Bill Text: FL S7060 | 2020 | Regular Session | Introduced
Bill Title: Tax Administration
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-03-14 - Died on Calendar [S7060 Detail]
Download: Florida-2020-S7060-Introduced.html
Florida Senate - 2020 SB 7060 By the Committee on Finance and Tax 593-03922-20 20207060__ 1 A bill to be entitled 2 An act relating to tax administration; creating s. 3 193.1557, F.S.; providing applicability of certain 4 property assessment limitations to changes, additions, 5 or improvements to property damaged or destroyed by 6 Hurricane Michael which are commenced within a certain 7 timeframe; specifying the applicable tax years; 8 providing for future repeal; amending s. 195.073, 9 F.S.; revising the classification of certain 10 residential property for assessment purposes; amending 11 s. 195.096, F.S.; revising requirements for the 12 Department of Revenue’s review and published findings 13 of county assessment rolls; amending s. 206.8741, 14 F.S.; revising a penalty for failure to provide or 15 post a notice relating to dyed diesel fuel; amending 16 s. 212.05, F.S.; revising timeframes for certain 17 documentation to be provided to the department for the 18 purposes of a sales tax exemption for the sale of 19 certain boats and aircraft; amending s. 213.21, F.S.; 20 providing that the period for filing a claim for 21 certain refunds is tolled during a period in which a 22 taxpayer is engaged in certain informal conference 23 procedures; providing an effective date. 24 25 Be It Enacted by the Legislature of the State of Florida: 26 27 Section 1. Section 193.1557, Florida Statutes, is created 28 to read: 29 193.1557 Assessment of certain property damaged by 30 Hurricane Michael.—For property damaged or destroyed by 31 Hurricane Michael in 2018, s. 193.155(4)(b), s. 193.1554(6)(b), 32 or s. 193.1555(6) shall apply to changes, additions, or 33 improvements commenced within 5 years after January 1 following 34 the damage or destruction of the property. This section applies 35 to tax years 2019-2023 and shall stand repealed December 31, 36 2023. 37 Section 2. Paragraphs (a) and (b) of subsection (1) of 38 section 195.073, Florida Statutes, are amended to read: 39 195.073 Classification of property.—All items required by 40 law to be on the assessment rolls must receive a classification 41 based upon the use of the property. The department shall 42 promulgate uniform definitions for all classifications. The 43 department may designate other subclassifications of property. 44 No assessment roll may be approved by the department which does 45 not show proper classifications. 46 (1) Real property must be classified according to the 47 assessment basis of the land into the following classes: 48 (a) Residential, subclassified into categories, one 49 category for homestead property and one for nonhomestead 50 property: 51 1. Single family. 52 2. Mobile homes. 53 3. Multifamily, up to nine units. 54 4. Condominiums. 55 5. Cooperatives. 56 6. Retirement homes. 57 (b) Commercial and industrial, including apartments with 58 more than nine units. 59 Section 3. Subsection (2) and paragraph (a) of subsection 60 (3) of section 195.096, Florida Statutes, are amended to read: 61 195.096 Review of assessment rolls.— 62 (2) The department shall conduct, no less frequently than 63 once every 2 years, an in-depth review of the real property 64 assessment rollrollsof each county. The department need not 65 individually study every use-class of property set forth in s. 66 195.073, but shall at a minimum study the level of assessment in 67 relation to just value of each classification specified in 68 subsection (3). Such in-depth review may include proceedings of 69 the value adjustment board and the audit or review of procedures 70 used by the counties to appraise property. 71 (a) The department shall, at least 30 days prior to the 72 beginning of an in-depth review in any county, notify the 73 property appraiser in the county of the pending review. At the 74 request of the property appraiser, the department shall consult 75 with the property appraiser regarding the classifications and 76 strata to be studied, in order that the review will be useful to 77 the property appraiser in evaluating his or her procedures. 78 (b) Every property appraiser whose upcoming roll is subject 79 to an in-depth review shall, if requested by the department on 80 or before January 1, deliver upon completion of the assessment 81 roll a list of the parcel numbers of all parcels that did not 82 appear on the assessment roll of the previous year, indicating 83 the parcel number of the parent parcel from which each new 84 parcel was created or “cut out.” 85 (c) In conducting assessment ratio studies, the department 86 must use all practicable steps, including stratified statistical 87 and analytical reviews and sale-qualification studies, to 88 maximize the representativeness or statistical reliability of 89 samples of properties in tests of each classification, stratum, 90 or roll made the subject of a ratio study published by it. The 91 department shall document and retain records of the measures of 92 representativeness of the properties studied in compliance with 93 this section. Such documentation must include a record of 94 findings used as the basis for the approval or disapproval of 95 the tax roll in each county pursuant to s. 193.1142. In 96 addition, to the greatest extent practicable, the department 97 shall study assessment roll strata by subclassifications such as 98 value groups and market areas for each classification or stratum 99 to be studied, to maximize the representativeness of ratio study 100 samples. For purposes of this section, the department shall rely 101 primarily on an assessment-to-sales-ratio study in conducting 102 assessment ratio studies in those classifications of property 103 specified in subsection (3) for which there are adequate market 104 sales. The department shall compute the median and the value 105 weighted mean for each classification or subclassification 106 studied and for the roll as a whole. 107 (d) In the conduct of these reviews, the department shall 108 adhere to all standards to which the property appraisers are 109 required to adhere. 110 (e) The department and each property appraiser shall 111 cooperate in the conduct of these reviews, and each shall make 112 available to the other all matters and records bearing on the 113 preparation and computation of the reviews. The property 114 appraisers shall provide any and all data requested by the 115 department in the conduct of the studies, including electronic 116 data processing tapes. Any and all data and samples developed or 117 obtained by the department in the conduct of the studies shall 118 be confidential and exempt from the provisions of s. 119.07(1) 119 until a presentation of the findings of the study is made to the 120 property appraiser. After the presentation of the findings, the 121 department shall provide any and all data requested by a 122 property appraiser developed or obtained in the conduct of the 123 studies, including tapes. Direct reimbursable costs of providing 124 the data shall be borne by the party who requested it. Copies of 125 existing data or records, whether maintained or required 126 pursuant to law or rule, or data or records otherwise 127 maintained, shall be submitted within 30 days from the date 128 requested, in the case of written or printed information, and 129 within 14 days from the date requested, in the case of 130 computerized information. 131 (f) Within 120 days after receipt of a county assessment 132 roll by the executive director of the department pursuant to s. 133 193.1142(1), or within 10 days after approval of the assessment 134 roll, whichever is later, the department shall complete the 135 review for that county and publish the department’s findings. 136 The findings must includea statement of the confidence interval137for the median and such othermeasures as may be appropriate for 138 each classification or subclassification studiedand for the139roll as a whole,and related statistical and analytical details. 140 The measures in the findings must be based on: 141 1. A 95-percent level of confidence; or 142 2. Ratio study standards that are generally accepted by 143 professional appraisal organizations in developing a 144 statistically valid sampling plan if a 95-percent level of 145 confidence is not attainable. 146 (g) Notwithstanding any other provision of this chapter, in 147 one or more assessment years following a natural disaster in 148 counties for which a state of emergency was declared by 149 executive order or proclamation of the Governor pursuant to 150 chapter 252, if the department determines that the natural 151 disaster creates difficulties in its statistical and analytical 152 reviews of the assessment rolls in affected counties, the 153 department shall take all practicable steps to maximize the 154 representativeness and reliability of its statistical and 155 analytical reviews and may use the best information available to 156 estimate the levels of assessment. This paragraph first applies 157 to the 2019 assessment roll and operates retroactively to 158 January 1, 2019. 159 (3)(a) Upon completion of review pursuant to paragraph 160 (2)(f), the department shall publish the results of reviews 161 conducted under this section. The results must include all 162 statistical and analytical measures computed under this section 163 for the real property assessment rollas a whole, the personal164property assessment roll as a whole,and independently for the 165 following real property classes if the classes constituted 5 166 percent or more of the total assessed value of real property in 167 a county on the previous tax roll: 168 1. Residential property that consists of one primary living 169 unit, including, but not limited to, single-family residences, 170 condominiums, cooperatives, and mobile homes. 171 2. Residential property that consists of two to nineor172moreprimary living units. 173 3. Agricultural, high-water recharge, historic property 174 used for commercial or certain nonprofit purposes, and other 175 use-valued property. 176 4. Vacant lots. 177 5. Nonagricultural acreage and other undeveloped parcels. 178 6. Improved commercial and industrial property, including 179 apartments with more than nine units. 180 7. Taxable institutional or governmental, utility, locally 181 assessed railroad, oil, gas and mineral land, subsurface rights, 182 and other real property. 183 184 If one of the above classes constituted less than 5 percent of 185 the total assessed value of all real property in a county on the 186 previous assessment roll, the department may combine it with one 187 or more other classes of real property for purposes of 188 assessment ratio studies or use the weighted average of the 189 other classes for purposes of calculating the level of 190 assessment for all real property in a county. The department 191 shall also publish such results for any subclassifications of 192 the classes or the assessment rollrollsit may have chosen to 193 study. 194 Section 4. Subsection (6) of section 206.8741, Florida 195 Statutes, is amended to read: 196 206.8741 Dyeing and marking; notice requirements.— 197 (6) Any person who fails to provide or post the required 198 notice with respect to any dyed diesel fuel is subject to a 199 penalty of $2,500 for each month such failure occursthe penalty200imposed by s. 206.872(11). 201 Section 5. Paragraph (a) of subsection (1) of section 202 212.05, Florida Statutes, is amended to read: 203 212.05 Sales, storage, use tax.—It is hereby declared to be 204 the legislative intent that every person is exercising a taxable 205 privilege who engages in the business of selling tangible 206 personal property at retail in this state, including the 207 business of making mail order sales, or who rents or furnishes 208 any of the things or services taxable under this chapter, or who 209 stores for use or consumption in this state any item or article 210 of tangible personal property as defined herein and who leases 211 or rents such property within the state. 212 (1) For the exercise of such privilege, a tax is levied on 213 each taxable transaction or incident, which tax is due and 214 payable as follows: 215 (a)1.a. At the rate of 6 percent of the sales price of each 216 item or article of tangible personal property when sold at 217 retail in this state, computed on each taxable sale for the 218 purpose of remitting the amount of tax due the state, and 219 including each and every retail sale. 220 b. Each occasional or isolated sale of an aircraft, boat, 221 mobile home, or motor vehicle of a class or type which is 222 required to be registered, licensed, titled, or documented in 223 this state or by the United States Government shall be subject 224 to tax at the rate provided in this paragraph. The department 225 shall by rule adopt any nationally recognized publication for 226 valuation of used motor vehicles as the reference price list for 227 any used motor vehicle which is required to be licensed pursuant 228 to s. 320.08(1), (2), (3)(a), (b), (c), or (e), or (9). If any 229 party to an occasional or isolated sale of such a vehicle 230 reports to the tax collector a sales price which is less than 80 231 percent of the average loan price for the specified model and 232 year of such vehicle as listed in the most recent reference 233 price list, the tax levied under this paragraph shall be 234 computed by the department on such average loan price unless the 235 parties to the sale have provided to the tax collector an 236 affidavit signed by each party, or other substantial proof, 237 stating the actual sales price. Any party to such sale who 238 reports a sales price less than the actual sales price is guilty 239 of a misdemeanor of the first degree, punishable as provided in 240 s. 775.082 or s. 775.083. The department shall collect or 241 attempt to collect from such party any delinquent sales taxes. 242 In addition, such party shall pay any tax due and any penalty 243 and interest assessed plus a penalty equal to twice the amount 244 of the additional tax owed. Notwithstanding any other provision 245 of law, the Department of Revenue may waive or compromise any 246 penalty imposed pursuant to this subparagraph. 247 2. This paragraph does not apply to the sale of a boat or 248 aircraft by or through a registered dealer under this chapter to 249 a purchaser who, at the time of taking delivery, is a 250 nonresident of this state, does not make his or her permanent 251 place of abode in this state, and is not engaged in carrying on 252 in this state any employment, trade, business, or profession in 253 which the boat or aircraft will be used in this state, or is a 254 corporation none of the officers or directors of which is a 255 resident of, or makes his or her permanent place of abode in, 256 this state, or is a noncorporate entity that has no individual 257 vested with authority to participate in the management, 258 direction, or control of the entity’s affairs who is a resident 259 of, or makes his or her permanent abode in, this state. For 260 purposes of this exemption, either a registered dealer acting on 261 his or her own behalf as seller, a registered dealer acting as 262 broker on behalf of a seller, or a registered dealer acting as 263 broker on behalf of the purchaser may be deemed to be the 264 selling dealer. This exemption shall not be allowed unless: 265 a. The purchaser removes a qualifying boat, as described in 266 sub-subparagraph f., from the state within 90 days after the 267 date of purchase or extension, or the purchaser removes a 268 nonqualifying boat or an aircraft from this state within 10 days 269 after the date of purchase or, when the boat or aircraft is 270 repaired or altered, within 20 days after completion of the 271 repairs or alterations; or if the aircraft will be registered in 272 a foreign jurisdiction and: 273 (I) Application for the aircraft’s registration is properly 274 filed with a civil airworthiness authority of a foreign 275 jurisdiction within 10 days after the date of purchase; 276 (II) The purchaser removes the aircraft from the state to a 277 foreign jurisdiction within 10 days after the date the aircraft 278 is registered by the applicable foreign airworthiness authority; 279 and 280 (III) The aircraft is operated in the state solely to 281 remove it from the state to a foreign jurisdiction. 282 283 For purposes of this sub-subparagraph, the term “foreign 284 jurisdiction” means any jurisdiction outside of the United 285 States or any of its territories; 286 b. The purchaser, within 9030days from the date of 287 departure, provides the department with written proof that the 288 purchaser licensed, registered, titled, or documented the boat 289 or aircraft outside the state. If such written proof is 290 unavailable, within 9030days the purchaser shall provide proof 291 that the purchaser applied for such license, title, 292 registration, or documentation. The purchaser shall forward to 293 the department proof of title, license, registration, or 294 documentation upon receipt; 295 c. The purchaser, within 3010days of removing the boat or 296 aircraft from Florida, furnishes the department with proof of 297 removal in the form of receipts for fuel, dockage, slippage, 298 tie-down, or hangaring from outside of Florida. The information 299 so provided must clearly and specifically identify the boat or 300 aircraft; 301 d. The selling dealer, within 305days of the date of 302 sale, provides to the department a copy of the sales invoice, 303 closing statement, bills of sale, and the original affidavit 304 signed by the purchaser attesting that he or she has read the 305 provisions of this section; 306 e. The seller makes a copy of the affidavit a part of his 307 or her record for as long as required by s. 213.35; and 308 f. Unless the nonresident purchaser of a boat of 5 net tons 309 of admeasurement or larger intends to remove the boat from this 310 state within 10 days after the date of purchase or when the boat 311 is repaired or altered, within 20 days after completion of the 312 repairs or alterations, the nonresident purchaser applies to the 313 selling dealer for a decal which authorizes 90 days after the 314 date of purchase for removal of the boat. The nonresident 315 purchaser of a qualifying boat may apply to the selling dealer 316 within 60 days after the date of purchase for an extension decal 317 that authorizes the boat to remain in this state for an 318 additional 90 days, but not more than a total of 180 days, 319 before the nonresident purchaser is required to pay the tax 320 imposed by this chapter. The department is authorized to issue 321 decals in advance to dealers. The number of decals issued in 322 advance to a dealer shall be consistent with the volume of the 323 dealer’s past sales of boats which qualify under this sub 324 subparagraph. The selling dealer or his or her agent shall mark 325 and affix the decals to qualifying boats in the manner 326 prescribed by the department, before delivery of the boat. 327 (I) The department is hereby authorized to charge dealers a 328 fee sufficient to recover the costs of decals issued, except the 329 extension decal shall cost $425. 330 (II) The proceeds from the sale of decals will be deposited 331 into the administrative trust fund. 332 (III) Decals shall display information to identify the boat 333 as a qualifying boat under this sub-subparagraph, including, but 334 not limited to, the decal’s date of expiration. 335 (IV) The department is authorized to require dealers who 336 purchase decals to file reports with the department and may 337 prescribe all necessary records by rule. All such records are 338 subject to inspection by the department. 339 (V) Any dealer or his or her agent who issues a decal 340 falsely, fails to affix a decal, mismarks the expiration date of 341 a decal, or fails to properly account for decals will be 342 considered prima facie to have committed a fraudulent act to 343 evade the tax and will be liable for payment of the tax plus a 344 mandatory penalty of 200 percent of the tax, and shall be liable 345 for fine and punishment as provided by law for a conviction of a 346 misdemeanor of the first degree, as provided in s. 775.082 or s. 347 775.083. 348 (VI) Any nonresident purchaser of a boat who removes a 349 decal before permanently removing the boat from the state, or 350 defaces, changes, modifies, or alters a decal in a manner 351 affecting its expiration date before its expiration, or who 352 causes or allows the same to be done by another, will be 353 considered prima facie to have committed a fraudulent act to 354 evade the tax and will be liable for payment of the tax plus a 355 mandatory penalty of 200 percent of the tax, and shall be liable 356 for fine and punishment as provided by law for a conviction of a 357 misdemeanor of the first degree, as provided in s. 775.082 or s. 358 775.083. 359 (VII) The department is authorized to adopt rules necessary 360 to administer and enforce this subparagraph and to publish the 361 necessary forms and instructions. 362 (VIII) The department is hereby authorized to adopt 363 emergency rules pursuant to s. 120.54(4) to administer and 364 enforce the provisions of this subparagraph. 365 366 If the purchaser fails to remove the qualifying boat from this 367 state within the maximum 180 days after purchase or a 368 nonqualifying boat or an aircraft from this state within 10 days 369 after purchase or, when the boat or aircraft is repaired or 370 altered, within 20 days after completion of such repairs or 371 alterations, or permits the boat or aircraft to return to this 372 state within 6 months from the date of departure, except as 373 provided in s. 212.08(7)(fff), or if the purchaser fails to 374 furnish the department with any of the documentation required by 375 this subparagraph within the prescribed time period, the 376 purchaser shall be liable for use tax on the cost price of the 377 boat or aircraft and, in addition thereto, payment of a penalty 378 to the Department of Revenue equal to the tax payable. This 379 penalty shall be in lieu of the penalty imposed by s. 212.12(2). 380 The maximum 180-day period following the sale of a qualifying 381 boat tax-exempt to a nonresident may not be tolled for any 382 reason. 383 Section 6. Paragraph (b) of subsection (1) of section 384 213.21, Florida Statutes, is amended to read: 385 213.21 Informal conferences; compromises.— 386 (1) 387 (b) The statute of limitations upon the issuance of final 388 assessments and the period for filing a claim for refund as 389 required by s. 215.26(2) for any transactions occurring during 390 the audit period shall be tolled during the period in which the 391 taxpayer is engaged in a procedure under this section. 392 Section 7. This act shall take effect July 1, 2020.