Florida Senate - 2020                                    SB 7060
       By the Committee on Finance and Tax
       593-03922-20                                          20207060__
    1                        A bill to be entitled                      
    2         An act relating to tax administration; creating s.
    3         193.1557, F.S.; providing applicability of certain
    4         property assessment limitations to changes, additions,
    5         or improvements to property damaged or destroyed by
    6         Hurricane Michael which are commenced within a certain
    7         timeframe; specifying the applicable tax years;
    8         providing for future repeal; amending s. 195.073,
    9         F.S.; revising the classification of certain
   10         residential property for assessment purposes; amending
   11         s. 195.096, F.S.; revising requirements for the
   12         Department of Revenue’s review and published findings
   13         of county assessment rolls; amending s. 206.8741,
   14         F.S.; revising a penalty for failure to provide or
   15         post a notice relating to dyed diesel fuel; amending
   16         s. 212.05, F.S.; revising timeframes for certain
   17         documentation to be provided to the department for the
   18         purposes of a sales tax exemption for the sale of
   19         certain boats and aircraft; amending s. 213.21, F.S.;
   20         providing that the period for filing a claim for
   21         certain refunds is tolled during a period in which a
   22         taxpayer is engaged in certain informal conference
   23         procedures; providing an effective date.
   25  Be It Enacted by the Legislature of the State of Florida:
   27         Section 1. Section 193.1557, Florida Statutes, is created
   28  to read:
   29         193.1557 Assessment of certain property damaged by
   30  Hurricane Michael.—For property damaged or destroyed by
   31  Hurricane Michael in 2018, s. 193.155(4)(b), s. 193.1554(6)(b),
   32  or s. 193.1555(6) shall apply to changes, additions, or
   33  improvements commenced within 5 years after January 1 following
   34  the damage or destruction of the property. This section applies
   35  to tax years 2019-2023 and shall stand repealed December 31,
   36  2023.
   37         Section 2. Paragraphs (a) and (b) of subsection (1) of
   38  section 195.073, Florida Statutes, are amended to read:
   39         195.073 Classification of property.—All items required by
   40  law to be on the assessment rolls must receive a classification
   41  based upon the use of the property. The department shall
   42  promulgate uniform definitions for all classifications. The
   43  department may designate other subclassifications of property.
   44  No assessment roll may be approved by the department which does
   45  not show proper classifications.
   46         (1) Real property must be classified according to the
   47  assessment basis of the land into the following classes:
   48         (a) Residential, subclassified into categories, one
   49  category for homestead property and one for nonhomestead
   50  property:
   51         1. Single family.
   52         2. Mobile homes.
   53         3. Multifamily, up to nine units.
   54         4. Condominiums.
   55         5. Cooperatives.
   56         6. Retirement homes.
   57         (b) Commercial and industrial, including apartments with
   58  more than nine units.
   59         Section 3. Subsection (2) and paragraph (a) of subsection
   60  (3) of section 195.096, Florida Statutes, are amended to read:
   61         195.096 Review of assessment rolls.—
   62         (2) The department shall conduct, no less frequently than
   63  once every 2 years, an in-depth review of the real property
   64  assessment roll rolls of each county. The department need not
   65  individually study every use-class of property set forth in s.
   66  195.073, but shall at a minimum study the level of assessment in
   67  relation to just value of each classification specified in
   68  subsection (3). Such in-depth review may include proceedings of
   69  the value adjustment board and the audit or review of procedures
   70  used by the counties to appraise property.
   71         (a) The department shall, at least 30 days prior to the
   72  beginning of an in-depth review in any county, notify the
   73  property appraiser in the county of the pending review. At the
   74  request of the property appraiser, the department shall consult
   75  with the property appraiser regarding the classifications and
   76  strata to be studied, in order that the review will be useful to
   77  the property appraiser in evaluating his or her procedures.
   78         (b) Every property appraiser whose upcoming roll is subject
   79  to an in-depth review shall, if requested by the department on
   80  or before January 1, deliver upon completion of the assessment
   81  roll a list of the parcel numbers of all parcels that did not
   82  appear on the assessment roll of the previous year, indicating
   83  the parcel number of the parent parcel from which each new
   84  parcel was created or “cut out.”
   85         (c) In conducting assessment ratio studies, the department
   86  must use all practicable steps, including stratified statistical
   87  and analytical reviews and sale-qualification studies, to
   88  maximize the representativeness or statistical reliability of
   89  samples of properties in tests of each classification, stratum,
   90  or roll made the subject of a ratio study published by it. The
   91  department shall document and retain records of the measures of
   92  representativeness of the properties studied in compliance with
   93  this section. Such documentation must include a record of
   94  findings used as the basis for the approval or disapproval of
   95  the tax roll in each county pursuant to s. 193.1142. In
   96  addition, to the greatest extent practicable, the department
   97  shall study assessment roll strata by subclassifications such as
   98  value groups and market areas for each classification or stratum
   99  to be studied, to maximize the representativeness of ratio study
  100  samples. For purposes of this section, the department shall rely
  101  primarily on an assessment-to-sales-ratio study in conducting
  102  assessment ratio studies in those classifications of property
  103  specified in subsection (3) for which there are adequate market
  104  sales. The department shall compute the median and the value
  105  weighted mean for each classification or subclassification
  106  studied and for the roll as a whole.
  107         (d) In the conduct of these reviews, the department shall
  108  adhere to all standards to which the property appraisers are
  109  required to adhere.
  110         (e) The department and each property appraiser shall
  111  cooperate in the conduct of these reviews, and each shall make
  112  available to the other all matters and records bearing on the
  113  preparation and computation of the reviews. The property
  114  appraisers shall provide any and all data requested by the
  115  department in the conduct of the studies, including electronic
  116  data processing tapes. Any and all data and samples developed or
  117  obtained by the department in the conduct of the studies shall
  118  be confidential and exempt from the provisions of s. 119.07(1)
  119  until a presentation of the findings of the study is made to the
  120  property appraiser. After the presentation of the findings, the
  121  department shall provide any and all data requested by a
  122  property appraiser developed or obtained in the conduct of the
  123  studies, including tapes. Direct reimbursable costs of providing
  124  the data shall be borne by the party who requested it. Copies of
  125  existing data or records, whether maintained or required
  126  pursuant to law or rule, or data or records otherwise
  127  maintained, shall be submitted within 30 days from the date
  128  requested, in the case of written or printed information, and
  129  within 14 days from the date requested, in the case of
  130  computerized information.
  131         (f) Within 120 days after receipt of a county assessment
  132  roll by the executive director of the department pursuant to s.
  133  193.1142(1), or within 10 days after approval of the assessment
  134  roll, whichever is later, the department shall complete the
  135  review for that county and publish the department’s findings.
  136  The findings must include a statement of the confidence interval
  137  for the median and such other measures as may be appropriate for
  138  each classification or subclassification studied and for the
  139  roll as a whole, and related statistical and analytical details.
  140  The measures in the findings must be based on:
  141         1. A 95-percent level of confidence; or
  142         2. Ratio study standards that are generally accepted by
  143  professional appraisal organizations in developing a
  144  statistically valid sampling plan if a 95-percent level of
  145  confidence is not attainable.
  146         (g) Notwithstanding any other provision of this chapter, in
  147  one or more assessment years following a natural disaster in
  148  counties for which a state of emergency was declared by
  149  executive order or proclamation of the Governor pursuant to
  150  chapter 252, if the department determines that the natural
  151  disaster creates difficulties in its statistical and analytical
  152  reviews of the assessment rolls in affected counties, the
  153  department shall take all practicable steps to maximize the
  154  representativeness and reliability of its statistical and
  155  analytical reviews and may use the best information available to
  156  estimate the levels of assessment. This paragraph first applies
  157  to the 2019 assessment roll and operates retroactively to
  158  January 1, 2019.
  159         (3)(a) Upon completion of review pursuant to paragraph
  160  (2)(f), the department shall publish the results of reviews
  161  conducted under this section. The results must include all
  162  statistical and analytical measures computed under this section
  163  for the real property assessment roll as a whole, the personal
  164  property assessment roll as a whole, and independently for the
  165  following real property classes if the classes constituted 5
  166  percent or more of the total assessed value of real property in
  167  a county on the previous tax roll:
  168         1. Residential property that consists of one primary living
  169  unit, including, but not limited to, single-family residences,
  170  condominiums, cooperatives, and mobile homes.
  171         2. Residential property that consists of two to nine or
  172  more primary living units.
  173         3. Agricultural, high-water recharge, historic property
  174  used for commercial or certain nonprofit purposes, and other
  175  use-valued property.
  176         4. Vacant lots.
  177         5. Nonagricultural acreage and other undeveloped parcels.
  178         6. Improved commercial and industrial property, including
  179  apartments with more than nine units.
  180         7. Taxable institutional or governmental, utility, locally
  181  assessed railroad, oil, gas and mineral land, subsurface rights,
  182  and other real property.
  184  If one of the above classes constituted less than 5 percent of
  185  the total assessed value of all real property in a county on the
  186  previous assessment roll, the department may combine it with one
  187  or more other classes of real property for purposes of
  188  assessment ratio studies or use the weighted average of the
  189  other classes for purposes of calculating the level of
  190  assessment for all real property in a county. The department
  191  shall also publish such results for any subclassifications of
  192  the classes or the assessment roll rolls it may have chosen to
  193  study.
  194         Section 4. Subsection (6) of section 206.8741, Florida
  195  Statutes, is amended to read:
  196         206.8741 Dyeing and marking; notice requirements.—
  197         (6) Any person who fails to provide or post the required
  198  notice with respect to any dyed diesel fuel is subject to a
  199  penalty of $2,500 for each month such failure occurs the penalty
  200  imposed by s. 206.872(11).
  201         Section 5. Paragraph (a) of subsection (1) of section
  202  212.05, Florida Statutes, is amended to read:
  203         212.05 Sales, storage, use tax.—It is hereby declared to be
  204  the legislative intent that every person is exercising a taxable
  205  privilege who engages in the business of selling tangible
  206  personal property at retail in this state, including the
  207  business of making mail order sales, or who rents or furnishes
  208  any of the things or services taxable under this chapter, or who
  209  stores for use or consumption in this state any item or article
  210  of tangible personal property as defined herein and who leases
  211  or rents such property within the state.
  212         (1) For the exercise of such privilege, a tax is levied on
  213  each taxable transaction or incident, which tax is due and
  214  payable as follows:
  215         (a)1.a. At the rate of 6 percent of the sales price of each
  216  item or article of tangible personal property when sold at
  217  retail in this state, computed on each taxable sale for the
  218  purpose of remitting the amount of tax due the state, and
  219  including each and every retail sale.
  220         b. Each occasional or isolated sale of an aircraft, boat,
  221  mobile home, or motor vehicle of a class or type which is
  222  required to be registered, licensed, titled, or documented in
  223  this state or by the United States Government shall be subject
  224  to tax at the rate provided in this paragraph. The department
  225  shall by rule adopt any nationally recognized publication for
  226  valuation of used motor vehicles as the reference price list for
  227  any used motor vehicle which is required to be licensed pursuant
  228  to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any
  229  party to an occasional or isolated sale of such a vehicle
  230  reports to the tax collector a sales price which is less than 80
  231  percent of the average loan price for the specified model and
  232  year of such vehicle as listed in the most recent reference
  233  price list, the tax levied under this paragraph shall be
  234  computed by the department on such average loan price unless the
  235  parties to the sale have provided to the tax collector an
  236  affidavit signed by each party, or other substantial proof,
  237  stating the actual sales price. Any party to such sale who
  238  reports a sales price less than the actual sales price is guilty
  239  of a misdemeanor of the first degree, punishable as provided in
  240  s. 775.082 or s. 775.083. The department shall collect or
  241  attempt to collect from such party any delinquent sales taxes.
  242  In addition, such party shall pay any tax due and any penalty
  243  and interest assessed plus a penalty equal to twice the amount
  244  of the additional tax owed. Notwithstanding any other provision
  245  of law, the Department of Revenue may waive or compromise any
  246  penalty imposed pursuant to this subparagraph.
  247         2. This paragraph does not apply to the sale of a boat or
  248  aircraft by or through a registered dealer under this chapter to
  249  a purchaser who, at the time of taking delivery, is a
  250  nonresident of this state, does not make his or her permanent
  251  place of abode in this state, and is not engaged in carrying on
  252  in this state any employment, trade, business, or profession in
  253  which the boat or aircraft will be used in this state, or is a
  254  corporation none of the officers or directors of which is a
  255  resident of, or makes his or her permanent place of abode in,
  256  this state, or is a noncorporate entity that has no individual
  257  vested with authority to participate in the management,
  258  direction, or control of the entity’s affairs who is a resident
  259  of, or makes his or her permanent abode in, this state. For
  260  purposes of this exemption, either a registered dealer acting on
  261  his or her own behalf as seller, a registered dealer acting as
  262  broker on behalf of a seller, or a registered dealer acting as
  263  broker on behalf of the purchaser may be deemed to be the
  264  selling dealer. This exemption shall not be allowed unless:
  265         a. The purchaser removes a qualifying boat, as described in
  266  sub-subparagraph f., from the state within 90 days after the
  267  date of purchase or extension, or the purchaser removes a
  268  nonqualifying boat or an aircraft from this state within 10 days
  269  after the date of purchase or, when the boat or aircraft is
  270  repaired or altered, within 20 days after completion of the
  271  repairs or alterations; or if the aircraft will be registered in
  272  a foreign jurisdiction and:
  273         (I) Application for the aircraft’s registration is properly
  274  filed with a civil airworthiness authority of a foreign
  275  jurisdiction within 10 days after the date of purchase;
  276         (II) The purchaser removes the aircraft from the state to a
  277  foreign jurisdiction within 10 days after the date the aircraft
  278  is registered by the applicable foreign airworthiness authority;
  279  and
  280         (III) The aircraft is operated in the state solely to
  281  remove it from the state to a foreign jurisdiction.
  283  For purposes of this sub-subparagraph, the term “foreign
  284  jurisdiction” means any jurisdiction outside of the United
  285  States or any of its territories;
  286         b. The purchaser, within 90 30 days from the date of
  287  departure, provides the department with written proof that the
  288  purchaser licensed, registered, titled, or documented the boat
  289  or aircraft outside the state. If such written proof is
  290  unavailable, within 90 30 days the purchaser shall provide proof
  291  that the purchaser applied for such license, title,
  292  registration, or documentation. The purchaser shall forward to
  293  the department proof of title, license, registration, or
  294  documentation upon receipt;
  295         c. The purchaser, within 30 10 days of removing the boat or
  296  aircraft from Florida, furnishes the department with proof of
  297  removal in the form of receipts for fuel, dockage, slippage,
  298  tie-down, or hangaring from outside of Florida. The information
  299  so provided must clearly and specifically identify the boat or
  300  aircraft;
  301         d. The selling dealer, within 30 5 days of the date of
  302  sale, provides to the department a copy of the sales invoice,
  303  closing statement, bills of sale, and the original affidavit
  304  signed by the purchaser attesting that he or she has read the
  305  provisions of this section;
  306         e. The seller makes a copy of the affidavit a part of his
  307  or her record for as long as required by s. 213.35; and
  308         f. Unless the nonresident purchaser of a boat of 5 net tons
  309  of admeasurement or larger intends to remove the boat from this
  310  state within 10 days after the date of purchase or when the boat
  311  is repaired or altered, within 20 days after completion of the
  312  repairs or alterations, the nonresident purchaser applies to the
  313  selling dealer for a decal which authorizes 90 days after the
  314  date of purchase for removal of the boat. The nonresident
  315  purchaser of a qualifying boat may apply to the selling dealer
  316  within 60 days after the date of purchase for an extension decal
  317  that authorizes the boat to remain in this state for an
  318  additional 90 days, but not more than a total of 180 days,
  319  before the nonresident purchaser is required to pay the tax
  320  imposed by this chapter. The department is authorized to issue
  321  decals in advance to dealers. The number of decals issued in
  322  advance to a dealer shall be consistent with the volume of the
  323  dealer’s past sales of boats which qualify under this sub
  324  subparagraph. The selling dealer or his or her agent shall mark
  325  and affix the decals to qualifying boats in the manner
  326  prescribed by the department, before delivery of the boat.
  327         (I) The department is hereby authorized to charge dealers a
  328  fee sufficient to recover the costs of decals issued, except the
  329  extension decal shall cost $425.
  330         (II) The proceeds from the sale of decals will be deposited
  331  into the administrative trust fund.
  332         (III) Decals shall display information to identify the boat
  333  as a qualifying boat under this sub-subparagraph, including, but
  334  not limited to, the decal’s date of expiration.
  335         (IV) The department is authorized to require dealers who
  336  purchase decals to file reports with the department and may
  337  prescribe all necessary records by rule. All such records are
  338  subject to inspection by the department.
  339         (V) Any dealer or his or her agent who issues a decal
  340  falsely, fails to affix a decal, mismarks the expiration date of
  341  a decal, or fails to properly account for decals will be
  342  considered prima facie to have committed a fraudulent act to
  343  evade the tax and will be liable for payment of the tax plus a
  344  mandatory penalty of 200 percent of the tax, and shall be liable
  345  for fine and punishment as provided by law for a conviction of a
  346  misdemeanor of the first degree, as provided in s. 775.082 or s.
  347  775.083.
  348         (VI) Any nonresident purchaser of a boat who removes a
  349  decal before permanently removing the boat from the state, or
  350  defaces, changes, modifies, or alters a decal in a manner
  351  affecting its expiration date before its expiration, or who
  352  causes or allows the same to be done by another, will be
  353  considered prima facie to have committed a fraudulent act to
  354  evade the tax and will be liable for payment of the tax plus a
  355  mandatory penalty of 200 percent of the tax, and shall be liable
  356  for fine and punishment as provided by law for a conviction of a
  357  misdemeanor of the first degree, as provided in s. 775.082 or s.
  358  775.083.
  359         (VII) The department is authorized to adopt rules necessary
  360  to administer and enforce this subparagraph and to publish the
  361  necessary forms and instructions.
  362         (VIII) The department is hereby authorized to adopt
  363  emergency rules pursuant to s. 120.54(4) to administer and
  364  enforce the provisions of this subparagraph.
  366  If the purchaser fails to remove the qualifying boat from this
  367  state within the maximum 180 days after purchase or a
  368  nonqualifying boat or an aircraft from this state within 10 days
  369  after purchase or, when the boat or aircraft is repaired or
  370  altered, within 20 days after completion of such repairs or
  371  alterations, or permits the boat or aircraft to return to this
  372  state within 6 months from the date of departure, except as
  373  provided in s. 212.08(7)(fff), or if the purchaser fails to
  374  furnish the department with any of the documentation required by
  375  this subparagraph within the prescribed time period, the
  376  purchaser shall be liable for use tax on the cost price of the
  377  boat or aircraft and, in addition thereto, payment of a penalty
  378  to the Department of Revenue equal to the tax payable. This
  379  penalty shall be in lieu of the penalty imposed by s. 212.12(2).
  380  The maximum 180-day period following the sale of a qualifying
  381  boat tax-exempt to a nonresident may not be tolled for any
  382  reason.
  383         Section 6. Paragraph (b) of subsection (1) of section
  384  213.21, Florida Statutes, is amended to read:
  385         213.21 Informal conferences; compromises.—
  386         (1)
  387         (b) The statute of limitations upon the issuance of final
  388  assessments and the period for filing a claim for refund as
  389  required by s. 215.26(2) for any transactions occurring during
  390  the audit period shall be tolled during the period in which the
  391  taxpayer is engaged in a procedure under this section.
  392         Section 7. This act shall take effect July 1, 2020.