Florida Senate - 2013 SB 1832
By the Committee on Appropriations
576-03235-13 20131832__
1 A bill to be entitled
2 An act relating to taxation; amending s. 320.04, F.S.;
3 reducing the service charges that are collected with
4 an application for the original issuance, duplicate
5 issuance, or transfer of certain specified
6 registration certificates; amending s. 320.06, F.S.;
7 reducing a fee collected for a motor vehicle
8 registration; amending ss. 320.0804 and 320.08046,
9 F.S.; reducing a surcharge on a license tax;
10 reenacting s. 320.0807(4), F.S., relating to special
11 vehicle license plates for the Governor and federal
12 and state legislators, to incorporate the amendment
13 made to s. 320.06, F.S., in a reference thereto;
14 amending s. 624.509, F.S.; deleting a credit based on
15 the amount paid in salaries to employees within this
16 state; amending ss. 624.5091 and 624.51055, F.S.;
17 revising provisions to conform to changes made by the
18 act; providing effective dates.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Section 320.04, Florida Statutes, is amended to
23 read:
24 320.04 Registration service charge.—
25 (1)(a) There shall be a service charge of $2.50 $5 for each
26 application which is handled in connection with original
27 issuance, duplicate issuance, or transfer of any license plate,
28 mobile home sticker, or validation sticker or with transfer or
29 duplicate issuance of any registration certificate, which shall
30 . Of that amount, $2.50 shall be deposited into the General
31 Revenue Fund, and the remainder shall be retained by the
32 department or by the tax collector, as the case may be, as other
33 fees accruing to those offices.
34 (b) There shall also be a service charge of $1 $3 for the
35 issuance of each license plate validation sticker, vessel decal,
36 and mobile home sticker issued from an automated vending
37 facility or printer dispenser machine, which is payable to the
38 department, which. Of that amount, $1 shall be used to provide
39 for automated vending facilities or printer dispenser machines
40 used to dispense such stickers and decals by each tax
41 collector’s or license tag agent’s employee. The remaining $2
42 shall be deposited into the General Revenue Fund.
43 (c) The tax collector may impose an additional service
44 charge of not more than 50 cents on any transaction specified in
45 paragraph (a) or paragraph (b), or on any transaction specified
46 in s. 319.32(2)(a) or s. 328.48 if such transaction occurs at
47 any tax collector’s branch office.
48 Section 2. Section 320.06, Florida Statutes, is amended to
49 read:
50 320.06 Registration certificates, license plates, and
51 validation stickers generally.—
52 (1)(a) Upon the receipt of an initial application for
53 registration and payment of the appropriate license tax and
54 other fees required by law, the department shall assign to the
55 motor vehicle a registration license number consisting of
56 letters and numerals or numerals and issue to the owner or
57 lessee a certificate of registration and one registration
58 license plate, unless two plates are required for display by s.
59 320.0706, for each vehicle so registered.
60 (b) Registration license plates bearing a graphic symbol
61 and the alphanumeric system of identification shall be issued
62 for a 10-year period. At the end of that 10-year period, upon
63 renewal, the plate shall be replaced. The department shall
64 extend the scheduled license plate replacement date from a 6
65 year period to a 10-year period. The fee for such replacement is
66 $28, $2.80 of which shall be paid each year before the plate is
67 replaced, to be credited towards the next $28 replacement fee.
68 The fees shall be deposited into the Highway Safety Operating
69 Trust Fund. A credit or refund may not be given for any prior
70 years’ payments of such prorated replacement fee if the plate is
71 replaced or surrendered before the end of the 10-year period,
72 except that a credit may be given if a registrant is required by
73 the department to replace a license plate under s.
74 320.08056(8)(a). With each license plate, a validation sticker
75 shall be issued showing the owner’s birth month, license plate
76 number, and the year of expiration or the appropriate renewal
77 period if the owner is not a natural person. The validation
78 sticker shall be placed on the upper right corner of the license
79 plate. Such license plate and validation sticker shall be issued
80 based on the applicant’s appropriate renewal period. The
81 registration period is 12 months, the extended registration
82 period is 24 months, and all expirations occur based on the
83 applicant’s appropriate registration period. A vehicle with an
84 apportioned registration shall be issued an annual license plate
85 and a cab card that denote the declared gross vehicle weight for
86 each apportioned jurisdiction in which the vehicle is authorized
87 to operate.
88 (c) Registration license plates equipped with validation
89 stickers subject to the registration period are valid for not
90 more than 12 months and expire at midnight on the last day of
91 the registration period. A registration license plate equipped
92 with a validation sticker subject to the extended registration
93 period is valid for not more than 24 months and expires at
94 midnight on the last day of the extended registration period.
95 For each registration period after the one in which the metal
96 registration license plate is issued, and until the license
97 plate is required to be replaced, a validation sticker showing
98 the month and year of expiration shall be issued upon payment of
99 the proper license tax amount and fees and is valid for not more
100 than 12 months. For each extended registration period occurring
101 after the one in which the metal registration license plate is
102 issued and until the license plate is required to be replaced, a
103 validation sticker showing the year of expiration shall be
104 issued upon payment of the proper license tax amount and fees
105 and is valid for not more than 24 months. When license plates
106 equipped with validation stickers are issued in any month other
107 than the owner’s birth month or the designated registration
108 period for any other motor vehicle, the effective date shall
109 reflect the birth month or month and the year of renewal.
110 However, when a license plate or validation sticker is issued
111 for a period of less than 12 months, the applicant shall pay the
112 appropriate amount of license tax and the applicable fee under
113 s. 320.14 in addition to all other fees. Validation stickers
114 issued for vehicles taxed under s. 320.08(6)(a), for any company
115 that owns 250 vehicles or more, or for semitrailers taxed under
116 the provisions of s. 320.08(5)(a), for any company that owns 50
117 vehicles or more, may be placed on any vehicle in the fleet so
118 long as the vehicle receiving the validation sticker has the
119 same owner’s name and address as the vehicle to which the
120 validation sticker was originally assigned.
121 (2) The department shall provide the several tax collectors
122 and license plate agents with the necessary number of validation
123 stickers.
124 (3)(a) Registration license plates must be made of metal
125 specially treated with a retroreflection material, as specified
126 by the department. The registration license plate is designed to
127 increase nighttime visibility and legibility and must be at
128 least 6 inches wide and not less than 12 inches in length,
129 unless a plate with reduced dimensions is deemed necessary by
130 the department to accommodate motorcycles, mopeds, or similar
131 smaller vehicles. Validation stickers must also be treated with
132 a retroreflection material, must be of such size as specified by
133 the department, and must adhere to the license plate. The
134 registration license plate must be imprinted with a combination
135 of bold letters and numerals or numerals, not to exceed seven
136 digits, to identify the registration license plate number. The
137 license plate must be imprinted with the word “Florida” at the
138 top and the name of the county in which it is sold, the state
139 motto, or the words “Sunshine State” at the bottom. Apportioned
140 license plates must have the word “Apportioned” at the bottom
141 and license plates issued for vehicles taxed under s.
142 320.08(3)(d), (4)(m) or (n), (5)(b) or (c), or (14) must have
143 the word “Restricted” at the bottom. License plates issued for
144 vehicles taxed under s. 320.08(12) must be imprinted with the
145 word “Florida” at the top and the word “Dealer” at the bottom.
146 Manufacturer license plates issued for vehicles taxed under s.
147 320.08(12) must be imprinted with the word “Florida” at the top
148 and the word “Manufacturer” at the bottom. License plates issued
149 for vehicles taxed under s. 320.08(5)(d) or (e) must be
150 imprinted with the word “Wrecker” at the bottom. Any county may,
151 upon majority vote of the county commission, elect to have the
152 county name removed from the license plates sold in that county.
153 The state motto or the words “Sunshine State” shall be printed
154 in lieu thereof. A license plate issued for a vehicle taxed
155 under s. 320.08(6) may not be assigned a registration license
156 number, or be issued with any other distinctive character or
157 designation, that distinguishes the motor vehicle as a for-hire
158 motor vehicle.
159 (b) An additional fee of $.50 $1.50 shall be collected and
160 deposited into the Highway Safety Operating Trust Fund on each
161 motor vehicle registration or motor vehicle renewal registration
162 issued in this state in order for all license plates and
163 validation stickers to be fully treated with retroreflection
164 material. Of that amount, $1 shall be deposited into the General
165 Revenue Fund and 50 cents shall be deposited into the Highway
166 Safety Operating Trust Fund.
167 Section 3. Section 320.0804, Florida Statutes, is amended
168 to read:
169 320.0804 Surcharge on license tax; transportation trust
170 fund.—There is hereby levied and imposed on each license tax
171 imposed under s. 320.08, except those set forth in s.
172 320.08(11), a surcharge in the amount of $2 $4, which shall be
173 collected in the same manner as the license tax and. Of this
174 amount, $2 shall be deposited into the State Transportation
175 Trust Fund, and $2 shall be deposited into the General Revenue
176 Fund.
177 Section 4. Section 320.08046, Florida Statutes, is amended
178 to read:
179 320.08046 Surcharge on license tax.—There is levied on each
180 license tax imposed under s. 320.08, except those set forth in
181 s. 320.08(11), a surcharge in the amount of $1 $5.50, which
182 shall be collected in the same manner as the license tax and .
183 Of the proceeds of each license tax surcharge, $4.50 shall be
184 deposited into the General Revenue Fund and $1 shall be
185 deposited into the Grants and Donations Trust Fund in the
186 Department of Juvenile Justice to fund the juvenile crime
187 prevention programs and the community juvenile justice
188 partnership grants program.
189 Section 5. For the purpose of incorporating the amendment
190 made by this act to section 320.06, Florida Statutes, in a
191 reference thereto, subsection (4) of section 320.0807, Florida
192 Statutes, is reenacted to read:
193 320.0807 Special license plates for Governor and federal
194 and state legislators.—
195 (4) License plates purchased under subsection (1),
196 subsection (2), or subsection (3) shall be replaced by the
197 department at no cost, other than the fees required by ss.
198 320.04 and 320.06(3)(b), when the person to whom the plates have
199 been issued leaves the elective office with respect to which the
200 license plates were issued. Within 30 days after leaving office,
201 the person to whom the license plates have been issued shall
202 make application to the department for a replacement license
203 plate. The person may return the prestige license plates to the
204 department or may retain the plates as souvenirs. Upon receipt
205 of the replacement license plate, the person may not continue to
206 display on any vehicle the prestige license plate or plates
207 issued with respect to his or her former office.
208 Section 6. Subsections (5), (6), (7), (8), and (9) of
209 section 624.509, Florida Statutes, are amended to read:
210 624.509 Premium tax; rate and computation.—
211 (5)(a)1. There shall be allowed a credit against the net
212 tax imposed by this section equal to 15 percent of the amount
213 paid by an insurer in salaries to employees located or based
214 within this state and who are covered by the provisions of
215 chapter 443.
216 2. As an alternative to the credit allowed in subparagraph
217 1., an affiliated group of corporations which includes at least
218 one insurance company writing premiums in Florida may elect to
219 take a credit against the net tax imposed by this section in an
220 amount that may not exceed 15 percent of the salary of the
221 employees of the affiliated group of corporations who perform
222 insurance-related activities, are located or based within this
223 state, and are covered by chapter 443. For purposes of this
224 subparagraph, the term “affiliated group of corporations” means
225 two or more corporations that are entirely owned directly or
226 indirectly by a single corporation and that constitute an
227 affiliated group as defined in s. 1504(a) of the Internal
228 Revenue Code. The amount of credit allowed under this
229 subparagraph is limited to the combined Florida salary tax
230 credits allowed for all insurance companies that were members of
231 the affiliated group of corporations for the tax year ending
232 December 31, 2002, divided by the combined Florida taxable
233 premiums written by all insurance companies that were members of
234 the affiliated group of corporations for the tax year ending
235 December 31, 2002, multiplied by the combined Florida taxable
236 premiums of the affiliated group of corporations for the current
237 year. An affiliated group of corporations electing this
238 alternative calculation method must make such election on or
239 before August 1, 2005. The election of this alternative
240 calculation method is irrevocable and binding upon successors
241 and assigns of the affiliated group of corporations electing
242 this alternative. However, if a member of an affiliated group of
243 corporations acquires or merges with another insurance company
244 after the date of the irrevocable election, the acquired or
245 merged company is not entitled to the affiliated group election
246 and shall only be entitled to calculate the tax credit under
247 subparagraph 1.
248
249 In no event shall the salary paid to an employee by an
250 affiliated group of corporations be claimed as a credit by more
251 than one insurer or be counted more than once in an insurer’s
252 calculation of the credit as described in subparagraph 1. or
253 subparagraph 2. Only the portion of an employee’s salary paid
254 for the performance of insurance-related activities may be
255 included in the calculation of the premium tax credit in this
256 subsection.
257 (b) For purposes of this subsection:
258 1. The term “salaries” does not include amounts paid as
259 commissions.
260 2. The term “employees” does not include independent
261 contractors or any person whose duties require that the person
262 hold a valid license under the Florida Insurance Code, except
263 adjusters, managing general agents, and service representatives,
264 as defined in s. 626.015.
265 3. The term “net tax” means the tax imposed by this section
266 after applying the calculations and credits set forth in
267 subsection (4).
268 4. An affiliated group of corporations that created a
269 service company within its affiliated group on July 30, 2002,
270 shall allocate the salary of each service company employee
271 covered by contracts with affiliated group members to the
272 companies for which the employees perform services. The salary
273 allocation is based on the amount of time during the tax year
274 that the individual employee spends performing services or
275 otherwise working for each company over the total amount of time
276 the employee spends performing services or otherwise working for
277 all companies. The total amount of salary allocated to an
278 insurance company within the affiliated group shall be included
279 as that insurer’s employee salaries for purposes of this
280 section.
281 a. Except as provided in subparagraph (a)2., the term
282 “affiliated group of corporations” means two or more
283 corporations that are entirely owned by a single corporation and
284 that constitute an affiliated group of corporations as defined
285 in s. 1504(a) of the Internal Revenue Code.
286 b. The term “service company” means a separate corporation
287 within the affiliated group of corporations whose employees
288 provide services to affiliated group members and which are
289 treated as service company employees for reemployment assistance
290 or unemployment compensation and common law purposes. The
291 holding company of an affiliated group may not qualify as a
292 service company. An insurance company may not qualify as a
293 service company.
294 c. If an insurance company fails to substantiate, whether
295 by means of adequate records or otherwise, its eligibility to
296 claim the service company exception under this section, or its
297 salary allocation under this section, no credit shall be
298 allowed.
299 5. A service company that is a subsidiary of a mutual
300 insurance holding company, which mutual insurance holding
301 company was in existence on or before January 1, 2000, shall
302 allocate the salary of each service company employee covered by
303 contracts with members of the mutual insurance holding company
304 system to the companies for which the employees perform
305 services. The salary allocation is based on the ratio of the
306 amount of time during the tax year which the individual employee
307 spends performing services or otherwise working for each company
308 to the total amount of time the employee spends performing
309 services or otherwise working for all companies. The total
310 amount of salary allocated to an insurance company within the
311 mutual insurance holding company system shall be included as
312 that insurer’s employee salaries for purposes of this section.
313 However, this subparagraph does not apply for any tax year
314 unless funds sufficient to offset the anticipated salary credits
315 have been appropriated to the General Revenue Fund prior to the
316 due date of the final return for that year.
317 a. The term “mutual insurance holding company system” means
318 two or more corporations that are subsidiaries of a mutual
319 insurance holding company and in compliance with part IV of
320 chapter 628.
321 b. The term “service company” means a separate corporation
322 within the mutual insurance holding company system whose
323 employees provide services to other members of the mutual
324 insurance holding company system and are treated as service
325 company employees for reemployment assistance or unemployment
326 compensation and common-law purposes. The mutual insurance
327 holding company may not qualify as a service company.
328 c. If an insurance company fails to substantiate, whether
329 by means of adequate records or otherwise, its eligibility to
330 claim the service company exception under this section, or its
331 salary allocation under this section, no credit shall be
332 allowed.
333 (c) The department may adopt rules pursuant to ss.
334 120.536(1) and 120.54 to administer this subsection.
335 (5)(6)(a) The total of the credit granted for the taxes
336 paid by the insurer under chapter 220 and the credit granted by
337 subsection (5) may not exceed 65 percent of the tax due under
338 subsection (1) after deducting therefrom the taxes paid by the
339 insurer under ss. 175.101 and 185.08 and any assessments
340 pursuant to s. 440.51.
341 (b) To the extent that any credits granted by subsection
342 (5) remain as a result of the limitation set forth in paragraph
343 (a), such excess credits related to salaries and wages of
344 employees whose place of employment is located within an
345 enterprise zone created pursuant to chapter 290 may be
346 transferred, in an aggregate amount not to exceed 25 percent of
347 such excess salary credits, to any insurer that is a member of
348 an affiliated group of corporations, as defined in sub
349 subparagraph (5)(b)4.a., that includes the original insurer
350 qualifying for the credits under subsection (5). The amount of
351 such excess credits to be transferred shall be calculated by
352 multiplying the amount of such excess credits by a fraction, the
353 numerator of which is the sum of the salaries qualifying for the
354 credit allowed by subsection (5) of employees whose place of
355 employment is located in an enterprise zone and the denominator
356 of which is the sum of the salaries qualifying for the credit
357 allowed by subsection (5). Any such transferred credits shall be
358 subject to the same provisions and limitations set forth within
359 part IV of this chapter. The provisions of this paragraph do not
360 apply to an affiliated group of corporations that participate in
361 a common paymaster arrangement as defined in s. 443.1216.
362 (6)(7) Credits and deductions against the tax imposed by
363 this section shall be taken in the following order: deductions
364 for assessments made pursuant to s. 440.51; credits for taxes
365 paid under ss. 175.101 and 185.08; and credits for income taxes
366 paid under chapter 220 and the credit allowed under subsection
367 (5), as these credits are limited by subsection (5) (6); all
368 other available credits and deductions.
369 (7)(8) From and after July 1, 1980, the premium tax
370 authorized by this section shall not be imposed upon receipts of
371 annuity premiums or considerations paid by holders in this state
372 if the tax savings derived are credited to the annuity holders.
373 Upon request by the Department of Revenue, any insurer availing
374 itself of this provision shall submit to the department evidence
375 which establishes that the tax savings derived have been
376 credited to annuity holders. As used in this subsection, the
377 term “holders” shall be deemed to include employers contributing
378 to an employee’s pension, annuity, or profit-sharing plan.
379 (8)(9) As used in this section “insurer” includes any
380 entity subject to the tax imposed by this section.
381 Section 7. Subsection (1) of section 624.5091, Florida
382 Statutes, is amended to read:
383 624.5091 Retaliatory provision, insurers.—
384 (1)(a) When by or pursuant to the laws of any other state
385 or foreign country any taxes, licenses, and other fees, in the
386 aggregate, and any fines, penalties, deposit requirements, or
387 other material obligations, prohibitions, or restrictions are or
388 would be imposed upon Florida insurers or upon the agents or
389 representatives of such insurers, which are in excess of such
390 taxes, licenses, and other fees, in the aggregate, or which are
391 in excess of the fines, penalties, deposit requirements, or
392 other obligations, prohibitions, or restrictions directly
393 imposed upon similar insurers, or upon the agents or
394 representatives of such insurers, of such other state or country
395 under the statutes of this state, so long as such laws of such
396 other state or country continue in force or are so applied, the
397 same taxes, licenses, and other fees, in the aggregate, or
398 fines, penalties, deposit requirements, or other material
399 obligations, prohibitions, or restrictions of whatever kind
400 shall be imposed by the Department of Revenue upon the insurers,
401 or upon the agents or representatives of such insurers, of such
402 other state or country doing business or seeking to do business
403 in this state. In determining the taxes to be imposed under this
404 section, 80 percent and a portion of the remaining 20 percent as
405 provided in paragraph (b) of the credit provided by s.
406 624.509(5), as limited by s. 624.509(6) and further determined
407 by s. 624.509(7), shall not be taken into consideration.
408 (b) As used in this subsection, the term “portion of the
409 remaining 20 percent” shall be calculated by multiplying the
410 remaining 20 percent by a fraction, the numerator of which is
411 the sum of the salaries qualifying for the credit allowed by s.
412 624.509(5) of employees whose place of employment is located in
413 an enterprise zone created pursuant to chapter 290 and the
414 denominator of which is the sum of the salaries qualifying for
415 the credit allowed by s. 624.509(5).
416 Section 8. Subsection (1) of section 624.51055, Florida
417 Statutes, is amended to read:
418 624.51055 Credit for contributions to eligible nonprofit
419 scholarship-funding organizations.—
420 (1) There is allowed a credit of 100 percent of an eligible
421 contribution made to an eligible nonprofit scholarship-funding
422 organization under s. 1002.395 against any tax due for a taxable
423 year under s. 624.509(1) after deducting from such tax
424 deductions for assessments made pursuant to s. 440.51; credits
425 for taxes paid under ss. 175.101 and 185.08; and credits for
426 income taxes paid under chapter 220; and the credit allowed
427 under s. 624.509(5), as such credit is limited by s. 624.509(6)
428 s. 624.509(5). An insurer claiming a credit against premium tax
429 liability under this section shall not be required to pay any
430 additional retaliatory tax levied pursuant to s. 624.5091 as a
431 result of claiming such credit. Section 624.5091 does not limit
432 such credit in any manner.
433 Section 9. Sections 1 through 5 of this act shall take
434 effect on September 1, 2013, and sections 6 through 8 shall take
435 effect upon becoming a law and apply to the 2013 insurance
436 premium tax year.