Bill Text: FL S0510 | 2024 | Regular Session | Introduced
Bill Title: Excise Tax on Water Extracted for Commercial or Industrial Use
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-03-08 - Died in Environment and Natural Resources [S0510 Detail]
Download: Florida-2024-S0510-Introduced.html
Florida Senate - 2024 SB 510 By Senator Stewart 17-00220-24 2024510__ 1 A bill to be entitled 2 An act relating to an excise tax on water extracted 3 for commercial or industrial use; revising the title 4 of ch. 211, F.S.; creating part III of ch. 211, F.S., 5 entitled “Tax on Water Extracted for Commercial or 6 Industrial Use”; creating s. 211.40, F.S.; defining 7 terms; creating s. 211.41, F.S.; imposing an excise 8 tax upon persons extracting water from waters of the 9 state for commercial or industrial use; specifying the 10 rate of the tax; requiring tax proceeds to be 11 deposited in a specified trust fund; requiring that 12 tax proceeds be separately accounted for and used for 13 specified purposes by the Department of Environmental 14 Protection; creating s. 211.42, F.S.; specifying 15 requirements for extractors in filing monthly returns 16 with the Department of Revenue; requiring the 17 department to prescribe by rule the form of such 18 returns; providing requirements for the returns; 19 authorizing the department to grant extensions for 20 filing and payment under certain circumstances; 21 creating s. 211.43, F.S.; specifying interest payable 22 on unpaid taxes; specifying the delinquency penalties 23 for failure to timely file a return; specifying the 24 penalty for the substantial underpayment of taxes; 25 providing construction; authorizing the department to 26 settle or compromise taxes or interest in accordance 27 with certain provisions; creating s. 211.44, F.S.; 28 authorizing the department to adopt rules; requiring 29 governmental entities to cooperate with the department 30 and furnish information without cost to the department 31 for certain purposes; specifying recordkeeping 32 requirements for extractors; authorizing the 33 department to inspect or examine an extractor’s books 34 and records and to require testimony under oath or 35 affirmation of certain persons; authorizing the 36 department to issue certain subpoenas; authorizing 37 certain representatives of the department to 38 administer an oath or affirmation; authorizing a 39 circuit court to issue orders of compliance under 40 certain circumstances; requiring books and records to 41 be available for inspection by the department; 42 authorizing the department to inspect or examine an 43 extractor’s books and records, issue subpoenas, 44 require testimony under oath or affirmation of certain 45 persons, and apply for certain judicial orders; 46 specifying requirements and procedures for the 47 department in conducting audits, assessing 48 deficiencies, and crediting or refunding overpayments; 49 specifying procedures and requirements for claiming 50 refunds; providing that amounts due remain a lien on 51 certain property and assets; specifying requirements 52 and procedures for warrants and alias tax executions 53 issued by the department; requiring that suits brought 54 by the department for violations be brought in circuit 55 court; creating s. 211.45, F.S.; providing criminal 56 penalties for certain violations; amending ss. 213.05, 57 213.053, and 403.890, F.S.; conforming provisions to 58 changes made by the act; providing an effective date. 59 60 Be It Enacted by the Legislature of the State of Florida: 61 62 Section 1. Chapter 211, Florida Statutes, entitled “Tax on 63 Production of Oil and Gas and Severance of Solid Minerals,” is 64 retitled “Tax on Production of Oil and Gas, Severance of Solid 65 Minerals, and Water Extracted for Commercial or Industrial Use.” 66 Section 2. The Division of Law Revision is directed to 67 create part III of chapter 211, Florida Statutes, consisting of 68 ss. 211.40-211.45, Florida Statutes, to be entitled “Tax on 69 Water Extracted for Commercial or Industrial Use.” 70 Section 3. Section 211.40, Florida Statutes, is created to 71 read: 72 211.40 Definitions.—As used in this part, the term: 73 (1) “Department” means the Department of Revenue. 74 (2) “Extractor” means a person engaged in the business of 75 extracting water from waters of the state for commercial or 76 industrial use. For purposes of this part, commercial or 77 industrial use does not include water extracted in connection 78 with any of the following: 79 (a) Public water supply utilities. 80 (b) Maintenance of land, crops, or livestock, when 81 extracted by an agricultural producer. 82 (c) Use within any structure for restroom, sanitation, or 83 kitchen facilities. 84 (3) “Waters of the state” has the same meaning as the term 85 “waters” as defined in s. 403.031. 86 Section 4. Section 211.41, Florida Statutes, is created to 87 read: 88 211.41 Excise tax; distribution and use of tax proceeds.— 89 (1) An excise tax is levied upon every person who acts as 90 an extractor at a rate of one one-thousandth of a dollar per 91 gallon of water extracted from waters of the state. 92 (2) The proceeds of the tax imposed by this section must be 93 deposited in the Water Protection and Sustainability Program 94 Trust Fund established under s. 403.891, subject to the 95 requirements of s. 403.890, and must be accounted for separately 96 within the trust fund. In addition to the purposes specified in 97 s. 403.890(1)(a), (b), and (c), such tax proceeds must be used 98 by the Department of Environmental Protection for geological 99 surveys to monitor the health of waters of the state and for 100 saltwater intrusion prevention and management. 101 Section 5. Section 211.42, Florida Statutes, is created to 102 read: 103 211.42 Returns; filing requirements.— 104 (1) Each extractor shall remit tax due and submit to the 105 department a return on or before the 25th day of each month 106 which shows the total amount of water extracted from waters of 107 the state during the previous month, the source and county of 108 extraction, the location of all facilities used in the 109 extraction of taxable water, and other information required by 110 department rule. The department shall prescribe by rule the form 111 of the return. The return must be filed on or before the last 112 day prescribed for payment of the tax and must be signed and 113 verified under oath by the extractor or the extractor’s 114 authorized representative. 115 (a) The return must include a statement of the tax due 116 under this part and such other information as the department may 117 reasonably require. 118 (b) A return must be filed even though no tax is due. Any 119 tax, penalty, or interest due must be remitted with the return. 120 (2) If any due date prescribed by this section falls on a 121 Saturday, Sunday, or state or federal holiday, the last date 122 prescribed for filing or payment is the next day that is not a 123 Saturday, Sunday, or state or federal holiday. The date of 124 receipt by the department, or the postmark date if mailed, 125 determines the timeliness of payment or filing. 126 (3) The department may grant an extension of time for 127 payment or filing of a return upon written request submitted on 128 or before the due date. 129 Section 6. Section 211.43, Florida Statutes, is created to 130 read: 131 211.43 Interest and penalties; failure to pay tax or file 132 return.— 133 (1) If any part of the tax imposed by this part is not paid 134 on or before the due date, interest must be added to the amount 135 due at the rate of 12 percent per year from the due date until 136 the date of payment. 137 (2) An extractor who fails to file the return required 138 under s. 211.42 by the due date must pay a delinquency penalty. 139 If tax is due with the return, the delinquency penalty is 10 140 percent for each month, or portion thereof, of the amount of tax 141 due with the return, not to exceed 50 percent of the tax due. If 142 no tax is due with the return, the delinquency penalty is $50 143 for each month, or portion thereof, during which the return was 144 not filed, not to exceed $300 in aggregate. The amount of tax 145 due with a return must be reduced by amounts properly creditable 146 against the tax liability shown on the return on the date the 147 return was due. 148 (3) An extractor who makes a substantial underpayment of 149 the tax due under this part must pay a penalty of 10 cents per 150 gallon of water extracted for which tax was not paid. For 151 purposes of this subsection, a substantial underpayment of tax 152 is a deficiency of tax in an amount exceeding 35 percent of the 153 total tax due for a month. 154 (4) Any penalty or interest imposed under this section is 155 deemed assessed upon the assessment of the tax and must be 156 collected and paid in the same manner as the tax. 157 (5) The department may settle or compromise any penalty 158 imposed by this section for reasonable cause in accordance with 159 s. 213.21. The department may settle or compromise interest 160 imposed by this section only as authorized by s. 213.21. 161 Section 7. Section 211.44, Florida Statutes, is created to 162 read: 163 211.44 Administration and enforcement; books and records; 164 refunds.— 165 (1) The department may adopt rules to administer this part, 166 including rules necessary to prescribe the form and content of 167 returns and reports. 168 (2) All state, county, and municipal agencies, boards, 169 bureaus, departments, and districts shall cooperate with the 170 department and furnish any information the department deems 171 necessary, without cost to the department, for the purposes of 172 administering, collecting, and enforcing the tax imposed under 173 this part. 174 (3)(a) Each extractor shall maintain suitable books and 175 records relating to the extraction of waters of the state to 176 enable the department to determine the amount of tax due under 177 this part. Such books and records must be preserved until the 178 time has expired during which the department may make an 179 assessment with respect thereto, in accordance with s. 213.35. 180 (b) The department may inspect or examine the books, 181 records, or papers of any extractor which are reasonably 182 required for the purposes of this part and may require the 183 extractor or the extractor’s authorized representative to 184 testify under oath or affirmation or to answer pertinent 185 questions regarding the extractor’s business or extraction of 186 taxable waters of the state. 187 1. The department may issue subpoenas to compel third 188 parties to testify or to produce records or other evidence in 189 their possession. 190 2. Any duly authorized representative of the department may 191 administer an oath or affirmation. 192 3. If any person fails to comply with a request of the 193 department for the inspection of records or with a subpoena or 194 fails to give testimony or respond to pertinent questions, a 195 circuit court having jurisdiction over such person, upon 196 application by the department, may issue orders necessary to 197 secure compliance. 198 (c) All books and records required to be kept under this 199 subsection must be available for inspection by the department 200 upon written request during normal business hours. 201 (4) The department may audit or examine the books and 202 records of an extractor to determine whether returns have been 203 properly filed and tax has been properly paid. An audit may be 204 commenced for any month for which the department is authorized 205 to make an assessment of amounts due under this part. An audit 206 must be commenced by service upon the extractor, either in 207 person or by certified mail, of a written notice of intent to 208 audit. The date of personal contact or the date of the notice 209 governs the period subject to audit. If there is jeopardy to the 210 revenue and jeopardy is asserted in or with an assessment, the 211 department must proceed in the manner specified for jeopardy 212 assessment in s. 213.732. 213 (5)(a) The department may assess, with or without an audit, 214 any deficiency resulting from nonpayment or underpayment of the 215 tax, interest, or penalties imposed by this part. The department 216 shall inform the extractor by written notice of the amount of 217 any deficiency or overpayment revealed by an audit, including 218 the tax, interest, or penalties due, and shall explain the basis 219 for the determination. 220 (b) The department may make an assessment under this part 221 based upon the best information available to it. If an extractor 222 fails to file a return, files a grossly incorrect or fraudulent 223 return, or refuses to allow inspection of records, the 224 department may make an assessment based upon an estimate of 225 amounts due under this part. An assessment of the amounts due 226 under this part is deemed prima facie correct, and the extractor 227 has the burden of showing any error in calculating it. 228 (c) In the event of a deficiency, the department shall 229 issue its written notice to an extractor for the tax, penalties, 230 or interest due. Full payment of the total amount assessed must 231 be made in the manner prescribed by the department in its 232 notice. 233 (6)(a) The department may credit or refund any overpayments 234 of amounts due under this part which are revealed by an audit or 235 for which a timely claim for refund has been properly filed. 236 (b) A claim for refund may be filed within the timeframe 237 specified in s. 215.26(2). 238 (c) A claim for refund must be signed by the extractor or 239 the extractor’s duly authorized representative, successor, or 240 assignee and must include information the department requires to 241 determine the correctness of the claim. 242 (7)(a) Amounts due under this part remain a lien upon the 243 property, assets, and effects of an extractor until paid or 244 until collection thereof is barred under s. 95.091. Amounts due 245 may be recovered by the department, on behalf of the state, by 246 an action in any county where the property, assets, or effects 247 of the extractor are located. 248 (b) When any tax imposed under this part becomes delinquent 249 or is otherwise in jeopardy, the department may issue a warrant 250 for the full amount due or estimated to be due, including the 251 tax, penalties, interest, and costs of collection. The warrant 252 must be directed to each sheriff and may be recorded with the 253 clerk of the circuit court in any county where the extractor’s 254 property is located. Upon recording, the clerk of the circuit 255 court shall execute the warrant in the same manner prescribed by 256 law for executions upon judgments and is entitled to the same 257 fees for this service. Upon payment of the warrant, the 258 department shall satisfy the lien of record within 30 days. 259 Thereafter, any interested person may compel the department to 260 satisfy the lien of record. 261 (c) An alias tax execution may be issued whenever the 262 department deems it necessary. Each alias tax execution must be 263 so designated on its face and has the same force and effect as 264 the original. 265 (d) An alias tax execution may be levied upon any third 266 party that is in possession or control of any assets of a 267 delinquent extractor or that is indebted to a delinquent 268 extractor. Such tax executions have the force and effect of a 269 writ of garnishment. The third party shall pay the debt or 270 deliver the assets of the delinquent extractor to the 271 department, and receipt by the department discharges the third 272 party completely to the extent of the debt paid or assets 273 surrendered to the department. 274 (e) When an alias tax execution becomes void, the 275 department may cancel it of record and must do so upon the 276 request of any interested person. 277 (8) Any employee of the department may be designated by the 278 executive director to make and sign assessments, tax warrants, 279 or satisfactions of tax warrants. 280 (9) Any suit brought by the department against any person 281 for violating this part must be brought in circuit court. 282 Section 8. Section 211.45, Florida Statutes, is created to 283 read: 284 211.45 Criminal penalties.— 285 (1) A person who willfully fails to file a return or keep 286 books or records on the extraction of waters of the state which 287 is taxable under this part, who files a fraudulent return, who 288 willfully fails or refuses to produce books or records, or who 289 willfully violates any provision of this part or any rule 290 adopted by the department under this part commits a misdemeanor 291 of the first degree, punishable as provided in s. 775.082 or s. 292 775.083. 293 (2) A person who withholds tax due under this part and 294 willfully fails to make remittance as required by this part or 295 who purports to make payments due under this part but willfully 296 fails to do so because the remittance fails to clear the bank or 297 depository institution against which it is drawn commits a 298 felony of the third degree, punishable as provided in s. 299 775.082, s. 775.083, or s. 775.084. 300 Section 9. Section 213.05, Florida Statutes, is amended to 301 read: 302 213.05 Department of Revenue; control and administration of 303 revenue laws.—The Department of Revenue shall have only those 304 responsibilities for ad valorem taxation specified to the 305 department in chapter 192, taxation, general provisions; chapter 306 193, assessments; chapter 194, administrative and judicial 307 review of property taxes; chapter 195, property assessment 308 administration and finance; chapter 196, exemption; chapter 197, 309 tax collections, sales, and liens; chapter 199, intangible 310 personal property taxes; and chapter 200, determination of 311 millage. The Department of Revenue shall have the responsibility 312 of regulating, controlling, and administering all revenue laws 313 and performing all duties as provided in s. 125.0104, the Local 314 Option Tourist Development Act; s. 125.0108, tourist impact tax; 315 chapter 198, estate taxes; chapter 201, excise tax on documents; 316 chapter 202, communications services tax; chapter 203, gross 317 receipts taxes; chapter 206, motor and other fuel taxes; chapter 318 211, tax on production of oil and gas,andseverance of solid 319 minerals, and water extracted for commercial or industrial use; 320 chapter 212, tax on sales, use, and other transactions; chapter 321 220, income tax code; ss. 336.021 and 336.025, taxes on motor 322 fuel and special fuel; s. 376.11, pollutant spill prevention and 323 control; s. 403.718, waste tire fees; s. 403.7185, lead-acid 324 battery fees; s. 538.09, registration of secondhand dealers; s. 325 538.25, registration of secondary metals recyclers; s. 624.4621, 326 group self-insurer’s fund premium tax; s. 624.5091, retaliatory 327 tax; s. 624.475, commercial self-insurance fund premium tax; ss. 328 624.509-624.511, insurance code: administration and general 329 provisions; s. 624.515, State Fire Marshal regulatory 330 assessment; s. 627.357, medical malpractice self-insurance 331 premium tax; s. 629.5011, reciprocal insurers premium tax; and 332 s. 681.117, motor vehicle warranty enforcement. 333 Section 10. Subsection (1) of section 213.053, Florida 334 Statutes, is amended to read: 335 213.053 Confidentiality and information sharing.— 336 (1) This section applies to all of the following: 337 (a) Section 125.0104, county government.;338 (b) Section 125.0108, tourist impact tax.;339 (c) Chapter 175, municipal firefighters’ pension trust 340 funds.;341 (d) Chapter 185, municipal police officers’ retirement 342 trust funds.;343 (e) Chapter 198, estate taxes.;344 (f) Chapter 199, intangible personal property taxes.;345 (g) Chapter 201, excise tax on documents.;346 (h) Chapter 202, the Communications Services Tax 347 Simplification Law.;348 (i) Chapter 203, gross receipts taxes.;349 (j) Chapter 211, tax on severance and production of 350 minerals and on water extracted for commercial or industrial 351 use.;352 (k) Chapter 212, tax on sales, use, and other 353 transactions.;354 (l) Chapter 220, income tax code.;355 (m) Section 252.372, emergency management, preparedness, 356 and assistance surcharge.;357 (n) Section 379.362(3), Apalachicola Bay oyster surcharge.;358 (o) Chapter 376, pollutant spill prevention and control.;359 (p) Section 403.718, waste tire fees.;360 (q) Section 403.7185, lead-acid battery fees.;361 (r) Section 538.09, registration of secondhand dealers.;362 (s) Section 538.25, registration of secondary metals 363 recyclers.;364 (t) Sections 624.501 and 624.509-624.515, insurance code.;365 (u) Section 681.117, motor vehicle warranty enforcement.;366and367 (v) Section 896.102, reports of financial transactions in 368 trade or business. 369 Section 11. Subsection (1) of section 403.890, Florida 370 Statutes, is amended to read: 371 403.890 Water Protection and Sustainability Program.— 372 (1) Revenues deposited into or appropriated to the Water 373 Protection and Sustainability Program Trust Fund shall be 374 distributed by the Department of Environmental Protection for 375 all of the following purposes: 376 (a) The alternative water supply program as provided in s. 377 373.707. 378 (b) The water storage facility revolving loan fund as 379 provided in s. 373.475. 380 (c) The water quality improvement grant program as provided 381 in s. 403.0673. 382 (d) The purposes specified in s. 211.41(2). 383 Section 12. This act shall take effect July 1, 2024.