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

    1         Senate Amendment to Amendment (477076) (with title
    2  amendment)
    4         Between lines 98 and 99
    5  insert:
    6         Section 5. Section 212.17, Florida Statutes, is reordered
    7  and amended to read:
    8         212.17 Tax credits or refunds for returned goods, rentals,
    9  or admissions; goods acquired for dealer’s own use and
   10  subsequently resold; additional powers of department.—
   11         (1)(a) If In the event purchases are returned to a dealer
   12  by the purchaser or consumer after the tax imposed by this
   13  chapter has been collected from or charged to the account of the
   14  consumer or user, the dealer is shall be entitled to
   15  reimbursement of the amount of tax collected or charged by the
   16  dealer, in the manner prescribed by the department.
   17         (b) A registered dealer that purchases property for the
   18  dealer’s own use, pays tax on acquisition, and sells the
   19  property subsequent to acquisition without ever having used the
   20  property is entitled to reimbursement, in the manner prescribed
   21  by the department, of the amount of tax paid on the property’s
   22  acquisition.
   23         (c) If the tax has not been remitted by a dealer to the
   24  department, the dealer may deduct the same in submitting his or
   25  her return upon receipt of a signed statement by of the dealer
   26  as to the gross amount of such refunds during the period covered
   27  by the said signed statement, which may period shall not be
   28  longer than 90 days. The department shall issue to the dealer an
   29  official credit memorandum equal to the net amount remitted by
   30  the dealer for such tax collected or paid. Such memorandum shall
   31  be accepted by the department at full face value from the dealer
   32  to whom it is issued upon, in the remittance of for subsequent
   33  taxes accrued under the provisions of this chapter. If a dealer
   34  has retired from business and has filed a final return, a refund
   35  of tax may be made if it can be established to the satisfaction
   36  of the department that the tax was not due.
   37         (2) A dealer who has paid the tax imposed by this chapter
   38  on tangible personal property sold under a retained title,
   39  conditional sale, or similar contract, or under a contract in
   40  which wherein the dealer retains a security interest in the
   41  property pursuant to chapter 679, may take credit or obtain a
   42  refund for the tax paid by the dealer on the unpaid balance due
   43  him or her when he or she repossesses the property, (with or
   44  without judicial process,) the property within 12 months after
   45  following the month in which the property was repossessed. If
   46  When such repossessed property is resold, the sale is subject in
   47  all respects to the tax imposed by this chapter.
   48         (3) Except as provided in subsection (4), a dealer who has
   49  paid the tax imposed by this chapter on tangible personal
   50  property or services may take a credit or obtain a refund for
   51  any tax paid by the dealer on the unpaid balance due on
   52  worthless accounts within 12 months after following the month in
   53  which the bad debt has been charged off for federal income tax
   54  purposes. If any accounts so charged off for which a credit or
   55  refund has been obtained are subsequently, thereafter in whole
   56  or in part, paid to the dealer, the amount so paid shall be
   57  included in the first return filed after such collection and the
   58  tax paid accordingly.
   59         (4)With respect to the payment of taxes on purchases made
   60  through a private-label credit card program:
   61         (a) If consumer accounts or receivables are found to be
   62  worthless or uncollectible, the dealer may claim a credit for,
   63  or obtain a refund of, the tax remitted by the dealer on the
   64  unpaid balance due if:
   65         1. The accounts or receivables have been charged off as bad
   66  debt on the lender’s books and records on or after January 1,
   67  2014;
   68         2. A credit was not previously claimed and a refund was not
   69  previously allowed on any portion of the accounts or
   70  receivables; and
   71         3. The credit or refund is claimed within 12 months after
   72  the month in which the bad debt has been charged off by the
   73  lender for federal income tax purposes.
   74         (b) If the dealer or the lender subsequently collects, in
   75  whole or in part, the accounts or receivables for which a credit
   76  or refund has been granted under paragraph (a), the dealer must
   77  include the taxable percentage of the amount collected in the
   78  first return filed after the collection and pay the tax on the
   79  portion of that amount for which a credit or refund was granted.
   80         (c)The credit or refund allowed includes all credit sale
   81  transaction amounts that are outstanding in the specific
   82  private-label credit card account or receivable at the time the
   83  account or receivable is charged off, regardless of the date on
   84  which the credit sale transaction actually occurred.
   85         (d)A dealer may use one of the following methods to
   86  determine the amount of the credit or refund:
   87         1. An apportionment method to substantiate the amount of
   88  tax imposed under this chapter which is included in the bad debt
   89  to which the credit or refund applies. The method must use the
   90  dealer’s Florida and non-Florida sales, the dealer’s taxable and
   91  nontaxable sales, and the amount of tax the dealer remitted to
   92  this state; or
   93         2. A specified percentage of the accounts or receivables
   94  giving rise to the credit or refund, which is derived from a
   95  sampling of the dealer’s or lender’s records in accordance with
   96  a methodology agreed upon by the department and the dealer.
   97         (e)For purposes of computing the credit or refund,
   98  payments on the accounts or receivables shall be allocated based
   99  on the terms and conditions of the contract between the dealer
  100  or lender and the consumer.
  101         (f)The credit or refund for tax on bad debt may be claimed
  102  on any return filed by an entity related by a direct or indirect
  103  common ownership of 50 percent or more.
  104         (g) The amount of the credit or refund that a dealer is
  105  eligible to recover under this subsection is limited to 25
  106  percent of the tax paid to the department which is attributable
  107  to bad debt.
  108         (h)As used in this subsection, the term:
  109         1. Dealer’s affiliates” means an entity affiliated with
  110  the dealer under 26 U.S.C. s. 1504 or an entity that would be an
  111  affiliate under that section if the entity were a corporation.
  112         2. “Lender” means a person who owns or has owned a private
  113  label credit card account or an interest in a private-label
  114  credit card receivable that:
  115         a. The person purchased directly from a dealer who remitted
  116  the tax imposed under this chapter or from the dealer’s
  117  affiliates, or that was transferred from a third party;
  118         b. The person originated pursuant to that person’s contract
  119  with a dealer who remitted the tax imposed under this chapter or
  120  with the dealer’s affiliates; or
  121         c. Is affiliated in the manner described under 26 U.S.C. s.
  122  1504, regardless of whether the different entities are
  123  corporations, with a person described in sub-subparagraph a. or
  124  sub-subparagraph b. or with an assignee or other transferee of
  125  such person.
  126         3. “Private-label credit card” means a charge card or
  127  credit card that carries, refers to, or is branded with the name
  128  or logo of a dealer and can be used for purchases from the
  129  dealer whose name or logo appears on the card or for purchases
  130  from the dealer’s affiliates or franchisees.
  131         (6)(4)(a) The department shall:
  132         (a) Design, prepare, print and furnish to all dealers,
  133  except dealers filing through electronic data interchange, or
  134  make available or prescribe to the dealers, all necessary forms
  135  for filing returns and instructions to ensure a full collection
  136  from dealers and an accounting for the taxes due. The, but
  137  failure of a any dealer to secure such forms does not relieve
  138  the dealer from the payment of the tax at the time and in the
  139  manner provided.
  140         (b) The department shall Prescribe the format and
  141  instructions necessary for filing returns in a manner that is
  142  initiated through an electronic data interchange to ensure a
  143  full collection from dealers and an accounting for the taxes
  144  due. The failure of a any dealer to use such format does not
  145  relieve the dealer from the payment of the tax at the time and
  146  in the manner provided.
  147         (7)(5) The department and its assistants are hereby
  148  authorized and empowered to administer the oath for the purpose
  149  of enforcing and administering the provisions of this chapter.
  150         (8)(6) The department may has authority to adopt rules
  151  pursuant to ss. 120.536(1) and 120.54 to administer and enforce
  152  the provisions of this section chapter.
  153         (5)(7)If The department, where admissions, license fees,
  154  or rental payments, or payments for services are made and
  155  thereafter returned to the payors after the taxes thereon have
  156  been paid, the department shall return or credit the taxpayer
  157  for taxes so paid on the moneys returned in the same manner as
  158  is provided for returns or credits of taxes if where purchases
  159  or tangible personal property are returnable to a dealer.
  161  ================= T I T L E  A M E N D M E N T ================
  162  And the title is amended as follows:
  163         Delete line 387
  164  and insert:
  165         the communications services tax; amending s. 212.17,
  166         F.S.; providing procedures, requirements, and
  167         calculation methodologies that allow dealers to obtain
  168         tax credits or refunds for taxes paid on worthless or
  169         uncollectible private-label credit card accounts or
  170         receivables; providing a cap on the amount that may be
  171         recovered; providing definitions; amending s. 212.20,