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