Bill Text: FL S0582 | 2011 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Local Business Taxes
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2011-05-03 - Read 2nd time -SJ 745 [S0582 Detail]
Download: Florida-2011-S0582-Comm_Sub.html
Bill Title: Local Business Taxes
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2011-05-03 - Read 2nd time -SJ 745 [S0582 Detail]
Download: Florida-2011-S0582-Comm_Sub.html
Florida Senate - 2011 CS for SB 582 By the Committee on Community Affairs; and Senator Detert 578-02427-11 2011582c1 1 A bill to be entitled 2 An act relating to local business taxes; amending s. 3 205.022, F.S.; defining the term “independent 4 contractor”; creating s. 205.066, F.S.; exempting an 5 individual engaging in or managing a business in an 6 individual capacity as an employee from requirements 7 related to local business taxes; specifying that an 8 individual licensed and operating as a broker 9 associate or sales associate is an employee; 10 specifying that an independent contractor is not an 11 employee; prohibiting a local governing authority from 12 holding an exempt employee liable for the failure of a 13 principal or employer to comply with certain 14 obligations related to a local business tax or 15 requiring an exempt employee to take certain actions 16 related to a local business tax; prohibiting a local 17 governing authority from requiring a principal or 18 employer to provide personal or contact information 19 for exempt individuals in order to obtain a local 20 business tax receipt; amending s. 205.194, F.S.; 21 requiring a person applying for or renewing a local 22 business tax receipt to engage in or manage any 23 business or occupation regulated by a state agency to 24 exhibit proof of an active registration or license; 25 providing for online renewals; deleting obsolete 26 provisions; deleting a requirement that the Department 27 of Business and Professional Regulation provide 28 certain professional regulation information to local 29 officials who issue business tax receipts; deleting a 30 provision prohibiting a local official who issues 31 business tax receipts from renewing a license under 32 certain circumstances; providing an effective date. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 36 Section 1. Subsection (9) is added to section 205.022, 37 Florida Statutes, to read: 38 205.022 Definitions.—When used in this chapter, the 39 following terms and phrases shall have the meanings ascribed to 40 them in this section, except when the context clearly indicates 41 a different meaning: 42 (9)(a) “Independent contractor” means a person who meets at 43 least four of the following criteria: 44 1. The independent contractor maintains a separate business 45 with his or her own work facility, truck, equipment, materials, 46 or similar accommodations; 47 2. The independent contractor holds or has applied for a 48 federal employer identification number, unless the independent 49 contractor is a sole proprietor who is not required to obtain a 50 federal employer identification number under state or federal 51 regulations; 52 3. The independent contractor receives compensation for 53 services rendered or work performed and such compensation is 54 paid to a business rather than to an individual; 55 4. The independent contractor holds one or more bank 56 accounts in the name of the business entity for purposes of 57 paying business expenses or other expenses related to services 58 rendered or work performed for compensation; 59 5. The independent contractor performs work or is able to 60 perform work for any entity in addition to or besides the 61 employer at his or her own election without the necessity of 62 completing an employment application or process; or 63 6. The independent contractor receives compensation for 64 work or services rendered on a competitive-bid basis or 65 completion of a task or a set of tasks as defined by a 66 contractual agreement, unless such contractual agreement 67 expressly states that an employment relationship exists. 68 (b) If four of the criteria listed in paragraph (a) are not 69 met, an individual may still be presumed to be an independent 70 contractor based on full consideration of the nature of the 71 individual situation with regard to satisfying any of the 72 following conditions: 73 1. The independent contractor performs or agrees to perform 74 specific services or work for a specific amount of money and 75 controls the means of performing the services or work. 76 2. The independent contractor incurs the principal expenses 77 related to the service or work that he or she performs or agrees 78 to perform. 79 3. The independent contractor is responsible for the 80 satisfactory completion of the work or services that he or she 81 performs or agrees to perform. 82 4. The independent contractor receives compensation for 83 work or services performed for a commission or on a per-job 84 basis and not on any other basis. 85 5. The independent contractor may realize a profit or 86 suffer a loss in connection with performing work or services. 87 6. The independent contractor has continuing or recurring 88 business liabilities or obligations. 89 7. The success or failure of the independent contractor’s 90 business depends on the relationship of business receipts to 91 expenditures. 92 Section 2. Section 205.066, Florida Statutes, is created to 93 read: 94 205.066 Exemptions; employees acting in an individual 95 capacity.— 96 (1) An individual who engages in or manages a business, 97 profession, or occupation in an individual capacity as an 98 employee of another person is not required to apply for an 99 exemption from a local business tax, pay a local business tax, 100 or obtain a local business tax receipt. For purposes of this 101 section, an individual licensed and operating as a broker 102 associate or sales associate under chapter 475 is an employee. 103 An individual acting in the capacity of an independent 104 contractor is not an employee. 105 (2) An employee may not be held liable by any local 106 governing authority for the failure of a principal or employer 107 to apply for an exemption from a local business tax, pay a local 108 business tax, or obtain a local business tax receipt. An 109 individual exempt under this section may not be required by any 110 local governing authority to apply for an exemption from a local 111 business tax, otherwise prove his or her exempt status, or pay 112 any tax or fee related to a local business tax. 113 (3) A principal or employer who is required to obtain a 114 local business tax receipt may not be required by a local 115 governing authority to provide personal or contact information 116 for individuals exempt under this section in order to obtain a 117 local business tax receipt. 118 Section 3. Section 205.194, Florida Statutes, is amended to 119 read: 120 205.194 Prohibition of local business tax receipt without 121 exhibition of state license or registration.— 122 (1) Any person applying for or renewing a local business 123 tax receiptfor the period beginning October 1, 1985,to 124 practice any profession or engage in or manage any business or 125 occupation regulated by the Department of Business and 126 Professional Regulation or any other state regulatory agency, 127 including, orany board or commission thereof, must exhibit an 128 active state certificate, registration, or license, or proof of 129 copy of the same, before such local receipt may be issued. 130 Online renewals may meet this requirement by providing for 131 electronic certification by applicants.Thereafter, only persons132applying for the first time for a receipt must exhibit such133certification, registration, or license.134(2) The Department of Business and Professional Regulation135shall, by August 1 of each year, supply to the local official136who issues local business tax receipts a current list of137professions it regulates and information regarding those persons138for whom receipts should not be renewed due to the suspension,139revocation, or inactivation of such person’s state license,140certificate, or registration. The official who issues local141business tax receipts shall not renew such license unless such142person can exhibit an active state certificate, registration, or143license.144 (2)(3)This section shall not apply to s. 489.113, s. 145 489.117, s. 489.119, s. 489.131, s. 489.511, s. 489.513, s. 146 489.521, or s. 489.537. 147 Section 4. This act shall take effect July 1, 2011.