HB 5139

1	A bill to be entitled
2	An act relating to administrative collection processing
3	fees for taxpayer noncompliance; amending s. 213.24, F.S.;
4	imposing an administrative collection processing fee for
5	collection events; providing exceptions for extraordinary
6	circumstances; requiring fees collected to be deposited in
7	the General Revenue Fund; providing definitions; expanding
8	the scope of a study on the cost of issuing billings or
9	automated refunds for specified taxes to include the taxes
10	and fees to which the administrative collection processing
11	fee applies; amending s. 213.75, F.S.; revising
12	application of payments; providing for retroactive
13	application; providing an effective date.
14
15	Be It Enacted by the Legislature of the State of Florida:
16
17	Section 1.  Section 213.24, Florida Statutes, is amended to
18	read:
19	213.24  Accrual of penalties and interest on deficiencies;
20	deficiency billing costs.--
21	(1)  If notice and demand is made for the payment of any
22	amount due under laws made applicable to this chapter and if
23	such amount is paid within 30 days after the date of such
24	billing or notice and demand, no additional penalties or
25	interest under this section on the amount so paid shall be
26	imposed for the period after the date of such notice and demand.
27	(2)(a)  Billings for deficiencies or automated refunds of
28	tax, penalty, or interest shall not be issued for any amount
29	less than the actual costs incurred to produce a billing or
30	automated refund.
31	(b)  The cost of issuing billings or automated refunds for
32	any tax or fee enumerated in s. 213.05 or chapter 443 shall be
33	computed in a study performed by the inspector general of the
34	department. The study shall be conducted every 3 years and at
35	such other times as deemed necessary by the inspector general. A
36	minimum billing and automated refund amount shall be established
37	and adjusted in accordance with the results of such study.
38	(c)  Any change in minimum billing or automated refund
39	amounts shall be made effective on July 1 following the
40	completion of the study.
41	(3)(a)  An administrative collection processing fee is
42	hereby imposed to offset payment processing and administrative
43	costs incurred by the state due to late payments of collection
44	events. The department shall collect the administrative
45	collection processing fee from any taxpayer who fails to pay the
46	full amount of tax, penalty, and interest due within 90 days
47	from initial notification of the collection event. The
48	department may waive or reduce the administrative collection
49	processing fee if the taxpayer demonstrates that the failure to
50	pay the full amount due within 90 days from the initial
51	notification was due to extraordinary circumstances. The
52	administrative collection processing fee shall apply to those
53	taxes and fees listed in s. 213.05 and chapter 443.
54	(b)  As used in this subsection:
55	1.  "Collection event" means when a taxpayer fails to:
56	a.  Timely file a complete return;
57	b.  Timely pay the full amount of tax reported on a return;
58	or
59	c.  Timely pay the full amount due resulting from an audit
60	after all appeal rights have expired or the result has been
61	finally determined.
62	2.  "Extraordinary circumstances" means events beyond the
63	control of the taxpayer, including, but not limited to: the
64	taxpayer's death; acts of war or terrorism; natural disaster,
65	fire, or other casualty; or the nonfeasance or misfeasance of
66	the taxpayer's employee or representative responsible for
67	complying with the taxes and fees listed in s. 213.05 and
68	chapter 443. With respect to acts of the taxpayer's employee or
69	representative, the taxpayer must show that the principals of
70	the business lacked actual knowledge of the collection event and
71	any notification of the collection event.
72	(c)  The administrative collection processing fee shall be
73	equal to 10 percent of the total amount of tax, penalty, and
74	interest that remains unpaid after 90 days, or $10 for each
75	collection event, whichever is greater. The administrative
76	collection processing fee shall be imposed in addition to the
77	taxes, fees, penalties, and interest prescribed by law.
78	(d)  Administrative collection processing fees collected
79	pursuant to this subsection shall be deposited into the General
80	Revenue Fund.
81	Section 2.  Section 213.75, Florida Statutes, is amended to
82	read:
83	213.75  Application of payments.--
84	(1)  Except for any payment made pursuant to s. 213.21, or
85	as otherwise specified by the taxpayer at the time he or she
86	makes a payment, whenever any payment is made to the department
87	with respect to any of the revenue laws of this state, such
88	payment shall be applied in priority order as follows:
89	(a)  First, against the accrued interest, if any;
90	(b)  The remaining amount, if any, remaining after the
91	application to interest shall be credited against any accrued
92	penalty; and
93	(c)  The remaining amount, if any, shall be credited
94	against the administrative collection processing fee; and
95	(d)  The remaining amount, if any, remaining after
96	application to interest and penalty shall be credited to any tax
97	due.
98	(2)  If a warrant or lien has been filed and recorded by
99	the department, a payment shall be applied in priority order as
100	follows:
101	(a)  First, against the costs to record of recordation of
102	the warrant or lien, if any;
103	(b)  The remaining amount, if any, shall be credited
104	against the administrative collection processing fee;
105	(c)  The remaining amount, if any, remaining shall be
106	applied to accrued interest;
107	(d)(c)  The remaining amount, if any, remaining after the
108	application to interest shall be credited against any accrued
109	penalty; and
110	(e)(d)  The remaining amount, if any, remaining after
111	application to costs, interest, and penalty shall be credited to
112	any tax due.
113	(3)  If a levy has been made by the department, a payment
114	shall be applied in priority order as follows:
115	(a)  First, against the costs to execute of execution of
116	the levy, if any;
117	(b)  The remaining amount, if any, shall be credited
118	against the administrative collection processing fee;
119	(c)  The remaining amount, if any, remaining shall be
120	applied to accrued interest;
121	(d)(c)  The remaining amount, if any, remaining after the
122	application to interest shall be credited against any accrued
123	penalty; and
124	(e)(d)  The remaining amount, if any, remaining after
125	application to costs, interest, and penalty shall be credited to
126	any tax due.
127	(4)  Any surplus proceeds remaining after the application
128	of subsection (3) shall, upon application and satisfactory proof
129	thereof, be refunded by the Chief Financial Officer to the
130	person or persons legally entitled thereto pursuant to s.
131	215.26.
132	Section 3.  The fee imposed by section 213.24(3), Florida
133	Statutes, shall apply retroactively to any remaining unpaid
134	amount of tax, interest, and penalty due from any collection
135	event occurring prior to the effective date of this act;
136	however, the Department of Revenue may not collect such fee
137	until September 1, 2009, calculated on the amount remaining
138	unpaid on that date.
139	Section 4.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.