The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Finance and Tax
BILL: SB 1030
INTRODUCER: Senator Rodriguez
SUBJECT: Taxation
DATE: February 12, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Hackett Ryon CA Favorable
2. Byrd Khan FT Pre-meeting
3. AP
I. Summary:
SB 1030 makes various changes to statutes relating to the Department of Revenue (Department).
The bill:
Deletes obsolete language referring to pollutants tax registration fees;
Revises the administration of certain taxes related to the purchase of boats, trailers, and
aircrafts;
Allows the department to reopen a final assessment for the purpose of adjusting tax liability
under certain circumstances;
Allows the department to include all taxes, penalties, interest, costs, surcharges, and fees
authorized by law in a garnishment or levy;
Increases the threshold for underpayment penalties on corporate income tax;
Provides rulemaking and emergency rulemaking authority; and
Permits counties and school boards to forego imposing local discretionary sales surtaxes on
commercial rent.
The Revenue Estimating Conference determined that the bill may increase or decrease General
Revenue receipts, trust fund receipts, and local government receipts by an indeterminate amount
for the various provisions in the bill. See Section V. Fiscal Impact Statement for additional
information.
The bill takes effect July 1, 2024.
II. Present Situation:
The present situation for each issue is described below in Section III, Effect of Proposed
Changes.
REVISED: BILL: SB 1030 Page 2
III. Effect of Proposed Changes:
Pollutants Tax Registration Fees
Current Situation: Any entity intending to produce or import pollutants, which include liquid
commodities made from petroleum products, pesticides, ammonia, chlorine, perchloroethylene,
or solvents,
1
must register and become licensed to do so.
2
Statute provides that an entity must
pay a $30 registration fee when requesting a pollutants tax license.
3
However, these registration
fees were previously repealed beginning January 1, 2018.
4
Proposed Changes: Section 1 amends s. 206.9931, F.S., to remove obsolete language related to
pollutants tax registration fees.
Local Discretionary Sales Surtax on Commercial Rentals
Present Situation: Florida levies a 6 percent sales and use tax on the sale or rental of most
tangible personal property,
5
admissions,
6
transient rentals,
7
and a limited number of services.
Additionally, Florida levies a 4.5 percent sales and use tax on the rental of commercial real
estate.
8
In 2021, the Legislature approved a reduction to the sales and use tax rate on the rental of
commercial real estate to 2% after the balance in the Unemployment Compensation Trust Fund
reaches $4.07 billion, which is expected to occur in March 2024.
9
As a result, the tax rate is
expected to decrease to 2% beginning June 1, 2024.
Commercial real estate subject to tax includes land, buildings, office or retail space, and
convention or meeting rooms. It also includes the granting of a license to use real property for
placement of vending, amusement, or newspaper machines.
10
Additionally, if the tenant makes
payments such as mortgage, ad valorem taxes, or insurance on behalf of the property owner, such
payments are also classified as rent and are subject to the tax.
11
However, there are several
commercial rentals that are not subject to tax, including:
Rentals of real properties assessed as agricultural.
12
Rentals to nonprofit organizations that hold a current Florida consumer's certificate of
exemption.
13
1
Florida Dept. of Revenue, Pollutants Tax, available at https://floridarevenue.com/taxes/taxesfees/Pages/pollutants.aspx (last
visited Jan. 10, 2024).
2
Section 206.9931, F.S.
3
Id.
4
Chapter 2017-36 s.17, L.O.F.
5
Section 212.05(1)(a)1.a., F.S.
6
Section 212.04(1)(b), F.S.
7
Section 212.03(1)(a), F.S.
8
Section 212.031, F.S.
9
The Office of Economic & Demographic Research, Unemployment Compensation Trust Fund Forecast, available at
http://edr.state.fl.us/Content/conferences/unemployment-compensation-trust-fund/January2024ForecastSummary.pdf
(last visited Feb. 12, 2024).
10
Rule 12A-1.070, F.A.C.
11
Id.
12
See s. 212.031(1)(a)1.-13., F.S.
13
Section 212.08(7)(p), F.S. BILL: SB 1030 Page 3
Rentals to federal, state, county, or city government agencies.
14
Properties used exclusively as dwelling units.
Public streets or roads used for transportation purposes.
15
Counties
16
and schools boards
17
are authorized to impose local discretionary sales surtaxes in
addition to the state sales tax. 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”
18
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. In counties that levy the discretionary sales surtax, the rate
varies in a range of 0.5 to 1.5 percent.
19, 20
Proposed Changes: Section 2 amends s. 212.031, F.S., to provide that a county or school board
imposing a discretionary sales surtax may exclude rent or license fees on commercial real estate
from discretionary sales surtaxes. The exclusion must be approved by majority vote of the
members of the board of county commissioners or school board, and does not require
referendum approval. The county or school board must notify the department by September 1 of
the year the decision is approved and the exclusion must be initiated on January 1 of the year
following approval.
Affidavit for Non-Resident Purchasers of Boats and Aircrafts
Current Situation: Nonresident purchasers of boats and aircraft are exempt from paying the sales
tax. Among other requirements relating to the purchase and subsequent removal from the state of
the boat or aircraft, such purchasers must sign an affidavit attesting that they have read the
provisions of s. 212.05, F.S., in its entirety, in order to claim the exemption. Section 212.05, F.S.,
is lengthy and includes many provisions that are not applicable to the purchaser of a boat or
aircraft.
Proposed Changes: Section 3 amends s. 212.05(1)(a)2.d., F.S., to remove the requirement that a
purchaser attests to having read statutory provisions and replaces that language with the
requirement that a nonresident purchaser complete an affidavit that affirms that the nonresident
purchaser qualifies for exemption from the sales tax pursuant to law and attesting that the
nonresident purchaser will provide the documentation required to substantiate the exemption.
14
Section 212.08(6), F.S.
15
See s. 212.031(1)(a)1.-13., F.S.
16
Section 212.055, F.S. authorizes counties to impose different types of local discretionary sales surtaxes including the
Charter County and Regional Transportation System Surtax, the Local Government Infrastructure Surtax, the Small County
Surtax, the Indigent Care and Trauma Center Surtax, the County Public Hospital Surtax, the Voter-Approved Indigent Care
Surtax, the Emergency Fire Rescue Services and Facilities Surtax, and the Pension Liability Surtax.
17
Section 212.055(6) authorizes school boards in each county to levy the School Capital Outlay Surtax.
18
Section 212.054, F.S.
19
Florida Dept. of Revenue, Discretionary Sales Surtax Information for Calendar Year 2024, available at
https://floridarevenue.com/Forms_library/current/dr15dss_24.pdf (last visited Jan. 16, 2024).
20
This range is inclusive of the surtax that may be levied by school districts. BILL: SB 1030 Page 4
Imposition of Surtax Limitation on the Purchase of Boats and Trailers
Present Situation: Local discretionary sales surtaxes may only be charged on the first $5,000 of
the sales amount of any item of tangible personal property.
21
If two or more taxable items are
sold to the same purchaser at the same time and would generally be sold in bulk or comprise
pieces of a unit, such items must be considered a single item.
22
Additionally, the location for where the surtax is applied differs for boats and trailers. For the
sale of a boat, the surtax is based on the county where the boat is delivered to the purchaser.
23
For a trailer, the surtax is based on the residence address of the purchaser as identified on the
registration or title document of the trailer.
24
Proposed Changes: Section 4 amends s. 212.054, F.S., to require that the sale of a boat and
corresponding boat trailer must be taxed as a single item when sold to the same purchaser, at the
same time, and in the same invoice. Additionally, the bill requires the surtax to be imposed based
on the county where the purchaser resides.
Event Impacting Timely Audit Challenges
Current Situation: Current law provides guidelines for the department to establish informal
conference procedures for the resolution of disputes relating to assessment of taxes, interest, and
penalties, and the denial of refunds.
25
However, the department does not have the authority to
reopen a final assessment for purposes of adjusting or compromising the liability, other than to
resolve the outstanding liability for collectability.
26
Current law also specifies a process and timeframe for a taxpayer to challenge a final assessment.
A taxpayer may contest the legality of any assessment or denial of refund of taxes and fees.
27
Such contest may be filed by circuit court action or by petition under administrative law.
28
No
action may be brought more than 60 days after the date the assessment becomes final.
29
Proposed Changes: Section 5 creates s. 213.21(11), F.S., to provide that, following the
expiration of time for a taxpayer to challenge an assessment or a denial of a refund issued by the
department, the department may consider a request to settle or compromise any tax, interest,
penalty, or other liability under s. 213.21, F.S., if the taxpayer demonstrates that the failure to
initiate a timely challenge was due to:
The death or life-threatening injury or illness of the taxpayer or an immediate family
member of the taxpayer;
21
Section 212.054(2)(b)1., F.S.
22
Id.
23
Section 212.054(3)(d)1., F.S.
24
Section 212.054(3)(a)2., F.S.
25
Section 213.21, F.S.
26
Florida Dept. of Revenue, 2024 Agency Legislative Bill Analysis for SB 1030, on file with the Senate Committee on
Finance and Tax.
27
Section 72.011, F.S.
28
Id.
29
Section 72.011(2)(a), F.S.
30
Section 213.67, F.S. BILL: SB 1030 Page 5
The death or life-threatening injury or illness of the responsible party that controlled,
managed, or directed the affected business entity;
Acts of war or terrorism; or
Natural disasters, fire, or other catastrophic loss.
The department may not consider a request received more than 180 days after the expiration of
time allowed under s. 72.011, F.S. Any decision by the department regarding a taxpayer’s
request to compromise or settle a liability under this subsection is not a final order subject to
review under ch. 120, F.S.
Garnishment
Present Situation: The department has the authority to issue a levy upon credits, other personal
property, or debts belonging to a delinquent taxpayer. The department is not authorized to
include as a part of such levy costs, surcharges, and fees (i.e., administrative collection
processing fee, warrant filing fees, or any other fee or cost that might be enacted into the Florida
Statutes) or additional daily accrued interest.
30
As a result, the department typically continues
with collection efforts for costs, surcharges, fees, and interest after the initial levy is complete.
31
Additionally, there are notice requirements for a levy.
Notice of the amount of delinquency: This notice may be given to a person who is in
possession or control of any credits or personal property, excluding wages, belonging to
the delinquent taxpayer. Notice may be made by registered mail, by personal service, or
by electronic means, such as facsimile or the use of the internet.
32
Notice of levy: When the department levies such property, the department must notify
the person in possession of such property. Notice may be made only by registered mail.
33
Proposed Changes: Section 6 amends s. 213.67, F.S., to authorize the department to include all
taxes, penalties, interest, costs, surcharges, and fees authorized by law to be included in a
garnishment or levy, which has the effect of avoiding multiple collection efforts for additional
amounts. The bill allows the executive director of the department, or his or her designee, to give
notice of the amount of such delinquency by regular or certified mail. The bill also allows the
department to deliver its notices of levy by certified mail, personal service, or electronic means.
Corporate Income Tax Underpayment Threshold
Present Situation: Florida levies a 5.5 percent tax on certain income of corporations and financial
institutions doing business in Florida.
34
Taxpayers may be granted up to 6 months of extensions
of time within which to file corporate tax returns, provided they have filed a tentative tax return
and paid the amount estimated to be the proper tax balance.
35
If tentative tax is underpaid by
30
Section 213.67, F.S.
31
Florida Dept. of Revenue, 2024 Agency Legislative Bill Analysis for SB 1030, on file with the Senate Committee on
Finance and Tax.
32
Section 213.67(1), F.S.
33
Section 213.67(3), F.S.
34
Section 220.11(2), F.S.
35
Sections 220.222(2) and 220.32, F.S. BILL: SB 1030 Page 6
more than the greater of $2,000 or 30 percent of the tax shown on the return when filed, such
extensions are invalidated, and the taxpayer may be liable for penalties due to late payment.
36
Proposed Changes: Section 7 raises the dollar threshold for underpayment following extension
of time to file from $2,000 to $6,000.
Section 8 provides that the department shall have emergency rulemaking authority to implement
this act.
Section 9 provides an effective date of July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Article VII, s. 18(b) of the Florida Constitution provides that except upon the approval of
each house of the Legislature by a two-thirds vote of the membership, the Legislature
may not enact, amend, or repeal any general law if the anticipated effect of doing so
would be to reduce the authority that municipalities or counties have to raise revenue in
the aggregate, as such authority existed on February 1, 1989. The mandate requirement
does not apply to laws having an insignificant impact,
37
which for Fiscal Year 2024-2025
is forecast at approximately $2.3 million.
38
The Revenue Estimating Conference determined that the bill will increase or decrease
local government revenue by an indeterminate amount greater than $100,000. Should the
decrease in the authority to raise revenue result in an amount that surpasses $2.3 million,
this bill may be a mandate subject to approval of each house of the Legislature by a two-
thirds vote of the membership.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
The bill does not create or raise a state tax or fee. Therefore, the requirements of Art. VII,
s. 19 of the Florida Constitution do not apply.
36
Section 220.222(2)(c), F.S.
37
FLA. CONST. art. VII, s. 18(d). An insignificant fiscal impact is the amount not greater than the average statewide
population for the applicable fiscal year times $0.10. See FLA. SENATE COMM. ON CMTY. AFFAIRS, Interim Report
2012-115: Insignificant Impact (Sept. 2011), available at:
http://www.flsenate.gov/PublishedContent/Session/2012/InterimReports/2012-115ca.pdf (last visited Jan. 19, 2024).
38
Based on the Demographic Estimating Conference’s estimated population adopted on July 11, 2023, available at
http://edr.state.fl.us/Content/conferences/population/archives/230711demographic.pdf (last visited Jan. 19, 2024). BILL: SB 1030 Page 7
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference determined that the bill will increase or decrease
General Revenue, Trust Funds, and local government revenue by an indeterminate
amount greater than $100,000. The table below displays the results for provisions in the
bill affecting revenue:
General Revenue Trust Funds Local/Other Total
Provision Cash Recur. Cash Recur. Cash Recur. Cash Recur.
Underpayment Threshold Increase (**) (**) 0.0 0.0 0.0 0.0 (**) (**)
Reopen Final Tax Assessment
under Certain Circumstances
(**) (**) (**) (**) (**) (**) (**) (**)
Garnishment/Levy Bundling 0/** 0/** 0/** 0/** 0/** 0/** 0/** 0/**
Imposition of Surtax Limitation:
Boats and Trailers
0.0 0.0 0.0 0.0 (**) (**) (**) (**)
Local Discretionary Sales Tax on
Commercial Rent
0.0 0.0 0.0 0.0 (0/**) (0/**) (0/**) (0/**)
B. Private Sector Impact:
The bill provides that the sale of a boat and trailer together will be treated as a single
purchase, which may benefit taxpayers to the extent it changes administration of those
taxes.
The bill allows the department to reopen audits under certain circumstances to consider
settlement, and raises the threshold before corporate taxpayers may face certain penalties.
These provisions may benefit taxpayers.
C. Government Sector Impact:
The bill may enhance the administration of the state’s tax laws.
Additionally, the department estimates that it will cost $1,889 in FY 2023-24 to revise tax
forms and notify boat and aircraft dealers of changes under the bill. The department noted
that this cost will be absorbed by the department using existing resources. The
department also estimates that it will cost $35,048 in FY 2024-25 to implement the bill.
These funds will be used to update the state tax software system.
39
39
Florida Dept. of Revenue, 2024 Agency Legislative Bill Analysis for SB 1030, on file with the Senate Committee on
Finance and Tax. BILL: SB 1030 Page 8
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
The bill substantially amends sections 206.9931, 212.031, 212.05, 212.054, 213.21, 213.67, and
220.222 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.