Florida Senate - 2013                                    SB 1832
       
       
       
       By the Committee on Appropriations
       
       
       
       
       576-03235-13                                          20131832__
    1                        A bill to be entitled                      
    2         An act relating to taxation; amending s. 320.04, F.S.;
    3         reducing the service charges that are collected with
    4         an application for the original issuance, duplicate
    5         issuance, or transfer of certain specified
    6         registration certificates; amending s. 320.06, F.S.;
    7         reducing a fee collected for a motor vehicle
    8         registration; amending ss. 320.0804 and 320.08046,
    9         F.S.; reducing a surcharge on a license tax;
   10         reenacting s. 320.0807(4), F.S., relating to special
   11         vehicle license plates for the Governor and federal
   12         and state legislators, to incorporate the amendment
   13         made to s. 320.06, F.S., in a reference thereto;
   14         amending s. 624.509, F.S.; deleting a credit based on
   15         the amount paid in salaries to employees within this
   16         state; amending ss. 624.5091 and 624.51055, F.S.;
   17         revising provisions to conform to changes made by the
   18         act; providing effective dates.
   19  
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Section 320.04, Florida Statutes, is amended to
   23  read:
   24         320.04 Registration service charge.—
   25         (1)(a) There shall be a service charge of $2.50 $5 for each
   26  application which is handled in connection with original
   27  issuance, duplicate issuance, or transfer of any license plate,
   28  mobile home sticker, or validation sticker or with transfer or
   29  duplicate issuance of any registration certificate, which shall
   30  . Of that amount, $2.50 shall be deposited into the General
   31  Revenue Fund, and the remainder shall be retained by the
   32  department or by the tax collector, as the case may be, as other
   33  fees accruing to those offices.
   34         (b) There shall also be a service charge of $1 $3 for the
   35  issuance of each license plate validation sticker, vessel decal,
   36  and mobile home sticker issued from an automated vending
   37  facility or printer dispenser machine, which is payable to the
   38  department, which. Of that amount, $1 shall be used to provide
   39  for automated vending facilities or printer dispenser machines
   40  used to dispense such stickers and decals by each tax
   41  collector’s or license tag agent’s employee. The remaining $2
   42  shall be deposited into the General Revenue Fund.
   43         (c) The tax collector may impose an additional service
   44  charge of not more than 50 cents on any transaction specified in
   45  paragraph (a) or paragraph (b), or on any transaction specified
   46  in s. 319.32(2)(a) or s. 328.48 if such transaction occurs at
   47  any tax collector’s branch office.
   48         Section 2. Section 320.06, Florida Statutes, is amended to
   49  read:
   50         320.06 Registration certificates, license plates, and
   51  validation stickers generally.—
   52         (1)(a) Upon the receipt of an initial application for
   53  registration and payment of the appropriate license tax and
   54  other fees required by law, the department shall assign to the
   55  motor vehicle a registration license number consisting of
   56  letters and numerals or numerals and issue to the owner or
   57  lessee a certificate of registration and one registration
   58  license plate, unless two plates are required for display by s.
   59  320.0706, for each vehicle so registered.
   60         (b) Registration license plates bearing a graphic symbol
   61  and the alphanumeric system of identification shall be issued
   62  for a 10-year period. At the end of that 10-year period, upon
   63  renewal, the plate shall be replaced. The department shall
   64  extend the scheduled license plate replacement date from a 6
   65  year period to a 10-year period. The fee for such replacement is
   66  $28, $2.80 of which shall be paid each year before the plate is
   67  replaced, to be credited towards the next $28 replacement fee.
   68  The fees shall be deposited into the Highway Safety Operating
   69  Trust Fund. A credit or refund may not be given for any prior
   70  years’ payments of such prorated replacement fee if the plate is
   71  replaced or surrendered before the end of the 10-year period,
   72  except that a credit may be given if a registrant is required by
   73  the department to replace a license plate under s.
   74  320.08056(8)(a). With each license plate, a validation sticker
   75  shall be issued showing the owner’s birth month, license plate
   76  number, and the year of expiration or the appropriate renewal
   77  period if the owner is not a natural person. The validation
   78  sticker shall be placed on the upper right corner of the license
   79  plate. Such license plate and validation sticker shall be issued
   80  based on the applicant’s appropriate renewal period. The
   81  registration period is 12 months, the extended registration
   82  period is 24 months, and all expirations occur based on the
   83  applicant’s appropriate registration period. A vehicle with an
   84  apportioned registration shall be issued an annual license plate
   85  and a cab card that denote the declared gross vehicle weight for
   86  each apportioned jurisdiction in which the vehicle is authorized
   87  to operate.
   88         (c) Registration license plates equipped with validation
   89  stickers subject to the registration period are valid for not
   90  more than 12 months and expire at midnight on the last day of
   91  the registration period. A registration license plate equipped
   92  with a validation sticker subject to the extended registration
   93  period is valid for not more than 24 months and expires at
   94  midnight on the last day of the extended registration period.
   95  For each registration period after the one in which the metal
   96  registration license plate is issued, and until the license
   97  plate is required to be replaced, a validation sticker showing
   98  the month and year of expiration shall be issued upon payment of
   99  the proper license tax amount and fees and is valid for not more
  100  than 12 months. For each extended registration period occurring
  101  after the one in which the metal registration license plate is
  102  issued and until the license plate is required to be replaced, a
  103  validation sticker showing the year of expiration shall be
  104  issued upon payment of the proper license tax amount and fees
  105  and is valid for not more than 24 months. When license plates
  106  equipped with validation stickers are issued in any month other
  107  than the owner’s birth month or the designated registration
  108  period for any other motor vehicle, the effective date shall
  109  reflect the birth month or month and the year of renewal.
  110  However, when a license plate or validation sticker is issued
  111  for a period of less than 12 months, the applicant shall pay the
  112  appropriate amount of license tax and the applicable fee under
  113  s. 320.14 in addition to all other fees. Validation stickers
  114  issued for vehicles taxed under s. 320.08(6)(a), for any company
  115  that owns 250 vehicles or more, or for semitrailers taxed under
  116  the provisions of s. 320.08(5)(a), for any company that owns 50
  117  vehicles or more, may be placed on any vehicle in the fleet so
  118  long as the vehicle receiving the validation sticker has the
  119  same owner’s name and address as the vehicle to which the
  120  validation sticker was originally assigned.
  121         (2) The department shall provide the several tax collectors
  122  and license plate agents with the necessary number of validation
  123  stickers.
  124         (3)(a) Registration license plates must be made of metal
  125  specially treated with a retroreflection material, as specified
  126  by the department. The registration license plate is designed to
  127  increase nighttime visibility and legibility and must be at
  128  least 6 inches wide and not less than 12 inches in length,
  129  unless a plate with reduced dimensions is deemed necessary by
  130  the department to accommodate motorcycles, mopeds, or similar
  131  smaller vehicles. Validation stickers must also be treated with
  132  a retroreflection material, must be of such size as specified by
  133  the department, and must adhere to the license plate. The
  134  registration license plate must be imprinted with a combination
  135  of bold letters and numerals or numerals, not to exceed seven
  136  digits, to identify the registration license plate number. The
  137  license plate must be imprinted with the word “Florida” at the
  138  top and the name of the county in which it is sold, the state
  139  motto, or the words “Sunshine State” at the bottom. Apportioned
  140  license plates must have the word “Apportioned” at the bottom
  141  and license plates issued for vehicles taxed under s.
  142  320.08(3)(d), (4)(m) or (n), (5)(b) or (c), or (14) must have
  143  the word “Restricted” at the bottom. License plates issued for
  144  vehicles taxed under s. 320.08(12) must be imprinted with the
  145  word “Florida” at the top and the word “Dealer” at the bottom.
  146  Manufacturer license plates issued for vehicles taxed under s.
  147  320.08(12) must be imprinted with the word “Florida” at the top
  148  and the word “Manufacturer” at the bottom. License plates issued
  149  for vehicles taxed under s. 320.08(5)(d) or (e) must be
  150  imprinted with the word “Wrecker” at the bottom. Any county may,
  151  upon majority vote of the county commission, elect to have the
  152  county name removed from the license plates sold in that county.
  153  The state motto or the words “Sunshine State” shall be printed
  154  in lieu thereof. A license plate issued for a vehicle taxed
  155  under s. 320.08(6) may not be assigned a registration license
  156  number, or be issued with any other distinctive character or
  157  designation, that distinguishes the motor vehicle as a for-hire
  158  motor vehicle.
  159         (b) An additional fee of $.50 $1.50 shall be collected and
  160  deposited into the Highway Safety Operating Trust Fund on each
  161  motor vehicle registration or motor vehicle renewal registration
  162  issued in this state in order for all license plates and
  163  validation stickers to be fully treated with retroreflection
  164  material. Of that amount, $1 shall be deposited into the General
  165  Revenue Fund and 50 cents shall be deposited into the Highway
  166  Safety Operating Trust Fund.
  167         Section 3. Section 320.0804, Florida Statutes, is amended
  168  to read:
  169         320.0804 Surcharge on license tax; transportation trust
  170  fund.—There is hereby levied and imposed on each license tax
  171  imposed under s. 320.08, except those set forth in s.
  172  320.08(11), a surcharge in the amount of $2 $4, which shall be
  173  collected in the same manner as the license tax and. Of this
  174  amount, $2 shall be deposited into the State Transportation
  175  Trust Fund, and $2 shall be deposited into the General Revenue
  176  Fund.
  177         Section 4. Section 320.08046, Florida Statutes, is amended
  178  to read:
  179         320.08046 Surcharge on license tax.—There is levied on each
  180  license tax imposed under s. 320.08, except those set forth in
  181  s. 320.08(11), a surcharge in the amount of $1 $5.50, which
  182  shall be collected in the same manner as the license tax and .
  183  Of the proceeds of each license tax surcharge, $4.50 shall be
  184  deposited into the General Revenue Fund and $1 shall be
  185  deposited into the Grants and Donations Trust Fund in the
  186  Department of Juvenile Justice to fund the juvenile crime
  187  prevention programs and the community juvenile justice
  188  partnership grants program.
  189         Section 5. For the purpose of incorporating the amendment
  190  made by this act to section 320.06, Florida Statutes, in a
  191  reference thereto, subsection (4) of section 320.0807, Florida
  192  Statutes, is reenacted to read:
  193         320.0807 Special license plates for Governor and federal
  194  and state legislators.—
  195         (4) License plates purchased under subsection (1),
  196  subsection (2), or subsection (3) shall be replaced by the
  197  department at no cost, other than the fees required by ss.
  198  320.04 and 320.06(3)(b), when the person to whom the plates have
  199  been issued leaves the elective office with respect to which the
  200  license plates were issued. Within 30 days after leaving office,
  201  the person to whom the license plates have been issued shall
  202  make application to the department for a replacement license
  203  plate. The person may return the prestige license plates to the
  204  department or may retain the plates as souvenirs. Upon receipt
  205  of the replacement license plate, the person may not continue to
  206  display on any vehicle the prestige license plate or plates
  207  issued with respect to his or her former office.
  208         Section 6. Subsections (5), (6), (7), (8), and (9) of
  209  section 624.509, Florida Statutes, are amended to read:
  210         624.509 Premium tax; rate and computation.—
  211         (5)(a)1. There shall be allowed a credit against the net
  212  tax imposed by this section equal to 15 percent of the amount
  213  paid by an insurer in salaries to employees located or based
  214  within this state and who are covered by the provisions of
  215  chapter 443.
  216         2. As an alternative to the credit allowed in subparagraph
  217  1., an affiliated group of corporations which includes at least
  218  one insurance company writing premiums in Florida may elect to
  219  take a credit against the net tax imposed by this section in an
  220  amount that may not exceed 15 percent of the salary of the
  221  employees of the affiliated group of corporations who perform
  222  insurance-related activities, are located or based within this
  223  state, and are covered by chapter 443. For purposes of this
  224  subparagraph, the term “affiliated group of corporations” means
  225  two or more corporations that are entirely owned directly or
  226  indirectly by a single corporation and that constitute an
  227  affiliated group as defined in s. 1504(a) of the Internal
  228  Revenue Code. The amount of credit allowed under this
  229  subparagraph is limited to the combined Florida salary tax
  230  credits allowed for all insurance companies that were members of
  231  the affiliated group of corporations for the tax year ending
  232  December 31, 2002, divided by the combined Florida taxable
  233  premiums written by all insurance companies that were members of
  234  the affiliated group of corporations for the tax year ending
  235  December 31, 2002, multiplied by the combined Florida taxable
  236  premiums of the affiliated group of corporations for the current
  237  year. An affiliated group of corporations electing this
  238  alternative calculation method must make such election on or
  239  before August 1, 2005. The election of this alternative
  240  calculation method is irrevocable and binding upon successors
  241  and assigns of the affiliated group of corporations electing
  242  this alternative. However, if a member of an affiliated group of
  243  corporations acquires or merges with another insurance company
  244  after the date of the irrevocable election, the acquired or
  245  merged company is not entitled to the affiliated group election
  246  and shall only be entitled to calculate the tax credit under
  247  subparagraph 1.
  248  
  249  In no event shall the salary paid to an employee by an
  250  affiliated group of corporations be claimed as a credit by more
  251  than one insurer or be counted more than once in an insurer’s
  252  calculation of the credit as described in subparagraph 1. or
  253  subparagraph 2. Only the portion of an employee’s salary paid
  254  for the performance of insurance-related activities may be
  255  included in the calculation of the premium tax credit in this
  256  subsection.
  257         (b) For purposes of this subsection:
  258         1. The term “salaries” does not include amounts paid as
  259  commissions.
  260         2. The term “employees” does not include independent
  261  contractors or any person whose duties require that the person
  262  hold a valid license under the Florida Insurance Code, except
  263  adjusters, managing general agents, and service representatives,
  264  as defined in s. 626.015.
  265         3. The term “net tax” means the tax imposed by this section
  266  after applying the calculations and credits set forth in
  267  subsection (4).
  268         4. An affiliated group of corporations that created a
  269  service company within its affiliated group on July 30, 2002,
  270  shall allocate the salary of each service company employee
  271  covered by contracts with affiliated group members to the
  272  companies for which the employees perform services. The salary
  273  allocation is based on the amount of time during the tax year
  274  that the individual employee spends performing services or
  275  otherwise working for each company over the total amount of time
  276  the employee spends performing services or otherwise working for
  277  all companies. The total amount of salary allocated to an
  278  insurance company within the affiliated group shall be included
  279  as that insurer’s employee salaries for purposes of this
  280  section.
  281         a. Except as provided in subparagraph (a)2., the term
  282  “affiliated group of corporations” means two or more
  283  corporations that are entirely owned by a single corporation and
  284  that constitute an affiliated group of corporations as defined
  285  in s. 1504(a) of the Internal Revenue Code.
  286         b. The term “service company” means a separate corporation
  287  within the affiliated group of corporations whose employees
  288  provide services to affiliated group members and which are
  289  treated as service company employees for reemployment assistance
  290  or unemployment compensation and common law purposes. The
  291  holding company of an affiliated group may not qualify as a
  292  service company. An insurance company may not qualify as a
  293  service company.
  294         c. If an insurance company fails to substantiate, whether
  295  by means of adequate records or otherwise, its eligibility to
  296  claim the service company exception under this section, or its
  297  salary allocation under this section, no credit shall be
  298  allowed.
  299         5. A service company that is a subsidiary of a mutual
  300  insurance holding company, which mutual insurance holding
  301  company was in existence on or before January 1, 2000, shall
  302  allocate the salary of each service company employee covered by
  303  contracts with members of the mutual insurance holding company
  304  system to the companies for which the employees perform
  305  services. The salary allocation is based on the ratio of the
  306  amount of time during the tax year which the individual employee
  307  spends performing services or otherwise working for each company
  308  to the total amount of time the employee spends performing
  309  services or otherwise working for all companies. The total
  310  amount of salary allocated to an insurance company within the
  311  mutual insurance holding company system shall be included as
  312  that insurer’s employee salaries for purposes of this section.
  313  However, this subparagraph does not apply for any tax year
  314  unless funds sufficient to offset the anticipated salary credits
  315  have been appropriated to the General Revenue Fund prior to the
  316  due date of the final return for that year.
  317         a. The term “mutual insurance holding company system” means
  318  two or more corporations that are subsidiaries of a mutual
  319  insurance holding company and in compliance with part IV of
  320  chapter 628.
  321         b. The term “service company” means a separate corporation
  322  within the mutual insurance holding company system whose
  323  employees provide services to other members of the mutual
  324  insurance holding company system and are treated as service
  325  company employees for reemployment assistance or unemployment
  326  compensation and common-law purposes. The mutual insurance
  327  holding company may not qualify as a service company.
  328         c. If an insurance company fails to substantiate, whether
  329  by means of adequate records or otherwise, its eligibility to
  330  claim the service company exception under this section, or its
  331  salary allocation under this section, no credit shall be
  332  allowed.
  333         (c) The department may adopt rules pursuant to ss.
  334  120.536(1) and 120.54 to administer this subsection.
  335         (5)(6)(a) The total of the credit granted for the taxes
  336  paid by the insurer under chapter 220 and the credit granted by
  337  subsection (5) may not exceed 65 percent of the tax due under
  338  subsection (1) after deducting therefrom the taxes paid by the
  339  insurer under ss. 175.101 and 185.08 and any assessments
  340  pursuant to s. 440.51.
  341         (b) To the extent that any credits granted by subsection
  342  (5) remain as a result of the limitation set forth in paragraph
  343  (a), such excess credits related to salaries and wages of
  344  employees whose place of employment is located within an
  345  enterprise zone created pursuant to chapter 290 may be
  346  transferred, in an aggregate amount not to exceed 25 percent of
  347  such excess salary credits, to any insurer that is a member of
  348  an affiliated group of corporations, as defined in sub
  349  subparagraph (5)(b)4.a., that includes the original insurer
  350  qualifying for the credits under subsection (5). The amount of
  351  such excess credits to be transferred shall be calculated by
  352  multiplying the amount of such excess credits by a fraction, the
  353  numerator of which is the sum of the salaries qualifying for the
  354  credit allowed by subsection (5) of employees whose place of
  355  employment is located in an enterprise zone and the denominator
  356  of which is the sum of the salaries qualifying for the credit
  357  allowed by subsection (5). Any such transferred credits shall be
  358  subject to the same provisions and limitations set forth within
  359  part IV of this chapter. The provisions of this paragraph do not
  360  apply to an affiliated group of corporations that participate in
  361  a common paymaster arrangement as defined in s. 443.1216.
  362         (6)(7) Credits and deductions against the tax imposed by
  363  this section shall be taken in the following order: deductions
  364  for assessments made pursuant to s. 440.51; credits for taxes
  365  paid under ss. 175.101 and 185.08; and credits for income taxes
  366  paid under chapter 220 and the credit allowed under subsection
  367  (5), as these credits are limited by subsection (5) (6); all
  368  other available credits and deductions.
  369         (7)(8) From and after July 1, 1980, the premium tax
  370  authorized by this section shall not be imposed upon receipts of
  371  annuity premiums or considerations paid by holders in this state
  372  if the tax savings derived are credited to the annuity holders.
  373  Upon request by the Department of Revenue, any insurer availing
  374  itself of this provision shall submit to the department evidence
  375  which establishes that the tax savings derived have been
  376  credited to annuity holders. As used in this subsection, the
  377  term “holders” shall be deemed to include employers contributing
  378  to an employee’s pension, annuity, or profit-sharing plan.
  379         (8)(9) As used in this section “insurer” includes any
  380  entity subject to the tax imposed by this section.
  381         Section 7. Subsection (1) of section 624.5091, Florida
  382  Statutes, is amended to read:
  383         624.5091 Retaliatory provision, insurers.—
  384         (1)(a)When by or pursuant to the laws of any other state
  385  or foreign country any taxes, licenses, and other fees, in the
  386  aggregate, and any fines, penalties, deposit requirements, or
  387  other material obligations, prohibitions, or restrictions are or
  388  would be imposed upon Florida insurers or upon the agents or
  389  representatives of such insurers, which are in excess of such
  390  taxes, licenses, and other fees, in the aggregate, or which are
  391  in excess of the fines, penalties, deposit requirements, or
  392  other obligations, prohibitions, or restrictions directly
  393  imposed upon similar insurers, or upon the agents or
  394  representatives of such insurers, of such other state or country
  395  under the statutes of this state, so long as such laws of such
  396  other state or country continue in force or are so applied, the
  397  same taxes, licenses, and other fees, in the aggregate, or
  398  fines, penalties, deposit requirements, or other material
  399  obligations, prohibitions, or restrictions of whatever kind
  400  shall be imposed by the Department of Revenue upon the insurers,
  401  or upon the agents or representatives of such insurers, of such
  402  other state or country doing business or seeking to do business
  403  in this state. In determining the taxes to be imposed under this
  404  section, 80 percent and a portion of the remaining 20 percent as
  405  provided in paragraph (b) of the credit provided by s.
  406  624.509(5), as limited by s. 624.509(6) and further determined
  407  by s. 624.509(7), shall not be taken into consideration.
  408         (b) As used in this subsection, the term “portion of the
  409  remaining 20 percent” shall be calculated by multiplying the
  410  remaining 20 percent by a fraction, the numerator of which is
  411  the sum of the salaries qualifying for the credit allowed by s.
  412  624.509(5) of employees whose place of employment is located in
  413  an enterprise zone created pursuant to chapter 290 and the
  414  denominator of which is the sum of the salaries qualifying for
  415  the credit allowed by s. 624.509(5).
  416         Section 8. Subsection (1) of section 624.51055, Florida
  417  Statutes, is amended to read:
  418         624.51055 Credit for contributions to eligible nonprofit
  419  scholarship-funding organizations.—
  420         (1) There is allowed a credit of 100 percent of an eligible
  421  contribution made to an eligible nonprofit scholarship-funding
  422  organization under s. 1002.395 against any tax due for a taxable
  423  year under s. 624.509(1) after deducting from such tax
  424  deductions for assessments made pursuant to s. 440.51; credits
  425  for taxes paid under ss. 175.101 and 185.08; and credits for
  426  income taxes paid under chapter 220; and the credit allowed
  427  under s. 624.509(5), as such credit is limited by s. 624.509(6)
  428  s. 624.509(5). An insurer claiming a credit against premium tax
  429  liability under this section shall not be required to pay any
  430  additional retaliatory tax levied pursuant to s. 624.5091 as a
  431  result of claiming such credit. Section 624.5091 does not limit
  432  such credit in any manner.
  433         Section 9. Sections 1 through 5 of this act shall take
  434  effect on September 1, 2013, and sections 6 through 8 shall take
  435  effect upon becoming a law and apply to the 2013 insurance
  436  premium tax year.