CHAPTER 2010-138 Committee Substitute for House Bill No. 7157laws.flrules.org/files/Ch_2010-138.pdf · Committee Substitute for House Bill No. 7157 An act relating to taxation; amending

CHAPTER 2010-138

Committee Substitute for House Bill No. 7157

An act relating to taxation; amending s. 55.204, F.S.; specifying the durationof liens securing the payment of unemployment compensation taxobligations; amending s. 95.091, F.S.; applying an exception to a limiton the duration of tax liens for certain tax liens relating to unemploymentcompensation taxes; amending s. 201.02, F.S.; excluding certain unpaidindebtedness from the taxable consideration for short sale transfers of realproperty; defining the term “short sale”; amending s. 202.125, F.S.;providing that an exemption from the communications services tax doesnot apply to transient public lodging establishments; amending s. 212.05,F.S.; specifying that the tax on sales, use, and other transactions applies tocharges for nonresidential building cleaning and nonresidential buildingpest control; amending s. 212.0515, F.S.; revising the content of a requirednotice that must be posted on vending machines; amending s. 212.08, F.S.;providing criteria to determine whether the tax on sales, use, and othertransactions applies to a package containing exempt food products andtaxable nonfood products; providing that the tax exemption for buildingmaterials used in the rehabilitation of real property in an enterprise zoneapplies only while the property is being rehabilitated; providing that asingle application for a tax refund of taxes paid on building materials usedin the rehabilitation of real property may be used for certain contiguousparcels; revising the information that must be included in an applicationfor a tax refund; providing that the tax exemption for building materialsused in an enterprise zone may inure to a unit of government; revising thedate by which an application for a tax refund for taxes paid on buildingmaterials used in an enterprise zone must be submitted to the department;amending s. 212.08, F.S.; revising provisions excluding certain sales oftangible personal property to contractors from application of an exemptionfor sales made to governmental entities under certain circumstances;specifying additional requirements, procedures, and limitations; requiringthe Department of Revenue to adopt rules for purposes of determiningeligibility for the exemption and providing for a certificate of entitlement tothe exemption; specifying certification requirements; authorizing thedepartment to adopt emergency rules; providing for time of effect ofemergency rules; amending s. 213.053, F.S.; authorizing the department toprovide certain confidential taxpayer information to the Florida Energyand Climate Commission; providing for retroactive operation; providingthat restrictions on disclosure of confidential taxpayer information do notprohibit the department from using certain methods of electronic commu-nication for certain purposes; providing that the department may releaseconfidential taxpayer information relating to a corporation having anoutstanding tax warrant to the Department of Business and ProfessionalRegulation; authorizing the department to share taxpayer names andidentification numbers for purposes of information-sharing agreementswith financial institutions; authorizing the department to share certain

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information relating to the tax on sales, use, and other transactions withthe Department of Environmental Protection; authorizing the departmentto publish a list of taxpayers against whom it has filed a warrant orjudgment lien certificate; requiring the department to update the list atleast monthly; authorizing the department to adopt rules; authorizing thedepartment to provide confidential taxpayer information relating tocollections from taxpayers against whom it has taken a collection action;creating s. 213.0532, F.S.; defining terms; requiring the department andcertain financial institutions to enter into information-sharing agreementsto enable the department to obtain the account balances and personallyidentifying information of taxpayers; authorizing the department andcertain financial institutions to enter into information-sharing agreementsto enable the department to obtain the account balances and personallyidentifying information of taxpayers; limiting the use of informationgathered for the purpose of enforcing the collection of certain taxes andfees; requiring the department to pay a fee to the financial institutions fortheir services; limiting the liability for certain acts of financial institutionsthat enter into an information-sharing agreement; authorizing thedepartment to adopt rules; amending s. 213.25, F.S.; authorizing thedepartment to reduce a tax refund or credit owing to a taxpayer to theextent of liability for unemployment compensation taxes; amending s.213.50, F.S.; authorizing the Division of Hotels and Restaurants of theDepartment of Business and Professional Regulation to suspend or denythe renewal of a license for a hotel or restaurant having an outstanding taxwarrant for a certain period of time; amending s. 213.67, F.S.; specifyingadditional methods by which the department may give notice of a taxdelinquency for garnishment purposes; amending s. 220.192, F.S.; provid-ing for the administration of certain portions of the renewable energytechnologies tax credit program by the Florida Energy and ClimateCommission; providing for retroactive application; amending s. 336.021,F.S.; revising the distribution of the ninth-cent fuel tax on motor fuel anddiesel fuel; amending s. 443.036, F.S.; providing for the treatment of asingle-member limited liability company as the employer for purposes ofunemployment compensation law; amending s. 443.1215, F.S.; correcting across-reference; amending s. 443.1316, F.S.; conforming cross-references;amending s. 443.141, F.S.; providing penalties for erroneous, incomplete,or insufficient reports; authorizing a waiver of the penalty under certaincircumstances; defining a term; authorizing the Agency for WorkforceInnovation and the state agency providing unemployment compensationtax collection services to adopt rules; providing an expiration date for liensfor contributions and reimbursements; amending s. 443.163, F.S.; increas-ing penalties for failing to file Employers Quarterly Reports by meansother than approved electronic means; revising waiver provisions; creatings. 213.692, F.S.; authorizing the Department of Revenue to revoke allcertificates of registration, permits, or licenses issued to a taxpayer againstwhose property the department has filed a warrant or tax lien; requiringthe scheduling of an informal conference before revocation of thecertificates of registration, permits, or licenses; prohibiting the Depart-ment of Revenue from issuing a certificate of registration, permit, or

Ch. 2010-138 LAWS OF FLORIDA Ch. 2010-138

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license to a taxpayer whose certificate of registration, permit, or licensehas been revoked; providing exceptions; requiring security as a condition ofissuing a new certificate of registration to a person whose certificate ofregistration, permit, or license has been revoked after the filing of awarrant or tax lien certificate; authorizing the department to adopt rules,including emergency rules; repealing s. 195.095, F.S., relating to theauthority of the Department of Revenue to develop lists of bidders that areapproved to contract with property appraisers, tax collectors, or countycommissions for assessment or collection services; repealing s. 213.054,F.S., relating to monitoring and reporting on the use of a tax deductionclaimed by international banking institutions; providing effective dates.

Be It Enacted by the Legislature of the State of Florida:

Section 1. Section 55.204, Florida Statutes, is amended to read:

55.204 Duration and continuation of judgment lien; destruction ofrecords.—

(1) Except as provided in this section, a judgment lien acquired under s.55.202 lapses and becomes invalid 5 years after the date of filing thejudgment lien certificate.

(2) Liens securing the payment of child support or tax obligations underas set forth in s. 95.091(1)(b) shall not lapse until 20 years after the date ofthe original filing of the warrant or other document required by law toestablish a lien. Liens securing the payment of unemployment tax obliga-tions lapse 10 years after the date of the original filing of the notice of lien. ANo second lien based on the original filing may not be obtained.

(3) At any time within 6 months before or 6 months after the scheduledlapse of a judgment lien under subsection (1), the judgment creditor mayacquire a second judgment lien by filing a new judgment lien certificate. Theeffective date of the second judgment lien is the date and time on which thejudgment lien certificate is filed. The second judgment lien is a new judgmentlien and not a continuation of the original judgment lien. The secondjudgment lien permanently lapses and becomes invalid 5 years after its filingdate, and no additional liens based on the original judgment or any judgmentbased on the original judgment may be acquired.

(4) A judgment lien continues only as to itemized property for anadditional 90 days after lapse of the lien. Such judgment lien will continueonly if:

(a) The property was had been itemized and its location described withsufficient particularity in the instructions for levy to permit the sheriff to act;

(b) The instructions for the levy had been delivered to the sheriff beforeprior to the date of lapse of the lien; and


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(c) The property was located in the county in which the sheriff hasjurisdiction at the time of delivery of the instruction for levy. Subsequentremoval of the property does not defeat the lien. A court may ordercontinuation of the lien beyond the 90-day period on a showing thatextraordinary circumstances have prevented levy.

(5) The date of lapse of a judgment lien whose enforceability has beentemporarily stayed or enjoined as a result of any legal or equitableproceeding is tolled until 30 days after the stay or injunction is terminated.

(6) If a no second judgment lien is not filed, the Department of State shallmaintain each judgment lien file and all information contained therein for aminimum of 1 year after the judgment lien lapses in accordance with thissection. If a second judgment lien is filed, the department shall maintain bothfiles and all information contained in such files for a minimum of 1 year afterthe second judgment lien lapses.

(7) Nothing in This section does not shall be construed to extend the life ofa judgment lien beyond the time that the underlying judgment, order, decree,or warrant otherwise expires or becomes invalid pursuant to law.

Section 2. Section 95.091, Florida Statutes, is amended to read:

95.091 Limitation on actions to collect taxes.—

(1)(a) Except in the case of taxes for which certificates have been sold,taxes enumerated in s. 72.011, or tax liens issued under s. 196.161 or s.443.141, any tax lien granted by law to the state or any of its politicalsubdivisions, any municipality, any public corporation or body politic, or anyother entity having authority to levy and collect taxes shall expire 5 yearsafter the date the tax is assessed or becomes delinquent, whichever is later.AnNo actionmay be begun to collect any tax may not be commenced after theexpiration of the lien securing the payment of the tax.

(b) Any tax lien granted by law to the state or any of its politicalsubdivisions for any tax enumerated in s. 72.011 or any tax lien imposedunder s. 196.161 expires shall expire 20 years after the last date the tax maybe assessed, after the tax becomes delinquent, or after the filing of a taxwarrant, whichever is later. An action to collect any tax enumerated in s.72.011 may not be commenced after the expiration of the lien securing thepayment of the tax.

(2) If a no lien to secure the payment of a tax is not provided by law, an noaction may be begun to collect the tax may not be commenced after 5 yearsfollowing from the date the tax is assessed or becomes delinquent, whicheveris later.

(3)(a) With the exception of taxes levied under chapter 198 and taxadjustments made pursuant to ss. 220.23 and 624.50921, the Department ofRevenue may determine and assess the amount of any tax, penalty, orinterest due under any tax enumerated in s. 72.011 which it has authority to


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administer and the Department of Business and Professional Regulationmay determine and assess the amount of any tax, penalty, or interest dueunder any tax enumerated in s. 72.011 which it has authority to administer:

1.a. For taxes due before July 1, 1999, within 5 years after the date thetax is due, any return with respect to the tax is due, or such return is filed,whichever occurs later; and for taxes due on or after July 1, 1999, within 3years after the date the tax is due, any return with respect to the tax is due,or such return is filed, whichever occurs later;

b. Effective July 1, 2002, notwithstanding sub-subparagraph a., within 3years after the date the tax is due, any return with respect to the tax is due,or such return is filed, whichever occurs later;

2. For taxes due before July 1, 1999, within 6 years after the date thetaxpayer either makes a substantial underpayment of tax, or files asubstantially incorrect return;

3. At any time while the right to a refund or credit of the tax is availableto the taxpayer;

4. For taxes due before July 1, 1999, at any time after the taxpayer hasfiled a grossly false return;

5. At any time after the taxpayer has failed to make any requiredpayment of the tax, has failed to file a required return, or has filed afraudulent return, except that for taxes due on or after July 1, 1999, thelimitation prescribed in subparagraph 1. applies if the taxpayer has disclosedin writing the tax liability to the department before the department hascontacted the taxpayer; or

6. In any case in which there has been a refund of tax erroneously madefor any reason:

a. For refundsmade before July 1, 1999, within 5 years after making suchrefund; and

b. For refunds made on or after July 1, 1999, within 3 years after makingsuch refund,

or at any time after making such refund if it appears that any part of therefund was induced by fraud or the misrepresentation of a material fact.

(b) For the purpose of this paragraph, a tax return filed before the lastday prescribed by law, including any extension thereof, shall be deemed tohave been filed on such last day, and payments made prior to the last dayprescribed by law shall be deemed to have been paid on such last day.

(4) If administrative or judicial proceedings for review of the taxassessment or collection are initiated by a taxpayer within the period oflimitation prescribed in this section, the running of the period is shall be


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tolled during the pendency of the proceeding. Administrative proceedingsshall include taxpayer protest proceedings initiated under s. 213.21 anddepartment rules.

Section 3. Effective July 1, 2010, subsection (11) is added to section201.02, Florida Statutes, to read:

201.02 Tax on deeds and other instruments relating to real property orinterests in real property.—

(11) The taxable consideration for a short sale transfer does not includeunpaid indebtedness that is forgiven or released by a mortgagee holding amortgage on the grantor’s interest in the property. For purposes of thissubsection, the term “short sale” means a purchase and sale of real propertyin which all of the following apply:

(a) The grantor’s interest is encumbered by a mortgage or mortgagessecuring indebtedness in an aggregate amount greater than the considera-tion paid or given by the grantee.

(b) A mortgagee releases the real property from its mortgage in exchangefor a payment of less than the total of the outstandingmortgage indebtednessowed to the releasing mortgagee.

(c) The releasing mortgagee does not receive, directly or indirectly, anyinterest in the property transferred.

(d) The releasing mortgagee is not controlled by or related to the grantoror the grantee.

Section 4. Subsection (1) of section 202.125, Florida Statutes, is amendedto read:

202.125 Sales of communications services; specified exemptions.—

(1) The separately stated sales price of communications services sold toresidential households is exempt from the tax imposed by s. 202.12. Thisexemption does shall not apply to any residence that constitutes all or part ofa transient public lodging establishment as defined in chapter 509, anymobile communications service, any cable service, or any direct-to-homesatellite service.

Section 5. Paragraph (i) of subsection (1) of section 212.05, FloridaStatutes, is amended to read:

212.05 Sales, storage, use tax.—It is hereby declared to be the legislativeintent that every person is exercising a taxable privilege who engages in thebusiness of selling tangible personal property at retail in this state, includingthe business of making mail order sales, or who rents or furnishes any of thethings or services taxable under this chapter, or who stores for use or


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consumption in this state any item or article of tangible personal property asdefined herein and who leases or rents such property within the state.

(1) For the exercise of such privilege, a tax is levied on each taxabletransaction or incident, which tax is due and payable as follows:

(i)1. At the rate of 6 percent on charges for all:

a. Detective, burglar protection, and other protection services (NAICSNational Numbers 561611, 561612, 561613, and 561621). Any law enforce-ment officer, as defined in s. 943.10, who is performing approved duties asdetermined by his or her local law enforcement agency in his or her capacityas a law enforcement officer, and who is subject to the direct and immediatecommand of his or her law enforcement agency, and in the law enforcementofficer’s uniform as authorized by his or her law enforcement agency, isperforming law enforcement and public safety services and is not performingdetective, burglar protection, or other protective services, if the lawenforcement officer is performing his or her approved duties in a geogra-phical area in which the law enforcement officer has arrest jurisdiction. Suchlaw enforcement and public safety services are not subject to tax irrespectiveof whether the duty is characterized as “extra duty,” “off-duty,” or “secondaryemployment,” and irrespective of whether the officer is paid directly orthrough the officer’s agency by an outside source. The term “law enforcementofficer” includes full-time or part-time law enforcement officers, and anyauxiliary law enforcement officer, when such auxiliary law enforcementofficer is working under the direct supervision of a full-time or part-time lawenforcement officer.

b. Nonresidential cleaning, excluding cleaning of the interiors of trans-portation equipment, and nonresidential building pest control services(NAICS National Numbers 561710 and 561720).

2. As used in this paragraph, “NAICS” means those classificationscontained in the North American Industry Classification System, aspublished in 2007 by the Office of Management and Budget, ExecutiveOffice of the President.

3. Charges for detective, burglar protection, and other protection securityservices performed in this state but used outside this state are exempt fromtaxation. Charges for detective, burglar protection, and other protectionsecurity services performed outside this state and used in this state aresubject to tax.

4. If a transaction involves both the sale or use of a service taxable underthis paragraph and the sale or use of a service or any other item not taxableunder this chapter, the consideration paid must be separately identified andstated with respect to the taxable and exempt portions of the transaction orthe entire transaction shall be presumed taxable. The burden shall be on theseller of the service or the purchaser of the service, whichever applicable, toovercome this presumption by providing documentary evidence as to which


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portion of the transaction is exempt from tax. The department is authorizedto adjust the amount of consideration identified as the taxable and exemptportions of the transaction; however, a determination that the taxable andexempt portions are inaccurately stated and that the adjustment isapplicable must be supported by substantial competent evidence.

5. Each seller of services subject to sales tax pursuant to this paragraphshall maintain a monthly log showing each transaction for which sales taxwas not collected because the services meet the requirements of subpara-graph 3. for out-of-state use. The log must identify the purchaser’s name,location and mailing address, and federal employer identification number, ifa business, or the social security number, if an individual, the service sold,the price of the service, the date of sale, the reason for the exemption, and thesales invoice number. The monthly log shall be maintained pursuant to thesame requirements and subject to the same penalties imposed for thekeeping of similar records pursuant to this chapter.

Section 6. Paragraph (a) of subsection (3) of section 212.0515, FloridaStatutes, is amended to read:

212.0515 Sales from vending machines; sales to vending machineoperators; special provisions; registration; penalties.—

(3)(a) An operator of a vending machine may not operate or cause to beoperated in this state any vending machine until the operator has registeredwith the department, has obtained a separate registration certificate for eachcounty in which such machines are located, and has affixed a notice to eachvending machine selling food or beverages which states the operator’s name,address, and Federal Employer Identification (FEI) number. If the operatoris not required to have an FEI number, the notice shall include the operator’ssales tax registration number. The notice must be conspicuously displayed onthe vending machine when it is being operated in this state and shall containthe following language in conspicuous type: NOTICE TO CUSTOMER:FLORIDA LAW REQUIRES THIS NOTICE TO BE POSTED ON ALLFOOD AND BEVERAGE VENDING MACHINES. REPORT ANY MA-CHINE WITHOUT A NOTICE TO (TOLL-FREE NUMBER). YOU MAY BEELIGIBLE FOR A CASH REWARD. DO NOT USE THIS NUMBER TOREPORT PROBLEMS WITH THE VENDING MACHINE SUCH AS LOSTMONEY OR OUT-OF-DATE PRODUCTS.

Section 7. Subsection (1) and paragraph (g) of subsection (5) of section212.08, Florida Statutes, are amended to read:

212.08 Sales, rental, use, consumption, distribution, and storage tax;specified exemptions.—The sale at retail, the rental, the use, the consump-tion, the distribution, and the storage to be used or consumed in this state ofthe following are hereby specifically exempt from the tax imposed by thischapter.

(1) EXEMPTIONS; GENERAL GROCERIES.—


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(a) Food products for human consumption are exempt from the taximposed by this chapter.

(b) For the purpose of this chapter, as used in this subsection, the term“food products” means edible commodities, whether processed, cooked, raw,canned, or in any other form, which are generally regarded as food. Thisincludes, but is not limited to, all of the following:

1. Cereals and cereal products, baked goods, oleomargarine, meat andmeat products, fish and seafood products, frozen foods and dinners, poultry,eggs and egg products, vegetables and vegetable products, fruit and fruitproducts, spices, salt, sugar and sugar products, milk and dairy products, andproducts intended to be mixed with milk.

2. Natural fruit or vegetable juices or their concentrates or reconstitutednatural concentrated fruit or vegetable juices, whether frozen or unfrozen,dehydrated, powdered, granulated, sweetened or unsweetened, seasonedwith salt or spice, or unseasoned; coffee, coffee substitutes, or cocoa; and tea,unless it is sold in a liquid form.

3. Bakery products sold by bakeries, pastry shops, or like establishmentsthat do not have eating facilities.

(c) The exemption provided by this subsection does not apply to:

1. When the Food products are sold as meals for consumption on or off thepremises of the dealer.

2. When the Food products are furnished, prepared, or served forconsumption at tables, chairs, or counters or from trays, glasses, dishes,or other tableware, whether provided by the dealer or by a person with whomthe dealer contracts to furnish, prepare, or serve food products to others.

3. When the Food products are ordinarily sold for immediate consump-tion on the seller’s premises or near a location at which parking facilities areprovided primarily for the use of patrons in consuming the productspurchased at the location, even though such products are sold on a “takeout” or “to go” order and are actually packaged or wrapped and taken fromthe premises of the dealer.

4. To Sandwiches sold ready for immediate consumption on or off theseller’s premises.

5. When the Food products are sold ready for immediate consumptionwithin a place, the entrance to which is subject to an admission charge.

6. When the Food products are sold as hot prepared food products.

7. To Soft drinks, including which include, but are not limited to, anynonalcoholic beverage, any preparation or beverage commonly referred to as


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a “soft drink,” or any noncarbonated drink made frommilk derivatives or tea,if when sold in cans or similar containers.

8. To Ice cream, frozen yogurt, and similar frozen dairy or nondairyproducts in cones, small cups, or pints, popsicles, frozen fruit bars, or othernovelty items, whether or not sold separately.

9. To Food that is prepared, whether on or off the premises, and sold forimmediate consumption. This does not apply to food prepared off thepremises and sold in the original sealed container, or the slicing of productsinto smaller portions.

10. When the Food products are sold through a vending machine,pushcart, motor vehicle, or any other form of vehicle.

11. To Candy and any similar product regarded as candy or confection,based on its normal use, as indicated on the label or advertising thereof.

12. To Bakery products sold by bakeries, pastry shops, or like establish-ments having that have eating facilities, except when sold for consumptionoff the seller’s premises.

13. When Food products are served, prepared, or sold in or by restau-rants, lunch counters, cafeterias, hotels, taverns, or other like places ofbusiness.

(d) As used in this subsection, the term:

1. “For consumption off the seller’s premises” means that the food ordrink is intended by the customer to be consumed at a place away from thedealer’s premises.

2. “For consumption on the seller’s premises” means that the food ordrink sold may be immediately consumed on the premises where the dealerconducts his or her business. In determining whether an item of food is soldfor immediate consumption, there shall be considered the customaryconsumption practices prevailing at the selling facility shall be considered.

3. “Premises” shall be construed broadly, and means, but is not limitedto, the lobby, aisle, or auditorium of a theater; the seating, aisle, or parkingarea of an arena, rink, or stadium; or the parking area of a drive-in or outdoortheater. The premises of a caterer with respect to catered meals or beveragesshall be the place where such meals or beverages are served.

4. “Hot prepared food products” means those products, items, orcomponents which have been prepared for sale in a heated condition andwhich are sold at any temperature that is higher than the air temperature ofthe room or place where they are sold. “Hot prepared food products,” for thepurposes of this subsection, includes a combination of hot and cold food itemsor components where a single price has been established for the combinationand the food products are sold in such combination, such as a hot meal, a hot


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specialty dish or serving, or a hot sandwich or hot pizza, including coldcomponents or side items.

(e)1. Food or drinks not exempt under paragraphs (a), (b), (c), and (d) areshall be exempt, notwithstanding those paragraphs, when purchased withfood coupons or Special Supplemental Food Program for Women, Infants,and Children vouchers issued under authority of federal law.

2. This paragraph is effective only while federal law prohibits a state’sparticipation in the federal food coupon program or Special SupplementalFood Program for Women, Infants, and Children if there is an officialdetermination that state or local sales taxes are collected within that state onpurchases of food or drinks with such coupons.

3. This paragraph shall not apply to any food or drinks on which federallaw shall permit sales taxes without penalty, such as termination of thestate’s participation.

(f) The application of the tax on a package that contains exempt foodproducts and taxable nonfood products depends upon the essential characterof the complete package.

1. If the taxable items represent more than 25 percent of the cost of thecomplete package and a single charge is made, the entire sales price of thepackage is taxable. If the taxable items are separately stated, the separatecharge for the taxable items is subject to tax.

2. If the taxable items represent 25 percent or less of the cost of thecomplete package and a single charge is made, the entire sales price of thepackage is exempt from tax. The person preparing the package is liable forthe tax on the cost of the taxable items going into the complete package. If thetaxable items are separately stated, the separate charge is subject to tax.

(5) EXEMPTIONS; ACCOUNT OF USE.—

(g) Building materials used in the rehabilitation of real property locatedin an enterprise zone.—

1. Building materials used in the rehabilitation of real property locatedin an enterprise zone are shall be exempt from the tax imposed by thischapter upon an affirmative showing to the satisfaction of the departmentthat the items have been used for the rehabilitation of real property locatedin an enterprise zone. Except as provided in subparagraph 2., this exemptioninures to the owner, lessee, or lessor at the time of the rehabilitated realproperty is rehabilitated, but located in an enterprise zone only through arefund of previously paid taxes. To receive a refund pursuant to thisparagraph, the owner, lessee, or lessor of the rehabilitated real propertylocated in an enterprise zone must file an application under oath with thegoverning body or enterprise zone development agency having jurisdictionover the enterprise zone where the business is located, as applicable. A singleapplication for a refund may be submitted for multiple, contiguous parcels


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that were part of a single parcel that was divided as part of the rehabilitationof the property. All other requirements of this paragraph apply to each parcelon an individual basis. The application must include, which includes:

a. The name and address of the person claiming the refund.

b. An address and assessment roll parcel number of the rehabilitated realproperty in an enterprise zone for which a refund of previously paid taxes isbeing sought.

c. A description of the improvements made to accomplish the rehabilita-tion of the real property.

d. A copy of a valid the building permit issued by the county or municipalbuilding department for the rehabilitation of the real property.

e. A sworn statement, under the penalty of perjury, from the generalcontractor licensed in this state with whom the applicant contracted to makethe improvements necessary to rehabilitate accomplish the rehabilitation ofthe real property, which statement lists the building materials used torehabilitate in the rehabilitation of the real property, the actual cost of thebuilding materials, and the amount of sales tax paid in this state on thebuilding materials. If In the event that a general contractor was has not beenused, the applicant, not a general contractor, shall make the swornstatement required by this sub-subparagraph shall provide this informationin a sworn statement, under the penalty of perjury. Copies of the invoicesthat which evidence the purchase of the building materials used in the suchrehabilitation and the payment of sales tax on the building materials mustshall be attached to the sworn statement provided by the general contractoror by the applicant. Unless the actual cost of building materials used in therehabilitation of real property and the payment of sales taxes due thereon isdocumented by a general contractor or by the applicant in this manner, thecost of the such building materials is deemed to shall be an amount equal to40 percent of the increase in assessed value for ad valorem tax purposes.

f. The identifying number assigned pursuant to s. 290.0065 to theenterprise zone in which the rehabilitated real property is located.

g. A certification by the local building code inspector that the improve-ments necessary to rehabilitate accomplish the rehabilitation of the realproperty are substantially completed.

h. A statement of whether the business is a small business as defined bys. 288.703(1).

i. If applicable, the name and address of each permanent employee of thebusiness, including, for each employee who is a resident of an enterprisezone, the identifying number assigned pursuant to s. 290.0065 to theenterprise zone in which the employee resides.


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2. This exemption inures to a municipality city, county, other govern-mental unit or agency, or nonprofit community-based organization through arefund of previously paid taxes if the building materials used in therehabilitation of real property located in an enterprise zone are paid forfrom the funds of a community development block grant, State HousingInitiatives Partnership Program, or similar grant or loan program. Toreceive a refund pursuant to this paragraph, a municipality city, county,other governmental unit or agency, or nonprofit community-based organiza-tion must file an application that which includes the same informationrequired to be provided in subparagraph 1. by an owner, lessee, or lessor ofrehabilitated real property. In addition, the application must include a swornstatement signed by the chief executive officer of the municipality city,county, other governmental unit or agency, or nonprofit community-basedorganization seeking a refund which states that the building materials forwhich a refund is sought were funded by paid for from the funds of acommunity development block grant, State Housing Initiatives PartnershipProgram, or similar grant or loan program.

3. Within 10 working days after receipt of an application, the governingbody or enterprise zone development agency shall review the application todetermine if it contains all the information required by pursuant tosubparagraph 1. or subparagraph 2. and meets the criteria set out in thisparagraph. The governing body or agency shall certify all applications thatcontain the required information required pursuant to subparagraph 1. orsubparagraph 2. and are meet the criteria set out in this paragraph aseligible to receive a refund. If applicable, the governing body or agency shallalso certify if 20 percent of the employees of the business are residents of anenterprise zone, excluding temporary and part-time employees. The certi-fication must shall be in writing, and a copy of the certification shall betransmitted to the executive director of the Department of Revenue. Theapplicant is shall be responsible for forwarding a certified application to thedepartment within the time specified in subparagraph 4.

4. An application for a refund pursuant to this paragraph must besubmitted to the department within 6 months after the rehabilitation of theproperty is deemed to be substantially completed by the local building codeinspector or by November 1 September 1 after the rehabilitated property isfirst subject to assessment.

5. Only Not more than one exemption through a refund of previously paidtaxes for the rehabilitation of real property is shall be permitted for anysingle parcel of property unless there is a change in ownership, a new lessor,or a new lessee of the real property. A No refund may not shall be grantedpursuant to this paragraph unless the amount to be refunded exceeds $500.A No refund may not granted pursuant to this paragraph shall exceed thelesser of 97 percent of the Florida sales or use tax paid on the cost of thebuilding materials used in the rehabilitation of the real property asdetermined pursuant to sub-subparagraph 1.e. or $5,000, or, if at least noless than 20 percent of the employees of the business are residents of anenterprise zone, excluding temporary and part-time employees, the amount


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of refund may granted pursuant to this paragraph shall not exceed the lesserof 97 percent of the sales tax paid on the cost of the such building materials or$10,000. A refund approved pursuant to this paragraph shall be made within30 days after of formal approval by the department of the application for therefund. This subparagraph shall apply retroactively to July 1, 2005.

6. The department shall adopt rules governing the manner and form ofrefund applications and may establish guidelines as to the requisites for anaffirmative showing of qualification for exemption under this paragraph.

7. The department shall deduct an amount equal to 10 percent of eachrefund granted under the provisions of this paragraph from the amounttransferred into the Local Government Half-cent Sales Tax Clearing TrustFund pursuant to s. 212.20 for the county area in which the rehabilitated realproperty is located and shall transfer that amount to the General RevenueFund.

8. For the purposes of the exemption provided in this paragraph, theterm:

a. “Building materials”means tangible personal property which becomesa component part of improvements to real property.

b. “Real property” has the same meaning as provided in s. 192.001(12).

c. “Rehabilitation of real property”means the reconstruction, renovation,restoration, rehabilitation, construction, or expansion of improvements toreal property.

d. “Substantially completed” has the same meaning as provided in s.192.042(1).

9. This paragraph expires on the date specified in s. 290.016 for theexpiration of the Florida Enterprise Zone Act.

Section 8. (1) Effective January 2, 2011, subsection (6) of section 212.08,Florida Statutes, is amended to read:

212.08 Sales, rental, use, consumption, distribution, and storage tax;specified exemptions.—The sale at retail, the rental, the use, the consump-tion, the distribution, and the storage to be used or consumed in this state ofthe following are hereby specifically exempt from the tax imposed by thischapter.

(6) EXEMPTIONS; POLITICAL SUBDIVISIONS.—

(a) There are also exempt from the tax imposed by this chapter salesmade to the United States Government, a state, or any county, municipality,or political subdivision of a state when payment is made directly to the dealerby the governmental entity. This exemption shall not inure to anytransaction otherwise taxable under this chapter when payment is made


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by a government employee by any means, including, but not limited to, cash,check, or credit card when that employee is subsequently reimbursed by thegovernmental entity. This exemption does not include sales of tangiblepersonal property made to contractors employed either directly or as agentsof any such government or political subdivision thereof when such tangiblepersonal property goes into or becomes a part of public works owned by suchgovernment or political subdivision. A determination whether a particulartransaction is properly characterized as an exempt sale to a governmententity or a taxable sale to a contractor shall be based on the substance of thetransaction rather than the form in which the transaction is cast. Thedepartment shall adopt rules that give special consideration to factors thatgovern the status of the tangible personal property before its affixation toreal property. In developing these rules, assumption of the risk of damage orloss is of paramount consideration in the determination. This exemption doesnot include sales, rental, use, consumption, or storage for use in any politicalsubdivision or municipality in this state of machines and equipment andparts and accessories therefor used in the generation, transmission, ordistribution of electrical energy by systems owned and operated by a politicalsubdivision in this state for transmission or distribution expansion. Likewiseexempt are charges for services rendered by radio and television stations,including line charges, talent fees, or license fees and charges for films,videotapes, and transcriptions used in producing radio or television broad-casts. The exemption provided in this subsection does not include sales,rental, use, consumption, or storage for use in any political subdivision ormunicipality in this state of machines and equipment and parts andaccessories therefor used in providing two-way telecommunications servicesto the public for hire by the use of a telecommunications facility, as defined ins. 364.02(15), and for which a certificate is required under chapter 364, whichfacility is owned and operated by any county, municipality, or other politicalsubdivision of the state. Any immunity of any political subdivision of thestate or other entity of local government from taxation of the property used toprovide telecommunication services that is taxed as a result of this section ishereby waived. However, the exemption provided in this subsection includestransactions taxable under this chapter which are for use by the operator of apublic-use airport, as defined in s. 332.004, in providing such telecommu-nications services for the airport or its tenants, concessionaires, or licensees,or which are for use by a public hospital for the provision of suchtelecommunications services.

(b) The exemption provided under this subsection does not include salesof tangible personal property made to contractors employed directly to or asagents of any such government or political subdivision when such tangiblepersonal property goes into or becomes a part of public works owned by suchgovernment or political subdivision. A determination of whether a particulartransaction is properly characterized as an exempt sale to a governmententity or a taxable sale to a contractor shall be based upon the substance ofthe transaction rather than the form in which the transaction is cast.However, for sales of tangible personal property that go into or become a partof public works owned by a governmental entity, other than the Federal


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Government, a governmental entity claiming the exemption provided underthis subsection shall certify to the dealer and the contractor the entity’s claimto the exemption by providing the dealer and the contractor a certificate ofentitlement to the exemption for such sales. If the department laterdetermines that such sales, in which the governmental entity provided thedealer and the contractor with a certificate of entitlement to the exemption,were not exempt sales to the governmental entity, the governmental entityshall be liable for any tax, penalty, and interest determined to be owed onsuch transactions. Possession by a dealer or contractor of a certificate ofentitlement to the exemption from the governmental entity relieves thedealer from the responsibility of collecting tax on the sale and the contractorfor any liability for tax, penalty, or interest related to the sale, and thedepartment shall look solely to the governmental entity for recovery of tax,penalty, and interest if the department determines that the transaction wasnot an exempt sale to the governmental entity. The governmental entity maynot transfer liability for such tax, penalty, and interest to another party bycontract or agreement.

(c) The department shall adopt rules for determining whether aparticular transaction is properly characterized as an exempt sale to agovernmental entity or a taxable sale to a contractor which give specialconsideration to factors that govern the status of the tangible personalproperty before being affixed to real property. In developing such rules,assumption of the risk of damage or loss is of paramount consideration in thedetermination. The department shall also adopt, by rule, a certificate ofentitlement to exemption for use as provided in paragraph (b). The certificateshall require the governmental entity to affirm that it will comply with therequirements of this subsection and the rules adopted under paragraph (b) inorder to qualify for the exemption and that it acknowledges its liability forany tax, penalty, or interest later determined by the department to be owedon such transactions.

(2) The Department of Revenue may, and all conditions are deemed metto, adopt emergency rules under ss. 120.536(1) and 120.54(4), FloridaStatutes, to implement the amendment to s. 212.08(6), Florida Statutes,made by this section. The emergency rules shall remain in effect for 6 monthsafter adoption and may be renewed during the pendency of procedures toadopt rules addressing the subject of the emergency rules.

Section 9. Effective upon this act becoming a law and operating retro-actively to July 1, 2008, paragraph (y) of subsection (8) of section 213.053,Florida Statutes, is amended to read:

213.053 Confidentiality and information sharing.—

(8) Notwithstanding any other provision of this section, the departmentmay provide:


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(y) Information relative to ss. 212.08(7)(ccc) and 220.192 to the FloridaEnergy and Climate Commission Department of Environmental Protectionfor use in the conduct of its official business.

Disclosure of information under this subsection shall be pursuant to awritten agreement between the executive director and the agency. Suchagencies, governmental or nongovernmental, shall be bound by the samerequirements of confidentiality as the Department of Revenue. Breach ofconfidentiality is a misdemeanor of the first degree, punishable as providedby s. 775.082 or s. 775.083.

Section 10. Effective July 1, 2010, subsection (5) and paragraph (d) ofsubsection (8) of section 213.053, Florida Statutes, are amended, paragraphs(z) and (aa) are added to subsection (8), and subsections (20) and (21) areadded to that section, to read:

213.053 Confidentiality and information sharing.—

(5) Nothing contained in This section does not shall prevent thedepartment from:

(a) Publishing statistics so classified as to prevent the identification ofparticular accounts, reports, declarations, or returns; or

(b) Using telephones, e-mail, facsimile machines, or other electronicmeans to:

1. Distribute information relating to changes in law, tax rates, interestrates, or other information that is not specific to a particular taxpayer;

2. Remind taxpayers of due dates;

3. Respond to a taxpayer to an electronic mail address that does notsupport encryption if the use of that address is authorized by the taxpayer; or

4. Notify taxpayers to contact the department Disclosing to the ChiefFinancial Officer the names and addresses of those taxpayers who haveclaimed an exemption pursuant to former s. 199.185(1)(i) or a deductionpursuant to s. 220.63(5).

(8) Notwithstanding any other provision of this section, the departmentmay provide:

(d) Names, addresses, and sales tax registration information, andinformation relating to a hotel or restaurant having an outstanding taxwarrant, notice of lien, or judgment lien certificate, to the Division of Hotelsand Restaurants of the Department of Business and Professional Regulationin the conduct of its official duties.


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(z) Taxpayer names and identification numbers for the purposes ofinformation-sharing agreements with financial institutions pursuant to s.213.0532.

(aa) Information relative to chapter 212 to the Department of Environ-mental Protection in the conduct of its official duties in the administration ofs. 253.03(7)(b) and (11).

Disclosure of information under this subsection shall be pursuant to awritten agreement between the executive director and the agency. Suchagencies, governmental or nongovernmental, shall be bound by the samerequirements of confidentiality as the Department of Revenue. Breach ofconfidentiality is a misdemeanor of the first degree, punishable as providedby s. 775.082 or s. 775.083.

(20)(a) The department may publish a list of taxpayers against whom thedepartment has filed a warrant, notice of lien, or judgment lien certificate.The list may include the name and address of each taxpayer; the amountsand types of delinquent taxes, fees, surcharges, penalties, or interest; and theemployer identification number or other taxpayer identification number.

(b) The department shall update the list at least monthly to reflectpayments for resolution of deficiencies and to otherwise add or removetaxpayers from the list.

(c) The department may adopt rules to administer this subsection.

(21) The department may disclose information relating to taxpayersagainst whom the department has filed a warrant, notice of lien, or judgmentlien certificate. Such information may include the name and address of thetaxpayer, the actions taken, the amounts and types of liabilities, and theamount of any collections made.

Section 11. Effective July 1, 2010, section 213.0532, Florida Statutes, iscreated to read:

213.0532 Information-sharing agreements with financial institutions.—

(1) As used in this section, the term:

(a) “Account” means a demand deposit account, checking or negotiablewithdrawal order account, savings account, time deposit account, or money-market mutual fund account.

(b) “Department” means the Department of Revenue.

(c) “Financial institution” means:

1. A depository institution as defined in 12 U.S.C. s. 1813(c);

2. An institution-affiliated party as defined in 12 U.S.C. s. 1813(u);


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3. A federal credit union or state credit union as defined in 12 U.S.C. s.1752, including an institution-affiliated party of such a credit union asdefined in 12 U.S.C. s. 1786(r); or

4. A benefit association, insurance company, safe-deposit company,money-market mutual fund, or similar entity authorized to do business inthis state.

(d) “Obligor” means any person against whose property the departmenthas filed a warrant or judgment lien certificate.

(e) “Person” has the same meaning as provided in s. 212.02.

(2) The department shall request information and assistance from afinancial institution as necessary to enforce the tax laws of this state.Pursuant to this subsection, financial institutions doing business in thisstate and having deposits of at least $50 million shall enter into agreementswith the department to develop and operate a data match system, using anautomated data exchange to the maximum extent feasible, under which thefinancial institution shall provide, to the extent allowable by law, for eachcalendar quarter the name, record address, social security number or othertaxpayer identification number, average daily account balance, and otheridentifying information for:

(a) Each obligor who maintains an account at the financial institution asidentified to the institution by the department by name and social securitynumber or other taxpayer identification number; or

(b) At the financial institution’s option, each person who maintains anaccount at the institution.

(3) The department may enter into agreements to operate an automateddata exchange with financial institutions having deposits that do not exceed$50 million.

(4) The department may use the information received pursuant to thissection only for the purpose of enforcing the collection of taxes and feesadministered by the department.

(5) To the extent possible and in compliance with state and federal law,the department shall administer this section in conjunction with s.409.25657 in order to avoid duplication and reduce the burden on financialinstitutions.

(6) The department shall pay a reasonable fee to the financial institutionfor conducting the data match provided for in this section, which may notexceed actual costs incurred by the financial institution.

(7) A financial institution is not required to provide notice to itscustomers and is not liable to any person for:


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(a) Disclosing to the department any information required under thissection.

(b) Encumbering or surrendering any assets held by the financialinstitution in response to a notice of lien or levy issued by the department.

(c) Disclosing any information in connection with a data match.

(d) Taking any other action in good faith to comply with the requirementsof this section.

(8) Any financial records obtained pursuant to this section may bedisclosed only for the purpose of, and to the extent necessary, to administerand enforce the tax laws of this state.

(9) The department may adopt rules establishing the procedures andrequirements for conducting automated data matches with financialinstitutions pursuant to this section.

Section 12. Effective July 1, 2010, section 213.25, Florida Statutes, isamended to read:

213.25 Refunds; credits; right of setoff.—If In any instance that ataxpayer has a tax refund or tax credit is due to a taxpayer for anoverpayment of taxes assessed under any of the chapters specified in s.72.011(1), the department may reduce the such refund or credit to the extentof any billings not subject to protest under s. 213.21 or chapter 443 for thesame or any other tax owed by the same taxpayer.

Section 13. Effective July 1, 2010, section 213.50, Florida Statutes, isamended to read:

213.50 Failure to comply; revocation of corporate charter or hotel orrestaurant license; refusal to reinstate charter or license.—

(1) Any corporation of this state which has an outstanding tax warrantthat has existed for more than 3 consecutive months is subject to therevocation of its charter as provided in s. 607.1420.

(2) A request for reinstatement of a corporate charter may not be grantedby the Division of Corporations of the Department of State if an outstandingtax warrant has existed for that corporation for more than 3 consecutivemonths.

(3)(a) The Division of Hotels and Restaurants of the Department ofBusiness and Professional Regulation may suspend a license to operate apublic lodging establishment or a public food service establishment if a taxwarrant has been outstanding against the licenseholder for more than 3months.


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(b) The division may deny an application to renew a license to operate apublic lodging establishment or a public food service establishment if a taxwarrant has been outstanding against the licenseholder for more than 3months.

Section 14. Effective July 1, 2010, subsection (1) of section 213.67, FloridaStatutes, is amended to read:

213.67 Garnishment.—

(1) If a person is delinquent in the payment of any taxes, penalties, andinterest owed to the department, the executive director or his or her designeemay give notice of the amount of such delinquency by registered mail,personal service, or by electronic means, including, but not limited to,facsimile transmissions, electronic data interchange, or use of the Internet,to all persons having in their possession or under their control any credits orpersonal property, exclusive of wages, belonging to the delinquent taxpayer,or owing any debts to such delinquent taxpayer at the time of receipt by themof such notice. Thereafter, any person who has been notified may not transferor make any other disposition of such credits, other personal property, ordebts until the executive director or his or her designee consents to a transferor disposition or until 60 days after the receipt of such notice. However,except that the credits, other personal property, or debts that which exceedthe delinquent amount stipulated in the notice are shall not be subject to theprovisions of this section, wherever held, if in any case in which the taxpayerdoes not have a prior history of tax delinquencies. If during the effectiveperiod of the notice to withhold, any person so notified makes any transfer ordisposition of the property or debts required to be withheld under this sectionhereunder, he or she is liable to the state for any indebtedness owed to thedepartment by the person with respect to whose obligation the notice wasgiven to the extent of the value of the property or the amount of the debtsthus transferred or paid if, solely by reason of such transfer or disposition,the state is unable to recover the indebtedness of the person with respect towhose obligation the notice was given. If the delinquent taxpayer conteststhe intended levy in circuit court or under chapter 120, the notice under thissection remains effective until that final resolution of the contest. Anyfinancial institution receiving such notice will maintain a right of setoff forany transaction involving a debit card occurring on or before the date ofreceipt of such notice.

Section 15. Effective upon this act becoming a law and operatingretroactively to July 1, 2008, subsections (4) and (5) of section 220.192,Florida Statutes, are amended to read:

220.192 Renewable energy technologies investment tax credit.—

(4) TAXPAYER APPLICATION PROCESS.—To claim a credit underthis section, each taxpayer must apply to the Florida Energy and ClimateCommission Department of Environmental Protection for an allocation ofeach type of annual credit by the date established by the Florida Energy and


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Climate Commission Department of Environmental Protection. The applica-tion form may be established by the Florida Energy and Climate Commis-sion. The form must Department of Environmental Protection and shallinclude an affidavit from each taxpayer certifying that all informationcontained in the application, including all records of eligible costs claimed asthe basis for the tax credit, are true and correct. Approval of the credits underthis section shall be accomplished on a first-come, first-served basis, basedupon the date complete applications are received by the Florida Energy andClimate Commission Department of Environmental Protection. A taxpayershall submit only one complete application based upon eligible costs incurredwithin a particular state fiscal year. Incomplete placeholder applications willnot be accepted and will not secure a place in the first-come, first-servedapplication line. If a taxpayer does not receive a tax credit allocation due tothe exhaustion of the annual tax credit authorizations, then such taxpayermay reapply in the following year for those eligible costs and will havepriority over other applicants for the allocation of credits.

(5) ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OFCREDITS.—

(a) In addition to its existing audit and investigation authority, theDepartment of Revenue may perform any additional financial and technicalaudits and investigations, including examining the accounts, books, andrecords of the tax credit applicant, which that are necessary to verify theeligible costs included in the tax credit return and to ensure compliance withthis section. The Florida Energy and Climate Commission Department ofEnvironmental Protection shall provide technical assistance when requestedby the Department of Revenue on any technical audits or examinationsperformed pursuant to this section.

(b) It is grounds for forfeiture of previously claimed and received taxcredits if the Department of Revenue determines, as a result of either anaudit or examination or from information received from the Florida Energyand Climate Commission Department of Environmental Protection, that ataxpayer received tax credits pursuant to this section to which the taxpayerwas not entitled. The taxpayer is responsible for returning forfeited taxcredits to the Department of Revenue, and such funds shall be paid into theGeneral Revenue Fund of the state.

(c) The Florida Energy and Climate Commission Department of Envir-onmental Protection may revoke or modify any written decision grantingeligibility for tax credits under this section if it is discovered that the taxcredit applicant submitted any false statement, representation, or certifica-tion in any application, record, report, plan, or other document filed in anattempt to receive tax credits under this section. The Florida Energy andClimate Commission Department of Environmental Protection shall im-mediately notify the Department of Revenue of any revoked or modifiedorders affecting previously granted tax credits. Additionally, the taxpayermust notify the Department of Revenue of any change in its tax creditclaimed.


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(d) The taxpayer shall file with the Department of Revenue an amendedreturn or such other report as the Department of Revenue prescribes by ruleand shall pay any required tax and interest within 60 days after the taxpayerreceives notification from the Florida Energy and Climate CommissionDepartment of Environmental Protection that previously approved taxcredits have been revoked or modified. If the revocation or modificationorder is contested, the taxpayer shall file an amended return or other reportas provided in this paragraph within 60 days after a final order is issued afterfollowing proceedings.

(e) A notice of deficiency may be issued by the Department of Revenue atany time within 3 years after the taxpayer receives formal notification fromthe Florida Energy and Climate Commission Department of EnvironmentalProtection that previously approved tax credits have been revoked ormodified. If a taxpayer fails to notify the Department of Revenue of anychanges to its tax credit claimed, a notice of deficiency may be issued at anytime.

Section 16. Effective July 1, 2010, paragraph (c) of subsection (1) ofsection 336.021, Florida Statutes, is amended to read:

336.021 County transportation system; levy of ninth-cent fuel tax onmotor fuel and diesel fuel.—

(1)

(c) Local option taxes collected on sales or use of diesel fuel in this stateshall be distributed in the following manner:

1. The fiscal year of July 1, 1995, through June 30, 1996, shall be the baseyear for all distributions.

2. Each year the tax collected, less the service and administrativecharges enumerated in s. 215.20 and the allowances allowed under s.206.91, on the number of gallons reported, up to the total number of gallonsreported in the base year, shall be distributed to each county using thedistribution percentage calculated for the base year.

3. After the distribution of taxes pursuant to subparagraph 4. 2.,additional taxes available for distribution shall first be distributed pursuantto this subparagraph. A distribution shall be made to each county in which aqualified new retail station is located. A qualified new retail station is a retailstation that began operation after June 30, 1996, and that has sales of dieselfuel exceeding 50 percent of the sales of diesel fuel reported in the county inwhich it is located during the 1995-1996 state fiscal year. The determinationof whether a new retail station is qualified shall be based on the total gallonsof diesel fuel sold at the station during each full month of operation duringthe 12-month period ending January 31, divided by the number of fullmonths of operation during those 12 months, and the result multiplied by 12.The amount distributed pursuant to this subparagraph to each county in


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which a qualified new retail station is located shall equal the local optiontaxes due on the gallons of diesel fuel sold by the new retail station during theyear ending January 31, less the service charges enumerated in s. 215.20 andthe dealer allowance provided for by s. 206.91. Gallons of diesel fuel sold atthe qualified new retail station shall be certified to the department by thecounty requesting the additional distribution by June 15, 1997, and byMarch1 in each subsequent year. The certification shall include the beginninginventory, fuel purchases and sales, and the ending inventory for the newretail station for each month of operation during the year, the originalpurchase invoices for the period, and any other information the departmentdeems reasonable and necessary to establish the certified gallons. Thedepartment may review and audit the retail dealer’s records provided to acounty to establish the gallons sold by the new retail station. Notwithstand-ing the provisions of this subparagraph, whenmore than one county qualifiesfor a distribution pursuant to this subparagraph and the requesteddistributions exceed the total taxes available for distribution, each countyshall receive a prorated share of the moneys available for distribution.

4. After the distribution of taxes pursuant to subparagraph 2. 3., alladditional taxes available for distribution, except the taxes described insubparagraph 3., shall be distributed based on vehicular diesel fuel storagecapacities in each county pursuant to this subparagraph. The total vehiculardiesel fuel storage capacity shall be established for each fiscal year based onthe registration of facilities with the Department of Environmental Protec-tion as required by s. 376.303 for the following facility types: retail stations,fuel user/nonretail, state government, local government, and county govern-ment. Each county shall receive a share of the total taxes available fordistribution pursuant to this subparagraph equal to a fraction, thenumerator of which is the storage capacity located within the county forvehicular diesel fuel in the facility types listed in this subparagraph and thedenominator of which is the total statewide storage capacity for vehiculardiesel fuel in those facility types. The vehicular diesel fuel storage capacityfor each county and facility type shall be that established by the Departmentof Environmental Protection by June 1, 1997, for the 1996-1997 fiscal year,and by January 31 for each succeeding fiscal year. The storage capacities soestablished shall be final. The storage capacity for any new retail station forwhich a county receives a distribution pursuant to subparagraph 3. shall notbe included in the calculations pursuant to this subparagraph.

Section 17. Subsection (20) of section 443.036, Florida Statutes, isamended to read:

443.036 Definitions.—As used in this chapter, the term:

(20) “Employing unit” means an individual or type of organization,including a partnership, limited liability company, association, trust, estate,joint-stock company, insurance company, or corporation, whether domesticor foreign; the receiver, trustee in bankruptcy, trustee, or successor of any ofthe foregoing; or the legal representative of a deceased person, which has or


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had in its employ one or more individuals performing services for it withinthis state.

(a) Each individual employed to perform or to assist in performing thework of any agent or employee of an employing unit is deemed to be employedby the employing unit for the purposes of this chapter, regardless of whetherthe individual was hired or paid directly by the employing unit or by an agentor employee of the employing unit, if the employing unit had actual orconstructive knowledge of the work.

(b) Each individual performing services in this state for an employingunit maintaining at least two separate establishments in this state is deemedto be performing services for a single employing unit for the purposes of thischapter.

(c) A person who is an officer of a corporation, or a member of a limitedliability company classified as a corporation for federal income tax purposes,and who performs services for the corporation or limited liability company inthis state, regardless of whether those services are continuous, is deemed anemployee of the corporation or the limited liability company during all ofeach week of his or her tenure of office, regardless of whether he or she iscompensated for those services. Services are presumed to be rendered for thecorporation in cases in which the officer is compensated by means other thandividends upon shares of stock of the corporation owned by him or her.

(d) A limited liability company shall be treated as having the same statusas it is classified for federal income tax purposes. However, a single-memberlimited liability company shall be treated as the employer.

Section 18. Paragraph (b) of subsection (2) of section 443.1215, FloridaStatutes, is amended to read:

443.1215 Employers.—

(2)

(b) In determining whether an employing unit for which service, otherthan agricultural labor, is also performed is an employer under paragraph(1)(a), paragraph (1)(b), paragraph (1)(c), or subparagraph (1)(d)2., the wagesearned or the employment of an employee performing service in agriculturallabor may not be taken into account. If an employing unit is determined to bean employer of agricultural labor, the employing unit is considered anemployer for purposes of paragraph (1)(a) subsection (1).


443.1316 Unemployment tax collection services; interagency agreement.

(2)(a) The Department of Revenue is considered to be administering arevenue law of this state when the department implements this chapter, or


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otherwise provides unemployment tax collection services, under contractwith the Agency for Workforce Innovation through the interagency agree-ment.

(b) Sections 213.015(1)-(3), (5)-(7), (9)-(19), and (21); 213.018; 213.025;213.051; 213.053; 213.0532; 213.0535; 213.055; 213.071; 213.10; 213.21(4);213.2201; 213.23; 213.24; 213.25; 213.27; 213.28; 213.285; 213.34(1), (3), and(4); 213.37; 213.50; 213.67; 213.69; 213.692; 213.73; 213.733; 213.74; and213.757 apply to the collection of unemployment contributions and reim-bursements by the Department of Revenue unless prohibited by federal law.

Section 20. Subsections (1), (2), and (3) of section 443.141, FloridaStatutes, are amended to read:

443.141 Collection of contributions and reimbursements.—

(1) PAST DUE CONTRIBUTIONS AND REIMBURSEMENTS; DELIN-QUENT, ERRONEOUS, INCOMPLETE, OR INSUFFICIENT REPORTS.

(a) Interest.—Contributions or reimbursements unpaid on the date dueshall bear interest at the rate of 1 percent per month from and after that dateuntil payment plus accrued interest is received by the tax collection serviceprovider, unless the service provider finds that the employing unit has or hadgood reason for failure to pay the contributions or reimbursements when due.Interest collected under this subsection must be paid into the SpecialEmployment Security Administration Trust Fund.

(b) Penalty for delinquent, erroneous, incomplete, or insufficient reports.

1. An employing unit that fails to file any report required by the Agencyfor Workforce Innovation or its tax collection service provider, in accordancewith rules for administering this chapter, shall pay to the tax collectionservice provider for each delinquent report the sum of $25 for each 30 days orfraction thereof that the employing unit is delinquent, unless the agency orits service provider, whichever required the report, finds that the employingunit has or had good reason for failure to file the report. The agency or itsservice provider may assess penalties only through the date of the issuance ofthe final assessment notice. However, additional penalties accrue if thedelinquent report is subsequently filed.

2.a. An employing unit that files an erroneous, incomplete, or insufficientreport with the Agency for Workforce Innovation or its tax collection serviceprovider shall pay a penalty. The amount of the penalty is $50 or 10 percentof any tax due, whichever is greater, but no more than $300 per report. Thepenalty shall be added to any tax, penalty, or interest otherwise due.

b. The agency or its tax collection service provider shall waive the penaltyif the employing unit files an accurate, complete, and sufficient report within30 days after a penalty notice is issued to the employing unit. The penaltymay not be waived pursuant to this subparagraphmore than one time duringa 12-month period.


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c. As used in this subsection, the term “erroneous, incomplete, orinsufficient report” means a report so lacking in information, completeness,or arrangement that the report cannot be readily understood, verified, orreviewed. Such reports include, but are not limited to, reports havingmissingwage or employee information, missing or incorrect social security numbers,or illegible entries; reports submitted in a format that is not approved by theagency or its tax collection service provider; and reports showing gross wagesthat do not equal the total of the wages of each employee. However, the termdoes not include a report that merely contains inaccurate data that wassupplied to the employer by the employee, if the employer was unaware of theinaccuracy.

3.2. Sums collected as Penalties imposed pursuant to this paragraphshall under subparagraph 1. must be deposited in the Special EmploymentSecurity Administration Trust Fund.

4.3. The penalty and interest for a delinquent, erroneous, incomplete, orinsufficient report may be waived if when the penalty or interest isinequitable. The provisions of s. 213.24(1) apply to any penalty or interestthat is imposed under this section.

5. The Agency for Workforce Innovation and the state agency providingunemployment tax collection services may adopt rules to administer thissubsection.

(c) Application of partial payments.—If When a delinquency exists in theemployment record of an employer not in bankruptcy, a partial payment lessthan the total delinquency amount shall be applied to the employment recordas the payor directs. In the absence of specific direction, the partial paymentshall be applied to the payor’s employment record as prescribed in the rulesof the Agency for Workforce Innovation or the state agency providing taxcollection services.

(2) REPORTS, CONTRIBUTIONS, APPEALS.—

(a) Failure to make reports and pay contributions.—If an employing unitdetermined by the tax collection service provider to be an employer subject tothis chapter fails to make and file any report as and when required by thischapter or by any rule of the Agency for Workforce Innovation or the stateagency providing tax collection services, for the purpose of determining theamount of contributions due by the employer under this chapter, or if anyfiled report is found by the service provider to be incorrect or insufficient, andthe employer, after being notified in writing by the service provider to file thereport, or a corrected or sufficient report, as applicable, fails to file the reportwithin 15 days after the date of the mailing of the notice, the tax collectionservice provider may:

1. Determine the amount of contributions due from the employer basedon the information readily available to it, which determination is deemed tobe prima facie correct;


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2. Assess the employer the amount of contributions determined to be due;and

3. Immediately notify the employer by mail of the determination andassessment including penalties as provided in this chapter, if any, added andassessed, and demand payment together with interest on the amount ofcontributions from the date that amount was due and payable.

(b) Hearings.—The determination and assessment are final 15 days afterthe date the assessment is mailed unless the employer files with the taxcollection service provider within the 15 days a written protest and petitionfor hearing specifying the objections thereto. The tax collection serviceprovider shall promptly review each petition and may reconsider itsdetermination and assessment in order to resolve the petitioner’s objections.The tax collection service provider shall forward each petition remainingunresolved to the Agency for Workforce Innovation for a hearing on theobjections. Upon receipt of a petition, the Agency for Workforce Innovationshall schedule a hearing and notify the petitioner of the time and place of thehearing. The Agency for Workforce Innovation may appoint special deputiesto conduct hearings and to submit their findings together with a transcript ofthe proceedings before them and their recommendations to the agency for itsfinal order. Special deputies are subject to the prohibition against ex partecommunications in s. 120.66. At any hearing conducted by the Agency forWorkforce Innovation or its special deputy, evidence may be offered tosupport the determination and assessment or to prove it is incorrect. In orderto prevail, however, the petitioner must either prove that the determinationand assessment are incorrect or file full and complete corrected reports.Evidence may also be submitted at the hearing to rebut the determination bythe tax collection service provider that the petitioner is an employer underthis chapter. Upon evidence taken before it or upon the transcript submittedto it with the findings and recommendation of its special deputy, the Agencyfor Workforce Innovation shall either set aside the tax collection serviceprovider’s determination that the petitioner is an employer under thischapter or reaffirm the determination. The amounts assessed under the finalorder, together with interest and penalties, must be paid within 15 days afternotice of the final order is mailed to the employer, unless judicial review isinstituted in a case of status determination. Amounts due when the status ofthe employer is in dispute are payable within 15 days after the entry of anorder by the court affirming the determination. However, any determinationthat an employing unit is not an employer under this chapter does not affectthe benefit rights of any individual as determined by an appeals referee orthe commission unless:

1. The individual is made a party to the proceedings before the specialdeputy; or

2. The decision of the appeals referee or the commission has not becomefinal or the employing unit and the Agency for Workforce Innovation werenot made parties to the proceedings before the appeals referee or thecommission.


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(c) Appeals.—The Agency for Workforce Innovation and the state agencyproviding unemployment tax collection services shall adopt rules prescribingthe procedures for an employing unit determined to be an employer to file anappeal and be afforded an opportunity for a hearing on the determination.Pending a hearing, the employing unit must file reports and pay contribu-tions in accordance with s. 443.131.

(3) COLLECTION PROCEEDINGS.—

(a) Lien for payment of contributions or reimbursements.—

1. There is created A lien exists in favor of the tax collection serviceprovider upon all the property, both real and personal, of any employer liablefor payment of any contribution or reimbursement levied and imposed underthis chapter for the amount of the contributions or reimbursements due,together with interest, costs, and penalties. If any contribution or reimburse-ment imposed under this chapter or any portion of that contribution,reimbursement, interest, or penalty is not paid within 60 days afterbecoming delinquent, the tax collection service provider may file subse-quently issue a notice of lien that may be filed in the office of the clerk of thecircuit court of any county in which the delinquent employer owns propertyor conducts or has conducted business. The notice of lien must include theperiods for which the contributions, reimbursements, interest, or penaltiesare demanded and the amounts due. A copy of the notice of lien must bemailed to the employer at the employer’s her or his last known address. Thenotice of lien may not be filed issued and recorded until 15 days after the datethe assessment becomes final under subsection (2). Upon filing presentationof the notice of lien, the clerk of the circuit court shall record the notice of lienit in a book maintained for that purpose, and the amount of the notice of lien,together with the cost of recording and interest accruing upon the amount ofthe contribution or reimbursement, becomes a lien upon the title to andinterest, whether legal or equitable, in any real property, chattels real, orpersonal property of the employer against whom the notice of lien is issued,in the samemanner as a judgment of the circuit court docketed in the office ofthe circuit court clerk, with execution issued to the sheriff for levy. This lien isprior, preferred, and superior to all mortgages or other liens filed, recorded,or acquired after the notice of lien is filed. Upon the payment of the amountsdue, or upon determination by the tax collection service provider that thenotice of lien was erroneously issued, the lien is satisfied when the serviceprovider acknowledges in writing that the lien is fully satisfied. A lien’ssatisfaction does not need to be acknowledged before any notary or otherpublic officer, and the signature of the director of the tax collection serviceprovider or his or her designee is conclusive evidence of the satisfaction of thelien, which satisfaction shall be recorded by the clerk of the circuit court whoreceives the fees for those services.

2. The tax collection service provider may subsequently issue a warrantdirected to any sheriff in this state, commanding him or her to levy upon andsell any real or personal property of the employer liable for any amountunder this chapter within his or her jurisdiction, for payment, with the added


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penalties and interest and the costs of executing the warrant, together withthe costs of the clerk of the circuit court in recording and docketing the noticeof lien, and to return the warrant to the service provider with payment. Thewarrant may only be issued and enforced for all amounts due to the taxcollection service provider on the date the warrant is issued, together withinterest accruing on the contribution or reimbursement due from theemployer to the date of payment at the rate provided in this section. Inthe event of sale of any assets of the employer, however, priorities under thewarrant shall be determined in accordance with the priority established byany notices of lien filed by the tax collection service provider and recorded bythe clerk of the circuit court. The sheriff shall execute the warrant in thesame manner prescribed by law for executions issued by the clerk of thecircuit court for judgments of the circuit court. The sheriff is entitled to thesame fees for executing the warrant as for a writ of execution out of the circuitcourt, and these fees must be collected in the same manner.

3. The lien expires 10 years after the filing of a notice of lien with theclerk of court. An action to collect amounts due under this chapter may not becommenced after the expiration of the lien securing the payment of theamounts owed.

(b) Injunctive procedures to contest warrants after issuance.—An in-junction or restraining order to stay the execution of a warrant may not beissued until a motion is filed; reasonable notice of a hearing on the motion forthe injunction is served on the tax collection service provider; and the partyseeking the injunction either pays into the custody of the court the fullamount of contributions, reimbursements, interests, costs, and penaltiesclaimed in the warrant or enters into and files with the court a bond with twoor more good and sufficient sureties approved by the court in a sum at leasttwice the amount of the contributions, reimbursements, interests, costs, andpenalties, payable to the tax collection service provider. The bond must alsobe conditioned to pay the amount of the warrant, interest, and any damagesresulting from the wrongful issuing of the injunction, if the injunction isdissolved, or the motion for the injunction is dismissed. Only one surety isrequired when the bond is executed by a lawfully authorized surety company.

(c) Attachment and garnishment.—Upon the filing of notice of lien asprovided in subparagraph (a)1., the tax collection service provider is entitledto remedy by attachment or garnishment as provided in chapters 76 and 77,as for a debt due. Upon application by the tax collection service provider,these writs shall be issued by the clerk of the circuit court as upon a judgmentof the circuit court duly docketed and recorded. These writs shall bereturnable to the circuit court. A bond may not be required of the taxcollection service provider as a condition required for the issuance of thesewrits of attachment or garnishment. Issues raised under proceedings byattachment or garnishment shall be tried by the circuit court in the samemanner as a judgment under chapters 76 and 77. Further, the notice of lienfiled by the tax collection service provider is valid for purposes of all remediesunder this chapter until satisfied under this chapter, and revival by scirefacias or other proceedings are not necessary before pursuing any remedy


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authorized by law. Proceedings authorized upon a judgment of the circuitcourt do not make the lien a judgment of the circuit court upon a debt for anypurpose other than as are specifically provided by law as proceduralremedies.

(d) Third-party claims.—Upon any levy made by the sheriff under a writof attachment or garnishment as provided in paragraph (c), the circuit courtshall try third-party claims to property involved as upon a judgment thereofand all proceedings authorized on third-party claims in ss. 56.16, 56.20,76.21, and 77.16 shall apply.

(e) Proceedings supplementary to execution.—At any time after awarrant provided for in subparagraph (a)2. is returned unsatisfied by anysheriff of this state, the tax collection service provider may file an affidavit inthe circuit court affirming the warrant was returned unsatisfied and remainsvalid and outstanding. The affidavit must also state the residence of theparty or parties against whom the warrant is issued. The tax collectionservice provider is subsequently entitled to have other and further proceed-ings in the circuit court as upon a judgment thereof as provided in s. 56.29.

(f) Reproductions.—In any proceedings in any court under this chapter,reproductions of the original records of the Agency for Workforce Innovation,its tax collection service provider, the former Department of Labor andEmployment Security, or the commission, including, but not limited to,photocopies or microfilm, are primary evidence in lieu of the original recordsor of the documents that were transcribed into those records.

(g) Jeopardy assessment and warrant.—If the tax collection serviceprovider reasonably believes that the collection of contributions or reimbur-sements from an employer will be jeopardized by delay, the service providermay assess the contributions or reimbursements immediately, together withinterest or penalties when due, regardless of whether the contributions orreimbursements accrued are due, and may immediately issue a notice of lienand jeopardy warrant upon which proceedings may be conducted as providedin this section for notice of lien and warrant of the service provider. Within 15days after mailing the notice of lien by registered mail, the employer mayprotest the issuance of the lien in the same manner provided in paragraph(2)(a). The protest does not operate as a supersedeas or stay of enforcementunless the employer files with the sheriff seeking to enforce the warrant agood and sufficient surety bond in twice the amount demanded by the noticeof lien or warrant. The bond must be conditioned upon payment of theamount subsequently found to be due from the employer to the tax collectionservice provider in the final order of the Agency for Workforce Innovationupon protest of assessment. The jeopardy warrant and notice of lien aresatisfied in the manner provided in this section upon payment of the amountfinally determined to be due from the employer. If enforcement of thejeopardy warrant is not superseded as provided in this section, the employeris entitled to a refund from the fund of all amounts paid as contributions orreimbursements in excess of the amount finally determined to be due by theemployer upon application being made as provided in this chapter.


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Section 21. Effective July 1, 2010, subsection (2) of section 443.163,Florida Statutes, is amended to read:

443.163 Electronic reporting and remitting of contributions and reim-bursements.—

(2)(a) An employer who is required by law to file an Employers QuarterlyReport (UCT-6) by approved electronic means, but who files the report by ameans other than approved electronic means, is liable for a penalty of $50$10 for that report and $1 for each employee. This penalty, which is inaddition to any other applicable penalty provided by this chapter. However,unless the penalty does not apply if employer first obtains a waiver of thisrequirement from the tax collection service provider waives the electronicfiling requirement in advance. An employer who fails to remit contributionsor reimbursements by approved electronic means as required by law is liablefor a penalty of $50 $10 for each remittance submitted by a means other thanapproved electronic means. This penalty, which is in addition to any otherapplicable penalty provided by this chapter.

(b) A person who prepared and reported for 100 or more employers in anyquarter during the preceding state fiscal year, but who fails to file anEmployers Quarterly Report (UCT-6) for each calendar quarter in thecurrent calendar year by approved electronic means as required by law, isliable for a penalty of $50 $10 for that report and $1 for each employee. Thispenalty, which is in addition to any other applicable penalty provided by thischapter. However, unless the penalty does not apply if person first obtains awaiver of this requirement from the tax collection service provider waives theelectronic filing requirement in advance.


443.163 Electronic reporting and remitting of contributions and reim-bursements.—

(3) The tax collection service provider may waive the requirement to filean Employers Quarterly Report (UCT-6) by electronic means for employersthat are unable to comply despite good faith efforts or due to circumstancesbeyond the employer’s reasonable control.

(a) As prescribed by the Agency for Workforce Innovation or its taxcollection service provider, grounds for approving the waiver include, but arenot limited to, circumstances in which the employer does not:

1. Currently file information or data electronically with any business orgovernment agency; or

2. Have a compatible computer that meets or exceeds the standardsprescribed by the Agency for Workforce Innovation or its tax collectionservice provider.


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(b) The tax collection service provider shall accept other reasons forrequesting a waiver from the requirement to submit the EmployersQuarterly Report (UCT-6) by electronic means, including, but not limited to:

1. That the employer needs additional time to program his or hercomputer;

2. That complying with this requirement causes the employer financialhardship; or

3. That complying with this requirement conflicts with the employer’sbusiness procedures.

(c) The Agency for Workforce Innovation or the state agency providingunemployment tax collection services may establish by rule the length oftime a waiver is valid and may determine whether subsequent waivers willbe authorized, based on this subsection; however, the tax collection serviceprovider may only grant a waiver from electronic reporting if the employertimely files the Employers Quarterly Report (UCT-6) by telefile, unless theemployer wage detail exceeds the service provider’s telefile system capabil-ities.

Section 23. Section 213.692, Florida Statutes, is created to read:

213.692 Integrated enforcement authority.—

(1) If the department files a warrant, notice of lien, or judgment liencertificate against the property of a taxpayer, the department may alsorevoke all certificates of registration, permits, or licenses issued by thedepartment to that taxpayer.

(a) Before the department may revoke the certificates of registration,permits, or licenses, the department must schedule an informal conferencethat the taxpayer is required to attend. At the conference, the taxpayer maypresent evidence regarding the department’s intended action or enter into acompliance agreement. The department must provide written notice to thetaxpayer of the department’s intended action and the time, date, and place ofthe conference. The department shall issue an administrative complaint torevoke the certificates of registration, permits, or licenses if the taxpayerdoes not attend the conference, enter into a compliance agreement, or complywith the compliance agreement.

(b) The department may not issue a certificate of registration, permit, orlicense to a taxpayer whose certificate of registration, permit, or license hasbeen revoked unless:

1. The outstanding liabilities of the taxpayer have been satisfied; or

2. The department enters into a written agreement with the taxpayerregarding any outstanding liabilities and, as part of such agreement, agreesto issue a certificate of registration, permit, or license.


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(c) The department shall require a cash deposit, bond, or other security asa condition of issuing a new certificate of registration pursuant to therequirements of s. 212.14(4).

(2) If the department files a warrant or a judgment lien certificate inconnection with a jeopardy assessment, the department must comply withthe procedures in s. 213.732 before or in conjunction with those provided inthis section.

(3) The department may adopt rules to administer this section.

Section 24. Effective July 1, 2010, the Department of Revenue isauthorized to adopt emergency rules to administer s. 213.692, FloridaStatutes. The emergency rules shall remain in effect for 6 months afteradoption and may be renewed during the pendency of procedures to adoptrules addressing the subject of the emergency rules.

Section 25. Sections 195.095 and 213.054, Florida Statutes, are repealed.

Section 26. Except as otherwise expressly provided in this act, this actshall take effect upon becoming a law.

Approved by the Governor May 27, 2010.

Filed in Office Secretary of State May 27, 2010.


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Documents

CHAPTER 2010-138 Committee Substitute for House Bill No. 7157laws.flrules.org/files/Ch_2010-138.pdf · Committee Substitute for House Bill No. 7157 An act relating to taxation; amending