Legislative Session number- 84

Bill Name: SF0753

Relating to taxation

ARTICLE 1 - INCOME AND CORPORATE FRANCHISE
TAXES

Requiring taxes required to be deducted and withheld by partnerships, S
corporations and trusts to be paid on a quarterly basis as estimated taxes;
modifying the definition of foreign operating corporation; providing a dairy
investment credit against the income tax, specifying certain qualifying
expenditures; modifying the long term care insurance credit; modifying the net
income apportionment formulas for corporations and financial institutions for
franchise tax purposes, increasing the sales factor; providing for income tax
withholding for other than employees performing work for the employer


ARTICLE 2 - FEDERAL UPDATE

Updating certain state income tax and property tax
refund provisions to changes in the internal revenue code (IRC) and the
definition of internal revenue code under tax administration and compliance
provisions

ARTICLE 3 - SALES, USE AND SPECIAL TAXES

Prohibiting commissioner
of administration, state agency or legislative goods or services procurement
contracts with foreign vendors failing to register to collect sales and use
taxes on sales in the state, exemptions, requiring vendor submission of
verification of registration to the agency or legislature; exempting payments
received under the federal tricare program from the health care provider gross
earnings tax; imposing a gross receipts tax on the sale of liquor, specifying
certain duties of the commissioner of revenue; providing for the collection of
sales taxes on motor vehicle leases; excluding transportation, transmission or
distribution of petroleum, liquefied or natural gas, water or steam through
pipes, lines, tanks or mains from the definition of industrial production and
machinery or equipment used in the transportation or distribution from the
definition of capital equipment for sales tax exemption purposes; imposing sales
taxes on wholesales and floor stocks of cigarettes and modifying the bad debt
refund for tobacco taxes paid; requiring the commissioner to deduct from the
proceeds of the solid waste management tax and the metropolitan solid waste
landfill fee amounts equal to direct and indirect administrative costs; defining
direct business for insurance gross premium tax purposes; eliminating the repeal
of the rental motor vehicle tax

ARTICLE 4 - INTERNATIONAL ECONOMIC DEVELOPMENT
ZONE

Providing for designation of foreign trade zones as international economic
development zones by federal foreign trade zone authorities under certain
conditions, specifying certain consideration requirements for designation and
certain powers of the authorities including the authority to establish port
authorities, requiring and providing for preparation of a business plan;
providing certain property, income, franchise, sales and use tax exemptions for
businesses located and individuals operating a trade or business in the zones;
creating a jobs credit for qualified businesses and appropriating money to the
commissioner of revenue for the credit; requiring and providing for repayment of
certain tax incentives upon ceasing operation in the zones; requiring applicants
receiving designation as an international economic development zone to report
annually to the commissioner of employment and economic development (DEED) on
progress in meeting zone goals and compliance with the business subsidy
law

ARTICLE 5 - MISCELLANEOUS

Increasing the limit on the designation of
income tax payments or property tax refunds to the state elections campaign fund
and eliminating certain appropriations from the general fund for transfer
purposes; modifying the residential homestead market value property tax credit;
modifying the definition of rent constituting property taxes for property tax
refund purposes; setting the amount of tax credits or exemptions to be awarded
by the commissioner of employment and economic development (DEED) for
biotechnology and health sciences industry zones in fiscal year 2006; reducing
2005 and 2006 city aid payments; repealing the political contribution refund and
the appropriation to the commissioner of finance of certain positive
unrestricted budgetary general fund balances for transfer to the tax relief
account
(ra)