THE BILL ITSELF
HB 791
Tax/Sales Taxes
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A bill to be entitled
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An act relating to sales taxes; providing a short
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title; amending s. 212.05, F.S.; revising upward a
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specified sales and use tax; amending s. 212.20, F.S.;
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requiring a certain percentage of collected revenues
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to be used for a specified purpose; creating s.
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212.056, F.S.; requiring a specified surtax when
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property is transferred; providing for collection of
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such tax; requiring the Department of Revenue to
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return certain funds; providing a contingent effective
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date.
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Be It Enacted by the Legislature of the State of Florida:
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This act may be cited as the "Freedom 3 – The Section 1.
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School and Safety Revenue Replacement Act."
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Section 2. Paragraph (a) of subsection (1) of section
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212.05, Florida Statutes, is amended to read:
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212.05 Sales, storage, use tax.—It is hereby declared to
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be the legislative intent that every person is exercising a
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taxable privilege who engages in the business of selling
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tangible personal property at retail in this state, including
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the business of making or facilitating remote sales; who rents
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or furnishes any of the things or services taxable under this
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chapter; or who stores for use or consumption in this state any
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item or article of tangible personal property as defined herein
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and who leases or rents such property within the state.
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(1) For the exercise of such privilege, a tax is levied on
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each taxable transaction or incident, which tax is due and
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payable as follows:
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(a)1.a. At the rate of 9 6 percent of the sales price of
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each item or article of tangible personal property when sold at
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retail in this state, computed on each taxable sale for the
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purpose of remitting the amount of tax due the state, and
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including each and every retail sale.
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b. Each occasional or isolated sale of an aircraft, boat,
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mobile home, or motor vehicle of a class or type which is
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required to be registered, licensed, titled, or documented in
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this state or by the United States Government shall be subject
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to tax at the rate provided in this paragraph. The department
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shall by rule adopt any nationally recognized publication for
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valuation of used motor vehicles as the reference price list for
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any used motor vehicle which is required to be licensed pursuant
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to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any
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party to an occasional or isolated sale of such a vehicle
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reports to the tax collector a sales price which is less than 80
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percent of the average loan price for the specified model and
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year of such vehicle as listed in the most recent reference
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price list, the tax levied under this paragraph shall be
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computed by the department on such average loan price unless the
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parties to the sale have provided to the tax collector an
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affidavit signed by each party, or other substantial proof,
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stating the actual sales price. Any party to such sale who
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reports a sales price less than the actual sales price is guilty
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of a misdemeanor of the first degree, punishable as provided in
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s. 775.082 or s. 775.083. The department shall collect or
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attempt to collect from such party any delinquent sales taxes.
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In addition, such party shall pay any tax due and any penalty
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and interest assessed plus a penalty equal to twice the amount
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of the additional tax owed. Notwithstanding any other provision
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of law, the Department of Revenue may waive or compromise any
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penalty imposed pursuant to this subparagraph.
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2. This paragraph does not apply to the sale of a boat or
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aircraft by or through a registered dealer under this chapter to
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a purchaser who, at the time of taking delivery, is a
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nonresident of this state, does not make his or her permanent
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place of abode in this state, and is not engaged in carrying on
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in this state any employment, trade, business, or profession in
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which the boat or aircraft will be used in this state, or is a
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corporation none of the officers or directors of which is a
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resident of, or makes his or her permanent place of abode in,
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this state, or is a noncorporate entity that has no individual
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vested with authority to participate in the management,
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direction, or control of the entity's affairs who is a resident
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of, or makes his or her permanent abode in, this state. For
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purposes of this exemption, either a registered dealer acting on
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his or her own behalf as seller, a registered dealer acting as
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broker on behalf of a seller, or a registered dealer acting as
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broker on behalf of the nonresident purchaser may be deemed to
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be the selling dealer. This exemption is not allowed unless:
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a. The nonresident purchaser removes a qualifying boat, as
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described in sub-subparagraph f., from this state within 90 days
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after the date of purchase or extension, or the nonresident
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purchaser removes a nonqualifying boat or an aircraft from this
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state within 10 days after the date of purchase or, when the
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boat or aircraft is repaired or altered, within 20 days after
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completion of the repairs or alterations; or if the aircraft
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will be registered in a foreign jurisdiction and:
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(I) Application for the aircraft's registration is
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properly filed with a civil airworthiness authority of a foreign
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jurisdiction within 10 days after the date of purchase;
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(II) The nonresident purchaser removes the aircraft from
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this state to a foreign jurisdiction within 10 days after the
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date the aircraft is registered by the applicable foreign
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airworthiness authority; and
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(III) The aircraft is operated in this state solely to
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remove it from this state to a foreign jurisdiction.
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For purposes of this sub-subparagraph, the term "foreign
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jurisdiction" means any jurisdiction outside of the United
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States or any of its territories;
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b. The nonresident purchaser, within 90 days after the
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date of departure, provides the department with written proof
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that the nonresident purchaser licensed, registered, titled, or
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documented the boat or aircraft outside this state. If such
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written proof is unavailable, within 90 days the nonresident
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purchaser must provide proof that the nonresident purchaser
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applied for such license, title, registration, or documentation.
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The nonresident purchaser shall forward to the department proof
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of title, license, registration, or documentation upon receipt;
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c. The nonresident purchaser, within 30 days after
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removing the boat or aircraft from this state, furnishes the
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department with proof of removal in the form of receipts for
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fuel, dockage, slippage, tie-down, or hangaring from outside of
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Florida. The information so provided must clearly and
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specifically identify the boat or aircraft;
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d. The selling dealer, within 30 days after the date of
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sale, provides to the department a copy of the sales invoice,
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closing statement, bills of sale, and the original affidavit
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signed by the nonresident purchaser affirming that the
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nonresident purchaser qualifies for exemption from sales tax
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pursuant to this subparagraph and attesting that the nonresident
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purchaser will provide the documentation required to
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substantiate the exemption claimed under this subparagraph;
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e. The seller makes a copy of the affidavit a part of his
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or her record for as long as required by s. 213.35; and
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f. Unless the nonresident purchaser of a boat of 5 net
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tons of admeasurement or larger intends to remove the boat from
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this state within 10 days after the date of purchase or when the
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boat is repaired or altered, within 20 days after completion of
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the repairs or alterations, the nonresident purchaser applies to
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the selling dealer for a decal which authorizes 90 days after
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the date of purchase for removal of the boat. The nonresident
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purchaser of a qualifying boat may apply to the selling dealer
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within 60 days after the date of purchase for an extension decal
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that authorizes the boat to remain in this state for an
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additional 90 days, but not more than a total of 180 days,
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before the nonresident purchaser is required to pay the tax
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imposed by this chapter. The department is authorized to issue
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decals in advance to dealers. The number of decals issued in
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advance to a dealer shall be consistent with the volume of the
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dealer's past sales of boats which qualify under this sub-
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subparagraph. The selling dealer or his or her agent shall mark
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and affix the decals to qualifying boats in the manner
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prescribed by the department, before delivery of the boat.
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(I) The department is hereby authorized to charge dealers
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a fee sufficient to recover the costs of decals issued, except
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the extension decal shall cost $425.
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(II) The proceeds from the sale of decals will be
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deposited into the administrative trust fund.
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(III) Decals shall display information to identify the
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boat as a qualifying boat under this sub-subparagraph,
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including, but not limited to, the decal's date of expiration.
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(IV) The department is authorized to require dealers who
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purchase decals to file reports with the department and may
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prescribe all necessary records by rule. All such records are
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subject to inspection by the department.
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(V) Any dealer or his or her agent who issues a decal
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falsely, fails to affix a decal, mismarks the expiration date of
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a decal, or fails to properly account for decals will be
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considered prima facie to have committed a fraudulent act to
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evade the tax and will be liable for payment of the tax plus a
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mandatory penalty of 200 percent of the tax, and shall be liable
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for fine and punishment as provided by law for a conviction of a
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misdemeanor of the first degree, as provided in s. 775.082 or s.
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775.083.
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(VI) Any nonresident purchaser of a boat who removes a
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decal before permanently removing the boat from this state, or
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defaces, changes, modifies, or alters a decal in a manner
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affecting its expiration date before its expiration, or who
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causes or allows the same to be done by another, will be
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considered prima facie to have committed a fraudulent act to
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evade the tax and will be liable for payment of the tax plus a
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mandatory penalty of 200 percent of the tax, and shall be liable
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for fine and punishment as provided by law for a conviction of a
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misdemeanor of the first degree, as provided in s. 775.082 or s.
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775.083.
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(VII) The department is authorized to adopt rules
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necessary to administer and enforce this subparagraph and to
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publish the necessary forms and instructions.
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(VIII) The department is hereby authorized to adopt
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emergency rules pursuant to s. 120.54(4) to administer and
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enforce the provisions of this subparagraph.
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If the nonresident purchaser fails to remove the qualifying boat
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from this state within the maximum 180 days after purchase or a
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nonqualifying boat or an aircraft from this state within 10 days
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after purchase or, when the boat or aircraft is repaired or
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altered, within 20 days after completion of such repairs or
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alterations, or permits the boat or aircraft to return to this
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state within 6 months after the date of departure, except as
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provided in s. 212.08(7)(eee), or if the nonresident purchaser
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fails to furnish the department with any of the documentation
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required by this subparagraph within the prescribed time period,
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the nonresident purchaser is liable for use tax on the cost
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price of the boat or aircraft and, in addition thereto, payment
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of a penalty to the Department of Revenue equal to the tax
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payable. This penalty is in lieu of the penalty imposed by s.
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212.12(2). The maximum 180-day period following the sale of a
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qualifying boat tax-exempt to a nonresident may not be tolled
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for any reason.
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Section 3. Paragraphs (a) through (d) of subsection (6) of
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section 212.20, Florida Statutes, are redesignated as paragraphs
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(b) through (e), respectively, and a new paragraph (a) is added to that subsection, to read:
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212.20 Funds collected, disposition; additional powers of
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department; operational expense; refund of taxes adjudicated
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unconstitutionally collected.—
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(6) Distribution of all proceeds under this chapter and
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ss. 202.18(1)(b) and (2)(b) and 203.01(1)(a)3. is as follows:
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(a) One-third of all proceeds collected under s.
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212.05(1)(a) shall be used to fund the Florida Education Finance
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Program.
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Section 4. Section 212.056, Florida Statutes, is created to read:
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212.056 Property Sales Surtax.—
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(1) On any transaction required to pay the tax under s.
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201.02 or s. 201.133, there shall be a sales tax of 5 percent on
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the consideration.
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(2) This tax shall be collected in the same manner as the
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taxes under ss. 201.02 and 201.133.
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(3) The Department of Revenue shall pay to the governing
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authority of each county all surtaxes collected pursuant to this
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section related to property located in such county.
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Section 5. This act shall take effect on the effective
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date of the amendment to the State Constitution proposed by HJR
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787 or a similar joint resolution having substantially the same
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specified intent and purpose, if such amendment to the State
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Constitution is approved at the next general election or at an
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earlier special election specifically authorized by law for that
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purpose.