| 1 | A bill to be entitled |
| 2 | An act relating to the dealer collection allowance for the |
| 3 | tax on sales, use, and other transactions; amending s. |
| 4 | 212.12, F.S.; authorizing a dealer to elect to forego the |
| 5 | collection allowance and direct that the collection |
| 6 | allowance be deposited into the Educational Enhancement |
| 7 | Trust Fund; providing exceptions; providing for rules by |
| 8 | the Department of Revenue; providing an appropriation; |
| 9 | providing for costs recovery; providing an effective date. |
| 10 |
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| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
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| 13 | Section 1. Subsection (1) of section 212.12, Florida |
| 14 | Statutes, is amended to read: |
| 15 | 212.12 Dealer's credit for collecting tax; penalties for |
| 16 | noncompliance; powers of Department of Revenue in dealing with |
| 17 | delinquents; brackets applicable to taxable transactions; |
| 18 | records required.-- |
| 19 | (1) Notwithstanding any other provision of law and for the |
| 20 | purpose of compensating persons granting licenses for and the |
| 21 | lessors of real and personal property taxed hereunder, for the |
| 22 | purpose of compensating dealers in tangible personal property, |
| 23 | for the purpose of compensating dealers providing communication |
| 24 | services and taxable services, for the purpose of compensating |
| 25 | owners of places where admissions are collected, and for the |
| 26 | purpose of compensating remitters of any taxes or fees reported |
| 27 | on the same documents utilized for the sales and use tax, as |
| 28 | compensation for the keeping of prescribed records, filing |
| 29 | timely tax returns, and the proper accounting and remitting of |
| 30 | taxes by them, such seller, person, lessor, dealer, owner, and |
| 31 | remitter (except dealers who make mail order sales) shall be |
| 32 | allowed 2.5 percent of the amount of the tax due and accounted |
| 33 | for and remitted to the department, in the form of a deduction |
| 34 | in submitting his or her report and paying the amount due by him |
| 35 | or her; the department shall allow such deduction of 2.5 percent |
| 36 | of the amount of the tax to the person paying the same for |
| 37 | remitting the tax and making of tax returns in the manner herein |
| 38 | provided, for paying the amount due to be paid by him or her, |
| 39 | and as further compensation to dealers in tangible personal |
| 40 | property for the keeping of prescribed records and for |
| 41 | collection of taxes and remitting the same. However, if the |
| 42 | amount of the tax due and remitted to the department for the |
| 43 | reporting period exceeds $1,200, no allowance shall be allowed |
| 44 | for all amounts in excess of $1,200. The executive director of |
| 45 | the department is authorized to negotiate a collection |
| 46 | allowance, pursuant to rules promulgated by the department, with |
| 47 | a dealer who makes mail order sales. The rules of the department |
| 48 | shall provide guidelines for establishing the collection |
| 49 | allowance based upon the dealer's estimated costs of collecting |
| 50 | the tax, the volume and value of the dealer's mail order sales |
| 51 | to purchasers in this state, and the administrative and legal |
| 52 | costs and likelihood of achieving collection of the tax absent |
| 53 | the cooperation of the dealer. However, in no event shall the |
| 54 | collection allowance negotiated by the executive director exceed |
| 55 | 10 percent of the tax remitted for a reporting period. |
| 56 | (a) The Department of Revenue may deny the collection |
| 57 | allowance if a taxpayer files an incomplete return or if the |
| 58 | required tax return or tax is delinquent at the time of payment. |
| 59 | 1. An "incomplete return" is, for purposes of this |
| 60 | chapter, a return which is lacking such uniformity, |
| 61 | completeness, and arrangement that the physical handling, |
| 62 | verification, review of the return, or determination of other |
| 63 | taxes and fees reported on the return may not be readily |
| 64 | accomplished. |
| 65 | 2. The department shall adopt rules requiring such |
| 66 | information as it may deem necessary to ensure that the tax |
| 67 | levied hereunder is properly collected, reviewed, compiled, |
| 68 | reported, and enforced, including, but not limited to: the |
| 69 | amount of gross sales; the amount of taxable sales; the amount |
| 70 | of tax collected or due; the amount of lawful refunds, |
| 71 | deductions, or credits claimed; the amount claimed as the |
| 72 | dealer's collection allowance; the amount of penalty and |
| 73 | interest; the amount due with the return; and such other |
| 74 | information as the Department of Revenue may specify. The |
| 75 | department shall require that transient rentals and agricultural |
| 76 | equipment transactions be separately shown. Sales made through |
| 77 | vending machines as defined in s. 212.0515 must be separately |
| 78 | shown on the return. Sales made through coin-operated amusement |
| 79 | machines as defined by s. 212.02 and the number of machines |
| 80 | operated must be separately shown on the return or on a form |
| 81 | prescribed by the department. If a separate form is required, |
| 82 | the same penalties for late filing, incomplete filing, or |
| 83 | failure to file as provided for the sales tax return shall apply |
| 84 | to said form. |
| 85 | (b) The collection allowance and other credits or |
| 86 | deductions provided in this chapter shall be applied |
| 87 | proportionally to any taxes or fees reported on the same |
| 88 | documents used for the sales and use tax. |
| 89 | (c) A dealer entitled to the collection allowance provided |
| 90 | in this section may elect to forego the collection allowance and |
| 91 | direct that the said amount be deposited into the Educational |
| 92 | Enhancement Trust Fund. Such election must be made with the |
| 93 | timely filing of a return and cannot be rescinded once made. |
| 94 | When a dealer who makes such election files a delinquent return, |
| 95 | underpays the tax, or files an incomplete return, the amount |
| 96 | deposited into the Educational Enhancement Trust Fund shall be |
| 97 | the collection allowance remaining after resolution of liability |
| 98 | for all of the tax, interest, and penalty due on that return or |
| 99 | underpayment of tax. The provisions of this paragraph shall not |
| 100 | apply to s. 212.0305 and to any other tax, fee, or levy that is |
| 101 | administered, collected, and enforced pursuant to the procedures |
| 102 | under chapter 212. |
| 103 | Section 2. Notwithstanding the provisions of chapter 120, |
| 104 | Florida Statutes, the Department of Revenue may adopt rules to |
| 105 | carry out the amendments made by this act to s. 212.12, Florida |
| 106 | Statutes. |
| 107 | Section 3. The sum of $236,465 is appropriated from the |
| 108 | General Revenue Fund to the Department of Revenue for the |
| 109 | purpose of administering the amendments to s. 212.12, Florida |
| 110 | Statutes, made by this act. |
| 111 | Section 4. The Department of Revenue shall retain all of |
| 112 | the dealer collection allowance revenues directed to be |
| 113 | deposited into the Educational Enhancement Trust Fund until the |
| 114 | $236,465 general revenue appropriation is recovered. The |
| 115 | $236,465 retained by the department shall be deposited into the |
| 116 | General Revenue Fund. |
| 117 | Section 5. This act shall take effect January 1, 2006. |