Senate Bill 0060

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    Florida Senate - 2000                                    SB 60

    By Senator Lee





    23-120A-00

  1                      A bill to be entitled

  2         An act relating to the tax on intangible

  3         personal property; amending s. 199.032, F.S.;

  4         reducing the rate of such tax; amending s.

  5         199.033, F.S.; reducing the rates of the tax on

  6         securities in a Florida Futures Investment Fund

  7         to conform; amending s. 199.185, F.S.;

  8         exempting accounts receivable from the tax as

  9         of a specified date; deleting an exemption from

10         the tax to conform; providing an effective

11         date.

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13  Be It Enacted by the Legislature of the State of Florida:

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15         Section 1.  Section 199.032, Florida Statutes, is

16  amended to read:

17         199.032  Levy of annual tax.--An annual tax of 1 mill

18  1.5 mills is imposed on each dollar of the just valuation of

19  all intangible personal property that has a taxable situs in

20  this state, except for notes and other obligations for the

21  payment of money, other than bonds, which are secured by

22  mortgage, deed of trust, or other lien upon real property

23  situated in the state. This tax shall be assessed and

24  collected as provided in this chapter.

25         Section 2.  Section 199.033, Florida Statutes, is

26  amended to read:

27         199.033  Securities in a Florida's Future Investment

28  Fund; tax rate.--

29         (1)  Notwithstanding the provisions of this chapter,

30  the tax imposed under s. 199.032 on securities in a Florida's

31  Future Investment Fund shall apply at the rate of 0.85 mill

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    Florida Senate - 2000                                    SB 60
    23-120A-00




  1  1.35 mills when the average daily balance in such funds

  2  exceeds $2 billion and at the rate of 0.70 mill 1.20 mills

  3  when the average daily balance in such funds exceeds $5

  4  billion.

  5         (2)  This section shall not apply in any year in which

  6  the revenues of the foundation in the previous calendar year

  7  are less than the tax savings allowed by this section.  "Tax

  8  savings" means the difference between the tax that would be

  9  imposed pursuant to s. 199.032 and the tax rate specified in

10  subsection (1).

11         Section 3.  Paragraph (l) of subsection (1) and

12  subsection (2) of section 199.185, Florida Statutes, are

13  amended to read:

14         199.185  Property exempted from annual and nonrecurring

15  taxes.--

16         (1)  The following intangible personal property shall

17  be exempt from the annual and nonrecurring taxes imposed by

18  this chapter:

19         (l)  Two-thirds of The accounts receivable arising or

20  acquired in the ordinary course of a trade or business which

21  are owned, controlled, or managed by a taxpayer on January 1,

22  2001 2000, and thereafter. It is the intent of the Legislature

23  that, pursuant to future legislative action, the portion of

24  such accounts receivable exempt from taxation be increased to

25  all such accounts receivable on January 1, 2001, and

26  thereafter. This exemption does not apply to accounts

27  receivable that arise outside the taxpayer's ordinary course

28  of trade or business. For the purposes of this chapter, the

29  term "accounts receivable" means a business debt that is owed

30  by another to the taxpayer or the taxpayer's assignee in the

31  ordinary course of trade or business and is not supported by

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    Florida Senate - 2000                                    SB 60
    23-120A-00




  1  negotiable instruments. Accounts receivable include, but are

  2  not limited to, credit card receivables, charge card

  3  receivables, credit receivables, margin receivables, inventory

  4  or other floor plan financing, lease payments past due,

  5  conditional sales contracts, retail installment sales

  6  agreements, financing lease contracts, and a claim against a

  7  debtor usually arising from sales or services rendered and

  8  which is not necessarily due or past due. The examples

  9  specified in this paragraph shall be deemed not to be

10  supported by negotiable instruments. The term "negotiable

11  instrument" means a written document that is legally capable

12  of being transferred by indorsement or delivery. The term

13  "indorsement" means the act of a payee or holder in writing

14  his or her name on the back of an instrument without further

15  qualifying words other than "pay to the order of" or "pay to"

16  whereby the property is assigned and transferred to another.

17         (2)(a)  With respect to the first mill of the annual

18  tax, Every natural person is entitled each year to an

19  exemption of the first $20,000 of the value of property

20  otherwise subject to said tax.  A husband and wife filing

21  jointly shall have an exemption of $40,000.

22         (b)  With respect to the last 0.5 mill of the annual

23  tax, every natural person is entitled each year to an

24  exemption of the first $100,000 of the value of property

25  otherwise subject to said tax. A husband and wife filing

26  jointly shall have an exemption of $200,000. Agents and

27  fiduciaries, other than guardians and custodians under a

28  gifts-to-minors act, filing as such may not claim this

29  exemption on behalf of their principals or beneficiaries;

30  however, if the principal or beneficiary returns the property

31  held by the agent or fiduciary and is a natural person, the

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    Florida Senate - 2000                                    SB 60
    23-120A-00




  1  principal or beneficiary may claim the exemption.  No taxpayer

  2  shall be entitled to more than one exemption under this

  3  subsection paragraph (a) and one exemption under paragraph

  4  (b).  This exemption shall not apply to that intangible

  5  personal property described in s. 199.023(1)(d).

  6         Section 4.  This act shall take effect January 1, 2001.

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  9                          SENATE SUMMARY

10    Effective January 1, 2001, amends provisions relating to
      the tax on intangible personal property. Reduces the rate
11    of the tax imposed on such property from 1.5 mills to 1
      mill per dollar of just valuation. Reduces the rates of
12    the tax on securities in a Florida Futures Investment
      Account to conform. Exempts the entire amount of accounts
13    receivable rather than two-thirds of the amount. Removes
      an exemption from the tax to conform.
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