Bill Text: FL S1112 | 2019 | Regular Session | Comm Sub
Bill Title: Taxation
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Failed) 2019-05-03 - Died in Appropriations [S1112 Detail]
Download: Florida-2019-S1112-Comm_Sub.html
Florida Senate - 2019 CS for SB 1112
By the Committee on Finance and Tax; and Senators Gruters,
Gainer, and Baxley
593-04453-19 20191112c1
1 A bill to be entitled
2 An act relating to taxation; amending s. 192.001,
3 F.S.; revising the definition of the term “inventory,”
4 for purposes of ad valorem taxation except for school
5 district levies, to include certain construction
6 equipment owned by a heavy equipment rental dealer;
7 defining the terms “heavy equipment rental dealer” and
8 “short-term rental”; providing construction; amending
9 s. 196.1978, F.S.; increasing the discount under the
10 affordable housing property exemption; amending s.
11 212.02, F.S.; revising the definition of the term
12 “retail sale” for purposes of the sales and use tax;
13 amending s. 212.031, F.S.; reducing the rate of the
14 tax on rental or licensee fees for the use of real
15 property; amending s. 212.05, F.S.; conforming a
16 provision to changes made by the act; amending s.
17 212.0596, F.S.; renaming the term “mail order sale” as
18 “remote sale” and revising the definition; providing
19 that certain activities of a dealer that result in
20 making a substantial number of remote sales subject
21 the dealer to the sales and use tax; deleting a
22 condition that certain connections with or
23 relationships to this state or its residents subject a
24 dealer to the tax; deleting a prohibition against
25 imposing a fee on certain dealers; defining the term
26 “making a substantial number of remote sales”;
27 deleting an exemption for certain dealers from
28 collecting local option surtaxes under certain
29 circumstances; creating s. 212.05965, F.S.; defining
30 terms; providing that certain marketplace providers
31 are subject to dealer registration requirements and
32 requirements for collecting and remitting sales taxes;
33 requiring marketplace providers to provide a certain
34 certification to their marketplace sellers;
35 prohibiting marketplace sellers from collecting and
36 remitting sales taxes, and requiring such sellers to
37 exclude certain sales from their sales tax returns,
38 under certain circumstances; requiring certain
39 marketplace sellers to register and to collect and
40 remit sales taxes on all taxable retail sales made
41 outside of the marketplace; requiring marketplace
42 providers to allow the Department of Revenue to
43 examine and audit their books and records; specifying
44 the department’s authority in examinations, audits,
45 and assessments of marketplace sellers; providing that
46 the marketplace seller or customer, and not the
47 marketplace provider, is liable for sales taxes under
48 certain circumstances; authorizing marketplace
49 providers and marketplace sellers to enter into
50 certain agreements for the recovery of tax, interest,
51 and penalties; authorizing the department to
52 compromise any tax, interest, or penalty on certain
53 sales; providing applicability and construction;
54 amending s. 212.06, F.S.; revising the definition of
55 the term “dealer”; conforming provisions to changes
56 made by the act; creating s. 212.094, F.S.; defining
57 terms; providing a sales tax refund to an eligible job
58 training organization on its sales of goods donated to
59 the organization; specifying requirements on the use
60 of refunds; specifying limitations and requirements on
61 refunds issued and granted; specifying requirements
62 and procedures for applying for certification with the
63 Department of Economic Opportunity; specifying
64 requirements and procedures for certified eligible job
65 training organizations in applying for refunds with
66 the Department of Revenue; providing construction;
67 requiring certain organizations to provide a specified
68 report to the Department of Economic Opportunity by a
69 certain date; authorizing the Department of Economic
70 Opportunity to adopt rules; providing requirements if
71 the Department of Economic Opportunity determines an
72 organization no longer qualifies for the refund;
73 providing for repayment and interest of certain issued
74 refunds; amending s. 212.12, F.S.; deleting the
75 authority of the Department of Revenue’s executive
76 director to negotiate a certain collection allowance;
77 conforming provisions to changes made by the act;
78 amending s. 212.18, F.S.; conforming a provision to
79 changes made by the act; amending s. 220.191, F.S.;
80 revising definitions; defining the term “intellectual
81 property”; revising the capital investment tax credit
82 to include certain qualifying projects for the
83 creation of intellectual property; specifying the
84 amount and maximum period of the tax credit for such
85 projects; specifying the limit of the credit as to
86 certain tax liabilities; specifying minimum required
87 capital investments in such projects; specifying
88 procedures and requirements for carrying forward and
89 transferring the tax credit for such projects;
90 creating s. 220.197, F.S.; providing a corporate
91 income tax credit, during a certain timeframe, for
92 certain health insurers and health maintenance
93 organizations that cover services provided by
94 telehealth; specifying a condition for eligibility;
95 authorizing the credit to be carried forward for a
96 certain period; authorizing the department to conduct
97 certain audits and investigations; requiring the
98 Office of Insurance Regulation to provide technical
99 assistance to the department; requiring the department
100 to pursue recovery of funds from taxpayers claiming
101 the credit under certain circumstances; specifying
102 requirements and procedures for transferring the
103 credit to another taxpayer; authorizing the department
104 and the Financial Services Commission to adopt certain
105 rules; amending s. 624.509, F.S.; providing an
106 insurance premium tax credit, during a certain
107 timeframe, for certain health insurers and health
108 maintenance organizations that cover services provided
109 by telehealth; requiring the Office of Insurance
110 Regulation to confirm certain coverage with the
111 department at certain timeframes; authorizing the
112 credit to be carried forward for a certain period;
113 authorizing the department to conduct certain audits
114 and investigations; requiring the Office of Insurance
115 Regulation to provide technical assistance to the
116 department; requiring the department to pursue
117 recovery of funds from taxpayers claiming the credit
118 under certain circumstances; specifying requirements
119 and procedures for transferring the credit to another
120 taxpayer; authorizing the department and the Financial
121 Services Commission to adopt certain rules; providing
122 that an insurer is not required to pay additional
123 retaliatory tax as a result of claiming such credit;
124 providing construction; defining terms; reenacting s.
125 212.20(4), F.S., relating to refunds of taxes
126 adjudicated unconstitutionally collected, to
127 incorporate the amendment made to s. 212.0596, F.S.,
128 in a reference thereto; authorizing the department to
129 adopt emergency rules; providing for expiration of the
130 authorization; providing for severability; providing
131 effective dates.
132
133 Be It Enacted by the Legislature of the State of Florida:
134
135 Section 1. Effective January 1, 2020, paragraph (c) of
136 subsection (11) of section 192.001, Florida Statutes, is amended
137 to read:
138 192.001 Definitions.—All definitions set out in chapters 1
139 and 200 that are applicable to this chapter are included herein.
140 In addition, the following definitions shall apply in the
141 imposition of ad valorem taxes:
142 (11) “Personal property,” for the purposes of ad valorem
143 taxation, shall be divided into four categories as follows:
144 (c)1. “Inventory” means only those chattels consisting of
145 items commonly referred to as goods, wares, and merchandise (as
146 well as inventory) which are held for sale or lease to customers
147 in the ordinary course of business. Supplies and raw materials
148 shall be considered to be inventory only to the extent that they
149 are acquired for sale or lease to customers in the ordinary
150 course of business or will physically become a part of
151 merchandise intended for sale or lease to customers in the
152 ordinary course of business. Partially finished products which
153 when completed will be held for sale or lease to customers in
154 the ordinary course of business shall be deemed items of
155 inventory. All livestock shall be considered inventory. Items of
156 inventory held for lease to customers in the ordinary course of
157 business, rather than for sale, shall be deemed inventory only
158 prior to the initial lease of such items. For the purposes of
159 this section, fuels used in the production of electricity shall
160 be considered inventory.
161 2. “Inventory” also means construction and agricultural
162 equipment weighing 1,000 pounds or more that is returned to a
163 dealership under a rent-to-purchase option and held for sale to
164 customers in the ordinary course of business. This subparagraph
165 may not be considered in determining whether property that is
166 not construction and agricultural equipment weighing 1,000
167 pounds or more that is returned under a rent-to-purchase option
168 is inventory under subparagraph 1.
169 3. Notwithstanding any provision in this subsection to the
170 contrary, the term “inventory,” for all levies other than school
171 district levies, also means construction equipment owned by a
172 heavy equipment rental dealer for sale or short-term rental in
173 the normal course of business on the annual assessment date. For
174 the purposes of this chapter and chapter 196, the term “heavy
175 equipment rental dealer” means a person or entity principally
176 engaged in the business of the short-term rental and sale of
177 equipment described under 532412 of the North American Industry
178 Classification System, including attachments for the equipment
179 or other ancillary equipment. As used in this subparagraph, the
180 term “short-term rental” means the rental of a dealer’s heavy
181 equipment rental property for a period of less than 365 days,
182 under an open-ended contract, or under a contract with unlimited
183 terms. The prior short-term rental of any construction or
184 industrial equipment does not disqualify such property from
185 qualifying as inventory under this paragraph following the term
186 of such rental. This section may not be construed to consider as
187 inventory heavy equipment rented with an operator.
188 Section 2. Effective January 1, 2020, paragraphs (a) and
189 (c) of subsection (2) of section 196.1978, Florida Statutes, are
190 amended to read:
191 196.1978 Affordable housing property exemption.—
192 (2)(a) Notwithstanding ss. 196.195 and 196.196, property in
193 a multifamily project that meets the requirements of this
194 paragraph is considered property used for a charitable purpose
195 and shall receive a 100 50 percent discount from the amount of
196 ad valorem tax otherwise owed beginning with the January 1
197 assessment after the 15th completed year of the term of the
198 recorded agreement on those portions of the affordable housing
199 property that provide housing to natural persons or families
200 meeting the extremely-low-income, very-low-income, or low-income
201 limits specified in s. 420.0004. The multifamily project must:
202 1. Contain more than 70 units that are used to provide
203 affordable housing to natural persons or families meeting the
204 extremely-low-income, very-low-income, or low-income limits
205 specified in s. 420.0004; and
206 2. Be subject to an agreement with the Florida Housing
207 Finance Corporation recorded in the official records of the
208 county in which the property is located to provide affordable
209 housing to natural persons or families meeting the extremely
210 low-income, very-low-income, or low-income limits specified in
211 s. 420.0004.
212
213 This discount terminates if the property no longer serves
214 extremely-low-income, very-low-income, or low-income persons
215 pursuant to the recorded agreement.
216 (c) The property appraiser shall apply the discount by
217 reducing the taxable value on those portions of the affordable
218 housing property that provide housing to natural persons or
219 families meeting the extremely-low-income, very-low-income, or
220 low-income limits specified in s. 420.0004 before certifying the
221 tax roll to the tax collector.
222 1. The property appraiser shall first ascertain all other
223 applicable exemptions, including exemptions provided pursuant to
224 local option, and deduct all other exemptions from the assessed
225 value.
226 2. One hundred Fifty percent of the remaining value shall
227 be subtracted to yield the discounted taxable value.
228 3. The resulting taxable value shall be included in the
229 certification for use by taxing authorities in setting millage.
230 4. The property appraiser shall place the discounted amount
231 on the tax roll when it is extended.
232 Section 3. Effective October 1, 2019, paragraph (e) of
233 subsection (14) of section 212.02, Florida Statutes, is amended,
234 and paragraph (f) is added to that subsection, to read:
235 212.02 Definitions.—The following terms and phrases when
236 used in this chapter have the meanings ascribed to them in this
237 section, except where the context clearly indicates a different
238 meaning:
239 (14)
240 (e) The term “retail sale” includes a remote mail order
241 sale, as defined in s. 212.0596(1).
242 (f) The term “retail sale” includes a sale facilitated
243 through a marketplace as defined in s. 212.05965(1).
244 Section 4. Effective January 1, 2020, paragraphs (c) and
245 (d) of subsection (1) of section 212.031, Florida Statutes, are
246 amended to read:
247 212.031 Tax on rental or license fee for use of real
248 property.—
249 (1)
250 (c) For the exercise of such privilege, a tax is levied at
251 the rate of 3.5 5.7 percent of and on the total rent or license
252 fee charged for such real property by the person charging or
253 collecting the rental or license fee. The total rent or license
254 fee charged for such real property shall include payments for
255 the granting of a privilege to use or occupy real property for
256 any purpose and shall include base rent, percentage rents, or
257 similar charges. Such charges shall be included in the total
258 rent or license fee subject to tax under this section whether or
259 not they can be attributed to the ability of the lessor’s or
260 licensor’s property as used or operated to attract customers.
261 Payments for intrinsically valuable personal property such as
262 franchises, trademarks, service marks, logos, or patents are not
263 subject to tax under this section. In the case of a contractual
264 arrangement that provides for both payments taxable as total
265 rent or license fee and payments not subject to tax, the tax
266 shall be based on a reasonable allocation of such payments and
267 shall not apply to that portion which is for the nontaxable
268 payments.
269 (d) When the rental or license fee of any such real
270 property is paid by way of property, goods, wares, merchandise,
271 services, or other thing of value, the tax shall be at the rate
272 of 3.5 5.7 percent of the value of the property, goods, wares,
273 merchandise, services, or other thing of value.
274 Section 5. Effective October 1, 2019, section 212.05,
275 Florida Statutes, is amended to read:
276 212.05 Sales, storage, use tax.—It is hereby declared to be
277 the legislative intent that every person is exercising a taxable
278 privilege who engages in the business of selling tangible
279 personal property at retail in this state, including the
280 business of making remote mail order sales;, or who rents or
281 furnishes any of the things or services taxable under this
282 chapter;, or who stores for use or consumption in this state any
283 item or article of tangible personal property as defined herein
284 and who leases or rents such property within the state.
285 (1) For the exercise of such privilege, a tax is levied on
286 each taxable transaction or incident, which tax is due and
287 payable as follows:
288 (a)1.a. At the rate of 6 percent of the sales price of each
289 item or article of tangible personal property when sold at
290 retail in this state, computed on each taxable sale for the
291 purpose of remitting the amount of tax due the state, and
292 including each and every retail sale.
293 b. Each occasional or isolated sale of an aircraft, boat,
294 mobile home, or motor vehicle of a class or type which is
295 required to be registered, licensed, titled, or documented in
296 this state or by the United States Government shall be subject
297 to tax at the rate provided in this paragraph. The department
298 shall by rule adopt any nationally recognized publication for
299 valuation of used motor vehicles as the reference price list for
300 any used motor vehicle which is required to be licensed pursuant
301 to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any
302 party to an occasional or isolated sale of such a vehicle
303 reports to the tax collector a sales price which is less than 80
304 percent of the average loan price for the specified model and
305 year of such vehicle as listed in the most recent reference
306 price list, the tax levied under this paragraph shall be
307 computed by the department on such average loan price unless the
308 parties to the sale have provided to the tax collector an
309 affidavit signed by each party, or other substantial proof,
310 stating the actual sales price. Any party to such sale who
311 reports a sales price less than the actual sales price is guilty
312 of a misdemeanor of the first degree, punishable as provided in
313 s. 775.082 or s. 775.083. The department shall collect or
314 attempt to collect from such party any delinquent sales taxes.
315 In addition, such party shall pay any tax due and any penalty
316 and interest assessed plus a penalty equal to twice the amount
317 of the additional tax owed. Notwithstanding any other provision
318 of law, the Department of Revenue may waive or compromise any
319 penalty imposed pursuant to this subparagraph.
320 2. This paragraph does not apply to the sale of a boat or
321 aircraft by or through a registered dealer under this chapter to
322 a purchaser who, at the time of taking delivery, is a
323 nonresident of this state, does not make his or her permanent
324 place of abode in this state, and is not engaged in carrying on
325 in this state any employment, trade, business, or profession in
326 which the boat or aircraft will be used in this state, or is a
327 corporation none of the officers or directors of which is a
328 resident of, or makes his or her permanent place of abode in,
329 this state, or is a noncorporate entity that has no individual
330 vested with authority to participate in the management,
331 direction, or control of the entity’s affairs who is a resident
332 of, or makes his or her permanent abode in, this state. For
333 purposes of this exemption, either a registered dealer acting on
334 his or her own behalf as seller, a registered dealer acting as
335 broker on behalf of a seller, or a registered dealer acting as
336 broker on behalf of the purchaser may be deemed to be the
337 selling dealer. This exemption shall not be allowed unless:
338 a. The purchaser removes a qualifying boat, as described in
339 sub-subparagraph f., from the state within 90 days after the
340 date of purchase or extension, or the purchaser removes a
341 nonqualifying boat or an aircraft from this state within 10 days
342 after the date of purchase or, when the boat or aircraft is
343 repaired or altered, within 20 days after completion of the
344 repairs or alterations; or if the aircraft will be registered in
345 a foreign jurisdiction and:
346 (I) Application for the aircraft’s registration is properly
347 filed with a civil airworthiness authority of a foreign
348 jurisdiction within 10 days after the date of purchase;
349 (II) The purchaser removes the aircraft from the state to a
350 foreign jurisdiction within 10 days after the date the aircraft
351 is registered by the applicable foreign airworthiness authority;
352 and
353 (III) The aircraft is operated in the state solely to
354 remove it from the state to a foreign jurisdiction.
355
356 For purposes of this sub-subparagraph, the term “foreign
357 jurisdiction” means any jurisdiction outside of the United
358 States or any of its territories;
359 b. The purchaser, within 30 days from the date of
360 departure, provides the department with written proof that the
361 purchaser licensed, registered, titled, or documented the boat
362 or aircraft outside the state. If such written proof is
363 unavailable, within 30 days the purchaser shall provide proof
364 that the purchaser applied for such license, title,
365 registration, or documentation. The purchaser shall forward to
366 the department proof of title, license, registration, or
367 documentation upon receipt;
368 c. The purchaser, within 10 days of removing the boat or
369 aircraft from Florida, furnishes the department with proof of
370 removal in the form of receipts for fuel, dockage, slippage,
371 tie-down, or hangaring from outside of Florida. The information
372 so provided must clearly and specifically identify the boat or
373 aircraft;
374 d. The selling dealer, within 5 days of the date of sale,
375 provides to the department a copy of the sales invoice, closing
376 statement, bills of sale, and the original affidavit signed by
377 the purchaser attesting that he or she has read the provisions
378 of this section;
379 e. The seller makes a copy of the affidavit a part of his
380 or her record for as long as required by s. 213.35; and
381 f. Unless the nonresident purchaser of a boat of 5 net tons
382 of admeasurement or larger intends to remove the boat from this
383 state within 10 days after the date of purchase or when the boat
384 is repaired or altered, within 20 days after completion of the
385 repairs or alterations, the nonresident purchaser applies to the
386 selling dealer for a decal which authorizes 90 days after the
387 date of purchase for removal of the boat. The nonresident
388 purchaser of a qualifying boat may apply to the selling dealer
389 within 60 days after the date of purchase for an extension decal
390 that authorizes the boat to remain in this state for an
391 additional 90 days, but not more than a total of 180 days,
392 before the nonresident purchaser is required to pay the tax
393 imposed by this chapter. The department is authorized to issue
394 decals in advance to dealers. The number of decals issued in
395 advance to a dealer shall be consistent with the volume of the
396 dealer’s past sales of boats which qualify under this sub
397 subparagraph. The selling dealer or his or her agent shall mark
398 and affix the decals to qualifying boats in the manner
399 prescribed by the department, before delivery of the boat.
400 (I) The department is hereby authorized to charge dealers a
401 fee sufficient to recover the costs of decals issued, except the
402 extension decal shall cost $425.
403 (II) The proceeds from the sale of decals will be deposited
404 into the administrative trust fund.
405 (III) Decals shall display information to identify the boat
406 as a qualifying boat under this sub-subparagraph, including, but
407 not limited to, the decal’s date of expiration.
408 (IV) The department is authorized to require dealers who
409 purchase decals to file reports with the department and may
410 prescribe all necessary records by rule. All such records are
411 subject to inspection by the department.
412 (V) Any dealer or his or her agent who issues a decal
413 falsely, fails to affix a decal, mismarks the expiration date of
414 a decal, or fails to properly account for decals will be
415 considered prima facie to have committed a fraudulent act to
416 evade the tax and will be liable for payment of the tax plus a
417 mandatory penalty of 200 percent of the tax, and shall be liable
418 for fine and punishment as provided by law for a conviction of a
419 misdemeanor of the first degree, as provided in s. 775.082 or s.
420 775.083.
421 (VI) Any nonresident purchaser of a boat who removes a
422 decal before permanently removing the boat from the state, or
423 defaces, changes, modifies, or alters a decal in a manner
424 affecting its expiration date before its expiration, or who
425 causes or allows the same to be done by another, will be
426 considered prima facie to have committed a fraudulent act to
427 evade the tax and will be liable for payment of the tax plus a
428 mandatory penalty of 200 percent of the tax, and shall be liable
429 for fine and punishment as provided by law for a conviction of a
430 misdemeanor of the first degree, as provided in s. 775.082 or s.
431 775.083.
432 (VII) The department is authorized to adopt rules necessary
433 to administer and enforce this subparagraph and to publish the
434 necessary forms and instructions.
435 (VIII) The department is hereby authorized to adopt
436 emergency rules pursuant to s. 120.54(4) to administer and
437 enforce the provisions of this subparagraph.
438
439 If the purchaser fails to remove the qualifying boat from this
440 state within the maximum 180 days after purchase or a
441 nonqualifying boat or an aircraft from this state within 10 days
442 after purchase or, when the boat or aircraft is repaired or
443 altered, within 20 days after completion of such repairs or
444 alterations, or permits the boat or aircraft to return to this
445 state within 6 months from the date of departure, except as
446 provided in s. 212.08(7)(fff), or if the purchaser fails to
447 furnish the department with any of the documentation required by
448 this subparagraph within the prescribed time period, the
449 purchaser shall be liable for use tax on the cost price of the
450 boat or aircraft and, in addition thereto, payment of a penalty
451 to the Department of Revenue equal to the tax payable. This
452 penalty shall be in lieu of the penalty imposed by s. 212.12(2).
453 The maximum 180-day period following the sale of a qualifying
454 boat tax-exempt to a nonresident may not be tolled for any
455 reason.
456 (b) At the rate of 6 percent of the cost price of each item
457 or article of tangible personal property when the same is not
458 sold but is used, consumed, distributed, or stored for use or
459 consumption in this state; however, for tangible property
460 originally purchased exempt from tax for use exclusively for
461 lease and which is converted to the owner’s own use, tax may be
462 paid on the fair market value of the property at the time of
463 conversion. If the fair market value of the property cannot be
464 determined, use tax at the time of conversion shall be based on
465 the owner’s acquisition cost. Under no circumstances may the
466 aggregate amount of sales tax from leasing the property and use
467 tax due at the time of conversion be less than the total sales
468 tax that would have been due on the original acquisition cost
469 paid by the owner.
470 (c) At the rate of 6 percent of the gross proceeds derived
471 from the lease or rental of tangible personal property, as
472 defined herein; however, the following special provisions apply
473 to the lease or rental of motor vehicles:
474 1. When a motor vehicle is leased or rented for a period of
475 less than 12 months:
476 a. If the motor vehicle is rented in Florida, the entire
477 amount of such rental is taxable, even if the vehicle is dropped
478 off in another state.
479 b. If the motor vehicle is rented in another state and
480 dropped off in Florida, the rental is exempt from Florida tax.
481 2. Except as provided in subparagraph 3., for the lease or
482 rental of a motor vehicle for a period of not less than 12
483 months, sales tax is due on the lease or rental payments if the
484 vehicle is registered in this state; provided, however, that no
485 tax shall be due if the taxpayer documents use of the motor
486 vehicle outside this state and tax is being paid on the lease or
487 rental payments in another state.
488 3. The tax imposed by this chapter does not apply to the
489 lease or rental of a commercial motor vehicle as defined in s.
490 316.003(13)(a) to one lessee or rentee for a period of not less
491 than 12 months when tax was paid on the purchase price of such
492 vehicle by the lessor. To the extent tax was paid with respect
493 to the purchase of such vehicle in another state, territory of
494 the United States, or the District of Columbia, the Florida tax
495 payable shall be reduced in accordance with the provisions of s.
496 212.06(7). This subparagraph shall only be available when the
497 lease or rental of such property is an established business or
498 part of an established business or the same is incidental or
499 germane to such business.
500 (d) At the rate of 6 percent of the lease or rental price
501 paid by a lessee or rentee, or contracted or agreed to be paid
502 by a lessee or rentee, to the owner of the tangible personal
503 property.
504 (e)1. At the rate of 6 percent on charges for:
505 a. Prepaid calling arrangements. The tax on charges for
506 prepaid calling arrangements shall be collected at the time of
507 sale and remitted by the selling dealer.
508 (I) “Prepaid calling arrangement” has the same meaning as
509 provided in s. 202.11.
510 (II) If the sale or recharge of the prepaid calling
511 arrangement does not take place at the dealer’s place of
512 business, it shall be deemed to have taken place at the
513 customer’s shipping address or, if no item is shipped, at the
514 customer’s address or the location associated with the
515 customer’s mobile telephone number.
516 (III) The sale or recharge of a prepaid calling arrangement
517 shall be treated as a sale of tangible personal property for
518 purposes of this chapter, regardless of whether a tangible item
519 evidencing such arrangement is furnished to the purchaser, and
520 such sale within this state subjects the selling dealer to the
521 jurisdiction of this state for purposes of this subsection.
522 (IV) No additional tax under this chapter or chapter 202 is
523 due or payable if a purchaser of a prepaid calling arrangement
524 who has paid tax under this chapter on the sale or recharge of
525 such arrangement applies one or more units of the prepaid
526 calling arrangement to obtain communications services as
527 described in s. 202.11(9)(b)3., other services that are not
528 communications services, or products.
529 b. The installation of telecommunication and telegraphic
530 equipment.
531 c. Electrical power or energy, except that the tax rate for
532 charges for electrical power or energy is 4.35 percent. Charges
533 for electrical power and energy do not include taxes imposed
534 under ss. 166.231 and 203.01(1)(a)3.
535 2. Section 212.17(3), regarding credit for tax paid on
536 charges subsequently found to be worthless, is equally
537 applicable to any tax paid under this section on charges for
538 prepaid calling arrangements, telecommunication or telegraph
539 services, or electric power subsequently found to be
540 uncollectible. As used in this paragraph, the term “charges”
541 does not include any excise or similar tax levied by the Federal
542 Government, a political subdivision of this state, or a
543 municipality upon the purchase, sale, or recharge of prepaid
544 calling arrangements or upon the purchase or sale of
545 telecommunication, television system program, or telegraph
546 service or electric power, which tax is collected by the seller
547 from the purchaser.
548 (f) At the rate of 6 percent on the sale, rental, use,
549 consumption, or storage for use in this state of machines and
550 equipment, and parts and accessories therefor, used in
551 manufacturing, processing, compounding, producing, mining, or
552 quarrying personal property for sale or to be used in furnishing
553 communications, transportation, or public utility services.
554 (g)1. At the rate of 6 percent on the retail price of
555 newspapers and magazines sold or used in Florida.
556 2. Notwithstanding other provisions of this chapter,
557 inserts of printed materials which are distributed with a
558 newspaper or magazine are a component part of the newspaper or
559 magazine, and neither the sale nor use of such inserts is
560 subject to tax when:
561 a. Printed by a newspaper or magazine publisher or
562 commercial printer and distributed as a component part of a
563 newspaper or magazine, which means that the items after being
564 printed are delivered directly to a newspaper or magazine
565 publisher by the printer for inclusion in editions of the
566 distributed newspaper or magazine;
567 b. Such publications are labeled as part of the designated
568 newspaper or magazine publication into which they are to be
569 inserted; and
570 c. The purchaser of the insert presents a resale
571 certificate to the vendor stating that the inserts are to be
572 distributed as a component part of a newspaper or magazine.
573 (h)1. A tax is imposed at the rate of 4 percent on the
574 charges for the use of coin-operated amusement machines. The tax
575 shall be calculated by dividing the gross receipts from such
576 charges for the applicable reporting period by a divisor,
577 determined as provided in this subparagraph, to compute gross
578 taxable sales, and then subtracting gross taxable sales from
579 gross receipts to arrive at the amount of tax due. For counties
580 that do not impose a discretionary sales surtax, the divisor is
581 equal to 1.04; for counties that impose a 0.5 percent
582 discretionary sales surtax, the divisor is equal to 1.045; for
583 counties that impose a 1 percent discretionary sales surtax, the
584 divisor is equal to 1.050; and for counties that impose a 2
585 percent sales surtax, the divisor is equal to 1.060. If a county
586 imposes a discretionary sales surtax that is not listed in this
587 subparagraph, the department shall make the applicable divisor
588 available in an electronic format or otherwise. Additional
589 divisors shall bear the same mathematical relationship to the
590 next higher and next lower divisors as the new surtax rate bears
591 to the next higher and next lower surtax rates for which
592 divisors have been established. When a machine is activated by a
593 slug, token, coupon, or any similar device which has been
594 purchased, the tax is on the price paid by the user of the
595 device for such device.
596 2. As used in this paragraph, the term “operator” means any
597 person who possesses a coin-operated amusement machine for the
598 purpose of generating sales through that machine and who is
599 responsible for removing the receipts from the machine.
600 a. If the owner of the machine is also the operator of it,
601 he or she shall be liable for payment of the tax without any
602 deduction for rent or a license fee paid to a location owner for
603 the use of any real property on which the machine is located.
604 b. If the owner or lessee of the machine is also its
605 operator, he or she shall be liable for payment of the tax on
606 the purchase or lease of the machine, as well as the tax on
607 sales generated through the machine.
608 c. If the proprietor of the business where the machine is
609 located does not own the machine, he or she shall be deemed to
610 be the lessee and operator of the machine and is responsible for
611 the payment of the tax on sales, unless such responsibility is
612 otherwise provided for in a written agreement between him or her
613 and the machine owner.
614 3.a. An operator of a coin-operated amusement machine may
615 not operate or cause to be operated in this state any such
616 machine until the operator has registered with the department
617 and has conspicuously displayed an identifying certificate
618 issued by the department. The identifying certificate shall be
619 issued by the department upon application from the operator. The
620 identifying certificate shall include a unique number, and the
621 certificate shall be permanently marked with the operator’s
622 name, the operator’s sales tax number, and the maximum number of
623 machines to be operated under the certificate. An identifying
624 certificate shall not be transferred from one operator to
625 another. The identifying certificate must be conspicuously
626 displayed on the premises where the coin-operated amusement
627 machines are being operated.
628 b. The operator of the machine must obtain an identifying
629 certificate before the machine is first operated in the state
630 and by July 1 of each year thereafter. The annual fee for each
631 certificate shall be based on the number of machines identified
632 on the application times $30 and is due and payable upon
633 application for the identifying device. The application shall
634 contain the operator’s name, sales tax number, business address
635 where the machines are being operated, and the number of
636 machines in operation at that place of business by the operator.
637 No operator may operate more machines than are listed on the
638 certificate. A new certificate is required if more machines are
639 being operated at that location than are listed on the
640 certificate. The fee for the new certificate shall be based on
641 the number of additional machines identified on the application
642 form times $30.
643 c. A penalty of $250 per machine is imposed on the operator
644 for failing to properly obtain and display the required
645 identifying certificate. A penalty of $250 is imposed on the
646 lessee of any machine placed in a place of business without a
647 proper current identifying certificate. Such penalties shall
648 apply in addition to all other applicable taxes, interest, and
649 penalties.
650 d. Operators of coin-operated amusement machines must
651 obtain a separate sales and use tax certificate of registration
652 for each county in which such machines are located. One sales
653 and use tax certificate of registration is sufficient for all of
654 the operator’s machines within a single county.
655 4. The provisions of this paragraph do not apply to coin
656 operated amusement machines owned and operated by churches or
657 synagogues.
658 5. In addition to any other penalties imposed by this
659 chapter, a person who knowingly and willfully violates any
660 provision of this paragraph commits a misdemeanor of the second
661 degree, punishable as provided in s. 775.082 or s. 775.083.
662 6. The department may adopt rules necessary to administer
663 the provisions of this paragraph.
664 (i)1. At the rate of 6 percent on charges for all:
665 a. Detective, burglar protection, and other protection
666 services (NAICS National Numbers 561611, 561612, 561613, and
667 561621). Fingerprint services required under s. 790.06 or s.
668 790.062 are not subject to the tax. Any law enforcement officer,
669 as defined in s. 943.10, who is performing approved duties as
670 determined by his or her local law enforcement agency in his or
671 her capacity as a law enforcement officer, and who is subject to
672 the direct and immediate command of his or her law enforcement
673 agency, and in the law enforcement officer’s uniform as
674 authorized by his or her law enforcement agency, is performing
675 law enforcement and public safety services and is not performing
676 detective, burglar protection, or other protective services, if
677 the law enforcement officer is performing his or her approved
678 duties in a geographical area in which the law enforcement
679 officer has arrest jurisdiction. Such law enforcement and public
680 safety services are not subject to tax irrespective of whether
681 the duty is characterized as “extra duty,” “off-duty,” or
682 “secondary employment,” and irrespective of whether the officer
683 is paid directly or through the officer’s agency by an outside
684 source. The term “law enforcement officer” includes full-time or
685 part-time law enforcement officers, and any auxiliary law
686 enforcement officer, when such auxiliary law enforcement officer
687 is working under the direct supervision of a full-time or part
688 time law enforcement officer.
689 b. Nonresidential cleaning, excluding cleaning of the
690 interiors of transportation equipment, and nonresidential
691 building pest control services (NAICS National Numbers 561710
692 and 561720).
693 2. As used in this paragraph, “NAICS” means those
694 classifications contained in the North American Industry
695 Classification System, as published in 2007 by the Office of
696 Management and Budget, Executive Office of the President.
697 3. Charges for detective, burglar protection, and other
698 protection security services performed in this state but used
699 outside this state are exempt from taxation. Charges for
700 detective, burglar protection, and other protection security
701 services performed outside this state and used in this state are
702 subject to tax.
703 4. If a transaction involves both the sale or use of a
704 service taxable under this paragraph and the sale or use of a
705 service or any other item not taxable under this chapter, the
706 consideration paid must be separately identified and stated with
707 respect to the taxable and exempt portions of the transaction or
708 the entire transaction shall be presumed taxable. The burden
709 shall be on the seller of the service or the purchaser of the
710 service, whichever applicable, to overcome this presumption by
711 providing documentary evidence as to which portion of the
712 transaction is exempt from tax. The department is authorized to
713 adjust the amount of consideration identified as the taxable and
714 exempt portions of the transaction; however, a determination
715 that the taxable and exempt portions are inaccurately stated and
716 that the adjustment is applicable must be supported by
717 substantial competent evidence.
718 5. Each seller of services subject to sales tax pursuant to
719 this paragraph shall maintain a monthly log showing each
720 transaction for which sales tax was not collected because the
721 services meet the requirements of subparagraph 3. for out-of
722 state use. The log must identify the purchaser’s name, location
723 and mailing address, and federal employer identification number,
724 if a business, or the social security number, if an individual,
725 the service sold, the price of the service, the date of sale,
726 the reason for the exemption, and the sales invoice number. The
727 monthly log shall be maintained pursuant to the same
728 requirements and subject to the same penalties imposed for the
729 keeping of similar records pursuant to this chapter.
730 (j)1. Notwithstanding any other provision of this chapter,
731 there is hereby levied a tax on the sale, use, consumption, or
732 storage for use in this state of any coin or currency, whether
733 in circulation or not, when such coin or currency:
734 a. Is not legal tender;
735 b. If legal tender, is sold, exchanged, or traded at a rate
736 in excess of its face value; or
737 c. Is sold, exchanged, or traded at a rate based on its
738 precious metal content.
739 2. Such tax shall be at a rate of 6 percent of the price at
740 which the coin or currency is sold, exchanged, or traded, except
741 that, with respect to a coin or currency which is legal tender
742 of the United States and which is sold, exchanged, or traded,
743 such tax shall not be levied.
744 3. There are exempt from this tax exchanges of coins or
745 currency which are in general circulation in, and legal tender
746 of, one nation for coins or currency which are in general
747 circulation in, and legal tender of, another nation when
748 exchanged solely for use as legal tender and at an exchange rate
749 based on the relative value of each as a medium of exchange.
750 4. With respect to any transaction that involves the sale
751 of coins or currency taxable under this paragraph in which the
752 taxable amount represented by the sale of such coins or currency
753 exceeds $500, the entire amount represented by the sale of such
754 coins or currency is exempt from the tax imposed under this
755 paragraph. The dealer must maintain proper documentation, as
756 prescribed by rule of the department, to identify that portion
757 of a transaction which involves the sale of coins or currency
758 and is exempt under this subparagraph.
759 (k) At the rate of 6 percent of the sales price of each
760 gallon of diesel fuel not taxed under chapter 206 purchased for
761 use in a vessel, except dyed diesel fuel that is exempt pursuant
762 to s. 212.08(4)(a)4.
763 (l) Florists located in this state are liable for sales tax
764 on sales to retail customers regardless of where or by whom the
765 items sold are to be delivered. Florists located in this state
766 are not liable for sales tax on payments received from other
767 florists for items delivered to customers in this state.
768 (m) Operators of game concessions or other concessionaires
769 who customarily award tangible personal property as prizes may,
770 in lieu of paying tax on the cost price of such property, pay
771 tax on 25 percent of the gross receipts from such concession
772 activity.
773 (2) The tax shall be collected by the dealer, as defined
774 herein, and remitted by the dealer to the state at the time and
775 in the manner as hereinafter provided.
776 (3) The tax so levied is in addition to all other taxes,
777 whether levied in the form of excise, license, or privilege
778 taxes, and in addition to all other fees and taxes levied.
779 (4) The tax imposed pursuant to this chapter shall be due
780 and payable according to the brackets set forth in s. 212.12.
781 (5) Notwithstanding any other provision of this chapter,
782 the maximum amount of tax imposed under this chapter and
783 collected on each sale or use of a boat in this state may not
784 exceed $18,000 and on each repair of a boat in this state may
785 not exceed $60,000.
786 Section 6. Effective October 1, 2019, section 212.0596,
787 Florida Statutes, is amended to read:
788 212.0596 Taxation of remote mail order sales.—
789 (1) For purposes of this chapter, a “remote mail order
790 sale” is a retail sale of tangible personal property, ordered by
791 mail, telephone, the Internet, or other means of communication,
792 from a dealer who receives the order outside of this state in
793 another state of the United States, or in a commonwealth,
794 territory, or other area under the jurisdiction of the United
795 States, and transports the property or causes the property to be
796 transported, whether or not by mail, from any jurisdiction of
797 the United States, including this state, to a person in this
798 state, including the person who ordered the property.
799 (2) Every dealer as defined in s. 212.06(2)(c) who makes a
800 remote mail order sale is subject to the power of this state to
801 levy and collect the tax imposed by this chapter when any of the
802 following applies:
803 (a) The dealer is a corporation doing business under the
804 laws of this state or is a person domiciled in, a resident of,
805 or a citizen of, this state.;
806 (b) The dealer maintains retail establishments or offices
807 in this state, regardless of whether the remote mail order sales
808 thus subject to taxation by this state result from or are
809 related in any other way to the activities of such
810 establishments or offices.;
811 (c) The dealer has agents in this state who solicit
812 business or transact business on behalf of the dealer,
813 regardless of whether the remote mail order sales thus subject
814 to taxation by this state result from or are related in any
815 other way to such solicitation or transaction of business,
816 except that a printer who mails or delivers for an out-of-state
817 print purchaser material the printer printed for it is shall not
818 be deemed to be the print purchaser’s agent for purposes of this
819 paragraph.;
820 (d) The property was delivered in this state in fulfillment
821 of a sales contract that was entered into in this state, in
822 accordance with applicable conflict of laws rules, when a person
823 in this state accepted an offer by ordering the property.;
824 (e) The dealer, by purposefully or systematically
825 exploiting the market provided by this state by any media
826 assisted, media-facilitated, or media-solicited means,
827 including, but not limited to, direct mail advertising,
828 unsolicited distribution of catalogs, computer-assisted
829 shopping, television, radio, or other electronic media, or
830 magazine or newspaper advertisements or other media, creates
831 nexus with this state.;
832 (f) Through compact or reciprocity with another
833 jurisdiction of the United States, that jurisdiction uses its
834 taxing power and its jurisdiction over the retailer in support
835 of this state’s taxing power.;
836 (g) The dealer consents, expressly or by implication, to
837 the imposition of the tax imposed under by this chapter.;
838 (h) The dealer is subject to service of process under s.
839 48.181.;
840 (i) The dealer’s remote mail order sales are subject to the
841 power of this state to tax sales or to require the dealer to
842 collect use taxes under a statute or statutes of the United
843 States.;
844 (j) The dealer owns real property or tangible personal
845 property that is physically in this state. For purposes of this
846 paragraph, except that a dealer whose only property, (including
847 property owned by an affiliate,) in this state is located at the
848 premises of a printer with which the vendor has contracted for
849 printing, and is either a final printed product, or property
850 that which becomes a part of the final printed product, or
851 property from which the printed product is produced, is not
852 deemed to own such property. for purposes of this paragraph;
853 (k) The dealer, while not having nexus with this state on
854 any of the bases described in paragraphs (a)-(j) or paragraph
855 (l), is a corporation that is a member of an affiliated group of
856 corporations, as defined in s. 1504(a) of the Internal Revenue
857 Code, whose members are includable under s. 1504(b) of the
858 Internal Revenue Code and whose members are eligible to file a
859 consolidated tax return for federal corporate income tax
860 purposes and any parent or subsidiary corporation in the
861 affiliated group has nexus with this state on one or more of the
862 bases described in paragraphs (a)-(j) or paragraph (l).; or
863 (l) The dealer or The dealer’s activities, have sufficient
864 connection with or relationship to this state or its residents
865 of some type other than those described in paragraphs (a)-(k),
866 result in making a substantial number of remote sales under
867 subsection (3) to create nexus empowering this state to tax its
868 mail order sales or to require the dealer to collect sales tax
869 or accrue use tax.
870 (3)(a) Every person dealer engaged in the business of
871 making a substantial number of remote mail order sales is a
872 dealer for purposes of this chapter subject to the requirements
873 of this chapter for cooperation of dealers in collection of
874 taxes and in administration of this chapter, except that no fee
875 shall be imposed upon such dealer for carrying out any required
876 activity.
877 (b) As used in this section, the term “making a substantial
878 number of remote sales” means:
879 1. In the previous calendar year, conducting 200 or more
880 retail sales of tangible personal property to be delivered to a
881 location within this state; or
882 2. In the previous calendar year, conducting any number of
883 retail sales of tangible personal property to be delivered to a
884 location within this state, in an amount exceeding $100,000.
885
886 For purposes of this paragraph, tangible personal property
887 delivered to a location within this state is presumed to be
888 used, consumed, distributed, or stored to be used or consumed in
889 this state.
890 (4) The department shall, with the consent of another
891 jurisdiction of the United States whose cooperation is needed,
892 enforce this chapter in that jurisdiction, either directly or,
893 at the option of that jurisdiction, through its officers or
894 employees.
895 (5) The tax required under this section to be collected and
896 any amount unreturned to a purchaser that is not tax but was
897 collected from the purchaser under the representation that it
898 was tax constitute funds of the State of Florida from the moment
899 of collection.
900 (6) Notwithstanding other provisions of law, a dealer who
901 makes a mail order sale in this state is exempt from collecting
902 and remitting any local option surtax on the sale, unless the
903 dealer is located in a county that imposes a surtax within the
904 meaning of s. 212.054(3)(a), the order is placed through the
905 dealer’s location in such county, and the property purchased is
906 delivered into such county or into another county in this state
907 that levies the surtax, in which case the provisions of s.
908 212.054(3)(a) are applicable.
909 (7) The department may establish by rule procedures for
910 collecting the use tax from unregistered persons who but for
911 their remote mail order purchases would not be required to remit
912 sales or use tax directly to the department. The procedures may
913 provide for waiver of registration, provisions for irregular
914 remittance of tax, elimination of the collection allowance, and
915 nonapplication of local option surtaxes.
916 Section 7. Effective October 1, 2019, section 212.05965,
917 Florida Statutes, is created to read:
918 212.05965 Taxation of marketplace sales.—
919 (1) As used in this section, the term:
920 (a) “Marketplace” means any physical place or electronic
921 medium through which tangible personal property is offered for
922 sale.
923 (b) “Marketplace provider” means any person who:
924 1. Facilitates a retail sale by a marketplace seller by
925 listing or advertising for sale by the marketplace seller
926 tangible personal property in a marketplace; and
927 2. Directly, or indirectly through agreements or
928 arrangements with third parties, collects payment from the
929 customer and transmits the payment to the marketplace seller,
930 regardless of whether the marketplace provider receives
931 compensation or other consideration in exchange for its
932 services.
933
934 The term does not include any person who solely provides
935 handling or transportation services not subject to tax under
936 this chapter or travel agency services. For purposes of this
937 paragraph, the term “travel agency services” means arranging,
938 booking, or otherwise facilitating, for a commission, fee, or
939 other consideration, vacation or travel packages, a rental car,
940 or other travel reservations; tickets for domestic or foreign
941 travel by air, rail, ship, bus, or other medium of
942 transportation; or hotel or other lodging accommodations.
943 (c) “Marketplace seller” means a person who has an
944 agreement with a marketplace provider and who makes retail sales
945 of tangible personal property through a marketplace owned,
946 operated, or controlled by a marketplace provider.
947 (2) Every marketplace provider with a physical presence in
948 this state or who is making or facilitating through a
949 marketplace a substantial number of remote sales as defined in
950 s. 212.0596(3)(b) is subject to the requirements imposed by this
951 chapter on dealers for registration and for the collection and
952 remittance of taxes and the administration of this chapter.
953 (3) A marketplace provider shall certify to its marketplace
954 sellers that it will collect and remit the tax imposed under
955 this chapter on taxable retail sales made through the
956 marketplace. Such certification may be included in the agreement
957 between the marketplace provider and marketplace seller.
958 (4)(a) A marketplace seller may not collect and remit the
959 tax under this chapter on a taxable retail sale when the sale is
960 made through the marketplace and the marketplace provider
961 certifies, as required under subsection (3), that it will
962 collect and remit such tax. A marketplace seller shall exclude
963 such sales made through the marketplace from the marketplace
964 seller’s tax return under s. 212.11.
965 (b)1. A marketplace seller with a physical presence in this
966 state shall register and shall collect and remit the tax imposed
967 under this chapter on all taxable retail sales made outside of
968 the marketplace.
969 2. A marketplace seller making a substantial number of
970 remote sales as defined in s. 212.0596(3)(b) shall register and
971 shall collect and remit the tax imposed under this chapter on
972 all taxable retail sales made outside of the marketplace. Sales
973 made through the marketplace are not considered for purposes of
974 determining if the seller has made a substantial number of
975 remote sales.
976 (5)(a) A marketplace provider shall allow the department to
977 examine and audit its books and records pursuant to s. 212.13.
978 For retail sales facilitated through a marketplace, the
979 department may not examine or audit the books and records of
980 marketplace sellers, nor may the department assess marketplace
981 sellers except to the extent the marketplace provider seeks
982 relief under paragraph (b). The department may examine, audit,
983 and assess a marketplace seller for retail sales made outside of
984 the marketplace under paragraph (4)(b).
985 (b) The marketplace provider is relieved of liability for
986 the tax for the retail sale, and the marketplace seller or
987 customer is liable for the tax imposed under this chapter, if
988 the marketplace provider demonstrates to the satisfaction of the
989 department that the marketplace provider made a reasonable
990 effort to obtain accurate information related to the retail
991 sales facilitated through the marketplace from the marketplace
992 seller, but that the failure to collect and pay the correct
993 amount of tax imposed under this chapter was due to incorrect or
994 incomplete information provided by the marketplace seller to the
995 marketplace provider. This paragraph does not apply to a retail
996 sale for which the marketplace provider is the seller, if the
997 marketplace provider and marketplace seller are related parties
998 or if transactions between a marketplace seller and marketplace
999 buyer are not conducted at arm’s length.
1000 (6) For purposes of registration pursuant to s. 212.18, a
1001 marketplace is deemed a separate place of business.
1002 (7) A marketplace provider and marketplace seller may agree
1003 by contract or otherwise that if a marketplace provider pays the
1004 tax imposed under this chapter on a retail sale facilitated
1005 through a marketplace for a marketplace seller as a result of an
1006 audit or otherwise, the marketplace provider has the right to
1007 recover such tax and any associated interest and penalties from
1008 the marketplace seller.
1009 (8) Consistent with s. 213.21, the department may
1010 compromise any tax, interest, or penalty assessed on retail
1011 sales conducted through a marketplace.
1012 (9) For purposes of this section, the limitations in ss.
1013 213.30(3) and 213.756(2) apply.
1014 (10) This section may not be construed to authorize the
1015 state to collect sales tax from both the marketplace provider
1016 and the marketplace seller on the same retail sale.
1017 Section 8. Effective October 1, 2019, paragraph (c) of
1018 subsection (2) and paragraph (a) of subsection (5) of section
1019 212.06, Florida Statutes, are amended to read:
1020 212.06 Sales, storage, use tax; collectible from dealers;
1021 “dealer” defined; dealers to collect from purchasers;
1022 legislative intent as to scope of tax.—
1023 (2)
1024 (c) The term “dealer” is further defined to mean every
1025 person, as used in this chapter, who sells at retail or who
1026 offers for sale at retail, or who has in his or her possession
1027 for sale at retail; or for use, consumption, or distribution; or
1028 for storage to be used or consumed in this state, tangible
1029 personal property as defined herein, including a retailer who
1030 transacts a remote mail order sale and a marketplace provider
1031 who facilitates a retail sale through a marketplace.
1032 (5)(a)1. Except as provided in subparagraph 2., it is not
1033 the intention of this chapter to levy a tax upon tangible
1034 personal property imported, produced, or manufactured in this
1035 state for export, provided that tangible personal property may
1036 not be considered as being imported, produced, or manufactured
1037 for export unless the importer, producer, or manufacturer
1038 delivers the same to a licensed exporter for exporting or to a
1039 common carrier for shipment outside the state or mails the same
1040 by United States mail to a destination outside the state; or, in
1041 the case of aircraft being exported under their own power to a
1042 destination outside the continental limits of the United States,
1043 by submission to the department of a duly signed and validated
1044 United States customs declaration, showing the departure of the
1045 aircraft from the continental United States; and further with
1046 respect to aircraft, the canceled United States registry of said
1047 aircraft; or in the case of parts and equipment installed on
1048 aircraft of foreign registry, by submission to the department of
1049 documentation, the extent of which shall be provided by rule,
1050 showing the departure of the aircraft from the continental
1051 United States; nor is it the intention of this chapter to levy a
1052 tax on any sale which the state is prohibited from taxing under
1053 the Constitution or laws of the United States. Every retail sale
1054 made to a person physically present at the time of sale shall be
1055 presumed to have been delivered in this state.
1056 2.a. Notwithstanding subparagraph 1., a tax is levied on
1057 each sale of tangible personal property to be transported to a
1058 cooperating state as defined in sub-subparagraph c., at the rate
1059 specified in sub-subparagraph d. However, a Florida dealer will
1060 be relieved from the requirements of collecting taxes pursuant
1061 to this subparagraph if the Florida dealer obtains from the
1062 purchaser an affidavit setting forth the purchaser’s name,
1063 address, state taxpayer identification number, and a statement
1064 that the purchaser is aware of his or her state’s use tax laws,
1065 is a registered dealer in Florida or another state, or is
1066 purchasing the tangible personal property for resale or is
1067 otherwise not required to pay the tax on the transaction. The
1068 department may, by rule, provide a form to be used for the
1069 purposes set forth herein.
1070 b. For purposes of this subparagraph, “a cooperating state”
1071 is one determined by the executive director of the department to
1072 cooperate satisfactorily with this state in collecting taxes on
1073 remote mail order sales. No state shall be so determined unless
1074 it meets all the following minimum requirements:
1075 (I) It levies and collects taxes on remote mail order sales
1076 of property transported from that state to persons in this
1077 state, as described in s. 212.0596, upon request of the
1078 department.
1079 (II) The tax so collected shall be at the rate specified in
1080 s. 212.05, not including any local option or tourist or
1081 convention development taxes collected pursuant to s. 125.0104
1082 or this chapter.
1083 (III) Such state agrees to remit to the department all
1084 taxes so collected no later than 30 days from the last day of
1085 the calendar quarter following their collection.
1086 (IV) Such state authorizes the department to audit dealers
1087 within its jurisdiction who make remote mail order sales that
1088 are the subject of s. 212.0596, or makes arrangements deemed
1089 adequate by the department for auditing them with its own
1090 personnel.
1091 (V) Such state agrees to provide to the department records
1092 obtained by it from retailers or dealers in such state showing
1093 delivery of tangible personal property into this state upon
1094 which no sales or use tax has been paid in a manner similar to
1095 that provided in sub-subparagraph g.
1096 c. For purposes of this subparagraph, “sales of tangible
1097 personal property to be transported to a cooperating state”
1098 means remote mail order sales to a person who is in the
1099 cooperating state at the time the order is executed, from a
1100 dealer who receives that order in this state.
1101 d. The tax levied by sub-subparagraph a. shall be at the
1102 rate at which such a sale would have been taxed pursuant to the
1103 cooperating state’s tax laws if consummated in the cooperating
1104 state by a dealer and a purchaser, both of whom were physically
1105 present in that state at the time of the sale.
1106 e. The tax levied by sub-subparagraph a., when collected,
1107 shall be held in the State Treasury in trust for the benefit of
1108 the cooperating state and shall be paid to it at a time agreed
1109 upon between the department, acting for this state, and the
1110 cooperating state or the department or agency designated by it
1111 to act for it; however, such payment shall in no event be made
1112 later than 30 days from the last day of the calendar quarter
1113 after the tax was collected. Funds held in trust for the benefit
1114 of a cooperating state shall not be subject to the service
1115 charges imposed by s. 215.20.
1116 f. The department is authorized to perform such acts and to
1117 provide such cooperation to a cooperating state with reference
1118 to the tax levied by sub-subparagraph a. as is required of the
1119 cooperating state by sub-subparagraph b.
1120 g. In furtherance of this act, dealers selling tangible
1121 personal property for delivery in another state shall make
1122 available to the department, upon request of the department,
1123 records of all tangible personal property so sold. Such records
1124 shall include a description of the property, the name and
1125 address of the purchaser, the name and address of the person to
1126 whom the property was sent, the purchase price of the property,
1127 information regarding whether sales tax was paid in this state
1128 on the purchase price, and such other information as the
1129 department may by rule prescribe.
1130 Section 9. Effective July 1, 2019, section 212.094, Florida
1131 Statutes, is created to read:
1132 212.094 Sales tax refund for eligible job training
1133 organizations.—
1134 (1) As used in this section, the term:
1135 (a) “Eligible job training organization” means an
1136 organization that:
1137 1. Is an exempt organization under s. 501(c)(3) of the
1138 Internal Revenue Code of 1986, as amended;
1139 2. Provides job training and employment services to low
1140 income persons as defined in s. 420.0004, individuals who have
1141 workplace disadvantages, or individuals with barriers to
1142 employment; and
1143 3. Is accredited by the Commission on Accreditation of
1144 Rehabilitation Facilities.
1145 (b) “Growth in employment hours” means the growth in the
1146 number of hours worked by employees at an eligible job training
1147 organization in the most recently completed state fiscal year,
1148 compared to the number of hours worked by employees at the
1149 eligible job training organization in the state fiscal year
1150 immediately preceding the most recently completed state fiscal
1151 year.
1152 (c) “Job training and employment services” means programs
1153 and services that are provided to improve job readiness, to
1154 assist workers in gaining employment and adapting to the
1155 changing labor market, and to help workers achieve success
1156 through self-sufficiency.
1157 (2) An eligible job training organization is entitled to a
1158 refund of 10 percent of the sales tax remitted to the department
1159 during the most recently completed state fiscal year on its
1160 sales of goods donated to the organization. The organization
1161 must reserve the refund exclusively for use in any of the
1162 following:
1163 (a) Growth in employment hours.
1164 (b) Job training and employment services to low-income
1165 persons as defined in s. 420.0004, individuals who have
1166 workplace disadvantages, and individuals with barriers to
1167 employment.
1168 (c) Job training and employment services for veterans.
1169 (3) The total amount of refunds that the department may
1170 issue under this section may not exceed $2 million in any state
1171 fiscal year. Refunds must be granted on a first-come, first
1172 served basis.
1173 (4) An organization seeking a refund under this section
1174 must first submit an application to the Department of Economic
1175 Opportunity by July 15, which sets forth that the organization
1176 meets the requirements under paragraph (1)(a) and that the
1177 refund will be used exclusively for the purposes listed in
1178 subsection (2). The organization must submit supporting
1179 information as prescribed by the Department of Economic
1180 Opportunity by rule.
1181 (5)(a) The Department of Economic Opportunity shall verify
1182 the application and notify the organization of its determination
1183 within 15 days after receiving a complete application. The
1184 Department of Economic Opportunity shall communicate its
1185 decision in writing or, if agreed to by the applicant, via e
1186 mail.
1187 (b) If the Department of Economic Opportunity approves the
1188 application, the notice sent to the eligible job training
1189 organization must include a certification that the organization
1190 is eligible to receive a refund of certain sales and use tax
1191 remitted under this chapter. The Department of Economic
1192 Opportunity shall transmit a copy of the notice and
1193 certification, if applicable, to the department.
1194 (c) Upon the Department of Economic Opportunity’s issuance
1195 of a certification, the certification remains valid so long as
1196 the eligible job training organization is in compliance with the
1197 requirements of this section.
1198 (6) An eligible job training organization certified under
1199 this section must apply to the department between August 1 and
1200 August 31 of each year to receive a refund. A copy of the
1201 certification must be included in an eligible job training
1202 organization’s first application for a refund, but is not
1203 required to be included in subsequent applications. The
1204 organization must submit any information required by the
1205 department as part of its application for the refund.
1206 (7) For purposes of this section, an eligible job training
1207 organization comprised of commonly owned and controlled entities
1208 is deemed to be a single organization.
1209 (8) By August 1 following each state fiscal year in which
1210 an eligible job training organization received a refund pursuant
1211 to subsection (2), the organization must provide a report to the
1212 Department of Economic Opportunity regarding the use of the
1213 funds in accordance with subsection (2). The report must include
1214 at least all of the following:
1215 (a) The amount of the refund used to create growth in
1216 employment hours.
1217 (b) The total growth in employment hours.
1218 (c) The amount of the refund used for job training and
1219 employment services.
1220 (d) The number of individuals who participated in job
1221 training and employment services at the eligible job training
1222 organization.
1223 (e) A statement declaring that the eligible job training
1224 organization continues to meet the requirements of this section.
1225 (9)(a) The Department of Economic Opportunity may adopt
1226 rules to administer this section, including rules for the
1227 approval and disapproval of applications.
1228 (b) If the Department of Economic Opportunity determines
1229 that an eligible job training organization no longer qualifies
1230 for the refund under this section, the Department of Economic
1231 Opportunity must notify the department by August 31. The
1232 department may not issue a refund after receiving such
1233 notification.
1234 (c) The overpayment of a refund or a refund issued to an
1235 ineligible organization is subject to repayment and interest at
1236 the rate calculated pursuant to s. 213.235.
1237 Section 10. Effective October 1, 2019, paragraph (a) of
1238 subsection (1) and paragraph (a) of subsection (5) of section
1239 212.12, Florida Statutes, are amended to read:
1240 212.12 Dealer’s credit for collecting tax; penalties for
1241 noncompliance; powers of Department of Revenue in dealing with
1242 delinquents; brackets applicable to taxable transactions;
1243 records required.—
1244 (1)(a)1. Notwithstanding any other law and for the purpose
1245 of compensating persons granting licenses for and the lessors of
1246 real and personal property taxed hereunder, for the purpose of
1247 compensating dealers in tangible personal property, for the
1248 purpose of compensating dealers providing communication services
1249 and taxable services, for the purpose of compensating owners of
1250 places where admissions are collected, and for the purpose of
1251 compensating remitters of any taxes or fees reported on the same
1252 documents utilized for the sales and use tax, as compensation
1253 for the keeping of prescribed records, filing timely tax
1254 returns, and the proper accounting and remitting of taxes by
1255 them, such seller, person, lessor, dealer, owner, and remitter
1256 (except dealers who make mail order sales) who files the return
1257 required pursuant to s. 212.11 only by electronic means and who
1258 pays the amount due on such return only by electronic means
1259 shall be allowed 2.5 percent of the amount of the tax due,
1260 accounted for, and remitted to the department in the form of a
1261 deduction. However, if the amount of the tax due and remitted to
1262 the department by electronic means for the reporting period
1263 exceeds $1,200, an allowance is not allowed for all amounts in
1264 excess of $1,200. For purposes of this paragraph subparagraph,
1265 the term “electronic means” has the same meaning as provided in
1266 s. 213.755(2)(c).
1267 2. The executive director of the department is authorized
1268 to negotiate a collection allowance, pursuant to rules
1269 promulgated by the department, with a dealer who makes mail
1270 order sales. The rules of the department shall provide
1271 guidelines for establishing the collection allowance based upon
1272 the dealer’s estimated costs of collecting the tax, the volume
1273 and value of the dealer’s mail order sales to purchasers in this
1274 state, and the administrative and legal costs and likelihood of
1275 achieving collection of the tax absent the cooperation of the
1276 dealer. However, in no event shall the collection allowance
1277 negotiated by the executive director exceed 10 percent of the
1278 tax remitted for a reporting period.
1279 (5)(a) The department is authorized to audit or inspect the
1280 records and accounts of dealers defined herein, including audits
1281 or inspections of dealers who make remote mail order sales to
1282 the extent permitted by another state, and to correct by credit
1283 any overpayment of tax, and, in the event of a deficiency, an
1284 assessment shall be made and collected. No administrative
1285 finding of fact is necessary prior to the assessment of any tax
1286 deficiency.
1287 Section 11. Effective October 1, 2019, paragraph (f) of
1288 subsection (3) of section 212.18, Florida Statutes, is amended
1289 to read:
1290 212.18 Administration of law; registration of dealers;
1291 rules.—
1292 (3)
1293 (f) As used in this paragraph, the term “exhibitor” means a
1294 person who enters into an agreement authorizing the display of
1295 tangible personal property or services at a convention or a
1296 trade show. The following provisions apply to the registration
1297 of exhibitors as dealers under this chapter:
1298 1. An exhibitor whose agreement prohibits the sale of
1299 tangible personal property or services subject to the tax
1300 imposed in this chapter is not required to register as a dealer.
1301 2. An exhibitor whose agreement provides for the sale at
1302 wholesale only of tangible personal property or services subject
1303 to the tax imposed by this chapter must obtain a resale
1304 certificate from the purchasing dealer but is not required to
1305 register as a dealer.
1306 3. An exhibitor whose agreement authorizes the retail sale
1307 of tangible personal property or services subject to the tax
1308 imposed by this chapter must register as a dealer and collect
1309 the tax on such sales.
1310 4. An exhibitor who makes a remote mail order sale pursuant
1311 to s. 212.0596 must register as a dealer.
1312
1313 A person who conducts a convention or a trade show must make his
1314 or her exhibitor’s agreements available to the department for
1315 inspection and copying.
1316 Section 12. Paragraphs (b), (c), and (g) of subsection (1),
1317 paragraph (a) of subsection (2), and subsections (4) and (5) of
1318 section 220.191, Florida Statutes, are amended, paragraph (h) is
1319 added to subsection (1) and paragraph (e) is added to subsection
1320 (2) of that section, and paragraph (c) of subsection (2) of that
1321 section is republished, to read:
1322 220.191 Capital investment tax credit.—
1323 (1) DEFINITIONS.—For purposes of this section:
1324 (b) “Cumulative capital investment” means the total capital
1325 investment in land, buildings, and equipment, and intellectual
1326 property made in connection with a qualifying project during the
1327 period from the beginning of construction or start date of the
1328 project to the commencement of operations or the completion of
1329 the project, as applicable.
1330 (c) “Eligible capital costs” means all expenses incurred by
1331 a qualifying business in connection with the acquisition,
1332 construction, installation, and equipping, and development of a
1333 qualifying project during the period from the beginning of
1334 construction or start date of the project to the commencement of
1335 operations or the completion of the project, as applicable,
1336 including, but not limited to:
1337 1. The costs of acquiring, constructing, installing,
1338 equipping, and financing a qualifying project, including all
1339 obligations incurred for labor and obligations to contractors,
1340 subcontractors, builders, and materialmen.
1341 2. The costs of acquiring land or rights to land and any
1342 cost incidental thereto, including recording fees.
1343 3. The costs of architectural and engineering services,
1344 including test borings, surveys, estimates, plans and
1345 specifications, preliminary investigations, environmental
1346 mitigation, and supervision of construction, as well as the
1347 performance of all duties required by or consequent to the
1348 acquisition, construction, installation, and equipping of a
1349 qualifying project.
1350 4. The costs associated with the installation of fixtures
1351 and equipment; surveys, including archaeological and
1352 environmental surveys; site tests and inspections; subsurface
1353 site work and excavation; removal of structures, roadways, and
1354 other surface obstructions; filling, grading, paving, and
1355 provisions for drainage, storm water retention, and installation
1356 of utilities, including water, sewer, sewage treatment, gas,
1357 electricity, communications, and similar facilities; and offsite
1358 construction of utility extensions to the boundaries of the
1359 property.
1360 5. For the development of intellectual property, the wages,
1361 salaries, or other compensation paid to legal residents of this
1362 state and the cost of newly purchased computer software and
1363 hardware unique to the project, including servers, data
1364 processing, and visualization technologies, which are located in
1365 and used exclusively in this state for the project.
1366
1367 Eligible capital costs shall not include the cost of any
1368 property previously owned or leased by the qualifying business.
1369 (g) “Qualifying project” means a facility or project in
1370 this state which meets meeting one or more of the following
1371 criteria:
1372 1. A new or expanding facility in this state which creates
1373 at least 100 new jobs in this state and is in one of the high
1374 impact sectors identified by Enterprise Florida, Inc., and
1375 certified by the Department of Economic Opportunity pursuant to
1376 s. 288.108(6), including, but not limited to, aviation,
1377 aerospace, automotive, and silicon technology industries.
1378 However, between July 1, 2011, and June 30, 2014, the
1379 requirement that a facility be in a high-impact sector is waived
1380 for any otherwise eligible business from another state which
1381 locates all or a portion of its business to a Disproportionally
1382 Affected County. For purposes of this section, the term
1383 “Disproportionally Affected County” means Bay County, Escambia
1384 County, Franklin County, Gulf County, Okaloosa County, Santa
1385 Rosa County, Walton County, or Wakulla County.
1386 2. A new or expanded facility in this state which is
1387 engaged in a target industry designated pursuant to the
1388 procedure specified in s. 288.106(2) and which is induced by
1389 this credit to create or retain at least 1,000 jobs in this
1390 state, provided that at least 100 of those jobs are new, pay an
1391 annual average wage of at least 130 percent of the average
1392 private sector wage in the area as defined in s. 288.106(2), and
1393 make a cumulative capital investment of at least $100 million.
1394 Jobs may be considered retained only if there is significant
1395 evidence that the loss of jobs is imminent. Notwithstanding
1396 subsection (2), annual credits against the tax imposed by this
1397 chapter may not exceed 50 percent of the increased annual
1398 corporate income tax liability or the premium tax liability
1399 generated by or arising out of a project qualifying under this
1400 subparagraph. A facility that qualifies under this subparagraph
1401 for an annual credit against the tax imposed by this chapter may
1402 take the tax credit for a period not to exceed 5 years.
1403 3. A new or expanded headquarters facility in this state
1404 which locates in an enterprise zone and brownfield area and is
1405 induced by this credit to create at least 1,500 jobs which on
1406 average pay at least 200 percent of the statewide average annual
1407 private sector wage, as published by the Department of Economic
1408 Opportunity, and which new or expanded headquarters facility
1409 makes a cumulative capital investment in this state of at least
1410 $250 million.
1411 4. For the creation of intellectual property, a project
1412 that may be made up of one or more projects with different start
1413 and completion dates. The annual average wage of the project
1414 jobs in this state must be at least 150 percent of the average
1415 private sector wage in the area. For purposes of this
1416 subparagraph, the term “average private sector wage in the area”
1417 has the same meaning as in s. 288.106(2).
1418 (h) “Intellectual property” means a copyrightable project
1419 for which the eligible capital costs are principally paid
1420 directly or indirectly for the development of a software
1421 product. For purposes of this paragraph, the term “software
1422 product” includes a copyrighted application and its expansion
1423 content made available to an end user, internal development
1424 platforms that support the production of multiple applications,
1425 and cloud-based services that support the functionality of
1426 multiple applications. The project may not be solely intended
1427 for distribution inside of this state, and at least 50 percent
1428 of forecasted revenues for the project must be from outside of
1429 this state.
1430 (2)(a) An annual credit against the tax imposed by this
1431 chapter shall be granted to any qualifying business in an amount
1432 equal to 5 percent of the eligible capital costs generated by a
1433 qualifying project, for a period not to exceed 20 years
1434 beginning with the commencement of operations or the completion
1435 date of the project. For a qualifying project that meets the
1436 criteria of subparagraph (1)(g)4., the tax credit must equal 5
1437 percent of the eligible capital costs generated by a qualifying
1438 project for a period of up to 5 years, beginning on the start
1439 date of the project. Unless assigned as described in this
1440 subsection, the tax credit shall be granted against only the
1441 corporate income tax liability or the premium tax liability
1442 generated by or arising out of the qualifying project, and the
1443 sum of all tax credits provided pursuant to this section shall
1444 not exceed 100 percent of the eligible capital costs of the
1445 project. In no event may any credit granted under this section
1446 be carried forward or backward by any qualifying business with
1447 respect to a subsequent or prior year. The annual tax credit
1448 granted under this section shall not exceed the following
1449 percentages of the annual corporate income tax liability or the
1450 premium tax liability generated by or arising out of a
1451 qualifying project:
1452 1. One hundred percent for a qualifying project which
1453 results in a cumulative capital investment of at least $100
1454 million.
1455 2. One hundred percent for a qualifying project established
1456 pursuant to subparagraph (1)(g)4. for which the cumulative
1457 capital investment of one or more projects is an aggregate of at
1458 least $50 million per year for 3 years. The investment on an
1459 individual project must be at least $3.75 million.
1460 3.2. Seventy-five percent for a qualifying project which
1461 results in a cumulative capital investment of at least $50
1462 million but less than $100 million.
1463 4.3. Fifty percent for a qualifying project which results
1464 in a cumulative capital investment of at least $25 million but
1465 less than $50 million.
1466 (c) A qualifying business that establishes a qualifying
1467 project that includes locating a new solar panel manufacturing
1468 facility in this state that generates a minimum of 400 jobs
1469 within 6 months after commencement of operations with an average
1470 salary of at least $50,000 may assign or transfer the annual
1471 credit, or any portion thereof, granted under this section to
1472 any other business. However, the amount of the tax credit that
1473 may be transferred in any year shall be the lesser of the
1474 qualifying business’s state corporate income tax liability for
1475 that year, as limited by the percentages applicable under
1476 paragraph (a) and as calculated prior to taking any credit
1477 pursuant to this section, or the credit amount granted for that
1478 year. A business receiving the transferred or assigned credits
1479 may use the credits only in the year received, and the credits
1480 may not be carried forward or backward. To perfect the transfer,
1481 the transferor shall provide the department with a written
1482 transfer statement notifying the department of the transferor’s
1483 intent to transfer the tax credits to the transferee; the date
1484 the transfer is effective; the transferee’s name, address, and
1485 federal taxpayer identification number; the tax period; and the
1486 amount of tax credits to be transferred. The department shall,
1487 upon receipt of a transfer statement conforming to the
1488 requirements of this paragraph, provide the transferee with a
1489 certificate reflecting the tax credit amounts transferred. A
1490 copy of the certificate must be attached to each tax return for
1491 which the transferee seeks to apply such tax credits.
1492 (e) For a qualifying project that meets the criteria of
1493 subparagraph (1)(g)4.:
1494 1. If the credit granted under subparagraph (a)2. is not
1495 fully used in any 1 year because of insufficient tax liability
1496 on the part of the qualifying business, the unused amounts may
1497 be used in any year or years beginning with the 6th year after
1498 the completion date of the project and ending the 15th year
1499 after the completion date of the project.
1500 2. The qualifying business may elect to transfer, in whole
1501 or in part, any unused credit amount granted under this section.
1502 The amount of the tax credit that may be transferred in any year
1503 may not be greater than the difference between the state
1504 corporate income tax liability of the qualifying business for
1505 the year of the transfer, as limited by the percentages
1506 applicable under paragraph (a) and as calculated before taking
1507 any credit pursuant to this section, and the credit amount
1508 granted for the year of the transfer. A business receiving the
1509 transferred or assigned credits may use the credits only in the
1510 year received, and the credits may not be carried forward or
1511 backward. A transfer must be perfected in the same manner as
1512 provided in paragraph (c).
1513 (4) Prior to receiving tax credits pursuant to this
1514 section, a qualifying business must achieve and maintain the
1515 minimum employment goals beginning with the commencement of
1516 operations or the completion date of at a qualifying project and
1517 continuing each year thereafter during which tax credits are
1518 available pursuant to this section.
1519 (5) Applications shall be reviewed and certified pursuant
1520 to s. 288.061. The Department of Economic Opportunity, upon a
1521 recommendation by Enterprise Florida, Inc., shall first certify
1522 a business as eligible to receive tax credits pursuant to this
1523 section prior to the commencement of operations or the
1524 completion date of a qualifying project, and such certification
1525 shall be transmitted to the Department of Revenue. Upon receipt
1526 of the certification, the Department of Revenue shall enter into
1527 a written agreement with the qualifying business specifying, at
1528 a minimum, the method by which income generated by or arising
1529 out of the qualifying project will be determined.
1530 Section 13. Section 220.197, Florida Statutes, is created
1531 to read:
1532 220.197 Telehealth tax credit.—
1533 (1) For taxable years beginning on or after January 1,
1534 2020, and before January 1, 2023, a credit against the tax
1535 imposed by this chapter equal to the credit amount provided in
1536 s. 624.509(9)(a) is allowed for taxpayers eligible to receive
1537 the tax credit provided in s. 624.509(9)(a), but with
1538 insufficient tax liability under s. 624.509 to use such tax
1539 credit.
1540 (2) If the credit allowed under this section is not fully
1541 used in any single year because of insufficient tax liability on
1542 the part of the taxpayer, the unused amount may be carried
1543 forward for a period not to exceed 5 years.
1544 (3)(a) In addition to its existing audit and investigation
1545 authority, the department may perform any additional financial
1546 and technical audits and investigations, including examining the
1547 accounts, books, and records of the taxpayer, to verify
1548 eligibility for the allowable credit and to ensure compliance
1549 with this section. The Office of Insurance Regulation shall
1550 provide technical assistance when requested by the department on
1551 any audits or examinations performed pursuant to this paragraph.
1552 (b) If the department determines, as a result of an audit
1553 or examination or from information received from the Office of
1554 Insurance Regulation, that a taxpayer received a tax credit
1555 under this section to which the taxpayer was not entitled, the
1556 department shall pursue recovery of such funds pursuant to the
1557 laws and rules governing the assessment of taxes.
1558 (4) A taxpayer may transfer a credit for which the taxpayer
1559 qualifies under subsection (1), in whole or in part, to any
1560 taxpayer by written agreement. To perfect the transfer, the
1561 transferor shall provide the department with a written transfer
1562 statement notifying the department of the transferor’s intent to
1563 transfer the tax credit to the transferee; the date that the
1564 transfer is effective; the transferee’s name, address, and
1565 federal taxpayer identification number; the tax period; and the
1566 amount of tax credit to be transferred. The department shall,
1567 upon receipt of the transfer statement, provide the transferee
1568 and the Office of Insurance Regulation with a certificate
1569 reflecting the tax credit amount transferred. A copy of the
1570 certificate must be attached to each tax return for which the
1571 transferee seeks to apply such tax credit.
1572 (5) The department and the Financial Services Commission
1573 may adopt rules to provide the administrative guidelines and
1574 procedures required to administer this section and prescribe:
1575 (a) Any forms necessary to claim a tax credit under this
1576 section, the requirements and basis for establishing an
1577 entitlement to a credit, and the examination and audit
1578 procedures required to administer this section.
1579 (b) The implementation and administration of the provisions
1580 to allow a transfer of a tax credit, including reporting
1581 requirements, and procedures, guidelines, and requirements
1582 necessary to transfer such credit.
1583 Section 14. Present subsection (9) of section 624.509,
1584 Florida Statutes, is redesignated as subsection (10) and
1585 amended, and a new subsection (9) is added to that section, to
1586 read:
1587 624.509 Premium tax; rate and computation.—
1588 (9)(a) For tax years beginning on or after January 1, 2020,
1589 and before January 1, 2023, any health insurer or health
1590 maintenance organization that covers services provided by
1591 telehealth shall be allowed a credit against the tax imposed by
1592 this section equal to 0.1 percent of total insurance premiums
1593 received on accident and health insurance policies or plans
1594 delivered or issued in this state in the previous calendar year
1595 that provide medical, major medical, or similar comprehensive
1596 coverage. The office shall confirm such coverage to the
1597 Department of Revenue following its annual rate and form review
1598 for each health insurance policy or plan.
1599 (b) If the credit allowed under this subsection is not
1600 fully used in any single year because of insufficient tax
1601 liability on the part of a health insurer or health maintenance
1602 organization and the same health insurer or health maintenance
1603 organization does not use the credit available pursuant to s.
1604 220.197, the unused amount may be carried forward for a period
1605 not to exceed 5 years.
1606 (c)1. In addition to its existing audit and investigation
1607 authority, the Department of Revenue may perform any additional
1608 financial and technical audits and investigations, including
1609 examining the accounts, books, and records of the health insurer
1610 or health maintenance organization, which are necessary to
1611 verify eligibility for the credit allowed under this subsection
1612 and to ensure compliance with this subsection. The office shall
1613 provide technical assistance when requested by the Department of
1614 Revenue on any audits or examinations performed pursuant to this
1615 subparagraph.
1616 2. If the Department of Revenue determines, as a result of
1617 an audit or examination or from information received from the
1618 office, that a taxpayer received a tax credit under this
1619 subsection to which the taxpayer was not entitled, the
1620 Department of Revenue shall pursue recovery of such funds
1621 pursuant to the laws and rules governing the assessment of
1622 taxes.
1623 (d) A health insurer or health maintenance organization may
1624 transfer a credit for which it qualifies under paragraph (a), in
1625 whole or in part, to any insurer by written agreement. To
1626 perfect the transfer, the transferor shall provide the
1627 Department of Revenue with a written transfer statement
1628 notifying the department of the transferor’s intent to transfer
1629 the tax credit to the transferee; the date that the transfer is
1630 effective; the transferee’s name, address, and federal taxpayer
1631 identification number; the tax period; and the amount of tax
1632 credit to be transferred. The Department of Revenue shall, upon
1633 receipt of the transfer statement, provide the transferee and
1634 the office with a certificate reflecting the tax credit amount
1635 transferred. A copy of the certificate must be attached to each
1636 tax return for which the transferee seeks to apply such tax
1637 credit.
1638 (e) The Department of Revenue and the commission may adopt
1639 rules to provide the administrative guidelines and procedures
1640 required to administer this section and prescribe:
1641 1. Any forms necessary to claim a tax credit under this
1642 section, the requirements and basis for establishing an
1643 entitlement to a credit, and the examination and audit
1644 procedures required to administer this section.
1645 2. The implementation and administration of the provisions
1646 to allow a transfer of a tax credit, including reporting
1647 requirements, and specific procedures, guidelines, and
1648 requirements necessary to transfer such credit.
1649 (f) An insurer that claims a credit against tax liability
1650 under this subsection is not required to pay any additional
1651 retaliatory tax levied under s. 624.5091 as a result of claiming
1652 such a credit. Section 624.5091 does not limit such a credit in
1653 any manner.
1654 (10)(9) As used in this section, the term:
1655 (a) “Health insurer” means an authorized insurer offering
1656 health insurance as defined in s. 624.603.
1657 (b) “Health maintenance organization” has the same meaning
1658 as provided in s. 641.19.
1659 (c) “Insurer” includes any entity subject to the tax
1660 imposed by this section.
1661 (d) “Telehealth” means the use of synchronous or
1662 asynchronous telecommunications technology by a health care
1663 provider to provide health care services, including, but not
1664 limited to, patient assessment, diagnosis, consultation,
1665 treatment, and monitoring; transfer of medical data; patient and
1666 professional health-related education; public health services;
1667 and health administration. The term does not include audio-only
1668 telephone calls, e-mail messages, or facsimile transmissions.
1669 Section 15. For the purpose of incorporating the amendment
1670 made by this act to section 212.0596, Florida Statutes, in a
1671 reference thereto, subsection (4) of section 212.20, Florida
1672 Statutes, is reenacted to read:
1673 212.20 Funds collected, disposition; additional powers of
1674 department; operational expense; refund of taxes adjudicated
1675 unconstitutionally collected.—
1676 (4) When there has been a final adjudication that any tax
1677 pursuant to s. 212.0596 was levied, collected, or both, contrary
1678 to the Constitution of the United States or the State
1679 Constitution, the department shall, in accordance with rules,
1680 determine, based upon claims for refund and other evidence and
1681 information, who paid such tax or taxes, and refund to each such
1682 person the amount of tax paid. For purposes of this subsection,
1683 a “final adjudication” is a decision of a court of competent
1684 jurisdiction from which no appeal can be taken or from which the
1685 official or officials of this state with authority to make such
1686 decisions has or have decided not to appeal.
1687 Section 16. (1) The Department of Revenue is authorized,
1688 and all conditions are deemed met, to adopt emergency rules
1689 pursuant to s. 120.54(4), Florida Statutes, for the purpose of
1690 administering this act.
1691 (2) Notwithstanding any other law, emergency rules adopted
1692 pursuant to subsection (1) are effective for 6 months after
1693 adoption and may be renewed during the pendency of procedures to
1694 adopt permanent rules addressing the subject of the emergency
1695 rules.
1696 (3) This section expires July 1, 2020.
1697 Section 17. If any provision of this act or its application
1698 to any person or circumstance is held invalid, the invalidity
1699 does not affect other provisions or applications of the act
1700 which can be given effect without the invalid provision or
1701 application, and to this end the provisions of this act are
1702 severable.
1703 Section 18. Except as otherwise expressly provided in this
1704 act, this act shall take effect upon becoming a law.
