Florida Senate - 2024 SB 508
By Senator Rodriguez
40-00648-24 2024508__
1 A bill to be entitled
2 An act relating to forwarding agent certificates;
3 amending s. 212.06, F.S.; revising application
4 requirements for forwarding agents when applying to
5 the Department of Revenue for a certain certificate;
6 requiring a forwarding agent that applies for and
7 receives such certificate to notify the department
8 within a specified timeframe under certain
9 circumstances; prohibiting the department from
10 requiring a forwarding agent to resubmit an
11 application during a certain timeframe; requiring the
12 department to include certain information in its
13 online address and jurisdiction database; prohibiting
14 a dealer from collecting certain taxes under certain
15 circumstances; making technical changes; providing an
16 effective date.
17
18 Be It Enacted by the Legislature of the State of Florida:
19
20 Section 1. Paragraph (b) of subsection (5) of section
21 212.06, Florida Statutes, is amended to read:
22 212.06 Sales, storage, use tax; collectible from dealers;
23 “dealer” defined; dealers to collect from purchasers;
24 legislative intent as to scope of tax.—
25 (5)
26 (b)1. As used in this subsection, the term:
27 a. “Certificate” means a Florida Certificate of Forwarding
28 Agent Address.
29 b. “Facilitating” means preparation for or arranging for
30 export.
31 c. “Forwarding agent” means a person or business whose
32 principal business activity is facilitating for compensation the
33 export of property owned by other persons.
34 d. “NAICS” means those classifications contained in the
35 North American Industry Classification System as published in
36 2007 by the Office of Management and Budget, Executive Office of
37 the President.
38 e. “Principal business activity” means the activity from
39 which the person or business derives the highest percentage of
40 its total receipts.
41 2. A forwarding agent engaged in international export may
42 apply to the department for a certificate.
43 3. Each application must include all of the following:
44 a. The designation of an address for the forwarding agent.
45 b. A certification that:
46 (I) The tangible personal property delivered to the
47 designated address for export originates with a United States
48 vendor;
49 (II) The tangible personal property delivered to the
50 designated address for export is irrevocably committed to export
51 out of the United States through a continuous and unbroken
52 exportation process; and
53 (III) The designated address is used exclusively by the
54 forwarding agent for such export.
55 c. A copy of the forwarding agent’s last filed federal
56 income tax return showing the entity’s principal business
57 activity classified under NAICS code 488510, except as provided
58 under subparagraph 4. or subparagraph 5.
59 d. A statement of the total revenues of the forwarding
60 agent.
61 e. A statement of the amount of revenues associated with
62 international export of the forwarding agent.
63 f. A description of all business activity that occurs at
64 the designated address.
65 g. The name and contact information of a designated contact
66 person of the forwarding agent.
67 h. The forwarding agent’s website address.
68 i. Any additional information the department requires by
69 rule to demonstrate eligibility for the certificate, except that
70 if the forwarding agent is registered as a dealer with the
71 department, the department may not require the forwarding agent
72 to submit a Florida Business Tax application with the
73 application for a certificate under this paragraph.
74 j. and A signature attesting to the validity of the
75 information provided.
76 4. An applicant that has not filed a federal return for the
77 preceding tax year under NAICS code 488510 shall provide all of
78 the following:
79 a. A statement of estimated total revenues.
80 b. A statement of estimated revenues associated with
81 international export.
82 c. The NAICS code under which the forwarding agent intends
83 to file a federal return.
84 5. If an applicant does not file a federal return
85 identifying a NAICS code, the applicant must shall provide
86 documentation to support that its principal business activity is
87 that of a forwarding agent and that the applicant is otherwise
88 eligible for the certificate.
89 6. A forwarding agent that applies for and receives a
90 certificate shall register as a dealer with the department. The
91 forwarding agent must notify the department within 30 days if:
92 a. The forwarding agent ceases to do business;
93 b. The forwarding agent moves from the address indicated in
94 its application;
95 c. The forwarding agent’s principal business activity
96 changes to something other than facilitating the international
97 export of property owned by other persons; or
98 d. The certified address is not used for export.
99 7. A forwarding agent must shall remit the tax imposed
100 under this chapter on any tangible personal property shipped to
101 the designated forwarding agent address if no tax was collected
102 and the tangible personal property remained in this state or if
103 delivery to the purchaser or purchaser’s representative occurs
104 in this state. This subparagraph does not prohibit the
105 forwarding agent from collecting such tax from the consumer of
106 the tangible personal property.
107 8. A forwarding agent shall maintain the following records:
108 a. Copies of sales invoices or receipts between the vendor
109 and the consumer when provided by the vendor to the forwarding
110 agent. If sales invoices or receipts are not provided to the
111 forwarding agent, the forwarding agent must maintain export
112 documentation evidencing the value of the purchase consistent
113 with the federal Export Administration Regulations, 15 C.F.R.
114 parts 730-774.
115 b. Copies of federal returns evidencing the forwarding
116 agent’s NAICS principal business activity code.
117 c. Copies of invoices or other documentation evidencing
118 shipment to the forwarding agent.
119 d. Invoices between the forwarding agent and the consumer
120 or other documentation evidencing the ship-to destination
121 outside the United States.
122 e. Invoices for foreign postal or transportation services.
123 f. Bills of lading.
124 g. Any other export documentation.
125
126 Such records must be kept in an electronic format and made
127 available for the department’s review pursuant to subparagraph
128 9. and ss. 212.13 and 213.35.
129 9. Each certificate expires 5 years after the date of
130 issuance, except as specified in this subparagraph. The
131 department may not require the forwarding agent to resubmit an
132 application for a certificate of forwarding agent address during
133 the 5-year period.
134 a. At least 30 days before expiration, a new application
135 must be submitted to renew the certificate, and the application
136 must contain the information required in subparagraph 3. Upon
137 application for renewal, the certificate is subject to the
138 review and reissuance procedures prescribed by this chapter and
139 department rule.
140 b. Each forwarding agent shall update its application
141 information annually or within 30 days after any material
142 change.
143 c. The department shall verify that the forwarding agent is
144 actively engaged in facilitating the international export of
145 tangible personal property.
146 d. The department may suspend or revoke the certificate of
147 any forwarding agent that fails to respond within 30 days to a
148 written request for information regarding its business
149 transactions.
150 10. The department shall provide a list on the department’s
151 website of forwarding agents that have applied for and received
152 a Florida Certificate of Forwarding Agent Address from the
153 department. The list must include a forwarding agent’s entity
154 name, address, and expiration date as provided on the Florida
155 Certificate of Forwarding Agent Address. The department shall
156 indicate in its online address and jurisdiction database whether
157 an address has received a Florida Certificate of Forwarding
158 Agent Address.
159 11. A dealer may not collect the tax imposed under this
160 chapter on tangible personal property shipped to any certified
161 addresses listed accept a copy of the forwarding agent’s
162 certificate or rely on the list of forwarding agents’ names and
163 addresses on the department’s website, regardless of the person
164 purchasing the tangible personal property in lieu of collecting
165 the tax imposed under this chapter when the property is required
166 by terms of the sale to be shipped to the designated address on
167 the certificate. A dealer who accepts a valid copy of a
168 certificate or relies on the list of forwarding agents’ names
169 and addresses on the department’s website in good faith and
170 ships purchased tangible personal property to the address on the
171 certificate is not liable for any tax due on sales made during
172 the effective dates indicated on the certificate.
173 12. The department may revoke a forwarding agent’s
174 certificate for noncompliance with this paragraph. Any person
175 found to fraudulently use the address on the certificate for the
176 purpose of evading tax is subject to the penalties provided in
177 s. 212.085.
178 13. The department may adopt rules to administer this
179 paragraph, including, but not limited to, rules relating to
180 procedures, application and eligibility requirements, and forms.
181 Section 2. This act shall take effect July 1, 2024.