Post Legislative Review

Legislative Review

2007Changes to Florida Tax and

Child Support Enforcement Laws

Post

This booklet has been compiled by the Florida Department of Revenue to inform you about law changes enacted by the Florida Legislature during the 2007 Legislative Session.

We have made every effort to ensure this information is accurate; however, it should be used for reference only, and not relied on as a statement of law. For current enacted general law, please refer to the chapter law referenced or the 2007 edition of the Florida Statutes online at www.leg.state.fl.us.

Each item is briefly described and may not include detailed coverage of every issue that might affect a particular taxpayer or child support enforcement customer. Before applying the changes to a specific decision on taxes or child support, you should consult the law and Department rules, or contact us for assistance.

If you have questions about tax issues or other provisions of tax law, or would like additional copies of this booklet, please contact our Taxpayer Services group at 1-800-352-3671. Persons with hearing or speech impairments may call our TDD line at 850-922-1115 or 1-800-367-8331. If you want a written response to a tax question, send your correspondence to P.O. Box 7443, Tallahassee, Florida 32314-7443.

If you have questions about child support issues, you may call the Child Support Enforcement Program at 850-922-9590. If you want a written response to a child support question, send your correspondence to P.O. Box 8030, Tallahassee, Florida 32314-8030.

Visit our Web site at www.myflorida.com/dor for more information on the Department.

We hope you find this information useful. We welcome your comments or suggestions. Please write our Legislative and Cabinet Services Office at P.O. Box 5906, Tallahassee, Florida 32314-5906, or e-mail us at [email protected].

Child Support Enforcement – Ann Coffin, Director General Tax Administration - Jim Evers, DirectorProperty Tax Oversight - James McAdams, Director Administrative Services - Nancy Kelley, Director

Information Services - Tony Powell, Director

www.myflorida.com/dor Tallahassee, Florida 32399-0100

Executive Director Lisa Echeverri

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Table of Contents

CHILD SUPPORT ENFORCEMENT ......................................................................................... 1AnnualFeeforRecipientsWhoHaveNeverReceivedTemporaryCashAssistance............. 1AutomatedAdministrativeEnforcement........................................................................... 1ChildrenandYouthCabinet............................................................................................ 1ElectronicRemittanceWaiverandStatutoryReferenceChange........................................ 2GeneticTestingPaymentReport..................................................................................... 2GuidelineReview........................................................................................................... 2InformationSharing...................................................................................................... 2ReductionofthePassportDenialThreshold.................................................................... 3ServiceofProcessbyPublication................................................................................... 3

COMMUNICATIONS SERVICES TAX ....................................................................................... 3DispositionofPenalties................................................................................................. 3DispositionofTaxProceeds–MisallocationsBetweenJurisdictions.................................. 4DispositionofTaxProceeds–TrustFunds...................................................................... 4ElectronicFiling–ThresholdLowered............................................................................. 5LocalTaxRates–EmergencyOrdinanceorResolution..................................................... 5ResaleCertificatesandRegistrationNumbers–Verification............................................. 5ResaleCertificateNumbersInformation......................................................................... 6SalesforResale–Documentation................................................................................. 6

CORPORATE INCOME TAX (CIT) ........................................................................................... 6ConformtoInternalRevenueCode(I.R.C.)...................................................................... 6ElectronicFiling............................................................................................................. 7

DOCUMENTARY STAMP TAX ................................................................................................ 7ElectronicDocuments................................................................................................... 7ReturnforTransfersofInterestinRealProperty.............................................................. 7TrustFunds–RepealofDistributions............................................................................. 8

ECONOMIC DEVELOPMENT .................................................................................................. 8TampaBayTransportationAuthority................................................................................ 8

ESTATE TAX ......................................................................................................................... 8TaxReturns.................................................................................................................. 8

FUEL AND POLLUTANT TAXES .............................................................................................. 9Refund–FuelUsedforCommercialAviationPurposes..................................................... 9TemporaryFuelLicenses............................................................................................... 9

GROSS RECEIPTS TAX ....................................................................................................... 10TaxDueDate.............................................................................................................. 10

INSURANCE PREMIUM TAX ............................................................................................... 10AutomatedInsurancePremiumTaxRefund.................................................................... 10

LOCAL GOVERNMENT ........................................................................................................ 10BrowardandPalmBeachCounties’Boundaries............................................................ 10

PROPERTY TAX ................................................................................................................. 11AdValoremTaxation................................................................................................... 11AdValoremTax;DisabledVeterans............................................................................. 11AffordableHousing(TaxDeferral)............................................................................... 12AssessmentofCertainHomesteadPropertyDamagedin2004NamedStorms............... 12Blindness;HomesteadExemption;CertificationForm................................................... 12DeterminingWhetherPropertyisEntitledtoCharitable,Religious,Scientific,

orLiteraryExemption............................................................................................. 13EasementsforConservationPurposes,orforPublicServicePurposesor

forDrainageorIngressandEgressSurviveTaxSalesandDeeds.............................. 13ExemptionApplications;ReviewbyPropertyAppraiser................................................... 13ExemptionsFromAdValoremTaxation.......................................................................... 14HomesteadExemption;Increase;Seniors................................................................... 14ReimbursementofAdValoremTaxesonCertainUninhabitableProperty......................... 14SpecialElection.......................................................................................................... 15

SALES AND USE TAX ......................................................................................................... 15DeliveryCharges......................................................................................................... 15LeaseofRealProperty–ExemptionforBookstoreOperations........................................ 15LeaseofRealProperty–ImmunityfromTaxforCertainCapitalImprovements................ 16Penalties.................................................................................................................... 16Refunds–RepealofObsoleteProvisions...................................................................... 17ReimbursementofTaxonCertainMobileHomes........................................................... 17ServiceWarranties...................................................................................................... 18StatisticalSampling.................................................................................................... 18TaxExemption–Books,Clothing,andSchoolSupplies.................................................. 18TaxExemption–ElectricityUsedonaFarm.................................................................. 19TaxExemption-HurricanePreparedness....................................................................... 19TaxExemption-QualifiedAircraft.................................................................................. 20TaxRate–AmusementMachines................................................................................. 20TaxRate–VendingMachines....................................................................................... 20

SEVERANCE TAXES ........................................................................................................... 21ProducerPriceIndex.................................................................................................... 21

TAX ADMINISTRATION ....................................................................................................... 21ClerkoftheCourt–SurchargeforCriminalOffensesandNon-CriminalMovingViolations 21Confidentiality............................................................................................................. 21DisbursementofSurplusFunds................................................................................... 22ElectronicFiling–ThresholdLowered........................................................................... 22FinancialInstitutionsDataMatch................................................................................. 22ProsecutionforWorthlessPayments............................................................................ 23ServiceFees............................................................................................................. 23

UNEMPLOYMENT COMPENSATION ..................................................................................... 24Administration............................................................................................................ 24Administration–ShiftfromGeneralRevenueFundingtoFederalFunding........................ 24CommonPaymaster.................................................................................................... 24Confidentiality............................................................................................................. 25Penalties–DelinquentReports.................................................................................... 25

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The following abbreviations are used in this publication:

Ch.–Chapter

Chs.–Chapters

Clerk–ClerkoftheCourt

CIT–CorporateIncomeTax

CS–CommitteeorCouncilSubstitute

DOR–DepartmentofRevenue

F.S.–FloridaStatutes

HB–HouseBill

I.R.C.–UnitedStatesInternalRevenueCode

L.O.F.–LawsofFlorida

SB–SenateBill

SJR–SenateJointResolution

SUT–SalesandUseTax

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CHILD SUPPORT ENFORCEMENT➣ Annual Fee for Recipients Who Have Never Received Temporary Cash Assistance

Effective Date: July 1, 2007

Statute Reference: Sections 61.1814 and 409.2567, F.S.

Chapter Law: Sections 2 and 6, 2007-85 (HB 7107)

Provides that the Department will pay the federal share of the newly required $25 annual fee. This federally required fee must be imposed on each child support case in which the state has collected at least $500 during the year and the custodial parent has never received temporary cash assistance.

➣ Automated Administrative Enforcement


Statute Reference: Section 409.25641, F.S.

Chapter Law: Section 5, 2007-85 (HB 7107)

Allows the Department to include cases processed under the federally mandated automated administrative enforcement process to be counted as a case and reported on federal reports.

➣ Children and Youth Cabinet


Statute Reference: N/A

Chapter Law: 2007-151 (HB 509) Creates the Children and Youth Cabinet in the Office of the Governor. The Cabinet is created to ensure that the states’s public policy relating to children and youth promotes interdepartmental collaboration and program implementation so services designed for children and youth are planned, managed, and delivered in a holistic and integrated manner to improve the children’s self-sufficiency, safety, economic stability, health, and quality of life.

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➣ Electronic Remittance Waiver and Statutory Reference Change


Statute Reference: Sections 61.1824, 213.755 and 443.163, F.S.


Provides the Department’s Child Support Enforcement Program the authority to waive the requirement for certain employers to remit income deduction order payments electronically when the employer is unable to comply despite good faith efforts or circumstances beyond the employer’s reasonable control. Also amends the statutory language to delete specific criteria and insert cross section references.

➣ Genetic Testing Payment Report



Chapter Law: Section 6, 2007-72 (SB 2800)

Requires the Department to submit a report by October �, 2007 on the possibility of recovering the costs of genetic testing from parents with child support cases handled by the Department, including the results of a survey of other states’ genetic testing cost recovery practices.

➣ Guideline Review




Provides authority for the Department to use monies from the Incentive Trust Fund and the Grants and Donations Trust Fund to fund the child support guideline review. Requires the Office of Economic and Demographic Research to conduct the review in accordance with the federal Family Support Act of �998 to ensure appropriate determination of child support award amounts and submit a final report by June 30, 2008.

➣ Information Sharing


Statute Reference: Section 213.053(16)(a), F.S.


Authorizes the Department’s General Tax Administration Program to share confidential taxpayer information with the Department’s Child Support Enforcement Program for purposes of program administration.

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➣ Reduction of the Passport Denial Threshold




Reduces the passport denial threshold amount from $5,000 to $2,500 in support arrearages owed to reflect current federal law.

➣ Service of Process by Publication


Statute Reference: Sections 49.011, 409.257, and 742.09, F.S.

Chapter Law: Sections 1, 7, and 8. 2007-85 (HB 7107)

Allows service of process by publication on legal fathers in a paternity action where an alleged biological father has been identified and it is necessary to serve the legal father to establish paternity with the alleged biological father. Requires the petitioner to conduct a diligent search that includes all the inquiries required by section 63.088(5), F.S., and to execute and file an affidavit with the court confirming completion of each aspect of the search. Permits the publication of names for the purpose of serving process by publication to determine paternity.

COMMUNICATIONS SERVICES TAX

➣ Disposition of Penalties


Statute Reference: Section 202.28(2)(d), F.S.

Chapter Law: Section 13, Chapter 2007-106 (CS/SB 2482)

Provides that the penalty imposed on a dealer who fails to separately report and identify local communications services tax be distributed in the same manner that tax proceeds received for direct-to-home satellite services are distributed under section 202.�8, F.S.

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➣ Disposition of Tax Proceeds – Misallocations Between Jurisdictions


Statute Reference: Section 202.18(3)(c)3., F.S.

Chapter Law: Section 11, Chapter 2007-106 (CS/SB 2482)

Provides for the governing of distributions that are necessary to correct misallocations between jurisdictions. Requires the Department to provide written notice to all affected jurisdictions when it determines that misallocations of the communications services tax between jurisdictions have occurred. Requires the notice to include the amount of the misallocations, the basis upon which the determination is made, data supporting the determination, the identity of each affected jurisdiction, and information that all affected jurisdictions may enter into a written agreement to establish a method of adjustment. Requires distributions to be made in the month immediately following the Department’s determination that misallocations have occurred when an adjustment affecting a distribution to a jurisdiction is less than 90 percent of the average monthly distribution to that jurisdiction for the six months preceding the Department’s determination, as reported by all communications services dealers.

Authorizes local taxing jurisdictions to enter into a written agreement to establish the method of adjustment when an adjustment affecting a distribution to a jurisdiction equals or exceeds 90 percent of the average monthly distribution to that jurisdiction for the six months preceding the Department’s determination, as reported by all communications services dealers.

Requires that a copy of the written agreement be provided to the Department no later than the first day of the month following 90 days after the date the Department transmits notice of the misallocation. In the absence of an agreement, the Department is required to make an adjustment affecting the distribution to a jurisdiction that is prorated over a time period that equals the time period over which the misallocation occurred.

➣ Disposition of Tax Proceeds – Trust Funds


Statute Reference: Section 202.18(3)(c)2., F.S.

Chapter Law: Section 11, 2007-106 (CS/SB 2482)

Requires the Department to make adjustments to the tax proceeds distributed under section 202.�8, F.S., that are necessary to reflect the proper amounts due to individual jurisdictions or trust funds.

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➣ Electronic Filing – Threshold Lowered

Effective Date: January 1, 2008

Statute Reference: Section 202.30(1), F.S.


Lowers the threshold used to determine who is required to file returns and pay tax electronically from $50,000 to $20,000. This threshold is based on taxes paid in the previous state fiscal year.

➣ Local Tax Rates – Emergency Ordinance or Resolution




Currently, local governments are authorized to make an adjustment to the local communications services tax rate by emergency ordinance or resolution to cover a specified shortfall in revenue received. The revenue shortfall must have occurred in the first year of the communications services tax (October �, 200� – September 30, 2002). When complete data is not available to determine the revenue shortfall in the first year, the local governments are required to use the best data available for the year beginning October �, 200�, through September 30, 2002.

Provisions are added to provide that complete data will be considered available to all local governments after the Department completes audits, including the redistribution of the local portion of the communications services tax, of dealers who account for at least 80 percent of the amount of communications services tax revenues received for the 2005-2006 fiscal year.

Restricts local governments to making changes to the local communications services tax rate by emergency ordinance or resolution only if the Department or a dealer allocates or reallocates revenues away from the local government. Requires that any adjustment must be made no later than six months following the date the Department notifies the local government in writing that complete data is available.

➣ Resale Certificates and Registration Numbers – Verification




Requires the Department to establish a toll-free telephone number for the verification of valid registration numbers and resale certificates for communications services tax purposes. Requires that the system be adequate to guarantee a low busy rate, respond to keypad inquiries, and provide data that is updated daily.

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➣ Resale Certificate Numbers Information




Requires the Department to establish a system for providing dealers with information about the communications services tax certificate numbers of dealers seeking to make purchases for resale. Requires the Department to provide these dealers, free of charge, with the verification of certificate numbers that are canceled or are invalid numbers.

➣ Sales for Resale – Documentation


Statute Reference: Section 202.16(2)(b), F.S.


Requires dealers who make sales for resale to document the exempt nature of the transaction by keeping a copy of the purchaser’s resale certificate issued by the Department. Instead of keeping a copy of the certificate, the dealer may obtain an authorization number provided telephonically, electronically, or by any other means established by Department rule. Provides that when a dealer makes recurring sales to the purchaser in the normal course of business on a continual basis, the dealer may rely on the resale certificate that is valid at the time of receipt from the purchaser.

Provides that a dealer may, through the informal protest process, provide the Department with evidence of the exempt status of a sale. Provides that the following certificates will be accepted by the Department when submitted during the protest period, but may not be accepted in any proceeding under Chapter �20, F.S., or any circuit court action instituted under Chapter 72, F.S.:

• Exemption certificates executed by entities that were exempt at the time of sale.• Resale certificates provided by purchasers who were active dealers at the time of sale.• Verification by the Department of a purchaser’s active dealer status at the time of sale

instead of a resale certificate.

CORPORATE INCOME TAX

➣ Conform to Internal Revenue Code

Effective Date: May 22, 2007 (Retroactive to January 1, 2007)

Statute Reference: Section 220.03(1) and (2), F.S.

Chapter Law: 2007-35 (SB 1014)

Updates the references in the Florida Income Tax Code to conform to the United States Internal Revenue Code in effect beginning January �, 2007.

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➣ Electronic Filing

Effective Date: January 1, 2008 (Applies to returns due on or after that date)


Chapter Law: Sections 31 and 32, 2007-106 (CS/SB 2482)

Gives the Department the authority to require electronic filing of Florida corporate income tax returns for returns due on or after January �, 2008. Authorizes the Department to waive the requirement to file electronically for taxpayers that are unable to comply despite good faith efforts or due to circumstances beyond the taxpayer’s reasonable control. Provides that these provisions apply in addition to the requirements of section 2�3.755, F.S. Imposes a penalty, in addition to other applicable penalties, equal to 5 percent of the tax due with the return for the first 30 days the return is not filed electronically, with an additional 5 percent of the tax due with the return for each additional month or fraction thereof, not to exceed $250 in the aggregate. Authorizes the Department to settle or compromise the penalty according to section 2�3.2�, F.S.

Authorizes the Department to adopt rules regarding an electronic return filing system, including any electronic systems developed by the Internal Revenue Service. Limits the rulemaking authority to the federal corporate income tax filing threshold as it exists on January �, 2007.

DOCUMENTARY STAMP TAX

➣ Electronic Documents

Effective Date: June 27, 2007


Chapter Law: Section 2, 2007-233 (CS/CS/SB 2038)

Provides that the documentary stamp tax is imposed on documents, created electronically or otherwise, that convey an interest in Florida real property.

➣ Return for Transfers of Interest in Real Property



Chapter Law: Section 3, 2007-233 (CS/CS/SB 2038)

Provides that the Clerk of the Court may accept Form DR-2�9 (Return for Transfers of Interest in Real Property) electronically. This form must be filed with the recording of a deed to transfer an interest in real property. Provides that when the Clerk of the Court is required to complete the form, the clerk may file electronically or on paper.

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➣ Trust Funds – Repeal of Distributions


Statute Reference: Section 201.15(1)(d)3., F.S.


Repeals the distribution of the proceeds of documentary stamp tax to the Public Education Capital Outlay and Debt Service Trust Fund. The funds were used for the Classrooms for Kids Program and the High Growth County District Capital Outlay Assistance Grant Program.

ECONOMIC DEVELOPMENT

➣ Tampa Bay Transportation Authority



Chapter Law: Section 1, 2007-254 (CS/CS/CS/SB 506)

Provides that the Tampa Bay Transportation Authority is not required to pay any taxes or assessments on any property acquired or used by it, or on any rates, fees, rentals, receipts, income, or charges it receives.

Provides that bonds issued by the Tampa Bay Regional Transportation Authority, their transfer, and the bond income (including any profits made on the sale of such bonds) are exempt from taxation by the state or any political subdivision, taxing agency, or instrumentality thereof. However, this exemption does not apply to any corporate income tax imposed by Chapter 220, F.S., on the interest, income, or profits on debt obligations owned by corporations.

ESTATE TAX

➣ Tax Returns




Provides that the personal representative of the estate of a decedent who dies after December 3�, 200�, is not required to file a Florida estate tax return if a state death tax credit or a generation-skipping transfer credit is not allowable under the Internal Revenue Code of �986, as amended, on the federal return. Provides that these provisions do not apply to estates of decedents who die after December 3�, 20�0.

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FUEL AND POLLUTANT TAXES

➣ Refund – Fuel Used for Commercial Aviation Purposes


Statute Reference: Section 206.41(4)(c) 1., F.S.

Chapter Law: 2007-31 (SB 90)

Provides for a refund of the local option fuel tax, the State Comprehensive Enhanced Transportation System tax, and the fuel sales tax for any person who uses motor fuel in the operation of aviation ground support vehicles or equipment that are not driven or operated on the public highways of this state.

➣ Temporary Fuel Licenses


Statute Reference: Sections 206.02(8), 206.021(5), and 206.9943(4), F.S.

Chapter Law: Sections 15-17, 2007-106 (CS/SB 2482)

Authorizes the Department to grant a temporary fuel license if the Governor of Florida has declared a state of emergency or the President of the United States has declared a major disaster in Florida or in any other state or territory. The Department is authorized to issue the following temporary fuel licenses:

• A license as an importer or exporter of motor fuel to any person who holds a valid Florida wholesaler license or to an unlicensed dealer.

• A license as a carrier to any person who holds a valid Florida license as a wholesaler, exporter, importer or blender, or to an unlicensed dealer.

• A pollutant tax license to any person who holds a valid Florida temporary importer, temporary wholesaler, or temporary exporter license.

Requires each business to have a physical location in Florida and to hold a valid Florida sales and use tax certificate of registration or to hold a valid fuel license issued by another state. Requires each business to provide certain information to the Department to obtain the temporary license. Provides for the expiration and extension of the temporary licenses.

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GROSS RECEIPTS TAX

➣ Tax Due Date


Statute Reference: Section 203.01(1)(c), F.S.


Moves the due date for reporting and remitting the gross receipts tax from the last day of each month to the 20th day of each month. Directs the Department, to the extent practicable, to assure that the gross receipts taxes remitted in any month are distributed in such a way that the Public Education Capital Outlay and Debt Service Trust Fund is credited with the distribution in the same month.

INSURANCE PREMIUM TAX

➣ Refund of Insurance Premium Tax Overpayment




Authorizes the current Department authority to refund the amount of an overpayment to the taxpayer when it appears upon an examination of an insurance premium tax return that tax has been paid in excess of the amount due. Authorizes the Department to request a statement from the taxpayer affirming that the taxpayer made the overpayment. Prohibits the issuance of a refund of the tax after the statute of limitation period provided in section 2�5.26, F.S., has elapsed. If a refund issued by the Department exceeds the amount that is legally due, the taxpayer will not be subject to penalties and interest if the taxpayer reimburses the Department for any overpayment within 60 days after being notified.

LOCAL GOVERNMENT

➣ Broward and Palm Beach Counties’ Boundaries

Effective Date: Contingent

Statute Reference: Sections 7.06 and 7.50, F.S.

Chapter Law: 2007-222 (CS/HB 1315)

Extends and enlarges the boundaries of Broward County to include certain lands in Palm Beach County.

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PROPERTY TAX➣ Ad Valorem Taxation


Statute Reference: Sections 192.0105, 193.017, 193.052, 193.1142, 193.155, 193.1551, 193.461, 193.803, 194.011, 194.037, 195.022, 195.073, 195.096, 196.002, 196.011, 196.031, 196.111, 196.183, 196.1978, 197.252, 200.001, 200.065, 200.068, 200.185, 200.186, 218.63, 1011.71, F.S.

Chapter Law: 2007-321 (HB 1B)

This legislation limits the millage rates that local governments may levy for the collection of ad valorem taxes and provides a method for local governments to override these limits. If a county or municipality fails to restrict millages as provided for in this bill, the county or municipality will forfeit distributions of state revenues from the local government half-cent sales tax sharing program.

The legislation also implements a number of constitutional amendments contained in SJR �B. If SJR �B is approved by the voters, the bill will also implement:

• A new homestead exemption equal to 75 percent of the first $200,000 in value and �5 percent of the next $300,000, with a minimum of $50,000, except the minimum for low-income seniors is $�00,000.

• Assessment methods for affordable housing real property.• A “grandfather” clause that will allow persons with a homestead as of January �, 2008

to continue to receive the Save Our Homes benefits at their election.• Assessment by general law of rent-restricted affordable housing real property.• A $25,000 property tax exemption for tangible personal property.

➣ Ad Valorem Tax; Disabled Veterans

Effective Date: May 22, 2007

Statute Reference: Sections 196.082, 196.011, F.S.

Chapter Law: 2007-36 (CS/CS/SB 1026)

Provides that each veteran 65 or older who is partially or totally permanently disabled shall receive a discount from tax on homestead property that the veteran owns and resides in if:

• The disability was combat-related.• The veteran was a resident of this state at the time of entering service.• The veteran was honorably discharged.• The veteran provides proof of age.

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The discount is a percentage equal to the percentage of the veteran’s permanent, service-connected disability as determined by the United States Department of Veterans Affairs.

To qualify, an applicant must submit to the property appraiser by March �:

• Proof of residency at the time of entering military service.• An official letter from the United States Department of Veterans Affairs stating the

percentage of the veteran’s service-connected disability and evidence that reasonably identifies the disability as combat-related.

• A copy of the veteran’s honorable discharge.

Provides that if the property appraiser denies the request for a discount, the appraiser must notify the applicant in writing of the reasons for the denial by July � and the veteran may reapply. Provides that all denial notifications must specify the right to appeal to the value adjustment board.

➣ Affordable Housing Tax Deferral


Statute Reference: Sections 197.307, 197.3071, 197.3072, 197.3073, 197.3074, 197.3075, 197.3076, 197.3077, 197.3078, 197.3079, F.S.


Authorizes a county commission or municipality to adopt an ordinance providing for deferral of ad valorem taxes and non-ad valorem assessments for affordable rental housing property under certain conditions.

➣ Assessment of Certain Homestead Property Damaged in 2004 Named Storms




Provides that the repairs due to the 200� hurricane damage must be started by January �, 2008, rather than completed by January �, 2008, and applies retroactively to January �, 2005.

➣ Blindness; Homestead Exemption; Certification Form



Chapter Law: Section 1, 2007- 121 (HB 1051)

Provides that certification of total and permanent disability due to blindness by a physician and an optometrist licensed in this state meets the requirement that two licensed physicians have certified the disability.

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➣ Determining Whether Property is Entitled to Charitable, Religious, Scientific, or Literary Exemption



Chapter Law: Section 5, 2007-106, (CS/SB 2482)

Provides that property owned by an exempt entity is considered to be used for religious purposes if the institution has taken affirmative steps to prepare the property for use as a house of public worship. States that affirmative steps means environmental or land use permitting activities, creation of architectural plans or schematic drawings, land clearing or site preparation, construction or renovation activities or other similar activities that demonstrate commitment of the property to a religious use as a house of public worship. Provides that public worship includes worship services, educational activities and those activities that are incidental to worship services and education, such as parking, recreation, meals, and fellowship.

➣ Easements for Conservation Purposes, or for Public Service Purposes or for Drainage or Ingress and Egress Survive Tax Sales and Deeds




Provides that an easement for conservation purposes survives tax deed sales and deeds.

➣ Exemption Applications; Review by Property Appraiser




Requires the notification of exemption denial to clearly explain the reasons for the denial and the law that is the basis for the denial. The notice must include the specific facts that the property appraiser used to determine that the applicant failed to meet the statutory requirements. If the property appraiser fails to provide such notice, any denial of an exemption is invalid.

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➣ Exemptions From Ad Valorem Taxation




Provides that property owned by a limited liability company, the sole member of which is an exempt entity, shall be treated as if the property were owned by the exempt entity.

➣ Homestead Exemption; Increase; Seniors

Effective Date: April 9, 2007



Provides that for the 2007 tax roll only, the taxing authority that has adopted the additional homestead exemption under Section �96.075, F.S., for the 2007 tax year may increase the amount by delivering to the property appraiser by June �, 2007, a copy of the adopted ordinance authorizing the increase. For every tax year thereafter the copy must be delivered by the current December � date.

Provides for an effective date upon becoming law and to apply retroactively to January �, 2007.

➣ Reimbursement of Ad Valorem Taxes on Certain Uninhabitable Property



Chapter Law: Sections 38 and 40-42, 2007-106 (CS/SB 2482)

Provides for a partial reimbursement of up to $�,500 (from State funds) for 2007 ad valorem taxes on homestead property made uninhabitable by a tornado on February 2, 2007. Defines the term “uninhabitable” as a structure that cannot be used during a period of 60 days or more. Specifies there is no disallowance of reimbursement because the property owner chooses to live in an uninhabitable structure.

Specifies criminal penalties for knowingly and willfully giving false information for purposes of claiming reimbursement.

Provides the actions that are required of the property owner, the property appraiser, the Value Adjustment Board, and the Department for the property to be eligible to receive the reimbursement. Expresses legislative intent that payments for reimbursement for tornado damage be considered disaster-relief assistance within the meaning of section �39 of the Internal Revenue Code.

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The sum of $922,500 is appropriated from the General Fund to the Administrative Trust Fund to pay partial reimbursements of property taxes on such uninhabitable property. Requires the Executive Office of the Governor to certify forward on July �, 2008, all unexpended funds appropriated for reimbursements.

➣ Special Election



Chapter Law: 2007-322 (HB 5B)

Provides for a special election to be held January 29, 2008, for approval or rejection by voters of amendments to the state Constitution regarding the tangible personal property exemption, homestead property assessments, and assessment for rent-restricted affordable housing and commercial and public-access waterfront property.

SALES AND USE TAX

➣ Delivery Charges


Statute Reference: Section 212.08(7)(eee), F.S.


Provides an exemption from tax for certain charges for the delivery, inspection, and placement of furniture or appliances. The exemption also applies when charges cover the removal of the furniture or appliances from packaging or the removal of packaging from the customer’s premises. These charges are exempt when they are separately stated and can be avoided at the option of the purchaser. Provides that when such charges include the modification, assembly, or construction of such furniture or appliances, the charges are taxable.

➣ Lease of Real Property – Exemption for Bookstore Operations

Effective Date: May 22, 2007 (Retroactive to amounts paid on or after January 1, 2006)

Statute Reference: Section 212.08(7)(eee), F.S.

Chapter Law: 2007-53 (CS/HB 721)

Provides an exemption from tax for payments to a postsecondary educational institution by any person who has been granted a right to conduct bookstore operations on real property owned or leased by the postsecondary educational institution. Defines “bookstore operations” to mean “activities consisting predominately of sales, distribution, and provision of textbooks, merchandise, and services traditionally offered in college and university bookstores for the benefit of the

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institution’s students, faculty, and staff.” Provides that the exemption is remedial in nature and applies retroactively to payments made on or after January �, 2006. Specifies that the exemption does not create a right to a refund of tax, penalty, or interest remitted prior to the effective date of the law.

➣ Lease of Real Property – Immunity from Tax for Certain Capital Improvements



Chapter Law: Section 52, 2007-196 (CS/CS/HB 985)

Provides that neither the Florida Turnpike Enterprise, nor any non-government lessee or licensee renting, leasing, or licensing real property from the Florida Turnpike Enterprise, is required to pay the commercial rental tax imposed on any capital improvements constructed, improved, acquired, installed, or used.

➣ Penalties




Imposes a specific penalty of �00 percent of the unreported or uncollected tax or fee on:• Any person who makes a false or fraudulent return with a willful intent to evade payment

of any tax bill or fee imposed under Chapter 2�2, F.S.• Any person who, after the Department delivers a written notice to the person’s last

known address specifically alerting the person of the requirement to register his or her business as a dealer, intentionally fails to register the business.

• Any person who, after the Department delivers a written notice to the person’s last known address specifically alerting the person of the requirement to collect the tax on specific transactions, intentionally fails to collect the tax.

Provides that the Department may deliver the notice by certified mail or another method that is documented as being necessary and reasonable under the circumstances. Provides that the civil and criminal penalties imposed for failure to comply with a written notice do not apply if:

• The person timely files a written challenge to the notice according to procedures established by the Department by rule.

• The notice fails to clearly say that failure to comply with or timely challenge the notice will result in the imposition of the civil and criminal penalties.

Allows for a legal challenge in response to the Department’s notice.

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➣ Refunds – Repeal of Obsolete Provisions


Statute Reference: Sections 212.08(5) and 212.095, F.S.


Repeals obsolete provisions which required certain organizations to obtain a refund permit to be entitled to an exemption. Makes technical changes to remove provisions which stated that section 2�2.095, F.S., did not apply.

➣ Reimbursement of Tax on Certain Mobile Homes




Provides for reimbursement of up to $�,500 per unit for sales tax on a replacement mobile home when a damaged mobile home (major damage) was the permanent residence of a permanent resident of Florida. Major damage to the mobile home must have been caused by a tornado on December 25, 2006 or February 2, 2007.

Defines the terms “major damage,” “mobile home,” “permanent residence,” and “permanent resident.” Specifies criminal penalties for knowingly and willfully giving false information for purposes of claiming reimbursement.

Provides the actions that are required of the owner of the mobile home, the property appraiser, the Value Adjustment Board, and the Department for the owner of the mobile home to be eligible to receive the reimbursement. Expresses legislative intent that payments for reimbursement for tornado damage be considered disaster-relief assistance within the meaning of section �39 of the Internal Revenue Code.

The sum of $309,000 is appropriated from the General Fund to the Administrative Trust Fund to pay sales tax reimbursements. Requires the Executive Office of the Governor to certify forward on July �, 2008, all unexpended funds appropriated for reimbursements.

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➣ Service Warranties




Clarifies that the term “service warranty” does not include contracts or agreements to repair, maintain, or replace tangible personal property if the parts and labor to repair the property qualify for an exemption under Chapter 2�2, F.S.

➣ Statistical Sampling

Effective Date: July 1, 2007 (Applies to all pending audits or other actions or inquiries, excluding those currently under protest or in litigation)



Authorizes the Department to review fixed assets by statistically sampling the records, providing that the dealer agrees in writing. The records must be adequate but voluminous. The statistical sample may be in connection with an audit or application for refund, whether filed independently or in connection with an audit. The agreement must state the methodology to be used in the statistical sampling process. The audit findings must be projected over the period represented by the sample to determine the proportion of taxable purchases to total purchases. Once an agreement has been signed, it is final with respect to the method of sampling fixed assets. After the agreement is reached, the Department cannot conduct a detailed audit of fixed assets and the taxpayer cannot request a detailed audit. Prohibits these provisions from creating any right to refund for taxes previously assessed and paid in regard to audits or other actions or inquiries that are completed.

➣ Tax Exemption – Books, Clothing, and School Supplies



Chapter Law: 2007-144 (CS/SB 1456)

Exempts, during the period from �2:0� a.m., August �, 2007, through midnight, August �3, 2007:

• Sales of books, clothing, wallets, or bags having a selling price of $50 or less per item. • Sales of school supplies having a selling price of $�0 per item or less.

“Book” is defined to mean a set of printed sheets bound together and published in a volume. Excludes newspapers, magazines, or other periodicals.

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“Clothing” is defined as any article of wearing apparel, including all footwear except skis, swim fins, roller blades, and skates, intended to be worn on or about the human body. Excludes watches, watchbands, jewelry, umbrellas, and handkerchiefs.

“School supplies” is defined to mean pens, pencils, erasers, crayons, notebooks, notebook filler paper, legal pads, composition books, poster paper, scissors, cellophane tape, glue or paste, rulers, computer disks, protractors, compasses, and calculators.

These exemptions do not apply to sales made within a theme park or entertainment complex, within a public lodging establishment, or within an airport.

➣ Tax Exemption – Electricity Used on a Farm


Statute Reference: Section 212.08(5)(e)2., F.S.

Chapter Law: 2007-56 (HB 1199)

Expands the exemption from tax for electricity to include electricity used indirectly on a farm or for processing farm products.

➣ Tax Exemption - Hurricane Preparedness

Effective Date: April 30, 2007


Chapter Law: 2007-25 (HB 211)

Provides an exemption from sales tax during the period from June �, 2007, through June �2, 2007, for the following items:

• Any reusable ice selling for $�0 or less.• Any portable, self-powered light source having a selling price of $20 or less.• Any gas or diesel fuel tank selling for $25 or less.• Any package of AAA-cell, AA-cell, C-cell, D-cell, 6-volt, or 9-volt batteries, excluding

automobile or boat batteries, selling for $30 or less.• Any non-electrical food-storage cooler selling for $30 or less.• Any cell phone charger selling for $�0 or less.• Any tarpaulin or flexible waterproof sheeting selling for $50 or less.• Any item normally sold as, or generally advertised as, a ground anchor system or tie-

down kit selling for $50 or less.• Any cell phone battery selling for $60 or less.• Any portable self-powered radio, two-way radio, or weather-band radio selling for $75 or

less.• Any carbon monoxide detector selling for $75 or less.• Any single product consisting of two or more of the items contained in this list selling for

$75 or less.

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• Any storm shutter device selling for $200 or less.• Any portable generator selling for $�000 or less to be used to provide light,

communications, or food preservation in the event of a power outage.

➣ Tax Exemption - Qualified Aircraft




Revises the definition of tax-exempt “qualified aircraft” to aircraft used by an on-demand air carrier business that owns or leases and operates a fleet of at least 25 such aircraft in Florida.

➣ Tax Rate – Amusement Machines


Statute Reference: Section 212.05(1)(h)1., F.S.


Provides the divisor (�.060) for computing the tax, plus discretionary sales surtax, due on charges for the use of amusement machines in counties that impose a 2 percent discretionary sales surtax. Requires the Department to provide the applicable divisor rates for amusement machines located in counties that impose a discretionary sales surtax at a rate other than the rates specified in the statutes. Specifies how the divisors are to be computed by the Department and that the divisors are to be made available electronically or otherwise.

➣ Tax Rate – Vending Machines




Provides the divisors (�.0808 for beverage and food items and �.0833 for other items of tangible personal property) for computing the tax, plus discretionary sales surtax, due on sales from vending machines in counties that impose a 2 percent discretionary sales surtax. Requires the Department to provide the applicable divisor rates for vending machines located in counties that impose a discretionary sales surtax at a rate other than the rates specified in the statutes. Specifies how the divisors are to be computed by the Department and that the divisors are to be made available electronically or otherwise.

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SEVERANCE TAXES

➣ Producer Price Index




Provides that the Department will use the producer price index for phosphate rock to compute the base rate adjustment for the tax on phosphate rock.

TAX ADMINISTRATION

➣ Clerk of the Court – Surcharge for Criminal Offenses and Non-Criminal Moving Violations


Statute Reference: Sections 318.18(17) and 318.21(17), F.S.

Chapter Law: Sections 21 and 22, 2007-196 (CS/CS/HB 985)

Requires that the revenues received from the $3 surcharge for all criminal offenses listed in section 3�8.�7, F.S., and for all non-criminal moving traffic violations under Chapter 3�6, F.S., be remitted to the Department of Revenue and deposited quarterly into the State Agency Law Enforcement Radio System Trust Fund of the Department of Management Services. Provides for an expiration date of July �, 20�2.

➣ Confidentiality




Authorizes the Department’s General Tax Administration Program to share confidential taxpayer information with the Department’s Child Support Enforcement Program for purposes of program administration.

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➣ Disbursement of Surplus Funds




Includes a tax warrant as a subordinate lien holder for purposes of disbursement of surplus funds after a judicial sale of property.

➣ Electronic Filing – Threshold Lowered




Lowers from $30,000 to $20,000 the threshold used to determine who is required to file returns and pay tax electronically. This threshold is based on taxes paid in the previous state fiscal year.

➣ Financial Institutions Data Match




Authorizes the Department, in coordination with financial institutions doing business in Florida, to design and implement a pilot program for identifying account holders against whose property the Department has issued a warrant or filed a judgment lien certificate. Under the program, the Department is authorized to enter into agreements with financial institutions, as defined in section �09.25657, F.S., to develop and operate a data match system that uses automated data exchanges to the maximum extent possible.

Provides that a financial institution is not liable and is not required to notify its customers about disclosure of any information for purposes of the program or for any other action taken in good faith to participate in this program.

Requires the Department to administer the program according to section �09.25657, F.S., to reduce the burden on financial institutions and to pay a reasonable fee, which does not exceed the actual costs incurred, to participating financial institutions. Authorizes the Department to request information and assistance from financial institutions to design and implement the program.

Requires that all financial records obtained under this program may be disclosed only for the purpose of determining the feasibility of the program. Prohibits the Department from engaging in collection activities based upon the information received under this program.

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Requires the Department to report its findings and recommendations on the possibility of permanently establishing the data match program to the Committee on Finance and Tax of the Senate and the Government Efficiency and Accountability Council of the House of Representatives, by January �, 2008.

➣ Prosecution for Worthless Payments




Provides that it is prima facie evidence of intent to defraud or knowledge of insufficient funds in or credit with a depository when a check, draft, order, or electronic funds transfer is refused because of lack of funds or credit. This provision does not apply when, within �5 days after written notice of non-payment is sent, the amount due, the required service charge, and the bank fees incurred by the holder is paid. Provides that in the event of legal action for recovery, the maker, drawer, sender, instructor, orderer, or initiator may also be liable for court costs and reasonable attorney’s fees. Provides the requirements for and the form of notice required to be issued to the maker, drawer, sender, instructor, orderer, or initiator of the worthless payment.

Provides that when a check, draft, order, or electronic funds transfer is drawn on a bank in which the maker, drawer, sender, instructor, orderer, or initiator has no account or a closed account, it will be presumed payment was issued with intent to defraud, and the notice requirement is waived.

Provides for the establishment of prima facie evidence of the identity of the person issuing the worthless payment.

Provides that these provisions do not apply if it is determined that the dishonored check, draft, order, or electronic funds transfer was refused due to an unintentional error committed by the drawee, maker, drawer, sender, instructor, orderer, initiator, or holder, and the unintentional error is substantiated.

➣ Service Fees




Authorizes the Department to settle or compromise a taxpayer’s liability for the service fee required under section 2�5.3�(2), F.S., for dishonored checks, drafts, or orders due to an unintentional error committed by the issuing financial institution, the taxpayer, or the Department when the unintentional error is substantiated by the Department.

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UNEMPLOYMENT COMPENSATION

➣ Administration




Adds sections 2�3.0�5(�)-(3), (5)-(7), (9)-(�9), (2�), 2�3.0535, 2�3.2�(�), 2�3.2�, 2�3.25, 2�3.3�(�), (3), and (�), F.S., to the statutory sections that apply to the collection of unemployment contributions and reimbursements by the Department.

➣ Administration – Shift from General Revenue Funding to Federal Funding




Repeals section ��3.�3�6(2)(c), F.S. Allows the Department to bill the Agency for Workforce Innovation for the full reimbursement of indirect costs which can be recovered from federal funds.

➣ Common Paymaster




Authorizes the Agency for Workforce Innovation and the Department to adopt rules necessary to administer provisions regarding payments through a common paymaster.

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➣ Confidentiality



Chapter Law: 2007-202 (HB 7169)

Provides that the payroll information and client lists of employee leasing companies received by the Department are confidential. However, the Legislature has recognized a need for the Department to provide that information to the Florida Workers’ Compensation Joint Underwriting Association, Inc.

➣ Penalties – Delinquent Reports




Authorizes the Agency for Workforce Innovation or the Department to assess penalties only through the date of the issuance of the final assessment notice; however, additional penalties accrue if the delinquent report is subsequently filed. Provides that the provisions of section 2�3.2�(�), F.S., apply to the penalty or interest imposed under section ��3.��, F.S.

EX 0000��R. 09/07

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