Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. HB 5601
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  04/25/2014           .                                

    1         Senate Amendment (with title amendment)
    3         Between lines 642 and 643
    4  insert:
    5         Section 8. Section 212.17, Florida Statutes, is reordered
    6  and amended to read:
    7         212.17 Tax credits or refunds for returned goods, rentals,
    8  or admissions; goods acquired for dealer’s own use and
    9  subsequently resold; additional powers of department.—
   10         (1)(a) If In the event purchases are returned to a dealer
   11  by the purchaser or consumer after the tax imposed by this
   12  chapter has been collected from or charged to the account of the
   13  consumer or user, the dealer is shall be entitled to
   14  reimbursement of the amount of tax collected or charged by the
   15  dealer, in the manner prescribed by the department.
   16         (b) A registered dealer that purchases property for the
   17  dealer’s own use, pays tax on acquisition, and sells the
   18  property subsequent to acquisition without ever having used the
   19  property is entitled to reimbursement, in the manner prescribed
   20  by the department, of the amount of tax paid on the property’s
   21  acquisition.
   22         (c) If the tax has not been remitted by a dealer to the
   23  department, the dealer may deduct the same in submitting his or
   24  her return upon receipt of a signed statement by of the dealer
   25  as to the gross amount of such refunds during the period covered
   26  by the said signed statement, which may period shall not be
   27  longer than 90 days. The department shall issue to the dealer an
   28  official credit memorandum equal to the net amount remitted by
   29  the dealer for such tax collected or paid. Such memorandum shall
   30  be accepted by the department at full face value from the dealer
   31  to whom it is issued upon, in the remittance of for subsequent
   32  taxes accrued under the provisions of this chapter. If a dealer
   33  has retired from business and has filed a final return, a refund
   34  of tax may be made if it can be established to the satisfaction
   35  of the department that the tax was not due.
   36         (2) A dealer who has paid the tax imposed by this chapter
   37  on tangible personal property sold under a retained title,
   38  conditional sale, or similar contract, or under a contract in
   39  which wherein the dealer retains a security interest in the
   40  property pursuant to chapter 679, may take credit or obtain a
   41  refund for the tax paid by the dealer on the unpaid balance due
   42  him or her when he or she repossesses the property, (with or
   43  without judicial process,) the property within 12 months after
   44  following the month in which the property was repossessed. If
   45  When such repossessed property is resold, the sale is subject in
   46  all respects to the tax imposed by this chapter.
   47         (3) Except as provided under subsection (4), a dealer who
   48  has paid the tax imposed by this chapter on tangible personal
   49  property or services may take a credit or obtain a refund for
   50  any tax paid by the dealer on the unpaid balance due on
   51  worthless accounts within 12 months after following the month in
   52  which the bad debt has been charged off for federal income tax
   53  purposes. If any accounts so charged off for which a credit or
   54  refund has been obtained are subsequently, thereafter in whole
   55  or in part, paid to the dealer, the amount so paid shall be
   56  included in the first return filed after such collection and the
   57  tax paid accordingly.
   58         (4)With respect to the payment of taxes on purchases made
   59  through a private-label credit card program:
   60         (a) If consumer accounts or receivables are found to be
   61  worthless or uncollectible, the dealer may claim a credit for,
   62  or obtain a refund of, the tax remitted by the dealer on the
   63  unpaid balance due if:
   64         1. The accounts or receivables have been charged off as bad
   65  debt on the lender’s books and records on or after January 1,
   66  2014;
   67         2. A credit was not previously claimed and a refund was not
   68  previously allowed on any portion of the accounts or
   69  receivables; and
   70         3. The credit or refund is claimed within 12 months after
   71  the month in which the bad debt is charged off by the lender for
   72  federal income tax purposes.
   73         (b) If the dealer or the lender subsequently collects, in
   74  whole or in part, the accounts or receivables for which a credit
   75  or refund has been granted under paragraph (a), the dealer must
   76  include the taxable percentage of the amount collected in the
   77  first return filed after the collection and pay the tax on the
   78  portion of that amount for which a credit or refund was granted.
   79         (c)The credit or refund allowed includes all credit sale
   80  transaction amounts that are outstanding in the specific
   81  private-label credit card account or receivable at the time the
   82  account or receivable is charged off, regardless of the date on
   83  which the credit sale transaction actually occurred.
   84         (d)A dealer may use one of the following methods to
   85  determine the amount of the credit or refund:
   86         1. An apportionment method to substantiate the amount of
   87  tax imposed under this chapter which is included in the bad debt
   88  to which the credit or refund applies. The method must use the
   89  dealer’s Florida and non-Florida sales, the dealer’s taxable and
   90  nontaxable sales, and the amount of tax the dealer remitted to
   91  this state; or
   92         2. A specified percentage of the accounts or receivables
   93  giving rise to the credit or refund, which is derived from a
   94  sampling of the dealer’s or lender’s records in accordance with
   95  a methodology agreed upon by the department and the dealer.
   96         (e)For purposes of computing the credit or refund,
   97  payments on the accounts or receivables shall be allocated based
   98  on the terms and conditions of the contract between the dealer
   99  or lender and the consumer.
  100         (f)The credit or refund for tax on bad debt may be claimed
  101  on any return filed by an entity related by a direct or indirect
  102  common ownership of 50 percent or more.
  103         (g) The amount of the credit or refund a dealer is eligible
  104  to recover under this subsection is limited to 25 percent of the
  105  tax paid to the department which is attributable to bad debt.
  106         (h)As used in this subsection, the term:
  107         1. Dealer’s affiliates” means an entity affiliated with
  108  the dealer under 26 U.S.C. s. 1504 or an entity that would be an
  109  affiliate under that section if the entity were a corporation.
  110         2. “Lender” means a person who owns or has owned a private
  111  label credit card account or an interest in a private-label
  112  credit card receivable that:
  113         a. The person purchased directly from a dealer who remitted
  114  the tax imposed under this chapter or from the dealer’s
  115  affiliates, or that was transferred from a third party;
  116         b. The person originated pursuant to that person’s contract
  117  with a dealer who remitted the tax imposed under this chapter or
  118  with the dealer’s affiliates; or
  119         c. Is affiliated in the manner described under 26 U.S.C. s.
  120  1504, regardless of whether the different entities are
  121  corporations, to a person described in sub-subparagraph a. or
  122  sub-subparagraph b. or to an assignee or other transferee of
  123  such person.
  124         3. “Private-label credit card” means a charge card or
  125  credit card that carries, refers to, or is branded with the name
  126  or logo of a dealer and can be used for purchases from the
  127  dealer whose name or logo appears on the card or for purchases
  128  from the dealer’s affiliates or franchisees.
  129         (6)(4)(a) The department shall:
  130         (a) Design, prepare, print and furnish to all dealers,
  131  except dealers filing through electronic data interchange, or
  132  make available or prescribe to the dealers, all necessary forms
  133  for filing returns and instructions to ensure a full collection
  134  from dealers and an accounting for the taxes due. The, but
  135  failure of a any dealer to secure such forms does not relieve
  136  the dealer from the payment of the tax at the time and in the
  137  manner provided.
  138         (b) The department shall Prescribe the format and
  139  instructions necessary for filing returns in a manner that is
  140  initiated through an electronic data interchange to ensure a
  141  full collection from dealers and an accounting for the taxes
  142  due. The failure of a any dealer to use such format does not
  143  relieve the dealer from the payment of the tax at the time and
  144  in the manner provided.
  145         (7)(5) The department and its assistants are hereby
  146  authorized and empowered to administer the oath for the purpose
  147  of enforcing and administering the provisions of this chapter.
  148         (8)(6) The department may has authority to adopt rules
  149  pursuant to ss. 120.536(1) and 120.54 to administer and enforce
  150  the provisions of this section chapter.
  151         (5)(7)If The department, where admissions, license fees,
  152  or rental payments, or payments for services are made and
  153  thereafter returned to the payors after the taxes thereon have
  154  been paid, the department shall return or credit the taxpayer
  155  for taxes so paid on the moneys returned in the same manner as
  156  is provided for returns or credits of taxes if where purchases
  157  or tangible personal property are returnable to a dealer.
  159  ================= T I T L E  A M E N D M E N T ================
  160  And the title is amended as follows:
  161         Delete line 33
  162  and insert:
  163         provision to changes made by the act; amending s.
  164         212.17, F.S.; providing procedures, requirements, and
  165         calculation methodologies that allow dealers to obtain
  166         tax credits or refunds for taxes paid on worthless or
  167         uncollectible private-label credit card accounts or
  168         receivables; providing a cap on the amount that may be
  169         recovered; providing definitions; amending s.