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House Bill 0021

House Bill hb0021er

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  1                                 

  2         An act relating to taxation; amending s.

  3         199.185, F.S.; increasing exemptions for

  4         taxpayers who are natural persons; creating

  5         exemptions for taxpayers who are not natural

  6         persons; repealing s. 213.27(9), F.S., which

  7         authorizes the Department of Revenue to

  8         contract with certain vendors to develop and

  9         implement a voluntary system for sales and use

10         tax collection and administration; creating s.

11         213.256, F.S., the Simplified Sales and Use Tax

12         Administration Act; defining terms; authorizing

13         the department's participation in the

14         Streamlined Sales and Use Tax Agreement;

15         providing that each state that is a party to

16         the agreement must abide by certain

17         requirements in order for the department to

18         enter into the agreement; ensuring that when

19         this state complies with the agreement, the

20         agreement cannot be used to challenge existing

21         state laws and statutes; providing for the

22         collection and remittance of the sales and use

23         tax under the agreement; providing for

24         maintenance of confidentiality of certain

25         information; providing a penalty; requiring the

26         department to make annual recommendations to

27         the Legislature concerning provisions that need

28         to be adopted in order to bring this state's

29         system into compliance with the Streamlined

30         Sales and Use Tax Agreement; abrogating the

31         expiration of s. 215.20(3), F.S.; relating to


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  1         service charges against certain trust funds;

  2         creating s. 220.187, F.S.; providing purpose;

  3         defining terms; providing a credit against the

  4         tax for contributions to a nonprofit

  5         scholarship-funding organization; providing

  6         limitations; providing for use of such

  7         contributions by such organizations for

  8         scholarships for certain students and providing

  9         requirements and limitations with respect

10         thereto; providing for payment; providing

11         requirements for deposit of eligible

12         contributions; providing duties of the

13         Department of Revenue and Department of

14         Education; establishing criteria for nonpublic

15         school eligibility; providing for duties of the

16         Department of Revenue and the Department of

17         Education; providing for rules; amending s.

18         220.02, F.S.; providing order of credits

19         against the tax; amending s. 220.13, F.S.;

20         providing for the inclusion of amounts taken as

21         credit under s. 220.187, F.S., in determining a

22         taxpayer's adjusted federal income; amending s.

23         213.053, F.S.; authorizing information-sharing

24         with the Department of Education; amending s.

25         212.08, F.S.; revising the application of the

26         sales tax exemption for the sale of drinking

27         water in bottles or other containers; providing

28         effective dates.

29  

30  Be It Enacted by the Legislature of the State of Florida:

31  


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  1         Section 1.  Effective January 1, 2002, subsection (2)

  2  of section 199.185, Florida Statutes, is amended to read:

  3         199.185  Property exempted from annual and nonrecurring

  4  taxes.--

  5         (2)  Every natural person is entitled each year to an

  6  exemption of the first $250,000 $20,000 of the value of

  7  property otherwise subject to the annual tax.  A husband and

  8  wife filing jointly shall have an exemption of $500,000

  9  $40,000.  Every taxpayer that is not a natural person is

10  entitled each year to an exemption of the first $250,000 of

11  the value of property otherwise subject to the tax.  Agents

12  and fiduciaries, other than guardians and custodians under a

13  gifts-to-minors act, filing as such may not claim this

14  exemption on behalf of their principals or beneficiaries;

15  however, if the principal or beneficiary returns the property

16  held by the agent or fiduciary and is a natural person, the

17  principal or beneficiary may claim the exemption.  No taxpayer

18  shall be entitled to more than one exemption under this

19  subsection.  This exemption shall not apply to that intangible

20  personal property described in s. 199.023(1)(d).

21         Section 2.  Subsection (9) of section 213.27, Florida

22  Statutes, is repealed.

23         Section 3.  Section 213.256, Florida Statutes, is

24  created to read:

25         213.256  Simplified Sales and Use Tax Administration

26  Act.--

27         (1)  As used in this section, the term:

28         (a)  "Department" means the Department of Revenue.

29         (b)  "Agreement" means the Streamlined Sales and Use

30  Tax Agreement as amended and adopted on January 27, 2001, by

31  


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  1  the Executive Committee of the National Conference of State

  2  Legislatures.

  3         (c)  "Certified automated system" means software

  4  certified jointly by the states that are signatories to the

  5  agreement to calculate the tax imposed by each jurisdiction on

  6  a transaction, determine the amount of tax to remit to the

  7  appropriate state, and maintain a record of the transaction.

  8         (d)  "Certified service provider" means an agent

  9  certified jointly by the states that are signatories to the

10  agreement to perform all of the seller's sales tax functions.

11         (e)  "Person" means an individual, trust, estate,

12  fiduciary, partnership, limited liability company, limited

13  liability partnership, corporation, or any other legal entity.

14         (f)  "Sales tax" means the tax levied under chapter

15  212.

16         (g)  "Seller" means any person making sales, leases, or

17  rentals of personal property or services.

18         (h)  "State" means any state of the United States and

19  the District of Columbia.

20         (i)  "Use tax" means the tax levied under chapter 212.

21         (2)(a)  The executive director of the department shall

22  enter into the Streamlined Sales and Use Tax Agreement with

23  one or more states to simplify and modernize sales and use tax

24  administration in order to substantially reduce the burden of

25  tax compliance for all sellers and for all types of commerce.

26  In furtherance of the agreement, the executive director of the

27  department or his or her designee shall act jointly with other

28  states that are members of the agreement to establish

29  standards for certification of a certified service provider

30  and certified automated system and establish performance

31  standards for multistate sellers.


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  1         (b)  The executive director of the department or his or

  2  her designee shall take other actions reasonably required to

  3  administer this section. Other actions authorized by this

  4  section include, but are not limited to, the adoption of rules

  5  and the joint procurement, with other member states, of goods

  6  and services in furtherance of the cooperative agreement.

  7         (c)  The executive director of the department or his or

  8  her designee may represent this state before the other states

  9  that are signatories to the agreement.

10         (3)  The executive director of the department may not

11  enter into the Streamlined Sales and Use Tax Agreement unless

12  the agreement requires each state to abide by the following

13  requirements:

14         (a)  The agreement must set restrictions to limit, over

15  time, the number of state tax rates.

16         (b)  The agreement must establish uniform standards

17  for:

18         1.  The sourcing of transactions to taxing

19  jurisdictions.

20         2.  The administration of exempt sales.

21         3.  Sales and use tax returns and remittances.

22         (c)  The agreement must provide a central electronic

23  registration system that allows a seller to register to

24  collect and remit sales and use taxes for all signatory

25  states.

26         (d)  The agreement must provide that registration with

27  the central registration system and the collection of sales

28  and use taxes in the signatory state will not be used as a

29  factor in determining whether the seller has nexus with a

30  state for any tax.

31  


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  1         (e)  The agreement must provide for reduction of the

  2  burdens of complying with local sales and use taxes through:

  3         1.  Restricting variances between the state and local

  4  tax bases.

  5         2.  Requiring states to administer any sales and use

  6  taxes levied by local jurisdictions within the state so that

  7  sellers who collect and remit these taxes will not have to

  8  register or file returns with, remit funds to, or be subject

  9  to independent audits from local taxing jurisdictions.

10         3.  Restricting the frequency of changes in the local

11  sales and use tax rates and setting effective dates for the

12  application of local jurisdictional boundary changes to local

13  sales and use taxes.

14         4.  Providing notice of changes in local sales and use

15  tax rates and of local changes in the boundaries of local

16  taxing jurisdictions.

17         (f)  The agreement must outline any monetary allowances

18  that are to be provided by the states to sellers or certified

19  service providers. The agreement must allow for a joint study

20  by the public and private sectors, which must be completed by

21  July 1, 2002, of the compliance cost to sellers and certified

22  service providers of collecting sales and use taxes for state

23  and local governments under various levels of complexity.

24         (g)  The agreement must require each state to certify

25  compliance with the terms of the agreement before joining and

26  to maintain compliance, under the laws of the member state,

27  with all provisions of the agreement while a member.

28         (h)  The agreement must require each state to adopt a

29  uniform policy for certified service providers which protects

30  the privacy of consumers and maintains the confidentiality of

31  tax information.


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  1         (i)  The agreement must provide for the appointment of

  2  an advisory council of private-sector representatives and an

  3  advisory council of nonmember state representatives to consult

  4  within the administration of the agreement.

  5         (4)  For the purposes of reviewing or amending the

  6  agreement to embody the simplification requirements as set

  7  forth in subsection (3), this state shall enter into

  8  multistate discussions. For purposes of such discussions, this

  9  state shall be represented by three delegates, one appointed

10  by the President of the Senate, one appointed by the Speaker

11  of the House of Representatives, and the executive director of

12  the department or his or her designee.

13         (5)  No provision of the agreement authorized by this

14  section in whole or in part invalidates or amends any

15  provision of the laws of this state. Adoption of the agreement

16  by this state does not amend or modify any law of the state.

17  Implementation of any condition of the agreement in this

18  state, whether adopted before, at, or after membership of this

19  state in the agreement, must be by the action of the state.

20         (6)  The agreement authorized by this section is an

21  accord among individual cooperating sovereigns in furtherance

22  of their governmental functions. The agreement provides a

23  mechanism among the member states to establish and maintain a

24  cooperative, simplified system for the application and

25  administration of sales and use taxes under the duly adopted

26  law of each member state.

27         (7)(a)  The agreement authorized by this act binds and

28  inures only to the benefit of this state and the other member

29  states. No person, other than a member state, is an intended

30  beneficiary of the agreement. Any benefit to a person other

31  


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  1  than a state is established by the laws of this state and of

  2  other member states and not by the terms of the agreement.

  3         (b)  Consistent with paragraph (a), no person has any

  4  cause of action or defense under the agreement or by virtue of

  5  this state's approval of the agreement. No person may

  6  challenge, in any action brought under any provision of law,

  7  any action or inaction by any department, agency, or other

  8  instrumentality of this state, or of any political subdivision

  9  of this state, on the ground that the action or inaction is

10  inconsistent with the agreement.

11         (c)  No law of this state, or the application thereof,

12  may be declared invalid as to any person or circumstance on

13  the ground that the provision or application is inconsistent

14  with the agreement.

15         (8)(a)  A certified service provider is the agent of a

16  seller with whom the certified service provider has contracted

17  for the collection and remittance of sales and use taxes. As

18  the seller's agent, the certified service provider is liable

19  for sales and use tax due each member state on all sales

20  transactions it processes for the seller except as set out in

21  this subsection.

22         (b)  A seller that contracts with a certified service

23  provider is not liable to the state for sales or use tax due

24  on transactions processed by the certified service provider

25  unless the seller has misrepresented the type of items it

26  sells or has committed fraud. In the absence of probable cause

27  to believe that the seller has committed fraud or made a

28  material misrepresentation, the seller is not subject to audit

29  on the transactions processed by the certified service

30  provider. A seller is subject to audit for transactions that

31  have not been processed by the certified service provider. The


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  1  member states acting jointly may perform a system check of the

  2  seller and review the seller's procedures to determine if the

  3  certified service provider's system is functioning properly

  4  and to determine the extent to which the seller's transactions

  5  are being processed by the certified service provider.

  6         (c)  A person that provides a certified automated

  7  system is responsible for the proper functioning of that

  8  system and is liable to the state for underpayments of tax

  9  attributable to errors in the functioning of the certified

10  automated system. A seller that uses a certified automated

11  system remains responsible and is liable to the state for

12  reporting and remitting tax.

13         (d)  A seller that has a proprietary system for

14  determining the amount of tax due on transactions and has

15  signed an agreement establishing a performance standards for

16  that system is liable for the failure of the system to meet

17  the performance standard.

18         (9)  Disclosure of information necessary under this

19  section must be pursuant to a written agreement between the

20  executive director of the department or his or her designee

21  and the certified service provider. The certified service

22  provider is bound by the same requirements of confidentiality

23  as the department. Breach of confidentiality is a misdemeanor

24  of the first degree, punishable as provided in s. 775.082 or

25  s. 775.083.

26         (10)  On or before January 1 annually, the department

27  shall provide recommendations to the President of the Senate,

28  the Senate Minority Leader, the Speaker of the House of

29  Representatives, and the Minority Leader of the House of

30  Representatives for provisions to be adopted for inclusion

31  


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  1  within the system which are necessary to bring it into

  2  compliance with the Streamlined Sales and Use Tax Agreement.

  3         Section 4.  Effective July 1, 2001, notwithstanding

  4  section 10 of chapter 90-110, Laws of Florida, subsection (3)

  5  of section 215.20, Florida Statutes, shall not expire on

  6  October 1, 2001, as scheduled by that law, but subsection (3)

  7  of section 215.20, Florida Statutes, is revived and readopted.

  8         Section 5.  Effective January 1, 2002, and applying to

  9  tax years beginning on or after that date, section 220.187,

10  Florida Statutes, is created to read:

11         220.187  Credits for contributions to nonprofit

12  scholarship-funding organizations.--

13         (1)  PURPOSE.--The purpose of this section is to:

14         (a)  Encourage private, voluntary contributions to

15  nonprofit scholarship-funding organizations.

16         (b)  Expand educational opportunities for children of

17  families that have limited financial resources.

18         (c)  Enable children in this state to achieve a greater

19  level of excellence in their education.

20         (2)  DEFINITIONS.--As used in this section, the term:

21         (a)  "Department" means the Department of Revenue.

22         (b)  "Eligible contribution" means a monetary

23  contribution from a taxpayer, subject to the restrictions

24  provided in this section, to an eligible nonprofit

25  scholarship-funding organization. The taxpayer making the

26  contribution may not designate a specific child as the

27  beneficiary of the contribution. The taxpayer may not

28  contribute more than $5 million to any single eligible

29  nonprofit scholarship-funding organization.

30         (c)  "Eligible nonpublic school" means a nonpublic

31  school located in Florida that offers an education to students


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  1  in any grades K-12 and that meets the requirements in

  2  subsection (5).

  3         (d)  "Eligible nonprofit scholarship-funding

  4  organization" means a charitable organization that is exempt

  5  from federal income tax pursuant to s. 501(c)(3) of the

  6  Internal Revenue Code and that complies with the provisions of

  7  subsection (4).

  8         (e)  "Qualified student" means a student who qualifies

  9  for free or reduced-price school lunches under the National

10  School Lunch Act and who:

11         1.  Was counted as a full-time-equivalent student

12  during the previous state fiscal year for purposes of state

13  per-student funding; or

14         2.  Received a scholarship from an eligible nonprofit

15  scholarship-funding organization during the previous school

16  year.

17         (3)  AUTHORIZATION TO GRANT SCHOLARSHIP FUNDING TAX

18  CREDITS; LIMITATIONS ON INDIVIDUAL AND TOTAL CREDITS.--

19         (a)  There is allowed a credit of 100 percent of an

20  eligible contribution against any tax due for a taxable year

21  under this chapter. However, such a credit may not exceed 75

22  percent of the tax due under this chapter for the taxable

23  year, after the application of any other allowable credits by

24  the taxpayer. However, at least 5 percent of the total

25  statewide amount authorized for the tax credit shall be

26  reserved for taxpayers who meet the definition of a small

27  business provided in s. 288.703(1) at the time of application.

28  The credit granted by this section shall be reduced by the

29  difference between the amount of federal corporate income tax

30  taking into account the credit granted by this section and the

31  


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  1  amount of federal corporate income tax without application of

  2  the credit granted by this section.

  3         (b)  The total amount of tax credit which may be

  4  granted each state fiscal year under this section is $50

  5  million.

  6         (c)  A taxpayer who files a Florida consolidated return

  7  as a member of an affiliated group pursuant to s. 220.131(1)

  8  may be allowed the credit on a consolidated return basis;

  9  however, the total credit taken by the affiliated group is

10  subject to the limitation established under paragraph (a).

11         (4)  OBLIGATIONS OF ELIGIBLE NONPROFIT

12  SCHOLARSHIP-FUNDING ORGANIZATIONS.--

13         (a)  An eligible nonprofit scholarship-funding

14  organization shall provide scholarships, from eligible

15  contributions, to qualified students for:

16         1.  Tuition or textbook expenses for, or transportation

17  to, an eligible nonpublic school. At least 75 percent of the

18  scholarship funding must be used to pay tuition expenses; or

19         2.  Transportation expenses to a Florida public school

20  that is located outside the district in which the student

21  resides.

22         (b)  An eligible nonprofit scholarship-funding

23  organization shall give priority to qualified students who

24  received a scholarship from an eligible nonprofit

25  scholarship-funding organization during the previous school

26  year.

27         (c)  The amount of a scholarship provided to any child

28  for any single school year by all eligible nonprofit

29  scholarship-funding organizations from eligible contributions

30  shall not exceed the following annual limits:

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  1         1.  $3,500 for a scholarship awarded to a student

  2  enrolled in an eligible nonpublic school.

  3         2.  $500 for a scholarship awarded to a student

  4  enrolled in a Florida public school that is located outside

  5  the district in which the student resides.

  6         (d)  The amount of an eligible contribution which may

  7  be accepted by an eligible nonprofit scholarship-funding

  8  organization is limited to the amount needed to provide

  9  scholarships for qualified students which the organization has

10  identified and for which vacancies in eligible nonpublic

11  schools have been identified.

12         (e)  An eligible nonprofit scholarship-funding

13  organization that receives an eligible contribution must spend

14  100 percent of the eligible contribution to provide

15  scholarships in the same state fiscal year in which the

16  contribution was received. No portion of eligible

17  contributions may be used for administrative expenses. All

18  interest accrued from contributions must be used for

19  scholarships.

20         (f)  An eligible nonprofit scholarship-funding

21  organization that receives eligible contributions must provide

22  to the Auditor General an annual financial and compliance

23  audit of its accounts and records conducted by an independent

24  certified public accountant and in accordance with rules

25  adopted by the Auditor General.

26         (g)  Payment of the scholarship by the eligible

27  nonprofit scholarship-funding organization shall be by

28  individual warrant or check made payable to the student's

29  parent. If the parent chooses for his or her child to attend

30  an eligible nonpublic school, the warrant or check must be

31  mailed by the eligible nonprofit scholarship-funding


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  1  organization to the nonpublic school of the parent's choice,

  2  and the parent shall restrictively endorse the warrant or

  3  check to the nonpublic school. An eligible nonprofit

  4  scholarship-funding organization shall ensure that, upon

  5  receipt of a scholarship warrant or check, the parent to whom

  6  the warrant or check is made restrictively endorses the

  7  warrant or check to the nonpublic school of the parent's

  8  choice for deposit into the account of the nonpublic school.

  9         (5)  ELIGIBLE NONPUBLIC SCHOOL OBLIGATIONS.--An

10  eligible nonpublic school must:

11         (a)  Demonstrate fiscal soundness by being in operation

12  for one school year or provide the Department of Education

13  with a statement by a certified public accountant confirming

14  that the nonpublic school desiring to participate is insured

15  and the owner or owners have sufficient capital or credit to

16  operate the school for the upcoming year serving the number of

17  students anticipated with expected revenues from tuition and

18  other sources that may be reasonably expected. In lieu of such

19  a statement, a surety bond or letter of credit for the amount

20  equal to the scholarship funds for any quarter may be filed

21  with the department.

22         (b)  Comply with the antidiscrimination provisions of

23  42 U.S.C. s. 2000d.

24         (c)  Meet state and local health and safety laws and

25  codes.

26         (d)  Comply with all state laws relating to general

27  regulation of nonpublic schools.

28         (6)  ADMINISTRATION; RULES.--

29         (a)  If the credit granted pursuant to this section is

30  not fully used in any one year, the unused amount may not be

31  carried forward. A taxpayer may not convey, assign, or


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  1  transfer the credit authorized by this section to another

  2  entity unless all of the assets of the taxpayer are conveyed,

  3  assigned, or transferred in the same transaction.

  4         (b)  An application for a tax credit pursuant to this

  5  section shall be submitted to the department on forms

  6  established by rule of the department.

  7         (c)  The department and the Department of Education

  8  shall develop a cooperative agreement to assist in the

  9  administration of this section. The Department of Education

10  shall be responsible for annually submitting, by March 15, to

11  the department a list of eligible nonprofit

12  scholarship-funding organizations that meet the requirements

13  of paragraph (2)(d) and for monitoring eligibility of

14  nonprofit scholarship-funding organizations that meet the

15  requirements of paragraph (2)(d), eligibility of nonpublic

16  schools that meet the requirements of paragraph (2)(c), and

17  eligibility of expenditures under this section as provided in

18  subsection (4).

19         (d)  The department shall adopt rules necessary to

20  administer this section, including rules establishing

21  application forms and procedures and governing the allocation

22  of tax credits under this section on a first-come,

23  first-served basis.

24         (e)  The Department of Education shall adopt rules

25  necessary to determine eligibility of nonprofit

26  scholarship-funding organizations as defined in paragraph

27  (2)(d) and according to the provisions of subsection (4) and

28  identify qualified students as defined in paragraph (2)(e).

29         (7)  DEPOSITS OF ELIGIBLE CONTRIBUTIONS.--All eligible

30  contributions received by an eligible nonprofit

31  


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  1  scholarship-funding organization shall be deposited in a

  2  manner consistent with s. 18.10(2).

  3         Section 6.  Effective January 1, 2002, and applying to

  4  tax years beginning on or after that date, subsection (8) of

  5  section 220.02, Florida Statutes, is amended to read:

  6         220.02  Legislative intent.--

  7         (8)  It is the intent of the Legislature that credits

  8  against either the corporate income tax or the franchise tax

  9  be applied in the following order: those enumerated in s.

10  631.828, those enumerated in s. 220.191, those enumerated in

11  s. 220.181, those enumerated in s. 220.183, those enumerated

12  in s. 220.182, those enumerated in s. 220.1895, those

13  enumerated in s. 221.02, those enumerated in s. 220.184, those

14  enumerated in s. 220.186, those enumerated in s. 220.1845,

15  those enumerated in s. 220.19, and those enumerated in s.

16  220.185, and those enumerated in s. 220.187.

17         Section 7.  Effective January 1, 2002, and applying to

18  tax years beginning on or after that date, paragraph (a) of

19  subsection (1) of section 220.13, Florida Statutes, is amended

20  to read:

21         220.13  "Adjusted federal income" defined.--

22         (1)  The term "adjusted federal income" means an amount

23  equal to the taxpayer's taxable income as defined in

24  subsection (2), or such taxable income of more than one

25  taxpayer as provided in s. 220.131, for the taxable year,

26  adjusted as follows:

27         (a)  Additions.--There shall be added to such taxable

28  income:

29         1.  The amount of any tax upon or measured by income,

30  excluding taxes based on gross receipts or revenues, paid or

31  accrued as a liability to the District of Columbia or any


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  1  state of the United States which is deductible from gross

  2  income in the computation of taxable income for the taxable

  3  year.

  4         2.  The amount of interest which is excluded from

  5  taxable income under s. 103(a) of the Internal Revenue Code or

  6  any other federal law, less the associated expenses disallowed

  7  in the computation of taxable income under s. 265 of the

  8  Internal Revenue Code or any other law, excluding 60 percent

  9  of any amounts included in alternative minimum taxable income,

10  as defined in s. 55(b)(2) of the Internal Revenue Code, if the

11  taxpayer pays tax under s. 220.11(3).

12         3.  In the case of a regulated investment company or

13  real estate investment trust, an amount equal to the excess of

14  the net long-term capital gain for the taxable year over the

15  amount of the capital gain dividends attributable to the

16  taxable year.

17         4.  That portion of the wages or salaries paid or

18  incurred for the taxable year which is equal to the amount of

19  the credit allowable for the taxable year under s. 220.181.

20  The provisions of this subparagraph shall expire and be void

21  on June 30, 2005.

22         5.  That portion of the ad valorem school taxes paid or

23  incurred for the taxable year which is equal to the amount of

24  the credit allowable for the taxable year under s. 220.182.

25  The provisions of this subparagraph shall expire and be void

26  on June 30, 2005.

27         6.  The amount of emergency excise tax paid or accrued

28  as a liability to this state under chapter 221 which tax is

29  deductible from gross income in the computation of taxable

30  income for the taxable year.

31  


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  1         7.  That portion of assessments to fund a guaranty

  2  association incurred for the taxable year which is equal to

  3  the amount of the credit allowable for the taxable year.

  4         8.  In the case of a nonprofit corporation which holds

  5  a pari-mutuel permit and which is exempt from federal income

  6  tax as a farmers' cooperative, an amount equal to the excess

  7  of the gross income attributable to the pari-mutuel operations

  8  over the attributable expenses for the taxable year.

  9         9.  The amount taken as a credit for the taxable year

10  under s. 220.1895.

11         10.  Up to nine percent of the eligible basis of any

12  designated project which is equal to the credit allowable for

13  the taxable year under s. 220.185.

14         11.  The amount taken as a credit for the taxable year

15  under s. 220.187.

16         Section 8.  Effective January 1, 2002, and applying to

17  tax years beginning on or after that date, paragraph (u) is

18  added to subsection (7) of section 213.053, Florida Statutes,

19  to read:

20         213.053  Confidentiality and information sharing.--

21         (7)  Notwithstanding any other provision of this

22  section, the department may provide:

23         (u)  Information relative to s. 220.187 to the

24  Department of Education in the conduct of its official

25  business.

26  

27  Disclosure of information under this subsection shall be

28  pursuant to a written agreement between the executive director

29  and the agency.  Such agencies, governmental or

30  nongovernmental, shall be bound by the same requirements of

31  confidentiality as the Department of Revenue.  Breach of


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  1  confidentiality is a misdemeanor of the first degree,

  2  punishable as provided by s. 775.082 or s. 775.083.

  3         Section 9.  (1)  The first two payments of estimated

  4  tax pursuant to section 200.33, Florida Statutes, shall not be

  5  affected by any contribution made pursuant to this act.

  6         (2)  This section shall take effect January 1, 2002,

  7  and apply to tax years beginning on or after that date.

  8         Section 10.  Effective July 1, 2001, paragraph (a) of

  9  subsection (4) of section 212.08, Florida Statutes, is amended

10  to read:

11         212.08  Sales, rental, use, consumption, distribution,

12  and storage tax; specified exemptions.--The sale at retail,

13  the rental, the use, the consumption, the distribution, and

14  the storage to be used or consumed in this state of the

15  following are hereby specifically exempt from the tax imposed

16  by this chapter.

17         (4)  EXEMPTIONS; ITEMS BEARING OTHER EXCISE TAXES,

18  ETC.--

19         (a)  Also exempt are:

20         1.  Water delivered to the purchaser through pipes or

21  conduits or delivered for irrigation purposes. The sale of

22  drinking water in bottles, cans, or other containers,

23  including water that contains minerals or carbonation in its

24  natural state or water to which minerals have been added at a

25  water treatment facility regulated by the Department of

26  Environmental Protection or the Department of Health, is

27  exempt. This exemption does not apply to the sale of drinking

28  water in bottles, cans, or other containers if carbonation,

29  minerals, or flavorings, except those added at a water

30  treatment facility, have been added. Water that has been

31  


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  1  enhanced by the addition of minerals and that does not contain

  2  any added carbonation or flavorings is also exempt.

  3         2.  All fuels used by a public or private utility,

  4  including any municipal corporation or rural electric

  5  cooperative association, in the generation of electric power

  6  or energy for sale.  Fuel other than motor fuel and diesel

  7  fuel is taxable as provided in this chapter with the exception

  8  of fuel expressly exempt herein.  Motor fuels and diesel fuels

  9  are taxable as provided in chapter 206, with the exception of

10  those motor fuels and diesel fuels used by railroad

11  locomotives or vessels to transport persons or property in

12  interstate or foreign commerce, which are taxable under this

13  chapter only to the extent provided herein.  The basis of the

14  tax shall be the ratio of intrastate mileage to interstate or

15  foreign mileage traveled by the carrier's railroad locomotives

16  or vessels that were used in interstate or foreign commerce

17  and that had at least some Florida mileage during the previous

18  fiscal year of the carrier, such ratio to be determined at the

19  close of the fiscal year of the carrier.  This ratio shall be

20  applied each month to the total Florida purchases made in this

21  state of motor and diesel fuels to establish that portion of

22  the total used and consumed in intrastate movement and subject

23  to tax under this chapter. The basis for imposition of any

24  discretionary surtax shall be set forth in s. 212.054. Fuels

25  used exclusively in intrastate commerce do not qualify for the

26  proration of tax.

27         3.  The transmission or wheeling of electricity.

28         Section 11.  Except as otherwise expressly provided in

29  this act, this act shall take effect July 1, 2001.

30  

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