HB 0391 2004
1	A bill to be entitled
2	An act relating to tax administration; amending ss.
3	213.235 and 220.807, F.S.; providing an alternative to a
4	requirement that the interest rate on certain tax
5	deficiencies shall be the rounded adjusted prime rate
6	charged by banks plus 4 percentage points; providing
7	application of certain adjustments; requiring the
8	Department of Revenue to use certain adjusted prime rates
9	in certain calculations; amending ss. 213.24, 213.255,
10	220.723, and 220.809, F.S., to conform; providing an
11	effective date.
12
13	Be It Enacted by the Legislature of the State of Florida:
14
15	Section 1. Subsections (1), (2), (3), and (5) of section
16	213.235, Florida Statutes, are amended to read:
17	213.235 Determination of interest on deficiencies.--
18	(1) Notwithstanding any other provision of law, the annual
19	rate of interest applicable to tax payment deficiencies that
20	arise on or after January 1, 2000, shall be the adjusted rate
21	established by the executive director of the department under
22	subsection (2) or subsection (3), unless a lower rate for the
23	particular tax is specifically provided for in law, in which
24	case the lower rate applies. This annual rate of interest
25	applies to all taxes enumerated in s. 213.05.
26	(2)(a)If the adjusted prime rate charged by banks,
27	rounded to the nearest full percent, plus 4 percentage points,
28	during either:
29	1.(a)The 6-month period ending on September 30 of any
30	calendar year, or
31	2.(b)The 6-month period ending on March 31 of any
32	calendar year
33
34	differs from the interest rate in effect on either such date,
35	the executive director of the department shall, within 20 days,
36	establish an adjusted rate of interest equal to such adjusted
37	prime rate plus 4 percentage points.
38	(b)(3) An adjusted rate of interest established under this
39	subsection sectionbecomes effective:
40	1.(a)On January 1 of the succeeding year, if based upon
41	the adjusted prime rate plus 4 percentage points for the 6-month
42	period ending on September 30; or
43	2.(b)On July 1 of the same calendar year, if based upon
44	the adjusted prime rate plus 4 percentage points for the 6-month
45	period ending on March 31.
46	(3)(a) Notwithstanding subsection (2), if payment of a tax
47	payment deficiency is made within 60 days after issuance of an
48	assessment, billing, or notice and demand for payment, or an
49	agreement for scheduling payments of taxes, interest, and
50	penalties is made within 60 days after issuance of an
51	assessment, billing, or notice and demand for payment, interest
52	on the tax deficiency shall be the adjusted prime rate charged
53	by banks, rounded to the nearest full percent. If the adjusted
54	prime rate charged by banks, rounded to the nearest full percent
55	during either:
56	1. The 6-month period ending on September 30 of any
57	calendar year, or
58	2. The 6-month period ending on March 31 of any calendar
59	year
60
61	differs from the interest rate in effect on either such date,
62	the executive director of the department shall, within 20 days,
63	establish an adjusted rate of interest equal to such adjusted
64	prime rate.
65	(b) An adjusted rate of interest established under this
66	subsection becomes effective:
67	1. On January 1 of the succeeding year, if based upon the
68	adjusted prime rate for the 6-month period ending on September
69	30; or
70	2. On July 1 of the same calendar year, if based upon the
71	adjusted prime rate for the 6-month period ending on March 31.
72	(5) Once established, an adjusted rate of interest remains
73	in effect until further adjusted under subsection (2) or
74	subsection (3).
75	Section 2. Subsection (1) of section 213.24, Florida
76	Statutes, is amended to read:
77	213.24 Accrual of penalties and interest on deficiencies;
78	deficiency billing costs.--
79	(1) If an assessment, billing, ornotice and demand is
80	made for the payment of any amount due under laws made
81	applicable to this chapter and if such amount is paid within 60
82	30 days after the date of such assessment, billing,or notice
83	and demand, no additional penalties or interest under this
84	section on the amount so paid shall be imposed for the period
85	after the date of such assessment, billing, ornotice and
86	demand.
87	Section 3. Subsection (12) of section 213.255, Florida
88	Statutes, is amended to read:
89	213.255 Interest.--Interest shall be paid on overpayments
90	of taxes, payment of taxes not due, or taxes paid in error,
91	subject to the following conditions:
92	(12) The rate of interest shall be the adjusted rate
93	established pursuant to s. 213.235(3), except that the annual
94	rate of interest shall never be greater than 11 percent. This
95	annual rate of interest shall be applied to all refunds of taxes
96	administered by the department except for corporate income taxes
97	and emergency excise taxes governed by ss. 220.721 and 220.723.
98	Section 4. Subsection (1) of section 220.723, Florida
99	Statutes, is amended to read:
100	220.723 Overpayments; interest.--
101	(1) Interest shall be allowed and paid in accordance with
102	the provisions of s. 220.807(3)upon any overpayment of a tax
103	imposed by this chapter. However, if any overpayment is refunded
104	or credited within 3 months after the date upon which the
105	taxpayer files written notice advising the department of such
106	overpayment, no interest shall be allowed on such overpayment.
107	Section 5. Subsections (1), (2), (3), and (5) of section
108	220.807, Florida Statutes, are amended to read:
109	220.807 Determination of rate of interest.--
110	(1) The annual rate of interest applicable to this chapter
111	shall be the adjusted rate established by the executive director
112	of the Department of Revenue under subsection (2) or subsection
113	(3), except that the annual rate of interest shall never be
114	greater than 12 percent.
115	(2)(a)If the adjusted prime rate charged by banks,
116	rounded to the nearest full percent, plus 4 percentage points,
117	during either:
118	1.(a)The 6-month period ending on September 30 of any
119	calendar year; or
120	2.(b)The 6-month period ending on March 31 of any
121	calendar year,
122
123	differs from the interest rate in effect on either such date,
124	the executive director of the Department of Revenue shall,
125	within 20 days, establish an adjusted rate of interest equal to
126	such adjusted prime rate plus 4 percentage points.
127	(b)(3) An adjusted rate of interest established under this
128	subsection sectionshall become effective:
129	1.(a)On January 1 of the succeeding year, if based upon
130	the adjusted prime rate plus 4 percentage points for the 6-month
131	period ending on September 30; or
132	2.(b)On July 1 of the same calendar year, if based upon
133	the adjusted prime rate plus 4 percentage points for the 6-month
134	period ending on March 31.
135	(3)(a) Notwithstanding subsection (2), if payment of a tax
136	payment deficiency is made within 60 days after issuance of an
137	assessment, billing, or notice and demand for payment, or if an
138	agreement for scheduling payments of taxes, interest, and
139	penalties is made within 60 days after issuance of an
140	assessment, billing, or notice and demand for payment, interest
141	on the tax deficiency shall be the adjusted prime rate charged
142	by banks, rounded to the nearest full percent. If the adjusted
143	prime rate charged by banks, rounded to the nearest full percent
144	during either:
145	1. The 6-month period ending on September 30 of any
146	calendar year, or
147	2. The 6-month period ending on March 31 of any calendar
148	year
149
150	differs from the interest rate in effect on either such date,
151	the executive director of the department shall, within 20 days,
152	establish an adjusted rate of interest equal to such adjusted
153	prime rate.
154	(b) An adjusted rate of interest established under this
155	subsection becomes effective:
156	1. On January 1 of the succeeding year, if based upon the
157	adjusted prime rate for the 6-month period ending on September
158	30; or
159	2. On July 1 of the same calendar year, if based upon the
160	adjusted prime rate for the 6-month period ending on March 31.
161	(5) Once established, an adjusted rate of interest shall
162	remain in effect until an adjustment is made under subsection
163	(2) or subsection (3).
164	Section 6. Subsection (5) of section 220.809, Florida
165	Statutes, is amended to read:
166	220.809 Interest on deficiencies.--
167	(5) If an assessment, billing, ornotice and demand is
168	made for the payment of any amount due under this chapter, and
169	if such amount is paid within 60 30 days after the date of such
170	assessment, billing, ornotice and demand, interest under this
171	section on the amount so paid shall not be imposed for the
172	period after the date of such assessment, billing, ornotice and
173	demand.
174	Section 7. Amendments made by this act to ss. 213.235 and
175	220.807, Florida Statutes, apply to interest due on tax payment
176	deficiencies that arise on or after July 1, 2004, and also apply
177	to interest due on tax payment deficiencies that arose on or
178	after January 1, 2000, but remain unpaid as of July 1, 2004.
179	When calculating the rate that takes effect on July 1, 2004, the
180	department shall use in making that calculation the adjusted
181	prime rate charged by banks, rounded to the nearest full
182	percent, during the 6-month period ending on March 31, 2004.
183	Section 8. This act shall take effect July 1, 2004.