Bill Text: FL S0504 | 2014 | Regular Session | Comm Sub

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Bill Title: Tax Credits or Refunds

Spectrum: Bipartisan Bill

Status: (Failed) 2014-05-02 - Died in Appropriations Subcommittee on Finance and Tax, companion bill(s) passed, see HB 5601 (Ch. 2014-38) [S0504 Detail]

Download: Florida-2014-S0504-Comm_Sub.html

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       Florida Senate - 2014                              CS for SB 504
       
       
        
       By the Committee on Commerce and Tourism; and Senator Lee
       
       
       
       
       
       577-02393-14                                           2014504c1
    1                        A bill to be entitled                      
    2         An act relating to tax credits or refunds; amending s.
    3         212.17, F.S.; providing procedures, requirements, and
    4         calculation methodologies that allow dealers to obtain
    5         tax credits or refunds for taxes paid on worthless or
    6         uncollectible private-label credit card accounts or
    7         receivables; providing limitations on the amount that
    8         may be recovered; providing definitions; providing an
    9         effective date.
   10          
   11  Be It Enacted by the Legislature of the State of Florida:
   12  
   13         Section 1. Section 212.17, Florida Statutes, is reordered
   14  and amended to read:
   15         212.17 Tax credits or refunds for returned goods, rentals,
   16  or admissions; goods acquired for dealer’s own use and
   17  subsequently resold; additional powers of department.—
   18         (1)(a) If In the event purchases are returned to a dealer
   19  by the purchaser or consumer after the tax imposed by this
   20  chapter has been collected from or charged to the account of the
   21  consumer or user, the dealer is shall be entitled to
   22  reimbursement of the amount of tax collected or charged by the
   23  dealer, in the manner prescribed by the department.
   24         (b) A registered dealer that purchases property for the
   25  dealer’s own use, pays tax on acquisition, and sells the
   26  property subsequent to acquisition without ever having used the
   27  property is entitled to reimbursement, in the manner prescribed
   28  by the department, of the amount of tax paid on the property’s
   29  acquisition.
   30         (c) If the tax has not been remitted by a dealer to the
   31  department, the dealer may deduct the same in submitting his or
   32  her return upon receipt of a signed statement by of the dealer
   33  as to the gross amount of such refunds during the period covered
   34  by the said signed statement, which may period shall not be
   35  longer than 90 days. The department shall issue to the dealer an
   36  official credit memorandum equal to the net amount remitted by
   37  the dealer for such tax collected or paid. Such memorandum shall
   38  be accepted by the department at full face value from the dealer
   39  to whom it is issued upon, in the remittance of for subsequent
   40  taxes accrued under the provisions of this chapter. If a dealer
   41  has retired from business and has filed a final return, a refund
   42  of tax may be made if it can be established to the satisfaction
   43  of the department that the tax was not due.
   44         (2) A dealer who has paid the tax imposed by this chapter
   45  on tangible personal property sold under a retained title,
   46  conditional sale, or similar contract, or under a contract in
   47  which wherein the dealer retains a security interest in the
   48  property pursuant to chapter 679, may take credit or obtain a
   49  refund for the tax paid by the dealer on the unpaid balance due
   50  him or her when he or she repossesses the property, (with or
   51  without judicial process,) the property within 12 months after
   52  following the month in which the property was repossessed. If
   53  When such repossessed property is resold, the sale is subject in
   54  all respects to the tax imposed by this chapter.
   55         (3) Except as provided under subsection (4), a dealer who
   56  has paid the tax imposed by this chapter on tangible personal
   57  property or services may take a credit or obtain a refund for
   58  any tax paid by the dealer on the unpaid balance due on
   59  worthless accounts within 12 months after following the month in
   60  which the bad debt has been charged off for federal income tax
   61  purposes. If any accounts so charged off for which a credit or
   62  refund has been obtained are subsequently, thereafter in whole
   63  or in part, paid to the dealer, the amount so paid shall be
   64  included in the first return filed after such collection and the
   65  tax paid accordingly.
   66         (4) With respect to the payment of taxes on purchases made
   67  through a private-label credit card program:
   68         (a) If consumer accounts or receivables are found to be
   69  worthless or uncollectible, the dealer may claim a credit for,
   70  or obtain a refund of, the tax remitted by the dealer on the
   71  unpaid balance due if:
   72         1. The accounts or receivables have been charged off as bad
   73  debt on the lender’s books and records on or after January 1,
   74  2014;
   75         2. A credit was not previously claimed and a refund was not
   76  previously allowed on any portion of the accounts or
   77  receivables; and
   78         3. The credit or refund is claimed within 12 months after
   79  the month in which the bad debt is charged off by the lender for
   80  federal income tax purposes.
   81         (b) If the dealer or the lender subsequently collects, in
   82  whole or in part, the accounts or receivables for which a credit
   83  or refund has been granted under paragraph (a), the dealer must
   84  include the taxable percentage of the amount collected in the
   85  first return filed after the collection and pay the tax on the
   86  portion of that amount for which a credit or refund was granted.
   87         (c) The credit or refund allowed includes all credit sale
   88  transaction amounts that are outstanding in the specific
   89  private-label credit card account or receivable at the time the
   90  account or receivable is charged off, regardless of the date on
   91  which the credit sale transaction actually occurred.
   92         (d) A dealer may use one of the following methods to
   93  determine the amount of the credit or refund:
   94         1. An apportionment method to substantiate the amount of
   95  tax imposed under this chapter which is included in the bad debt
   96  to which the credit or refund applies. The method must use the
   97  dealer’s Florida and non-Florida sales, the dealer’s taxable and
   98  nontaxable sales, and the amount of tax the dealer remitted to
   99  this state; or
  100         2. A specified percentage of the accounts or receivables
  101  giving rise to the credit or refund, which is derived from a
  102  sampling of the dealer’s or lender’s records in accordance with
  103  a methodology agreed upon by the department and the dealer.
  104         (e) For purposes of computing the credit or refund,
  105  payments on the accounts or receivables shall be allocated based
  106  on the terms and conditions of the contract between the dealer
  107  or lender and the consumer.
  108         (f) The credit or refund for tax on bad debt may be claimed
  109  on any return filed by an entity related by a direct or indirect
  110  common ownership of 50 percent or more.
  111         (g) The amount of the credit or refund a dealer is eligible
  112  to recover under this subsection is limited to the following:
  113         1. For amounts charged off during the calendar year ending
  114  December 31, 2014, 25 percent of the tax paid to the department
  115  which is attributable to bad debt.
  116         2. For amounts charged off during the calendar year ending
  117  December 31, 2015, 50 percent of the tax paid to the department
  118  which is attributable to bad debt.
  119         3. For amounts charged off during the calendar year ending
  120  December 31, 2016, 75 percent of the tax paid to the department
  121  which is attributable to bad debt.
  122         4. For amounts charged off on or after January 1, 2017, the
  123  full amount paid to the department which is attributable to bad
  124  debt.
  125         (h) As used in this subsection, the term:
  126         1. “Dealer’s affiliates” means an entity affiliated with
  127  the dealer under 26 U.S.C. s. 1504 or an entity that would be an
  128  affiliate under that section if the entity were a corporation.
  129         2. “Lender” means a person who owns or has owned a private
  130  label credit card account or an interest in a private-label
  131  credit card receivable that:
  132         a. The person purchased directly from a dealer who remitted
  133  the tax imposed under this chapter or from the dealer’s
  134  affiliates, or that was transferred from a third party;
  135         b. The person originated pursuant to that person’s contract
  136  with a dealer who remitted the tax imposed under this chapter or
  137  with the dealer’s affiliates; or
  138         c. Is affiliated in the manner described under 26 U.S.C. s.
  139  1504, regardless of whether the different entities are
  140  corporations, to a person described in sub-subparagraph a. or
  141  sub-subparagraph b. or to an assignee or other transferee of
  142  such person.
  143         3. “Private-label credit card” means a charge card or
  144  credit card that carries, refers to, or is branded with the name
  145  or logo of a dealer and can be used for purchases from the
  146  dealer whose name or logo appears on the card or for purchases
  147  from the dealer’s affiliates or franchisees.
  148         (6)(4)(a) The department shall:
  149         (a) Design, prepare, print and furnish to all dealers,
  150  except dealers filing through electronic data interchange, or
  151  make available or prescribe to the dealers, all necessary forms
  152  for filing returns and instructions to ensure a full collection
  153  from dealers and an accounting for the taxes due. The, but
  154  failure of a any dealer to secure such forms does not relieve
  155  the dealer from the payment of the tax at the time and in the
  156  manner provided.
  157         (b) The department shall Prescribe the format and
  158  instructions necessary for filing returns in a manner that is
  159  initiated through an electronic data interchange to ensure a
  160  full collection from dealers and an accounting for the taxes
  161  due. The failure of a any dealer to use such format does not
  162  relieve the dealer from the payment of the tax at the time and
  163  in the manner provided.
  164         (7)(5) The department and its assistants are hereby
  165  authorized and empowered to administer the oath for the purpose
  166  of enforcing and administering the provisions of this chapter.
  167         (8)(6) The department may has authority to adopt rules
  168  pursuant to ss. 120.536(1) and 120.54 to administer and enforce
  169  the provisions of this section chapter.
  170         (5)(7) If The department, where admissions, license fees,
  171  or rental payments, or payments for services are made and
  172  thereafter returned to the payors after the taxes thereon have
  173  been paid, the department shall return or credit the taxpayer
  174  for taxes so paid on the moneys returned in the same manner as
  175  is provided for returns or credits of taxes if where purchases
  176  or tangible personal property are returnable to a dealer.
  177         Section 2. This act shall take effect July 1, 2014.