Florida Senate - 2011 COMMITTEE AMENDMENT Bill No. SB 1236 Barcode 253732 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Commerce and Tourism (Detert) recommended the following: 1 Senate Amendment (with title amendment) 2 3 4 Delete everything after the enacting clause 5 and insert: 6 Section 1. Section 220.11, Florida Statutes, is amended to 7 read: 8 220.11 Tax imposed.— 9 (1) A tax measured by net income is hereby imposed on every 10 taxpayer for each taxable year commencing on or after January 1, 11 1972, and for each taxable year which begins before and ends 12 after January 1, 1972, for the privilege of conducting business, 13 earning or receiving income in this state, or being a resident 14 or citizen of this state. Such tax shall be in addition to all 15 other occupation, excise, privilege, and property taxes imposed 16 by this state or by any political subdivision thereof, including 17 any municipality or other district, jurisdiction, or authority 18 of this state. 19 (2) The tax imposed by this section shall be an amount 20 equal to 4 1/251/2percent of the taxpayer’s net income for 21 the taxable year. 22 (3) The tax imposed by this section, for taxpayers 23 determining taxable income under s. 220.13(2)(k), shall be an 24 amount equal to 2.73.3percent of the taxpayer’s net income for 25 the taxable year. 26 (4) In the case of a taxpayer to which s. 55 of the 27 Internal Revenue Code is applied for the taxable year, the 28 amount of tax determined under this section shall be the greater 29 of the tax determined under subsection (2) without the 30 application of s. 55 of the Internal Revenue Code or the tax 31 determined under subsection (3). 32 Section 2. Section 220.63, Florida Statutes, is amended to 33 read: 34 220.63 Franchise tax imposed on banks and savings 35 associations.— 36 (1) A franchise tax measured by net income is hereby 37 imposed on every bank and savings association for each taxable 38 year commencing on or after January 1, 1973, and for each 39 taxable year which begins before and ends after January 1, 1973. 40 The franchise tax base of any bank for a taxable year which 41 begins before and ends after January 1, 1972, shall be prorated 42 in the manner prescribed for the proration of net income under 43 s. 220.12(2). 44 (2) The tax imposed by this section shall be an amount 45 equal to 4 1/251/2percent of the franchise tax base of the 46 bank or savings association for the taxable year. 47 (3) For purposes of this part, the franchise tax base shall 48 be adjusted federal income, as defined in s. 220.13, apportioned 49 to this state, plus nonbusiness income allocated to this state 50 pursuant to s. 220.16, less the deduction allowed in subsection 51 (5) and less $5,000. 52 (4) Nothing contained in this part shall be construed to 53 prohibit a savings association, in computing its franchise tax 54 base, from claiming the maximum deduction allowed under s. 593 55 of the Internal Revenue Code. 56 (5) There shall be allowed as a deduction from adjusted 57 federal income, to the extent not deductible in determining 58 federal taxable income or subtracted pursuant to s. 59 220.13(1)(b)2., the eligible net income of an international 60 banking facility determined as follows: 61 (a) The “eligible net income of an international banking 62 facility” is the amount remaining after subtracting from the 63 eligible gross income the applicable expenses. 64 (b) The “eligible gross income” is the gross income derived 65 by an international banking facility from: 66 1. Making, arranging for, placing, or servicing loans to 67 foreign persons, provided, however, that in the case of a 68 foreign person which is an individual, a foreign branch of a 69 domestic corporation (other than a bank or savings association), 70 or a foreign corporation or a foreign partnership which is 80 71 percent or more owned or controlled, either directly or 72 indirectly, by one or more domestic corporations (other than 73 banks or savings associations), domestic partnerships, or 74 resident individuals, substantially all the proceeds of the loan 75 are for use outside the United States; 76 2. Making or placing deposits with foreign persons which 77 are banks or savings associations or foreign branches of banks 78 or savings associations, including foreign subsidiaries or 79 foreign branches of the taxpayer, or with other international 80 banking facilities; or 81 3. Entering into foreign exchange trading or hedging 82 transactions in connection with the activities described in this 83 paragraph. 84 85 However, the term “eligible gross income” does not include any 86 amount derived by an international banking facility from making, 87 arranging for, placing, or servicing loans or making or placing 88 deposits if the loans or deposits of funds are secured by 89 mortgages, deeds of trust, or other liens upon real property 90 located in this state. 91 (c) The “applicable expenses” are any expenses or other 92 deductions attributable, directly or indirectly, to the eligible 93 gross income described in paragraph (b). 94 Section 3. Reduction of corporate income tax and franchise 95 tax rates.— 96 (1) As used in this section, the term “real growth in sales 97 tax revenues” means collections in excess of the prior year’s 98 collections adjusted for changes in population and price level 99 calculated as the percentage change in sales tax collections 100 less: 101 (a) The annual percentage change in the Consumer Price 102 Index – All Urban Consumers issued by the United State 103 Department of Labor for the most recent 12-month period ending 104 June 30; and 105 (b) The annual percentage change in the official estimate 106 of the Florida resident population reported by the Office of 107 Economic and Demographic Research on April 1. 108 (2) When the real growth in sales tax revenues distributed 109 in any fiscal year pursuant to s. 212.20, Florida Statutes, to 110 the General Revenue Fund exceeds the rate of 1.2 percent in per 111 capita sales tax revenues over the previous fiscal year, for 112 every 0.005 percent of excess, the tax rates in ss. 220.11(2) 113 and 220.63(2), Florida Statutes, shall be reduced by 0.25 114 percent and the tax rate in s. 220.11(3), Florida Statutes, 115 shall be reduced 0.15 percent. The reduced rates shall apply to 116 tax years beginning on or after January 1 following the fiscal 117 years having the increase in sales tax revenues. 118 Section 4. Paragraph (u) of subsection (8) of section 119 213.053, Florida Statutes, as amended by section 3 of chapter 120 2010-280, Laws of Florida, is amended to read: 121 213.053 Confidentiality and information sharing.— 122 (8) Notwithstanding any other provision of this section, 123 the department may provide: 124 (u) Information relative to section 6 of this act and ss. 125 211.0251, 212.1831, 220.1875, 561.1211, 624.51055, and 1002.395 126 to the Department of Education and the Division of Alcoholic 127 Beverages and Tobacco in the conduct of official business. 128 Section 5. Paragraphs (b) and (c) of subsection (5), 129 paragraphs (b) and (c) of subsection (13), and subsection (15) 130 of section 1002.395, Florida Statutes, are amended to read: 131 1002.395 Florida Tax Credit Scholarship Program.— 132 (5) SCHOLARSHIP FUNDING TAX CREDITS; LIMITATIONS.— 133 (b) A taxpayer may submit an application to the department 134 for a tax credit or credits under one or more of section 6 of 135 this act, s. 211.0251, s. 212.1831, s. 220.1875, s. 561.1211, or 136 s. 624.51055. The taxpayer shall specify in the application each 137 tax for which the taxpayer requests a credit and the applicable 138 taxable year for a credit under s. 220.1875 or s. 624.51055 or 139 the applicable state fiscal year for a credit under section 6 of 140 this act, s. 211.0251, s. 212.1831, or s. 561.1211. The 141 department shall approve tax credits on a first-come, first 142 served basis and must obtain the division’s approval prior to 143 approving a tax credit under section 6 of this act or s. 144 561.1211. 145 (c) If a tax credit approved under paragraph (b) is not 146 fully used within the specified state fiscal year for credits 147 under section 6 of this act, s. 211.0251, s. 212.1831, or s. 148 561.1211 or against taxes due for the specified taxable year for 149 credits under s. 220.1875 or s. 624.51055 because of 150 insufficient tax liability on the part of the taxpayer, the 151 unused amount may be carried forward for a period not to exceed 152 3 years. However, any taxpayer that seeks to carry forward an 153 unused amount of tax credit must submit an application to the 154 department for approval of the carryforward tax credit in the 155 year that the taxpayer intends to use the carryforward. The 156 department must obtain the division’s approval prior to 157 approving the carryforward of a tax credit under s. 561.1211. 158 (13) ADMINISTRATION; RULES.— 159 (b) The department shall adopt rules necessary to 160 administer this section, section 6 of this act, and ss. 161 211.0251, 212.1831, 220.1875, 561.1211, and 624.51055, including 162 rules establishing application forms, procedures governing the 163 approval of tax credits and carryforward tax credits under 164 subsection (5), and procedures to be followed by taxpayers when 165 claiming approved tax credits on their returns. 166 (c) The division shall adopt rules necessary to administer 167 its responsibilities under this section, section 6 of this act, 168 and s. 561.1211. 169 (15) PRESERVATION OF CREDIT.—If any provision or portion of 170 this section, section 6 of this act, s. 211.0251, s. 212.1831, 171 s. 220.1875, s. 561.1211, or s. 624.51055 or the application 172 thereof to any person or circumstance is held unconstitutional 173 by any court or is otherwise declared invalid, the 174 unconstitutionality or invalidity shall not affect any credit 175 earned under section 6 of this act, s. 211.0251, s. 212.1831, s. 176 220.1875, s. 561.1211, or s. 624.51055 by any taxpayer with 177 respect to any contribution paid to an eligible nonprofit 178 scholarship-funding organization before the date of a 179 determination of unconstitutionality or invalidity. Such credit 180 shall be allowed at such time and in such a manner as if a 181 determination of unconstitutionality or invalidity had not been 182 made, provided that nothing in this subsection by itself or in 183 combination with any other provision of law shall result in the 184 allowance of any credit to any taxpayer in excess of one dollar 185 of credit for each dollar paid to an eligible nonprofit 186 scholarship-funding organization. 187 Section 6. Credit for contributions to eligible nonprofit 188 scholarship-funding organizations.—There is allowed a credit of 189 100 percent of an eligible contribution made to an eligible 190 nonprofit scholarship-funding organization under s. 1002.395, 191 Florida Statues, against any tax or surcharge due under chapter 192 210, Florida Statutes. However, a credit allowed under this 193 section may not exceed 90 percent of the tax due on the return 194 on which the credit is taken. For purposes of determining the 195 distribution of tax revenue under chapter 210, Florida Statutes, 196 the Division of Alcoholic Beverages and Tobacco of the 197 Department of Business and Professional Regulation shall 198 disregard any tax credits allowed under this section to ensure 199 that the distribution of tax revenues to the General Revenue 200 Fund is the only distribution that is reduced as a result of the 201 tax credits. The provisions of s. 1002.395, Florida Statutes, 202 apply to the credits authorized under this section. 203 Section 7. (1) Notwithstanding the limitations in s. 204 1002.395(5)(d), Florida Statutes, a taxpayer who has an unused 205 amount of corporate income tax credits or franchise tax credits 206 which will not be used by the taxpayer as a result of this act 207 is entitled to: 208 (a) Exchange the unused amount of corporate income tax 209 credits or franchise tax credits for credits against other taxes 210 which were allowed by the statute allowing the credit against 211 the corporate income tax; or 212 (b) Sell or transfer the unused amount of corporate income 213 tax credits or franchise tax credits to one or more taxpayers 214 who may then use or exchange the credits. 215 (2) This act does not alter the tax credit cap amount that 216 would otherwise apply in a state fiscal year. 217 (3) The Department of Revenue is authorized, and all 218 conditions are deemed met, to adopt emergency rules under ss. 219 120.536(1) and 120.54(4), Florida Statutes, to administer this 220 section. The emergency rules shall remain in effect for 6 months 221 after adoption and may be renewed during the pendency of 222 procedures to adopt rules addressing the subject of the 223 emergency rules. Such rules may include, but are not limited to, 224 rules establishing the process for exchanging, selling, or 225 transferring unused credit amounts, including notice and 226 tracking requirements. 227 Section 8. The Department of Revenue is authorized, and all 228 conditions are deemed met, to adopt emergency rules pursuant to 229 ss. 120.536(1) and 120.54, Florida Statutes, to administer this 230 act. The emergency rules shall remain in effect for 6 months 231 after adoption and may be renewed during the pendency of 232 procedures to adopt permanent rules addressing the subject of 233 the emergency rules. 234 Section 9. This act shall take effect January 1, 2012, and 235 shall apply to tax years beginning on or after that date. 236 237 ================= T I T L E A M E N D M E N T ================ 238 And the title is amended as follows: 239 Delete everything before the enacting clause 240 and insert: 241 A bill to be entitled 242 An act relating to state revenues; amending s. 220.11, 243 F.S.; reducing the corporate income tax rate; amending 244 s. 220.63, F.S.; reducing the franchise tax rate; 245 providing for additional reductions in the corporate 246 income tax rate and franchise tax rate contingent upon 247 increases in the rate of growth of sales tax revenues; 248 amending s. 213.053, F.S.; authorizing the Department 249 of Revenue to provide the Department of Education and 250 the Division of Alcoholic Beverages and Tobacco of the 251 Department of Business and Professional Regulation 252 with information relative to tax credits against taxes 253 or surcharges on tobacco products for contributions to 254 eligible nonprofit scholarship-funding organizations; 255 amending s. 1002.395, F.S.; specifying additional 256 taxes against which a taxpayer may claim a credit for 257 an eligible contribution to an eligible nonprofit 258 scholarship-funding organization to include taxes or 259 surcharges on tobacco products; authorizing a taxpayer 260 to receive a tax credit against taxes or surcharges on 261 tobacco products for an eligible contribution to an 262 eligible nonprofit scholarship-funding organization; 263 limiting the amount of the tax credit to 90 percent of 264 the taxpayer’s tax liability for taxes or surcharges 265 on tobacco products; providing that the distribution 266 of tax revenues to the General Revenue Fund is the 267 only distribution that is reduced as a result of the 268 tax credits; authorizing a taxpayer to exchange unused 269 corporate income tax credits or franchise tax credits 270 for other tax credits under certain circumstances; 271 authorizing a taxpayer to sell or transfer unused 272 corporate income tax credits or franchise tax credits 273 under certain circumstances; authorizing the 274 Department of Revenue to adopt emergency rules 275 relating to the exchange, sale, or transfer of 276 corporate income tax credits or franchise tax credits; 277 authorizing the Department of Revenue to adopt 278 emergency rules to administer the act; providing for 279 application of the act; providing an effective date.