Florida Senate - 2024                                    SB 1030
       
       
        
       By Senator Rodriguez
       
       
       
       
       
       40-00867B-24                                          20241030__
    1                        A bill to be entitled                      
    2         An act relating to taxation; amending s. 206.9931,
    3         F.S.; deleting a registration fee for certain parties;
    4         amending s. 212.031, F.S.; authorizing a county or
    5         school board to exclude rent or license fees from the
    6         discretionary sales surtaxes imposed, under certain
    7         circumstances; requiring that the exclusion be
    8         approved by a majority vote of the board of county
    9         commissioners or the school board; providing that the
   10         exclusion is not required to be approved by
   11         referendum; requiring that the exclusion be initiated
   12         on a specified date; requiring the county or school
   13         board to notify the Department of Revenue by a
   14         specified date for the exclusion to take effect;
   15         amending s. 212.05, F.S.; making technical changes;
   16         specifying the application of an exemption for sales
   17         taxes for certain purchasers of boats and aircraft;
   18         amending s. 212.054, F.S.; specifying that certain
   19         purchases are considered a single item for purposes of
   20         discretionary sales surtax; specifying that certain
   21         property sales are deemed to occur in the county where
   22         the purchaser resides, as identified on specified
   23         documents; amending s. 213.21, F.S.; authorizing the
   24         department to consider requests to settle or
   25         compromise certain liabilities after certain time
   26         periods have expired, in certain circumstances;
   27         providing a limitation; providing that certain
   28         department decisions are not subject to review;
   29         amending s. 213.67, F.S.; authorizing certain parties
   30         to include additional specified amounts in a
   31         garnishment levy notice; revising methods for delivery
   32         of levy notices; amending s. 220.222, F.S.; revising
   33         the payment amount for purposes of determining a
   34         taxpayer’s compliance with a provision regarding
   35         underpayment of taxes owed; authorizing the department
   36         to adopt emergency rules; providing an effective date.
   37          
   38  Be It Enacted by the Legislature of the State of Florida:
   39  
   40         Section 1. Subsection (1) of section 206.9931, Florida
   41  Statutes, is amended to read:
   42         206.9931 Administrative provisions.—
   43         (1) Any person producing in, importing into, or causing to
   44  be imported into this state taxable pollutants for sale, use, or
   45  otherwise and who is not registered or licensed pursuant to
   46  other parts of this chapter is hereby required to register and
   47  become licensed for the purposes of this part. Such person shall
   48  register as either a producer or importer of pollutants and
   49  shall be subject to all applicable registration and licensing
   50  provisions of this chapter, as if fully set out in this part and
   51  made expressly applicable to the taxes imposed herein,
   52  including, but not limited to, ss. 206.02-206.025, 206.03,
   53  206.04, and 206.05. For the purposes of this section,
   54  registrations required exclusively for this part shall be made
   55  within 90 days of July 1, 1986, for existing businesses, or
   56  before prior to the first production or importation of
   57  pollutants for businesses created after July 1, 1986. The fee
   58  for registration shall be $30. Failure to timely register is a
   59  misdemeanor of the first degree, punishable as provided in s.
   60  775.082 or s. 775.083.
   61         Section 2.  Subsection (10) is added to section 212.031,
   62  Florida Statutes, to read:
   63         212.031 Tax on rental or license fee for use of real
   64  property.—
   65         (10)Notwithstanding s. 212.054, a county or school board
   66  imposing a discretionary sales surtax under s. 212.055 may
   67  exclude the total rent or license fee charged under this section
   68  from any discretionary sales surtax levied by such county or
   69  school board.
   70         (a)The exclusion must be approved by a majority vote of
   71  the members of the board of county commissioners or school board
   72  currently imposing the discretionary sales surtax. The exclusion
   73  is not required to be approved by referendum.
   74         (b)The exclusion must be initiated on January 1 of the
   75  year following approval. The county or school board must notify
   76  the department by September 1 for the exclusion to take effect
   77  on the following January 1.
   78         Section 3. Paragraph (a) of subsection (1) of section
   79  212.05, Florida Statutes, is amended to read:
   80         212.05 Sales, storage, use tax.—It is hereby declared to be
   81  the legislative intent that every person is exercising a taxable
   82  privilege who engages in the business of selling tangible
   83  personal property at retail in this state, including the
   84  business of making or facilitating remote sales; who rents or
   85  furnishes any of the things or services taxable under this
   86  chapter; or who stores for use or consumption in this state any
   87  item or article of tangible personal property as defined herein
   88  and who leases or rents such property within the state.
   89         (1) For the exercise of such privilege, a tax is levied on
   90  each taxable transaction or incident, which tax is due and
   91  payable as follows:
   92         (a)1.a. At the rate of 6 percent of the sales price of each
   93  item or article of tangible personal property when sold at
   94  retail in this state, computed on each taxable sale for the
   95  purpose of remitting the amount of tax due the state, and
   96  including each and every retail sale.
   97         b. Each occasional or isolated sale of an aircraft, boat,
   98  mobile home, or motor vehicle of a class or type which is
   99  required to be registered, licensed, titled, or documented in
  100  this state or by the United States Government shall be subject
  101  to tax at the rate provided in this paragraph. The department
  102  shall by rule adopt any nationally recognized publication for
  103  valuation of used motor vehicles as the reference price list for
  104  any used motor vehicle which is required to be licensed pursuant
  105  to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any
  106  party to an occasional or isolated sale of such a vehicle
  107  reports to the tax collector a sales price which is less than 80
  108  percent of the average loan price for the specified model and
  109  year of such vehicle as listed in the most recent reference
  110  price list, the tax levied under this paragraph shall be
  111  computed by the department on such average loan price unless the
  112  parties to the sale have provided to the tax collector an
  113  affidavit signed by each party, or other substantial proof,
  114  stating the actual sales price. Any party to such sale who
  115  reports a sales price less than the actual sales price is guilty
  116  of a misdemeanor of the first degree, punishable as provided in
  117  s. 775.082 or s. 775.083. The department shall collect or
  118  attempt to collect from such party any delinquent sales taxes.
  119  In addition, such party shall pay any tax due and any penalty
  120  and interest assessed plus a penalty equal to twice the amount
  121  of the additional tax owed. Notwithstanding any other provision
  122  of law, the Department of Revenue may waive or compromise any
  123  penalty imposed pursuant to this subparagraph.
  124         2. This paragraph does not apply to the sale of a boat or
  125  aircraft by or through a registered dealer under this chapter to
  126  a purchaser who, at the time of taking delivery, is a
  127  nonresident of this state, does not make his or her permanent
  128  place of abode in this state, and is not engaged in carrying on
  129  in this state any employment, trade, business, or profession in
  130  which the boat or aircraft will be used in this state, or is a
  131  corporation none of the officers or directors of which is a
  132  resident of, or makes his or her permanent place of abode in,
  133  this state, or is a noncorporate entity that has no individual
  134  vested with authority to participate in the management,
  135  direction, or control of the entity’s affairs who is a resident
  136  of, or makes his or her permanent abode in, this state. For
  137  purposes of this exemption, either a registered dealer acting on
  138  his or her own behalf as seller, a registered dealer acting as
  139  broker on behalf of a seller, or a registered dealer acting as
  140  broker on behalf of the nonresident purchaser may be deemed to
  141  be the selling dealer. This exemption is shall not be allowed
  142  unless:
  143         a. The nonresident purchaser removes a qualifying boat, as
  144  described in sub-subparagraph f., from this the state within 90
  145  days after the date of purchase or extension, or the nonresident
  146  purchaser removes a nonqualifying boat or an aircraft from this
  147  state within 10 days after the date of purchase or, when the
  148  boat or aircraft is repaired or altered, within 20 days after
  149  completion of the repairs or alterations; or if the aircraft
  150  will be registered in a foreign jurisdiction and:
  151         (I) Application for the aircraft’s registration is properly
  152  filed with a civil airworthiness authority of a foreign
  153  jurisdiction within 10 days after the date of purchase;
  154         (II) The nonresident purchaser removes the aircraft from
  155  this the state to a foreign jurisdiction within 10 days after
  156  the date the aircraft is registered by the applicable foreign
  157  airworthiness authority; and
  158         (III) The aircraft is operated in this the state solely to
  159  remove it from this the state to a foreign jurisdiction.
  160  
  161  For purposes of this sub-subparagraph, the term “foreign
  162  jurisdiction” means any jurisdiction outside of the United
  163  States or any of its territories;
  164         b. The nonresident purchaser, within 90 days after from the
  165  date of departure, provides the department with written proof
  166  that the nonresident purchaser licensed, registered, titled, or
  167  documented the boat or aircraft outside this the state. If such
  168  written proof is unavailable, within 90 days the nonresident
  169  purchaser must shall provide proof that the nonresident
  170  purchaser applied for such license, title, registration, or
  171  documentation. The nonresident purchaser shall forward to the
  172  department proof of title, license, registration, or
  173  documentation upon receipt;
  174         c. The nonresident purchaser, within 30 days after removing
  175  the boat or aircraft from this state Florida, furnishes the
  176  department with proof of removal in the form of receipts for
  177  fuel, dockage, slippage, tie-down, or hangaring from outside of
  178  Florida. The information so provided must clearly and
  179  specifically identify the boat or aircraft;
  180         d. The selling dealer, within 30 days after the date of
  181  sale, provides to the department a copy of the sales invoice,
  182  closing statement, bills of sale, and the original affidavit
  183  signed by the nonresident purchaser affirming attesting that the
  184  nonresident purchaser qualifies for exemption from sales tax
  185  pursuant to this subparagraph and attesting that the nonresident
  186  purchaser will provide the documentation required to
  187  substantiate the exemption claimed under he or she has read the
  188  provisions of this subparagraph section;
  189         e. The seller makes a copy of the affidavit a part of his
  190  or her record for as long as required by s. 213.35; and
  191         f. Unless the nonresident purchaser of a boat of 5 net tons
  192  of admeasurement or larger intends to remove the boat from this
  193  state within 10 days after the date of purchase or when the boat
  194  is repaired or altered, within 20 days after completion of the
  195  repairs or alterations, the nonresident purchaser applies to the
  196  selling dealer for a decal which authorizes 90 days after the
  197  date of purchase for removal of the boat. The nonresident
  198  purchaser of a qualifying boat may apply to the selling dealer
  199  within 60 days after the date of purchase for an extension decal
  200  that authorizes the boat to remain in this state for an
  201  additional 90 days, but not more than a total of 180 days,
  202  before the nonresident purchaser is required to pay the tax
  203  imposed by this chapter. The department is authorized to issue
  204  decals in advance to dealers. The number of decals issued in
  205  advance to a dealer shall be consistent with the volume of the
  206  dealer’s past sales of boats which qualify under this sub
  207  subparagraph. The selling dealer or his or her agent shall mark
  208  and affix the decals to qualifying boats in the manner
  209  prescribed by the department, before delivery of the boat.
  210         (I) The department is hereby authorized to charge dealers a
  211  fee sufficient to recover the costs of decals issued, except the
  212  extension decal shall cost $425.
  213         (II) The proceeds from the sale of decals will be deposited
  214  into the administrative trust fund.
  215         (III) Decals shall display information to identify the boat
  216  as a qualifying boat under this sub-subparagraph, including, but
  217  not limited to, the decal’s date of expiration.
  218         (IV) The department is authorized to require dealers who
  219  purchase decals to file reports with the department and may
  220  prescribe all necessary records by rule. All such records are
  221  subject to inspection by the department.
  222         (V) Any dealer or his or her agent who issues a decal
  223  falsely, fails to affix a decal, mismarks the expiration date of
  224  a decal, or fails to properly account for decals will be
  225  considered prima facie to have committed a fraudulent act to
  226  evade the tax and will be liable for payment of the tax plus a
  227  mandatory penalty of 200 percent of the tax, and shall be liable
  228  for fine and punishment as provided by law for a conviction of a
  229  misdemeanor of the first degree, as provided in s. 775.082 or s.
  230  775.083.
  231         (VI) Any nonresident purchaser of a boat who removes a
  232  decal before permanently removing the boat from this the state,
  233  or defaces, changes, modifies, or alters a decal in a manner
  234  affecting its expiration date before its expiration, or who
  235  causes or allows the same to be done by another, will be
  236  considered prima facie to have committed a fraudulent act to
  237  evade the tax and will be liable for payment of the tax plus a
  238  mandatory penalty of 200 percent of the tax, and shall be liable
  239  for fine and punishment as provided by law for a conviction of a
  240  misdemeanor of the first degree, as provided in s. 775.082 or s.
  241  775.083.
  242         (VII) The department is authorized to adopt rules necessary
  243  to administer and enforce this subparagraph and to publish the
  244  necessary forms and instructions.
  245         (VIII) The department is hereby authorized to adopt
  246  emergency rules pursuant to s. 120.54(4) to administer and
  247  enforce the provisions of this subparagraph.
  248  
  249  If the nonresident purchaser fails to remove the qualifying boat
  250  from this state within the maximum 180 days after purchase or a
  251  nonqualifying boat or an aircraft from this state within 10 days
  252  after purchase or, when the boat or aircraft is repaired or
  253  altered, within 20 days after completion of such repairs or
  254  alterations, or permits the boat or aircraft to return to this
  255  state within 6 months after from the date of departure, except
  256  as provided in s. 212.08(7)(fff), or if the nonresident
  257  purchaser fails to furnish the department with any of the
  258  documentation required by this subparagraph within the
  259  prescribed time period, the nonresident purchaser is shall be
  260  liable for use tax on the cost price of the boat or aircraft
  261  and, in addition thereto, payment of a penalty to the Department
  262  of Revenue equal to the tax payable. This penalty is shall be in
  263  lieu of the penalty imposed by s. 212.12(2). The maximum 180-day
  264  period following the sale of a qualifying boat tax-exempt to a
  265  nonresident may not be tolled for any reason.
  266         Section 4. Paragraph (b) of subsection (2) and paragraph
  267  (a) of subsection (3) of section 212.054, Florida Statutes, are
  268  amended to read:
  269         212.054 Discretionary sales surtax; limitations,
  270  administration, and collection.—
  271         (2)
  272         (b) However:
  273         1. The sales amount above $5,000 on any item of tangible
  274  personal property shall not be subject to the surtax. However,
  275  charges for prepaid calling arrangements, as defined in s.
  276  212.05(1)(e)1.a., shall be subject to the surtax. For purposes
  277  of administering the $5,000 limitation on an item of tangible
  278  personal property:,
  279         a. If two or more taxable items of tangible personal
  280  property are sold to the same purchaser at the same time and,
  281  under generally accepted business practice or industry standards
  282  or usage, are normally sold in bulk or are items that, when
  283  assembled, comprise a working unit or part of a working unit,
  284  such items must be considered a single item for purposes of the
  285  $5,000 limitation when supported by a charge ticket, sales slip,
  286  invoice, or other tangible evidence of a single sale or rental.
  287         b. The sale of a boat and the corresponding boat trailer,
  288  which trailer is identified as a motor vehicle as defined in s.
  289  320.01(1), must be taxed as a single item when sold to the same
  290  purchaser, at the same time, and included in the same invoice.
  291         2. In the case of utility services billed on or after the
  292  effective date of any such surtax, the entire amount of the
  293  charge for utility services shall be subject to the surtax. In
  294  the case of utility services billed after the last day the
  295  surtax is in effect, the entire amount of the charge on said
  296  items shall not be subject to the surtax. “Utility service,” as
  297  used in this section, does not include any communications
  298  services as defined in chapter 202.
  299         3. In the case of written contracts which are signed prior
  300  to the effective date of any such surtax for the construction of
  301  improvements to real property or for remodeling of existing
  302  structures, the surtax shall be paid by the contractor
  303  responsible for the performance of the contract. However, the
  304  contractor may apply for one refund of any such surtax paid on
  305  materials necessary for the completion of the contract. Any
  306  application for refund shall be made no later than 15 months
  307  following initial imposition of the surtax in that county. The
  308  application for refund shall be in the manner prescribed by the
  309  department by rule. A complete application shall include proof
  310  of the written contract and of payment of the surtax. The
  311  application shall contain a sworn statement, signed by the
  312  applicant or its representative, attesting to the validity of
  313  the application. The department shall, within 30 days after
  314  approval of a complete application, certify to the county
  315  information necessary for issuance of a refund to the applicant.
  316  Counties are hereby authorized to issue refunds for this purpose
  317  and shall set aside from the proceeds of the surtax a sum
  318  sufficient to pay any refund lawfully due. Any person who
  319  fraudulently obtains or attempts to obtain a refund pursuant to
  320  this subparagraph, in addition to being liable for repayment of
  321  any refund fraudulently obtained plus a mandatory penalty of 100
  322  percent of the refund, is guilty of a felony of the third
  323  degree, punishable as provided in s. 775.082, s. 775.083, or s.
  324  775.084.
  325         4. In the case of any vessel, railroad, or motor vehicle
  326  common carrier entitled to partial exemption from tax imposed
  327  under this chapter pursuant to s. 212.08(4), (8), or (9), the
  328  basis for imposition of surtax shall be the same as provided in
  329  s. 212.08 and the ratio shall be applied each month to total
  330  purchases in this state of property qualified for proration
  331  which is delivered or sold in the taxing county to establish the
  332  portion used and consumed in intracounty movement and subject to
  333  surtax.
  334         (3) For the purpose of this section, a transaction shall be
  335  deemed to have occurred in a county imposing the surtax when:
  336         (a)1. The sale includes an item of tangible personal
  337  property, a service, or tangible personal property representing
  338  a service, and the item of tangible personal property, the
  339  service, or the tangible personal property representing the
  340  service is delivered within the county. If there is no
  341  reasonable evidence of delivery of a service, the sale of a
  342  service is deemed to occur in the county in which the purchaser
  343  accepts the bill of sale.
  344         2. The sale of any motor vehicle or mobile home of a class
  345  or type which is required to be registered in this state or in
  346  any other state shall be deemed to have occurred only in the
  347  county identified as the residence address of the purchaser on
  348  the registration or title document for such property.
  349         3. The sale of property under sub-subparagraph (2)(b)1.b.
  350  is deemed to occur in the county where the purchaser resides, as
  351  identified on the registration or title documents for such
  352  property.
  353         Section 5. Subsection (11) is added to section 213.21,
  354  Florida Statutes, to read:
  355         213.21 Informal conferences; compromises.—
  356         (11)(a) The department may consider a request to settle or
  357  compromise any tax, interest, penalty, or other liability under
  358  this section after the time to challenge an assessment or a
  359  denial of a refund under s. 72.011 has expired if the taxpayer
  360  demonstrates that the failure to initiate a timely challenge was
  361  due to any of the following:
  362         1. The death or life-threatening injury or illness of:
  363         a. The taxpayer;
  364         b. An immediate family member of the taxpayer; or
  365         c. The responsible party that controlled, managed, or
  366  directed the affected business entity.
  367         2. An act of war or terrorism.
  368         3. A natural disaster, fire, or other catastrophic loss.
  369         (b) The department may not consider a request received more
  370  than 180 days after the time has expired for contesting it under
  371  s. 72.011.
  372         (c) Any decision by the department regarding a taxpayer’s
  373  request to compromise or settle a liability under this
  374  subsection is not subject to review under chapter 120.
  375         Section 6. Subsections (1), (3), and (6) of section 213.67,
  376  Florida Statutes, are amended to read:
  377         213.67 Garnishment.—
  378         (1) If a person is delinquent in the payment of any taxes,
  379  penalties, and interest, costs, surcharges, and fees owed to the
  380  department, the executive director or his or her designee may
  381  give notice of the amount of such delinquency by regular,
  382  certified, or registered mail, by personal service, or by
  383  electronic means, including, but not limited to, facsimile
  384  transmissions, electronic data interchange, or use of the
  385  Internet, to all persons having in their possession or under
  386  their control any credits or personal property, exclusive of
  387  wages, belonging to the delinquent taxpayer, or owing any debts
  388  to such delinquent taxpayer at the time of receipt by them of
  389  such notice. Thereafter, any person who has been notified may
  390  not transfer or make any other disposition of such credits,
  391  other personal property, or debts until the executive director
  392  or his or her designee consents to a transfer or disposition or
  393  until 60 days after the receipt of such notice. However, the
  394  credits, other personal property, or debts that exceed the
  395  delinquent amount stipulated in the notice are not subject to
  396  this section, wherever held, if the taxpayer does not have a
  397  prior history of tax delinquencies. If during the effective
  398  period of the notice to withhold, any person so notified makes
  399  any transfer or disposition of the property or debts required to
  400  be withheld under this section, he or she is liable to the state
  401  for any indebtedness owed to the department by the person with
  402  respect to whose obligation the notice was given to the extent
  403  of the value of the property or the amount of the debts thus
  404  transferred or paid if, solely by reason of such transfer or
  405  disposition, the state is unable to recover the indebtedness of
  406  the person with respect to whose obligation the notice was
  407  given. If the delinquent taxpayer contests the intended levy in
  408  circuit court or under chapter 120, the notice under this
  409  section remains effective until that final resolution of the
  410  contest. Any financial institution receiving such notice
  411  maintains will maintain a right of setoff for any transaction
  412  involving a debit card occurring on or before the date of
  413  receipt of such notice.
  414         (3) During the last 30 days of the 60-day period set forth
  415  in subsection (1), the executive director or his or her designee
  416  may levy upon such credits, other personal property, or debts.
  417  The levy must be accomplished by delivery of a notice of levy by
  418  certified or registered mail, by personal service, or by
  419  electronic means, including, but not limited to, facsimile
  420  transmission or an electronic data exchange process using a web
  421  interface. Upon receipt of the notice of levy, which the person
  422  possessing the credits, other personal property, or debts must
  423  shall transfer them to the department or pay to the department
  424  the amount owed to the delinquent taxpayer.
  425         (6)(a) Levy may be made under subsection (3) upon credits,
  426  other personal property, or debt of any person with respect to
  427  any unpaid tax, penalties, and interest, costs, surcharges, and
  428  fees authorized by law only after the executive director or his
  429  or her designee has notified such person in writing of the
  430  intention to make such levy.
  431         (b) No less than 30 days before the day of the levy, the
  432  notice of intent to levy required under paragraph (a) must shall
  433  be given in person or sent by certified or registered mail to
  434  the person’s last known address.
  435         (c) The notice required in paragraph (a) must include a
  436  brief statement that sets forth in simple and nontechnical
  437  terms:
  438         1. The provisions of this section relating to levy and sale
  439  of property;
  440         2. The procedures applicable to the levy under this
  441  section;
  442         3. The administrative and judicial appeals available to the
  443  taxpayer with respect to such levy and sale, and the procedures
  444  relating to such appeals; and
  445         4. Any The alternatives, if any, available to taxpayers
  446  which could prevent levy on the property.
  447         Section 7. Paragraph (c) of subsection (2) of section
  448  220.222, Florida Statutes, is amended to read:
  449         220.222 Returns; time and place for filing.—
  450         (2)(c)1. For purposes of this subsection, a taxpayer is not
  451  in compliance with s. 220.32 if the taxpayer underpays the
  452  required payment by more than the greater of $6,000 $2,000 or 30
  453  percent of the tax shown on the return when filed.
  454         2. For the purpose of determining compliance with s. 220.32
  455  as referenced in subparagraph 1., the tax shown on the return
  456  when filed must include the amount of the allowable credits
  457  taken on the return pursuant to s. 220.1875, s. 220.1876, s.
  458  220.1877, or s. 220.1878.
  459         Section 8. The Department of Revenue is authorized, and all
  460  conditions are deemed met, to adopt emergency rules pursuant to
  461  s. 120.54(4), Florida Statutes, for the purpose of implementing
  462  this act. Notwithstanding any other law, emergency rules adopted
  463  pursuant to this section are effective for 6 months after
  464  adoption and may be renewed during the pendency of procedures to
  465  adopt permanent rules addressing the subject of the emergency
  466  rules. This section shall expire July 1, 2025.
  467         Section 9. This act shall take effect July 1, 2024.