HB 0963

1
A bill to be entitled
2An act relating to the annual intangible personal property
3tax; repealing ss. 199.012, 199.023, 199.032, 199.033,
4199.042, 199.052, 199.057, 199.062, 199.103, 199.1055,
5199.106, 199.175, and 199.185, F.S., relating to the
6annual intangible personal property tax; amending s.
7199.303, F.S.; providing additional legislative intent
8relating to the annual intangible personal property tax;
9amending ss. 28.35, 192.0105, 192.032, 192.042, 192.091,
10193.114, 196.015, 196.199, 199.133, 199.183, 199.218,
11199.232, 199.282, 199.292, 201.23, 212.02, 213.053,
12213.054, 213.27, 220.1845, 376.30781, 493.6102, 650.05,
13655.071, and 733.702, F.S., to conform provisions to the
14repeal of the annual intangible personal property tax;
15providing for application of certain collection,
16administration, and enforcement provisions to taxation of
17certain leaseholds; authorizing the Department of Revenue
18to adopt emergency implementing rules for a certain time;
19providing effective dates.
20
21Be It Enacted by the Legislature of the State of Florida:
22
23     Section 1.  Sections 199.012, 199.023, 199.032, 199.033,
24199.042, 199.052, 199.057, 199.062, 199.103, 199.1055, 199.106,
25199.175, and 199.185, Florida Statutes, are repealed.
26     Section 2.  Paragraph (c) of subsection (1) of section
2728.35, Florida Statutes, is amended to read:
28     28.35  Florida Clerks of Court Operations Corporation.--
29     (1)
30     (c)  For the purposes of s. 199.183(1), The corporation
31shall be considered a political subdivision of the state and
32shall be exempt from the corporate income tax. The corporation
33is not subject to the procurement provisions of chapter 287 and
34policies and decisions of the corporation relating to incurring
35debt, levying assessments, and the sale, issuance, continuation,
36terms, and claims under corporation policies, and all services
37relating thereto, are not subject to the provisions of chapter
38120.
39     Section 3.  Paragraph (a) of subsection (4) of section
40192.0105, Florida Statutes, is amended to read:
41     192.0105  Taxpayer rights.--There is created a Florida
42Taxpayer's Bill of Rights for property taxes and assessments to
43guarantee that the rights, privacy, and property of the
44taxpayers of this state are adequately safeguarded and protected
45during tax levy, assessment, collection, and enforcement
46processes administered under the revenue laws of this state. The
47Taxpayer's Bill of Rights compiles, in one document, brief but
48comprehensive statements that summarize the rights and
49obligations of the property appraisers, tax collectors, clerks
50of the court, local governing boards, the Department of Revenue,
51and taxpayers. Additional rights afforded to payors of taxes and
52assessments imposed under the revenue laws of this state are
53provided in s. 213.015. The rights afforded taxpayers to assure
54that their privacy and property are safeguarded and protected
55during tax levy, assessment, and collection are available only
56insofar as they are implemented in other parts of the Florida
57Statutes or rules of the Department of Revenue. The rights so
58guaranteed to state taxpayers in the Florida Statutes and the
59departmental rules include:
60     (4)  THE RIGHT TO CONFIDENTIALITY.--
61     (a)  The right to have information kept confidential,
62including federal tax information, ad valorem tax returns,
63social security numbers, all financial records produced by the
64taxpayer, Form DR-219 returns for documentary stamp tax
65information, and sworn statements of gross income, copies of
66federal income tax returns for the prior year, wage and earnings
67statements (W-2 forms), and other documents (see ss. 192.105,
68193.074, 193.114(5)(6), 195.027(3) and (6), and 196.101(4)(c)).
69     Section 4.  Subsections (5), (6), and (7) of section
70192.032, Florida Statutes, are amended to read:
71     192.032  Situs of property for assessment purposes.--All
72property shall be assessed according to its situs as follows:
73     (5)  Intangible personal property, according to the rules
74laid down in chapter 199.
75     (5)(6)(a)  Notwithstanding the provisions of subsection
76(2), personal property used as a marine cargo container in the
77conduct of foreign or interstate commerce shall not be deemed to
78have acquired a taxable situs within a county when the property
79is temporarily halted or stored within the state for a period
80not exceeding 180 days.
81     (b)  "Marine cargo container" means a nondisposable
82receptacle which is of a permanent character, strong enough to
83be suitable for repeated use; which is specifically designed to
84facilitate the carriage of goods by one or more modes of
85transport, one of which shall be by ocean vessel, without
86intermediate reloading; and which is fitted with devices
87permitting its ready handling, particularly in the transfer from
88one transport mode to another. The term "marine cargo container"
89includes a container when carried on a chassis but does not
90include a vehicle or packaging.
91     (6)(7)  Notwithstanding any other provision of this
92section, tangible personal property used in traveling shows such
93as carnivals, ice shows, or circuses shall be deemed to be
94physically present or habitually located or typically present
95only to the extent the value of such property is multiplied by a
96fraction, the numerator of which is the number of days such
97property is present in Florida during the taxable year and the
98denominator of which is the number of days in the taxable year.
99However, railroad property of such traveling shows shall be
100taxable under s. 193.085(4)(b) and not under this section.
101     Section 5.  Subsection (3) of section 192.042, Florida
102Statutes, is amended to read:
103     192.042  Date of assessment.--All property shall be
104assessed according to its just value as follows:
105     (3)  Intangible personal property, according to the rules
106laid down in chapter 199.
107     Section 6.  Subsections (5) and (6) of section 192.091,
108Florida Statutes, are amended to read:
109     192.091  Commissions of property appraisers and tax
110collectors.--
111     (5)  Provided, that The provisions of this section shall
112not apply to commissions on intangible property taxes or
113drainage district or drainage subdistrict taxes.; and
114     (6)  If Provided, further, that where any property
115appraiser or tax collector in the state is receiving
116compensation for expenses in conducting his or her office or by
117way of salary pursuant to any act of the Legislature other than
118the general law fixing compensation of property appraisers, such
119property appraiser or tax collector may file a declaration in
120writing with the board of county commissioners of his or her
121county electing to come under the provisions of this section,
122and thereupon such property appraiser or tax collector shall be
123paid compensation in accordance with the provisions hereof, and
124shall not be entitled to the benefit of the said special or
125local act. If such property appraiser or tax collector does not
126so elect, he or she shall continue to be paid such compensation
127as may now be provided by law for such property appraiser or tax
128collector.
129     Section 7.  Subsections (4), (5), and (6) of section
130193.114, Florida Statutes, are amended to read:
131     193.114  Preparation of assessment rolls.--
132     (4)  The department shall promulgate regulations and forms
133for the preparation of the intangible personal property roll to
134comply with chapter 199.
135     (4)(5)  For every change made to the assessed or taxable
136value of a parcel on an assessment roll subsequent to the
137mailing of the notice provided for in s. 200.069, the property
138appraiser shall document the reason for such change in the
139public records of the office of the property appraiser in a
140manner acceptable to the executive director or the executive
141director's designee. For every change that decreases the
142assessed or taxable value of a parcel on an assessment roll
143between the time of complete submission of the tax roll pursuant
144to s. 193.1142(3) and mailing of the notice provided for in s.
145200.069, the property appraiser shall document the reason for
146such change in the public records of the office of the property
147appraiser in a manner acceptable to the executive director or
148the executive director's designee. Changes made by the value
149adjustment board are not subject to the requirements of this
150subsection.
151     (5)(6)  For proprietary purposes, including the furnishing
152or sale of copies of the tax roll under s. 119.07(1), the
153property appraiser is the custodian of the tax roll and the
154copies of it which are maintained by any state agency. The
155department or any state or local agency may use copies of the
156tax roll received by it for official purposes and shall permit
157inspection and examination thereof under s. 119.07(1), but is
158not required to furnish copies of the records. A social security
159number submitted under s. 196.011(1) is confidential and exempt
160from s. 24(a), Art. I of the State Constitution and the
161provisions of s. 119.07(1). A copy of documents containing the
162numbers furnished or sold by the property appraiser, except a
163copy furnished to the department, or a copy of documents
164containing social security numbers provided by the department or
165any state or local agency for inspection or examination by the
166public, must exclude those social security numbers.
167     Section 8.  Subsection (9) of section 196.015, Florida
168Statutes, is amended to read:
169     196.015  Permanent residency; factual determination by
170property appraiser.--Intention to establish a permanent
171residence in this state is a factual determination to be made,
172in the first instance, by the property appraiser. Although any
173one factor is not conclusive of the establishment or
174nonestablishment of permanent residence, the following are
175relevant factors that may be considered by the property
176appraiser in making his or her determination as to the intent of
177a person claiming a homestead exemption to establish a permanent
178residence in this state:
179     (9)  The previous filing of Florida intangible tax returns
180by the applicant.
181     Section 9.  Paragraph (b) of subsection (2) of section
182196.199, Florida Statutes, is amended to read:
183     196.199  Government property exemption.--
184     (2)  Property owned by the following governmental units but
185used by nongovernmental lessees shall only be exempt from
186taxation under the following conditions:
187     (b)  Except as provided in paragraph (c), the exemption
188provided by this subsection shall not apply to those portions of
189a leasehold or other interest defined by s. 199.023(1)(d), as it
190existed prior to January 1, 2006, subject to the provisions of
191subsection (7). Such leasehold or other interest shall be taxed
192only as intangible personal property pursuant to chapter 199 as
193it existed prior to January 1, 2006, if rental payments are due
194in consideration of such leasehold or other interest. All
195applicable collection, administration, and enforcement
196provisions of chapter 199, as it existed prior to January 1,
1972006, shall apply to taxation of such leaseholds. If no rental
198payments are due pursuant to the agreement creating such
199leasehold or other interest, the leasehold or other interest
200shall be taxed as real property. Nothing in this paragraph shall
201be deemed to exempt personal property, buildings, or other real
202property improvements owned by the lessee from ad valorem
203taxation.
204     Section 10.  Subsection (2) of section 199.133, Florida
205Statutes, is amended to read:
206     199.133  Levy of nonrecurring tax; relationship to annual
207tax.--
208     (2)  The nonrecurring tax shall apply to a note, bond, or
209other obligation for payment of money only to the extent it is
210secured by mortgage, deed of trust, or other lien upon real
211property situated in this state. Where a note, bond, or other
212obligation is secured by personal property or by real property
213situated outside this state, as well as by mortgage, deed of
214trust, or other lien upon real property situated in this state,
215then the nonrecurring tax shall apply to that portion of the
216note, bond, or other obligation which bears the same ratio to
217the entire principal balance of the note, bond, or other
218obligation as the value of the real property situated in this
219state bears to the value of all of the security; however, if the
220security is solely made up of personal property and real
221property situated in this state, the taxpayer may elect to
222apportion the taxes based upon the value of the collateral, if
223any, to which the taxpayer by law or contract must look first
224for collection. In no event shall the portion of the note, bond,
225or other obligation which is subject to the nonrecurring tax
226exceed in value the value of the real property situated in this
227state which is the security. The portion of a note, bond, or
228other obligation which is not subject to the nonrecurring tax
229shall be subject to the annual tax unless otherwise exempt.
230     Section 11.  Subsections (1), (3), and (4) of section
231199.183, Florida Statutes, are amended to read:
232     199.183  Taxpayers exempt from annual and nonrecurring
233taxes.--
234     (1)  Intangible personal property owned by this state or
235any of its political subdivisions or municipalities shall be
236exempt from taxation under this chapter. This exemption does not
237apply to:
238     (a)  Any leasehold or other interest that is described in
239s. 199.023(1)(d).
240     (b)  property related to the provision of two-way
241telecommunications services to the public for hire by the use of
242a telecommunications facility, as defined in s. 364.02(14), and
243for which a certificate is required under chapter 364, when such
244service is provided by any county, municipality, or other
245political subdivision of the state. Any immunity of any
246political subdivision of the state or other entity of local
247government from taxation of the property used to provide
248telecommunication services that is taxed as a result of this
249paragraph is hereby waived. However, intangible personal
250property related to the provision of such telecommunications
251services provided by the operator of a public-use airport, as
252defined in s. 332.004, for the operator's provision of
253telecommunications services for the airport or its tenants,
254concessionaires, or licensees, and intangible personal property
255related to the provision of such telecommunications services
256provided by a public hospital, are exempt from taxation under
257this chapter.
258     (3)  Every national bank having its principal place of
259business in another state, but operating a credit card credit
260application processing, customer service, or collection
261operation in this state, that is not considered a bank under the
262provisions of 12 U.S.C. s. 1841(c)(2)(F), is exempt from paying
263the tax imposed by this chapter on credit card receivables owed
264to the bank by credit card holders domiciled outside this state.
265     (4)  Intangible personal property that is owned, managed,
266or controlled by a trustee of a trust is exempt from annual tax
267under this chapter. This exemption does not exempt from annual
268tax a resident of this state who has a taxable beneficial
269interest, as defined in s. 199.023, in a trust.
270     Section 12.  Section 199.218, Florida Statutes, is amended
271to read:
272     199.218  Books and records.--
273     (1)  Each taxpayer shall retain all books and other records
274necessary to identify the taxpayer's intangible personal
275property and to determine any tax due under this chapter, as
276well as all books and other records otherwise required by rule
277of the department with respect to any such tax, until the
278department's power to make an assessment with respect to such
279tax has terminated under s. 95.091(3).
280     (2)  Each broker subject to the provisions of s. 199.062
281shall preserve all books and other records relating to the
282information reported under s. 199.062 or otherwise required by
283rule of the department for a period of 3 years from the due date
284of the report.
285     Section 13.  Paragraph (a) of subsection (1) and subsection
286(3) of section 199.232, Florida Statutes, are amended to read:
287     199.232  Powers of department.--
288     (1)(a)  The department may audit the books and records of
289any person to determine whether an annual tax or a nonrecurring
290tax has been properly paid.
291     (3)  With or without an audit, the department may assess
292any tax deficiency resulting from nonpayment or underpayment of
293the tax, as well as any applicable interest and penalties. The
294department shall assess on the basis of the best information
295available to it, including estimates based on the best
296information available to it if the taxpayer fails to permit
297inspection of the taxpayer's records, fails to file an annual
298return, files a grossly incorrect return, or files a false and
299fraudulent return.
300     Section 14.  Subsections (2), (3), (4), (6), and (8) of
301section 199.282, Florida Statutes, are amended, and subsections
302(5), (7), and (9) of said section are renumbered as subsections
303(4), (5), and (7), respectively, to read:
304     199.282  Penalties for violation of this chapter.--
305     (2)  If any annual or nonrecurring tax is not paid by the
306statutory due date, then despite any extension granted under s.
307199.232(6), interest shall run on the unpaid balance from such
308due date until paid at the rate of 12 percent per year.
309     (3)(a)  If any annual or nonrecurring tax is not paid by
310the due date, a delinquency penalty shall be charged. The
311delinquency penalty shall be 10 percent of the delinquent tax
312for each calendar month or portion thereof from the due date
313until paid, up to a limit of 50 percent of the total tax not
314timely paid.
315     (b)  If any annual tax return required by this chapter is
316not filed by the due date, a penalty of 10 percent of the tax
317due with the return shall be charged for each calendar month or
318portion thereof during which the return remains unfiled, up to a
319limit of 50 percent of the total tax due.
320
321For any penalty assessed under this subsection, the combined
322total for all penalties assessed under paragraphs (a) and (b)
323shall not exceed 10 percent per calendar month, up to a limit of
32450 percent of the total tax due.
325     (4)  If an annual tax return is filed and property is
326either omitted from it or undervalued, then a specific penalty
327shall be charged. The specific penalty shall be 10 percent of
328the tax attributable to each omitted item or to each
329undervaluation. No delinquency or late filing penalty shall be
330charged with respect to any undervaluation.
331     (6)  Late reporting penalties shall be imposed as follows:
332     (a)  A penalty of $100 upon any corporation that does not
333timely file a written notice required under s. 199.057(2)(c).
334     (b)  An initial penalty of $10 per customer position
335statement, plus an additional penalty of the greater of 1
336percent of the initial penalty or $50 for each month or portion
337of a month, from the date due until filing is made, upon any
338security dealer or investment adviser who does not timely file
339or fails to file the statements required by s. 199.062(1). The
340submission of a position statement that does not comply with the
341department's specifications and instructions or the submission
342of an inaccurate position statement is not a timely filing. The
343department shall notify any security dealer or investment
344adviser who fails to timely file the required statements. The
345minimum penalty imposed upon a security dealer or investment
346adviser under this paragraph is $100.
347     (6)(8)  Any person who fails or refuses to file an annual
348return, or who fails or refuses to make records available for
349inspection, when requested to do so by the department is guilty
350of a misdemeanor of the first degree, punishable as provided in
351s. 775.082 or s. 775.083.
352     Section 15.  Section 199.292, Florida Statutes, is amended
353to read:
354     199.292  Disposition of intangible personal property
355taxes.--All intangible personal property taxes collected
356pursuant to this chapter, except for revenues derived from the
357annual tax on a leasehold described in s. 199.023(1)(d), shall
358be deposited into the General Revenue Fund. Revenues derived
359from the annual tax on a leasehold described in s. 199.023(1)(d)
360shall be returned to the local school board for the county in
361which the property subject to the leasehold is situated.
362     Section 16.  Subsection (3) is added to section 199.303,
363Florida Statutes, to read:
364     199.303  Declaration of legislative intent.--
365     (3)  It is hereby declared to be the specific intent of the
366Legislature that all annual intangible personal property taxes
367imposed as provided by law for calendar years 2005 and prior
368shall remain in full force and effect during the period
369specified by s. 95.091 for the year in which the tax was due. It
370is further the intent of the Legislature that the department
371continue to assess and collect all taxes due to the state under
372such provisions for all periods available for assessment, as
373provided for the year in which tax was due by s. 95.091.
374     Section 17.  Subsection (4) of section 201.23, Florida
375Statutes, is amended to read:
376     201.23  Foreign notes and other written obligations
377exempt.--
378     (4)(a)  The excise taxes imposed by this chapter shall not
379apply to the documents, notes, evidences of indebtedness,
380financing statements, drafts, bills of exchange, or other
381taxable items dealt with, made, issued, drawn upon, accepted,
382delivered, shipped, received, signed, executed, assigned,
383transferred, or sold by or to a banking organization, as defined
384in s. 199.023(9), in the conduct of an international banking
385transaction, as defined in s. 199.023(11). Nothing in this
386subsection shall be construed to change the application of
387paragraph (2)(a).
388     (b)  For purposes of this subsection:
389     1.  "Banking organization" means:
390     a.  A bank organized and existing under the laws of any
391state;
392     b.  A national bank organized and existing pursuant to the
393provisions of the National Bank Act, 12 U.S.C. ss. 21 et seq.;
394     c.  An Edge Act corporation organized pursuant to the
395provisions of s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss.
396611 et seq.;
397     d.  An international bank agency licensed pursuant to the
398laws of any state;
399     e.  A federal agency licensed pursuant to ss. 4 and 5 of
400the International Banking Act of 1978;
401     f.  A savings association organized and existing under the
402laws of any state;
403     g.  A federal association organized and existing pursuant
404to the provisions of the Home Owners' Loan Act of 1933, 12
405U.S.C. ss. 1461 et seq.; or
406     h.  A Florida export finance corporation organized and
407existing pursuant to the provisions of part V of chapter 288.
408     2.  "International banking transaction" means:
409     a.  The financing of the exportation from, or the
410importation into, the United States or between jurisdictions
411abroad of tangible personal property or services;
412     b.  The financing of the production, preparation, storage,
413or transportation of tangible personal property or services
414which are identifiable as being directly and solely for export
415from, or import into, the United States or between jurisdictions
416abroad;
417     c.  The financing of contracts, projects, or activities to
418be performed substantially abroad, except those transactions
419secured by a mortgage, deed of trust, or other lien upon real
420property located in the state;
421     d.  The receipt of deposits or borrowings or the extensions
422of credit by an international banking facility, except the loan
423or deposit of funds secured by mortgage, deed of trust, or other
424lien upon real property located in the state; or
425     e.  Entering into foreign exchange trading or hedging
426transactions in connection with the activities described in sub-
427subparagraph d.
428     Section 18.  Subsection (19) of section 212.02, Florida
429Statutes, is amended to read:
430     212.02  Definitions.--The following terms and phrases when
431used in this chapter have the meanings ascribed to them in this
432section, except where the context clearly indicates a different
433meaning:
434     (19)  "Tangible personal property" means and includes
435personal property which may be seen, weighed, measured, or
436touched or is in any manner perceptible to the senses, including
437electric power or energy, boats, motor vehicles and mobile homes
438as defined in s. 320.01(1) and (2), aircraft as defined in s.
439330.27, and all other types of vehicles. The term "tangible
440personal property" does not include stocks, bonds, notes,
441insurance, or other obligations or securities; intangibles as
442defined by the intangible tax law of the state; or pari-mutuel
443tickets sold or issued under the racing laws of the state.
444     Section 19.  Paragraph (p) of subsection (7) and paragraph
445(a) of subsection (14) of section 213.053, Florida Statutes, are
446amended to read:
447     213.053  Confidentiality and information sharing.--
448     (7)  Notwithstanding any other provision of this section,
449the department may provide:
450     (p)  Information relative to ss. 199.1055, 220.1845, and
451376.30781 to the Department of Environmental Protection in the
452conduct of its official business.
453
454Disclosure of information under this subsection shall be
455pursuant to a written agreement between the executive director
456and the agency. Such agencies, governmental or nongovernmental,
457shall be bound by the same requirements of confidentiality as
458the Department of Revenue. Breach of confidentiality is a
459misdemeanor of the first degree, punishable as provided by s.
460775.082 or s. 775.083.
461     (14)(a)  Notwithstanding any other provision of this
462section, the department shall, subject to the safeguards
463specified in paragraph (c), disclose to the Division of
464Corporations of the Department of State the name, address,
465federal employer identification number, and duration of tax
466filings with this state of all corporate or partnership entities
467which are not on file or have a dissolved status with the
468Division of Corporations and which have filed tax returns
469pursuant to either chapter 199 or chapter 220.
470     Section 20.  Section 213.054, Florida Statutes, is amended
471to read:
472     213.054  Persons claiming tax exemptions or deductions;
473annual report.--The Department of Revenue shall be responsible
474for monitoring the utilization of tax exemptions and tax
475deductions authorized pursuant to chapter 81-179, Laws of
476Florida. On or before September 1 of each year, the department
477shall report to the Chief Financial Officer the names and
478addresses of all persons who have claimed an exemption pursuant
479to s. 199.185(1)(i) or a deduction pursuant to s. 220.63(5).
480     Section 21.  Section 213.27, Florida Statutes, is amended
481to read:
482     213.27  Contracts with debt collection agencies and certain
483vendors.--
484     (1)  The Department of Revenue may, for the purpose of
485collecting any delinquent taxes due from a taxpayer, including
486taxes for which a bill or notice has been generated, contract
487with any debt collection agency or attorney doing business
488within or without this state for the collection of such
489delinquent taxes including penalties and interest thereon. The
490department may also share confidential information pursuant to
491the contract necessary for the collection of delinquent taxes
492and taxes for which a billing or notice has been generated.
493Contracts will be made pursuant to chapter 287. The taxpayer
494must be notified by mail by the department, its employees, or
495its authorized representative 30 days prior to commencing any
496litigation to recover any delinquent taxes. The taxpayer must be
497notified by mail by the department 30 days prior to the
498department assigning the collection of any taxes to the debt
499collection agency.
500     (2)  The department may enter into contracts with any
501individual or business for the purpose of identifying intangible
502personal property tax liability. Contracts may provide for the
503identification of assets subject to the tax on intangible
504personal property, the determination of value of such property,
505the requirement for filing a tax return and the collection of
506taxes due, including applicable penalties and interest thereon.
507The department may share confidential information pursuant to
508the contract necessary for the identification of taxable
509intangible personal property. Contracts shall be made pursuant
510to chapter 287. The taxpayer must be notified by mail by the
511department 30 days prior to the department assigning
512identification of intangible personal property to an individual
513or business.
514     (2)(3)  Any contract may provide, in the discretion of the
515executive director of the Department of Revenue, the manner in
516which the compensation for such services will be paid. Under
517standards established by the department, such compensation shall
518be added to the amount of the tax and collected as a part
519thereof by the agency or deducted from the amount of tax,
520penalty, and interest actually collected.
521     (3)(4)  All funds collected under the terms of the
522contract, less the fees provided in the contract, shall be
523remitted to the department within 30 days from the date of
524collection from a taxpayer. Forms to be used for such purpose
525shall be prescribed by the department.
526     (4)(5)  The department shall require a bond from the debt
527collection agency or the individual or business contracted with
528under subsection (2) not in excess of $100,000 guaranteeing
529compliance with the terms of the contract. However, a bond of
530$10,000 is required from a debt collection agency if the agency
531does not actually collect and remit delinquent funds to the
532department.
533     (5)(6)  The department may, for the purpose of ascertaining
534the amount of or collecting any taxes due from a person doing
535mail order business in this state, contract with any auditing
536agency doing business within or without this state for the
537purpose of conducting an audit of such mail order business;
538however, such audit agency may not conduct an audit on behalf of
539the department of any person domiciled in this state, person
540registered for sales and use tax purposes in this state, or
541corporation filing a Florida corporate tax return, if any such
542person or corporation objects to such audit in writing to the
543department and the auditing agency. The department shall notify
544the taxpayer by mail at least 30 days before the department
545assigns the collection of such taxes.
546     (6)(7)  Confidential information shared by the department
547with debt collection or auditing agencies or individuals or
548businesses with which the department has contracted under
549subsection (2) is exempt from the provisions of s. 119.07(1),
550and debt collection or auditing agencies and individuals or
551businesses with which the department has contracted under
552subsection (2) shall be bound by the same requirements of
553confidentiality as the Department of Revenue. Breach of
554confidentiality is a misdemeanor of the first degree, punishable
555as provided by ss. 775.082 and 775.083.
556     (7)(8)(a)  The executive director of the department may
557enter into contracts with private vendors to develop and
558implement systems to enhance tax collections where compensation
559to the vendors is funded through increased tax collections. The
560amount of compensation paid to a vendor shall be based on a
561percentage of increased tax collections attributable to the
562system after all administrative and judicial appeals are
563exhausted, and the total amount of compensation paid to a vendor
564shall not exceed the maximum amount stated in the contract.
565     (b)  A person acting on behalf of the department under a
566contract authorized by this subsection does not exercise any of
567the powers of the department, except that the person is an agent
568of the department for the purposes of developing and
569implementing a system to enhance tax collection.
570     (c)  Disclosure of information under this subsection shall
571be pursuant to a written agreement between the executive
572director and the private vendors. The vendors shall be bound by
573the same requirements of confidentiality as the department.
574Breach of confidentiality is a misdemeanor of the first degree,
575punishable as provided in s. 775.082 or s. 775.083.
576     Section 22.  Subsection (1) and paragraphs (b) and (c) of
577subsection (3) of section 220.1845, Florida Statutes, are
578amended to read:
579     220.1845  Contaminated site rehabilitation tax credit.--
580     (1)  AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.--
581     (a)  A credit in the amount of 35 percent of the costs of
582voluntary cleanup activity that is integral to site
583rehabilitation at the following sites is available against any
584tax due for a taxable year under this chapter:
585     1.  A drycleaning-solvent-contaminated site eligible for
586state-funded site rehabilitation under s. 376.3078(3);
587     2.  A drycleaning-solvent-contaminated site at which
588cleanup is undertaken by the real property owner pursuant to s.
589376.3078(11), if the real property owner is not also, and has
590never been, the owner or operator of the drycleaning facility
591where the contamination exists; or
592     3.  A brownfield site in a designated brownfield area under
593s. 376.80.
594     (b)  A tax credit applicant, or multiple tax credit
595applicants working jointly to clean up a single site, may not be
596granted more than $250,000 per year in tax credits for each site
597voluntarily rehabilitated. Multiple tax credit applicants shall
598be granted tax credits in the same proportion as their
599contribution to payment of cleanup costs. Subject to the same
600conditions and limitations as provided in this section, a
601municipality, county, or other tax credit applicant which
602voluntarily rehabilitates a site may receive not more than
603$250,000 per year in tax credits which it can subsequently
604transfer subject to the provisions in paragraph (g)(h).
605     (c)  If the credit granted under this section is not fully
606used in any one year because of insufficient tax liability on
607the part of the corporation, the unused amount may be carried
608forward for a period not to exceed 5 years. The carryover credit
609may be used in a subsequent year when the tax imposed by this
610chapter for that year exceeds the credit for which the
611corporation is eligible in that year under this section after
612applying the other credits and unused carryovers in the order
613provided by s. 220.02(8). Five years after the date a credit is
614granted under this section, such credit expires and may not be
615used. However, if during the 5-year period the credit is
616transferred, in whole or in part, pursuant to paragraph (g)(h),
617each transferee has 5 years after the date of transfer to use
618its credit.
619     (d)  A taxpayer that files a consolidated return in this
620state as a member of an affiliated group under s. 220.131(1) may
621be allowed the credit on a consolidated return basis up to the
622amount of tax imposed upon the consolidated group.
623     (e)  A taxpayer that receives credit under s. 199.1055 is
624ineligible to receive credit under this section in a given tax
625year.
626     (e)(f)  A tax credit applicant that receives state-funded
627site rehabilitation under s. 376.3078(3) for rehabilitation of a
628drycleaning-solvent-contaminated site is ineligible to receive
629credit under this section for costs incurred by the tax credit
630applicant in conjunction with the rehabilitation of that site
631during the same time period that state-administered site
632rehabilitation was underway.
633     (f)(g)  The total amount of the tax credits which may be
634granted under this section and s. 199.1055 is $2 million
635annually.
636     (g)(h)1.  Tax credits that may be available under this
637section to an entity eligible under s. 376.30781 may be
638transferred after a merger or acquisition to the surviving or
639acquiring entity and used in the same manner and with the same
640limitations.
641     2.  The entity or its surviving or acquiring entity as
642described in subparagraph 1., may transfer any unused credit in
643whole or in units of no less than 25 percent of the remaining
644credit. The entity acquiring such credit may use it in the same
645manner and with the same limitation as described in this
646section. Such transferred credits may not be transferred again
647although they may succeed to a surviving or acquiring entity
648subject to the same conditions and limitations as described in
649this section.
650     3.  In the event the credit provided for under this section
651is reduced either as a result of a determination by the
652Department of Environmental Protection or an examination or
653audit by the Department of Revenue, such tax deficiency shall be
654recovered from the first entity, or the surviving or acquiring
655entity, to have claimed such credit up to the amount of credit
656taken. Any subsequent deficiencies shall be assessed against any
657entity acquiring and claiming such credit, or in the case of
658multiple succeeding entities in the order of credit succession.
659     (h)(i)  In order to encourage completion of site
660rehabilitation at contaminated sites being voluntarily cleaned
661up and eligible for a tax credit under this section, the tax
662credit applicant may claim an additional 10 percent of the total
663cleanup costs, not to exceed $50,000, in the final year of
664cleanup as evidenced by the Department of Environmental
665Protection issuing a "No Further Action" order for that site.
666     (3)  ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT
667FORFEITURE.--
668     (b)  In addition to its existing audit and investigation
669authority relating to chapter 199 and this chapter, the
670Department of Revenue may perform any additional financial and
671technical audits and investigations, including examining the
672accounts, books, or records of the tax credit applicant, which
673are necessary to verify the site rehabilitation costs included
674in a tax credit return and to ensure compliance with this
675section. The Department of Environmental Protection shall
676provide technical assistance, when requested by the Department
677of Revenue, on any technical audits performed pursuant to this
678section.
679     (c)  It is grounds for forfeiture of previously claimed and
680received tax credits if the Department of Revenue determines, as
681a result of either an audit or information received from the
682Department of Environmental Protection, that a taxpayer received
683tax credits pursuant to this section to which the taxpayer was
684not entitled. In the case of fraud, the taxpayer shall be
685prohibited from claiming any future tax credits under this
686section or s. 199.1055.
687     1.  The taxpayer is responsible for returning forfeited tax
688credits to the Department of Revenue, and such funds shall be
689paid into the General Revenue Fund of the state.
690     2.  The taxpayer shall file with the Department of Revenue
691an amended tax return or such other report as the Department of
692Revenue prescribes by rule and shall pay any required tax within
69360 days after the taxpayer receives notification from the
694Department of Environmental Protection pursuant to s. 376.30781
695that previously approved tax credits have been revoked or
696modified, if uncontested, or within 60 days after a final order
697is issued following proceedings involving a contested revocation
698or modification order.
699     3.  A notice of deficiency may be issued by the Department
700of Revenue at any time within 5 years after the date the
701taxpayer receives notification from the Department of
702Environmental Protection pursuant to s. 376.30781 that
703previously approved tax credits have been revoked or modified.
704If a taxpayer fails to notify the Department of Revenue of any
705change in its tax credit claimed, a notice of deficiency may be
706issued at any time. In either case, the amount of any proposed
707assessment set forth in such notice of deficiency shall be
708limited to the amount of any deficiency resulting under this
709section from the recomputation of the taxpayer's tax for the
710taxable year.
711     4.  Any taxpayer that fails to report and timely pay any
712tax due as a result of the forfeiture of its tax credit is in
713violation of this section and is subject to applicable penalty
714and interest.
715     Section 23.  Paragraph (a) of subsection (2) and
716subsections (3), (8), and (12) of section 376.30781, Florida
717Statutes, are amended to read:
718     376.30781  Partial tax credits for rehabilitation of
719drycleaning-solvent-contaminated sites and brownfield sites in
720designated brownfield areas; application process; rulemaking
721authority; revocation authority.--
722     (2)(a)  A credit in the amount of 35 percent of the costs
723of voluntary cleanup activity that is integral to site
724rehabilitation at the following sites is allowed pursuant to s.
725ss. 199.1055 and 220.1845:
726     1.  A drycleaning-solvent-contaminated site eligible for
727state-funded site rehabilitation under s. 376.3078(3);
728     2.  A drycleaning-solvent-contaminated site at which
729cleanup is undertaken by the real property owner pursuant to s.
730376.3078(11), if the real property owner is not also, and has
731never been, the owner or operator of the drycleaning facility
732where the contamination exists; or
733     3.  A brownfield site in a designated brownfield area under
734s. 376.80.
735     (3)  The Department of Environmental Protection shall be
736responsible for allocating the tax credits provided for in s.
737ss. 199.1055 and 220.1845, not to exceed a total of $2 million
738in tax credits annually.
739     (8)  On or before March 1, the Department of Environmental
740Protection shall inform each eligible tax credit applicant of
741the amount of its partial tax credit and provide each eligible
742tax credit applicant with a tax credit certificate that must be
743submitted with its tax return to the Department of Revenue to
744claim the tax credit or be transferred pursuant to s.
745199.1055(1)(g) or s. 220.1845(1)(h). Credits will not result in
746the payment of refunds if total credits exceed the amount of tax
747owed.
748     (12)  A tax credit applicant who receives state-funded site
749rehabilitation under s. 376.3078(3) for rehabilitation of a
750drycleaning-solvent-contaminated site is ineligible to receive a
751tax credit under s. 199.1055 or s. 220.1845 for costs incurred
752by the tax credit applicant in conjunction with the
753rehabilitation of that site during the same time period that
754state-administered site rehabilitation was underway.
755     Section 24.  Subsection (13) of section 493.6102, Florida
756Statutes, is amended to read:
757     493.6102  Inapplicability of this chapter.--This chapter
758shall not apply to:
759     (13)  Any individual employed as a security officer by a
760church or ecclesiastical or denominational organization having
761an established physical place of worship in this state at which
762nonprofit religious services and activities are regularly
763conducted or by a church cemetery religious institution as
764defined in s. 199.183(2)(a) to provide security on the
765institution property of the organization or cemetery, and who
766does not carry a firearm in the course of her or his duties.
767     Section 25.  Paragraph (b) of subsection (4) of section
768650.05, Florida Statutes, is amended to read:
769     650.05  Plans for coverage of employees of political
770subdivisions.--
771     (4)
772     (b)  The grants-in-aid and other revenue referred to in
773paragraph (a) specifically include, but are not limited to,
774minimum foundation program grants to public school districts and
775community colleges; gasoline, motor fuel, intangible, cigarette,
776racing, and insurance premium taxes distributed to political
777subdivisions; and amounts specifically appropriated as grants-
778in-aid for mental health, mental retardation, and mosquito
779control programs.
780     Section 26.  Subsection (1) of section 655.071, Florida
781Statutes, is amended to read:
782     655.071  International banking facilities; definitions;
783notice before establishment.--
784     (1)  "International banking facility" means a set of asset
785and liability accounts segregated on the books and records of a
786banking organization, as that term is defined in s. 201.23
787199.023, that includes only international banking facility
788deposits, borrowings, and extensions of credit, as those terms
789shall be defined by the commission pursuant to subsection (2).
790     Section 27. Effective January 1, 2008, subsections (5) and
791(6) of section 733.702, Florida Statutes, are amended to read:
792     733.702  Limitations on presentation of claims.--
793     (5)  The Department of Revenue may file a claim against the
794estate of a decedent for taxes due under chapter 199 after the
795expiration of the time for filing claims provided in subsection
796(1), if the department files its claim within 30 days after the
797service of the inventory. Upon filing of the estate tax return
798with the department as provided in s. 198.13, or to the extent
799the inventory or estate tax return is amended or supplemented,
800the department has the right to file a claim or to amend its
801previously filed claim within 30 days after service of the
802estate tax return, or an amended or supplemented inventory or
803filing of an amended or supplemental estate tax return, as to
804the additional information disclosed.
805     (5)(6)  Nothing in this section shall extend the
806limitations period set forth in s. 733.710.
807     Section 28.  Effective upon this act becoming a law, the
808executive director of the Department of Revenue may adopt
809emergency rules under ss. 120.536(1) and 120.54, Florida
810Statutes, to implement chapter 199, Florida Statutes, and all
811conditions are deemed met for the adoption of such rules.
812Notwithstanding any other provision of law, such emergency rules
813shall remain effective for 6 months after the date of adoption
814and may be renewed during the pendency of procedures to adopt
815rules addressing the subject of the emergency rules.
816     Section 29.  Except as otherwise provided herein, this act
817shall take effect January 1, 2006.


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