Senate Bill sb1724

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    Florida Senate - 2007                                  SB 1724

    By Senator Baker





    20-1112-07                                           See HB 17

  1                      A bill to be entitled

  2         An act relating to payment card transaction

  3         exactions; amending s. 212.12, F.S.; specifying

  4         absence of dealer liability to the state for

  5         certain payment card transaction rates,

  6         charges, or fees; specifying such rates,

  7         charges, or fees as a credit against and

  8         deduction from certain sales and use tax

  9         requirements; providing a return requirement;

10         providing an effective date.

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

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

15  212.12, Florida Statutes, is amended, and paragraph (d) is

16  added to that subsection, to read:

17         212.12  Dealer's credit for collecting tax; penalties

18  for noncompliance; powers of Department of Revenue in dealing

19  with delinquents; brackets applicable to taxable transactions;

20  records required.--

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

22  the purpose of compensating persons granting licenses for and

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

24  the purpose of compensating dealers in tangible personal

25  property, for the purpose of compensating dealers providing

26  communication services and taxable services, for the purpose

27  of compensating owners of places where admissions are

28  collected, and for the purpose of compensating remitters of

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

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

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

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    Florida Senate - 2007                                  SB 1724
    20-1112-07                                           See HB 17




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

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

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

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

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

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

 7  department shall allow such deduction of 2.5 percent of the

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

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

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

11  and as further compensation to dealers in tangible personal

12  property for the keeping of prescribed records and for

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

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

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

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

17  the department is authorized to negotiate a collection

18  allowance, pursuant to rules promulgated by the department,

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

20  department shall provide guidelines for establishing the

21  collection allowance based upon the dealer's estimated costs

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

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

24  administrative and legal costs and likelihood of achieving

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

26  However, in no event shall the collection allowance negotiated

27  by the executive director exceed 10 percent of the tax

28  remitted for a reporting period.

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

30  provided in this section may elect to forego the collection

31  allowance and direct that said amount be transferred into the

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    Florida Senate - 2007                                  SB 1724
    20-1112-07                                           See HB 17




 1  Educational Enhancement Trust Fund. Such an election must be

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

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

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

 5  incomplete return, the amount transferred into the Educational

 6  Enhancement Trust Fund shall be the amount of the collection

 7  allowance remaining after resolution of liability for all of

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

 9  underpayment of tax. The Department of Education shall

10  distribute the remaining amount from the trust fund to the

11  school districts that have adopted resolutions stating that

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

13  is purchased for the classrooms in the district and that

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

15  collected in districts that do not adopt such a resolution

16  shall be equally distributed to districts that have adopted

17  such resolutions.

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

19  any local option taxes administered under this chapter and

20  remitted directly to the department. This paragraph does not

21  apply to any locally imposed and self-administered convention

22  development tax, tourist development tax, or tourist impact

23  tax administered under this chapter.

24         3.  Revenues from the dealer-collection allowances

25  shall be transferred quarterly from the General Revenue Fund

26  to the Educational Enhancement Trust Fund. The Department of

27  Revenue shall provide to the Department of Education quarterly

28  information about such revenues by county to which the

29  collection allowance was attributed.

30         4.  Notwithstanding any provision of chapter 120 to the

31  contrary, the Department of Revenue may adopt rules to carry

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    Florida Senate - 2007                                  SB 1724
    20-1112-07                                           See HB 17




 1  out the provisions of the amendment made by chapter 2006-52,

 2  Laws of Florida, to this paragraph section.

 3         (d)  A dealer as described in this subsection is not

 4  liable to the state for any discount rate, transaction charge,

 5  interchange rate, or any other rate, charge, or fee charged to

 6  the dealer by an issuer or deducted from a payment card sale

 7  for processing a payment card transaction for which the rate,

 8  charge, or fee is a flat rate, charge, or fee or a percentage

 9  multiplied by the gross dollar amount of the payment card

10  transaction on the portion of the transaction related to any

11  sales or use tax. Such rate, charge, or fee is a lawful credit

12  against and shall be deducted from any sales and use tax

13  required to be remitted by the dealer to the state. The dealer

14  shall separately state the credit on any required return.

15         Section 2.  This act shall take effect July 1, 2007.

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