Senate Bill sb0714

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    Florida Senate - 2006                                   SB 714

    By Senator Atwater





    25-689A-06                                       See CS/HB 209

  1                      A bill to be entitled

  2         An act relating to the annual intangible

  3         personal property tax; repealing ss. 199.012,

  4         199.023, 199.032, 199.033, 199.042, 199.052,

  5         199.057, 199.062, 199.103, 199.1055, 199.106,

  6         199.175, and 199.185, F.S., relating to the

  7         annual intangible personal property tax;

  8         amending s. 199.303, F.S.; providing additional

  9         legislative intent relating to the annual

10         intangible personal property tax; amending ss.

11         28.35, 192.0105, 192.032, 192.042, 192.091,

12         193.114, 196.015, 196.199, 199.133, 199.183,

13         199.218, 199.232, 199.282, 199.292, 212.02,

14         213.053, 213.054, 213.27, 220.1845, 376.30781,

15         493.6102, 650.05, 655.071, and 733.702, F.S.,

16         to conform provisions to the repeal of the

17         annual intangible personal property tax;

18         providing for application of certain

19         collection, administration, and enforcement

20         provisions to taxation of certain leaseholds;

21         authorizing the Department of Revenue to adopt

22         emergency implementing rules for a certain

23         time; providing effective dates.

24  

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

26  

27         Section 1.  Sections 199.012, 199.023, 199.032,

28  199.033, 199.042, 199.052, 199.057, 199.062, 199.103,

29  199.1055, 199.106, 199.175, and 199.185, Florida Statutes, are

30  repealed.

31  

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1         Section 2.  Paragraph (c) of subsection (1) of section

 2  28.35, Florida Statutes, is amended to read:

 3         28.35  Florida Clerks of Court Operations

 4  Corporation.--

 5         (1)

 6         (c)  For the purposes of s. 199.183(1), The corporation

 7  shall be considered a political subdivision of the state and

 8  shall be exempt from the corporate income tax. The corporation

 9  is not subject to the procurement provisions of chapter 287

10  and policies and decisions of the corporation relating to

11  incurring debt, levying assessments, and the sale, issuance,

12  continuation, terms, and claims under corporation policies,

13  and all services relating thereto, are not subject to the

14  provisions of chapter 120.

15         Section 3.  Paragraph (a) of subsection (4) of section

16  192.0105, Florida Statutes, is amended to read:

17         192.0105  Taxpayer rights.--There is created a Florida

18  Taxpayer's Bill of Rights for property taxes and assessments

19  to guarantee that the rights, privacy, and property of the

20  taxpayers of this state are adequately safeguarded and

21  protected during tax levy, assessment, collection, and

22  enforcement processes administered under the revenue laws of

23  this state. The Taxpayer's Bill of Rights compiles, in one

24  document, brief but comprehensive statements that summarize

25  the rights and obligations of the property appraisers, tax

26  collectors, clerks of the court, local governing boards, the

27  Department of Revenue, and taxpayers. Additional rights

28  afforded to payors of taxes and assessments imposed under the

29  revenue laws of this state are provided in s. 213.015. The

30  rights afforded taxpayers to assure that their privacy and

31  property are safeguarded and protected during tax levy,

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  assessment, and collection are available only insofar as they

 2  are implemented in other parts of the Florida Statutes or

 3  rules of the Department of Revenue. The rights so guaranteed

 4  to state taxpayers in the Florida Statutes and the

 5  departmental rules include:

 6         (4)  THE RIGHT TO CONFIDENTIALITY.--

 7         (a)  The right to have information kept confidential,

 8  including federal tax information, ad valorem tax returns,

 9  social security numbers, all financial records produced by the

10  taxpayer, Form DR-219 returns for documentary stamp tax

11  information, and sworn statements of gross income, copies of

12  federal income tax returns for the prior year, wage and

13  earnings statements (W-2 forms), and other documents (see ss.

14  192.105, 193.074, 193.114(5)(6), 195.027(3) and (6), and

15  196.101(4)(c)).

16         Section 4.  Subsections (5), (6), and (7) of section

17  192.032, Florida Statutes, are amended to read:

18         192.032  Situs of property for assessment

19  purposes.--All property shall be assessed according to its

20  situs as follows:

21         (5)  Intangible personal property, according to the

22  rules laid down in chapter 199.

23         (5)(6)(a)  Notwithstanding the provisions of subsection

24  (2), personal property used as a marine cargo container in the

25  conduct of foreign or interstate commerce shall not be deemed

26  to have acquired a taxable situs within a county when the

27  property is temporarily halted or stored within the state for

28  a period not exceeding 180 days.

29         (b)  "Marine cargo container" means a nondisposable

30  receptacle which is of a permanent character, strong enough to

31  be suitable for repeated use; which is specifically designed

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  to facilitate the carriage of goods by one or more modes of

 2  transport, one of which shall be by ocean vessel, without

 3  intermediate reloading; and which is fitted with devices

 4  permitting its ready handling, particularly in the transfer

 5  from one transport mode to another. The term "marine cargo

 6  container" includes a container when carried on a chassis but

 7  does not include a vehicle or packaging.

 8         (6)(7)  Notwithstanding any other provision of this

 9  section, tangible personal property used in traveling shows

10  such as carnivals, ice shows, or circuses shall be deemed to

11  be physically present or habitually located or typically

12  present only to the extent the value of such property is

13  multiplied by a fraction, the numerator of which is the number

14  of days such property is present in Florida during the taxable

15  year and the denominator of which is the number of days in the

16  taxable year. However, railroad property of such traveling

17  shows shall be taxable under s. 193.085(4)(b) and not under

18  this section.

19         Section 5.  Subsection (3) of section 192.042, Florida

20  Statutes, is amended to read:

21         192.042  Date of assessment.--All property shall be

22  assessed according to its just value as follows:

23         (3)  Intangible personal property, according to the

24  rules laid down in chapter 199.

25         Section 6.  Subsections (5) and (6) of section 192.091,

26  Florida Statutes, are amended to read:

27         192.091  Commissions of property appraisers and tax

28  collectors.--

29         (5)  Provided, that The provisions of this section

30  shall not apply to commissions on intangible property taxes or

31  drainage district or drainage subdistrict taxes.; and

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1         (6)  If Provided, further, that where any property

 2  appraiser or tax collector in the state is receiving

 3  compensation for expenses in conducting his or her office or

 4  by way of salary pursuant to any act of the Legislature other

 5  than the general law fixing compensation of property

 6  appraisers, such property appraiser or tax collector may file

 7  a declaration in writing with the board of county

 8  commissioners of his or her county electing to come under the

 9  provisions of this section, and thereupon such property

10  appraiser or tax collector shall be paid compensation in

11  accordance with the provisions hereof, and shall not be

12  entitled to the benefit of the said special or local act. If

13  such property appraiser or tax collector does not so elect, he

14  or she shall continue to be paid such compensation as may now

15  be provided by law for such property appraiser or tax

16  collector.

17         Section 7.  Subsections (4), (5), and (6) of section

18  193.114, Florida Statutes, are amended to read:

19         193.114  Preparation of assessment rolls.--

20         (4)  The department shall promulgate regulations and

21  forms for the preparation of the intangible personal property

22  roll to comply with chapter 199.

23         (4)(5)  For every change made to the assessed or

24  taxable value of a parcel on an assessment roll subsequent to

25  the mailing of the notice provided for in s. 200.069, the

26  property appraiser shall document the reason for such change

27  in the public records of the office of the property appraiser

28  in a manner acceptable to the executive director or the

29  executive director's designee. For every change that decreases

30  the assessed or taxable value of a parcel on an assessment

31  roll between the time of complete submission of the tax roll

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  pursuant to s. 193.1142(3) and mailing of the notice provided

 2  for in s. 200.069, the property appraiser shall document the

 3  reason for such change in the public records of the office of

 4  the property appraiser in a manner acceptable to the executive

 5  director or the executive director's designee. Changes made by

 6  the value adjustment board are not subject to the requirements

 7  of this subsection.

 8         (5)(6)  For proprietary purposes, including the

 9  furnishing or sale of copies of the tax roll under s.

10  119.07(1), the property appraiser is the custodian of the tax

11  roll and the copies of it which are maintained by any state

12  agency. The department or any state or local agency may use

13  copies of the tax roll received by it for official purposes

14  and shall permit inspection and examination thereof under s.

15  119.07(1), but is not required to furnish copies of the

16  records. A social security number submitted under s.

17  196.011(1) is confidential and exempt from s. 24(a), Art. I of

18  the State Constitution and the provisions of s. 119.07(1). A

19  copy of documents containing the numbers furnished or sold by

20  the property appraiser, except a copy furnished to the

21  department, or a copy of documents containing social security

22  numbers provided by the department or any state or local

23  agency for inspection or examination by the public, must

24  exclude those social security numbers.

25         Section 8.  Subsection (9) of section 196.015, Florida

26  Statutes, is amended to read:

27         196.015  Permanent residency; factual determination by

28  property appraiser.--Intention to establish a permanent

29  residence in this state is a factual determination to be made,

30  in the first instance, by the property appraiser. Although any

31  one factor is not conclusive of the establishment or

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  nonestablishment of permanent residence, the following are

 2  relevant factors that may be considered by the property

 3  appraiser in making his or her determination as to the intent

 4  of a person claiming a homestead exemption to establish a

 5  permanent residence in this state:

 6         (9)  The previous filing of Florida intangible tax

 7  returns by the applicant.

 8         Section 9.  Paragraph (b) of subsection (2) of section

 9  196.199, Florida Statutes, is amended to read:

10         196.199  Government property exemption.--

11         (2)  Property owned by the following governmental units

12  but used by nongovernmental lessees shall only be exempt from

13  taxation under the following conditions:

14         (b)  Except as provided in paragraph (c), the exemption

15  provided by this subsection shall not apply to those portions

16  of a leasehold or other interest defined by s. 199.023(1)(d),

17  Florida Statutes (2005), subject to the provisions of

18  subsection (7). Such leasehold or other interest shall be

19  taxed only as intangible personal property pursuant to chapter

20  199, Florida Statutes (2005), if rental payments are due in

21  consideration of such leasehold or other interest. All

22  applicable collection, administration, and enforcement

23  provisions of chapter 199, Florida Statutes (2005), shall

24  apply to taxation of such leaseholds. If no rental payments

25  are due pursuant to the agreement creating such leasehold or

26  other interest, the leasehold or other interest shall be taxed

27  as real property. Nothing in this paragraph shall be deemed to

28  exempt personal property, buildings, or other real property

29  improvements owned by the lessee from ad valorem taxation.

30         Section 10.  Section 199.133, Florida Statutes, is

31  amended to read:

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1         199.133  Levy of nonrecurring tax; relationship to

 2  annual tax.--

 3         (1)  A one-time nonrecurring tax of 2 mills is hereby

 4  imposed on each dollar of the just valuation of all notes,

 5  bonds, and other obligations for payment of money which are

 6  secured by mortgage, deed of trust, or other lien upon real

 7  property situated in this state.  This tax shall be assessed

 8  and collected as provided by this chapter.

 9         (2)  The nonrecurring tax shall apply to a note, bond,

10  or other obligation for payment of money only to the extent it

11  is secured by mortgage, deed of trust, or other lien upon real

12  property situated in this state. Where a note, bond, or other

13  obligation is secured by personal property or by real property

14  situated outside this state, as well as by mortgage, deed of

15  trust, or other lien upon real property situated in this

16  state, then the nonrecurring tax shall apply to that portion

17  of the note, bond, or other obligation which bears the same

18  ratio to the entire principal balance of the note, bond, or

19  other obligation as the value of the real property situated in

20  this state bears to the value of all of the security; however,

21  if the security is solely made up of personal property and

22  real property situated in this state, the taxpayer may elect

23  to apportion the taxes based upon the value of the collateral,

24  if any, to which the taxpayer by law or contract must look

25  first for collection. In no event shall the portion of the

26  note, bond, or other obligation which is subject to the

27  nonrecurring tax exceed in value the value of the real

28  property situated in this state which is the security. The

29  portion of a note, bond, or other obligation which is not

30  subject to the nonrecurring tax shall be subject to the annual

31  tax unless otherwise exempt.

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1         Section 11.  Section 199.183, Florida Statutes, is

 2  amended to read:

 3         199.183  Taxpayers exempt from annual and nonrecurring

 4  taxes.--

 5         (1)  Intangible personal property owned by this state

 6  or any of its political subdivisions or municipalities shall

 7  be exempt from taxation under this chapter. This exemption

 8  does not apply to:

 9         (a)  Any leasehold or other interest that is described

10  in s. 199.023(1)(d), Florida Statutes (2005).

11         (b)  Property related to the provision of two-way

12  telecommunications services to the public for hire by the use

13  of a telecommunications facility, as defined in s. 364.02(15),

14  and for which a certificate is required under chapter 364,

15  when the service is provided by any county, municipality, or

16  other political subdivision of the state. Any immunity of any

17  political subdivision of the state or other entity of local

18  government from taxation of the property used to provide

19  telecommunication services that is taxed as a result of this

20  paragraph is hereby waived. However, intangible personal

21  property related to the provision of telecommunications

22  services provided by the operator of a public-use airport, as

23  defined in s. 332.004, for the operator's provision of

24  telecommunications services for the airport or its tenants,

25  concessionaires, or licensees, and intangible personal

26  property related to the provision of telecommunications

27  services provided by a public hospital, are exempt from

28  taxation under this chapter.

29         (2)  Intangible personal property owned by nonprofit

30  religious, nonprofit educational, or nonprofit charitable

31  institutions shall be exempt from taxation under this chapter.

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  This exemption shall be strictly defined, limited, and applied

 2  in each category as follows:

 3         (a)  "Religious institutions" means churches and

 4  ecclesiastical or denominational organizations having

 5  established physical places for worship in this state at which

 6  nonprofit religious services and activities are regularly

 7  conducted, as well as church cemeteries.

 8         (b)  "Educational institutions" means only:

 9         1.  Public or nonprofit private schools, colleges, or

10  universities conducting regular classes and courses of study

11  required for accreditation by, or membership in, the Southern

12  Association of Colleges and Schools, Department of Education,

13  or the Florida Council of Independent Schools; or

14         2.  Nonprofit libraries, art galleries, and museums

15  open to the public.

16         (c)  "Charitable institutions" means only:

17         1.  Nonprofit corporations operating physical

18  facilities in this state at which are provided charitable

19  services, a reasonable percentage of which shall be without

20  cost to those unable to pay; or

21         2.  Those institutions qualified as charitable under s.

22  501(c)(3) of the United States Internal Revenue Code of 1954.

23  

24  Intangible personal property shall not be deemed to be owned

25  by such exempt institutions if it is held in a trust of any

26  kind under which the institution has no present interest in

27  the trust principal except the right to compel the performance

28  of the trust agreement.

29         (3)  Every national bank having its principal place of

30  business in another state, but operating a credit card credit

31  application processing, customer service, or collection

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  operation in this state, that is not considered a bank under

 2  the provisions of 12 U.S.C. s. 1841(c)(2)(F), is exempt from

 3  paying the tax imposed by this chapter on credit card

 4  receivables owed to the bank by credit card holders domiciled

 5  outside this state.

 6         (4)  Intangible personal property that is owned,

 7  managed, or controlled by a trustee of a trust is exempt from

 8  annual tax under this chapter. This exemption does not exempt

 9  from annual tax a resident of this state who has a taxable

10  beneficial interest, as defined in s. 199.023, in a trust.

11         Section 12.  Section 199.218, Florida Statutes, is

12  amended to read:

13         199.218  Books and records.--

14         (1)  Each taxpayer shall retain all books and other

15  records necessary to identify the taxpayer's intangible

16  personal property and to determine any tax due under this

17  chapter, as well as all books and other records otherwise

18  required by rule of the department with respect to any such

19  tax, until the department's power to make an assessment with

20  respect to such tax has terminated under s. 95.091(3).

21         (2)  Each broker subject to the provisions of s.

22  199.062 shall preserve all books and other records relating to

23  the information reported under s. 199.062 or otherwise

24  required by rule of the department for a period of 3 years

25  from the due date of the report.

26         Section 13.  Paragraph (a) of subsection (1) and

27  subsection (3) of section 199.232, Florida Statutes, are

28  amended to read:

29         199.232  Powers of department.--

30  

31  

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1         (1)(a)  The department may audit the books and records

 2  of any person to determine whether an annual tax or a

 3  nonrecurring tax has been properly paid.

 4         (3)  With or without an audit, the department may

 5  assess any tax deficiency resulting from nonpayment or

 6  underpayment of the tax, as well as any applicable interest

 7  and penalties. The department shall assess on the basis of the

 8  best information available to it, including estimates based on

 9  the best information available to it if the taxpayer fails to

10  permit inspection of the taxpayer's records, fails to file an

11  annual return, files a grossly incorrect return, or files a

12  false and fraudulent return.

13         Section 14.  Subsections (2), (3), (4), (6), and (8) of

14  section 199.282, Florida Statutes, are amended, and

15  subsections (5), (7), and (9) of that section are renumbered

16  as subsections (4), (5), and (7), respectively, to read:

17         199.282  Penalties for violation of this chapter.--

18         (2)  If any annual or nonrecurring tax is not paid by

19  the statutory due date, then despite any extension granted

20  under s. 199.232(6), interest shall run on the unpaid balance

21  from such due date until paid at the rate of 12 percent per

22  year.

23         (3)(a)  If any annual or nonrecurring tax is not paid

24  by the due date, a delinquency penalty shall be charged. The

25  delinquency penalty shall be 10 percent of the delinquent tax

26  for each calendar month or portion thereof from the due date

27  until paid, up to a limit of 50 percent of the total tax not

28  timely paid.

29         (b)  If any annual tax return required by this chapter

30  is not filed by the due date, a penalty of 10 percent of the

31  tax due with the return shall be charged for each calendar

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  month or portion thereof during which the return remains

 2  unfiled, up to a limit of 50 percent of the total tax due.

 3  

 4  For any penalty assessed under this subsection, the combined

 5  total for all penalties assessed under paragraphs (a) and (b)

 6  shall not exceed 10 percent per calendar month, up to a limit

 7  of 50 percent of the total tax due.

 8         (4)  If an annual tax return is filed and property is

 9  either omitted from it or undervalued, then a specific penalty

10  shall be charged. The specific penalty shall be 10 percent of

11  the tax attributable to each omitted item or to each

12  undervaluation. No delinquency or late filing penalty shall be

13  charged with respect to any undervaluation.

14         (6)  Late reporting penalties shall be imposed as

15  follows:

16         (a)  A penalty of $100 upon any corporation that does

17  not timely file a written notice required under s.

18  199.057(2)(c).

19         (b)  An initial penalty of $10 per customer position

20  statement, plus an additional penalty of the greater of 1

21  percent of the initial penalty or $50 for each month or

22  portion of a month, from the date due until filing is made,

23  upon any security dealer or investment adviser who does not

24  timely file or fails to file the statements required by s.

25  199.062(1). The submission of a position statement that does

26  not comply with the department's specifications and

27  instructions or the submission of an inaccurate position

28  statement is not a timely filing. The department shall notify

29  any security dealer or investment adviser who fails to timely

30  file the required statements. The minimum penalty imposed upon

31  

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  a security dealer or investment adviser under this paragraph

 2  is $100.

 3         (6)(8)  Any person who fails or refuses to file an

 4  annual return, or who fails or refuses to make records

 5  available for inspection, when requested to do so by the

 6  department is guilty of a misdemeanor of the first degree,

 7  punishable as provided in s. 775.082 or s. 775.083.

 8         Section 15.  Section 199.292, Florida Statutes, is

 9  amended to read:

10         199.292  Disposition of intangible personal property

11  taxes.--All intangible personal property taxes collected

12  pursuant to this chapter, except for revenues derived from the

13  annual tax on a leasehold described in s. 199.023(1)(d),

14  Florida Statutes (2005), shall be deposited into the General

15  Revenue Fund. Revenues derived from the annual tax on a

16  leasehold described in s. 199.023(1)(d), Florida Statutes

17  (2005), shall be returned to the local school board for the

18  county in which the property subject to the leasehold is

19  situated.

20         Section 16.  Subsection (3) is added to section

21  199.303, Florida Statutes, to read:

22         199.303  Declaration of legislative intent.--

23         (3)  It is hereby declared to be the specific intent of

24  the Legislature that all annual intangible personal property

25  taxes imposed as provided by law for calendar years 2006 and

26  prior shall remain in full force and effect during the period

27  specified by s. 95.091 for the year in which the tax was due.

28  It is further the intent of the Legislature that the

29  department continue to assess and collect all taxes due to the

30  state under such provisions for all periods available for

31  

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  assessment, as provided for the year in which tax was due by

 2  s. 95.091.

 3         Section 17.  Subsection (19) of section 212.02, Florida

 4  Statutes, is amended to read:

 5         212.02  Definitions.--The following terms and phrases

 6  when used in this chapter have the meanings ascribed to them

 7  in this section, except where the context clearly indicates a

 8  different meaning:

 9         (19)  "Tangible personal property" means and includes

10  personal property which may be seen, weighed, measured, or

11  touched or is in any manner perceptible to the senses,

12  including electric power or energy, boats, motor vehicles and

13  mobile homes as defined in s. 320.01(1) and (2), aircraft as

14  defined in s. 330.27, and all other types of vehicles. The

15  term "tangible personal property" does not include stocks,

16  bonds, notes, insurance, or other obligations or securities;

17  intangibles as defined by the intangible tax law of the state;

18  or pari-mutuel tickets sold or issued under the racing laws of

19  the state.

20         Section 18.  Paragraph (p) of subsection (7) and

21  paragraph (a) of subsection (14) of section 213.053, Florida

22  Statutes, are amended to read:

23         213.053  Confidentiality and information sharing.--

24         (7)  Notwithstanding any other provision of this

25  section, the department may provide:

26         (p)  Information relative to ss. 199.1055, 220.1845,

27  and 376.30781 to the Department of Environmental Protection in

28  the conduct of its official business.

29  

30  Disclosure of information under this subsection shall be

31  pursuant to a written agreement between the executive director

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  and the agency. Such agencies, governmental or

 2  nongovernmental, shall be bound by the same requirements of

 3  confidentiality as the Department of Revenue. Breach of

 4  confidentiality is a misdemeanor of the first degree,

 5  punishable as provided by s. 775.082 or s. 775.083.

 6         (14)(a)  Notwithstanding any other provision of this

 7  section, the department shall, subject to the safeguards

 8  specified in paragraph (c), disclose to the Division of

 9  Corporations of the Department of State the name, address,

10  federal employer identification number, and duration of tax

11  filings with this state of all corporate or partnership

12  entities which are not on file or have a dissolved status with

13  the Division of Corporations and which have filed tax returns

14  pursuant to either chapter 199 or chapter 220.

15         Section 19.  Section 213.054, Florida Statutes, is

16  amended to read:

17         213.054  Persons claiming tax exemptions or deductions;

18  annual report.--The Department of Revenue shall be responsible

19  for monitoring the utilization of tax exemptions and tax

20  deductions authorized pursuant to chapter 81-179, Laws of

21  Florida. On or before September 1 of each year, the department

22  shall report to the Chief Financial Officer the names and

23  addresses of all persons who have claimed an exemption

24  pursuant to s. 199.185(1)(i) or a deduction pursuant to s.

25  220.63(5).

26         Section 20.  Section 213.27, Florida Statutes, is

27  amended to read:

28         213.27  Contracts with debt collection agencies and

29  certain vendors.--

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

31  collecting any delinquent taxes due from a taxpayer, including

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




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

 2  with any debt collection agency or attorney doing business

 3  within or without this state for the collection of such

 4  delinquent taxes, including penalties and interest thereon.

 5  The department may also share confidential information

 6  pursuant to the contract necessary for the collection of

 7  delinquent taxes and taxes for which a billing or notice has

 8  been generated. Contracts will be made pursuant to chapter

 9  287. The taxpayer must be notified by mail by the department,

10  its employees, or its authorized representative at least 30

11  days prior to commencing any litigation to recover any

12  delinquent taxes. The taxpayer must be notified by mail by the

13  department at least 30 days prior to the initial assignment by

14  the department of the taxpayer's account for the collection of

15  any taxes by the debt collection agency.

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

17  individual or business for the purpose of identifying

18  intangible personal property tax liability. Contracts may

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

20  intangible personal property, the determination of value of

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

22  collection of taxes due, including applicable penalties and

23  interest thereon. The department may share confidential

24  information pursuant to the contract necessary for the

25  identification of taxable intangible personal property.

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

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

28  prior to the department assigning identification of intangible

29  personal property to an individual or business.

30         (2)(3)  Any contract may provide, in the discretion of

31  the executive director of the Department of Revenue, the

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  manner in which the compensation for such services will be

 2  paid. Under standards established by the department, such

 3  compensation shall be added to the amount of the tax and

 4  collected as a part thereof by the agency or deducted from the

 5  amount of tax, penalty, and interest actually collected.

 6         (3)(4)  All funds collected under the terms of the

 7  contract, less the fees provided in the contract, shall be

 8  remitted to the department within 30 days from the date of

 9  collection from a taxpayer. Forms to be used for such purpose

10  shall be prescribed by the department.

11         (4)(5)  The department shall require a bond from the

12  debt collection agency or the individual or business

13  contracted with under subsection (2) not in excess of $100,000

14  guaranteeing compliance with the terms of the contract.

15  However, a bond of $10,000 is required from a debt collection

16  agency if the agency does not actually collect and remit

17  delinquent funds to the department.

18         (5)(6)  The department may, for the purpose of

19  ascertaining the amount of or collecting any taxes due from a

20  person doing mail order business in this state, contract with

21  any auditing agency doing business within or without this

22  state for the purpose of conducting an audit of such mail

23  order business; however, such audit agency may not conduct an

24  audit on behalf of the department of any person domiciled in

25  this state, person registered for sales and use tax purposes

26  in this state, or corporation filing a Florida corporate tax

27  return, if any such person or corporation objects to such

28  audit in writing to the department and the auditing agency.

29  The department shall notify the taxpayer by mail at least 30

30  days before the department assigns the collection of such

31  taxes.

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1         (6)(7)  Confidential information shared by the

 2  department with debt collection or auditing agencies or

 3  individuals or businesses with which the department has

 4  contracted under subsection (2) is exempt from the provisions

 5  of s. 119.07(1), and debt collection or auditing agencies and

 6  individuals or businesses with which the department has

 7  contracted under subsection (2) shall be bound by the same

 8  requirements of confidentiality as the Department of Revenue.

 9  Breach of confidentiality is a misdemeanor of the first

10  degree, punishable as provided by ss. 775.082 and 775.083.

11         (7)(8)(a)  The executive director of the department may

12  enter into contracts with private vendors to develop and

13  implement systems to enhance tax collections where

14  compensation to the vendors is funded through increased tax

15  collections. The amount of compensation paid to a vendor shall

16  be based on a percentage of increased tax collections

17  attributable to the system after all administrative and

18  judicial appeals are exhausted, and the total amount of

19  compensation paid to a vendor shall not exceed the maximum

20  amount stated in the contract.

21         (b)  A person acting on behalf of the department under

22  a contract authorized by this subsection does not exercise any

23  of the powers of the department, except that the person is an

24  agent of the department for the purposes of developing and

25  implementing a system to enhance tax collection.

26         (c)  Disclosure of information under this subsection

27  shall be pursuant to a written agreement between the executive

28  director and the private vendors. The vendors shall be bound

29  by the same requirements of confidentiality as the department.

30  Breach of confidentiality is a misdemeanor of the first

31  degree, punishable as provided in s. 775.082 or s. 775.083.

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1         Section 21.  Subsection (1) and paragraphs (b) and (c)

 2  of subsection (3) of section 220.1845, Florida Statutes, are

 3  amended to read:

 4         220.1845  Contaminated site rehabilitation tax

 5  credit.--

 6         (1)  AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.--

 7         (a)  A credit in the amount of 35 percent of the costs

 8  of voluntary cleanup activity that is integral to site

 9  rehabilitation at the following sites is available against any

10  tax due for a taxable year under this chapter:

11         1.  A drycleaning-solvent-contaminated site eligible

12  for state-funded site rehabilitation under s. 376.3078(3);

13         2.  A drycleaning-solvent-contaminated site at which

14  cleanup is undertaken by the real property owner pursuant to

15  s. 376.3078(11), if the real property owner is not also, and

16  has never been, the owner or operator of the drycleaning

17  facility where the contamination exists; or

18         3.  A brownfield site in a designated brownfield area

19  under s. 376.80.

20         (b)  A tax credit applicant, or multiple tax credit

21  applicants working jointly to clean up a single site, may not

22  be granted more than $250,000 per year in tax credits for each

23  site voluntarily rehabilitated. Multiple tax credit applicants

24  shall be granted tax credits in the same proportion as their

25  contribution to payment of cleanup costs. Subject to the same

26  conditions and limitations as provided in this section, a

27  municipality, county, or other tax credit applicant which

28  voluntarily rehabilitates a site may receive not more than

29  $250,000 per year in tax credits which it can subsequently

30  transfer subject to the provisions in paragraph (g)(h).

31  

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1         (c)  If the credit granted under this section is not

 2  fully used in any one year because of insufficient tax

 3  liability on the part of the corporation, the unused amount

 4  may be carried forward for a period not to exceed 5 years. The

 5  carryover credit may be used in a subsequent year when the tax

 6  imposed by this chapter for that year exceeds the credit for

 7  which the corporation is eligible in that year under this

 8  section after applying the other credits and unused carryovers

 9  in the order provided by s. 220.02(8). Five years after the

10  date a credit is granted under this section, such credit

11  expires and may not be used. However, if during the 5-year

12  period the credit is transferred, in whole or in part,

13  pursuant to paragraph (g) (h), each transferee has 5 years

14  after the date of transfer to use its credit.

15         (d)  A taxpayer that files a consolidated return in

16  this state as a member of an affiliated group under s.

17  220.131(1) may be allowed the credit on a consolidated return

18  basis up to the amount of tax imposed upon the consolidated

19  group.

20         (e)  A taxpayer that receives credit under s. 199.1055

21  is ineligible to receive credit under this section in a given

22  tax year.

23         (e)(f)  A tax credit applicant that receives

24  state-funded site rehabilitation under s. 376.3078(3) for

25  rehabilitation of a drycleaning-solvent-contaminated site is

26  ineligible to receive credit under this section for costs

27  incurred by the tax credit applicant in conjunction with the

28  rehabilitation of that site during the same time period that

29  state-administered site rehabilitation was underway.

30  

31  

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1         (f)(g)  The total amount of the tax credits which may

 2  be granted under this section and s. 199.1055 is $2 million

 3  annually.

 4         (g)(h)1.  Tax credits that may be available under this

 5  section to an entity eligible under s. 376.30781 may be

 6  transferred after a merger or acquisition to the surviving or

 7  acquiring entity and used in the same manner and with the same

 8  limitations.

 9         2.  The entity or its surviving or acquiring entity as

10  described in subparagraph 1., may transfer any unused credit

11  in whole or in units of no less than 25 percent of the

12  remaining credit. The entity acquiring such credit may use it

13  in the same manner and with the same limitation as described

14  in this section. Such transferred credits may not be

15  transferred again although they may succeed to a surviving or

16  acquiring entity subject to the same conditions and

17  limitations as described in this section.

18         3.  In the event the credit provided for under this

19  section is reduced either as a result of a determination by

20  the Department of Environmental Protection or an examination

21  or audit by the Department of Revenue, such tax deficiency

22  shall be recovered from the first entity, or the surviving or

23  acquiring entity, to have claimed such credit up to the amount

24  of credit taken. Any subsequent deficiencies shall be assessed

25  against any entity acquiring and claiming such credit, or in

26  the case of multiple succeeding entities in the order of

27  credit succession.

28         (h)(i)  In order to encourage completion of site

29  rehabilitation at contaminated sites being voluntarily cleaned

30  up and eligible for a tax credit under this section, the tax

31  credit applicant may claim an additional 10 percent of the

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  total cleanup costs, not to exceed $50,000, in the final year

 2  of cleanup as evidenced by the Department of Environmental

 3  Protection issuing a "No Further Action" order for that site.

 4         (3)  ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT

 5  FORFEITURE.--

 6         (b)  In addition to its existing audit and

 7  investigation authority relating to chapter 199 and this

 8  chapter, the Department of Revenue may perform any additional

 9  financial and technical audits and investigations, including

10  examining the accounts, books, or records of the tax credit

11  applicant, which are necessary to verify the site

12  rehabilitation costs included in a tax credit return and to

13  ensure compliance with this section. The Department of

14  Environmental Protection shall provide technical assistance,

15  when requested by the Department of Revenue, on any technical

16  audits performed pursuant to this section.

17         (c)  It is grounds for forfeiture of previously claimed

18  and received tax credits if the Department of Revenue

19  determines, as a result of either an audit or information

20  received from the Department of Environmental Protection, that

21  a taxpayer received tax credits pursuant to this section to

22  which the taxpayer was not entitled. In the case of fraud, the

23  taxpayer shall be prohibited from claiming any future tax

24  credits under this section or s. 199.1055.

25         1.  The taxpayer is responsible for returning forfeited

26  tax credits to the Department of Revenue, and such funds shall

27  be paid into the General Revenue Fund of the state.

28         2.  The taxpayer shall file with the Department of

29  Revenue an amended tax return or such other report as the

30  Department of Revenue prescribes by rule and shall pay any

31  required tax within 60 days after the taxpayer receives

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  notification from the Department of Environmental Protection

 2  pursuant to s. 376.30781 that previously approved tax credits

 3  have been revoked or modified, if uncontested, or within 60

 4  days after a final order is issued following proceedings

 5  involving a contested revocation or modification order.

 6         3.  A notice of deficiency may be issued by the

 7  Department of Revenue at any time within 5 years after the

 8  date the taxpayer receives notification from the Department of

 9  Environmental Protection pursuant to s. 376.30781 that

10  previously approved tax credits have been revoked or modified.

11  If a taxpayer fails to notify the Department of Revenue of any

12  change in its tax credit claimed, a notice of deficiency may

13  be issued at any time. In either case, the amount of any

14  proposed assessment set forth in such notice of deficiency

15  shall be limited to the amount of any deficiency resulting

16  under this section from the recomputation of the taxpayer's

17  tax for the taxable year.

18         4.  Any taxpayer that fails to report and timely pay

19  any tax due as a result of the forfeiture of its tax credit is

20  in violation of this section and is subject to applicable

21  penalty and interest.

22         Section 22.  Paragraph (a) of subsection (2) and

23  subsections (3), (8), and (12) of section 376.30781, Florida

24  Statutes, are amended to read:

25         376.30781  Partial tax credits for rehabilitation of

26  drycleaning-solvent-contaminated sites and brownfield sites in

27  designated brownfield areas; application process; rulemaking

28  authority; revocation authority.--

29         (2)(a)  A credit in the amount of 35 percent of the

30  costs of voluntary cleanup activity that is integral to site

31  

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  rehabilitation at the following sites is allowed pursuant to

 2  s. ss. 199.1055 and 220.1845:

 3         1.  A drycleaning-solvent-contaminated site eligible

 4  for state-funded site rehabilitation under s. 376.3078(3);

 5         2.  A drycleaning-solvent-contaminated site at which

 6  cleanup is undertaken by the real property owner pursuant to

 7  s. 376.3078(11), if the real property owner is not also, and

 8  has never been, the owner or operator of the drycleaning

 9  facility where the contamination exists; or

10         3.  A brownfield site in a designated brownfield area

11  under s. 376.80.

12         (3)  The Department of Environmental Protection shall

13  be responsible for allocating the tax credits provided for in

14  s. ss. 199.1055 and 220.1845, not to exceed a total of $2

15  million in tax credits annually.

16         (8)  On or before March 1, the Department of

17  Environmental Protection shall inform each eligible tax credit

18  applicant of the amount of its partial tax credit and provide

19  each eligible tax credit applicant with a tax credit

20  certificate that must be submitted with its tax return to the

21  Department of Revenue to claim the tax credit or be

22  transferred pursuant to s. 199.1055(1)(g) or s.

23  220.1845(1)(h). Credits will not result in the payment of

24  refunds if total credits exceed the amount of tax owed.

25         (12)  A tax credit applicant who receives state-funded

26  site rehabilitation under s. 376.3078(3) for rehabilitation of

27  a drycleaning-solvent-contaminated site is ineligible to

28  receive a tax credit under s. 199.1055 or s. 220.1845 for

29  costs incurred by the tax credit applicant in conjunction with

30  the rehabilitation of that site during the same time period

31  that state-administered site rehabilitation was underway.

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1         Section 23.  Subsection (13) of section 493.6102,

 2  Florida Statutes, is amended to read:

 3         493.6102  Inapplicability of this chapter.--This

 4  chapter shall not apply to:

 5         (13)  Any individual employed as a security officer by

 6  a church or ecclesiastical or denominational organization

 7  having an established physical place of worship in this state

 8  at which nonprofit religious services and activities are

 9  regularly conducted or by a church cemetery religious

10  institution as defined in s. 199.183(2)(a) to provide security

11  on the institution property of the organization or cemetery,

12  and who does not carry a firearm in the course of her or his

13  duties.

14         Section 24.  Paragraph (b) of subsection (4) of section

15  650.05, Florida Statutes, is amended to read:

16         650.05  Plans for coverage of employees of political

17  subdivisions.--

18         (4)

19         (b)  The grants-in-aid and other revenue referred to in

20  paragraph (a) specifically include, but are not limited to,

21  minimum foundation program grants to public school districts

22  and community colleges; gasoline, motor fuel, intangible,

23  cigarette, racing, and insurance premium taxes distributed to

24  political subdivisions; and amounts specifically appropriated

25  as grants-in-aid for mental health, mental retardation, and

26  mosquito control programs.

27         Section 25.  Subsection (1) of section 655.071, Florida

28  Statutes, is amended to read:

29         655.071  International banking facilities; definitions;

30  notice before establishment.--

31  

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1         (1)  "International banking facility" means a set of

 2  asset and liability accounts segregated on the books and

 3  records of a banking organization, as that term is defined in

 4  s. 201.23 199.023, that includes only international banking

 5  facility deposits, borrowings, and extensions of credit, as

 6  those terms shall be defined by the commission pursuant to

 7  subsection (2).

 8         Section 26.  Effective January 1, 2009, subsections (5)

 9  and (6) of section 733.702, Florida Statutes, are amended to

10  read:

11         733.702  Limitations on presentation of claims.--

12         (5)  The Department of Revenue may file a claim against

13  the estate of a decedent for taxes due under chapter 199 after

14  the expiration of the time for filing claims provided in

15  subsection (1), if the department files its claim within 30

16  days after the service of the inventory. Upon filing of the

17  estate tax return with the department as provided in s.

18  198.13, or to the extent the inventory or estate tax return is

19  amended or supplemented, the department has the right to file

20  a claim or to amend its previously filed claim within 30 days

21  after service of the estate tax return, or an amended or

22  supplemented inventory or filing of an amended or supplemental

23  estate tax return, as to the additional information disclosed.

24         (5)(6)  Nothing in this section shall extend the

25  limitations period set forth in s. 733.710.

26         Section 27.  Effective upon this act becoming a law,

27  the executive director of the Department of Revenue may adopt

28  emergency rules under ss. 120.536(1) and 120.54, Florida

29  Statutes, to implement chapter 199, Florida Statutes, and all

30  conditions are deemed met for the adoption of such rules.

31  Notwithstanding any other provision of law, such emergency

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    Florida Senate - 2006                                   SB 714
    25-689A-06                                       See CS/HB 209




 1  rules shall remain effective for 6 months after the date of

 2  adoption and may be renewed during the pendency of procedures

 3  to adopt rules addressing the subject of the emergency rules.

 4         Section 28.  Except as otherwise expressly provided in

 5  this act, this act shall take effect January 1, 2007.

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