TAX ON SEVERANCE AND PRODUCTION OF MINERALS
[Footnote 1] 211.3103 Levy of tax on
severance of phosphate rock; rate, basis, and distribution of
tax. ---
(1) There is hereby levied an excise tax upon every person
engaging in the business of severing phosphate rock from the soils or waters
of this state for commercial use. The tax shall be collected, administered,
and enforced by the department.
(2) The proceeds of all taxes, interest, and penalties imposed
under this section shall be paid into the State Treasury through June 30,
1995, as follows:
(a) The first $10 million in revenue collected
from the tax during each fiscal year shall be paid to the credit of the
Conservation and Recreation Lands Trust Fund.
(b) The remaining revenues collected from the tax during that fiscal
year, after the required payment under paragraph (a), shall be paid into the
State Treasury as follows:
1. To the credit of the General Revenue
Fund of the state, 60 percent. However, from this amount the amounts of $7.4
million, $8.2 million, and $8.1 million, respectively, shall be transferred
to the Nonmandatory Land Reclamation Trust Fund on January 1, 1993, January
1, 1994, and January 1, 1995.
2. To the credit of the Nonmandatory Land Reclamation Trust Fund
which is established for reclamation and acquisition of unreclaimed lands
disturbed by phosphate mining and not subject to mandatory reclamation, 20
percent.
3. To the credit of the Phosphate Research Trust Fund which is
created to carry out the purposes set forth in s. 378.101, 10 percent.
4. For payment to counties in proportion to the number of tons of
phosphate rock produced from a phosphate rock matrix located within such
political boundary, 10 percent. The department shall distribute this portion
of the proceeds based on production information reported by producers on the
most recent annual returns filed prior to the beginning of the fiscal year.
Any such proceeds received by a county shall be used only for
phosphate-related expenses.
(3) Beginning July 1, 1995, the proceeds of all taxes, interest,
and penalties imposed under this section shall be paid into the State
Treasury as follows:
(a) The first $10 million in revenue collected
from the tax during each fiscal year shall be paid to the credit of the
Conservation and Recreation Lands Trust Fund.
(b) The remaining revenues collected from the tax during that fiscal
year, after the required payment under paragraph (a), shall be paid into the
State Treasury as follows:
1. To the credit of the General Revenue
Fund of the state, 58 percent.
2. To the credit of the Nonmandatory Land Reclamation Trust Fund
for reclamation and acquisition of unreclaimed lands disturbed by phosphate
mining and not subject to mandatory reclamation, 14.5 percent.
3. To the credit of the Phosphate Research Trust Fund to carry out
the purposes set forth in s. 378.101, 10 percent.
4. For payment to counties in proportion to the number of tons of
phosphate rock produced from a phosphate rock matrix located within such
political boundary, 10 percent. The department shall distribute this portion
of the proceeds based on production information reported by producers on the
most recent annual returns filed prior to the beginning of the fiscal year.
Any such proceeds received by a county shall be used only for
phosphate-related expenses.
5. To the credit of the Minerals Trust Fund, 7.5
percent.
(4) If the base rate is reduced pursuant to paragraph (5)(c),
then the proceeds of the tax shall be paid into the State Treasury as
follows:
(a) The first $10 million in revenue collected from the tax
during each fiscal year shall be paid to the credit of the Conservation and
Recreation Lands Trust Fund.
(b) The remaining revenues collected from the tax during that fiscal
year, after the required payment under paragraph (a), shall be paid into the
State Treasury as follows:
1. To the credit of the General Revenue
Fund of the state, 72.5 percent.
2. To the credit of the Phosphate Research Trust Fund, 10
percent.
3. For payment to counties in proportion to the number of tons of
phosphate rock produced from a phosphate rock matrix located within such
political boundary, 10 percent. The department shall distribute this portion
of the proceeds based on production information reported by producers on the
most recent annual returns filed prior to the beginning of the fiscal year.
Any such proceeds received by a county shall be used only for
phosphate-related expenses.
4. To the credit of the Minerals Trust Fund, 7.5
percent.
(5) The excise tax levied by this section shall apply to the
total production of the producer during the taxable year, measured on the
basis of bone-dry tons produced at the point of severance, subject to the
following rates:
(a) Beginning July 1, 1987, to December 31, 1987,
the tax rate shall be $1.79 per ton severed.
(b) For 1988, the tax rate shall be the base rate of $1.35 per ton
severed.
(c) For 1989 and subsequent years, the tax rate shall be the base
rate times the base rate adjustment for the tax year as calculated by the
department in accordance with subsection (6). However, for 2000 and
subsequent taxable years, the base rate shall be reduced by 20 percent,
unless additional funding of the Nonmandatory Land Reclamation Trust Fund is
approved by law.
(6)
(a) On or before March 30, 1989, and annually
thereafter, the department shall calculate the base rate adjustment, if any,
for phosphate rock based on the change in the unadjusted annual producer
price index for the prior calendar year in relation to the unadjusted annual
producer price index for calendar year 1987.
(b) For the purposes of determining the base rate adjustment for any
year, the base rate adjustment shall be a fraction, the numerator of which is
the unadjusted annual producer price index for the prior calendar year and
the denominator of which is the unadjusted annual producer price index for
calendar year 1987.
(c) The department shall provide the base rate, the base rate
adjustment, and the resulting tax rate to affected producers by written
notice on or before April 15 of the current year.
(d) If the producer price index for phosphate rock primary products
is substantially revised, the department shall make appropriate adjustment in
the method used to compute the base rate adjustment under this subsection
which will produce results reasonably consistent with the result which would
have been obtained if the producer price index for phosphate rock primary
products had not been revised.
(e) In the event the producer price index for phosphate rock primary
products is discontinued, then a comparable index shall be selected by the
department and adopted by rule.
(7) The excise tax levied on the severance of phosphate rock
shall be in addition to any ad valorem taxes levied upon the separately
assessed mineral interest in the real property upon which the site of
severance is located, or any other tax, permit, or license fee imposed by the
state or its political subdivisions.
(8) The tax levied by this section shall be collected in the
manner prescribed in s. 211.33.
(9) When real property or other property of value is accepted as
a donation by a county from a producer, the amount of proceeds returned to
such county under this section shall be reduced by the value of such
donation.
History: s. 3, ch. 81-35; s. 1, ch. 82-184; s. 9, ch. 84-330; s. 6, ch. 87-96;
s. 4, ch. 91-305; s. 3, ch. 91-420; s. 3, ch. 94-197.
[Footnote 1] Note. Section 2, ch. 94-198, provides that:
"(1) The Minerals Trust Fund shall, unless terminated sooner, be
terminated on July 1, 1998.
"(2) Prior to the regular legislative session immediately
preceding the date on which the trust fund is scheduled to be terminated, the
Department of Revenue and the Governor shall recommend to the President of
the Senate and the Speaker of the House of Representatives whether the trust
fund should be allowed to terminate or should be re-created. These
recommendations shall be based on a review of the purpose and use of the
trust fund and a determination of whether the trust fund will continue to be
necessary. A recommendation to re-create the trust fund may include suggested
modifications to the purpose, sources of receipts, and allowable expenditures
for the trust fund. The department's recommendation shall be made as a part
of its legislative budget request to the Legislature pursuant to s. 216.023,
Florida Statutes. The Governor's recommendation shall be made as a part of
the recommended budget presented to the Legislature pursuant to s. 216.162,
Florida Statutes.
"(3) If the trust fund is terminated, the Department of Revenue
shall pay any outstanding debts or obligations of the trust fund as soon as
practicable and the Comptroller shall close out and remove the trust fund
from the various state accounting systems, using generally accepted
accounting practices concerning warrants outstanding, assets, and
liabilities."
