Florida Senate - 2009 SB 2566 By Senator Ring 32-01684-09 20092566__ 1 A bill to be entitled 2 An act relating to discretionary sales surtaxes; 3 amending s. 212.054, F.S.; providing that a county 4 hospital sales surtax applies to sales amounts greater 5 than $5,000; providing an effective date. 6 7 Be It Enacted by the Legislature of the State of Florida: 8 9 Section 1. Section 212.054, Florida Statutes, is amended to 10 read: 11 212.054 Discretionary sales surtax; limitations, 12 administration, and collection.— 13 (1) No general excise tax on sales shall be levied by the 14 governing body of any county unless specifically authorized in 15 s. 212.055. Any general excise tax on sales authorized pursuant 16 to said section shall be administered and collected exclusively 17 as provided in this section. 18 (2)(a) The tax imposed by the governing body of any county 19 authorized to so levy pursuant to s. 212.055 shall be a 20 discretionary surtax on all transactions occurring in the county 21 which transactions are subject to the state tax imposed on 22 sales, use, services, rentals, admissions, and other 23 transactions by this chapter and communications services as 24 defined for purposes of chapter 202. The surtax, if levied, 25 shall be computed as the applicable rate or rates authorized 26 pursuant to s. 212.055 times the amount of taxable sales and 27 taxable purchases representing such transactions. If the surtax 28 is levied on the sale of an item of tangible personal property 29 or on the sale of a service, the surtax shall be computed by 30 multiplying the rate imposed by the county within which the sale 31 occurs by the amount of the taxable sale. The sale of an item of 32 tangible personal property or the sale of a service is not 33 subject to the surtax if the property, the service, or the 34 tangible personal property representing the service is delivered 35 within a county that does not impose a discretionary sales 36 surtax. 37 (b) However: 38 1. The sales amount above $5,000 on any item of tangible 39 personal property shall not be subject to the surtax. However, 40 charges for prepaid calling arrangements, as defined in s. 41 212.05(1)(e)1.a., shall be subject to the surtax. For purposes 42 of administering the $5,000 limitation on an item of tangible 43 personal property, if two or more taxable items of tangible 44 personal property are sold to the same purchaser at the same 45 time and, under generally accepted business practice or industry 46 standards or usage, are normally sold in bulk or are items that, 47 when assembled, comprise a working unit or part of a working 48 unit, such items must be considered a single item for purposes 49 of the $5,000 limitation when supported by a charge ticket, 50 sales slip, invoice, or other tangible evidence of a single sale 51 or rental. This subparagraph does not apply to a county hospital 52 surtax levied pursuant to s. 212.055. 53 2. In the case of utility services billed on or after the 54 effective date of any such surtax, the entire amount of the 55 charge for utility services shall be subject to the surtax. In 56 the case of utility services billed after the last day the 57 surtax is in effect, the entire amount of the charge on said 58 items shall not be subject to the surtax. “Utility service,” as 59 used in this section, does not include any communications 60 services as defined in chapter 202. 61 3. In the case of written contracts which are signed prior 62 to the effective date of any such surtax for the construction of 63 improvements to real property or for remodeling of existing 64 structures, the surtax shall be paid by the contractor 65 responsible for the performance of the contract. However, the 66 contractor may apply for one refund of any such surtax paid on 67 materials necessary for the completion of the contract. Any 68 application for refund shall be made no later than 15 months 69 following initial imposition of the surtax in that county. The 70 application for refund shall be in the manner prescribed by the 71 department by rule. A complete application shall include proof 72 of the written contract and of payment of the surtax. The 73 application shall contain a sworn statement, signed by the 74 applicant or its representative, attesting to the validity of 75 the application. The department shall, within 30 days after 76 approval of a complete application, certify to the county 77 information necessary for issuance of a refund to the applicant. 78 Counties are hereby authorized to issue refunds for this purpose 79 and shall set aside from the proceeds of the surtax a sum 80 sufficient to pay any refund lawfully due. Any person who 81 fraudulently obtains or attempts to obtain a refund pursuant to 82 this subparagraph, in addition to being liable for repayment of 83 any refund fraudulently obtained plus a mandatory penalty of 100 84 percent of the refund, is guilty of a felony of the third 85 degree, punishable as provided in s. 775.082, s. 775.083, or s. 86 775.084. 87 4. In the case of any vessel, railroad, or motor vehicle 88 common carrier entitled to partial exemption from tax imposed 89 under this chapter pursuant to s. 212.08(4), (8), or (9), the 90 basis for imposition of surtax shall be the same as provided in 91 s. 212.08 and the ratio shall be applied each month to total 92 purchases in this state of property qualified for proration 93 which is delivered or sold in the taxing county to establish the 94 portion used and consumed in intracounty movement and subject to 95 surtax. 96 (3) For the purpose of this section, a transaction shall be 97 deemed to have occurred in a county imposing the surtax when: 98 (a)1. The sale includes an item of tangible personal 99 property, a service, or tangible personal property representing 100 a service, and the item of tangible personal property, the 101 service, or the tangible personal property representing the 102 service is delivered within the county. If there is no 103 reasonable evidence of delivery of a service, the sale of a 104 service is deemed to occur in the county in which the purchaser 105 accepts the bill of sale. 106 2. The sale of any motor vehicle or mobile home of a class 107 or type which is required to be registered in this state or in 108 any other state shall be deemed to have occurred only in the 109 county identified as the residence address of the purchaser on 110 the registration or title document for such property. 111 (b) The event for which an admission is charged is located 112 in the county. 113 (c) The consumer of utility services is located in the 114 county. 115 (d)1. The user of any aircraft or boat of a class or type 116 which is required to be registered, licensed, titled, or 117 documented in this state or by the United States Government 118 imported into the county for use, consumption, distribution, or 119 storage to be used or consumed in the county is located in the 120 county. 121 2. However, it shall be presumed that such items used 122 outside the county for 6 months or longer before being imported 123 into the county were not purchased for use in the county, except 124 as provided in s. 212.06(8)(b). 125 3. This paragraph does not apply to the use or consumption 126 of items upon which a like tax of equal or greater amount has 127 been lawfully imposed and paid outside the county. 128 (e) The purchaser of any motor vehicle or mobile home of a 129 class or type which is required to be registered in this state 130 is a resident of the taxing county as determined by the address 131 appearing on or to be reflected on the registration document for 132 such property. 133 (f)1. Any motor vehicle or mobile home of a class or type 134 which is required to be registered in this state is imported 135 from another state into the taxing county by a user residing 136 therein for the purpose of use, consumption, distribution, or 137 storage in the taxing county. 138 2. However, it shall be presumed that such items used 139 outside the taxing county for 6 months or longer before being 140 imported into the county were not purchased for use in the 141 county. 142 (g) The real property which is leased or rented is located 143 in the county. 144 (h) The transient rental transaction occurs in the county. 145 (i) The delivery of any aircraft or boat of a class or type 146 which is required to be registered, licensed, titled, or 147 documented in this state or by the United States Government is 148 to a location in the county. However, this paragraph does not 149 apply to the use or consumption of items upon which a like tax 150 of equal or greater amount has been lawfully imposed and paid 151 outside the county. 152 (j) The dealer owing a use tax on purchases or leases is 153 located in the county. 154 (k) The delivery of tangible personal property other than 155 that described in paragraph (d), paragraph (e), or paragraph (f) 156 is made to a location outside the county, but the property is 157 brought into the county within 6 months after delivery, in which 158 event, the owner must pay the surtax as a use tax. 159 (l) The coin-operated amusement or vending machine is 160 located in the county. 161 (m) The florist taking the original order to sell tangible 162 personal property is located in the county, notwithstanding any 163 other provision of this section. 164 (4)(a) The department shall administer, collect, and 165 enforce the tax authorized under s. 212.055 pursuant to the same 166 procedures used in the administration, collection, and 167 enforcement of the general state sales tax imposed under the 168 provisions of this chapter, except as provided in this section. 169 The provisions of this chapter regarding interest and penalties 170 on delinquent taxes shall apply to the surtax. Discretionary 171 sales surtaxes shall not be included in the computation of 172 estimated taxes pursuant to s. 212.11. Notwithstanding any other 173 provision of law, a dealer need not separately state the amount 174 of the surtax on the charge ticket, sales slip, invoice, or 175 other tangible evidence of sale. For the purposes of this 176 section and s. 212.055, the “proceeds” of any surtax means all 177 funds collected and received by the department pursuant to a 178 specific authorization and levy under s. 212.055, including any 179 interest and penalties on delinquent surtaxes. 180 (b) The proceeds of a discretionary sales surtax collected 181 by the selling dealer located in a county which imposes the 182 surtax shall be returned, less the cost of administration, to 183 the county where the selling dealer is located. The proceeds 184 shall be transferred to the Discretionary Sales Surtax Clearing 185 Trust Fund. A separate account shall be established in such 186 trust fund for each county imposing a discretionary surtax. The 187 amount deducted for the costs of administration shall not exceed 188 3 percent of the total revenue generated for all counties 189 levying a surtax authorized in s. 212.055. The amount deducted 190 for the costs of administration shall be used only for those 191 costs which are solely and directly attributable to the surtax. 192 The total cost of administration shall be prorated among those 193 counties levying the surtax on the basis of the amount collected 194 for a particular county to the total amount collected for all 195 counties. No later than March 1 of each year, the department 196 shall submit a written report which details the expenses and 197 amounts deducted for the costs of administration to the 198 President of the Senate, the Speaker of the House of 199 Representatives, and the governing authority of each county 200 levying a surtax. The department shall distribute the moneys in 201 the trust fund each month to the appropriate counties, unless 202 otherwise provided in s. 212.055. 203 (c)1. Any dealer located in a county that does not impose a 204 discretionary sales surtax but who collects the surtax due to 205 sales of tangible personal property or services delivered 206 outside the county shall remit monthly the proceeds of the 207 surtax to the department to be deposited into an account in the 208 Discretionary Sales Surtax Clearing Trust Fund which is separate 209 from the county surtax collection accounts. The department shall 210 distribute funds in this account using a distribution factor 211 determined for each county that levies a surtax and multiplied 212 by the amount of funds in the account and available for 213 distribution. The distribution factor for each county equals the 214 product of: 215 a. The county's latest official population determined 216 pursuant to s. 186.901; 217 b. The county's rate of surtax; and 218 c. The number of months the county has levied a surtax 219 during the most recent distribution period; 220 221 divided by the sum of all such products of the counties levying 222 the surtax during the most recent distribution period. 223 2. The department shall compute distribution factors for 224 eligible counties once each quarter and make appropriate 225 quarterly distributions. 226 3. A county that fails to timely provide the information 227 required by this section to the department authorizes the 228 department, by such action, to use the best information 229 available to it in distributing surtax revenues to the county. 230 If this information is unavailable to the department, the 231 department may partially or entirely disqualify the county from 232 receiving surtax revenues under this paragraph. A county that 233 fails to provide timely information waives its right to 234 challenge the department's determination of the county's share, 235 if any, of revenues provided under this paragraph. 236 (5) No discretionary sales surtax or increase or decrease 237 in the rate of any discretionary sales surtax shall take effect 238 on a date other than January 1. No discretionary sales surtax 239 shall terminate on a day other than December 31. 240 (6) The governing body of any county levying a 241 discretionary sales surtax shall enact an ordinance levying the 242 surtax in accordance with the procedures described in s. 243 125.66(2). 244 (7)(a) The governing body of any county levying a 245 discretionary sales surtax or the school board of any county 246 levying the school capital outlay surtax authorized by s. 247 212.055(6) shall notify the department within 10 days after 248 final adoption by ordinance or referendum of an imposition, 249 termination, or rate change of the surtax, but no later than 250 November 16 prior to the effective date. The notice must specify 251 the time period during which the surtax will be in effect and 252 the rate and must include a copy of the ordinance and such other 253 information as the department requires by rule. Failure to 254 timely provide such notification to the department shall result 255 in the delay of the effective date for a period of 1 year. 256 (b) In addition to the notification required by paragraph 257 (a), the governing body of any county proposing to levy a 258 discretionary sales surtax or the school board of any county 259 proposing to levy the school capital outlay surtax authorized by 260 s. 212.055(6) shall notify the department by October 1 if the 261 referendum or consideration of the ordinance that would result 262 in imposition, termination, or rate change of the surtax is 263 scheduled to occur on or after October 1 of that year. Failure 264 to timely provide such notification to the department shall 265 result in the delay of the effective date for a period of 1 266 year. 267 (8) With respect to any motor vehicle or mobile home of a 268 class or type which is required to be registered in this state, 269 the tax due on a transaction occurring in the taxing county as 270 herein provided shall be collected from the purchaser or user 271 incident to the titling and registration of such property, 272 irrespective of whether such titling or registration occurs in 273 the taxing county. 274 Section 2. This act shall take effect July 1, 2009.