This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1001a.APC
DATE: 2/13/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1001 Taxation
SPONSOR(S): Ways & Means Committee, Stevenson
TIED BILLS: IDEN./SIM. BILLS: SB 1030
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Ways & Means Committee 23 Y, 0 N, As CS Rexford Aldridge
2) Appropriations Committee Trexler Pridgeon
SUMMARY ANALYSIS
The bill makes the following changes:
Sales Tax
Removes the requirement that nonresident purchasers attest to having read statutory provisions and
instead requires nonresident purchasers complete an affidavit that acknowledges compliance with the
pertinent provisions of the statute.
Clarifies that a boat and a boat trailer sold to the same purchaser at the same time and with both items
located on the same invoice, are considered a single item for discretionary sales surtax purposes. Also,
the sale of the boat and the trailer is deemed to occur in the county where the purchaser resides.
Other Taxes
For the pollutant tax, obsolete language is removed for a $30 registration fee repealed in 2017.
For corporate tax, the tentative tax return underpayment amount increases from more than the greater
of $2,000 or 30% of the tax shown on the return when filed to more than $6,000 or 30% of the tax
shown on the return when filed.
Administrative Updates
Allows the Department of Revenue to reopen a final assessment or refund denial for purposes of
settling or compromising a liability if the failure to initiate a timely challenge was the result of a specified
qualifying event beyond the control of the taxpayer.
Authorizes the Department of Revenue to include all additional daily accrued interests, costs, and fees
authorized by law to be included in garnishment levy and allows the Department to deliver its notices of
levy by electronic means.
The Revenue Estimating Conference (REC) adopted discrete estimated impacts on state and local
government revenues for different sections of the bill. See Fiscal Comments section for details.
The effective date of this bill is July 1, 2024.
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DATE: 2/13/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Affidavit for Non-Resident Purchaser of Boat/Aircraft
Current Situation
Under current law, nonresident purchasers of boats and aircrafts qualify for a sales tax exemption,
provided that certain application requirements are met.
1
One of the requirements is that nonresident
purchasers of boats and aircrafts must provide the Department an original signed affidavit attesting that
he or she read the provisions of s. 212.05, F.S. That statute provides for the exemption and includes
the process to document the purchaser’s qualification for the exemption. The statutory affidavit
requirement does not require that the purchaser understand the exemption or documentation
requirements, or that they attest they will comply with the provisions.
Effect of Proposed Change
The bill removes the requirement that nonresident purchasers attest to having read statutory provisions
and replaces it with the requirement that nonresident purchasers complete an affidavit that affirms that
the nonresident purchaser qualifies for the exemption from sales tax pursuant to s. 212.05(1)(a)2., F.S.,
and attests that the nonresident purchaser will provide the documentation necessary to substantiate the
qualification for the exemption.
Boat and Boat Trailer Sales
Current Situation
Florida Sales and Use Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal property,
admissions,
2
transient rentals,
3
rental of commercial real estate,
4
and a limited number of services.
Chapter 212, F.S., authorizes the levy and collection of Florida’s sales and use tax, and provides
exemptions and credits applicable to certain items or uses under specified circumstances. Sales tax is
added to the sales price of the taxable good or service and is collected from the purchaser at the time
of sale.
5
Discretionary Sales Surtax
In addition to the state tax, s. 212.055, F.S., authorizes counties to impose nine local option sales
surtaxes. A surtax applies to “all transactions occurring in the county which transactions are subject to
the state tax imposed on sales, use, services, rentals, admissions, and other transactions by [ch. 212,
F.S.], and communications services as defined in ch. 202.”
6
The discretionary sales surtax is based on
the tax rate imposed by the county where the taxable goods or services are sold, or are delivered.
7
Discretionary sales surtax rates currently levied vary by county in a range from 0.5 to 2 percent.
8
1
S. 212.05, F.S.
2
S. 212.04, F.S.
3
S. 212.03, F.S.
4
S. 212.031, F.S.
5
S. 212.07(2), F.S., and s. 212.06(3)(a), F.S.
6
S. 212.054, F.S.
7
S. 212.054(2), F.S.
8
Office of Economic and Demographic Research, The Florida Legislature, Florida Tax Handbook, 2023 Local Discretionary Sales
Surtax Rates in Florida’s Counties, 235-236, available at http://edr.state.fl.us/Content/revenues/reports/tax-
handbook/taxhandbook2023.pdf (last visited Jan. 11, 2024). STORAGE NAME: h1001a.APC PAGE: 3
DATE: 2/13/2024
Sales above $5,000 on one item are not subject to the discretionary sales surtax.
9
However, two or
more items of tangible personal property will be considered a single item for the purposes of the $5,000
threshold if the items are sold to the same purchaser at the same time and are sold together under a
generally accepted business practice, sold in bulk, or the items sold together make a working unit when
assembled.
10
Effect of Proposed Change
The bill amends s. 212.054(1)(b)1., F.S., to clarify that a boat and a corresponding boat trailer sold to
the same purchaser at the same time and with both items located on the same invoice, are considered
a single item for discretionary sales surtax purposes. The bill also amends s. 212.054(3)(a), F.S., to
clarify that the sale of the boat and boat trailer is deemed to occur in the county where the purchaser
resides, as shown on the title or registration documents, for discretionary sales surtax purposes.
Pollutant Tax Registration Fee
Current Situation
Under current law, any person producing in, importing into, or causing to be imported into this state
taxable pollutants for sale, use, or otherwise and who is not registered or licensed is required to register
and become licensed. Such person must register as either a producer or importer of pollutants and is
subject to all applicable registration and licensing provisions of ch. 206, F.S. Registrations must be
made prior to the first production or importation of pollutants for businesses created after July 1, 1986.
Failure to timely register is a misdemeanor of the first degree. A registration fee of $30 was repealed in
2017.
11
Effect of Proposed Change
The bill amends s. 206.9931(1), F.S., to remove obsolete language for the pollutant tax registration fee
repealed in 2017.
Corporate Income Tax Returns
Current Situation
Florida levies a 5.5 percent tax on the taxable income of corporations and financial institutions doing
business in Florida.
12
A corporate income taxpayer is required to file a Florida income tax return in
every year that it is liable for Florida corporate income tax or is required to file a federal income tax
return.
13
The due dates to file several tax returns related to corporate income tax are tied to the federal
law. Most corporate taxpayers
14
follow a calendar-year taxable year
15
and must file income tax returns
on or before the first day of the 5th month following the close of the tax year. When a Florida
corporation is granted an extension of time to file its federal return, the taxpayer may file an extension
of time to file its Florida return. If granted, the extended Florida due date will be the 15th day after the
expiration of the 6-month federal extension.
16
9
S. 212.054(2)(b)1., F.S.
10
Id.
11
S. 206.9931(1), F.S.
12
S. 220.11(2), F.S.
13
S. 220.22, F.S.
14
89.01% of corporate tax filers follow the calendar-year taxable year. Email from Matthew Cutillo, Chief Economist at Florida
Department of Revenue, dated January 10, 2024 (on file with the staff of the Ways & Means Committee).
15
Some corporate taxpayers have a taxable year that ends on June 30
th
, they must file returns on or before the 1
st
day of the 4
th
month
after the close of the table year. S. 220.222(1)(b), F.S.
16
For corporate taxpayers with a taxable year ending on June 30
th
, the extension is 15 days 7 months from the original due date. S.
220.222(2)(d), F.S. STORAGE NAME: h1001a.APC PAGE: 4
DATE: 2/13/2024
If a taxpayer extends the time to file its Florida return, Florida law requires the taxpayer to file and pay a
tentative tax return, which is due on or before the federal due date.
17
A taxpayer fails to satisfy the
tentative tax return requirement if it underpays the required payment by more than the greater of
$2,000 or 30% of the tax shown on the return when filed. Underpayment results in a loss of the
extension and the taxpayer must pay penalties and the interest due on the unpaid tax due.
18
Effect of Proposed Change
The bill amends s. 220.222, F.S., to increase the tentative tax return underpayment amount from more
than the greater of $2,000 or 30% of the tax shown on the return when filed to more than the greater of
$6,000 or 30% of the tax shown on the return when filed.
Qualified Event Impacting Timely Challenge
Current Situation
The Department does not have the authority to reopen a final assessment or refund denial following the
expiration of all taxpayer appeal rights under the law for purposes of adjusting or compromising the
liability of a taxpayer.
Effect of Proposed Change
The bill creates s. 213.21(11), F.S., to allow the Department to reopen a final assessment or refund
denial for purposes of settling or compromising a liability if the failure to initiate a timely challenge was
the result of a specified qualifying event which were beyond the control of the taxpayer. The bill
requires that a request to reopen an assessment or refund denial for a qualifying event occur no later
than 180 days after the time for filing a contest has expired. The bill also clarifies that any decision by
the Department regarding a taxpayer’s request to compromise or settle a liability is not a final order
subject to review under ch. 120, F.S.
A qualifying event includes:
The death or life-threatening injury or illness of:
o The taxpayer;
o An immediate family member of the taxpayer; or
o An individual with substantial responsibility for the management or control of the
taxpayer;
An act of war or terrorism; or
A natural disaster, fire, or other catastrophic loss.
Garnishment Notice
Current Situation
Section 213.67, F.S., provides the statutory framework for the Department’s garnishment authority.
This includes the authority to issue a levy upon credits, other personal property, or debts belonging to a
delinquent taxpayer for any taxes, penalties, and interest owed. Under current law, the levy does not
include additional daily interest accrued after the date of the levy, or the authority to issue notice to levy
notices by electronic means.
Effect of Proposed Change
The bill amends s. 213.67, F.S., to authorize the Department to include all additional daily accrued
interests, costs, and fees authorized by law to be included in garnishment levy. The bill allows the
Department to deliver its notices of levy by electronic means.
17
S. 220.222(2), F.S.
18
S. 220.32(3), F.S. STORAGE NAME: h1001a.APC PAGE: 5
DATE: 2/13/2024
B. SECTION DIRECTORY:
Section 1: Amends s. 206.9931, F.S., removing obsolete language for a $30 pollutant tax
registration fee repealed in 2017.
Section 2: Amends s. 212.05, F.S., removing the requirement that nonresident purchasers attest to
having read statutory provisions and instead requires nonresident purchasers complete
an affidavit that acknowledges compliance with the pertinent provisions of the statute.
Section 3: Amends s. 212.054, F.S., clarifying that a boat and a boat trailer sold to the same
purchaser at the same time and with both items located on the same invoice, are
considered a single item for discretionary sales surtax purposes and clarifying that the
sale of the boat and the trailer is deemed to occur in the county where the purchaser
resides.
Section 4: Amends s. 213.21, F.S., allowing the Department of Revenue to reopen a final
assessment or refund denial for purposes of settling or compromising a liability if the
failure to initiate a timely challenge was the result of a specified qualifying event beyond
the control of the taxpayer.
Section 5: Amends s. 213.67, F.S., authorizing the Department of Revenue to include all additional
daily accrued interests, costs, and fees authorized by law in garnishment levy and
allowing the Department to deliver its notices of levy by electronic means.
Section 6: Amends s. 220.222, F.S., increasing the tentative tax return underpayment amount to
more than the greater of $6,000 or 30% of the tax shown on the return when filed.
Section 7: Authorizes the Department of Revenue to adopt emergency rules for the purpose of
implementing the act. Clarifies that adopted emergency rules are effective for 6 months
after adoption and may be renewed during procedures to adopt permanent rules
addressing the subject of the emergency rules.
Section 8: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
See FISCAL COMMENTS section.
2. Expenditures:
The Department of Revenue indicated that it would incur nonrecurring expenses of $1,889 in FY
2023-24 and $35,048 in FY 2024-25 to implement the provisions of the bill.
19
These costs can be
absorbed within existing resources.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
See FISCAL COMMENTS section.
2. Expenditures:
None.
19
Department of Revenue, 2024 Agency Legislative Bill Analysis of HB 1001 (on file with the Ways & Means Committee). STORAGE NAME: h1001a.APC PAGE: 6
DATE: 2/13/2024
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
The Revenue Estimating Conference (REC) adopted discrete estimated impacts on state and local
government revenues for different sections of the bill.
The estimated impacts on state government revenues are as follows:
Allowing the Department of Revenue to reopen a final assessment or refund denial if the
failure to initiate a timely challenge was the result of a specified qualifying event beyond the
control of the taxpayer will have a negative, indeterminate impact on state tax revenue.
Authorizing the Department of Revenue to include all additional daily accrued interests,
costs, and fees authorized by law in garnishment levy and to deliver notices of levy for
electronic means will have a positive, indeterminate impact on state tax revenue.
Increasing the tentative tax return underpayment amount to more than the greater of $6,000
or 30% of the tax shown on the return when filed will have a negative, indeterminate impact
on state tax revenue.
The estimated impacts on local government revenues are as follows:
Clarifying that a boat and a boat trailer sold together under certain circumstances are
considered a single item for discretionary sales surtax purposes will have a negative,
indeterminate impact on local government tax revenue.
Allowing the Department of Revenue to reopen a final assessment or refund denial if the
failure to initiate a timely challenge was the result of a specified qualifying event beyond the
control of the taxpayer will have a negative, indeterminate impact on local tax revenue.
Authorizing the Department of Revenue to include all additional daily accrued interests,
costs, and fees authorized by law in garnishment levy and to deliver notices of levy for
electronic means will have a positive, indeterminate impact on local tax revenue.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to directly affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill authorizes the Department of Revenue to adopt emergency rules for the purpose of
implementing the act. Adopted emergency rules are effective for 6 months after adoption and may be
renewed during procedures to adopt permanent rules addressing the subject of the emergency rules.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
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DATE: 2/13/2024
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 31, 2024, the Ways & Means Committee considered a Proposed Committee Substitute (PCS)
and reported the bill favorably as a committee substitute. The PCS:
Removed a provision related to local option sales taxes on the rental of commercial property.
Revised a provision related to circumstances under which the Department of Revenue may consider a
request to settle or compromise any tax, penalty, or other liability.
Removed provisions that would allow a notice of levy to be delivered by certified mail, or allow a notice
of delinquency for garnishment purposes to be delivered by regular or certified mail.
This analysis is drafted to the committee substitute as approved by the Ways & Means Committee.