The Florida Senate

211.3103  Levy of tax on severance of phosphate rock; rate, basis, and distribution of tax.--

(1)  There is hereby levied an excise tax upon every person engaging in the business of severing phosphate rock from the soils or waters of this state for commercial use. The tax shall be collected, administered, and enforced by the department.

(2)  The proceeds of all taxes, interest, and penalties imposed under this section shall be paid into the State Treasury through June 30, 1995, as follows:

(a)  The first $10 million in revenue collected from the tax during each fiscal year shall be paid to the credit of the Conservation and Recreation Lands Trust Fund.

(b)  The remaining revenues collected from the tax during that fiscal year, after the required payment under paragraph (a), shall be paid into the State Treasury as follows:

1.  To the credit of the General Revenue Fund of the state, 60 percent. However, from this amount the amounts of $7.4 million, $8.2 million, and $8.1 million, respectively, shall be transferred to the Nonmandatory Land Reclamation Trust Fund on January 1, 1993, January 1, 1994, and January 1, 1995.

2.  To the credit of the Nonmandatory Land Reclamation Trust Fund which is established for reclamation and acquisition of unreclaimed lands disturbed by phosphate mining and not subject to mandatory reclamation, 20 percent.

3.  To the credit of the Phosphate Research Trust Fund in the Department of Education, Division of Universities, to carry out the purposes set forth in s. 378.101, 10 percent.

4.  For payment to counties in proportion to the number of tons of phosphate rock produced from a phosphate rock matrix located within such political boundary, 10 percent. The department shall distribute this portion of the proceeds annually based on production information reported by producers on the annual returns for the taxable year. Any such proceeds received by a county shall be used only for phosphate-related expenses.

(3)  Beginning July 1, 1995, the proceeds of all taxes, interest, and penalties imposed under this section shall be paid into the State Treasury as follows:

(a)  The first $10 million in revenue collected from the tax during each fiscal year shall be paid to the credit of the Conservation and Recreation Lands Trust Fund.

(b)  The remaining revenues collected from the tax during that fiscal year, after the required payment under paragraph (a), shall be paid into the State Treasury as follows:

1.  To the credit of the General Revenue Fund of the state, 58 percent.

2.  To the credit of the Nonmandatory Land Reclamation Trust Fund for reclamation and acquisition of unreclaimed lands disturbed by phosphate mining and not subject to mandatory reclamation, 14.5 percent.

3.  To the credit of the Phosphate Research Trust Fund in the Department of Education, Division of Universities, to carry out the purposes set forth in s. 378.101, 10 percent.

4.  For payment to counties in proportion to the number of tons of phosphate rock produced from a phosphate rock matrix located within such political boundary, 10 percent. The department shall distribute this portion of the proceeds annually based on production information reported by producers on the annual returns for the taxable year. Any such proceeds received by a county shall be used only for phosphate-related expenses.

5.  To the credit of the Minerals Trust Fund, 7.5 percent.

(4)  If the base rate is reduced pursuant to paragraph (5)(c), then the proceeds of the tax shall be paid into the State Treasury as follows:

(a)  The first $10 million in revenue collected from the tax during each fiscal year shall be paid to the credit of the Conservation and Recreation Lands Trust Fund.

(b)  The remaining revenues collected from the tax during that fiscal year, after the required payment under paragraph (a), shall be paid into the State Treasury as follows:

1.  To the credit of the General Revenue Fund of the state, 55.15 percent.

2.  To the credit of the Phosphate Research Trust Fund in the Department of Education, Division of Universities, 12.5 percent.

3.  For payment to counties in proportion to the number of tons of phosphate rock produced from a phosphate rock matrix located within such political boundary, 18 percent. The department shall distribute this portion of the proceeds annually based on production information reported by producers on the annual returns for the taxable year. Any such proceeds received by a county shall be used only for phosphate-related expenses.

4.  To the credit of the Minerals Trust Fund, 14.35 percent.

(5)  The excise tax levied by this section shall apply to the total production of the producer during the taxable year, measured on the basis of bone-dry tons produced at the point of severance, subject to the following rates:

(a)  Beginning July 1, 1987, to December 31, 1987, the tax rate shall be $1.79 per ton severed.

(b)  For 1988, the tax rate shall be the base rate of $1.35 per ton severed.

(c)  For 1989 and subsequent years, the tax rate shall be the base rate times the base rate adjustment for the tax year as calculated by the department in accordance with subsection (6). However, for 2000 and subsequent taxable years, the base rate shall be reduced by 20 percent, unless additional funding of the Nonmandatory Land Reclamation Trust Fund is approved by law.

(6)(a)  On or before March 30, 1989, and annually thereafter, the department shall calculate the base rate adjustment, if any, for phosphate rock based on the change in the unadjusted annual producer price index for the prior calendar year in relation to the unadjusted annual producer price index for calendar year 1987.

(b)  For the purposes of determining the base rate adjustment for any year, the base rate adjustment shall be a fraction, the numerator of which is the unadjusted annual producer price index for the prior calendar year and the denominator of which is the unadjusted annual producer price index for calendar year 1987.

(c)  The department shall provide the base rate, the base rate adjustment, and the resulting tax rate to affected producers by written notice on or before April 15 of the current year.

(d)  If the producer price index for phosphate rock primary products is substantially revised, the department shall make appropriate adjustment in the method used to compute the base rate adjustment under this subsection which will produce results reasonably consistent with the result which would have been obtained if the producer price index for phosphate rock primary products had not been revised.

(e)  In the event the producer price index for phosphate rock primary products is discontinued, then a comparable index shall be selected by the department and adopted by rule.

(7)  The excise tax levied on the severance of phosphate rock shall be in addition to any ad valorem taxes levied upon the separately assessed mineral interest in the real property upon which the site of severance is located, or any other tax, permit, or license fee imposed by the state or its political subdivisions.

(8)  The tax levied by this section shall be collected in the manner prescribed in s. 211.33

History.--s. 3, ch. 81-35; s. 1, ch. 82-184; s. 9, ch. 84-330; s. 6, ch. 87-96; s. 4, ch. 91-305; s. 3, ch. 91-420; s. 3, ch. 94-197; s. 10, ch. 96-321; s. 24, ch. 2000-170; s. 2, ch. 2000-176; s. 22, ch. 2000-317; s. 11, ch. 2002-218.