HB 7125

1
A bill to be entitled
2An act relating to criminal penalties for violations of
3tax statutes; amending s. 212.07, F.S.; conforming a
4cross-reference to changes made by the act; imposing an
5additional monetary penalty on a dealer for willfully
6failing to collect certain taxes or fees after notice of a
7duty to collect the taxes or fees by the Department of
8Revenue; specifying a schedule of criminal penalties
9relating to amounts not collected; defining the term
10"willful"; requiring the department to send written notice
11of the duty to register by certain specified means;
12amending s. 212.12, F.S.; revising provisions imposing an
13additional monetary penalty on persons making false or
14fraudulent returns with a willful intent to evade payment
15of taxes or fees; specifying a schedule of criminal
16penalties relating to amounts not paid; deleting
17provisions relating to criminal penalties for failing to
18register as a dealer or to collect tax after notice from
19the Department of Revenue; amending s. 212.18, F.S.;
20revising requirements for registration of dealers;
21revising penalties for failing or refusing to register as
22a dealer; providing a criminal penalty for willfully
23failing to register as a dealer after notice by the
24Department of Revenue; defining the term "willful";
25requiring the department to send written notice of the
26duty to register by certain specified means; providing an
27effective date.
28
29Be It Enacted by the Legislature of the State of Florida:
30
31     Section 1.  Subsections (1) and (3) of section 212.07,
32Florida Statutes, are amended to read:
33     212.07  Sales, storage, use tax; tax added to purchase
34price; dealer not to absorb; liability of purchasers who cannot
35prove payment of the tax; penalties; general exemptions.-
36     (1)(a)  The privilege tax herein levied measured by retail
37sales shall be collected by the dealers from the purchaser or
38consumer.
39     (b)  A resale must be in strict compliance with s. 212.18
40and the rules and regulations, and any dealer who makes a sale
41for resale which is not in strict compliance with s. 212.18 and
42the rules and regulations shall himself or herself be liable for
43and pay the tax. Any dealer who makes a sale for resale shall
44document the exempt nature of the transaction, as established by
45rules promulgated by the department, by retaining a copy of the
46purchaser's resale certificate. In lieu of maintaining a copy of
47the certificate, a dealer may document, prior to the time of
48sale, an authorization number provided telephonically or
49electronically by the department, or by such other means
50established by rule of the department. The dealer may rely on a
51resale certificate issued pursuant to s. 212.18(3)(d)(c), valid
52at the time of receipt from the purchaser, without seeking
53annual verification of the resale certificate if the dealer
54makes recurring sales to a purchaser in the normal course of
55business on a continual basis. For purposes of this paragraph,
56"recurring sales to a purchaser in the normal course of
57business" refers to a sale in which the dealer extends credit to
58the purchaser and records the debt as an account receivable, or
59in which the dealer sells to a purchaser who has an established
60cash or C.O.D. account, similar to an open credit account. For
61purposes of this paragraph, purchases are made from a selling
62dealer on a continual basis if the selling dealer makes, in the
63normal course of business, sales to the purchaser no less
64frequently than once in every 12-month period. A dealer may,
65through the informal protest provided for in s. 213.21 and the
66rules of the Department of Revenue, provide the department with
67evidence of the exempt status of a sale. Consumer certificates
68of exemption executed by those exempt entities that were
69registered with the department at the time of sale, resale
70certificates provided by purchasers who were active dealers at
71the time of sale, and verification by the department of a
72purchaser's active dealer status at the time of sale in lieu of
73a resale certificate shall be accepted by the department when
74submitted during the protest period, but may not be accepted in
75any proceeding under chapter 120 or any circuit court action
76instituted under chapter 72.
77     (c)  Unless the purchaser of tangible personal property
78that is incorporated into tangible personal property
79manufactured, produced, compounded, processed, or fabricated for
80one's own use and subject to the tax imposed under s.
81212.06(1)(b) or is purchased for export under s. 212.06(5)(a)1.
82extends a certificate in compliance with the rules of the
83department, the dealer shall himself or herself be liable for
84and pay the tax.
85     (3)(a)  A Any dealer who fails, neglects, or refuses to
86collect the tax or fees imposed under this chapter herein
87provided, either by himself or herself or through the dealer's
88agents or employees, is, in addition to the penalty of being
89liable for and paying the tax himself or herself, commits guilty
90of a misdemeanor of the first degree, punishable as provided in
91s. 775.082 or s. 775.083.
92     (b)  A dealer who willfully fails to collect a tax or fee
93after the department provides notice of the duty to collect the
94tax or fee is liable for a specific penalty of 100 percent of
95the uncollected tax or fee. This penalty is in addition to any
96other penalty that may be imposed by law. A dealer who willfully
97fails to collect taxes or fees totaling:
98     1.  Less than $300:
99     a.  For a first offense, commits a misdemeanor of the
100second degree, punishable as provided in s. 775.082 or s.
101775.083.
102     b.  For a second offense, commits a misdemeanor of the
103first degree, punishable as provided in s. 775.082 or s.
104775.083.
105     c.  For a third or subsequent offense, commits a felony of
106the third degree, punishable as provided in s. 775.082, s.
107775.083, or s. 775.084.
108     2.  An amount equal to $300 or more, but less than $20,000,
109commits a felony of the third degree, punishable as provided in
110s. 775.082, s. 775.083, or s. 775.084.
111     3.  An amount equal to $20,000 or more, but less than
112$100,000, commits a felony of the second degree, punishable as
113provided in s. 775.082, s. 775.083, or s. 775.084.
114     4.  An amount equal to $100,000 or more, commits a felony
115of the first degree, punishable as provided in s. 775.082, s.
116775.083, or s. 775.084.
117     (c)  As used in this subsection, the term "willful" means a
118voluntary and intentional violation of a known legal duty.
119     (d)  The department shall give written notice of the duty
120to collect taxes or fees to the dealer by personal service, by
121sending notice to the dealer's last known address by registered
122mail, or by both personal service and mail.
123     Section 2.  Paragraph (d) of subsection (2) of section
124212.12, Florida Statutes, is amended to read:
125     212.12  Dealer's credit for collecting tax; penalties for
126noncompliance; powers of Department of Revenue in dealing with
127delinquents; brackets applicable to taxable transactions;
128records required.-
129     (2)
130     (d)  A Any person who makes a false or fraudulent return
131with a willful intent to evade payment of any tax or fee imposed
132under this chapter is; any person who, after the department's
133delivery of a written notice to the person's last known address
134specifically alerting the person of the requirement to register
135the person's business as a dealer, intentionally fails to
136register the business; and any person who, after the
137department's delivery of a written notice to the person's last
138known address specifically alerting the person of the
139requirement to collect tax on specific transactions,
140intentionally fails to collect such tax, shall, in addition to
141the other penalties provided by law, be liable for a specific
142penalty of 100 percent of any unreported or any uncollected tax
143or fee. This penalty is in addition to any other penalty
144provided by law. A person who makes a false or fraudulent return
145with a willful intent to evade payment of taxes or fees
146totaling:
147     1.  Less than $300:
148     a.  For a first offense, commits a misdemeanor of the
149second degree, punishable as provided in s. 775.082 or s.
150775.083.
151     b.  For a second offense, commits a misdemeanor of the
152first degree, punishable as provided in s. 775.082 or s.
153775.083.
154     c.  For a third or subsequent offense, commits a felony of
155the third degree, punishable as provided in s. 775.082, s.
156775.083, or s. 775.084.
157     2.  An amount equal to $300 or more, but less than $20,000,
158commits a felony of the third degree, punishable as provided in
159s. 775.082, s. 775.083, or s. 775.084.
160     3.  An amount equal to $20,000 or more, but less than
161$100,000, commits a felony of the second degree, punishable as
162provided in s. 775.082, s. 775.083, or s. 775.084.
163     4.  An amount equal to $100,000 or more, commits a felony
164of the first degree, punishable and, upon conviction, for fine
165and punishment as provided in s. 775.082, s. 775.083, or s.
166775.084. Delivery of written notice may be made by certified
167mail, or by the use of such other method as is documented as
168being necessary and reasonable under the circumstances. The
169civil and criminal penalties imposed herein for failure to
170comply with a written notice alerting the person of the
171requirement to register the person's business as a dealer or to
172collect tax on specific transactions shall not apply if the
173person timely files a written challenge to such notice in
174accordance with procedures established by the department by rule
175or the notice fails to clearly advise that failure to comply
176with or timely challenge the notice will result in the
177imposition of the civil and criminal penalties imposed herein.
178     1.  If the total amount of unreported or uncollected taxes
179or fees is less than $300, the first offense resulting in
180conviction is a misdemeanor of the second degree, the second
181offense resulting in conviction is a misdemeanor of the first
182degree, and the third and all subsequent offenses resulting in
183conviction is a misdemeanor of the first degree, and the third
184and all subsequent offenses resulting in conviction are felonies
185of the third degree.
186     2.  If the total amount of unreported or uncollected taxes
187or fees is $300 or more but less than $20,000, the offense is a
188felony of the third degree.
189     3.  If the total amount of unreported or uncollected taxes
190or fees is $20,000 or more but less than $100,000, the offense
191is a felony of the second degree.
192     4.  If the total amount of unreported or uncollected taxes
193or fees is $100,000 or more, the offense is a felony of the
194first degree.
195     Section 3.  Subsection (3) of section 212.18, Florida
196Statutes, is amended to read:
197     212.18  Administration of law; registration of dealers;
198rules.-
199     (3)(a)  Every person desiring to engage in or conduct
200business in this state as a dealer, as defined in this chapter,
201or to lease, rent, or let or grant licenses in living quarters
202or sleeping or housekeeping accommodations in hotels, apartment
203houses, roominghouses, or tourist or trailer camps that are
204subject to tax under s. 212.03, or to lease, rent, or let or
205grant licenses in real property, as defined in this chapter, and
206every person who sells or receives anything of value by way of
207admissions, must file with the department an application for a
208certificate of registration for each place of business. The
209application must include, showing the names of the persons who
210have interests in the such business and their residences, the
211address of the business, and such other data reasonably required
212by as the department may reasonably require. However, owners and
213operators of vending machines or newspaper rack machines are
214required to obtain only one certificate of registration for each
215county in which such machines are located. The department, by
216rule, may authorize a dealer that uses independent sellers to
217sell its merchandise to remit tax on the retail sales price
218charged to the ultimate consumer in lieu of having the
219independent seller register as a dealer and remit the tax. The
220department may appoint the county tax collector as the
221department's agent to accept applications for registrations. The
222application must be made to the department before the person,
223firm, copartnership, or corporation may engage in such business,
224and it must be accompanied by a registration fee of $5. However,
225a registration fee is not required to accompany an application
226to engage in or conduct business to make mail order sales. The
227department may waive the registration fee for applications
228submitted through the department's Internet registration
229process.
230     (b)  The department, upon receipt of such application,
231shall will grant to the applicant a separate certificate of
232registration for each place of business, which certificate may
233be canceled by the department or its designated assistants for
234any failure by the certificateholder to comply with any of the
235provisions of this chapter. The certificate is not assignable
236and is valid only for the person, firm, copartnership, or
237corporation to which issued. The certificate must be placed in a
238conspicuous place in the business or businesses for which it is
239issued and must be displayed at all times. Except as provided in
240this subsection, a no person may not shall engage in business as
241a dealer or in leasing, renting, or letting of or granting
242licenses in living quarters or sleeping or housekeeping
243accommodations in hotels, apartment houses, roominghouses,
244tourist or trailer camps, or real property or as hereinbefore
245defined, nor shall any person sell or receive anything of value
246by way of admissions, without a valid first having obtained such
247a certificate. A or after such certificate has been canceled; no
248person may not shall receive a any license from any authority
249within the state to engage in any such business without a valid
250first having obtained such a certificate or after such
251certificate has been canceled. A person may not engage The
252engaging in the business of selling or leasing tangible personal
253property or services or as a dealer; engage, as defined in this
254chapter, or the engaging in leasing, renting, or letting of or
255granting licenses in living quarters or sleeping or housekeeping
256accommodations in hotels, apartment houses, roominghouses, or
257tourist or trailer camps that are taxable under this chapter, or
258real property;, or engage the engaging in the business of
259selling or receiving anything of value by way of admissions,
260without a valid such certificate first being obtained or after
261such certificate has been canceled by the department, is
262prohibited.
263     (c)1.  A The failure or refusal of any person who engages
264in acts requiring a certificate of registration under this
265subsection and who fails or refuses to register, commits, firm,
266copartnership, or corporation to so qualify when required
267hereunder is a misdemeanor of the first degree, punishable as
268provided in s. 775.082 or s. 775.083. Such acts are, or subject
269to injunctive proceedings as provided by law. A person who
270engages in acts requiring a certificate of registration and who
271fails or refuses to register is also subject Such failure or
272refusal also subjects the offender to a $100 initial
273registration fee in lieu of the $5 registration fee required by
274authorized in paragraph (a). However, the department may waive
275the increase in the registration fee if it finds is determined
276by the department that the failure to register was due to
277reasonable cause and not to willful negligence, willful neglect,
278or fraud.
279     2.  A person who willfully fails to register after the
280department provides notice of the duty to register as a dealer
281commits a felony of the third degree, punishable as provided in
282s. 775.082, s. 775.083, or s. 775.084.
283     a.  As used in this subsection, the term "willful" means a
284voluntary and intentional violation of a known legal duty.
285     b.  The department shall give written notice of the duty to
286register to the person by personal service, by sending notice by
287registered mail to the person's last known address, or by both
288personal service and mail.
289     (d)(c)  In addition to the certificate of registration, the
290department shall provide to each newly registered dealer an
291initial resale certificate that will be valid for the remainder
292of the period of issuance. The department shall provide each
293active dealer with an annual resale certificate. For purposes of
294this section, "active dealer" means a person who is currently
295registered with the department and who is required to file at
296least once during each applicable reporting period.
297     (e)(d)  The department may revoke a any dealer's
298certificate of registration if when the dealer fails to comply
299with this chapter. Prior to revocation of a dealer's certificate
300of registration, the department must schedule an informal
301conference at which the dealer may present evidence regarding
302the department's intended revocation or enter into a compliance
303agreement with the department. The department must notify the
304dealer of its intended action and the time, place, and date of
305the scheduled informal conference by written notification sent
306by United States mail to the dealer's last known address of
307record furnished by the dealer on a form prescribed by the
308department. The dealer is required to attend the informal
309conference and present evidence refuting the department's
310intended revocation or enter into a compliance agreement with
311the department which resolves the dealer's failure to comply
312with this chapter. The department shall issue an administrative
313complaint under s. 120.60 if the dealer fails to attend the
314department's informal conference, fails to enter into a
315compliance agreement with the department resolving the dealer's
316noncompliance with this chapter, or fails to comply with the
317executed compliance agreement.
318     (f)(e)  As used in this paragraph, the term "exhibitor"
319means a person who enters into an agreement authorizing the
320display of tangible personal property or services at a
321convention or a trade show. The following provisions apply to
322the registration of exhibitors as dealers under this chapter:
323     1.  An exhibitor whose agreement prohibits the sale of
324tangible personal property or services subject to the tax
325imposed in this chapter is not required to register as a dealer.
326     2.  An exhibitor whose agreement provides for the sale at
327wholesale only of tangible personal property or services subject
328to the tax imposed in this chapter must obtain a resale
329certificate from the purchasing dealer but is not required to
330register as a dealer.
331     3.  An exhibitor whose agreement authorizes the retail sale
332of tangible personal property or services subject to the tax
333imposed in this chapter must register as a dealer and collect
334the tax imposed under this chapter on such sales.
335     4.  Any exhibitor who makes a mail order sale pursuant to
336s. 212.0596 must register as a dealer.
337
338Any person who conducts a convention or a trade show must make
339their exhibitor's agreements available to the department for
340inspection and copying.
341     Section 4.  This act shall take effect upon becoming a law.


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