HB 1369

1
A bill to be entitled
2An act relating to a tax tribunal; establishing the tax
3tribunal in the executive branch of government; providing
4for the number, appointment, salary, term of office, and
5removal of judges; providing qualifications; prohibiting
6certain other employment; authorizing judges to employ
7certain personnel; designating such employees as state
8employees within the Selected Exempt Service; providing
9for the principal office and locations and facilities of
10the tax tribunal; providing for appointment of a clerk and
11court reporter; providing for expenditures of the tax
12tribunal; providing for jurisdiction of the tax tribunal;
13providing for informal resolution of tax disputes under
14certain circumstances; providing requirements and
15procedures; providing requirements and procedures for
16pleadings before the tax tribunal; providing for fees for
17filings and reports; providing requirements and procedures
18for discovery and stipulations; providing requirements and
19procedures for hearings; providing requirements for
20decisions of the tax tribunal; establishing a small claims
21division of the tax tribunal for certain purposes;
22providing jurisdiction of the division; providing
23requirements and procedures for matters brought before the
24division; providing for appeals from decision of the tax
25tribunal; providing for representation before the tax
26tribunal; providing for publication of decisions;
27providing requirements for service of process; authorizing
28the tax tribunal to adopt rules; providing for application
29in the event of conflict with certain other laws;
30providing for appointment of judges; providing for
31application to certain proceedings; providing an
32appropriation; requiring the chief judge of the tax
33tribunal to submit budget requests to the Legislature each
34year; providing an effective date.
35
36     WHEREAS, the Legislature wishes to increase public
37confidence in the fairness of the state tax system, and
38     WHEREAS, the Legislature finds that the business climate of
39the state will be enhanced by the stability and certainty which
40will be provided by an independent agency with tax expertise to
41resolve disputes between the Department of Revenue and
42taxpayers, prior to requiring the payment of the amounts in
43issue or the posting of a bond, but after the taxpayer has had a
44full opportunity to attempt settlement with the Department of
45Revenue based, among other things, on the hazards of litigation,
46and
47     WHEREAS, the Legislature finds that establishing an
48independent tax tribunal within the executive branch of
49government will provide taxpayers with a means of resolving
50disputes that insures both the appearance and the reality of due
51process and fundamental fairness, and
52     WHEREAS, it is the intent of the Legislature that tax
53tribunal process created by this act foster the settlement or
54other resolution of tax disputes to the extent possible and, in
55cases in which litigation is necessary, to provide the people of
56this state with a fair, independent, prepayment procedure to
57determine a dispute with the Department of Revenue, NOW,
58THEREFORE,
59
60Be It Enacted by the Legislature of the State of Florida:
61
62     Section 1.  (1)  TAX TRIBUNAL; ESTABLISHMENT.--
63     (a)  A tax tribunal is hereby established in the executive
64branch of government.
65     (b)  The tax tribunal shall be separate from and
66independent of the authority of the executive director and the
67Department of Revenue.
68     (c)  The tax tribunal shall have a seal.
69     (d)  The tax tribunal is created and shall exist on and
70after January 1, 2008. The judges of the tax tribunal may be
71appointed prior to such date and may take any action that is
72necessary to enable the judges to properly exercise the duties,
73functions, and powers given the tax tribunal under this section
74after that date.
75     (2)  JUDGES; NUMBER; APPOINTMENT; TERM OF OFFICE;
76REMOVAL.--
77     (a)  The tax tribunal shall consist of at least three full-
78time judges but no more than five full-time judges. Each judge
79shall exercise the powers of the tax tribunal. For purposes of
80this act, the term "judge" does not mean a judge of the judicial
81branch but is an officer equivalent to an administrative law
82judge for the tax purposes as provided in this act.
83     (b)  The judges of the tax tribunal shall be appointed by
84the Governor, with the advice and consent of the Senate, for a
85term of 4 years. The judges initially appointed shall be given
86terms of different lengths not exceeding 4 years, so that all
87judges' terms do not expire in the same year. A judge may be
88reappointed to the tax tribunal after the expiration of the
89judge's term.
90     (c)  Each judge of the tax tribunal shall receive an annual
91salary no less than that provided for circuit court judges,
92which salary shall not be diminished during the judge's term of
93appointment.
94     (d)  Once appointed and confirmed, each judge shall
95continue in office until his or her term expires and until a
96successor has been appointed and confirmed.
97     (e)  A vacancy on the tax tribunal occurring otherwise than
98by the expiration of his or her term shall be filled for the
99unexpired term in the same manner as an original appointment.
100     (f)  The Governor shall designate one of the members as
101chief judge. The chief judge shall be the executive of the tax
102tribunal, shall have sole charge of the administration of the
103tax tribunal, and shall apportion among the judges all causes,
104matters, and proceedings coming before the tax tribunal.
105     (g)  The Governor may remove a judge, after notice and an
106opportunity to be heard, for neglect of duty, inability to
107perform duties, malfeasance in office, or other good cause, with
108the advice and consent of the Senate.
109     (h)  Whenever the tax tribunal's trial docket or order of
110business becomes congested or any judge of the tax tribunal is
111absent, is disqualified, or for any other reason is unable to
112perform his or her duties as judge, and it appears to the
113Governor that it is advisable that the services of an additional
114judge or judges be provided, the Governor may appoint a judge,
115or judges, pro tempore of the tax tribunal. Any person appointed
116judge pro tempore of the tax tribunal shall have the
117qualifications set forth in paragraphs (4)(a) and (b) and shall
118be entitled to serve for a period of no longer than 6 months.
119     (i)  A judge may disqualify himself or herself on his or
120her own motion in any matter and may be disqualified for any of
121the causes specified in the Florida Statutes governing the
122disqualification of circuit judges.
123     (3)  JUDGES; QUALIFICATIONS; PROHIBITION AGAINST OTHER
124GAINFUL EMPLOYMENT.--
125     (a)  Each judge of the tax tribunal shall be a citizen of
126the United States and, during the period of his or her service,
127a resident of this state. No person shall be appointed as a
128judge unless at the time of appointment the individual has
129substantial knowledge of the tax laws of this state and has been
130a member of The Florida Bar for a period of at least 10 years.
131     (b)  Before entering upon the duties of office, each judge
132shall take and subscribe to an oath or affirmation that he or
133she will faithfully discharge the duties of the office, and such
134oath shall be filed in the office of the Secretary of State.
135     (c)  Each judge shall devote his or her full time during
136business hours to the duties of his or her office. A judge may
137not engage in any other gainful employment or business or hold
138another office or position of profit in an agency or political
139subdivision of this state, any other state, or the United
140States. Notwithstanding such limitation, a judge may own passive
141interests in business entities and earn income from incidental
142teaching or scholarly activities. Nothing in this paragraph
143shall prohibit a judge from participation as a speaker in any
144conference relating to state tax matters or issues.
145     (d)  Each judge shall be entitled to hire a secretary and a
146law clerk, whose salaries shall be equivalent, respectively, to
147the salary of a senior secretary of a circuit judge in the
148Circuit Court of the 2nd Judicial Circuit and the salary of a
149law clerk for the 1st District Court of Appeals.
150     (e)  All employees of the tax tribunal, except judges,
151shall be deemed to be members of the Selected Exempt Service
152class of state employees and shall be entitled to the benefits
153awarded those employees.
154     (f)  Tax tribunal judges shall have all the salary and
155other benefits equal to those of circuit court judges.
156     (4)  PRINCIPAL OFFICE; LOCATIONS; FACILITIES.--
157     (a)  The tax tribunal's principal office shall be located
158in Tallahassee, Florida.
159     (b)  The tax tribunal shall conduct hearings at its
160principal office and may also hold hearings at any place within
161the state, with a view toward securing to taxpayers a reasonable
162opportunity to appear before the tax tribunal with as little
163inconvenience and expense as practicable.
164     (c)  The principal office of the tax tribunal shall be
165located in a building that is separate and apart from the
166building in which the Department of Revenue is located. When the
167tax tribunal holds hearings outside of its principal office, it
168shall do so in a location that is physically separated from
169facilities regularly occupied by the Department of Revenue.
170     (d)  The state, through the Department of Management
171Services and in cooperation with the various state agencies,
172shall provide hearing rooms, chambers, and offices for the tax
173tribunal at its principal office and shall arrange for hearing
174rooms, chambers, and offices or other appropriate facilities
175when hearings are held elsewhere.
176     (5)  APPOINTMENT OF CLERK AND REPORTER; EXPENDITURES OF THE
177TAX TRIBUNAL.--
178     (a)  The tax tribunal shall appoint a clerk and a reporter
179and may appoint such other employees and make such other
180expenditures, including expenditures for a library,
181publications, and equipment, as are necessary to permit it to
182efficiently execute its functions. The salaries of the clerk and
183reporter shall be equal to the salaries for similar officials of
184the Division of Administrative Hearings.
185     (b)  The reporter shall be subject to the provisions of
186chapter 27, Florida Statutes, as if appointed by a judge of the
187circuit court, except where such provisions are in conflict with
188this section.
189     (c)  No employee of the tax tribunal shall act as attorney,
190representative, or accountant for others in a matter involving
191any tax imposed or levied by this state.
192     (d)  An employee of the tax tribunal may be removed by the
193chief judge, after notice and an opportunity to be heard, for
194neglect of duty, inability to perform duties, malfeasance in
195office, or for other good cause.
196     (e)  In addition to the services of the official reporter,
197the tax tribunal may contract the reporting of its proceedings
198and, in the contract, fix the terms and conditions under which
199transcripts will be supplied by the contractor to the tax
200tribunal and to other persons and agencies.
201     (6)  JURISDICTION.--
202     (a)  Except as permitted by subsection (15), the tax
203tribunal shall be the sole, exclusive, and final authority for
204the hearing and determination of questions of law and fact
205arising under the tax laws of this state administered by the
206Department of Revenue as set forth in chapter 213, Florida
207Statutes, except for ad valorem taxes imposed by the counties.
208     (b)  Except as permitted by subsection (15), no person
209shall contest any matter within the jurisdiction of the tax
210tribunal in any action, suit, or proceeding in the circuit court
211or any other court of the state. If a person attempts to do so,
212such action, suit, or proceeding shall be dismissed without
213prejudice. The improper commencement of any action, suit, or
214proceeding shall not extend beyond the time period for
215commencing a proceeding in the tax tribunal.
216     (c)  Except in cases involving the denial of a claim for
217refund and except as provided in the Florida Statutes regarding
218jeopardy assessments, a taxpayer shall have the right to have
219his or her case heard by the tax tribunal prior to the payment
220of any amount asserted as due by the Department of Revenue and
221prior to the posting of any bond.
222     (d)  If, with or after the filing of a timely petition, a
223taxpayer pays all or part of the tax or other amount in issue
224before the tax tribunal has rendered a decision, the tax
225tribunal shall treat the taxpayer's petition as a protest of a
226denial of a claim for refund of the amount paid.
227     (e)  The tax tribunal shall decide questions regarding the
228constitutionality of the application of law to the taxpayer and
229the constitutionality of regulations adopted by the Department
230of Revenue but shall not have the power to declare a law
231unconstitutional on its face. A taxpayer desiring to challenge
232the constitutionality of a law on its face may, at the
233taxpayer's election, do so by one of the following methods:
234     1.  Commence a declaratory action in a circuit court with
235respect to the constitutional challenge and file a petition in
236the tax tribunal with respect to the remainder of the matter,
237which proceeding shall be stayed by the tax tribunal pending
238final resolution of the constitutional challenge;
239     2.  File a petition with the tax tribunal with respect to
240issues other than the constitutional challenge, in which the
241taxpayer preserves the constitutional challenge until the entire
242matter, including the constitutional challenge and the facts
243related to the constitutional challenge, is presented to the
244appellate court; or
245     3.  Bifurcate the matter by commencing a declaratory action
246in a circuit court with respect to the facial constitutional
247challenge and by filing a petition with the tax tribunal with
248respect to the remainder of the issues.
249     (7)  OPPORTUNITY TO RESOLVE TAX DISPUTES INFORMALLY PRIOR
250TO COMMENCING A PROCEEDING IN THE TAX TRIBUNAL.--
251     (a)  Before the Department of Revenue finalizes a
252determination that triggers a taxpayer's right to commence a
253proceeding in the tax tribunal under subsection (9), the
254Department of Revenue shall provide to the taxpayer, pursuant to
255this section and to chapter 213, Florida Statutes, a review of
256the audit or collection function's proposed determination by an
257administrative appeals function.
258     (b)  Existing rules and procedures of the Department of
259Revenue shall be amended to provide an administrative appeals
260function that provides for a program of holding conferences and
261negotiating settlements that is designed to resolve the vast
262majority of tax controversies without litigation on a basis that
263is fair and impartial to the state and the taxpayer and that
264enhances voluntary compliance and public confidence in the
265integrity and efficiency of the Department of Revenue. The
266administrative appeals function to be maintained or established
267by the Department of Revenue shall have all of the following
268characteristics:
269     1.  Appeals personnel shall exercise independent judgment
270with the objective of settling as many disputed issues as
271possible without litigation.
272     2.  Appeals personnel shall have expertise in and extensive
273experience with the state's tax laws.
274     3.  Appeals personnel shall concede or settle individual
275issues based on the facts and the law, including the hazards of
276litigation, and an issue specifically conceded or settled by
277appeals personnel shall not thereafter be contested by the
278Department of Revenue.
279     4.  Appeals conferences shall be conducted in an informal
280manner.
281     5.  Appeals conferences shall be conducted, at the
282taxpayer's option, by correspondence, by telephone, or in
283person.
284     6.  Appeals personnel shall consider arguments as to the
285applicability of the tax laws, settlement proposals and
286counterproposals, and new evidence in support of the taxpayer's
287position provided, if the new evidence is substantial and should
288have been presented at the time of audit, appeals personnel may
289request the audit function to examine the evidence and to make a
290recommendation as to the effect of the evidence on the related
291issue.
292     7.  The taxpayer shall have the right to bring witnesses to
293an in-person conference.
294     8.  The taxpayer may participate in appeals conferences
295without representation; may be represented by an officer,
296employee, partner, or member of the taxpayer; or may be
297represented by a third-party representative.
298     9.  Appeals personnel shall not engage in ex parte
299communications with any Department of Revenue employees to the
300extent that such communications may appear to the taxpayer to
301compromise the independence of the appeals function. Appeals
302personnel may not be involved in the development of any
303Department of Revenue policy or rule. All state employees
304suspected of such ex parte communications shall be immediately
305placed on unpaid administrative leave, and such suspicion shall
306be investigated by the Department of Law Enforcement. If the
307suspicion is found to be valid and the state employee is
308accused, the employment of the state employee shall be
309immediately terminated and the employee arrested and charged
310with a first degree misdemeanor.
311     10.  In all cases, appeals personnel shall allow the
312taxpayer to participate in any communications with Department of
313Revenue employees, and a record shall be kept of any such
314communications which shall be deemed subject to the provisions
315of chapter 119, Florida Statutes.
316     11.  Appeals decisions and agreements shall not be
317considered as precedent.
318     12.  A taxpayer's decision to forego appeals consideration
319shall not constitute a failure to exhaust administrative
320remedies, and a taxpayer's decision to request appeals
321consideration with respect to a determination shall not preclude
322the taxpayer from commencing a proceeding before the tax
323tribunal with respect to any issue not resolved by settlement or
324concession.
325     (c)  The Department of Revenue shall adopt emergency and
326other rules governing the operation of the administrative
327appeals function, including, without limitation, a rule allowing
328the Department of Revenue to finalize its determination if the
329taxpayer fails to timely request or pursue appeals consideration
330or a rule allowing the Department of Revenue to publicly
331designate specific issues that appeals personnel may not
332compromise. Such rules shall be adopted not less than 180 days
333after the effective date of this act.
334     (8)  PLEADINGS.--
335     (a)  A taxpayer may commence a proceeding before the tax
336tribunal by filing a petition protesting the Department of
337Revenue's determination imposing a liability for tax, penalty,
338or interest; denying a refund or credit application; canceling,
339revoking, suspending, or denying an application for a license,
340permit, or registration; or taking any other action that gives a
341person the right to a hearing under the law. The petition shall
342be filed with the tax tribunal no later than 90 days after
343receipt of the Department of Revenue' s written notice of such
344determination. For purposes of this section, the term "taxpayer"
345includes a person who is challenging the state's jurisdiction
346over the person and who has standing to challenge the validity
347or applicability of the tax.
348     (b)  The Department of Revenue shall file its answer with
349the tax tribunal no later than 30 days after receiving the tax
350tribunal's notification that the taxpayer has filed a petition
351in proper form. Upon written request, the tax tribunal may grant
352up to 15 additional days to file an answer, and only one such
353request shall be permitted. The Department of Revenue shall
354serve a copy of its answer on the taxpayer's representative or,
355if the taxpayer is not represented, on the taxpayer and shall
356file proof of such service with the answer. Material facts
357alleged in the petition, if not expressly admitted or denied in
358the answer, shall be deemed admitted. If the Department of
359Revenue fails to answer within the prescribed time, all material
360facts alleged in the petition shall be deemed admitted.
361     (c)  The taxpayer may file a reply with the tax tribunal
362within 30 days after receiving the answer. The taxpayer shall
363serve a copy of the reply on the authorized representative of
364the Department of Revenue and shall file proof of such service
365with the reply. If the taxpayer fails to reply within the
366prescribed time, all material facts alleged in the answer shall
367be deemed denied. When a reply has been filed or, if no reply
368has been filed, 30 days after the filing of the answer, the
369controversy shall be deemed at issue and shall be scheduled for
370hearing.
371     (d)  Either party may amend a pleading once without leave
372at any time before the period for responding to the pleading
373expires. After such time, a pleading may be amended only with
374the written consent of the adverse party or with the permission
375of the tax tribunal. The tax tribunal shall freely grant consent
376to amend a pleading upon such terms as may be just. Except as
377otherwise ordered by the tax tribunal, there shall be an answer
378or reply to an amended pleading if an answer or reply is
379required to the pleading being amended. Filing of the answer or,
380if the answer has already been filed, the amended answer shall
381be made no later than 75 days after filing of the amended
382petition. Filing of the reply or, if the reply has already been
383filed, the amended reply shall be made within 30 days after
384filing of the amended answer. The taxpayer may not amend a
385petition after expiration of the time for filing a petition if
386such amendment would have the effect of conferring jurisdiction
387on the tax tribunal over a matter that would otherwise not come
388within its jurisdiction. An amendment of a pleading shall relate
389back to the time of filing of the original pleading, unless the
390tax tribunal orders otherwise either on motion of a party or on
391the tax tribunal's own initiative.
392     (9)  FEES.--
393     (a)  Upon filing a petition, the taxpayer shall pay to the
394clerk a fee in an amount equal to the filing fee for a civil
395action in the Circuit Court of the 2nd Judicial Circuit of
396Florida.
397     (b)  The tax tribunal may fix a fee, not in excess of the
398fees charged and collected by the clerks of the circuit courts,
399for comparing, or for preparing and comparing, a transcript of
400the record, or for copying any record, entry, or other paper and
401the comparison and certification thereof.
402     (10)  DISCOVERY AND STIPULATION.--
403     (a)  The parties to a proceeding shall make every effort to
404achieve discovery by informal consultation or communication
405before invoking the discovery procedures authorized by this
406section.
407     (b)  The parties to a proceeding shall stipulate all
408relevant and nonprivileged matters to the fullest extent to
409which complete or qualified agreement can or fairly should be
410reached. The existence or use of the discovery mechanisms
411authorized by this section shall not excuse failure to comply
412with this provision.
413     (c)  Subject to reasonable limitations prescribed by the
414tax tribunal, a party may obtain discovery by written
415interrogatories; requests for the production of returns, books,
416papers, documents, correspondence, or other evidence;
417depositions of parties, nonparty witnesses, and experts; and
418requests for admissions. The tax tribunal may provide for other
419forms of discovery.
420     (d)  A judge or the clerk of the tax tribunal, upon the
421request of any party to the proceeding, shall issue subpoenas
422requiring the attendance of witnesses and giving of testimony
423and subpoenas duces tecum requiring the production of evidence
424or things.
425     (e)  Any employee of the tax tribunal designated in writing
426for the purpose by the chief judge may administer oaths.
427     (f)  Any witness subpoenaed or whose deposition is taken
428shall receive the same fees and mileage as a witness in a
429circuit court of this state unless that witness is an employee
430of the Department of Revenue.
431     (g)  The tax tribunal may enforce its orders on discovery
432and other procedural issues, among other means, by deciding
433issues wholly or partly against the offending party.
434     (11)  HEARINGS.--
435     (a)  Proceedings before the tax tribunal shall be tried de
436novo and, to the extent permissible under the constitution,
437without a jury.
438     (b)  Except as set forth in this section, the tax tribunal
439shall take evidence, conduct hearings, and issue final and
440interlocutory decisions.
441     (c)  Hearings shall be open to the public and shall be
442conducted in accordance with such rules of practice and
443procedure as the tax tribunal may adopt. Notwithstanding such
444requirements, upon motion of either party, the tax tribunal may
445issue a protective order or an order calling for proceeding of
446the hearing to be held in camera, closing part or all of the
447hearing to the public if the party shows good cause to protect
448specified information from being disclosed to the public.
449     (d)  The tax tribunal shall not be bound by the rules of
450evidence applicable to civil cases in the circuit courts of this
451state. The tax tribunal shall admit relevant evidence, including
452hearsay, if it is probative of a material fact in controversy.
453The tax tribunal shall exclude irrelevant and unduly repetitious
454evidence. Notwithstanding such requirements, the rules of
455privilege recognized by law shall apply.
456     (e)  Testimony may be given only on oath or affirmation.
457     (f)  The petition and other pleadings in the proceeding
458shall be deemed to conform to the proof presented at the
459hearing, unless a party satisfies the tax tribunal that
460presentation of the evidence would unfairly prejudice the party
461in maintaining its position on the merits or unless deeming the
462taxpayer's petition to conform to the proof would confer
463jurisdiction on the tax tribunal over a matter that would not
464otherwise come within its jurisdiction.
465     (g)  In the case of an issue of fact, the taxpayer shall
466have the burden of persuasion by a preponderance of the evidence
467in the record, except that the Department of Revenue shall have
468the burden of persuasion in the case of an assertion of fraud
469and in other cases provided by law.
470     (h)  Proceedings before the tax tribunal, except those
471before the small claims division as provided in subsection (14),
472shall be officially reported. The state shall pay the expense of
473reporting from the budget appropriation for the tax tribunal.
474     (12)  DECISIONS.--
475     (a)  The tax tribunal shall render its decision in writing,
476including a concise statement of the facts found and the
477conclusions of law reached. The tax tribunal's decision shall,
478subject to law, grant such relief, invoke such remedies, and
479issue such orders as it deems appropriate to carry out its
480decision.
481     (b)  The tax tribunal shall render its decision no later
482than 6 months after submission of the last brief filed
483subsequent to completion of the hearing or, if briefs are not
484submitted, no later than 6 months after completion of the
485hearing. The tax tribunal may extend the 6-month period, for
486good cause, up to 3 additional months.
487     (c)  If the tax tribunal fails to render a decision within
488the prescribed period, either party may institute a proceeding
489in circuit court to compel the issuance of such decision.
490     (d)  The tax tribunal's decision shall finally decide the
491matters in controversy, unless any party to the matter timely
492appeals the decision as provided in subsection (15).
493     (e)  The tax tribunal's decision shall have the same effect
494and shall be enforced in the same manner, as a judgment of a
495circuit court.
496     (f)  The tax tribunal's interpretation of a provision of
497tax law subject to contest in one case shall be followed by the
498tax tribunal in subsequent cases involving the provision of tax
499law, and its application of a provision of law to the facts of
500one case shall be followed by the tax tribunal in subsequent
501cases involving similar facts, unless the tax tribunal's
502interpretation or application conflicts with that of an
503appellate court or the tax tribunal provides satisfactory
504reasons for reversing prior precedent.
505     (13)  SMALL CLAIMS DIVISION; ESTABLISHMENT; JURISDICTION.--
506     (a)  There is hereby established a Small Claims Division of
507the tax tribunal.
508     (b)  The judges of the tax tribunal shall sit as the judges
509of the Small Claims Division.
510     (c)  If a taxpayer timely elects, the Small Claims Division
511shall have jurisdiction over any proceeding with respect to any
512calendar year for which the net amount of the tax deficiencies
513and claimed refunds in controversy does not exceed $25,000,
514exclusive of interest and penalties.
515     (d)  A taxpayer may elect to proceed in the Small Claims
516Division by filing a petition in the form prescribed by the tax
517tribunal no later than 90 days after the taxpayer's receipt of
518written notice of the determination that is the subject of the
519petition. A taxpayer may not revoke an election to proceed in
520the Small Claims Division.
521     (e)  No later than 30 days after receipt of notice that the
522taxpayer has filed a petition in proper form, or at such other
523time as the tax tribunal may order, the Department of Revenue
524shall file with the tax tribunal an answer similar to that
525required by subsection (9).
526     (f)  At any time prior to entry of judgment, a taxpayer may
527withdraw a proceeding in the Small Claims Division by notifying
528the clerk of the tax tribunal in writing. Such withdrawal shall
529be with prejudice and shall not have the effect of revoking the
530election made in accordance with paragraph (d).
531     (g)  Hearings in the Small Claims Division shall be
532informal and the judge may receive such evidence as the judge
533deems appropriate for determination of the case. Testimony shall
534be given under oath or affirmation.
535     (h)  A judgment of the Small Claims Division shall be
536conclusive upon all parties and may not be appealed. A judgment
537of the Small Claims Division shall not be considered as
538precedent in any other case, hearing, or proceeding.
539     (i)  Subsections (1)-(13) and (15)-(19) shall apply to
540proceedings in the Small Claims Division unless expressly
541inapplicable thereto or inconsistent with the provisions of this
542section.
543     (14)  APPEALS.--
544     (a)  A taxpayer or the Department of Revenue shall be
545entitled to judicial review of a final decision of the tax
546tribunal, except a final decision of the Small Claims Division,
547in accordance with the procedure for appeal from a decision of a
548circuit court, but without regard to the sum involved. The
549taxpayer or the Department of Revenue may obtain judicial review
550of an interlocutory decision of the tax tribunal under the same
551conditions and in the same manner as an interlocutory decision
552of a circuit court.
553     (b)  The record on judicial review shall include the
554decision of the tax tribunal, the stenographic transcript of the
555hearing before the tax tribunal, the pleadings, and all exhibits
556and documents admitted into evidence.
557     (15)  REPRESENTATION.--
558     (a)  Appearances in proceedings conducted by the tax
559tribunal may be by the taxpayer, by an attorney admitted to
560practice of law in this state, including an attorney who is a
561partner or member of, or is employed by, an accounting or other
562professional services firm, by an accountant licensed in this
563state, or by an enrolled agent authorized to practice before the
564Internal Revenue Service. In addition, the tax tribunal may
565adopt rules permitting a taxpayer to be represented by an
566officer, employee, partner, or member.
567     (b)  The Department of Revenue shall be represented by an
568attorney from the Department of Legal Affairs.
569     (16)  PUBLICATION OF DECISIONS.--Except for decisions
570issued by the Small Claims Division, the tax tribunal shall
571index and publish its final decisions in such print or
572electronic form as it deems best adapted for public convenience.
573Such publications shall be made permanently available and
574constitute the official records of the tax tribunal.
575     (17)  SERVICE OF PROCESS.--
576     (a)  Mailing by first class or certified or registered
577mail, postage prepaid, to the address of the taxpayer given on
578the taxpayer's petition, or to the address of the taxpayer's
579representative of record, if any, or to the usual place of
580business of the Department of Revenue, shall constitute personal
581service on the other party. The tax tribunal may by rule
582prescribe that notice by other means shall constitute personal
583service and may in a particular case order that notice be given
584to additional persons or by other means.
585     (b)  Mailing by registered or certified mail and delivery
586by a private delivery service approved by the Internal Revenue
587Service in accordance with s. 7502(f) of the Internal Revenue
588Code of 1986, as amended, shall be deemed to have occurred,
589respectively, on the date of mailing or the date of submission
590to the private delivery service.
591     (18)  RULES AND FORMS.--The tax tribunal may adopt all
592reasonable rules and forms, pursuant to ss. 120.536(1) and
593120.54, Florida Statutes, as may be necessary or appropriate to
594carry out the intent and purposes of this section.
595     (19)  APPLICATION OF OTHER LAWS.--To the extent that
596provisions of chapters 72, 120, and 213, Florida Statutes,
597conflict with any provision of this section, the provisions of
598this section shall control.
599     Section 2.  The first appointment of judges of the tax
600tribunal under this act shall be made prior to January 1, 2008.
601This act shall apply to all proceedings commenced before the tax
602tribunal on or after such date and all administrative
603proceedings commenced prior to such date that have not been the
604subject of a final and irrevocable administrative action as of
605such effective date, to the extent this act can be made
606applicable to such proceedings. Any administrative proceeding in
607which a hearing has commenced prior to the effective date of
608this act shall be transferred to the tax tribunal, which shall
609render the decision in such proceeding unless there is a prior
610settlement. This act shall not affect any proceeding,
611prosecution, action, suit, or appeal commenced in the judicial
612branch the effective date of this act.
613     Section 3.  The sum of $2.5 million is appropriated from
614the General Revenue Fund for the operation, expenses, and
615salaries required for the implementation of this act for the
6162007-2008 fiscal year. The chief judge of the tax tribunal shall
617submit a budget request to the President of the Senate and the
618Speaker of the House of Representatives for all subsequent
619fiscal years in the same manner as any other agency of the
620state.
621     Section 4.  This act shall take effect July 1, 2007.


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