1 | A bill to be entitled |
2 | An act relating to reimbursement of federal excise taxes |
3 | on motor fuel; creating s. 206.431, F.S.; providing |
4 | requirements and limitations on reimbursement provisions |
5 | of certain fuel supply contracts; providing notice |
6 | requirements; providing for payment security requirements; |
7 | providing for electronic transfer of funds; specifying |
8 | application to contracts; providing an effective date. |
9 |
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10 | Be It Enacted by the Legislature of the State of Florida: |
11 |
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12 | Section 1. Section 206.431, Florida Statutes, is created |
13 | to read: |
14 | 206.431 Reimbursement for taxes.-- |
15 | (1)(a) If a fuel supply contract requires one party to |
16 | reimburse another party for the federal excise tax imposed by 26 |
17 | U.S.C. s. 4081 or s. 4091, whether as a separate item or as part |
18 | of the contract price, the reimbursing party, at its option and |
19 | notwithstanding contrary terms of the contract, shall not be |
20 | required to make the reimbursement more than one business day |
21 | before the day on which the reimbursed party must remit the |
22 | taxes to the Internal Revenue Service. |
23 | (b) Exercise of the option provided by this section shall |
24 | not relieve the reimbursing party of its obligation to make the |
25 | reimbursement as required by the contract, but shall affect only |
26 | the timing of that reimbursement. |
27 | (2)(a) Written notice of the reimbursing party's intent to |
28 | exercise the option provided in subsection (1) shall be given to |
29 | the reimbursed party. |
30 | (b) The notice shall state the effective date of the |
31 | exercise of the option, which shall be no earlier than 30 days |
32 | after the notice of intent is received by the reimbursed party |
33 | or the beginning of the reimbursed party's next federal tax |
34 | quarter, whichever is later. |
35 | (3)(a) If a reimbursing party exercises the option |
36 | provided in subsection (1), the reimbursed party may demand |
37 | security for the payment of the taxes in proportion to the |
38 | amount the taxes represent compared to the security demanded on |
39 | the contract as a whole. |
40 | (b) The reimbursed party may also require reimbursement to |
41 | be made by electronic transfer of funds, but may not change the |
42 | other payment terms of the contract without a valid business |
43 | reason. |
44 | (4)(a) This section applies to all wholesale transactions |
45 | with terminal suppliers that are: |
46 | 1. Continuing contracts with no fixed expiration date and |
47 | are in effect on July 1, 2009; or |
48 | 2. Contracts entered into or renewed after July 1, 2009. |
49 | (b) All contracts in effect on July 1, 2009, that contain |
50 | a fixed expiration date shall be governed by the law in |
51 | existence prior to July 1, 2009. |
52 | Section 2. This act shall take effect July 1, 2009. |