Florida Senate - 2013                        COMMITTEE AMENDMENT
       Bill No. CS for SB 306
                                Barcode 140726                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  04/02/2013           .                                

       The Committee on Rules (Margolis) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete lines 320 - 345
    4  and insert:
    5         Section 4. Subsections (3) and (5) of section 220.63,
    6  Florida Statutes, are amended to read:
    7         220.63 Franchise tax imposed on banks and savings
    8  associations.—
    9         (3) For purposes of this part, the franchise tax base shall
   10  be equal to:
   11         (a) Adjusted federal income, as defined in s. 220.13,
   12  apportioned to this state, plus;
   13         (b) Nonbusiness income allocated to this state pursuant to
   14  s. 220.16, less;
   15         (c) The deduction allowed in subsection (5); and
   16         (d) Less $50,000.
   17         (5) There shall be allowed as a deduction from adjusted
   18  federal income apportioned to this state, to the extent not
   19  deductible in determining federal taxable income or subtracted
   20  pursuant to s. 220.13(1)(b)2., the eligible net income of an
   21  international banking facility determined as follows:
   22         (a) The “eligible net income of an international banking
   23  facility” is the amount remaining after subtracting from the
   24  eligible gross income the applicable expenses.
   25         (b) The “eligible gross income” is the gross income derived
   26  in this state by an international banking facility from:
   27         1. Making, arranging for, placing, or servicing loans to
   28  foreign persons, provided, however, that in the case of a
   29  foreign person which is an individual, a foreign branch of a
   30  domestic corporation (other than a bank or savings association),
   31  or a foreign corporation or a foreign partnership which is 80
   32  percent or more owned or controlled, either directly or
   33  indirectly, by one or more domestic corporations (other than
   34  banks or savings associations), domestic partnerships, or
   35  resident individuals, substantially all the proceeds of the loan
   36  are for use outside the United States;
   37         2. Making or placing deposits with foreign persons which
   38  are banks or savings associations or foreign branches of banks
   39  or savings associations, including foreign subsidiaries or
   40  foreign branches of the taxpayer, or with other international
   41  banking facilities; or
   42         3. Entering into foreign exchange trading or hedging
   43  transactions in connection with the activities described in this
   44  paragraph.
   46  However, the term “eligible gross income” does not include any
   47  amount derived by an international banking facility from making,
   48  arranging for, placing, or servicing loans or making or placing
   49  deposits if the loans or deposits of funds are secured by
   50  mortgages, deeds of trust, or other liens upon real property
   51  located in this state.
   52         (c) The “applicable expenses” are any expenses or other
   53  deductions attributable, directly or indirectly, to the eligible
   54  gross income described in paragraph (b).
   55         Section 5. Section 4 of this act is effective with respect
   56  to taxable years beginning on or after January 1, 2013.
   58  ================= T I T L E  A M E N D M E N T ================
   59         And the title is amended as follows:
   60         Delete lines 36 - 41
   61  and insert:
   62         a cross-reference; amending s. 220.63, F.S.; applying
   63         the revisions to specified taxable years; revising the
   64         calculation of the franchise tax base; providing that
   65         the deduction from adjusted federal income be
   66         apportioned to the state; specifying that eligible
   67         gross income be gross income derived in this state;
   68         providing retroactive