SENATE AMENDMENT
    Bill No. CS for SB 654
    Amendment No. ___   Barcode 642192
                            CHAMBER ACTION
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       03/16/2004 10:50 AM         .                    
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11  Senator Fasano moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         On page 7, line 1, through
15            page 12, line 29, delete those lines
16  
17  and insert:  
18         Section 1.  Section 185.085, Florida Statutes, is
19  created to read:
20         185.085  Determination of local premium tax situs.--
21         (1)(a)  Any insurance company that is obligated to
22  report and remit the excise tax on casualty insurance premiums
23  imposed under s. 185.08 shall be held harmless from any
24  liability, including, but not limited to, liability for taxes,
25  interest, or penalties that would otherwise be due solely as a
26  result of an assignment of an insured property to an incorrect
27  local taxing jurisdiction if the insurance company exercises
28  due diligence in applying an electronic database provided by
29  the Department of Revenue under subsection (2). Insurance
30  companies that do not use the electronic database provided by
31  the Department of Revenue or that do not exercise due
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    3:34 PM   03/15/04                              s0654c1c-11k0w

SENATE AMENDMENT Bill No. CS for SB 654 Amendment No. ___ Barcode 642192 1 diligence in applying the electronic database for tax years on 2 or after January 1, 2006, are subject to a 0.5 percent penalty 3 on the portion of the premium pertaining to any insured risk 4 that is improperly assigned, whether assigned to an improper 5 local taxing jurisdiction, not assigned to a local taxing 6 jurisdiction when it should be assigned to a local taxing 7 jurisdiction, or assigned to a local taxing jurisdiction when 8 it should not be assigned to a local taxing jurisdiction. 9 (b) Any insurance company that is obligated to report 10 and remit the excise tax on commercial casualty insurance 11 premiums imposed under s. 185.08 and is unable, after due 12 diligence, to assign an insured property to a specific local 13 taxing jurisdiction for purposes of complying with 14 paragraph(a) shall remit the excise tax on commercial casualty 15 insurance premiums using a methodology of apportionment in a 16 manner consistent with the remittance for the 2004 calendar 17 year. An insurance company which makes two contacts with the 18 agent responsible for a commercial casualty insurance 19 application for the purpose of verifying information on the 20 application necessary for the assignment to the appropriate 21 taxing jurisdiction, shall be considered to have exercised due 22 diligence. Any insurance company which complies with the 23 provisions of this paragraph shall not be subject to the 24 penalty provided in paragraph (a). 25 (2)(a) The Department of Revenue shall, subject to 26 legislative appropriation, create as soon as practical and 27 feasible, and thereafter shall maintain, an electronic 28 database that conforms to any format approved by the American 29 National Standards Institute's Accredited Standards Committee 30 X12 and that designates for each street address and address 31 range in the state, including any multiple postal street 2 3:34 PM 03/15/04 s0654c1c-11k0w
SENATE AMENDMENT Bill No. CS for SB 654 Amendment No. ___ Barcode 642192 1 addresses applicable to one street location, the local taxing 2 jurisdiction in which the street address and address range is 3 located, and the appropriate code for each such participating 4 local taxing jurisdiction, identified by one nationwide 5 standard numeric code. The nationwide standard numeric code 6 must contain the same number of numeric digits, and each digit 7 or combination of digits must refer to the same level of 8 taxing jurisdiction throughout the United States and must be 9 in a format similar to FIPS 55-3 or other appropriate standard 10 approved by the Federation of Tax Administrators and the 11 Multistate Tax Commission. Each address or address range must 12 be provided in standard postal format, including the street 13 number, street number range, street name, and zip code. Each 14 year after the creation of the initial database, the 15 Department of Revenue shall annually create and maintain a 16 database for the current tax year. Each annual database must 17 be calendar-year specific. 18 (b)1. Each participating local taxing jurisdiction 19 shall furnish to the Department of Revenue all information 20 needed to create the electronic database as soon as practical 21 and feasible. The information furnished to the Department of 22 Revenue must specify an effective date. 23 2. Each participating local taxing jurisdiction shall 24 furnish to the Department of Revenue all information needed to 25 create and update the current year's database, including 26 changes in annexations, incorporations, and reorganizations 27 and any other changes in jurisdictional boundaries, as well as 28 changes in eligibility to participate in the excise tax 29 imposed under this chapter. The information must specify an 30 effective date and must be furnished to the Department of 31 Revenue by July 1 of the current year. 3 3:34 PM 03/15/04 s0654c1c-11k0w
SENATE AMENDMENT Bill No. CS for SB 654 Amendment No. ___ Barcode 642192 1 3. The Department of Revenue shall create and update 2 the current year's database in accordance with the information 3 furnished by participating local taxing jurisdictions under 4 subparagraph 1. or subparagraph 2., as appropriate. To the 5 extent practicable, the Department of Revenue shall post each 6 new annual database on a web site by September 1 of each year. 7 Each participating local taxing jurisdiction shall have access 8 to this web site and, within 30 days thereafter, shall provide 9 any corrections to the Department of Revenue. The Department 10 of Revenue shall finalize the current year's database and post 11 it on a web site by November 1 of the current year. If a 12 dispute in jurisdictional boundaries cannot be resolved so 13 that changes in boundaries may be included, as appropriate, in 14 the database by November 1, the changes may not be 15 retroactively included in the current year's database and the 16 boundaries will remain the same as in the previous year's 17 database. The finalized database must be used in assigning 18 policies and premiums to the proper local taxing jurisdiction 19 for the insurance premium tax return due on the following 20 March 1 for the tax year 2005. For subsequent tax years, the 21 finalized database must be used in assigning policies and 22 premiums to the proper local taxing jurisdiction for the 23 insurance premium tax return due for the tax year beginning on 24 or after the January 1 following the website posting of the 25 database. Information contained in the electronic database is 26 conclusive for purposes of this chapter. The electronic 27 database is not an order, a rule, or a policy of general 28 applicability. 29 4. Each annual database must identify the additions, 30 deletions, and other changes to the preceding version of the 31 database. 4 3:34 PM 03/15/04 s0654c1c-11k0w
SENATE AMENDMENT Bill No. CS for SB 654 Amendment No. ___ Barcode 642192 1 (3)(a) As used in this section, the term "due 2 diligence" means the care and attention that is expected from 3 and is ordinarily exercised by a reasonable and prudent person 4 under the circumstances. 5 (b) Notwithstanding any law to the contrary, an 6 insurance company is exercising due diligence if the insurance 7 company complies with the provisions of paragraph (1)(b) or if 8 the insurance company assigns an insured's premium to local 9 taxing jurisdictions in accordance with the Department of 10 Revenue's annual database and with respect to such database: 11 1. Expends reasonable resources to accurately and 12 reliably implement such method; 13 2. Maintains adequate internal controls to correctly 14 include in its database of policyholders the location of the 15 property insured, in the proper address format, so that 16 matching with the department's database is accurate; and 17 3. Corrects errors in the assignment of addresses to 18 local taxing jurisdictions within 120 days after the insurance 19 company discovers the errors. 20 (4) There is annually appropriated from the moneys 21 collected under this chapter and deposited in the Police and 22 Firefighter's Premium Tax Trust Fund an amount sufficient to 23 pay the expenses of the Department of Revenue in administering 24 this section, but not to exceed $50,000 annually, adjusted 25 annually by the lesser of a 5 percent increase or the 26 percentage of growth in the total collections. 27 (5) The Department of Revenue shall adopt rules 28 necessary to administer this section, including rules 29 establishing procedures and forms. 30 (6)(a) Notwithstanding any other law, a methodology, 31 formula, or database that is adopted in any year after January 5 3:34 PM 03/15/04 s0654c1c-11k0w
SENATE AMENDMENT Bill No. CS for SB 654 Amendment No. ___ Barcode 642192 1 1, 2005, may not result in a distribution to a participating 2 municipality that has a retirement plan created pursuant to 3 this chapter of an amount of excise tax which is less than the 4 amount distributed to such participating municipality for 5 calendar year 2004. However, if the total proceeds to be 6 distributed for the current year from the excise tax imposed 7 under s. 185.08 are less than the total amount distributed for 8 calendar year 2004, each participating municipality shall 9 receive a current year distribution that is proportionate to 10 its share of the total 2004 calendar year distribution. If the 11 total proceeds to be distributed for the current year from the 12 excise tax imposed under s. 185.08 are greater than or equal 13 to the total amount distributed for calendar year 2004, each 14 participating municipality shall initially be distributed a 15 minimum amount equal to the amount received for calendar year 16 2004. The remaining amount to be distributed for the current 17 year, which equals the total to be distributed for the current 18 year, less minimum distribution amount, shall be distributed 19 to those municipalities with an amount reported for the 20 current year which is greater than the amount distributed to 21 such municipality for calendar year 2004. Each municipality 22 eligible for distribution of this remaining amount shall 23 receive its proportionate share of the remaining amount based 24 upon the amount reported for that municipality, above the 25 calendar year 2004 distribution for the current year, to the 26 total amount over the calendar year 2004 distribution for all 27 municipalities with an amount reported for the current year 28 which is greater than the calendar year 2004 distribution. 29 (b) If a new municipality elects to participate under 30 this chapter during any year after January 1, 2005, such 31 municipality shall receive the total amount reported for the 6 3:34 PM 03/15/04 s0654c1c-11k0w
SENATE AMENDMENT Bill No. CS for SB 654 Amendment No. ___ Barcode 642192 1 current- year for such municipality. All other participating 2 municipalities shall receive a current year distribution, 3 calculated as provided in this section, which is proportionate 4 to their share of the total 2004 calendar year distribution 5 after subtracting the amount paid to the new participating 6 plans. 7 (c) This subsection expires January 1, 2008. 8 (7) Any insurer that is obligated to collect and remit 9 the tax on casualty insurance imposed under s. 185.08 shall be 10 held harmless from any liability, including, but not limited 11 to, liability for taxes, interest, or penalties that would 12 otherwise be due solely as a result of an assignment of an 13 insured risk to an incorrect local taxing jurisdiction, based 14 on the collection and remission of the tax accruing before 15 January 1, 2005, if the insurer collects and reports this tax 16 consistent with filings for periods before January 1, 2005. 17 Further, any insurer that is obligated to collect and remit 18 the tax on casualty insurance imposed under this section is 19 not subject to an examination under s. 624.316 or s. 624.3161 20 which would occur solely as a result of an assignment of an 21 insured risk to an incorrect local taxing jurisdiction, based 22 on the collection and remission of such tax accruing before 23 January 1, 2005. 24 25 26 ================ T I T L E A M E N D M E N T =============== 27 And the title is amended as follows: 28 On page 1, lines 14-26, delete those lines 29 30 and insert: 31 adopt rules; creating s. 185.085, F.S.; 7 3:34 PM 03/15/04 s0654c1c-11k0w
SENATE AMENDMENT Bill No. CS for SB 654 Amendment No. ___ Barcode 642192 1 authorizing the Department of Revenue to create 2 and maintain a database for use by insurers 3 that report and remit an excise tax on casualty 4 insurers premiums; providing incentives to 5 insurers for using the database and penalties 6 for failure to use the database; requiring 7 local governments to provide information to the 8 department; appropriating funds to the 9 department for the administration of the 10 database; authorizing the department to adopt 11 rules; providing for distribution of tax 12 revenues through 2007; amending s. 175.351, 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 8 3:34 PM 03/15/04 s0654c1c-11k0w