Senate Bill sb2032e1

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    CS for SB 2032                                 First Engrossed



  1                      A bill to be entitled

  2         An act relating to tax administration; amending

  3         s. 95.091, F.S.; adding a cross-reference;

  4         amending s. 198.32, F.S.; allowing an estate

  5         that is not required to file a federal tax

  6         return to file with the clerk of the court an

  7         affidavit attesting that no Florida estate tax

  8         is due, regardless of the decedent's date of

  9         death; amending s. 199.135, F.S.; providing

10         special provisions for the imposition of the

11         nonrecurring intangibles tax imposed by this

12         section on the sale of a timeshare interest in

13         a timeshare plan; amending s. 201.02, F.S.;

14         providing special provisions for the imposition

15         of the tax on deeds or other instruments

16         relating to real property or interests in real

17         property imposed by this section on the sale of

18         a timeshare interest in a timeshare plan;

19         amending s. 201.08, F.S.; providing special

20         provisions for the imposition of the tax on

21         promissory or nonnegotiable notes or written

22         obligations to pay money imposed by this

23         section on the sale of a timeshare interest in

24         a timeshare plan; amending s. 202.11, F.S.;

25         providing an additional definition of the term

26         "service address" for the purposes of the tax

27         on communications services; amending ss.

28         206.09, 206.095, 206.14, and 206.485, F.S.,

29         relating to fuel taxes; providing for the

30         distribution of penalties; amending s. 206.27,

31         F.S.; allowing the Department of Revenue the


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 1         option of posting the list of active and

 2         canceled fuel licenses on the departmental web

 3         site or mailing it to licensees; amending s.

 4         212.0305, F.S.; permitting golf courses to be

 5         built with the proceeds of a charter county

 6         convention development tax; amending s. 212.05,

 7         F.S.; clarifying the tax treatment of

 8         nonresident purchasers of aircraft; amending s.

 9         212.06, F.S.; clarifying that sales tax is not

10         due on any vessel imported into this state for

11         the sole purpose of being offered for retail

12         sale by a registered Florida yacht broker or

13         dealer under certain conditions; amending s.

14         212.12, F.S.; including in the definition of

15         tax fraud willful attempts to evade a tax,

16         surcharge, or fee imposed by chapter 212, F.S.;

17         amending s. 213.053, F.S.; authorizing expanded

18         sharing of confidential information between the

19         Department of Revenue and the Department of

20         Agriculture and Consumer Services for the Bill

21         of Lading Program; amending s. 213.21, F.S.;

22         specifying which taxes qualify for the

23         automatic penalty compromise or settlement of

24         liability; providing for retroactivity;

25         amending s. 213.27, F.S.; clarifying that the

26         notification by the Department of Revenue to

27         the taxpayer that the taxpayer's account is

28         being referred to a debt collection agency must

29         be at least 30 days before the referral;

30         amending s. 215.26, F.S.; adding a

31         cross-reference; amending s. 252.372, F.S.;


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 1         authorizing the Florida Surplus Lines Service

 2         Office to collect the Emergency Management,

 3         Preparedness, and Assistance Trust Fund

 4         surcharge and deposit the proceeds into the

 5         trust fund; amending s. 443.131, F.S.;

 6         requiring employers who transfer their business

 7         to a related entity to retain their

 8         unemployment experience history under certain

 9         circumstances; providing penalties; amending s.

10         443.141, F.S.; authorizing the Department of

11         Revenue to send to employers by regular mail

12         notices of unemployment tax assessments and

13         notices of the filing of liens; creating s.

14         624.50921, F.S.; creating a statute of

15         limitations for assessments of the insurance

16         premium tax if the amount of corporate income

17         tax or a workers' compensation administrative

18         assessment paid by the insurer is adjusted

19         through an amended return or refund; amending

20         s. 624.509, F.S.; providing for an alternative

21         method of calculating a tax credit against the

22         insurance premium tax for certain groups of

23         affiliated corporations; clarifying the

24         definition of the term "employees" for purposes

25         of calculating such a credit; allowing a salary

26         credit for employees of a service company

27         subsidiary of a mutual insurance holding

28         company; providing an exception; authorizing

29         the department to adopt rules to administer

30         such a credit; providing an appropriation;

31         providing legislative intent regarding the


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 1         meaning of the term "employees" for purposes of

 2         determining the salary credit against the

 3         insurance premium tax; reviving and readopting

 4         s. 213.21, F.S., relating to informal

 5         conference procedures within the Department of

 6         Revenue; exempting from the documentary stamp

 7         tax certain security agreements recorded in

 8         error or by mistake; creating s. 196.1999,

 9         F.S.; providing retroactivity; providing an

10         exemption from ad valorem taxes for certain

11         space laboratories; repealing s. 196.1994,

12         F.S., which expired effective July 1, 2004, and

13         which provided an exemption from ad valorem

14         taxes for certain space laboratories; amending

15         s. 201.23, F.S.; defining the terms "banking

16         organization" and "international banking

17         transaction," relating to exemption from

18         certain excise taxes; providing effective

19         dates.

20  

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

22  

23         Section 1.  Paragraph (a) of subsection (3) of section

24  95.091, Florida Statutes, is amended to read:

25         95.091  Limitation on actions to collect taxes.--

26         (3)(a)  With the exception of taxes levied under

27  chapter 198 and tax adjustments made pursuant to ss. s. 220.23

28  and 624.50921, the Department of Revenue may determine and

29  assess the amount of any tax, penalty, or interest due under

30  any tax enumerated in s. 72.011 which it has authority to

31  administer and the Department of Business and Professional


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 1  Regulation may determine and assess the amount of any tax,

 2  penalty, or interest due under any tax enumerated in s. 72.011

 3  which it has authority to administer:

 4         1.a.  For taxes due before July 1, 1999, within 5 years

 5  after the date the tax is due, any return with respect to the

 6  tax is due, or such return is filed, whichever occurs later;

 7  and for taxes due on or after July 1, 1999, within 3 years

 8  after the date the tax is due, any return with respect to the

 9  tax is due, or such return is filed, whichever occurs later;

10         b.  Effective July 1, 2002, notwithstanding

11  sub-subparagraph a., within 3 years after the date the tax is

12  due, any return with respect to the tax is due, or such return

13  is filed, whichever occurs later;

14         2.  For taxes due before July 1, 1999, within 6 years

15  after the date the taxpayer either makes a substantial

16  underpayment of tax, or files a substantially incorrect

17  return;

18         3.  At any time while the right to a refund or credit

19  of the tax is available to the taxpayer;

20         4.  For taxes due before July 1, 1999, at any time

21  after the taxpayer has filed a grossly false return;

22         5.  At any time after the taxpayer has failed to make

23  any required payment of the tax, has failed to file a required

24  return, or has filed a fraudulent return, except that for

25  taxes due on or after July 1, 1999, the limitation prescribed

26  in subparagraph 1. applies if the taxpayer has disclosed in

27  writing the tax liability to the department before the

28  department has contacted the taxpayer; or

29         6.  In any case in which there has been a refund of tax

30  erroneously made for any reason:

31  


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    CS for SB 2032                                 First Engrossed



 1         a.  For refunds made before July 1, 1999, within 5

 2  years after making such refund; and

 3         b.  For refunds made on or after July 1, 1999, within 3

 4  years after making such refund,

 5  

 6  or at any time after making such refund if it appears that any

 7  part of the refund was induced by fraud or the

 8  misrepresentation of a material fact.

 9         Section 2.  Subsection (2) of section 198.32, Florida

10  Statutes, is amended to read:

11         198.32  Prima facie liability for tax.--

12         (2)  Whenever an estate is not subject to tax under

13  this chapter and is not required to file a return, the

14  personal representative may execute an affidavit attesting

15  that the estate is not taxable. The form of the affidavit

16  shall be prescribed by the department, and shall include, but

17  not be limited to, statements regarding the decedent's

18  domicile and whether a federal estate tax return will be

19  filed, and acknowledgment of the personal representative's

20  personal liability under s. 198.23. This affidavit shall be

21  subject to record and admissible in evidence to show

22  nonliability for tax. This subsection applies to all estates,

23  regardless of the date of death of the decedent.

24         Section 3.  Subsection (5) is added to section 199.135,

25  Florida Statutes, to read:

26         199.135  Due date and payment of nonrecurring tax.--The

27  nonrecurring tax imposed on notes, bonds, and other

28  obligations for payment of money secured by a mortgage, deed

29  of trust, or other lien evidenced by a written instrument

30  presented for recordation shall be due and payable when the

31  instrument is presented for recordation.  If there is no


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    CS for SB 2032                                 First Engrossed



 1  written instrument or if it is not so presented within 30 days

 2  following creation of the obligation, then the tax shall be

 3  due and payable within 30 days following creation of the

 4  obligation.

 5         (5)(a)  In recognition of the special escrow

 6  requirements that apply to sales of timeshare interests in

 7  timeshare plans pursuant to s. 721.08, tax on notes or other

 8  obligations secured by a mortgage, deed of trust, or other

 9  lien upon real property situated in this state executed in

10  conjunction with the sale by a developer of a timeshare

11  interest in a timeshare plan is due and payable on the earlier

12  of the date on which:

13         1.  The mortgage, deed of trust, or other lien is

14  recorded; or

15         2.  All of the conditions precedent to the release of

16  the purchaser's escrowed funds or other property pursuant to

17  s. 721.08(2)(c) have been met, regardless of whether the

18  developer has posted an alternative assurance. Tax due under

19  this subparagraph is due and payable on or before the 20th day

20  of the month following the month in which these conditions

21  were met.

22         (b)1.  If tax has been paid to the department under

23  subparagraph (a)2., and the note, other written obligation,

24  mortgage, deed of trust, or other lien with respect to which

25  the tax was paid is subsequently  recorded, a notation

26  reflecting the prior payment of the tax must be made upon the

27  mortgage or other lien.

28         2.  Notwithstanding paragraph (a), if funds are

29  designated on a closing statement as tax collected from the

30  purchaser, but the mortgage, deed of trust, or other lien with

31  respect to which the tax was collected has not been recorded


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    CS for SB 2032                                 First Engrossed



 1  or filed in this state, the tax must be paid to the department

 2  on or before the 20th day of the month following the month in

 3  which the funds are available for release from escrow, unless

 4  the funds have been refunded to the purchaser.

 5         (c)  The department may adopt rules to administer the

 6  method for reporting tax due under this subsection.

 7         Section 4.  Subsection (10) is added to section 201.02,

 8  Florida Statutes, to read:

 9         201.02  Tax on deeds and other instruments relating to

10  real property or interests in real property.--

11         (10)(a)  In recognition of the special escrow

12  requirements that apply to sales of timeshare interests in

13  timeshare plans pursuant to s. 721.08, tax on deeds or other

14  instruments conveying any interest in Florida real property

15  which are executed in conjunction with the sale by a developer

16  of a timeshare interest in a timeshare plan is due and payable

17  on the earlier of the date on which:

18         1.  The deed or other instrument conveying the interest

19  in Florida real property is recorded; or

20         2.  All of the conditions precedent to the release of

21  the purchaser's escrowed funds or other property pursuant to

22  s. 721.08(2)(c) have been met, regardless of whether the

23  developer has posted an alternative assurance. Tax due

24  pursuant to this subparagraph is due and payable on or before

25  the 20th day of the month following the month in which these

26  conditions were met.

27         (b)1.  If tax has been paid to the department pursuant

28  to subparagraph (a)2., and the deed or other instrument

29  conveying the interest in Florida real property with respect

30  to which the tax was paid is subsequently recorded, a notation

31  reflecting the prior payment of the tax must be made upon the


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    CS for SB 2032                                 First Engrossed



 1  deed or other instrument conveying the interest in Florida

 2  real property.

 3         2.  Notwithstanding paragraph (a), if funds are

 4  designated on a closing statement as tax collected from the

 5  purchaser, but a default or cancellation occurs pursuant to s.

 6  721.08(2)(a) or s. 721.08(2)(b) and no deed or other

 7  instrument conveying interest in Florida real property has

 8  been recorded or delivered to the purchaser, the tax must be

 9  paid to the department on or before the 20th day of the month

10  following the month in which the funds are available for

11  release from escrow unless the funds have been refunded to the

12  purchaser.

13         (c)  The department may adopt rules to administer the

14  method for reporting tax due under this subsection.

15         Section 5.  Subsection (8) is added to section 201.08,

16  Florida Statutes, to read:

17         201.08  Tax on promissory or nonnegotiable notes,

18  written obligations to pay money, or assignments of wages or

19  other compensation; exception.--

20         (8)(a)  In recognition of the special escrow

21  requirements that apply to sales of timeshare interests in

22  timeshare plans pursuant to s. 721.08, tax on notes or other

23  written obligations and mortgages or other evidences of

24  indebtedness executed in conjunction with the sale by a

25  developer of a timeshare interest in a timeshare plan is due

26  and payable on the earlier of the date on which:

27         1.  The note, other written obligation, mortgage or

28  other evidence of indebtedness is recorded or filed in this

29  state; or

30         2.  All of the conditions precedent to the release of

31  the purchaser's escrowed funds or other property pursuant to


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    CS for SB 2032                                 First Engrossed



 1  s. 721.08(2)(c) have been met, regardless of whether the

 2  developer has posted an alternative assurance. Tax due under

 3  this subparagraph is due and payable on or before the 20th day

 4  of the month following the month in which these conditions

 5  were met.

 6         (b)1.  If tax has been paid to the department pursuant

 7  to subparagraph (a)2., and the note, other written obligation,

 8  mortgage, or other evidence of indebtedness with respect to

 9  which the tax was paid is subsequently recorded or filed in

10  this state, a notation reflecting the prior payment of the tax

11  must be made upon the note, other written obligation,

12  mortgage, or other evidence of indebtedness recorded or filed

13  in this state.

14         2.  Notwithstanding paragraph (a), if funds are

15  designated on a closing statement as tax collected from the

16  purchaser, but the note, other written obligation, mortgage,

17  or other evidence of indebtedness with respect to which the

18  tax was collected has not been recorded or filed in this

19  state, the tax shall be paid to the department on or before

20  the 20th day of the month following the month in which the

21  funds are available for release from escrow, unless the funds

22  have been refunded to the purchaser.

23         (c) The department may adopt rules to administer the

24  method for reporting tax due under this subsection.

25         Section 6.  Paragraph (a) of subsection (15) of section

26  202.11, Florida Statutes, is amended to read:

27         202.11  Definitions.--As used in this chapter:

28         (15)  "Service address" means:

29         (a)  Except as otherwise provided in this section:,

30  

31  


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 1         1.  The location of the communications equipment from

 2  which communications services originate or at which

 3  communications services are received by the customer;.

 4         2.  In the case of a communications service paid

 5  through a credit or payment mechanism that does not relate to

 6  a service address, such as a bank, travel, debit, or credit

 7  card, and in the case of third-number and calling-card calls,

 8  the term "service address" means is the address of the central

 9  office, as determined by the area code and the first three

10  digits of the seven-digit originating telephone number; or.

11         3.  If the location of the equipment described in

12  subparagraph 1. is not known and subparagraph 2. is

13  inapplicable, the term "service address" means the location of

14  the customer's primary use of the communications service. For

15  the purposes of this subparagraph, the location of the

16  customer's primary use of a communications service is the

17  residential street address or the business street address of

18  the customer.

19         Section 7.  Subsection (6) is added to section 206.09,

20  Florida Statutes, to read:

21         206.09  Reports from carriers transporting motor fuel

22  or similar products.--

23         (6)  All moneys derived from the penalties imposed by

24  this section shall be deposited into the Fuel Tax Collection

25  Trust Fund, and allocated in the same manner as provided by s.

26  206.875.

27         Section 8.  Subsection (4) is added to section 206.095,

28  Florida Statutes, to read:

29         206.095  Reports from terminal operators.--

30         (4)  All moneys derived from the penalties imposed by

31  this section shall be deposited into the Fuel Tax Collection


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 1  Trust Fund, and allocated in the same manner as provided by s.

 2  206.875.

 3         Section 9.  Subsection (6) is added to section 206.14,

 4  Florida Statutes, to read:

 5         206.14  Inspection of records; audits; hearings; forms;

 6  rules and regulations.--

 7         (6)  All moneys derived from the penalties imposed by

 8  this section shall be deposited into the Fuel Tax Collection

 9  Trust Fund, and allocated in the same manner as provided by s.

10  206.875.

11         Section 10.  Subsection (1) of section 206.27, Florida

12  Statutes, is amended to read:

13         206.27  Records and files as public records.--

14         (1)  The records and files in the office of the

15  department appertaining to parts I and II of this chapter

16  shall be available in Tallahassee to the public at any time

17  during business hours. The department shall prepare and make

18  available a list each month of all current licensed terminal

19  suppliers, importers, exporters, and wholesalers which also

20  shall include all new licenses issued and all licenses

21  canceled during the past 12 months, and mail a copy thereof to

22  each licensee. Such list shall be used to verify license

23  numbers of purchasers issuing exemption certificates or

24  affidavits.

25         Section 11.  Subsection (3) is added to section

26  206.485, Florida Statutes, to read:

27         206.485  Tracking system reporting requirements.--

28         (3)  All moneys derived from the penalties imposed by

29  this section shall be deposited into the Fuel Tax Collection

30  Trust Fund, and allocated in the same manner as provided by s.

31  206.875.


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 1         Section 12.  Paragraph (b) of subsection (4) of section

 2  212.0305, Florida Statutes, is amended to read:

 3         212.0305  Convention development taxes; intent;

 4  administration; authorization; use of proceeds.--

 5         (4)  AUTHORIZATION TO LEVY; USE OF PROCEEDS; OTHER

 6  REQUIREMENTS.--

 7         (b)  Charter county levy for convention development.--

 8         1.  Each county, as defined in s. 125.011(1), may

 9  impose, under pursuant to an ordinance enacted by the

10  governing body of the county, a levy on the exercise within

11  its boundaries of the taxable privilege of leasing or letting

12  transient rental accommodations described in subsection (3) at

13  the rate of 3 percent of the total consideration charged

14  therefor. The proceeds of this levy shall be known as the

15  charter county convention development tax.

16         2.  All charter county convention development moneys,

17  including any interest accrued thereon, received by a county

18  imposing the levy shall be used as follows:

19         a.  Two-thirds of the proceeds shall be used to extend,

20  enlarge, and improve the largest existing publicly owned

21  convention center in the county.

22         b.  One-third of the proceeds shall be used to

23  construct a new multipurpose convention/coliseum/exhibition

24  center/stadium or the maximum components thereof as funds

25  permit in the most populous municipality in the county.

26         c.  After the completion of any project under

27  sub-subparagraph a., the tax revenues and interest accrued

28  under sub-subparagraph a. may be used to acquire, construct,

29  extend, enlarge, remodel, repair, improve, plan for, operate,

30  manage, or maintain one or more convention centers, stadiums,

31  exhibition halls, arenas, coliseums, or auditoriums, or golf


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 1  courses, and may be used to acquire and construct an intercity

 2  light rail transportation system as described in the Light

 3  Rail Transit System Status Report to the Legislature dated

 4  April 1988, which shall provide a means to transport persons

 5  to and from the largest existing publicly owned convention

 6  center in the county and the hotels north of the convention

 7  center and to and from the downtown area of the most populous

 8  municipality in the county as determined by the county.

 9         d.  After completion of any project under

10  sub-subparagraph b., the tax revenues and interest accrued

11  under sub-subparagraph b. may be used, as determined by the

12  county, to operate an authority created pursuant to

13  subparagraph 4. or to acquire, construct, extend, enlarge,

14  remodel, repair, improve, operate, or maintain one or more

15  convention centers, stadiums, exhibition halls, arenas,

16  coliseums, auditoriums, golf courses, or related buildings and

17  parking facilities in the most populous municipality in the

18  county.

19         e.  For the purposes of completion of any project

20  pursuant to this paragraph, tax revenues and interest accrued

21  may be used:

22         (I)  As collateral, pledged, or hypothecated for

23  projects authorized by this paragraph, including bonds issued

24  in connection therewith; or

25         (II)  As a pledge or capital contribution in

26  conjunction with a partnership, joint venture, or other

27  business arrangement between a municipality and one or more

28  business entities for projects authorized by this paragraph.

29         3.  The governing body of each municipality in which a

30  municipal tourist tax is levied may adopt a resolution

31  prohibiting imposition of the charter county convention


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    CS for SB 2032                                 First Engrossed



 1  development levy within such municipality. If the governing

 2  body adopts such a resolution, the convention development levy

 3  shall be imposed by the county in all other areas of the

 4  county except such municipality. No funds collected pursuant

 5  to this paragraph may be expended in a municipality which has

 6  adopted such a resolution.

 7         4.a.  Before the county enacts an ordinance imposing

 8  the levy, the county shall notify the governing body of each

 9  municipality in which projects are to be developed pursuant to

10  sub-subparagraph 2.a., sub-subparagraph 2.b., sub-subparagraph

11  2.c., or sub-subparagraph 2.d. As a condition precedent to

12  receiving funding, the governing bodies of such municipalities

13  shall designate or appoint an authority that shall have the

14  sole power to:

15         (I)  Approve the concept, location, program, and design

16  of the facilities or improvements to be built in accordance

17  with this paragraph and to administer and disburse such

18  proceeds and any other related source of revenue.

19         (II)  Appoint and dismiss the authority's executive

20  director, general counsel, and any other consultants retained

21  by the authority. The governing body shall have the right to

22  approve or disapprove the initial appointment of the

23  authority's executive director and general counsel.

24         b.  The members of each such authority shall serve for

25  a term of not less than 1 year and shall be appointed by the

26  governing body of such municipality. The annual budget of such

27  authority shall be subject to approval of the governing body

28  of the municipality. If the governing body does not approve

29  the budget, the authority shall use as the authority's budget

30  the previous fiscal year budget.

31  


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 1         c.  The authority, by resolution to be adopted from

 2  time to time, may invest and reinvest the proceeds from the

 3  convention development tax and any other revenues generated by

 4  the authority in the same manner that the municipality in

 5  which the authority is located may invest surplus funds.

 6         5.  The charter county convention development levy

 7  shall be in addition to any other levy imposed pursuant to

 8  this section.

 9         6.  A certified copy of the ordinance imposing the levy

10  shall be furnished by the county to the department within 10

11  days after approval of such ordinance. The effective date of

12  imposition of the levy shall be the first day of any month at

13  least 60 days after enactment of the ordinance.

14         7.  Revenues collected pursuant to this paragraph shall

15  be deposited in a convention development trust fund, which

16  shall be established by the county as a condition precedent to

17  receipt of such funds.

18         Section 13.  Paragraph (a) of subsection (1) of section

19  212.05, Florida Statutes, is amended to read:

20         212.05  Sales, storage, use tax.--It is hereby declared

21  to be the legislative intent that every person is exercising a

22  taxable privilege who engages in the business of selling

23  tangible personal property at retail in this state, including

24  the business of making mail order sales, or who rents or

25  furnishes any of the things or services taxable under this

26  chapter, or who stores for use or consumption in this state

27  any item or article of tangible personal property as defined

28  herein and who leases or rents such property within the state.

29         (1)  For the exercise of such privilege, a tax is

30  levied on each taxable transaction or incident, which tax is

31  due and payable as follows:


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    CS for SB 2032                                 First Engrossed



 1         (a)1.

 2         a.  At the rate of 6 percent of the sales price of each

 3  item or article of tangible personal property when sold at

 4  retail in this state, computed on each taxable sale for the

 5  purpose of remitting the amount of tax due the state, and

 6  including each and every retail sale.

 7         b.  Each occasional or isolated sale of an aircraft,

 8  boat, mobile home, or motor vehicle of a class or type which

 9  is required to be registered, licensed, titled, or documented

10  in this state or by the United States Government shall be

11  subject to tax at the rate provided in this paragraph. The

12  department shall by rule adopt any nationally recognized

13  publication for valuation of used motor vehicles as the

14  reference price list for any used motor vehicle which is

15  required to be licensed pursuant to s. 320.08(1), (2), (3)(a),

16  (b), (c), or (e), or (9).  If any party to an occasional or

17  isolated sale of such a vehicle reports to the tax collector a

18  sales price which is less than 80 percent of the average loan

19  price for the specified model and year of such vehicle as

20  listed in the most recent reference price list, the tax levied

21  under this paragraph shall be computed by the department on

22  such average loan price unless the parties to the sale have

23  provided to the tax collector an affidavit signed by each

24  party, or other substantial proof, stating the actual sales

25  price.  Any party to such sale who reports a sales price less

26  than the actual sales price is guilty of a misdemeanor of the

27  first degree, punishable as provided in s. 775.082 or s.

28  775.083.  The department shall collect or attempt to collect

29  from such party any delinquent sales taxes.  In addition, such

30  party shall pay any tax due and any penalty and interest

31  assessed plus a penalty equal to twice the amount of the


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    CS for SB 2032                                 First Engrossed



 1  additional tax owed.  Notwithstanding any other provision of

 2  law, the Department of Revenue may waive or compromise any

 3  penalty imposed pursuant to this subparagraph.

 4         2.  This paragraph does not apply to the sale of a boat

 5  or aircraft airplane by or through a registered dealer under

 6  this chapter to a purchaser who, at the time of taking

 7  delivery, is a nonresident of this state, does not make his or

 8  her permanent place of abode in this state, and is not engaged

 9  in carrying on in this state any employment, trade, business,

10  or profession in which the boat or aircraft will be used in

11  this state, or is a corporation none of the officers or

12  directors of which is a resident of, or makes his or her

13  permanent place of abode in, this state, or is a noncorporate

14  entity that has no individual vested with authority to

15  participate in the management, direction, or control of the

16  entity's affairs who is a resident of, or makes his or her

17  permanent abode in, this state. For purposes of this

18  exemption, either a registered dealer acting on his or her own

19  behalf as seller, a registered dealer acting as broker on

20  behalf of a seller, or a registered dealer acting as broker on

21  behalf of the purchaser may be deemed to be the selling

22  dealer. This exemption shall not be allowed unless:

23         a.  The purchaser removes a qualifying boat, as

24  described in sub-subparagraph f., from the state within 90

25  days after the date of purchase or the purchaser removes a

26  nonqualifying boat or an aircraft airplane from this state

27  within 10 days after the date of purchase or, when the boat or

28  aircraft airplane is repaired or altered, within 20 days after

29  completion of the repairs or alterations;

30         b.  The purchaser, within 30 days from the date of

31  departure, shall provide the department with written proof


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    CS for SB 2032                                 First Engrossed



 1  that the purchaser licensed, registered, titled, or documented

 2  the boat or aircraft airplane outside the state. If such

 3  written proof is unavailable, within 30 days the purchaser

 4  shall provide proof that the purchaser applied for such

 5  license, title, registration, or documentation.  The purchaser

 6  shall forward to the department proof of title, license,

 7  registration, or documentation upon receipt.

 8         c.  The purchaser, within 10 days of removing the boat

 9  or aircraft airplane from Florida, shall furnish the

10  department with proof of removal in the form of receipts for

11  fuel, dockage, slippage, tie-down, or hangaring from outside

12  of Florida.  The information so provided must clearly and

13  specifically identify the boat or aircraft;

14         d.  The selling dealer, within 5 days of the date of

15  sale, shall provide to the department a copy of the sales

16  invoice, closing statement, bills of sale, and the original

17  affidavit signed by the purchaser attesting that he or she has

18  read the provisions of this section;

19         e.  The seller makes a copy of the affidavit a part of

20  his or her record for as long as required by s. 213.35; and

21         f.  Unless the nonresident purchaser of a boat of 5 net

22  tons of admeasurement or larger intends to remove the boat

23  from this state within 10 days after the date of purchase or

24  when the boat is repaired or altered, within 20 days after

25  completion of the repairs or alterations, the nonresident

26  purchaser shall apply to the selling dealer for a decal which

27  authorizes 90 days after the date of purchase for removal of

28  the boat.  The department is authorized to issue decals in

29  advance to dealers.  The number of decals issued in advance to

30  a dealer shall be consistent with the volume of the dealer's

31  past sales of boats which qualify under this sub-subparagraph.


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    CS for SB 2032                                 First Engrossed



 1  The selling dealer or his or her agent shall mark and affix

 2  the decals to qualifying boats in the manner prescribed by the

 3  department, prior to delivery of the boat.

 4         (I)  The department is hereby authorized to charge

 5  dealers a fee sufficient to recover the costs of decals

 6  issued.

 7         (II)  The proceeds from the sale of decals will be

 8  deposited into the administrative trust fund.

 9         (III)  Decals shall display information to identify the

10  boat as a qualifying boat under this sub-subparagraph,

11  including, but not limited to, the decal's date of expiration.

12         (IV)  The department is authorized to require dealers

13  who purchase decals to file reports with the department and

14  may prescribe all necessary records by rule. All such records

15  are subject to inspection by the department.

16         (V)  Any dealer or his or her agent who issues a decal

17  falsely, fails to affix a decal, mismarks the expiration date

18  of a decal, or fails to properly account for decals will be

19  considered prima facie to have committed a fraudulent act to

20  evade the tax and will be liable for payment of the tax plus a

21  mandatory penalty of 200 percent of the tax, and shall be

22  liable for fine and punishment as provided by law for a

23  conviction of a misdemeanor of the first degree, as provided

24  in s. 775.082 or s. 775.083.

25         (VI)  Any nonresident purchaser of a boat who removes a

26  decal prior to permanently removing the boat from the state,

27  or defaces, changes, modifies, or alters a decal in a manner

28  affecting its expiration date prior to its expiration, or who

29  causes or allows the same to be done by another, will be

30  considered prima facie to have committed a fraudulent act to

31  evade the tax and will be liable for payment of the tax plus a


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    CS for SB 2032                                 First Engrossed



 1  mandatory penalty of 200 percent of the tax, and shall be

 2  liable for fine and punishment as provided by law for a

 3  conviction of a misdemeanor of the first degree, as provided

 4  in s. 775.082 or s. 775.083.

 5         (VII)  The department is authorized to adopt rules

 6  necessary to administer and enforce this subparagraph and to

 7  publish the necessary forms and instructions.

 8         (VIII)  The department is hereby authorized to adopt

 9  emergency rules pursuant to s. 120.54(4) to administer and

10  enforce the provisions of this subparagraph.

11  

12  If the purchaser fails to remove the qualifying boat from this

13  state within 90 days after purchase or a nonqualifying boat or

14  an aircraft airplane from this state within 10 days after

15  purchase or, when the boat or aircraft airplane is repaired or

16  altered, within 20 days after completion of such repairs or

17  alterations, or permits the boat or aircraft airplane to

18  return to this state within 6 months from the date of

19  departure, or if the purchaser fails to furnish the department

20  with any of the documentation required by this subparagraph

21  within the prescribed time period, the purchaser shall be

22  liable for use tax on the cost price of the boat or aircraft

23  airplane and, in addition thereto, payment of a penalty to the

24  Department of Revenue equal to the tax payable.  This penalty

25  shall be in lieu of the penalty imposed by s. 212.12(2) and is

26  mandatory and shall not be waived by the department.  The

27  90-day period following the sale of a qualifying boat tax

28  exempt to a nonresident may not be tolled for any reason.

29  Notwithstanding other provisions of this paragraph to the

30  contrary, an aircraft purchased in this state under the

31  provisions of this paragraph may be returned to this state for


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    CS for SB 2032                                 First Engrossed



 1  repairs within 6 months after the date of its departure

 2  without being in violation of the law and without incurring

 3  liability for the payment of tax or penalty on the purchase

 4  price of the aircraft if the aircraft is removed from this

 5  state within 20 days after the completion of the repairs and

 6  if such removal can be demonstrated by invoices for fuel,

 7  tie-down, hangar charges issued by out-of-state vendors or

 8  suppliers, or similar documentation.

 9         Section 14.  Paragraph (e) of subsection (1) of section

10  212.06, Florida Statutes, is amended to read:

11         212.06  Sales, storage, use tax; collectible from

12  dealers; "dealer" defined; dealers to collect from purchasers;

13  legislative intent as to scope of tax.--

14         (1)

15         (e)1.  Notwithstanding any other provision of this

16  chapter, tax shall not be imposed on any vessel registered

17  under pursuant to s. 328.52 by a vessel dealer or vessel

18  manufacturer with respect to a vessel used solely for

19  demonstration, sales promotional, or testing purposes. The

20  term "promotional purposes" shall include, but not be limited

21  to, participation in fishing tournaments.  For the purposes of

22  this paragraph, "promotional purposes" means the entry of the

23  vessel in a marine-related event where prospective purchasers

24  would be in attendance, where the vessel is entered in the

25  name of the dealer or manufacturer, and where the vessel is

26  clearly marked as for sale, on which vessel the name of the

27  dealer or manufacturer is clearly displayed, and which vessel

28  has never been transferred into the dealer's or manufacturer's

29  accounting books from an inventory item to a capital asset for

30  depreciation purposes.

31  


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    CS for SB 2032                                 First Engrossed



 1         2.  The provisions of this paragraph do not apply to

 2  any vessel when used for transporting persons or goods for

 3  compensation; when offered, let, or rented to another for

 4  consideration; when offered for rent or hire as a means of

 5  transportation for compensation; or when offered or used to

 6  provide transportation for persons solicited through personal

 7  contact or through advertisement on a "share expense" basis.

 8         3.  Notwithstanding any other provision of this

 9  chapter, tax may not be imposed on any vessel imported into

10  this state for the sole purpose of being offered for sale at

11  retail by a yacht broker or yacht dealer registered in this

12  state if the vessel remains under the care, custody, and

13  control of the registered broker or dealer and the owner of

14  the vessel does not make personal use of the vessel during

15  that time. The provisions of this chapter govern the

16  taxability of any sale or use of the vessel subsequent to its

17  importation under this provision.

18         Section 15.  Present paragraph (e) of subsection (2) of

19  section 212.12, Florida Statutes, is redesignated as paragraph

20  (f), present paragraph (f) of that subsection is redesignated

21  as paragraph (g) and amended, and a new paragraph (e) is added

22  to that subsection, to read:

23         212.12  Dealer's credit for collecting tax; penalties

24  for noncompliance; powers of Department of Revenue in dealing

25  with delinquents; brackets applicable to taxable transactions;

26  records required.--

27         (2)

28         (e)  A person who willfully attempts in any manner to

29  evade any tax, surcharge, or fee imposed under this chapter or

30  the payment thereof is, in addition to any other penalties

31  provided by law, liable for a specific penalty in the amount


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    CS for SB 2032                                 First Engrossed



 1  of 100 percent of the tax, surcharge, or fee, and commits a

 2  felony of the third degree, punishable as provided in s.

 3  775.082, s. 775.083, or s. 775.084.

 4         (g)(f)  A dealer who files Dealers filing a

 5  consolidated return pursuant to s. 212.11(1)(e) is shall be

 6  subject to the penalty established in paragraph (e) unless the

 7  dealer has paid the required estimated tax for his or her

 8  consolidated return as a whole without regard to each

 9  location.  If the dealer fails to pay the required estimated

10  tax for his or her consolidated return as a whole, each filing

11  location shall stand on its own with respect to calculating

12  penalties pursuant to paragraph (f) (e).

13         Section 16.  Paragraph (l) of subsection (7) of section

14  213.053, Florida Statutes, is amended to read:

15         213.053  Confidentiality and information sharing.--

16         (7)  Notwithstanding any other provision of this

17  section, the department may provide:

18         (l)  Information relative to chapter 212 and the Bill

19  of Lading Program to the Office of Agriculture Law Enforcement

20  of the Department of Agriculture and Consumer Services in the

21  conduct of its official duties the Bill of Lading Program.

22  This information is limited to the business name and whether

23  the business is in compliance with chapter 212.

24         Section 17.  Subsection (10) of section 213.21, Florida

25  Statutes, is amended to read:

26         213.21  Informal conferences; compromises.--

27         (10)(a)  Effective July 1, 2003, Notwithstanding any

28  other provision of law and solely for the purpose of

29  administering the taxes tax imposed by ss. 125.0104 and

30  125.0108, and chapter 212, except s. 212.0606, under the

31  circumstances set forth in this subsection, the department


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    CS for SB 2032                                 First Engrossed



 1  shall settle or compromise a taxpayer's liability for penalty

 2  without requiring the taxpayer to submit a written request for

 3  compromise or settlement.

 4         (b)  For taxpayers who file returns and remit tax on a

 5  monthly basis:

 6         1.  Any penalty related to a noncompliant filing event

 7  shall be settled or compromised if the taxpayer has:

 8         a.  No noncompliant filing event in the immediately

 9  preceding 12-month period and no unresolved chapter 212

10  liability under s. 125.0104, s. 125.0108, or chapter 212

11  resulting from a noncompliant filing event; or

12         b.  One noncompliant filing event in the immediately

13  preceding 12-month period, resolution of the current

14  noncompliant filing event through payment of tax and interest

15  and the filing of a return within 30 days after notification

16  by the department, and no unresolved chapter 212 liability

17  under s. 125.0104, s. 125.0108, or chapter 212 resulting from

18  a noncompliant filing event.

19         2.  If a taxpayer has two or more noncompliant filing

20  events in the immediately preceding 12-month period, the

21  taxpayer shall be liable, absent a showing by the taxpayer

22  that the noncompliant filing event was due to extraordinary

23  circumstances, for the penalties provided in s. 125.0104 or s.

24  125.0108 and s. 212.12, including loss of collection

25  allowance, and shall be reported to a credit bureau.

26         (c)  For taxpayers who file returns and remit tax on a

27  quarterly basis, any penalty related to a noncompliant filing

28  event shall be settled or compromised if the taxpayer has no

29  noncompliant filing event in the immediately preceding

30  12-month period and no unresolved chapter 212 liability under

31  


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    CS for SB 2032                                 First Engrossed



 1  s. 125.0104, s. 125.0108, or chapter 212 resulting from a

 2  noncompliant filing event.

 3         (d)  For purposes of this subsection:

 4         1.  "Noncompliant filing event" means a failure to

 5  timely file a complete and accurate return required under s.

 6  125.0104, s. 125.0108, or chapter 212 or a failure to timely

 7  pay the amount of tax reported on a return required by s.

 8  125.0104, s. 125.0108, or chapter 212.

 9         2.  "Extraordinary circumstances" means the occurrence

10  of events beyond the control of the taxpayer, such as, but not

11  limited to, the death of the taxpayer, acts of war or

12  terrorism, natural disasters, fire, or other casualty, or the

13  nonfeasance or misfeasance of the taxpayer's employees or

14  representatives responsible for compliance with s. 125.0104,

15  s. 125.0108, or the provisions of chapter 212. With respect to

16  the acts of an employee or representative, the taxpayer must

17  show that the principals of the business lacked actual

18  knowledge of the noncompliance and that the noncompliance was

19  resolved within 30 days after actual knowledge.

20         Section 18.  The amendment to section 213.21(10),

21  Florida Statutes, as made by this act, shall operate

22  retroactively to July 1, 2003.

23         Section 19.  Subsections (1) and (2) of section 213.27,

24  Florida Statutes, are amended to read:

25         213.27  Contracts with debt collection agencies and

26  certain vendors.--

27         (1)  The Department of Revenue may, for the purpose of

28  collecting any delinquent taxes due from a taxpayer, including

29  taxes for which a bill or notice has been generated, contract

30  with any debt collection agency or attorney doing business

31  within or without this state for the collection of such


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    CS for SB 2032                                 First Engrossed



 1  delinquent taxes including penalties and interest thereon. The

 2  department may also share confidential information pursuant to

 3  the contract necessary for the collection of delinquent taxes

 4  and taxes for which a billing or notice has been generated.

 5  Contracts will be made pursuant to chapter 287.  The taxpayer

 6  must be notified by mail by the department, its employees, or

 7  its authorized representative at least 30 days prior to

 8  commencing any litigation to recover any delinquent taxes. The

 9  taxpayer must be notified by mail by the department at least

10  30 days prior to the initial assignment by the department of

11  the taxpayer's account for assigning the collection of any

12  taxes by to the debt collection agency.

13         (2)  The department may enter into contracts with any

14  individual or business for the purpose of identifying

15  intangible personal property tax liability.  Contracts may

16  provide for the identification of assets subject to the tax on

17  intangible personal property, the determination of value of

18  such property, the requirement for filing a tax return and the

19  collection of taxes due, including applicable penalties and

20  interest thereon. The department may share confidential

21  information pursuant to the contract necessary for the

22  identification of taxable intangible personal property.

23  Contracts shall be made pursuant to chapter 287.  The taxpayer

24  must be notified by mail by the department at least 30 days

25  prior to the department assigning identification of intangible

26  personal property to an individual or business.

27         Section 20.  Subsection (2) of section 215.26, Florida

28  Statutes, is amended to read:

29         215.26  Repayment of funds paid into State Treasury

30  through error.--

31  


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    CS for SB 2032                                 First Engrossed



 1         (2)  Application for refunds as provided by this

 2  section must be filed with the Chief Financial Officer, except

 3  as otherwise provided in this subsection, within 3 years after

 4  the right to the refund has accrued or else the right is

 5  barred. Except as provided in chapter 198, and s. 220.23, and

 6  s. 624.50921, an application for a refund of a tax enumerated

 7  in s. 72.011, which tax was paid after September 30, 1994, and

 8  before July 1, 1999, must be filed with the Chief Financial

 9  Officer within 5 years after the date the tax is paid, and

10  within 3 years after the date the tax was paid for taxes paid

11  on or after July 1, 1999. The Chief Financial Officer may

12  delegate the authority to accept an application for refund to

13  any state agency, or the judicial branch, vested by law with

14  the responsibility for the collection of any tax, license, or

15  account due. The application for refund must be on a form

16  approved by the Chief Financial Officer and must be

17  supplemented with additional proof the Chief Financial Officer

18  deems necessary to establish the claim; provided, the claim is

19  not otherwise barred under the laws of this state. Upon

20  receipt of an application for refund, the judicial branch or

21  the state agency to which the funds were paid shall make a

22  determination of the amount due. If an application for refund

23  is denied, in whole or in part, the judicial branch or such

24  state agency shall notify the applicant stating the reasons

25  therefor. Upon approval of an application for refund, the

26  judicial branch or such state agency shall furnish the Chief

27  Financial Officer with a properly executed voucher authorizing

28  payment.

29         Section 21.  Effective for policies issued or renewed

30  on or after January 1, 2006, section 252.372, Florida

31  Statutes, is amended to read:


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    CS for SB 2032                                 First Engrossed



 1         252.372  Imposition and collection of surcharge.--In

 2  order to provide funds for emergency management, preparedness,

 3  and assistance, an annual surcharge of $2 per policy shall be

 4  imposed on every homeowner's, mobile home owner's, tenant

 5  homeowner's, and condominium unit owner's policy, and an

 6  annual $4 surcharge shall be imposed on every commercial fire,

 7  commercial multiple peril, and business owner's property

 8  insurance policy, issued or renewed on or after May 1, 1993.

 9  The surcharge shall be paid by the policyholder to the

10  insurer.  The insurer shall collect the surcharge and remit it

11  to the Department of Revenue, which shall collect, administer,

12  audit, and enforce the surcharge pursuant to s. 624.5092.  The

13  surcharge is not to be considered premiums of the insurer;

14  however, nonpayment of the surcharge by the insured may be a

15  valid reason for cancellation of the policy. For those

16  policies in which the surplus lines tax and the service fee

17  are collected and remitted to the Surplus Lines Service

18  Office, as created under s. 626.921, the surcharge must be

19  remitted to the service office at the same time as the surplus

20  lines tax is remitted. All penalties for failure to remit the

21  surplus lines tax and service fee are applicable for those

22  surcharges required to be remitted to the service office. The

23  service office shall deposit all surcharges that it collects

24  into the Emergency Management, Preparedness, and Assistance

25  Trust Fund at least monthly. All proceeds of the surcharge

26  shall be deposited in the Emergency Management, Preparedness,

27  and Assistance Trust Fund and may not be used to supplant

28  existing funding.

29         Section 22.  Effective January 1, 2006, paragraph (e)

30  of subsection (3) of section 443.131, Florida Statutes, is

31  amended, present paragraphs (g), (h), (i), and (j) of that


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    CS for SB 2032                                 First Engrossed



 1  subsection are redesignated as paragraphs (h), (i), (j), and

 2  (k), respectively, and a new paragraph (g) is added to that

 3  subsection to read:

 4         443.131  Contributions.--

 5         (3)  VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT

 6  EXPERIENCE.--

 7         (e)  Assignment of variations from the standard rate.--

 8         1.  The tax collection service provider shall assign a

 9  variation from the standard rate of contributions for each

10  calendar year to each eligible employer. In determining the

11  contribution rate, varying from the standard rate to be

12  assigned each employer, adjustment factors computed under

13  sub-subparagraphs a.-c. shall be added to the benefit ratio.

14  This addition shall be accomplished in two steps by adding a

15  variable adjustment factor and a final adjustment factor. The

16  sum of these adjustment factors computed under

17  sub-subparagraphs a.-c. shall first be algebraically summed.

18  The sum of these adjustment factors shall next be divided by a

19  gross benefit ratio determined as follows: Total benefit

20  payments for the 3-year period described in subparagraph (b)2.

21  shall be charged to employers eligible for a variation from

22  the standard rate, minus excess payments for the same period,

23  divided by taxable payroll entering into the computation of

24  individual benefit ratios for the calendar year for which the

25  contribution rate is being computed. The ratio of the sum of

26  the adjustment factors computed under sub-subparagraphs a.-c.

27  to the gross benefit ratio shall be multiplied by each

28  individual benefit ratio that is less than the maximum

29  contribution rate to obtain variable adjustment factors;

30  except that in any instance in which the sum of an employer's

31  individual benefit ratio and variable adjustment factor


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    CS for SB 2032                                 First Engrossed



 1  exceeds the maximum contribution rate, the variable adjustment

 2  factor shall be reduced in order that the sum equals the

 3  maximum contribution rate. The variable adjustment factor for

 4  each of these employers is multiplied by his or her taxable

 5  payroll entering into the computation of his or her benefit

 6  ratio. The sum of these products shall be divided by the

 7  taxable payroll of the employers who entered into the

 8  computation of their benefit ratios. The resulting ratio shall

 9  be subtracted from the sum of the adjustment factors computed

10  under sub-subparagraphs a.-c. to obtain the final adjustment

11  factor. The variable adjustment factors and the final

12  adjustment factor shall be computed to five decimal places and

13  rounded to the fourth decimal place. This final adjustment

14  factor shall be added to the variable adjustment factor and

15  benefit ratio of each employer to obtain each employer's

16  contribution rate. An employer's contribution rate may not,

17  however, be rounded to less than 0.1 percent.

18         a.  An adjustment factor for noncharge benefits shall

19  be computed to the fifth decimal place and rounded to the

20  fourth decimal place by dividing the amount of noncharge

21  benefits during the 3-year period described in subparagraph

22  (b)2. by the taxable payroll of employers eligible for a

23  variation from the standard rate who have a benefit ratio for

24  the current year which is less than the maximum contribution

25  rate. For purposes of computing this adjustment factor, the

26  taxable payroll of these employers is the taxable payrolls for

27  the 3 years ending June 30 of the current calendar year as

28  reported to the tax collection service provider by September

29  30 of the same calendar year. As used in this

30  sub-subparagraph, the term "noncharge benefits" means benefits

31  paid to an individual from the Unemployment Compensation Trust


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    CS for SB 2032                                 First Engrossed



 1  Fund, but which were not charged to the employment record of

 2  any employer.

 3         b.  An adjustment factor for excess payments shall be

 4  computed to the fifth decimal place, and rounded to the fourth

 5  decimal place by dividing the total excess payments during the

 6  3-year period described in subparagraph (b)2. by the taxable

 7  payroll of employers eligible for a variation from the

 8  standard rate who have a benefit ratio for the current year

 9  which is less than the maximum contribution rate. For purposes

10  of computing this adjustment factor, the taxable payroll of

11  these employers is the same figure used to compute the

12  adjustment factor for noncharge benefits under

13  sub-subparagraph a. As used in this sub-subparagraph, the term

14  "excess payments" means the amount of benefits charged to the

15  employment record of an employer during the 3-year period

16  described in subparagraph (b)2., less the product of the

17  maximum contribution rate and the employer's taxable payroll

18  for the 3 years ending June 30 of the current calendar year as

19  reported to the tax collection service provider by September

20  30 of the same calendar year. As used in this

21  sub-subparagraph, the term "total excess payments" means the

22  sum of the individual employer excess payments for those

23  employers that were eligible to be considered for assignment

24  of a contribution rate different a variation from the standard

25  rate.

26         c.  If the balance of the Unemployment Compensation

27  Trust Fund on June 30 of the calendar year immediately

28  preceding the calendar year for which the contribution rate is

29  being computed is less than 3.7 percent of the taxable

30  payrolls for the year ending June 30 as reported to the tax

31  collection service provider by September 30 of that calendar


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    CS for SB 2032                                 First Engrossed



 1  year, a positive adjustment factor shall be computed. The

 2  positive adjustment factor shall be computed annually to the

 3  fifth decimal place and rounded to the fourth decimal place by

 4  dividing the sum of the total taxable payrolls for the year

 5  ending June 30 of the current calendar year as reported to the

 6  tax collection service provider by September 30 of that

 7  calendar year into a sum equal to one-fourth of the difference

 8  between the balance of the fund as of June 30 of that calendar

 9  year and the sum of 4.7 percent of the total taxable payrolls

10  for that year. The positive adjustment factor remains in

11  effect for subsequent years until the balance of the

12  Unemployment Compensation Trust Fund as of June 30 of the year

13  immediately preceding the effective date of the contribution

14  rate equals or exceeds 3.7 percent of the taxable payrolls for

15  the year ending June 30 of the current calendar year as

16  reported to the tax collection service provider by September

17  30 of that calendar year. If the balance of the Unemployment

18  Compensation Trust Fund as of June 30 of the year immediately

19  preceding the calendar year for which the contribution rate is

20  being computed exceeds 4.7 percent of the taxable payrolls for

21  the year ending June 30 of the current calendar year as

22  reported to the tax collection service provider by September

23  30 of that calendar year, a negative adjustment factor shall

24  be computed. The negative adjustment factor shall be computed

25  annually to the fifth decimal place and rounded to the fourth

26  decimal place by dividing the sum of the total taxable

27  payrolls for the year ending June 30 of the current calendar

28  year as reported to the tax collection service provider by

29  September 30 of the calendar year into a sum equal to

30  one-fourth of the difference between the balance of the fund

31  as of June 30 of the current calendar year and 4.7 percent of


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    CS for SB 2032                                 First Engrossed



 1  the total taxable payrolls of that year. The negative

 2  adjustment factor remains in effect for subsequent years until

 3  the balance of the Unemployment Compensation Trust Fund as of

 4  June 30 of the year immediately preceding the effective date

 5  of the contribution rate is less than 4.7 percent, but more

 6  than 3.7 percent of the taxable payrolls for the year ending

 7  June 30 of the current calendar year as reported to the tax

 8  collection service provider by September 30 of that calendar

 9  year.

10         d.  The maximum contribution rate that may be assigned

11  to an employer is 5.4 percent, except employers participating

12  in an approved short-time compensation plan may be assigned a

13  maximum contribution rate that is 1 percent greater than the

14  maximum contribution rate for other employers in any calendar

15  year in which short-time compensation benefits are charged to

16  the employer's employment record.

17         2.  If the transfer of an employer's employment record

18  to an employing unit under paragraph (f) which, before the

19  transfer, was an employer, the tax collection service provider

20  shall recompute a benefit ratio for the successor employer

21  based on the combined employment records and reassign an

22  appropriate contribution rate to the successor employer

23  effective on the first day of the calendar quarter immediately

24  after the effective date of the transfer.

25         (g)  Notwithstanding any other provision of law, upon

26  transfer or acquisition of a business, the following

27  conditions apply to the assignment of rates and to transfers

28  of unemployment experience:

29         1.a.  If an employer transfers its trade or business,

30  or a portion thereof, to another employer and, at the time of

31  the transfer, there is any common ownership, management, or


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    CS for SB 2032                                 First Engrossed



 1  control of the two employers, the unemployment experience

 2  attributable to the transferred trade or business shall be

 3  transferred to the employer to whom the business is so

 4  transferred.  The rates of both employers shall be

 5  recalculated and made effective as of the beginning of the

 6  calendar quarter immediately following the date of the

 7  transfer of the trade or business unless the transfer occurred

 8  on the first day of a calendar quarter, in which case the rate

 9  shall be recalculated as of that date.

10         b.  If, following a transfer of experience under

11  sub-subparagraph a., the Agency for Workforce Innovation or

12  the tax collection service provider determines that a

13  substantial purpose of the transfer of trade or business was

14  to obtain a reduced liability for contributions, the

15  experience rating account of the employers involved shall be

16  combined into a single account and a single rate assigned to

17  the account.

18         2.  Whenever a person who is not at the time an

19  employer under this chapter acquires the trade or business of

20  an employer, the unemployment experience of the acquired

21  business shall not be transferred to the person if the Agency

22  for Workforce Innovation or the tax collection service

23  provider finds that such person acquired the business solely

24  or primarily for the purpose of obtaining a lower rate of

25  contributions.  Instead, such person shall be assigned the new

26  employer rate under paragraph (2)(a). In determining whether

27  the business was acquired solely or primarily for the purpose

28  of obtaining a lower rate of contributions, the tax collection

29  service provider shall consider:

30         a.  Whether the person continued the business

31  enterprise of the acquired business;


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    CS for SB 2032                                 First Engrossed



 1         b.  How long such business enterprise was continued; or

 2         c.  Whether a substantial number of new employees was

 3  hired for performance of duties unrelated to the business

 4  activity conducted before the acquisition.

 5         3.  If a person knowingly violates or attempts to

 6  violate subparagraph 1. or subparagraph 2. or any other

 7  provision of this chapter relating to determining the

 8  assignment of a contribution rate, or if a person knowingly

 9  advises another person to violate the law, the person shall be

10  subject to the following penalties:

11         a.  If the person is an employer, the employer shall be

12  assigned the highest rate assignable under this chapter for

13  the rate year during which such violation or attempted

14  violation occurred and for the 3 rate years immediately

15  following this rate year. However, if the person's business is

16  already at the highest rate for any year, or if the amount of

17  increase in the person's rate would be less than 2 percent for

18  such year, then a penalty rate of contribution of 2 percent of

19  taxable wages shall be imposed for such year.

20         b.  If the person is not an employer, the person shall

21  be subject to a civil penalty of not more than $5,000. The

22  procedures for the assessment of a penalty shall be in

23  accordance with the procedures set forth in s. 443.141(2), and

24  the provisions of s. 443.141(3) shall apply to the collection

25  of the penalty.  Any such penalty shall be deposited in the

26  penalty and interest account established under s. 443.211(2).

27         4.  For the purposes of this paragraph, the term:

28         a.  "Knowingly" means having actual knowledge of or

29  acting with deliberate ignorance or reckless disregard for the

30  prohibition involved.

31  


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    CS for SB 2032                                 First Engrossed



 1         b.  "Violates or attempts to violate" includes, but is

 2  not limited to, intent to evade, misrepresent, or willfully

 3  nondisclose.

 4         c.  "Person" has the meaning given to the term by s.

 5  7701(a)(1) of the Internal Revenue Code of 1986.

 6         d.  "Trade or business" includes the employer's

 7  workforce.

 8         5.  In addition to the penalty imposed by subparagraph

 9  3., any person who violates this paragraph commits a felony of

10  the third degree, punishable as provided in s. 775.082,  s.

11  775.083, or s. 775.084.

12         6.  The Agency for Workforce Innovation and the tax

13  collection service provider shall establish procedures to

14  identify the transfer or acquisition of a business for the

15  purposes of this paragraph and shall adopt any rules necessary

16  to administer this paragraph.

17         7.  This paragraph shall be interpreted and applied in

18  such a manner as to meet the minimum requirements contained in

19  any guidance or regulations issued by the United States

20  Department of Labor.

21         Section 23.  Paragraph (a) of subsection (2) and

22  paragraph (a) of subsection (3) of section 443.141, Florida

23  Statutes, are amended to read:

24         443.141  Collection of contributions and

25  reimbursements.--

26         (2)  REPORTS, CONTRIBUTIONS, APPEALS.--

27         (a)  Failure to make reports and pay contributions.--If

28  an employing unit determined by the tax collection service

29  provider to be an employer subject to this chapter fails to

30  make and file any report as and when required by this chapter

31  or by any rule of the Agency for Workforce Innovation or the


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    CS for SB 2032                                 First Engrossed



 1  state agency providing tax collection services, for the

 2  purpose of determining the amount of contributions due by the

 3  employer under this chapter, or if any filed report is found

 4  by the service provider to be incorrect or insufficient, and

 5  the employer, after being notified in writing by the service

 6  provider to file the report, or a corrected or sufficient

 7  report, as applicable, fails to file the report within 15 days

 8  after the date of the mailing of the notice, the tax

 9  collection service provider may:

10         1.  Determine the amount of contributions due from the

11  employer based on the information readily available to it,

12  which determination is deemed to be prima facie correct;

13         2.  Assess the employer the amount of contributions

14  determined to be due; and

15         3.  Immediately notify the employer by registered or

16  certified mail of the determination and assessment including

17  penalties as provided in this chapter, if any, added and

18  assessed, and demand payment together with interest on the

19  amount of contributions from the date that amount was due and

20  payable.

21         (3)  COLLECTION PROCEEDINGS.--

22         (a)  Lien for payment of contributions or

23  reimbursements.--

24         1.  There is created a lien in favor of the tax

25  collection service provider upon all the property, both real

26  and personal, of any employer liable for payment of any

27  contribution or reimbursement levied and imposed under this

28  chapter for the amount of the contributions or reimbursements

29  due, together with interest, costs, and penalties. If any

30  contribution or reimbursement imposed under this chapter or

31  any portion of that contribution, reimbursement, interest, or


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    CS for SB 2032                                 First Engrossed



 1  penalty is not paid within 60 days after becoming delinquent,

 2  the tax collection service provider may subsequently issue a

 3  notice of lien that may be filed in the office of the clerk of

 4  the circuit court of any county in which the delinquent

 5  employer owns property or has conducted business. The notice

 6  of lien must include the periods for which the contributions,

 7  reimbursements, interest, or penalties are demanded and the

 8  amounts due. A copy of the notice of lien must be mailed to

 9  the employer at her or his last known address by registered

10  mail. The notice of lien may not be issued and recorded until

11  15 days after the date the assessment becomes final under

12  subsection (2). Upon presentation of the notice of lien, the

13  clerk of the circuit court shall record it in a book

14  maintained for that purpose, and the amount of the notice of

15  lien, together with the cost of recording and interest

16  accruing upon the amount of the contribution or reimbursement,

17  becomes a lien upon the title to and interest, whether legal

18  or equitable, in any real property, chattels real, or personal

19  property of the employer against whom the notice of lien is

20  issued, in the same manner as a judgment of the circuit court

21  docketed in the office of the circuit court clerk, with

22  execution issued to the sheriff for levy. This lien is prior,

23  preferred, and superior to all mortgages or other liens filed,

24  recorded, or acquired after the notice of lien is filed. Upon

25  the payment of the amounts due, or upon determination by the

26  tax collection service provider that the notice of lien was

27  erroneously issued, the lien is satisfied when the service

28  provider acknowledges in writing that the lien is fully

29  satisfied. A lien's satisfaction does not need to be

30  acknowledged before any notary or other public officer, and

31  the signature of the director of the tax collection service


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    CS for SB 2032                                 First Engrossed



 1  provider or his or her designee is conclusive evidence of the

 2  satisfaction of the lien, which satisfaction shall be recorded

 3  by the clerk of the circuit court who receives the fees for

 4  those services.

 5         2.  The tax collection service provider may

 6  subsequently issue a warrant directed to any sheriff in this

 7  state, commanding him or her to levy upon and sell any real or

 8  personal property of the employer liable for any amount under

 9  this chapter within his or her jurisdiction, for payment, with

10  the added penalties and interest and the costs of executing

11  the warrant, together with the costs of the clerk of the

12  circuit court in recording and docketing the notice of lien,

13  and to return the warrant to the service provider with

14  payment. The warrant may only be issued and enforced for all

15  amounts due to the tax collection service provider on the date

16  the warrant is issued, together with interest accruing on the

17  contribution or reimbursement due from the employer to the

18  date of payment at the rate provided in this section. In the

19  event of sale of any assets of the employer, however,

20  priorities under the warrant shall be determined in accordance

21  with the priority established by any notices of lien filed by

22  the tax collection service provider and recorded by the clerk

23  of the circuit court. The sheriff shall execute the warrant in

24  the same manner prescribed by law for executions issued by the

25  clerk of the circuit court for judgments of the circuit court.

26  The sheriff is entitled to the same fees for executing the

27  warrant as for a writ of execution out of the circuit court,

28  and these fees must be collected in the same manner.

29         Section 24.  Section 624.50921, Florida Statutes, is

30  created to read:

31         624.50921  Adjustments.--


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    CS for SB 2032                                 First Engrossed



 1         (1)  If a taxpayer is required to amend its corporate

 2  income tax liability under chapter 220, or the taxpayer

 3  receives a refund of its workers' compensation administrative

 4  assessment paid under chapter 440, the taxpayer shall file an

 5  amended insurance premium tax return not later than 60 days

 6  after such an occurrence.

 7         (2)  If an amended insurance premium tax return is

 8  required under subsection (1), notwithstanding any other

 9  provision of s. 95.091(3):

10         (a)  A notice of deficiency may be issued at any time

11  within 3 years after the date the amended insurance premium

12  tax return is given; or

13         (b)  If a taxpayer fails to file an amended insurance

14  premium tax return, a notice of deficiency may be issued at

15  any time.

16  

17  The amount of any proposed assessment set forth in such a

18  notice of deficiency shall be limited to the amount of any

19  deficiency resulting under this code from recomputation of the

20  taxpayer's insurance premium tax and retaliatory tax for the

21  taxable year after giving effect only to the change in

22  corporate income tax paid and the change in the amount of the

23  workers' compensation administrative assessment paid.

24  Interest in accordance with s. 624.5092 is due on the amount

25  of any deficiency from the date fixed for filing the original

26  insurance premium tax return for the taxable year until the

27  date of payment of the deficiency.

28         (3)  If an amended insurance premium tax return is

29  required by subsection (1), a claim for refund may be filed

30  within 2 years after the date on which the amended insurance

31  premium tax return was due, regardless of whether such notice


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    CS for SB 2032                                 First Engrossed



 1  was given, notwithstanding any other provision of s. 215.26.

 2  However, the amount recoverable pursuant to such a claim shall

 3  be limited to the amount of any overpayment resulting under

 4  this code from recomputation of the taxpayer's insurance

 5  premium tax and retaliatory tax for the taxable year after

 6  giving effect only to the change in corporate income tax paid

 7  and the change in the amount of the workers' compensation

 8  administrative assessment paid.

 9         Section 25.  Subsection (5) of section 624.509, Florida

10  Statutes, is amended to read:

11         624.509  Premium tax; rate and computation.--

12         (5)

13         (a)1.  There shall be allowed a credit against the net

14  tax imposed by this section equal to 15 percent of the amount

15  paid by an the insurer in salaries to employees located or

16  based within this state and who are covered by the provisions

17  of chapter 443.

18         2.  As an alternative to the credit allowed in

19  subparagraph 1., an affiliated group of corporations which

20  includes at least one insurance company writing premiums in

21  Florida may elect to take a credit against the net tax imposed

22  by this section in an amount that may not exceed 15 percent of

23  the salary of the employees of the affiliated group of

24  corporations who perform insurance-related activities, are

25  located or based within this state, and are covered by chapter

26  443. For purposes of this subparagraph, the term "affiliated

27  group of corporations" means two or more corporations that are

28  entirely owned directly or indirectly by a single corporation

29  and that constitute an affiliated group as defined in s.

30  1504(a) of the Internal Revenue Code. The amount of credit

31  allowed under this subparagraph is limited to the combined


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    CS for SB 2032                                 First Engrossed



 1  Florida salary tax credits allowed for all insurance companies

 2  that were members of the affiliated group of corporations for

 3  the tax year ending December 31, 2002, divided by the combined

 4  Florida taxable premiums written by all insurance companies

 5  that were members of the affiliated group of corporations for

 6  the tax year ending December 31, 2002, multiplied by the

 7  combined Florida taxable premiums of the affiliated group of

 8  corporations for the current year. An affiliated group of

 9  corporations electing this alternative calculation method must

10  make such election on or before August 1, 2005. The election

11  of this alternative calculation method is irrevocable and

12  binding upon successors and assigns of the affiliated group of

13  corporations electing this alternative. However, if a member

14  of an affiliated group of corporations acquires or merges with

15  another insurance company after the date of the irrevocable

16  election, the acquired or merged company is not entitled to

17  the affiliated group election and shall only be entitled to

18  calculate the tax credit under subparagraph 1.

19  

20  In no event shall the salary paid to an employee by an

21  affiliated group of corporations be claimed as a credit by

22  more than one insurer or be counted more than once in an

23  insurer's calculation of the credit as described in

24  subparagraph 1. or subparagraph 2.  Only the portion of an

25  employee's salary paid for the performance of

26  insurance-related activities may be included in the

27  calculation of the premium tax credit in this subsection.

28         (b) For purposes of this subsection:

29         1.(a)  The term "salaries" does not include amounts

30  paid as commissions.

31  


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    CS for SB 2032                                 First Engrossed



 1         2.(b)  The term "employees" does not include

 2  independent contractors or any person whose duties require

 3  that the person hold a valid license under the Florida

 4  Insurance Code, except adjusters, managing general agents, and

 5  service representatives, as persons defined in s. 626.015 s.

 6  626.015(1), (14), and (16).

 7         3.(c)  The term "net tax" means the tax imposed by this

 8  section after applying the calculations and credits set forth

 9  in subsection (4).

10         4.(d)  An affiliated group of corporations that created

11  a service company within its affiliated group on July 30,

12  2002, shall allocate the salary of each service company

13  employee covered by contracts with affiliated group members to

14  the companies for which the employees perform services. The

15  salary allocation is based on the amount of time during the

16  tax year that the individual employee spends performing

17  services or otherwise working for each company over the total

18  amount of time the employee spends performing services or

19  otherwise working for all companies. The total amount of

20  salary allocated to an insurance company within the affiliated

21  group shall be included as that insurer's employee salaries

22  for purposes of this section.

23         a.1.  Except as provided in subparagraph 2., the term

24  "affiliated group of corporations" means two or more

25  corporations that are entirely owned by a single corporation

26  and that constitute an affiliated group of corporations as

27  defined in s. 1504(a) of the Internal Revenue Code.

28         b.2.  The term "service company" means a separate

29  corporation within the affiliated group of corporations whose

30  employees provide services to affiliated group members and

31  which are treated as service company employees for


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    CS for SB 2032                                 First Engrossed



 1  unemployment compensation and common law purposes. The holding

 2  company of an affiliated group may not qualify as a service

 3  company. An insurance company may not qualify as a service

 4  company.

 5         c.3.  If an insurance company fails to substantiate,

 6  whether by means of adequate records or otherwise, its

 7  eligibility to claim the service company exception under this

 8  section, or its salary allocation under this section, no

 9  credit shall be allowed.

10         5.  A service company that is a subsidiary of a mutual

11  insurance holding company, which mutual insurance holding

12  company was in existence on or before January 1, 2000, shall

13  allocate the salary of each service company employee covered

14  by contracts with members of the mutual insurance holding

15  company system to the companies for which the employees

16  perform services. The salary allocation is based on the ratio

17  of the amount of time during the tax year which the individual

18  employee spends performing services or otherwise working for

19  each company to the total amount of time the employee spends

20  performing services or otherwise working for all companies.

21  The total amount of salary allocated to an insurance company

22  within the mutual insurance holding company system shall be

23  included as that insurer's employee salaries for purposes of

24  this section. However, this subparagraph does not apply for

25  any tax year unless funds sufficient to offset the anticipated

26  salary credits have been appropriated to the General Revenue

27  Fund prior to the due date of the final return for that year.

28         a.  The term "mutual insurance holding company system"

29  means two or more corporations that are subsidiaries of a

30  mutual insurance holding company and in compliance with part

31  IV of chapter 628.


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    CS for SB 2032                                 First Engrossed



 1         b.  The term "service company" means a separate

 2  corporation within the mutual insurance holding company system

 3  whose employees provide services to other members of the

 4  mutual insurance holding company system and are treated as

 5  service company employees for unemployment compensation and

 6  common-law purposes. The mutual insurance holding company may

 7  not qualify as a service company.

 8         c.  If an insurance company fails to substantiate,

 9  whether by means of adequate records or otherwise, its

10  eligibility to claim the service company exception under this

11  section, or its salary allocation under this section, no

12  credit shall be allowed.

13         (c)  The department may adopt rules pursuant to ss.

14  120.536(1) and 120.54 to administer this subsection.

15         Section 26.  The sum of $2.6 million is appropriated

16  from the Workers' Compensation Administration Trust Fund to

17  the General Revenue Fund for the 2005-2006 fiscal year.

18         Section 27.  The intent of the revision to section

19  624.509(5)(b), Florida Statutes, in section 25 is to clarify

20  that adjusters, managing general agents, and service

21  representatives, as defined in section 626.015, Florida

22  Statutes, are considered employees for purposes of the salary

23  credit provided in section 626.509, Florida Statutes. The

24  reference in section 624.509, Florida Statutes, to section

25  626.015, Florida Statutes, was never intended to reference the

26  definition of a "resident."

27         Section 28.  Notwithstanding section 11 of chapter

28  2000-312, Laws of Florida, section 213.21, Florida Statutes,

29  shall not stand repealed on October 1, 2005, as scheduled by

30  that law, but that section is revived and readopted.

31  


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    CS for SB 2032                                 First Engrossed



 1         Section 29.  If a security agreement pledging

 2  condominium or homeowner association assessments or fees or

 3  club membership dues, fees, or assessments was recorded after

 4  April 15, 2000, and before April 10, 2005, with a clerk of the

 5  court, and if a Uniform Commercial Code financing statement

 6  was filed with the Secretary of State or the Florida Secured

 7  Transaction Registry with respect to such security agreement,

 8  the excise tax on documents under chapter 201, Florida

 9  Statutes, is not due solely as a result of the recording of

10  the security agreement if an affidavit attesting that the

11  security agreement was recorded in error or by mistake is

12  filed or recorded with the clerk of the court.

13         Section 30.  Retroactive to January 1, 2005, section

14  196.1999, Florida Statutes, is created to read:

15         196.1999  Space laboratories and carriers;

16  exemption.--Notwithstanding other provisions of this chapter,

17  a module, pallet, rack, locker, and any necessary associated

18  hardware and subsystem owned by any person and intended to be

19  used to transport or store cargo used for a space laboratory

20  for the primary purpose of conducting scientific research in

21  space is deemed to carry out a scientific purpose and is

22  exempt from ad valorem taxation.

23         Section 31.  Section 196.1994, Florida Statutes, is

24  repealed.

25         Section 32.  Subsection (4) of section 201.23, Florida

26  Statutes, is amended to read:

27         201.23  Foreign notes and other written obligations

28  exempt.--

29         (4)(a)  The excise taxes imposed by this chapter shall

30  not apply to the documents, notes, evidences of indebtedness,

31  financing statements, drafts, bills of exchange, or other


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    CS for SB 2032                                 First Engrossed



 1  taxable items dealt with, made, issued, drawn upon, accepted,

 2  delivered, shipped, received, signed, executed, assigned,

 3  transferred, or sold by or to a banking organization, as

 4  defined in s. 199.023(9), in the conduct of an international

 5  banking transaction, as defined in s. 199.023(11). Nothing in

 6  this subsection shall be construed to change the application

 7  of paragraph (2)(a).

 8         (b)  For purposes of this subsection, the term:

 9         1.  "Banking organization" means:

10         a.  A bank organized and existing under the laws of any

11  state;

12         b.  A national bank organized and existing pursuant to

13  the provisions of the National Bank Act, 12 U.S.C. ss. 21 et

14  seq.;

15         c.  An Edge Act corporation organized pursuant to the

16  provisions of s. 25(a) of the Federal Reserve Act, 12 U.S.C.

17  ss. 611 et seq.;

18         d.  An international bank agency licensed pursuant to

19  the laws of any state;

20         e.  A federal agency licensed pursuant to ss. 4 and 5

21  of the International Banking Act of 1978;

22         f.  A savings association organized and existing under

23  the laws of any state;

24         g.  A federal association organized and existing

25  pursuant to the provisions of the Home Owners' Loan Act of

26  1933, 12 U.S.C. ss. 1461 et seq.; or

27         h.  A Florida export finance corporation organized and

28  existing pursuant to the provisions of part V of chapter 288.

29         2.  "International banking transaction" means:

30  

31  


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    CS for SB 2032                                 First Engrossed



 1         a.  The financing of the exportation from, or the

 2  importation into, the United States or between jurisdictions

 3  abroad of tangible personal property or services;

 4         b.  The financing of the production, preparation,

 5  storage, or transportation of tangible personal property or

 6  services which are identifiable as being directly and solely

 7  for export from, or import into, the United States or between

 8  jurisdictions abroad;

 9         c.  The financing of contracts, projects, or activities

10  to be performed substantially abroad, except those

11  transactions secured by a mortgage, deed of trust, or other

12  lien upon real property located in the state;

13         d.  The receipt of deposits or borrowings or the

14  extensions of credit by an international banking facility,

15  except the loan or deposit of funds secured by mortgage, deed

16  of trust, or other lien upon real property located in the

17  state; or

18         e.  Entering into foreign exchange trading or hedging

19  transactions in connection with the activities described in

20  sub-subparagraph d.

21         Section 33.  Except as otherwise expressly provided in

22  this act, this act shall take effect July 1, 2005.

23  

24  

25  

26  

27  

28  

29  

30  

31  


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