Senate Bill 1206

CODING: Words stricken are deletions; words underlined are additions.


    Florida Senate - 1998                                  SB 1206

    By Senator Crist





    20-288-98                                               See HB

  1                      A bill to be entitled

  2         An act relating to tax on sales, use, and other

  3         transactions; amending s. 212.11, F.S.;

  4         revising provisions which require dealers who

  5         paid $100,000 or more in tax in the prior year

  6         to make estimated tax payments; reducing the

  7         percentage used to calculate estimated tax

  8         liability over a specified period and repealing

  9         said percentage January 1, 2004; providing that

10         certain dealers engaged in the sale of boats,

11         motor vehicles, or aircraft may, in lieu of

12         making estimated tax payments, remit the tax

13         for sales of $100,000 or more within a

14         specified period; providing an effective date.

15

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

17

18         Section 1.  Paragraph (a) of subsection (1) and

19  subsection (4) of section 212.11, Florida Statutes, 1996

20  Supplement, are amended to read:

21         212.11  Tax returns and regulations.--

22         (1)(a)1.  Each dealer shall calculate his or her

23  estimated tax liability for any month by one of the following

24  methods:

25         a.1.  Sixty-six percent of the current month's

26  liability pursuant to this part as shown on the tax return;

27         b.2.  Sixty-six percent of the tax reported on the tax

28  return pursuant to this part by a dealer for the taxable

29  transactions occurring during the corresponding month of the

30  preceding calendar year; or

31

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                                  SB 1206
    20-288-98                                               See HB




  1         c.3.  Sixty-six percent of the average tax liability

  2  pursuant to this part for those months during the preceding

  3  calendar year in which the dealer reported taxable

  4  transactions.

  5         2.  The 66 percent rate provided in subparagraph 1.

  6  shall be reduced over a period of 5 years beginning January 1,

  7  1999, and is repealed January 1, 2004. During this period, the

  8  following rates shall apply:

  9         a.  From January 1, 1999, through December 31, 1999,

10  the rate shall be 50 percent.

11         b.  From January 1, 2000, through December 31, 2000,

12  the rate shall be 40 percent.

13         c.  From January 1, 2001, through December 31, 2001,

14  the rate shall be 30 percent.

15         d.  From January 1, 2002, through December 31, 2002,

16  the rate shall be 20 percent.

17         e.  From January 1, 2003, through December 31, 2003,

18  the rate shall be 10 percent.

19         (4)(a)  Each dealer who is subject to the tax imposed

20  by this part and who paid such tax for the preceding state

21  fiscal year in an amount greater than or equal to $100,000

22  shall calculate the amount of estimated tax due pursuant to

23  this section for any month as provided in paragraph (1)(a).

24         (b)  The amount of any estimated tax shall be due,

25  payable, and remitted by electronic funds transfer by the 20th

26  day of the month for which it is estimated.  The difference

27  between the amount of estimated tax paid and the actual amount

28  of tax due under this part for such month shall be due and

29  payable by the first day of the following month and remitted

30  by electronic funds transfer by the 20th day thereof.

31

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                                  SB 1206
    20-288-98                                               See HB




  1         (c)  Any dealer who is eligible to file a consolidated

  2  return and who paid the tax imposed by this part for the

  3  immediately preceding state fiscal year in an amount greater

  4  than or equal to $100,000 or would have paid the tax in such

  5  amount if he or she had filed a consolidated return shall be

  6  subject to the provisions of this subsection notwithstanding

  7  an election by the dealer in any month to file a separate

  8  return.

  9         (d)1.  A dealer who is engaged in the business of

10  selling boats, motor vehicles, or aircraft may, in lieu of

11  making estimated tax payments as required by this subsection,

12  remit the tax at the time of sale with respect to the sale of

13  each boat, motor vehicle, or aircraft sold for a sales price

14  of $100,000 or greater.

15         2.  In order to qualify for this remittance procedure,

16  a boat, motor vehicle, or aircraft dealer must have remitted

17  sales tax for the preceding state fiscal year in an amount

18  greater than or equal to $100,000 per business location.

19         3.  The tax shall be remitted either by electronic

20  funds transfer no later than 3 business days after the date of

21  the sale or on a form prescribed by the department and

22  postmarked no later than 3 business days after the date of the

23  sale.

24         (e)(d)  The penalty provisions of this part, except s.

25  212.12(2)(c), apply to the provisions of this subsection.

26         Section 2.  This act shall take effect July 1, 1998.

27

28

29

30

31

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                                  SB 1206
    20-288-98                                               See HB




  1            *****************************************

  2                       LEGISLATIVE SUMMARY

  3
      Revises provisions that require dealers who paid $100,000
  4    or more in sales tax in the previous year to make
      estimated tax payments. Reduces the percentage used to
  5    calculate estimated tax liability over a 5-year period
      and repeals the percentage effective January 1, 2004.
  6    Provides that certain dealers engaged in the sale of
      boats, motor vehicles, or aircraft may, in lieu of making
  7    estimated tax payments, remit the tax for sales of
      $100,000 or more no later than 3 business days after the
  8    sale.

  9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  4