Senate Bill sb1590c1

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    Florida Senate - 2006                           CS for SB 1590

    By the Committee on Government Efficiency Appropriations; and
    Senator Rich




    593-1911-06

  1                      A bill to be entitled

  2         An act relating to the tax on sales, use, and

  3         other transactions; amending s. 212.12, F.S.;

  4         authorizing a dealer to elect to forego the

  5         collection allowance and direct that the

  6         collection allowance be transferred to the

  7         Educational Enhancement Trust Fund, to be

  8         distributed to school districts as specified;

  9         providing exceptions; providing for rulemaking

10         by the Department of Revenue; providing an

11         appropriation; providing for costs recovery;

12         requiring that the Department of Revenue report

13         collection information to the Department of

14         Education; providing an effective date.

15  

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

17  

18         Section 1.  Subsection (1) of section 212.12, Florida

19  Statutes, is amended to read:

20         212.12  Dealer's credit for collecting tax; penalties

21  for noncompliance; powers of Department of Revenue in dealing

22  with delinquents; brackets applicable to taxable transactions;

23  records required.--

24         (1)  Notwithstanding any other provision of law and for

25  the purpose of compensating persons granting licenses for and

26  the lessors of real and personal property taxed hereunder, for

27  the purpose of compensating dealers in tangible personal

28  property, for the purpose of compensating dealers providing

29  communication services and taxable services, for the purpose

30  of compensating owners of places where admissions are

31  collected, and for the purpose of compensating remitters of

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    Florida Senate - 2006                           CS for SB 1590
    593-1911-06




 1  any taxes or fees reported on the same documents utilized for

 2  the sales and use tax, as compensation for the keeping of

 3  prescribed records, filing timely tax returns, and the proper

 4  accounting and remitting of taxes by them, such seller,

 5  person, lessor, dealer, owner, and remitter (except dealers

 6  who make mail order sales) shall be allowed 2.5 percent of the

 7  amount of the tax due and accounted for and remitted to the

 8  department, in the form of a deduction in submitting his or

 9  her report and paying the amount due by him or her; the

10  department shall allow such deduction of 2.5 percent of the

11  amount of the tax to the person paying the same for remitting

12  the tax and making of tax returns in the manner herein

13  provided, for paying the amount due to be paid by him or her,

14  and as further compensation to dealers in tangible personal

15  property for the keeping of prescribed records and for

16  collection of taxes and remitting the same. However, if the

17  amount of the tax due and remitted to the department for the

18  reporting period exceeds $1,200, no allowance shall be allowed

19  for all amounts in excess of $1,200. The executive director of

20  the department is authorized to negotiate a collection

21  allowance, pursuant to rules promulgated by the department,

22  with a dealer who makes mail order sales.  The rules of the

23  department shall provide guidelines for establishing the

24  collection allowance based upon the dealer's estimated costs

25  of collecting the tax, the volume and value of the dealer's

26  mail order sales to purchasers in this state, and the

27  administrative and legal costs and likelihood of achieving

28  collection of the tax absent the cooperation of the dealer.

29  However, in no event shall the collection allowance negotiated

30  by the executive director exceed 10 percent of the tax

31  remitted for a reporting period.

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    Florida Senate - 2006                           CS for SB 1590
    593-1911-06




 1         (a)  The Department of Revenue may deny the collection

 2  allowance if a taxpayer files an incomplete return or if the

 3  required tax return or tax is delinquent at the time of

 4  payment.

 5         1.  An "incomplete return" is, for purposes of this

 6  chapter, a return which is lacking such uniformity,

 7  completeness, and arrangement that the physical handling,

 8  verification, review of the return, or determination of other

 9  taxes and fees reported on the return may not be readily

10  accomplished.

11         2.  The department shall adopt rules requiring such

12  information as it may deem necessary to ensure that the tax

13  levied hereunder is properly collected, reviewed, compiled,

14  reported, and enforced, including, but not limited to: the

15  amount of gross sales; the amount of taxable sales; the amount

16  of tax collected or due; the amount of lawful refunds,

17  deductions, or credits claimed; the amount claimed as the

18  dealer's collection allowance; the amount of penalty and

19  interest; the amount due with the return; and such other

20  information as the Department of Revenue may specify. The

21  department shall require that transient rentals and

22  agricultural equipment transactions be separately shown. Sales

23  made through vending machines as defined in s. 212.0515 must

24  be separately shown on the return. Sales made through

25  coin-operated amusement machines as defined by s. 212.02 and

26  the number of machines operated must be separately shown on

27  the return or on a form prescribed by the department. If a

28  separate form is required, the same penalties for late filing,

29  incomplete filing, or failure to file as provided for the

30  sales tax return shall apply to said form.

31  

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    Florida Senate - 2006                           CS for SB 1590
    593-1911-06




 1         (b)  The collection allowance and other credits or

 2  deductions provided in this chapter shall be applied

 3  proportionally to any taxes or fees reported on the same

 4  documents used for the sales and use tax.

 5         (c)1.  A dealer entitled to the collection allowance

 6  provided in this section may elect to forego the collection

 7  allowance and direct that said amount be transferred into the

 8  Educational Enhancement Trust Fund. Such an election must be

 9  made with the timely filing of a return and may not be

10  rescinded once made. If a dealer who makes such an election

11  files a delinquent return, underpays the tax, or files an

12  incomplete return, the amount transferred into the Educational

13  Enhancement Trust Fund shall be the amount of the collection

14  allowance remaining after resolution of liability for all of

15  the tax, interest, and penalty due on that return or

16  underpayment of tax. The Department of Education shall

17  distribute the remaining amount from the trust fund to the

18  school districts that have adopted resolutions stating that

19  those funds will be used to ensure that up-to-date technology

20  is purchased for the classrooms in the district and that

21  teachers are trained in the use of that technology. Revenues

22  collected in districts that do not adopt such a resolution

23  shall be equally distributed to districts that have adopted

24  such resolutions.

25         2.  This paragraph applies to all taxes, surtaxes, and

26  any local option taxes administered under this chapter and

27  remitted directly to the department. This paragraph does not

28  apply to any locally imposed and self-administered convention

29  development tax, tourist development tax, or tourist impact

30  tax administered under this chapter.

31  

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    Florida Senate - 2006                           CS for SB 1590
    593-1911-06




 1         Section 2.  Notwithstanding any provision of chapter

 2  120, Florida Statutes, to the contrary, the Department of

 3  Revenue may adopt rules to carry out the amendment made by

 4  this act to s. 212.12, Florida Statutes.

 5         Section 3.  The sum of $112,920 is appropriated from

 6  the General Revenue Fund to the Department of Revenue for the

 7  purpose of administering the amendment to s. 212.12, Florida

 8  Statutes, made by this act. The Department of Revenue shall

 9  retain all of the revenues from dealer-collection allowances

10  which are transferred into the Educational Enhancement Trust

11  Fund until the $112,920 appropriated from the General Revenue

12  Fund has been recovered.

13         Section 4.  Revenues from the dealer-collection

14  allowances shall be transferred quarterly from the General

15  Revenue Fund to the Educational Enhancement Trust Fund. The

16  Department of Revenue shall provide to the Department of

17  Education quarterly information about such revenues by county

18  to which the collection allowance was attributed.

19         Section 5.  This act shall take effect January 1, 2007.

20  

21          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
22                             SB 1590

23                                 

24  The committee substitute increases the General Revenue Fund
    appropriation to the Department of Revenue from $36,465 to
25  $112,920.

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