Bill Text: FL H1199 | 2011 | Regular Session | Introduced

Bill Title: Corporate Income Tax

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H1199 Detail]

Download: Florida-2011-H1199-Introduced.html
HB 1199

A bill to be entitled
2An act relating to the corporate income tax; amending s.
3220.131, F.S.; conforming provisions to changes made by
4the act; creating s. 220.153, F.S.; providing for the
5apportionment of certain taxpayer's adjusted federal
6income solely by the sales factor provided in s. 220.15,
7F.S.; providing for eligibility based on the taxpayer's
8capital expenditures and number of full-time employees;
9providing an application process; authorizing the
10Department of Revenue to examine and verify that a
11taxpayer has correctly apportioned its taxes; authorizing
12the Office of Tourism, Trade, and Economic Development to
13approve and revoke approval of an application; providing
14for the recapture of unpaid taxes, interest, and
15penalties; authorizing the office and the department to
16adopt rules; providing an effective date.
18Be It Enacted by the Legislature of the State of Florida:
20     Section 1.  Subsection (5) of section 220.131, Florida
21Statutes, is amended to read:
22     220.131  Adjusted federal income; affiliated groups.-
23     (5)  Each taxpayer shall apportion adjusted federal income
24under s. 220.15 as a member of an affiliated group which files a
25consolidated return under this section on the basis of
26apportionment factors described in s. 220.15. For the purposes
27of this subsection, each special industry member included in an
28affiliated group filing a consolidated return hereunder, who
29which member would otherwise be permitted to use a special
30method of apportionment under s. 220.151 or s. 220.153, shall
31construct the numerator of its sales, property, and payroll
32factors, respectively, by multiplying the denominator of each
33such factor by the premiums or revenue miles factor ratio
34otherwise applicable under pursuant to s. 220.151 in the manner
35prescribed by the department by rule.
36     Section 2.  Section 220.153, Florida Statutes, is created
37to read:
38     220.153  Apportionment by sales factor.-
39     (1)  APPORTIONMENT OF TAXES; ELIGIBILITY.-A taxpayer, not
40including a financial organization as defined in s. 220.15(6) or
41a bank, savings association, international banking facility, or
42banking organization as defined in s. 220.62, doing business
43within and without this state, who applies and demonstrates to
44the Office of Tourism, Trade, and Economic Development that, on
45or after July 1, 2013, it has made qualified capital
46expenditures equal to or exceeding $250 million and has
47maintained the number of full-time employees who were employed
48by the taxpayer in this state at the time it notified the office
49of its intent to apply for apportionment pursuant to this
50section, may apportion its adjusted federal income solely by the
51sales factor set forth in s. 220.15(5), commencing in the
52taxable year of such determination. For the purposes of this
53section, a full-time employee must work an average of at least
5436 hours per week for an entire year and receive an average
55weekly wage greater than the lower of the state or local average
56weekly wages for the taxpayer's industry; however, a full-time
57employee does not include an employee who is hired to construct
58improvements to real property.
60     (a)  To qualify as a taxpayer who is eligible to apportion
61its adjusted federal income under this section:
62     1.  The taxpayer must notify the Office of Tourism, Trade,
63and Economic Development of its intent to submit an application
64to apportion its adjusted federal income in order to commence
65the 2-year period for measuring qualified capital expenditures.
66     2.  The application must be submitted within 2 years after
67notifying the office of the taxpayer's intent to qualify. The
68application must be made under oath and provide such information
69as the office reasonably requires by rule for determining the
70applicant's eligibility to apportion adjusted federal income.
71The taxpayer is responsible for affirmatively demonstrating to
72the satisfaction of the office that it meets the eligibility
74     (b)  The taxpayer notice and application forms shall be
75established by the office by rule. The office shall acknowledge
76receipt of the notice and approve or deny the application in
77writing within 45 days after receipt.
78     (c)  Upon approval, the taxpayer, by the due date for
79filing its tax return for the taxable year during which its
80eligibility has been determined, including any extensions
81thereof, may elect to apportion its adjusted federal income by
82filing a return for the taxable year using the method provided
83under this chapter.
84     (d)  Once made, a taxpayer may not revoke the election for
854 years, at which time the taxpayer may renew the election by
86the due date, or extended due date, for filing its tax return by
87filing a return for the next taxable year using the method
88provided under this chapter. If the taxpayer does not renew its
89election, it shall apportion its adjusted federal income
90pursuant to s. 220.15 and must reapply to apportion its adjusted
91federal income pursuant to this section.
93     (a)  In addition to its existing audit authority, the
94department may perform any financial and technical review and
95investigation, including examining the accounts, books, and
96records of the taxpayer as necessary, to verify that the
97taxpayer's tax return correctly computes and apportions adjusted
98federal income and to ensure compliance with this chapter.
99     (b)  The Office of Tourism, Trade, and Economic Development
100may, by order, revoke its decision to grant eligibility for
101apportionment, and may also order the recalculation of
102apportionment factors to those applicable under s. 220.15 if, as
103the result of an audit, investigation, or examination, it
104determines that information provided by the taxpayer in the
105application, or in a statement, representation, record, report,
106plan, or other document provided to the office to become
107eligible for apportionment, was materially false at the time it
108was made and that an individual acting on behalf of the taxpayer
109knew, or should have known, that the information submitted was
110false. The taxpayer shall pay such additional taxes and interest
111as may be due pursuant to this chapter computed as the
112difference between the tax that would have been due under the
113apportionment formula provided in s. 220.15 for such years and
114the tax actually paid. In addition, the department shall assess
115a penalty equal to 100 percent of the additional tax due.
116     (c)  The office shall immediately notify the department of
117an order affecting a taxpayer's eligibility to apportion tax
118pursuant to this section. A taxpayer who is liable for past tax
119must file an amended return with the department, or such other
120report as the department prescribes by rule, and pay any
121required tax, interest, and penalty within 60 days after the
122taxpayer receives notification from the office that the
123previously approved credits have been revoked. If the revocation
124is contested, the taxpayer shall file an amended return or other
125report within 30 days after an order becomes final. A taxpayer
126who fails to pay the past tax, interest, and penalty by the due
127date is subject to the penalties provided in s. 220.803.
128     (4)  RULES.-The Office of Tourism, Trade, and Economic
129Development and the department may adopt rules to administer
130this section.
131     Section 3.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.