HB 1199

1	A bill to be entitled
2	An act relating to the corporate income tax; amending s.
3	220.131, F.S.; conforming provisions to changes made by
4	the act; creating s. 220.153, F.S.; providing for the
5	apportionment of certain taxpayer's adjusted federal
6	income solely by the sales factor provided in s. 220.15,
7	F.S.; providing for eligibility based on the taxpayer's
8	capital expenditures and number of full-time employees;
9	providing an application process; authorizing the
10	Department of Revenue to examine and verify that a
11	taxpayer has correctly apportioned its taxes; authorizing
12	the Office of Tourism, Trade, and Economic Development to
13	approve and revoke approval of an application; providing
14	for the recapture of unpaid taxes, interest, and
15	penalties; authorizing the office and the department to
16	adopt rules; providing an effective date.
17
18	Be It Enacted by the Legislature of the State of Florida:
19
20	Section 1.  Subsection (5) of section 220.131, Florida
21	Statutes, is amended to read:
22	220.131  Adjusted federal income; affiliated groups.-
23	(5)  Each taxpayer shall apportion adjusted federal income
24	under s. 220.15 as a member of an affiliated group which files a
25	consolidated return under this section on the basis of
26	apportionment factors described in s. 220.15. For the purposes
27	of this subsection, each special industry member included in an
28	affiliated group filing a consolidated return hereunder, who
29	which member would otherwise be permitted to use a special
30	method of apportionment under s. 220.151 or s. 220.153, shall
31	construct the numerator of its sales, property, and payroll
32	factors, respectively, by multiplying the denominator of each
33	such factor by the premiums or revenue miles factor ratio
34	otherwise applicable under pursuant to s. 220.151 in the manner
35	prescribed by the department by rule.
36	Section 2.  Section 220.153, Florida Statutes, is created
37	to read:
38	220.153  Apportionment by sales factor.-
39	(1)  APPORTIONMENT OF TAXES; ELIGIBILITY.-A taxpayer, not
40	including a financial organization as defined in s. 220.15(6) or
41	a bank, savings association, international banking facility, or
42	banking organization as defined in s. 220.62, doing business
43	within and without this state, who applies and demonstrates to
44	the Office of Tourism, Trade, and Economic Development that, on
45	or after July 1, 2013, it has made qualified capital
46	expenditures equal to or exceeding $250 million and has
47	maintained the number of full-time employees who were employed
48	by the taxpayer in this state at the time it notified the office
49	of its intent to apply for apportionment pursuant to this
50	section, may apportion its adjusted federal income solely by the
51	sales factor set forth in s. 220.15(5), commencing in the
52	taxable year of such determination. For the purposes of this
53	section, a full-time employee must work an average of at least
54	36 hours per week for an entire year and receive an average
55	weekly wage greater than the lower of the state or local average
56	weekly wages for the taxpayer's industry; however, a full-time
57	employee does not include an employee who is hired to construct
58	improvements to real property.
59	(2)  APPLICATION PROCESS.-
60	(a)  To qualify as a taxpayer who is eligible to apportion
61	its adjusted federal income under this section:
62	1.  The taxpayer must notify the Office of Tourism, Trade,
63	and Economic Development of its intent to submit an application
64	to apportion its adjusted federal income in order to commence
65	the 2-year period for measuring qualified capital expenditures.
66	2.  The application must be submitted within 2 years after
67	notifying the office of the taxpayer's intent to qualify. The
68	application must be made under oath and provide such information
69	as the office reasonably requires by rule for determining the
70	applicant's eligibility to apportion adjusted federal income.
71	The taxpayer is responsible for affirmatively demonstrating to
72	the satisfaction of the office that it meets the eligibility
73	requirements.
74	(b)  The taxpayer notice and application forms shall be
75	established by the office by rule. The office shall acknowledge
76	receipt of the notice and approve or deny the application in
77	writing within 45 days after receipt.
78	(c)  Upon approval, the taxpayer, by the due date for
79	filing its tax return for the taxable year during which its
80	eligibility has been determined, including any extensions
81	thereof, may elect to apportion its adjusted federal income by
82	filing a return for the taxable year using the method provided
83	under this chapter.
84	(d)  Once made, a taxpayer may not revoke the election for
85	4 years, at which time the taxpayer may renew the election by
86	the due date, or extended due date, for filing its tax return by
87	filing a return for the next taxable year using the method
88	provided under this chapter. If the taxpayer does not renew its
89	election, it shall apportion its adjusted federal income
90	pursuant to s. 220.15 and must reapply to apportion its adjusted
91	federal income pursuant to this section.
92	(3)  REVIEW AUTHORITY; RECAPTURE OF TAX.-
93	(a)  In addition to its existing audit authority, the
94	department may perform any financial and technical review and
95	investigation, including examining the accounts, books, and
96	records of the taxpayer as necessary, to verify that the
97	taxpayer's tax return correctly computes and apportions adjusted
98	federal income and to ensure compliance with this chapter.
99	(b)  The Office of Tourism, Trade, and Economic Development
100	may, by order, revoke its decision to grant eligibility for
101	apportionment, and may also order the recalculation of
102	apportionment factors to those applicable under s. 220.15 if, as
103	the result of an audit, investigation, or examination, it
104	determines that information provided by the taxpayer in the
105	application, or in a statement, representation, record, report,
106	plan, or other document provided to the office to become
107	eligible for apportionment, was materially false at the time it
108	was made and that an individual acting on behalf of the taxpayer
109	knew, or should have known, that the information submitted was
110	false. The taxpayer shall pay such additional taxes and interest
111	as may be due pursuant to this chapter computed as the
112	difference between the tax that would have been due under the
113	apportionment formula provided in s. 220.15 for such years and
114	the tax actually paid. In addition, the department shall assess
115	a penalty equal to 100 percent of the additional tax due.
116	(c)  The office shall immediately notify the department of
117	an order affecting a taxpayer's eligibility to apportion tax
118	pursuant to this section. A taxpayer who is liable for past tax
119	must file an amended return with the department, or such other
120	report as the department prescribes by rule, and pay any
121	required tax, interest, and penalty within 60 days after the
122	taxpayer receives notification from the office that the
123	previously approved credits have been revoked. If the revocation
124	is contested, the taxpayer shall file an amended return or other
125	report within 30 days after an order becomes final. A taxpayer
126	who fails to pay the past tax, interest, and penalty by the due
127	date is subject to the penalties provided in s. 220.803.
128	(4)  RULES.-The Office of Tourism, Trade, and Economic
129	Development and the department may adopt rules to administer
130	this section.
131	Section 3.  This act shall take effect July 1, 2011.

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