Bill Text: FL S1506 | 2011 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Corporate Income Tax

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1506 Detail]

Download: Florida-2011-S1506-Introduced.html

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       Florida Senate - 2011                                    SB 1506
       
       
       
       By Senator Ring
       
       
       
       
       32-01521-11                                           20111506__
    1                        A bill to be entitled                      
    2         An act relating to the corporate income tax; amending
    3         s. 220.131, F.S.; conforming provisions to changes
    4         made by the act; creating s. 220.153, F.S.; providing
    5         for the apportionment of certain taxpayer’s adjusted
    6         federal income solely by the sales factor provided in
    7         s. 220.15, F.S.; providing for eligibility based on
    8         the taxpayer’s capital expenditures and number of
    9         full-time employees; providing an application process;
   10         authorizing the Department of Revenue to examine and
   11         verify that a taxpayer has correctly apportioned its
   12         taxes; authorizing the Office of Tourism, Trade, and
   13         Economic Development to approve and revoke approval of
   14         an application; providing for the recapture of unpaid
   15         taxes, interest, and penalties; authorizing the office
   16         and the department to adopt rules; providing an
   17         effective date.
   18  
   19  Be It Enacted by the Legislature of the State of Florida:
   20  
   21         Section 1. Subsection (5) of section 220.131, Florida
   22  Statutes, is amended to read:
   23         220.131 Adjusted federal income; affiliated groups.—
   24         (5) Each taxpayer shall apportion adjusted federal income
   25  under s. 220.15 as a member of an affiliated group which files a
   26  consolidated return under this section on the basis of
   27  apportionment factors described in s. 220.15. For the purposes
   28  of this subsection, each special industry member included in an
   29  affiliated group filing a consolidated return hereunder, who
   30  which member would otherwise be permitted to use a special
   31  method of apportionment under s. 220.151 or s. 220.153, shall
   32  construct the numerator of its sales, property, and payroll
   33  factors, respectively, by multiplying the denominator of each
   34  such factor by the premiums or revenue miles factor ratio
   35  otherwise applicable under pursuant to s. 220.151 in the manner
   36  prescribed by the department by rule.
   37         Section 2. Section 220.153, Florida Statutes, is created to
   38  read:
   39         220.153 Apportionment by sales factor.—
   40         (1) APPORTIONMENT OF TAXES; ELIGIBILITY.—A taxpayer, not
   41  including a financial organization as defined in s. 220.15(6) or
   42  a bank, savings association, international banking facility, or
   43  banking organization as defined in s. 220.62, doing business
   44  within and without this state, who applies and demonstrates to
   45  the Office of Tourism, Trade, and Economic Development that, on
   46  or after July 1, 2013, it has made qualified capital
   47  expenditures equal to or exceeding $250 million and has
   48  maintained the number of full-time employees who were employed
   49  by the taxpayer in this state at the time it notified the office
   50  of its intent to apply for apportionment pursuant to this
   51  section, may apportion its adjusted federal income solely by the
   52  sales factor set forth in s. 220.15(5), commencing in the
   53  taxable year of such determination. For the purposes of this
   54  section, a full-time employee must work an average of at least
   55  36 hours per week for an entire year and receive an average
   56  weekly wage greater than the lower of the state or local average
   57  weekly wages for the taxpayer’s industry; however, a full-time
   58  employee does not include an employee who is hired to construct
   59  improvements to real property.
   60         (2) APPLICATION PROCESS.—
   61         (a) To qualify as a taxpayer who is eligible to apportion
   62  its adjusted federal income under this section:
   63         1. The taxpayer must notify the Office of Tourism, Trade,
   64  and Economic Development of its intent to submit an application
   65  to apportion its adjusted federal income in order to commence
   66  the 2-year period for measuring qualified capital expenditures.
   67         2. The application must be submitted within 2 years after
   68  notifying the office of the taxpayer’s intent to qualify. The
   69  application must be made under oath and provide such information
   70  as the office reasonably requires by rule for determining the
   71  applicant’s eligibility to apportion adjusted federal income.
   72  The taxpayer is responsible for affirmatively demonstrating to
   73  the satisfaction of the office that it meets the eligibility
   74  requirements.
   75         (b) The taxpayer notice and application forms shall be
   76  established by the office by rule. The office shall acknowledge
   77  receipt of the notice and approve or deny the application in
   78  writing within 45 days after receipt.
   79         (c) Upon approval, the taxpayer, by the due date for filing
   80  its tax return for the taxable year during which its eligibility
   81  has been determined, including any extensions thereof, may elect
   82  to apportion its adjusted federal income by filing a return for
   83  the taxable year using the method provided under this chapter.
   84         (d) Once made, a taxpayer may not revoke the election for 4
   85  years, at which time the taxpayer may renew the election by the
   86  due date, or extended due date, for filing its tax return by
   87  filing a return for the next taxable year using the method
   88  provided under this chapter. If the taxpayer does not renew its
   89  election, it shall apportion its adjusted federal income
   90  pursuant to s. 220.15 and must reapply to apportion its adjusted
   91  federal income pursuant to this section.
   92         (3) REVIEW AUTHORITY; RECAPTURE OF TAX.—
   93         (a) In addition to its existing audit authority, the
   94  department may perform any financial and technical review and
   95  investigation, including examining the accounts, books, and
   96  records of the taxpayer as necessary, to verify that the
   97  taxpayer’s tax return correctly computes and apportions adjusted
   98  federal income and to ensure compliance with this chapter.
   99         (b) The Office of Tourism, Trade, and Economic Development
  100  may, by order, revoke its decision to grant eligibility for
  101  apportionment, and may also order the recalculation of
  102  apportionment factors to those applicable under s. 220.15 if, as
  103  the result of an audit, investigation, or examination, it
  104  determines that information provided by the taxpayer in the
  105  application, or in a statement, representation, record, report,
  106  plan, or other document provided to the office to become
  107  eligible for apportionment, was materially false at the time it
  108  was made and that an individual acting on behalf of the taxpayer
  109  knew, or should have known, that the information submitted was
  110  false. The taxpayer shall pay such additional taxes and interest
  111  as may be due pursuant to this chapter computed as the
  112  difference between the tax that would have been due under the
  113  apportionment formula provided in s. 220.15 for such years and
  114  the tax actually paid. In addition, the department shall assess
  115  a penalty equal to 100 percent of the additional tax due.
  116         (c) The office shall immediately notify the department of
  117  an order affecting a taxpayers eligibility to apportion tax
  118  pursuant to this section. A taxpayer who is liable for past tax
  119  must file an amended return with the department, or such other
  120  report as the department prescribes by rule, and pay any
  121  required tax, interest, and penalty within 60 days after the
  122  taxpayer receives notification from the office that the
  123  previously approved credits have been revoked. If the revocation
  124  is contested, the taxpayer shall file an amended return or other
  125  report within 30 days after an order becomes final. A taxpayer
  126  who fails to pay the past tax, interest, and penalty by the due
  127  date is subject to the penalties provided in s. 220.803.
  128         (4) RULES.—The Office of Tourism, Trade, and Economic
  129  Development and the department may adopt rules to administer
  130  this section.
  131         Section 3. This act shall take effect July 1, 2011.