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FL O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to tax administration; amending s. 2
72.011, F.S.; prohibiting taxpayers from submitting 3
certain records in tax proceedings under specified 4
circumstances; amending s. 120.80, F.S.; prohibiting 5
taxpayers from submitting certain records in taxp ayer 6
contest proceedings under certain circumstances; 7
specifying procedures relating to challenges to 8
certain agency statements; amending s. 201.02, F.S.; 9
clarifying existing law that parties in the transfer 10
of real property must establish consideration be fore 11
the transfer of the real property or delivery of 12
related documents; requiring the Department of Revenue 13
to adopt rules; amending s. 202.34, F.S.; authorizing 14
the department to respond to contact initiated by 15
taxpayers to discuss audits; authorizing ta xpayers to 16
provide records and other information; authorizing the 17
department to examine documentation and other 18
information received; authorizing the department to 19
adopt rules; amending ss. 202.36, 206.14, 211.125, 20
212.14, and 220.735, F.S.; creating a pre sumption; 21
authorizing the department to create estimates for 22
purposes of assessment under certain circumstances; 23
amending s. 206.9931, F.S.; deleting obsolete 24
language; amending s. 212.05, F.S.; revising 25
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requirements for an affidavit; amending s. 212.08, 26
F.S.; deleting a tax exemption for building materials 27
used in the rehabilitation of real property located in 28
an enterprise zone; conforming provisions to changes 29
made by the act; amending s. 212.13, F.S.; requiring 30
certain dealers to maintain specified reco rds; 31
providing construction; requiring the department to 32
notify the Division of Alcoholic Beverages and Tobacco 33
and dealers upon dealers' failure to comply with 34
department requests for records; authorizing the 35
department to suspend resale certificates issu ed to 36
dealers under certain circumstances; authorizing 37
dealers to apply for administrative hearings under 38
certain circumstances; authorizing the department to 39
respond to contact initiated by taxpayers to discuss 40
audits; authorizing taxpayers to provide rec ords and 41
other information; authorizing the department to 42
examine documentation and other information received; 43
authorizing the department to adopt rules; amending s. 44
213.051, F.S.; authorizing the department to serve 45
subpoenas on businesses registered wit h the 46
department; amending s. 213.06, F.S.; revising the 47
period in which, and conditions under which, the 48
executive director of the department may adopt 49
emergency rules; providing for an exemption, the 50
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effectiveness, and the renewal of emergency rules; 51
providing construction; amending s. 213.21, F.S.; 52
addressing the statute of limitations for issuing 53
assessments; authorizing a taxpayer's liability to be 54
settled or compromised under certain circumstances; 55
creating a rebuttable presumption; specifying the 56
conditions for the department to consider requests to 57
settle or compromise any tax, interest, penalty, or 58
other liability; providing construction; amending s. 59
213.34, F.S.; revising audit procedures of the 60
department; authorizing the department to adopt rules ; 61
amending s. 213.67, F.S.; authorizing the executive 62
director of the department or his or her designee to 63
include additional daily accrued interest, costs, and 64
fees in a garnishment levy notice; revising methods 65
for delivery of levy notices; amending s. 2 13.345, 66
F.S.; specifying conditions under which a period is 67
tolled during an audit; amending s. 220.42, F.S.; 68
deleting obsolete language; amending s. 443.131, F.S.; 69
excluding certain benefit charges from the employer 70
reemployment assistance contribution ra te calculation; 71
amending s. 443.171, F.S.; requiring the department 72
and its tax collection service provider to comply with 73
requirements of the federal Treasury Offset Program; 74
authorizing the department or the tax collection 75
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service provider to adopt rules ; amending s. 624.515, 76
F.S.; requiring the department to make available 77
percentages of fire insurance; specifying requirements 78
for insurers choosing not to use percentages of fire 79
insurance calculated by the department; amending ss. 80
220.183, 288.0001, 290. 0056, 290.007, 377.809, 81
624.5105, and 1011.94, F.S.; conforming provisions and 82
cross-references to changes made by the act; providing 83
effective dates. 84
85
Be It Enacted by the Legislature of the State of Florida: 86
87
Section 1. Paragraph (c) is added to subsection (1) of 88
section 72.011, Florida Statutes, to read: 89
72.011 Jurisdiction of circuit courts in specific tax 90
matters; administrative hearings and appeals; time for 91
commencing action; parties; deposits. — 92
(1) 93
(c) A taxpayer may not submit records pertaining to an 94
assessment or refund claim as evidence in any proceeding under 95
this section if those records were available to, or required to 96
be kept by, the taxpayer and were not timely provided to the 97
Department of Revenue during the audit or protest p eriod and 98
before submission of a petition for hearing pursuant to chapter 99
120 or the filing of an action under paragraph (a). 100
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Section 2. Paragraph (b) of subsection (14) of section 101
120.80, Florida Statutes, is amended, and subsection (19) is 102
added to that section, to read: 103
120.80 Exceptions and special requirements; agencies. — 104
(14) DEPARTMENT OF REVENUE. — 105
(b) Taxpayer contest proceedings. — 106
1. In any administrative proceeding brought pursuant to 107
this chapter as authorized by s. 72.011(1), the tax payer shall 108
be designated the "petitioner" and the Department of Revenue 109
shall be designated the "respondent," except that for actions 110
contesting an assessment or denial of refund under chapter 207, 111
the Department of Highway Safety and Motor Vehicles shall be 112
designated the "respondent," and for actions contesting an 113
assessment or denial of refund under chapters 210, 550, 561, 114
562, 563, 564, and 565, the Department of Business and 115
Professional Regulation shall be designated the "respondent." 116
2. In any such administrative proceeding, the applicable 117
department's burden of proof, except as otherwise specifically 118
provided by general law, shall be limited to a showing that an 119
assessment has been made against the taxpayer and the factual 120
and legal grounds upon w hich the applicable department made the 121
assessment. 122
3.a. Before Prior to filing a petition under this chapter, 123
the taxpayer shall pay to the applicable department the amount 124
of taxes, penalties, and accrued interest assessed by that 125
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department which are not being contested by the taxpayer. 126
Failure to pay the uncontested amount shall result in the 127
dismissal of the action and imposition of an additional penalty 128
of 25 percent of the amount taxed. 129
b. The requirements of s. 72.011(2) and (3)(a) are 130
jurisdictional for any action under this chapter to contest an 131
assessment or denial of refund by the Department of Revenue, the 132
Department of Highway Safety and Motor Vehicles, or the 133
Department of Business and Professional Regulation. 134
4. Except as provided in s. 220.719, further collection 135
and enforcement of the contested amount of an assessment for 136
nonpayment or underpayment of any tax, interest, or penalty 137
shall be stayed beginning on the date a petition is filed. Upon 138
entry of a final order, an agency may resu me collection and 139
enforcement action. 140
5. The prevailing party, in a proceeding under ss. 120.569 141
and 120.57 authorized by s. 72.011(1), may recover all legal 142
costs incurred in such proceeding, including reasonable attorney 143
attorney's fees, if the losing party fails to raise a 144
justiciable issue of law or fact in its petition or response. 145
6. Upon review pursuant to s. 120.68 of final agency 146
action concerning an assessment of tax, penalty, or interest 147
with respect to a tax imposed under chapter 212, or the denial 148
of a refund of any tax imposed under chapter 212, if the court 149
finds that the Department of Revenue improperly rejected or 150
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modified a conclusion of law, the court may award reasonable 151
attorney attorney's fees and reasonable costs of the appeal to 152
the prevailing appellant. 153
7. A taxpayer may not submit records pertaining to an 154
assessment or refund claim as evidence in any proceeding brought 155
pursuant to this chapter as authorized by s. 72.011(1) if those 156
records were available to, or required to be k ept by, the 157
taxpayer and not timely provided to the Department of Revenue 158
during the audit or protest period and before submission of a 159
petition for hearing under this chapter. 160
(19) AGENCIES HEADED BY THE GOVERNOR AND THE CABINET. —In a 161
proceeding under s. 120.56(4) challenging a statement of an 162
agency headed by the Governor and the Cabinet, upon notification 163
to the administrative law judge provided before the final 164
hearing that the agency has published a notice of rule 165
development under s. 120.54(2) regar ding the statement and for 166
which a notice of adoption of an emergency rule under s. 167
120.54(4) was also published, such notice automatically operates 168
as a stay of proceedings pending adoption of the statement as a 169
rule or while the emergency rule remains in effect. The 170
administrative law judge may vacate the stay for good cause 171
shown. A stay of proceedings under this subsection remains in 172
effect so long as the agency is proceeding expeditiously and in 173
good faith to adopt the statement as a rule or the emerge ncy 174
rule remains in effect. 175
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Section 3. Paragraph (a) of subsection (1) of section 176
201.02, Florida Statutes, is amended, and subsection (12) is 177
added to that section, to read: 178
201.02 Tax on deeds and other instruments relating to real 179
property or interests in real property. — 180
(1)(a) On deeds, instruments, or writings whereby any 181
lands, tenements, or other real property, or any interest 182
therein, is shall be granted, assigned, transferred, or 183
otherwise conveyed to, or vested in, the purchaser or any oth er 184
person by his or her direction, on each $100 of the 185
consideration therefor the tax shall be 70 cents. When the full 186
amount of the consideration for the execution, assignment, 187
transfer, or conveyance is not shown in the face of such deed, 188
instrument, document, or writing, the tax must shall be at the 189
rate of 70 cents for each $100 or fractional part thereof of the 190
consideration therefor. The parties to any document evidencing 191
the transfer of real property shall establish the consideration 192
before the transfer of the real property or the delivery of any 193
document evidencing the transfer of the real property. For 194
purposes of this section, consideration includes, but is not 195
limited to, the money paid or agreed to be paid; the discharge 196
of an obligation; and the amount of any mortgage, purchase money 197
mortgage lien, or other encumbrance, whether or not the 198
underlying indebtedness is assumed. If the consideration paid or 199
given in exchange for real property or any interest therein 200
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includes property other than money, it is presumed that the 201
consideration is equal to the fair market value of the real 202
property or interest therein. 203
(12) The Department of Revenue shall adopt rules governing 204
the implementation and operation of this section. 205
Section 4. Paragraph (f) i s added to subsection (4) of 206
section 202.34, Florida Statutes, and subsection (6) is added to 207
that section, to read: 208
202.34 Records required to be kept; power to inspect; 209
audit procedure.— 210
(4) 211
(f) Once the notification required by paragraph (a) is 212
issued, the department, at any time, may respond to contact 213
initiated by a taxpayer to discuss the audit, and the taxpayer 214
may provide records or other information, electronically or 215
otherwise, to the department. The department may examine, at any 216
time, documentation and other information voluntarily provided 217
by the taxpayer, its representative, or other parties, 218
information already in the department's possession, or publicly 219
available information. Examination by the department of such 220
information does not com mence an audit if the review takes place 221
within 60 days of the notice of intent to conduct an audit. The 222
requirement in paragraph (a) does not limit the department from 223
making initial contact with the taxpayer to confirm receipt of 224
the notification or to c onfirm the date that the audit will 225
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begin. If the taxpayer believes the department has prematurely 226
commenced the audit, the taxpayer must object in writing to the 227
department prior to the issuance of an assessment or the 228
objection is waived. If the departme nt agrees that the audit was 229
prematurely commenced, or a judge, hearing officer or 230
administrative law judge so determines, the tolling period 231
provided for in s. 213.345 shall be considered lifted for the 232
number of days equal to the difference between the d ate of 233
premature commencement of audit and the 61st day from the date 234
of the department's notice of intent to audit. 235
(6) The department may adopt rules to administer this 236
section. 237
Section 5. Paragraph (a) of subsection (4) of section 238
202.36, Florida Statutes, is amended to read: 239
202.36 Departmental powers; hearings; distress warrants; 240
bonds; subpoenas and subpoenas duces tecum. — 241
(4)(a) The department may issue subpoenas or subpoenas 242
duces tecum compelling the attendance and testimony of witnesses 243
and the production of books, records, written materials, and 244
electronically recorded information. Subpoenas must be issued 245
with the written and signed approval of the executive director 246
or his or her designee on a written and sworn application by any 247
employee of the department. The application must set forth the 248
reason for the application, the name of the person subpoenaed, 249
the time and place of appearance of the witness, and a 250
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description of any books, records, or electronically recorded 251
information to be produced, together with a statement by the 252
applicant that the department has unsuccessfully attempted other 253
reasonable means of securing information and that the testimony 254
of the witness or the written or electronically recorded 255
materials sought in the sub poena are necessary for the 256
collection of taxes, penalty, or interest or the enforcement of 257
the taxes levied or administered under this chapter. A subpoena 258
shall be served in the manner provided by law and by the Florida 259
Rules of Civil Procedure and shall be returnable only during 260
regular business hours and at least 20 calendar days after the 261
date of service of the subpoena. Any subpoena to which this 262
subsection applies must identify the taxpayer to whom the 263
subpoena relates and to whom the records pertain and must 264
provide other information to enable the person subpoenaed to 265
locate the records required under the subpoena. The department 266
shall give notice to the taxpayer to whom the subpoena relates 267
within 3 days after the day on which the service of the subp oena 268
is made. Within 14 days after service of the subpoena, the 269
person to whom the subpoena is directed may serve written 270
objection to the inspection or copying of any of the designated 271
materials. If objection is made, the department may not inspect 272
or copy the materials, except pursuant to an order of the 273
circuit court. If an objection is made, the department may 274
petition any circuit court for an order to comply with the 275
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subpoena. The subpoena must contain a written notice of the 276
right to object to the sub poena. Every subpoena served upon the 277
witness or custodian of records must be accompanied by a copy of 278
the provisions of this subsection. If a person refuses to obey a 279
subpoena or subpoena duces tecum, the department may apply to 280
any circuit court of this state to enforce compliance with the 281
subpoena. Witnesses are entitled to be paid a mileage allowance 282
and witness fees as authorized for witnesses in civil cases. The 283
failure of a taxpayer to provide documents available to, or 284
required to be kept by, the ta xpayer and requested by a subpoena 285
issued under this section creates a presumption that the 286
resulting proposed final agency action by the department, as to 287
the requested documents, is correct and that the requested 288
documents not produced by the taxpayer wo uld be adverse to the 289
taxpayer's position as to the proposed final agency action. The 290
department may create estimates for purposes of assessment if a 291
taxpayer fails to provide documents requested by a subpoena 292
issued under this section. The presumption and authority to 293
create estimates under this paragraph are not triggered merely 294
because a taxpayer or its representative requests a conference 295
to negotiate the production of a sample of records demanded by a 296
subpoena. 297
Section 6. Subsection (4) of section 206.14, Florida 298
Statutes, is amended to read: 299
206.14 Inspection of records; audits; hearings; forms; 300
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rules and regulations. — 301
(4) If any person unreasonably refuses access to such 302
records, books, papers or other documents, or equipment, or if 303
any person fails or refuses to obey such subpoenas duces tecum 304
or to testify, except for lawful reasons, before the department 305
or any of its authorized agents, the department shall certify 306
the names and facts to the clerk of the circuit court of any 307
county; and the circuit court shall enter such order against 308
such person in the premises as the enforcement of this law and 309
justice requires. The failure of a taxpayer to provide documents 310
available to, or required to be kept by, the taxpayer and 311
requested by a subpoena i ssued under this section creates a 312
presumption that the resulting proposed final agency action by 313
the department, as to the requested documents, is correct and 314
that the requested documents not produced by the taxpayer would 315
be adverse to the taxpayer's pos ition as to the proposed final 316
agency action. The department may create estimates for purposes 317
of assessment if a taxpayer fails to provide documents requested 318
by a subpoena issued under this section. 319
Section 7. Subsection (1) of section 206.9931, Flor ida 320
Statutes, is amended to read: 321
206.9931 Administrative provisions. — 322
(1) Any person producing in, importing into, or causing to 323
be imported into this state taxable pollutants for sale, use, or 324
otherwise and who is not registered or licensed pursuant to 325
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other parts of this chapter is hereby required to register and 326
become licensed for the purposes of this part. Such person shall 327
register as either a producer or importer of pollutants and 328
shall be subject to all applicable registration and licensing 329
provisions of this chapter, as if fully set out in this part and 330
made expressly applicable to the taxes imposed herein, 331
including, but not limited to, ss. 206.02, 206.021, 206.022, 332
206.025, 206.03, 206.04, and 206.05. For the purposes of this 333
section, registrations required exclusively for this part shall 334
be made within 90 days of July 1, 1986, for existing businesses, 335
or before prior to the first production or importation of 336
pollutants for businesses created after July 1, 1986. The fee 337
for registration shall be $30. Failure to timely register is a 338
misdemeanor of the first degree, punishable as provided in s. 339
775.082 or s. 775.083. 340
Section 8. Paragraph (b) of subsection (3) of section 341
211.125, Florida Statutes, is amended to read: 342
211.125 Administration o f law; books and records; powers 343
of the department; refunds; enforcement provisions; 344
confidentiality.— 345
(3) 346
(b) The department may shall have the power to inspect or 347
examine the books, records, or papers of any operator, producer, 348
purchaser, royalty inte rest owner, taxpayer, or transporter of 349
taxable products which are reasonably required for the purposes 350
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of this part and may require such person to testify under oath 351
or affirmation or to answer competent questions touching upon 352
such person's business or p roduction of taxable products in this 353
the state. 354
1. The department may issue subpoenas to compel third 355
parties to testify or to produce records or other evidence held 356
by them. 357
2. Any duly authorized representative of the department 358
may administer an oa th or affirmation. 359
3. If any person fails to comply with a request of the 360
department for the inspection of records, fails to give 361
testimony or respond to competent questions, or fails to comply 362
with a subpoena, a circuit court having jurisdiction over such 363
person may, upon application by the department, issue orders 364
necessary to secure compliance. The failure of a taxpayer to 365
provide documents available to, or required to be kept by, the 366
taxpayer and requested by a subpoena issued under this section 367
creates a presumption tha t the resulting proposed final agency 368
action by the department, as to the requested documents, is 369
correct and that the requested documents not produced by the 370
taxpayer would be adverse to the taxpayer's position as to the 371
proposed final agency action. The department may create 372
estimates for purposes of assessment if a taxpayer fails to 373
provide documents requested by a subpoena issued under this 374
section. 375
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Section 9. Paragraph (a) of subsection (1) of section 376
212.05, Florida Statutes, is amended to read: 377
212.05 Sales, storage, use tax. —It is hereby declared to 378
be the legislative intent that every person is exercising a 379
taxable privilege who engages in the business of selling 380
tangible personal property at retail in this state, including 381
the business of making or facilitating remote sales; who rents 382
or furnishes any of the things or services taxable under this 383
chapter; or who stores for use or consumption in this state any 384
item or article of tangible personal property as defined herein 385
and who leases or rent s such property within the state. 386
(1) For the exercise of such privilege, a tax is levied on 387
each taxable transaction or incident, which tax is due and 388
payable as follows: 389
(a)1.a. At the rate of 6 percent of the sales price of 390
each item or article of t angible personal property when sold at 391
retail in this state, computed on each taxable sale for the 392
purpose of remitting the amount of tax due the state, and 393
including each and every retail sale. 394
b. Each occasional or isolated sale of an aircraft, boat, 395
mobile home, or motor vehicle of a class or type which is 396
required to be registered, licensed, titled, or documented in 397
this state or by the United States Government is shall be 398
subject to tax at the rate provided in this paragraph. The 399
department shall by rule adopt any nationally recognized 400
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publication for valuation of used motor vehicles as the 401
reference price list for any used motor vehicle which is 402
required to be licensed pursuant to s. 320.08(1), (2), (3)(a), 403
(b), (c), or (e), or (9). If any party to a n occasional or 404
isolated sale of such a vehicle reports to the tax collector a 405
sales price which is less than 80 percent of the average loan 406
price for the specified model and year of such vehicle as listed 407
in the most recent reference price list, the tax l evied under 408
this paragraph shall be computed by the department on such 409
average loan price unless the parties to the sale have provided 410
to the tax collector an affidavit signed by each party, or other 411
substantial proof, stating the actual sales price. Any p arty to 412
such sale who reports a sales price less than the actual sales 413
price is guilty of a misdemeanor of the first degree, punishable 414
as provided in s. 775.082 or s. 775.083. The department shall 415
collect or attempt to collect from such party any delinque nt 416
sales taxes. In addition, such party shall pay any tax due and 417
any penalty and interest assessed plus a penalty equal to twice 418
the amount of the additional tax owed. Notwithstanding any other 419
provision of law, the Department of Revenue may waive or 420
compromise any penalty imposed pursuant to this subparagraph. 421
2. This paragraph does not apply to the sale of a boat or 422
aircraft by or through a registered dealer under this chapter to 423
a purchaser who, at the time of taking delivery, is a 424
nonresident of this state, does not make his or her permanent 425
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place of abode in this state, and is not engaged in carrying on 426
in this state any employment, trade, business, or profession in 427
which the boat or aircraft will be used in this state, or is a 428
corporation none of th e officers or directors of which is a 429
resident of, or makes his or her permanent place of abode in, 430
this state, or is a noncorporate entity that has no individual 431
vested with authority to participate in the management, 432
direction, or control of the entity's affairs who is a resident 433
of, or makes his or her permanent abode in, this state. For 434
purposes of this exemption, either a registered dealer acting on 435
his or her own behalf as seller, a registered dealer acting as 436
broker on behalf of a seller, or a regist ered dealer acting as 437
broker on behalf of the nonresident purchaser may be deemed to 438
be the selling dealer. This exemption is shall not be allowed 439
unless: 440
a. The nonresident purchaser removes a qualifying boat, as 441
described in sub-subparagraph f., from this the state within 90 442
days after the date of purchase or extension, or the nonresident 443
purchaser removes a nonqualifying boat or an aircraft from this 444
state within 10 days after the date of purchase or, when the 445
boat or aircraft is repaired or altered, within 20 days after 446
completion of the repairs or alterations; or if the aircraft 447
will be registered in a foreign jurisdiction and: 448
(I) Application for the aircraft's registration is 449
properly filed with a civil airworthiness authority of a foreign 450
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jurisdiction within 10 days after the date of purchase; 451
(II) The nonresident purchaser removes the aircraft from 452
this the state to a foreign jurisdiction within 10 days after 453
the date the aircraft is registered by the applicable foreign 454
airworthiness authority ; and 455
(III) The aircraft is operated in this the state solely to 456
remove it from this the state to a foreign jurisdiction. 457
458
For purposes of this sub -subparagraph, the term "foreign 459
jurisdiction" means any jurisdiction outside of the United 460
States or any of its territories; 461
b. The nonresident purchaser, within 90 days after from 462
the date of departure, provides the department with written 463
proof that the nonresident purchaser licensed, registered, 464
titled, or documented the boat or aircraft outside this the 465
state. If such written proof is unavailable, within 90 days the 466
nonresident purchaser must shall provide proof that the 467
nonresident purchaser applied for such license, title, 468
registration, or documentation. The nonresident purchaser shall 469
forward to the department proof of title, license, registration, 470
or documentation upon receipt; 471
c. The nonresident purchaser, within 30 days after 472
removing the boat or aircraft from this state Florida, furnishes 473
the department with proof of removal in the form of receipt s for 474
fuel, dockage, slippage, tie -down, or hangaring from outside of 475
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this state Florida. The information so provided must clearly and 476
specifically identify the boat or aircraft; 477
d. The selling dealer, within 30 days after the date of 478
sale, provides to the department a copy of the sales invoice, 479
closing statement, bills of sale, and the original affidavit 480
signed by the nonresident purchaser affirming that the 481
nonresident purchaser qualifies for exemption from sales tax 482
pursuant to this subparagraph and at testing that the nonresident 483
purchaser will provide the documentation required to 484
substantiate the exemption claimed under this subparagraph 485
attesting that he or she has read the provisions of this 486
section; 487
e. The seller makes a copy of the affidavit a p art of his 488
or her record for as long as required by s. 213.35; and 489
f. Unless the nonresident purchaser of a boat of 5 net 490
tons of admeasurement or larger intends to remove the boat from 491
this state within 10 days after the date of purchase or when the 492
boat is repaired or altered, within 20 days after completion of 493
the repairs or alterations, the nonresident purchaser applies to 494
the selling dealer for a decal which authorizes 90 days after 495
the date of purchase for removal of the boat. The nonresident 496
purchaser of a qualifying boat may apply to the selling dealer 497
within 60 days after the date of purchase for an extension decal 498
that authorizes the boat to remain in this state for an 499
additional 90 days, but not more than a total of 180 days, 500
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before the nonresident purchaser is required to pay the tax 501
imposed by this chapter. The department is authorized to issue 502
decals in advance to dealers. The number of decals issued in 503
advance to a dealer shall be consistent with the volume of the 504
dealer's past sales of boats which qualify under this sub -505
subparagraph. The selling dealer or his or her agent shall mark 506
and affix the decals to qualifying boats in the manner 507
prescribed by the department, before delivery of the boat. 508
(I) The department is hereby authorized to cha rge dealers 509
a fee sufficient to recover the costs of decals issued, except 510
the extension decal shall cost $425. 511
(II) The proceeds from the sale of decals will be 512
deposited into the administrative trust fund. 513
(III) Decals shall display information to id entify the 514
boat as a qualifying boat under this sub -subparagraph, 515
including, but not limited to, the decal's date of expiration. 516
(IV) The department is authorized to require dealers who 517
purchase decals to file reports with the department and may 518
prescribe all necessary records by rule. All such records are 519
subject to inspection by the department. 520
(V) Any dealer or his or her agent who issues a decal 521
falsely, fails to affix a decal, mismarks the expiration date of 522
a decal, or fails to properly account fo r decals will be 523
considered prima facie to have committed a fraudulent act to 524
evade the tax and will be liable for payment of the tax plus a 525
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mandatory penalty of 200 percent of the tax, and shall be liable 526
for fine and punishment as provided by law for a c onviction of a 527
misdemeanor of the first degree, as provided in s. 775.082 or s. 528
775.083. 529
(VI) Any nonresident purchaser of a boat who removes a 530
decal before permanently removing the boat from this the state, 531
or defaces, changes, modifies, or alters a dec al in a manner 532
affecting its expiration date before its expiration, or who 533
causes or allows the same to be done by another, will be 534
considered prima facie to have committed a fraudulent act to 535
evade the tax and will be liable for payment of the tax plus a 536
mandatory penalty of 200 percent of the tax, and shall be liable 537
for fine and punishment as provided by law for a conviction of a 538
misdemeanor of the first degree, as provided in s. 775.082 or s. 539
775.083. 540
(VII) The department is authorized to adopt rules 541
necessary to administer and enforce this subparagraph and to 542
publish the necessary forms and instructions. 543
(VIII) The department is hereby authorized to adopt 544
emergency rules pursuant to s. 120.54(4) to administer and 545
enforce the provisions of this subparagraph. 546
547
If the nonresident purchaser fails to remove the qualifying boat 548
from this state within the maximum 180 days after purchase or a 549
nonqualifying boat or an aircraft from this state within 10 days 550
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after purchase or, when the boat or aircraft is repa ired or 551
altered, within 20 days after completion of such repairs or 552
alterations, or permits the boat or aircraft to return to this 553
state within 6 months after from the date of departure, except 554
as provided in s. 212.08(7)(fff), or if the nonresident 555
purchaser fails to furnish the department with any of the 556
documentation required by this subparagraph within the 557
prescribed time period, the nonresident purchaser is shall be 558
liable for use tax on the cost price of the boat or aircraft 559
and, in addition thereto, payment of a penalty to the Department 560
of Revenue equal to the tax payable. This penalty shall be in 561
lieu of the penalty imposed by s. 212.12(2). The maximum 180 -day 562
period following the sale of a qualifying boat tax -exempt to a 563
nonresident may not be toll ed for any reason. 564
Section 10. Paragraphs (g) and (h) of subsection (5) and 565
paragraph (f) of subsection (15) of section 212.08, Florida 566
Statutes, are amended to read: 567
212.08 Sales, rental, use, consumption, distribution, and 568
storage tax; specified exemptions.—The sale at retail, the 569
rental, the use, the consumption, the distribution, and the 570
storage to be used or consumed in this state of the following 571
are hereby specifically exempt from the tax imposed by this 572
chapter. 573
(5) EXEMPTIONS; ACCOUNT OF USE.— 574
(g) Building materials used in the rehabilitation of real 575
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property located in an enterprise zone. — 576
1. Building materials used in the rehabilitation of real 577
property located in an enterprise zone are exempt from the tax 578
imposed by this chapter upo n an affirmative showing to the 579
satisfaction of the department that the items have been used for 580
the rehabilitation of real property located in an enterprise 581
zone. Except as provided in subparagraph 2., this exemption 582
inures to the owner, lessee, or lessor at the time the real 583
property is rehabilitated, but only through a refund of 584
previously paid taxes. To receive a refund pursuant to this 585
paragraph, the owner, lessee, or lessor of the rehabilitated 586
real property must file an application under oath with th e 587
governing body or enterprise zone development agency having 588
jurisdiction over the enterprise zone where the business is 589
located, as applicable. A single application for a refund may be 590
submitted for multiple, contiguous parcels that were part of a 591
single parcel that was divided as part of the rehabilitation of 592
the property. All other requirements of this paragraph apply to 593
each parcel on an individual basis. The application must 594
include: 595
a. The name and address of the person claiming the refund. 596
b. An address and assessment roll parcel number of the 597
rehabilitated real property for which a refund of previously 598
paid taxes is being sought. 599
c. A description of the improvements made to accomplish 600
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the rehabilitation of the real property. 601
d. A copy of a valid building permit issued by the county 602
or municipal building department for the rehabilitation of the 603
real property. 604
e. A sworn statement, under penalty of perjury, from the 605
general contractor licensed in this state with whom the 606
applicant contracted to make the improvements necessary to 607
rehabilitate the real property, which lists the building 608
materials used to rehabilitate the real property, the actual 609
cost of the building materials, and the amount of sales tax paid 610
in this state on the building mater ials. If a general contractor 611
was not used, the applicant, not a general contractor, shall 612
make the sworn statement required by this sub -subparagraph. 613
Copies of the invoices that evidence the purchase of the 614
building materials used in the rehabilitation an d the payment of 615
sales tax on the building materials must be attached to the 616
sworn statement provided by the general contractor or by the 617
applicant. Unless the actual cost of building materials used in 618
the rehabilitation of real property and the payment of sales 619
taxes is documented by a general contractor or by the applicant 620
in this manner, the cost of the building materials is deemed to 621
be an amount equal to 40 percent of the increase in assessed 622
value for ad valorem tax purposes. 623
f. The identifying numb er assigned pursuant to s. 290.0065 624
to the enterprise zone in which the rehabilitated real property 625
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is located. 626
g. A certification by the local building code inspector 627
that the improvements necessary to rehabilitate the real 628
property are substantially co mpleted. 629
h. A statement of whether the business is a small business 630
as defined by s. 288.703. 631
i. If applicable, the name and address of each permanent 632
employee of the business, including, for each employee who is a 633
resident of an enterprise zone, the i dentifying number assigned 634
pursuant to s. 290.0065 to the enterprise zone in which the 635
employee resides. 636
2. This exemption inures to a municipality, county, other 637
governmental unit or agency, or nonprofit community -based 638
organization through a refund of previously paid taxes if the 639
building materials used in the rehabilitation are paid for from 640
the funds of a community development block grant, State Housing 641
Initiatives Partnership Program, or similar grant or loan 642
program. To receive a refund, a municipal ity, county, other 643
governmental unit or agency, or nonprofit community -based 644
organization must file an application that includes the same 645
information required in subparagraph 1. In addition, the 646
application must include a sworn statement signed by the chie f 647
executive officer of the municipality, county, other 648
governmental unit or agency, or nonprofit community -based 649
organization seeking a refund which states that the building 650
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materials for which a refund is sought were funded by a 651
community development bloc k grant, State Housing Initiatives 652
Partnership Program, or similar grant or loan program. 653
3. Within 10 working days after receipt of an application, 654
the governing body or enterprise zone development agency shall 655
review the application to determine if it contains all the 656
information required by subparagraph 1. or subparagraph 2. and 657
meets the criteria set out in this paragraph. The governing body 658
or agency shall certify all applications that contain the 659
required information and are eligible to receive a re fund. If 660
applicable, the governing body or agency shall also certify if 661
20 percent of the employees of the business are residents of an 662
enterprise zone, excluding temporary and part -time employees. 663
The certification must be in writing, and a copy of the 664
certification shall be transmitted to the executive director of 665
the department. The applicant is responsible for forwarding a 666
certified application to the department within the time 667
specified in subparagraph 4. 668
4. An application for a refund must be submit ted to the 669
department within 6 months after the rehabilitation of the 670
property is deemed to be substantially completed by the local 671
building code inspector or by November 1 after the rehabilitated 672
property is first subject to assessment. 673
5. Only one exemption through a refund of previously paid 674
taxes for the rehabilitation of real property is permitted for 675
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any single parcel of property unless there is a change in 676
ownership, a new lessor, or a new lessee of the real property. A 677
refund may not be granted un less the amount to be refunded 678
exceeds $500. A refund may not exceed the lesser of 97 percent 679
of the Florida sales or use tax paid on the cost of the building 680
materials used in the rehabilitation of the real property as 681
determined pursuant to sub -subparagraph 1.e. or $5,000, or, if 682
at least 20 percent of the employees of the business are 683
residents of an enterprise zone, excluding temporary and part -684
time employees, the amount of refund may not exceed the lesser 685
of 97 percent of the sales tax paid on the cost of the building 686
materials or $10,000. A refund shall be made within 30 days 687
after formal approval by the department of the application for 688
the refund. 689
6. The department shall adopt rules governing the manner 690
and form of refund applications and may estab lish guidelines as 691
to the requisites for an affirmative showing of qualification 692
for exemption under this paragraph. 693
7. The department shall deduct an amount equal to 10 694
percent of each refund granted under this paragraph from the 695
amount transferred into the Local Government Half -cent Sales Tax 696
Clearing Trust Fund pursuant to s. 212.20 for the county area in 697
which the rehabilitated real property is located and shall 698
transfer that amount to the General Revenue Fund. 699
8. For the purposes of the exemption p rovided in this 700
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paragraph, the term: 701
a. "Building materials" means tangible personal property 702
that becomes a component part of improvements to real property. 703
b. "Real property" has the same meaning as provided in s. 704
192.001(12), except that the term do es not include a condominium 705
parcel or condominium property as defined in s. 718.103. 706
c. "Rehabilitation of real property" means the 707
reconstruction, renovation, restoration, rehabilitation, 708
construction, or expansion of improvements to real property. 709
d. "Substantially completed" has the same meaning as 710
provided in s. 192.042(1). 711
9. This paragraph expires on the date specified in s. 712
290.016 for the expiration of the Florida Enterprise Zone Act. 713
(h) Business property used in an enterprise zone. — 714
1. Business property purchased for use by businesses 715
located in an enterprise zone which is subsequently used in an 716
enterprise zone shall be exempt from the tax imposed by this 717
chapter. This exemption inures to the business only through a 718
refund of previously paid taxes. A refund shall be authorized 719
upon an affirmative showing by the taxpayer to the satisfaction 720
of the department that the requirements of this paragraph have 721
been met. 722
2. To receive a refund, the business must file under oath 723
with the governing body or enterprise zone development agency 724
having jurisdiction over the enterprise zone where the business 725
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is located, as applicable, an application which includes: 726
a. The name and address of the business claiming the 727
refund. 728
b. The identifying number assigned pursuant to s. 290.0065 729
to the enterprise zone in which the business is located. 730
c. A specific description of the property for which a 731
refund is sought, including its serial number or other permanent 732
identification number. 733
d. The location of the property. 734
e. The sales invoice or other proof of purchase of the 735
property, showing the amount of sales tax paid, the date of 736
purchase, and the name and address of the sales tax dealer from 737
whom the property was purchased. 738
f. Whether the busin ess is a small business as defined by 739
s. 288.703. 740
g. If applicable, the name and address of each permanent 741
employee of the business, including, for each employee who is a 742
resident of an enterprise zone, the identifying number assigned 743
pursuant to s. 290.0065 to the enterprise zone in which the 744
employee resides. 745
3. Within 10 working days after receipt of an application, 746
the governing body or enterprise zone development agency shall 747
review the application to determine if it contains all the 748
information required pursuant to subparagraph 2. and meets the 749
criteria set out in this paragraph. The governing body or agency 750
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shall certify all applications that contain the information 751
required pursuant to subparagraph 2. and meet the criteria set 752
out in this paragraph as eligible to receive a refund. If 753
applicable, the governing body or agency shall also certify if 754
20 percent of the employees of the business are residents of an 755
enterprise zone, excluding temporary and part -time employees. 756
The certification shall be i n writing, and a copy of the 757
certification shall be transmitted to the executive director of 758
the Department of Revenue. The business shall be responsible for 759
forwarding a certified application to the department within the 760
time specified in subparagraph 4. 761
4. An application for a refund pursuant to this paragraph 762
must be submitted to the department within 6 months after the 763
tax is due on the business property that is purchased. 764
5. The amount refunded on purchases of business property 765
under this paragraph shall be the lesser of 97 percent of the 766
sales tax paid on such business property or $5,000, or, if no 767
less than 20 percent of the employees of the business are 768
residents of an enterprise zone, excluding temporary and part -769
time employees, the amount refun ded on purchases of business 770
property under this paragraph shall be the lesser of 97 percent 771
of the sales tax paid on such business property or $10,000. A 772
refund approved pursuant to this paragraph shall be made within 773
30 days after formal approval by the department of the 774
application for the refund. A refund may not be granted under 775
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this paragraph unless the amount to be refunded exceeds $100 in 776
sales tax paid on purchases made within a 60 -day time period. 777
6. The department shall adopt rules governing th e manner 778
and form of refund applications and may establish guidelines as 779
to the requisites for an affirmative showing of qualification 780
for exemption under this paragraph. 781
7. If the department determines that the business property 782
is used outside an enter prise zone within 3 years from the date 783
of purchase, the amount of taxes refunded to the business 784
purchasing such business property shall immediately be due and 785
payable to the department by the business, together with the 786
appropriate interest and penalty, computed from the date of 787
purchase, in the manner provided by this chapter. 788
Notwithstanding this subparagraph, business property used 789
exclusively in: 790
a. Licensed commercial fishing vessels, 791
b. Fishing guide boats, or 792
c. Ecotourism guide boats 793
794
that leave and return to a fixed location within an area 795
designated under s. 379.2353, Florida Statutes 2010, are 796
eligible for the exemption provided under this paragraph if all 797
requirements of this paragraph are met. Such vessels and boats 798
must be owned by a bu siness that is eligible to receive the 799
exemption provided under this paragraph. This exemption does not 800
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apply to the purchase of a vessel or boat. 801
8. The department shall deduct an amount equal to 10 802
percent of each refund granted under this paragraph fr om the 803
amount transferred into the Local Government Half -cent Sales Tax 804
Clearing Trust Fund pursuant to s. 212.20 for the county area in 805
which the business property is located and shall transfer that 806
amount to the General Revenue Fund. 807
9. For the purposes of this exemption, "business property" 808
means new or used property defined as "recovery property" in s. 809
168(c) of the Internal Revenue Code of 1954, as amended, except: 810
a. Property classified as 3 -year property under s. 811
168(c)(2)(A) of the Internal Reve nue Code of 1954, as amended; 812
b. Industrial machinery and equipment as defined in sub -813
subparagraph (b)6.a. and eligible for exemption under paragraph 814
(b); and 815
c. Building materials as defined in sub -subparagraph 816
(g)8.a.; and 817
d. Business property havi ng a sales price of under $5,000 818
per unit. 819
10. This paragraph expires on the date specified in s. 820
290.016 for the expiration of the Florida Enterprise Zone Act. 821
(15) ELECTRICAL ENERGY USED IN AN ENTERPRISE ZONE. — 822
(f) For the purpose of the exemption provided in this 823
subsection, the term "qualified business" means a business which 824
is: 825
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1. First occupying a new structure to which electrical 826
service, other than that used for construction purposes, has not 827
been previously provided or furnished; or 828
2. Newly occupying an existing, remodeled, renovated, or 829
rehabilitated structure to which electrical service, other than 830
that used for remodeling, renovation, or rehabilitation of the 831
structure, has not been provided or furnished in the three 832
preceding billing periods.; or 833
3. Occupying a new, remodeled, rebuilt, renovated, or 834
rehabilitated structure for which a refund has been granted 835
pursuant to paragraph (5)(g). 836
Section 11. Subsections (2) and (5) of section 212.13, 837
Florida Statutes, are amended, and su bsection (7) is added to 838
that section, to read: 839
212.13 Records required to be kept; power to inspect; 840
audit procedure.— 841
(2)(a) Each dealer, as defined in this chapter, shall 842
secure, maintain, and keep as long as required by s. 213.35 a 843
complete record of tangible personal property or services 844
received, used, sold at retail, distributed or stored, leased or 845
rented by said dealer, together with invoices, bills of lading, 846
gross receipts from such sales, and other pertinent records and 847
papers as may be required by the department for the reasonable 848
administration of this chapter. All such records must be made 849
available to the departme nt at reasonable times and places and 850
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by reasonable means, including in an electronic format when so 851
kept by the dealer. Any dealer subject to this chapter who 852
violates this subsection commits a misdemeanor of the first 853
degree, punishable as provided in s. 775.082 or s. 775.083. If, 854
however, any subsequent offense involves intentional destruction 855
of such records with an intent to evade payment of or deprive 856
the state of any tax revenues, such subsequent offense is a 857
felony of the third degree, punishable as provided in s. 775.082 858
or s. 775.083. 859
(b) Dealers licensed under chapter 561 shall maintain 860
records of all monthly sales and all monthly purchases of 861
alcoholic beverages and produce such records for inspection by 862
any department employee within 10 days a fter written request 863
therefor. The failure of a dealer licensed under chapter 561 to 864
comply with such a request is deemed sufficient cause under s. 865
561.29(1)(a), and the department shall promptly notify the 866
Division of Alcoholic Beverages and Tobacco and t he dealer of 867
such failure for further appropriate action by the division. The 868
department may suspend the resale certificate issued to a dealer 869
licensed under chapter 561 if the dealer fails to produce the 870
records requested by the department under this sect ion, unless 871
such dealer, within 30 days after the receipt of notice by the 872
department, corrects such failure or establishes reasonable 873
cause to the department why the requested records do not exist. 874
A dealer licensed under chapter 561 aggrieved by an actio n of 875
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the department which suspends the resale certificate of that 876
dealer may apply to the department within 30 days after the 877
receipt of the notice of suspension for an administrative 878
hearing pursuant to chapter 120. 879
(5)(a) The department shall send writ ten notification at 880
least 60 days before prior to the date an auditor is scheduled 881
to begin an audit, informing the taxpayer of the audit. The 882
department is not required to give 60 days' prior notification 883
of a forthcoming audit in any instance in which th e taxpayer 884
requests an emergency audit. 885
(b) Such written notification must shall contain: 886
1. The approximate date on which the auditor is scheduled 887
to begin the audit. 888
2. A reminder that all of the records, receipts, invoices, 889
resale certificates, an d related documentation of the taxpayer 890
must be made available to the auditor. 891
3. Any other requests or suggestions the department may 892
deem necessary. 893
(c) Only records, receipts, invoices, resale certificates, 894
and related documentation that which are available to the 895
auditor when such audit begins are shall be deemed acceptable 896
for the purposes of conducting such audit. A resale certificate 897
containing a date before prior to the date the audit commences 898
is shall be deemed acceptable documentation of the specific 899
transaction or transactions which occurred in the past, for the 900
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purpose of conducting an audit. 901
(d) The provisions of this chapter concerning fraudulent 902
or improper records, receipts, invoices, resale cert ificates, 903
and related documentation shall apply when conducting any audit. 904
(e) The requirement in paragraph (a) of 60 days' written 905
notification does not apply to the distress or jeopardy 906
situations referred to in s. 212.14 or s. 212.15. 907
(f) Once the notification required by paragraph (a) is 908
issued, the department, at any time, may respond to contact 909
initiated by a taxpayer to discuss the audit, and the taxpayer 910
may provide documentation or other information, electronically 911
or otherwise, to the departme nt. The department may examine, at 912
any time, documentation and other information voluntarily 913
provided by the taxpayer, its representative, or other parties, 914
information already in the department's possession, or publicly 915
available information. Examination by the department of such 916
information does not commence an audit if the review takes place 917
within 60 days of the notice of intent to conduct an audit. The 918
requirement in paragraph (a) does not limit the department from 919
making initial contact with the taxpa yer to confirm receipt of 920
the notification or to confirm the date that the audit will 921
begin. If the taxpayer believes the department prematurely 922
commenced the audit, the taxpayer must object in writing to the 923
department prior to the issuance of an assessme nt or the 924
objection is waived. If the department agrees that the audit was 925
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prematurely commenced, or a judge, hearing officer or 926
administrative law judge so determines, the tolling period 927
provided for in s. 213.345 shall be considered lifted for the 928
number of days equal to the difference between the date of 929
premature commencement of audit and the 61st day from the date 930
of the department's notice of intent to audit. 931
(7) The department may adopt rules to administer this 932
section. 933
Section 12. Paragraph (a ) of subsection (7) of section 934
212.14, Florida Statutes, is amended to read: 935
212.14 Departmental powers; hearings; distress warrants; 936
bonds; subpoenas and subpoenas duces tecum. — 937
(7)(a) For purposes of collection and enforcement of 938
taxes, penalties, an d interest levied under this chapter, the 939
department may issue subpoenas or subpoenas duces tecum 940
compelling the attendance and testimony of witnesses and the 941
production of books, records, written materials, and 942
electronically recorded information. Subpoen as shall be issued 943
with the written and signed approval of the executive director 944
or his or her designee on written and sworn application by any 945
employee of the department. The application must set forth the 946
reason for the application, the name of the pers on subpoenaed, 947
the time and place of appearance of the witness, and a 948
description of any books, records, or electronically recorded 949
information to be produced, together with a statement by the 950
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applicant that the department has unsuccessfully attempted othe r 951
reasonable means of securing information and that the testimony 952
of the witness or the written or electronically recorded 953
materials sought in the subpoena are necessary for the 954
collection of taxes, penalty, or interest or the enforcement of 955
the taxes levied under this chapter. A subpoena must shall be 956
served in the manner provided by law and by the Florida Rules of 957
Civil Procedure and is shall be returnable only during regular 958
business hours and at least 20 calendar days after the date of 959
service of the subpoena. Any subpoena to which this subsection 960
applies must shall identify the taxpayer to whom the subpoena 961
relates and to whom the records pertain and must shall provide 962
other information to enable the person subpoenaed to locate the 963
records required unde r the subpoena. The department shall give 964
notice to the taxpayer to whom the subpoena relates within 3 965
days after of the day on which the service of the subpoena is 966
made. Within 14 days after service of the subpoena, the person 967
to whom the subpoena is dire cted may serve written objection to 968
inspection or copying of any of the designated materials. If 969
objection is made, the department is shall not be entitled to 970
inspect and copy the materials, except pursuant to an order of 971
the circuit court. If an objection is made, the department may 972
petition any circuit court for an order to comply with the 973
subpoena. The subpoena must shall contain a written notice of 974
the right to object to the subpoena. Every subpoena served upon 975
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the witness or records custodian must be a ccompanied by a copy 976
of the provisions of this subsection. If a person refuses to 977
obey a subpoena or subpoena duces tecum, the department may 978
apply to any circuit court of this state to enforce compliance 979
with the subpoena. Witnesses must shall be paid mileage and 980
witness fees as authorized for witnesses in civil cases. The 981
failure of a taxpayer to provide documents available to, or 982
required to be kept by, the taxpayer and requested by a subpoena 983
issued under this section creates a presumption that the 984
resulting proposed final agency action by the department, as to 985
the requested documents, is correct and that the requested 986
documents not produced by the taxpayer would be adverse to the 987
taxpayer's position as to the proposed final agency action. The 988
department may create estimates for purposes of assessment if a 989
taxpayer fails to provide documents requested by a subpoena 990
issued under this section. The presumption and authority to 991
create estimates under this paragraph are not triggered merely 992
because a taxpayer or its representative requests a conference 993
to negotiate the production of a sample of records demanded by a 994
subpoena. 995
Section 13. Section 213.051, Florida Statutes, is amended 996
to read: 997
213.051 Service of subpoenas. — 998
(1) For the purpose of administ ering and enforcing the 999
provisions of the revenue laws of this state, the executive 1000
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director of the Department of Revenue, or any of his or her 1001
assistants designated in writing by the executive director, may 1002
shall be authorized to serve subpoenas and subpo enas duces tecum 1003
issued by the state attorney relating to investigations 1004
concerning the taxes enumerated in s. 213.05. 1005
(2) In addition to the procedures for service prescribed 1006
by chapter 48, the department may serve subpoenas it issues 1007
pursuant to ss. 202.36, 206.14, 211.125, 212.14, and 220.735 1008
upon any business registered with the department at the address 1009
on file with the department if it received correspondence from 1010
the business from that address within 30 days of issuance of the 1011
subpoena or if the ad dress is listed with the Department of 1012
State Division of Corporations as a principal or business 1013
address. If a business's address is not in this state, service 1014
is made upon proof of delivery by registered mail or under the 1015
notice provisions of s. 213.0537. 1016
Section 14. Section 213.06, Florida Statutes, is amended, 1017
to read: 1018
213.06 Rules of department; circumstances requiring 1019
emergency rules.— 1020
(1) The Department of Revenue may has the authority to 1021
adopt rules pursuant to ss. 120.536(1) and 120.54 to im plement 1022
provisions of the revenue laws. 1023
(2) The executive director of the department may adopt 1024
emergency rules pursuant to s. 120.54 on behalf of the 1025
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department when the effective date of a legislative change 1026
occurs sooner than 120 60 days after the close of a legislative 1027
session in which enacted or after the governor approves or fails 1028
to veto the legislative change, whichever is later, and the 1029
change affects a tax rate or a collection or reporting procedure 1030
which affects a substantial number of dealers o r persons subject 1031
to the tax change or procedure. The Legislature finds that such 1032
circumstances qualify as an exception to the prerequisite of a 1033
finding of immediate danger to the public health, safety, or 1034
welfare as set forth in s. 120.54(4)(a) and qualif y as 1035
circumstances requiring an emergency rule. Emergency rules 1036
adopted under this subsection are exempt from s. 120.54(4)(c), 1037
remain in effect for 6 months or until replaced by rules adopted 1038
under the nonemergency rulemaking procedures of the 1039
Administrative Procedure Act, and may be renewed during the 1040
pendency of procedures to adopt permanent rules addressing the 1041
subject of the emergency rules. 1042
(3) The grants of rulemaking authority in subsections (1) 1043
and (2) are sufficient to allow the department to ado pt rules 1044
implementing all revenue laws administered by the department. 1045
Each revenue law administered by the department is an enabling 1046
statute authorizing the department to implement it, regardless 1047
of whether the enabling statute contains its own grant of 1048
rulemaking authority. 1049
Section 15. Paragraph (b) of subsection (1) and paragraph 1050
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(a) of subsection (3) of section 213.21, Florida Statutes, are 1051
amended, and subsections (11) and (12) are added to that 1052
section, to read: 1053
213.21 Informal conferences; comp romises.— 1054
(1)(b) The statute of limitations upon the issuance of 1055
final assessments and the period for filing a claim for refund 1056
as required by s. 215.26(2) for any transactions occurring 1057
during the audit period shall be tolled during the period in 1058
which the taxpayer is engaged in a procedure under this section. 1059
(3)(a) A taxpayer's liability for any tax or interest 1060
specified in s. 72.011(1) may be compromised by the department 1061
upon the grounds of doubt as to liability for or collectibility 1062
of such tax or interest. A taxpayer's liability for interest 1063
under any of the chapters specified in s. 72.011(1) shall be 1064
settled or compromised in whole or in part whenever or to the 1065
extent that the department determines that the delay in the 1066
determination of the amoun t due is attributable to the action or 1067
inaction of the department. A taxpayer's liability for penalties 1068
under any of the chapters specified in s. 72.011(1) greater than 1069
25 percent of the tax must may be settled or compromised if it 1070
is determined by the department determines that the 1071
noncompliance is not due to reasonable cause and not to willful 1072
negligence, willful neglect, or fraud. There is a rebuttable 1073
presumption that a taxpayer's noncompliance is due to willful 1074
negligence, willful neglect, or f raud when adequate records as 1075
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requested by the department are not provided to the department 1076
before the issuance of an assessment. In addition, a taxpayer's 1077
liability for penalties under any of the chapters specified in 1078
s. 72.011(1) up to and including 25 percent of the tax may be 1079
settled or compromised if the department determines that 1080
reasonable cause exists and the penalties greater than 25 1081
percent of the tax were compromised because the noncompliance is 1082
not due to willful negligence, willful neglect, or fraud. The 1083
facts and circumstances are subject to de novo review to 1084
determine the existence of reasonable cause in any 1085
administrative proceeding or judicial action challenging an 1086
assessment of penalty under any of the chapters specified in s. 1087
72.011(1). A taxpayer who establishes reasonable reliance on the 1088
written advice issued by the department to the taxpayer is will 1089
be deemed to have shown reasonable cause for the noncompliance. 1090
In addition, a taxpayer's liability for penalties under any of 1091
the chapters specified in s. 72.011(1) in excess of 25 percent 1092
of the tax shall be settled or compromised if the department 1093
determines that the noncompliance is due to reasonable cause and 1094
not to willful negligence, willful neglect, or fraud. The 1095
department shall main tain records of all compromises, and the 1096
records shall state the basis for the compromise. The records of 1097
compromise under this paragraph are shall not be subject to 1098
disclosure pursuant to s. 119.07(1) and are shall be considered 1099
confidential information g overned by the provisions of s. 1100
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213.053. 1101
(11) Following the expiration of time for a taxpayer to 1102
challenge an assessment as provided in s. 72.011, the department 1103
may consider a request to settle or compromise any tax, 1104
interest, penalty, or other liability under this section if the 1105
taxpayer demonstrates that the failure to initiate a timely 1106
challenge was due to a qualified event that directly impacted 1107
compliance with that section. For purposes of this subsection, a 1108
qualified event is limited to the occurrence of events during an 1109
audit or the expired protest period which were beyond the 1110
control of the taxpayer, including the death or life -threatening 1111
injury or illness of the taxpayer or an immediate family member 1112
of the taxpayer; the death or life -threatening injury or illness 1113
of the responsible party that controlled, managed, or directed 1114
the affected business entity; acts of war or terrorism; natural 1115
disasters; fire; or other catastrophic loss. The department may 1116
not consider a request received more than 180 days after the 1117
expiration of time allowed under s. 72.011. 1118
(12) Any decision by the department regarding a taxpayer's 1119
request to compromise or settle a liability under this section 1120
is not a final order subject to review under chapter 120. 1121
Section 16. Section 213.34, Florida Statutes, is amended 1122
to read: 1123
213.34 Authority to audit. — 1124
(1) The Department of Revenue may shall have the authority 1125
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to audit and examine the accounts, books, or records of all 1126
persons who are subject to a revenue law made applicable to this 1127
chapter, or otherwise placed under the control and 1128
administration of the department, for the purpose of 1129
ascertaining the correctness of any return which has been filed 1130
or payment which has been made, or for the purpose of making a 1131
return where none has been made. 1132
(2) The department, or its duly authorized agents, may 1133
inspect such books and records necessary to ascertain a 1134
taxpayer's compliance with the revenue laws of this state, 1135
provided that the department's power to make an asse ssment or 1136
grant a refund has not terminated under s. 95.091(3). 1137
(a) During the course of an audit, but before the issuance 1138
of an assessment other than a jeopardy assessment, the 1139
department shall issue to the taxpayer a notice explaining the 1140
audit findings. No later than 14 days after the issuance of the 1141
notice, the taxpayer may request an exit conference in writing 1142
at a mutually agreeable date and time with the department's 1143
audit staff to discuss the audit findings. The exit conference 1144
must be conducted no later than 30 days after the date of the 1145
notice, unless the taxpayer and the department enter into an 1146
agreement to extend the audit tolling period pursuant to s. 1147
213.23. The taxpayer shall be given an opportunity at or before 1148
the exit conference to provi de additional information and 1149
documents to the department to rebut the audit findings. Upon 1150
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the mutual written agreement between the department and the 1151
taxpayer to extend the audit tolling period pursuant to s. 1152
213.23, the exit conference may be continued to allow the 1153
taxpayer additional time to provide information and documents to 1154
the department. The department shall review any information 1155
provided by the taxpayer and, if the department revises the 1156
audit findings, a copy of the revised audit findings must be 1157
provided to the taxpayer. Such revision of the audit findings 1158
does not provide a right to any additional conference. 1159
(b) If an exit conference is timely requested in writing, 1160
the limitations in s. 95.091(3) are tolled an additional 30 1161
days. If the department fails to offer a taxpayer the 1162
opportunity to hold an exit conference despite a timely written 1163
request, the limitations period in s. 95.091(3) shall not be 1164
tolled for the additional 30 days. If the assessment is issued 1165
outside of the limitations per iod, the assessment shall be 1166
reduced by the amount of those taxes, penalties, and interest 1167
for reporting periods outside of the limitations period, as 1168
modified by any other tolling or extension provisions. 1169
(c) If a request for an exit conference is not t imely 1170
made, the right to a conference is waived. A taxpayer may also 1171
affirmatively waive its right to an exit conference. Failure to 1172
hold an exit conference does not preclude the department from 1173
issuing an assessment. 1174
(d) The department may adopt rules t o implement this 1175
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subsection. 1176
(3) The department may correct by credit or refund any 1177
overpayment of tax, penalty, or interest revealed by an audit 1178
and shall make assessment of any deficiency in tax, penalty, or 1179
interest determined to be due. 1180
(4) Notwithstanding the provisions of s. 215.26, the 1181
department shall offset the overpayment of any tax during an 1182
audit period against a deficiency of any tax, penalty, or 1183
interest determined to be due during the same audit period. 1184
(5) After application of subsecti on (4), if the 1185
department's audit finds that the tax paid is more than the 1186
correct amount, the department shall refund the overpayment that 1187
is within the applicable period provided by s. 215.26. Such 1188
action by the department does not prevent a taxpayer fro m 1189
challenging the amount of the refund pursuant to chapters 120 1190
and 213 or applying for a refund of additional tax within the 1191
applicable period. 1192
Section 17. Subsections (1), (3), and (6) of section 1193
213.67, Florida Statutes, are amended to read: 1194
213.67 Garnishment.— 1195
(1) If a person is delinquent in the payment of any taxes, 1196
penalties, and interest, additional daily accrued interest, 1197
costs, and fees owed to the department, the executive director 1198
or his or her designee may give notice of the amount of such 1199
delinquency by registered mail, by personal service, or by 1200
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electronic means, including, but not limited to, facsimile 1201
transmissions, electronic data interchange, or use of the 1202
Internet, to all persons having in their possession or under 1203
their control any credits or personal property, exclusive of 1204
wages, belonging to the delinquent taxpayer, or owing any debts 1205
to such delinquent taxpayer at the time of receipt by them of 1206
such notice. Thereafter, any person who has been notified may 1207
not transfer or make any other disposition of such credits, 1208
other personal property, or debts until the executive director 1209
or his or her designee consents to a transfer or disposition or 1210
until 60 days after the receipt of such notice. However, the 1211
credits, other personal prope rty, or debts that exceed the 1212
delinquent amount stipulated in the notice are not subject to 1213
this section, wherever held, if the taxpayer does not have a 1214
prior history of tax delinquencies. If during the effective 1215
period of the notice to withhold, any perso n so notified makes 1216
any transfer or disposition of the property or debts required to 1217
be withheld under this section, he or she is liable to the state 1218
for any indebtedness owed to the department by the person with 1219
respect to whose obligation the notice was given to the extent 1220
of the value of the property or the amount of the debts thus 1221
transferred or paid if, solely by reason of such transfer or 1222
disposition, the state is unable to recover the indebtedness of 1223
the person with respect to whose obligation the no tice was 1224
given. If the delinquent taxpayer contests the intended levy in 1225
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circuit court or under chapter 120, the notice under this 1226
section remains effective until that final resolution of the 1227
contest. Any financial institution receiving such notice 1228
maintains will maintain a right of setoff for any transaction 1229
involving a debit card occurring on or before the date of 1230
receipt of such notice. 1231
(3) During the last 30 days of the 60 -day period set forth 1232
in subsection (1), the executive director or his or her de signee 1233
may levy upon such credits, other personal property, or debts. 1234
The levy must be accomplished by delivery of a notice of levy by 1235
registered mail, by personal service, or by electronic means, 1236
including, but not limited to, facsimile transmission, 1237
electronic data exchange, or use of the Internet. Upon receipt 1238
of the notice of levy, which the person possessing the credits, 1239
other personal property, or debts shall transfer them to the 1240
department or pay to the department the amount owed to the 1241
delinquent taxpayer. 1242
(6)(a) Levy may be made under subsection (3) upon credits, 1243
other personal property, or debt of any person with respect to 1244
any unpaid tax, penalties, and interest, additional daily 1245
accrued interest, costs, and fees only after the executive 1246
director or his or her designee has notified such person in 1247
writing of the intention to make such levy. 1248
(b) No less than 30 days before the day of the levy, the 1249
notice of intent to levy required under paragraph (a) must shall 1250
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be given in person or sent by certi fied or registered mail to 1251
the person's last known address. 1252
(c) The notice required in paragraph (a) must include a 1253
brief statement that sets forth in simple and nontechnical 1254
terms: 1255
1. The provisions of this section relating to levy and 1256
sale of property; 1257
2. The procedures applicable to the levy under this 1258
section; 1259
3. The administrative and judicial appeals available to 1260
the taxpayer with respect to such levy and sale, and the 1261
procedures relating to such appeals; and 1262
4. Any The alternatives, if any, available to taxpayers 1263
which could prevent levy on the property. 1264
Section 18. Section 213.345, Florida Statutes, is amended 1265
to read: 1266
213.345 Tolling of periods during an audit. —The 1267
limitations in s. 95.091(3) and the period for filing a claim 1268
for refund as required by s. 215.26(2) are shall be tolled for a 1269
period of 1 year if the Department of Revenue has, on or after 1270
July 1, 1999, issued a notice of intent to conduct an audit or 1271
investigation of the taxpayer's account within the applicable 1272
period of time. The 1-year period is tolled upon recei pt of 1273
written objections to the subpoena and for the entire pendency 1274
of any action that seeks an order to enforce compliance with or 1275
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to challenge any subpoena issued by the department compelling 1276
the attendance and testimony of witnesses and the production of 1277
books, records, written materials, and electronically recorded 1278
information. The department must commence an audit within 120 1279
days after it issues a notice of intent to conduct an audit, 1280
unless the taxpayer requests a delay. If the taxpayer does not 1281
request a delay and the department does not begin the audit 1282
within 120 days after issuing the notice, the tolling period 1283
terminates shall terminate unless the taxpayer and the 1284
department enter into an agreement to extend the period pursuant 1285
to s. 213.23. If the department issues a notice explaining audit 1286
findings under s. 213.34(2)(a) based on an estimate because the 1287
taxpayer has failed or refuses to provide records, the audit 1288
will be deemed to have commenced for purposes of this section. 1289
In the event the depar tment issues an assessment beyond the 1290
tolling period, the assessment will be considered late and the 1291
assessment shall be reduced by the amount of those taxes, 1292
penalties, and interest for reporting periods outside of the 1293
limitations period, as modified by a ny other tolling or 1294
extension provisions . 1295
Section 19. Section 220.42, Florida Statutes, is amended 1296
to read: 1297
220.42 Methods of accounting. — 1298
(1) For purposes of this code, a taxpayer's method of 1299
accounting must shall be the same as such taxpayer's me thod of 1300
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accounting for federal income tax purposes , except as provided 1301
in subsection (3). If no method of accounting has been regularly 1302
used by a taxpayer, net income for purposes of this code must 1303
shall be computed by the such method that as in the opinion of 1304
the department determines most fairly reflects income. 1305
(2) If a taxpayer's method of accounting is changed for 1306
federal income tax purposes, the taxpayer's method of accounting 1307
for purposes of this code must shall be similarly changed. 1308
(3) Any taxpayer which has elected for federal income tax 1309
purposes to report any portion of its income on the completed 1310
contract method of accounting under Treasury Regulation 1.451 -1311
3(b)(2) may elect to return the income so reported on the 1312
percentage of completion method of accounting under Treasury 1313
Regulation 1.451-3(b)(1), provided the taxpayer regularly 1314
maintains its books of account and reports to its shareholders 1315
on the percentage of completion method. The election provided by 1316
this subsection shall be allowed only if it is made, in such 1317
manner as the department may prescribe, not later than the due 1318
date, including any extensions thereof, for filing a return for 1319
the taxpayer's first taxable year under this code in which a 1320
portion of its income is returned on the completed contract 1321
method of accounting for federal tax purposes. An election made 1322
pursuant to this subsection shall apply to all subsequent 1323
taxable years of the taxpayers unless the department consents in 1324
writing to its revocation. 1325
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Section 20. Subsection (4) is added to section 220.735, 1326
Florida Statutes, to read: 1327
220.735 Production of witnesses and records. — 1328
(4) The failure of a taxpayer to provide documents 1329
available to, or required to be kept by, the taxpayer and 1330
requested by a subpoena issued u nder this section creates a 1331
presumption that the resulting proposed final agency action by 1332
the department, as to the requested documents, is correct and 1333
that the requested documents not produced by the taxpayer would 1334
be adverse to the taxpayer's position a s to the proposed final 1335
agency action. The department may create estimates for purposes 1336
of assessment if a taxpayer fails to provide documents requested 1337
by a subpoena issued under this section. 1338
Section 21. Paragraph (e) of subsection (3) of section 1339
443.131, Florida Statutes, is amended to read: 1340
443.131 Contributions. — 1341
(3) VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT 1342
EXPERIENCE.— 1343
(e) Assignment of variations from the standard rate. — 1344
1. As used in this paragraph, the terms "total benefit 1345
payments," "benefits paid to an individual," and "benefits 1346
charged to the employment record of an employer" mean the amount 1347
of benefits paid to individuals multiplied by: 1348
a. For benefits paid before prior to July 1, 2007, 1. 1349
b. For benefits paid during the period beginning on July 1350
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1, 2007, and ending March 31, 2011, 0.90. 1351
c. For benefits paid after March 31, 2011, 1. 1352
d. For benefits paid during the period beginning April 1, 1353
2020, and ending December 31, 2020, 0. 1354
e. For benefits paid during the period b eginning January 1355
1, 2021, and ending June 30, 2021, 1, except as otherwise 1356
adjusted in accordance with paragraph (f). 1357
2. For the calculation of contribution rates effective 1358
January 1, 2012, and thereafter: 1359
a. The tax collection service provider shall a ssign a 1360
variation from the standard rate of contributions for each 1361
calendar year to each eligible employer. In determining the 1362
contribution rate, varying from the standard rate to be assigned 1363
each employer, adjustment factors computed under sub -sub-1364
subparagraphs (I)-(IV) are added to the benefit ratio. This 1365
addition shall be accomplished in two steps by adding a variable 1366
adjustment factor and a final adjustment factor. The sum of 1367
these adjustment factors computed under sub -sub-subparagraphs 1368
(I)-(IV) shall first be algebraically summed. The sum of these 1369
adjustment factors shall next be divided by a gross benefit 1370
ratio determined as follows: Total benefit payments for the 3 -1371
year period described in subparagraph (b)3. are charged to 1372
employers eligible for a var iation from the standard rate, minus 1373
excess payments for the same period, divided by taxable payroll 1374
entering into the computation of individual benefit ratios for 1375
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the calendar year for which the contribution rate is being 1376
computed. The ratio of the sum of the adjustment factors 1377
computed under sub-sub-subparagraphs (I)-(IV) to the gross 1378
benefit ratio is multiplied by each individual benefit ratio 1379
that is less than the maximum contribution rate to obtain 1380
variable adjustment factors; except that if the sum of an 1381
employer's individual benefit ratio and variable adjustment 1382
factor exceeds the maximum contribution rate, the variable 1383
adjustment factor is reduced in order for the sum to equal the 1384
maximum contribution rate. The variable adjustment factor for 1385
each of these employers is multiplied by his or her taxable 1386
payroll entering into the computation of his or her benefit 1387
ratio. The sum of these products is divided by the taxable 1388
payroll of the employers who entered into the computation of 1389
their benefit ratios. Th e resulting ratio is subtracted from the 1390
sum of the adjustment factors computed under sub -sub-1391
subparagraphs (I)-(IV) to obtain the final adjustment factor. 1392
The variable adjustment factors and the final adjustment factor 1393
must be computed to five decimal pla ces and rounded to the 1394
fourth decimal place. This final adjustment factor is added to 1395
the variable adjustment factor and benefit ratio of each 1396
employer to obtain each employer's contribution rate. An 1397
employer's contribution rate may not, however, be rounde d to 1398
less than 0.1 percent. In determining the contribution rate, 1399
varying from the standard rate to be assigned, the computation 1400
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shall exclude any benefit that is excluded by the multipliers 1401
under subparagraph (b)2. and subparagraph 1. for rates effective 1402
January 1, 2021, through December 31, 2025, notwithstanding the 1403
repeal of subparagraph 5. as provided in chapter 2021 -2, Laws of 1404
Florida. The computation of the contribution rate, varying from 1405
the standard rate to be assigned, shall also exclude any benefi t 1406
paid as a result of a governmental order related to COVID -19 to 1407
close or reduce capacity of a business. In addition, the 1408
contribution rate for the 2021 and 2022 calendar years shall be 1409
calculated without the application of the positive adjustment 1410
factor in sub-sub-subparagraph (III). 1411
(I) An adjustment factor for noncharge benefits is 1412
computed to the fifth decimal place and rounded to the fourth 1413
decimal place by dividing the amount of noncharge benefits 1414
during the 3-year period described in subparagraph (b)3. by the 1415
taxable payroll of employers eligible for a variation from the 1416
standard rate who have a benefit ratio for the current year 1417
which is less than the maximum contribution rate. For purposes 1418
of computing this adjustment factor, the taxable payroll of 1419
these employers is the taxable payrolls for the 3 years ending 1420
June 30 of the current calendar year as reported to the tax 1421
collection service provider by September 30 of the same calendar 1422
year. As used in this sub -sub-subparagraph, the term "noncharge 1423
benefits" means benefits paid to an individual, as adjusted 1424
pursuant to subparagraph (b)2. and subparagraph 1., from the 1425
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Unemployment Compensation Trust Fund which were not charged to 1426
the employment record of any employer, but excluding any benefit 1427
paid as a result of a governmental order related to COVID -19 to 1428
close or reduce capacity of a business. 1429
(II) An adjustment factor for excess payments is computed 1430
to the fifth decimal place, and rounded to the fourth decimal 1431
place by dividing the total excess pay ments during the 3-year 1432
period described in subparagraph (b)3. by the taxable payroll of 1433
employers eligible for a variation from the standard rate who 1434
have a benefit ratio for the current year which is less than the 1435
maximum contribution rate. For purposes of computing this 1436
adjustment factor, the taxable payroll of these employers is the 1437
same figure used to compute the adjustment factor for noncharge 1438
benefits under sub-sub-subparagraph (I). As used in this sub -1439
subparagraph, the term "excess payments" means t he amount of 1440
benefits charged to the employment record of an employer, as 1441
adjusted pursuant to subparagraph (b)2. and subparagraph 1., 1442
during the 3-year period described in subparagraph (b)3., but 1443
excluding any benefit paid as a result of a governmental or der 1444
related to COVID-19 to close or reduce capacity of a business, 1445
less the product of the maximum contribution rate and the 1446
employer's taxable payroll for the 3 years ending June 30 of the 1447
current calendar year as reported to the tax collection service 1448
provider by September 30 of the same calendar year. As used in 1449
this sub-sub-subparagraph, the term "total excess payments" 1450
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means the sum of the individual employer excess payments for 1451
those employers that were eligible for assignment of a 1452
contribution rate different from the standard rate. 1453
(III) With respect to computing a positive adjustment 1454
factor: 1455
(A) Beginning January 1, 2012, if the balance of the 1456
Unemployment Compensation Trust Fund on September 30 of the 1457
calendar year immediately preceding the cale ndar year for which 1458
the contribution rate is being computed is less than 4 percent 1459
of the taxable payrolls for the year ending June 30 as reported 1460
to the tax collection service provider by September 30 of that 1461
calendar year, a positive adjustment factor sh all be computed. 1462
The positive adjustment factor is computed annually to the fifth 1463
decimal place and rounded to the fourth decimal place by 1464
dividing the sum of the total taxable payrolls for the year 1465
ending June 30 of the current calendar year as reported t o the 1466
tax collection service provider by September 30 of that calendar 1467
year into a sum equal to one -fifth of the difference between the 1468
balance of the fund as of September 30 of that calendar year and 1469
the sum of 5 percent of the total taxable payrolls for that 1470
year. The positive adjustment factor remains in effect for 1471
subsequent years until the balance of the Unemployment 1472
Compensation Trust Fund as of September 30 of the year 1473
immediately preceding the effective date of the contribution 1474
rate equals or exceed s 4 percent of the taxable payrolls for the 1475
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year ending June 30 of the current calendar year as reported to 1476
the tax collection service provider by September 30 of that 1477
calendar year. 1478
(B) Beginning January 1, 2018, and for each year 1479
thereafter, the positi ve adjustment shall be computed by 1480
dividing the sum of the total taxable payrolls for the year 1481
ending June 30 of the current calendar year as reported to the 1482
tax collection service provider by September 30 of that calendar 1483
year into a sum equal to one -fourth of the difference between 1484
the balance of the fund as of September 30 of that calendar year 1485
and the sum of 5 percent of the total taxable payrolls for that 1486
year. The positive adjustment factor remains in effect for 1487
subsequent years until the balance of t he Unemployment 1488
Compensation Trust Fund as of September 30 of the year 1489
immediately preceding the effective date of the contribution 1490
rate equals or exceeds 4 percent of the taxable payrolls for the 1491
year ending June 30 of the current calendar year as reporte d to 1492
the tax collection service provider by September 30 of that 1493
calendar year. 1494
(IV) If, beginning January 1, 2015, and each year 1495
thereafter, the balance of the Unemployment Compensation Trust 1496
Fund as of September 30 of the year immediately preceding the 1497
calendar year for which the contribution rate is being computed 1498
exceeds 5 percent of the taxable payrolls for the year ending 1499
June 30 of the current calendar year as reported to the tax 1500
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collection service provider by September 30 of that calendar 1501
year, a negative adjustment factor must be computed. The 1502
negative adjustment factor shall be computed annually beginning 1503
on January 1, 2015, and each year thereafter, to the fifth 1504
decimal place and rounded to the fourth decimal place by 1505
dividing the sum of the tot al taxable payrolls for the year 1506
ending June 30 of the current calendar year as reported to the 1507
tax collection service provider by September 30 of the calendar 1508
year into a sum equal to one -fourth of the difference between 1509
the balance of the fund as of Sept ember 30 of the current 1510
calendar year and 5 percent of the total taxable payrolls of 1511
that year. The negative adjustment factor remains in effect for 1512
subsequent years until the balance of the Unemployment 1513
Compensation Trust Fund as of September 30 of the ye ar 1514
immediately preceding the effective date of the contribution 1515
rate is less than 5 percent, but more than 4 percent of the 1516
taxable payrolls for the year ending June 30 of the current 1517
calendar year as reported to the tax collection service provider 1518
by September 30 of that calendar year. The negative adjustment 1519
authorized by this section is suspended in any calendar year in 1520
which repayment of the principal amount of an advance received 1521
from the federal Unemployment Compensation Trust Fund under 42 1522
U.S.C. s. 1321 is due to the Federal Government. 1523
(V) The maximum contribution rate that may be assigned to 1524
an employer is 5.4 percent, except employers participating in an 1525
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approved short-time compensation plan may be assigned a maximum 1526
contribution rate that is 1 percent greater than the maximum 1527
contribution rate for other employers in any calendar year in 1528
which short-time compensation benefits are charged to the 1529
employer's employment record. 1530
(VI) As used in this subsection, "taxable payroll" shall 1531
be determined by excluding any part of the remuneration paid to 1532
an individual by an employer for employment during a calendar 1533
year in excess of the first $7,000. Beginning January 1, 2012, 1534
"taxable payroll" shall be determined by excluding any part of 1535
the remuneration paid to an individual by an employer for 1536
employment during a calendar year as described in s. 1537
443.1217(2). For the purposes of the employer rate calculation 1538
that will take effect in January 1, 2012, and in January 1, 1539
2013, the tax collection service provide r shall use the data 1540
available for taxable payroll from 2009 based on excluding any 1541
part of the remuneration paid to an individual by an employer 1542
for employment during a calendar year in excess of the first 1543
$7,000, and from 2010 and 2011, the data availabl e for taxable 1544
payroll based on excluding any part of the remuneration paid to 1545
an individual by an employer for employment during a calendar 1546
year in excess of the first $8,500. 1547
b. If the transfer of an employer's employment record to 1548
an employing unit und er paragraph (g) which, before the 1549
transfer, was an employer, the tax collection service provider 1550
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shall recompute a benefit ratio for the successor employer based 1551
on the combined employment records and reassign an appropriate 1552
contribution rate to the succe ssor employer effective on the 1553
first day of the calendar quarter immediately after the 1554
effective date of the transfer. 1555
3. The tax collection service provider shall reissue rates 1556
for the 2021 calendar year. However, an employer shall continue 1557
to timely file its employer's quarterly reports and pay the 1558
contributions due in a timely manner in accordance with the 1559
rules of the Department of Economic Opportunity. The Department 1560
of Revenue shall post the revised rates on its website to enable 1561
employers to securely review the revised rates. For 1562
contributions for the first quarter of the 2021 calendar year, 1563
if any employer remits to the tax collection service provider an 1564
amount in excess of the amount that would be due as calculated 1565
pursuant to this paragraph, the tax collection service provider 1566
shall refund the excess amount from the amount erroneously 1567
collected. Notwithstanding s. 443.141(6), refunds issued through 1568
August 31, 2021, for first quarter 2021 contributions must be 1569
paid from the General Revenue Fund. 1570
4. The tax collection service provider shall calculate and 1571
assign contribution rates effective January 1, 2022, through 1572
December 31, 2022, excluding any benefit charge that is excluded 1573
by the multipliers under subparagraph (b)2. and subparagraph 1.; 1574
without the application of the positive adjustment factor in 1575
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sub-sub-subparagraph 2.a.(III); and without the inclusion of any 1576
benefit charge directly related to COVID -19 as a result of a 1577
governmental order to close or reduce capacity of a business, as 1578
determined by the Department of Economic Opportunity, for each 1579
employer who is eligible for a variation from the standard rate 1580
pursuant to paragraph (d). The Department of Economic 1581
Opportunity shall provide the tax collection service provider 1582
with all necessary bene fit charge information by August 1, 2021, 1583
including specific information for adjustments related to COVID -1584
19 charges resulting from a governmental order to close or 1585
reduce capacity of a business, to enable the tax collection 1586
service provider to calculate a nd issue tax rates effective 1587
January 1, 2022. The tax collection service provider shall 1588
calculate and post rates for the 2022 calendar year by March 1, 1589
2022. 1590
5. Subject to subparagraph 6., the tax collection service 1591
provider shall calculate and assign co ntribution rates effective 1592
January 1, 2023, through December 31, 2025, excluding any 1593
benefit charge that is excluded by the multipliers under 1594
subparagraph (b)2. and subparagraph 1.; without the application 1595
of the positive adjustment factor in sub -sub-subparagraph 1596
2.a.(III); and without the inclusion of any benefit charge 1597
directly related to COVID -19 as a result of a governmental order 1598
to close or reduce capacity of a business, as determined by the 1599
Department of Economic Opportunity, for each employer who is 1600
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eligible for a variation from the standard rate pursuant to 1601
paragraph (d). The Department of Economic Opportunity shall 1602
provide the tax collection service provider with all necessary 1603
benefit charge information by August 1 of each year, including 1604
specific information for adjustments related to COVID -19 charges 1605
resulting from a governmental order to close or reduce capacity 1606
of a business, to enable the tax collection service provider to 1607
calculate and issue tax rates effective the following January. 1608
6. If the balance of the Unemployment Compensation Trust 1609
Fund on June 30 of any year exceeds $4,071,519,600, subparagraph 1610
5. is repealed for rates effective the following years. The 1611
Office of Economic and Demographic Research shall advise the tax 1612
collection service provider of the balance of the trust fund on 1613
June 30 by August 1 of that year. After the repeal of 1614
subparagraph 5. and notwithstanding the dates specified in that 1615
subparagraph, the tax collection service provider shall 1616
calculate and assign contribution rates for each subsequent 1617
calendar year as otherwise provided in this section. 1618
Section 22. Paragraph (a) of subsection (9) of section 1619
443.171, Florida Statutes, is amended to read: 1620
443.171 Department of Economic Opportunity and commission; 1621
powers and duties; records and reports; proceedings; state -1622
federal cooperation. — 1623
(9) STATE-FEDERAL COOPERATION. — 1624
(a)1. In the administration of this chapter, the 1625
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Department of Economic Opportunity and its tax collection 1626
service provider shall cooperate with the United States 1627
Department of Labor to the fullest extent consistent with this 1628
chapter and shall take those actions, through the adoption of 1629
appropriate rules, administrative methods, and standards, 1630
necessary to secure for this state all advantages availabl e 1631
under the provisions of federal law relating to reemployment 1632
assistance. 1633
2. In the administration of the provisions in s. 443.1115, 1634
which are enacted to conform with the Federal -State Extended 1635
Unemployment Compensation Act of 1970, the department shall take 1636
those actions necessary to ensure that those provisions are 1637
interpreted and applied to meet the requirements of the federal 1638
act as interpreted by the United States Department of Labor and 1639
to secure for this state the full reimbursement of the federal 1640
share of extended benefits paid under this chapter which is 1641
reimbursable under the federal act. 1642
3. The department and its tax collection service provider 1643
shall comply with the regulations of the United States 1644
Department of Labor relating to the receipt or expenditure by 1645
this state of funds granted under federal law; shall submit the 1646
reports in the form and containing the information the United 1647
States Department of Labor requires; and shall comply with 1648
directions of the United States Department of Labor n ecessary to 1649
assure the correctness and verification of these reports. 1650
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4. The department and its tax collection service provider 1651
shall comply with the requirements of the federal Treasury 1652
Offset Program as it pertains to the recovery of unemployment 1653
compensation debts as required by the United States Department 1654
of Labor pursuant to 26 U.S.C. 6402. The department or the tax 1655
collection service provider may adopt rules to implement this 1656
subparagraph. 1657
Section 23. Effective January 1, 2023, paragraph (b) of 1658
subsection (1) of section 624.515, Florida Statutes, is amended 1659
to read: 1660
624.515 State Fire Marshal regulatory assessment and 1661
surcharge; levy and amount. — 1662
(1) 1663
(b)1. Annually before the due date of the first 1664
installment, the department, with the assis tance of the office, 1665
shall make available in an electronic format or otherwise the 1666
percentage of fire insurance contained within lines of insurance 1667
for the industry for that taxable year. The percentages 1668
determined by the office shall be exempt from chapte r 120. 1669
2. Insurers may choose to use their own previous 5 years 1670
of loss experience or rate filings that have been approved by 1671
the office instead of using the percentages provided by the 1672
department pursuant to subparagraph 1. However, if an insurer 1673
chooses not to use the percentages provided by the department, 1674
it must use the same alternative method for all lines of 1675
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business, continue using the method for a minimum of 3 1676
consecutive tax years, and attach documentation of the 1677
calculation and determination to the tax return When it is 1678
impractical, due to the nature of the business practices within 1679
the insurance industry, to determine the percentage of fire 1680
insurance contained within a line of insurance written by an 1681
insurer on risks located or resident in Flor ida, the Department 1682
of Revenue may establish by rule such percentages for the 1683
industry. The Department of Revenue may also amend the 1684
percentages as the insurance industry changes its practices 1685
concerning the portion of fire insurance within a line of 1686
insurance. 1687
Section 24. Paragraph (c) of subsection (1) of section 1688
220.183, Florida Statutes, is amended to read: 1689
220.183 Community contribution tax credit. — 1690
(1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX 1691
CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM 1692
SPENDING.— 1693
(c) The total amount of tax credit which may be granted 1694
for all programs approved under this section, s. 212.08(5)(o) s. 1695
212.08(5)(p), and s. 624.5105 is $12.5 million in the 2018 -2019 1696
fiscal year, $13.5 million in the 2019 -2020 fiscal year, and 1697
$10.5 million in each fiscal year thereafter for projects that 1698
provide housing opportunities for persons with special needs as 1699
defined in s. 420.0004 and homeownership opportunities for low -1700
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income households or very -low-income households as defined in s. 1701
420.9071 and $3.5 million each fiscal year for all other 1702
projects. 1703
Section 25. Paragraph (c) of subsection (2) of section 1704
288.0001, Florida Statutes, is amended to read: 1705
288.0001 Economic Development Programs Evaluation. —The 1706
Office of Economic and Demographic Research and the Office of 1707
Program Policy Analysis and Government Accountability (OPPAGA) 1708
shall develop and present to the Governor, the President of the 1709
Senate, the Speaker of the House of Representatives, and the 1710
chairs of the legislative appropriations committees the Economic 1711
Development Programs Evaluation. 1712
(2) The Office of Economic and Demographic Research and 1713
OPPAGA shall provide a detailed analysis of economic development 1714
programs as provided in the following schedule: 1715
(c) By January 1, 2016, and every 3 years thereafter, an 1716
analysis of the following: 1717
1. The qualified defense contractor and space flight 1718
business tax refund program established under s. 288.1045. 1719
2. The tax exemption for semiconductor, defense, or space 1720
technology sales established under s. 212.08(5)(i) s. 1721
212.08(5)(j). 1722
3. The Military Base Protection Program established under 1723
s. 288.980. 1724
4. The Quick Response Training Program established under 1725
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s. 288.047. 1726
5. The Incumbent Worker Training Program e stablished under 1727
s. 445.003. 1728
6. International trade and business development programs 1729
established or funded under s. 288.826. 1730
Section 26. Paragraph (a) of subsection (9) of section 1731
290.0056, Florida Statutes, is amended to read: 1732
290.0056 Enterprise zone development agency. — 1733
(9) The following powers and responsibilities shall be 1734
performed by the governing body creating the enterprise zone 1735
development agency acting as the managing agent of the 1736
enterprise zone development agency, or, contingent upon approval 1737
by such governing body, such powers and responsibilities shall 1738
be performed by the enterprise zone development agency: 1739
(a) To review, process, and certify applications for state 1740
enterprise zone tax incentives pursuant to ss. 212.08(5)(g) and 1741
(15); 212.096; 220.181; and 220.182 ss. 212.08(5)(g), (h), and 1742
(15); 212.096; 220.181; and 220.182 . 1743
Section 27. Subsections (4) and (5) of section 290.007, 1744
Florida Statutes, are amended to read: 1745
290.007 State incentives available in enterprise zones. —1746
The following incentives are provided by the state to encourage 1747
the revitalization of enterprise zones: 1748
(4) The sales tax exemption for building materials used in 1749
the rehabilitation of real property in enterprise zones provided 1750
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in s. 212.08(5)(g). 1751
(5) The sales tax exemption for business equipment used in 1752
an enterprise zone provided in s. 212.08(5)(g) s. 212.08(5)(h). 1753
Section 28. Paragraph (a) of subsection (4) of section 1754
377.809, Florida Statutes, is amended to read: 1755
377.809 Energy Economic Zon e Pilot Program.— 1756
(4)(a) Beginning July 1, 2012, all the incentives and 1757
benefits provided for enterprise zones pursuant to state law 1758
shall be available to the energy economic zones designated 1759
pursuant to this section on or before July 1, 2010. In order t o 1760
provide incentives, by March 1, 2012, each local governing body 1761
that has jurisdiction over an energy economic zone must, by 1762
local ordinance, establish the boundary of the energy economic 1763
zone, specify applicable energy -efficiency standards, and 1764
determine eligibility criteria for the application of state and 1765
local incentives and benefits in the energy economic zone. 1766
However, in order to receive benefits provided under s. 288.106, 1767
a business must be a qualified target industry business under s. 1768
288.106 for state purposes. An energy economic zone's boundary 1769
may be revised by local ordinance. Such incentives and benefits 1770
include those in ss. 212.08, 212.096, 220.181, 220.182, 220.183, 1771
288.106, and 624.5105 and the public utility discounts provided 1772
in s. 290.007(7) s. 290.007(8). The exemption provided in s. 1773
212.08(5)(c) shall be for renewable energy as defined in s. 1774
377.803. For purposes of this section, any applicable 1775
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requirements for employee residency for higher refund or credit 1776
thresholds must be based on e mployee residency in the energy 1777
economic zone or an enterprise zone. A business in an energy 1778
economic zone may also be eligible for funding under ss. 288.047 1779
and 445.003, and a transportation project in an energy economic 1780
zone shall be provided priority in funding under s. 339.2821. 1781
Other projects shall be given priority ranking to the extent 1782
practicable for grants administered under state energy programs. 1783
Section 29. Paragraph (c) of subsection (1) of section 1784
624.5105, Florida Statutes, is amended to r ead: 1785
624.5105 Community contribution tax credit; authorization; 1786
limitations; eligibility and application requirements; 1787
administration; definitions; expiration. — 1788
(1) AUTHORIZATION TO GRANT TAX CREDITS; LIMITATIONS. — 1789
(c) The total amount of tax credit which may be granted 1790
for all programs approved under this section and ss. 1791
212.08(5)(o) and 220.183 ss. 212.08(5)(p) and 220.183 is $12.5 1792
million in the 2018-2019 fiscal year, $13.5 million in the 2019 -1793
2020 fiscal year, and $10.5 million in each fiscal year 1794
thereafter for projects that provide housing opportunities for 1795
persons with special needs as defined in s. 420.0004 or 1796
homeownership opportunities for low -income or very-low-income 1797
households as defined in s. 420.9071 and $3.5 million each 1798
fiscal year for all other projects. 1799
Section 30. Subsection (1) of section 1011.94, Florida 1800
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Statutes, is amended to read: 1801
1011.94 University Major Gifts Program. — 1802
(1) There is established a University Major Gifts Program. 1803
The purpose of the program is to enable ea ch university to 1804
provide donors with an incentive in the form of matching grants 1805
for donations for the establishment of permanent endowments and 1806
sales tax exemption matching funds received pursuant to s. 1807
212.08(5)(i) s. 212.08(5)(j), which must be invested , with the 1808
proceeds of the investment used to support libraries and 1809
instruction and research programs, as defined by the Board of 1810
Governors. 1811
Section 31. Except as otherwise provided in this act, this 1812
act shall take effect July 1, 2022. 1813