Senate Bill sb2482
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    Florida Senate - 2007                                  SB 2482
    By Senator Haridopolos
    26-1268B-07
  1                      A bill to be entitled
  2         An act relating to tax administration; amending
  3         s. 45.032, F.S.; including a tax warrant as a
  4         subordinate lienholder for purposes of the
  5         disbursement of surplus funds after a judicial
  6         sale; amending ss. 125.0104 and 125.0108, F.S.;
  7         providing for the grant of a license to use
  8         living quarters or accommodations to be subject
  9         to the tourist development tax and the tourist
10         impact tax; amending s. 198.13, F.S.; exempting
11         certain representatives of an estate from the
12         requirement to file certain returns if there is
13         no tax on estates of decedents or no tax on
14         generation-skipping transfers; amending ss.
15         202.18 and 202.28, F.S.; providing requirements
16         for the Department of Revenue with respect to
17         distributing proceeds of the communications
18         services tax and allocating certain penalties;
19         amending s. 202.30, F.S.; reducing the
20         threshold tax amount over a specified period
21         under which a dealer of communications services
22         is required to remit taxes electronically;
23         amending ss. 206.02 and 206.021, F.S.;
24         authorizing the Department of Revenue to issue
25         temporary fuel licenses during a declared state
26         of emergency or a declared disaster; amending
27         ss. 206.41 and 206.87, F.S.; revising the date
28         of the annual adjustment of the fuel tax;
29         amending s. 206.9943, F.S.; authorizing the
30         department to issue a temporary pollutant tax
31         license during a declared state of emergency or
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 1         a declared disaster; amending s. 211.3103,
 2         F.S.; providing for the annual producer price
 3         index to apply to the tax on the severance of
 4         phosphate rock; amending s. 212.02, F.S.;
 5         adding leases of certain aircraft to the
 6         definition of the term "qualified aircraft";
 7         amending s. 212.0305, F.S.; providing for the
 8         grant of a license to use living quarters or
 9         accommodations to be subject to the convention
10         development tax on transient rentals; amending
11         ss. 212.05 and 212.0515, F.S.; authorizing the
12         department to adopt additional divisors for
13         calculating the sales tax on vending machines
14         when a county imposes a sales surtax rate that
15         is not listed in statute; amending s. 212.0506,
16         F.S.; clarifying that the definition of the
17         term "service warranty" excludes certain
18         contracts; amending s. 212.08, F.S., relating
19         to exemptions from the sales tax; deleting
20         provisions exempting certain building materials
21         and business property from application of
22         certain requirements for refunds; repealing s.
23         212.095, F.S., relating to a sales tax refund
24         permit for certain organizations; amending s.
25         212.10, F.S.; authorizing the Department of
26         Revenue to transfer tax liability to certain
27         entities upon the transfer of a dealer's assets
28         or liabilities; authorizing the department to
29         require that the liability be paid or a bond be
30         posted; providing that transfer of the
31         liability does not extinguish the liability of
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    Florida Senate - 2007                                  SB 2482
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 1         the seller or former owner; providing a
 2         penalty; amending s. 212.12, F.S.; providing
 3         that a person is liable for failure to register
 4         a business or collect the required taxes;
 5         providing penalties; authorizing the department
 6         to statistically sample records regarding
 7         certain fixed or capital assets; providing
 8         legislative intent with respect to application
 9         of such provisions to pending tax audits or
10         other actions or inquiries; amending s. 212.14,
11         F.S.; providing for the department to require a
12         bond or other security as a condition of
13         obtaining a tax certificate or registration at
14         its discretion; amending s. 212.18, F.S.,
15         relating to dealer registrations; deleting
16         obsolete provisions governing informal
17         conferences; creating s. 213.0352, F.S.;
18         authorizing the Department of Revenue to
19         develop procedures to enter into agreements
20         with certain financial institutions to develop
21         and operate a data match system for collecting
22         tax warrants; amending s. 213.053, F.S.;
23         authorizing the department to provide
24         information to certain financial institutions
25         and to the child support enforcement program;
26         amending s. 213.21, F.S.; providing for a
27         taxpayer's liability for a service fee to be
28         waived due to unintentional error; creating s.
29         213.32, F.S.; providing legislative intent with
30         respect to the integration of the enforcement
31         authority of the Department of Revenue;
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 1         authorizing the department to issue warrants
 2         and file judgment lien certificates evidencing
 3         a taxpayer's total liability for all taxes,
 4         fees, or surcharges; providing procedures for
 5         the department in revoking a certificate of
 6         registration, permit, or license; authorizing
 7         the department to place an administrative
 8         freeze on the assets of a delinquent taxpayer;
 9         providing definitions; providing procedures and
10         requiring prior notice; specifying duties of a
11         custodian of assets that are subject to an
12         administrative freeze; providing for a notice
13         of release following satisfaction of the
14         liability for taxes, fees, or surcharges;
15         authorizing the department to require cash
16         deposits, surety bonds, or irrevocable letters
17         of credit as a condition to a taxpayer
18         obtaining, renewing, or retaining a certificate
19         of registration, permit, or license; providing
20         definitions; prohibiting the amount of required
21         security from exceeding the taxpayer's
22         estimated liability; requiring that a taxpayer
23         be given prior notice; providing for the
24         department to require additional security under
25         certain circumstances; providing for a release
26         or refund of security; authorizing the
27         department to request that the Department of
28         Legal Affairs obtain an injunction to prevent
29         the taxpayer from engaging in business activity
30         under certain circumstances; authorizing the
31         department to sell any security to recover
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    Florida Senate - 2007                                  SB 2482
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 1         taxes, fees, or surcharges that are due;
 2         providing for garnishment proceedings;
 3         authorizing the department to transfer
 4         liabilities to responsible corporate officers;
 5         providing for jeopardy assessments; authorizing
 6         the department to adopt rules; amending s.
 7         213.755, F.S.; reducing the threshold tax
 8         amount over a specified period under which a
 9         taxpayer may be required to remit taxes
10         electronically; amending s. 220.21, F.S.;
11         requiring a taxpayer that is required to file
12         its federal income tax return electronically to
13         also file its state corporate income tax
14         electronically; providing a penalty for failure
15         to do so; authorizing the department to adopt
16         rules; providing for applicability; creating s.
17         220.802, F.S.; authorizing the Department of
18         Revenue to impose accuracy-related penalties
19         for negligence or disregard of statutes or
20         rules or for a substantial understatement of
21         tax; defining terms; prohibiting the imposition
22         of a penalty if the underpayment is based on a
23         ruling provided to the taxpayer by the
24         department; providing for the penalty to apply
25         to the tax year in which the loss, deduction,
26         or credit is carried; authorizing the
27         department to adopt rules; providing for
28         applicability; amending s. 220.803, F.S.,
29         relating to the determination of certain tax
30         deficiencies; deleting provisions imposing a
31         penalty for tax deficiencies due to negligence
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 1         or intentional disregard of rules and
 2         regulations; amending s. 443.1216, F.S.;
 3         authorizing the Agency for Workforce Innovation
 4         and the agency that collects unemployment taxes
 5         to adopt rules; amending s. 443.1316, F.S.;
 6         providing for certain provisions of ch. 213,
 7         F.S., relating to taxpayers rights, to apply to
 8         the collection of unemployment taxes; deleting
 9         a limitation on the amount the department may
10         charge for the costs of collection services;
11         amending s. 443.141, F.S.; authorizing the
12         department to impose a penalty for erroneous,
13         incomplete, or insufficient reports with
14         respect to unemployment contributions and
15         reimbursements; requiring that the penalties be
16         paid into the Special Employment Security
17         Administration Trust Fund; amending s. 443.163,
18         F.S.; revising the threshold number of
19         employees for which an employer must report and
20         remit contributions and reimbursements
21         electronically; amending s. 624.511, F.S.;
22         authorizing the Department of Revenue to refund
23         an overpayment of insurance premium tax under
24         certain circumstances; amending s. 832.062,
25         F.S.; providing for prima facie evidence of
26         intent to defraud or knowledge of insufficient
27         funds with respect to an electronic transfer to
28         the Department of Revenue which is not honored
29         or refused; providing requirements for notice;
30         providing for the department to recover court
31         costs and attorney's fees; providing procedures
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    Florida Senate - 2007                                  SB 2482
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 1         for establishing prima facie evidence;
 2         providing effective dates.
 3  
 4  Be It Enacted by the Legislature of the State of Florida:
 5  
 6         Section 1.  Paragraph (b) of subsection (1) and
 7  paragraph (a) of subsection (3) of section 45.032, Florida
 8  Statutes, are amended to read:
 9         45.032  Disbursement of surplus funds after judicial
10  sale.--
11         (1)  For purposes of ss. 45.031-45.035, the term:
12         (b)  "Subordinate lienholder" means the holder of a
13  subordinate lien shown on the face of the pleadings as an
14  encumbrance on the property. The lien held by the party filing
15  the foreclosure lawsuit is not a subordinate lien. A
16  subordinate lienholder includes, but is not limited to, a
17  subordinate mortgage, judgment, tax warrant, assessment lien,
18  or construction lien. However, the holder of a subordinate
19  lien shall not be deemed a subordinate lienholder if the
20  holder was paid in full from the proceeds of the sale.
21         (3)  During the 60 days after the clerk issues a
22  certificate of disbursements, the clerk shall hold the surplus
23  pending a court order.
24         (a)  If the owner of record claims the surplus during
25  the 60-day period and there is no subordinate lienholder, the
26  court shall order the clerk to deduct any applicable service
27  charges from the surplus and pay the remainder to the owner of
28  record. The clerk may establish a reasonable requirement that
29  the owner of record prove his or her identity before receiving
30  the disbursement. The clerk may assist an owner of record in
31  
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 1  making a claim. An owner of record may use the following form
 2  in making a claim:
 3  
 4  (Caption of Action)
 5  
 6                        OWNER'S CLAIM FOR
 7                   MORTGAGE FORECLOSURE SURPLUS
 8  
 9  State of ....
10  County of ....
11         Under penalty of perjury, I (we) hereby certify that:
12         1.  I was (we were) the owner of the following
13  described real property in .... County, Florida, prior to the
14  foreclosure sale and as of the date of the filing of the lis
15  pendens:
16  
17  ...(Legal description of real property)...
18  
19         2.  I (we) do not owe any money on any mortgage on the
20  property that was foreclosed other than the one that was paid
21  off by the foreclosure.
22         3.  I (we) do not owe any money that is the subject of
23  an unpaid judgment, tax warrant, condominium lien, cooperative
24  lien, or homeowners' association.
25         4.  I am (we are) not currently in bankruptcy.
26         5.  I (we) have not sold or assigned my (our) right to
27  the mortgage surplus.
28         6.  My (our) new address is: .....
29         7.  If there is more than one owner entitled to the
30  surplus, we have agreed that the surplus should be paid ....
31  jointly, or to: ...., at the following address: .....
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 1         8.  I (WE) UNDERSTAND THAT I (WE) AM (ARE) NOT REQUIRED
 2  TO HAVE A LAWYER OR ANY OTHER REPRESENTATION AND I (WE) DO NOT
 3  HAVE TO ASSIGN MY (OUR) RIGHTS TO ANYONE ELSE IN ORDER TO
 4  CLAIM ANY MONEY TO WHICH I (WE) MAY BE ENTITLED.
 5         9.  I (WE) UNDERSTAND THAT THIS STATEMENT IS GIVEN
 6  UNDER OATH, AND IF ANY STATEMENTS ARE UNTRUE THAT I (WE) MAY
 7  BE PROSECUTED CRIMINALLY FOR PERJURY.
 8  
 9  ...(Signatures)...
10  
11         Sworn to (or affirmed) and subscribed before me this
12  .... day of ...., ...(year)..., by ...(name of person making
13  statement)....
14         ...(Signature of Notary Public - State of Florida)...
15         ...(Print, Type, or Stamp Commissioned Name of Notary
16  Public)...
17  
18         Personally Known .... OR Produced Identification ....
19         Type of Identification Produced........................
20  
21         Section 2.  Paragraph (a) of subsection (3) of section
22  125.0104, Florida Statutes, is amended to read:
23         125.0104  Tourist development tax; procedure for
24  levying; authorized uses; referendum; enforcement.--
25         (3)  TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.--
26         (a)  It is declared to be the intent of the Legislature
27  that every person who rents, leases, or lets, or grants a
28  license to use for consideration any living quarters or
29  accommodations in any hotel, apartment hotel, motel, resort
30  motel, apartment, apartment motel, roominghouse, mobile home
31  park, recreational vehicle park, or condominium for a term of
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 1  6 months or less is exercising a privilege which is subject to
 2  taxation under this section, unless such person rents, leases,
 3  or lets, or grants a license to use for consideration any
 4  living quarters or accommodations which are exempt according
 5  to the provisions of chapter 212.
 6         Section 3.  Paragraph (b) of subsection (1) of section
 7  125.0108, Florida Statutes, is amended to read:
 8         125.0108  Areas of critical state concern; tourist
 9  impact tax.--
10         (1)
11         (b)  It is declared to be the intent of the Legislature
12  that every person who rents, leases, or lets, or grants a
13  license to use for consideration any living quarters or
14  accommodations in any hotel, apartment hotel, motel, resort
15  motel, apartment, apartment motel, roominghouse, mobile home
16  park, recreational vehicle park, or condominium for a term of
17  6 months or less, unless such establishment is exempt from the
18  tax imposed by s. 212.03, is exercising a taxable privilege on
19  the proceeds therefrom under this section.
20         Section 4.  Subsection (4) is added to section 198.13,
21  Florida Statutes, to read:
22         198.13  Tax return to be made in certain cases;
23  certificate of nonliability.--
24         (4)  Notwithstanding any other provisions of this
25  section and applicable to the estate of a decedent who dies
26  after December 31, 2004, if, upon the death of the decedent, a
27  state death tax credit or a generation-skipping transfer
28  credit is not allowable pursuant to the Internal Revenue Code
29  of 1986, as amended:
30  
31  
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 1         (a)  The personal representative of the estate is not
 2  required to file a return under subsection (1) in connection
 3  with the estate.
 4         (b)  The person who would otherwise be required to file
 5  a return reporting a generation-skipping transfer under
 6  subsection (3) is not required to file such a return in
 7  connection with the estate.
 8  
 9  The provisions of this subsection do not apply to estates of
10  descendents dying after December 31, 2010.
11         Section 5.  Paragraph (c) of subsection (3) of section
12  202.18, Florida Statutes, is amended to read:
13         202.18  Allocation and disposition of tax
14  proceeds.--The proceeds of the communications services taxes
15  remitted under this chapter shall be treated as follows:
16         (3)
17         (c)1.  Except as otherwise provided in this paragraph,
18  proceeds of the taxes levied pursuant to s. 202.19, less
19  amounts deducted for costs of administration in accordance
20  with paragraph (b), shall be distributed monthly to the
21  appropriate jurisdictions. The proceeds of taxes imposed
22  pursuant to s. 202.19(5) shall be distributed in the same
23  manner as discretionary surtaxes are distributed, in
24  accordance with ss. 212.054 and 212.055.
25         2.  The department shall make any adjustments to the
26  distributions pursuant to this section paragraph which are
27  necessary to reflect the proper amounts due to individual
28  jurisdictions or trust funds. In the event that the department
29  adjusts amounts due to reflect a correction in the situsing of
30  a customer, such adjustment shall be limited to the amount of
31  
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 1  tax actually collected from such customer by the dealer of
 2  communication services.
 3         Section 6.  Paragraph (d) of subsection (2) of section
 4  202.28, Florida Statutes, is amended to read:
 5         202.28  Credit for collecting tax; penalties.--
 6         (2)
 7         (d)  If a dealer fails to separately report and
 8  identify local communications services taxes on the
 9  appropriate return schedule, the dealer shall be subject to a
10  penalty of $5,000 per return. If the department is unable to
11  obtain appropriate return schedules, any penalty imposed by
12  this paragraph shall be allocated in the same manner as
13  provided in s. 202.18(2).
14         Section 7.  Effective January 1, 2008, subsection (1)
15  of section 203.30, Florida Statutes, is amended to read:
16         202.30  Payment of taxes by electronic funds transfer;
17  filing of returns by electronic data interchange.--
18         (1)  A dealer of communications services is required to
19  remit taxes by electronic funds transfer, in the manner
20  prescribed by the department, when the amount of tax paid by
21  the dealer under this chapter, chapter 203, or chapter 212 in
22  the previous state fiscal year was $20,000 $50,000 or more;
23  $10,000 or more, effective January 1, 2009; and $5,000 or
24  more, effective January 1, 2010.
25         Section 8.  Subsection (8) is added to section 206.02,
26  Florida Statutes, to read:
27         206.02  Application for license; temporary license;
28  terminal suppliers, importers, exporters, blenders, biodiesel
29  manufacturers, and wholesalers.--
30  
31  
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 1         (8)(a)  Notwithstanding any provision to the contrary
 2  contained in this chapter, the department may grant a
 3  temporary fuel license for immediate use if:
 4         1.  The Governor has declared a state of emergency
 5  under s. 252.36; or
 6         2.  The President of the United States has declared a
 7  major disaster in this state or in any other state or
 8  territory of the United States.
 9         (b)  Notwithstanding the provisions of this chapter
10  requiring a license tax and a bond or criminal background
11  check, the department may issue a temporary license as an
12  importer or exporter to a person who holds a valid Florida
13  wholesaler license or to a person who is an unlicensed dealer.
14  A license may be issued under this subsection only to a
15  business that has a physical location in this state and holds
16  a valid Florida sales and use tax certificate or registration
17  or that holds a valid fuel license issued by another state.
18         (c)  A temporary license expires on the last day of the
19  month following the month in which the temporary license was
20  issued. The department may extend any temporary license on a
21  month-to-month basis during the period of a declared state of
22  emergency or major disaster as provided in this subsection. If
23  the department extends a temporary license, the extended
24  license expires on the last day of the month in which the
25  temporary license was extended.
26         (d)  In order to procure a temporary license, a
27  nonresident business must provide to the department the
28  information required in subsection (4); the federal
29  identification number of the business or, if such number is
30  unavailable, the social security number of the owner; and any
31  other information that is required by the department.
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 1         (e)  A temporary license authorized by this subsection
 2  may not be renewed if the licensee has not filed the required
 3  returns or made payment of the taxes required under this
 4  chapter.
 5         Section 9.  Subsection (5) is added to section 206.021,
 6  Florida Statutes, to read:
 7         206.021  Application for license; carriers.--
 8         (5)(a)  Notwithstanding any provision to the contrary
 9  contained in this chapter, the department may grant a
10  temporary fuel license for immediate use if:
11         1.  The Governor has declared a state of emergency
12  under s. 252.36; or
13         2.  The President of the United States has declared a
14  major disaster in this state or in any other state or
15  territory of the United States.
16         (b)  Notwithstanding the provisions of this chapter
17  requiring a license tax and a bond or criminal background
18  check, the department may issue a temporary license as a
19  carrier to a person who holds a valid Florida wholesaler,
20  importer, exporter, or blender license or to a person who is
21  an unlicensed dealer. A license may be issued under this
22  subsection only to a business that has a physical location in
23  this state and holds a valid Florida sales and use tax
24  certificate or registration or that holds a valid fuel license
25  issued by another state.
26         (c)  A temporary license expires on the last day of the
27  month following the month in which the temporary license was
28  issued. The department may extend any temporary license on a
29  month-to-month basis during the period of a declared state of
30  emergency or major disaster as provided in this subsection. If
31  the department extends a temporary license, the extended
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 1  license expires on the last day of the month in which the
 2  temporary license was extended.
 3         (d)  In order to procure a temporary license, a
 4  nonresident business must provide to the department the
 5  information required in subsection (2); the federal
 6  identification number of the business or, if such number is
 7  unavailable, the social security number of the owner; and any
 8  other information that is required by the department.
 9         (e)  A temporary license authorized by this subsection
10  may not be renewed if the licensee has not filed the required
11  returns or made payment of the taxes required under this
12  chapter.
13         Section 10.  Effective January 1, 2008, paragraphs (f)
14  and (g) of subsection (1) of section 206.41, Florida Statutes,
15  are amended to read:
16         206.41  State taxes imposed on motor fuel.--
17         (1)  The following taxes are imposed on motor fuel
18  under the circumstances described in subsection (6):
19         (f)1.  An additional tax designated as the State
20  Comprehensive Enhanced Transportation System Tax is imposed on
21  each net gallon of motor fuel in each county. This tax shall
22  be levied and used as provided in s. 206.608.
23         2.  The rate of the tax in each county shall be equal
24  to two-thirds of the lesser of the sum of the taxes imposed on
25  motor fuel pursuant to paragraphs (d) and (e) in such county
26  or 6 cents, rounded to the nearest tenth of a cent.
27         3.  Beginning January 1, 1992, and on January 1 of each
28  year thereafter, The tax rate provided in subparagraph 2.
29  shall be adjusted by the percentage change in the average of
30  the Consumer Price Index issued by the United States
31  Department of Labor for the most recent 12-month period ending
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 1  September 30, compared to the base year average, which is the
 2  average for the 12-month period ending September 30, 1990, and
 3  rounded to the nearest tenth of a cent.
 4         4.  The department shall notify each terminal supplier,
 5  position holder, wholesaler, and importer of the tax rate
 6  applicable under this paragraph for the 12-month period
 7  beginning January 1.
 8         (g)1.  An additional tax is imposed on each net gallon
 9  of motor fuel, which tax is on the privilege of selling motor
10  fuel and which is designated the "fuel sales tax," at a rate
11  determined pursuant to this paragraph. Before January 1 of
12  1997, and of each year thereafter, The department shall
13  determine the tax rate applicable to the sale of fuel for the
14  forthcoming 12-month period beginning January 1, 2008, and
15  each year thereafter, rounded to the nearest tenth of a cent,
16  by adjusting the initially established tax rate of 6.9 cents
17  per gallon by the percentage change in the average of the
18  Consumer Price Index issued by the United States Department of
19  Labor for the most recent 12-month period ending June 30
20  September 30, compared to the base year average, which is the
21  average for the 12-month period ending September 30, 1989.
22  However, the tax rate shall not be lower than 6.9 cents per
23  gallon.
24         2.  The department is authorized to adopt rules and
25  adopt such forms as may be necessary for the administration of
26  this paragraph.
27         3.  The department shall notify each terminal supplier,
28  position holder, wholesaler, and importer of the tax rate
29  applicable under this paragraph for the 12-month period
30  beginning January 1.
31  
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 1         Section 11.  Effective January 1, 2008, paragraph (e)
 2  of subsection (1) of section 206.87, Florida Statutes, is
 3  amended to read:
 4         206.87  Levy of tax.--
 5         (1)
 6         (e)1.  An additional tax is imposed on each net gallon
 7  of diesel fuel, which tax is on the privilege of selling
 8  diesel fuel and which is designated the "fuel sales tax," at a
 9  rate determined pursuant to this paragraph. Before January 1
10  of 1997 and of each year thereafter, The department shall
11  determine the annual tax rate applicable to the sale of diesel
12  fuel applicable for the forthcoming 12-month period beginning
13  January 1, 2008, and each year thereafter, rounded to the
14  nearest tenth of a cent, by adjusting the initially
15  established tax rate of 6.9 cents per gallon by the percentage
16  change in the average of the Consumer Price Index issued by
17  the United States Department of Labor for the most recent
18  12-month period ending June 30 September 30, compared to the
19  base year average, which is the average for the 12-month
20  period ending September 30, 1989. However, the tax rate shall
21  not be lower than 6.9 cents per gallon.
22         2.  The department is authorized to adopt rules and
23  adopt such forms as may be necessary for the administration of
24  this paragraph.
25         3.  The department shall notify each terminal supplier,
26  position holder, wholesaler, and importer of the tax rate
27  applicable under this paragraph for the 12-month period
28  beginning January 1.
29         Section 12.  Subsection (4) is added to section
30  206.9943, Florida Statutes, to read:
31         206.9943  Pollutant tax license.--
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 1         (4)  A temporary pollutant tax license may be issued to
 2  a holder of a valid Florida temporary importer, temporary
 3  wholesaler, or temporary exporter license issued under s.
 4  206.02. A temporary pollutant tax license is subject to the
 5  provisions set forth in s. 206.02(8).
 6         Section 13.  Paragraphs (d) and (e) of subsection (9)
 7  of section 211.3103, Florida Statutes, are amended to read:
 8         211.3103  Levy of tax on severance of phosphate rock;
 9  rate, basis, and distribution of tax.--
10         (9)
11         (d)  If the producer price index for phosphate rock
12  chemical and fertilizer mineral mining is substantially
13  revised, the department shall make appropriate adjustment in
14  the method used to compute the base rate adjustment under this
15  subsection which will produce results reasonably consistent
16  with the result that which would have been obtained if the
17  producer price index for phosphate rock primary products had
18  not been revised. However, the tax rate shall not be less than
19  $1.56 per ton severed.
20         (e)  If In the event the producer price index for
21  phosphate rock primary products is discontinued, then a
22  comparable index shall be selected by the department and
23  adopted by rule.
24         Section 14.  Subsection (33) of section 212.02, Florida
25  Statutes, is amended to read:
26         212.02  Definitions.--The following terms and phrases
27  when used in this chapter have the meanings ascribed to them
28  in this section, except where the context clearly indicates a
29  different meaning:
30         (33)  "Qualified aircraft" means any aircraft having a
31  maximum certified takeoff weight of less than 10,000 pounds
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 1  and equipped with twin turbofan engines that meet Stage IV
 2  noise requirements that is used by a business operating as an
 3  on-demand air carrier under Federal Aviation Administration
 4  Regulation Title 14, chapter I, part 135, Code of Federal
 5  Regulations, that owns or leases and operates a fleet of at
 6  least 25 of such aircraft in this state.
 7         Section 15.  Paragraph (a) of subsection (3) of section
 8  212.0305, Florida Statutes, is amended to read:
 9         212.0305  Convention development taxes; intent;
10  administration; authorization; use of proceeds.--
11         (3)  APPLICATION; ADMINISTRATION; PENALTIES.--
12         (a)  The convention development tax on transient
13  rentals imposed by the governing body of any county authorized
14  to so levy shall apply to the amount of any payment made by
15  any person to rent, lease, let, or grant a license to or use
16  for a period of 6 months or less any living quarters or
17  accommodations in a hotel, apartment hotel, motel, resort
18  motel, apartment, apartment motel, roominghouse, tourist or
19  trailer camp, mobile home park, recreational vehicle park, or
20  condominium.  When receipt of consideration is by way of
21  property other than money, the tax shall be levied and imposed
22  on the fair market value of such nonmonetary consideration.
23  Any payment made by a person to rent, lease, let, or grant a
24  license to or use any living quarters or accommodations which
25  are exempt from the tax imposed under s. 212.03 shall likewise
26  be exempt from any tax imposed under this section.
27         Section 16.  Paragraph (h) of subsection (1) of section
28  212.05, Florida Statutes, is amended to read:
29         212.05  Sales, storage, use tax.--It is hereby declared
30  to be the legislative intent that every person is exercising a
31  taxable privilege who engages in the business of selling
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 1  tangible personal property at retail in this state, including
 2  the business of making mail order sales, or who rents or
 3  furnishes any of the things or services taxable under this
 4  chapter, or who stores for use or consumption in this state
 5  any item or article of tangible personal property as defined
 6  herein and who leases or rents such property within the state.
 7         (1)  For the exercise of such privilege, a tax is
 8  levied on each taxable transaction or incident, which tax is
 9  due and payable as follows:
10         (h)1.  Beginning January 1, 1995, A tax is imposed at
11  the rate of 4 percent on the charges for the use of
12  coin-operated amusement machines. The tax shall be calculated
13  by dividing the gross receipts from such charges for the
14  applicable reporting period by a divisor, determined as
15  provided in this subparagraph, to compute gross taxable sales,
16  and then subtracting gross taxable sales from gross receipts
17  to arrive at the amount of tax due. For counties that do not
18  impose a discretionary sales surtax, the divisor is equal to
19  1.04;, except that for counties that impose a 0.5 percent
20  discretionary sales surtax, with a 6.5 percent sales tax rate
21  the divisor is shall be equal to 1.045;, and for counties that
22  impose a 1 percent discretionary sales surtax, with a 7.0
23  percent sales tax rate the divisor is shall be equal to 1.050;
24  and for counties that impose a 2 percent sales surtax, the
25  divisor is equal to 1.060. If a county imposes a discretionary
26  sales surtax that is not listed in this subparagraph, the
27  department shall make the applicable divisor available in an
28  electronic format or otherwise. Additional divisors shall bear
29  the same mathematical relationship to the next higher and next
30  lower divisors as the new surtax rate bears to the next higher
31  and next lower surtax rates for which divisors have been
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 1  established. When a machine is activated by a slug, token,
 2  coupon, or any similar device which has been purchased, the
 3  tax is on the price paid by the user of the device for such
 4  device.
 5         2.  As used in this paragraph, the term "operator"
 6  means any person who possesses a coin-operated amusement
 7  machine for the purpose of generating sales through that
 8  machine and who is responsible for removing the receipts from
 9  the machine.
10         a.  If the owner of the machine is also the operator of
11  it, he or she shall be liable for payment of the tax without
12  any deduction for rent or a license fee paid to a location
13  owner for the use of any real property on which the machine is
14  located.
15         b.  If the owner or lessee of the machine is also its
16  operator, he or she shall be liable for payment of the tax on
17  the purchase or lease of the machine, as well as the tax on
18  sales generated through the machine.
19         c.  If the proprietor of the business where the machine
20  is located does not own the machine, he or she shall be deemed
21  to be the lessee and operator of the machine and is
22  responsible for the payment of the tax on sales, unless such
23  responsibility is otherwise provided for in a written
24  agreement between him or her and the machine owner.
25         3.a.  An operator of a coin-operated amusement machine
26  may not operate or cause to be operated in this state any such
27  machine until the operator has registered with the department
28  and has conspicuously displayed an identifying certificate
29  issued by the department.  The identifying certificate shall
30  be issued by the department upon application from the
31  operator.  The identifying certificate shall include a unique
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 1  number, and the certificate shall be permanently marked with
 2  the operator's name, the operator's sales tax number, and the
 3  maximum number of machines to be operated under the
 4  certificate. An identifying certificate shall not be
 5  transferred from one operator to another. The identifying
 6  certificate must be conspicuously displayed on the premises
 7  where the coin-operated amusement machines are being operated.
 8         b.  The operator of the machine must obtain an
 9  identifying certificate before the machine is first operated
10  in the state and by July 1 of each year thereafter. The annual
11  fee for each certificate shall be based on the number of
12  machines identified on the application times $30 and is due
13  and payable upon application for the identifying device.  The
14  application shall contain the operator's name, sales tax
15  number, business address where the machines are being
16  operated, and the number of machines in operation at that
17  place of business by the operator. No operator may operate
18  more machines than are listed on the certificate.  A new
19  certificate is required if more machines are being operated at
20  that location than are listed on the certificate. The fee for
21  the new certificate shall be based on the number of additional
22  machines identified on the application form times $30.
23         c.  A penalty of $250 per machine is imposed on the
24  operator for failing to properly obtain and display the
25  required identifying certificate. A penalty of $250 is imposed
26  on the lessee of any machine placed in a place of business
27  without a proper current identifying certificate. Such
28  penalties shall apply in addition to all other applicable
29  taxes, interest, and penalties.
30         d.  Operators of coin-operated amusement machines must
31  obtain a separate sales and use tax certificate of
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 1  registration for each county in which such machines are
 2  located. One sales and use tax certificate of registration is
 3  sufficient for all of the operator's machines within a single
 4  county.
 5         4.  The provisions of this paragraph do not apply to
 6  coin-operated amusement machines owned and operated by
 7  churches or synagogues.
 8         5.  In addition to any other penalties imposed by this
 9  chapter, a person who knowingly and willfully violates any
10  provision of this paragraph commits a misdemeanor of the
11  second degree, punishable as provided in s. 775.082 or s.
12  775.083.
13         6.  The department may adopt rules necessary to
14  administer the provisions of this paragraph.
15         Section 17.  Subsection (3) of section 212.0506,
16  Florida Statutes, is amended to read:
17         212.0506  Taxation of service warranties.--
18         (3)  For purposes of this section, "service warranty"
19  means any contract or agreement which indemnifies the holder
20  of the contract or agreement for the cost of maintaining,
21  repairing, or replacing tangible personal property.  The term
22  "service warranty" does not include contracts or agreements to
23  repair, maintain, or replace tangible personal property if
24  such property when sold at retail in this state would not be
25  subject to the tax imposed by this chapter or if the parts and
26  labor to repair tangible personal property qualify for an
27  exemption under this chapter, nor does it include such
28  contracts or agreements covering tangible personal property
29  which becomes a part of real property.
30         Section 18.  Subsection (2) of section 212.0515,
31  Florida Statutes, is amended to read:
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 1         212.0515  Sales from vending machines; sales to vending
 2  machine operators; special provisions; registration;
 3  penalties.--
 4         (2)  Notwithstanding any other provision of law, the
 5  amount of the tax to be paid on food, beverages, or other
 6  items of tangible personal property that are sold in vending
 7  machines shall be calculated by dividing the gross receipts
 8  from such sales for the applicable reporting period by a
 9  divisor, determined as provided in this subsection, to compute
10  gross taxable sales, and then subtracting gross taxable sales
11  from gross receipts to arrive at the amount of tax due. For
12  counties that do not impose a discretionary sales surtax, the
13  divisor is equal to the sum of 1.0645 for beverage and food
14  items, or 1.0659 for other items of tangible personal
15  property., except that For counties with a 0.5 percent sales
16  surtax rate the divisor is equal to the sum of 1.0686 for
17  beverage and food items or 1.0707 for other items of tangible
18  personal property; for counties with a 0.75 percent sales
19  surtax rate the divisor is equal to the sum of 1.0706 for
20  beverage and food items or 1.0727 for other items of tangible
21  personal property; for counties with a 1 percent sales surtax
22  rate the divisor is equal to the sum of 1.0726 for beverage
23  and food items or 1.0749 for other items of tangible personal
24  property; and for counties with a 1.5 percent sales surtax
25  rate the divisor is equal to the sum of 1.0767 for beverage
26  and food items or 1.0791 for other items of tangible personal
27  property; and for counties with a 2 percent sales surtax rate
28  the divisor is equal to the sum of 1.0808 for beverage and
29  food items or 1.0833 for other items of tangible personal
30  property. When a county imposes a surtax rate that is not
31  listed in this subparagraph, the department shall make the
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 1  applicable divisor available in an electronic format or
 2  otherwise. Additional divisors shall bear the same
 3  mathematical relationship to the next higher and next lower
 4  divisors as the new surtax rate bears to the next higher and
 5  next lower surtax rates for which divisors have been
 6  established. If an operator cannot account for each type of
 7  item sold through a vending machine, the highest tax rate
 8  shall be used for all products sold through that machine.
 9         Section 19.  Paragraphs (g), (h), (n), and (o) of
10  subsection (5) of section 212.08, Florida Statutes, are
11  amended to read:
12         212.08  Sales, rental, use, consumption, distribution,
13  and storage tax; specified exemptions.--The sale at retail,
14  the rental, the use, the consumption, the distribution, and
15  the storage to be used or consumed in this state of the
16  following are hereby specifically exempt from the tax imposed
17  by this chapter.
18         (5)  EXEMPTIONS; ACCOUNT OF USE.--
19         (g)  Building materials used in the rehabilitation of
20  real property located in an enterprise zone.--
21         1.  Building materials used in the rehabilitation of
22  real property located in an enterprise zone shall be exempt
23  from the tax imposed by this chapter upon an affirmative
24  showing to the satisfaction of the department that the items
25  have been used for the rehabilitation of real property located
26  in an enterprise zone. Except as provided in subparagraph 2.,
27  this exemption inures to the owner, lessee, or lessor of the
28  rehabilitated real property located in an enterprise zone only
29  through a refund of previously paid taxes. To receive a refund
30  pursuant to this paragraph, the owner, lessee, or lessor of
31  the rehabilitated real property located in an enterprise zone
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 1  must file an application under oath with the governing body or
 2  enterprise zone development agency having jurisdiction over
 3  the enterprise zone where the business is located, as
 4  applicable, which includes:
 5         a.  The name and address of the person claiming the
 6  refund.
 7         b.  An address and assessment roll parcel number of the
 8  rehabilitated real property in an enterprise zone for which a
 9  refund of previously paid taxes is being sought.
10         c.  A description of the improvements made to
11  accomplish the rehabilitation of the real property.
12         d.  A copy of the building permit issued for the
13  rehabilitation of the real property.
14         e.  A sworn statement, under the penalty of perjury,
15  from the general contractor licensed in this state with whom
16  the applicant contracted to make the improvements necessary to
17  accomplish the rehabilitation of the real property, which
18  statement lists the building materials used in the
19  rehabilitation of the real property, the actual cost of the
20  building materials, and the amount of sales tax paid in this
21  state on the building materials. In the event that a general
22  contractor has not been used, the applicant shall provide this
23  information in a sworn statement, under the penalty of
24  perjury. Copies of the invoices which evidence the purchase of
25  the building materials used in such rehabilitation and the
26  payment of sales tax on the building materials shall be
27  attached to the sworn statement provided by the general
28  contractor or by the applicant. Unless the actual cost of
29  building materials used in the rehabilitation of real property
30  and the payment of sales taxes due thereon is documented by a
31  general contractor or by the applicant in this manner, the
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 1  cost of such building materials shall be an amount equal to 40
 2  percent of the increase in assessed value for ad valorem tax
 3  purposes.
 4         f.  The identifying number assigned pursuant to s.
 5  290.0065 to the enterprise zone in which the rehabilitated
 6  real property is located.
 7         g.  A certification by the local building code
 8  inspector that the improvements necessary to accomplish the
 9  rehabilitation of the real property are substantially
10  completed.
11         h.  Whether the business is a small business as defined
12  by s. 288.703(1).
13         i.  If applicable, the name and address of each
14  permanent employee of the business, including, for each
15  employee who is a resident of an enterprise zone, the
16  identifying number assigned pursuant to s. 290.0065 to the
17  enterprise zone in which the employee resides.
18         2.  This exemption inures to a city, county, other
19  governmental agency, or nonprofit community-based organization
20  through a refund of previously paid taxes if the building
21  materials used in the rehabilitation of real property located
22  in an enterprise zone are paid for from the funds of a
23  community development block grant, State Housing Initiatives
24  Partnership Program, or similar grant or loan program. To
25  receive a refund pursuant to this paragraph, a city, county,
26  other governmental agency, or nonprofit community-based
27  organization must file an application which includes the same
28  information required to be provided in subparagraph 1. by an
29  owner, lessee, or lessor of rehabilitated real property. In
30  addition, the application must include a sworn statement
31  signed by the chief executive officer of the city, county,
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 1  other governmental agency, or nonprofit community-based
 2  organization seeking a refund which states that the building
 3  materials for which a refund is sought were paid for from the
 4  funds of a community development block grant, State Housing
 5  Initiatives Partnership Program, or similar grant or loan
 6  program.
 7         3.  Within 10 working days after receipt of an
 8  application, the governing body or enterprise zone development
 9  agency shall review the application to determine if it
10  contains all the information required pursuant to subparagraph
11  1. or subparagraph 2. and meets the criteria set out in this
12  paragraph. The governing body or agency shall certify all
13  applications that contain the information required pursuant to
14  subparagraph 1. or subparagraph 2. and meet the criteria set
15  out in this paragraph as eligible to receive a refund. If
16  applicable, the governing body or agency shall also certify if
17  20 percent of the employees of the business are residents of
18  an enterprise zone, excluding temporary and part-time
19  employees. The certification shall be in writing, and a copy
20  of the certification shall be transmitted to the executive
21  director of the Department of Revenue. The applicant shall be
22  responsible for forwarding a certified application to the
23  department within the time specified in subparagraph 4.
24         4.  An application for a refund pursuant to this
25  paragraph must be submitted to the department within 6 months
26  after the rehabilitation of the property is deemed to be
27  substantially completed by the local building code inspector
28  or by September 1 after the rehabilitated property is first
29  subject to assessment.
30         5.  The provisions of s. 212.095 do not apply to any
31  refund application made pursuant to this paragraph. Not more
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 1  than one exemption through a refund of previously paid taxes
 2  for the rehabilitation of real property shall be permitted for
 3  any single parcel of property unless there is a change in
 4  ownership, a new lessor, or a new lessee of the real property.
 5  No refund shall be granted pursuant to this paragraph unless
 6  the amount to be refunded exceeds $500. No refund granted
 7  pursuant to this paragraph shall exceed the lesser of 97
 8  percent of the Florida sales or use tax paid on the cost of
 9  the building materials used in the rehabilitation of the real
10  property as determined pursuant to sub-subparagraph 1.e. or
11  $5,000, or, if no less than 20 percent of the employees of the
12  business are residents of an enterprise zone, excluding
13  temporary and part-time employees, the amount of refund
14  granted pursuant to this paragraph shall not exceed the lesser
15  of 97 percent of the sales tax paid on the cost of such
16  building materials or $10,000. A refund approved pursuant to
17  this paragraph shall be made within 30 days of formal approval
18  by the department of the application for the refund. This
19  subparagraph shall apply retroactively to July 1, 2005.
20         6.  The department shall adopt rules governing the
21  manner and form of refund applications and may establish
22  guidelines as to the requisites for an affirmative showing of
23  qualification for exemption under this paragraph.
24         7.  The department shall deduct an amount equal to 10
25  percent of each refund granted under the provisions of this
26  paragraph from the amount transferred into the Local
27  Government Half-cent Sales Tax Clearing Trust Fund pursuant to
28  s. 212.20 for the county area in which the rehabilitated real
29  property is located and shall transfer that amount to the
30  General Revenue Fund.
31  
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 1         8.  For the purposes of the exemption provided in this
 2  paragraph:
 3         a.  "Building materials" means tangible personal
 4  property which becomes a component part of improvements to
 5  real property.
 6         b.  "Real property" has the same meaning as provided in
 7  s. 192.001(12).
 8         c.  "Rehabilitation of real property" means the
 9  reconstruction, renovation, restoration, rehabilitation,
10  construction, or expansion of improvements to real property.
11         d.  "Substantially completed" has the same meaning as
12  provided in s. 192.042(1).
13         9.  This paragraph expires on the date specified in s.
14  290.016 for the expiration of the Florida Enterprise Zone Act.
15         (h)  Business property used in an enterprise zone.--
16         1.  Business property purchased for use by businesses
17  located in an enterprise zone which is subsequently used in an
18  enterprise zone shall be exempt from the tax imposed by this
19  chapter. This exemption inures to the business only through a
20  refund of previously paid taxes. A refund shall be authorized
21  upon an affirmative showing by the taxpayer to the
22  satisfaction of the department that the requirements of this
23  paragraph have been met.
24         2.  To receive a refund, the business must file under
25  oath with the governing body or enterprise zone development
26  agency having jurisdiction over the enterprise zone where the
27  business is located, as applicable, an application which
28  includes:
29         a.  The name and address of the business claiming the
30  refund.
31  
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 1         b.  The identifying number assigned pursuant to s.
 2  290.0065 to the enterprise zone in which the business is
 3  located.
 4         c.  A specific description of the property for which a
 5  refund is sought, including its serial number or other
 6  permanent identification number.
 7         d.  The location of the property.
 8         e.  The sales invoice or other proof of purchase of the
 9  property, showing the amount of sales tax paid, the date of
10  purchase, and the name and address of the sales tax dealer
11  from whom the property was purchased.
12         f.  Whether the business is a small business as defined
13  by s. 288.703(1).
14         g.  If applicable, the name and address of each
15  permanent employee of the business, including, for each
16  employee who is a resident of an enterprise zone, the
17  identifying number assigned pursuant to s. 290.0065 to the
18  enterprise zone in which the employee resides.
19         3.  Within 10 working days after receipt of an
20  application, the governing body or enterprise zone development
21  agency shall review the application to determine if it
22  contains all the information required pursuant to subparagraph
23  2. and meets the criteria set out in this paragraph. The
24  governing body or agency shall certify all applications that
25  contain the information required pursuant to subparagraph 2.
26  and meet the criteria set out in this paragraph as eligible to
27  receive a refund. If applicable, the governing body or agency
28  shall also certify if 20 percent of the employees of the
29  business are residents of an enterprise zone, excluding
30  temporary and part-time employees. The certification shall be
31  in writing, and a copy of the certification shall be
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 1  transmitted to the executive director of the Department of
 2  Revenue. The business shall be responsible for forwarding a
 3  certified application to the department within the time
 4  specified in subparagraph 4.
 5         4.  An application for a refund pursuant to this
 6  paragraph must be submitted to the department within 6 months
 7  after the tax is due on the business property that is
 8  purchased.
 9         5.  The provisions of s. 212.095 do not apply to any
10  refund application made pursuant to this paragraph. The amount
11  refunded on purchases of business property under this
12  paragraph shall be the lesser of 97 percent of the sales tax
13  paid on such business property or $5,000, or, if no less than
14  20 percent of the employees of the business are residents of
15  an enterprise zone, excluding temporary and part-time
16  employees, the amount refunded on purchases of business
17  property under this paragraph shall be the lesser of 97
18  percent of the sales tax paid on such business property or
19  $10,000. A refund approved pursuant to this paragraph shall be
20  made within 30 days of formal approval by the department of
21  the application for the refund. No refund shall be granted
22  under this paragraph unless the amount to be refunded exceeds
23  $100 in sales tax paid on purchases made within a 60-day time
24  period.
25         6.  The department shall adopt rules governing the
26  manner and form of refund applications and may establish
27  guidelines as to the requisites for an affirmative showing of
28  qualification for exemption under this paragraph.
29         7.  If the department determines that the business
30  property is used outside an enterprise zone within 3 years
31  from the date of purchase, the amount of taxes refunded to the
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 1  business purchasing such business property shall immediately
 2  be due and payable to the department by the business, together
 3  with the appropriate interest and penalty, computed from the
 4  date of purchase, in the manner provided by this chapter.
 5  Notwithstanding this subparagraph, business property used
 6  exclusively in:
 7         a.  Licensed commercial fishing vessels,
 8         b.  Fishing guide boats, or
 9         c.  Ecotourism guide boats
10  
11  that leave and return to a fixed location within an area
12  designated under s. 370.28 are eligible for the exemption
13  provided under this paragraph if all requirements of this
14  paragraph are met. Such vessels and boats must be owned by a
15  business that is eligible to receive the exemption provided
16  under this paragraph. This exemption does not apply to the
17  purchase of a vessel or boat.
18         8.  The department shall deduct an amount equal to 10
19  percent of each refund granted under the provisions of this
20  paragraph from the amount transferred into the Local
21  Government Half-cent Sales Tax Clearing Trust Fund pursuant to
22  s. 212.20 for the county area in which the business property
23  is located and shall transfer that amount to the General
24  Revenue Fund.
25         9.  For the purposes of this exemption, "business
26  property" means new or used property defined as "recovery
27  property" in s. 168(c) of the Internal Revenue Code of 1954,
28  as amended, except:
29         a.  Property classified as 3-year property under s.
30  168(c)(2)(A) of the Internal Revenue Code of 1954, as amended;
31  
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 1         b.  Industrial machinery and equipment as defined in
 2  sub-subparagraph (b)6.a. and eligible for exemption under
 3  paragraph (b);
 4         c.  Building materials as defined in sub-subparagraph
 5  (g)8.a.; and
 6         d.  Business property having a sales price of under
 7  $5,000 per unit.
 8         10.  This paragraph expires on the date specified in s.
 9  290.016 for the expiration of the Florida Enterprise Zone Act.
10         (n)  Materials for construction of single-family homes
11  in certain areas.--
12         1.  As used in this paragraph, the term:
13         a.  "Building materials" means tangible personal
14  property that becomes a component part of a qualified home.
15         b.  "Qualified home" means a single-family home having
16  an appraised value of no more than $160,000 which is located
17  in an enterprise zone, empowerment zone, or Front Porch
18  Florida Community and which is constructed and occupied by the
19  owner thereof for residential purposes.
20         c.  "Substantially completed" has the same meaning as
21  provided in s. 192.042(1).
22         2.  Building materials used in the construction of a
23  qualified home and the costs of labor associated with the
24  construction of a qualified home are exempt from the tax
25  imposed by this chapter upon an affirmative showing to the
26  satisfaction of the department that the requirements of this
27  paragraph have been met. This exemption inures to the owner
28  through a refund of previously paid taxes. To receive this
29  refund, the owner must file an application under oath with the
30  department which includes:
31         a.  The name and address of the owner.
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 1         b.  The address and assessment roll parcel number of
 2  the home for which a refund is sought.
 3         c.  A copy of the building permit issued for the home.
 4         d.  A certification by the local building code
 5  inspector that the home is substantially completed.
 6         e.  A sworn statement, under penalty of perjury, from
 7  the general contractor licensed in this state with whom the
 8  owner contracted to construct the home, which statement lists
 9  the building materials used in the construction of the home
10  and the actual cost thereof, the labor costs associated with
11  such construction, and the amount of sales tax paid on these
12  materials and labor costs. If a general contractor was not
13  used, the owner shall provide this information in a sworn
14  statement, under penalty of perjury. Copies of invoices
15  evidencing payment of sales tax must be attached to the sworn
16  statement.
17         f.  A sworn statement, under penalty of perjury, from
18  the owner affirming that he or she is occupying the home for
19  residential purposes.
20         3.  An application for a refund under this paragraph
21  must be submitted to the department within 6 months after the
22  date the home is deemed to be substantially completed by the
23  local building code inspector. Within 30 working days after
24  receipt of the application, the department shall determine if
25  it meets the requirements of this paragraph. A refund approved
26  pursuant to this paragraph shall be made within 30 days after
27  formal approval of the application by the department. The
28  provisions of s. 212.095 do not apply to any refund
29  application made under this paragraph.
30  
31  
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 1         4.  The department shall establish by rule an
 2  application form and criteria for establishing eligibility for
 3  exemption under this paragraph.
 4         5.  The exemption shall apply to purchases of materials
 5  on or after July 1, 2000.
 6         (o)  Building materials in redevelopment projects.--
 7         1.  As used in this paragraph, the term:
 8         a.  "Building materials" means tangible personal
 9  property that becomes a component part of a housing project or
10  a mixed-use project.
11         b.  "Housing project" means the conversion of an
12  existing manufacturing or industrial building to housing units
13  in an urban high-crime area, enterprise zone, empowerment
14  zone, Front Porch Community, designated brownfield area, or
15  urban infill area and in which the developer agrees to set
16  aside at least 20 percent of the housing units in the project
17  for low-income and moderate-income persons or the construction
18  in a designated brownfield area of affordable housing for
19  persons described in s. 420.0004(8), (10), (11), or (15) or in
20  s. 159.603(7).
21         c.  "Mixed-use project" means the conversion of an
22  existing manufacturing or industrial building to mixed-use
23  units that include artists' studios, art and entertainment
24  services, or other compatible uses. A mixed-use project must
25  be located in an urban high-crime area, enterprise zone,
26  empowerment zone, Front Porch Community, designated brownfield
27  area, or urban infill area, and the developer must agree to
28  set aside at least 20 percent of the square footage of the
29  project for low-income and moderate-income housing.
30         d.  "Substantially completed" has the same meaning as
31  provided in s. 192.042(1).
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 1         2.  Building materials used in the construction of a
 2  housing project or mixed-use project are exempt from the tax
 3  imposed by this chapter upon an affirmative showing to the
 4  satisfaction of the department that the requirements of this
 5  paragraph have been met. This exemption inures to the owner
 6  through a refund of previously paid taxes. To receive this
 7  refund, the owner must file an application under oath with the
 8  department which includes:
 9         a.  The name and address of the owner.
10         b.  The address and assessment roll parcel number of
11  the project for which a refund is sought.
12         c.  A copy of the building permit issued for the
13  project.
14         d.  A certification by the local building code
15  inspector that the project is substantially completed.
16         e.  A sworn statement, under penalty of perjury, from
17  the general contractor licensed in this state with whom the
18  owner contracted to construct the project, which statement
19  lists the building materials used in the construction of the
20  project and the actual cost thereof, and the amount of sales
21  tax paid on these materials. If a general contractor was not
22  used, the owner shall provide this information in a sworn
23  statement, under penalty of perjury. Copies of invoices
24  evidencing payment of sales tax must be attached to the sworn
25  statement.
26         3.  An application for a refund under this paragraph
27  must be submitted to the department within 6 months after the
28  date the project is deemed to be substantially completed by
29  the local building code inspector. Within 30 working days
30  after receipt of the application, the department shall
31  determine if it meets the requirements of this paragraph. A
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 1  refund approved pursuant to this paragraph shall be made
 2  within 30 days after formal approval of the application by the
 3  department. The provisions of s. 212.095 do not apply to any
 4  refund application made under this paragraph.
 5         4.  The department shall establish by rule an
 6  application form and criteria for establishing eligibility for
 7  exemption under this paragraph.
 8         5.  The exemption shall apply to purchases of materials
 9  on or after July 1, 2000.
10         Section 20.  Section 212.095, Florida Statutes, is
11  repealed.
12         Section 21.  Section 212.10, Florida Statutes, is
13  amended to read:
14         212.10  Sale of business; liability for tax, procedure,
15  penalty for violation.--
16         (1)(a)  If any dealer liable for any tax, interest, or
17  penalty levied hereunder sells shall sell out his or her
18  business or stock of goods, transfers substantially all of the
19  dealer's assets or liabilities to another entity or person, or
20  otherwise quits or ceases to conduct business:
21         1.  The dealer shall make a final return and payment
22  within 15 days after the date of selling or otherwise
23  transferring the business; and
24         2.  The dealer's purchaser, transferee, successor,
25  successors, or assignee assigns shall withhold a sufficient
26  portion of the consideration purchase money to safely cover
27  the account of such taxes, interest, or penalties due and
28  unpaid until the such former owner produces shall produce a
29  receipt from the department showing that he or she has they
30  have been paid or a certificate stating that no taxes,
31  interest, or penalty are due.
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 1         (b)  If the purchase or transfer is for less than fair
 2  market value, or if a purchaser, transferee, successor, or
 3  assignee purchasers of a business or stock of goods fails
 4  shall fail to withhold a sufficient amount of the
 5  consideration purchase money as above provided in paragraph
 6  (a), he or she is shall be personally liable for the payment
 7  of the taxes, interest, and penalties accruing and unpaid on
 8  account of the operation of the business by any former owner,
 9  owners, or assigns as follows:.
10         1.  If the purchaser fails or refuses to provide
11  competent substantial evidence of the consideration paid, the
12  purchaser is liable for the full amount of any liability for
13  tax, interest, and penalties accruing and unpaid on account of
14  the operation of the business by any former owner, owners, or
15  assigns and the same shall be assessed.
16         2.  If the purchaser, transferee, successor, or
17  assignee of a business or stock of goods expressly assumed the
18  debt of the selling dealer, or other preexisting liabilities
19  are otherwise assumed, the purchaser is liable for the full
20  amount of any liability for tax, interest, and penalties
21  accruing and unpaid on account of the operation of the
22  business by any former owner, owners, or assigns and the same
23  shall be assessed.
24         3.  If assets are transferred for consideration
25  determined to be less than fair market value, the transferee
26  is liable for the full amount of any liability for tax,
27  interest, and penalties accruing and unpaid on account of the
28  operation of the business by any former owner, owners, or
29  assigns and the same shall be assessed up to the fair market
30  value of the assets transferred.
31  
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 1         4.  If a successor entity is created that, upon
 2  transfer, acts to continue the dealer's business without a
 3  material change to the persons managing or controlling the
 4  original business or entity, the full amount of any unpaid
 5  liability for tax, interest, and penalties shall be assessed
 6  against the successor entity. If, at the time of the transfer,
 7  the liability was recorded as a warrant, the persons managing
 8  or controlling the successor entity are liable, in addition to
 9  other penalties provided by law, for a specific penalty of 100
10  percent of the tax, penalties, and interest due as established
11  by the warrant and the same shall be assessed.
12         (c)  Protection from transferee liability may be
13  secured only by an audit of the seller's or former owner's or
14  operator's books and records. The seller or purchaser,
15  transferee, successor, or assignee under this subsection may
16  request an audit of the seller's books and records. Any
17  receipt or certificate from the department does not, without
18  an audit of the selling dealer's books and records by the
19  department, guarantee that there is not a tax deficiency owed
20  the state from operation of the seller's or former owner's or
21  operator's business. To secure protection from transferee
22  liability under this section, the seller or purchaser may
23  request an audit of the seller's books and records. The
24  department may contract with private auditors pursuant to s.
25  213.28 to perform the audit.  The department may charge the
26  cost of the audit to the person requesting the audit.
27         1.  For the purposes of the personal liability imposed
28  by this subsection, in the case of a business requiring
29  registration with the department, in addition to any other
30  enforcement action the department may take, the department may
31  require:
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 1         a.  Payment of the liability or a written agreement
 2  with the department to pay such liability; and
 3         b.  Posting of a bond equal to or greater than three
 4  times the estimated average monthly liability of the
 5  transferee for all taxes, fees, and surcharges administered by
 6  the department.
 7         2.  The imposition of personal liability upon a
 8  transferee under this paragraph does not extinguish the
 9  liability of the seller, former owner, or former operator.
10         (2)  If any dealer liable for any tax, interest, or
11  penalty shall quit the business without the benefit of a
12  purchaser and there is no successor, successors, or assigns,
13  he or she shall make a final return and payment within 15
14  days. Any person failing to file such final return and make
15  payment shall be denied the right to engage in any business in
16  the state until the person has filed such final return and
17  paid any moneys due; and
18         (d)  At the request of the department, the Department
19  of Legal Affairs is hereby authorized to proceed by
20  injunction, when requested by the department to do so, to
21  prevent by injunction any activity in the performance of
22  further business activity until such tax is paid; and a
23  temporary injunction enjoining further business activity shall
24  be granted without notice by any judge or chancellor
25  authorized by law to grant injunctions with regard to:.
26         1.  Any dealer who fails to make a final return and
27  payment in the time and manner required by this subsection;
28  and
29         2.  Any taxpayer who is subject to personal liability
30  under this subsection.
31  
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 1         (2)(3)  In the event any dealer is delinquent in the
 2  payment of the tax herein provided for, the department may
 3  give notice of the amount of such delinquency by registered
 4  mail to all persons having in their possession or under their
 5  control any credits or other personal property belonging to
 6  such dealer or owing any debts to such dealer at the time of
 7  receipt by them of such notice.  All persons so notified shall
 8  within 5 days after receipt of the notice advise the
 9  department of all such credits, other personal property, or
10  debts in their possession, under their control, or owing by
11  them.  After receiving the notice, the persons so notified
12  shall neither transfer nor make any other disposition of the
13  credits, other personal property, or debts in their possession
14  or under their control at the time they receive the notice
15  until the department consents to a transfer or disposition or
16  until 60 days elapse after the receipt of the notice,
17  whichever period expires the earlier, except that the credits,
18  other personal property, or debts which exceed the delinquent
19  amount stipulated in the notice shall not be subject to the
20  provisions of this section, wherever held, in any case in
21  which such dealer does not have a prior history of sales tax
22  delinquencies.  All persons notified shall likewise within 5
23  days advise the department of any subsequent credits or other
24  personal property belonging to such dealer or any debts
25  incurred and owing to such dealer which may come within their
26  possession or under their control during the time prescribed
27  by the notice or until the department consents to a transfer
28  or disposition, whichever expires the earlier. If such notice
29  seeks to prevent the transfer or other disposition of a
30  deposit in a bank or other credits or personal property in the
31  possession or under the control of a bank, the notice to be
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 1  effective shall be delivered or mailed to the office of such
 2  bank at which such deposit is carried or at which such credits
 3  or personal property is held. If, during the effective period
 4  of the notice to withhold, any person so notified makes any
 5  transfer or disposition of the property or debts required to
 6  be withheld hereunder, he or she shall be liable to the state
 7  for any indebtedness due under this chapter from the person
 8  with respect to whose obligation the notice was given to the
 9  extent of the value of the property or the amount of the debts
10  thus transferred or paid if, solely by reason of such transfer
11  or disposition, the state is unable to recover the
12  indebtedness of the person with respect to whose obligation
13  the notice was given. All such credits or other personal
14  property or debts are subject to garnishment by the department
15  for satisfaction of the delinquent tax due.
16         (3)(4)  After notice by the department of a transferee
17  liability under this section, the dealer shall have 60 days
18  within which to file an action as provided in chapter 72.
19         (4)(5)  Any violation of the provisions of this section
20  is a misdemeanor of the first degree, punishable as provided
21  in s. 775.082 or s. 775.083.
22         Section 22.  Paragraph (d) of subsection (2) and
23  paragraph (c) of subsection (6) of section 212.12, Florida
24  Statutes, are amended to read:
25         212.12  Dealer's credit for collecting tax; penalties
26  for noncompliance; powers of Department of Revenue in dealing
27  with delinquents; brackets applicable to taxable transactions;
28  records required.--
29         (2)
30         (d)  Any person who makes a false or fraudulent return
31  with a willful intent to evade payment of any tax or fee
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 1  imposed under this chapter; any person who, after the
 2  department's delivery of a written notice to the person's last
 3  known address specifically alerting the person of the
 4  requirement to register the person's business as a dealer,
 5  intentionally fails to register the business; and any person
 6  who, after the department's delivery of a written notice to
 7  the person's last known address specifically alerting the
 8  person of the requirement to collect tax on specific
 9  transactions, intentionally fails to collect such tax, shall,
10  unless first having brought a legal challenge in response to
11  such notice and in addition to the other penalties provided by
12  law, be liable for a specific penalty of 100 percent of any
13  unreported or any uncollected the tax bill or fee and, upon
14  conviction, for fine and punishment as provided in s. 775.082,
15  s. 775.083, or s. 775.084.
16         1.  If the total amount of unreported or uncollected
17  taxes or fees is less than $300, the first offense resulting
18  in conviction is a misdemeanor of the second degree, the
19  second offense resulting in conviction is a misdemeanor of the
20  first degree, and the third and all subsequent offenses
21  resulting in conviction is a misdemeanor of the first degree,
22  and the third and all subsequent offenses resulting in
23  conviction are felonies of the third degree.
24         2.  If the total amount of unreported or uncollected
25  taxes or fees is $300 or more but less than $20,000, the
26  offense is a felony of the third degree.
27         3.  If the total amount of unreported or uncollected
28  taxes or fees is $20,000 or more but less than $100,000, the
29  offense is a felony of the second degree.
30  
31  
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 1         4.  If the total amount of unreported or uncollected
 2  taxes or fees is $100,000 or more, the offense is a felony of
 3  the first degree.
 4         (6)
 5         (c)1.  If the records of a dealer are adequate but
 6  voluminous in nature and substance, the department may sample
 7  such records, except for fixed assets, and project the audit
 8  findings derived therefrom over the entire audit period to
 9  determine the proportion that taxable retail sales bear to
10  total retail sales or the proportion that taxable purchases
11  bear to total purchases. Adequate but voluminous records of
12  fixed assets that have an individual cost price of $25,000 or
13  less may be statistically sampled, unless a greater amount not
14  to exceed $100,000 is requested by the taxpayer. In order to
15  conduct such a sample, the department must first make a good
16  faith effort to reach an agreement with the dealer, which
17  agreement provides for the means and methods to be used in the
18  sampling process. In the event that no agreement is reached,
19  the dealer is entitled to a review by the executive director.
20         2.  For the purposes of sampling pursuant to
21  subparagraph 1., the department shall project any deficiencies
22  and overpayments derived therefrom over the entire audit
23  period. In determining the dealer's compliance, the department
24  shall reduce any tax deficiency as derived from the sample by
25  the amount of any overpayment derived from the sample. In the
26  event the department determines from the sample results that
27  the dealer has a net tax overpayment, the department shall
28  provide the findings of this overpayment to the Chief
29  Financial Officer for repayment of funds paid into the State
30  Treasury through error pursuant to s. 215.26.
31  
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 1         3.a.  A taxpayer is entitled, both in connection with
 2  an audit and in connection with an application for refund
 3  filed independently of any audit, to establish the amount of
 4  any refund or deficiency through statistical sampling when the
 5  taxpayer's records, other than those regarding fixed assets,
 6  are adequate but voluminous. Adequate but voluminous records
 7  of fixed assets that have an individual cost price of $25,000
 8  or less may be statistically sampled, unless a greater amount
 9  not to exceed $100,000 is requested by the taxpayer.
10  Alternatively, a taxpayer is entitled to establish any refund
11  or deficiency through any other sampling method agreed upon by
12  the taxpayer and the department when the taxpayer's records,
13  other than those regarding fixed assets, are adequate but
14  voluminous. Whether done through statistical sampling or any
15  other sampling method agreed upon by the taxpayer and the
16  department, the completed sample must reflect both
17  overpayments and underpayments of taxes due. The sample shall
18  be conducted through:
19         (I)  A taxpayer request to perform the sampling through
20  the certified audit program pursuant to s. 213.285;
21         (II)  Attestation by a certified public accountant as
22  to the adequacy of the sampling method utilized and the
23  results reached using such sampling method; or
24         (III)  A sampling method that has been submitted by the
25  taxpayer and approved by the department before a refund claim
26  is submitted. This sub-sub-subparagraph does not prohibit a
27  taxpayer from filing a refund claim prior to approval by the
28  department of the sampling method; however, a refund claim
29  submitted before the sampling method has been approved by the
30  department cannot be a complete refund application pursuant to
31  
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 1  s. 213.255 until the sampling method has been approved by the
 2  department.
 3         b.  The department shall prescribe by rule the
 4  procedures to be followed under each method of sampling. Such
 5  procedures shall follow generally accepted auditing procedures
 6  for sampling. The rule shall also set forth other criteria
 7  regarding the use of sampling, including, but not limited to,
 8  training requirements that must be met before a sampling
 9  method may be utilized and the steps necessary for the
10  department and the taxpayer to reach agreement on a sampling
11  method submitted by the taxpayer for approval by the
12  department.
13         Section 23.  It is the intent of the Legislature that
14  the amendments made by this act to s. 212.12(6)(c), Florida
15  Statutes, apply to all pending sales and use tax audits or
16  other actions or inquiries, excluding those currently under
17  protest or in litigation. The amendments made by this act to
18  s. 212.12(6)(c), Florida Statutes, do not create any right to
19  refund for taxes previously assessed and paid in regard to
20  audits or other actions or inquiries that are no longer
21  pending.
22         Section 24.  Subsection (4) of section 212.14, Florida
23  Statutes, is amended to read:
24         212.14  Departmental powers; hearings; distress
25  warrants; bonds; subpoenas and subpoenas duces tecum.--
26         (4)  In all cases where it is necessary to ensure
27  compliance with the provisions of this chapter, The department
28  may shall require a cash deposit, bond or other security as a
29  condition to a person obtaining or retaining a dealer's
30  certificate of registration under this chapter, as provided in
31  s. 213.32(5). Such bond shall be in the form and such amount
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 1  as the department deems appropriate under the particular
 2  circumstances. Every person failing to produce such cash
 3  deposit, bond or other security as provided for herein shall
 4  not be entitled to obtain or retain a dealer's certificate of
 5  registration under this chapter, and the Department of Legal
 6  Affairs is hereby authorized to proceed by injunction, when so
 7  requested by the Department of Revenue, to prevent such person
 8  from doing business subject to the provisions of this chapter
 9  until such cash deposit, bond or other security is posted with
10  the department, and any temporary injunction for this purpose
11  may be granted by any judge or chancellor authorized by law to
12  grant injunctions. Any security required to be deposited may
13  be sold by the department at public sale if it becomes
14  necessary so to do in order to recover any tax, interest or
15  penalty due. Notice of such sale may be served personally or
16  by mail upon the person who deposited such security. If by
17  mail, notice sent to the last known address as the same
18  appears on the records of the department shall be sufficient
19  for the purpose of this requirement. Upon such sale, the
20  surplus, if any, above the amount due under this chapter shall
21  be returned to the person who deposited the security.
22         Section 25.  Subsection (3) of section 212.18, Florida
23  Statutes, is amended to read:
24         212.18  Administration of law; registration of dealers;
25  rules.--
26         (3)(a)  Every person desiring to engage in or conduct
27  business in this state as a dealer, as defined in this
28  chapter, or to lease, rent, or let or grant licenses in living
29  quarters or sleeping or housekeeping accommodations in hotels,
30  apartment houses, roominghouses, or tourist or trailer camps
31  that are subject to tax under s. 212.03, or to lease, rent, or
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 1  let or grant licenses in real property, as defined in this
 2  chapter, and every person who sells or receives anything of
 3  value by way of admissions, must file with the department an
 4  application for a certificate of registration for each place
 5  of business, showing the names of the persons who have
 6  interests in such business and their residences, the address
 7  of the business, and such other data as the department may
 8  reasonably require. However, owners and operators of vending
 9  machines or newspaper rack machines are required to obtain
10  only one certificate of registration for each county in which
11  such machines are located. The department, by rule, may
12  authorize a dealer that uses independent sellers to sell its
13  merchandise to remit tax on the retail sales price charged to
14  the ultimate consumer in lieu of having the independent seller
15  register as a dealer and remit the tax. The department may
16  appoint the county tax collector as the department's agent to
17  accept applications for registrations. The application must be
18  made to the department before the person, firm, copartnership,
19  or corporation may engage in such business, and it must be
20  accompanied by a registration fee of $5. However, a
21  registration fee is not required to accompany an application
22  to engage in or conduct business to make mail order sales. The
23  department may waive the registration fee for applications
24  submitted through the department's Internet registration
25  process.
26         (b)  The department, upon receipt of such application,
27  will grant to the applicant a separate certificate of
28  registration for each place of business, which certificate may
29  be canceled by the department or its designated assistants for
30  any failure by the certificateholder to comply with any of the
31  provisions of this chapter. The certificate is not assignable
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 1  and is valid only for the person, firm, copartnership, or
 2  corporation to which issued. The certificate must be placed in
 3  a conspicuous place in the business or businesses for which it
 4  is issued and must be displayed at all times. Except as
 5  provided in this subsection, no person shall engage in
 6  business as a dealer or in leasing, renting, or letting of or
 7  granting licenses in living quarters or sleeping or
 8  housekeeping accommodations in hotels, apartment houses,
 9  roominghouses, tourist or trailer camps, or real property as
10  hereinbefore defined, nor shall any person sell or receive
11  anything of value by way of admissions, without first having
12  obtained such a certificate or after such certificate has been
13  canceled; no person shall receive any license from any
14  authority within the state to engage in any such business
15  without first having obtained such a certificate or after such
16  certificate has been canceled. The engaging in the business of
17  selling or leasing tangible personal property or services or
18  as a dealer, as defined in this chapter, or the engaging in
19  leasing, renting, or letting of or granting licenses in living
20  quarters or sleeping or housekeeping accommodations in hotels,
21  apartment houses, roominghouses, or tourist or trailer camps
22  that are taxable under this chapter, or real property, or the
23  engaging in the business of selling or receiving anything of
24  value by way of admissions, without such certificate first
25  being obtained or after such certificate has been canceled by
26  the department, is prohibited. The failure or refusal of any
27  person, firm, copartnership, or corporation to so qualify when
28  required hereunder is a misdemeanor of the first degree,
29  punishable as provided in s. 775.082 or s. 775.083, or subject
30  to injunctive proceedings as provided by law. Such failure or
31  refusal also subjects the offender to a $100 initial
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 1  registration fee in lieu of the $5 registration fee authorized
 2  in paragraph (a).  However, the department may waive the
 3  increase in the registration fee if it is determined by the
 4  department that the failure to register was due to reasonable
 5  cause and not to willful negligence, willful neglect, or
 6  fraud.
 7         (c)  In addition to the certificate of registration,
 8  the department shall provide to each newly registered dealer
 9  an initial resale certificate that will be valid for the
10  remainder of the period of issuance. The department shall
11  provide each active dealer with an annual resale certificate.
12  For purposes of this section, "active dealer" means a person
13  who is currently registered with the department and who is
14  required to file at least once during each applicable
15  reporting period.
16         (d)  The department may revoke any dealer's certificate
17  of registration when the dealer fails to comply with this
18  chapter. Prior to revocation of a dealer's certificate of
19  registration, the department must schedule an informal
20  conference at which the dealer may present evidence regarding
21  the department's intended revocation or enter into a
22  compliance agreement with the department. The department must
23  notify the dealer of its intended action and the time, place,
24  and date of the scheduled informal conference by written
25  notification sent by United States mail to the dealer's last
26  known address of record furnished by the dealer on a form
27  prescribed by the department. The dealer is required to attend
28  the informal conference and present evidence refuting the
29  department's intended revocation or enter into a compliance
30  agreement with the department which resolves the dealer's
31  failure to comply with this chapter. The department shall
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 1  issue an administrative complaint under s. 120.60 if the
 2  dealer fails to attend the department's informal conference,
 3  fails to enter into a compliance agreement with the department
 4  resolving the dealer's noncompliance with this chapter, or
 5  fails to comply with the executed compliance agreement.
 6         (d)(e)  As used in this paragraph, the term "exhibitor"
 7  means a person who enters into an agreement authorizing the
 8  display of tangible personal property or services at a
 9  convention or a trade show.  The following provisions apply to
10  the registration of exhibitors as dealers under this chapter:
11         1.  An exhibitor whose agreement prohibits the sale of
12  tangible personal property or services subject to the tax
13  imposed in this chapter is not required to register as a
14  dealer.
15         2.  An exhibitor whose agreement provides for the sale
16  at wholesale only of tangible personal property or services
17  subject to the tax imposed in this chapter must obtain a
18  resale certificate from the purchasing dealer but is not
19  required to register as a dealer.
20         3.  An exhibitor whose agreement authorizes the retail
21  sale of tangible personal property or services subject to the
22  tax imposed in this chapter must register as a dealer and
23  collect the tax imposed under this chapter on such sales.
24         4.  Any exhibitor who makes a mail order sale pursuant
25  to s. 212.0596 must register as a dealer.
26  
27  Any person who conducts a convention or a trade show must make
28  their exhibitor's agreements available to the department for
29  inspection and copying.
30         Section 26.  Section 213.0352, Florida Statutes, is
31  created to read:
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 1         213.0352  Information for enforcement of tax laws.--
 2         (1)  As used in this section, the term:
 3         (a)  "Financial institution" means:
 4         1.  A depository institution, as defined in s. 3(c) of
 5  the Federal Deposit Insurance Act, 12 U.S.C. s. 1813(c);
 6         2.  An institution-affiliated party, as defined in s.
 7  3(u) of the Federal Deposit Insurance Act, 12 U.S.C. s.
 8  1813(u);
 9         3.  Any federal credit union or state credit union, as
10  defined in s. 101 of the Federal Credit Union Act, 12 U.S.C.
11  s. 1752, including an institution-affiliated party of such a
12  credit union, as defined in s. 206(r) of the Federal Credit
13  Union Act, 12 U.S.C. s. 1786(r); or
14         4.  Any benefit association, insurance company,
15  safe-deposit company, money-market mutual fund, or similar
16  entity authorized to do business in this state.
17         (b)  "Account" means a demand deposit account, checking
18  or negotiable withdrawal order account, savings account, time
19  deposit account, or money-market mutual fund account.
20         (c)  "Obligor" means any person against whose property
21  the department has issued a warrant or filed a judgment lien
22  certificate.
23         (d)  "Person" means a person as defined in s. 212.02.
24         (2)  The department may request from a financial
25  institution information and assistance to enable the
26  department to enforce the tax laws of the state. The
27  department shall develop procedures to enter into agreements
28  with financial institutions doing business in the state to
29  develop and operate a data match system, using automated data
30  exchanges to the maximum extent feasible, in which each
31  financial institution is required to provide for each calendar
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 1  quarter the name, record address, social security number or
 2  other taxpayer identification number, average daily account
 3  balance, and other identifying information for:
 4         (a)  Each obligor who maintains an account at such
 5  institution, as identified by the department by name and
 6  social security number or other taxpayer identification
 7  number; or
 8         (b)  At the financial institution's option, each person
 9  who maintains an account at such institution.
10  
11  Use of this information shall be limited to the purpose of
12  administering the taxes and fees administered by the
13  department.
14         (3)  The department shall, to the extent possible in
15  compliance with state and federal law, administer this section
16  in conjunction with s. 409.25657 in order to reduce the burden
17  of compliance on financial institutions.
18         (4)  The department shall pay a reasonable fee to a
19  financial institution for conducting the data match provided
20  for in subsection (2), which may not exceed the actual costs
21  incurred by the financial institution.
22         (5)  A financial institution is not liable to any
23  person and is not required to provide notice to its customers:
24         (a)  For the disclosure of any information required
25  under this section;
26         (b)  For encumbering or surrendering any assets held by
27  the financial institution in response to a notice of lien or
28  levy issued by the department;
29         (c)  For disclosing any information in connection with
30  a data match; or
31  
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 1         (d)  For any other action taken in good faith to comply
 2  with the requirements of this section.
 3         (6)  Any financial records obtained under this section
 4  may be disclosed only for the purpose of, and to the extent
 5  necessary in, administering and enforcing the tax laws of this
 6  state.
 7         (7)  The department may institute civil proceedings to
 8  enforce this section.
 9         (8)  The department may adopt rules pursuant to ss.
10  120.536(1) and 120.54 for establishing the procedures and
11  requirements for automated data matches with financial
12  institutions under this section.
13         Section 27.  Paragraph (z) is added to subsection (8)
14  of section 213.053, Florida Statutes, and paragraph (a) of
15  subsection (16) of that section is amended, to read:
16         213.053  Confidentiality and information sharing.--
17         (8)  Notwithstanding any other provision of this
18  section, the department may provide:
19         (z)  Names and taxpayer identification numbers relative
20  to information agreements with financial institutions pursuant
21  to s. 213.0352.
22  
23  Disclosure of information under this subsection shall be
24  pursuant to a written agreement between the executive director
25  and the agency.  Such agencies, governmental or
26  nongovernmental, shall be bound by the same requirements of
27  confidentiality as the Department of Revenue.  Breach of
28  confidentiality is a misdemeanor of the first degree,
29  punishable as provided by s. 775.082 or s. 775.083.
30         (16)(a)  The department may disclose Confidential
31  taxpayer information may be shared with contained in returns,
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 1  reports, accounts, or declarations filed with the department
 2  by persons subject to any state or local tax to the child
 3  support enforcement program, which may use the information for
 4  purposes of program administration, to assist in the location
 5  of parents who owe or potentially owe a duty of support, as
 6  defined in s. 409.2554, pursuant to Title IV-D of the Social
 7  Security Act, their assets, their income, and their employer,
 8  and with to the Department of Children and Family Services for
 9  the purpose of diligent search activities pursuant to chapter
10  39.
11         Section 28.  Paragraph (d) of subsection (3) of section
12  213.21, Florida Statutes, is amended to read:
13         213.21  Informal conferences; compromises.--
14         (3)
15         (d)  A taxpayer's liability for the service fee
16  required by s. 215.34(2) may be settled or compromised if it
17  is determined that the dishonored check, draft, or order was
18  returned due to an unintentional error committed by the
19  issuing financial institution, the taxpayer, or the department
20  and the unintentional error is substantiated by the
21  department. The department shall maintain records of all
22  compromises, and the records shall state the basis for the
23  compromise.
24         Section 29.  Section 213.32, Florida Statutes, is
25  created to read:
26         213.32  Integrated enforcement authority.--
27         (1)  INTENT.--It is the intent of the Legislature to
28  integrate, to the greatest extent possible, the department's
29  collection and enforcement authority for each tax, fee, or
30  surcharge it administers.
31  
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 1         (2)  INTEGRATED WARRANTS AND JUDGMENT LIEN
 2  CERTIFICATES.--In addition to the authority granted to the
 3  department by law to issue warrants and file judgment lien
 4  certificates regarding any tax, fee, or surcharge it
 5  administers, the department may issue a single warrant and
 6  file a single judgment lien certificate evidencing a
 7  taxpayer's total liability for all taxes, fees, or surcharges
 8  administered by the department. Each integrated warrant and
 9  integrated judgment lien certificate issued or filed must
10  separately identify and itemize the total amount due with
11  regard to each tax, fee, or surcharge, including any related
12  penalty and interest. In order for a taxpayer's liability for
13  any individual tax, fee, or surcharge, including penalties and
14  interest, to be included in an integrated warrant or judgment
15  lien certificate, the department must have the current
16  authority to file a warrant or judgment lien certificate with
17  regard to the taxpayer's liability for that tax, fee, or
18  surcharge.
19         (3)  REVOCATION OF CERTIFICATES OF REGISTRATION,
20  PERMITS, OR LICENSES.--
21         (a)  When a taxpayer is delinquent in the payment of
22  any tax, fee, or surcharge administered by the department, the
23  department may revoke the taxpayer's certificate of
24  registration, permit, or license issued to that taxpayer by
25  the department. For purposes of this subsection, a taxpayer is
26  delinquent only when the department has issued a warrant or
27  filed a judgment lien certificate against such taxpayer's
28  property.
29         (b)  Before revoking one or more of the taxpayer's
30  certificates of registration, permits, or licenses, the
31  department must schedule an informal conference at which the
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 1  taxpayer may present evidence regarding the department's
 2  intended revocation or enter into a compliance agreement with
 3  the department. The department must provide written notice to
 4  the taxpayer at the taxpayer's last known address of its
 5  intended action and the time, place, and date of the scheduled
 6  informal conference. The taxpayer shall attend the informal
 7  conference and present evidence refuting the department's
 8  intended revocation or enter into a compliance agreement with
 9  the department which resolves the dealer's failure to comply
10  with any tax, fee, or surcharge administered by the
11  department. The department shall issue an administrative
12  complaint under chapter 120 if the taxpayer fails to attend
13  the department's informal conference, fails to enter into a
14  compliance agreement with the department resolving the
15  dealer's noncompliance with all taxes administered under this
16  chapter, or fails to comply with the executed compliance
17  agreement.
18         (c)  If one or more of a taxpayer's certificates of
19  registration, permits, or licenses have been revoked, the
20  department may not issue a new certificate of registration,
21  permit, or license to that taxpayer unless:
22         1.  The taxpayer's outstanding liabilities have been
23  satisfied;
24         2.  The taxpayer has entered into a written agreement
25  with the department for payment and is current in all
26  payments; or
27         3.  The department, at its sole discretion, otherwise
28  enters into a written agreement with the taxpayer regarding
29  the liability and, as part of that agreement, agrees to issue
30  a new certificate of registration, permit, or license to the
31  taxpayer.
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 1         (d)  When the department has issued a warrant or filed
 2  a judgment lien certificate in connection with a jeopardy
 3  assessment, the procedures specified in s. 213.732 must be
 4  complied with prior to or in conjunction with those provided
 5  in this subsection.
 6         (4)  ADMINISTRATIVE FREEZE OF A DELINQUENT TAXPAYER'S
 7  ASSETS.--
 8         (a)  As used in this subsection, the term:
 9         1.  "Assets" means any personal property, credits, or
10  debts owned by or owed to a delinquent taxpayer, excluding
11  wages.
12         2.  "Custodian" means any person, as defined by s.
13  212.02, the Federal Government, or any agency or
14  instrumentality of the Federal Government having control or
15  possession of any assets owned by, or owed to, any delinquent
16  taxpayer.
17         3.  "Delinquent taxpayer" means any taxpayer delinquent
18  in the payment of any tax, fee, or surcharge, including
19  penalties and interest, administered by the department and
20  against whose property the department has issued a warrant or
21  filed a judgment lien certificate.
22         (b)  In addition to other remedies granted to the
23  department by law, when any taxpayer is delinquent in the
24  payment of tax, fee, or surcharge administered by the
25  department, including penalties and interest, the department
26  may give notice to all custodians having in their possession
27  or under their control any assets of such delinquent taxpayer
28  at the time the notice is received.
29         (c)  In order to initiate a freeze of a delinquent
30  taxpayer's assets, the department must prepare a notice of
31  freeze that applies to the total assets of the delinquent
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 1  taxpayer or that applies only to a specified dollar amount.
 2  The notice of freeze must be sent by registered mail to all
 3  custodians having in their possession or control any assets of
 4  the delinquent taxpayer.
 5         (d)  The notice of freeze must state the department's
 6  authority to initiate the procedure; specifically identify the
 7  delinquent taxpayer subject to the freeze; specify each tax,
 8  fee, or surcharge for which the taxpayer is delinquent;
 9  specify the amount of each tax, fee, or surcharge, including
10  penalties and interest, owed by the taxpayer; indicate the
11  dates during which the freeze of assets is effective; specify
12  the amount of the taxpayer's assets which must be frozen or
13  withheld by the custodian; and fully describe the custodian's
14  responsibilities pursuant to this subsection.
15         (e)  The notice of freeze must notify the custodian
16  that:
17         1.  The custodian is prohibited from transferring or
18  otherwise disposing of the specified partial amount or the
19  entire amount of the assets of the delinquent taxpayer in its
20  possession or under its control at the time of receipt of the
21  notice of freeze, or any additional assets of the delinquent
22  taxpayer which the custodian subsequently acquires possession
23  or control of during the period prescribed by the notice of
24  freeze, unless consent is given by the department in writing.
25         2.  The notice of freeze is effective as of the date of
26  its receipt, and it remains in effect until the department
27  consents to a transfer or disposition or until 60 days elapse
28  after the receipt of the notice, whichever period expires
29  earlier.
30         3.  If, during the period prescribed by the notice of
31  freeze, a custodian makes any transfer or other disposition of
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 1  the assets required to be frozen or withheld, the custodian
 2  will be liable for any indebtedness owed to the department by
 3  the delinquent taxpayer to the extent of the value of the
 4  property or amounts of the debt transferred or paid, if the
 5  department is unable to recover the indebtedness solely by
 6  reason of the transfer or disposition.
 7         (f)  The notice of freeze must inform the custodian
 8  that each custodian who receives a notice of freeze issued
 9  under this section shall:
10         1.  Inform the department in writing, within 5 days
11  after receipt of the notice, of all such assets of the
12  delinquent taxpayer in its possession, under its control, or
13  owing to it.
14         2.  Inform the department in writing within 5 days
15  after coming into possession or control of any assets of the
16  delinquent taxpayer subsequent to receipt of the notice of
17  freeze and during the time prescribed by the notice.
18         3.  Comply with the statutory prohibition against
19  transferring or disposing of the delinquent taxpayer's assets
20  specified in the notice of freeze and any subsequently
21  possessed or controlled assets.
22         (g)  If the notice of freeze seeks to prevent the
23  transfer or other disposition of a deposit in a bank or other
24  assets under the control of a bank, the notice is effective if
25  delivered to any office of the bank at which the deposit is
26  carried or at which such assets are held.
27         (h)  If, during the period prescribed by the notice of
28  freeze, the delinquent taxpayer satisfies the liability for
29  taxes, fees, or surcharges, including penalties and interest,
30  the department shall issue a notice of release. Upon receipt
31  of the notice of release, the custodian is no longer
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 1  prohibited from transferring, returning, or disposing of any
 2  assets owned, controlled by, or owed to the taxpayer which are
 3  in the custodian's possession or control.
 4         (i)  All assets subject to freeze under this subsection
 5  are also subject to:
 6         1.  Garnishment by the department; and
 7         2.  Levy, seizure, and sale by the department.
 8         (5)  CASH DEPOSIT, SURETY BOND, OR IRREVOCABLE LETTERS
 9  OF CREDIT.--In order to collect the taxes, fees, and
10  surcharges administered by the department and to ensure
11  compliance with the revenue laws of this state, the
12  department, in its sole discretion, may require a taxpayer to
13  provide security as a condition to the taxpayer obtaining,
14  renewing, or retaining any dealer's certificate of
15  registration, permit, or license with the department as
16  provided in this subsection. The authority granted by this
17  subsection is in addition to other authority granted to the
18  executive director and the department by law.
19         (a)  As used in this subsection, the term:
20         1.  "Department" means the executive director of the
21  Department of Revenue or the executive director's designee.
22         2.  "Security" means any cash deposit, surety bonds, or
23  irrevocable letters of credit. Surety bonds must be issued by
24  a surety company authorized to transact business in this state
25  as a surety. Irrevocable letters of credit must be issued by a
26  bank authorized to do business in this state as a bank and
27  shall be engaged as an agreement to honor demands for payment
28  as specified in this subsection.
29         3.  "Taxpayer" means any person, as defined by s.
30  212.02 and, solely for the purposes of determining whether
31  security is required under this subsection and the amount of
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 1  any such security required, the term also includes any related
 2  person.
 3         (b)1.  In determining whether security will be required
 4  and the amount of the security, the department shall consider:
 5         a.  The taxpayer's compliance with state and federal
 6  laws;
 7         b.  The taxpayer's compliance with state and federal
 8  revenue laws;
 9         c.  The taxpayer's financial status and ability to pay;
10  and
11         d.  Any other facts and circumstances affecting
12  compliance with the revenue laws of this state.
13         2.  The security shall be in the amount required by the
14  department. The amount of security required by the department
15  may not exceed a taxpayer's estimated liability, as determined
16  by the department, for all taxes, fees, and surcharges,
17  including penalties and interest, administered by the
18  department for 12 consecutive months, plus any unpaid
19  delinquencies of the taxpayer.
20         3.  If the department determines that security is
21  required, it shall provide written notice of such
22  determination to the taxpayer at the taxpayer's last known
23  address as it appears in the department's records. The
24  taxpayer must post the required security or send a written
25  objection to the department within 30 days after the date on
26  the department's notice, failing which the department shall
27  refuse the issuance or renewal of any dealer's certificate of
28  registration, permit, or license with the department, or
29  initiate revocation proceedings to revoke any existing
30  registrations, permits, or licenses.
31  
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 1         4.  If the department determines that the amount of any
 2  existing security is insufficient to ensure payment of the
 3  amount of the taxes, fees, and surcharges, including penalties
 4  and interest, for which the taxpayer is or may at any time
 5  become liable, or if the amount of the security is reduced or
 6  released, whether by judgment rendered or by use of the
 7  security to pay the delinquent taxes, penalty, or interest,
 8  the department shall provide written notification to the
 9  taxpayer of the revised amount of security required. The
10  taxpayer shall file additional security in the amount required
11  or provide a written objection within 30 days, failing which
12  the department shall refuse the issuance or renewal of any
13  taxpayer's certificate of registration, permit, or license
14  with the department, or initiate revocation proceedings to
15  revoke any existing registrations, permits, or licenses. If a
16  new security is furnished, the department shall cancel,
17  surrender, or discharge the previous security as appropriate,
18  for which such new security is substituted.
19         5.  When a taxpayer that has provided security is
20  delinquent more than 30 days in the payment of any tax, fee,
21  or surcharge administered by the department, the department
22  may, upon 10 days' written notice provided to the last known
23  address of the taxpayer as it appears in the department's
24  records, apply the security in whole or in part to the amount
25  that the taxpayer should have collected and remitted or paid.
26         6.  The duration of any security required under this
27  subsection may not be less than 12 months. If a taxpayer files
28  all returns and pays all tax to the state within the time
29  required by law for a period of 12 consecutive months, the
30  department shall, upon written request by the taxpayer,
31  release or refund the security. If the taxpayer ceases
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 1  operations during the time the security is being held by the
 2  department, the taxpayer must submit a written request to the
 3  department within 90 days after ceasing operations for the
 4  return of the deposit or release of the surety bond or letter
 5  of credit. The department shall offset any reimbursement of
 6  security under this subsection against any outstanding
 7  liability of the taxpayer.
 8         (c)  Any taxpayer failing to post security as provided
 9  in this subsection is not entitled to obtain, renew, or retain
10  any certificate of registration, permit, or license issued by
11  the department. At the request of the department, the
12  Department of Legal Affairs may proceed by injunction to
13  prevent any activity in the performance of further business
14  activity subject to registration, permitting, or licensing by
15  the department until such security is posted with the
16  department. A temporary injunction for this purpose may be
17  granted by any judge or chancellor authorized by law to grant
18  injunctions.
19         (d)  Any security required under this subsection may be
20  sold by the department to recover any taxes, fees, or
21  surcharges due, including penalties and interest. Notice of
22  such sale may be served personally or by mail upon the
23  taxpayer who deposited such security. If by mail, notice sent
24  to the last known address as the same appears on the records
25  of the department is sufficient for the purpose of this
26  requirement. Upon such sale, the surplus, if any, above the
27  amount due under this chapter shall be returned to the
28  taxpayer who deposited the security.
29         (6)  GARNISHMENT.--Garnishment shall be conducted for
30  all taxes administered by the department under s. 213.67.
31  
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 1         (7)  TRANSFER OF LIABILITY.--The liability for any tax,
 2  fee, or surcharge, including penalties and interest, may be
 3  transferred to responsible corporate officers as provided in
 4  s. 213.29.
 5         (8)  JEOPARDY ASSESSMENTS.--If there is jeopardy to the
 6  revenue and jeopardy is asserted in or with an assessment, the
 7  department shall proceed in the manner specified for jeopardy
 8  assessments in s. 213.732.
 9         (9)  RULES.--The department may adopt rules pursuant to
10  ss. 120.536(1) and 120.54 to administer this section.
11         Section 30.  Effective January 1, 2008, subsection (1)
12  of section 213.755, Florida Statutes, is amended to read:
13         213.755  Filing of returns and payment of taxes by
14  electronic means.--
15         (1)  The executive director of the Department of
16  Revenue shall have authority to require a taxpayer to file
17  returns and remit payments by electronic means where the
18  taxpayer is subject to tax and has paid that tax in the prior
19  state fiscal year in an amount of $20,000 $30,000 or more;
20  $10,000 or more, effective January 1, 2009; and $5,000 or
21  more, effective January 1, 2010. Any taxpayer who operates two
22  or more places of business for which returns are required to
23  be filed with the department shall combine the tax payments
24  for all such locations in order to determine whether they are
25  obligated under this section. This subsection does not
26  override additional requirements in any provision of a revenue
27  law which the department has the responsibility for
28  regulating, controlling, and administering.
29         Section 31.  Subsection (2) of section 220.21, Florida
30  Statutes, is amended, and subsection (3) is added to that
31  section, to read:
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 1         220.21  Returns and records; regulations.--
 2         (2)  A taxpayer who is required to file its federal
 3  income tax return by electronic means on a separate or
 4  consolidated basis shall file returns required by this chapter
 5  by electronic means. For the reasons described in s.
 6  213.755(9), the department may waive the requirement to file a
 7  return by electronic means for taxpayers that are unable to
 8  comply despite good faith efforts or due to circumstances
 9  beyond the taxpayer's reasonable control. The provisions of
10  this subsection are in addition to the requirements of s.
11  213.755 to electronically file returns and remit payments
12  required under this chapter. A taxpayer may choose to file a
13  return required by this code in a form initiated through a
14  telephonic or electronic data interchange using an advanced
15  encrypted transmission by means of the Internet or other
16  suitable transmission. The department may shall prescribe by
17  rule the format and instructions necessary for electronic such
18  filing to ensure a full collection of taxes due. In addition
19  to the authority granted under s. 213.755, the acceptable
20  method of transfer, the method, form, and content of the
21  electronic data interchange, and the means, if any, by which
22  the taxpayer will be provided with an acknowledgment may shall
23  be prescribed by the department. In the case of any failure to
24  comply with the electronic-filing requirements of this
25  subsection there shall be added as a penalty to the amount of
26  tax due with such return the greater of 10 percent of the
27  amount of such tax or $250. The department may settle or
28  compromise the penalty pursuant to s. 213.21. This penalty is
29  in addition to any other penalty that may be applicable and
30  shall be assessed, collected, and paid in the same manner as
31  taxes.
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 1         (3)  In addition to its authority under s. 213.755, the
 2  department may adopt rules requiring or allowing taxpayers to
 3  use an electronic-filing system to file returns required by
 4  subsection (2), including any electronic systems developed by
 5  the Internal Revenue Service.
 6         Section 32.  The amendments made by this act to s.
 7  220.21(2), Florida Statutes, apply to returns due on or after
 8  January 1, 2008.
 9         Section 33.  Section 220.802, Florida Statutes, is
10  created to read:
11         220.802  Accuracy-related penalties.--
12         (1)  IMPOSITION OF PENALTY.--If this section applies to
13  any portion of an underpayment of tax required to be shown on
14  a return under this chapter or chapter 221, there shall be
15  added to the tax an amount equal to 20 percent of the portion
16  of the underpayment to which this section applies.
17         (2)  PORTION OF UNDERPAYMENT TO WHICH THIS SECTION
18  APPLIES.--
19         (a)  This section applies to the portion of any
20  underpayment due under this chapter or chapter 221 which is
21  attributable to one or more of the following:
22         1.  Negligence or disregard of statutes or rules.
23         2.  Any substantial understatement of tax.
24         (b)  This section does not apply to any portion of an
25  underpayment which is due to fraud and on which the penalty
26  for fraud is imposed and sustained. For purposes of this
27  section, the amount shown as tax by the taxpayer upon a return
28  shall be taken into account in determining the amount of the
29  deficiency only if such return was filed on or before the last
30  day prescribed by law for the filing of such return, including
31  any extensions of time for such filing.
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 1         1.  As used in this section, the term "negligence"
 2  includes any failure to make a reasonable attempt to comply
 3  with the provisions of this chapter or chapter 221, and the
 4  rules adopted thereunder, or to exercise ordinary and
 5  reasonable care in preparing a tax return. The term also
 6  includes any failure by the taxpayer to keep adequate books
 7  and records or to substantiate items properly. A position with
 8  respect to an item is attributable to negligence if it lacks a
 9  reasonable basis.
10         2.  As used in this section, the term "disregard"
11  includes any careless, reckless, or intentional disregard of
12  statutes or rules adopted under this chapter or chapter 221. A
13  disregard of statutes or rules is "careless" if the taxpayer
14  or the taxpayer's representative does not exercise reasonable
15  diligence to determine the correctness of a return position
16  that is contrary to a statute or rule and does not adequately
17  disclose that return position on the return. A disregard is
18  "reckless" if the taxpayer or the taxpayer's representative
19  makes little or no effort to determine if a statute or rule
20  exists under circumstances that demonstrate a substantial
21  deviation from the standard of conduct that a reasonable
22  person would observe. A disregard is "intentional" if the
23  taxpayer or the taxpayer's representative knows or should know
24  of the statute or rule that is disregarded. Nevertheless, a
25  taxpayer or representative who takes a position contrary to a
26  ruling, as opposed to a statute or rule, has not disregarded
27  the ruling if the contrary position has a realistic
28  possibility of being sustained on its merits and the
29  taxpayer's position is adequately disclosed. The penalty for
30  disregarding statutes or rules does not apply if the taxpayer
31  has adequately disclosed the position that is the basis for
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 1  the penalty and there is a reasonable basis for the position
 2  of the taxpayer or to the extent that the taxpayer acted in
 3  good faith and had reasonable cause. The reasonable-cause
 4  provisions of s. 213.21 do not apply to this section and
 5  reasonable cause shall be interpreted in the same manner as
 6  under ss. 6662 and 6664 of the Internal Revenue Code and the
 7  regulations thereunder.
 8         (3)  SUBSTANTIAL UNDERSTATEMENT OF TAX.--
 9         (a)  For purposes of this section, there is a
10  substantial understatement of tax for any taxable year if the
11  amount of the understatement for the taxable year exceeds the
12  greater of:
13         1.  Ten percent of the tax required to be shown on the
14  return for the taxable year; or
15         2.  Ten thousand dollars.
16         (b)  For purposes of this section, the term
17  "understatement" means the excess of the amount of tax
18  required to be shown on the return for the taxable year, over
19  the amount of tax imposed which is shown on the return.
20         (c)  The amount of the understatement under paragraph
21  (b) shall be reduced by that portion of the understatement
22  which is attributable to any item if the relevant facts
23  affecting the item's tax treatment are adequately disclosed in
24  the return or in a statement attached to the return and there
25  is a reasonable basis for the tax treatment of such item by
26  the taxpayer.
27         (4)  DISCLOSURE.--A penalty for negligence or disregard
28  of statutes or rules may not be imposed on any portion of an
29  underpayment which is attributable to a ruling provided to the
30  taxpayer by the department under s. 213.22 if the position is
31  adequately disclosed in accordance with this section and, in
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 1  the case of a position contrary to a statute or rule, the
 2  position represents a good faith challenge to the validity of
 3  the statute or rule. However, an exception under this section
 4  does not apply in the case of a position that does not have a
 5  reasonable basis or if the taxpayer fails to keep or furnish
 6  adequate books and records or fails to substantiate items
 7  properly. Disclosure is adequate for purposes of this section
 8  if it is made in accordance with rules adopted by the
 9  department and if it is made on a properly completed form as
10  prescribed by the department. If such a form is not
11  prescribed, disclosure is adequate if it is made on a properly
12  completed Internal Revenue Service Form 8275 or Form 8275-R.
13  In addition, the statute, rule, or ruling provision must be
14  adequately identified on the separate form, as appropriate.
15         (5)  CARRYFORWARDS.--The penalty for negligence or
16  disregard of statutes or rules applies to any portion of a
17  deficiency for the year to which the loss, deduction, or
18  credit is carried, which portion is attributable to negligence
19  or disregard of statutes or rules in the year in which the
20  carryforward of the loss, deduction, or credit is applied.
21         (6)  RULES.--The Department of Revenue may adopt rules
22  to administer this section, including rules establishing forms
23  and procedures, as well as methods of disclosure.
24         Section 34.  Section 32 of this act applies to tax
25  years ending after December 31, 2007.
26         Section 35.  Effective January 1, 2008, and applicable
27  to tax years ending after December 31, 2007, section 220.803,
28  Florida Statutes, is amended to read:
29         220.803  Penalties; failure to pay tax.--
30         (1)  If any part of a deficiency is due to negligence
31  or intentional disregard of rules and regulations prescribed
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 1  by or under this chapter, but without intent to defraud, there
 2  shall be added to the tax as a penalty an amount equal to 10
 3  percent of the deficiency.
 4         (1)(2)  If any part of a deficiency is due to fraud,
 5  there shall be added to the tax as a penalty, in lieu of the
 6  penalty under s. 220.802 subsection (1), an amount equal to
 7  100 percent of the deficiency.
 8         (2)(3)  For purposes of this section, the amount shown
 9  as tax by the taxpayer upon a return shall be taken into
10  account in determining the amount of the deficiency only if
11  such return was filed on or before the last day prescribed by
12  law for the filing of such return, including any extensions of
13  the time for such filing.
14         Section 36.  Paragraph (d) of subsection (1) of section
15  443.1216, Florida Statutes, is amended to read:
16         443.1216  Employment.--Employment, as defined in s.
17  443.036, is subject to this chapter under the following
18  conditions:
19         (1)
20         (d)  If two or more related corporations concurrently
21  employ the same individual and compensate the individual
22  through a common paymaster, each related corporation is
23  considered to have paid wages to the individual only in the
24  amounts actually disbursed by that corporation to the
25  individual and is not considered to have paid the wages
26  actually disbursed to the individual by another of the related
27  corporations. The Agency for Workforce Innovation and the
28  state agency providing unemployment tax collection services
29  may adopt rules necessary to administer this paragraph.
30         1.  As used in this paragraph, the term "common
31  paymaster" means a member of a group of related corporations
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 1  that disburses wages to concurrent employees on behalf of the
 2  related corporations and that is responsible for keeping
 3  payroll records for those concurrent employees. A common
 4  paymaster is not required to disburse wages to all the
 5  employees of the related corporations; however, this
 6  subparagraph does not apply to wages of concurrent employees
 7  which are not disbursed through a common paymaster. A common
 8  paymaster must pay concurrently employed individuals under
 9  this subparagraph by one combined paycheck.
10         2.  As used in this paragraph, the term "concurrent
11  employment" means the existence of simultaneous employment
12  relationships between an individual and related corporations.
13  Those relationships require the performance of services by the
14  employee for the benefit of the related corporations,
15  including the common paymaster, in exchange for wages that, if
16  deductible for the purposes of federal income tax, are
17  deductible by the related corporations.
18         3.  Corporations are considered related corporations
19  for an entire calendar quarter if they satisfy any one of the
20  following tests at any time during the calendar quarter:
21         a.  The corporations are members of a "controlled group
22  of corporations" as defined in s. 1563 of the Internal Revenue
23  Code of 1986 or would be members if paragraph 1563(a)(4) and
24  subsection 1563(b) did not apply.
25         b.  In the case of a corporation that does not issue
26  stock, at least 50 percent of the members of the board of
27  directors or other governing body of one corporation are
28  members of the board of directors or other governing body of
29  the other corporation or the holders of at least 50 percent of
30  the voting power to select those members are concurrently the
31  
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 1  holders of at least 50 percent of the voting power to select
 2  those members of the other corporation.
 3         c.  At least 50 percent of the officers of one
 4  corporation are concurrently officers of the other
 5  corporation.
 6         d.  At least 30 percent of the employees of one
 7  corporation are concurrently employees of the other
 8  corporation.
 9         4.  The common paymaster must report to the tax
10  collection service provider, as part of the unemployment
11  compensation quarterly tax and wage report, the state
12  unemployment compensation account number and name of each
13  related corporation for which concurrent employees are being
14  reported. Failure to timely report this information shall
15  result in the related corporations being denied common
16  paymaster status for that calendar quarter.
17         5.  The common paymaster also has the primary
18  responsibility for remitting contributions due under this
19  chapter for the wages it disburses as the common paymaster.
20  The common paymaster must compute these contributions as
21  though it were the sole employer of the concurrently employed
22  individuals. If a common paymaster fails to timely remit these
23  contributions or reports, in whole or in part, the common
24  paymaster remains liable for the full amount of the unpaid
25  portion of these contributions. In addition, each of the other
26  related corporations using the common paymaster is jointly and
27  severally liable for its appropriate share of these
28  contributions. Each related corporation's share equals the
29  greater of:
30         a.  The liability of the common paymaster under this
31  chapter, after taking into account any contributions made.
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 1         b.  The liability under this chapter which,
 2  notwithstanding this section, would have existed for the wages
 3  from the other related corporations, reduced by an allocable
 4  portion of any contributions previously paid by the common
 5  paymaster for those wages.
 6         Section 37.  Subsection (2) of section 443.1316,
 7  Florida Statutes, is amended to read:
 8         443.1316  Unemployment tax collection services;
 9  interagency agreement.--
10         (2)(a)  The Department of Revenue is considered to be
11  administering a revenue law of this state when the department
12  implements this chapter, or otherwise provides unemployment
13  tax collection services, under contract with the Agency for
14  Workforce Innovation through the interagency agreement.
15         (b)  Sections 213.015(1),(2),(3),(5),(6),(7),(9)-(21),
16  213.018, 213.025, 213.051, 213.053, 213.0535, 213.055, 213.06,
17  213.071, 213.10, 213.21(4), 213.2201, 213.23, 213.24, 213.25,
18  213.24(2), 213.27, 213.28, 213.285, 213.32, 213.34(1),(3), and
19  (4), 213.37, 213.50, 213.67, 213.69, 213.73, 213.733, 213.74,
20  and 213.757 apply to the collection of unemployment
21  contributions and reimbursements by the Department of Revenue
22  unless prohibited by federal law.
23         (c)  The Department of Revenue may charge no more than
24  10 percent of the total cost of the interagency agreement for
25  the overhead or indirect costs, or for any other costs not
26  required for the payment of the direct costs, of providing
27  unemployment tax collection services.
28         Section 38.  Subsection (1) of section 443.141, Florida
29  Statutes, is amended to read:
30         443.141  Collection of contributions and
31  reimbursements.--
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 1         (1)  PAST DUE CONTRIBUTIONS; ERRONEOUS, INCOMPLETE, OR
 2  INSUFFICIENT REPORTS; AND REIMBURSEMENTS.--
 3         (a)  Interest.--Contributions or reimbursements unpaid
 4  on the date due shall bear interest at the rate of 1 percent
 5  per month from and after that date until payment plus accrued
 6  interest is received by the tax collection service provider,
 7  unless the service provider finds that the employing unit has
 8  or had good reason for failure to pay the contributions or
 9  reimbursements when due. Interest collected under this
10  subsection must be paid into the Special Employment Security
11  Administration Trust Fund.
12         (b)  Penalty for delinquent reports.--
13         1.  An employing unit that fails to file any report
14  required by the Agency for Workforce Innovation or its tax
15  collection service provider, in accordance with rules for
16  administering this chapter, shall pay to the tax collection
17  service provider for each delinquent report the sum of $25 for
18  each 30 days or fraction thereof that the employing unit is
19  delinquent, unless the agency or its service provider,
20  whichever required the report, finds that the employing unit
21  has or had good reason for failure to file the report. The
22  agency or its service provider may assess penalties only
23  through the date of the issuance of the final assessment
24  notice. However, additional penalties accrue if the delinquent
25  report is subsequently filed.
26         2.  Sums collected as penalties under subparagraph 1.
27  must be deposited in the Special Employment Security
28  Administration Trust Fund.
29         3.  The penalty and interest for a delinquent report
30  may be waived when the penalty or interest is inequitable.
31  
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 1         (c)  Penalty for erroneous, incomplete, or insufficient
 2  reports.--
 3         1.  In the case where an erroneous, incomplete, or
 4  insufficient tax or wage report is made, a penalty in the
 5  amount of $50 or 10 percent of the tax finally determined to
 6  be due, whichever is greater, shall be added to the amount of
 7  tax, penalty, and interest otherwise due. Penalties collected
 8  under this subparagraph shall be paid into the Special
 9  Employment Security Administration Trust Fund.
10         2.  As used in this chapter, the phrase "erroneous,
11  incomplete, or insufficient tax or wage report" means a report
12  that is lacking uniformity, completeness, or arrangement and
13  that the physical handling, verification, or review of the
14  report may not be readily accomplished. The phrase includes,
15  but is not limited to, missing wage items, an illegible wage
16  report, a wage report that is not in a format approved by the
17  service provider, a report that does not contain all required
18  social security numbers, a report that contains erroneous
19  social security numbers, a report that omits the last name of
20  one or more employees, or a report in which the gross wages do
21  not equal the total of the individuals' wages.
22         (d)(c)  Application of partial payments.--When a
23  delinquency exists in the employment record of an employer not
24  in bankruptcy, a partial payment less than the total
25  delinquency shall be applied to the employment record as the
26  payor directs. In the absence of specific direction, the
27  partial payment shall be applied to the payor's employment
28  record as prescribed in the rules of the Agency for Workforce
29  Innovation or the state agency providing tax collection
30  services.
31  
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 1         Section 39.  Effective January 1, 2008, subsection (1)
 2  of section 443.163, Florida Statutes, is amended to read:
 3         443.163  Electronic reporting and remitting of
 4  contributions and reimbursements.--
 5         (1)  An employer may file any report and remit any
 6  contributions or reimbursements required under this chapter by
 7  electronic means. The Agency for Workforce Innovation or the
 8  state agency providing unemployment tax collection services
 9  shall adopt rules prescribing the format and instructions
10  necessary for electronically filing reports and remitting
11  contributions and reimbursements to ensure a full collection
12  of contributions and reimbursements due. The acceptable method
13  of transfer, the method, form, and content of the electronic
14  means, and the method, if any, by which the employer will be
15  provided with an acknowledgment shall be prescribed by the
16  Agency for Workforce Innovation or its tax collection service
17  provider. However, any employer who employed 10 or more
18  employees in any quarter during the preceding state fiscal
19  year must file the Employers Quarterly Reports (UCT-6) for the
20  current calendar year and remit the contributions and
21  reimbursements due by electronic means approved by the tax
22  collection service provider. A person who prepared and
23  reported for 10 100 or more employers in any quarter during
24  the preceding state fiscal year must file the Employers
25  Quarterly Reports (UCT-6) for each calendar quarter in the
26  current calendar year, beginning with reports due for the
27  second calendar quarter of 2003, by electronic means approved
28  by the tax collection service provider.
29         Section 40.  Subsection (3) is added to section
30  624.511, Florida Statutes, to read:
31         624.511  Tax statement; overpayments.--
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 1         (3)(a)  If it appears, upon examination of an insurance
 2  premium tax return made under this chapter, that an amount of
 3  insurance premium tax has been paid in excess of the amount
 4  due, the Department of Revenue may refund the amount of the
 5  overpayment to the taxpayer by a warrant of the Chief
 6  Financial Officer. The Department of Revenue may refund the
 7  overpayment without regard to whether the taxpayer has filed a
 8  written claim for a refund; however, the Department of Revenue
 9  may request that the taxpayer file a statement affirming that
10  the taxpayer made the overpayment.
11         (b)  Notwithstanding paragraph (a), a refund of the
12  insurance premium tax may not be made, and a taxpayer is not
13  entitled to bring an action for a refund of the insurance
14  premium tax, after the period specified in s. 215.26(2) has
15  elapsed.
16         (c)  If a refund issued by the Department of Revenue
17  under this subsection is found to exceed the amount of refund
18  legally due to the taxpayer, the provisions of s. 624.5092
19  concerning penalties and interest do not apply if the taxpayer
20  reimburses the department for any overpayment within 60 days
21  after the taxpayer is notified that the overpayment was made.
22         Section 41.  Subsections (4) and (5) are added to
23  section 832.062, Florida Statutes, to read:
24         832.062  Prosecution for worthless checks, drafts,
25  debit card orders, or electronic funds transfers made to pay
26  any tax or associated amount administered by the Department of
27  Revenue.--
28         (4)(a)  In any prosecution or action under this
29  section, the making, drawing, uttering, or delivery of a
30  check, draft, order; the making, sending, instructing,
31  ordering, or initiating of any electronic funds transfer; or
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 1  causing the making, sending, instructing, ordering, or
 2  initiating of any electronic transfer payment, any of which
 3  are refused by the drawee because of lack of funds or credit,
 4  is prima facie evidence of intent to defraud or knowledge of
 5  insufficient funds in, or credit with, such bank, banking
 6  institution, trust company, or other depository, unless the
 7  maker, drawer, sender, instructor, orderer, or initiator, or
 8  someone for him or her, has paid the holder thereof the amount
 9  due thereon, together with a service charge, which may not
10  exceed the service fees authorized under s. 832.08(5), or an
11  amount of up to 5 percent of the face amount of the check or
12  the amount of the electronic funds transfer, whichever is
13  greater, within 15 days after written notice has been sent to
14  the address printed on the check, or given or on file at the
15  time of issuance, that such check, draft, order, or electronic
16  funds transfer has not been paid to the holder thereof, and
17  has paid the bank fees incurred by the holder. In the event of
18  legal action for recovery, the maker, drawer, sender,
19  instructor, orderer, or initiator may be additionally liable
20  for court costs and reasonable attorney's fees. Notice mailed
21  by certified or registered mail that is evidenced by return
22  receipt, or by first-class mail that is evidenced by an
23  affidavit of service of mail, to the address printed on the
24  check or given or on file at the time of issuance shall be
25  deemed sufficient and equivalent to notice having been
26  received by the maker, drawer, sender, instructor, orderer, or
27  initiator, whether such notice is returned undelivered or not.
28  The form of the notice shall be substantially as follows:
29  
30         "You are hereby notified that a check or
31         electronic funds transfer, numbered _____, in
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 1         the face amount of $_____, issued or initiated
 2         by you on (date) , drawn upon  (name of bank) ,
 3         and payable to _____, has been dishonored.
 4         Pursuant to Florida law, you have 15 days
 5         following the date of this notice to tender
 6         payment of the full amount of such check or
 7         electronic funds transfer plus a service charge
 8         of $25, if the face value does not exceed $50;
 9         $30, if the face value exceeds $50 but does not
10         exceed $300; $40, if the face value exceeds
11         $300; or an amount of up to 5 percent of the
12         face amount of the check, whichever is greater,
13         the total amount due being $_____ and _____
14         cents. Unless this amount is paid in full
15         within the time specified above, the holder of
16         such check or electronic funds transfer may
17         turn over the dishonored check or electronic
18         funds transfer and all other available
19         information relating to this incident to the
20         state attorney for criminal prosecution. You
21         may be additionally liable in a civil action
22         for triple the amount of the check or
23         electronic funds transfer, but in no case less
24         than $50, together with the amount of the check
25         or electronic funds transfer, a service charge,
26         court costs, reasonable attorney's fees, and
27         incurred bank fees, as provided in s. 68.065,
28         Florida Statutes."
29  
30  Subsequent persons receiving a check, draft, order, or
31  electronic funds transfer from the original payee or a
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 1  successor endorsee have the same rights that the original
 2  payee has against the maker of the instrument if the
 3  subsequent persons give notice in a substantially similar form
 4  to that provided above. Subsequent persons providing such
 5  notice are immune from civil liability for the giving of such
 6  notice and for proceeding under the forms of such notice so
 7  long as the maker of the instrument has the same defenses
 8  against these subsequent persons as against the original
 9  payee. However, the remedies available under this section may
10  be exercised only by one party in interest.
11         (b)  When a check, draft, order, or electronic funds
12  transfer is drawn on a bank in which the maker, drawer,
13  sender, instructor, orderer, or initiator has no account or a
14  closed account, it shall be presumed that the check, draft, or
15  order was issued, or the electronic funds transfer was
16  initiated, with intent to defraud, and the notice requirement
17  set forth in this section shall be waived.
18         (5)(a)  In any prosecution or action under this
19  section, a check, draft, order, or electronic funds transfer
20  for which the information required in paragraph (b) is
21  available at the time of issuance constitutes prima facie
22  evidence of the identity of the person issuing the check,
23  draft, order, or electronic funds transfer and that such
24  person is authorized to draw upon the named account.
25         (b)  To establish this prima facie evidence:
26         1.  If a check or electronic funds transfer is received
27  by the Department of Revenue through the mail or by delivery
28  to a representative of the Department of Revenue or by
29  electronic means, the prima facie evidence referred to in
30  paragraph (a) may be established by presenting the original
31  tax return, certificate, license, application for certificate
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 1  or license, enrollment and authorization for the e-services
 2  program, or other document relating to amounts owed by that
 3  person or taxpayer which the check or electronic funds
 4  transfer purports to pay for, bearing the signature of the
 5  person who signed the check or electronic signature of the
 6  person who initiated the electronic funds transfer, or by
 7  presenting a copy of the information required in subparagraph
 8  2. which is on file with the accepter of the check or
 9  electronic funds transfer together with the signature or
10  electronic signature of the person presenting the check or
11  initiating the electronic funds transfer. The use of taxpayer
12  information for purposes of establishing the identity of a
13  person under this paragraph shall be deemed a use of such
14  information for official purposes.
15         2.  The person accepting such check or electronic funds
16  transfer must obtain the following information regarding the
17  identity of the person presenting the check: the presenter's
18  or initiator's full name, residence address, home telephone
19  number, business telephone number, place of employment,
20  gender, date of birth, and height.
21         Section 42.  Except as otherwise expressly provided in
22  this act, this act shall take effect July 1, 2007.
23  
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 1            *****************************************
 2                          SENATE SUMMARY
 3    Revises various provisions governing the collection and
      enforcement of the tax laws by the Department of Revenue.
 4    Authorizes the department to issue temporary fuel
      licenses and temporary pollutant tax licenses during a
 5    declared state of emergency or disaster. Revises the
      requirements for calculating the sales tax on vending
 6    machines. Authorizes the department to transfer tax
      liability to certain additional entities upon the
 7    transfer of assets. Authorizes the department to enter
      into agreements with financial institutions to operate a
 8    data match system for collecting tax warrants. Provides
      for the integration of the department's enforcement
 9    authority. Provides for the department to freeze the
      assets of a delinquent taxpayer. Revises the requirements
10    for electronically remitting taxes and unemployment
      contributions and reimbursements. Provides for
11    establishing prima facie evidence of intent to defraud
      with respect to an electronic funds transfer that lacks
12    sufficient funds. (See bill for details.)
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