Session Year 2005, Special Session 1

Bill Name: SF0062

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;
disallowing trade or business expense income tax deductions for fines,
penalties, damages or expenses paid to governmental units, defining fine,
penalty, damages or expenses; eliminating the exclusion of certain wages from
allocation to the state of income not derived from a trade or business;
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), providing an income tax subtraction for certain required additions for S
corporation shareholders

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; imposing a gross
receipts tax on the sale of liquor, specifying certain duties of the
commissioner of revenue; excluding event souvenir clothing from the sales tax
exemption for clothing, defining event souvenir clothing; 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 and excluding certain telecommunications equipment from the exemption;
providing for the collection of sales taxes on motor vehicle leases; imposing a
sales tax on wholesales of cigarettes and imposing a floor stocks sales tax;
defining direct business for insurance gross premium tax purposes; eliminating
the repeal of the rental motor vehicle tax

ARTICLE 4 - TAX SHELTER AND
VOLUNTARY COMPLIANCE INITIATIVES

Requiring and providing for the commissioner
of revenue to develop and administer a tax shelter voluntary compliance
initiative, specifying certain eligibility requirements, defining tax shelter;
providing for the registration of tax shelters; specifying certain material
advisors tax shelter or reportable transaction reporting requirements, providing
for assessment of nonreported amounts; imposing penalties for registration or
reporting failure

ARTICLE 5 - MISCELLANEOUS

Reducing 2005 and 2006 market
value credit reimbursements for city local government aid (LGA) payments
purposes; requiring the commissioner of finance to transfer the balance in the
tax relief account to the general fund, limit
(ra)