House Bill hb1171
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Florida House of Representatives - 2001 HB 1171
By Representative Weissman
1 A bill to be entitled
2 An act relating to taxation; amending s.
3 72.011, F.S.; providing for the venue and
4 jurisdiction of taxpayer actions in circuit
5 court; amending s. 199.023, F.S.; redefining
6 the term "intangible personal property";
7 amending s. 199.185, F.S.; revising exemptions
8 from the intangible personal property tax;
9 amending s. 212.12, F.S.; providing for methods
10 of determining overpayments by persons paying
11 the tax on sales, use, and other transactions;
12 amending s. 213.21, F.S.; revising the process
13 for review of a taxpayer's liability for tax
14 and interest; amending s. 220.03, F.S.;
15 providing for the tax classification of
16 specified entities; amending s. 608.471, F.S.;
17 providing for the tax treatment of certain
18 types of limited liability companies; providing
19 an effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
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23 Section 1. Paragraph (a) of subsection (4) and
24 subsection (5) of section 72.011, Florida Statutes, are
25 amended to read:
26 72.011 Jurisdiction of circuit courts in specific tax
27 matters; administrative hearings and appeals; time for
28 commencing action; parties; deposits.--
29 (4)(a) Except as provided in paragraph (b), an action
30 initiated in circuit court pursuant to subsection (1) shall be
31 filed in the Second Judicial Circuit Court in and for Leon
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1 County or in the circuit court in the county where the
2 taxpayer resides, or maintains its principal commercial
3 domicile in this state, or regularly maintains its books and
4 records in this state.
5 (5) The requirements of subsections (1), (2), and (3)
6 this section are jurisdictional.
7 Section 2. Paragraph (a) of subsection (1) of section
8 199.023, Florida Statutes, is amended to read:
9 199.023 Definitions.--As used in this chapter:
10 (1) "Intangible personal property" means all personal
11 property which is not in itself intrinsically valuable, but
12 which derives its chief value from that which it represents,
13 including, but not limited to, the following:
14 (a) All stocks or shares of incorporated or
15 unincorporated business entities, all interests in other types
16 of entities, any interest in a limited liability company, any
17 interest as a partner in a partnership, either general or
18 limited, including limited liability partnerships companies,
19 business trusts, and mutual funds.
20 Section 3. Paragraph (c) of subsection (1) of section
21 199.185, Florida Statutes, is amended to read:
22 199.185 Property exempted from annual and nonrecurring
23 taxes.--
24 (1) The following intangible personal property shall
25 be exempt from the annual and nonrecurring taxes imposed by
26 this chapter:
27 (c) Any interest as a shareholder in a corporation, an
28 owner of an interest in any other type of entity, a member in
29 a limited liability company, a partner in a partnership,
30 including a limited liability partnership, either general or
31 limited, other than any such interest in an entity which
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1 interest or entity is interest as a limited partner in a
2 limited partnership registered with the Securities and
3 Exchange Commission pursuant to the Securities Act of 1933, as
4 amended.
5 Section 4. Paragraph (d) is added to subsection (6) of
6 section 212.12, Florida Statutes, to read:
7 212.12 Dealer's credit for collecting tax; penalties
8 for noncompliance; powers of Department of Revenue in dealing
9 with delinquents; brackets applicable to taxable transactions;
10 records required.--
11 (6)
12 (d) A taxpayer is entitled, both in connection with an
13 audit and in connection with an application for refund filed
14 independently of any audit, to establish the amount of an
15 overpayment through statistical sampling. Alternatively, a
16 taxpayer is entitled to establish an overpayment through any
17 other sampling method agreed upon by the taxpayer and the
18 department.
19 Section 5. Paragraph (a) of subsection (3) of section
20 213.21, Florida Statutes, is amended to read:
21 213.21 Informal conferences; compromises.--
22 (3)(a) A taxpayer's liability for any tax or interest
23 specified in s. 72.011(1) may be compromised by the department
24 upon the grounds of doubt as to liability for or
25 collectibility of such tax or interest. A taxpayer's liability
26 for penalties under any of the chapters specified in s.
27 72.011(1) shall may be settled or compromised if it is
28 determined by the department that the noncompliance is due to
29 reasonable cause and not to willful negligence, willful
30 neglect, or fraud. The facts and circumstances are subject to
31 de novo review to determine the existence of reasonable cause
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1 in any administrative proceeding or judicial action
2 challenging an assessment of penalty under any of the chapters
3 specified in s. 72.011(1). A taxpayer who establishes
4 reasonable reliance on the written advice issued by the
5 department to the taxpayer will be deemed to have shown
6 reasonable cause for the noncompliance. In addition, a
7 taxpayer's liability for penalties under any of the chapters
8 specified in s. 72.011(1) in excess of 25 percent of the tax
9 shall be settled or compromised if the department determines
10 that the noncompliance is due to reasonable cause and not to
11 willful negligence, willful neglect, or fraud. The department
12 shall maintain records of all compromises, and the records
13 shall state the basis for the compromise. The records of
14 compromise under this paragraph shall not be subject to
15 disclosure pursuant to s. 119.07(1) and shall be considered
16 confidential information governed by the provisions of s.
17 213.053.
18 Section 6. Subsection (2) of section 220.03, Florida
19 Statutes, is amended to read:
20 220.03 Definitions.--
21 (2) DEFINITIONAL RULES.--When used in this code and
22 neither otherwise distinctly expressed nor manifestly
23 incompatible with the intent thereof:
24 (a) The word "corporation" or "taxpayer" shall be
25 deemed to include the words "and its successors and assigns"
26 as if these words, or words of similar import, were
27 expressed.;
28 (b) Any term used in any section of this code with
29 respect to the application of, or in connection with, the
30 provisions of any other section of this code shall have the
31 same meaning as in such other section.; and
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1 (c) Any term used in this code shall have the same
2 meaning as when used in a comparable context in the Internal
3 Revenue Code and other statutes of the United States relating
4 to federal income taxes, as such code and statutes are in
5 effect on January 1, 2000. However, if subsection (3) is
6 implemented, the meaning of any term shall be taken at the
7 time the term is applied under this code.
8 (d) Notwithstanding any other provision of this
9 chapter, the tax classification of an entity, including a
10 single-member entity, as determined under sections 7701 and
11 7704 of the Internal Revenue Code and the Treasury Regulations
12 promulgated thereunder, is determinative of the entity's
13 classification under this chapter.
14 Section 7. Subsection (3) is added to section 608.471,
15 Florida Statutes, to read:
16 608.471 Tax exemption on income of certain limited
17 liability companies.--
18 (3) Single-member limited liability companies and
19 other entities that are disregarded for federal income tax
20 purposes must be treated as separate legal entities for all
21 non-income-tax purposes. The Department of Revenue shall adopt
22 rules to take into account that single-member disregarded
23 entities such as limited liability companies and qualified
24 subchapter S corporations may be disregarded as separate
25 entities for federal tax purposes and therefore may report and
26 account for income, employment, and other taxes under the
27 taxpayer identification number of the owner of the
28 single-member entity.
29 Section 8. This act shall take effect July 1, 2001.
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2 SENATE SUMMARY
3 Provides for jurisdiction and venue of certain taxpayer
actions in circuit court. Revises exemptions and a
4 definition under the intangible personal property tax.
Provides methods for the determination of overpayments by
5 persons paying the tax on sales, use, and other
transactions. Revises the process for review of a
6 taxpayer's liability under the revenue laws. Provides for
the classification of certain entities under the
7 corporation income tax law. Provides for the treatment of
single-member limited liability companies.
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