage pointsfor the 6-month
247	period ending on March 31.
248	Section 5. Amendments made by this act to s. 220.807(1),
249	(2), and (3), Florida Statutes, apply to interest due on tax
250	payment deficiencies that arise on or after November 1, 2003,
251	and also apply to interest due on tax payment deficiencies that
252	arose before January 1, 2003, but remain unpaid as of November
253	1, 2003. When calculating the rate that takes effect on November
254	1, 2003, the department shall use in making that calculation the
255	adjusted prime rate charged by banks, rounded to the nearest
256	full percent, during the 6-month period ending on March 31,
257	2003.
258	Section 6. Effective November 1, 2003, subsection (1) of
259	section 202.35, Florida Statutes, is amended to read:
260	202.35 Powers of department in dealing with delinquents;
261	tax to be separately stated.--
262	(1) If any dealer or other person fails to remit the tax,
263	or any portion thereof, on or before the day when the tax is
264	required by law to be paid, there will be added to the amount
265	due interest at the rate calculated pursuant to s. 213.235 of
266	the amount due from the date due until paid, except the annual
267	rate of interest shall never be greater than 12 percent.
268	Interest on the delinquent tax is to be calculated beginning on
269	the 21st day of the month following the month for which the tax
270	is due, except as otherwise provided in this chapter.
271	Section 7. The sum of $610,000 is appropriated from the
272	General Revenue Fund to the Department of Revenue for the
273	purpose of administering the amnesty program created by this
274	act. Funds remaining unexpended or unencumbered from this
275	appropriation as of June 30, 2003, shall revert and be
276	reappropriated for the same purposes in fiscal year 2003-2004.
277	Section 8. If any law amended by this act was also amended
278	by a law enacted at the 2003 Regular Session of the Legislature,
279	such laws shall be construed as if they had been enacted at the
280	same session of the Legislature, and full effect shall be given
281	to each if possible.
282	Section 9. Except as otherwise provided herein, this act
283	shall take effect upon becoming a law.