Senate Bill sb2482

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    Florida Senate - 2007                                  SB 2482

    By Senator Haridopolos





    26-1268B-07

  1                      A bill to be entitled

  2         An act relating to tax administration; amending

  3         s. 45.032, F.S.; including a tax warrant as a

  4         subordinate lienholder for purposes of the

  5         disbursement of surplus funds after a judicial

  6         sale; amending ss. 125.0104 and 125.0108, F.S.;

  7         providing for the grant of a license to use

  8         living quarters or accommodations to be subject

  9         to the tourist development tax and the tourist

10         impact tax; amending s. 198.13, F.S.; exempting

11         certain representatives of an estate from the

12         requirement to file certain returns if there is

13         no tax on estates of decedents or no tax on

14         generation-skipping transfers; amending ss.

15         202.18 and 202.28, F.S.; providing requirements

16         for the Department of Revenue with respect to

17         distributing proceeds of the communications

18         services tax and allocating certain penalties;

19         amending s. 202.30, F.S.; reducing the

20         threshold tax amount over a specified period

21         under which a dealer of communications services

22         is required to remit taxes electronically;

23         amending ss. 206.02 and 206.021, F.S.;

24         authorizing the Department of Revenue to issue

25         temporary fuel licenses during a declared state

26         of emergency or a declared disaster; amending

27         ss. 206.41 and 206.87, F.S.; revising the date

28         of the annual adjustment of the fuel tax;

29         amending s. 206.9943, F.S.; authorizing the

30         department to issue a temporary pollutant tax

31         license during a declared state of emergency or

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 1         a declared disaster; amending s. 211.3103,

 2         F.S.; providing for the annual producer price

 3         index to apply to the tax on the severance of

 4         phosphate rock; amending s. 212.02, F.S.;

 5         adding leases of certain aircraft to the

 6         definition of the term "qualified aircraft";

 7         amending s. 212.0305, F.S.; providing for the

 8         grant of a license to use living quarters or

 9         accommodations to be subject to the convention

10         development tax on transient rentals; amending

11         ss. 212.05 and 212.0515, F.S.; authorizing the

12         department to adopt additional divisors for

13         calculating the sales tax on vending machines

14         when a county imposes a sales surtax rate that

15         is not listed in statute; amending s. 212.0506,

16         F.S.; clarifying that the definition of the

17         term "service warranty" excludes certain

18         contracts; amending s. 212.08, F.S., relating

19         to exemptions from the sales tax; deleting

20         provisions exempting certain building materials

21         and business property from application of

22         certain requirements for refunds; repealing s.

23         212.095, F.S., relating to a sales tax refund

24         permit for certain organizations; amending s.

25         212.10, F.S.; authorizing the Department of

26         Revenue to transfer tax liability to certain

27         entities upon the transfer of a dealer's assets

28         or liabilities; authorizing the department to

29         require that the liability be paid or a bond be

30         posted; providing that transfer of the

31         liability does not extinguish the liability of

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    Florida Senate - 2007                                  SB 2482
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 1         the seller or former owner; providing a

 2         penalty; amending s. 212.12, F.S.; providing

 3         that a person is liable for failure to register

 4         a business or collect the required taxes;

 5         providing penalties; authorizing the department

 6         to statistically sample records regarding

 7         certain fixed or capital assets; providing

 8         legislative intent with respect to application

 9         of such provisions to pending tax audits or

10         other actions or inquiries; amending s. 212.14,

11         F.S.; providing for the department to require a

12         bond or other security as a condition of

13         obtaining a tax certificate or registration at

14         its discretion; amending s. 212.18, F.S.,

15         relating to dealer registrations; deleting

16         obsolete provisions governing informal

17         conferences; creating s. 213.0352, F.S.;

18         authorizing the Department of Revenue to

19         develop procedures to enter into agreements

20         with certain financial institutions to develop

21         and operate a data match system for collecting

22         tax warrants; amending s. 213.053, F.S.;

23         authorizing the department to provide

24         information to certain financial institutions

25         and to the child support enforcement program;

26         amending s. 213.21, F.S.; providing for a

27         taxpayer's liability for a service fee to be

28         waived due to unintentional error; creating s.

29         213.32, F.S.; providing legislative intent with

30         respect to the integration of the enforcement

31         authority of the Department of Revenue;

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 1         authorizing the department to issue warrants

 2         and file judgment lien certificates evidencing

 3         a taxpayer's total liability for all taxes,

 4         fees, or surcharges; providing procedures for

 5         the department in revoking a certificate of

 6         registration, permit, or license; authorizing

 7         the department to place an administrative

 8         freeze on the assets of a delinquent taxpayer;

 9         providing definitions; providing procedures and

10         requiring prior notice; specifying duties of a

11         custodian of assets that are subject to an

12         administrative freeze; providing for a notice

13         of release following satisfaction of the

14         liability for taxes, fees, or surcharges;

15         authorizing the department to require cash

16         deposits, surety bonds, or irrevocable letters

17         of credit as a condition to a taxpayer

18         obtaining, renewing, or retaining a certificate

19         of registration, permit, or license; providing

20         definitions; prohibiting the amount of required

21         security from exceeding the taxpayer's

22         estimated liability; requiring that a taxpayer

23         be given prior notice; providing for the

24         department to require additional security under

25         certain circumstances; providing for a release

26         or refund of security; authorizing the

27         department to request that the Department of

28         Legal Affairs obtain an injunction to prevent

29         the taxpayer from engaging in business activity

30         under certain circumstances; authorizing the

31         department to sell any security to recover

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 1         taxes, fees, or surcharges that are due;

 2         providing for garnishment proceedings;

 3         authorizing the department to transfer

 4         liabilities to responsible corporate officers;

 5         providing for jeopardy assessments; authorizing

 6         the department to adopt rules; amending s.

 7         213.755, F.S.; reducing the threshold tax

 8         amount over a specified period under which a

 9         taxpayer may be required to remit taxes

10         electronically; amending s. 220.21, F.S.;

11         requiring a taxpayer that is required to file

12         its federal income tax return electronically to

13         also file its state corporate income tax

14         electronically; providing a penalty for failure

15         to do so; authorizing the department to adopt

16         rules; providing for applicability; creating s.

17         220.802, F.S.; authorizing the Department of

18         Revenue to impose accuracy-related penalties

19         for negligence or disregard of statutes or

20         rules or for a substantial understatement of

21         tax; defining terms; prohibiting the imposition

22         of a penalty if the underpayment is based on a

23         ruling provided to the taxpayer by the

24         department; providing for the penalty to apply

25         to the tax year in which the loss, deduction,

26         or credit is carried; authorizing the

27         department to adopt rules; providing for

28         applicability; amending s. 220.803, F.S.,

29         relating to the determination of certain tax

30         deficiencies; deleting provisions imposing a

31         penalty for tax deficiencies due to negligence

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 1         or intentional disregard of rules and

 2         regulations; amending s. 443.1216, F.S.;

 3         authorizing the Agency for Workforce Innovation

 4         and the agency that collects unemployment taxes

 5         to adopt rules; amending s. 443.1316, F.S.;

 6         providing for certain provisions of ch. 213,

 7         F.S., relating to taxpayers rights, to apply to

 8         the collection of unemployment taxes; deleting

 9         a limitation on the amount the department may

10         charge for the costs of collection services;

11         amending s. 443.141, F.S.; authorizing the

12         department to impose a penalty for erroneous,

13         incomplete, or insufficient reports with

14         respect to unemployment contributions and

15         reimbursements; requiring that the penalties be

16         paid into the Special Employment Security

17         Administration Trust Fund; amending s. 443.163,

18         F.S.; revising the threshold number of

19         employees for which an employer must report and

20         remit contributions and reimbursements

21         electronically; amending s. 624.511, F.S.;

22         authorizing the Department of Revenue to refund

23         an overpayment of insurance premium tax under

24         certain circumstances; amending s. 832.062,

25         F.S.; providing for prima facie evidence of

26         intent to defraud or knowledge of insufficient

27         funds with respect to an electronic transfer to

28         the Department of Revenue which is not honored

29         or refused; providing requirements for notice;

30         providing for the department to recover court

31         costs and attorney's fees; providing procedures

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    Florida Senate - 2007                                  SB 2482
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 1         for establishing prima facie evidence;

 2         providing effective dates.

 3  

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

 5  

 6         Section 1.  Paragraph (b) of subsection (1) and

 7  paragraph (a) of subsection (3) of section 45.032, Florida

 8  Statutes, are amended to read:

 9         45.032  Disbursement of surplus funds after judicial

10  sale.--

11         (1)  For purposes of ss. 45.031-45.035, the term:

12         (b)  "Subordinate lienholder" means the holder of a

13  subordinate lien shown on the face of the pleadings as an

14  encumbrance on the property. The lien held by the party filing

15  the foreclosure lawsuit is not a subordinate lien. A

16  subordinate lienholder includes, but is not limited to, a

17  subordinate mortgage, judgment, tax warrant, assessment lien,

18  or construction lien. However, the holder of a subordinate

19  lien shall not be deemed a subordinate lienholder if the

20  holder was paid in full from the proceeds of the sale.

21         (3)  During the 60 days after the clerk issues a

22  certificate of disbursements, the clerk shall hold the surplus

23  pending a court order.

24         (a)  If the owner of record claims the surplus during

25  the 60-day period and there is no subordinate lienholder, the

26  court shall order the clerk to deduct any applicable service

27  charges from the surplus and pay the remainder to the owner of

28  record. The clerk may establish a reasonable requirement that

29  the owner of record prove his or her identity before receiving

30  the disbursement. The clerk may assist an owner of record in

31  

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 1  making a claim. An owner of record may use the following form

 2  in making a claim:

 3  

 4  (Caption of Action)

 5  

 6                        OWNER'S CLAIM FOR

 7                   MORTGAGE FORECLOSURE SURPLUS

 8  

 9  State of ....

10  County of ....

11         Under penalty of perjury, I (we) hereby certify that:

12         1.  I was (we were) the owner of the following

13  described real property in .... County, Florida, prior to the

14  foreclosure sale and as of the date of the filing of the lis

15  pendens:

16  

17  ...(Legal description of real property)...

18  

19         2.  I (we) do not owe any money on any mortgage on the

20  property that was foreclosed other than the one that was paid

21  off by the foreclosure.

22         3.  I (we) do not owe any money that is the subject of

23  an unpaid judgment, tax warrant, condominium lien, cooperative

24  lien, or homeowners' association.

25         4.  I am (we are) not currently in bankruptcy.

26         5.  I (we) have not sold or assigned my (our) right to

27  the mortgage surplus.

28         6.  My (our) new address is: .....

29         7.  If there is more than one owner entitled to the

30  surplus, we have agreed that the surplus should be paid ....

31  jointly, or to: ...., at the following address: .....

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 1         8.  I (WE) UNDERSTAND THAT I (WE) AM (ARE) NOT REQUIRED

 2  TO HAVE A LAWYER OR ANY OTHER REPRESENTATION AND I (WE) DO NOT

 3  HAVE TO ASSIGN MY (OUR) RIGHTS TO ANYONE ELSE IN ORDER TO

 4  CLAIM ANY MONEY TO WHICH I (WE) MAY BE ENTITLED.

 5         9.  I (WE) UNDERSTAND THAT THIS STATEMENT IS GIVEN

 6  UNDER OATH, AND IF ANY STATEMENTS ARE UNTRUE THAT I (WE) MAY

 7  BE PROSECUTED CRIMINALLY FOR PERJURY.

 8  

 9  ...(Signatures)...

10  

11         Sworn to (or affirmed) and subscribed before me this

12  .... day of ...., ...(year)..., by ...(name of person making

13  statement)....

14         ...(Signature of Notary Public - State of Florida)...

15         ...(Print, Type, or Stamp Commissioned Name of Notary

16  Public)...

17  

18         Personally Known .... OR Produced Identification ....

19         Type of Identification Produced........................

20  

21         Section 2.  Paragraph (a) of subsection (3) of section

22  125.0104, Florida Statutes, is amended to read:

23         125.0104  Tourist development tax; procedure for

24  levying; authorized uses; referendum; enforcement.--

25         (3)  TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.--

26         (a)  It is declared to be the intent of the Legislature

27  that every person who rents, leases, or lets, or grants a

28  license to use for consideration any living quarters or

29  accommodations in any hotel, apartment hotel, motel, resort

30  motel, apartment, apartment motel, roominghouse, mobile home

31  park, recreational vehicle park, or condominium for a term of

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 1  6 months or less is exercising a privilege which is subject to

 2  taxation under this section, unless such person rents, leases,

 3  or lets, or grants a license to use for consideration any

 4  living quarters or accommodations which are exempt according

 5  to the provisions of chapter 212.

 6         Section 3.  Paragraph (b) of subsection (1) of section

 7  125.0108, Florida Statutes, is amended to read:

 8         125.0108  Areas of critical state concern; tourist

 9  impact tax.--

10         (1)

11         (b)  It is declared to be the intent of the Legislature

12  that every person who rents, leases, or lets, or grants a

13  license to use for consideration any living quarters or

14  accommodations in any hotel, apartment hotel, motel, resort

15  motel, apartment, apartment motel, roominghouse, mobile home

16  park, recreational vehicle park, or condominium for a term of

17  6 months or less, unless such establishment is exempt from the

18  tax imposed by s. 212.03, is exercising a taxable privilege on

19  the proceeds therefrom under this section.

20         Section 4.  Subsection (4) is added to section 198.13,

21  Florida Statutes, to read:

22         198.13  Tax return to be made in certain cases;

23  certificate of nonliability.--

24         (4)  Notwithstanding any other provisions of this

25  section and applicable to the estate of a decedent who dies

26  after December 31, 2004, if, upon the death of the decedent, a

27  state death tax credit or a generation-skipping transfer

28  credit is not allowable pursuant to the Internal Revenue Code

29  of 1986, as amended:

30  

31  

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 1         (a)  The personal representative of the estate is not

 2  required to file a return under subsection (1) in connection

 3  with the estate.

 4         (b)  The person who would otherwise be required to file

 5  a return reporting a generation-skipping transfer under

 6  subsection (3) is not required to file such a return in

 7  connection with the estate.

 8  

 9  The provisions of this subsection do not apply to estates of

10  descendents dying after December 31, 2010.

11         Section 5.  Paragraph (c) of subsection (3) of section

12  202.18, Florida Statutes, is amended to read:

13         202.18  Allocation and disposition of tax

14  proceeds.--The proceeds of the communications services taxes

15  remitted under this chapter shall be treated as follows:

16         (3)

17         (c)1.  Except as otherwise provided in this paragraph,

18  proceeds of the taxes levied pursuant to s. 202.19, less

19  amounts deducted for costs of administration in accordance

20  with paragraph (b), shall be distributed monthly to the

21  appropriate jurisdictions. The proceeds of taxes imposed

22  pursuant to s. 202.19(5) shall be distributed in the same

23  manner as discretionary surtaxes are distributed, in

24  accordance with ss. 212.054 and 212.055.

25         2.  The department shall make any adjustments to the

26  distributions pursuant to this section paragraph which are

27  necessary to reflect the proper amounts due to individual

28  jurisdictions or trust funds. In the event that the department

29  adjusts amounts due to reflect a correction in the situsing of

30  a customer, such adjustment shall be limited to the amount of

31  

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 1  tax actually collected from such customer by the dealer of

 2  communication services.

 3         Section 6.  Paragraph (d) of subsection (2) of section

 4  202.28, Florida Statutes, is amended to read:

 5         202.28  Credit for collecting tax; penalties.--

 6         (2)

 7         (d)  If a dealer fails to separately report and

 8  identify local communications services taxes on the

 9  appropriate return schedule, the dealer shall be subject to a

10  penalty of $5,000 per return. If the department is unable to

11  obtain appropriate return schedules, any penalty imposed by

12  this paragraph shall be allocated in the same manner as

13  provided in s. 202.18(2).

14         Section 7.  Effective January 1, 2008, subsection (1)

15  of section 203.30, Florida Statutes, is amended to read:

16         202.30  Payment of taxes by electronic funds transfer;

17  filing of returns by electronic data interchange.--

18         (1)  A dealer of communications services is required to

19  remit taxes by electronic funds transfer, in the manner

20  prescribed by the department, when the amount of tax paid by

21  the dealer under this chapter, chapter 203, or chapter 212 in

22  the previous state fiscal year was $20,000 $50,000 or more;

23  $10,000 or more, effective January 1, 2009; and $5,000 or

24  more, effective January 1, 2010.

25         Section 8.  Subsection (8) is added to section 206.02,

26  Florida Statutes, to read:

27         206.02  Application for license; temporary license;

28  terminal suppliers, importers, exporters, blenders, biodiesel

29  manufacturers, and wholesalers.--

30  

31  

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 1         (8)(a)  Notwithstanding any provision to the contrary

 2  contained in this chapter, the department may grant a

 3  temporary fuel license for immediate use if:

 4         1.  The Governor has declared a state of emergency

 5  under s. 252.36; or

 6         2.  The President of the United States has declared a

 7  major disaster in this state or in any other state or

 8  territory of the United States.

 9         (b)  Notwithstanding the provisions of this chapter

10  requiring a license tax and a bond or criminal background

11  check, the department may issue a temporary license as an

12  importer or exporter to a person who holds a valid Florida

13  wholesaler license or to a person who is an unlicensed dealer.

14  A license may be issued under this subsection only to a

15  business that has a physical location in this state and holds

16  a valid Florida sales and use tax certificate or registration

17  or that holds a valid fuel license issued by another state.

18         (c)  A temporary license expires on the last day of the

19  month following the month in which the temporary license was

20  issued. The department may extend any temporary license on a

21  month-to-month basis during the period of a declared state of

22  emergency or major disaster as provided in this subsection. If

23  the department extends a temporary license, the extended

24  license expires on the last day of the month in which the

25  temporary license was extended.

26         (d)  In order to procure a temporary license, a

27  nonresident business must provide to the department the

28  information required in subsection (4); the federal

29  identification number of the business or, if such number is

30  unavailable, the social security number of the owner; and any

31  other information that is required by the department.

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 1         (e)  A temporary license authorized by this subsection

 2  may not be renewed if the licensee has not filed the required

 3  returns or made payment of the taxes required under this

 4  chapter.

 5         Section 9.  Subsection (5) is added to section 206.021,

 6  Florida Statutes, to read:

 7         206.021  Application for license; carriers.--

 8         (5)(a)  Notwithstanding any provision to the contrary

 9  contained in this chapter, the department may grant a

10  temporary fuel license for immediate use if:

11         1.  The Governor has declared a state of emergency

12  under s. 252.36; or

13         2.  The President of the United States has declared a

14  major disaster in this state or in any other state or

15  territory of the United States.

16         (b)  Notwithstanding the provisions of this chapter

17  requiring a license tax and a bond or criminal background

18  check, the department may issue a temporary license as a

19  carrier to a person who holds a valid Florida wholesaler,

20  importer, exporter, or blender license or to a person who is

21  an unlicensed dealer. A license may be issued under this

22  subsection only to a business that has a physical location in

23  this state and holds a valid Florida sales and use tax

24  certificate or registration or that holds a valid fuel license

25  issued by another state.

26         (c)  A temporary license expires on the last day of the

27  month following the month in which the temporary license was

28  issued. The department may extend any temporary license on a

29  month-to-month basis during the period of a declared state of

30  emergency or major disaster as provided in this subsection. If

31  the department extends a temporary license, the extended

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 1  license expires on the last day of the month in which the

 2  temporary license was extended.

 3         (d)  In order to procure a temporary license, a

 4  nonresident business must provide to the department the

 5  information required in subsection (2); the federal

 6  identification number of the business or, if such number is

 7  unavailable, the social security number of the owner; and any

 8  other information that is required by the department.

 9         (e)  A temporary license authorized by this subsection

10  may not be renewed if the licensee has not filed the required

11  returns or made payment of the taxes required under this

12  chapter.

13         Section 10.  Effective January 1, 2008, paragraphs (f)

14  and (g) of subsection (1) of section 206.41, Florida Statutes,

15  are amended to read:

16         206.41  State taxes imposed on motor fuel.--

17         (1)  The following taxes are imposed on motor fuel

18  under the circumstances described in subsection (6):

19         (f)1.  An additional tax designated as the State

20  Comprehensive Enhanced Transportation System Tax is imposed on

21  each net gallon of motor fuel in each county. This tax shall

22  be levied and used as provided in s. 206.608.

23         2.  The rate of the tax in each county shall be equal

24  to two-thirds of the lesser of the sum of the taxes imposed on

25  motor fuel pursuant to paragraphs (d) and (e) in such county

26  or 6 cents, rounded to the nearest tenth of a cent.

27         3.  Beginning January 1, 1992, and on January 1 of each

28  year thereafter, The tax rate provided in subparagraph 2.

29  shall be adjusted by the percentage change in the average of

30  the Consumer Price Index issued by the United States

31  Department of Labor for the most recent 12-month period ending

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 1  September 30, compared to the base year average, which is the

 2  average for the 12-month period ending September 30, 1990, and

 3  rounded to the nearest tenth of a cent.

 4         4.  The department shall notify each terminal supplier,

 5  position holder, wholesaler, and importer of the tax rate

 6  applicable under this paragraph for the 12-month period

 7  beginning January 1.

 8         (g)1.  An additional tax is imposed on each net gallon

 9  of motor fuel, which tax is on the privilege of selling motor

10  fuel and which is designated the "fuel sales tax," at a rate

11  determined pursuant to this paragraph. Before January 1 of

12  1997, and of each year thereafter, The department shall

13  determine the tax rate applicable to the sale of fuel for the

14  forthcoming 12-month period beginning January 1, 2008, and

15  each year thereafter, rounded to the nearest tenth of a cent,

16  by adjusting the initially established tax rate of 6.9 cents

17  per gallon by the percentage change in the average of the

18  Consumer Price Index issued by the United States Department of

19  Labor for the most recent 12-month period ending June 30

20  September 30, compared to the base year average, which is the

21  average for the 12-month period ending September 30, 1989.

22  However, the tax rate shall not be lower than 6.9 cents per

23  gallon.

24         2.  The department is authorized to adopt rules and

25  adopt such forms as may be necessary for the administration of

26  this paragraph.

27         3.  The department shall notify each terminal supplier,

28  position holder, wholesaler, and importer of the tax rate

29  applicable under this paragraph for the 12-month period

30  beginning January 1.

31  

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 1         Section 11.  Effective January 1, 2008, paragraph (e)

 2  of subsection (1) of section 206.87, Florida Statutes, is

 3  amended to read:

 4         206.87  Levy of tax.--

 5         (1)

 6         (e)1.  An additional tax is imposed on each net gallon

 7  of diesel fuel, which tax is on the privilege of selling

 8  diesel fuel and which is designated the "fuel sales tax," at a

 9  rate determined pursuant to this paragraph. Before January 1

10  of 1997 and of each year thereafter, The department shall

11  determine the annual tax rate applicable to the sale of diesel

12  fuel applicable for the forthcoming 12-month period beginning

13  January 1, 2008, and each year thereafter, rounded to the

14  nearest tenth of a cent, by adjusting the initially

15  established tax rate of 6.9 cents per gallon by the percentage

16  change in the average of the Consumer Price Index issued by

17  the United States Department of Labor for the most recent

18  12-month period ending June 30 September 30, compared to the

19  base year average, which is the average for the 12-month

20  period ending September 30, 1989. However, the tax rate shall

21  not be lower than 6.9 cents per gallon.

22         2.  The department is authorized to adopt rules and

23  adopt such forms as may be necessary for the administration of

24  this paragraph.

25         3.  The department shall notify each terminal supplier,

26  position holder, wholesaler, and importer of the tax rate

27  applicable under this paragraph for the 12-month period

28  beginning January 1.

29         Section 12.  Subsection (4) is added to section

30  206.9943, Florida Statutes, to read:

31         206.9943  Pollutant tax license.--

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 1         (4)  A temporary pollutant tax license may be issued to

 2  a holder of a valid Florida temporary importer, temporary

 3  wholesaler, or temporary exporter license issued under s.

 4  206.02. A temporary pollutant tax license is subject to the

 5  provisions set forth in s. 206.02(8).

 6         Section 13.  Paragraphs (d) and (e) of subsection (9)

 7  of section 211.3103, Florida Statutes, are amended to read:

 8         211.3103  Levy of tax on severance of phosphate rock;

 9  rate, basis, and distribution of tax.--

10         (9)

11         (d)  If the producer price index for phosphate rock

12  chemical and fertilizer mineral mining is substantially

13  revised, the department shall make appropriate adjustment in

14  the method used to compute the base rate adjustment under this

15  subsection which will produce results reasonably consistent

16  with the result that which would have been obtained if the

17  producer price index for phosphate rock primary products had

18  not been revised. However, the tax rate shall not be less than

19  $1.56 per ton severed.

20         (e)  If In the event the producer price index for

21  phosphate rock primary products is discontinued, then a

22  comparable index shall be selected by the department and

23  adopted by rule.

24         Section 14.  Subsection (33) of section 212.02, Florida

25  Statutes, is amended to read:

26         212.02  Definitions.--The following terms and phrases

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

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

29  different meaning:

30         (33)  "Qualified aircraft" means any aircraft having a

31  maximum certified takeoff weight of less than 10,000 pounds

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 1  and equipped with twin turbofan engines that meet Stage IV

 2  noise requirements that is used by a business operating as an

 3  on-demand air carrier under Federal Aviation Administration

 4  Regulation Title 14, chapter I, part 135, Code of Federal

 5  Regulations, that owns or leases and operates a fleet of at

 6  least 25 of such aircraft in this state.

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

 8  212.0305, Florida Statutes, is amended to read:

 9         212.0305  Convention development taxes; intent;

10  administration; authorization; use of proceeds.--

11         (3)  APPLICATION; ADMINISTRATION; PENALTIES.--

12         (a)  The convention development tax on transient

13  rentals imposed by the governing body of any county authorized

14  to so levy shall apply to the amount of any payment made by

15  any person to rent, lease, let, or grant a license to or use

16  for a period of 6 months or less any living quarters or

17  accommodations in a hotel, apartment hotel, motel, resort

18  motel, apartment, apartment motel, roominghouse, tourist or

19  trailer camp, mobile home park, recreational vehicle park, or

20  condominium.  When receipt of consideration is by way of

21  property other than money, the tax shall be levied and imposed

22  on the fair market value of such nonmonetary consideration.

23  Any payment made by a person to rent, lease, let, or grant a

24  license to or use any living quarters or accommodations which

25  are exempt from the tax imposed under s. 212.03 shall likewise

26  be exempt from any tax imposed under this section.

27         Section 16.  Paragraph (h) of subsection (1) of section

28  212.05, Florida Statutes, is amended to read:

29         212.05  Sales, storage, use tax.--It is hereby declared

30  to be the legislative intent that every person is exercising a

31  taxable privilege who engages in the business of selling

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 1  tangible personal property at retail in this state, including

 2  the business of making mail order sales, or who rents or

 3  furnishes any of the things or services taxable under this

 4  chapter, or who stores for use or consumption in this state

 5  any item or article of tangible personal property as defined

 6  herein and who leases or rents such property within the state.

 7         (1)  For the exercise of such privilege, a tax is

 8  levied on each taxable transaction or incident, which tax is

 9  due and payable as follows:

10         (h)1.  Beginning January 1, 1995, A tax is imposed at

11  the rate of 4 percent on the charges for the use of

12  coin-operated amusement machines. The tax shall be calculated

13  by dividing the gross receipts from such charges for the

14  applicable reporting period by a divisor, determined as

15  provided in this subparagraph, to compute gross taxable sales,

16  and then subtracting gross taxable sales from gross receipts

17  to arrive at the amount of tax due. For counties that do not

18  impose a discretionary sales surtax, the divisor is equal to

19  1.04;, except that for counties that impose a 0.5 percent

20  discretionary sales surtax, with a 6.5 percent sales tax rate

21  the divisor is shall be equal to 1.045;, and for counties that

22  impose a 1 percent discretionary sales surtax, with a 7.0

23  percent sales tax rate the divisor is shall be equal to 1.050;

24  and for counties that impose a 2 percent sales surtax, the

25  divisor is equal to 1.060. If a county imposes a discretionary

26  sales surtax that is not listed in this subparagraph, the

27  department shall make the applicable divisor available in an

28  electronic format or otherwise. Additional divisors shall bear

29  the same mathematical relationship to the next higher and next

30  lower divisors as the new surtax rate bears to the next higher

31  and next lower surtax rates for which divisors have been

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 1  established. When a machine is activated by a slug, token,

 2  coupon, or any similar device which has been purchased, the

 3  tax is on the price paid by the user of the device for such

 4  device.

 5         2.  As used in this paragraph, the term "operator"

 6  means any person who possesses a coin-operated amusement

 7  machine for the purpose of generating sales through that

 8  machine and who is responsible for removing the receipts from

 9  the machine.

10         a.  If the owner of the machine is also the operator of

11  it, he or she shall be liable for payment of the tax without

12  any deduction for rent or a license fee paid to a location

13  owner for the use of any real property on which the machine is

14  located.

15         b.  If the owner or lessee of the machine is also its

16  operator, he or she shall be liable for payment of the tax on

17  the purchase or lease of the machine, as well as the tax on

18  sales generated through the machine.

19         c.  If the proprietor of the business where the machine

20  is located does not own the machine, he or she shall be deemed

21  to be the lessee and operator of the machine and is

22  responsible for the payment of the tax on sales, unless such

23  responsibility is otherwise provided for in a written

24  agreement between him or her and the machine owner.

25         3.a.  An operator of a coin-operated amusement machine

26  may not operate or cause to be operated in this state any such

27  machine until the operator has registered with the department

28  and has conspicuously displayed an identifying certificate

29  issued by the department.  The identifying certificate shall

30  be issued by the department upon application from the

31  operator.  The identifying certificate shall include a unique

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 1  number, and the certificate shall be permanently marked with

 2  the operator's name, the operator's sales tax number, and the

 3  maximum number of machines to be operated under the

 4  certificate. An identifying certificate shall not be

 5  transferred from one operator to another. The identifying

 6  certificate must be conspicuously displayed on the premises

 7  where the coin-operated amusement machines are being operated.

 8         b.  The operator of the machine must obtain an

 9  identifying certificate before the machine is first operated

10  in the state and by July 1 of each year thereafter. The annual

11  fee for each certificate shall be based on the number of

12  machines identified on the application times $30 and is due

13  and payable upon application for the identifying device.  The

14  application shall contain the operator's name, sales tax

15  number, business address where the machines are being

16  operated, and the number of machines in operation at that

17  place of business by the operator. No operator may operate

18  more machines than are listed on the certificate.  A new

19  certificate is required if more machines are being operated at

20  that location than are listed on the certificate. The fee for

21  the new certificate shall be based on the number of additional

22  machines identified on the application form times $30.

23         c.  A penalty of $250 per machine is imposed on the

24  operator for failing to properly obtain and display the

25  required identifying certificate. A penalty of $250 is imposed

26  on the lessee of any machine placed in a place of business

27  without a proper current identifying certificate. Such

28  penalties shall apply in addition to all other applicable

29  taxes, interest, and penalties.

30         d.  Operators of coin-operated amusement machines must

31  obtain a separate sales and use tax certificate of

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 1  registration for each county in which such machines are

 2  located. One sales and use tax certificate of registration is

 3  sufficient for all of the operator's machines within a single

 4  county.

 5         4.  The provisions of this paragraph do not apply to

 6  coin-operated amusement machines owned and operated by

 7  churches or synagogues.

 8         5.  In addition to any other penalties imposed by this

 9  chapter, a person who knowingly and willfully violates any

10  provision of this paragraph commits a misdemeanor of the

11  second degree, punishable as provided in s. 775.082 or s.

12  775.083.

13         6.  The department may adopt rules necessary to

14  administer the provisions of this paragraph.

15         Section 17.  Subsection (3) of section 212.0506,

16  Florida Statutes, is amended to read:

17         212.0506  Taxation of service warranties.--

18         (3)  For purposes of this section, "service warranty"

19  means any contract or agreement which indemnifies the holder

20  of the contract or agreement for the cost of maintaining,

21  repairing, or replacing tangible personal property.  The term

22  "service warranty" does not include contracts or agreements to

23  repair, maintain, or replace tangible personal property if

24  such property when sold at retail in this state would not be

25  subject to the tax imposed by this chapter or if the parts and

26  labor to repair tangible personal property qualify for an

27  exemption under this chapter, nor does it include such

28  contracts or agreements covering tangible personal property

29  which becomes a part of real property.

30         Section 18.  Subsection (2) of section 212.0515,

31  Florida Statutes, is amended to read:

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 1         212.0515  Sales from vending machines; sales to vending

 2  machine operators; special provisions; registration;

 3  penalties.--

 4         (2)  Notwithstanding any other provision of law, the

 5  amount of the tax to be paid on food, beverages, or other

 6  items of tangible personal property that are sold in vending

 7  machines shall be calculated by dividing the gross receipts

 8  from such sales for the applicable reporting period by a

 9  divisor, determined as provided in this subsection, to compute

10  gross taxable sales, and then subtracting gross taxable sales

11  from gross receipts to arrive at the amount of tax due. For

12  counties that do not impose a discretionary sales surtax, the

13  divisor is equal to the sum of 1.0645 for beverage and food

14  items, or 1.0659 for other items of tangible personal

15  property., except that For counties with a 0.5 percent sales

16  surtax rate the divisor is equal to the sum of 1.0686 for

17  beverage and food items or 1.0707 for other items of tangible

18  personal property; for counties with a 0.75 percent sales

19  surtax rate the divisor is equal to the sum of 1.0706 for

20  beverage and food items or 1.0727 for other items of tangible

21  personal property; for counties with a 1 percent sales surtax

22  rate the divisor is equal to the sum of 1.0726 for beverage

23  and food items or 1.0749 for other items of tangible personal

24  property; and for counties with a 1.5 percent sales surtax

25  rate the divisor is equal to the sum of 1.0767 for beverage

26  and food items or 1.0791 for other items of tangible personal

27  property; and for counties with a 2 percent sales surtax rate

28  the divisor is equal to the sum of 1.0808 for beverage and

29  food items or 1.0833 for other items of tangible personal

30  property. When a county imposes a surtax rate that is not

31  listed in this subparagraph, the department shall make the

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 1  applicable divisor available in an electronic format or

 2  otherwise. Additional divisors shall bear the same

 3  mathematical relationship to the next higher and next lower

 4  divisors as the new surtax rate bears to the next higher and

 5  next lower surtax rates for which divisors have been

 6  established. If an operator cannot account for each type of

 7  item sold through a vending machine, the highest tax rate

 8  shall be used for all products sold through that machine.

 9         Section 19.  Paragraphs (g), (h), (n), and (o) of

10  subsection (5) of section 212.08, Florida Statutes, are

11  amended to read:

12         212.08  Sales, rental, use, consumption, distribution,

13  and storage tax; specified exemptions.--The sale at retail,

14  the rental, the use, the consumption, the distribution, and

15  the storage to be used or consumed in this state of the

16  following are hereby specifically exempt from the tax imposed

17  by this chapter.

18         (5)  EXEMPTIONS; ACCOUNT OF USE.--

19         (g)  Building materials used in the rehabilitation of

20  real property located in an enterprise zone.--

21         1.  Building materials used in the rehabilitation of

22  real property located in an enterprise zone shall be exempt

23  from the tax imposed by this chapter upon an affirmative

24  showing to the satisfaction of the department that the items

25  have been used for the rehabilitation of real property located

26  in an enterprise zone. Except as provided in subparagraph 2.,

27  this exemption inures to the owner, lessee, or lessor of the

28  rehabilitated real property located in an enterprise zone only

29  through a refund of previously paid taxes. To receive a refund

30  pursuant to this paragraph, the owner, lessee, or lessor of

31  the rehabilitated real property located in an enterprise zone

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 1  must file an application under oath with the governing body or

 2  enterprise zone development agency having jurisdiction over

 3  the enterprise zone where the business is located, as

 4  applicable, which includes:

 5         a.  The name and address of the person claiming the

 6  refund.

 7         b.  An address and assessment roll parcel number of the

 8  rehabilitated real property in an enterprise zone for which a

 9  refund of previously paid taxes is being sought.

10         c.  A description of the improvements made to

11  accomplish the rehabilitation of the real property.

12         d.  A copy of the building permit issued for the

13  rehabilitation of the real property.

14         e.  A sworn statement, under the penalty of perjury,

15  from the general contractor licensed in this state with whom

16  the applicant contracted to make the improvements necessary to

17  accomplish the rehabilitation of the real property, which

18  statement lists the building materials used in the

19  rehabilitation of the real property, the actual cost of the

20  building materials, and the amount of sales tax paid in this

21  state on the building materials. In the event that a general

22  contractor has not been used, the applicant shall provide this

23  information in a sworn statement, under the penalty of

24  perjury. Copies of the invoices which evidence the purchase of

25  the building materials used in such rehabilitation and the

26  payment of sales tax on the building materials shall be

27  attached to the sworn statement provided by the general

28  contractor or by the applicant. Unless the actual cost of

29  building materials used in the rehabilitation of real property

30  and the payment of sales taxes due thereon is documented by a

31  general contractor or by the applicant in this manner, the

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 1  cost of such building materials shall be an amount equal to 40

 2  percent of the increase in assessed value for ad valorem tax

 3  purposes.

 4         f.  The identifying number assigned pursuant to s.

 5  290.0065 to the enterprise zone in which the rehabilitated

 6  real property is located.

 7         g.  A certification by the local building code

 8  inspector that the improvements necessary to accomplish the

 9  rehabilitation of the real property are substantially

10  completed.

11         h.  Whether the business is a small business as defined

12  by s. 288.703(1).

13         i.  If applicable, the name and address of each

14  permanent employee of the business, including, for each

15  employee who is a resident of an enterprise zone, the

16  identifying number assigned pursuant to s. 290.0065 to the

17  enterprise zone in which the employee resides.

18         2.  This exemption inures to a city, county, other

19  governmental agency, or nonprofit community-based organization

20  through a refund of previously paid taxes if the building

21  materials used in the rehabilitation of real property located

22  in an enterprise zone are paid for from the funds of a

23  community development block grant, State Housing Initiatives

24  Partnership Program, or similar grant or loan program. To

25  receive a refund pursuant to this paragraph, a city, county,

26  other governmental agency, or nonprofit community-based

27  organization must file an application which includes the same

28  information required to be provided in subparagraph 1. by an

29  owner, lessee, or lessor of rehabilitated real property. In

30  addition, the application must include a sworn statement

31  signed by the chief executive officer of the city, county,

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 1  other governmental agency, or nonprofit community-based

 2  organization seeking a refund which states that the building

 3  materials for which a refund is sought were paid for from the

 4  funds of a community development block grant, State Housing

 5  Initiatives Partnership Program, or similar grant or loan

 6  program.

 7         3.  Within 10 working days after receipt of an

 8  application, the governing body or enterprise zone development

 9  agency shall review the application to determine if it

10  contains all the information required pursuant to subparagraph

11  1. or subparagraph 2. and meets the criteria set out in this

12  paragraph. The governing body or agency shall certify all

13  applications that contain the information required pursuant to

14  subparagraph 1. or subparagraph 2. and meet the criteria set

15  out in this paragraph as eligible to receive a refund. If

16  applicable, the governing body or agency shall also certify if

17  20 percent of the employees of the business are residents of

18  an enterprise zone, excluding temporary and part-time

19  employees. The certification shall be in writing, and a copy

20  of the certification shall be transmitted to the executive

21  director of the Department of Revenue. The applicant shall be

22  responsible for forwarding a certified application to the

23  department within the time specified in subparagraph 4.

24         4.  An application for a refund pursuant to this

25  paragraph must be submitted to the department within 6 months

26  after the rehabilitation of the property is deemed to be

27  substantially completed by the local building code inspector

28  or by September 1 after the rehabilitated property is first

29  subject to assessment.

30         5.  The provisions of s. 212.095 do not apply to any

31  refund application made pursuant to this paragraph. Not more

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 1  than one exemption through a refund of previously paid taxes

 2  for the rehabilitation of real property shall be permitted for

 3  any single parcel of property unless there is a change in

 4  ownership, a new lessor, or a new lessee of the real property.

 5  No refund shall be granted pursuant to this paragraph unless

 6  the amount to be refunded exceeds $500. No refund granted

 7  pursuant to this paragraph shall exceed the lesser of 97

 8  percent of the Florida sales or use tax paid on the cost of

 9  the building materials used in the rehabilitation of the real

10  property as determined pursuant to sub-subparagraph 1.e. or

11  $5,000, or, if no less than 20 percent of the employees of the

12  business are residents of an enterprise zone, excluding

13  temporary and part-time employees, the amount of refund

14  granted pursuant to this paragraph shall not exceed the lesser

15  of 97 percent of the sales tax paid on the cost of such

16  building materials or $10,000. A refund approved pursuant to

17  this paragraph shall be made within 30 days of formal approval

18  by the department of the application for the refund. This

19  subparagraph shall apply retroactively to July 1, 2005.

20         6.  The department shall adopt rules governing the

21  manner and form of refund applications and may establish

22  guidelines as to the requisites for an affirmative showing of

23  qualification for exemption under this paragraph.

24         7.  The department shall deduct an amount equal to 10

25  percent of each refund granted under the provisions of this

26  paragraph from the amount transferred into the Local

27  Government Half-cent Sales Tax Clearing Trust Fund pursuant to

28  s. 212.20 for the county area in which the rehabilitated real

29  property is located and shall transfer that amount to the

30  General Revenue Fund.

31  

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 1         8.  For the purposes of the exemption provided in this

 2  paragraph:

 3         a.  "Building materials" means tangible personal

 4  property which becomes a component part of improvements to

 5  real property.

 6         b.  "Real property" has the same meaning as provided in

 7  s. 192.001(12).

 8         c.  "Rehabilitation of real property" means the

 9  reconstruction, renovation, restoration, rehabilitation,

10  construction, or expansion of improvements to real property.

11         d.  "Substantially completed" has the same meaning as

12  provided in s. 192.042(1).

13         9.  This paragraph expires on the date specified in s.

14  290.016 for the expiration of the Florida Enterprise Zone Act.

15         (h)  Business property used in an enterprise zone.--

16         1.  Business property purchased for use by businesses

17  located in an enterprise zone which is subsequently used in an

18  enterprise zone shall be exempt from the tax imposed by this

19  chapter. This exemption inures to the business only through a

20  refund of previously paid taxes. A refund shall be authorized

21  upon an affirmative showing by the taxpayer to the

22  satisfaction of the department that the requirements of this

23  paragraph have been met.

24         2.  To receive a refund, the business must file under

25  oath with the governing body or enterprise zone development

26  agency having jurisdiction over the enterprise zone where the

27  business is located, as applicable, an application which

28  includes:

29         a.  The name and address of the business claiming the

30  refund.

31  

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 1         b.  The identifying number assigned pursuant to s.

 2  290.0065 to the enterprise zone in which the business is

 3  located.

 4         c.  A specific description of the property for which a

 5  refund is sought, including its serial number or other

 6  permanent identification number.

 7         d.  The location of the property.

 8         e.  The sales invoice or other proof of purchase of the

 9  property, showing the amount of sales tax paid, the date of

10  purchase, and the name and address of the sales tax dealer

11  from whom the property was purchased.

12         f.  Whether the business is a small business as defined

13  by s. 288.703(1).

14         g.  If applicable, the name and address of each

15  permanent employee of the business, including, for each

16  employee who is a resident of an enterprise zone, the

17  identifying number assigned pursuant to s. 290.0065 to the

18  enterprise zone in which the employee resides.

19         3.  Within 10 working days after receipt of an

20  application, the governing body or enterprise zone development

21  agency shall review the application to determine if it

22  contains all the information required pursuant to subparagraph

23  2. and meets the criteria set out in this paragraph. The

24  governing body or agency shall certify all applications that

25  contain the information required pursuant to subparagraph 2.

26  and meet the criteria set out in this paragraph as eligible to

27  receive a refund. If applicable, the governing body or agency

28  shall also certify if 20 percent of the employees of the

29  business are residents of an enterprise zone, excluding

30  temporary and part-time employees. The certification shall be

31  in writing, and a copy of the certification shall be

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 1  transmitted to the executive director of the Department of

 2  Revenue. The business shall be responsible for forwarding a

 3  certified application to the department within the time

 4  specified in subparagraph 4.

 5         4.  An application for a refund pursuant to this

 6  paragraph must be submitted to the department within 6 months

 7  after the tax is due on the business property that is

 8  purchased.

 9         5.  The provisions of s. 212.095 do not apply to any

10  refund application made pursuant to this paragraph. The amount

11  refunded on purchases of business property under this

12  paragraph shall be the lesser of 97 percent of the sales tax

13  paid on such business property or $5,000, or, if no less than

14  20 percent of the employees of the business are residents of

15  an enterprise zone, excluding temporary and part-time

16  employees, the amount refunded on purchases of business

17  property under this paragraph shall be the lesser of 97

18  percent of the sales tax paid on such business property or

19  $10,000. A refund approved pursuant to this paragraph shall be

20  made within 30 days of formal approval by the department of

21  the application for the refund. No refund shall be granted

22  under this paragraph unless the amount to be refunded exceeds

23  $100 in sales tax paid on purchases made within a 60-day time

24  period.

25         6.  The department shall adopt rules governing the

26  manner and form of refund applications and may establish

27  guidelines as to the requisites for an affirmative showing of

28  qualification for exemption under this paragraph.

29         7.  If the department determines that the business

30  property is used outside an enterprise zone within 3 years

31  from the date of purchase, the amount of taxes refunded to the

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 1  business purchasing such business property shall immediately

 2  be due and payable to the department by the business, together

 3  with the appropriate interest and penalty, computed from the

 4  date of purchase, in the manner provided by this chapter.

 5  Notwithstanding this subparagraph, business property used

 6  exclusively in:

 7         a.  Licensed commercial fishing vessels,

 8         b.  Fishing guide boats, or

 9         c.  Ecotourism guide boats

10  

11  that leave and return to a fixed location within an area

12  designated under s. 370.28 are eligible for the exemption

13  provided under this paragraph if all requirements of this

14  paragraph are met. Such vessels and boats must be owned by a

15  business that is eligible to receive the exemption provided

16  under this paragraph. This exemption does not apply to the

17  purchase of a vessel or boat.

18         8.  The department shall deduct an amount equal to 10

19  percent of each refund granted under the provisions of this

20  paragraph from the amount transferred into the Local

21  Government Half-cent Sales Tax Clearing Trust Fund pursuant to

22  s. 212.20 for the county area in which the business property

23  is located and shall transfer that amount to the General

24  Revenue Fund.

25         9.  For the purposes of this exemption, "business

26  property" means new or used property defined as "recovery

27  property" in s. 168(c) of the Internal Revenue Code of 1954,

28  as amended, except:

29         a.  Property classified as 3-year property under s.

30  168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;

31  

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 1         b.  Industrial machinery and equipment as defined in

 2  sub-subparagraph (b)6.a. and eligible for exemption under

 3  paragraph (b);

 4         c.  Building materials as defined in sub-subparagraph

 5  (g)8.a.; and

 6         d.  Business property having a sales price of under

 7  $5,000 per unit.

 8         10.  This paragraph expires on the date specified in s.

 9  290.016 for the expiration of the Florida Enterprise Zone Act.

10         (n)  Materials for construction of single-family homes

11  in certain areas.--

12         1.  As used in this paragraph, the term:

13         a.  "Building materials" means tangible personal

14  property that becomes a component part of a qualified home.

15         b.  "Qualified home" means a single-family home having

16  an appraised value of no more than $160,000 which is located

17  in an enterprise zone, empowerment zone, or Front Porch

18  Florida Community and which is constructed and occupied by the

19  owner thereof for residential purposes.

20         c.  "Substantially completed" has the same meaning as

21  provided in s. 192.042(1).

22         2.  Building materials used in the construction of a

23  qualified home and the costs of labor associated with the

24  construction of a qualified home are exempt from the tax

25  imposed by this chapter upon an affirmative showing to the

26  satisfaction of the department that the requirements of this

27  paragraph have been met. This exemption inures to the owner

28  through a refund of previously paid taxes. To receive this

29  refund, the owner must file an application under oath with the

30  department which includes:

31         a.  The name and address of the owner.

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 1         b.  The address and assessment roll parcel number of

 2  the home for which a refund is sought.

 3         c.  A copy of the building permit issued for the home.

 4         d.  A certification by the local building code

 5  inspector that the home is substantially completed.

 6         e.  A sworn statement, under penalty of perjury, from

 7  the general contractor licensed in this state with whom the

 8  owner contracted to construct the home, which statement lists

 9  the building materials used in the construction of the home

10  and the actual cost thereof, the labor costs associated with

11  such construction, and the amount of sales tax paid on these

12  materials and labor costs. If a general contractor was not

13  used, the owner shall provide this information in a sworn

14  statement, under penalty of perjury. Copies of invoices

15  evidencing payment of sales tax must be attached to the sworn

16  statement.

17         f.  A sworn statement, under penalty of perjury, from

18  the owner affirming that he or she is occupying the home for

19  residential purposes.

20         3.  An application for a refund under this paragraph

21  must be submitted to the department within 6 months after the

22  date the home is deemed to be substantially completed by the

23  local building code inspector. Within 30 working days after

24  receipt of the application, the department shall determine if

25  it meets the requirements of this paragraph. A refund approved

26  pursuant to this paragraph shall be made within 30 days after

27  formal approval of the application by the department. The

28  provisions of s. 212.095 do not apply to any refund

29  application made under this paragraph.

30  

31  

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 1         4.  The department shall establish by rule an

 2  application form and criteria for establishing eligibility for

 3  exemption under this paragraph.

 4         5.  The exemption shall apply to purchases of materials

 5  on or after July 1, 2000.

 6         (o)  Building materials in redevelopment projects.--

 7         1.  As used in this paragraph, the term:

 8         a.  "Building materials" means tangible personal

 9  property that becomes a component part of a housing project or

10  a mixed-use project.

11         b.  "Housing project" means the conversion of an

12  existing manufacturing or industrial building to housing units

13  in an urban high-crime area, enterprise zone, empowerment

14  zone, Front Porch Community, designated brownfield area, or

15  urban infill area and in which the developer agrees to set

16  aside at least 20 percent of the housing units in the project

17  for low-income and moderate-income persons or the construction

18  in a designated brownfield area of affordable housing for

19  persons described in s. 420.0004(8), (10), (11), or (15) or in

20  s. 159.603(7).

21         c.  "Mixed-use project" means the conversion of an

22  existing manufacturing or industrial building to mixed-use

23  units that include artists' studios, art and entertainment

24  services, or other compatible uses. A mixed-use project must

25  be located in an urban high-crime area, enterprise zone,

26  empowerment zone, Front Porch Community, designated brownfield

27  area, or urban infill area, and the developer must agree to

28  set aside at least 20 percent of the square footage of the

29  project for low-income and moderate-income housing.

30         d.  "Substantially completed" has the same meaning as

31  provided in s. 192.042(1).

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 1         2.  Building materials used in the construction of a

 2  housing project or mixed-use project are exempt from the tax

 3  imposed by this chapter upon an affirmative showing to the

 4  satisfaction of the department that the requirements of this

 5  paragraph have been met. This exemption inures to the owner

 6  through a refund of previously paid taxes. To receive this

 7  refund, the owner must file an application under oath with the

 8  department which includes:

 9         a.  The name and address of the owner.

10         b.  The address and assessment roll parcel number of

11  the project for which a refund is sought.

12         c.  A copy of the building permit issued for the

13  project.

14         d.  A certification by the local building code

15  inspector that the project is substantially completed.

16         e.  A sworn statement, under penalty of perjury, from

17  the general contractor licensed in this state with whom the

18  owner contracted to construct the project, which statement

19  lists the building materials used in the construction of the

20  project and the actual cost thereof, and the amount of sales

21  tax paid on these materials. If a general contractor was not

22  used, the owner shall provide this information in a sworn

23  statement, under penalty of perjury. Copies of invoices

24  evidencing payment of sales tax must be attached to the sworn

25  statement.

26         3.  An application for a refund under this paragraph

27  must be submitted to the department within 6 months after the

28  date the project is deemed to be substantially completed by

29  the local building code inspector. Within 30 working days

30  after receipt of the application, the department shall

31  determine if it meets the requirements of this paragraph. A

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 1  refund approved pursuant to this paragraph shall be made

 2  within 30 days after formal approval of the application by the

 3  department. The provisions of s. 212.095 do not apply to any

 4  refund application made under this paragraph.

 5         4.  The department shall establish by rule an

 6  application form and criteria for establishing eligibility for

 7  exemption under this paragraph.

 8         5.  The exemption shall apply to purchases of materials

 9  on or after July 1, 2000.

10         Section 20.  Section 212.095, Florida Statutes, is

11  repealed.

12         Section 21.  Section 212.10, Florida Statutes, is

13  amended to read:

14         212.10  Sale of business; liability for tax, procedure,

15  penalty for violation.--

16         (1)(a)  If any dealer liable for any tax, interest, or

17  penalty levied hereunder sells shall sell out his or her

18  business or stock of goods, transfers substantially all of the

19  dealer's assets or liabilities to another entity or person, or

20  otherwise quits or ceases to conduct business:

21         1.  The dealer shall make a final return and payment

22  within 15 days after the date of selling or otherwise

23  transferring the business; and

24         2.  The dealer's purchaser, transferee, successor,

25  successors, or assignee assigns shall withhold a sufficient

26  portion of the consideration purchase money to safely cover

27  the account of such taxes, interest, or penalties due and

28  unpaid until the such former owner produces shall produce a

29  receipt from the department showing that he or she has they

30  have been paid or a certificate stating that no taxes,

31  interest, or penalty are due.

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 1         (b)  If the purchase or transfer is for less than fair

 2  market value, or if a purchaser, transferee, successor, or

 3  assignee purchasers of a business or stock of goods fails

 4  shall fail to withhold a sufficient amount of the

 5  consideration purchase money as above provided in paragraph

 6  (a), he or she is shall be personally liable for the payment

 7  of the taxes, interest, and penalties accruing and unpaid on

 8  account of the operation of the business by any former owner,

 9  owners, or assigns as follows:.

10         1.  If the purchaser fails or refuses to provide

11  competent substantial evidence of the consideration paid, the

12  purchaser is liable for the full amount of any liability for

13  tax, interest, and penalties accruing and unpaid on account of

14  the operation of the business by any former owner, owners, or

15  assigns and the same shall be assessed.

16         2.  If the purchaser, transferee, successor, or

17  assignee of a business or stock of goods expressly assumed the

18  debt of the selling dealer, or other preexisting liabilities

19  are otherwise assumed, the purchaser is liable for the full

20  amount of any liability for tax, interest, and penalties

21  accruing and unpaid on account of the operation of the

22  business by any former owner, owners, or assigns and the same

23  shall be assessed.

24         3.  If assets are transferred for consideration

25  determined to be less than fair market value, the transferee

26  is liable for the full amount of any liability for tax,

27  interest, and penalties accruing and unpaid on account of the

28  operation of the business by any former owner, owners, or

29  assigns and the same shall be assessed up to the fair market

30  value of the assets transferred.

31  

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 1         4.  If a successor entity is created that, upon

 2  transfer, acts to continue the dealer's business without a

 3  material change to the persons managing or controlling the

 4  original business or entity, the full amount of any unpaid

 5  liability for tax, interest, and penalties shall be assessed

 6  against the successor entity. If, at the time of the transfer,

 7  the liability was recorded as a warrant, the persons managing

 8  or controlling the successor entity are liable, in addition to

 9  other penalties provided by law, for a specific penalty of 100

10  percent of the tax, penalties, and interest due as established

11  by the warrant and the same shall be assessed.

12         (c)  Protection from transferee liability may be

13  secured only by an audit of the seller's or former owner's or

14  operator's books and records. The seller or purchaser,

15  transferee, successor, or assignee under this subsection may

16  request an audit of the seller's books and records. Any

17  receipt or certificate from the department does not, without

18  an audit of the selling dealer's books and records by the

19  department, guarantee that there is not a tax deficiency owed

20  the state from operation of the seller's or former owner's or

21  operator's business. To secure protection from transferee

22  liability under this section, the seller or purchaser may

23  request an audit of the seller's books and records. The

24  department may contract with private auditors pursuant to s.

25  213.28 to perform the audit.  The department may charge the

26  cost of the audit to the person requesting the audit.

27         1.  For the purposes of the personal liability imposed

28  by this subsection, in the case of a business requiring

29  registration with the department, in addition to any other

30  enforcement action the department may take, the department may

31  require:

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 1         a.  Payment of the liability or a written agreement

 2  with the department to pay such liability; and

 3         b.  Posting of a bond equal to or greater than three

 4  times the estimated average monthly liability of the

 5  transferee for all taxes, fees, and surcharges administered by

 6  the department.

 7         2.  The imposition of personal liability upon a

 8  transferee under this paragraph does not extinguish the

 9  liability of the seller, former owner, or former operator.

10         (2)  If any dealer liable for any tax, interest, or

11  penalty shall quit the business without the benefit of a

12  purchaser and there is no successor, successors, or assigns,

13  he or she shall make a final return and payment within 15

14  days. Any person failing to file such final return and make

15  payment shall be denied the right to engage in any business in

16  the state until the person has filed such final return and

17  paid any moneys due; and

18         (d)  At the request of the department, the Department

19  of Legal Affairs is hereby authorized to proceed by

20  injunction, when requested by the department to do so, to

21  prevent by injunction any activity in the performance of

22  further business activity until such tax is paid; and a

23  temporary injunction enjoining further business activity shall

24  be granted without notice by any judge or chancellor

25  authorized by law to grant injunctions with regard to:.

26         1.  Any dealer who fails to make a final return and

27  payment in the time and manner required by this subsection;

28  and

29         2.  Any taxpayer who is subject to personal liability

30  under this subsection.

31  

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 1         (2)(3)  In the event any dealer is delinquent in the

 2  payment of the tax herein provided for, the department may

 3  give notice of the amount of such delinquency by registered

 4  mail to all persons having in their possession or under their

 5  control any credits or other personal property belonging to

 6  such dealer or owing any debts to such dealer at the time of

 7  receipt by them of such notice.  All persons so notified shall

 8  within 5 days after receipt of the notice advise the

 9  department of all such credits, other personal property, or

10  debts in their possession, under their control, or owing by

11  them.  After receiving the notice, the persons so notified

12  shall neither transfer nor make any other disposition of the

13  credits, other personal property, or debts in their possession

14  or under their control at the time they receive the notice

15  until the department consents to a transfer or disposition or

16  until 60 days elapse after the receipt of the notice,

17  whichever period expires the earlier, except that the credits,

18  other personal property, or debts which exceed the delinquent

19  amount stipulated in the notice shall not be subject to the

20  provisions of this section, wherever held, in any case in

21  which such dealer does not have a prior history of sales tax

22  delinquencies.  All persons notified shall likewise within 5

23  days advise the department of any subsequent credits or other

24  personal property belonging to such dealer or any debts

25  incurred and owing to such dealer which may come within their

26  possession or under their control during the time prescribed

27  by the notice or until the department consents to a transfer

28  or disposition, whichever expires the earlier. If such notice

29  seeks to prevent the transfer or other disposition of a

30  deposit in a bank or other credits or personal property in the

31  possession or under the control of a bank, the notice to be

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 1  effective shall be delivered or mailed to the office of such

 2  bank at which such deposit is carried or at which such credits

 3  or personal property is held. If, during the effective period

 4  of the notice to withhold, any person so notified makes any

 5  transfer or disposition of the property or debts required to

 6  be withheld hereunder, he or she shall be liable to the state

 7  for any indebtedness due under this chapter from the person

 8  with respect to whose obligation the notice was given to the

 9  extent of the value of the property or the amount of the debts

10  thus transferred or paid if, solely by reason of such transfer

11  or disposition, the state is unable to recover the

12  indebtedness of the person with respect to whose obligation

13  the notice was given. All such credits or other personal

14  property or debts are subject to garnishment by the department

15  for satisfaction of the delinquent tax due.

16         (3)(4)  After notice by the department of a transferee

17  liability under this section, the dealer shall have 60 days

18  within which to file an action as provided in chapter 72.

19         (4)(5)  Any violation of the provisions of this section

20  is a misdemeanor of the first degree, punishable as provided

21  in s. 775.082 or s. 775.083.

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

23  paragraph (c) of subsection (6) of section 212.12, Florida

24  Statutes, are amended to read:

25         212.12  Dealer's credit for collecting tax; penalties

26  for noncompliance; powers of Department of Revenue in dealing

27  with delinquents; brackets applicable to taxable transactions;

28  records required.--

29         (2)

30         (d)  Any person who makes a false or fraudulent return

31  with a willful intent to evade payment of any tax or fee

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 1  imposed under this chapter; any person who, after the

 2  department's delivery of a written notice to the person's last

 3  known address specifically alerting the person of the

 4  requirement to register the person's business as a dealer,

 5  intentionally fails to register the business; and any person

 6  who, after the department's delivery of a written notice to

 7  the person's last known address specifically alerting the

 8  person of the requirement to collect tax on specific

 9  transactions, intentionally fails to collect such tax, shall,

10  unless first having brought a legal challenge in response to

11  such notice and in addition to the other penalties provided by

12  law, be liable for a specific penalty of 100 percent of any

13  unreported or any uncollected the tax bill or fee and, upon

14  conviction, for fine and punishment as provided in s. 775.082,

15  s. 775.083, or s. 775.084.

16         1.  If the total amount of unreported or uncollected

17  taxes or fees is less than $300, the first offense resulting

18  in conviction is a misdemeanor of the second degree, the

19  second offense resulting in conviction is a misdemeanor of the

20  first degree, and the third and all subsequent offenses

21  resulting in conviction is a misdemeanor of the first degree,

22  and the third and all subsequent offenses resulting in

23  conviction are felonies of the third degree.

24         2.  If the total amount of unreported or uncollected

25  taxes or fees is $300 or more but less than $20,000, the

26  offense is a felony of the third degree.

27         3.  If the total amount of unreported or uncollected

28  taxes or fees is $20,000 or more but less than $100,000, the

29  offense is a felony of the second degree.

30  

31  

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 1         4.  If the total amount of unreported or uncollected

 2  taxes or fees is $100,000 or more, the offense is a felony of

 3  the first degree.

 4         (6)

 5         (c)1.  If the records of a dealer are adequate but

 6  voluminous in nature and substance, the department may sample

 7  such records, except for fixed assets, and project the audit

 8  findings derived therefrom over the entire audit period to

 9  determine the proportion that taxable retail sales bear to

10  total retail sales or the proportion that taxable purchases

11  bear to total purchases. Adequate but voluminous records of

12  fixed assets that have an individual cost price of $25,000 or

13  less may be statistically sampled, unless a greater amount not

14  to exceed $100,000 is requested by the taxpayer. In order to

15  conduct such a sample, the department must first make a good

16  faith effort to reach an agreement with the dealer, which

17  agreement provides for the means and methods to be used in the

18  sampling process. In the event that no agreement is reached,

19  the dealer is entitled to a review by the executive director.

20         2.  For the purposes of sampling pursuant to

21  subparagraph 1., the department shall project any deficiencies

22  and overpayments derived therefrom over the entire audit

23  period. In determining the dealer's compliance, the department

24  shall reduce any tax deficiency as derived from the sample by

25  the amount of any overpayment derived from the sample. In the

26  event the department determines from the sample results that

27  the dealer has a net tax overpayment, the department shall

28  provide the findings of this overpayment to the Chief

29  Financial Officer for repayment of funds paid into the State

30  Treasury through error pursuant to s. 215.26.

31  

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 1         3.a.  A taxpayer is entitled, both in connection with

 2  an audit and in connection with an application for refund

 3  filed independently of any audit, to establish the amount of

 4  any refund or deficiency through statistical sampling when the

 5  taxpayer's records, other than those regarding fixed assets,

 6  are adequate but voluminous. Adequate but voluminous records

 7  of fixed assets that have an individual cost price of $25,000

 8  or less may be statistically sampled, unless a greater amount

 9  not to exceed $100,000 is requested by the taxpayer.

10  Alternatively, a taxpayer is entitled to establish any refund

11  or deficiency through any other sampling method agreed upon by

12  the taxpayer and the department when the taxpayer's records,

13  other than those regarding fixed assets, are adequate but

14  voluminous. Whether done through statistical sampling or any

15  other sampling method agreed upon by the taxpayer and the

16  department, the completed sample must reflect both

17  overpayments and underpayments of taxes due. The sample shall

18  be conducted through:

19         (I)  A taxpayer request to perform the sampling through

20  the certified audit program pursuant to s. 213.285;

21         (II)  Attestation by a certified public accountant as

22  to the adequacy of the sampling method utilized and the

23  results reached using such sampling method; or

24         (III)  A sampling method that has been submitted by the

25  taxpayer and approved by the department before a refund claim

26  is submitted. This sub-sub-subparagraph does not prohibit a

27  taxpayer from filing a refund claim prior to approval by the

28  department of the sampling method; however, a refund claim

29  submitted before the sampling method has been approved by the

30  department cannot be a complete refund application pursuant to

31  

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 1  s. 213.255 until the sampling method has been approved by the

 2  department.

 3         b.  The department shall prescribe by rule the

 4  procedures to be followed under each method of sampling. Such

 5  procedures shall follow generally accepted auditing procedures

 6  for sampling. The rule shall also set forth other criteria

 7  regarding the use of sampling, including, but not limited to,

 8  training requirements that must be met before a sampling

 9  method may be utilized and the steps necessary for the

10  department and the taxpayer to reach agreement on a sampling

11  method submitted by the taxpayer for approval by the

12  department.

13         Section 23.  It is the intent of the Legislature that

14  the amendments made by this act to s. 212.12(6)(c), Florida

15  Statutes, apply to all pending sales and use tax audits or

16  other actions or inquiries, excluding those currently under

17  protest or in litigation. The amendments made by this act to

18  s. 212.12(6)(c), Florida Statutes, do not create any right to

19  refund for taxes previously assessed and paid in regard to

20  audits or other actions or inquiries that are no longer

21  pending.

22         Section 24.  Subsection (4) of section 212.14, Florida

23  Statutes, is amended to read:

24         212.14  Departmental powers; hearings; distress

25  warrants; bonds; subpoenas and subpoenas duces tecum.--

26         (4)  In all cases where it is necessary to ensure

27  compliance with the provisions of this chapter, The department

28  may shall require a cash deposit, bond or other security as a

29  condition to a person obtaining or retaining a dealer's

30  certificate of registration under this chapter, as provided in

31  s. 213.32(5). Such bond shall be in the form and such amount

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 1  as the department deems appropriate under the particular

 2  circumstances. Every person failing to produce such cash

 3  deposit, bond or other security as provided for herein shall

 4  not be entitled to obtain or retain a dealer's certificate of

 5  registration under this chapter, and the Department of Legal

 6  Affairs is hereby authorized to proceed by injunction, when so

 7  requested by the Department of Revenue, to prevent such person

 8  from doing business subject to the provisions of this chapter

 9  until such cash deposit, bond or other security is posted with

10  the department, and any temporary injunction for this purpose

11  may be granted by any judge or chancellor authorized by law to

12  grant injunctions. Any security required to be deposited may

13  be sold by the department at public sale if it becomes

14  necessary so to do in order to recover any tax, interest or

15  penalty due. Notice of such sale may be served personally or

16  by mail upon the person who deposited such security. If by

17  mail, notice sent to the last known address as the same

18  appears on the records of the department shall be sufficient

19  for the purpose of this requirement. Upon such sale, the

20  surplus, if any, above the amount due under this chapter shall

21  be returned to the person who deposited the security.

22         Section 25.  Subsection (3) of section 212.18, Florida

23  Statutes, is amended to read:

24         212.18  Administration of law; registration of dealers;

25  rules.--

26         (3)(a)  Every person desiring to engage in or conduct

27  business in this state as a dealer, as defined in this

28  chapter, or to lease, rent, or let or grant licenses in living

29  quarters or sleeping or housekeeping accommodations in hotels,

30  apartment houses, roominghouses, or tourist or trailer camps

31  that are subject to tax under s. 212.03, or to lease, rent, or

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 1  let or grant licenses in real property, as defined in this

 2  chapter, and every person who sells or receives anything of

 3  value by way of admissions, must file with the department an

 4  application for a certificate of registration for each place

 5  of business, showing the names of the persons who have

 6  interests in such business and their residences, the address

 7  of the business, and such other data as the department may

 8  reasonably require. However, owners and operators of vending

 9  machines or newspaper rack machines are required to obtain

10  only one certificate of registration for each county in which

11  such machines are located. The department, by rule, may

12  authorize a dealer that uses independent sellers to sell its

13  merchandise to remit tax on the retail sales price charged to

14  the ultimate consumer in lieu of having the independent seller

15  register as a dealer and remit the tax. The department may

16  appoint the county tax collector as the department's agent to

17  accept applications for registrations. The application must be

18  made to the department before the person, firm, copartnership,

19  or corporation may engage in such business, and it must be

20  accompanied by a registration fee of $5. However, a

21  registration fee is not required to accompany an application

22  to engage in or conduct business to make mail order sales. The

23  department may waive the registration fee for applications

24  submitted through the department's Internet registration

25  process.

26         (b)  The department, upon receipt of such application,

27  will grant to the applicant a separate certificate of

28  registration for each place of business, which certificate may

29  be canceled by the department or its designated assistants for

30  any failure by the certificateholder to comply with any of the

31  provisions of this chapter. The certificate is not assignable

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 1  and is valid only for the person, firm, copartnership, or

 2  corporation to which issued. The certificate must be placed in

 3  a conspicuous place in the business or businesses for which it

 4  is issued and must be displayed at all times. Except as

 5  provided in this subsection, no person shall engage in

 6  business as a dealer or in leasing, renting, or letting of or

 7  granting licenses in living quarters or sleeping or

 8  housekeeping accommodations in hotels, apartment houses,

 9  roominghouses, tourist or trailer camps, or real property as

10  hereinbefore defined, nor shall any person sell or receive

11  anything of value by way of admissions, without first having

12  obtained such a certificate or after such certificate has been

13  canceled; no person shall receive any license from any

14  authority within the state to engage in any such business

15  without first having obtained such a certificate or after such

16  certificate has been canceled. The engaging in the business of

17  selling or leasing tangible personal property or services or

18  as a dealer, as defined in this chapter, or the engaging in

19  leasing, renting, or letting of or granting licenses in living

20  quarters or sleeping or housekeeping accommodations in hotels,

21  apartment houses, roominghouses, or tourist or trailer camps

22  that are taxable under this chapter, or real property, or the

23  engaging in the business of selling or receiving anything of

24  value by way of admissions, without such certificate first

25  being obtained or after such certificate has been canceled by

26  the department, is prohibited. The failure or refusal of any

27  person, firm, copartnership, or corporation to so qualify when

28  required hereunder is a misdemeanor of the first degree,

29  punishable as provided in s. 775.082 or s. 775.083, or subject

30  to injunctive proceedings as provided by law. Such failure or

31  refusal also subjects the offender to a $100 initial

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 1  registration fee in lieu of the $5 registration fee authorized

 2  in paragraph (a).  However, the department may waive the

 3  increase in the registration fee if it is determined by the

 4  department that the failure to register was due to reasonable

 5  cause and not to willful negligence, willful neglect, or

 6  fraud.

 7         (c)  In addition to the certificate of registration,

 8  the department shall provide to each newly registered dealer

 9  an initial resale certificate that will be valid for the

10  remainder of the period of issuance. The department shall

11  provide each active dealer with an annual resale certificate.

12  For purposes of this section, "active dealer" means a person

13  who is currently registered with the department and who is

14  required to file at least once during each applicable

15  reporting period.

16         (d)  The department may revoke any dealer's certificate

17  of registration when the dealer fails to comply with this

18  chapter. Prior to revocation of a dealer's certificate of

19  registration, the department must schedule an informal

20  conference at which the dealer may present evidence regarding

21  the department's intended revocation or enter into a

22  compliance agreement with the department. The department must

23  notify the dealer of its intended action and the time, place,

24  and date of the scheduled informal conference by written

25  notification sent by United States mail to the dealer's last

26  known address of record furnished by the dealer on a form

27  prescribed by the department. The dealer is required to attend

28  the informal conference and present evidence refuting the

29  department's intended revocation or enter into a compliance

30  agreement with the department which resolves the dealer's

31  failure to comply with this chapter. The department shall

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 1  issue an administrative complaint under s. 120.60 if the

 2  dealer fails to attend the department's informal conference,

 3  fails to enter into a compliance agreement with the department

 4  resolving the dealer's noncompliance with this chapter, or

 5  fails to comply with the executed compliance agreement.

 6         (d)(e)  As used in this paragraph, the term "exhibitor"

 7  means a person who enters into an agreement authorizing the

 8  display of tangible personal property or services at a

 9  convention or a trade show.  The following provisions apply to

10  the registration of exhibitors as dealers under this chapter:

11         1.  An exhibitor whose agreement prohibits the sale of

12  tangible personal property or services subject to the tax

13  imposed in this chapter is not required to register as a

14  dealer.

15         2.  An exhibitor whose agreement provides for the sale

16  at wholesale only of tangible personal property or services

17  subject to the tax imposed in this chapter must obtain a

18  resale certificate from the purchasing dealer but is not

19  required to register as a dealer.

20         3.  An exhibitor whose agreement authorizes the retail

21  sale of tangible personal property or services subject to the

22  tax imposed in this chapter must register as a dealer and

23  collect the tax imposed under this chapter on such sales.

24         4.  Any exhibitor who makes a mail order sale pursuant

25  to s. 212.0596 must register as a dealer.

26  

27  Any person who conducts a convention or a trade show must make

28  their exhibitor's agreements available to the department for

29  inspection and copying.

30         Section 26.  Section 213.0352, Florida Statutes, is

31  created to read:

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 1         213.0352  Information for enforcement of tax laws.--

 2         (1)  As used in this section, the term:

 3         (a)  "Financial institution" means:

 4         1.  A depository institution, as defined in s. 3(c) of

 5  the Federal Deposit Insurance Act, 12 U.S.C. s. 1813(c);

 6         2.  An institution-affiliated party, as defined in s.

 7  3(u) of the Federal Deposit Insurance Act, 12 U.S.C. s.

 8  1813(u);

 9         3.  Any federal credit union or state credit union, as

10  defined in s. 101 of the Federal Credit Union Act, 12 U.S.C.

11  s. 1752, including an institution-affiliated party of such a

12  credit union, as defined in s. 206(r) of the Federal Credit

13  Union Act, 12 U.S.C. s. 1786(r); or

14         4.  Any benefit association, insurance company,

15  safe-deposit company, money-market mutual fund, or similar

16  entity authorized to do business in this state.

17         (b)  "Account" means a demand deposit account, checking

18  or negotiable withdrawal order account, savings account, time

19  deposit account, or money-market mutual fund account.

20         (c)  "Obligor" means any person against whose property

21  the department has issued a warrant or filed a judgment lien

22  certificate.

23         (d)  "Person" means a person as defined in s. 212.02.

24         (2)  The department may request from a financial

25  institution information and assistance to enable the

26  department to enforce the tax laws of the state. The

27  department shall develop procedures to enter into agreements

28  with financial institutions doing business in the state to

29  develop and operate a data match system, using automated data

30  exchanges to the maximum extent feasible, in which each

31  financial institution is required to provide for each calendar

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 1  quarter the name, record address, social security number or

 2  other taxpayer identification number, average daily account

 3  balance, and other identifying information for:

 4         (a)  Each obligor who maintains an account at such

 5  institution, as identified by the department by name and

 6  social security number or other taxpayer identification

 7  number; or

 8         (b)  At the financial institution's option, each person

 9  who maintains an account at such institution.

10  

11  Use of this information shall be limited to the purpose of

12  administering the taxes and fees administered by the

13  department.

14         (3)  The department shall, to the extent possible in

15  compliance with state and federal law, administer this section

16  in conjunction with s. 409.25657 in order to reduce the burden

17  of compliance on financial institutions.

18         (4)  The department shall pay a reasonable fee to a

19  financial institution for conducting the data match provided

20  for in subsection (2), which may not exceed the actual costs

21  incurred by the financial institution.

22         (5)  A financial institution is not liable to any

23  person and is not required to provide notice to its customers:

24         (a)  For the disclosure of any information required

25  under this section;

26         (b)  For encumbering or surrendering any assets held by

27  the financial institution in response to a notice of lien or

28  levy issued by the department;

29         (c)  For disclosing any information in connection with

30  a data match; or

31  

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 1         (d)  For any other action taken in good faith to comply

 2  with the requirements of this section.

 3         (6)  Any financial records obtained under this section

 4  may be disclosed only for the purpose of, and to the extent

 5  necessary in, administering and enforcing the tax laws of this

 6  state.

 7         (7)  The department may institute civil proceedings to

 8  enforce this section.

 9         (8)  The department may adopt rules pursuant to ss.

10  120.536(1) and 120.54 for establishing the procedures and

11  requirements for automated data matches with financial

12  institutions under this section.

13         Section 27.  Paragraph (z) is added to subsection (8)

14  of section 213.053, Florida Statutes, and paragraph (a) of

15  subsection (16) of that section is amended, to read:

16         213.053  Confidentiality and information sharing.--

17         (8)  Notwithstanding any other provision of this

18  section, the department may provide:

19         (z)  Names and taxpayer identification numbers relative

20  to information agreements with financial institutions pursuant

21  to s. 213.0352.

22  

23  Disclosure of information under this subsection shall be

24  pursuant to a written agreement between the executive director

25  and the agency.  Such agencies, governmental or

26  nongovernmental, shall be bound by the same requirements of

27  confidentiality as the Department of Revenue.  Breach of

28  confidentiality is a misdemeanor of the first degree,

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

30         (16)(a)  The department may disclose Confidential

31  taxpayer information may be shared with contained in returns,

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 1  reports, accounts, or declarations filed with the department

 2  by persons subject to any state or local tax to the child

 3  support enforcement program, which may use the information for

 4  purposes of program administration, to assist in the location

 5  of parents who owe or potentially owe a duty of support, as

 6  defined in s. 409.2554, pursuant to Title IV-D of the Social

 7  Security Act, their assets, their income, and their employer,

 8  and with to the Department of Children and Family Services for

 9  the purpose of diligent search activities pursuant to chapter

10  39.

11         Section 28.  Paragraph (d) of subsection (3) of section

12  213.21, Florida Statutes, is amended to read:

13         213.21  Informal conferences; compromises.--

14         (3)

15         (d)  A taxpayer's liability for the service fee

16  required by s. 215.34(2) may be settled or compromised if it

17  is determined that the dishonored check, draft, or order was

18  returned due to an unintentional error committed by the

19  issuing financial institution, the taxpayer, or the department

20  and the unintentional error is substantiated by the

21  department. The department shall maintain records of all

22  compromises, and the records shall state the basis for the

23  compromise.

24         Section 29.  Section 213.32, Florida Statutes, is

25  created to read:

26         213.32  Integrated enforcement authority.--

27         (1)  INTENT.--It is the intent of the Legislature to

28  integrate, to the greatest extent possible, the department's

29  collection and enforcement authority for each tax, fee, or

30  surcharge it administers.

31  

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 1         (2)  INTEGRATED WARRANTS AND JUDGMENT LIEN

 2  CERTIFICATES.--In addition to the authority granted to the

 3  department by law to issue warrants and file judgment lien

 4  certificates regarding any tax, fee, or surcharge it

 5  administers, the department may issue a single warrant and

 6  file a single judgment lien certificate evidencing a

 7  taxpayer's total liability for all taxes, fees, or surcharges

 8  administered by the department. Each integrated warrant and

 9  integrated judgment lien certificate issued or filed must

10  separately identify and itemize the total amount due with

11  regard to each tax, fee, or surcharge, including any related

12  penalty and interest. In order for a taxpayer's liability for

13  any individual tax, fee, or surcharge, including penalties and

14  interest, to be included in an integrated warrant or judgment

15  lien certificate, the department must have the current

16  authority to file a warrant or judgment lien certificate with

17  regard to the taxpayer's liability for that tax, fee, or

18  surcharge.

19         (3)  REVOCATION OF CERTIFICATES OF REGISTRATION,

20  PERMITS, OR LICENSES.--

21         (a)  When a taxpayer is delinquent in the payment of

22  any tax, fee, or surcharge administered by the department, the

23  department may revoke the taxpayer's certificate of

24  registration, permit, or license issued to that taxpayer by

25  the department. For purposes of this subsection, a taxpayer is

26  delinquent only when the department has issued a warrant or

27  filed a judgment lien certificate against such taxpayer's

28  property.

29         (b)  Before revoking one or more of the taxpayer's

30  certificates of registration, permits, or licenses, the

31  department must schedule an informal conference at which the

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 1  taxpayer may present evidence regarding the department's

 2  intended revocation or enter into a compliance agreement with

 3  the department. The department must provide written notice to

 4  the taxpayer at the taxpayer's last known address of its

 5  intended action and the time, place, and date of the scheduled

 6  informal conference. The taxpayer shall attend the informal

 7  conference and present evidence refuting the department's

 8  intended revocation or enter into a compliance agreement with

 9  the department which resolves the dealer's failure to comply

10  with any tax, fee, or surcharge administered by the

11  department. The department shall issue an administrative

12  complaint under chapter 120 if the taxpayer fails to attend

13  the department's informal conference, fails to enter into a

14  compliance agreement with the department resolving the

15  dealer's noncompliance with all taxes administered under this

16  chapter, or fails to comply with the executed compliance

17  agreement.

18         (c)  If one or more of a taxpayer's certificates of

19  registration, permits, or licenses have been revoked, the

20  department may not issue a new certificate of registration,

21  permit, or license to that taxpayer unless:

22         1.  The taxpayer's outstanding liabilities have been

23  satisfied;

24         2.  The taxpayer has entered into a written agreement

25  with the department for payment and is current in all

26  payments; or

27         3.  The department, at its sole discretion, otherwise

28  enters into a written agreement with the taxpayer regarding

29  the liability and, as part of that agreement, agrees to issue

30  a new certificate of registration, permit, or license to the

31  taxpayer.

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 1         (d)  When the department has issued a warrant or filed

 2  a judgment lien certificate in connection with a jeopardy

 3  assessment, the procedures specified in s. 213.732 must be

 4  complied with prior to or in conjunction with those provided

 5  in this subsection.

 6         (4)  ADMINISTRATIVE FREEZE OF A DELINQUENT TAXPAYER'S

 7  ASSETS.--

 8         (a)  As used in this subsection, the term:

 9         1.  "Assets" means any personal property, credits, or

10  debts owned by or owed to a delinquent taxpayer, excluding

11  wages.

12         2.  "Custodian" means any person, as defined by s.

13  212.02, the Federal Government, or any agency or

14  instrumentality of the Federal Government having control or

15  possession of any assets owned by, or owed to, any delinquent

16  taxpayer.

17         3.  "Delinquent taxpayer" means any taxpayer delinquent

18  in the payment of any tax, fee, or surcharge, including

19  penalties and interest, administered by the department and

20  against whose property the department has issued a warrant or

21  filed a judgment lien certificate.

22         (b)  In addition to other remedies granted to the

23  department by law, when any taxpayer is delinquent in the

24  payment of tax, fee, or surcharge administered by the

25  department, including penalties and interest, the department

26  may give notice to all custodians having in their possession

27  or under their control any assets of such delinquent taxpayer

28  at the time the notice is received.

29         (c)  In order to initiate a freeze of a delinquent

30  taxpayer's assets, the department must prepare a notice of

31  freeze that applies to the total assets of the delinquent

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 1  taxpayer or that applies only to a specified dollar amount.

 2  The notice of freeze must be sent by registered mail to all

 3  custodians having in their possession or control any assets of

 4  the delinquent taxpayer.

 5         (d)  The notice of freeze must state the department's

 6  authority to initiate the procedure; specifically identify the

 7  delinquent taxpayer subject to the freeze; specify each tax,

 8  fee, or surcharge for which the taxpayer is delinquent;

 9  specify the amount of each tax, fee, or surcharge, including

10  penalties and interest, owed by the taxpayer; indicate the

11  dates during which the freeze of assets is effective; specify

12  the amount of the taxpayer's assets which must be frozen or

13  withheld by the custodian; and fully describe the custodian's

14  responsibilities pursuant to this subsection.

15         (e)  The notice of freeze must notify the custodian

16  that:

17         1.  The custodian is prohibited from transferring or

18  otherwise disposing of the specified partial amount or the

19  entire amount of the assets of the delinquent taxpayer in its

20  possession or under its control at the time of receipt of the

21  notice of freeze, or any additional assets of the delinquent

22  taxpayer which the custodian subsequently acquires possession

23  or control of during the period prescribed by the notice of

24  freeze, unless consent is given by the department in writing.

25         2.  The notice of freeze is effective as of the date of

26  its receipt, and it remains in effect until the department

27  consents to a transfer or disposition or until 60 days elapse

28  after the receipt of the notice, whichever period expires

29  earlier.

30         3.  If, during the period prescribed by the notice of

31  freeze, a custodian makes any transfer or other disposition of

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 1  the assets required to be frozen or withheld, the custodian

 2  will be liable for any indebtedness owed to the department by

 3  the delinquent taxpayer to the extent of the value of the

 4  property or amounts of the debt transferred or paid, if the

 5  department is unable to recover the indebtedness solely by

 6  reason of the transfer or disposition.

 7         (f)  The notice of freeze must inform the custodian

 8  that each custodian who receives a notice of freeze issued

 9  under this section shall:

10         1.  Inform the department in writing, within 5 days

11  after receipt of the notice, of all such assets of the

12  delinquent taxpayer in its possession, under its control, or

13  owing to it.

14         2.  Inform the department in writing within 5 days

15  after coming into possession or control of any assets of the

16  delinquent taxpayer subsequent to receipt of the notice of

17  freeze and during the time prescribed by the notice.

18         3.  Comply with the statutory prohibition against

19  transferring or disposing of the delinquent taxpayer's assets

20  specified in the notice of freeze and any subsequently

21  possessed or controlled assets.

22         (g)  If the notice of freeze seeks to prevent the

23  transfer or other disposition of a deposit in a bank or other

24  assets under the control of a bank, the notice is effective if

25  delivered to any office of the bank at which the deposit is

26  carried or at which such assets are held.

27         (h)  If, during the period prescribed by the notice of

28  freeze, the delinquent taxpayer satisfies the liability for

29  taxes, fees, or surcharges, including penalties and interest,

30  the department shall issue a notice of release. Upon receipt

31  of the notice of release, the custodian is no longer

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 1  prohibited from transferring, returning, or disposing of any

 2  assets owned, controlled by, or owed to the taxpayer which are

 3  in the custodian's possession or control.

 4         (i)  All assets subject to freeze under this subsection

 5  are also subject to:

 6         1.  Garnishment by the department; and

 7         2.  Levy, seizure, and sale by the department.

 8         (5)  CASH DEPOSIT, SURETY BOND, OR IRREVOCABLE LETTERS

 9  OF CREDIT.--In order to collect the taxes, fees, and

10  surcharges administered by the department and to ensure

11  compliance with the revenue laws of this state, the

12  department, in its sole discretion, may require a taxpayer to

13  provide security as a condition to the taxpayer obtaining,

14  renewing, or retaining any dealer's certificate of

15  registration, permit, or license with the department as

16  provided in this subsection. The authority granted by this

17  subsection is in addition to other authority granted to the

18  executive director and the department by law.

19         (a)  As used in this subsection, the term:

20         1.  "Department" means the executive director of the

21  Department of Revenue or the executive director's designee.

22         2.  "Security" means any cash deposit, surety bonds, or

23  irrevocable letters of credit. Surety bonds must be issued by

24  a surety company authorized to transact business in this state

25  as a surety. Irrevocable letters of credit must be issued by a

26  bank authorized to do business in this state as a bank and

27  shall be engaged as an agreement to honor demands for payment

28  as specified in this subsection.

29         3.  "Taxpayer" means any person, as defined by s.

30  212.02 and, solely for the purposes of determining whether

31  security is required under this subsection and the amount of

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 1  any such security required, the term also includes any related

 2  person.

 3         (b)1.  In determining whether security will be required

 4  and the amount of the security, the department shall consider:

 5         a.  The taxpayer's compliance with state and federal

 6  laws;

 7         b.  The taxpayer's compliance with state and federal

 8  revenue laws;

 9         c.  The taxpayer's financial status and ability to pay;

10  and

11         d.  Any other facts and circumstances affecting

12  compliance with the revenue laws of this state.

13         2.  The security shall be in the amount required by the

14  department. The amount of security required by the department

15  may not exceed a taxpayer's estimated liability, as determined

16  by the department, for all taxes, fees, and surcharges,

17  including penalties and interest, administered by the

18  department for 12 consecutive months, plus any unpaid

19  delinquencies of the taxpayer.

20         3.  If the department determines that security is

21  required, it shall provide written notice of such

22  determination to the taxpayer at the taxpayer's last known

23  address as it appears in the department's records. The

24  taxpayer must post the required security or send a written

25  objection to the department within 30 days after the date on

26  the department's notice, failing which the department shall

27  refuse the issuance or renewal of any dealer's certificate of

28  registration, permit, or license with the department, or

29  initiate revocation proceedings to revoke any existing

30  registrations, permits, or licenses.

31  

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 1         4.  If the department determines that the amount of any

 2  existing security is insufficient to ensure payment of the

 3  amount of the taxes, fees, and surcharges, including penalties

 4  and interest, for which the taxpayer is or may at any time

 5  become liable, or if the amount of the security is reduced or

 6  released, whether by judgment rendered or by use of the

 7  security to pay the delinquent taxes, penalty, or interest,

 8  the department shall provide written notification to the

 9  taxpayer of the revised amount of security required. The

10  taxpayer shall file additional security in the amount required

11  or provide a written objection within 30 days, failing which

12  the department shall refuse the issuance or renewal of any

13  taxpayer's certificate of registration, permit, or license

14  with the department, or initiate revocation proceedings to

15  revoke any existing registrations, permits, or licenses. If a

16  new security is furnished, the department shall cancel,

17  surrender, or discharge the previous security as appropriate,

18  for which such new security is substituted.

19         5.  When a taxpayer that has provided security is

20  delinquent more than 30 days in the payment of any tax, fee,

21  or surcharge administered by the department, the department

22  may, upon 10 days' written notice provided to the last known

23  address of the taxpayer as it appears in the department's

24  records, apply the security in whole or in part to the amount

25  that the taxpayer should have collected and remitted or paid.

26         6.  The duration of any security required under this

27  subsection may not be less than 12 months. If a taxpayer files

28  all returns and pays all tax to the state within the time

29  required by law for a period of 12 consecutive months, the

30  department shall, upon written request by the taxpayer,

31  release or refund the security. If the taxpayer ceases

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 1  operations during the time the security is being held by the

 2  department, the taxpayer must submit a written request to the

 3  department within 90 days after ceasing operations for the

 4  return of the deposit or release of the surety bond or letter

 5  of credit. The department shall offset any reimbursement of

 6  security under this subsection against any outstanding

 7  liability of the taxpayer.

 8         (c)  Any taxpayer failing to post security as provided

 9  in this subsection is not entitled to obtain, renew, or retain

10  any certificate of registration, permit, or license issued by

11  the department. At the request of the department, the

12  Department of Legal Affairs may proceed by injunction to

13  prevent any activity in the performance of further business

14  activity subject to registration, permitting, or licensing by

15  the department until such security is posted with the

16  department. A temporary injunction for this purpose may be

17  granted by any judge or chancellor authorized by law to grant

18  injunctions.

19         (d)  Any security required under this subsection may be

20  sold by the department to recover any taxes, fees, or

21  surcharges due, including penalties and interest. Notice of

22  such sale may be served personally or by mail upon the

23  taxpayer who deposited such security. If by mail, notice sent

24  to the last known address as the same appears on the records

25  of the department is sufficient for the purpose of this

26  requirement. Upon such sale, the surplus, if any, above the

27  amount due under this chapter shall be returned to the

28  taxpayer who deposited the security.

29         (6)  GARNISHMENT.--Garnishment shall be conducted for

30  all taxes administered by the department under s. 213.67.

31  

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 1         (7)  TRANSFER OF LIABILITY.--The liability for any tax,

 2  fee, or surcharge, including penalties and interest, may be

 3  transferred to responsible corporate officers as provided in

 4  s. 213.29.

 5         (8)  JEOPARDY ASSESSMENTS.--If there is jeopardy to the

 6  revenue and jeopardy is asserted in or with an assessment, the

 7  department shall proceed in the manner specified for jeopardy

 8  assessments in s. 213.732.

 9         (9)  RULES.--The department may adopt rules pursuant to

10  ss. 120.536(1) and 120.54 to administer this section.

11         Section 30.  Effective January 1, 2008, subsection (1)

12  of section 213.755, Florida Statutes, is amended to read:

13         213.755  Filing of returns and payment of taxes by

14  electronic means.--

15         (1)  The executive director of the Department of

16  Revenue shall have authority to require a taxpayer to file

17  returns and remit payments by electronic means where the

18  taxpayer is subject to tax and has paid that tax in the prior

19  state fiscal year in an amount of $20,000 $30,000 or more;

20  $10,000 or more, effective January 1, 2009; and $5,000 or

21  more, effective January 1, 2010. Any taxpayer who operates two

22  or more places of business for which returns are required to

23  be filed with the department shall combine the tax payments

24  for all such locations in order to determine whether they are

25  obligated under this section. This subsection does not

26  override additional requirements in any provision of a revenue

27  law which the department has the responsibility for

28  regulating, controlling, and administering.

29         Section 31.  Subsection (2) of section 220.21, Florida

30  Statutes, is amended, and subsection (3) is added to that

31  section, to read:

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 1         220.21  Returns and records; regulations.--

 2         (2)  A taxpayer who is required to file its federal

 3  income tax return by electronic means on a separate or

 4  consolidated basis shall file returns required by this chapter

 5  by electronic means. For the reasons described in s.

 6  213.755(9), the department may waive the requirement to file a

 7  return by electronic means for taxpayers that are unable to

 8  comply despite good faith efforts or due to circumstances

 9  beyond the taxpayer's reasonable control. The provisions of

10  this subsection are in addition to the requirements of s.

11  213.755 to electronically file returns and remit payments

12  required under this chapter. A taxpayer may choose to file a

13  return required by this code in a form initiated through a

14  telephonic or electronic data interchange using an advanced

15  encrypted transmission by means of the Internet or other

16  suitable transmission. The department may shall prescribe by

17  rule the format and instructions necessary for electronic such

18  filing to ensure a full collection of taxes due. In addition

19  to the authority granted under s. 213.755, the acceptable

20  method of transfer, the method, form, and content of the

21  electronic data interchange, and the means, if any, by which

22  the taxpayer will be provided with an acknowledgment may shall

23  be prescribed by the department. In the case of any failure to

24  comply with the electronic-filing requirements of this

25  subsection there shall be added as a penalty to the amount of

26  tax due with such return the greater of 10 percent of the

27  amount of such tax or $250. The department may settle or

28  compromise the penalty pursuant to s. 213.21. This penalty is

29  in addition to any other penalty that may be applicable and

30  shall be assessed, collected, and paid in the same manner as

31  taxes.

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 1         (3)  In addition to its authority under s. 213.755, the

 2  department may adopt rules requiring or allowing taxpayers to

 3  use an electronic-filing system to file returns required by

 4  subsection (2), including any electronic systems developed by

 5  the Internal Revenue Service.

 6         Section 32.  The amendments made by this act to s.

 7  220.21(2), Florida Statutes, apply to returns due on or after

 8  January 1, 2008.

 9         Section 33.  Section 220.802, Florida Statutes, is

10  created to read:

11         220.802  Accuracy-related penalties.--

12         (1)  IMPOSITION OF PENALTY.--If this section applies to

13  any portion of an underpayment of tax required to be shown on

14  a return under this chapter or chapter 221, there shall be

15  added to the tax an amount equal to 20 percent of the portion

16  of the underpayment to which this section applies.

17         (2)  PORTION OF UNDERPAYMENT TO WHICH THIS SECTION

18  APPLIES.--

19         (a)  This section applies to the portion of any

20  underpayment due under this chapter or chapter 221 which is

21  attributable to one or more of the following:

22         1.  Negligence or disregard of statutes or rules.

23         2.  Any substantial understatement of tax.

24         (b)  This section does not apply to any portion of an

25  underpayment which is due to fraud and on which the penalty

26  for fraud is imposed and sustained. For purposes of this

27  section, the amount shown as tax by the taxpayer upon a return

28  shall be taken into account in determining the amount of the

29  deficiency only if such return was filed on or before the last

30  day prescribed by law for the filing of such return, including

31  any extensions of time for such filing.

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 1         1.  As used in this section, the term "negligence"

 2  includes any failure to make a reasonable attempt to comply

 3  with the provisions of this chapter or chapter 221, and the

 4  rules adopted thereunder, or to exercise ordinary and

 5  reasonable care in preparing a tax return. The term also

 6  includes any failure by the taxpayer to keep adequate books

 7  and records or to substantiate items properly. A position with

 8  respect to an item is attributable to negligence if it lacks a

 9  reasonable basis.

10         2.  As used in this section, the term "disregard"

11  includes any careless, reckless, or intentional disregard of

12  statutes or rules adopted under this chapter or chapter 221. A

13  disregard of statutes or rules is "careless" if the taxpayer

14  or the taxpayer's representative does not exercise reasonable

15  diligence to determine the correctness of a return position

16  that is contrary to a statute or rule and does not adequately

17  disclose that return position on the return. A disregard is

18  "reckless" if the taxpayer or the taxpayer's representative

19  makes little or no effort to determine if a statute or rule

20  exists under circumstances that demonstrate a substantial

21  deviation from the standard of conduct that a reasonable

22  person would observe. A disregard is "intentional" if the

23  taxpayer or the taxpayer's representative knows or should know

24  of the statute or rule that is disregarded. Nevertheless, a

25  taxpayer or representative who takes a position contrary to a

26  ruling, as opposed to a statute or rule, has not disregarded

27  the ruling if the contrary position has a realistic

28  possibility of being sustained on its merits and the

29  taxpayer's position is adequately disclosed. The penalty for

30  disregarding statutes or rules does not apply if the taxpayer

31  has adequately disclosed the position that is the basis for

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 1  the penalty and there is a reasonable basis for the position

 2  of the taxpayer or to the extent that the taxpayer acted in

 3  good faith and had reasonable cause. The reasonable-cause

 4  provisions of s. 213.21 do not apply to this section and

 5  reasonable cause shall be interpreted in the same manner as

 6  under ss. 6662 and 6664 of the Internal Revenue Code and the

 7  regulations thereunder.

 8         (3)  SUBSTANTIAL UNDERSTATEMENT OF TAX.--

 9         (a)  For purposes of this section, there is a

10  substantial understatement of tax for any taxable year if the

11  amount of the understatement for the taxable year exceeds the

12  greater of:

13         1.  Ten percent of the tax required to be shown on the

14  return for the taxable year; or

15         2.  Ten thousand dollars.

16         (b)  For purposes of this section, the term

17  "understatement" means the excess of the amount of tax

18  required to be shown on the return for the taxable year, over

19  the amount of tax imposed which is shown on the return.

20         (c)  The amount of the understatement under paragraph

21  (b) shall be reduced by that portion of the understatement

22  which is attributable to any item if the relevant facts

23  affecting the item's tax treatment are adequately disclosed in

24  the return or in a statement attached to the return and there

25  is a reasonable basis for the tax treatment of such item by

26  the taxpayer.

27         (4)  DISCLOSURE.--A penalty for negligence or disregard

28  of statutes or rules may not be imposed on any portion of an

29  underpayment which is attributable to a ruling provided to the

30  taxpayer by the department under s. 213.22 if the position is

31  adequately disclosed in accordance with this section and, in

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 1  the case of a position contrary to a statute or rule, the

 2  position represents a good faith challenge to the validity of

 3  the statute or rule. However, an exception under this section

 4  does not apply in the case of a position that does not have a

 5  reasonable basis or if the taxpayer fails to keep or furnish

 6  adequate books and records or fails to substantiate items

 7  properly. Disclosure is adequate for purposes of this section

 8  if it is made in accordance with rules adopted by the

 9  department and if it is made on a properly completed form as

10  prescribed by the department. If such a form is not

11  prescribed, disclosure is adequate if it is made on a properly

12  completed Internal Revenue Service Form 8275 or Form 8275-R.

13  In addition, the statute, rule, or ruling provision must be

14  adequately identified on the separate form, as appropriate.

15         (5)  CARRYFORWARDS.--The penalty for negligence or

16  disregard of statutes or rules applies to any portion of a

17  deficiency for the year to which the loss, deduction, or

18  credit is carried, which portion is attributable to negligence

19  or disregard of statutes or rules in the year in which the

20  carryforward of the loss, deduction, or credit is applied.

21         (6)  RULES.--The Department of Revenue may adopt rules

22  to administer this section, including rules establishing forms

23  and procedures, as well as methods of disclosure.

24         Section 34.  Section 32 of this act applies to tax

25  years ending after December 31, 2007.

26         Section 35.  Effective January 1, 2008, and applicable

27  to tax years ending after December 31, 2007, section 220.803,

28  Florida Statutes, is amended to read:

29         220.803  Penalties; failure to pay tax.--

30         (1)  If any part of a deficiency is due to negligence

31  or intentional disregard of rules and regulations prescribed

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 1  by or under this chapter, but without intent to defraud, there

 2  shall be added to the tax as a penalty an amount equal to 10

 3  percent of the deficiency.

 4         (1)(2)  If any part of a deficiency is due to fraud,

 5  there shall be added to the tax as a penalty, in lieu of the

 6  penalty under s. 220.802 subsection (1), an amount equal to

 7  100 percent of the deficiency.

 8         (2)(3)  For purposes of this section, the amount shown

 9  as tax by the taxpayer upon a return shall be taken into

10  account in determining the amount of the deficiency only if

11  such return was filed on or before the last day prescribed by

12  law for the filing of such return, including any extensions of

13  the time for such filing.

14         Section 36.  Paragraph (d) of subsection (1) of section

15  443.1216, Florida Statutes, is amended to read:

16         443.1216  Employment.--Employment, as defined in s.

17  443.036, is subject to this chapter under the following

18  conditions:

19         (1)

20         (d)  If two or more related corporations concurrently

21  employ the same individual and compensate the individual

22  through a common paymaster, each related corporation is

23  considered to have paid wages to the individual only in the

24  amounts actually disbursed by that corporation to the

25  individual and is not considered to have paid the wages

26  actually disbursed to the individual by another of the related

27  corporations. The Agency for Workforce Innovation and the

28  state agency providing unemployment tax collection services

29  may adopt rules necessary to administer this paragraph.

30         1.  As used in this paragraph, the term "common

31  paymaster" means a member of a group of related corporations

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 1  that disburses wages to concurrent employees on behalf of the

 2  related corporations and that is responsible for keeping

 3  payroll records for those concurrent employees. A common

 4  paymaster is not required to disburse wages to all the

 5  employees of the related corporations; however, this

 6  subparagraph does not apply to wages of concurrent employees

 7  which are not disbursed through a common paymaster. A common

 8  paymaster must pay concurrently employed individuals under

 9  this subparagraph by one combined paycheck.

10         2.  As used in this paragraph, the term "concurrent

11  employment" means the existence of simultaneous employment

12  relationships between an individual and related corporations.

13  Those relationships require the performance of services by the

14  employee for the benefit of the related corporations,

15  including the common paymaster, in exchange for wages that, if

16  deductible for the purposes of federal income tax, are

17  deductible by the related corporations.

18         3.  Corporations are considered related corporations

19  for an entire calendar quarter if they satisfy any one of the

20  following tests at any time during the calendar quarter:

21         a.  The corporations are members of a "controlled group

22  of corporations" as defined in s. 1563 of the Internal Revenue

23  Code of 1986 or would be members if paragraph 1563(a)(4) and

24  subsection 1563(b) did not apply.

25         b.  In the case of a corporation that does not issue

26  stock, at least 50 percent of the members of the board of

27  directors or other governing body of one corporation are

28  members of the board of directors or other governing body of

29  the other corporation or the holders of at least 50 percent of

30  the voting power to select those members are concurrently the

31  

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 1  holders of at least 50 percent of the voting power to select

 2  those members of the other corporation.

 3         c.  At least 50 percent of the officers of one

 4  corporation are concurrently officers of the other

 5  corporation.

 6         d.  At least 30 percent of the employees of one

 7  corporation are concurrently employees of the other

 8  corporation.

 9         4.  The common paymaster must report to the tax

10  collection service provider, as part of the unemployment

11  compensation quarterly tax and wage report, the state

12  unemployment compensation account number and name of each

13  related corporation for which concurrent employees are being

14  reported. Failure to timely report this information shall

15  result in the related corporations being denied common

16  paymaster status for that calendar quarter.

17         5.  The common paymaster also has the primary

18  responsibility for remitting contributions due under this

19  chapter for the wages it disburses as the common paymaster.

20  The common paymaster must compute these contributions as

21  though it were the sole employer of the concurrently employed

22  individuals. If a common paymaster fails to timely remit these

23  contributions or reports, in whole or in part, the common

24  paymaster remains liable for the full amount of the unpaid

25  portion of these contributions. In addition, each of the other

26  related corporations using the common paymaster is jointly and

27  severally liable for its appropriate share of these

28  contributions. Each related corporation's share equals the

29  greater of:

30         a.  The liability of the common paymaster under this

31  chapter, after taking into account any contributions made.

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 1         b.  The liability under this chapter which,

 2  notwithstanding this section, would have existed for the wages

 3  from the other related corporations, reduced by an allocable

 4  portion of any contributions previously paid by the common

 5  paymaster for those wages.

 6         Section 37.  Subsection (2) of section 443.1316,

 7  Florida Statutes, is amended to read:

 8         443.1316  Unemployment tax collection services;

 9  interagency agreement.--

10         (2)(a)  The Department of Revenue is considered to be

11  administering a revenue law of this state when the department

12  implements this chapter, or otherwise provides unemployment

13  tax collection services, under contract with the Agency for

14  Workforce Innovation through the interagency agreement.

15         (b)  Sections 213.015(1),(2),(3),(5),(6),(7),(9)-(21),

16  213.018, 213.025, 213.051, 213.053, 213.0535, 213.055, 213.06,

17  213.071, 213.10, 213.21(4), 213.2201, 213.23, 213.24, 213.25,

18  213.24(2), 213.27, 213.28, 213.285, 213.32, 213.34(1),(3), and

19  (4), 213.37, 213.50, 213.67, 213.69, 213.73, 213.733, 213.74,

20  and 213.757 apply to the collection of unemployment

21  contributions and reimbursements by the Department of Revenue

22  unless prohibited by federal law.

23         (c)  The Department of Revenue may charge no more than

24  10 percent of the total cost of the interagency agreement for

25  the overhead or indirect costs, or for any other costs not

26  required for the payment of the direct costs, of providing

27  unemployment tax collection services.

28         Section 38.  Subsection (1) of section 443.141, Florida

29  Statutes, is amended to read:

30         443.141  Collection of contributions and

31  reimbursements.--

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 1         (1)  PAST DUE CONTRIBUTIONS; ERRONEOUS, INCOMPLETE, OR

 2  INSUFFICIENT REPORTS; AND REIMBURSEMENTS.--

 3         (a)  Interest.--Contributions or reimbursements unpaid

 4  on the date due shall bear interest at the rate of 1 percent

 5  per month from and after that date until payment plus accrued

 6  interest is received by the tax collection service provider,

 7  unless the service provider finds that the employing unit has

 8  or had good reason for failure to pay the contributions or

 9  reimbursements when due. Interest collected under this

10  subsection must be paid into the Special Employment Security

11  Administration Trust Fund.

12         (b)  Penalty for delinquent reports.--

13         1.  An employing unit that fails to file any report

14  required by the Agency for Workforce Innovation or its tax

15  collection service provider, in accordance with rules for

16  administering this chapter, shall pay to the tax collection

17  service provider for each delinquent report the sum of $25 for

18  each 30 days or fraction thereof that the employing unit is

19  delinquent, unless the agency or its service provider,

20  whichever required the report, finds that the employing unit

21  has or had good reason for failure to file the report. The

22  agency or its service provider may assess penalties only

23  through the date of the issuance of the final assessment

24  notice. However, additional penalties accrue if the delinquent

25  report is subsequently filed.

26         2.  Sums collected as penalties under subparagraph 1.

27  must be deposited in the Special Employment Security

28  Administration Trust Fund.

29         3.  The penalty and interest for a delinquent report

30  may be waived when the penalty or interest is inequitable.

31  

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 1         (c)  Penalty for erroneous, incomplete, or insufficient

 2  reports.--

 3         1.  In the case where an erroneous, incomplete, or

 4  insufficient tax or wage report is made, a penalty in the

 5  amount of $50 or 10 percent of the tax finally determined to

 6  be due, whichever is greater, shall be added to the amount of

 7  tax, penalty, and interest otherwise due. Penalties collected

 8  under this subparagraph shall be paid into the Special

 9  Employment Security Administration Trust Fund.

10         2.  As used in this chapter, the phrase "erroneous,

11  incomplete, or insufficient tax or wage report" means a report

12  that is lacking uniformity, completeness, or arrangement and

13  that the physical handling, verification, or review of the

14  report may not be readily accomplished. The phrase includes,

15  but is not limited to, missing wage items, an illegible wage

16  report, a wage report that is not in a format approved by the

17  service provider, a report that does not contain all required

18  social security numbers, a report that contains erroneous

19  social security numbers, a report that omits the last name of

20  one or more employees, or a report in which the gross wages do

21  not equal the total of the individuals' wages.

22         (d)(c)  Application of partial payments.--When a

23  delinquency exists in the employment record of an employer not

24  in bankruptcy, a partial payment less than the total

25  delinquency shall be applied to the employment record as the

26  payor directs. In the absence of specific direction, the

27  partial payment shall be applied to the payor's employment

28  record as prescribed in the rules of the Agency for Workforce

29  Innovation or the state agency providing tax collection

30  services.

31  

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 1         Section 39.  Effective January 1, 2008, subsection (1)

 2  of section 443.163, Florida Statutes, is amended to read:

 3         443.163  Electronic reporting and remitting of

 4  contributions and reimbursements.--

 5         (1)  An employer may file any report and remit any

 6  contributions or reimbursements required under this chapter by

 7  electronic means. The Agency for Workforce Innovation or the

 8  state agency providing unemployment tax collection services

 9  shall adopt rules prescribing the format and instructions

10  necessary for electronically filing reports and remitting

11  contributions and reimbursements to ensure a full collection

12  of contributions and reimbursements due. The acceptable method

13  of transfer, the method, form, and content of the electronic

14  means, and the method, if any, by which the employer will be

15  provided with an acknowledgment shall be prescribed by the

16  Agency for Workforce Innovation or its tax collection service

17  provider. However, any employer who employed 10 or more

18  employees in any quarter during the preceding state fiscal

19  year must file the Employers Quarterly Reports (UCT-6) for the

20  current calendar year and remit the contributions and

21  reimbursements due by electronic means approved by the tax

22  collection service provider. A person who prepared and

23  reported for 10 100 or more employers in any quarter during

24  the preceding state fiscal year must file the Employers

25  Quarterly Reports (UCT-6) for each calendar quarter in the

26  current calendar year, beginning with reports due for the

27  second calendar quarter of 2003, by electronic means approved

28  by the tax collection service provider.

29         Section 40.  Subsection (3) is added to section

30  624.511, Florida Statutes, to read:

31         624.511  Tax statement; overpayments.--

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 1         (3)(a)  If it appears, upon examination of an insurance

 2  premium tax return made under this chapter, that an amount of

 3  insurance premium tax has been paid in excess of the amount

 4  due, the Department of Revenue may refund the amount of the

 5  overpayment to the taxpayer by a warrant of the Chief

 6  Financial Officer. The Department of Revenue may refund the

 7  overpayment without regard to whether the taxpayer has filed a

 8  written claim for a refund; however, the Department of Revenue

 9  may request that the taxpayer file a statement affirming that

10  the taxpayer made the overpayment.

11         (b)  Notwithstanding paragraph (a), a refund of the

12  insurance premium tax may not be made, and a taxpayer is not

13  entitled to bring an action for a refund of the insurance

14  premium tax, after the period specified in s. 215.26(2) has

15  elapsed.

16         (c)  If a refund issued by the Department of Revenue

17  under this subsection is found to exceed the amount of refund

18  legally due to the taxpayer, the provisions of s. 624.5092

19  concerning penalties and interest do not apply if the taxpayer

20  reimburses the department for any overpayment within 60 days

21  after the taxpayer is notified that the overpayment was made.

22         Section 41.  Subsections (4) and (5) are added to

23  section 832.062, Florida Statutes, to read:

24         832.062  Prosecution for worthless checks, drafts,

25  debit card orders, or electronic funds transfers made to pay

26  any tax or associated amount administered by the Department of

27  Revenue.--

28         (4)(a)  In any prosecution or action under this

29  section, the making, drawing, uttering, or delivery of a

30  check, draft, order; the making, sending, instructing,

31  ordering, or initiating of any electronic funds transfer; or

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 1  causing the making, sending, instructing, ordering, or

 2  initiating of any electronic transfer payment, any of which

 3  are refused by the drawee because of lack of funds or credit,

 4  is prima facie evidence of intent to defraud or knowledge of

 5  insufficient funds in, or credit with, such bank, banking

 6  institution, trust company, or other depository, unless the

 7  maker, drawer, sender, instructor, orderer, or initiator, or

 8  someone for him or her, has paid the holder thereof the amount

 9  due thereon, together with a service charge, which may not

10  exceed the service fees authorized under s. 832.08(5), or an

11  amount of up to 5 percent of the face amount of the check or

12  the amount of the electronic funds transfer, whichever is

13  greater, within 15 days after written notice has been sent to

14  the address printed on the check, or given or on file at the

15  time of issuance, that such check, draft, order, or electronic

16  funds transfer has not been paid to the holder thereof, and

17  has paid the bank fees incurred by the holder. In the event of

18  legal action for recovery, the maker, drawer, sender,

19  instructor, orderer, or initiator may be additionally liable

20  for court costs and reasonable attorney's fees. Notice mailed

21  by certified or registered mail that is evidenced by return

22  receipt, or by first-class mail that is evidenced by an

23  affidavit of service of mail, to the address printed on the

24  check or given or on file at the time of issuance shall be

25  deemed sufficient and equivalent to notice having been

26  received by the maker, drawer, sender, instructor, orderer, or

27  initiator, whether such notice is returned undelivered or not.

28  The form of the notice shall be substantially as follows:

29  

30         "You are hereby notified that a check or

31         electronic funds transfer, numbered _____, in

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 1         the face amount of $_____, issued or initiated

 2         by you on (date) , drawn upon  (name of bank) ,

 3         and payable to _____, has been dishonored.

 4         Pursuant to Florida law, you have 15 days

 5         following the date of this notice to tender

 6         payment of the full amount of such check or

 7         electronic funds transfer plus a service charge

 8         of $25, if the face value does not exceed $50;

 9         $30, if the face value exceeds $50 but does not

10         exceed $300; $40, if the face value exceeds

11         $300; or an amount of up to 5 percent of the

12         face amount of the check, whichever is greater,

13         the total amount due being $_____ and _____

14         cents. Unless this amount is paid in full

15         within the time specified above, the holder of

16         such check or electronic funds transfer may

17         turn over the dishonored check or electronic

18         funds transfer and all other available

19         information relating to this incident to the

20         state attorney for criminal prosecution. You

21         may be additionally liable in a civil action

22         for triple the amount of the check or

23         electronic funds transfer, but in no case less

24         than $50, together with the amount of the check

25         or electronic funds transfer, a service charge,

26         court costs, reasonable attorney's fees, and

27         incurred bank fees, as provided in s. 68.065,

28         Florida Statutes."

29  

30  Subsequent persons receiving a check, draft, order, or

31  electronic funds transfer from the original payee or a

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 1  successor endorsee have the same rights that the original

 2  payee has against the maker of the instrument if the

 3  subsequent persons give notice in a substantially similar form

 4  to that provided above. Subsequent persons providing such

 5  notice are immune from civil liability for the giving of such

 6  notice and for proceeding under the forms of such notice so

 7  long as the maker of the instrument has the same defenses

 8  against these subsequent persons as against the original

 9  payee. However, the remedies available under this section may

10  be exercised only by one party in interest.

11         (b)  When a check, draft, order, or electronic funds

12  transfer is drawn on a bank in which the maker, drawer,

13  sender, instructor, orderer, or initiator has no account or a

14  closed account, it shall be presumed that the check, draft, or

15  order was issued, or the electronic funds transfer was

16  initiated, with intent to defraud, and the notice requirement

17  set forth in this section shall be waived.

18         (5)(a)  In any prosecution or action under this

19  section, a check, draft, order, or electronic funds transfer

20  for which the information required in paragraph (b) is

21  available at the time of issuance constitutes prima facie

22  evidence of the identity of the person issuing the check,

23  draft, order, or electronic funds transfer and that such

24  person is authorized to draw upon the named account.

25         (b)  To establish this prima facie evidence:

26         1.  If a check or electronic funds transfer is received

27  by the Department of Revenue through the mail or by delivery

28  to a representative of the Department of Revenue or by

29  electronic means, the prima facie evidence referred to in

30  paragraph (a) may be established by presenting the original

31  tax return, certificate, license, application for certificate

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 1  or license, enrollment and authorization for the e-services

 2  program, or other document relating to amounts owed by that

 3  person or taxpayer which the check or electronic funds

 4  transfer purports to pay for, bearing the signature of the

 5  person who signed the check or electronic signature of the

 6  person who initiated the electronic funds transfer, or by

 7  presenting a copy of the information required in subparagraph

 8  2. which is on file with the accepter of the check or

 9  electronic funds transfer together with the signature or

10  electronic signature of the person presenting the check or

11  initiating the electronic funds transfer. The use of taxpayer

12  information for purposes of establishing the identity of a

13  person under this paragraph shall be deemed a use of such

14  information for official purposes.

15         2.  The person accepting such check or electronic funds

16  transfer must obtain the following information regarding the

17  identity of the person presenting the check: the presenter's

18  or initiator's full name, residence address, home telephone

19  number, business telephone number, place of employment,

20  gender, date of birth, and height.

21         Section 42.  Except as otherwise expressly provided in

22  this act, this act shall take effect July 1, 2007.

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Revises various provisions governing the collection and
      enforcement of the tax laws by the Department of Revenue.
 4    Authorizes the department to issue temporary fuel
      licenses and temporary pollutant tax licenses during a
 5    declared state of emergency or disaster. Revises the
      requirements for calculating the sales tax on vending
 6    machines. Authorizes the department to transfer tax
      liability to certain additional entities upon the
 7    transfer of assets. Authorizes the department to enter
      into agreements with financial institutions to operate a
 8    data match system for collecting tax warrants. Provides
      for the integration of the department's enforcement
 9    authority. Provides for the department to freeze the
      assets of a delinquent taxpayer. Revises the requirements
10    for electronically remitting taxes and unemployment
      contributions and reimbursements. Provides for
11    establishing prima facie evidence of intent to defraud
      with respect to an electronic funds transfer that lacks
12    sufficient funds. (See bill for details.)

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