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A bill to be entitled

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An act relating to taxes on motor fuel; amending s.

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206.41, F.S.; authorizing counties to adopt an ordinance

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adjusting the rate of the ninth-cent fuel tax or the local

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option fuel tax based on the percentage change in the

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Consumer Price Index; providing requirements for imposing

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the rate change; requiring that the county furnish a copy

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of the ordinance to the Department of Revenue; requiring

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the department to notify specified entities that engage in

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the transfer of motor fuel of the change in the tax rate;

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reenacting ss. 206.414, 206.43(1)(b) and (6)(a) and (c),

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206.47(5)(b), 206.8745(4), 206.9825(1)(a), 336.021(1)(a),

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and 336.025(1)(a) and (b) and (2)(a), F.S., relating to

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the collection of taxes, the distribution of the fuel tax,

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credit against taxes due, aviation fuel taxes, the use of

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tax revenues, and the levy of local option fuel taxes, to

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incorporate the amendment to s. 206.41, F.S., in

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references thereto; providing an effective date.

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

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     Section 1.  Paragraphs (d) and (e) of subsection (1) of

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section 206.41, Florida Statutes, are amended, and paragraph (f)

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of subsection (1) and paragraphs (b) and (c) of subsection (4) of

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that section are reenacted, to read:

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     206.41  State taxes imposed on motor fuel.--

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     (1)  The following taxes are imposed on motor fuel under the

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circumstances described in subsection (6):

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     (d)1. An additional tax of 1 cent per net gallon may be

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imposed by each county on motor fuel, which shall be designated

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as the "ninth-cent fuel tax."  This tax shall be levied and used

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as provided in s. 336.021.

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     2. Beginning January 1, 2009, and on January 1 of each year

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thereafter, a county may, by ordinance, provide that the tax rate

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set forth in subparagraph 1. be adjusted by the percentage change

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in the average of the Consumer Price Index issued by the United

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States Department of Labor for the most recent 12-month period

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ending September 30, compared to the average for the base year,

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which is the 12-month period ending September 30, 2006, and

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rounded to the nearest tenth of a cent.

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     3. Each imposition or rate change of the tax must be levied

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before July 1 in order to be effective January 1 of the following

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year.

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     4. Within 10 days after adopting an ordinance authorizing

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the indexing of the tax, the county shall furnish a certified

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copy of the ordinance to the Department of Revenue.

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     5. The department shall notify each terminal supplier,

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position holder, wholesaler, and importer of the tax rate that is

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applicable under this paragraph for the 12-month period beginning

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January 1.

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     (e)1. An additional tax of between 1 cent and 11 cents per

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net gallon may be imposed on motor fuel by each county, which

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shall be designated as the "local option fuel tax."  This tax

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shall be levied and used as provided in s. 336.025.

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     2. Beginning January 1, 2009, and on January 1 of each year

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thereafter, a county may, by ordinance, provide that the tax rate

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set forth in subparagraph 1. be adjusted by the percentage change

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in the average of the Consumer Price Index issued by the United

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States Department of Labor for the most recent 12-month period

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ending September 30, compared to the average for the base year,

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which is the 12-month period ending September 30, 2006, and

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rounded to the nearest tenth of a cent.

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     3. Each imposition or rate change of the tax must be levied

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before July 1 in order to be effective January 1 of the following

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year.

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     4. Within 10 days after adopting an ordinance authorizing

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the indexing of the tax, the county shall furnish a certified

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copy of the ordinance to the Department of Revenue.

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     5. The department shall notify each terminal supplier,

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position holder, wholesaler, and importer of the tax rate that is

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applicable under this paragraph for the 12-month period beginning

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January 1.

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

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Comprehensive Enhanced Transportation System Tax is imposed on

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

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levied and used as provided in s. 206.608.

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

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two-thirds of the lesser of the sum of the taxes imposed on motor

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fuel pursuant to paragraphs (d) and (e) in such county or 6

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cents, rounded to the nearest tenth of a cent.

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

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thereafter, the tax rate provided in subparagraph 2. shall be

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adjusted by the percentage change in the average of the Consumer

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Price Index issued by the United States Department of Labor for

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the most recent 12-month period ending September 30, compared to

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

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period ending September 30, 1990, and rounded to the nearest

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tenth of a cent.

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     4.  The department shall notify each terminal supplier,

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position holder, wholesaler, and importer of the tax rate

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applicable under this paragraph for the 12-month period beginning

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January 1.

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     (4)

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     (b)  Any person who uses motor fuel on which the taxes

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imposed by paragraph (1)(e), paragraph (1)(f), or paragraph

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(1)(g) have been paid for any system of mass public

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transportation authorized to operate within any city, town,

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municipality, county, or transit authority region in this state,

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as distinguished from any over-the-road or charter system of

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public transportation, is entitled to a refund of such taxes.

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However, such transit system shall be entitled to take a credit

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on the monthly diesel fuel tax return not to exceed the tax

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imposed under said paragraphs on those gallons which would

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otherwise be eligible for refund, when such transit system is

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licensed as a mass transit system. A public transportation system

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or transit system as defined in this paragraph may operate

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outside its limits when such operation is found necessary to

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adequately and efficiently provide mass public transportation

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services for the city, town, or municipality involved. A transit

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system as defined in this paragraph includes demand service that

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is an integral part of a city, town, municipality, county, or

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transit or transportation authority system but does not include

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independent taxicab or limousine operations. The terms "city,"

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"county," and "authority" as used in this paragraph include any

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city, town, municipality, county, or transit or transportation

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authority organized in this state by virtue of any general or

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special law enacted by the Legislature.

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     (c)1.  Any person who uses any motor fuel for agricultural,

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aquacultural, commercial fishing, or commercial aviation purposes

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on which fuel the tax imposed by paragraph (1)(e), paragraph

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(1)(f), or paragraph (1)(g) has been paid is entitled to a refund

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of such tax.

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     2.  For the purposes of this paragraph, "agricultural and

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aquacultural purposes" means motor fuel used in any tractor,

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vehicle, or other farm equipment which is used exclusively on a

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farm or for processing farm products on the farm, and no part of

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which fuel is used in any vehicle or equipment driven or operated

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upon the public highways of this state. This restriction does not

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apply to the movement of a farm vehicle or farm equipment between

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farms. The transporting of bees by water and the operating of

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equipment used in the apiary of a beekeeper shall be also deemed

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an agricultural purpose.

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     3.  For the purposes of this paragraph, "commercial fishing

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and aquacultural purposes" means motor fuel used in the operation

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of boats, vessels, or equipment used exclusively for the taking

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of fish, crayfish, oysters, shrimp, or sponges from salt or fresh

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waters under the jurisdiction of the state for resale to the

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public, and no part of which fuel is used in any vehicle or

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equipment driven or operated upon the highways of this state;

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however, the term may in no way be construed to include fuel used

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for sport or pleasure fishing.

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     4.  For the purposes of this paragraph, "commercial aviation

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purposes" means motor fuel used in the operation of aviation

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ground support vehicles or equipment, no part of which fuel is

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used in any vehicle or equipment driven or operated upon the

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public highways of this state.

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     Section 2.  For the purpose of incorporating the amendments

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made by this act to section 206.41, Florida Statutes, in

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references thereto, section 206.414, Florida Statutes, is

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reenacted to read:

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     206.414  Collection of certain taxes; prohibited credits and

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refunds.--

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     (1)  Notwithstanding s. 206.41, which requires the

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collection of taxes due when motor fuel is removed through the

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terminal loading rack, the taxes imposed by s. 206.41(1)(d), (e),

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and (f) shall be collected in the following manner:

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     (a)  Prior to January 1 each year the department shall

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determine the minimum amount of taxes to be imposed by s.

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206.41(1)(d), (e), and (f) in any county.

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     (b)  The minimum tax imposed by s. 206.41(1)(d), (e), and

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(f) shall be collected in the same manner as the taxes imposed

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under s. 206.41(a), (b), and (c); at the point of removal through

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the terminal loading rack; or as provided in paragraph (c). All

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taxes collected, refunded, or credited shall be distributed based

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on the current applied period.

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     (c)  The taxes imposed by s. 206.41(1)(d), (e), and (f)

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above the annual minimum shall be collected and remitted by

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licensed wholesalers and terminal suppliers upon each sale,

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delivery, or consignment to retail dealers, resellers, and end

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users.

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     (2)  Terminal suppliers and wholesalers shall not collect

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the taxes imposed by s. 206.41(1)(d), (e), and (f) above the

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annual minimum established in this section on authorized

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exchanges and sales to terminal suppliers, wholesalers, and

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importers.

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     (3)  Terminal suppliers, wholesalers, and importers shall

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not pay the taxes imposed by s. 206.41(1)(d), (e), and (f) above

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the annual minimum established in this section to their

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suppliers.  There shall be no credit or refund for any of the

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taxes imposed by s. 206.41(1)(d), (e), and (f) above the annual

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minimum established in this section paid by a terminal supplier,

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wholesaler, or importer to any supplier.

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     Section 3.  For the purpose of incorporating the amendments

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made by this act to section 206.41, Florida Statutes, in

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references thereto, paragraph (b) of subsection (1) and

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paragraphs (a) and (c) of subsection (6) of section 206.43,

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Florida Statutes, are reenacted to read:

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     206.43  Terminal supplier, importer, exporter, blender, and

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wholesaler to report to department monthly; deduction.--The taxes

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levied and assessed as provided in this part shall be paid to the

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department monthly in the following manner:

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     (1)

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     (b)  In addition to the allowance authorized by paragraph

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(a), every terminal supplier and wholesaler shall be entitled to

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a deduction of 1.1 percent of the tax imposed under s.

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206.41(1)(d) and the first 6 cents of tax imposed under s.

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206.41(1)(e), which deduction is hereby allowed on account of

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services and expenses in complying with the provisions of this

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part. This allowance shall not be deductible unless payment of

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the tax is made on or before the 20th day of the month as herein

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required.

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     (6)(a)  A licensed wholesaler shall self-accrue and remit to

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the department the tax on motor fuel imposed by s. 206.41(1)(d),

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(e), and (f) in accordance with subsections (1)-(3).

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     (c)  A terminal supplier or wholesaler that has paid the tax

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required under s. 206.41(1)(d), (e), and (f) upon sales to a

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retail dealer or reseller may take credit for any unpaid tax due

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on worthless accounts within 12 months after the month the bad

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debt was written off for federal income tax purposes, if the debt

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for the fuel upon which the tax was paid was also written off and

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if the credit for taxes paid is limited to the sales of fuel and

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taxes remitted within the first 60 days of nonpayment, not to

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exceed 120 percent of the 60-day average based on the prior 12

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months of business.  Any taxes due on sales to retailers and

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resellers resulting in worthless accounts receivable following

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the first 60 days of nonpayment shall not be credited or

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refunded. If any accounts so charged off for which a credit or

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refund has been obtained are thereafter in whole or in part paid

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to the licensee, the amount so paid shall be included in the

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first return filed after such collection and the tax paid

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accordingly.

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     Section 4.  For the purpose of incorporating the amendments

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made by this act to section 206.41, Florida Statutes, in

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references thereto, paragraph (b) of subsection (5) of section

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206.47, Florida Statutes, is reenacted to read:

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     206.47  Distribution of constitutional fuel tax pursuant to

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State Constitution.--

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     (5)

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     (b)  For the purpose of this section, "taxable gallons

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attributable to each county" shall be calculated as a consumption

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factor for each county divided by the sum of such consumption

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factors for all counties, and multiplied by the total gallons

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statewide upon which a tax was paid pursuant to s. 206.41(1)(a).

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For each county imposing a tax pursuant to s. 206.41(1)(d) or

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(e), the consumption factor shall be the gallons upon which the

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county's tax was paid under either or both of said sections. For

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each other county, the consumption factor shall be calculated as

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the taxable gallons yielding the tax amount certified pursuant to

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this section for fiscal year 1984-1985 for the county, multiplied

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by the quotient of the statewide total taxes collected pursuant

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to s. 206.41(1)(a) for the current year divided by the statewide

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total taxes certified pursuant to this section for fiscal year

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1984-1985.

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     Section 5.  For the purpose of incorporating the amendments

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made by this act to section 206.41, Florida Statutes, in

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references thereto, subsection (4) of section 206.8745, Florida

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Statutes, is reenacted to read:

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     206.8745  Credits and refund claims.--

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     (4)  A licensed wholesaler which has paid the tax imposed by

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this part and any applicable local option tax on undyed diesel

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fuel subsequently sold tax-free for use on a farm for farming

252

purposes, or to the United States or its departments or agencies

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in bulk lots of not less than 500 gallons in each delivery may,

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in lieu of applying for a refund, take a credit on its monthly

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consolidated fuel tax return against any motor or diesel fuel

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local option taxes due to the department pursuant to s.

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206.41(1)(d), (e), and (f).

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     Section 6.  For the purpose of incorporating the amendments

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made by this act to section 206.41, Florida Statutes, in

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references thereto, paragraph (a) of subsection (1) of section

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206.9825, Florida Statutes, is reenacted to read:

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     206.9825  Aviation fuel tax.--

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     (1)(a)  Except as otherwise provided in this part, an excise

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tax of 6.9 cents per gallon of aviation fuel is imposed upon

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every gallon of aviation fuel sold in this state, or brought into

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this state for use, upon which such tax has not been paid or the

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payment thereof has not been lawfully assumed by some person

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handling the same in this state. Fuel taxed pursuant to this part

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shall not be subject to the taxes imposed by ss. 206.41(1)(d),

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(e), and (f) and 206.87(1)(b), (c), and (d).

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     Section 7.  For the purpose of incorporating the amendments

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made by this act to section 206.41, Florida Statutes, in a

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reference thereto, paragraph (a) of subsection (1) of section

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336.021, Florida Statutes, is reenacted to read:

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     336.021  County transportation system; levy of ninth-cent

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fuel tax on motor fuel and diesel fuel.--

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     (1)(a)  Any county in the state, by extraordinary vote of

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the membership of its governing body or subject to a referendum,

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may levy the tax imposed by ss. 206.41(1)(d) and 206.87(1)(b).

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County and municipal governments may use the moneys received

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under this paragraph only for transportation expenditures as

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defined in s. 336.025(7).

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     Section 8.  For the purpose of incorporating the amendments

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made by this act to section 206.41, Florida Statutes, in

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references thereto, paragraphs (a) and (b) of subsection (1) and

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paragraph (a) of subsection (2) of section 336.025, Florida

287

Statutes, are reenacted to read:

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     336.025  County transportation system; levy of local option

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fuel tax on motor fuel and diesel fuel.--

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     (1)(a)  In addition to other taxes allowed by law, there may

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be levied as provided in ss. 206.41(1)(e) and 206.87(1)(c) a 1-

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cent, 2-cent, 3-cent, 4-cent, 5-cent, or 6-cent local option fuel

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tax upon every gallon of motor fuel and diesel fuel sold in a

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county and taxed under the provisions of part I or part II of

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chapter 206.

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     1.  All impositions and rate changes of the tax shall be

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levied before July 1 to be effective January 1 of the following

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year for a period not to exceed 30 years, and the applicable

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method of distribution shall be established pursuant to

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subsection (3) or subsection (4).  However, levies of the tax

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which were in effect on July 1, 2002, and which expire on August

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31 of any year may be reimposed at the current authorized rate

303

effective September 1 of the year of expiration.  Upon

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expiration, the tax may be relevied provided that a

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redetermination of the method of distribution is made as provided

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in this section.

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     2.  County and municipal governments shall utilize moneys

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received pursuant to this paragraph only for transportation

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expenditures.

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     3.  Any tax levied pursuant to this paragraph may be

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extended on a majority vote of the governing body of the county.

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A redetermination of the method of distribution shall be

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established pursuant to subsection (3) or subsection (4), if,

314

after July 1, 1986, the tax is extended or the tax rate changed,

315

for the period of extension or for the additional tax.

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     (b)  In addition to other taxes allowed by law, there may be

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levied as provided in s. 206.41(1)(e) a 1-cent, 2-cent, 3-cent,

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4-cent, or 5-cent local option fuel tax upon every gallon of

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motor fuel sold in a county and taxed under the provisions of

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part I of chapter 206. The tax shall be levied by an ordinance

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adopted by a majority plus one vote of the membership of the

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governing body of the county or by referendum.

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     1.  All impositions and rate changes of the tax shall be

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levied before July 1, to be effective January 1 of the following

325

year. However, levies of the tax which were in effect on July 1,

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2002, and which expire on August 31 of any year may be reimposed

327

at the current authorized rate effective September 1 of the year

328

of expiration.

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     2.  The county may, prior to levy of the tax, establish by

330

interlocal agreement with one or more municipalities located

331

therein, representing a majority of the population of the

332

incorporated area within the county, a distribution formula for

333

dividing the entire proceeds of the tax among county government

334

and all eligible municipalities within the county. If no

335

interlocal agreement is adopted before the effective date of the

336

tax, tax revenues shall be distributed pursuant to the provisions

337

of subsection (4). If no interlocal agreement exists, a new

338

interlocal agreement may be established prior to June 1 of any

339

year pursuant to this subparagraph. However, any interlocal

340

agreement agreed to under this subparagraph after the initial

341

levy of the tax or change in the tax rate authorized in this

342

section shall under no circumstances materially or adversely

343

affect the rights of holders of outstanding bonds which are

344

backed by taxes authorized by this paragraph, and the amounts

345

distributed to the county government and each municipality shall

346

not be reduced below the amount necessary for the payment of

347

principal and interest and reserves for principal and interest as

348

required under the covenants of any bond resolution outstanding

349

on the date of establishment of the new interlocal agreement.

350

     3.  County and municipal governments shall use moneys

351

received pursuant to this paragraph for transportation

352

expenditures needed to meet the requirements of the capital

353

improvements element of an adopted comprehensive plan or for

354

expenditures needed to meet immediate local transportation

355

problems and for other transportation-related expenditures that

356

are critical for building comprehensive roadway networks by local

357

governments. For purposes of this paragraph, expenditures for the

358

construction of new roads, the reconstruction or resurfacing of

359

existing paved roads, or the paving of existing graded roads

360

shall be deemed to increase capacity and such projects shall be

361

included in the capital improvements element of an adopted

362

comprehensive plan. Expenditures for purposes of this paragraph

363

shall not include routine maintenance of roads.

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     (2)(a)  The tax levied pursuant to paragraph (1)(a) shall be

365

collected and remitted in the same manner provided by ss.

366

206.41(1)(e) and 206.87(1)(c). The tax levied pursuant to

367

paragraph (1)(b) shall be collected and remitted in the same

368

manner provided by s. 206.41(1)(e). The taxes remitted pursuant

369

to this section shall be transferred to the Local Option Fuel Tax

370

Trust Fund, which fund is created for distribution to the county

371

and eligible municipal governments within the county in which the

372

tax was collected and which fund is subject to the service charge

373

imposed in chapter 215.  The tax shall be distributed monthly by

374

the department in the same manner provided by s. 336.021(1)(c)

375

and (d). The department shall deduct the administrative costs

376

incurred by it in collecting, administering, enforcing, and

377

distributing back to the counties the tax, which administrative

378

costs may not exceed 2 percent of collections authorized by this

379

section. The total administrative costs shall be prorated among

380

those counties levying the tax according to the following

381

formula, which shall be revised on July 1 of each year:  Two-

382

thirds of the amount deducted shall be based on the county's

383

proportional share of the number of dealers who are registered

384

for purposes of chapter 212 on June 30 of the preceding state

385

fiscal year, and one-third of the amount deducted shall be based

386

on the county's share of the total amount of the tax collected

387

during the preceding state fiscal year. The department has the

388

authority to prescribe and publish all forms upon which reports

389

shall be made to it and other forms and records deemed to be

390

necessary for proper administration and collection of the taxes

391

levied by any county and shall promulgate such rules as may be

392

necessary for the enforcement of this section, which rules shall

393

have the full force and effect of law.  The provisions of ss.

394

206.026, 206.027, 206.028, 206.051, 206.052, 206.054, 206.055,

395

206.06, 206.07, 206.075, 206.08, 206.09, 206.095, 206.10, 206.11,

396

206.12, 206.13, 206.14, 206.15, 206.16, 206.17, 206.175, 206.18,

397

206.199, 206.20, 206.204, 206.205, 206.21, 206.215, 206.22,

398

206.24, 206.27, 206.28, 206.41, 206.416, 206.44, 206.45, 206.48,

399

206.49, 206.56, 206.59, 206.626, 206.87, 206.872, 206.873,

400

206.8735, 206.874, 206.8741, 206.94, and 206.945 shall, as far as

401

practicable, be applicable to the levy and collection of taxes

402

imposed pursuant to this section as if fully set out in this

403

section.

404

     Section 9.  This act shall take effect July 1, 2008.