CS/HB 5801

1
A bill to be entitled
2An act relating to taxation; directing the Department of
3Revenue to develop and implement an amnesty program for
4taxpayers subject to the state and local taxes imposed by
5chapters 125, 175, 185, 198, 199, 201, 202, 203, 206, 211,
6212, 220, 221, 252, 336, 376, 403, 624, 627, 629, and 681,
7F.S., and required to be paid to the Department of
8Revenue; providing time periods; providing program
9guidelines; providing for eligible participants; providing
10for waiver of penalties and interest under specified
11circumstances; providing for emergency rules; providing an
12appropriation; amending s. 213.053, F.S.; providing that
13the department may release confidential taxpayer
14information relating to a corporation having an
15outstanding tax warrant to the Department of Business and
16Professional Regulation; authorizing the department to
17publish a list of taxpayers against whom it has filed a
18warrant, notice of lien, or judgment lien certificate;
19requiring the department to update the list at least
20monthly; authorizing the department to adopt rules;
21authorizing the department to provide confidential
22taxpayer information relating to collections from
23taxpayers against whom it has taken a collection action;
24amending s. 213.50, F.S.; authorizing the Division of
25Hotels and Restaurants of the Department of Business and
26Professional Regulation to revoke or deny the renewal of a
27license to operate a public lodging establishment or
28public food service establishment under certain
29circumstances; creating s. 213.692, F.S.; authorizing the
30Department of Revenue to revoke all certificates of
31registration, permits, or licenses issued to a taxpayer
32against whose property the department has filed a warrant,
33notice of lien, or judgment lien certificate; requiring
34the scheduling of an informal conference before revocation
35of the certificates of registration, permits, or licenses;
36prohibiting the Department of Revenue from issuing a
37certificate of registration, permit, or license to a
38taxpayer whose certificate of registration, permit, or
39license has been revoked; providing exceptions; requiring
40security as a condition of issuing a new certificate of
41registration to a person whose certificate of
42registration, permit, or license has been revoked after
43the filing of a warrant, notice of lien, or judgment lien
44certificate; authorizing the department to adopt rules,
45including emergency rules; creating s. 213.758, F.S.;
46defining terms; providing for the transfer of tax
47liabilities to the transferee of a business or a stock of
48goods under certain circumstances; providing exceptions;
49requiring a taxpayer who quits a business to file a final
50tax return; authorizing the Department of Legal Affairs to
51seek injunctions to prevent business activities until
52taxes are paid; requiring the transferor of a business or
53stock of goods to file a final tax return and make a full
54tax payment after a transfer; authorizing a transferee of
55a business or stock of goods to withhold a portion of the
56consideration for the transfer for the payment of certain
57taxes; authorizing the Department of Legal Affairs to seek
58an injunction to prevent business activities by a
59transferee until the taxes are paid; providing that the
60transferees are jointly and severally liable with the
61transferor for the payment of taxes, interest, or
62penalties under certain circumstances; limiting the
63transferee's liability to the value or purchase price of
64the transferred property; specifying a time period within
65which a transferee may file certain actions; providing no
66liability to a transferee for a an involuntary transfer;
67authorizing the Department of Revenue to adopt rules;
68reenacting and amending s. 218.12, F.S.; making permanent
69a methodology for determining the value of assessments for
70certain homesteads for certain purposes; authorizing full-
71time equivalent positions and providing an appropriation
72for the purpose of conducting audits and tax collection
73services in the Department of Revenue; providing an
74effective date.
75
76Be It Enacted by the Legislature of the State of Florida:
77
78     Section 1.  (1)  No later than July 1, 2010, the Department
79of Revenue shall develop and implement an amnesty program for
80taxpayers subject to the state and local taxes imposed by
81chapters 125, 175, 185, 198, 199, 201, 202, 203, 206, 211, 212,
82220, 221, 252, 336, 376, 403, 624, 627, 629, and 681, Florida
83Statutes.
84     (2)  The amnesty program shall be a one-time opportunity
85for eligible taxpayers to satisfy their tax liabilities under
86the revenue laws of this state and thereby avoid criminal
87prosecution, penalties, and interest as provided in subsections
88(5), (6), and (7). Any taxpayer that has entered into a
89settlement of liability for state or local option taxes before
90July 1, 2010, whether or not full and complete payment of the
91settlement amount has been made, is not eligible to participate
92in the amnesty program.
93     (3)  The amnesty program shall be in effect for a 3-month
94period beginning on July 1, 2010, and ending on September 30,
952010. The amnesty program shall apply only to tax liabilities
96due prior to July 1, 2010. In order to participate in the
97amnesty program, eligible taxpayers must file the forms and
98other documentation specified by the Department of Revenue,
99including, but not limited to, returns and amended returns, and
100must make full payment of tax due, the interest due as provided
101in subsections (5) and (6), and the administrative collection
102processing fee imposed pursuant to s. 213.24, Florida Statutes.
103     (4)  The administrative collection processing fee imposed
104pursuant to s. 213.24, Florida Statutes, shall be calculated on
105the tax, penalty, and interest due before the reductions allowed
106by the amnesty program.
107     (5)  A taxpayer may participate in the amnesty program
108whether or not the taxpayer is under audit, inquiry,
109examination, or civil investigation initiated by the Department
110of Revenue, regardless of whether the amount due is included in
111a proposed assessment or an assessment, bill, notice, or demand
112for payment issued by the Department of Revenue, and without
113regard to whether the amount due is subject to a pending
114administrative or judicial proceeding. If any of the
115circumstances set forth in this subsection apply, the taxpayer
116shall pay the full amount of the tax due and 75 percent of the
117amount of interest due. When the department has issued a notice
118of intent to conduct an audit to a taxpayer but has not
119commenced the audit, the taxpayer may apply to the department
120during the amnesty program for approval to have the audit
121converted to the certified audits program authorized by s.
122213.285, Florida Statutes. When a taxpayer has been approved
123during the amnesty program to have an audit converted to the
124certified audits program, payment of any liability determined as
125a result of this participation in the certified audits program
126must be made during the period the amnesty program is in effect.
127A taxpayer that is participating in the certified audits program
128authorized by s. 213.285, Florida Statutes, is eligible for the
129interest and penalty compromises authorized by the amnesty
130program or the certified audits program, but not both.
131     (6)  If the circumstances set forth in subsection (5) do
132not apply and the initial contact with the Department of Revenue
133is made by the taxpayer pursuant to the amnesty program, the
134taxpayer shall pay the full amount of the tax due and 50 percent
135of the amount of interest due.
136     (7)  Penalties may not be imposed on any tax paid pursuant
137to the amnesty program, and the Department of Revenue may not
138initiate a criminal investigation against or refer for
139prosecution any taxpayer participating in the amnesty program
140with respect to the failure to timely pay the tax disclosed in
141the amnesty program.
142     (8)  Participation in the amnesty program is conditioned
143upon the taxpayer's express waiver of rights to contest taxes
144being reported pursuant to the amnesty program. If the taxes
145reported pursuant to the amnesty program are the subject of a
146pending informal protest under s. 213.21, Florida Statutes, or
147of administrative or judicial proceedings that have not become
148final as of the date payment of the taxes is made pursuant to
149the amnesty program, participation in the amnesty program is
150conditioned upon the taxpayer's withdrawal of such informal
151protest or dismissal of such administrative or judicial
152proceeding. Participation in the amnesty program is also
153conditioned upon the taxpayer's express agreement to waive any
154right to claim a refund or to protest or initiate an
155administrative or judicial proceeding to review any denial of a
156refund claim for any refund of tax or interest paid under the
157amnesty program except as provided in this subsection. A refund
158of any penalty or interest paid prior to July 1, 2010, may not
159be made. Any credit or refund of tax or interest paid as a
160result of participation in the amnesty program is strictly
161limited to amounts determined by the Department of Revenue to
162have been paid in error.
163     (9)  In lieu of making full payment, as provided in
164subsection (3), a taxpayer may request in writing to make
165stipulated payments under a stipulated payment agreement. To be
166eligible to make stipulated payments, the taxpayer must sign the
167agreement to participate in the amnesty program, make a request
168for stipulated payments, and sign a stipulated payment
169agreement. The taxpayer shall make a minimum down payment of
17012.5 percent of the outstanding amount due under the amnesty,
171pay the remaining balance in up to seven additional monthly
172installments, and meet each payment term detailed on the
173amortization schedule provided by the department. Interest on
174the balance shall accrue pursuant to s. 213.235, Florida
175Statutes. If a taxpayer fails to make a monthly installment
176payment or is delinquent, the agreement to participate in the
177amnesty program and the stipulated payment agreement are void
178and the full amount of the original liability, including any
179interest and penalty, are due and payable.
180     (10)  A taxpayer under criminal investigation, indictment,
181information, or prosecution regarding a revenue law of this
182state is not eligible to participate in the amnesty program. A
183taxpayer under pretrial intervention or a diversion program,
184probation, or community control or in a work camp, jail, state
185prison, or another correctional system regarding a revenue law
186of this state is not eligible to participate in the amnesty
187program.
188     (11)  With or without an audit, the Department of Revenue
189may issue a notice or demand for payment with respect to any tax
190or interest that the department determines to be due with any
191return filed under the tax amnesty program, and such notice and
192demand is prima facie correct in any administrative, judicial,
193or quasi-judicial proceeding.
194     (12)  The Department of Revenue may, on the basis of fraud,
195misrepresentation, or mutual mistake of fact, rescind a grant of
196amnesty, including any amnesty granted as a result of
197participation in the certified audit program during the period
198the amnesty program is in effect. Any taxpayer that files under
199the amnesty program false or fraudulent returns, forms, or
200documentation or attempts in any manner to defeat or evade a tax
201is subject to applicable penalties and criminal prosecution.
202     (13)  Any local option tax administered by a local
203government that imposed the tax pursuant to a statute permitting
204self-administration is excluded from the amnesty program unless
205the local government notifies the Department of Revenue by June
2061, 2010, that it chooses to participate in the amnesty program.
207     (14)  The executive director of the Department of Revenue
208may adopt emergency rules under ss. 120.536(1) and 120.54(4),
209Florida Statutes, to implement the amnesty program. Such rules
210may provide forms, procedures, terms, conditions, and methods of
211payment appropriate for fair and effective administration of the
212amnesty program and to ensure taxpayers' ongoing commitment to
213proper remittance of taxes to the state. Notwithstanding any
214other law, the emergency rules shall remain in effect until 6
215months after the date of adoption of the rule or the date of
216final resolution of all amnesty applications filed pursuant to
217this section, whichever is later.
218     Section 2.  The sum of $1,234,000 in nonrecurring funds is
219appropriated from the General Revenue Fund to the Department of
220Revenue for the purpose of administering the amnesty program
221created by this act. Funds remaining unexpended or unencumbered
222from this appropriation as of June 30, 2010, shall revert and be
223reappropriated for the same purpose in fiscal year 2010-2011.
224     Section 3.  Effective July 1, 2010, paragraph (d) of
225subsection (8) of section 213.053, Florida Statutes, is amended,
226and subsections (20) and (21) are added to that section, to
227read:
228     213.053  Confidentiality and information sharing.-
229     (8)  Notwithstanding any other provision of this section,
230the department may provide:
231     (d)  Names, addresses, and sales tax registration
232information, and information relating to a public lodging
233establishment or a public food service establishment having an
234outstanding tax warrant, notice of lien, or judgment lien
235certificate to the Division of Hotels and Restaurants of the
236Department of Business and Professional Regulation in the
237conduct of its official duties.
238
239Disclosure of information under this subsection shall be
240pursuant to a written agreement between the executive director
241and the agency. Such agencies, governmental or nongovernmental,
242shall be bound by the same requirements of confidentiality as
243the Department of Revenue. Breach of confidentiality is a
244misdemeanor of the first degree, punishable as provided by s.
245775.082 or s. 775.083.
246     (20)(a)  The department may publish a list of taxpayers
247against whom the department has filed a warrant, notice of lien,
248or judgment lien certificate. The list may include the name and
249address of each taxpayer; the amounts and types of delinquent
250taxes, fees, or surcharges, penalties, or interest; and the
251employer identification number or other taxpayer identification
252number.
253     (b)  The department shall update the list at least monthly
254to reflect payments for resolution of deficiencies and to
255otherwise add or remove taxpayers from the list.
256     (c)  The department may adopt rules to administer this
257subsection.
258     (21)  The department may disclose information relating to
259taxpayers against whom the department has filed a warrant,
260notice of lien, or judgment lien certificate. Such information
261includes the name and address of the taxpayer, the actions
262taken, the amounts and types of liabilities, and the amount of
263any collections made.
264     Section 4.  Effective July 1, 2010, section 213.50, Florida
265Statutes, is amended to read:
266     213.50  Failure to comply; revocation of corporate charter
267or license to operate a public lodging establishment or public
268food service establishment; refusal to reinstate charter or
269license.-
270     (1)  Any corporation of this state which has an outstanding
271tax warrant that has existed for more than 3 consecutive months
272is subject to the revocation of its charter as provided in s.
273607.1420.
274     (2)  A request for reinstatement of a corporate charter may
275not be granted by the Division of Corporations of the Department
276of State if an outstanding tax warrant has existed for that
277corporation for more than 3 consecutive months.
278     (3)(a)  The Division of Hotels and Restaurants of the
279Department of Business and Professional Regulation may revoke a
280license to operate a public lodging establishment or a public
281food service establishment if a tax warrant has been outstanding
282against the licenseholder for more than 3 months.
283     (b)  The division may deny an application to renew a
284license to operate a public lodging establishment or a public
285food service establishment if a tax warrant has been outstanding
286against the licenseholder for more than 3 months.
287     Section 5.  Effective July 1, 2010, section 213.692,
288Florida Statutes, is created to read:
289     213.692  Integrated enforcement authority.-
290     (1)  If the department files a warrant, notice of lien, or
291judgment lien certificate against the property of a taxpayer,
292the department may also revoke all certificates of registration,
293permits, or licenses issued by the department to that taxpayer.
294     (a)  Before the department may revoke the certificates of
295registration, permits, or licenses, the department must schedule
296an informal conference that the taxpayer is required to attend.
297At the conference, the taxpayer may present evidence regarding
298the department's intended action or enter into a compliance
299agreement. The department must provide written notice to the
300taxpayer of the department's intended action and the time, date,
301and place of the conference. The department shall issue an
302administrative complaint to revoke the certificates of
303registration, permits, or licenses if the taxpayer does not
304attend the conference, enter into a compliance agreement, or
305comply with the compliance agreement.
306     (b)  The department may not issue a certificate of
307registration, permit, or license to a taxpayer whose certificate
308of registration, permit, or license has been revoked unless:
309     1.  The outstanding liabilities of the taxpayer have been
310satisfied; or
311     2.  The department enters into a written agreement with the
312taxpayer regarding any outstanding liabilities and, as part of
313such agreement, agrees to issue a certificate of registration,
314permit, or license.
315     (c)  The department shall require a cash deposit, bond, or
316other security as a condition of issuing a new certificate of
317registration pursuant to the requirements of s. 212.14(4).
318     (2)  If the department files a warrant or a judgment lien
319certificate in connection with a jeopardy assessment, the
320department must comply with the procedures in s. 213.732 before
321or in conjunction with those provided in this section.
322     (3)  The department may adopt rules to administer this
323section.
324     Section 6.  Effective July 1, 2010, the Department of
325Revenue is authorized to adopt emergency rules pursuant to ss.
326120.536(1) and 120.54, Florida Statutes, to administer s.
327213.692, Florida Statutes. The emergency rules shall remain in
328effect for 6 months after adoption and may be renewed during the
329pendency of procedures to adopt rules addressing the subject of
330the emergency rules.
331     Section 7.  Section 213.758, Florida Statutes, is created
332to read:
333     213.758  Transfer of tax liabilities.-
334     (1)  As used in this section, the term:
335     (a)  "Involuntary transfer" means a transfer of a business
336or stock of goods made without the consent of the transferor,
337including, but not limited to, a transfer:
338     1.  That occurs due to the foreclosure of a security
339interest issued to a person who is not an insider as defined in
340s. 726.102;
341     2.  That results from an eminent domain or condemnation
342action;
343     3.  Pursuant to chapter 61, chapter 702, or the United
344States Bankruptcy Code;
345     4.  To a financial institution, as defined in s. 655.005,
346if the transfer is made to satisfy the transferor's debt to the
347financial institution; or
348     5.  To a third party to the extent that the proceeds are
349used to satisfy the transferor's indebtedness to a financial
350institution as defined in s. 655.005. If the third party
351receives assets worth more than the indebtedness, the transfer
352of the excess may not be deemed an involuntary transfer.
353     (b)  "Transfer" means every mode, direct or indirect, with
354or without consideration, of disposing of or parting with a
355business or stock of goods, and includes, but is not limited to,
356assigning, conveying, demising, gifting, granting, or selling.
357     (2)  A taxpayer who is liable for any tax, interest,
358penalty, surcharge, or fee administered by the department
359pursuant to chapter 443 or described in s. 72.011(1), excluding
360corporate income tax, and who quits a business without the
361benefit of a purchaser, successor, or assignee, or without
362transferring the business or stock of goods to a transferee,
363must file a final return and make full payment within 15 days
364after quitting the business. A taxpayer who fails to file a
365final return and make payment may not engage in any business in
366this state until the final return has been filed and all taxes,
367interest, or penalties due have been paid. The Department of
368Legal Affairs may seek an injunction at the request of the
369department to prevent further business activity until such tax,
370interest, or penalties are paid. A temporary injunction
371enjoining further business activity may be granted by a court
372without notice.
373     (3)  A taxpayer who is liable for taxes, interest, or
374penalties levied under chapter 443 or any of the chapters
375specified in s. 213.05, excluding corporate income tax, who
376transfers the taxpayer's business or stock of goods, must file a
377final return and make full payment within 15 days after the date
378of transfer.
379     (4)(a)  A transferee, or a group of transferees acting in
380concert, of more than 50 percent of a business or stock of goods
381is liable for any tax, interest, or penalties owed by the
382transferor unless:
383     1.  The transferor provides a receipt or certificate from
384the department to the transferee showing that the transferor is
385not liable for taxes, interest, or penalties from the operation
386of the business; and
387     2.  The department finds that the transferor is not liable
388for taxes, interest, or penalties after an audit of the
389transferor's books and records. The audit may be requested by
390the transferee or the transferor. The department may charge a
391fee for the cost of the audit if it has not issued a notice of
392intent to audit by the time the request for the audit is
393received.
394     (b)  A transferee may withhold a portion of the
395consideration for a business or stock of goods to pay the taxes,
396interest, or penalties owed to the state from the operation of
397the business. The transferee shall pay the withheld
398consideration to the state within 30 days after the date of the
399transfer. If the consideration withheld is less than the
400transferor's liability, the transferor remains liable for the
401deficiency.
402     (c)  A transferee who acquires the business or stock of
403goods and fails to pay the taxes, interest, or penalties due may
404not engage in any business in the state until the taxes,
405interest, or penalties are paid. The Department of Legal Affairs
406may seek an injunction at the request of the department to
407prevent further business activity until such tax, interest, or
408penalties are paid. A temporary injunction enjoining further
409business activity may be granted by a court without notice.
410     (5)  The transferee, or transferees acting in concert, of
411more than 50 percent of a business or stock of goods are jointly
412and severally liable with the transferor for the payment of the
413taxes, interest, or penalties owed to the state from the
414operation of the business by the transferor.
415     (6)  The maximum liability of a transferee pursuant to this
416section is equal to the fair market value of the property
417transferred or the total purchase price, whichever is greater.
418     (7)  After notice by the department of transferee liability
419under this section, the transferee has 60 days within which to
420file an action as provided in chapter 72.
421     (8)  This section does not impose liability on a transferee
422of a business or stock of goods pursuant to an involuntary
423transfer.
424     (9)  The department may adopt rules necessary to administer
425and enforce this section.
426     Section 8.  Notwithstanding section 25 of chapter 2009-82,
427Laws of Florida, subsection (3) of section 218.12, Florida
428Statutes, as created by section 24 of chapter 2009-82, Laws of
429Florida, shall not expire July 1, 2010, but is reenacted and
430amended to read:
431     218.12  Appropriations to offset reductions in ad valorem
432tax revenue in fiscally constrained counties.-
433     (3)  In determining the reductions in ad valorem tax
434revenues occurring as a result of the implementation of the
435revisions to Art. VII of the State Constitution approved in the
436special election held on January 29, 2008, the value of
437assessments reduced pursuant to s. 4(d)(8)a., Art. VII of the
438State Constitution shall include only the reduction in taxable
439value for homesteads established January 1 of the year in which
440the determination is being made, 2009.
441     Section 9.  For fiscal year 2010-2011, 25 full-time
442equivalent positions, with associated salary rate of $817,448,
443are authorized. Also for fiscal year 2010-2011, the sums of
444$1,445,100 in recurring funds and $96,925 in nonrecurring funds
445from the General Revenue Fund are appropriated to the Department
446of Revenue for the purpose of conducting audits and tax
447collection services in the department.
448     Section 10.  Except as otherwise expressly provided in this
449act, this act shall take effect upon becoming a law.


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