October 16, 2019
Print This PagePrint This Page

  *
Session:
Bill #:
Session:
Chamber: View Search Tips
Search Term:
Year: View Search Tips
Search Term:
       Florida Senate - 2010                                    SB 1406
       
       
       
       By Senator Lawson
       
       
       
       
       6-01386-10                                            20101406__
    1                        A bill to be entitled                      
    2         An act relating to taxation; creating ss. 199.0125,
    3         199.0235, 199.0325, 199.0335, 199.0425, 199.0525,
    4         199.0575, 199.0625, 199.1035, 199.10555, 199.1065,
    5         199.1755, and 199.1855, F.S.; recreating the annual
    6         intangible personal property tax; providing a short
    7         title; providing definitions; providing for imposition
    8         of the annual tax; specifying a separate tax rate for
    9         securities in a Florida’s Future Investment Fund;
   10         specifying nonapplication; specifying due date of
   11         annual tax; providing for a discount for early
   12         payments; providing requirements and procedures for
   13         annual tax returns and payment of the annual tax;
   14         providing for corporate election to pay stockholders’
   15         annual tax; providing requirements for annual tax
   16         information reports; providing requirements for the
   17         basis of assessments and valuation of intangible
   18         personal property; providing for a contaminated site
   19         rehabilitation tax credit; providing requirements,
   20         procedures, and limitations; providing for a credit
   21         for taxes imposed by other states; specifying
   22         requirements for taxable situs of intangible personal
   23         property; exempting certain property from the annual
   24         and nonrecurring intangible taxes; amending ss. 28.35,
   25         192.0105, 192.032, 192.042, 192.091, 193.114, 196.015,
   26         196.199, 199.133, 199.183, 199.218, 199.232, 199.282,
   27         199.292, 199.303, 212.02, 213.053, 213.054, 213.27,
   28         650.05, and 733.702, F.S., to conform provisions to
   29         the creation of the annual intangible personal
   30         property tax; providing for application of certain
   31         collection, administration, and enforcement provisions
   32         to taxation of certain leaseholds; authorizing the
   33         Department of Revenue to adopt emergency implementing
   34         rules for a certain time; providing legislative
   35         findings and intent; amending s. 220.03, F.S.;
   36         revising a definition; defining the terms “tax haven”
   37         and “water’s edge group”; amending s. 220.13, F.S.;
   38         conforming a cross-reference; redefining the term
   39         “adjusted federal income” to limit the subtraction of
   40         certain deductions and certain carryovers; requiring
   41         the subtraction of certain dividends from taxable
   42         income; creating s. 220.136, F.S.; providing rules and
   43         criteria to determine if a corporation is a member of
   44         a water’s edge group; creating s. 220.1363, F.S.;
   45         providing a reporting method for a water’s edge group;
   46         providing for the apportionment of income to the
   47         state; requiring a member of a water’s edge group
   48         having nexus with this state to file a single return
   49         for the water’s edge group; providing for the
   50         determination of income for a member of a water’s edge
   51         group having a different tax year than the water’s
   52         edge group; requiring a water’s edge group return to
   53         include a computational schedule; requiring a water’s
   54         edge group to file a domestic disclosure spreadsheet
   55         along with its return; authorizing the Department of
   56         Revenue to adopt rules; amending s. 220.14, F.S.;
   57         providing for the proration of an exemption during a
   58         leap year; limiting a water’s edge group to a single
   59         claim of a specified exemption; amending s. 220.15,
   60         F.S.; deleting provisions relating to affiliated
   61         groups with respect to certain sales of a financial
   62         institution; amending s. 220.183, F.S.; deleting
   63         provisions relating to affiliated groups with respect
   64         to community contribution tax credits; amending s.
   65         220.1845, F.S.; deleting provisions relating to
   66         affiliated groups with respect to the contaminated
   67         site rehabilitation tax credit; amending s. 220.187,
   68         F.S.; deleting provisions relating to affiliated
   69         groups with respect to the tax credit for
   70         contributions to nonprofit scholarship funding
   71         organizations; amending s. 220.191, F.S.; deleting
   72         provisions relating to affiliated groups with respect
   73         to the capital investment tax credit; amending s.
   74         220.192, F.S.; deleting provisions relating to
   75         affiliated groups with respect to the renewable energy
   76         technologies investment tax credit; amending s.
   77         220.193, F.S.; deleting provisions relating to
   78         affiliated groups with respect to the Florida
   79         renewable energy production tax credit; amending s.
   80         220.51, F.S.; deleting provisions relating to the
   81         rulemaking authority of the Department of Revenue with
   82         respect to consolidated reporting for affiliated
   83         groups; amending ss. 220.1845, 220.64, and 376.30781,
   84         F.S.; conforming cross-references and conforming
   85         provisions to the creation of the annual intangible
   86         personal property tax; providing transitional rules
   87         for corporate income tax returns filed by water’s edge
   88         groups and affiliated groups of corporations;
   89         specifying the allocation of funds that are recaptured
   90         under the act; repealing s. 220.131, F.S., relating to
   91         adjusted federal income for affiliated groups;
   92         requiring deposit of certain funds into the
   93         Educational Enhancement Trust Fund; specifying certain
   94         allocations of appropriations from the fund; providing
   95         legislative intent relating to uses of funds;
   96         providing authority for certain entities as to how
   97         best to use certain funds; providing effective dates.
   98  
   99  Be It Enacted by the Legislature of the State of Florida:
  100  
  101         Section 1. Effective January 1, 2011, sections 199.0125,
  102  199.0235, 199.0325, 199.0335, 199.0425, 199.0525, 199.0575,
  103  199.0625, 199.1035, 199.10555, 199.1065, 199.1755, and 199.1855,
  104  Florida Statutes, are created to read:
  105         199.0125 Short title.—Sections 199.0125-199.1855 may be
  106  cited as the “Millionaire’s Tax Act.”
  107         199.0235 Definitions.—As used in this chapter:
  108         (1) “Abroad” means in one or more foreign nations; in the
  109  colonies, dependencies, possessions, or territories of a foreign
  110  nation or of the United States; or in the Commonwealth of Puerto
  111  Rico.
  112         (2)(a) “Affiliated group” means one or more chains of
  113  corporations or limited liability companies connected through
  114  stock ownership or membership interest in a limited liability
  115  company with a common parent corporation or limited liability
  116  company, for which:
  117         1. Stock or membership interest in a limited liability
  118  company possessing at least 80 percent of the voting power of
  119  all classes of stock or membership interest in a limited
  120  liability company and at least 80 percent of each class of the
  121  nonvoting stock or membership interest in a limited liability
  122  company of each corporation or limited liability company, except
  123  for the common parent corporation or limited liability company,
  124  is owned directly by one or more of the other corporations or
  125  limited liability companies.
  126         2. The common parent corporation or limited liability
  127  company directly owns stock or membership interest in a limited
  128  liability company possessing at least 80 percent of the voting
  129  power of all classes of stock or membership interest in a
  130  limited liability company and at least 80 percent of each class
  131  of the nonvoting stock or membership interest in a limited
  132  liability company of at least one of the other corporations or
  133  limited liability companies.
  134         (b) As used in this subsection, the terms “nonvoting stock”
  135  and “membership interest in a limited liability company” do not
  136  include nonvoting stock or membership interest in a limited
  137  liability company which is limited and preferred as to
  138  dividends. For purposes of this chapter, a common parent may be
  139  a corporation or a limited liability company.
  140         (3) “Banking organization” means:
  141         (a) A bank organized and existing under the laws of this
  142  state;
  143         (b) A national bank organized and existing pursuant to the
  144  provisions of the National Bank Act, 12 U.S.C. ss. 21 et seq.,
  145  and maintaining its principal office in this state;
  146         (c) An Edge Act corporation organized pursuant to the
  147  provisions of s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss.
  148  611 et seq., and maintaining an office in this state;
  149         (d) An international bank agency licensed pursuant to the
  150  laws of this state;
  151         (e) A federal agency licensed pursuant to ss. 4 and 5 of
  152  the International Banking Act of 1978 to maintain an office in
  153  this state;
  154         (f) A savings association organized and existing under the
  155  laws of this state;
  156         (g) A federal association organized and existing pursuant
  157  to the provisions of the Home Owners’ Loan Act of 1933, 12
  158  U.S.C. ss. 1461 et seq., and maintaining its principal office in
  159  this state; or
  160         (h) An export finance corporation organized in this state
  161  and existing pursuant to the provisions of part V of chapter
  162  288.
  163         (4) A resident has a “beneficial interest” in a trust if
  164  the resident has a vested interest, even if subject to
  165  divestment, which includes at least a current right to income
  166  and either a power to revoke the trust or a general power of
  167  appointment, as defined in 26 U.S.C. s. 2041(b)(1).
  168         (5) “Department” means the Department of Revenue.
  169         (6) “Intangible personal property” means all personal
  170  property that is not in itself intrinsically valuable, but that
  171  derives its chief value from that which it represents,
  172  including, but not limited to:
  173         (a) All stocks or shares of incorporated or unincorporated
  174  companies, business trusts, and mutual funds.
  175         (b) All notes, bonds, and other obligations for the payment
  176  of money.
  177         (c) All condominium and cooperative apartment leases of
  178  recreation facilities, land leases, and leases of other commonly
  179  used facilities.
  180         (d) Except for any leasehold or other possessory interest
  181  described in s. 4(a), Art. VII of the State Constitution or s.
  182  196.199(7), all leasehold or other possessory interests in real
  183  property owned by the United States, the state, any political
  184  subdivision of the state, any municipality of the state, or any
  185  agency, authority, or other public body corporate of the state,
  186  which are undeveloped or predominantly used for residential or
  187  commercial purposes and upon which rental payments are due.
  188         (7) “International banking facility” means a set of asset
  189  and liability accounts segregated on the books and records of a
  190  banking organization that includes only international banking
  191  facility deposits, borrowings, and extensions of credit as those
  192  terms are defined pursuant to s. 655.071(2).
  193         (8) “International banking transaction” means:
  194         (a) The financing of the exportation from, or the
  195  importation into, the United States or between jurisdictions
  196  abroad of tangible personal property or services;
  197         (b) The financing of the production, preparation, storage,
  198  or transportation of tangible personal property or services
  199  which are identifiable as being directly and solely for export
  200  from, or import into, the United States or between jurisdictions
  201  abroad;
  202         (c) The financing of contracts, projects, or activities to
  203  be performed substantially abroad, except those transactions
  204  secured by a mortgage, deed of trust, or other lien upon real
  205  property located in this state;
  206         (d) The receipt of deposits or borrowings or the extensions
  207  of credit by an international banking facility, except the loan
  208  or deposit of funds secured by mortgage, deed of trust, or other
  209  lien upon real property located in this state; or
  210         (e) Entering into foreign exchange trading or hedging
  211  transactions in connection with the activities described in
  212  paragraph (d).
  213         (9) “Ministerial function” means an act the performance of
  214  which does not involve the use of discretion or judgment.
  215         (10) “Money” includes, without limitation, United States
  216  legal tender, certificates of deposit, cashier’s and certified
  217  checks, bills of exchange, drafts, the cash equivalent of
  218  annuities and life insurance policies, and similar instruments,
  219  which are held by a taxpayer, or deposited with or held by a
  220  banking organization or any other person.
  221         (11) “Person” means any individual, firm, partnership,
  222  joint adventure, syndicate, or other group or combination acting
  223  as a unit, association, corporation, estate, trust, business
  224  trust, trustee, personal representative, receiver, or other
  225  fiduciary and includes the plural as well as the singular.
  226         (12) “Processing activity” means an activity undertaken to
  227  administer or service intangible personal property in accordance
  228  with such terms, guidelines, criteria, or directions as are
  229  provided solely by the owner of the property. Methods, systems,
  230  or techniques chosen by the processor to implement such terms,
  231  guidelines, criteria, or directions are not considered the
  232  exercise of management or control.
  233         (13) “Taxpayer” means any person liable for taxes imposed
  234  under this chapter and any heir, successor, assignee, and
  235  transferee of any such person.
  236         199.0325 Levy of annual tax.—An annual tax of 2 mills is
  237  imposed on each dollar of the just valuation of all intangible
  238  personal property that has a taxable situs in this state, except
  239  for notes and other obligations for the payment of money, other
  240  than bonds, that are secured by a mortgage, deed of trust, or
  241  other lien upon real property situated in this state. This tax
  242  shall be assessed and collected as provided in this chapter.
  243         199.0335 Securities in a Florida’s Future Investment Fund;
  244  tax rate.—
  245         (1) Notwithstanding the provisions of this chapter, the tax
  246  imposed under s. 199.0325 on securities in a Florida’s Future
  247  Investment Fund applies at a rate of 0.85 mill when the average
  248  daily balance in such funds exceeds $2 billion and at a rate of
  249  0.70 mill when the average daily balance in such funds exceeds
  250  $5 billion.
  251         (2) This section shall not apply in any year in which the
  252  revenues of the foundation in the previous calendar year are
  253  less than the tax savings allowed by this section. The term “tax
  254  savings” means the difference between the tax that would be
  255  imposed pursuant to s. 199.0325 and the tax rate specified in
  256  subsection (1).
  257         199.0425 Due date of annual tax.—
  258         (1) The annual tax on intangible personal property shall be
  259  due and payable on June 30 of each year. Payment of the tax
  260  shall be made to the department upon filing of the return
  261  required by s. 199.0525. A return mailed to the department shall
  262  be considered timely filed if the return bears a postmark no
  263  later than the due date.
  264         (2) A discount for early payment of the annual tax shall be
  265  allowed as follows: for payment on or before the last day of
  266  February, 4 percent; for payment on or before March 31, 3
  267  percent; for payment on or before April 30, 2 percent; and for
  268  payment after April 30 but on or before May 31, 1 percent.
  269         199.0525 Annual tax returns; payment of annual tax.—
  270         (1) An annual intangible tax return must be filed with the
  271  department by each corporation authorized to do business in this
  272  state or doing business in this state and by each person,
  273  regardless of domicile, who on January 1 owns, controls, or
  274  manages intangible personal property which has a taxable situs
  275  in this state. For purposes of this chapter, the terms “control”
  276  or “manage” do not include any ministerial function or any
  277  processing activity. The return shall be due on June 30 of each
  278  year. It shall list separately the character, description, and
  279  just valuation of all such property.
  280         (2) A person, corporation, agent, or fiduciary is not
  281  required to pay the annual tax in any year when the aggregate
  282  annual tax upon the intangible personal property, after
  283  exemptions but before application of any discount for early
  284  filing, would be less than $60. In such case, an annual return
  285  is not required. Agents and fiduciaries shall report for each
  286  person for whom they hold intangible personal property if the
  287  aggregate annual tax on such person is $60 or more.
  288         (3) A corporation having no intangible tax liability, and
  289  required to file an annual report pursuant to s. 607.1622, is
  290  not required to file the annual intangible tax return required
  291  by this section.
  292         (4) A husband and wife may file a joint return with regard
  293  to all intangible personal property held jointly or individually
  294  by them. They shall then be jointly liable for the payment of
  295  the annual tax.
  296         (5) A trustee of a trust is not responsible for filing
  297  returns for the trust’s intangible personal property and is not
  298  required to pay any annual tax on such property, although the
  299  department may require the trustee to file an informational
  300  return.
  301         (6) Each resident of this state with a beneficial interest
  302  as defined in s. 199.0235(4) in a trust is responsible for
  303  filing an annual return for the resident’s equitable share of
  304  the trust’s intangible personal property and paying the annual
  305  tax on such property. The trustee of a trust may file an annual
  306  return and pay the tax on the equitable shares of all residents
  307  of this state having beneficial interests, in which case the
  308  residents need not file an annual return for such property or
  309  pay such tax.
  310         (7) The personal representative or curator of an estate in
  311  this state is primarily responsible for filing an annual return
  312  for the estate’s intangible personal property and paying the
  313  annual tax on it. The heirs or devisees, however, may
  314  individually file an annual return for their equitable shares of
  315  the estate’s intangible personal property and pay the tax on
  316  such shares, in which case the personal representative or
  317  curator need not file an annual return on such property or pay
  318  such tax, although the department may require the personal
  319  representative or curator to file an informational return.
  320         (8) The guardian of the property of an incompetent resident
  321  of this state shall file an annual return for the incompetent’s
  322  intangible personal property and pay the annual tax on such
  323  property. The custodian of a minor resident of this state under
  324  a gifts-to-minors or similar act shall file an annual return for
  325  the minor’s intangible personal property which is subject to the
  326  custodianship and pay the annual tax on such property.
  327         (9) If an agent other than a trustee has control or
  328  management of intangible personal property, the principal is
  329  primarily responsible for filing an annual return for such
  330  property and paying the annual tax on such property, but the
  331  agent shall file an annual return for property on behalf of the
  332  principal and pay the annual tax on such property if the
  333  principal fails to do so. The department may in any case require
  334  the agent to file an informational return.
  335         (10) An affiliated group may elect to file a consolidated
  336  return for any year. The election shall be made by timely filing
  337  a consolidated return. Once made, an election may not be revoked
  338  and is binding for the tax year. The mere filing of a
  339  consolidated return does not in itself provide a business situs
  340  in this state for intangible personal property held by a
  341  corporation. The fact that members of an affiliated group own
  342  stock in corporations or membership interest in limited
  343  liability companies that do not qualify under the stock
  344  ownership or membership interest in a limited liability company
  345  requirements as members of an affiliated group shall not
  346  preclude the filing of a consolidated return on behalf of the
  347  qualified members. If a consolidated return is filed,
  348  intercompany accounts, including the capital stock or membership
  349  interest in a limited liability company of an includable
  350  corporation or limited liability company, other than the parent,
  351  owned by another includable corporation or limited liability
  352  company, are not subject to the annual tax. However, capital
  353  stock, or membership interest in a limited liability company,
  354  and other intercompany accounts of a nonqualified member of the
  355  affiliated group are subject to the annual tax. Each
  356  consolidated return must be accompanied by documentation
  357  identifying all intercompany accounts and containing such other
  358  information as the department may require. Failure to timely
  359  file a consolidated return shall not prejudice the taxpayer’s
  360  right to file a consolidated return, provided the failure to
  361  file a consolidated return is limited to 1 year and the
  362  taxpayer’s intent to file a consolidated return is evidenced by
  363  the taxpayer having filed a consolidated return for the 3 years
  364  prior to the year the return was not timely filed.
  365         (11) An annual return for securities held in margin
  366  accounts by a security broker not acting as a fiduciary shall be
  367  filed, and the annual tax on such securities shall be paid, by
  368  the customer owning them. The security broker is not required to
  369  file an annual return or pay the tax on such securities.
  370         (12) Except as otherwise provided in this section, the
  371  owner of intangible personal property is liable for the payment
  372  of annual tax on such property, and any other person required to
  373  file an annual return for such property is liable for the tax if
  374  the owner fails to pay the tax.
  375         (13) If a bank or savings association, as defined in s.
  376  220.62, acts as a fiduciary or agent of a trust other than as a
  377  trustee, the bank or savings association is not responsible for
  378  filing an annual return for the trust’s intangible personal
  379  property and is not required to pay any annual tax on such
  380  property, and the management or control of the bank or savings
  381  association shall not be used as the basis for imposing any
  382  annual tax on any person or any assets of the trust. If a person
  383  acts as a fiduciary or agent for purposes of managing intangible
  384  assets owned by another person, such intangible assets shall not
  385  have a taxable situs in this state pursuant to s. 199.1755
  386  solely by virtue of the management or control of such assets by
  387  the person who is not the owner of the assets.
  388         (14)(a) Except as provided in paragraph (b), each bank and
  389  financial organization filing annual intangible tax returns for
  390  its customers shall file return information for taxes due
  391  January 1, 2011, and thereafter using machine-sensible media.
  392  The information required by this subsection must be reported by
  393  banks or financial organizations on machine-sensible media,
  394  using specifications and instructions of the department. A bank
  395  or financial organization that demonstrates to the satisfaction
  396  of the department that a hardship exists is not required to file
  397  intangible tax returns for its customers using machine-sensible
  398  media. The department shall adopt rules necessary to administer
  399  this paragraph.
  400         (b) A taxpayer may choose to file an annual intangible
  401  personal property tax return in a form initiated through an
  402  electronic data interchange using an advanced encrypted
  403  transmission by means of the Internet or other suitable
  404  transmission. The department shall prescribe by rule the format
  405  and instructions necessary for such filing to ensure a full
  406  collection of taxes due. The acceptable method of transfer, the
  407  method, form, and content of the electronic data interchange,
  408  and the means, if any, by which the taxpayer will be provided
  409  with an acknowledgment shall be prescribed by the department.
  410         199.0575 Corporate election to pay stockholders’ annual
  411  tax.—
  412         (1) Each corporation incorporated or qualified to do
  413  business in this state may elect each tax year to pay the annual
  414  tax on any class of its stock, as agent for its stockholders in
  415  this state holding such stock.
  416         (2) To make the election, the corporation shall:
  417         (a) File written notice with the department on or before
  418  June 30 of the year for which the election is made.
  419         (b) File an annual return with respect to such stock and
  420  its own intangible personal property.
  421         (c) Furnish its stockholders in this state with written
  422  notice, on or before April 1 of the year for which the election
  423  is made, that the election is being made, including a
  424  description of the class or classes of stock which are affected.
  425  A corporation making the election under this subsection shall
  426  certify on its notice to the department that its stockholders
  427  were timely notified of the election.
  428         (3) An election is not valid unless timely notice of the
  429  election is given to the department under paragraph (2)(a). Once
  430  made, an election may not be amended or revoked and is binding
  431  for the tax year.
  432         199.0625 Annual tax information reports.—
  433         (1)(a) On or before June 30 of each year, each security
  434  dealer and investment adviser registered under the laws of this
  435  state shall file with the department a position statement as of
  436  December 31 of the preceding year for each customer whose
  437  mailing address is in this state or a statement that the
  438  security dealer or investment adviser does not hold securities
  439  on account for any customer whose mailing address is in this
  440  state. The position statement shall include the customer’s name,
  441  address, social security number, or federal identification
  442  number; the number of units, value, and description, including
  443  the Committee on Uniform Security Identification Procedures
  444  (CUSIP) number, if any, of all securities held by the dealer or
  445  adviser for the customer; and such other information as the
  446  department may reasonably require. The dealer or adviser shall
  447  report the information required by this paragraph on magnetic
  448  media, using specifications and instructions of the department,
  449  unless the dealer or adviser demonstrates that an undue hardship
  450  exists.
  451         (b)1. The department may require security dealers and
  452  investment advisers registered in this state to transmit once
  453  every 2 years a copy of the department’s intangible tax brochure
  454  to each customer of the dealer or advisor whose mailing address
  455  is in this state.
  456         2. The department may require property appraisers to send,
  457  at such times and in such manner as the department and the
  458  property appraisers jointly determine, a copy of the
  459  department’s intangible tax brochure to each owner of property
  460  in this state.
  461         (2) Each fiduciary shall serve the department with a copy
  462  of each inventory required to be prepared or filed in the
  463  circuit court under general law or rules adopted by the Supreme
  464  Court relating to decedent’s estates, trusts, or guardianships.
  465  Any such inventory required to be filed in the circuit court may
  466  not be approved by the court until such copy as required by this
  467  subsection has been filed with the department. When an inventory
  468  is not required to be filed in the circuit court, the personal
  469  representative of a decedent’s estate shall serve the department
  470  with a copy of one inventory as provided in s. 733.604, and each
  471  other fiduciary shall file a return relating to such information
  472  as shall be prescribed by rule of the department.
  473         199.1035 Basis of assessment; valuation.—All intangible
  474  personal property shall be subject to the annual tax at its just
  475  valuation as of January 1 of each year. Such property shall be
  476  valued in the following manner:
  477         (1) Shares of stock of corporations, or any interest of a
  478  limited partner in any limited partnership, regularly listed on
  479  any public stock exchange or regularly traded over-the-counter
  480  shall be valued at their closing prices on the last business day
  481  of the previous calendar year.
  482         (2) Shares or units of companies or trusts registered under
  483  the Investment Company Act of 1940, as amended, including mutual
  484  funds, money market funds, and unit investment trusts where such
  485  shares or units are not exempt under s. 199.1855, shall be
  486  valued at the net asset value of such shares or units on the
  487  last business day of the previous calendar year.
  488         (3) Bonds regularly listed on any public stock exchange or
  489  regularly traded over-the-counter shall be valued at their
  490  closing bid prices on the last business day of the previous
  491  calendar year.
  492         (4) Shares of stocks, bonds, or similar instruments of
  493  corporations not listed on any public stock exchange or not
  494  regularly traded over-the-counter shall be valued as of January
  495  1 of each year on the basis of those factors customarily
  496  considered in determining fair market value.
  497         (5) Accounts receivable shall be valued at their face value
  498  as of January 1 of each year, less a reasonable allowance for
  499  uncollectible accounts.
  500         (6) All notes and other obligations shall have a value
  501  equal to their unpaid balance as of January 1 of each year,
  502  unless the taxpayer can establish a lesser value upon proof
  503  satisfactory to the department.
  504         (7) All other forms of intangible personal property shall
  505  be valued on the basis of factors customarily considered in
  506  determining fair market value.
  507         (8) Stocks or shares of a savings association or middle
  508  tier stock holding company, held by a parent mutual holding
  509  company, the depositors of which are members of the mutual
  510  holding company, which converted from a mutual savings
  511  association to a mutual holding company pursuant to 12 U.S.C. s.
  512  1467a.(o), shall be valued as of January 1 each year on the same
  513  basis as ownership in the mutual savings association was valued
  514  for intangible tax purposes prior to the conversion. Stocks or
  515  shares of such a converted association which are held by
  516  individuals or entities other than the parent mutual holding
  517  company shall be valued pursuant to subsection (1) or subsection
  518  (4).
  519         199.10555 Contaminated site rehabilitation tax credit.—
  520         (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.—
  521         (a) A credit equal to 35 percent of the costs of voluntary
  522  cleanup activity that is integral to site rehabilitation at the
  523  following sites is available against any tax due for a taxable
  524  year under s. 199.0325, less any credit allowed by former s.
  525  220.68 for that year:
  526         1. A drycleaning-solvent-contaminated site eligible for
  527  state-funded site rehabilitation under s. 376.3078;
  528         2. A drycleaning-solvent-contaminated site at which
  529  voluntary cleanup is undertaken by the real property owner
  530  pursuant to s. 376.3078, if the real property owner is not also,
  531  and has never been, the owner or operator of the drycleaning
  532  facility where the contamination exists; or
  533         3. A brownfield site in a designated brownfield area under
  534  s. 376.80.
  535         (b) A tax credit applicant, or multiple tax credit
  536  applicants working jointly to clean up a single site, may not be
  537  granted more than $250,000 per year in tax credits for each site
  538  voluntarily rehabilitated. Multiple tax credit applicants shall
  539  be granted tax credits in the same proportion as their
  540  contribution to payment of cleanup costs. Subject to the same
  541  conditions and limitations as provided in this section, a
  542  municipality, county, or other tax credit applicant which
  543  voluntarily rehabilitates a site may receive not more than
  544  $250,000 per year in tax credits which it can subsequently
  545  transfer subject to the provisions in paragraph (g).
  546         (c) If the credit granted under this section is not fully
  547  used in any one year because of insufficient tax liability on
  548  the part of the tax credit applicant, the unused amount may be
  549  carried forward for a period not to exceed 5 years. Five years
  550  after the date a credit is granted under this section, such
  551  credit expires and may not be used. However, if during the 5
  552  year period the credit is transferred, in whole or in part,
  553  pursuant to paragraph (g), each transferee has 5 years after the
  554  date of transfer to use the transferred credit.
  555         (d) A taxpayer that receives a credit under s. 220.1845 is
  556  ineligible to receive credit under this section in a given tax
  557  year.
  558         (e) A tax credit applicant that receives state-funded site
  559  rehabilitation pursuant to s. 376.3078 for rehabilitation of a
  560  drycleaning-solvent-contaminated site is ineligible to receive
  561  credit under this section for costs incurred by the tax credit
  562  applicant in conjunction with the rehabilitation of that site
  563  during the same time period that state-administered site
  564  rehabilitation was underway.
  565         (f) The total amount of the tax credits which may be
  566  granted under this section and s. 220.1845 is $2 million
  567  annually.
  568         (g)1. Tax credits that may be available under this section
  569  to an entity eligible under s. 376.30781 may be transferred
  570  after a merger or acquisition to the surviving or acquiring
  571  entity and used in the same manner with the same limitations.
  572         2. The entity, or its surviving or acquiring entity as
  573  described in subparagraph 1., may transfer any unused credit in
  574  whole or in units of no less than 25 percent of the remaining
  575  credit. The entity acquiring such credit may use it in the same
  576  manner and with the same limitation as described in this
  577  section. Such transferred credits may not be transferred again,
  578  although such credits may succeed to a surviving or acquiring
  579  entity subject to the same conditions and limitations as
  580  described in this section.
  581         3. If the credit provided for under this section is reduced
  582  as a result of a determination by the Department of
  583  Environmental Protection or an examination or audit by the
  584  Department of Revenue, such tax deficiency shall be recovered
  585  from the first entity, or the surviving or acquiring entity, to
  586  have claimed such credit up to the amount of credit taken. Any
  587  subsequent deficiencies shall be assessed against any entity
  588  acquiring and claiming such credit or, in the case of multiple
  589  succeeding entities, in the order of credit succession.
  590         (h) In order to encourage completion of site rehabilitation
  591  at contaminated sites being voluntarily cleaned up and eligible
  592  for a tax credit under this section, the tax credit applicant
  593  may claim an additional 10 percent of the total cleanup costs,
  594  not to exceed $50,000, in the final year of cleanup as evidenced
  595  by the Department of Environmental Protection issuing a “No
  596  Further Action” order for that site.
  597         (2) FILING REQUIREMENTS.—Any taxpayer that wishes to obtain
  598  credit under this section must submit with the taxpayer’s return
  599  a tax credit certificate approving partial tax credits issued by
  600  the Department of Environmental Protection under s. 376.30781.
  601         (3) ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT
  602  FORFEITURE.—
  603         (a) The Department of Revenue may adopt rules to prescribe
  604  any necessary forms required to claim a tax credit under this
  605  section and to provide the administrative guidelines and
  606  procedures required to administer this section.
  607         (b) In addition to its existing audit and investigation
  608  authority relating to chapters 199 and 220, the Department of
  609  Revenue may perform any additional financial and technical
  610  audits and investigations, including examining the accounts,
  611  books, or records of the tax credit applicant, which are
  612  necessary to verify the site rehabilitation costs included in a
  613  tax credit return and to ensure compliance with this section.
  614  The Department of Environmental Protection shall provide
  615  technical assistance, when requested by the Department of
  616  Revenue, on any technical audits performed under this section.
  617         (c) It is grounds for forfeiture of previously claimed and
  618  received tax credits if the Department of Revenue determines, as
  619  a result of either an audit or information received from the
  620  Department of Environmental Protection, that a taxpayer received
  621  tax credits under this section to which the taxpayer was not
  622  entitled. In the case of fraud, the taxpayer shall be prohibited
  623  from claiming any future tax credits under this section or s.
  624  220.1845.
  625         1. The taxpayer is responsible for returning forfeited tax
  626  credits to the Department of Revenue, and such funds shall be
  627  paid into the General Revenue Fund of the state.
  628         2. The taxpayer shall file with the Department of Revenue
  629  an amended tax return or such other report as the Department of
  630  Revenue prescribes by rule and shall pay any required tax within
  631  60 days after the taxpayer receives notification from the
  632  Department of Environmental Protection pursuant to s. 376.30781
  633  that previously approved tax credits have been revoked or
  634  modified, if uncontested, or within 60 days after a final order
  635  is issued following proceedings involving a contested revocation
  636  or modification order.
  637         3. A notice of deficiency may be issued by the Department
  638  of Revenue at any time within 5 years after the date the
  639  taxpayer receives notification from the Department of
  640  Environmental Protection pursuant to s. 376.30781 that
  641  previously approved tax credits have been revoked or modified.
  642  If a taxpayer fails to notify the Department of Revenue of any
  643  change in its tax credit claimed, a notice of deficiency may be
  644  issued at any time. In either case, the amount of any proposed
  645  assessment set forth in such notice of deficiency shall be
  646  limited to the amount of any deficiency resulting under this
  647  section from the recomputation of the taxpayer’s tax for the
  648  taxable year.
  649         4. Any taxpayer that fails to report and timely pay any tax
  650  due as a result of the forfeiture of its tax credit is in
  651  violation of this section and is subject to applicable penalty
  652  and interest.
  653         199.1065 Credit for taxes imposed by other states.—
  654         (1) For intangible personal property that has been deemed
  655  to have a taxable situs in this state solely pursuant to s.
  656  199.1755(2) or any similar predecessor statute, a credit against
  657  the tax imposed by s. 199.0325 is allowed to a taxpayer in an
  658  amount equal to a like tax lawfully imposed and paid by that
  659  taxpayer on the same property in another state, territory of the
  660  United States, or the District of Columbia. For purposes of this
  661  subsection, the term “like tax” means an ad valorem tax on
  662  intangible personal property that is also subject to tax under
  663  s. 199.0325. The credit may not exceed the tax imposed on the
  664  property under s. 199.0325. Proof of entitlement to such a
  665  credit must be made pursuant to rules and forms adopted by the
  666  department.
  667         (2) For intangible personal property that has a taxable
  668  situs in this state under s. 199.1755(1) or any similar
  669  predecessor statute, a credit against the tax imposed by s.
  670  199.0325 is allowed to a taxpayer in an amount equal to a like
  671  tax lawfully imposed and paid by that taxpayer on the same
  672  property in another state, territory of the United States, or
  673  the District of Columbia when the other taxing authority is also
  674  claiming situs under provisions similar or identical to those in
  675  s. 199.1755(1) or any similar predecessor statute. For purposes
  676  of this subsection, the term “like tax” means an ad valorem tax
  677  on intangible personal property which is also subject to tax
  678  under s. 199.0325. The credit may not exceed the tax imposed on
  679  the property under s. 199.0325. Proof of entitlement to such a
  680  credit must be made pursuant to rules and forms adopted by the
  681  department.
  682         (3) The credits provided by this section apply
  683  retroactively. However, notwithstanding the retroactivity of
  684  these credit provisions, this section does not reopen a closed
  685  period of nonclaim under s. 215.26 or any other statute or
  686  extend the period of nonclaim under s. 215.26 or any other
  687  statute.
  688         199.1755 Taxable situs.—For purposes of the annual tax
  689  imposed under this chapter:
  690         (1) Intangible personal property has a taxable situs in
  691  this state when it is owned, managed, or controlled by any
  692  person domiciled in this state on January 1 of the tax year.
  693  Such intangibles shall be subject to annual taxation under this
  694  chapter, unless the person who owns, manages, or controls them
  695  is specifically exempt or unless the property is specifically
  696  exempt. This provision applies regardless of where the evidence
  697  of the intangible property is kept; where the intangible is
  698  created, approved, or paid; or where business may be conducted
  699  from which the intangible arises. The fact that a corporation in
  700  this state owns the stock of an out-of-state corporation and
  701  manages and controls such corporation from a location in this
  702  state shall not operate to give a taxable situs in this state to
  703  the intangibles owned by the out-of-state corporation, which
  704  intangibles arise out of business transacted outside this state.
  705         (a) For the purposes of this chapter, the term “any person
  706  domiciled in this state” means:
  707         1. Any natural person who is a legal resident of this
  708  state;
  709         2. Any business, business trust as described in chapter
  710  609, company, corporation, partnership, or other artificial
  711  entity organized or created under the law of this state, except
  712  a trust; or
  713         3. Any person, including a business trust, that has
  714  established a commercial domicile in this state.
  715         (b) A business or other artificial entity acquires its
  716  commercial domicile in this state when it maintains its chief or
  717  principal office in this state where executive or management
  718  functions are performed or where the course of business
  719  operations is determined.
  720         (c) Notwithstanding the provisions of this subsection,
  721  intangibles that are credit card receivables or charge card
  722  receivables or related lines of credit or loans that would
  723  otherwise be deemed to have taxable situs in this state solely
  724  because they are owned, managed, or controlled by a bank or
  725  savings association as defined in s. 220.62, or an affiliate or
  726  subsidiary thereof, which is domiciled in this state shall be
  727  treated as having a taxable situs in this state only when the
  728  debt represented by the intangible is owed by a customer who is
  729  domiciled in this state. As used in this paragraph, the terms
  730  “credit card receivables” and “charge card receivables” do not
  731  include trade or service receivables as defined in s. 864 of the
  732  Internal Revenue Code of 1986, as amended.
  733         (2) Intangible personal property has a taxable situs in
  734  this state when it is deemed to have a business situs in this
  735  state and it is owned, managed, or controlled by a person
  736  transacting business in this state, even though the owner may
  737  claim a domicile elsewhere. This provision applies regardless of
  738  where the evidence of the intangible is kept or where the
  739  intangible is created, approved, or paid.
  740         (a) Intangibles shall be deemed to have a business situs in
  741  this state when the intangibles receive the benefit and
  742  protection of the laws and courts of this state and are derived
  743  from, arise out of, or are issued in connection with the
  744  business transacted in this state with a customer in this state.
  745  For purposes of this paragraph:
  746         1. Business is transacted in this state when any
  747  occupation, profession, or commercial activity, including
  748  financing, leasing, selling, or servicing activities, is
  749  regularly conducted with customers in this state from an office,
  750  plant, home, or any other business location in this state.
  751         2. Business is transacted in this state when any
  752  occupation, profession, or commercial activity, including, but
  753  not limited to, financing, leasing, selling, or servicing
  754  activities, is regularly conducted with customers in this state
  755  by or through agents, employees, or representatives of any kind
  756  in this state, whether or not such persons are vested with
  757  discretionary authority.
  758         (b) Notwithstanding the provisions of this subsection:
  759         1.a. Intangible personal property that is credit card or
  760  charge card receivables or related lines of credit or loans
  761  shall be deemed to have business situs in this state only when
  762  the debt represented by such intangible property is owed by a
  763  customer who is domiciled in this state.
  764         b. The performance of ministerial functions relating to, or
  765  the processing of, credit card or charge card receivables in
  766  this state for the owner of such receivables is not sufficient
  767  to support a finding that the owner is transacting business in
  768  this state.
  769         c. The term “credit card or charge card receivables” does
  770  not include trade or service receivables as defined in s. 864 of
  771  the Internal Revenue Code of 1986, as amended.
  772         2. Intangible personal property owned by a real estate
  773  mortgage investment conduit, a real estate investment trust, or
  774  a regulated investment company, as those terms are defined in
  775  the United States Internal Revenue Code of 1986, as amended,
  776  shall not be deemed to have a taxable situs in this state unless
  777  such entity has its legal or commercial domicile in this state.
  778         3. The ownership of any interest in a participation or
  779  syndication loan or pool of loans, notes, or receivables is not
  780  sufficient to support a finding that the owner of such interest
  781  is transacting business in this state. For purposes of this
  782  subparagraph, a participation or syndication loan is a loan in
  783  which more than one lender is a creditor to a common borrower,
  784  and a participation or syndication interest in a pool of loans,
  785  notes, or receivables is an interest acquired from the
  786  originator or initial creditor with respect to the loans, notes,
  787  or receivables constituting the pool.
  788         (c) It is the intent of this subsection that a nonresident
  789  may not transact business in this state without paying the same
  790  tax which the state imposes on residents transacting the same
  791  business.
  792         199.1855 Property exempted from annual and nonrecurring
  793  taxes.—
  794         (1) The following intangible personal property is exempt
  795  from the annual and nonrecurring taxes imposed by this chapter:
  796         (a) Money.
  797         (b) Franchises.
  798         (c) Any interest as a partner in a partnership, general or
  799  limited, other than any interest as a limited partner in a
  800  limited partnership registered with the Securities and Exchange
  801  Commission pursuant to the Securities Act of 1933, as amended.
  802         (d) Notes, bonds, and other obligations issued by the State
  803  of Florida or its municipalities, counties, and other taxing
  804  districts, or by the United States Government and its agencies.
  805         (e) Intangible personal property held in trust pursuant to
  806  any stock bonus, pension, or profit-sharing plan or any
  807  individual retirement account which is qualified under s. 530,
  808  s. 401, s. 408, or s. 408A of the United States Internal Revenue
  809  Code, 26 U.S.C. ss. 530, 401, 408, and 408A, as amended.
  810         (f) Intangible personal property held under a retirement
  811  plan of a Florida-based corporation exempt from federal income
  812  tax under s. 501(c)(6) of the United States Internal Revenue
  813  Code, 26 U.S.C., if the primary purpose of the corporation is to
  814  support the promotion of professional sports and the retirement
  815  plan is either a qualified plan under s. 457 of the United
  816  States Internal Revenue Code or the contributions to the plan,
  817  pursuant to a ruling by the United States Internal Revenue
  818  Service, are not taxable to plan participants until actual
  819  receipt or withdrawal by the participant.
  820         (g) Notes and other obligations, except bonds, to the
  821  extent that such notes and obligations are secured by mortgage,
  822  deed of trust, or other lien upon real property situated outside
  823  the state.
  824         (h) The assets of a corporation registered under the
  825  Investment Company Act of 1940, 15 U.S.C. s. 80a-1-52, as
  826  amended.
  827         (i) All intangible personal property issued in or arising
  828  out of any international banking transaction and owned by a
  829  banking organization.
  830         (j) Units of a unit investment trust and shares or units
  831  of, or other undivided interest in, a business trust organized
  832  under an agreement, indenture, or declaration of trust and
  833  registered under the Investment Company Act of 1940, as amended,
  834  shall be exempt if at least 90 percent of the net asset value of
  835  the portfolio of assets corresponding to such shares, units, or
  836  undivided interests is invested in assets that are exempt from
  837  the tax imposed by s. 199.0325.
  838         (k) Interests in real estate securitizations, including,
  839  but not limited to, real estate mortgage investment conduits
  840  (REMIC) and financial asset securitization trusts (FASITS),
  841  which are directly or indirectly secured by or payable from
  842  notes and obligations that are in turn secured solely by a
  843  mortgage, deed of trust, or other lien upon real property
  844  situated in or outside the state, including, but not limited to,
  845  mortgage pools, participations, and derivatives.
  846         (l) All accounts receivable arising or acquired in the
  847  ordinary course of a trade or business which are owned,
  848  controlled, or managed by a taxpayer. This exemption does not
  849  apply to accounts receivable that arise outside the taxpayer’s
  850  ordinary course of trade or business. For the purposes of this
  851  chapter, the term “accounts receivable” means a business debt
  852  that is owed by another to the taxpayer or the taxpayer’s
  853  assignee in the ordinary course of trade or business and is not
  854  supported by negotiable instruments. Accounts receivable
  855  include, but are not limited to, credit card receivables, charge
  856  card receivables, credit receivables, margin receivables,
  857  inventory or other floor plan financing, lease payments past
  858  due, conditional sales contracts, retail installment sales
  859  agreements, financing lease contracts, and a claim against a
  860  debtor usually arising from sales or services rendered and which
  861  is not necessarily due or past due. The examples specified in
  862  this paragraph shall be deemed not to be supported by negotiable
  863  instruments. The term “negotiable instrument” means a written
  864  document that is legally capable of being transferred by
  865  endorsement or delivery. The term “endorsement” means the act of
  866  a payee or holder in writing his or her name on the back of an
  867  instrument without further qualifying words other than “pay to
  868  the order of” or “pay to” whereby the property is assigned and
  869  transferred to another.
  870         (m) Stock options granted to employees by their employer
  871  pursuant to an incentive plan, if the employees cannot transfer,
  872  sell, or mortgage the options. Stock purchased by an employee
  873  from an employer pursuant to an incentive plan shall be treated
  874  as a nontaxable stock option if part of the purchase price of
  875  the stock is nonrecourse debt secured by the stock and the stock
  876  cannot be sold, transferred, or assigned by the employee until
  877  the nonrecourse debt is discharged. Such stock becomes taxable
  878  stock when it can be sold, transferred, or assigned by the
  879  employee.
  880         (n)1. A leasehold estate in governmental property in which
  881  the lessee is required to furnish space on the leasehold estate
  882  for public use by governmental agencies at no charge to the
  883  governmental agencies.
  884         2. The provisions of this exemption apply retroactively.
  885  However, notwithstanding the retroactivity of the exemption, it
  886  does not reopen a closed period of nonclaim under s. 215.26 or
  887  any other law or extend the period of nonclaim under s. 215.26
  888  or any other statute.
  889         (2)(a) Each natural person is entitled each year to an
  890  exemption of the first $1 million of the value of property
  891  otherwise subject to the annual tax. A husband and wife filing
  892  jointly shall have an exemption of $2 million. Every taxpayer
  893  that is not a natural person is entitled each year to an
  894  exemption of the first $250,000 of the value of property
  895  otherwise subject to the tax. Agents and fiduciaries, other than
  896  guardians and custodians under a gifts-to-minors act, filing as
  897  such may not claim this exemption on behalf of their principals
  898  or beneficiaries; however, if the principal or beneficiary
  899  returns the property held by the agent or fiduciary and is a
  900  natural person, the principal or beneficiary may claim the
  901  exemption. A taxpayer is not entitled to more than one exemption
  902  under this subsection. This exemption shall not apply to
  903  intangible personal property described in s. 199.0235(6)(d).
  904         (b) For purposes of this chapter, a resident shall be
  905  deemed to have a beneficial interest in a trust if the resident
  906  is the grantor of an irrevocable trust formed under any
  907  arrangement, verbal or written, that provides for more than 25
  908  per cent of the assets of the trust to be transferred within 10
  909  years after the agreement is executed back to the grantor or to
  910  the beneficiary other than as a result of the death of the
  911  grantor. Assets in any trust designated as a Florida Intangible
  912  Tax Exempt Trust or a similar arrangement are considered
  913  beneficial interests.
  914         (3) Each natural person who is a widow or widower, or who
  915  is blind or totally and permanently disabled, is entitled each
  916  year to an additional exemption of $500 of property otherwise
  917  subject to the annual or nonrecurring tax. This exemption is
  918  afforded by s. 3, Art. VII of the State Constitution and is
  919  available only to the extent not used against real property or
  920  tangible personal property taxes.
  921         (4) Charitable trusts, 95 percent of the income of which is
  922  paid to organizations exempt from federal income tax pursuant to
  923  s. 501(c)3 of the Internal Revenue Code, are exempt from the tax
  924  imposed in s. 199.0325.
  925         (5) Any organization defined in s. 220.62(1), (2), (3), or
  926  (4) is exempt from the tax imposed by s. 199.0325.
  927         (6) Each liquor distributor that is domiciled in this
  928  state, that is authorized to do business under the Beverage Law,
  929  and that has paid the license taxes required by s. 565.03(2) is
  930  exempt from paying tax on accounts receivable owned by the
  931  taxpayer which are derived from, arise out of, or are issued in
  932  connection with a sale of alcoholic beverages transacted in
  933  another state with a customer in another state.
  934         (7) A national bank that has its principal place of
  935  business in another state, processes credit card credit
  936  applications in this state or performs customer service or
  937  collection operations in this state, and is not a bank under 12
  938  U.S.C. s. 1941(c)(2)(F), is exempt from paying tax on credit
  939  card receivables owed to the bank by a credit card holder
  940  domiciled outside this state.
  941         (8) Each insurer, as defined in s. 624.03, whether the
  942  insurer is authorized or unauthorized as defined in s. 624.09,
  943  is exempt from the tax imposed by s. 199.0325.
  944         Section 2. Effective January 1, 2011, paragraph (c) of
  945  subsection (1) of section 28.35, Florida Statutes, is amended to
  946  read:
  947         28.35 Florida Clerks of Court Operations Corporation.—
  948         (1)
  949         (c) For purposes of s. 199.183(1), the corporation shall be
  950  considered a political subdivision of the state and shall be
  951  exempt from the corporate income tax. The corporation is not
  952  subject to the procurement provisions of chapter 287, and
  953  policies and decisions of the corporation relating to incurring
  954  debt, levying assessments, and the sale, issuance, continuation,
  955  terms, and claims under corporation policies, and all services
  956  relating thereto, are not subject to the provisions of chapter
  957  120.
  958         Section 3. Effective January 1, 2011, paragraph (a) of
  959  subsection (4) of section 192.0105, Florida Statutes, is amended
  960  to read:
  961         192.0105 Taxpayer rights.—There is created a Florida
  962  Taxpayer’s Bill of Rights for property taxes and assessments to
  963  guarantee that the rights, privacy, and property of the
  964  taxpayers of this state are adequately safeguarded and protected
  965  during tax levy, assessment, collection, and enforcement
  966  processes administered under the revenue laws of this state. The
  967  Taxpayer’s Bill of Rights compiles, in one document, brief but
  968  comprehensive statements that summarize the rights and
  969  obligations of the property appraisers, tax collectors, clerks
  970  of the court, local governing boards, the Department of Revenue,
  971  and taxpayers. Additional rights afforded to payors of taxes and
  972  assessments imposed under the revenue laws of this state are
  973  provided in s. 213.015. The rights afforded taxpayers to assure
  974  that their privacy and property are safeguarded and protected
  975  during tax levy, assessment, and collection are available only
  976  insofar as they are implemented in other parts of the Florida
  977  Statutes or rules of the Department of Revenue. The rights so
  978  guaranteed to state taxpayers in the Florida Statutes and the
  979  departmental rules include:
  980         (4) THE RIGHT TO CONFIDENTIALITY.—
  981         (a) The right to have information kept confidential,
  982  including federal tax information, ad valorem tax returns,
  983  social security numbers, all financial records produced by the
  984  taxpayer, Form DR-219 returns for documentary stamp tax
  985  information, and sworn statements of gross income, copies of
  986  federal income tax returns for the prior year, wage and earnings
  987  statements (W-2 forms), and other documents (see ss. 192.105,
  988  193.074, 193.114(6)(5), 195.027(3) and (6), and 196.101(4)(c)).
  989         Section 4. Effective January 1, 2011, subsections (5) and
  990  (6) of section 192.032, Florida Statutes, are renumbered as
  991  subsections (6) and (7), respectively, and a new subsection (5)
  992  is added to that section, to read:
  993         192.032 Situs of property for assessment purposes.—All
  994  property shall be assessed according to its situs as follows:
  995         (5) Intangible personal property, according to the rules
  996  laid down in chapter 199.
  997         Section 5. Effective January 1, 2011, subsection (3) is
  998  added to section 192.042, Florida Statutes, to read:
  999         192.042 Date of assessment.—All property shall be assessed
 1000  according to its just value as follows:
 1001         (3) Intangible personal property, according to the rules
 1002  laid down in chapter 199.
 1003         Section 6. Effective January 1, 2011, subsection (5) of
 1004  section 192.091, Florida Statutes, is amended to read:
 1005         192.091 Commissions of property appraisers and tax
 1006  collectors.—
 1007         (5) The provisions of this section shall not apply to
 1008  commissions on intangible property taxes or drainage district or
 1009  drainage subdistrict taxes.
 1010         Section 7. Effective January 1, 2011, subsections (4), (5),
 1011  and (6) of section 193.114, Florida Statutes, are renumbered as
 1012  subsections (5), (6), and (7), respectively, and a new
 1013  subsection (4) is added to that section to read:
 1014         193.114 Preparation of assessment rolls.—
 1015         (4) The department shall adopt regulations and forms for
 1016  the preparation of the intangible personal property tax roll to
 1017  comply with chapter 199.
 1018         Section 8. Effective January 1, 2011, subsection (11) is
 1019  added to section 196.015, Florida Statutes, to read:
 1020         196.015 Permanent residency; factual determination by
 1021  property appraiser.—Intention to establish a permanent residence
 1022  in this state is a factual determination to be made, in the
 1023  first instance, by the property appraiser. Although any one
 1024  factor is not conclusive of the establishment or
 1025  nonestablishment of permanent residence, the following are
 1026  relevant factors that may be considered by the property
 1027  appraiser in making his or her determination as to the intent of
 1028  a person claiming a homestead exemption to establish a permanent
 1029  residence in this state:
 1030         (11) The previous filing of Florida intangible tax returns
 1031  by the applicant.
 1032         Section 9. Effective January 1, 2011, paragraph (b) of
 1033  subsection (2) of section 196.199, Florida Statutes, is amended
 1034  to read:
 1035         196.199 Government property exemption.—
 1036         (2) Property owned by the following governmental units but
 1037  used by nongovernmental lessees shall only be exempt from
 1038  taxation under the following conditions:
 1039         (b) Except as provided in paragraph (c), the exemption
 1040  provided by this subsection shall not apply to those portions of
 1041  a leasehold or other interest defined by s. 199.0235(6)(d)
 1042  199.023(1)(d), Florida Statutes 2005, subject to the provisions
 1043  of subsection (7). Such leasehold or other interest shall be
 1044  taxed only as intangible personal property pursuant to chapter
 1045  199, Florida Statutes 2005, if rental payments are due in
 1046  consideration of such leasehold or other interest. All
 1047  applicable collection, administration, and enforcement
 1048  provisions of chapter 199, Florida Statutes 2005, shall apply to
 1049  taxation of such leaseholds. If no rental payments are due
 1050  pursuant to the agreement creating such leasehold or other
 1051  interest, the leasehold or other interest shall be taxed as real
 1052  property. Nothing in this paragraph shall be deemed to exempt
 1053  personal property, buildings, or other real property
 1054  improvements owned by the lessee from ad valorem taxation.
 1055         Section 10. Effective January 1, 2011, subsection (2) of
 1056  section 199.133, Florida Statutes, is amended to read:
 1057         199.133 Levy of nonrecurring tax; relationship to annual
 1058  tax.—
 1059         (2) The nonrecurring tax shall apply to a note, bond, or
 1060  other obligation for payment of money only to the extent it is
 1061  secured by mortgage, deed of trust, or other lien upon real
 1062  property situated in this state. Where a note, bond, or other
 1063  obligation is secured by personal property or by real property
 1064  situated outside this state, as well as by mortgage, deed of
 1065  trust, or other lien upon real property situated in this state,
 1066  then the nonrecurring tax shall apply to that portion of the
 1067  note, bond, or other obligation which bears the same ratio to
 1068  the entire principal balance of the note, bond, or other
 1069  obligation as the value of the real property situated in this
 1070  state bears to the value of all of the security; however, if the
 1071  security is solely made up of personal property and real
 1072  property situated in this state, the taxpayer may elect to
 1073  apportion the taxes based upon the value of the collateral, if
 1074  any, to which the taxpayer by law or contract must look first
 1075  for collection. In no event shall the portion of the note, bond,
 1076  or other obligation which is subject to the nonrecurring tax
 1077  exceed in value the value of the real property situated in this
 1078  state which is the security. The portion of a note, bond, or
 1079  other obligation that is not subject to the nonrecurring tax
 1080  shall be subject to the annual tax unless otherwise exempt.
 1081         Section 11. Effective January 1, 2011, paragraph (a) of
 1082  subsection (1) of section 199.183, Florida Statutes, is amended,
 1083  and subsections (3) and (4) are added to that section, to read:
 1084         199.183 Taxpayers exempt from annual and nonrecurring
 1085  taxes.—
 1086         (1) Intangible personal property owned by this state or any
 1087  of its political subdivisions or municipalities shall be exempt
 1088  from taxation under this chapter. This exemption does not apply
 1089  to:
 1090         (a) Any leasehold or other interest that is described in s.
 1091  199.0235(6)(d) 199.023(1)(d), Florida Statutes 2005; or
 1092         (b) Property related to the provision of two-way
 1093  telecommunications services to the public for hire by the use of
 1094  a telecommunications facility, as defined in s. 364.02(15), and
 1095  for which a certificate is required under chapter 364, when the
 1096  service is provided by any county, municipality, or other
 1097  political subdivision of the state. Any immunity of any
 1098  political subdivision of the state or other entity of local
 1099  government from taxation of the property used to provide
 1100  telecommunication services that is taxed as a result of this
 1101  paragraph is hereby waived. However, intangible personal
 1102  property related to the provision of telecommunications services
 1103  provided by the operator of a public-use airport, as defined in
 1104  s. 332.004, for the operator’s provision of telecommunications
 1105  services for the airport or its tenants, concessionaires, or
 1106  licensees, and intangible personal property related to the
 1107  provision of telecommunications services provided by a public
 1108  hospital, are exempt from taxation under this chapter.
 1109         (3) Every national bank having its principal place of
 1110  business in another state, but operating a credit card credit
 1111  application processing, customer service, or collection
 1112  operation in this state, that is not considered a bank under the
 1113  provisions of 12 U.S.C. s. 1841(c)(2)(F), is exempt from paying
 1114  the tax imposed by this chapter on credit card receivables owed
 1115  to the bank by credit card holders domiciled outside this state.
 1116         (4) Intangible personal property that is owned, managed, or
 1117  controlled by a trustee of a trust is exempt from annual tax
 1118  under this chapter. This exemption does not exempt from annual
 1119  tax a resident of this state who has a taxable beneficial
 1120  interest, as defined in s. 199.0235(4), in a trust.
 1121         Section 12. Effective January 1, 2011, section 199.218,
 1122  Florida Statutes, is amended to read:
 1123         199.218 Books and records.—
 1124         (1) Each taxpayer shall retain all books and other records
 1125  necessary to identify the taxpayer’s intangible personal
 1126  property and to determine any tax due under this chapter, as
 1127  well as all books and other records otherwise required by rule
 1128  of the department with respect to any such tax, until the
 1129  department’s power to make an assessment with respect to such
 1130  tax has terminated under s. 95.091(3).
 1131         (2) Each broker subject to the provisions of s. 199.0625
 1132  shall preserve all books and other records relating to the
 1133  information reported under s. 199.0625 or otherwise required by
 1134  rule of the department for a period of 3 years from the due date
 1135  of the report.
 1136         Section 13. Effective January 1, 2011, paragraph (a) of
 1137  subsection (1) and subsection (3) of section 199.232, Florida
 1138  Statutes, are amended to read:
 1139         199.232 Powers of department.—
 1140         (1)(a) The department may audit the books and records of
 1141  any person to determine whether an annual tax or a nonrecurring
 1142  tax has been properly paid.
 1143         (3) With or without an audit, the department may assess any
 1144  tax deficiency resulting from nonpayment or underpayment of the
 1145  tax, as well as any applicable interest and penalties. The
 1146  department shall assess on the basis of the best information
 1147  available to it, including estimates based on the best
 1148  information available to it if the taxpayer fails to permit
 1149  inspection of the taxpayer’s records, fails to file an annual
 1150  return, files a grossly incorrect return, or files a false and
 1151  fraudulent return.
 1152         Section 14. Effective January 1, 2011, section 199.282,
 1153  Florida Statutes, is amended to read:
 1154         199.282 Penalties for violation of this chapter.—
 1155         (1) Any person willfully violating or failing to comply
 1156  with any of the provisions of this chapter shall be guilty of a
 1157  felony of the third degree, punishable as provided in s.
 1158  775.082, s. 775.083, or s. 775.084.
 1159         (2) If any annual or nonrecurring tax is not paid by the
 1160  statutory due date, then despite any extension granted under s.
 1161  199.232(6), interest shall run on the unpaid balance from such
 1162  due date until paid at the rate of 12 percent per year.
 1163         (3)(a) If any annual or nonrecurring tax is not paid by the
 1164  due date, a delinquency penalty shall be charged. The
 1165  delinquency penalty shall be 10 percent of the delinquent tax
 1166  for each calendar month or portion thereof from the due date
 1167  until paid, up to a limit of 50 percent of the total tax not
 1168  timely paid.
 1169         (b) If any annual tax return required by this chapter is
 1170  not filed by the due date, a penalty of 10 percent of the tax
 1171  due with the return shall be charged for each calendar month or
 1172  portion thereof during which the return remains unfiled, up to a
 1173  limit of 50 percent of the total tax due.
 1174  
 1175  For any penalty assessed under this subsection, the combined
 1176  total for all penalties assessed under paragraphs (a) and (b)
 1177  shall not exceed 10 percent per calendar month, up to a limit of
 1178  50 percent of the total tax due.
 1179         (4) If an annual tax return is filed and property is either
 1180  omitted from it or undervalued, then a specific penalty shall be
 1181  charged. The specific penalty shall be 10 percent of the tax
 1182  attributable to each omitted item or to each undervaluation. No
 1183  delinquency or late filing penalty shall be charged with respect
 1184  to any undervaluation.
 1185         (5)(4) No mortgage, deed of trust, or other lien upon real
 1186  property situated in this state shall be enforceable in any
 1187  Florida court, nor shall any written evidence of such mortgage,
 1188  deed of trust, or other lien be recorded in any public record of
 1189  the state, until the nonrecurring tax imposed by this chapter,
 1190  including any taxes due on future advances, has been paid and
 1191  the clerk of circuit court collecting the tax has noted its
 1192  payment on the instrument or given other receipt for it.
 1193  However, failure to pay the correct amount of tax or failure of
 1194  the clerk to note payment of the tax on the instrument shall not
 1195  affect the constructive notice given by recording of the
 1196  instrument.
 1197         (6) Late reporting penalties shall be imposed as follows:
 1198         (a) A penalty of $100 upon any corporation that does not
 1199  timely file a written notice required under s. 199.0575(2)(c).
 1200         (b) An initial penalty of $10 per customer position
 1201  statement, plus an additional penalty of the greater of 1
 1202  percent of the initial penalty or $50 for each month or portion
 1203  of a month, from the date due until filing is made, upon any
 1204  security dealer or investment adviser who does not timely file
 1205  or fails to file the statements required by s. 199.0625(1). The
 1206  submission of a position statement that does not comply with the
 1207  department’s specifications and instructions or the submission
 1208  of an inaccurate position statement is not a timely filing. The
 1209  department shall notify any security dealer or investment
 1210  adviser who fails to timely file the required statements. The
 1211  minimum penalty imposed upon a security dealer or investment
 1212  adviser under this paragraph is $100.
 1213         (7)(5) Interest and penalties attributable to any tax shall
 1214  be deemed assessed when the tax is assessed. Interest and
 1215  penalties shall be assessed and collected by the department as
 1216  provided in this chapter. The department may settle or
 1217  compromise tax, interest, or penalties under the provisions of
 1218  s. 213.21.
 1219         (8)(6) Any person who fails or refuses to file an annual
 1220  return, or who fails or refuses to make records available for
 1221  inspection, when requested to do so by the department is guilty
 1222  of a misdemeanor of the first degree, punishable as provided in
 1223  s. 775.082 or s. 775.083.
 1224         (9)(7) Any officer or director of a corporation who has
 1225  administrative control over the filing of a return or payment of
 1226  any tax due under this chapter and who willfully directs any
 1227  employee of the corporation to fail to file the return or pay
 1228  the tax due or to evade, defeat, or improperly account for the
 1229  tax due, in addition to any other penalties provided by law,
 1230  shall be liable for a penalty equal to the amount of tax not
 1231  paid as required by this chapter. The filing of a protest based
 1232  upon doubt as to liability for the tax shall not be deemed an
 1233  attempt to evade or defeat the tax under this subsection. The
 1234  penalty imposed hereunder shall be abated to the extent the tax
 1235  is paid and may be compromised by the executive director of the
 1236  department as provided in s. 213.21. An assessment of penalty
 1237  made pursuant to this section shall be deemed prima facie
 1238  correct in any judicial or quasi-judicial proceeding brought to
 1239  collect this penalty.
 1240         Section 15. Effective January 1, 2011, section 199.292,
 1241  Florida Statutes, is amended to read:
 1242         199.292 Disposition of intangible personal property taxes.
 1243  All intangible personal property taxes collected pursuant to
 1244  this chapter, except for revenues derived from the annual tax on
 1245  a leasehold described in s. 199.0235(6)(d) 199.023(1)(d),
 1246  Florida Statutes 2005, shall be deposited into the General
 1247  Revenue Fund. Revenues derived from the annual tax on a
 1248  leasehold described in s. 199.0235(6)(d) 199.023(1)(d), Florida
 1249  Statutes 2005, shall be returned to the local school board for
 1250  the county in which the property subject to the leasehold is
 1251  situated.
 1252         Section 16. Effective January 1, 2011, subsection (3) of
 1253  section 199.303, Florida Statutes, is amended to read:
 1254         199.303 Declaration of legislative intent.—
 1255         (3) It is hereby declared to be the specific intent of the
 1256  Legislature that all annual intangible personal property taxes
 1257  imposed as provided by law for calendar years 2006 and prior
 1258  shall remain in full force and effect during the period
 1259  specified by s. 95.091 for the year in which the tax was due. It
 1260  is further the intent of the Legislature that the department
 1261  continue to assess and collect all taxes due to the state under
 1262  such provisions for all periods available for assessment, as
 1263  provided for the year in which tax was due by s. 95.091.
 1264         Section 17. Effective January 1, 2011, subsection (19) of
 1265  section 212.02, Florida Statutes, is amended to read:
 1266         212.02 Definitions.—The following terms and phrases when
 1267  used in this chapter have the meanings ascribed to them in this
 1268  section, except where the context clearly indicates a different
 1269  meaning:
 1270         (19) “Tangible personal property” means and includes
 1271  personal property which may be seen, weighed, measured, or
 1272  touched or is in any manner perceptible to the senses, including
 1273  electric power or energy, boats, motor vehicles and mobile homes
 1274  as defined in s. 320.01(1) and (2), aircraft as defined in s.
 1275  330.27, and all other types of vehicles. The term “tangible
 1276  personal property” does not include stocks, bonds, notes,
 1277  insurance, or other obligations or securities; intangibles as
 1278  defined by the intangible tax law of the state; or pari-mutuel
 1279  tickets sold or issued under the racing laws of the state.
 1280         Section 18. Effective January 1, 2011, paragraph (p) of
 1281  subsection (8) and paragraph (a) of subsection (15) of section
 1282  213.053, Florida Statutes, are amended to read:
 1283         213.053 Confidentiality and information sharing.—
 1284         (8) Notwithstanding any other provision of this section,
 1285  the department may provide:
 1286         (p) Information relative to ss. 199.10555, 220.1845, and
 1287  376.30781 to the Department of Environmental Protection in the
 1288  conduct of its official business.
 1289  
 1290  Disclosure of information under this subsection shall be
 1291  pursuant to a written agreement between the executive director
 1292  and the agency. Such agencies, governmental or nongovernmental,
 1293  shall be bound by the same requirements of confidentiality as
 1294  the Department of Revenue. Breach of confidentiality is a
 1295  misdemeanor of the first degree, punishable as provided by s.
 1296  775.082 or s. 775.083.
 1297         (15)(a) Notwithstanding any other provision of this
 1298  section, the department shall, subject to the safeguards
 1299  specified in paragraph (c), disclose to the Division of
 1300  Corporations of the Department of State the name, address,
 1301  federal employer identification number, and duration of tax
 1302  filings with this state of all corporate or partnership entities
 1303  which are not on file or have a dissolved status with the
 1304  Division of Corporations and which have filed tax returns
 1305  pursuant to chapter 199 or chapter 220.
 1306         Section 19. Effective January 1, 2011, section 213.054,
 1307  Florida Statutes, is amended to read:
 1308         213.054 Persons claiming tax exemptions or deductions;
 1309  annual report.—The Department of Revenue shall be responsible
 1310  for monitoring the utilization of tax exemptions and tax
 1311  deductions authorized pursuant to chapter 81-179, Laws of
 1312  Florida. On or before September 1 of each year, the department
 1313  shall report to the Chief Financial Officer the names and
 1314  addresses of all persons who have claimed an exemption pursuant
 1315  to s. 199.1855(1)(i) or a deduction pursuant to s. 220.63(5).
 1316         Section 20. Effective January 1, 2011, section 213.27,
 1317  Florida Statutes, is amended to read:
 1318         213.27 Contracts with debt collection agencies and certain
 1319  vendors.—
 1320         (1) The Department of Revenue may, for the purpose of
 1321  collecting any delinquent taxes due from a taxpayer, including
 1322  taxes for which a bill or notice has been generated, contract
 1323  with any debt collection agency or attorney doing business
 1324  within or without this state for the collection of such
 1325  delinquent taxes, including penalties and interest thereon. The
 1326  department may also share confidential information pursuant to
 1327  the contract necessary for the collection of delinquent taxes
 1328  and taxes for which a billing or notice has been generated.
 1329  Contracts will be made pursuant to chapter 287. The taxpayer
 1330  must be notified by mail by the department, its employees, or
 1331  its authorized representative at least 30 days prior to
 1332  commencing any litigation to recover any delinquent taxes. The
 1333  taxpayer must be notified by mail by the department at least 30
 1334  days prior to the initial assignment by the department of the
 1335  taxpayer’s account for the collection of any taxes by the debt
 1336  collection agency.
 1337         (2) The department may enter into contracts with any
 1338  individual or business for the purpose of identifying intangible
 1339  personal property tax liability. Contracts may provide for the
 1340  identification of assets subject to the tax on intangible
 1341  personal property, the determination of value of such property,
 1342  the requirement for filing a tax return and the collection of
 1343  taxes due, including applicable penalties and interest thereon.
 1344  The department may share confidential information pursuant to
 1345  the contract necessary for the identification of taxable
 1346  intangible personal property. Contracts shall be made pursuant
 1347  to chapter 287. The taxpayer must be notified by mail by the
 1348  department at least 30 days prior to the department assigning
 1349  identification of intangible personal property to an individual
 1350  or business.
 1351         (3)(2) Any contract may provide, in the discretion of the
 1352  executive director of the Department of Revenue, the manner in
 1353  which the compensation for such services will be paid. Under
 1354  standards established by the department, such compensation shall
 1355  be added to the amount of the tax and collected as a part
 1356  thereof by the agency or deducted from the amount of tax,
 1357  penalty, and interest actually collected.
 1358         (4)(3) All funds collected under the terms of the contract,
 1359  less the fees provided in the contract, shall be remitted to the
 1360  department within 30 days from the date of collection from a
 1361  taxpayer. Forms to be used for such purpose shall be prescribed
 1362  by the department.
 1363         (5)(4) The department shall require a bond from the debt
 1364  collection agency or the individual or business contracted with
 1365  under subsection (2) not in excess of $100,000 guaranteeing
 1366  compliance with the terms of the contract. However, a bond of
 1367  $10,000 is required from a debt collection agency if the agency
 1368  does not actually collect and remit delinquent funds to the
 1369  department.
 1370         (6)(5) The department may, for the purpose of ascertaining
 1371  the amount of or collecting any taxes due from a person doing
 1372  mail order business in this state, contract with any auditing
 1373  agency doing business within or without this state for the
 1374  purpose of conducting an audit of such mail order business;
 1375  however, such audit agency may not conduct an audit on behalf of
 1376  the department of any person domiciled in this state, person
 1377  registered for sales and use tax purposes in this state, or
 1378  corporation filing a Florida corporate tax return, if any such
 1379  person or corporation objects to such audit in writing to the
 1380  department and the auditing agency. The department shall notify
 1381  the taxpayer by mail at least 30 days before the department
 1382  assigns the collection of such taxes.
 1383         (7)(6) Confidential information shared by the department
 1384  with debt collection or auditing agencies or individuals or
 1385  businesses with which the department has contracted under
 1386  subsection (2) is exempt from the provisions of s. 119.07(1),
 1387  and debt collection or auditing agencies and individuals or
 1388  businesses with which the department has contracted under
 1389  subsection (2) shall be bound by the same requirements of
 1390  confidentiality as the Department of Revenue. Breach of
 1391  confidentiality is a misdemeanor of the first degree, punishable
 1392  as provided by ss. 775.082 and 775.083.
 1393         (8)(7)(a) The executive director of the department may
 1394  enter into contracts with private vendors to develop and
 1395  implement systems to enhance tax collections where compensation
 1396  to the vendors is funded through increased tax collections. The
 1397  amount of compensation paid to a vendor shall be based on a
 1398  percentage of increased tax collections attributable to the
 1399  system after all administrative and judicial appeals are
 1400  exhausted, and the total amount of compensation paid to a vendor
 1401  shall not exceed the maximum amount stated in the contract.
 1402         (b) A person acting on behalf of the department under a
 1403  contract authorized by this subsection does not exercise any of
 1404  the powers of the department, except that the person is an agent
 1405  of the department for the purposes of developing and
 1406  implementing a system to enhance tax collection.
 1407         (c) Disclosure of information under this subsection shall
 1408  be pursuant to a written agreement between the executive
 1409  director and the private vendors. The vendors shall be bound by
 1410  the same requirements of confidentiality as the department.
 1411  Breach of confidentiality is a misdemeanor of the first degree,
 1412  punishable as provided in s. 775.082 or s. 775.083.
 1413         Section 21. Effective January 1, 2011, paragraph (b) of
 1414  subsection (4) of section 650.05, Florida Statutes, is amended
 1415  to read:
 1416         650.05 Plans for coverage of employees of political
 1417  subdivisions.—
 1418         (4)
 1419         (b) The grants-in-aid and other revenue referred to in
 1420  paragraph (a) specifically include, but are not limited to,
 1421  minimum foundation program grants to public school districts and
 1422  community colleges; gasoline, motor fuel, intangible, cigarette,
 1423  racing, and insurance premium taxes distributed to political
 1424  subdivisions; and amounts specifically appropriated as grants
 1425  in-aid for mental health, mental retardation, and mosquito
 1426  control programs.
 1427         Section 22. Effective January 1, 2011, subsection (5) of
 1428  section 733.702, Florida Statutes, is renumbered as subsection
 1429  (6), and a new subsection (5) is added to that section to read:
 1430         733.702 Limitations on presentation of claims.—
 1431         (5) The Department of Revenue may file a claim against the
 1432  estate of a decedent for taxes due under chapter 199 after the
 1433  expiration of the time for filing claims provided in subsection
 1434  (1), if the department files its claim within 30 days after the
 1435  service of the inventory. Upon filing of the estate tax return
 1436  with the department as provided in s. 198.13, or to the extent
 1437  the inventory or estate tax return is amended or supplemented,
 1438  the department has the right to file a claim or to amend its
 1439  previously filed claim within 30 days after service of the
 1440  estate tax return, or an amended or supplemented inventory or
 1441  filing of an amended or supplemental estate tax return, as to
 1442  the additional information disclosed.
 1443         Section 23. Effective upon this act becoming a law, the
 1444  executive director of the Department of Revenue may adopt
 1445  emergency rules under ss. 120.536(1) and 120.54, Florida
 1446  Statutes, to implement chapter 199, Florida Statutes, and all
 1447  conditions are deemed met for the adoption of such rules.
 1448  Notwithstanding any other provision of law, such emergency rules
 1449  shall remain effective for 6 months after the date of adoption
 1450  and may be renewed during the pendency of procedures to adopt
 1451  rules addressing the subject of the emergency rules.
 1452         Section 24. Legislative findings and intent.—The
 1453  Legislature finds that the separate accounting system used to
 1454  measure the income of multistate and multinational corporations
 1455  for tax purposes often places corporations in this state at a
 1456  competitive disadvantage. Moreover, corporate business is
 1457  increasingly conducted through groups of commonly owned
 1458  corporations. Therefore, the Legislature intends to more
 1459  accurately measure the business activities of corporations by
 1460  adopting a combined system of income tax reporting.
 1461         Section 25. Paragraph (z) of subsection (1) of section
 1462  220.03, Florida Statutes, is amended, and paragraphs (gg) and
 1463  (hh) are added to that subsection, to read:
 1464         220.03 Definitions.—
 1465         (1) SPECIFIC TERMS.—When used in this code, and when not
 1466  otherwise distinctly expressed or manifestly incompatible with
 1467  the intent thereof, the following terms shall have the following
 1468  meanings:
 1469         (z) “Taxpayer” means any corporation subject to the tax
 1470  imposed by this code, and includes all corporations that are
 1471  members of a water’s edge group for which a consolidated return
 1472  is filed under s. 220.131. However, “taxpayer” does not include
 1473  a corporation having no individuals (including individuals
 1474  employed by an affiliate) receiving compensation in this state
 1475  as defined in s. 220.15 when the only property owned or leased
 1476  by said corporation (including an affiliate) in this state is
 1477  located at the premises of a printer with which it has
 1478  contracted for printing, if such property consists of the final
 1479  printed product, property which becomes a part of the final
 1480  printed product, or property from which the printed product is
 1481  produced.
 1482         (gg) “Tax haven” means a jurisdiction that, for a
 1483  particular tax year:
 1484         1. Is identified by the Organization for Economic Co
 1485  operation and Development as a tax haven or as having a harmful
 1486  preferential tax regime; or
 1487         2.a. Is a jurisdiction that does not impose or imposes only
 1488  a nominal, effective tax on relevant income;
 1489         b. Has laws or practices that prevent the effective
 1490  exchange of information for tax purposes with other governments
 1491  regarding taxpayers who are subject to, or benefiting from, the
 1492  tax regime;
 1493         c. Lacks transparency;
 1494         d. Facilitates the establishment of foreign-owned entities
 1495  without the need for a local substantive presence or prohibits
 1496  these entities from having any commercial impact on the local
 1497  economy;
 1498         e. Explicitly or implicitly excludes the jurisdiction’s
 1499  resident taxpayers from taking advantage of the tax regime’s
 1500  benefits or prohibits enterprises that benefit from the regime
 1501  from operating in the jurisdiction’s domestic market; or
 1502         f. Has created a tax regime that is favorable for tax
 1503  avoidance, based upon an overall assessment of relevant factors,
 1504  including whether the jurisdiction has a significant untaxed
 1505  offshore financial or other services sector relative to its
 1506  overall economy.
 1507  
 1508  For purposes of this paragraph, a tax regime lacks transparency
 1509  if the details of legislative, legal, or administrative
 1510  requirements are not open to public scrutiny and apparent, or
 1511  are not consistently applied among similarly situated taxpayers.
 1512  As used in this paragraph, the term “tax regime” means a set or
 1513  system of rules, laws, regulations, or practices by which taxes
 1514  are imposed on any person, corporation, or entity, or on any
 1515  income, property, incident, indicia, or activity pursuant to
 1516  government authority.
 1517         (hh) “Water’s edge group” means a group of corporations
 1518  related through common ownership whose business activities are
 1519  integrated with, dependent upon, or contribute to a flow of
 1520  value among members of the group.
 1521         Section 26. Subsection (1) of section 220.13, Florida
 1522  Statutes, is amended to read:
 1523         220.13 “Adjusted federal income” defined.—
 1524         (1) The term “adjusted federal income” means an amount
 1525  equal to the taxpayer’s taxable income as defined in subsection
 1526  (2), or such taxable income of more than one taxpayer as
 1527  provided in s. 220.1363 s. 220.131, for the taxable year,
 1528  adjusted as follows:
 1529         (a) Additions.—There shall be added to such taxable income:
 1530         1. The amount of any tax upon or measured by income,
 1531  excluding taxes based on gross receipts or revenues, paid or
 1532  accrued as a liability to the District of Columbia or any state
 1533  of the United States which is deductible from gross income in
 1534  the computation of taxable income for the taxable year.
 1535         2. The amount of interest which is excluded from taxable
 1536  income under s. 103(a) of the Internal Revenue Code or any other
 1537  federal law, less the associated expenses disallowed in the
 1538  computation of taxable income under s. 265 of the Internal
 1539  Revenue Code or any other law, excluding 60 percent of any
 1540  amounts included in alternative minimum taxable income, as
 1541  defined in s. 55(b)(2) of the Internal Revenue Code, if the
 1542  taxpayer pays tax under s. 220.11(3).
 1543         3. In the case of a regulated investment company or real
 1544  estate investment trust, an amount equal to the excess of the
 1545  net long-term capital gain for the taxable year over the amount
 1546  of the capital gain dividends attributable to the taxable year.
 1547         4. That portion of the wages or salaries paid or incurred
 1548  for the taxable year which is equal to the amount of the credit
 1549  allowable for the taxable year under s. 220.181. This
 1550  subparagraph shall expire on the date specified in s. 290.016
 1551  for the expiration of the Florida Enterprise Zone Act.
 1552         5. That portion of the ad valorem school taxes paid or
 1553  incurred for the taxable year which is equal to the amount of
 1554  the credit allowable for the taxable year under s. 220.182. This
 1555  subparagraph shall expire on the date specified in s. 290.016
 1556  for the expiration of the Florida Enterprise Zone Act.
 1557         6. The amount of emergency excise tax paid or accrued as a
 1558  liability to this state under chapter 221 which tax is
 1559  deductible from gross income in the computation of taxable
 1560  income for the taxable year.
 1561         7. That portion of assessments to fund a guaranty
 1562  association incurred for the taxable year which is equal to the
 1563  amount of the credit allowable for the taxable year.
 1564         8. In the case of a nonprofit corporation which holds a
 1565  pari-mutuel permit and which is exempt from federal income tax
 1566  as a farmers’ cooperative, an amount equal to the excess of the
 1567  gross income attributable to the pari-mutuel operations over the
 1568  attributable expenses for the taxable year.
 1569         9. The amount taken as a credit for the taxable year under
 1570  s. 220.1895.
 1571         10. Up to nine percent of the eligible basis of any
 1572  designated project which is equal to the credit allowable for
 1573  the taxable year under s. 220.185.
 1574         11. The amount taken as a credit for the taxable year under
 1575  s. 220.187.
 1576         12. The amount taken as a credit for the taxable year under
 1577  s. 220.192.
 1578         13. The amount taken as a credit for the taxable year under
 1579  s. 220.193.
 1580         14. Any portion of a qualified investment, as defined in s.
 1581  288.9913, which is claimed as a deduction by the taxpayer and
 1582  taken as a credit against income tax pursuant to s. 288.9916.
 1583         (b) Subtractions.—
 1584         1. There shall be subtracted from such taxable income:
 1585         a. The net operating loss deduction allowable for federal
 1586  income tax purposes under s. 172 of the Internal Revenue Code
 1587  for the taxable year,
 1588         b. The net capital loss allowable for federal income tax
 1589  purposes under s. 1212 of the Internal Revenue Code for the
 1590  taxable year,
 1591         c. The excess charitable contribution deduction allowable
 1592  for federal income tax purposes under s. 170(d)(2) of the
 1593  Internal Revenue Code for the taxable year, and
 1594         d. The excess contributions deductions allowable for
 1595  federal income tax purposes under s. 404 of the Internal Revenue
 1596  Code for the taxable year.
 1597  
 1598  However, a net operating loss and a capital loss shall never be
 1599  carried back as a deduction to a prior taxable year, but all
 1600  deductions attributable to such losses shall be deemed net
 1601  operating loss carryovers and capital loss carryovers,
 1602  respectively, and treated in the same manner, to the same
 1603  extent, and for the same time periods as are prescribed for such
 1604  carryovers in ss. 172 and 1212, respectively, of the Internal
 1605  Revenue Code. A deduction is not allowed for net operating
 1606  losses, net capital losses, or excess contribution deductions
 1607  under 26 U.S.C. ss. 170(d)(2), 172, 1212, and 404 for a member
 1608  of a water’s edge group that is not a United States member.
 1609  Carryovers of net operating losses, net capital losses, or
 1610  excess contribution deductions under 26 U.S.C. ss. 170(d)(2),
 1611  172, 1212, and 404 may be subtracted only by the member of the
 1612  water’s edge group that generates a carryover.
 1613         2. There shall be subtracted from such taxable income any
 1614  amount to the extent included therein the following:
 1615         a. Dividends treated as received from sources without the
 1616  United States, as determined under s. 862 of the Internal
 1617  Revenue Code.
 1618         b. All amounts included in taxable income under s. 78 or s.
 1619  951 of the Internal Revenue Code.
 1620  
 1621  However, as to any amount subtracted under this subparagraph,
 1622  there shall be added to such taxable income all expenses
 1623  deducted on the taxpayer’s return for the taxable year which are
 1624  attributable, directly or indirectly, to such subtracted amount.
 1625  Further, no amount shall be subtracted with respect to dividends
 1626  paid or deemed paid by a Domestic International Sales
 1627  Corporation.
 1628         3. Amounts received by a member of a water’s edge group as
 1629  dividends paid by another member of the water’s edge group shall
 1630  be subtracted from the taxable income to the extent that the
 1631  dividends are included in the taxable income.
 1632         4.3. In computing “adjusted federal income” for taxable
 1633  years beginning after December 31, 1976, there shall be allowed
 1634  as a deduction the amount of wages and salaries paid or incurred
 1635  within this state for the taxable year for which no deduction is
 1636  allowed pursuant to s. 280C(a) of the Internal Revenue Code
 1637  (relating to credit for employment of certain new employees).
 1638         5.4. There shall be subtracted from such taxable income any
 1639  amount of nonbusiness income included therein.
 1640         6.5. There shall be subtracted any amount of taxes of
 1641  foreign countries allowable as credits for taxable years
 1642  beginning on or after September 1, 1985, under s. 901 of the
 1643  Internal Revenue Code to any corporation which derived less than
 1644  20 percent of its gross income or loss for its taxable year
 1645  ended in 1984 from sources within the United States, as
 1646  described in s. 861(a)(2)(A) of the Internal Revenue Code, not
 1647  including credits allowed under ss. 902 and 960 of the Internal
 1648  Revenue Code, withholding taxes on dividends within the meaning
 1649  of sub-subparagraph 2.a., and withholding taxes on royalties,
 1650  interest, technical service fees, and capital gains.
 1651         7.6. Notwithstanding any other provision of this code,
 1652  except with respect to amounts subtracted pursuant to
 1653  subparagraphs 1. and 4. 3., any increment of any apportionment
 1654  factor which is directly related to an increment of gross
 1655  receipts or income which is deducted, subtracted, or otherwise
 1656  excluded in determining adjusted federal income shall be
 1657  excluded from both the numerator and denominator of such
 1658  apportionment factor. Further, all valuations made for
 1659  apportionment factor purposes shall be made on a basis
 1660  consistent with the taxpayer’s method of accounting for federal
 1661  income tax purposes.
 1662         (c) Installment sales occurring after October 19, 1980.—
 1663         1. In the case of any disposition made after October 19,
 1664  1980, the income from an installment sale shall be taken into
 1665  account for the purposes of this code in the same manner that
 1666  such income is taken into account for federal income tax
 1667  purposes.
 1668         2. Any taxpayer who regularly sells or otherwise disposes
 1669  of personal property on the installment plan and reports the
 1670  income therefrom on the installment method for federal income
 1671  tax purposes under s. 453(a) of the Internal Revenue Code shall
 1672  report such income in the same manner under this code.
 1673         (d) Nonallowable deductions.—A deduction for net operating
 1674  losses, net capital losses, or excess contributions deductions
 1675  under ss. 170(d)(2), 172, 1212, and 404 of the Internal Revenue
 1676  Code which has been allowed in a prior taxable year for Florida
 1677  tax purposes shall not be allowed for Florida tax purposes,
 1678  notwithstanding the fact that such deduction has not been fully
 1679  utilized for federal tax purposes.
 1680         (e) Adjustments related to the Federal Economic Stimulus
 1681  Act of 2008 and the American Recovery and Reinvestment Act of
 1682  2009.—Taxpayers shall be required to make the adjustments
 1683  prescribed in this paragraph for Florida tax purposes in
 1684  relation to certain tax benefits received pursuant to the
 1685  Economic Stimulus Act of 2008 and the American Recovery and
 1686  Reinvestment Act of 2009.
 1687         1. There shall be added to such taxable income an amount
 1688  equal to 100 percent of any amount deducted for federal income
 1689  tax purposes as bonus depreciation for the taxable year pursuant
 1690  to ss. 167 and 168(k) of the Internal Revenue Code of 1986, as
 1691  amended by s. 103 of Pub. L. No. 110-185 and s. 1201 of Pub. L.
 1692  No. 111-5, for property placed in service after December 31,
 1693  2007, and before January 1, 2010. For the taxable year and for
 1694  each of the 6 subsequent taxable years, there shall be
 1695  subtracted from such taxable income an amount equal to one
 1696  seventh of the amount by which taxable income was increased
 1697  pursuant to this subparagraph, notwithstanding any sale or other
 1698  disposition of the property that is the subject of the
 1699  adjustments and regardless of whether such property remains in
 1700  service in the hands of the taxpayer.
 1701         2. There shall be added to such taxable income an amount
 1702  equal to 100 percent of any amount in excess of $128,000
 1703  deducted for federal income tax purposes for the taxable year
 1704  pursuant to s. 179 of the Internal Revenue Code of 1986, as
 1705  amended by s. 102 of Pub. L. No. 110-185 and s. 1202 of Pub. L.
 1706  No. 111-5, for taxable years beginning after December 31, 2007,
 1707  and before January 1, 2010. For the taxable year and for each of
 1708  the 6 subsequent taxable years, there shall be subtracted from
 1709  such taxable income one-seventh of the amount by which taxable
 1710  income was increased pursuant to this subparagraph,
 1711  notwithstanding any sale or other disposition of the property
 1712  that is the subject of the adjustments and regardless of whether
 1713  such property remains in service in the hands of the taxpayer.
 1714         3. There shall be added to such taxable income an amount
 1715  equal to the amount of deferred income not included in such
 1716  taxable income pursuant to s. 108(i)(1) of the Internal Revenue
 1717  Code of 1986, as amended by s. 1231 of Pub. L. No. 111-5. There
 1718  shall be subtracted from such taxable income an amount equal to
 1719  the amount of deferred income included in such taxable income
 1720  pursuant to s. 108(i)(1) of the Internal Revenue Code of 1986,
 1721  as amended by s. 1231 of Pub. L. No. 111-5.
 1722         4. Subtractions available under this paragraph may be
 1723  transferred to the surviving or acquiring entity following a
 1724  merger or acquisition and used in the same manner and with the
 1725  same limitations as specified by this paragraph.
 1726         5. The additions and subtractions specified in this
 1727  paragraph are intended to adjust taxable income for Florida tax
 1728  purposes, and, notwithstanding any other provision of this code,
 1729  such additions and subtractions shall be permitted to change a
 1730  taxpayer’s net operating loss for Florida tax purposes.
 1731         Section 27. Section 220.136, Florida Statutes, is created
 1732  to read:
 1733         220.136 Determination of the members of a water’s edge
 1734  group.—
 1735         (1) MEMBERSHIP RULES.—
 1736         (a) A corporation having 50 percent or more of its
 1737  outstanding voting stock directly or indirectly owned or
 1738  controlled by a water’s edge group is presumed to be a member of
 1739  the group. A corporation having less than 50 percent of its
 1740  outstanding voting stock directly or indirectly controlled by a
 1741  water’s edge group is a member of the group if the businesses
 1742  activities of the corporation show that the corporation is a
 1743  member of the group. All of the income of a corporation that is
 1744  a member of a water’s edge group is presumed to be unitary.
 1745         (b) A corporation that conducts business outside the United
 1746  States is not a member of a water’s edge group if 80 percent or
 1747  more of the corporation’s property and payroll, as determined by
 1748  the apportionment factors described in ss. 220.15 and 220.1363,
 1749  may be assigned to locations outside the United States. However,
 1750  such corporations that are incorporated in a tax haven may be a
 1751  member of a water’s edge group pursuant to paragraph (a). This
 1752  paragraph does not exempt a corporation that is not a member of
 1753  a water’s edge group from the provisions of this chapter.
 1754         (2) MEMBERSHIP EVALUATION CRITERIA.—
 1755         (a) The attribution rules of 26 U.S.C. 318 shall be used to
 1756  determine whether voting stock is owned indirectly.
 1757         (b) As used in this paragraph, the term “United States”
 1758  means the 50 states, the District of Columbia, and Puerto Rico.
 1759         (c) The apportionment factors described in ss. 220.15 and
 1760  220.1363 shall be used to determine whether a special industry
 1761  corporation has engaged in a sufficient amount of activities
 1762  outside the United States to exclude it from treatment as a
 1763  member of a water’s edge group.
 1764         Section 28. Section 220.1363, Florida Statutes, is created
 1765  to read:
 1766         220.1363 Water’s edge groups; special requirements.—
 1767         (1) All members of a water’s edge group must use the
 1768  water’s edge reporting method. Under the water’s edge reporting
 1769  method:
 1770         (a) Adjusted federal income for purposes of s. 220.12 means
 1771  the sum of adjusted federal income for all members of the group
 1772  as determined for a concurrent tax year.
 1773         (b) The numerators and denominators of the apportionment
 1774  factors shall be calculated for all members of the group
 1775  combined.
 1776         (c) Intercompany sales transactions between members of the
 1777  group are not included in the numerator or denominator of the
 1778  sales factor pursuant to ss. 220.15 and 220.151, regardless of
 1779  whether indicia of a sale exist. As used in this subsection, the
 1780  term “sale” includes, but is not limited to, loans, payments for
 1781  the use of intangibles, dividends, and management fees.
 1782         (d) For sales of intangibles, including, but not limited
 1783  to, accounts receivable, notes, bonds, and stock, which are made
 1784  to entities outside of the group, only the net proceeds are
 1785  included in the numerator and denominator of the sales factor.
 1786         (e) Sales that are not allocated or apportioned to any
 1787  taxing jurisdiction, otherwise known as “nowhere sales,” may not
 1788  be included in the numerator or denominator of the sales factor.
 1789         (f) The income attributable to the activities in this state
 1790  of a corporation that is exempt from taxation under Pub. L. No.
 1791  86-272 is excluded from the apportionment factor numerators in
 1792  the calculation of corporate income tax even if another member
 1793  of the water’s edge group has nexus with this state and is
 1794  subject to tax.
 1795         (g) For purposes of this section, the term “water’s edge
 1796  reporting method” is a method to determine the taxable business
 1797  profits of a group of entities conducting a unitary business.
 1798  Under this method, the net income of the entities must be added
 1799  together along with the additions and subtractions under s.
 1800  220.13 and apportioned to this state as a single taxpayer under
 1801  s. 220.15 and 220.151. However, each special industry member
 1802  included in a water’s edge group return, which would otherwise
 1803  be permitted to use a special method of apportionment under s.
 1804  220.151, shall convert its single-factor apportionment to a
 1805  three-factor apportionment of property, payroll, and sales. The
 1806  special industry member shall calculate the denominator of its
 1807  property, payroll, and sales factors in the same manner as those
 1808  denominators are calculated by members that are not a special
 1809  industry member. The numerator of its sales, property, and
 1810  payroll factors is the product of the denominator of each factor
 1811  multiplied by the premiums or revenue-miles-factor ratio
 1812  otherwise applicable under s. 220.151.
 1813         (2)(a) A single water’s edge group return must be filed in
 1814  the name and federal employer identification number of the
 1815  parent corporation if the parent is a member of the group and
 1816  has nexus with this state. If the group does not have a parent
 1817  corporation, if the parent corporation is not a member of the
 1818  group, or if the parent corporation does not have nexus with
 1819  this state, the members of the group must choose a member
 1820  subject to the Florida corporate income tax to file the return.
 1821  The members of the group may not choose another member to file a
 1822  corporate income tax return in subsequent years unless the
 1823  filing member does not maintain nexus with this state or remain
 1824  a member of that group. The return must be signed by an
 1825  authorized officer of the filing member as the agent for the
 1826  group.
 1827         (b) If members of a water’s edge group have different tax
 1828  years, the tax year of a majority of the members of the group is
 1829  the tax year of the group. If the tax years of a majority of the
 1830  members of a group do not correspond, the tax year of the member
 1831  that must file the return for the group is the tax year of the
 1832  group.
 1833         (c)1. A member of a water’s edge group having a tax year
 1834  that does not correspond to the tax year of the group shall
 1835  determine its income for inclusion on the tax return for the
 1836  group. The member shall use:
 1837         a. The precise amount of taxable income received during the
 1838  months corresponding to the tax year of the group, if the
 1839  precise amount can be readily determined from the member’s books
 1840  and records.
 1841         b. The taxable income of the member converted to conform to
 1842  the tax year of the group on the basis of the number of months
 1843  falling within the tax year of the group. For example, if the
 1844  tax year of the water’s edge group is a calendar year and a
 1845  member operates on a fiscal year ending on April 30, the income
 1846  of the member shall include 8/12 of the income from the current
 1847  tax year and 4/12 of the income from the preceding tax year.
 1848  This method to determine the income of a member may be used only
 1849  if the return can be timely filed after the end of the tax year
 1850  of the group.
 1851         c. The taxable income of the member during its tax year
 1852  that ends within the tax year of the group.
 1853         2. The method of determining the income of a member of a
 1854  group whose tax year does not correspond to the tax year of the
 1855  group may not change as long as the member remains a member of
 1856  the group. The apportionment factors for the member must be
 1857  applied to the income of the member for the tax year of the
 1858  group.
 1859         (3)(a) A water’s edge group return shall include a
 1860  computational schedule that:
 1861         1. Combines the federal income of all members of the
 1862  water’s edge group;
 1863         2. Shows all intercompany eliminations;
 1864         3. Shows Florida additions and subtractions under s.
 1865  220.13; and
 1866         4. Shows the calculation of the combined apportionment
 1867  factors.
 1868         (b) A water’s edge group shall also file a domestic
 1869  disclosure spreadsheet in addition to its return. The
 1870  spreadsheet shall fully disclose:
 1871         1. The income reported to each state.
 1872         2. The state tax liability.
 1873         3. The method used for apportioning or allocating income to
 1874  the various states.
 1875         4. Other information required by the department by rule in
 1876  order to determine the proper amount of tax due to each state
 1877  and to identify the water’s edge group.
 1878         (4) The department may adopt rules and forms to administer
 1879  this section. The Legislature intends to grant the department
 1880  extensive authority to adopt rules and forms describing and
 1881  defining principles for determining the existence of a water’s
 1882  edge business, definitions of common control, methods of
 1883  reporting, and related forms, principles, and other definitions.
 1884         Section 29. Section 220.14, Florida Statutes, is amended to
 1885  read:
 1886         220.14 Exemption.—
 1887         (1) In computing a taxpayer’s liability for tax under this
 1888  code, there shall be exempt from the tax $5,000 of net income as
 1889  defined in s. 220.12 or such lesser amount as will, without
 1890  increasing the taxpayer’s federal income tax liability, provide
 1891  the state with an amount under this code which is equal to the
 1892  maximum federal income tax credit which may be available from
 1893  time to time under federal law.
 1894         (2) In the case of a taxable year for a period of less than
 1895  12 months, the exemption allowed by this section shall be
 1896  prorated on the basis of the number of days in such year to 365,
 1897  or in the case of a leap year, to 366.
 1898         (3) Only one exemption shall be allowed to taxpayers filing
 1899  a water’s edge group a consolidated return under this code.
 1900         (4) Notwithstanding any other provision of this code, not
 1901  more than one exemption under this section may be allowed to the
 1902  Florida members of a controlled group of corporations, as
 1903  defined in s. 1563 of the Internal Revenue Code with respect to
 1904  taxable years ending on or after December 31, 1970, filing
 1905  separate returns under this code. The exemption described in
 1906  this section shall be divided equally among such Florida members
 1907  of the group, unless all of such members consent, at such time
 1908  and in such manner as the department shall by regulation
 1909  prescribe, to an apportionment plan providing for an unequal
 1910  allocation of such exemption.
 1911         Section 30. Subsection (5) of section 220.15, Florida
 1912  Statutes, is amended to read:
 1913         220.15 Apportionment of adjusted federal income.—
 1914         (5) The sales factor is a fraction the numerator of which
 1915  is the total sales of the taxpayer in this state during the
 1916  taxable year or period and the denominator of which is the total
 1917  sales of the taxpayer everywhere during the taxable year or
 1918  period.
 1919         (a) As used in this subsection, the term “sales” means all
 1920  gross receipts of the taxpayer except interest, dividends,
 1921  rents, royalties, and gross receipts from the sale, exchange,
 1922  maturity, redemption, or other disposition of securities.
 1923  However:
 1924         1. Rental income is included in the term if a significant
 1925  portion of the taxpayer’s business consists of leasing or
 1926  renting real or tangible personal property; and
 1927         2. Royalty income is included in the term if a significant
 1928  portion of the taxpayer’s business consists of dealing in or
 1929  with the production, exploration, or development of minerals.
 1930         (b)1. Sales of tangible personal property occur in this
 1931  state if the property is delivered or shipped to a purchaser
 1932  within this state, regardless of the f.o.b. point, other
 1933  conditions of the sale, or ultimate destination of the property,
 1934  unless shipment is made via a common or contract carrier.
 1935  However, for industries in NAICS National Number 311411, if the
 1936  ultimate destination of the product is to a location outside
 1937  this state, regardless of the method of shipment or f.o.b.
 1938  point, the sale shall not be deemed to occur in this state. As
 1939  used in this paragraph, “NAICS” means those classifications
 1940  contained in the North American Industry Classification System,
 1941  as published in 2007 by the Office of Management and Budget,
 1942  Executive Office of the President.
 1943         2. When citrus fruit is delivered by a cooperative for a
 1944  grower-member, by a grower-member to a cooperative, or by a
 1945  grower-participant to a Florida processor, the sales factor for
 1946  the growers for such citrus fruit delivered to such processor
 1947  shall be the same as the sales factor for the most recent
 1948  taxable year of that processor. That sales factor, expressed
 1949  only as a percentage and not in terms of the dollar volume of
 1950  sales, so as to protect the confidentiality of the sales of the
 1951  processor, shall be furnished on the request of such a grower
 1952  promptly after it has been determined for that taxable year.
 1953         3. Reimbursement of expenses under an agency contract
 1954  between a cooperative, a grower-member of a cooperative, or a
 1955  grower and a processor is not a sale within this state.
 1956         (c) Sales of a financial organization, including, but not
 1957  limited to, banking and savings institutions, investment
 1958  companies, real estate investment trusts, and brokerage
 1959  companies, occur in this state if derived from:
 1960         1. Fees, commissions, or other compensation for financial
 1961  services rendered within this state;
 1962         2. Gross profits from trading in stocks, bonds, or other
 1963  securities managed within this state;
 1964         3. Interest received within this state, other than interest
 1965  from loans secured by mortgages, deeds of trust, or other liens
 1966  upon real or tangible personal property located without this
 1967  state, and dividends received within this state;
 1968         4. Interest charged to customers at places of business
 1969  maintained within this state for carrying debit balances of
 1970  margin accounts, without deduction of any costs incurred in
 1971  carrying such accounts;
 1972         5. Interest, fees, commissions, or other charges or gains
 1973  from loans secured by mortgages, deeds of trust, or other liens
 1974  upon real or tangible personal property located in this state or
 1975  from installment sale agreements originally executed by a
 1976  taxpayer or the taxpayer’s agent to sell real or tangible
 1977  personal property located in this state;
 1978         6. Rents from real or tangible personal property located in
 1979  this state; or
 1980         7. Any other gross income, including other interest,
 1981  resulting from the operation as a financial organization within
 1982  this state.
 1983  
 1984  In computing the amounts under this paragraph, any amount
 1985  received by a member of an affiliated group (determined under s.
 1986  1504(a) of the Internal Revenue Code, but without reference to
 1987  whether any such corporation is an “includable corporation”
 1988  under s. 1504(b) of the Internal Revenue Code) from another
 1989  member of such group shall be included only to the extent such
 1990  amount exceeds expenses of the recipient directly related
 1991  thereto.
 1992         Section 31. Subsection (1) of section 220.183, Florida
 1993  Statutes, is amended to read:
 1994         220.183 Community contribution tax credit.—
 1995         (1) AUTHORIZATION TO GRANT COMMUNITY CONTRIBUTION TAX
 1996  CREDITS; LIMITATIONS ON INDIVIDUAL CREDITS AND PROGRAM
 1997  SPENDING.—
 1998         (a) There shall be allowed a credit of 50 percent of a
 1999  community contribution against any tax due for a taxable year
 2000  under this chapter.
 2001         (b) No business firm shall receive more than $200,000 in
 2002  annual tax credits for all approved community contributions made
 2003  in any one year.
 2004         (c) The total amount of tax credit which may be granted for
 2005  all programs approved under this section, s. 212.08(5)(p), and
 2006  s. 624.5105 is $10.5 million annually for projects that provide
 2007  homeownership opportunities for low-income or very-low-income
 2008  households as defined in s. 420.9071(19) and (28) and $3.5
 2009  million annually for all other projects.
 2010         (d) All proposals for the granting of the tax credit shall
 2011  require the prior approval of the Office of Tourism, Trade, and
 2012  Economic Development.
 2013         (e) If the credit granted pursuant to this section is not
 2014  fully used in any one year because of insufficient tax liability
 2015  on the part of the business firm, the unused amount may be
 2016  carried forward for a period not to exceed 5 years. The
 2017  carryover credit may be used in a subsequent year when the tax
 2018  imposed by this chapter for such year exceeds the credit for
 2019  such year under this section after applying the other credits
 2020  and unused credit carryovers in the order provided in s.
 2021  220.02(8).
 2022         (f) A taxpayer who files a Florida consolidated return as a
 2023  member of an affiliated group pursuant to s. 220.131(1) may be
 2024  allowed the credit on a consolidated return basis.
 2025         (f)(g) A taxpayer who is eligible to receive the credit
 2026  provided for in s. 624.5105 is not eligible to receive the
 2027  credit provided by this section.
 2028         (g)(h) Notwithstanding paragraph (c), and for the 2008-2009
 2029  fiscal year only, the total amount of tax credit which may be
 2030  granted for all programs approved under this section, s.
 2031  212.08(5)(p), and s. 624.5105 is $13 million annually for
 2032  projects that provide homeownership opportunities for low-income
 2033  or very-low-income households as defined in s. 420.9071(19) and
 2034  (28) and $3.5 million annually for all other projects. This
 2035  paragraph expires June 30, 2009.
 2036         Section 32. Subsection (1) of section 220.1845, Florida
 2037  Statutes, is amended to read:
 2038         220.1845 Contaminated site rehabilitation tax credit.—
 2039         (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.—
 2040         (a) A credit in the amount of 50 percent of the costs of
 2041  voluntary cleanup activity that is integral to site
 2042  rehabilitation at the following sites is available against any
 2043  tax due for a taxable year under this chapter:
 2044         1. A drycleaning-solvent-contaminated site eligible for
 2045  state-funded site rehabilitation under s. 376.3078(3);
 2046         2. A drycleaning-solvent-contaminated site at which site
 2047  rehabilitation is undertaken by the real property owner pursuant
 2048  to s. 376.3078(11), if the real property owner is not also, and
 2049  has never been, the owner or operator of the drycleaning
 2050  facility where the contamination exists; or
 2051         3. A brownfield site in a designated brownfield area under
 2052  s. 376.80.
 2053         (b) A tax credit applicant, or multiple tax credit
 2054  applicants working jointly to clean up a single site, may not be
 2055  granted more than $500,000 per year in tax credits for each site
 2056  voluntarily rehabilitated. Multiple tax credit applicants shall
 2057  be granted tax credits in the same proportion as their
 2058  contribution to payment of cleanup costs. Subject to the same
 2059  conditions and limitations as provided in this section, a
 2060  municipality, county, or other tax credit applicant which
 2061  voluntarily rehabilitates a site may receive not more than
 2062  $500,000 per year in tax credits which it can subsequently
 2063  transfer subject to the provisions in paragraph (f) (g).
 2064         (c) If the credit granted under this section is not fully
 2065  used in any one year because of insufficient tax liability on
 2066  the part of the corporation, the unused amount may be carried
 2067  forward for up to 5 years. The carryover credit may be used in a
 2068  subsequent year if the tax imposed by this chapter for that year
 2069  exceeds the credit for which the corporation is eligible in that
 2070  year after applying the other credits and unused carryovers in
 2071  the order provided by s. 220.02(8). If during the 5-year period
 2072  the credit is transferred, in whole or in part, pursuant to
 2073  paragraph (f) (g), each transferee has 5 years after the date of
 2074  transfer to use its credit.
 2075         (d) A taxpayer that files a consolidated return in this
 2076  state as a member of an affiliated group under s. 220.131(1) may
 2077  be allowed the credit on a consolidated return basis up to the
 2078  amount of tax imposed upon the consolidated group.
 2079         (d)(e) A tax credit applicant that receives state-funded
 2080  site rehabilitation under s. 376.3078(3) for rehabilitation of a
 2081  drycleaning-solvent-contaminated site is ineligible to receive
 2082  credit under this section for costs incurred by the tax credit
 2083  applicant in conjunction with the rehabilitation of that site
 2084  during the same time period that state-administered site
 2085  rehabilitation was underway.
 2086         (e)(f) The total amount of the tax credits which may be
 2087  granted under this section is $2 million annually.
 2088         (f)(g)1. Tax credits that may be available under this
 2089  section to an entity eligible under s. 376.30781 may be
 2090  transferred after a merger or acquisition to the surviving or
 2091  acquiring entity and used in the same manner and with the same
 2092  limitations.
 2093         2. The entity or its surviving or acquiring entity as
 2094  described in subparagraph 1., may transfer any unused credit in
 2095  whole or in units of at least 25 percent of the remaining
 2096  credit. The entity acquiring such credit may use it in the same
 2097  manner and with the same limitation as described in this
 2098  section. Such transferred credits may not be transferred again
 2099  although they may succeed to a surviving or acquiring entity
 2100  subject to the same conditions and limitations as described in
 2101  this section.
 2102         3. If the credit is reduced due to a determination by the
 2103  Department of Environmental Protection or an examination or
 2104  audit by the Department of Revenue, the tax deficiency shall be
 2105  recovered from the first entity, or the surviving or acquiring
 2106  entity that claimed the credit up to the amount of credit taken.
 2107  Any subsequent deficiencies shall be assessed against the entity
 2108  acquiring and claiming the credit, or in the case of multiple
 2109  succeeding entities in the order of credit succession.
 2110         (g)(h) In order to encourage completion of site
 2111  rehabilitation at contaminated sites being voluntarily cleaned
 2112  up and eligible for a tax credit under this section, the tax
 2113  credit applicant may claim an additional 25 percent of the total
 2114  cleanup costs, not to exceed $500,000, in the final year of
 2115  cleanup as evidenced by the Department of Environmental
 2116  Protection issuing a “No Further Action” order for that site.
 2117         (h)(i) In order to encourage the construction of housing
 2118  that meets the definition of affordable provided in s. 420.0004,
 2119  an applicant for the tax credit may claim an additional 25
 2120  percent of the total site rehabilitation costs that are eligible
 2121  for tax credits under this section, not to exceed $500,000. In
 2122  order to receive this additional tax credit, the applicant must
 2123  provide a certification letter from the Florida Housing Finance
 2124  Corporation, the local housing authority, or other governmental
 2125  agency that is a party to the use agreement indicating that the
 2126  construction on the brownfield site has received a certificate
 2127  of occupancy and the brownfield site has a properly recorded
 2128  instrument that limits the use of the property to housing that
 2129  meets the definition of affordable provided in s. 420.0004.
 2130         (i)(j) In order to encourage the redevelopment of a
 2131  brownfield site, as defined in the brownfield site
 2132  rehabilitation agreement, that is hindered by the presence of
 2133  solid waste, as defined in s. 403.703, a tax credit applicant,
 2134  or multiple tax credit applicants working jointly to clean up a
 2135  single brownfield site, may also claim costs required to address
 2136  solid waste removal as defined in this paragraph in accordance
 2137  with rules of the Department of Environmental Protection.
 2138  Multiple tax credit applicants shall be granted tax credits in
 2139  the same proportion as each applicant’s contribution to payment
 2140  of solid waste removal costs. These costs are eligible for a tax
 2141  credit provided the applicant submits an affidavit stating that,
 2142  after consultation with appropriate local government officials
 2143  and the Department of Environmental Protection, to the best of
 2144  the applicant’s knowledge according to such consultation and
 2145  available historical records, the brownfield site was never
 2146  operated as a permitted solid waste disposal area or was never
 2147  operated for monetary compensation and the applicant submits all
 2148  other documentation and certifications required by this section.
 2149  Under this section, wherever reference is made to “site
 2150  rehabilitation,” the Department of Environmental Protection
 2151  shall instead consider whether or not the costs claimed are for
 2152  solid waste removal. Tax credit applications claiming costs
 2153  pursuant to this paragraph shall not be subject to the calendar
 2154  year limitation and January 31 annual application deadline, and
 2155  the Department of Environmental Protection shall accept a one
 2156  time application filed subsequent to the completion by the tax
 2157  credit applicant of the applicable requirements listed in this
 2158  section. A tax credit applicant may claim 50 percent of the cost
 2159  for solid waste removal, not to exceed $500,000, after the
 2160  applicant has determined solid waste removal is completed for
 2161  the brownfield site. A solid waste removal tax credit
 2162  application may be filed only once per brownfield site. For the
 2163  purposes of this section, the term:
 2164         1. “Solid waste disposal area” means a landfill, dump, or
 2165  other area where solid waste has been disposed of.
 2166         2. “Monetary compensation” means the fees that were charged
 2167  or the assessments that were levied for the disposal of solid
 2168  waste at a solid waste disposal area.
 2169         3. “Solid waste removal” means removal of solid waste from
 2170  the land surface or excavation of solid waste from below the
 2171  land surface and removal of the solid waste from the brownfield
 2172  site. The term also includes:
 2173         a. Transportation of solid waste to a licensed or exempt
 2174  solid waste management facility or to a temporary storage area.
 2175         b. Sorting or screening of solid waste prior to removal
 2176  from the site.
 2177         c. Deposition of solid waste at a permitted or exempt solid
 2178  waste management facility, whether the solid waste is disposed
 2179  of or recycled.
 2180         (j)(k) In order to encourage the construction and operation
 2181  of a new health care facility as defined in s. 408.032 or s.
 2182  408.07, or a health care provider as defined in s. 408.07 or s.
 2183  408.7056, on a brownfield site, an applicant for a tax credit
 2184  may claim an additional 25 percent of the total site
 2185  rehabilitation costs, not to exceed $500,000, if the applicant
 2186  meets the requirements of this paragraph. In order to receive
 2187  this additional tax credit, the applicant must provide
 2188  documentation indicating that the construction of the health
 2189  care facility or health care provider by the applicant on the
 2190  brownfield site has received a certificate of occupancy or a
 2191  license or certificate has been issued for the operation of the
 2192  health care facility or health care provider.
 2193         Section 33. Effective January 1, 2011, subsection (1) of
 2194  section 220.1845, Florida Statutes, as amended by this act, and
 2195  subsection (3) of that section, are amended to read:
 2196         220.1845 Contaminated site rehabilitation tax credit.—
 2197         (1) AUTHORIZATION FOR TAX CREDIT; LIMITATIONS.—
 2198         (a) A credit in the amount of 50 percent of the costs of
 2199  voluntary cleanup activity that is integral to site
 2200  rehabilitation at the following sites is available against any
 2201  tax due for a taxable year under this chapter:
 2202         1. A drycleaning-solvent-contaminated site eligible for
 2203  state-funded site rehabilitation under s. 376.3078(3);
 2204         2. A drycleaning-solvent-contaminated site at which site
 2205  rehabilitation is undertaken by the real property owner pursuant
 2206  to s. 376.3078(11), if the real property owner is not also, and
 2207  has never been, the owner or operator of the drycleaning
 2208  facility where the contamination exists; or
 2209         3. A brownfield site in a designated brownfield area under
 2210  s. 376.80.
 2211         (b) A tax credit applicant, or multiple tax credit
 2212  applicants working jointly to clean up a single site, may not be
 2213  granted more than $500,000 per year in tax credits for each site
 2214  voluntarily rehabilitated. Multiple tax credit applicants shall
 2215  be granted tax credits in the same proportion as their
 2216  contribution to payment of cleanup costs. Subject to the same
 2217  conditions and limitations as provided in this section, a
 2218  municipality, county, or other tax credit applicant which
 2219  voluntarily rehabilitates a site may receive not more than
 2220  $500,000 per year in tax credits which it can subsequently
 2221  transfer subject to the provisions in paragraph (g) (f).
 2222         (c) If the credit granted under this section is not fully
 2223  used in any one year because of insufficient tax liability on
 2224  the part of the corporation, the unused amount may be carried
 2225  forward for up to 5 years. The carryover credit may be used in a
 2226  subsequent year if the tax imposed by this chapter for that year
 2227  exceeds the credit for which the corporation is eligible in that
 2228  year after applying the other credits and unused carryovers in
 2229  the order provided by s. 220.02(8). If during the 5-year period
 2230  the credit is transferred, in whole or in part, pursuant to
 2231  paragraph (g) (f), each transferee has 5 years after the date of
 2232  transfer to use its credit.
 2233         (d) A taxpayer that receives credit under s. 199.10555 is
 2234  ineligible to receive credit under this section in a given tax
 2235  year.
 2236         (e)(d) A tax credit applicant that receives state-funded
 2237  site rehabilitation under s. 376.3078(3) for rehabilitation of a
 2238  drycleaning-solvent-contaminated site is ineligible to receive
 2239  credit under this section for costs incurred by the tax credit
 2240  applicant in conjunction with the rehabilitation of that site
 2241  during the same time period that state-administered site
 2242  rehabilitation was underway.
 2243         (f)(e) The total amount of the tax credits which may be
 2244  granted under this section and s. 199.10555 is $2 million
 2245  annually.
 2246         (g)(f)1. Tax credits that may be available under this
 2247  section to an entity eligible under s. 376.30781 may be
 2248  transferred after a merger or acquisition to the surviving or
 2249  acquiring entity and used in the same manner and with the same
 2250  limitations.
 2251         2. The entity or its surviving or acquiring entity as
 2252  described in subparagraph 1., may transfer any unused credit in
 2253  whole or in units of at least 25 percent of the remaining
 2254  credit. The entity acquiring such credit may use it in the same
 2255  manner and with the same limitation as described in this
 2256  section. Such transferred credits may not be transferred again
 2257  although they may succeed to a surviving or acquiring entity
 2258  subject to the same conditions and limitations as described in
 2259  this section.
 2260         3. If the credit is reduced due to a determination by the
 2261  Department of Environmental Protection or an examination or
 2262  audit by the Department of Revenue, the tax deficiency shall be
 2263  recovered from the first entity, or the surviving or acquiring
 2264  entity that claimed the credit up to the amount of credit taken.
 2265  Any subsequent deficiencies shall be assessed against the entity
 2266  acquiring and claiming the credit, or in the case of multiple
 2267  succeeding entities in the order of credit succession.
 2268         (h)(g) In order to encourage completion of site
 2269  rehabilitation at contaminated sites being voluntarily cleaned
 2270  up and eligible for a tax credit under this section, the tax
 2271  credit applicant may claim an additional 25 percent of the total
 2272  cleanup costs, not to exceed $500,000, in the final year of
 2273  cleanup as evidenced by the Department of Environmental
 2274  Protection issuing a “No Further Action” order for that site.
 2275         (i)(h) In order to encourage the construction of housing
 2276  that meets the definition of affordable provided in s. 420.0004,
 2277  an applicant for the tax credit may claim an additional 25
 2278  percent of the total site rehabilitation costs that are eligible
 2279  for tax credits under this section, not to exceed $500,000. In
 2280  order to receive this additional tax credit, the applicant must
 2281  provide a certification letter from the Florida Housing Finance
 2282  Corporation, the local housing authority, or other governmental
 2283  agency that is a party to the use agreement indicating that the
 2284  construction on the brownfield site has received a certificate
 2285  of occupancy and the brownfield site has a properly recorded
 2286  instrument that limits the use of the property to housing that
 2287  meets the definition of affordable provided in s. 420.0004.
 2288         (j)(i) In order to encourage the redevelopment of a
 2289  brownfield site, as defined in the brownfield site
 2290  rehabilitation agreement, that is hindered by the presence of
 2291  solid waste, as defined in s. 403.703, a tax credit applicant,
 2292  or multiple tax credit applicants working jointly to clean up a
 2293  single brownfield site, may also claim costs required to address
 2294  solid waste removal as defined in this paragraph in accordance
 2295  with rules of the Department of Environmental Protection.
 2296  Multiple tax credit applicants shall be granted tax credits in
 2297  the same proportion as each applicant’s contribution to payment
 2298  of solid waste removal costs. These costs are eligible for a tax
 2299  credit provided the applicant submits an affidavit stating that,
 2300  after consultation with appropriate local government officials
 2301  and the Department of Environmental Protection, to the best of
 2302  the applicant’s knowledge according to such consultation and
 2303  available historical records, the brownfield site was never
 2304  operated as a permitted solid waste disposal area or was never
 2305  operated for monetary compensation and the applicant submits all
 2306  other documentation and certifications required by this section.
 2307  Under this section, wherever reference is made to “site
 2308  rehabilitation,” the Department of Environmental Protection
 2309  shall instead consider whether or not the costs claimed are for
 2310  solid waste removal. Tax credit applications claiming costs
 2311  pursuant to this paragraph shall not be subject to the calendar
 2312  year limitation and January 31 annual application deadline, and
 2313  the Department of Environmental Protection shall accept a one
 2314  time application filed subsequent to the completion by the tax
 2315  credit applicant of the applicable requirements listed in this
 2316  section. A tax credit applicant may claim 50 percent of the cost
 2317  for solid waste removal, not to exceed $500,000, after the
 2318  applicant has determined solid waste removal is completed for
 2319  the brownfield site. A solid waste removal tax credit
 2320  application may be filed only once per brownfield site. For the
 2321  purposes of this section, the term:
 2322         1. “Solid waste disposal area” means a landfill, dump, or
 2323  other area where solid waste has been disposed of.
 2324         2. “Monetary compensation” means the fees that were charged
 2325  or the assessments that were levied for the disposal of solid
 2326  waste at a solid waste disposal area.
 2327         3. “Solid waste removal” means removal of solid waste from
 2328  the land surface or excavation of solid waste from below the
 2329  land surface and removal of the solid waste from the brownfield
 2330  site. The term also includes:
 2331         a. Transportation of solid waste to a licensed or exempt
 2332  solid waste management facility or to a temporary storage area.
 2333         b. Sorting or screening of solid waste prior to removal
 2334  from the site.
 2335         c. Deposition of solid waste at a permitted or exempt solid
 2336  waste management facility, whether the solid waste is disposed
 2337  of or recycled.
 2338         (k)(j) In order to encourage the construction and operation
 2339  of a new health care facility as defined in s. 408.032 or s.
 2340  408.07, or a health care provider as defined in s. 408.07 or s.
 2341  408.7056, on a brownfield site, an applicant for a tax credit
 2342  may claim an additional 25 percent of the total site
 2343  rehabilitation costs, not to exceed $500,000, if the applicant
 2344  meets the requirements of this paragraph. In order to receive
 2345  this additional tax credit, the applicant must provide
 2346  documentation indicating that the construction of the health
 2347  care facility or health care provider by the applicant on the
 2348  brownfield site has received a certificate of occupancy or a
 2349  license or certificate has been issued for the operation of the
 2350  health care facility or health care provider.
 2351         (3) ADMINISTRATION; AUDIT AUTHORITY; TAX CREDIT
 2352  FORFEITURE.—
 2353         (a) The Department of Revenue may adopt rules to prescribe
 2354  any necessary forms required to claim a tax credit under this
 2355  section and to provide the administrative guidelines and
 2356  procedures required to administer this section.
 2357         (b) In addition to its existing audit and investigation
 2358  authority relating to chapter 199 and this chapter, the
 2359  Department of Revenue may perform any additional financial and
 2360  technical audits and investigations, including examining the
 2361  accounts, books, or records of the tax credit applicant, which
 2362  are necessary to verify the site rehabilitation costs included
 2363  in a tax credit return and to ensure compliance with this
 2364  section. The Department of Environmental Protection shall
 2365  provide technical assistance, when requested by the Department
 2366  of Revenue, on any technical audits performed pursuant to this
 2367  section.
 2368         (c) It is grounds for forfeiture of previously claimed and
 2369  received tax credits if the Department of Revenue determines, as
 2370  a result of either an audit or information received from the
 2371  Department of Environmental Protection, that a taxpayer received
 2372  tax credits pursuant to this section to which the taxpayer was
 2373  not entitled. In the case of fraud, the taxpayer shall be
 2374  prohibited from claiming any future tax credits under this
 2375  section or s. 199.10555.
 2376         1. The taxpayer is responsible for returning forfeited tax
 2377  credits to the Department of Revenue, and such funds shall be
 2378  paid into the General Revenue Fund of the state.
 2379         2. The taxpayer shall file with the Department of Revenue
 2380  an amended tax return or such other report as the Department of
 2381  Revenue prescribes by rule and shall pay any required tax within
 2382  60 days after the taxpayer receives notification from the
 2383  Department of Environmental Protection pursuant to s. 376.30781
 2384  that previously approved tax credits have been revoked or
 2385  modified, if uncontested, or within 60 days after a final order
 2386  is issued following proceedings involving a contested revocation
 2387  or modification order.
 2388         3. A notice of deficiency may be issued by the Department
 2389  of Revenue at any time within 5 years after the date the
 2390  taxpayer receives notification from the Department of
 2391  Environmental Protection pursuant to s. 376.30781 that
 2392  previously approved tax credits have been revoked or modified.
 2393  If a taxpayer fails to notify the Department of Revenue of any
 2394  change in its tax credit claimed, a notice of deficiency may be
 2395  issued at any time. In either case, the amount of any proposed
 2396  assessment set forth in such notice of deficiency shall be
 2397  limited to the amount of any deficiency resulting under this
 2398  section from the recomputation of the taxpayer’s tax for the
 2399  taxable year.
 2400         4. Any taxpayer that fails to report and timely pay any tax
 2401  due as a result of the forfeiture of its tax credit is in
 2402  violation of this section and is subject to applicable penalty
 2403  and interest.
 2404         Section 34. Subsection (5) of section 220.187, Florida
 2405  Statutes, is amended to read:
 2406         220.187 Credits for contributions to nonprofit scholarship
 2407  funding organizations.—
 2408         (5) AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX CREDITS;
 2409  LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.—
 2410         (a) There is allowed a credit of 100 percent of an eligible
 2411  contribution against any tax due for a taxable year under this
 2412  chapter. However, such a credit may not exceed 75 percent of the
 2413  tax due under this chapter for the taxable year, after the
 2414  application of any other allowable credits by the taxpayer. The
 2415  credit granted by this section shall be reduced by the
 2416  difference between the amount of federal corporate income tax
 2417  taking into account the credit granted by this section and the
 2418  amount of federal corporate income tax without application of
 2419  the credit granted by this section.
 2420         (b) For each state fiscal year, the total amount of tax
 2421  credits and carryforward of tax credits which may be granted
 2422  under this section and s. 624.51055 is $118 million.
 2423         (c) A taxpayer who files a Florida consolidated return as a
 2424  member of an affiliated group pursuant to s. 220.131(1) may be
 2425  allowed the credit on a consolidated return basis; however, the
 2426  total credit taken by the affiliated group is subject to the
 2427  limitation established under paragraph (a).
 2428         (c)(d) Effective for tax years beginning January 1, 2006, a
 2429  taxpayer may rescind all or part of its allocated tax credit
 2430  under this section. The amount rescinded shall become available
 2431  for purposes of the cap for that state fiscal year under this
 2432  section to an eligible taxpayer as approved by the department if
 2433  the taxpayer receives notice from the department that the
 2434  rescindment has been accepted by the department and the taxpayer
 2435  has not previously rescinded any or all of its tax credit
 2436  allocation under this section more than once in the previous 3
 2437  tax years. Any amount rescinded under this paragraph shall
 2438  become available to an eligible taxpayer on a first-come, first
 2439  served basis based on tax credit applications received after the
 2440  date the rescindment is accepted by the department.
 2441         (d)(e) A taxpayer who is eligible to receive the credit
 2442  provided for in s. 624.51055 is not eligible to receive the
 2443  credit provided by this section.
 2444         Section 35. Subsection (3) of section 220.191, Florida
 2445  Statutes, is amended to read:
 2446         220.191 Capital investment tax credit.—
 2447         (3)(a) Notwithstanding subsection (2), an annual credit
 2448  against the tax imposed by this chapter shall be granted to a
 2449  qualifying business which establishes a qualifying project
 2450  pursuant to subparagraph (1)(h)3., in an amount equal to the
 2451  lesser of $15 million or 5 percent of the eligible capital costs
 2452  made in connection with a qualifying project, for a period not
 2453  to exceed 20 years beginning with the commencement of operations
 2454  of the project. The tax credit shall be granted against the
 2455  corporate income tax liability of the qualifying business and as
 2456  further provided in paragraph (c). The total tax credit provided
 2457  pursuant to this subsection shall be equal to no more than 100
 2458  percent of the eligible capital costs of the qualifying project.
 2459         (b) If the credit granted under this subsection is not
 2460  fully used in any one year because of insufficient tax liability
 2461  on the part of the qualifying business, the unused amount may be
 2462  carried forward for a period not to exceed 20 years after the
 2463  commencement of operations of the project. The carryover credit
 2464  may be used in a subsequent year when the tax imposed by this
 2465  chapter for that year exceeds the credit for which the
 2466  qualifying business is eligible in that year under this
 2467  subsection after applying the other credits and unused
 2468  carryovers in the order provided by s. 220.02(8).
 2469         (c) The credit granted under this subsection may be used in
 2470  whole or in part by the qualifying business or any corporation
 2471  that is either a member of that qualifying business’s affiliated
 2472  group of corporations, is a related entity taxable as a
 2473  cooperative under subchapter T of the Internal Revenue Code, or,
 2474  if the qualifying business is an entity taxable as a cooperative
 2475  under subchapter T of the Internal Revenue Code, is related to
 2476  the qualifying business. Any entity related to the qualifying
 2477  business may continue to file as a member of a Florida-nexus
 2478  consolidated group pursuant to a prior election made under s.
 2479  220.131(1), Florida Statutes (1985), even if the parent of the
 2480  group changes due to a direct or indirect acquisition of the
 2481  former common parent of the group. Any credit can be used by any
 2482  of the affiliated companies or related entities referenced in
 2483  this paragraph to the same extent as it could have been used by
 2484  the qualifying business. However, any such use shall not operate
 2485  to increase the amount of the credit or extend the period within
 2486  which the credit must be used.
 2487         Section 36. Subsection (2) of section 220.192, Florida
 2488  Statutes, is amended to read:
 2489         220.192 Renewable energy technologies investment tax
 2490  credit.—
 2491         (2) TAX CREDIT.—For tax years beginning on or after January
 2492  1, 2007, a credit against the tax imposed by this chapter shall
 2493  be granted in an amount equal to the eligible costs. Credits may
 2494  be used in tax years beginning January 1, 2007, and ending
 2495  December 31, 2010, after which the credit shall expire. If the
 2496  credit is not fully used in any one tax year because of
 2497  insufficient tax liability on the part of the corporation, the
 2498  unused amount may be carried forward and used in tax years
 2499  beginning January 1, 2007, and ending December 31, 2012, after
 2500  which the credit carryover expires and may not be used. A
 2501  taxpayer that files a consolidated return in this state as a
 2502  member of an affiliated group under s. 220.131(1) may be allowed
 2503  the credit on a consolidated return basis up to the amount of
 2504  tax imposed upon the consolidated group. Any eligible cost for
 2505  which a credit is claimed and which is deducted or otherwise
 2506  reduces federal taxable income shall be added back in computing
 2507  adjusted federal income under s. 220.13.
 2508         Section 37. Subsection (3) of section 220.193, Florida
 2509  Statutes, is amended to read:
 2510         220.193 Florida renewable energy production credit.—
 2511         (3) An annual credit against the tax imposed by this
 2512  section shall be allowed to a taxpayer, based on the taxpayer’s
 2513  production and sale of electricity from a new or expanded
 2514  Florida renewable energy facility. For a new facility, the
 2515  credit shall be based on the taxpayer’s sale of the facility’s
 2516  entire electrical production. For an expanded facility, the
 2517  credit shall be based on the increases in the facility’s
 2518  electrical production that are achieved after May 1, 2006.
 2519         (a) The credit shall be $0.01 for each kilowatt-hour of
 2520  electricity produced and sold by the taxpayer to an unrelated
 2521  party during a given tax year.
 2522         (b) The credit may be claimed for electricity produced and
 2523  sold on or after January 1, 2007. Beginning in 2008 and
 2524  continuing until 2011, each taxpayer claiming a credit under
 2525  this section must first apply to the department by February 1 of
 2526  each year for an allocation of available credit. The department,
 2527  in consultation with the commission, shall develop an
 2528  application form. The application form shall, at a minimum,
 2529  require a sworn affidavit from each taxpayer certifying the
 2530  increase in production and sales that form the basis of the
 2531  application and certifying that all information contained in the
 2532  application is true and correct.
 2533         (c) If the amount of credits applied for each year exceeds
 2534  $5 million, the department shall award to each applicant a
 2535  prorated amount based on each applicant’s increased production
 2536  and sales and the increased production and sales of all
 2537  applicants.
 2538         (d) If the credit granted pursuant to this section is not
 2539  fully used in one year because of insufficient tax liability on
 2540  the part of the taxpayer, the unused amount may be carried
 2541  forward for a period not to exceed 5 years. The carryover credit
 2542  may be used in a subsequent year when the tax imposed by this
 2543  chapter for such year exceeds the credit for such year, after
 2544  applying the other credits and unused credit carryovers in the
 2545  order provided in s. 220.02(8).
 2546         (e) A taxpayer that files a consolidated return in this
 2547  state as a member of an affiliated group under s. 220.131(1) may
 2548  be allowed the credit on a consolidated return basis up to the
 2549  amount of tax imposed upon the consolidated group.
 2550         (e)(f)1. Tax credits that may be available under this
 2551  section to an entity eligible under this section may be
 2552  transferred after a merger or acquisition to the surviving or
 2553  acquiring entity and used in the same manner with the same
 2554  limitations.
 2555         2. The entity or its surviving or acquiring entity as
 2556  described in subparagraph 1. may transfer any unused credit in
 2557  whole or in units of no less than 25 percent of the remaining
 2558  credit. The entity acquiring such credit may use it in the same
 2559  manner and with the same limitations under this section. Such
 2560  transferred credits may not be transferred again although they
 2561  may succeed to a surviving or acquiring entity subject to the
 2562  same conditions and limitations as described in this section.
 2563         3. In the event the credit provided for under this section
 2564  is reduced as a result of an examination or audit by the
 2565  department, such tax deficiency shall be recovered from the
 2566  first entity or the surviving or acquiring entity to have
 2567  claimed such credit up to the amount of credit taken. Any
 2568  subsequent deficiencies shall be assessed against any entity
 2569  acquiring and claiming such credit, or in the case of multiple
 2570  succeeding entities in the order of credit succession.
 2571         (f)(g) Notwithstanding any other provision of this section,
 2572  credits for the production and sale of electricity from a new or
 2573  expanded Florida renewable energy facility may be earned between
 2574  January 1, 2007, and June 30, 2010. The combined total amount of
 2575  tax credits which may be granted for all taxpayers under this
 2576  section is limited to $5 million per state fiscal year.
 2577         (g)(h) A taxpayer claiming a credit under this section
 2578  shall be required to add back to net income that portion of its
 2579  business deductions claimed on its federal return paid or
 2580  incurred for the taxable year which is equal to the amount of
 2581  the credit allowable for the taxable year under this section.
 2582         (h)(i) A taxpayer claiming credit under this section may
 2583  not claim a credit under s. 220.192. A taxpayer claiming credit
 2584  under s. 220.192 may not claim a credit under this section.
 2585         (i)(j) When an entity treated as a partnership or a
 2586  disregarded entity under this chapter produces and sells
 2587  electricity from a new or expanded renewable energy facility,
 2588  the credit earned by such entity shall pass through in the same
 2589  manner as items of income and expense pass through for federal
 2590  income tax purposes. When an entity applies for the credit and
 2591  the entity has received the credit by a pass-through, the
 2592  application must identify the taxpayer that passed the credit
 2593  through, all taxpayers that received the credit, and the
 2594  percentage of the credit that passes through to each recipient
 2595  and must provide other information that the department requires.
 2596         (j)(k) A taxpayer’s use of the credit granted pursuant to
 2597  this section does not reduce the amount of any credit available
 2598  to such taxpayer under s. 220.186.
 2599         Section 38. Section 220.51, Florida Statutes, is amended to
 2600  read:
 2601         220.51 Promulgation of rules and regulations.—In accordance
 2602  with the Administrative Procedure Act, chapter 120, the
 2603  department is authorized to make, promulgate, and enforce such
 2604  reasonable rules and regulations, and to prescribe such forms
 2605  relating to the administration and enforcement of the provisions
 2606  of this code, as it may deem appropriate, including:
 2607         (1) Rules for initial implementation of this code and for
 2608  taxpayers’ transitional taxable years commencing before and
 2609  ending after January 1, 1972; and
 2610         (2) Rules or regulations to clarify whether certain groups,
 2611  organizations, or associations formed under the laws of this
 2612  state or any other state, country, or jurisdiction shall be
 2613  deemed “taxpayers” for the purposes of this code, in accordance
 2614  with the legislative declarations of intent in s. 220.02.; and
 2615         (3) Regulations relating to consolidated reporting for
 2616  affiliated groups of corporations, in order to provide for an
 2617  equitable and just administration of this code with respect to
 2618  multicorporate taxpayers.
 2619         Section 39. Section 220.64, Florida Statutes, is amended to
 2620  read:
 2621         220.64 Other provisions applicable to franchise tax.—To the
 2622  extent that they are not manifestly incompatible with the
 2623  provisions of this part, parts I, III, IV, V, VI, VIII, IX, and
 2624  X of this code and ss. 220.12, 220.13, 220.136, 220.1363,
 2625  220.15, and 220.16 ss. 220.12, 220.13, 220.15, and 220.16 apply
 2626  to the franchise tax imposed by this part. Under rules
 2627  prescribed in s. 220.131, a consolidated return may be filed by
 2628  any affiliated group of corporations composed of one or more
 2629  banks or savings associations, its or their Florida parent
 2630  corporation, and any nonbank or nonsavings subsidiaries of such
 2631  parent corporation.
 2632         Section 40. Subsections (9) and (10) of section 376.30781,
 2633  Florida Statutes, are amended to read:
 2634         376.30781 Tax credits for rehabilitation of drycleaning
 2635  solvent-contaminated sites and brownfield sites in designated
 2636  brownfield areas; application process; rulemaking authority;
 2637  revocation authority.—
 2638         (9) On or before May 1, the Department of Environmental
 2639  Protection shall inform each tax credit applicant that is
 2640  subject to the January 31 annual application deadline of the
 2641  applicant’s eligibility status and the amount of any tax credit
 2642  due. The department shall provide each eligible tax credit
 2643  applicant with a tax credit certificate that must be submitted
 2644  with its tax return to the Department of Revenue to claim the
 2645  tax credit or be transferred pursuant to s. 220.1845(1)(f)(g).
 2646  The May 1 deadline for annual site rehabilitation tax credit
 2647  certificate awards shall not apply to any tax credit application
 2648  for which the department has issued a notice of deficiency
 2649  pursuant to subsection (8). The department shall respond within
 2650  90 days after receiving a response from the tax credit applicant
 2651  to such a notice of deficiency. Credits may not result in the
 2652  payment of refunds if total credits exceed the amount of tax
 2653  owed.
 2654         (10) For solid waste removal, new health care facility or
 2655  health care provider, and affordable housing tax credit
 2656  applications, the Department of Environmental Protection shall
 2657  inform the applicant of the department’s determination within 90
 2658  days after the application is deemed complete. Each eligible tax
 2659  credit applicant shall be informed of the amount of its tax
 2660  credit and provided with a tax credit certificate that must be
 2661  submitted with its tax return to the Department of Revenue to
 2662  claim the tax credit or be transferred pursuant to s.
 2663  220.1845(1)(f)(g). Credits may not result in the payment of
 2664  refunds if total credits exceed the amount of tax owed.
 2665         Section 41. Effective January 1, 2011, paragraph (a) of
 2666  subsection (3), subsection (4), and paragraph (a) of subsection
 2667  (14) of section 376.30781, Florida Statutes, are amended, and
 2668  subsections (9) and (10) of that section, as amended by this
 2669  act, are amended, to read:
 2670         376.30781 Tax credits for rehabilitation of drycleaning
 2671  solvent-contaminated sites and brownfield sites in designated
 2672  brownfield areas; application process; rulemaking authority;
 2673  revocation authority.—
 2674         (3)(a) A credit in the amount of 50 percent of the costs of
 2675  voluntary cleanup activity that is integral to site
 2676  rehabilitation at the following sites is allowed pursuant to ss.
 2677  199.10555 and s. 220.1845:
 2678         1. A drycleaning-solvent-contaminated site eligible for
 2679  state-funded site rehabilitation under s. 376.3078(3);
 2680         2. A drycleaning-solvent-contaminated site at which site
 2681  rehabilitation is undertaken by the real property owner pursuant
 2682  to s. 376.3078(11), if the real property owner is not also, and
 2683  has never been, the owner or operator of the drycleaning
 2684  facility where the contamination exists; or
 2685         3. A brownfield site in a designated brownfield area under
 2686  s. 376.80.
 2687         (4) The Department of Environmental Protection is
 2688  responsible for allocating the tax credits provided for in ss.
 2689  199.10555 and s. 220.1845, which may not exceed a total of $2
 2690  million in tax credits annually.
 2691         (9) On or before May 1, the Department of Environmental
 2692  Protection shall inform each tax credit applicant that is
 2693  subject to the January 31 annual application deadline of the
 2694  applicant’s eligibility status and the amount of any tax credit
 2695  due. The department shall provide each eligible tax credit
 2696  applicant with a tax credit certificate that must be submitted
 2697  with its tax return to the Department of Revenue to claim the
 2698  tax credit or be transferred pursuant to s. 199.10555(1)(g) or
 2699  s. 220.1845(1)(g)(f). The May 1 deadline for annual site
 2700  rehabilitation tax credit certificate awards shall not apply to
 2701  any tax credit application for which the department has issued a
 2702  notice of deficiency pursuant to subsection (8). The department
 2703  shall respond within 90 days after receiving a response from the
 2704  tax credit applicant to such a notice of deficiency. Credits may
 2705  not result in the payment of refunds if total credits exceed the
 2706  amount of tax owed.
 2707         (10) For solid waste removal, new health care facility or
 2708  health care provider, and affordable housing tax credit
 2709  applications, the Department of Environmental Protection shall
 2710  inform the applicant of the department’s determination within 90
 2711  days after the application is deemed complete. Each eligible tax
 2712  credit applicant shall be informed of the amount of its tax
 2713  credit and provided with a tax credit certificate that must be
 2714  submitted with its tax return to the Department of Revenue to
 2715  claim the tax credit or be transferred pursuant to s.
 2716  199.10555(1)(g) or s. 220.1845(1)(g)(f). Credits may not result
 2717  in the payment of refunds if total credits exceed the amount of
 2718  tax owed.
 2719         (14)(a) A tax credit applicant who receives state-funded
 2720  site rehabilitation under s. 376.3078(3) for rehabilitation of a
 2721  drycleaning-solvent-contaminated site is ineligible to receive a
 2722  tax credit under s. 199.10555 or s. 220.1845 for costs incurred
 2723  by the tax credit applicant in conjunction with the
 2724  rehabilitation of that site during the same time period that
 2725  state-administered site rehabilitation was underway.
 2726         Section 42. Transitional rules.—
 2727         (1) For the first tax year beginning on or after January 1,
 2728  2011, a taxpayer that filed a Florida corporate income tax
 2729  return in the preceding tax year and is a member of a water’s
 2730  edge group shall compute its income together with all members of
 2731  its water’s edge group and file a combined Florida corporate
 2732  income tax return with all members of its water’s edge group.
 2733         (2) An affiliated group of corporations that filed a
 2734  Florida consolidated corporate income tax return pursuant to an
 2735  election provided in s. 220.131, Florida Statutes, shall cease
 2736  filing a Florida consolidated return for tax years beginning on
 2737  or after January 1, 2011, and shall file a combined Florida
 2738  corporate income tax return with all members of its water’s edge
 2739  group.
 2740         (3) An affiliated group of corporations that filed a
 2741  Florida consolidated corporate income tax return pursuant to the
 2742  election in s. 220.131(1), Florida Statutes (1985), which
 2743  allowed the affiliated group to make an election within 90 days
 2744  after December 20, 1984, or upon filing the taxpayer’s first
 2745  return after December 20, 1984, whichever is later, shall cease
 2746  filing a Florida consolidated corporate income tax return using
 2747  that method for tax years beginning on or after January 1, 2011,
 2748  and shall file a combined Florida corporate income tax return
 2749  with all members of its water’s edge group.
 2750         (4) Taxpayers that are not members of a water’s edge group
 2751  remain subject to chapter 220, Florida Statutes, and shall file
 2752  a separate Florida corporate income tax return as previously
 2753  required.
 2754         (5) For the tax years beginning on or after January 1,
 2755  2011, a tax return for a member of a water’s edge group must be
 2756  a combined Florida corporate income tax return that includes tax
 2757  information for all members of the water’s edge group. The tax
 2758  return must be filed by a member that has a nexus with this
 2759  state.
 2760         Section 43. Of the funds recaptured pursuant to this act,
 2761  the sum of $50 million is appropriated from the General Revenue
 2762  Fund to the State University System for workforce education, to
 2763  be allocated by the Board of Governors; the sum of $50 million
 2764  is appropriated from the General Revenue Fund to community
 2765  colleges for workforce education, to be allocated by the State
 2766  Board of Education; and the remainder of such funds, as
 2767  determined by the Revenue Estimating Conference, shall be
 2768  appropriated from the General Revenue Fund and allocated as
 2769  provided in the General Appropriations Act to the various school
 2770  districts to reduce the required local effort millage.
 2771         Section 44. Section 220.131, Florida Statutes, is repealed.
 2772         Section 45. (1) The funds provided from the implementation
 2773  of this act shall be deposited annually into the Educational
 2774  Enhancement Trust Fund and appropriated from the fund as
 2775  follows:
 2776         (a) Twenty-five percent to the Board of Governors of the
 2777  State University System for allocation to state universities.
 2778         (b) Twenty-five percent to the Department of Education for
 2779  allocation to community colleges.
 2780         (c) Twenty-five percent to the Department of Education for
 2781  allocation to school districts for K-12 education.
 2782         (d) Twenty-five percent to the Agency for Workforce
 2783  Innovation for allocation to early learning coalitions under the
 2784  Voluntary Prekindergarten Education Program.
 2785         (2) It is the intent of the Legislature that the revenue
 2786  generated from collections derived from the Millionaire’s Tax
 2787  Act shall be used specifically for enhancements to higher
 2788  education, K-12 education, and prekindergarten education in this
 2789  state and shall not supplant any general revenue appropriations
 2790  for such higher education, K-12 education, and prekindergarten
 2791  education.
 2792         (3) Each entity allocated funds pursuant to this section
 2793  shall determine how best to expend the additional enhancement
 2794  funds appropriated to such entity pursuant to this section.
 2795         Section 46. Except as otherwise expressly provided in this
 2796  act, this act shall take effect July 1, 2010.

Site Map
Session:   Bills ·   Calendars ·   Bound Journals ·   Citator ·   Search ·   Appropriations ·   Redistricting ·   Bill Information Reports
Committee Publications
Historical Information
Statutes:   Introduction ·   View Statutes ·   Search Statutes
Flsenate.gov
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.    Copyright © 2000-2019 State of Florida.     Privacy Statement     Contact Us     Get Acrobat Reader