Florida Senate - 2019                        COMMITTEE AMENDMENT
       Bill No. CS for SB 576
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Appropriations (Stargel) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraph (n) of subsection (1) and paragraph
    6  (c) of subsection (2) of section 220.03, Florida Statutes, are
    7  amended to read:
    8         220.03 Definitions.—
    9         (1) SPECIFIC TERMS.—When used in this code, and when not
   10  otherwise distinctly expressed or manifestly incompatible with
   11  the intent thereof, the following terms shall have the following
   12  meanings:
   13         (n) “Internal Revenue Code” means the United States
   14  Internal Revenue Code of 1986, as amended and in effect on
   15  January 1, 2019 2018, except as provided in subsection (3).
   16         (2) DEFINITIONAL RULES.—When used in this code and neither
   17  otherwise distinctly expressed nor manifestly incompatible with
   18  the intent thereof:
   19         (c) Any term used in this code has the same meaning as when
   20  used in a comparable context in the Internal Revenue Code and
   21  other statutes of the United States relating to federal income
   22  taxes, as such code and statutes are in effect on January 1,
   23  2019 2018. However, if subsection (3) is implemented, the
   24  meaning of a term shall be taken at the time the term is applied
   25  under this code.
   26         Section 2. The amendment made by this act to s. 220.03,
   27  Florida Statutes, applies to taxable years beginning on or after
   28  January 1, 2019.
   29         Section 3. Section 220.1105, Florida Statutes, is amended
   30  to read:
   31         220.1105 Tax imposed; Automatic refunds and downward
   32  adjustments to tax rates.—
   33         (1) As used in this section, the term:
   34         (a) “Net collections” means the total amount of taxes
   35  collected under this chapter by the department in a the 2018
   36  2019 fiscal year, including related interest and penalties,
   37  minus the total amount of refunds of taxes levied under this
   38  chapter and issued by the department in that fiscal year, not
   39  including refunds issued pursuant to paragraph (2)(c). No later
   40  than September 1, 2019, and September 1, 2020, the Office of
   41  Economic and Demographic Research shall determine net
   42  collections for the most recent 2018-2019 fiscal year.
   43         (b) “Forecasted net collections” means the amount of net
   44  collections forecasted for a the 2018-2019 fiscal year by the
   45  Revenue Estimating Conference on February 23, 2018.
   46         (c) “Adjusted forecasted collections” means forecasted net
   47  collections for a the 2018-2019 fiscal year multiplied by 1.07.
   48         (d) “Tax rate imposed” is the tax rate as defined in ss.
   49  220.11(2) and 220.63(2) adjusted as set forth in this section.
   50         (2) The tax rate imposed shall be adjusted based on net
   51  collections in the 2018-2019 fiscal year. If the net collections
   52  exceed the adjusted forecasted collections, the tax rate imposed
   53  for taxable years beginning on or after January 1, 2019, shall
   54  be the tax rate imposed for taxable years beginning on or after
   55  January 1, 2018, multiplied by the quotient of the adjusted
   56  forecasted collections divided by the net collections. The
   57  resulting tax rate shall be rounded to the nearest thousandth
   58  and rounded down if the fourth digit to the right of the decimal
   59  point is the number five.
   60         (3) By October 1, 2019, the Department of Revenue shall
   61  calculate the tax rate imposed, if it is to be adjusted pursuant
   62  to subsection (2), and shall on that same date report the
   63  results of such calculation to the Governor, the President of
   64  the Senate, and the Speaker of the House of Representatives.
   65         (2)(4)For the 2018-2019 and 2019-2020 fiscal years, any
   66  amount by which net collections for the fiscal year exceed
   67  adjusted forecasted collections for the same 2018-2019 fiscal
   68  year shall only be used to provide refunds to corporate income
   69  tax payers as follows:
   70         (a) For purposes of this subsection:
   71         1. “Eligible taxpayer for a fiscal year” means:
   72         a.For the 2018-2019 fiscal year, a taxpayer whose taxable
   73  year begins between April 1, 2017, and March 31, 2018, and whose
   74  final tax liability for such taxable year is greater than zero.
   75         b.For the 2019-2020 fiscal year, a taxpayer whose taxable
   76  year begins between April 1, 2018, and March 31, 2019, and whose
   77  final tax liability for such taxable year is greater than zero.
   78         2. “Excess collections for a fiscal year” means the amount
   79  by which net collections for a fiscal the 2018-2019 year exceed
   80  adjusted forecasted collections for that fiscal year.
   81         3. “Final tax liability” means the taxpayer’s amount of tax
   82  due under this chapter for a taxable year, reported on a return
   83  filed with the department pursuant to s. 220.222, including a
   84  return filed timely pursuant to a valid extension.
   85         4. “Total eligible tax liability for a fiscal year” means
   86  the sum of final tax liabilities of all eligible taxpayers for a
   87  fiscal year, as such liabilities are shown on the latest return
   88  filed with the department as of the February 1 immediately
   89  following that fiscal year.
   90         5. “Taxpayer refund share for a fiscal year” means an
   91  eligible taxpayer’s final tax liability as a percentage of the
   92  total eligible tax liability for that fiscal year.
   93         6. “Taxpayer refund for a fiscal year” means the taxpayer
   94  refund share for a fiscal year multiplied by the excess
   95  collections for that fiscal year.
   96         (b) No later than April 15 following a fiscal year February
   97  15, 2020, the department shall determine total eligible tax
   98  liability for that fiscal year, the taxpayer refund share for
   99  that fiscal year for each eligible taxpayer, and the taxpayer
  100  refund for that fiscal year for each eligible taxpayer.
  101         (c) No later than May 1 following a fiscal year March 1,
  102  2020, the department shall refund a taxpayer refund for that
  103  fiscal year to each eligible taxpayer.
  104         (5) Tax rate adjustments pursuant to this section are
  105  repealed for taxable years beginning on or after January 1,
  106  2020.
  107         Section 4. Paragraph (b) of subsection (1) of section
  108  220.13, Florida Statutes, is amended to read:
  109         220.13 “Adjusted federal income” defined.—
  110         (1) The term “adjusted federal income” means an amount
  111  equal to the taxpayer’s taxable income as defined in subsection
  112  (2), or such taxable income of more than one taxpayer as
  113  provided in s. 220.131, for the taxable year, adjusted as
  114  follows:
  115         (b) Subtractions.—
  116         1. There shall be subtracted from such taxable income:
  117         a. The net operating loss deduction allowable for federal
  118  income tax purposes under s. 172 of the Internal Revenue Code
  119  for the taxable year, except that any net operating loss that is
  120  transferred pursuant to s. 220.194(6) may not be deducted by the
  121  seller,
  122         b. The net capital loss allowable for federal income tax
  123  purposes under s. 1212 of the Internal Revenue Code for the
  124  taxable year,
  125         c. The excess charitable contribution deduction allowable
  126  for federal income tax purposes under s. 170(d)(2) of the
  127  Internal Revenue Code for the taxable year, and
  128         d. The excess contributions deductions allowable for
  129  federal income tax purposes under s. 404 of the Internal Revenue
  130  Code for the taxable year.
  132  However, a net operating loss and a capital loss shall never be
  133  carried back as a deduction to a prior taxable year, but all
  134  deductions attributable to such losses shall be deemed net
  135  operating loss carryovers and capital loss carryovers,
  136  respectively, and treated in the same manner, to the same
  137  extent, and for the same time periods as are prescribed for such
  138  carryovers in ss. 172 and 1212, respectively, of the Internal
  139  Revenue Code.
  140         2. There shall be subtracted from such taxable income any
  141  amount to the extent included therein the following:
  142         a. Dividends treated as received from sources without the
  143  United States, as determined under s. 862 of the Internal
  144  Revenue Code.
  145         b. All amounts included in taxable income under s. 78, or
  146  s. 951, or s. 951A of the Internal Revenue Code.
  148  However, any amount subtracted under this subparagraph shall
  149  only be allowed to the extent that such amount is not deductible
  150  in determining federal taxable income. As to any amount
  151  subtracted under this subparagraph, there shall be added to such
  152  taxable income all expenses deducted on the taxpayer’s return
  153  for the taxable year which are attributable, directly or
  154  indirectly, to such subtracted amount. Further, no amount shall
  155  be subtracted with respect to dividends paid or deemed paid by a
  156  Domestic International Sales Corporation.
  157         3. In computing “adjusted federal income” for taxable years
  158  beginning after December 31, 1976, there shall be allowed as a
  159  deduction the amount of wages and salaries paid or incurred
  160  within this state for the taxable year for which no deduction is
  161  allowed pursuant to s. 280C(a) of the Internal Revenue Code
  162  (relating to credit for employment of certain new employees).
  163         4. There shall be subtracted from such taxable income any
  164  amount of nonbusiness income included therein.
  165         5. There shall be subtracted any amount of taxes of foreign
  166  countries allowable as credits for taxable years beginning on or
  167  after September 1, 1985, under s. 901 of the Internal Revenue
  168  Code to any corporation which derived less than 20 percent of
  169  its gross income or loss for its taxable year ended in 1984 from
  170  sources within the United States, as described in s.
  171  861(a)(2)(A) of the Internal Revenue Code, not including credits
  172  allowed under ss. 902 and 960 of the Internal Revenue Code,
  173  withholding taxes on dividends within the meaning of sub
  174  subparagraph 2.a., and withholding taxes on royalties, interest,
  175  technical service fees, and capital gains.
  176         6. Notwithstanding any other provision of this code, except
  177  with respect to amounts subtracted pursuant to subparagraphs 1.
  178  and 3., any increment of any apportionment factor which is
  179  directly related to an increment of gross receipts or income
  180  which is deducted, subtracted, or otherwise excluded in
  181  determining adjusted federal income shall be excluded from both
  182  the numerator and denominator of such apportionment factor.
  183  Further, all valuations made for apportionment factor purposes
  184  shall be made on a basis consistent with the taxpayer’s method
  185  of accounting for federal income tax purposes.
  186         Section 5. The amendment made by this act to s. 220.13,
  187  Florida Statutes, applies to taxable years beginning on or after
  188  January 1, 2018.
  189         Section 6. Section 220.27, Florida Statutes, is created to
  190  read:
  191         220.27 Additional required information.—
  192         (1)(a)Every taxpayer that is required to file a return
  193  under s. 220.22(1) for a taxable year beginning during the 2018
  194  or 2019 calendar years must submit to the department the
  195  following information for those taxable years using the online
  196  application on the department’s website:
  197         1.The taxpayer’s name, federal taxpayer identification
  198  number, taxable year beginning date, taxable year ending date,
  199  and whether a consolidated return for the taxpayer is required
  200  or elected under s. 220.131.
  201         2.The taxpayer’s NAICS code for business activity that
  202  generates the greatest proportion of gross receipts of the
  203  taxpayer. As used in this subparagraph, the term “NAICS” means
  204  those classifications contained in the North American Industry
  205  Classification System, as published in 2007 by the Office of
  206  Management and Budget, Executive Office of the President.
  207         3.The taxpayer’s taxable income, as that term is defined
  208  in s. 220.13(2), and the taxpayer’s state apportionment fraction
  209  pursuant to s. 220.15 for the taxable year.
  210         4.The amount of global intangible low-taxed income
  211  included in federal taxable income under s. 951A of the Internal
  212  Revenue Code, and the amount of the related deduction under s.
  213  250 of the Internal Revenue Code as it pertains to s. 951A of
  214  the Internal Revenue Code.
  215         5.The amount of foreign-derived intangible income computed
  216  for the federal return for the taxable year and the amount of
  217  the related deduction under s. 250 of the Internal Revenue Code,
  218  as it pertains to foreign-derived intangible income.
  219         6.The amount of business interest expense deducted on the
  220  federal return under s. 163 of the Internal Revenue Code,
  221  including any carryover; the amount of current year business
  222  interest expense, including any carryover, which was not
  223  deducted due to the limitation in s. 163(j) of the Internal
  224  Revenue Code; and the amount of business interest expense
  225  carried over from previous taxable years.
  226         7.The amount of federal net operating loss deduction under
  227  s. 172 of the Internal Revenue Code applied in determining
  228  federal taxable income and the amount of federal net operating
  229  loss carryover that was not applied due to the limitation in s.
  230  172(a)(2) of the Internal Revenue Code.
  231         8.The total amount of state net operating loss carryover
  232  available after the filing of the return for the taxable year.
  233         9.The total amount of the state alternative minimum tax
  234  credit carryover available after the filing of the return for
  235  the taxable year.
  236         (b)By September 3, 2019, the department shall create a
  237  secure online application for use by taxpayers when submitting
  238  the information required under this subsection through the
  239  department’s website.
  240         (c)An officer of the taxpayer or a person duly authorized
  241  to act on the taxpayer’s behalf shall certify that the
  242  information submitted pursuant to this subsection is true and
  243  correct. The required information must be submitted the earlier
  244  of 10 days after the extended due date of the tax return or 10
  245  days after the date such return is filed. For taxpayers that
  246  file returns before September 3, 2019, for taxable years
  247  beginning in calendar year 2018, the required information is
  248  timely if submitted by September 3, 2019.
  249         (d)In addition to its existing audit and investigation
  250  authority, the department may perform any additional financial
  251  and technical audits and investigations, including examining the
  252  accounts, books, and financial records of the taxpayer, which
  253  are necessary to verify the accuracy of the information
  254  submitted pursuant to this subsection.
  255         (e)A taxpayer who fails to provide the required
  256  information by the required submission date is subject to a
  257  penalty of $1,000 or 1 percent of the tax determined to be due
  258  under this chapter for the most recent taxable year reported on
  259  a return filed with the department, whichever is greater. Any
  260  such penalty collected must be deposited into the General
  261  Revenue Fund. The department may settle or compromise such
  262  penalty if the department determines that the noncompliance is
  263  due to reasonable cause and not to willful negligence, willful
  264  neglect, or fraud.
  265         (2)This section expires January 1, 2023.
  266         Section 7. (1)The Department of Revenue is authorized, and
  267  all conditions are deemed to be met, to adopt emergency rules
  268  pursuant to s. 120.54(4), Florida Statutes, for the purpose of
  269  implementing this act.
  270         (2)Notwithstanding any other law, emergency rules adopted
  271  pursuant to subsection (1) are effective for 6 months after
  272  adoption and may be renewed during the pendency of procedures to
  273  adopt permanent rules addressing the subject of the emergency
  274  rules.
  275         (3)This section expires January 1, 2022.
  276         Section 8. For the 2019-2020 fiscal year, the sum of
  277  $120,000 in nonrecurring funds is appropriated from the General
  278  Revenue Fund to the Department of Revenue for the purpose of
  279  implementing this act.
  280         Section 9. This act shall take effect upon becoming a law.
  282  ================= T I T L E  A M E N D M E N T ================
  283  And the title is amended as follows:
  284         Delete everything before the enacting clause
  285  and insert:
  286                        A bill to be entitled                      
  287         An act relating to the corporate income tax; amending
  288         s. 220.03, F.S.; adopting the Internal Revenue Code in
  289         effect on January 1, 2019; providing applicability;
  290         amending s. 220.1105, F.S.; revising definitions;
  291         deleting provisions providing for a rate adjustment;
  292         providing for refunds of certain corporate income tax
  293         receipts in a certain fiscal year; revising
  294         requirements for the Department of Revenue in making
  295         certain determinations and in refunding eligible
  296         taxpayers; amending s. 220.13, F.S.; providing for the
  297         subtraction of global intangible low-taxed income from
  298         taxable income for the purpose of determining adjusted
  299         federal income; specifying the extent to which certain
  300         amounts may be subtracted; providing applicability;
  301         creating s. 220.27, F.S.; requiring taxpayers filing
  302         returns during a certain timeframe to submit specified
  303         information to the department by certain means;
  304         defining the term “NAICS”; requiring the department,
  305         by a certain date, to create a secure online
  306         application for submitting such information; requiring
  307         certain persons to certify the information is true and
  308         correct; specifying deadlines for submitting the
  309         information; authorizing the department to perform
  310         certain audits and investigations; providing a penalty
  311         for failure to provide the information; requiring the
  312         penalty to be deposited into the General Revenue Fund;
  313         authorizing the department to settle or compromise the
  314         penalty under certain circumstances; providing for
  315         expiration; authorizing the department to adopt
  316         emergency rules; providing for expiration of the
  317         authorization; providing an appropriation; providing
  318         an effective date.