Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. SB 1236
       
       
       
       
       
       
                                Barcode 253732                          
       
                              LEGISLATIVE ACTION                        
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       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 1/2 5 1/2 percent 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 2.7 3.3 percent 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 1/2 5 1/2 percent 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.