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F L 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
amending s. 202.34, F.S.; authorizing the department 8
to respond to contact initiated by taxpayers to 9
discuss audits; authorizing taxpayers to provide 10
records and other information; authorizing the 11
department to examine documentation and other 12
information received; authorizing the department to 13
adopt rules; amending ss. 202.36, 206.14, 211.125, 14
212.14, and 220.735, F.S.; specifying instances under 15
which an assessment or amount by the department is 16
deemed prima facie correct; creating a presumption; 17
authorizing the department to use estimates for 18
purposes of assessment under certain circumstances; 19
amending s. 206.9931, F.S.; deleting obsolete 20
language; amending s. 212.05, F.S.; revising 21
requirements for an affidavit; amending s. 212.13, 22
F.S.; requiring certain dealers to maintain specified 23
records; providing construction; requiring the 24
department to notify the Division of Alcoholic 25
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Beverages and Tobacco and dealers upon dealers' 26
failure to comply with depart ment requests for 27
records; authorizing the department to suspend resale 28
certificates issued to dealers under certain 29
circumstances; authorizing dealers to apply for 30
administrative hearings under certain circumstances; 31
authorizing the department to respond to contact 32
initiated by taxpayers to discuss audits; authorizing 33
taxpayers to provide records and other information; 34
authorizing the department to examine documentation 35
and other information received; authorizing the 36
department to adopt rules; amending s. 213.051, F.S.; 37
authorizing the department to serve subpoenas on 38
businesses registered with the department; amending s. 39
213.06, F.S.; revising the period in which, and 40
conditions under which, the executive director of the 41
department may adopt emergency rule s; providing for an 42
exemption, the effectiveness, and the renewal of 43
emergency rules; providing construction; amending s. 44
213.21, F.S.; addressing the statute of limitations 45
for issuing assessments; authorizing a taxpayer's 46
liability to be settled or compr omised under certain 47
circumstances; creating a rebuttable presumption; 48
specifying the conditions for the department to 49
consider requests to settle or compromise any tax, 50
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interest, penalty, or other liability; providing 51
construction; amending s. 213.34, F.S .; revising audit 52
procedures of the department; authorizing the 53
department to adopt rules; amending s. 213.67, F.S.; 54
authorizing the executive director of the department 55
or his or her designee to include additional daily 56
accrued interest, costs, and fees i n a garnishment 57
levy notice; revising methods for delivery of levy 58
notices; amending s. 213.345, F.S.; specifying 59
conditions under which a period is tolled during an 60
audit; amending s. 220.42, F.S.; deleting obsolete 61
language; amending s. 443.131, F.S.; ex cluding certain 62
benefit charges from the employer reemployment 63
assistance contribution rate calculation; amending s. 64
443.171, F.S.; requiring the department and its tax 65
collection service provider to comply with 66
requirements of the federal Treasury Offset Program; 67
authorizing the department or the tax collection 68
service provider to adopt rules; providing an 69
effective date. 70
71
Be It Enacted by the Legislature of the State of Florida: 72
73
Section 1. Paragraph (c) is added to subsection (1) of 74
section 72.011, Florida Statutes, to read: 75
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72.011 Jurisdiction of circuit courts in specific tax 76
matters; administrative hearings and appeals; time for 77
commencing action; parties; deposits. — 78
(1) 79
(c) A taxpayer may not submit records pertaining to an 80
assessment or refund claim as evidence in any proceeding under 81
this section if those records were available to, or required to 82
be kept by, the taxpayer and were not timely provided to the 83
Department of Revenue after a written request for the records 84
during the audit or protest period and before submission of a 85
petition for hearing pursuant to chapter 120 or the filing of an 86
action under paragraph (a). 87
Section 2. Paragraph (b) of subsection (14) of section 88
120.80, Florida Statutes, is amended to read: 89
120.80 Exceptions and special requirements; agencies. — 90
(14) DEPARTMENT OF REVENUE. — 91
(b) Taxpayer contest proceedings. — 92
1. In any administrative proceeding brought pursuant to 93
this chapter as authorized by s. 72.011(1), the taxpayer shall 94
be designated the "petitio ner" and the Department of Revenue 95
shall be designated the "respondent," except that for actions 96
contesting an assessment or denial of refund under chapter 207, 97
the Department of Highway Safety and Motor Vehicles shall be 98
designated the "respondent," and f or actions contesting an 99
assessment or denial of refund under chapters 210, 550, 561, 100
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562, 563, 564, and 565, the Department of Business and 101
Professional Regulation shall be designated the "respondent." 102
2. In any such administrative proceeding, the appli cable 103
department's burden of proof, except as otherwise specifically 104
provided by general law, shall be limited to a showing that an 105
assessment has been made against the taxpayer and the factual 106
and legal grounds upon which the applicable department made th e 107
assessment. 108
3.a. Before Prior to filing a petition under this chapter, 109
the taxpayer shall pay to the applicable department the amount 110
of taxes, penalties, and accrued interest assessed by that 111
department which are not being contested by the taxpayer. 112
Failure to pay the uncontested amount shall result in the 113
dismissal of the action and imposition of an additional penalty 114
of 25 percent of the amount taxed. 115
b. The requirements of s. 72.011(2) and (3)(a) are 116
jurisdictional for any action under this chapte r to contest an 117
assessment or denial of refund by the Department of Revenue, the 118
Department of Highway Safety and Motor Vehicles, or the 119
Department of Business and Professional Regulation. 120
4. Except as provided in s. 220.719, further collection 121
and enforcement of the contested amount of an assessment for 122
nonpayment or underpayment of any tax, interest, or penalty 123
shall be stayed beginning on the date a petition is filed. Upon 124
entry of a final order, an agency may resume collection and 125
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enforcement action. 126
5. The prevailing party, in a proceeding under ss. 120.569 127
and 120.57 authorized by s. 72.011(1), may recover all legal 128
costs incurred in such proceeding, including reasonable attorney 129
attorney's fees, if the losing party fails to raise a 130
justiciable issue of law or fact in its petition or response. 131
6. Upon review pursuant to s. 120.68 of final agency 132
action concerning an assessment of tax, penalty, or interest 133
with respect to a tax impos ed under chapter 212, or the denial 134
of a refund of any tax imposed under chapter 212, if the court 135
finds that the Department of Revenue improperly rejected or 136
modified a conclusion of law, the court may award reasonable 137
attorney attorney's fees and reasonable costs of the appeal to 138
the prevailing appellant. 139
7. A taxpayer may not submit records pertaining to an 140
assessment or refund claim as evidence in any proceeding brought 141
pursuant to this chapter as authorized by s. 72.011(1) if those 142
records were available to, or required to be kept by, the 143
taxpayer and not timely provided to the Department of Revenue 144
after a written request for the records during the audit or 145
protest period and before submission of a petition for hearing 146
under this chapter. 147
Section 3. Paragraph (f) is added to subsection (4) of 148
section 202.34, Florida Statutes, and subsection (6) is added to 149
that section, to read: 150
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202.34 Records required to be kept; power to inspect; 151
audit procedure.— 152
(4) 153
(f) Once the notification required by p aragraph (a) is 154
issued, the department, at any time, may respond to contact 155
initiated by a taxpayer to discuss the audit, and the taxpayer 156
may provide records or other information, electronically or 157
otherwise, to the department. The department may examine, at any 158
time, documentation and other information voluntarily provided 159
by the taxpayer, its representative, or other parties, 160
information already in the department's possession, or publicly 161
available information. Examination by the department of such 162
information does not commence an audit if the review takes place 163
within 60 days of the notice of intent to conduct an audit. The 164
requirement in paragraph (a) does not limit the department from 165
making initial contact with the taxpayer to confirm receipt of 166
the notification or to confirm the date that the audit will 167
begin. If the taxpayer has not previously waived the 60 day 168
notice period and believes the department commenced the audit 169
before the 61st day, the taxpayer must object in writing to the 170
department before the assessment is issued or the objection is 171
waived. If the objection is not waived and it is determined 172
during a formal or informal protest that the audit was commenced 173
before the 61st day after the notice of intent to audit was 174
issued, the tolling per iod provided for in s. 213.345 shall be 175
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considered lifted for the number of days equal to the difference 176
between the date the audit commenced and the 61st day from the 177
date of the department's notice of intent to audit. 178
(6) The department may adopt rules to administer this 179
section. 180
Section 4. Paragraph (a) of subsection (4) of section 181
202.36, Florida Statutes, is amended to read: 182
202.36 Departmental powers; hearings; distress warrants; 183
bonds; subpoenas and subpoenas duces tecum. — 184
(4)(a) The department may issue subpoenas or subpoenas 185
duces tecum compelling the attendance and testimony of witnesses 186
and the production of books, records, written materials, and 187
electronically recorded information. Subpoenas must be issued 188
with the written and signed ap proval of the executive director 189
or his or her designee on a written and sworn application by any 190
employee of the department. The application must set forth the 191
reason for the application, the name of the person subpoenaed, 192
the time and place of appearance of the witness, and a 193
description of any books, records, or electronically recorded 194
information to be produced, together with a statement by the 195
applicant that the department has unsuccessfully attempted other 196
reasonable means of securing information and that the testimony 197
of the witness or the written or electronically recorded 198
materials sought in the subpoena are necessary for the 199
collection of taxes, penalty, or interest or the enforcement of 200
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F L 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
the taxes levied or administered under this chapter. A subpoe na 201
shall be served in the manner provided by law and by the Florida 202
Rules of Civil Procedure and shall be returnable only during 203
regular business hours and at least 20 calendar days after the 204
date of service of the subpoena. Any subpoena to which this 205
subsection applies must identify the taxpayer to whom the 206
subpoena relates and to whom the records pertain and must 207
provide other information to enable the person subpoenaed to 208
locate the records required under the subpoena. The department 209
shall give notice to the taxpayer to whom the subpoena relates 210
within 3 days after the day on which the service of the subpoena 211
is made. Within 14 days after service of the subpoena, the 212
person to whom the subpoena is directed may serve written 213
objection to the inspection or copying of any of the designated 214
materials. If objection is made, the department may not inspect 215
or copy the materials, except pursuant to an order of the 216
circuit court. If an objection is made, the department may 217
petition any circuit court for an order to comply with the 218
subpoena. The subpoena must contain a written notice of the 219
right to object to the subpoena. Every subpoena served upon the 220
witness or custodian of records must be accompanied by a copy of 221
the provisions of this subsection. If a person ref uses to obey a 222
subpoena or subpoena duces tecum, the department may apply to 223
any circuit court of this state to enforce compliance with the 224
subpoena. Witnesses are entitled to be paid a mileage allowance 225
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and witness fees as authorized for witnesses in civi l cases. The 226
failure of a taxpayer to provide documents available to, or 227
required to be kept by, the taxpayer and requested by a subpoena 228
issued under this section creates a presumption that the 229
resulting proposed final agency action by the department, as to 230
the requested documents, is correct and that the requested 231
documents not produced by the taxpayer would be adverse to the 232
taxpayer's position as to the proposed final agency action. If a 233
taxpayer fails to provide documents requested by a subpoena 234
issued under this section, the department may make an assessment 235
from an estimate based upon the best information then available 236
to the department for the taxable period of retail sales of the 237
taxpayer, together with any accrued interest and penalties. The 238
assessment shall be deemed prima facie correct and the burden to 239
show the contrary rests upon the taxpayer. The presumption and 240
authority to use estimates for the purpose of an assessment 241
under this paragraph do not apply solely because a taxpayer or 242
the taxpayer's representative requests a conference to negotiate 243
the production of a sample of records demanded by a subpoena. 244
Section 5. Subsection (4) of section 206.14, Florida 245
Statutes, is amended to read: 246
206.14 Inspection of records; audits; hearings; fo rms; 247
rules and regulations. — 248
(4) If any person unreasonably refuses access to such 249
records, books, papers or other documents, or equipment, or if 250
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any person fails or refuses to obey such subpoenas duces tecum 251
or to testify, except for lawful reasons, bef ore the department 252
or any of its authorized agents, the department shall certify 253
the names and facts to the clerk of the circuit court of any 254
county; and the circuit court shall enter such order against 255
such person in the premises as the enforcement of thi s law and 256
justice requires. The failure of a taxpayer to provide documents 257
available to, or required to be kept by, the taxpayer and 258
requested by a subpoena issued under this section creates a 259
presumption that the resulting proposed final agency action by 260
the department, as to the requested documents, is correct and 261
that the requested documents not produced by the taxpayer would 262
be adverse to the taxpayer's position as to the proposed final 263
agency action. If a taxpayer fails to provide documents 264
requested by a subpoena issued under this section, the 265
department may make an assessment from an estimate of the 266
taxpayer's liability based upon the best information then 267
available to the department. The assessment shall be deemed 268
prima facie correct and the burden t o show the contrary rests 269
upon the taxpayer. The presumption and authority to use 270
estimates for the purpose of an assessment under this paragraph 271
do not apply solely because a taxpayer or the taxpayer's 272
representative requests a conference to negotiate the production 273
of a sample of records demanded by a subpoena. 274
Section 6. Subsection (1) of section 206.9931, Florida 275
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Statutes, is amended to read: 276
206.9931 Administrative provisions. — 277
(1) Any person producing in, importing into, or causing to 278
be imported into this state taxable pollutants for sale, use, or 279
otherwise and who is not registered or licensed pursuant to 280
other parts of this chapter is hereby required to register and 281
become licensed for the purposes of this part. Such person shall 282
register as either a producer or importer of pollutants and 283
shall be subject to all applicable registration and licensing 284
provisions of this chapter, as if fully set out in this part and 285
made expressly applicable to the taxes imposed herein, 286
including, but not limit ed to, ss. 206.02, 206.021, 206.022, 287
206.025, 206.03, 206.04, and 206.05. For the purposes of this 288
section, registrations required exclusively for this part shall 289
be made within 90 days of July 1, 1986, for existing businesses, 290
or before prior to the first production or importation of 291
pollutants for businesses created after July 1, 1986. The fee 292
for registration shall be $30. Failure to timely register is a 293
misdemeanor of the first degree, punishable as provided in s. 294
775.082 or s. 775.083. 295
Section 7. Paragraph (b) of subsection (3) of section 296
211.125, Florida Statutes, is amended to read: 297
211.125 Administration of law; books and records; powers 298
of the department; refunds; enforcement provisions; 299
confidentiality.— 300
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(3) 301
(b) The department may shall have the power to inspect or 302
examine the books, records, or papers of any operator, producer, 303
purchaser, royalty interest owner, taxpayer, or transporter of 304
taxable products which are reasonably required for the purposes 305
of this part and may require such per son to testify under oath 306
or affirmation or to answer competent questions touching upon 307
such person's business or production of taxable products in this 308
the state. 309
1. The department may issue subpoenas to compel third 310
parties to testify or to produce rec ords or other evidence held 311
by them. 312
2. Any duly authorized representative of the department 313
may administer an oath or affirmation. 314
3. If any person fails to comply with a request of the 315
department for the inspection of records, fails to give 316
testimony or respond to competent questions, or fails to comply 317
with a subpoena, a circuit court having jurisdiction over such 318
person may, upon application by the department, issue orders 319
necessary to secure compliance. The failure of a taxpayer to 320
provide documents available to, or required to be kept by, the 321
taxpayer and requested by a subpoena issued under this section 322
creates a presumption that the resulting proposed final agency 323
action by the department, as to the requested documents, is 324
correct and that the re quested documents not produced by the 325
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taxpayer would be adverse to the taxpayer's position as to the 326
proposed final agency action. If a taxpayer fails to provide 327
documents requested by a subpoena issued under this section, the 328
department may make an assess ment from an estimate based upon 329
the best information then available to the department. The 330
assessment shall be considered prima facie correct and the 331
taxpayer shall have the burden of showing any error in it. 332
Section 8. Paragraph (a) of subsection (1) of section 333
212.05, Florida Statutes, is amended to read: 334
212.05 Sales, storage, use tax. —It is hereby declared to 335
be the legislative intent that every person is exercising a 336
taxable privilege who engages in the business of selling 337
tangible personal prop erty at retail in this state, including 338
the business of making or facilitating remote sales; who rents 339
or furnishes any of the things or services taxable under this 340
chapter; or who stores for use or consumption in this state any 341
item or article of tangible personal property as defined herein 342
and who leases or rents such property within the state. 343
(1) For the exercise of such privilege, a tax is levied on 344
each taxable transaction or incident, which tax is due and 345
payable as follows: 346
(a)1.a. At the rate o f 6 percent of the sales price of 347
each item or article of tangible personal property when sold at 348
retail in this state, computed on each taxable sale for the 349
purpose of remitting the amount of tax due the state, and 350
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including each and every retail sale. 351
b. Each occasional or isolated sale of an aircraft, boat, 352
mobile home, or motor vehicle of a class or type which is 353
required to be registered, licensed, titled, or documented in 354
this state or by the United States Government is shall be 355
subject to tax at the rate provided in this paragraph. The 356
department shall by rule adopt any nationally recognized 357
publication for valuation of used motor vehicles as the 358
reference price list for any used motor vehicle which is 359
required to be licensed pursuant to s. 320.08( 1), (2), (3)(a), 360
(b), (c), or (e), or (9). If any party to an occasional or 361
isolated sale of such a vehicle reports to the tax collector a 362
sales price which is less than 80 percent of the average loan 363
price for the specified model and year of such vehicle as listed 364
in the most recent reference price list, the tax levied under 365
this paragraph shall be computed by the department on such 366
average loan price unless the parties to the sale have provided 367
to the tax collector an affidavit signed by each party, or ot her 368
substantial proof, stating the actual sales price. Any party to 369
such sale who reports a sales price less than the actual sales 370
price is guilty of a misdemeanor of the first degree, punishable 371
as provided in s. 775.082 or s. 775.083. The department shal l 372
collect or attempt to collect from such party any delinquent 373
sales taxes. In addition, such party shall pay any tax due and 374
any penalty and interest assessed plus a penalty equal to twice 375
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the amount of the additional tax owed. Notwithstanding any other 376
provision of law, the Department of Revenue may waive or 377
compromise any penalty imposed pursuant to this subparagraph. 378
2. This paragraph does not apply to the sale of a boat or 379
aircraft by or through a registered dealer under this chapter to 380
a purchaser who, at the time of taking delivery, is a 381
nonresident of this state, does not make his or her permanent 382
place of abode in this state, and is not engaged in carrying on 383
in this state any employment, trade, business, or profession in 384
which the boat or aircraf t will be used in this state, or is a 385
corporation none of the officers or directors of which is a 386
resident of, or makes his or her permanent place of abode in, 387
this state, or is a noncorporate entity that has no individual 388
vested with authority to particip ate in the management, 389
direction, or control of the entity's affairs who is a resident 390
of, or makes his or her permanent abode in, this state. For 391
purposes of this exemption, either a registered dealer acting on 392
his or her own behalf as seller, a registere d dealer acting as 393
broker on behalf of a seller, or a registered dealer acting as 394
broker on behalf of the nonresident purchaser may be deemed to 395
be the selling dealer. This exemption is shall not be allowed 396
unless: 397
a. The nonresident purchaser removes a qualifying boat, as 398
described in sub-subparagraph f., from this the state within 90 399
days after the date of purchase or extension, or the nonresident 400
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purchaser removes a nonqualifying boat or an aircraft from this 401
state within 10 days after the date of purchase or, when the 402
boat or aircraft is repaired or altered, within 20 days after 403
completion of the repairs or alterations; or if the aircraft 404
will be registered in a foreign jurisdiction and: 405
(I) Application for the aircraft's registration is 406
properly filed with a civil airworthiness authority of a foreign 407
jurisdiction within 10 days after the date of purchase; 408
(II) The nonresident purchaser removes the aircraft from 409
this the state to a foreign jurisdiction within 10 days after 410
the date the aircraft is registered by the applicable foreign 411
airworthiness authority; and 412
(III) The aircraft is operated in this the state solely to 413
remove it from this the state to a foreign jurisdiction. 414
415
For purposes of this sub -subparagraph, the term "foreign 416
jurisdiction" means any jurisdiction outside of the United 417
States or any of its territories; 418
b. The nonresident purchaser, within 90 days after from 419
the date of departure, provides the department with written 420
proof that the nonresident purchaser licensed, registere d, 421
titled, or documented the boat or aircraft outside this the 422
state. If such written proof is unavailable, within 90 days the 423
nonresident purchaser must shall provide proof that the 424
nonresident purchaser applied for such license, title, 425
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registration, or documentation. The nonresident purchaser shall 426
forward to the department proof of title, license, registration, 427
or documentation upon receipt; 428
c. The nonresident purchaser, within 30 days after 429
removing the boat or aircraft from this state Florida, furnishes 430
the department with proof of removal in the form of receipts for 431
fuel, dockage, slippage, tie -down, or hangaring from outside of 432
this state Florida. The information so provided must clearly and 433
specifically identify the boat or aircraft; 434
d. The selling dealer, within 30 days after the date of 435
sale, provides to the department a copy of the sales invoice, 436
closing statement, bills of sale, and the original affidavit 437
signed by the nonresident purchaser affirming that the 438
nonresident purchaser qualifies fo r exemption from sales tax 439
pursuant to this subparagraph and attesting that the nonresident 440
purchaser will provide the documentation required to 441
substantiate the exemption claimed under this subparagraph 442
attesting that he or she has read the provisions of this 443
section; 444
e. The seller makes a copy of the affidavit a part of his 445
or her record for as long as required by s. 213.35; and 446
f. Unless the nonresident purchaser of a boat of 5 net 447
tons of admeasurement or larger intends to remove the boat from 448
this state within 10 days after the date of purchase or when the 449
boat is repaired or altered, within 20 days after completion of 450
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the repairs or alterations, the nonresident purchaser applies to 451
the selling dealer for a decal which authorizes 90 days after 452
the date of purchase for removal of the boat. The nonresident 453
purchaser of a qualifying boat may apply to the selling dealer 454
within 60 days after the date of purchase for an extension decal 455
that authorizes the boat to remain in this state for an 456
additional 90 days, but not more than a total of 180 days, 457
before the nonresident purchaser is required to pay the tax 458
imposed by this chapter. The department is authorized to issue 459
decals in advance to dealers. The number of decals issued in 460
advance to a dealer shall be consistent with the volume of the 461
dealer's past sales of boats which qualify under this sub -462
subparagraph. The selling dealer or his or her agent shall mark 463
and affix the decals to qualifying boats in the manner 464
prescribed by the department, before deliver y of the boat. 465
(I) The department is hereby authorized to charge dealers 466
a fee sufficient to recover the costs of decals issued, except 467
the extension decal shall cost $425. 468
(II) The proceeds from the sale of decals will be 469
deposited into the administra tive trust fund. 470
(III) Decals shall display information to identify the 471
boat as a qualifying boat under this sub -subparagraph, 472
including, but not limited to, the decal's date of expiration. 473
(IV) The department is authorized to require dealers who 474
purchase decals to file reports with the department and may 475
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prescribe all necessary records by rule. All such records are 476
subject to inspection by the department. 477
(V) Any dealer or his or her agent who issues a decal 478
falsely, fails to affix a decal, mismarks the expiration date of 479
a decal, or fails to properly account for decals will be 480
considered prima facie to have committed a fraudulent act to 481
evade the tax and will be liable for payment of the tax plus a 482
mandatory penalty of 200 percent of the tax, and sha ll be liable 483
for fine and punishment as provided by law for a conviction of a 484
misdemeanor of the first degree, as provided in s. 775.082 or s. 485
775.083. 486
(VI) Any nonresident purchaser of a boat who removes a 487
decal before permanently removing the boat from this the state, 488
or defaces, changes, modifies, or alters a decal in a manner 489
affecting its expiration date before its expiration, or who 490
causes or allows the same to be done by another, will be 491
considered prima facie to have committed a fraudulent act to 492
evade the tax and will be liable for payment of the tax plus a 493
mandatory penalty of 200 percent of the tax, and shall be liable 494
for fine and punishment as provided by law for a conviction of a 495
misdemeanor of the first degree, as provided in s. 775.082 or s . 496
775.083. 497
(VII) The department is authorized to adopt rules 498
necessary to administer and enforce this subparagraph and to 499
publish the necessary forms and instructions. 500
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(VIII) The department is hereby authorized to adopt 501
emergency rules pursuant to s. 1 20.54(4) to administer and 502
enforce the provisions of this subparagraph. 503
504
If the nonresident purchaser fails to remove the qualifying boat 505
from this state within the maximum 180 days after purchase or a 506
nonqualifying boat or an aircraft from this state with in 10 days 507
after purchase or, when the boat or aircraft is repaired or 508
altered, within 20 days after completion of such repairs or 509
alterations, or permits the boat or aircraft to return to this 510
state within 6 months after from the date of departure, except 511
as provided in s. 212.08(7)(fff), or if the nonresident 512
purchaser fails to furnish the department with any of the 513
documentation required by this subparagraph within the 514
prescribed time period, the nonresident purchaser is shall be 515
liable for use tax on th e cost price of the boat or aircraft 516
and, in addition thereto, payment of a penalty to the Department 517
of Revenue equal to the tax payable. This penalty shall be in 518
lieu of the penalty imposed by s. 212.12(2). The maximum 180 -day 519
period following the sale o f a qualifying boat tax -exempt to a 520
nonresident may not be tolled for any reason. 521
Section 9. Subsections (2) and (5) of section 212.13, 522
Florida Statutes, are amended, and subsection (7) is added to 523
that section, to read: 524
212.13 Records required to be kept; power to inspect; 525
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audit procedure.— 526
(2)(a) Each dealer, as defined in this chapter, shall 527
secure, maintain, and keep as long as required by s. 213.35 a 528
complete record of tangible personal property or services 529
received, used, sold at retail, distr ibuted or stored, leased or 530
rented by said dealer, together with invoices, bills of lading, 531
gross receipts from such sales, and other pertinent records and 532
papers as may be required by the department for the reasonable 533
administration of this chapter. All s uch records must be made 534
available to the department at reasonable times and places and 535
by reasonable means, including in an electronic format when so 536
kept by the dealer. Any dealer subject to this chapter who 537
violates this subsection commits a misdemeanor of the first 538
degree, punishable as provided in s. 775.082 or s. 775.083. If, 539
however, any subsequent offense involves intentional destruction 540
of such records with an intent to evade payment of or deprive 541
the state of any tax revenues, such subsequent offe nse is a 542
felony of the third degree, punishable as provided in s. 775.082 543
or s. 775.083. 544
(b) Dealers licensed under chapter 561 shall maintain 545
records of all monthly sales and all monthly purchases of 546
alcoholic beverages and produce such records for insp ection by 547
any department employee within 10 days after written request 548
therefor. The failure of a dealer licensed under chapter 561 to 549
comply with such a request is deemed sufficient cause under s. 550
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561.29(1)(a), and the department shall promptly notify the 551
Division of Alcoholic Beverages and Tobacco and the dealer of 552
such failure for further appropriate action by the division. The 553
department may suspend the resale certificate issued to a dealer 554
licensed under chapter 561 if the dealer fails to produce the 555
records requested by the department under this section, unless 556
the dealer, within 30 days after the receipt of notice to 557
suspend the resale certificate by the department, corrects such 558
failure or establishes reasonable cause to the department why 559
the requested records do not exist. A dealer licensed under 560
chapter 561 whose resale certificate is suspended may apply to 561
the department within 30 days after the receipt of the notice of 562
suspension for an administrative hearing pursuant to chapter 563
120. 564
(5)(a) The department shall send written notification at 565
least 60 days before prior to the date an auditor is scheduled 566
to begin an audit, informing the taxpayer of the audit. The 567
department is not required to give 60 days' prior notification 568
of a forthcoming audit in any instance in which the taxpayer 569
requests an emergency audit. 570
(b) Such written notification must shall contain: 571
1. The approximate date on which the auditor is scheduled 572
to begin the audit. 573
2. A reminder that all of the records, receipts, invoices, 574
resale certificates, and related documentation of the taxpayer 575
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must be made available to the auditor. 576
3. Any other requests or suggestions the department may 577
deem necessary. 578
(c) Only records, receipts, invoices, resale certificates, 579
and related documentation that which are available to the 580
auditor when such audit begins are shall be deemed acceptable 581
for the purposes of conducting such audit. A resale certificate 582
containing a date before prior to the date the audit commences 583
is shall be deemed acceptable documentation of the specific 584
transaction or transactions which occurred in the past, for the 585
purpose of conducting an audit. 586
(d) The provisions of this chapter concerning fraudulent 587
or improper records, receipts, invoices, resale certificates, 588
and related documentation shall apply when conducting any audit. 589
(e) The requirement in paragraph (a) of 60 days' written 590
notification does not apply to the distress or jeopardy 591
situations referred to in s. 212.14 or s. 212.15. 592
(f) Once the notification required by paragraph (a) is 593
issued, the department, at any time, may respond to contact 594
initiated by a taxpayer to discuss the audit, and the taxpayer 595
may provide documentation or other information, e lectronically 596
or otherwise, to the department. The department may examine, at 597
any time, documentation and other information voluntarily 598
provided by the taxpayer, its representative, or other parties, 599
information already in the department's possession, or p ublicly 600
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available information. Examination by the department of such 601
information does not commence an audit if the review takes place 602
within 60 days of the notice of intent to conduct an audit. The 603
requirement in paragraph (a) does not limit the department from 604
making initial contact with the taxpayer to confirm receipt of 605
the notification or to confirm the date that the audit will 606
begin. If the taxpayer has not previously waived the 60 day 607
notice period and believes the department commenced the audit 608
before the 61st day, the taxpayer must object in writing to the 609
department before an assessment is issued or the objection is 610
waived. If the objection is not waived and it is determined 611
during a formal or informal protest that the audit was commenced 612
before the 61st day after the notice of intent to audit was 613
issued, the tolling period provided for in s. 213.345 shall be 614
considered lifted for the number of days equal to the difference 615
between the date the audit commenced and the 61st day from the 616
date of the department's notice of intent to audit. 617
(7) The department may adopt rules to administer this 618
section. 619
Section 10. Paragraph (a) of subsection (7) of section 620
212.14, Florida Statutes, is amended to read: 621
212.14 Departmental powers; hearings; distress warrants; 622
bonds; subpoenas and subpoenas duces tecum. — 623
(7)(a) For purposes of collection and enforcement of 624
taxes, penalties, and interest levied under this chapter, the 625
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department may issue subpoenas or subpoenas duces tecum 626
compelling the attendance an d testimony of witnesses and the 627
production of books, records, written materials, and 628
electronically recorded information. Subpoenas shall be issued 629
with the written and signed approval of the executive director 630
or his or her designee on written and sworn application by any 631
employee of the department. The application must set forth the 632
reason for the application, the name of the person subpoenaed, 633
the time and place of appearance of the witness, and a 634
description of any books, records, or electronically rec orded 635
information to be produced, together with a statement by the 636
applicant that the department has unsuccessfully attempted other 637
reasonable means of securing information and that the testimony 638
of the witness or the written or electronically recorded 639
materials sought in the subpoena are necessary for the 640
collection of taxes, penalty, or interest or the enforcement of 641
the taxes levied under this chapter. A subpoena must shall be 642
served in the manner provided by law and by the Florida Rules of 643
Civil Procedure and is shall be returnable only during regular 644
business hours and at least 20 calendar days after the date of 645
service of the subpoena. Any subpoena to which this subsection 646
applies must shall identify the taxpayer to whom the subpoena 647
relates and to whom the records pertain and must shall provide 648
other information to enable the person subpoenaed to locate the 649
records required under the subpoena. The department shall give 650
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notice to the taxpayer to whom the subpoena relates within 3 651
days after of the day on which the service of the subpoena is 652
made. Within 14 days after service of the subpoena, the person 653
to whom the subpoena is directed may serve written objection to 654
inspection or copying of any of the designated materials. If 655
objection is made, the depart ment is shall not be entitled to 656
inspect and copy the materials, except pursuant to an order of 657
the circuit court. If an objection is made, the department may 658
petition any circuit court for an order to comply with the 659
subpoena. The subpoena must shall contain a written notice of 660
the right to object to the subpoena. Every subpoena served upon 661
the witness or records custodian must be accompanied by a copy 662
of the provisions of this subsection. If a person refuses to 663
obey a subpoena or subpoena duces tecum, the department may 664
apply to any circuit court of this state to enforce compliance 665
with the subpoena. Witnesses must shall be paid mileage and 666
witness fees as authorized for witnesses in civil cases. The 667
failure of a taxpayer to provide documents available to, or 668
required to be kept by, the taxpayer and requested by a subpoena 669
issued under this section creates a presumption that the 670
resulting proposed final agency action by the department, as to 671
the requested documents, is correct and that the requested 672
documents not produced by the taxpayer would be adverse to the 673
taxpayer's position as to the proposed final agency action. If a 674
taxpayer fails to provide documents requested by a subpoena 675
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issued under this section, the department may make an assessment 676
from an estimate based upon the best information then available 677
to the department for the taxable period of retail sales of the 678
taxpayer, together with any accrued interest and penalties. The 679
assessment shall be deemed prima facie correct and the burden to 680
show the contrary rests upon the taxpayer. The presumption and 681
authority to use estimates for the purpose of assessment under 682
this paragraph do not apply solely because a taxpayer or the 683
taxpayer's representative requests a conference to negotiate the 684
production of a sample of records demanded by a subpoena. 685
Section 11. Section 213.051, Florida Statutes, is amended 686
to read: 687
213.051 Service of subpoenas. — 688
(1) For the purpose of administering and enforcing the 689
provisions of the revenue laws of this state, the executive 690
director of the Department of Revenue, or any of his or her 691
assistants designated in writing by the executive director, may 692
shall be authorized to serve subpoenas and subpoenas duces tecum 693
issued by the state attorney relating to investigations 694
concerning the taxes enumerated in s. 213.05. 695
(2) In addition to the procedures for service prescribed 696
by chapter 48, the department may serve subpoenas it issues 697
pursuant to ss. 202.36, 206.14, 211.125, 212.14, and 220.735 698
upon any business registered wi th the department at the address 699
on file with the department if it received correspondence from 700
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the business from that address within 30 days after a subpoena 701
is issued or if the address is listed with the Department of 702
State Division of Corporations as a principal or business 703
address. If a business's address is not in this state, service 704
is made upon proof of delivery by registered mail or under the 705
notice provisions of s. 213.0537. 706
Section 12. Section 213.06, Florida Statutes, is amended, 707
to read: 708
213.06 Rules of department; circumstances requiring 709
emergency rules.— 710
(1) The Department of Revenue may has the authority to 711
adopt rules pursuant to ss. 120.536(1) and 120.54 to implement 712
provisions of the revenue laws. 713
(2) The executive director of the department may adopt 714
emergency rules pursuant to s. 120.54 on behalf of the 715
department when the effective date of a legislative change 716
occurs sooner than 120 60 days after the close of a legislative 717
session in which enacted or after the governor approves or fails 718
to veto the legislative change, whichever is later, and the 719
change affects a tax rate or a collection or reporting procedure 720
which affects a substantial number of dealers or persons subject 721
to the tax change or procedure. The Legislature finds tha t such 722
circumstances qualify as an exception to the prerequisite of a 723
finding of immediate danger to the public health, safety, or 724
welfare as set forth in s. 120.54(4)(a) and qualify as 725
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circumstances requiring an emergency rule. Emergency rules 726
adopted under this subsection are exempt from s. 120.54(4)(c), 727
remain in effect for 6 months or until replaced by rules adopted 728
under the nonemergency rulemaking procedures of the 729
Administrative Procedure Act, and may be renewed for no more 730
than 3 additional 6 month periods during the pendency of 731
procedures to adopt permanent rules addressing the subject of 732
the emergency rules. 733
(3) The grants of rulemaking authority in subsections (1) 734
and (2) are sufficient to allow the department to adopt rules 735
implementing all rev enue laws administered by the department. 736
Each revenue law administered by the department is an enabling 737
statute authorizing the department to implement it, regardless 738
of whether the enabling statute contains its own grant of 739
rulemaking authority. 740
Section 13. Paragraph (b) of subsection (1) and paragraph 741
(a) of subsection (3) of section 213.21, Florida Statutes, are 742
amended, and subsections (11) and (12) are added to that 743
section, to read: 744
213.21 Informal conferences; compromises. — 745
(1)(b) The statute of limitations upon the issuance of 746
final assessments and the period for filing a claim for refund 747
as required by s. 215.26(2) for any transactions occurring 748
during the audit period shall be tolled during the period in 749
which the taxpayer is engaged in a procedure under this section. 750
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(3)(a) A taxpayer's liability for any tax or interest 751
specified in s. 72.011(1) may be compromised by the department 752
upon the grounds of doubt as to liability for or collectibility 753
of such tax or interest. A taxpayer's liabi lity for interest 754
under any of the chapters specified in s. 72.011(1) shall be 755
settled or compromised in whole or in part whenever or to the 756
extent that the department determines that the delay in the 757
determination of the amount due is attributable to the action or 758
inaction of the department. A taxpayer's liability for penalties 759
under any of the chapters specified in s. 72.011(1) greater than 760
25 percent of the tax must may be settled or compromised if it 761
is determined by the department determines that the 762
noncompliance is not due to reasonable cause and not to willful 763
negligence, willful neglect, or fraud. There is a rebuttable 764
presumption that a taxpayer's noncompliance is due to willful 765
negligence, willful neglect, or fraud when adequate records as 766
requested by the department are not provided to the department 767
before assessment is issued. In addition, a taxpayer's liability 768
for penalties under any of the chapters specified in s. 769
72.011(1) up to and including 25 percent of the tax may be 770
settled or compromised if the department determines that 771
reasonable cause exists and the penalties greater than 25 772
percent of the tax were compromised because the noncompliance is 773
not due to willful negligence, willful neglect, or fraud. The 774
facts and circumstances are subject to de novo review to 775
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determine the existence of reasonable cause in any 776
administrative proceeding or judicial action challenging an 777
assessment of penalty under any of the chapters specified in s. 778
72.011(1). A taxpayer who establishes reasonabl e reliance on the 779
written advice issued by the department to the taxpayer is will 780
be deemed to have shown reasonable cause for the noncompliance. 781
In addition, a taxpayer's liability for penalties under any of 782
the chapters specified in s. 72.011(1) in exces s of 25 percent 783
of the tax shall be settled or compromised if the department 784
determines that the noncompliance is due to reasonable cause and 785
not to willful negligence, willful neglect, or fraud. The 786
department shall maintain records of all compromises, an d the 787
records shall state the basis for the compromise. The records of 788
compromise under this paragraph are shall not be subject to 789
disclosure pursuant to s. 119.07(1) and are shall be considered 790
confidential information governed by the provisions of s. 791
213.053. 792
(11) Following the expiration of time for a taxpayer to 793
challenge an assessment or denial of a refund as provided in s. 794
72.011, the department may consider a request to settle or 795
compromise any tax, interest, penalty, or other liability under 796
this section if the taxpayer demonstrates that the failure to 797
initiate a timely challenge was due to a qualified event that 798
directly impacted compliance with that section. For purposes of 799
this subsection, a qualified event is limited to the occurrence 800
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of events during an audit or the expired protest period which 801
were beyond the control of the taxpayer, including the death or 802
life-threatening injury or illness of the taxpayer or an 803
immediate family member of the taxpayer; the death or life -804
threatening injury or i llness of the responsible party that 805
controlled, managed, or directed the affected business entity; 806
acts of war or terrorism; natural disasters; fire; or other 807
catastrophic loss. The department may not consider a request 808
received more than 180 days after t he expiration of time allowed 809
under s. 72.011. 810
(12) Any decision by the department regarding a taxpayer's 811
request to compromise or settle a liability under this section 812
is not a final order subject to review under chapter 120. 813
Section 14. Section 213 .34, Florida Statutes, is amended 814
to read: 815
213.34 Authority to audit. — 816
(1) The Department of Revenue may shall have the authority 817
to audit and examine the accounts, books, or records of all 818
persons who are subject to a revenue law made applicable to th is 819
chapter, or otherwise placed under the control and 820
administration of the department, for the purpose of 821
ascertaining the correctness of any return which has been filed 822
or payment which has been made, or for the purpose of making a 823
return where none has been made. 824
(2) The department, or its duly authorized agents, may 825
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inspect such books and records necessary to ascertain a 826
taxpayer's compliance with the revenue laws of this state, 827
provided that the department's power to make an assessment or 828
grant a refund has not terminated under s. 95.091(3). 829
(a) During the course of an audit, but before an 830
assessment other than a jeopardy assessment is issued, the 831
department shall issue to the taxpayer a notice explaining the 832
audit findings. No later than 14 days after the notice is 833
issued, the taxpayer may request an exit conference in writing 834
at a mutually agreeable date and time with the department's 835
audit staff to discuss the audit findings. The exit conference 836
must be conducted no later than 30 days after the date of the 837
notice, unless the taxpayer and the department enter into an 838
agreement to extend the audit tolling period pursuant to s. 839
213.23. The taxpayer shall be given an opportunity at or before 840
the exit conference to provide additional information and 841
documents to the department to rebut the audit findings. Upon 842
the mutual written agreement between the department and the 843
taxpayer to extend the audit tolling period pursuant to s. 844
213.23, the exit conference may be continued to allow the 845
taxpayer additional time to provide information and documents to 846
the department. The department shall review any information 847
provided by the taxpayer and, if the department revises the 848
audit findings, a copy of the revised audit findings must be 849
provided to the taxpayer. S uch revision of the audit findings 850
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does not provide a right to any additional conference. 851
(b) If an exit conference is timely requested in writing, 852
the limitations in s. 95.091(3) are tolled an additional 30 853
days. If the department fails to offer a taxpa yer the 854
opportunity to hold an exit conference despite a timely written 855
request, the limitations period in s. 95.091(3) shall not be 856
tolled for the additional 30 days. If the assessment is issued 857
outside of the limitations period, the assessment shall be 858
reduced by the amount of those taxes, penalties, and interest 859
for reporting periods outside of the limitations period, as 860
modified by any other tolling or extension provisions. 861
(c) If a request for an exit conference is not timely 862
made, the right to a con ference is waived. A taxpayer may also 863
affirmatively waive its right to an exit conference. Failure to 864
hold an exit conference does not preclude the department from 865
issuing an assessment. 866
(d) The department may adopt rules to implement this 867
subsection. 868
(3) The department may correct by credit or refund any 869
overpayment of tax, penalty, or interest revealed by an audit 870
and shall make assessment of any deficiency in tax, penalty, or 871
interest determined to be due. 872
(4) Notwithstanding the provisions of s. 215.26, the 873
department shall offset the overpayment of any tax during an 874
audit period against a deficiency of any tax, penalty, or 875
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interest determined to be due during the same audit period. 876
(5) After application of subsection (4), if the 877
department's audit finds that the tax paid is more than the 878
correct amount, the department shall refund the overpayment that 879
is within the applicable period provided by s. 215.26. Such 880
action by the department does not prevent a taxpayer from 881
challenging the amount of th e refund pursuant to chapters 120 882
and 213 or applying for a refund of additional tax within the 883
applicable period. 884
Section 15. Subsections (1), (3), and (6) of section 885
213.67, Florida Statutes, are amended to read: 886
213.67 Garnishment. — 887
(1) If a person is delinquent in the payment of any taxes, 888
penalties, and interest, additional daily accrued interest, 889
costs, and fees owed to the department, the executive director 890
or his or her designee may give notice of the amount of such 891
delinquency by registered mail, by personal service, or by 892
electronic means, including, but not limited to, facsimile 893
transmissions, electronic data interchange, or use of the 894
Internet, to all persons having in their possession or under 895
their control any credits or personal proper ty, exclusive of 896
wages, belonging to the delinquent taxpayer, or owing any debts 897
to such delinquent taxpayer at the time of receipt by them of 898
such notice. Thereafter, any person who has been notified may 899
not transfer or make any other disposition of such credits, 900
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other personal property, or debts until the executive director 901
or his or her designee consents to a transfer or disposition or 902
until 60 days after the receipt of such notice. However, the 903
credits, other personal property, or debts that exceed the 904
delinquent amount stipulated in the notice are not subject to 905
this section, wherever held, if the taxpayer does not have a 906
prior history of tax delinquencies. If during the effective 907
period of the notice to withhold, any person so notified makes 908
any transfer or disposition of the property or debts required to 909
be withheld under this section, he or she is liable to the state 910
for any indebtedness owed to the department by the person with 911
respect to whose obligation the notice was given to the extent 912
of the value of the property or the amount of the debts thus 913
transferred or paid if, solely by reason of such transfer or 914
disposition, the state is unable to recover the indebtedness of 915
the person with respect to whose obligation the notice was 916
given. If the delinqu ent taxpayer contests the intended levy in 917
circuit court or under chapter 120, the notice under this 918
section remains effective until that final resolution of the 919
contest. Any financial institution receiving such notice 920
maintains will maintain a right of setoff for any transaction 921
involving a debit card occurring on or before the date of 922
receipt of such notice. 923
(3) During the last 30 days of the 60 -day period set forth 924
in subsection (1), the executive director or his or her designee 925
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may levy upon such cred its, other personal property, or debts. 926
The levy must be accomplished by delivery of a notice of levy by 927
registered mail, by personal service, or by secure electronic 928
means. Upon receipt of the notice of levy, which the person 929
possessing the credits, other personal property, or debts shall 930
transfer them to the department or pay to the department the 931
amount owed to the delinquent taxpayer. 932
(6)(a) Levy may be made under subsection (3) upon credits, 933
other personal property, or debt of any person with respect to 934
any unpaid tax, penalties, and interest, additional daily 935
accrued interest, costs, and fees only after the executive 936
director or his or her designee has notified such person in 937
writing of the intention to make such levy. 938
(b) No less than 30 days befo re the day of the levy, the 939
notice of intent to levy required under paragraph (a) must shall 940
be given in person or sent by certified or registered mail to 941
the person's last known address. 942
(c) The notice required in paragraph (a) must include a 943
brief statement that sets forth in simple and nontechnical 944
terms: 945
1. The provisions of this section relating to levy and 946
sale of property; 947
2. The procedures applicable to the levy under this 948
section; 949
3. The administrative and judicial appeals available to 950
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the taxpayer with respect to such levy and sale, and the 951
procedures relating to such appeals; and 952
4. Any The alternatives, if any, available to taxpayers 953
which could prevent levy on the property. 954
Section 16. Section 213.345, Florida Statutes, is amended 955
to read: 956
213.345 Tolling of periods during an audit. —The 957
limitations in s. 95.091(3) and the period for filing a claim 958
for refund as required by s. 215.26(2) are shall be tolled for a 959
period of 1 year if the Department of Revenue has, on or after 960
July 1, 1999, issued a notice of intent to conduct an audit or 961
investigation of the taxpayer's account within the applicable 962
period of time. The 1-year period is tolled upon recei pt of 963
written objections to the subpoena and for the entire pendency 964
of any action that seeks an order to enforce compliance with or 965
to challenge any subpoena issued by the department compelling 966
the attendance and testimony of witnesses and the production of 967
books, records, written materials, and electronically recorded 968
information. The department must commence an audit within 120 969
days after it issues a notice of intent to conduct an audit, 970
unless the taxpayer requests a delay. If the taxpayer does not 971
request a delay and the department does not begin the audit 972
within 120 days after issuing the notice, the tolling period 973
terminates shall terminate unless the taxpayer and the 974
department enter into an agreement to extend the period pursuant 975
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to s. 213.23. If the department issues a notice explaining audit 976
findings under s. 213.34(2)(a) based on an estimate because the 977
taxpayer has failed or refuses to provide records, the audit 978
will be deemed to have commenced for purposes of this section. 979
In the event the depar tment issues an assessment beyond the 980
tolling period, the assessment will be considered late and the 981
assessment shall be reduced by the amount of those taxes, 982
penalties, and interest for reporting periods outside of the 983
limitations period, as modified by a ny other tolling or 984
extension provisions . 985
Section 17. Section 220.42, Florida Statutes, is amended 986
to read: 987
220.42 Methods of accounting. — 988
(1) For purposes of this code, a taxpayer's method of 989
accounting must shall be the same as such taxpayer's me thod of 990
accounting for federal income tax purposes , except as provided 991
in subsection (3). If no method of accounting has been regularly 992
used by a taxpayer, net income for purposes of this code must 993
shall be computed by the such method that as in the opinion of 994
the department determines most fairly reflects income. 995
(2) If a taxpayer's method of accounting is changed for 996
federal income tax purposes, the taxpayer's method of accounting 997
for purposes of this code must shall be similarly changed. 998
(3) Any taxpayer which has elected for federal income tax 999
purposes to report any portion of its income on the completed 1000
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contract method of accounting under Treasury Regulation 1.451 -1001
3(b)(2) may elect to return the income so reported on the 1002
percentage of completion met hod of accounting under Treasury 1003
Regulation 1.451-3(b)(1), provided the taxpayer regularly 1004
maintains its books of account and reports to its shareholders 1005
on the percentage of completion method. The election provided by 1006
this subsection shall be allowed only if it is made, in such 1007
manner as the department may prescribe, not later than the due 1008
date, including any extensions thereof, for filing a return for 1009
the taxpayer's first taxable year under this code in which a 1010
portion of its income is returned on the com pleted contract 1011
method of accounting for federal tax purposes. An election made 1012
pursuant to this subsection shall apply to all subsequent 1013
taxable years of the taxpayers unless the department consents in 1014
writing to its revocation. 1015
Section 18. Subsection (4) is added to section 220.735, 1016
Florida Statutes, to read: 1017
220.735 Production of witnesses and records. — 1018
(4) The failure of a taxpayer to provide documents 1019
available to, or required to be kept by, the taxpayer and 1020
requested by a subpoena issued under this section creates a 1021
presumption that the resulting proposed final agency action by 1022
the department, as to the requested documents, is correct and 1023
that the requested documents not produced by the taxpayer would 1024
be adverse to the taxpayer's position as to the proposed final 1025
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agency action. If a taxpayer fails to provide documents 1026
requested by a subpoena issued under this section, the 1027
department may determine the amount of tax due according to its 1028
best judgement and may issue a notice of deficiency to the 1029
taxpayer, setting forth the amount of tax and any penalties 1030
proposed to be assessed. The amount so determined shall be prima 1031
facie correct and shall be prima facie evidence of the 1032
correctness of the amount of tax due. The burden to show the 1033
contrary rests upon the taxpayer. 1034
Section 19. Paragraph (e) of subsection (3) of section 1035
443.131, Florida Statutes, is amended to read: 1036
443.131 Contributions. — 1037
(3) VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT 1038
EXPERIENCE.— 1039
(e) Assignment of variations from the standard rate.— 1040
1. As used in this paragraph, the terms "total benefit 1041
payments," "benefits paid to an individual," and "benefits 1042
charged to the employment record of an employer" mean the amount 1043
of benefits paid to individuals multiplied by: 1044
a. For benefits paid before prior to July 1, 2007, 1. 1045
b. For benefits paid during the period beginning on July 1046
1, 2007, and ending March 31, 2011, 0.90. 1047
c. For benefits paid after March 31, 2011, 1. 1048
d. For benefits paid during the period beginning April 1, 1049
2020, and ending December 31, 2020, 0. 1050
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e. For benefits paid during the period beginning January 1051
1, 2021, and ending June 30, 2021, 1, except as otherwise 1052
adjusted in accordance with paragraph (f). 1053
2. For the calculation of contribution rates effective 1054
January 1, 2012, and thereafter: 1055
a. The tax collection service provider shall assign a 1056
variation from the standard rate of contributions for each 1057
calendar year to each eligible employer. In determining the 1058
contribution rate, varying from the standard ra te to be assigned 1059
each employer, adjustment factors computed under sub -sub-1060
subparagraphs (I)-(IV) are added to the benefit ratio. This 1061
addition shall be accomplished in two steps by adding a variable 1062
adjustment factor and a final adjustment factor. The sum of 1063
these adjustment factors computed under sub -sub-subparagraphs 1064
(I)-(IV) shall first be algebraically summed. The sum of these 1065
adjustment factors shall next be divided by a gross benefit 1066
ratio determined as follows: Total benefit payments for the 3 -1067
year period described in subparagraph (b)3. are charged to 1068
employers eligible for a variation from the standard rate, minus 1069
excess payments for the same period, divided by taxable payroll 1070
entering into the computation of individual benefit ratios for 1071
the calendar year for which the contribution rate is being 1072
computed. The ratio of the sum of the adjustment factors 1073
computed under sub-sub-subparagraphs (I)-(IV) to the gross 1074
benefit ratio is multiplied by each individual benefit ratio 1075
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that is less than the maximum contribution rate to obtain 1076
variable adjustment factors; except that if the sum of an 1077
employer's individual benefit ratio and variable adjustment 1078
factor exceeds the maximum contribution rate, the variable 1079
adjustment factor is reduced in order for the sum t o equal the 1080
maximum contribution rate. The variable adjustment factor for 1081
each of these employers is multiplied by his or her taxable 1082
payroll entering into the computation of his or her benefit 1083
ratio. The sum of these products is divided by the taxable 1084
payroll of the employers who entered into the computation of 1085
their benefit ratios. The resulting ratio is subtracted from the 1086
sum of the adjustment factors computed under sub -sub-1087
subparagraphs (I)-(IV) to obtain the final adjustment factor. 1088
The variable adjustment factors and the final adjustment factor 1089
must be computed to five decimal places and rounded to the 1090
fourth decimal place. This final adjustment factor is added to 1091
the variable adjustment factor and benefit ratio of each 1092
employer to obtain each employe r's contribution rate. An 1093
employer's contribution rate may not, however, be rounded to 1094
less than 0.1 percent. In determining the contribution rate, 1095
varying from the standard rate to be assigned, the computation 1096
shall exclude any benefit that is excluded by the multipliers 1097
under subparagraph (b)2. and subparagraph 1. for rates effective 1098
January 1, 2021, through December 31, 2025, notwithstanding the 1099
repeal of subparagraph 5. as provided in chapter 2021 -2, Laws of 1100
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Florida. The computation of the contribution rate, varying from 1101
the standard rate to be assigned, shall also exclude any benefit 1102
paid as a result of a governmental order related to COVID -19 to 1103
close or reduce capacity of a business. In addition, the 1104
contribution rate for the 2021 and 2022 calendar ye ars shall be 1105
calculated without the application of the positive adjustment 1106
factor in sub-sub-subparagraph (III). 1107
(I) An adjustment factor for noncharge benefits is 1108
computed to the fifth decimal place and rounded to the fourth 1109
decimal place by dividing th e amount of noncharge benefits 1110
during the 3-year period described in subparagraph (b)3. by the 1111
taxable payroll of employers eligible for a variation from the 1112
standard rate who have a benefit ratio for the current year 1113
which is less than the maximum contrib ution rate. For purposes 1114
of computing this adjustment factor, the taxable payroll of 1115
these employers is the taxable payrolls for the 3 years ending 1116
June 30 of the current calendar year as reported to the tax 1117
collection service provider by September 30 of t he same calendar 1118
year. As used in this sub -sub-subparagraph, the term "noncharge 1119
benefits" means benefits paid to an individual, as adjusted 1120
pursuant to subparagraph (b)2. and subparagraph 1., from the 1121
Unemployment Compensation Trust Fund which were not ch arged to 1122
the employment record of any employer, but excluding any benefit 1123
paid as a result of a governmental order related to COVID -19 to 1124
close or reduce capacity of a business. 1125
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(II) An adjustment factor for excess payments is computed 1126
to the fifth decimal place, and rounded to the fourth decimal 1127
place by dividing the total excess payments during the 3 -year 1128
period described in subparagraph (b)3. by the taxable payroll of 1129
employers eligible for a variation from the standard rate who 1130
have a benefit ratio fo r the current year which is less than the 1131
maximum contribution rate. For purposes of computing this 1132
adjustment factor, the taxable payroll of these employers is the 1133
same figure used to compute the adjustment factor for noncharge 1134
benefits under sub-sub-subparagraph (I). As used in this sub -1135
subparagraph, the term "excess payments" means the amount of 1136
benefits charged to the employment record of an employer, as 1137
adjusted pursuant to subparagraph (b)2. and subparagraph 1., 1138
during the 3-year period described in s ubparagraph (b)3., but 1139
excluding any benefit paid as a result of a governmental order 1140
related to COVID-19 to close or reduce capacity of a business, 1141
less the product of the maximum contribution rate and the 1142
employer's taxable payroll for the 3 years ending June 30 of the 1143
current calendar year as reported to the tax collection service 1144
provider by September 30 of the same calendar year. As used in 1145
this sub-sub-subparagraph, the term "total excess payments" 1146
means the sum of the individual employer excess payme nts for 1147
those employers that were eligible for assignment of a 1148
contribution rate different from the standard rate. 1149
(III) With respect to computing a positive adjustment 1150
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factor: 1151
(A) Beginning January 1, 2012, if the balance of the 1152
Unemployment Compensat ion Trust Fund on September 30 of the 1153
calendar year immediately preceding the calendar year for which 1154
the contribution rate is being computed is less than 4 percent 1155
of the taxable payrolls for the year ending June 30 as reported 1156
to the tax collection servi ce provider by September 30 of that 1157
calendar year, a positive adjustment factor shall be computed. 1158
The positive adjustment factor is computed annually to the fifth 1159
decimal place and rounded to the fourth decimal place by 1160
dividing the sum of the total taxab le payrolls for the year 1161
ending June 30 of the current calendar year as reported to the 1162
tax collection service provider by September 30 of that calendar 1163
year into a sum equal to one -fifth of the difference between the 1164
balance of the fund as of September 30 of that calendar year and 1165
the sum of 5 percent of the total taxable payrolls for that 1166
year. The positive adjustment factor remains in effect for 1167
subsequent years until the balance of the Unemployment 1168
Compensation Trust Fund as of September 30 of the year 1169
immediately preceding the effective date of the contribution 1170
rate equals or exceeds 4 percent of the taxable payrolls for the 1171
year ending June 30 of the current calendar year as reported to 1172
the tax collection service provider by September 30 of that 1173
calendar year. 1174
(B) Beginning January 1, 2018, and for each year 1175
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thereafter, the positive adjustment shall be computed by 1176
dividing the sum of the total taxable payrolls for the year 1177
ending June 30 of the current calendar year as reported to the 1178
tax collection service provider by September 30 of that calendar 1179
year into a sum equal to one -fourth of the difference between 1180
the balance of the fund as of September 30 of that calendar year 1181
and the sum of 5 percent of the total taxable payrolls for that 1182
year. The positive adjustment factor remains in effect for 1183
subsequent years until the balance of the Unemployment 1184
Compensation Trust Fund as of September 30 of the year 1185
immediately preceding the effective date of the contribution 1186
rate equals or exceeds 4 percent of the ta xable payrolls for the 1187
year ending June 30 of the current calendar year as reported to 1188
the tax collection service provider by September 30 of that 1189
calendar year. 1190
(IV) If, beginning January 1, 2015, and each year 1191
thereafter, the balance of the Unemploymen t Compensation Trust 1192
Fund as of September 30 of the year immediately preceding the 1193
calendar year for which the contribution rate is being computed 1194
exceeds 5 percent of the taxable payrolls for the year ending 1195
June 30 of the current calendar year as reporte d to the tax 1196
collection service provider by September 30 of that calendar 1197
year, a negative adjustment factor must be computed. The 1198
negative adjustment factor shall be computed annually beginning 1199
on January 1, 2015, and each year thereafter, to the fifth 1200
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decimal place and rounded to the fourth decimal place by 1201
dividing the sum of the total taxable payrolls for the year 1202
ending June 30 of the current calendar year as reported to the 1203
tax collection service provider by September 30 of the calendar 1204
year into a sum equal to one-fourth of the difference between 1205
the balance of the fund as of September 30 of the current 1206
calendar year and 5 percent of the total taxable payrolls of 1207
that year. The negative adjustment factor remains in effect for 1208
subsequent years until th e balance of the Unemployment 1209
Compensation Trust Fund as of September 30 of the year 1210
immediately preceding the effective date of the contribution 1211
rate is less than 5 percent, but more than 4 percent of the 1212
taxable payrolls for the year ending June 30 of th e current 1213
calendar year as reported to the tax collection service provider 1214
by September 30 of that calendar year. The negative adjustment 1215
authorized by this section is suspended in any calendar year in 1216
which repayment of the principal amount of an advance received 1217
from the federal Unemployment Compensation Trust Fund under 42 1218
U.S.C. s. 1321 is due to the Federal Government. 1219
(V) The maximum contribution rate that may be assigned to 1220
an employer is 5.4 percent, except employers participating in an 1221
approved short-time compensation plan may be assigned a maximum 1222
contribution rate that is 1 percent greater than the maximum 1223
contribution rate for other employers in any calendar year in 1224
which short-time compensation benefits are charged to the 1225
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employer's employment record. 1226
(VI) As used in this subsection, "taxable payroll" shall 1227
be determined by excluding any part of the remuneration paid to 1228
an individual by an employer for employment during a calendar 1229
year in excess of the first $7,000. Beginning January 1, 2012, 1230
"taxable payroll" shall be determined by excluding any part of 1231
the remuneration paid to an individual by an employer for 1232
employment during a calendar year as described in s. 1233
443.1217(2). For the purposes of the employer rate calculation 1234
that will take effect in January 1, 2012, and in January 1, 1235
2013, the tax collection service provider shall use the data 1236
available for taxable payroll from 2009 based on excluding any 1237
part of the remuneration paid to an individual by an employer 1238
for employment during a cale ndar year in excess of the first 1239
$7,000, and from 2010 and 2011, the data available for taxable 1240
payroll based on excluding any part of the remuneration paid to 1241
an individual by an employer for employment during a calendar 1242
year in excess of the first $8,500 . 1243
b. If the transfer of an employer's employment record to 1244
an employing unit under paragraph (g) which, before the 1245
transfer, was an employer, the tax collection service provider 1246
shall recompute a benefit ratio for the successor employer based 1247
on the combined employment records and reassign an appropriate 1248
contribution rate to the successor employer effective on the 1249
first day of the calendar quarter immediately after the 1250
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effective date of the transfer. 1251
3. The tax collection service provider shall reissue rates 1252
for the 2021 calendar year. However, an employer shall continue 1253
to timely file its employer's quarterly reports and pay the 1254
contributions due in a timely manner in accordance with the 1255
rules of the Department of Economic Opportunity. The Department 1256
of Revenue shall post the revised rates on its website to enable 1257
employers to securely review the revised rates. For 1258
contributions for the first quarter of the 2021 calendar year, 1259
if any employer remits to the tax collection service provider an 1260
amount in excess of the amount that would be due as calculated 1261
pursuant to this paragraph, the tax collection service provider 1262
shall refund the excess amount from the amount erroneously 1263
collected. Notwithstanding s. 443.141(6), refunds issued through 1264
August 31, 2021, for first quarter 2021 contributions must be 1265
paid from the General Revenue Fund. 1266
4. The tax collection service provider shall calculate and 1267
assign contribution rates effective January 1, 2022, through 1268
December 31, 2022, excluding any benefit charge that i s excluded 1269
by the multipliers under subparagraph (b)2. and subparagraph 1.; 1270
without the application of the positive adjustment factor in 1271
sub-sub-subparagraph 2.a.(III); and without the inclusion of any 1272
benefit charge directly related to COVID -19 as a result of a 1273
governmental order to close or reduce capacity of a business, as 1274
determined by the Department of Economic Opportunity, for each 1275
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employer who is eligible for a variation from the standard rate 1276
pursuant to paragraph (d). The Department of Economic 1277
Opportunity shall provide the tax collection service provider 1278
with all necessary benefit charge information by August 1, 2021, 1279
including specific information for adjustments related to COVID -1280
19 charges resulting from a governmental order to close or 1281
reduce capacity of a business, to enable the tax collection 1282
service provider to calculate and issue tax rates effective 1283
January 1, 2022. The tax collection service provider shall 1284
calculate and post rates for the 2022 calendar year by March 1, 1285
2022. 1286
5. Subject to subparagraph 6., the tax collection service 1287
provider shall calculate and assign contribution rates effective 1288
January 1, 2023, through December 31, 2025, excluding any 1289
benefit charge that is excluded by the multipliers under 1290
subparagraph (b)2. and subparagr aph 1.; without the application 1291
of the positive adjustment factor in sub -sub-subparagraph 1292
2.a.(III); and without the inclusion of any benefit charge 1293
directly related to COVID -19 as a result of a governmental order 1294
to close or reduce capacity of a business, as determined by the 1295
Department of Economic Opportunity, for each employer who is 1296
eligible for a variation from the standard rate pursuant to 1297
paragraph (d). The Department of Economic Opportunity shall 1298
provide the tax collection service provider with all necessary 1299
benefit charge information by August 1 of each year, including 1300
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specific information for adjustments related to COVID -19 charges 1301
resulting from a governmental order to close or reduce capacity 1302
of a business, to enable the tax collection service pr ovider to 1303
calculate and issue tax rates effective the following January. 1304
6. If the balance of the Unemployment Compensation Trust 1305
Fund on June 30 of any year exceeds $4,071,519,600, subparagraph 1306
5. is repealed for rates effective the following years. The 1307
Office of Economic and Demographic Research shall advise the tax 1308
collection service provider of the balance of the trust fund on 1309
June 30 by August 1 of that year. After the repeal of 1310
subparagraph 5. and notwithstanding the dates specified in that 1311
subparagraph, the tax collection service provider shall 1312
calculate and assign contribution rates for each subsequent 1313
calendar year as otherwise provided in this section. 1314
Section 20. Paragraph (a) of subsection (9) of section 1315
443.171, Florida Statutes, is amende d to read: 1316
443.171 Department of Economic Opportunity and commission; 1317
powers and duties; records and reports; proceedings; state -1318
federal cooperation. — 1319
(9) STATE-FEDERAL COOPERATION. — 1320
(a)1. In the administration of this chapter, the 1321
Department of Economic Opportunity and its tax collection 1322
service provider shall cooperate with the United States 1323
Department of Labor to the fullest extent consistent with this 1324
chapter and shall take those actions, through the adoption of 1325
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appropriate rules, administrative m ethods, and standards, 1326
necessary to secure for this state all advantages available 1327
under the provisions of federal law relating to reemployment 1328
assistance. 1329
2. In the administration of the provisions in s. 443.1115, 1330
which are enacted to conform with the Federal-State Extended 1331
Unemployment Compensation Act of 1970, the department shall take 1332
those actions necessary to ensure that those provisions are 1333
interpreted and applied to meet the requirements of the federal 1334
act as interpreted by the United States Depa rtment of Labor and 1335
to secure for this state the full reimbursement of the federal 1336
share of extended benefits paid under this chapter which is 1337
reimbursable under the federal act. 1338
3. The department and its tax collection service provider 1339
shall comply with the regulations of the United States 1340
Department of Labor relating to the receipt or expenditure by 1341
this state of funds granted under federal law; shall submit the 1342
reports in the form and containing the information the United 1343
States Department of Labor req uires; and shall comply with 1344
directions of the United States Department of Labor necessary to 1345
assure the correctness and verification of these reports. 1346
4. The department and its tax collection service provider 1347
shall comply with the requirements of the fe deral Treasury 1348
Offset Program as it pertains to the recovery of unemployment 1349
compensation debts as required by the United States Department 1350
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of Labor pursuant to 26 U.S.C. 6402. The department or the tax 1351
collection service provider may adopt rules to implem ent this 1352
subparagraph. 1353
Section 21. This act shall take effect July 1, 2022. 1354