HB 311

1	A bill to be entitled
2	An act relating to local business taxes; amending s.
3	205.022, F.S.; defining the term "independent contractor";
4	creating s. 205.066, F.S.; exempting an individual
5	engaging in or managing a business in an individual
6	capacity as an employee from requirements related to local
7	business taxes; specifying that an independent contractor
8	is not an employee; prohibiting a local governing
9	authority from holding an exempt employee liable for the
10	failure of a principal or employer to comply with certain
11	obligations related to a local business tax or requiring
12	an exempt employee to take certain actions related to a
13	local business tax; prohibiting a local governing
14	authority from requiring a principal or employer to
15	provide personal or contact information for exempt
16	individuals in order to obtain a local business tax
17	receipt; amending s. 205.194, F.S.; deleting obsolete
18	language; deleting a requirement that the Department of
19	Business and Professional Regulation provide certain
20	professional regulation information to local officials who
21	issue business tax receipts; deleting a provision
22	prohibiting a local official who issues business tax
23	receipts from renewing a license under certain
24	circumstances; providing an effective date.
25
26	Be It Enacted by the Legislature of the State of Florida:
27
28	Section 1.  Subsection (9) is added to section 205.022,
29	Florida Statutes, to read:
30	205.022  Definitions.-When used in this chapter, the
31	following terms and phrases shall have the meanings ascribed to
32	them in this section, except when the context clearly indicates
33	a different meaning:
34	(9)(a)  "Independent contractor" means a person who meets
35	at least four of the following criteria:
36	1.  The independent contractor maintains a separate
37	business with his or her own work facility, truck, equipment,
38	materials, or similar accommodations;
39	2.  The independent contractor holds or has applied for a
40	federal employer identification number, unless the independent
41	contractor is a sole proprietor who is not required to obtain a
42	federal employer identification number under state or federal
43	regulations;
44	3.  The independent contractor receives compensation for
45	services rendered or work performed and such compensation is
46	paid to a business rather than to an individual;
47	4.  The independent contractor holds one or more bank
48	accounts in the name of the business entity for purposes of
49	paying business expenses or other expenses related to services
50	rendered or work performed for compensation;
51	5.  The independent contractor performs work or is able to
52	perform work for any entity in addition to or besides the
53	employer at his or her own election without the necessity of
54	completing an employment application or process; or
55	6.  The independent contractor receives compensation for
56	work or services rendered on a competitive-bid basis or
57	completion of a task or a set of tasks as defined by a
58	contractual agreement, unless such contractual agreement
59	expressly states that an employment relationship exists.
60	(b)  If four of the criteria listed in paragraph (a) are
61	not met, an individual may still be presumed to be an
62	independent contractor based on full consideration of the nature
63	of the individual situation with regard to satisfying any of the
64	following conditions:
65	1.  The independent contractor performs or agrees to
66	perform specific services or work for a specific amount of money
67	and controls the means of performing the services or work.
68	2.  The independent contractor incurs the principal
69	expenses related to the service or work that he or she performs
70	or agrees to perform.
71	3.  The independent contractor is responsible for the
72	satisfactory completion of the work or services that he or she
73	performs or agrees to perform.
74	4.  The independent contractor receives compensation for
75	work or services performed for a commission or on a per-job
76	basis and not on any other basis.
77	5.  The independent contractor may realize a profit or
78	suffer a loss in connection with performing work or services.
79	6.  The independent contractor has continuing or recurring
80	business liabilities or obligations.
81	7.  The success or failure of the independent contractor's
82	business depends on the relationship of business receipts to
83	expenditures.
84	Section 2.  Section 205.066, Florida Statutes, is created
85	to read:
86	205.066  Exemptions; employees acting in an individual
87	capacity.-
88	(1)  An individual who engages in or manages a business,
89	profession, or occupation in an individual capacity as an
90	employee of another person is not required to apply for an
91	exemption from a local business tax, pay a local business tax,
92	or obtain a local business tax receipt. An individual acting in
93	the capacity of an independent contractor is not an employee.
94	(2)  An employee may not be held liable by any local
95	governing authority for the failure of a principal or employer
96	to apply for an exemption from a local business tax, pay a local
97	business tax, or obtain a local business tax receipt. An
98	individual exempt under this section may not be required by any
99	local governing authority to apply for an exemption from a local
100	business tax, otherwise prove his or her exempt status, or pay
101	any tax or fee related to a local business tax.
102	(3)  A principal or employer who is required to obtain a
103	local business tax receipt may not be required by a local
104	governing authority to provide personal or contact information
105	for individuals exempt under this section in order to obtain a
106	local business tax receipt.
107	Section 3.  Section 205.194, Florida Statutes, is amended
108	to read:
109	205.194  Prohibition of local business tax receipt without
110	exhibition of state license or registration.-
111	(1)  Any person applying for or renewing a local business
112	tax receipt for the period beginning October 1, 1985, to
113	practice any profession regulated by the Department of Business
114	and Professional Regulation, or any board or commission thereof,
115	must exhibit an active state certificate, registration, or
116	license, or proof of copy of the same, before such local receipt
117	may be issued. Thereafter, only persons applying for the first
118	time for a receipt must exhibit such certification,
119	registration, or license.
120	(2)  The Department of Business and Professional Regulation
121	shall, by August 1 of each year, supply to the local official
122	who issues local business tax receipts a current list of
123	professions it regulates and information regarding those persons
124	for whom receipts should not be renewed due to the suspension,
125	revocation, or inactivation of such person's state license,
126	certificate, or registration. The official who issues local
127	business tax receipts shall not renew such license unless such
128	person can exhibit an active state certificate, registration, or
129	license.
130	(2)(3)  This section shall not apply to s. 489.113, s.
131	489.117, s. 489.119, s. 489.131, s. 489.511, s. 489.513, s.
132	489.521, or s. 489.537.
133	Section 4.  This act shall take effect July 1, 2011.

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