Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS for SB 2482
                        Barcode 463796
                            CHAMBER ACTION
              Senate                               House
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 3         Floor: 3/AD/2R          .                    
       04/27/2007 05:31 PM         .                    
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11  Senator Haridopolos moved the following amendment:
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13         Senate Amendment (with directory and title amendments) 
14         On page 54, between lines 3 and 4,
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16  insert:  
17         (6)
18         (c)1.  If the records of a dealer are adequate but
19  voluminous in nature and substance, the department may sample
20  such records, except for fixed assets, and project the audit
21  findings derived therefrom over the entire audit period to
22  determine the proportion that taxable retail sales bear to
23  total retail sales or the proportion that taxable purchases
24  bear to total purchases. In order to conduct such a sample,
25  the department must first make a good faith effort to reach an
26  agreement with the dealer, which agreement provides for the
27  means and methods to be used in the sampling process.  In the
28  event that no agreement is reached, the dealer is entitled to
29  a review by the executive director. In the case of fixed
30  assets, a dealer may agree in writing with the department for
31  adequate but voluminous records to be statistically sampled.
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    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS for SB 2482
                        Barcode 463796
 1  Such an agreement shall provide for the methodology to be used
 2  in the statistical sampling process. The audit findings
 3  derived therefrom shall be projected over the period
 4  represented by the sample in order to determine the proportion
 5  that taxable purchases bear to total purchases. Once an
 6  agreement has been signed, it is final and conclusive with
 7  respect to the method of sampling fixed assets, and the
 8  department may not conduct a detailed audit of fixed assets
 9  and the taxpayer may not request a detailed audit after the
10  agreement is reached.
11         2.  For the purposes of sampling pursuant to
12  subparagraph 1., the department shall project any deficiencies
13  and overpayments derived therefrom over the entire audit
14  period. In determining the dealer's compliance, the department
15  shall reduce any tax deficiency as derived from the sample by
16  the amount of any overpayment derived from the sample. In the
17  event the department determines from the sample results that
18  the dealer has a net tax overpayment, the department shall
19  provide the findings of this overpayment to the Chief
20  Financial Officer for repayment of funds paid into the State
21  Treasury through error pursuant to s. 215.26.
22         3.a.  A taxpayer is entitled, both in connection with
23  an audit and in connection with an application for refund
24  filed independently of any audit, to establish the amount of
25  any refund or deficiency through statistical sampling when the
26  taxpayer's records, other than those regarding fixed assets,
27  are adequate but voluminous. In the case of fixed assets, a
28  dealer may agree in writing with the department for adequate
29  but voluminous records to be statistically sampled. Such an
30  agreement shall provide for the methodology to be used in the
31  statistical sampling process. The audit findings derived
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    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS for SB 2482
                        Barcode 463796
 1  therefrom shall be projected over the period represented by
 2  the sample in order to determine the proportion that taxable
 3  purchases bear to total purchases. Once an agreement has been
 4  signed, it is final and conclusive with respect to the method
 5  of sampling fixed assets, and the department may not conduct a
 6  detailed audit of fixed assets and the taxpayer may not
 7  request a detailed audit after the agreement is reached.
 8         b.  Alternatively, a taxpayer is entitled to establish
 9  any refund or deficiency through any other sampling method
10  agreed upon by the taxpayer and the department when the
11  taxpayer's records, other than those regarding fixed assets,
12  are adequate but voluminous. Whether done through statistical
13  sampling or any other sampling method agreed upon by the
14  taxpayer and the department, the completed sample must reflect
15  both overpayments and underpayments of taxes due. The sample
16  shall be conducted through:
17         (I)  A taxpayer request to perform the sampling through
18  the certified audit program pursuant to s. 213.285;
19         (II)  Attestation by a certified public accountant as
20  to the adequacy of the sampling method utilized and the
21  results reached using such sampling method; or
22         (III)  A sampling method that has been submitted by the
23  taxpayer and approved by the department before a refund claim
24  is submitted. This sub-sub-subparagraph does not prohibit a
25  taxpayer from filing a refund claim prior to approval by the
26  department of the sampling method; however, a refund claim
27  submitted before the sampling method has been approved by the
28  department cannot be a complete refund application pursuant to
29  s. 213.255 until the sampling method has been approved by the
30  department.
31         c.b.  The department shall prescribe by rule the
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    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS for SB 2482
                        Barcode 463796
 1  procedures to be followed under each method of sampling. Such
 2  procedures shall follow generally accepted auditing procedures
 3  for sampling. The rule shall also set forth other criteria
 4  regarding the use of sampling, including, but not limited to,
 5  training requirements that must be met before a sampling
 6  method may be utilized and the steps necessary for the
 7  department and the taxpayer to reach agreement on a sampling
 8  method submitted by the taxpayer for approval by the
 9  department.
10         Section 27.  The amendments to s. 212.12(6)(c), Florida
11  Statutes, shall take effect on July 1, 2007. It is the intent
12  of the Legislature that the amendments to s. 212.12(6)(c),
13  Florida Statutes, apply to all pending sales and use tax
14  audits or other actions or inquiries, excluding those
15  currently under protest or in litigation. The amendments to s.
16  212.12(6)(c), Florida Statutes, do not create any right to
17  refund for taxes previously assessed and paid in regard to
18  audits or other actions or inquiries that are no longer
19  pending.
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21  (Redesignate subsequent sections.)
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24  ==== D I R E C T O R Y   C L A U S E   A M E N D M E N T ====
25  And the directory clause is amended as follows:
26         On page 52, lines 15 and 16, delete those lines
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28  and insert:  
29         Section 26.  Paragraph (d) of subsection (2) and
30  paragraph (c) of subsection (6) of section 212.12, Florida
31  Statutes, are amended to read:
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    Florida Senate - 2007                        SENATOR AMENDMENT
    Bill No. CS for SB 2482
                        Barcode 463796
 1  ================ T I T L E   A M E N D M E N T ===============
 2  And the title is amended as follows:
 3         On page 4, line 14, after the semicolon,
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 5  insert:
 6         providing for voluntary sampling of fixed
 7         assets; providing for application; providing
 8         legislative intent;
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