Amendment
Bill No. 1813

Amendment No. 898813

CHAMBER ACTION
Senate		House
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1	Representative(s) Brummer offered the following:
2
3	Amendment to Senate Amendment (552744) (with title
4	amendment)
5	On page 20, line 14, through page 23, line 17, remove all
6	of said lines, and insert:
7	Section 16.  Effective July 1, 2005, paragraph (ccc) is
8	added to subsection (7) of section 212.08, Florida Statutes, to
9	read:
10	212.08  Sales, rental, use, consumption, distribution, and
11	storage tax; specified exemptions.--The sale at retail, the
12	rental, the use, the consumption, the distribution, and the
13	storage to be used or consumed in this state of the following
14	are hereby specifically exempt from the tax imposed by this
15	chapter.
16	(7)  MISCELLANEOUS EXEMPTIONS.--Exemptions provided to any
17	entity by this chapter do not inure to any transaction that is
18	otherwise taxable under this chapter when payment is made by a
19	representative or employee of the entity by any means,
20	including, but not limited to, cash, check, or credit card, even
21	when that representative or employee is subsequently reimbursed
22	by the entity. In addition, exemptions provided to any entity by
23	this subsection do not inure to any transaction that is
24	otherwise taxable under this chapter unless the entity has
25	obtained a sales tax exemption certificate from the department
26	or the entity obtains or provides other documentation as
27	required by the department. Eligible purchases or leases made
28	with such a certificate must be in strict compliance with this
29	subsection and departmental rules, and any person who makes an
30	exempt purchase with a certificate that is not in strict
31	compliance with this subsection and the rules is liable for and
32	shall pay the tax. The department may adopt rules to administer
33	this subsection.
34	(ccc)  Advertising materials distributed by mail in an
35	envelope.--Likewise exempt are materials consisting exclusively
36	of advertising that are distributed by mail in an envelope, such
37	as individual coupons or other individual cards, sheets, or
38	pages of printed advertising, for ten or more persons, that are
39	distributed free of charge on a monthly, bimonthly, or other
40	regular basis.
41	Section 17.  Paragraph (a) of subsection (2) of section
42	212.12, Florida Statutes, is amended, present paragraph (e) of
43	that subsection is redesignated as paragraph (f), present
44	paragraph (f) of that subsection is redesignated as paragraph
45	(g) and amended, and a new paragraph (e) is added to that
46	subsection, to read:
47	212.12  Dealer's credit for collecting tax; penalties for
48	noncompliance; powers of Department of Revenue in dealing with
49	delinquents; brackets applicable to taxable transactions;
50	records required.--
51	(2)
52	(a)  When any person required hereunder to make any return
53	or to pay any tax or fee imposed by this chapter either fails to
54	timely file such return or fails to pay the tax or fee shown due
55	on the return within the time required hereunder, in addition to
56	all other penalties provided herein and by the laws of this
57	state in respect to such taxes or fees, a specific penalty shall
58	be added to the tax or fee in the amount of 10 percent of either
59	the tax or fee shown on the return that is not timely filed or
60	any tax or fee not paid timely. The penalty may not be less than
61	$50 for failure to timely file a tax return required by s.
62	212.11(1) or timely pay the tax or fee shown due on the return
63	except as provided in s. 213.21(11)(10). If a person fails to
64	timely file a return required by s. 212.11(1) and to timely pay
65	the tax or fee shown due on the return, only one penalty of 10
66	percent, which may not be less than $50, shall be imposed.
67	(e)  A person who willfully attempts in any manner to evade
68	any tax, surcharge, or fee imposed under this chapter or the
69	payment thereof is, in addition to any other penalties provided
70	by law, liable for a specific penalty in the amount of 100
71	percent of the tax, surcharge, or fee and commits a felony of
72	the third degree, punishable as provided in s. 775.082, s.
73	775.083, or s. 775.084.
74	(g)(f)  A dealer who files Dealers filing a consolidated
75	return pursuant to s. 212.11(1)(e) is shall be subject to the
76	penalty established in paragraph (f) (e) unless the dealer has
77	paid the required estimated tax for his or her consolidated
78	return as a whole without regard to each location. If the dealer
79	fails to pay the required estimated tax for his or her
80	consolidated return as a whole, each filing location shall stand
81	on its own with respect to calculating penalties pursuant to
82	paragraph (f) (e).
83	Section 18.  Paragraph (l) of subsection (7) of section
84	213.053, Florida Statutes, is amended to read:
85	213.053  Confidentiality and information sharing.--
86	(7)  Notwithstanding any other provision of this section,
87	the department may provide:
88	(l)  Information relative to chapter 212 and the Bill of
89	Lading Program to the Office of Agriculture Law Enforcement of
90	the Department of Agriculture and Consumer Services in the
91	conduct of its official duties the Bill of Lading Program. This
92	information is limited to the business name and whether the
93	business is in compliance with chapter 212.
94	Section 19.  Paragraph (b) of subsection (5) of section
95	212.13, Florida Statutes, is amended to read:
96	212.13  Records required to be kept; power to inspect;
97	audit procedure.--
98	(5)
99	(b)  Such written notification shall contain:
100	1.  The approximate date on which the auditor is scheduled
101	to begin the audit.
102	2.  A reminder that all of the records, receipts, invoices,
103	resale certificates, and related documentation of the taxpayer
104	must be made available to the auditor.
105	3.  A notification of the availability of having the audit
106	conducted pursuant to s. 213.285 by a qualified practitioner
107	instead of the department.
108	4.3.  Any other requests or suggestions the department may
109	deem necessary.
110	Section 20.  Subsection (8) of section 213.21, Florida
111	Statutes, is amended, subsection (9) of said section is
112	renumbered as subsection (10), subsection (10) of said section
113	is renumbered as subsection (11) and amended, and a new
114	subsection (9) is added to said section, to read:
115	213.21  Informal conferences; compromises.--
116	(8)  In order to determine whether certified audits are an
117	effective tool in the overall state tax collection effort, the
118	executive director of the department or the executive director's
119	designee shall settle or compromise penalty liabilities of
120	taxpayers who participate in the certified audits project before
121	the department issues a notice of intent to audit. As further
122	incentive for participating in the program before the department
123	issues a notice of intent to audit, the department shall abate
124	the first $25,000 of any interest liability and 25 percent of
125	any interest due in excess of the first $25,000. A settlement or
126	compromise of penalties or interest pursuant to this subsection
127	shall not be subject to the provisions of paragraph (3)(a),
128	except for the requirement relating to confidentiality of
129	records. The department may consider an additional compromise of
130	tax or interest pursuant to the provisions of paragraph (3)(a).
131	This subsection does not apply to any liability related to taxes
132	collected but not remitted to the department.
133	(9)  For taxpayers that participate in the certified audit
134	program after a written notification of intent to audit has been
135	issued by the department, the department shall only compromise
136	penalty based upon reasonable cause pursuant to s. 213.21 and
137	shall abate the first $10,000 of any interest liability and 10
138	percent of any interest due in excess of the first $10,000.
139	(11)(10)(a)  Effective July 1, 2003, Notwithstanding any
140	other provision of law and solely for the purpose of
141	administering the taxes tax imposed by ss. 125.0104 and 125.0108
142	and chapter 212, except s. 212.0606, under the circumstances set
143	forth in this subsection, the department shall settle or
144	compromise a taxpayer's liability for penalty without requiring
145	the taxpayer to submit a written request for compromise or
146	settlement.
147	(b)  For taxpayers who file returns and remit tax on a
148	monthly basis:
149	1.  Any penalty related to a noncompliant filing event
150	shall be settled or compromised if the taxpayer has:
151	a.  No noncompliant filing event in the immediately
152	preceding 12-month period and no unresolved chapter 212
153	liability under s. 125.0104, s. 125.0108, or chapter 212
154	resulting from a noncompliant filing event; or
155	b.  One noncompliant filing event in the immediately
156	preceding 12-month period, resolution of the current
157	noncompliant filing event through payment of tax and interest
158	and the filing of a return within 30 days after notification by
159	the department, and no unresolved chapter 212 liability under s.
160	125.0104, s. 125.0108, or chapter 212 resulting from a
161	noncompliant filing event.
162	2.  If a taxpayer has two or more noncompliant filing
163	events in the immediately preceding 12-month period, the
164	taxpayer shall be liable, absent a showing by the taxpayer that
165	the noncompliant filing event was due to extraordinary
166	circumstances, for the penalties provided in s. 125.0104 or s.
167	125.0108 and s. 212.12, including loss of collection allowance,
168	and shall be reported to a credit bureau.
169	(c)  For taxpayers who file returns and remit tax on a
170	quarterly basis, any penalty related to a noncompliant filing
171	event shall be settled or compromised if the taxpayer has no
172	noncompliant filing event in the immediately preceding 12-month
173	period and no unresolved chapter 212 liability under s.
174	125.0104, s. 125.0108, or chapter 212 resulting from a
175	noncompliant filing event.
176	(d)  For purposes of this subsection:
177	1.  "Noncompliant filing event" means a failure to timely
178	file a complete and accurate return required under s. 125.0104,
179	s. 125.0108, or chapter 212 or a failure to timely pay the
180	amount of tax reported on a return required by s. 125.0104, s.
181	125.0108, or chapter 212.
182	2.  "Extraordinary circumstances" means the occurrence of
183	events beyond the control of the taxpayer, such as, but not
184	limited to, the death of the taxpayer, acts of war or terrorism,
185	natural disasters, fire, or other casualty, or the nonfeasance
186	or misfeasance of the taxpayer's employees or representatives
187	responsible for compliance with s. 125.0104, s. 125.0108, or the
188	provisions of chapter 212. With respect to the acts of an
189	employee or representative, the taxpayer must show that the
190	principals of the business lacked actual knowledge of the
191	noncompliance and that the noncompliance was resolved within 30
192	days after actual knowledge.
193	Section 21.  The amendment to s. 213.21(10), Florida
194	Statutes, made by this act, shall operate retroactively to July
195	1, 2003.
196	Section 22.  Paragraph (d) of subsection (1), paragraph (b)
197	of subsection (2), paragraphs (b) and (c) of subsection (4), and
198	subsection (7) of section 213.285, Florida Statutes, are amended
199	to read:
200	213.285  Certified audits.--
201	(1)  As used in this section, the term:
202	(d)  "Qualified practitioner" means a certified public
203	accountant who is licensed to practice in Florida and who has
204	completed the certification program. For certified audits
205	entered into after the department issues a notice of intent to
206	audit, a qualified practitioner cannot have performed
207	accounting, auditing, management consulting, or tax services for
208	the taxpayer or person that is a subsidiary, parent, sister, or
209	other affiliate of the taxpayer during the 60-month period
210	immediately preceding the written notice of intent to conduct an
211	audit. Furthermore, for certified audits entered into after the
212	department issues a notice of intent to audit, the qualified
213	practitioner may not perform accounting, auditing, management
214	consulting, or tax services for any taxpayer or person that is a
215	subsidiary, parent, sister, or other affiliate of the taxpayer
216	for a period of 36 months after the department's approval of the
217	certified audit report.
218	(2)
219	(b)1.  As an incentive for taxpayers to incur the costs of
220	a certified audit, the department shall compromise penalties and
221	abate interest due on any tax liabilities revealed by a
222	certified audit as provided in s. 213.21. This authority to
223	compromise penalties or abate interest shall not apply to any
224	liability for taxes that were collected by the participating
225	taxpayer but that were not remitted to the department.
226	2.  If the taxpayer's request to participate in the
227	certified audit program is submitted after the taxpayer has been
228	issued a written notice of intent to conduct an audit, the
229	department shall compromise penalties on any tax liabilities
230	revealed by a certified audit as provided in s. 213.21. This
231	authority to compromise penalties shall not apply to any
232	liability for taxes that were collected by the participating
233	taxpayer but that were not remitted to the department.
234	(4)
235	(b)1.  If the taxpayer has not been issued a written notice
236	of intent to conduct an audit, the taxpayer shall be a
237	participating taxpayer and the department shall so advise the
238	qualified practitioner in writing within 10 days after receipt
239	of the engagement notice. However, the department may exclude a
240	taxpayer from a certified audit or may limit the taxes or
241	periods subject to the certified audit on the basis that the
242	department has previously conducted an audit, that it is in the
243	process of conducting an investigation or other examination of
244	the taxpayer's records, or for just cause determined solely by
245	the department.
246	2.  If the taxpayer has been issued a written notice of
247	intent to conduct an audit and the department has not begun its
248	field audit work, the taxpayer may be a participating taxpayer,
249	and the department shall so advise the qualified practitioner in
250	writing within 10 days after receipt of the engagement notice.
251	An engagement notice must be submitted within 45 days after the
252	written notice of intent to conduct an audit.
253	(c)1.  Notice of the qualification of a taxpayer for a
254	certified audit shall toll the statute of limitations provided
255	in s. 95.091 with respect to the taxpayer for the tax and
256	periods covered by the engagement.
257	2.  If the taxpayer's request to participate in the
258	certified audit program is submitted after the taxpayer has been
259	issued a written notice of intent to conduct an audit, the
260	written notice of intent to conduct an audit issued by the
261	department shall toll the statute of limitations provided in
262	s.95.091.
263	(7)  To implement the certified audits project, the
264	department shall have authority to adopt rules relating to:
265	(a)  The availability of the certification program required
266	for participation in the project;
267	(b)  The requirements and basis for establishing just cause
268	for approval or rejection of participation by taxpayers;
269	(c)  The requirements and basis for establishing just cause
270	for suspension, rejection, or cancellation of the department's
271	certification of a qualified practitioner.
272	(d)(c)  Procedures for assessment, collection, and payment
273	of liabilities or refund of overpayments and provisions for
274	taxpayers to obtain informal and formal review of certified
275	audit results;
276	(e)(d)  The nature, frequency, and basis for the
277	department's review of certified audits conducted by qualified
278	practitioners, including the requirements for documentation,
279	work-paper retention and access, and reporting; and
280	(f)(e)  Requirements for conducting certified audits and
281	for review of agreed-upon procedures.
282	(g)  Requirements to prevent the qualified practitioner who
283	conducted the certified audit after the department issued a
284	notice of intent to audit from representing the taxpayer in the
285	informal conference procedures provided in s. 213.21.
286
287	================ T I T L E  A M E N D M E N T =============
288	On page 49, lines 15-18, remove all of said lines, and
289	insert:
290	amending s. 212.08, F.S.; exempting certain advertising
291	materials distributed by mail in an envelope; amending s.
292	212.13, F.S.; specifying an additional audit notification notice
293	requirement; amending s. 213.21, F.S.; clarifying application of
294	certain certified audit program procedures; providing
295	limitations on department authorization to compromise penalties
296	and abate interest for certain taxpayers; specifying which taxes
297	qualify for the automatic penalty compromise or settlement of
298	liability; providing for retroactivity; amending s. 213.285,
299	F.S.; revising provisions relating to certified audits; revising
300	a definition, department authority to compromise penalties,
301	participation by a taxpayer in certain audits, statutes of
302	limitation, and department authority to adopt rules for the
303	certified audits project; amending s.

CODING: Words stricken are deletions; words underlined are additions.