Bill Text: HB 0419

HB 0419

2003

CHAMBER ACTION

The Committee on Local Government & Veterans' Affairs recommends

the following:

Committee Substitute

Remove the entire bill and insert:

A bill to be entitled

An act relating to military service family relief;

providing an act name; creating ss. 212.0961 and 220.188,

F.S.; providing definitions; authorizing credits against

the sales and use tax and the corporate income tax for

salaries paid to military reservists on active duty;

providing limitations; providing requirements; amending s.

220.02, F.S.; revising legislative intent to include the

corporate income tax authorized in this act in a specified

order of priority; amending s. 220.13, F.S.; revising the

definition of adjusted federal income to include the

corporate income tax credit authorized in this act;

authorizing the Department of Revenue to adopt emergency

rules; providing an appropriation; providing for

retroactive effect; providing an effective date.

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

Section 1. This act is the “First Sergeant Carey Baker

Military Relief Act.”

Section 2. Section 212.0961, Florida Statutes, is created

to read:

212.0961 Credits for salaries paid to military reservists

while on active duty.--

(1) DEFINITIONS.--As used in this section:

(a) “Salary” means the cash compensation for personal

services or labor rendered for a specific period of time.

Benefits, including, but not limited to, life insurance, health

insurance, cafeteria plans, or pension contributions, are

excluded from the term "salary."

(b) “Full month" means either a calendar month or the time

period from any day of any month to the corresponding day of the

next succeeding month or, if there is no corresponding day in

the next succeeding month, the last day of the next succeeding

month.

state who is a member of the National Guard or reserve forces of

the United States military and has been called to federal active

duty.

(2) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS ON

INDIVIDUAL AND TOTAL CREDITS.--

(a) There is allowed a credit against the tax imposed

under this chapter for the salary paid to a military reservist

while the military reservist is on active duty. The credit for

each military reservist is limited to the salary paid to the

military reservist prior to being called to active duty less the

amount of the military reservist’s active duty base pay, special

duty pay, and housing allowance. The determination of the salary

paid to the military reservist prior to being called to active

duty shall be based on the first full month of employment

immediately prior to activation.

(b) Taxpayers may claim credit for each military reservist

under this section or s. 220.1875 or both as long as the total

credit claimed for each reservist does not exceed the amount

determined in paragraph (a).

fully used in any one year, the unused amount may be carried

forward for a period up to 5 years.

(3) ADMINISTRATION; RULES.--

(a) A taxpayer may not convey, assign, or transfer the

credit authorized by this section to another entity unless all

of the assets of the taxpayer are conveyed, assigned, or

transferred to that entity in the same transaction.

(b) Taxpayers claiming this credit must substantiate, by

means of adequate records, their eligibility for this credit and

the amount of credit claimed.

carryover provision in subsection (2), shall expire December 31,

2005.

Section 3. Subsection (8) of section 220.02, Florida

Statutes, is amended to read:

220.02 Legislative intent.--

(8) It is the intent of the Legislature that credits

against either the corporate income tax or the franchise tax be

applied in the following order: those enumerated in s. 631.828,

those enumerated in s. 220.191, those enumerated in s. 220.181,

those enumerated in s. 220.183, those enumerated in s. 220.182,

those enumerated in s. 220.1895, those enumerated in s. 221.02,

those enumerated in s. 220.184, those enumerated in s. 220.186,

those enumerated in s. 220.1845, those enumerated in s. 220.19,

those enumerated in s. 220.185, ~~and~~those enumerated in s.

220.187, and those enumerated in s. 220.1875.

Section 4. Paragraph (a) of subsection (1) of section

220.13, Florida Statutes, is amended to read:

220.13 "Adjusted federal income" defined.--

(1) The term "adjusted federal income" means an amount

equal to the taxpayer's taxable income as defined in subsection

(2), or such taxable income of more than one taxpayer as

provided in s. 220.131, for the taxable year, adjusted as

100

follows:

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(a) Additions.--There shall be added to such taxable

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income:

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1. The amount of any tax upon or measured by income,

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excluding taxes based on gross receipts or revenues, paid or

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accrued as a liability to the District of Columbia or any state

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of the United States which is deductible from gross income in

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the computation of taxable income for the taxable year.

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2. The amount of interest which is excluded from taxable

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income under s. 103(a) of the Internal Revenue Code or any other

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federal law, less the associated expenses disallowed in the

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computation of taxable income under s. 265 of the Internal

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Revenue Code or any other law, excluding 60 percent of any

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amounts included in alternative minimum taxable income, as

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defined in s. 55(b)(2) of the Internal Revenue Code, if the

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taxpayer pays tax under s. 220.11(3).

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3. In the case of a regulated investment company or real

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estate investment trust, an amount equal to the excess of the

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net long-term capital gain for the taxable year over the amount

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of the capital gain dividends attributable to the taxable year.

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4. That portion of the wages or salaries paid or incurred

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for the taxable year which is equal to the amount of the credit

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allowable for the taxable year under s. 220.181. The provisions

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of this subparagraph shall expire and be void on June 30, 2005.

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5. That portion of the ad valorem school taxes paid or

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incurred for the taxable year which is equal to the amount of

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the credit allowable for the taxable year under s. 220.182. The

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provisions of this subparagraph shall expire and be void on June

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30, 2005.

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6. The amount of emergency excise tax paid or accrued as a

130

liability to this state under chapter 221 which tax is

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deductible from gross income in the computation of taxable

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income for the taxable year.

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7. That portion of assessments to fund a guaranty

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association incurred for the taxable year which is equal to the

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amount of the credit allowable for the taxable year.

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8. In the case of a nonprofit corporation which holds a

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pari-mutuel permit and which is exempt from federal income tax

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as a farmers' cooperative, an amount equal to the excess of the

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gross income attributable to the pari-mutuel operations over the

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attributable expenses for the taxable year.

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9. The amount taken as a credit for the taxable year under

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s. 220.1895.

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10. Up to nine percent of the eligible basis of any

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designated project which is equal to the credit allowable for

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the taxable year under s. 220.185.

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11. The amount taken as a credit for the taxable year

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under s. 220.187.

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12. The amount taken as a credit for the taxable year under

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s. 220.1875.

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Section 5. Section 220.1875, Florida Statutes, is created

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to read:

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220.1875 Credits for salaries paid to military reservists

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while on active duty.--

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(1) DEFINITIONS.--As used in this section:

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(a) “Salary” means the cash compensation for personal

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services or labor rendered for a specific period of time.

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Benefits, including, but not limited to, life insurance, health

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insurance, cafeteria plans, or pension contributions, are

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excluded from the term "salary."

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(b) “Full month" means either a calendar month or the time

161

period from any day of any month to the corresponding day of the

162

next succeeding month or, if there is no corresponding day in

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the next succeeding month, the last day of the next succeeding

164

month.

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state who is a member of the National Guard or reserve forces of

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the United States military and has been called to federal active

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duty.

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(2) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS ON

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INDIVIDUAL AND TOTAL CREDITS.--

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(a) There is allowed a credit against the tax imposed

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under this chapter for the salary paid to a military reservist

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while the military reservist is on active duty. The credit for

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each military reservist is limited to the salary paid to the

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military reservist prior to being called to active duty less the

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amount of the military reservist’s active duty base pay, special

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duty pay, and housing allowance. The determination of the salary

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paid to the military reservist prior to being called to active

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duty shall be based on the first full month of employment

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immediately prior to activation.

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(b) Taxpayers may claim credit for each military reservist

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under this section or s. 212.0961 or both as long as the total

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credit claimed for each reservist does not exceed the amount

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determined in paragraph (a).

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fully used in any one year, the unused amount may be carried

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forward for a period up to 5 years.

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(3) ADMINISTRATION; RULES.--

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(a) A taxpayer may not convey, assign, or transfer the

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credit authorized by this section to another entity unless all

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of the assets of the taxpayer are conveyed, assigned, or

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transferred to that entity in the same transaction.

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(b) Taxpayers claiming this credit must substantiate, by

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means of adequate records, their eligibility for this credit and

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the amount of credit claimed.

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carryover provision in subsection (2), shall expire December 31,

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2005.

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Section 6. Notwithstanding the provisions of chapter 120,

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Florida Statutes, the Department of Revenue may adopt emergency

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rules to carry out this act, which rules shall remain in effect

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for six months after the date of adoption.

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Section 7. The sum of $200,000 is appropriated from the

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General Revenue Fund to the Department of Revenue for the

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purpose of administering this act.

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Section 8. This act shall take effect upon becoming a law

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and shall operate retroactively to January 1, 2003.