Senate Bill sb0426e1
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1 A bill to be entitled
2 An act relating to tax administration; amending
3 s. 199.052, F.S.; eliminating the requirement
4 that a corporation file an intangibles tax
5 return when no tax is due; repealing s.
6 199.062(1) and (2), F.S.; eliminating the
7 requirement that a corporation file an annual
8 information return regarding stock value;
9 amending s. 199.218, F.S.; eliminating the
10 requirement that a corporation maintain records
11 relating to information reported under s.
12 199.062(2), F.S.; amending s. 199.282, F.S.;
13 eliminating the penalty imposed upon a
14 corporation for failure to file the notice
15 required under s. 199.062(2), F.S.; repealing
16 s. 201.05, F.S., relating to tax on stock
17 certificates; amending s. 201.08, F.S.;
18 providing for the maximum tax that must be paid
19 on unsecured obligations; conforming
20 cross-references; amending s. 212.11, F.S.;
21 authorizing the Department of Revenue to
22 require a report to be submitted when filing a
23 sales and use tax return that claims certain
24 credits; authorizing the department to adopt
25 rules regarding the forms and documentation
26 required to verify these credits; authorizing
27 the department to disallow any credit not
28 supported by the required report and to impose
29 penalties and interest; amending s. 212.18,
30 F.S.; authorizing the Department of Revenue to
31 waive registration fees for online
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1 registrations and registrations made using the
2 Multistate Tax Commission procedures; amending
3 s. 220.22, F.S.; eliminating initial
4 information returns for certain corporations;
5 amending s. 220.23, F.S.; providing that
6 interest on any deficiency accrues from the
7 date fixed for filing the original return;
8 amending s. 220.809, F.S.; conforming
9 provisions; amending s. 376.70, F.S.;
10 authorizing the Department of Revenue to waive
11 registration fees for online registrations;
12 amending s. 443.131, F.S.; allowing certain
13 employers of domestic employees to file
14 annually for unemployment tax; providing an
15 appropriation to the Department of Revenue;
16 amending s. 220.15, F.S., which provides for
17 apportionment of adjusted federal income to
18 this state; revising the conditions for
19 determining when sales of tangible personal
20 property occur in this state for certain
21 industries; providing for retroactive effect;
22 amending s. 72.011, F.S.; providing for the
23 venue and jurisdiction of taxpayer actions in
24 circuit court; amending s. 212.12, F.S.;
25 providing for methods of determining
26 overpayments by persons paying the tax on
27 sales, use, and other transactions; amending s.
28 213.21, F.S.; revising the process for review
29 of a taxpayer's liability for tax and interest;
30 amending ss. 213.285, F.S., 213.053, F.S.;
31 postponing the repeal of the certified audits
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1 project; amending s. 608.471, F.S.; providing
2 for the tax treatment of certain types of
3 limited liability companies; amending s.
4 220.187, F.S.; providing for an additional
5 class of "qualified student," repealing section
6 9 of ch. 2001-225, Laws of Florida; repealing
7 an incorrect statutory reference; repealing s.
8 220.331, F.S.; allowing credits to be applied
9 to the first two estimated payments; providing
10 effective dates.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Subsection (2) of section 199.052, Florida
15 Statutes, is amended to read:
16 199.052 Annual tax returns; payment of annual tax.--
17 (2) No person, corporation, agent, or fiduciary shall
18 be required to pay the annual tax in any year when the
19 aggregate annual tax upon the person's intangible personal
20 property, after exemptions but before application of any
21 discount for early filing, would be less than $60. In such
22 case, an annual return is not required unless the taxpayer is
23 a corporation or an agent or fiduciary of whom the department
24 requires an informational return. Agents and fiduciaries shall
25 report for each person for whom they hold intangible personal
26 property if the aggregate annual tax on such person is $60 or
27 more.
28 Section 2. Subsections (1) and (2) of section 199.062,
29 Florida Statutes, are repealed.
30 Section 3. Subsection (2) of section 199.218, Florida
31 Statutes, is amended to read:
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1 199.218 Books and records.--
2 (2) Each corporation and broker subject to the
3 provisions of s. 199.062 shall preserve all books and other
4 records relating to the information reported under s. 199.062
5 or otherwise required by rule of the department for a period
6 of 3 years from the due date of the report.
7 Section 4. Paragraph (a) of subsection (6) of section
8 199.282, Florida Statutes, is amended to read:
9 199.282 Penalties for violation of this chapter.--
10 (6) Late reporting penalties shall be imposed as
11 follows:
12 (a) A penalty of $100 upon any corporation that which
13 does not timely file a written notice required under s.
14 199.057(2)(c) or s. 199.062(2).
15 Section 5. Section 201.05, Florida Statutes, is
16 repealed.
17 Section 6. Subsections (1), (2), (4), and (5) of
18 section 201.08, Florida Statutes, are amended to read:
19 201.08 Tax on promissory or nonnegotiable notes,
20 written obligations to pay money, or assignments of wages or
21 other compensation; exception.--
22 (1)(a) On promissory notes, nonnegotiable notes,
23 written obligations to pay money, or assignments of salaries,
24 wages, or other compensation made, executed, delivered, sold,
25 transferred, or assigned in the state, and for each renewal of
26 the same, the tax shall be 35 cents on each $100 or fraction
27 thereof of the indebtedness or obligation evidenced thereby.
28 The tax on any document described in this paragraph may not
29 exceed $2,450.
30 (b) On mortgages, trust deeds, security agreements, or
31 other evidences of indebtedness filed or recorded in this
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1 state, and for each renewal of the same, the tax shall be 35
2 cents on each $100 or fraction thereof of the indebtedness or
3 obligation evidenced thereby. Mortgages, including, but not
4 limited to, mortgages executed without the state and recorded
5 in the state, which incorporate the certificate of
6 indebtedness, not otherwise shown in separate instruments, are
7 subject to the same tax at the same rate. When there is both
8 a mortgage, trust deed, or security agreement and a note,
9 certificate of indebtedness, or obligation, the tax shall be
10 paid on the mortgage, trust deed, or security agreement at the
11 time of recordation. A notation shall be made on the note,
12 certificate of indebtedness, or obligation that the tax has
13 been paid on the mortgage, trust deed, or security agreement.
14 If a mortgage, trust deed, security agreement, or other
15 evidence of indebtedness is subsequently filed or recorded in
16 this state to evidence an indebtedness or obligation upon
17 which tax was paid under paragraph (a) or subsection (2), tax
18 shall be paid on the mortgage, trust deed, security agreement,
19 or other evidence of indebtedness on the amount of the
20 indebtedness or obligation evidenced which exceeds the
21 aggregate amount upon which tax was previously paid under this
22 paragraph and under paragraph (a) or subsection (2). If the
23 mortgage, trust deed, security agreement, or other evidence of
24 indebtedness subject to the tax levied by this section secures
25 future advances, as provided in s. 697.04, the tax shall be
26 paid at the time of recordation on the initial debt or
27 obligation secured, excluding future advances; at the time and
28 so often as any future advance is made, the tax shall be paid
29 on all sums then advanced regardless of where such advance is
30 made. Notwithstanding the aforestated general rule, any
31 increase in the amount of original indebtedness caused by
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1 interest accruing under an adjustable rate note or mortgage
2 having an initial interest rate adjustment interval of not
3 less than 6 months shall be taxable as a future advance only
4 to the extent such increase is a computable sum certain when
5 the document is executed. Failure to pay the tax shall not
6 affect the lien for any such future advance given by s.
7 697.04, but any person who fails or refuses to pay such tax
8 due by him or her is guilty of a misdemeanor of the first
9 degree. The mortgage, trust deed, or other instrument shall
10 not be enforceable in any court of this state as to any such
11 advance unless and until the tax due thereon upon each advance
12 that may have been made thereunder has been paid.
13 (2)(a) On promissory notes, nonnegotiable notes,
14 written obligations to pay money, or other compensation, made,
15 executed, delivered, sold, transferred, or assigned in the
16 state, in connection with sales made under retail charge
17 account services, incident to sales which are not conditional
18 in character and which are not secured by mortgage or other
19 pledge of purchaser, the tax shall be 35 cents on each $100 or
20 fraction thereof of the gross amount of the indebtedness
21 evidenced by such instruments, payable quarterly on such forms
22 and under such rules and regulations as may be promulgated by
23 the Department of Revenue. The tax on any document described
24 in this paragraph may not exceed $2,450.
25 (b) Any receipt, charge slip, or other record of a
26 transaction effected with the use of a credit card, charge
27 card, or debit card shall be exempt from the tax imposed by
28 this section.
29 (4) Notwithstanding paragraph (1)(b) subsection (1), a
30 supplement or an amendment to a mortgage, deed of trust,
31 indenture, or security agreement, which supplement or
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1 amendment is filed or recorded in this state in connection
2 with a new issue of bonds, shall be subject to the tax imposed
3 by paragraph (1)(b) subsection (1) only to the extent of the
4 aggregate amount of the new issue of bonds or other evidence
5 of indebtedness and not to the extent of the aggregate amount
6 of bonds or other evidence of indebtedness previously issued
7 under the instrument being supplemented or amended. In order
8 to qualify for the tax treatment provided for in this
9 subsection, the document which evidences the increase in
10 indebtedness must show the official records book and page
11 number in which, and the county in which, the original
12 obligation and any prior increase in that obligation were
13 recorded.
14 (5) For purposes of this section, a renewal shall only
15 include modifications of an original document which change the
16 terms of the indebtedness evidenced by the original document
17 by adding one or more obligors, increasing the principal
18 balance, or changing the interest rate, maturity date, or
19 payment terms. Modifications to documents which do not modify
20 the terms of the indebtedness evidenced such as those given or
21 recorded to correct error; modify covenants, conditions, or
22 terms unrelated to the debt; sever a lien into separate liens;
23 provide for additional, substitute, or further security for
24 the indebtedness; consolidate indebtedness or collateral; add,
25 change, or delete guarantors; or which substitute a new
26 mortgagee or payee are not renewals and are not subject to tax
27 pursuant to this section. If the taxable amount of a mortgage
28 is limited by language contained in the mortgage or by the
29 application of rules limiting the tax base when there is
30 collateral in more than one state, then a modification which
31 changes such limitation or tax base shall be taxable only to
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1 the extent of any increase in the limitation or tax base
2 attributable to such modification. This subsection shall not
3 be interpreted to exempt from taxation an original mortgage
4 that which would otherwise be subject to tax pursuant to
5 paragraph (1)(b) subsection (1).
6 Section 7. Subsection (5) is added to section 212.11,
7 Florida Statutes, to read:
8 212.11 Tax returns and regulations.--
9 (5)(a) Each dealer that claims any credits granted in
10 this chapter against that dealer's sales and use tax
11 liabilities shall submit to the department, upon request,
12 documentation that provides all of the information required to
13 verify the dealer's entitlement to such credits, excluding
14 credits authorized pursuant to the provisions of s. 212.17.
15 All information must be broken down as prescribed by the
16 department and shall be submitted in a manner that enables the
17 department to verify that the credits are allowable by law.
18 With respect to any credit that is granted in the form of a
19 refund of previously paid taxes, supporting documentation must
20 be provided with the application for refund, and the penalty
21 provisions of paragraph (c) do not apply.
22 (b) The department shall adopt rules regarding the
23 forms and documentation required to verify credits against
24 sales and use tax liabilities and the format in which
25 documentation is to be submitted, which format may include
26 magnetic tape or other means of electronic transmission.
27 (c) The department shall disallow any credit that is
28 not supported by the information required under this
29 subsection. In addition, the disallowed credit or any part of
30 the credit disallowed is subject to a mandatory penalty of 25
31 percent and interest as provided for in s. 212.12. A specific
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1 penalty of 25 percent of the otherwise available credit shall
2 be applied to any credit for which the required information
3 report is not received within 30 days after a written request
4 from the department.
5 Section 8. Effective upon this act becoming a law,
6 paragraph (a) of subsection (3) of section 212.18, Florida
7 Statutes, is amended to read:
8 212.18 Administration of law; registration of dealers;
9 rules.--
10 (3)(a) Every person desiring to engage in or conduct
11 business in this state as a dealer, as defined in this
12 chapter, or to lease, rent, or let or grant licenses in living
13 quarters or sleeping or housekeeping accommodations in hotels,
14 apartment houses, roominghouses, or tourist or trailer camps
15 that are subject to tax under s. 212.03, or to lease, rent, or
16 let or grant licenses in real property, as defined in this
17 chapter, and every person who sells or receives anything of
18 value by way of admissions, must file with the department an
19 application for a certificate of registration for each place
20 of business, showing the names of the persons who have
21 interests in such business and their residences, the address
22 of the business, and such other data as the department may
23 reasonably require. However, owners and operators of vending
24 machines or newspaper rack machines are required to obtain
25 only one certificate of registration for each county in which
26 such machines are located. The department, by rule, may
27 authorize a dealer that uses independent sellers to sell its
28 merchandise to remit tax on the retail sales price charged to
29 the ultimate consumer in lieu of having the independent seller
30 register as a dealer and remit the tax. The department may
31 appoint the county tax collector as the department's agent to
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1 accept applications for registrations. The application must be
2 made to the department before the person, firm, copartnership,
3 or corporation may engage in such business, and it must be
4 accompanied by a registration fee of $5. However, a
5 registration fee is not required to accompany an application
6 to engage in or conduct business to make mail order sales. The
7 department may waive the registration fee for applications
8 submitted through the department's Internet registration
9 process.
10 Section 9. Subsection (4) of section 220.22, Florida
11 Statutes, is amended to read:
12 220.22 Returns; filing requirement.--
13 (4) The department shall designate by rule certain
14 not-for-profit entities and others that are not required to
15 file a return under this code, including an initial
16 information return, unless the entities have taxable income as
17 defined in s. 220.13(2). These entities must include
18 subchapter S corporations, tax-exempt entities, and others
19 that do not usually owe federal income tax. For the year in
20 which an election is made pursuant to s. 1361(b)(3) of the
21 Internal Revenue Code, the qualified subchapter S subsidiary
22 shall file an informational return with the department, which
23 return shall be restricted to information identifying the
24 subsidiary, the electing S corporation parent, and the
25 effective date of the election.
26 Section 10. Present paragraph (d) of subsection (2) of
27 section 220.23, Florida Statutes, is redesignated as paragraph
28 (e), and a new paragraph (d) is added to that subsection, to
29 read:
30 220.23 Federal returns.--
31
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1 (2) In the event the taxable income, any item of
2 income or deduction, or the income tax liability reported in a
3 federal income tax return of any taxpayer for any taxable year
4 is adjusted by amendment of such return or as a result of any
5 other recomputation or redetermination of federal taxable
6 income or loss, if such adjustment would affect any item or
7 items entering into the computation of such taxpayer's net
8 income subject to tax for any taxable year under this code,
9 the following special rules shall apply:
10 (d) Interest in accordance with s. 220.807 is due on
11 the amount of any deficiency from the date fixed for filing
12 the original return for the taxable year, determined without
13 regard to any extension of time for filing the original
14 return, until the date of payment of the deficiency.
15 Section 11. Subsection (1) of section 220.809, Florida
16 Statutes, is amended to read:
17 220.809 Interest on deficiencies.--
18 (1) Except as provided in s. 220.23(2)(d), if any
19 amount of tax imposed by this chapter is not paid on or before
20 the date, determined without regard to any extensions,
21 prescribed for payment of such tax, interest shall be paid in
22 accordance with the provisions of s. 220.807 on the unpaid
23 amount from such date to the date of payment.
24 Section 12. Subsection (2) of section 376.70, Florida
25 Statutes, is amended to read:
26 376.70 Tax on gross receipts of drycleaning
27 facilities.--
28 (2) Each drycleaning facility or dry drop-off facility
29 imposing a charge for the drycleaning or laundering of
30 clothing or other fabrics is required to register with the
31 Department of Revenue and become licensed for the purposes of
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1 this section. The owner or operator of the facility shall
2 register the facility with the Department of Revenue.
3 Drycleaning facilities or dry drop-off facilities operating at
4 more than one location are only required to have a single
5 registration. The fee for registration is $30. The owner or
6 operator of the facility shall pay the registration fee to the
7 Department of Revenue. The department may waive the
8 registration fee for applications submitted through the
9 department's Internet registration process.
10 Section 13. Subsection (1) of section 443.131, Florida
11 Statutes, is amended to read:
12 443.131 Contributions.--
13 (1) WHEN PAYABLE.--Contributions shall accrue and
14 become payable by each employer for each calendar quarter in
15 which he or she is subject to this chapter, with respect to
16 wages paid during such calendar quarter for employment. Such
17 contributions shall become due and be paid by each employer to
18 the Agency for Workforce Innovation or its designee division
19 for the fund, in accordance with such rules as the Agency for
20 Workforce Innovation or its designee division may prescribe.
21 However, nothing in this subsection shall be construed to
22 prohibit the Agency for Workforce Innovation or its designee
23 division from allowing, on a limited basis, at the request of
24 the employer, certain employers of employees performing
25 domestic services, as defined in s. 443.036(21)(g) and by rule
26 of the division, to pay contributions or report wages at
27 intervals other than quarterly when such payment or reporting
28 is to the advantage of the Agency for Workforce Innovation or
29 its designee division and the employers, and when such
30 nonquarterly payment and reporting is authorized under federal
31 law. This provision gives employers of employees performing
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1 domestic services the option to elect to report wages and pay
2 taxes annually, with a due date of January April 1 and a
3 delinquency date of February 1 April 30. In order to qualify
4 for this election, the employer must employ have only
5 employees who perform domestic services employees, be eligible
6 for a variation from the standard rate as computed pursuant to
7 s. 443.131(3) in good standing, apply to this program no later
8 than December 1 30 of the preceding calendar year, and agree
9 to provide the Agency for Workforce Innovation or its designee
10 division with any special reports which might be requested, as
11 required by rule 60BB-2.025(5) 38B-2.025(5), including copies
12 of all federal employment tax forms. Failure to timely furnish
13 any wage information when required by the Agency for Workforce
14 Innovation or its designee shall may result in the employer's
15 loss of the privilege to elect participation in this program,
16 effective the calendar quarter immediately following the
17 calendar quarter in which such failure occurred. The employer
18 is eligible to reapply for annual reporting after one complete
19 calendar year has elapsed since the employer's
20 disqualification if the employer timely furnished any
21 requested wage information during the period in which annual
22 reporting was denied. Contributions shall not be deducted, in
23 whole or in part, from the wages of individuals in such
24 employer's employ. In the payment of any contributions, a
25 fractional part of a cent shall be disregarded unless it
26 amounts to one-half cent or more, in which case it shall be
27 increased to 1 cent.
28 Section 14. Effective upon this act becoming a law,
29 and applying to tax years beginning on or after January 1,
30 2002, paragraph (b) of subsection (5) of section 220.15,
31 Florida Statutes, is amended to read:
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1 220.15 Apportionment of adjusted federal income.--
2 (5) The sales factor is a fraction the numerator of
3 which is the total sales of the taxpayer in this state during
4 the taxable year or period and the denominator of which is the
5 total sales of the taxpayer everywhere during the taxable year
6 or period.
7 (b)1. Sales of tangible personal property occur in
8 this state if the property is delivered or shipped to a
9 purchaser within this state, regardless of the f.o.b. point,
10 other conditions of the sale, or ultimate destination of the
11 property, unless shipment is made via a common or contract
12 carrier. However, for industries in SIC Industry Number 2037,
13 if the ultimate destination of the product is to a location
14 outside this state, regardless of the method of shipment or
15 f.o.b. point, the sale shall not be deemed to occur in this
16 state.
17 2. When citrus fruit is delivered by a cooperative for
18 a grower-member, by a grower-member to a cooperative, or by a
19 grower-participant to a Florida processor, the sales factor
20 for the growers for such citrus fruit delivered to such
21 processor shall be the same as the sales factor for the most
22 recent taxable year of that processor. That sales factor,
23 expressed only as a percentage and not in terms of the dollar
24 volume of sales, so as to protect the confidentiality of the
25 sales of the processor, shall be furnished on the request of
26 such a grower promptly after it has been determined for that
27 taxable year.
28 3. Reimbursement of expenses under an agency contract
29 between a cooperative, a grower-member of a cooperative, or a
30 grower and a processor is not a sale within this state.
31
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1 Section 15. Paragraph (a) of subsection (4) and
2 subsection (5) of section 72.011, Florida Statutes, are
3 amended to read:
4 72.011 Jurisdiction of circuit courts in specific tax
5 matters; administrative hearings and appeals; time for
6 commencing action; parties; deposits.--
7 (4)(a) Except as provided in paragraph (b), an action
8 initiated in circuit court pursuant to subsection (1) shall be
9 filed in the Second Judicial Circuit Court in and for Leon
10 County or in the circuit court in the county where the
11 taxpayer resides, or maintains its principal commercial
12 domicile in this state, or, in the ordinary course of
13 business, regularly maintains its books and records in this
14 state.
15 (5) The requirements of subsections (1), (2), and (3)
16 this section are jurisdictional.
17 Section 16. Paragraph (c) of subsection (6) of section
18 212.12, Florida Statutes, is amended to read:
19 212.12 Dealer's credit for collecting tax; penalties
20 for noncompliance; powers of Department of Revenue in dealing
21 with delinquents; brackets applicable to taxable transactions;
22 records required.--
23 (6)
24 (c)1. If the records of a dealer are adequate but
25 voluminous in nature and substance, the department may sample
26 such records, except for fixed assets, and project the audit
27 findings derived therefrom over the entire audit period to
28 determine the proportion that taxable retail sales bear to
29 total retail sales or the proportion that taxable purchases
30 bear to total purchases. In order to conduct such a sample,
31 the department must first make a good faith effort to reach an
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1 agreement with the dealer, which agreement provides for the
2 means and methods to be used in the sampling process. In the
3 event that no agreement is reached, the dealer is entitled to
4 a review by the executive director.
5 2. For the purposes of sampling pursuant to
6 subparagraph 1., the department shall project any deficiencies
7 and overpayments derived therefrom over the entire audit
8 period. In determining the dealer's compliance, the department
9 shall reduce any tax deficiency as derived from the sample by
10 the amount of any overpayment derived from the sample. In the
11 event the department determines from the sample results that
12 the dealer has a net tax overpayment, the department shall
13 provide the findings of this overpayment to the Comptroller
14 for repayment of funds paid into the State Treasury through
15 error pursuant to s. 215.26.
16 3.a. A taxpayer is entitled, both in connection with
17 an audit and in connection with an application for refund
18 filed independently of any audit, to establish the amount of
19 any refund or deficiency through statistical sampling when the
20 taxpayer's records, other than those regarding fixed assets,
21 are adequate but voluminous. Alternatively, a taxpayer is
22 entitled to establish any refund or deficiency through any
23 other sampling method agreed upon by the taxpayer and the
24 department when the taxpayer's records, other than those
25 regarding fixed assets, are adequate but voluminous. Whether
26 done through statistical sampling or any other sampling method
27 agreed upon by the taxpayer and the department, the completed
28 sample must reflect both overpayments and underpayments of
29 taxes due. The sample shall be conducted through:
30 (I) A taxpayer request to perform the sampling through
31 the Certified Audit Program pursuant to s. 213.285;
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1 (II) Attestation by a Certified Public Accountant as
2 to the adequacy of the sampling method utilized and the
3 results reached using such sampling method; or
4 (III) A sampling method that has been submitted by the
5 taxpayer and approved by the department before a refund claim
6 is submitted. This sub-sub-subparagraph does not prohibit a
7 taxpayer from filing a refund claim prior to approval by the
8 department of the sampling method; however, a refund claim
9 submitted before the sampling method has been approved by the
10 department cannot be a complete refund application pursuant to
11 s. 213.255 until the sampling method has been approved by the
12 department.
13 b. The department shall prescribe by rule the
14 procedures to be followed under each method of sampling. Such
15 procedures shall follow generally accepted auditing procedures
16 for sampling. The rule shall also set forth other criteria
17 regarding the use of sampling, including but not limited to
18 training requirements that must be met before a sampling
19 method may be utilized and the steps necessary for the
20 department and the taxpayer to reach agreement on a sampling
21 method submitted by the taxpayer for approval by the
22 department.
23 Section 17. Effective July 1, 2002, paragraph (a) of
24 subsection (3) and subsection (8) of section 213.21, Florida
25 Statutes, are amended to read:
26 213.21 Informal conferences; compromises.--
27 (3)(a) A taxpayer's liability for any tax or interest
28 specified in s. 72.011(1) may be compromised by the department
29 upon the grounds of doubt as to liability for or
30 collectibility of such tax or interest. A taxpayer's liability
31 for penalties under any of the chapters specified in s.
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1 72.011(1) may be settled or compromised if it is determined by
2 the department that the noncompliance is due to reasonable
3 cause and not to willful negligence, willful neglect, or
4 fraud. The facts and circumstances are subject to de novo
5 review to determine the existence of reasonable cause in any
6 administrative proceeding or judicial action challenging an
7 assessment of penalty under any of the chapters specified in
8 s. 72.011(1). A taxpayer who establishes reasonable reliance
9 on the written advice issued by the department to the taxpayer
10 will be deemed to have shown reasonable cause for the
11 noncompliance. In addition, a taxpayer's liability for
12 penalties under any of the chapters specified in s. 72.011(1)
13 in excess of 25 percent of the tax shall be settled or
14 compromised if the department determines that the
15 noncompliance is due to reasonable cause and not to willful
16 negligence, willful neglect, or fraud. The department shall
17 maintain records of all compromises, and the records shall
18 state the basis for the compromise. The records of compromise
19 under this paragraph shall not be subject to disclosure
20 pursuant to s. 119.07(1) and shall be considered confidential
21 information governed by the provisions of s. 213.053.
22 (8) In order to determine whether certified audits are
23 an effective tool in the overall state tax collection effort,
24 the executive director of the department or the executive
25 director's designee shall settle or compromise penalty
26 liabilities of taxpayers who participate in the certified
27 audits project. As further incentive for participating in the
28 program, the department shall abate the first $25,000 of any
29 interest liability and 25 percent of any interest due in
30 excess of the first $25,000. A settlement or compromise of
31 penalties or interest pursuant to this subsection shall not be
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1 subject to the provisions of paragraph (3)(a), except for the
2 requirement relating to confidentiality of records. The
3 department may consider an additional compromise of tax or
4 interest pursuant to the provisions of paragraph (3)(a). This
5 subsection does not apply to any liability related to taxes
6 collected but not remitted to the department. This subsection
7 is repealed on July 1, 2006 2002.
8 Section 18. Effective July 1, 2002, paragraph (c) of
9 subsection (2) of section 213.285, Florida Statutes, is
10 amended to read:
11 213.285 Certified audits.--
12 (2)
13 (c) The certified audits project is repealed on July
14 1, 2006 2002, or upon completion of the project as determined
15 by the department, whichever occurs first.
16 Section 19. Effective July 1, 2002, paragraph (n) of
17 subsection (7) of section 213.053, Florida Statutes, is
18 amended to read:
19 213.053 Confidentiality and information sharing.--
20 (7) Notwithstanding any other provision of this
21 section, the department may provide:
22 (n) Information contained in returns, reports,
23 accounts, or declarations to the Board of Accountancy in
24 connection with a disciplinary proceeding conducted pursuant
25 to chapter 473 when related to a certified public accountant
26 participating in the certified audits project, or to the court
27 in connection with a civil proceeding brought by the
28 department relating to a claim for recovery of taxes due to
29 negligence on the part of a certified public accountant
30 participating in the certified audits project. In any
31 judicial proceeding brought by the department, upon motion for
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1 protective order, the court shall limit disclosure of tax
2 information when necessary to effectuate the purposes of this
3 section. This paragraph is repealed on July 1, 2006 2002.
4 Section 20. Subsection (3) is added to section
5 608.471, Florida Statutes, to read:
6 608.471 Tax exemption on income of certain limited
7 liability companies.--
8 (3) Single-member limited liability companies and
9 other entities that are disregarded for federal income tax
10 purposes must be treated as separate legal entities for all
11 non-income-tax purposes. The Department of Revenue shall adopt
12 rules to take into account that single-member disregarded
13 entities such as limited liability companies and qualified
14 subchapter S corporations may be disregarded as separate
15 entities for federal tax purposes and therefore may report and
16 account for income, employment, and other taxes under the
17 taxpayer identification number of the owner of the
18 single-member entity.
19 Section 21. Effective upon this act becoming a law,
20 paragraph (e) of subsection (2) of section 220.187, Florida
21 Statutes, is amended to read:
22 220.187 Credits for contributions to nonprofit
23 scholarship-funding organizations.--
24 (2) DEFINITIONS.--As used in this section, the term:
25 (e) "Qualified student" means a student who qualifies
26 for free or reduced-price school lunches under the National
27 School Lunch Act and who:
28 1. Was counted as a full-time-equivalent student
29 during the previous state fiscal year for purposes of state
30 per-student funding; or
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1 2. Received a scholarship from an eligible nonprofit
2 scholarship-funding organization during the previous school
3 year; or.
4 3. Is eligible to enter kindergarten or first grade.
5 Section 22. Effective upon this act becoming a law,
6 section 9 of chapter 2001-225, Laws of Florida, is repealed.
7 Section 23. Effective upon this act becoming a law,
8 section 220.331, Florida Statutes, is repealed.
9 Section 24. Except for this section and sections 10,
10 16, 23, 24, and 25 of this act, which shall take effect upon
11 becoming a law, and sections 19, 20, and 21 of this act, which
12 shall take effect July 1, 2002, this act shall take effect
13 January 1, 2003.
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