Senate Bill sb1310

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    Florida Senate - 2005                                  SB 1310

    By the Committee on Regulated Industries





    580-1056A-05

  1                      A bill to be entitled

  2         An act relating to the tax on cigarettes;

  3         amending s. 210.021, F.S.; directing the

  4         Secretary of Business and Professional

  5         Regulation to require certain dealers and

  6         agents to remit the tax on cigarettes by

  7         electronic funds transfer; requiring the

  8         Division of Alcoholic Beverages and Tobacco of

  9         the Department of Business and Professional

10         Regulation to adopt rules governing the payment

11         of taxes by electronic funds transfer; amending

12         s. 210.08, F.S.; revising the amount of the

13         surety bond, certificate of deposit, or

14         irrevocable letter of credit required by the

15         division as surety for the payment of cigarette

16         taxes; providing for exceptions; amending s.

17         210.18, F.S.; requiring that the seizure of

18         unstamped cigarettes be reported to the

19         division; requiring the division to keep

20         records concerning seized unstamped cigarettes;

21         providing an effective date.

22  

23  Be It Enacted by the Legislature of the State of Florida:

24  

25         Section 1.  Section 210.021, Florida Statutes, is

26  amended to read:

27         210.021  Payment of taxes by electronic funds

28  transfer.--

29         (1)  The Secretary of Business and Professional

30  Regulation may require a dealer who sells cigarettes within

31  the state to remit by electronic funds transfer any tax

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    Florida Senate - 2005                                  SB 1310
    580-1056A-05




 1  imposed under s. 210.02 if the taxpayer is subject to the tax

 2  and if the total of such taxes he or she paid in the prior

 3  year amounted to $50,000 or more.

 4         (2)  The Secretary of Business and Professional

 5  Regulation shall require for a period not to exceed 12 months

 6  that a dealer or agent, during the dealer's or agent's initial

 7  period of licensure or appointment, remit by electronic funds

 8  transfer any tax imposed under s. 210.02.

 9         (3)  The division shall adopt rules pursuant to ss.

10  120.536(1) and 120.54 to administer this section.

11         Section 2.  Section 210.08, Florida Statutes, is

12  amended to read:

13         210.08  Bond for payment of taxes.--Each dealer, agent,

14  or distributing agent shall file with the division a surety

15  bond, certificate of deposit, or irrevocable letter of credit

16  acceptable to the division in an amount of 110 percent of the

17  estimated tax liability for 30 days, but not less than $2,000.

18  the sum of $10,000 as surety for the payment of all taxes;

19  provided, however, that where in the discretion of the

20  division the amount of business done by the dealer, agent, or

21  distributing agent is of such volume that a bond, certificate

22  of deposit, or irrevocable letter of credit of less than

23  $10,000 will be adequate to secure the payment of all taxes

24  assessed as authorized by the cigarette tax law, the division

25  may accept a bond, certificate of deposit, or irrevocable

26  letter of credit in a lesser sum than $10,000, but in no event

27  shall it accept a bond, certificate of deposit, or irrevocable

28  letter of credit of less than $1,000, and it may at any time

29  in its discretion require any bond, certificate of deposit, or

30  irrevocable letter of credit in an amount less than $10,000 to

31  be increased not to exceed $10,000.

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    Florida Senate - 2005                                  SB 1310
    580-1056A-05




 1         Section 3.  Section 210.18, Florida Statutes, is

 2  amended to read:

 3         210.18  Penalties for tax evasion; reports by

 4  sheriffs.--

 5         (7)  Any sheriff, deputy sheriff, or police officer, or

 6  state law enforcement officer, upon the seizure of any

 7  unstamped cigarettes under this section, shall promptly report

 8  such seizure to the division or its representative, together

 9  with a description of all such unstamped cigarettes seized, so

10  that the state may be kept informed as to the size and

11  magnitude of the illicit cigarette business. The division

12  shall keep records showing the number of seizures and seized

13  cigarettes reported to, or seized by, the division.

14         Section 4.  This act shall take effect July 1, 2005.

15  

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17                          SENATE SUMMARY

18    Requires that a dealer or agent remit the cigarette tax
      by electronic funds transfer during his or her initial
19    period of licensure or appointment. Requires the Division
      of Alcoholic Beverages and Tobacco of the Department of
20    Business and Professional Regulation to adopt rules
      governing the payment of cigarette taxes by electronic
21    funds transfer. Revises the amount of the amount of the
      surety bond, certificate of deposit, or irrevocable
22    letter of credit required by the division as surety for
      the payment of cigarette taxes. Requires that the
23    division keep records concerning seized cigarettes.

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