| 1 | A bill to be entitled |
| 2 | An act relating to the incremental reduction and future |
| 3 | repeal of the corporate income tax; amending s. 220.11, |
| 4 | F.S.; providing for incremental reductions of the |
| 5 | corporate income tax effective on specified dates; |
| 6 | providing for future repeal of part I of chapter 220, |
| 7 | F.S., relating to the chapter title, legislative intent, |
| 8 | and definitions, and part II of chapter 220, F.S., |
| 9 | relating to the imposition and apportionment of the |
| 10 | corporate income tax; providing legislative findings, |
| 11 | intent, and application; providing for future repeal of |
| 12 | part III of chapter 220, F.S., relating to corporate |
| 13 | income tax returns, declarations, and records, part IV of |
| 14 | chapter 220, F.S., relating to corporate income tax |
| 15 | payments, part V of chapter 220, F.S., relating to |
| 16 | corporate income tax accounting, part VI of chapter 220, |
| 17 | F.S., relating to miscellaneous corporate income tax |
| 18 | provisions, part VIII of chapter 220, F.S., relating to |
| 19 | the administrative procedures and judicial review |
| 20 | applicable to the corporate income tax, part IX of chapter |
| 21 | 220, F.S., relating to the penalties and interest |
| 22 | applicable to, and the enforcement of, the corporate |
| 23 | income tax, and part X of chapter 220, F.S., relating to |
| 24 | the criminal offenses and penalties applicable to the |
| 25 | corporate income tax; amending s. 220.64, F.S.; providing |
| 26 | for the future application to the franchise tax of |
| 27 | specified parts and sections of chapter 220, F.S., as |
| 28 | those parts and sections existed before their repeal; |
| 29 | providing direction to the Division of Statutory Revision |
| 30 | to assist legislative committee staff in the preparation |
| 31 | of conforming legislation for submission at specified |
| 32 | future regular sessions; providing effective dates. |
| 33 |
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| 34 | Be It Enacted by the Legislature of the State of Florida: |
| 35 |
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| 36 | Section 1. Section 220.11, Florida Statutes, is amended to |
| 37 | read: |
| 38 | 220.11 Tax imposed.- |
| 39 | (1) A tax measured by net income is hereby imposed on |
| 40 | every taxpayer for each taxable year commencing on or after |
| 41 | January 1, 1972, and for each taxable year which begins before |
| 42 | and ends after January 1, 1972, for the privilege of conducting |
| 43 | business, earning or receiving income in this state, or being a |
| 44 | resident or citizen of this state. Such tax shall be in addition |
| 45 | to all other occupation, excise, privilege, and property taxes |
| 46 | imposed by this state or by any political subdivision thereof, |
| 47 | including any municipality or other district, jurisdiction, or |
| 48 | authority of this state. |
| 49 | (2) The tax imposed by this section shall be an amount |
| 50 | equal to 5 1/2 percent of the taxpayer's net income for the |
| 51 | taxable year. |
| 52 | (a) Effective January 1, 2012, the tax imposed under this |
| 53 | subsection shall be an amount equal to 4 1/2 percent of the |
| 54 | taxpayer's net income for the taxable year. |
| 55 | (b) Effective January 1, 2013, the tax imposed under this |
| 56 | subsection shall be an amount equal to 3 1/2 percent of the |
| 57 | taxpayer's net income for the taxable year. |
| 58 | (c) Effective January 1, 2014, the tax imposed under this |
| 59 | subsection shall be an amount equal to 2 1/2 percent of the |
| 60 | taxpayer's net income for the taxable year. |
| 61 | (d) Effective January 1, 2015, the tax imposed under this |
| 62 | subsection shall be an amount equal to 1 1/2 percent of the |
| 63 | taxpayer's net income for the taxable year. |
| 64 | (e) Effective January 1, 2016, the tax imposed under this |
| 65 | subsection shall be an amount equal to 1/2 percent of the |
| 66 | taxpayer's net income for the taxable year. |
| 67 | (3) The tax imposed by this section, for taxpayers |
| 68 | determining taxable income under s. 220.13(2)(k), shall be an |
| 69 | amount equal to 3.3 percent of the taxpayer's net income for the |
| 70 | taxable year. |
| 71 | (a) Effective January 1, 2012, the tax imposed under this |
| 72 | subsection shall be an amount equal to 2.7 percent of the |
| 73 | taxpayer's net income for the taxable year. |
| 74 | (b) Effective January 1, 2013, the tax imposed under this |
| 75 | subsection shall be an amount equal to 2.1 percent of the |
| 76 | taxpayer's net income for the taxable year. |
| 77 | (c) Effective January 1, 2014, the tax imposed under this |
| 78 | subsection shall be an amount equal to 1.5 percent of the |
| 79 | taxpayer's net income for the taxable year. |
| 80 | (d) Effective January 1, 2015, the tax imposed under this |
| 81 | subsection shall be an amount equal to 0.9 percent of the |
| 82 | taxpayer's net income for the taxable year. |
| 83 | (e) Effective January 1, 2016, the tax imposed under this |
| 84 | subsection shall be an amount equal to 0.3 percent of the |
| 85 | taxpayer's net income for the taxable year. |
| 86 | (4) In the case of a taxpayer to which s. 55 of the |
| 87 | Internal Revenue Code is applied for the taxable year, the |
| 88 | amount of tax determined under this section shall be the greater |
| 89 | of the tax determined under subsection (2) without the |
| 90 | application of s. 55 of the Internal Revenue Code or the tax |
| 91 | determined under subsection (3). |
| 92 | Section 2. Effective January 1, 2017, sections 220.02 and |
| 93 | 220.03, Florida Statutes, designated as part I of chapter 220, |
| 94 | Florida Statutes, entitled "TITLE; LEGISLATIVE INTENT; |
| 95 | DEFINITIONS"; and sections 220.11, 220.12, 220.13, 220.131, |
| 96 | 220.14, 220.15, 220.1501, 220.151, 220.152, 220.16, 220.181, |
| 97 | 220.182, 220.183, 220.184, 220.1845, 220.185, 220.186, 220.1875, |
| 98 | 220.1895, 220.1896, 220.1899, 220.19, 220.191, 220.192, and |
| 99 | 220.193, Florida Statutes, designated as part II of chapter 220, |
| 100 | Florida Statutes, entitled "TAX IMPOSED; APPORTIONMENT," are |
| 101 | repealed. |
| 102 | Section 3. Legislative findings; intent; application.-The |
| 103 | Legislature recognizes that issues related to the collection and |
| 104 | liability for the payment of corporate income taxes imposed |
| 105 | before the effective date of the repeals enumerated in section 2 |
| 106 | of this act will remain unresolved after the effective date of |
| 107 | those repeals. To ensure that the resolution of those issues |
| 108 | occurs in as orderly a manner as possible, the Legislature finds |
| 109 | it necessary to delay for 2 years the repeal of certain other |
| 110 | sections of chapter 220, Florida Statutes, related to the |
| 111 | corporate income tax. To that end and to the extent that the |
| 112 | remaining sections of chapter 220 are not manifestly |
| 113 | inapplicable or incompatible with the resolution of issues |
| 114 | arising before the effective date of the repeals enumerated in |
| 115 | section 2 of this act, the Legislature intends for the remaining |
| 116 | sections to apply. |
| 117 | Section 4. Effective January 1, 2019, sections 220.21, |
| 118 | 220.211, 220.22, 220.221, 220.222, 220.23, 220.24, 220.241, and |
| 119 | 220.242, Florida Statutes, designated as part III of chapter |
| 120 | 220, Florida Statutes, entitled "RETURNS; DECLARATIONS; |
| 121 | RECORDS"; sections 220.31, 220.32, 220.33, and 220.34, Florida |
| 122 | Statutes, designated as part IV of chapter 220, Florida |
| 123 | Statutes, entitled "PAYMENTS"; sections 220.41, 220.42, 220.43, |
| 124 | and 220.44, Florida Statutes, designated as part V of chapter |
| 125 | 220, Florida Statutes, entitled "ACCOUNTING"; sections 220.51, |
| 126 | 220.52, and 220.54, Florida Statutes, designated as part VI of |
| 127 | chapter 220, Florida Statutes, entitled "MISCELLANEOUS |
| 128 | PROVISIONS"; sections 220.701, 220.703, 220.705, 220.707, |
| 129 | 220.709, 220.711, 220.713, 220.715, 220.717, 220.719, 220.721, |
| 130 | 220.723, 220.725, 220.727, 220.731, 220.733, 220.735, 220.737, |
| 131 | and 220.739, Florida Statutes, designated as part VIII of |
| 132 | chapter 220, Florida Statutes, entitled "ADMINISTRATIVE |
| 133 | PROCEDURES AND JUDICIAL REVIEW"; sections 220.801, 220.803, |
| 134 | 220.805, 220.807, 220.809, 220.813, 220.815, 220.819, 220.821, |
| 135 | 220.823, 220.825, 220.827, and 220.829, Florida Statutes, |
| 136 | designated as part IX of chapter 220, Florida Statutes, entitled |
| 137 | "PENALTIES, INTEREST, AND ENFORCEMENT"; and sections 220.901, |
| 138 | 220.903, and 220.905, Florida Statutes, designated as part X of |
| 139 | chapter 220, Florida Statutes, entitled "TAX CRIMES," are |
| 140 | repealed. |
| 141 | Section 5. Effective January 1, 2017, section 220.64, |
| 142 | Florida Statutes, is amended to read: |
| 143 | 220.64 Other provisions applicable to franchise tax.-To |
| 144 | the extent that they are not manifestly incompatible with the |
| 145 | provisions of this part, the following parts and sections apply |
| 146 | to the franchise tax imposed by this part: |
| 147 | (1) Part I, as it existed on December 31, 2016. |
| 148 | (2) Parts I, III, IV, V, VI, VIII, IX, and X of this code |
| 149 | and ss. |
| 150 | (3) Sections 220.12, 220.13, 220.15, and 220.16, as they |
| 151 | existed on December 31, 2016 apply to the franchise tax imposed |
| 152 | by this part. |
| 153 | (4) Under the rules prescribed in s. 220.131, as it |
| 154 | existed on December 31, 2016, a consolidated return may be filed |
| 155 | by any affiliated group of corporations composed of one or more |
| 156 | banks or savings associations, its or their Florida parent |
| 157 | corporation, and any nonbank or nonsavings subsidiaries of such |
| 158 | parent corporation. |
| 159 | Section 6. Effective January 1, 2019, section 220.64, |
| 160 | Florida Statutes, as amended by this act, is amended to read: |
| 161 | 220.64 Other provisions applicable to franchise tax.-To |
| 162 | the extent that they are not manifestly incompatible with the |
| 163 | provisions of this part, the following parts and sections apply |
| 164 | to the franchise tax imposed by this part: |
| 165 | (1) Part I, as it existed on December 31, 2016. |
| 166 | (2) Parts III, IV, V, VI, VIII, IX, and X of this code, as |
| 167 | they existed on December 31, 2018. |
| 168 | (3) Sections 220.12, 220.13, 220.15, and 220.16, as they |
| 169 | existed on December 31, 2016. |
| 170 | (4) Under the rules prescribed in s. 220.131, as it |
| 171 | existed on December 31, 2016, a consolidated return may be filed |
| 172 | by any affiliated group of corporations composed of one or more |
| 173 | banks or savings associations, its or their Florida parent |
| 174 | corporation, and any nonbank or nonsavings subsidiaries of such |
| 175 | parent corporation. |
| 176 | Section 7. In the interim between the 2016 Regular Session |
| 177 | and the 2017 Regular Session, the Division of Statutory Revision |
| 178 | shall provide the appropriate substantive committees of the |
| 179 | House of Representatives and the Senate with assistance, upon |
| 180 | request, to enable such committees to prepare draft legislation |
| 181 | to conform the Florida Statutes and any legislation enacted |
| 182 | during 2016 to the repeal of the provisions enumerated in |
| 183 | section 2 of this act for submission at the 2017 Regular Session |
| 184 | of the Legislature. |
| 185 | Section 8. In the interim between the 2018 Regular Session |
| 186 | and the 2019 Regular Session, the Division of Statutory Revision |
| 187 | shall provide the appropriate substantive committees of the |
| 188 | House of Representatives and the Senate with assistance, upon |
| 189 | request, to enable such committees to prepare draft legislation |
| 190 | to conform the Florida Statutes and any legislation enacted |
| 191 | during 2018 to the repeal of the provisions enumerated in |
| 192 | section 4 of this act for submission at the 2019 Regular Session |
| 193 | of the Legislature. |
| 194 | Section 9. Except as otherwise expressly provided in this |
| 195 | act, this act shall take effect July 1, 2011. |