Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1304
       
       
       
       
       
       
                                Barcode 500824                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/02/2012           .                                
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       The Committee on Budget (Hays) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Before line 57
    4  insert:
    5         Section 1. Section 211.3103, Florida Statutes, is amended
    6  to read:
    7         211.3103 Levy of tax on severance of phosphate rock; rate,
    8  basis, and distribution of tax.—
    9         (1) There is hereby levied an excise tax upon each every
   10  person engaging in the business of severing phosphate rock from
   11  the soils or waters of this state for commercial use. The tax
   12  shall be collected, administered, and enforced by the
   13  department.
   14         (2)The tax rate shall be $1.61 per ton severed, except for
   15  the time period from January 1, 2015, to December 31, 2022, when
   16  the tax rate shall be $1.80 per ton severed.
   17         (2) Beginning July 1, 2004, the proceeds of all taxes,
   18  interest, and penalties imposed under this section shall be paid
   19  into the State Treasury as follows:
   20         (a) The first $10 million in revenue collected from the tax
   21  during each fiscal year shall be paid to the credit of the
   22  Conservation and Recreation Lands Trust Fund.
   23         (b) The remaining revenues collected from the tax during
   24  that fiscal year, after the required payment under paragraph
   25  (a), shall be paid into the State Treasury as follows:
   26         1. To the credit of the General Revenue Fund of the state,
   27  40.1 percent.
   28         2. For payment to counties in proportion to the number of
   29  tons of phosphate rock produced from a phosphate rock matrix
   30  located within such political boundary, 16.5 percent. The
   31  department shall distribute this portion of the proceeds
   32  annually based on production information reported by the
   33  producers on the annual returns for the taxable year. Any such
   34  proceeds received by a county shall be used only for phosphate
   35  related expenses.
   36         3. For payment to counties that have been designated a
   37  rural area of critical economic concern pursuant to s. 288.0656
   38  in proportion to the number of tons of phosphate rock produced
   39  from a phosphate rock matrix located within such political
   40  boundary, 13 percent. The department shall distribute this
   41  portion of the proceeds annually based on production information
   42  reported by the producers on the annual returns for the taxable
   43  year. Payments under this subparagraph shall be made to the
   44  counties unless the Legislature by special act creates a local
   45  authority to promote and direct the economic development of the
   46  county. If such authority exists, payments shall be made to that
   47  authority.
   48         4. To the credit of the Phosphate Research Trust Fund in
   49  the Division of Universities of the Department of Education, 9.3
   50  percent.
   51         5. To the credit of the Minerals Trust Fund, 10.7 percent.
   52         6. To the credit of the Nonmandatory Land Reclamation Trust
   53  Fund, 10.4 percent.
   54         (3) Beginning July 1, 2003, and annually thereafter, the
   55  Department of Environmental Protection may use up to $2 million
   56  of the funds in the Nonmandatory Land Reclamation Trust Fund to
   57  purchase a surety bond or a policy of insurance, the proceeds of
   58  which would pay the cost of restoration, reclamation, and
   59  cleanup of any phosphogypsum stack system and phosphate mining
   60  activities in the event that an operator or permittee thereof
   61  has been subject to a final order of bankruptcy and all funds
   62  available therefrom are determined to be inadequate to
   63  accomplish such restoration, reclamation, and cleanup. This
   64  section does not imply that such operator or permittee is
   65  thereby relieved of its obligations or relieved of any
   66  liabilities pursuant to any other remedies at law,
   67  administrative remedies, statutory remedies, or remedies
   68  pursuant to bankruptcy law. The department shall adopt rules to
   69  implement this subsection, including the purchase and oversight
   70  of the bond or policy.
   71         (4) Funds distributed pursuant to subparagraphs (2)(b)3.
   72  and (11)(e)4. shall be used for:
   73         (a) Planning, preparing, and financing of infrastructure
   74  projects for job creation and capital investment, especially
   75  those related to industrial and commercial sites. Infrastructure
   76  investments may include the following public or public-private
   77  partnership facilities: stormwater systems, telecommunications
   78  facilities, roads or other remedies to transportation
   79  impediments, nature-based tourism facilities, or other physical
   80  requirements necessary to facilitate trade and economic
   81  development activities.
   82         (b) Maximizing the use of federal, local, and private
   83  resources, including, but not limited to, those available under
   84  the Small Cities Community Development Block Grant Program.
   85         (c) Projects that improve inadequate infrastructure that
   86  has resulted in regulatory action that prohibits economic or
   87  community growth, if such projects are related to specific job
   88  creation or job retention opportunities.
   89         (5) Beginning January 1, 2004, the tax rate shall be the
   90  base rate of $1.62 per ton severed.
   91         (6) Beginning January 1, 2005, and annually thereafter, the
   92  tax rate shall be the base rate times the base rate adjustment
   93  for the tax year as calculated by the department in accordance
   94  with subsection (8).
   95         (3)(7) The excise tax levied by this section applies shall
   96  apply to the total production of the producer during the taxable
   97  year, measured on the basis of bone-dry tons produced at the
   98  point of severance.
   99         (8)(a) On or before March 30, 2004, and annually
  100  thereafter, the department shall calculate the base rate
  101  adjustment, if any, for phosphate rock based on the change in
  102  the unadjusted annual producer price index for the prior
  103  calendar year in relation to the unadjusted annual producer
  104  price index for calendar year 1999.
  105         (b) For the purposes of determining the base rate
  106  adjustment for any year, the base rate adjustment shall be a
  107  fraction, the numerator of which is the unadjusted annual
  108  producer price index for the prior calendar year and the
  109  denominator of which is the unadjusted annual producer price
  110  index for calendar year 1999.
  111         (c) The department shall provide the base rate, the base
  112  rate adjustment, and the resulting tax rate to affected
  113  producers by written notice on or before April 15 of the current
  114  year.
  115         (d) If the producer price index for phosphate rock is
  116  substantially revised, the department shall make appropriate
  117  adjustment in the method used to compute the base rate
  118  adjustment under this subsection which will produce results
  119  reasonably consistent with the result that would have been
  120  obtained if the producer price index for phosphate rock had not
  121  been revised. However, the tax rate shall not be less than $1.51
  122  per ton severed.
  123         (e) If the producer price index for phosphate rock is
  124  discontinued, a comparable index shall be selected by the
  125  department and adopted by rule.
  126         (4)(9) The excise tax levied on the severance of phosphate
  127  rock is shall be in addition to any ad valorem taxes levied upon
  128  the separately assessed mineral interest in the real property
  129  upon which the site of severance is located, or any other tax,
  130  permit, or license fee imposed by the state or its political
  131  subdivisions.
  132         (5)(10) The tax levied by this section shall be collected
  133  in the manner prescribed in s. 211.33.
  134         (11)(a) Beginning July 1, 2008, there is hereby levied a
  135  surcharge of $1.38 per ton severed in addition to the excise tax
  136  levied by this section. The surcharge shall be levied until the
  137  last day of the calendar quarter in which the total revenue
  138  generated by the surcharge equals $60 million. Revenues derived
  139  from the surcharge shall be deposited into the Nonmandatory Land
  140  Reclamation Trust Fund and shall be exempt from the general
  141  revenue service charge provided in s. 215.20. Revenues derived
  142  from the surcharge shall be used to augment funds appropriated
  143  for the rehabilitation, management, and closure of the Piney
  144  Point and Mulberry sites and for approved reclamation of
  145  nonmandatory lands in accordance with chapter 378. A minimum of
  146  75 percent of the revenues from the surcharge shall be dedicated
  147  to the Piney Point and Mulberry sites.
  148         (b) Beginning July 1, 2008, the excise tax rate shall be
  149  $1.945 per ton severed and the base rate adjustment provided in
  150  subsection (6) shall not apply.
  151         (c)1. Beginning July 1 of the 2010-2011 fiscal year, the
  152  tax rate shall be the base rate of $1.71 per ton severed.
  153         2. Beginning July 1 of the 2011-2012 fiscal year, the tax
  154  rate shall be the base rate of $1.61 per ton severed.
  155         3.  The base rate adjustment provided in subsection (6)
  156  shall not apply until the conditions of paragraph (d) are met.
  157         (d) Beginning July 1 of the fiscal year following the date
  158  on which a taxpayer’s surcharge offset equals or exceeds the
  159  total amount of surcharge remitted by such taxpayer under
  160  paragraph (a), and each year thereafter, the excise tax rate
  161  levied on such taxpayer shall be adjusted as provided in
  162  subsection (6). The surcharge offset for each taxpayer is an
  163  amount calculated by the department equal to the cumulative
  164  difference between the amount of excise tax that would have been
  165  collected under subsections (5) and (6) and the excise tax
  166  collected under subparagraphs (c)1. and 2. from such taxpayer.
  167         (e) Beginning July 1 of the 2010-2011 fiscal year, the
  168  proceeds of all taxes, interest, and penalties imposed under
  169  this section shall be exempt from the general revenue service
  170  charge provided in s. 215.20, and shall be paid into the State
  171  Treasury as follows:
  172         1. To the credit of the Conservation and Recreation Lands
  173  Trust Fund, 21.9 percent.
  174         2. To the credit of the General Revenue Fund of the state,
  175  37.1 percent.
  176         3. For payment to counties in proportion to the number of
  177  tons of phosphate rock produced from a phosphate rock matrix
  178  located within such political boundary, 12 percent. The
  179  department shall distribute this portion of the proceeds
  180  annually based on production information reported by the
  181  producers on the annual returns for the taxable year. Any such
  182  proceeds received by a county shall be used only for phosphate
  183  related expenses.
  184         4. For payment to counties that have been designated a
  185  rural area of critical economic concern pursuant to s. 288.0656
  186  in proportion to the number of tons of phosphate rock produced
  187  from a phosphate rock matrix located within such political
  188  boundary, 9.4 percent. The department shall distribute this
  189  portion of the proceeds annually based on production information
  190  reported by the producers on the annual returns for the taxable
  191  year. Payments under this subparagraph shall be made to the
  192  counties unless the Legislature by special act creates a local
  193  authority to promote and direct the economic development of the
  194  county. If such authority exists, payments shall be made to that
  195  authority.
  196         5. To the credit of the Nonmandatory Land Reclamation Trust
  197  Fund, 5.8 percent.
  198         6. To the credit of the Phosphate Research Trust Fund in
  199  the Division of Universities of the Department of Education, 5.8
  200  percent.
  201         7. To the credit of the Minerals Trust Fund, 8.0 percent.
  202         (6)(a)(f) Beginning July 1 of the 2011-2012 fiscal year,
  203  the proceeds of all taxes, interest, and penalties imposed under
  204  this section are exempt from the general revenue service charge
  205  provided in s. 215.20, and such proceeds shall be paid into the
  206  State Treasury as follows:
  207         1. To the credit of the Conservation and Recreation Lands
  208  Trust Fund, 25.5 percent.
  209         2. To the credit of the General Revenue Fund of the state,
  210  35.7 percent.
  211         3. For payment to counties in proportion to the number of
  212  tons of phosphate rock produced from a phosphate rock matrix
  213  located within such political boundary, 12.8 percent. The
  214  department shall distribute this portion of the proceeds
  215  annually based on production information reported by the
  216  producers on the annual returns for the taxable year. Any such
  217  proceeds received by a county shall be used only for phosphate
  218  related expenses.
  219         4. For payment to counties that have been designated as a
  220  rural area of critical economic concern pursuant to s. 288.0656
  221  in proportion to the number of tons of phosphate rock produced
  222  from a phosphate rock matrix located within such political
  223  boundary, 10.0 percent. The department shall distribute this
  224  portion of the proceeds annually based on production information
  225  reported by the producers on the annual returns for the taxable
  226  year. Payments under this subparagraph shall be made to the
  227  counties unless the Legislature by special act creates a local
  228  authority to promote and direct the economic development of the
  229  county. If such authority exists, payments shall be made to that
  230  authority.
  231         5. To the credit of the Nonmandatory Land Reclamation Trust
  232  Fund, 6.2 percent.
  233         6. To the credit of the Phosphate Research Trust Fund in
  234  the Division of Universities of the Department of Education, 6.2
  235  percent.
  236         7. To the credit of the Minerals Trust Fund, 3.6 percent.
  237         (b) Notwithstanding paragraph (a), from January 1, 2015,
  238  until December 31, 2022, the proceeds of all taxes, interest,
  239  and penalties imposed under this section are exempt from the
  240  general revenue service charge provided in s. 215.20, and such
  241  proceeds shall be paid to the State Treasury as follows:
  242         1. To the credit of the Conservation and Recreation Lands
  243  Trust Fund, 22.8 percent.
  244         2. To the credit of the General Revenue Fund of the state,
  245  31.9 percent.
  246         3. For payment to counties pursuant to subparagraph (a)3.,
  247  11.5 percent.
  248         4. For payment to counties pursuant to subparagraph (a)4.,
  249  8.9 percent.
  250         5. To the credit of the Nonmandatory Land Reclamation Trust
  251  Fund, 16.1 percent.
  252         6. To the credit of the Phosphate Research Trust Fund in
  253  the Division of Universities of the Department of Education, 5.6
  254  percent.
  255         7. To the credit of the Minerals Trust Fund, 3.2 percent.
  256         (c)(g) For purposes of this section, “phosphate-related
  257  expenses” means those expenses that provide for infrastructure
  258  or services in support of the phosphate industry, reclamation or
  259  restoration of phosphate lands, community infrastructure on such
  260  reclaimed lands, and similar expenses directly related to
  261  support of the industry.
  262  
  263  ================= T I T L E  A M E N D M E N T ================
  264         And the title is amended as follows:
  265         Delete line 2
  266  and insert:
  267         An act relating to tax administration; amending s.
  268         211.3103, F.S.; revising the excise tax rates levied
  269         upon each ton of phosphate rock severed; specifying
  270         the period during which the rates apply; revising the
  271         distribution of the revenues received; deleting
  272         obsolete provisions; amending s.