The 2012 Legislature undertook a major rewrite of Chapter 601 resulting in rule amendments including changing the word "tax" to "assessment(s)"

 

DEPARTMENT OF CITRUS

RULE NO.: RULE TITLE:
20-9.001: Fresh Form
20-9.002: Processed Form
20-9.003: Fruit Shipped Out-of-State to Government Agencies, or to a Packinghouse or Processing Plant, or to a Fresh Fruit Juice Distributor
20-9.004: Fruit Handled by Express and Gift Package Shippers
20-9.005: Requirements to Guarantee Payment of Excise Tax
20-9.006: Late Filing of Returns and Inadequacy of Bond
20-9.007: Mixing of Oranges
20-9.008: Utilization of Certificate of Deposit in Lieu of Bond

PURPOSE AND EFFECT: The 2012 Legislature undertook a major rewrite of Chapter 601 resulting in rule amendments including changing the word “tax” to “assessment(s)”.

SUMMARY: Changing the word “tax” to “assessment(s)”.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The amendment is housekeeping in nature, bringing the rules into compliance with changes made to Chapter 601, FS. by the 2012 Legislature.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 601.10(1),(7), 601.15(1),(5),(6),(10)(a), 601.155(3),(7) FS.

LAW IMPLEMENTED: 601.15(3),(5),(6),(9), 601.27, 601.152, 601.154, 601.155 FS.

A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: October 24, 2012, 9:00 a.m.

PLACE: Florida Department of Citrus, 605 East Main Street, Bartow, Florida 33830

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULES IS: Alice Wiggins, License & Regulation Specialist, P. O. Box 9010, Bartow, FL 33831 or [e-mail]

THE FULL TEXT OF THE PROPOSED RULES IS:

PAYMENT OF ASSESSMENTS EXCISE TAXES

20-9.001 Fresh Form.

(1) Filing assessment excise tax returns: All assessment excise tax returns required to be filed by handlers of citrus entering the primary channel of trade in fresh form shall be filed with the Department of Citrus each week with the first cumulative report due by November 10. Returns shall state the number of standard shipping boxes of 4/5 bushels, or equivalent, of each variety of citrus fruit handled during the preceding week. Assessments Excise taxes shall be filed on forms furnished by the Department of Citrus (incorporated by reference in Rule 20-100.004, F.A.C.) and shall be due and payable, or the amount guaranteed as hereinafter provided, when the citrus fruit is first handled in the primary channels of trade allowing a deferral for fruit handled prior to November until the November 10 deadline. Payment of assessments taxes shall be remitted with the assessment excise tax return for a period reported unless other payment schedules are prescribed in Chapter 20-9, F.A.C.

(2) Payment guaranteed by bond, or deposit, or letter of credit: To guarantee payment of assessments excise taxes, handlers shall post a surety bond, cash bond, or certificate of deposit or letter of credit, as provided in either Section 20-9.005, or 20-9.008 or__________, F.A.C.

Rulemaking Authority 601.10(1), 601.15(1),(10)(a) FS. Law Implemented 601.15(5),(6) FS. History–Formerly 105-1.15(1), Revised 1-1-75(2), Amended 2-1-81, Formerly 20-9.01, Amended 7-21-92, 11-27-01, 10-21-08,_________.

20-9.002 Processed Form.

(1) Filing assessment excise tax returns: All assessment excise tax returns required by law to be filed by handlers of citrus fruit sold or delivered for processing in the State shall be filed on forms furnished by the Department of Citrus (incorporated by reference in Rule 20-100.004, F.A.C.), and shall be filed with the Department of Citrus each week with the first cumulative report due by November 10. Returns shall state the number of standard packed boxes of 1-3/5 bushels, or equivalent thereof in other containers or in bulk, received during the preceding week. Assessments Excise taxes shall be due and payable at the time of delivery of such fruit to the handler, allowing a deferral for fruit handled prior to November until the November 10 deadline.

(2) All persons or entities required to file assessment excise tax returns pursuant to Section 601.155, FS., shall file, each week, a an excise tax return on forms furnished by the Department of Citrus (incorporated by reference in Rule 20-100.004, F.A.C.).

(a) All persons liable for the assessment excise tax imposed by this section shall file with the Department of Citrus equalizing assessment excise tax returns, certified as true and correct. The return, as furnished by the Department of Citrus, shall report information as to the number of units of processed orange or grapefruit products subject to this section upon which any assessable taxable privilege was exercised during the period of time covered by the return, in addition to the status of inventoried product. Each handler shall maintain records and documentation supporting declarations made on the excise tax return filed with the Department of Citrus. Unless the actual number of boxes is known to the processor and can be substantiated by appropriate records in his possession, the following table shall be used in determining the equivalent number of boxes:

Conversion Unit
			Number of Equivalent
Product	Oranges	Grapefruit	1-3/5 Bushel Boxes
Concentrate	6.20 solids	4.60 solids	1
Single Strength	6.12 gallons	5.26 gallons	1

(b) Equalizing assessments excise taxes shall be due and payable within 61 days after the first of the assessable taxable privileges is exercised in this state. Assessable Taxable privileges exercised during August are due and payable by November 10, after the assessment tax rate has been established in October.

(c) The assessment excise tax levied by this section shall be at the same rate per box of oranges or grapefruit utilized in the initial production of the processed citrus products so handled as that imposed, at the time of exercise of the assessable taxable privilege, by Section 601.15, FS.

(d) All credits and refunds will be provided by Department of Citrus in accordance with Section 601.155, FS.

(3) Payment of assessments taxes shall be remitted with the excise tax return for the period reported unless other payment schedules are prescribed in Chapter 20-9, F.A.C.

(4) Payment guaranteed by bond, or deposit, or letter of credit: Every handler of citrus shall, prior to opening each season, deposit with the Department of Citrus a surety bond, cash bond, or certificate of deposit, or letter of credit as provided in either Rule 20-9.005 or 20-9.008 F.A.C., to guarantee payment of assessments excise taxes.

Rulemaking Authority 601.10(1), 601.15(1),(10)(a), 601.155(3),(7) FS. Law Implemented 601.15(5),(6), 601.155 FS. History–Formerly 105-1.15(2), Revised 1-1-75, (2), Amended 11-21-77, 8-1-80, (3), 2-1-81, 8-1-83, Formerly 20-9.02, Amended 7-21-86, 8-30-89, 8-27-91, 7-13-94, 10-22-95, 8-1-97, 8-3-00, 11-27-01, 7-23-03, 7-25-06, 10-21-08,_________.

20-9.003 Fruit Shipped Out-of-State to Government Agencies, or to a Packinghouse or Processing Plant, or to a Fresh Fruit Juice Distributor.

The assessments excise taxes on citrus fruit to be shipped outside the State of Florida to government agencies, or to a packinghouse or processing plant, or to a fresh fruit juice distributor, shall be paid by the person shipping or causing such fruit to be shipped outside the state and payment shall be evidenced on the permit under which said fruit is shipped. Persons who qualify with the Department of Citrus under Rule 20-9.005, F.A.C., may stamp on the permit the name of the shipper together with the words “Payment of assessments excise taxes guaranteed to the Department of Citrus.” Returns for such shipments shall be made as provided for in Rule 20-9.001, F.A.C.

Rulemaking Authority 601.10(1), 601.15(1),(10)(a) FS. Law Implemented 601.15(5), (6), 601.152, 601.154 FS. History–Formerly 105-1.15(3), Revised 1-1-75, Formerly 20-9.03, Amended 11-27-01,_________.

20-9.004 Fruit Handled by Express and Gift Package Shippers.

(1) Filing assessment excise tax returns:

(a) Every shipper of express or gift packages shall file, as directed by the Department of Citrus, weekly returns of all fruit shipped in the preceding week with remittance attached for total assessments excise taxes due, with the first cumulative report due by November 10.

(b) A gift shipper qualifying under the following criteria may make returns for longer periods by applying in writing to the Department of Citrus and receiving prior written approval:

1. Quarterly payments – if estimated annual assessment tax payment does not exceed $6,900 maximum.

2. Monthly payments – if estimated annual assessment tax payment does not exceed $30,000 maximum.

3. Weekly payments are required if estimated annual assessment tax is greater than $30,000.

4. Calculation of estimated assessment tax payment is based upon a 7-month season using the total boxes estimated to be shipped and an average assessment tax rate established annually by the Department of Citrus based on assessment tax rates set by the Florida Citrus Commission.

(c) All returns shall be made in terms of standard packed boxes of 1-3/5 bushels or equivalent.

(d) The advertising assessments excise taxes shall be due and payable at the time of offering such fruit for shipment allowing a deferral for fruit handled prior to November until the November 10 deadline.

(2) Fresh Squeezed Juice: Assessments Excise taxes on fresh squeezed citrus juice that is subject to the provisions of Chapter 20-49, F.A.C., shall be due and payable as provided in Rule 20-9.004, F.A.C. However, no assessment tax shall be due if subsection (3) below is applicable.

(3) No assessment tax shall be due on:

(a) fresh fruit used in store demonstrations or promotions, or

(b) Fresh squeezed juice that is offered without charge to store customers, Or

(c) Fresh fruit or juice offered at no cost to nonprofit organizations for use exclusively by the organization and not for resale. Dealer shall maintain in his files a record of the donation and a signed statement from a representative of the organization that the fruit or juice will not be used for resale.

Rulemaking Specific Authority 601.10(1), 601.15(1),(10)(a) FS. Law Implemented 601.15(3),(5),(6), 601.152, 601.154 FS. History– Formerly 105-1.15(4), Revised 1-1-75, Formerly 20-9.04, Amended 12-10-95, 4-14-96, 11-27-01, 10-21-08,_________.

20-9.005 Requirements to Guarantee Payment of Assessments Excise Tax.

To qualify to guarantee to the Department of Citrus payment of any assessment excise tax imposed by law:

(1) Each handler of citrus fruit shall deposit with the Department of Citrus a good and sufficient.

(a) Cash bond, or

(b) Surety bond executed by the handler as principal and by a surety company qualified and authorized to do business in this State as surety, to be approved by the Department of Citrus, or

(c) Certificate of deposit in accordance with the provisions of Rule 20-9.008, F.A.C., or

(d) Letter of credit from an issuing financial institution located in the United States.

(2) The total amount of such cash bond, surety bond, or certificate of deposit, or letter of credit shall be in an amount based upon the following formula:

(a) To determine the total estimated assessment tax liability of the handler, multiply the number of boxes or equivalent boxes utilized in the prior season, or estimated utilization during the current season, including the exercised privileges of imported products, whichever is greater, times the total average assessment tax rate from the prior season for fresh form and processed form.

(b) Divide the total estimated assessment tax (A) by the number of weeks for which assessment tax returns were required to be filed during the previous season (B) to determine the estimated weekly assessment tax due (C) [A) B = C]. Department has the discretion to reduce the number of weeks used in this calculation due to late payments received during the prior season. If returns were filed late four (4) or more times during the previous season, the Department will recalculate the estimated weekly assessment tax due (C) by substituting the. The number of times payments were received the prior season will be substituted for (B).

(c) Multiply by two the estimated weekly assessment excise tax due, as computed by such formula, to determine the amount of surety bond, cash bond, or certificate of deposit, or letter of credit required.

Rulemaking Specific Authority 601.10(1), 601.15(1),(5),(6),(10)(a) FS. Law Implemented 601.15(1),(5),(6), 601.152, 601.154, 601.155 FS. History–Formerly 105-1.15(5), Revised 1-1-75, Amended 11-21-77, 8-1-80, 2-1-81, 8-1-83, Formerly 20-9.05, Amended 11-27-01, 10-21-08,_________.

20-9.006 Late Filing of Returns and Inadequacy of Bond.

All assessments excise taxes levied and imposed on citrus fruit or product shall be paid or the amount thereof guaranteed at the time the fruit is first handled in the primary channel of trade, allowing a deferral for fruit handled prior to November until the November 10 deadline. Payments not made the week following entry into the primary channel of trade become delinquent for payments due after November 10. Payment shall be made in accordance with Rules 20-9.001, 20-9.002, 20-9.003 and 20-9.004, F.A.C.

(1)(a) When any citrus fruit handler becomes delinquent in filing returns or paying citrus assessments excise taxes, the Department of Citrus shall demand payment of such assessments taxes and give written notice of the delinquency to the handler, including notice of the rights of affected parties under Chapter 120, FS. Such notice shall be mailed to the address supplied by the handler to the Department of Citrus in the application for citrus fruit dealer license.

(b) If the assessments taxes are not paid within 28 days of delinquency by the citrus fruit handler and there is no request for hearing under Chapter 120, FS, the Department of Citrus shall notify the Department of Agriculture to immediately suspend inspection service to the reported handler. This suspension will remain in force until returns have been filed and assessments excise taxes plus any penalties are paid to the Department of Citrus. The Department of Citrus shall notify the Department of Agriculture when such payment has been made and inspection services may resume. If payment is not made after suspension of inspection services, the Department of Citrus shall impose a 5% late penalty pursuant to Section 601.15(9)(a), FS., demand immediate payment from the surety of such assessments taxes and penalty, and provide the handler with a copy of such demand. Where the handler has deposited with the Department of Citrus a cash bond, or certificate of deposit, or letter of credit the Department shall immediately proceed against such bond, or certificate of deposit, or letter of credit for the amount of indebtedness.

(2)(a) When the Department of Citrus determines that the handler’s surety bond, cash bond, or certificate of deposit, or letter of credit is inadequate to guarantee assessment tax payment for any 28-day period, the Department of Citrus shall provide written notice to the handler that the amount of guarantee is inadequate, and shall request the handler to furnish an increase increased bond in accordance with the provisions of subsection 20-9.005(2), F.A.C., and give notice of the handler’s rights under Chapter 120, FS.

(b) If the requested increase increased bond is not furnished within 14 days of mailing such written notice to the handler or no request for a hearing under Chapter 120, FS., is received, the Department of Citrus shall notify the Department of Agriculture to immediately suspend inspection service to the reported handler. This suspension shall remain in force until an adequate guarantee is furnished and the Department of Citrus notifies the Department of Agriculture to that effect.

Rulemaking Authority 601.10(1),(7), 601.15(1), (5), (6), (10)(a) FS. Law Implemented 601.15(5), (6), (9), 601.152, 601.154, 601.155(6), (7), (9), 601.27 FS. History–Formerly 105-1.15(6), Revised 1-1-75, Formerly 20-9.06, Amended 12-13-92, 10-17-93, 11-27-01, 10-21-08,_________.

20-9.007 Mixing of Oranges.

Because of the difference in assessment excise tax rates for round oranges (Citrus sinensis, Osbeck) and other types of oranges, such as Temples and tangelos, round oranges shall not be delivered to processing plants mixed with other varieties.

Rulemaking Specific Authority 601.10(1), (7), 601.15(1), (5), (6), (10)(a) FS. Law Implemented 601.15 FS. History–Formerly 105-1.15(7), Revised 1-1-75, Formerly 20-9.07, Amended 7-21-92,________.

20-9.008 Utilization of Certificate of Deposit in Lieu of Bond.

(1) A handler wishing to post a certificate of deposit in lieu of a cash or surety bond to guarantee the payment of citrus assessments excise taxes to the Department of Citrus, shall purchase such certificate in an amount to be determined according to the criteria as set forth in subsection 20-9.005(2), F.A.C. The certificate of deposit shall have the same face principal value as if a surety bond had been posted.

(2) Any certificate of deposit offered under this provision shall be issued either by a national or Florida chartered bank or savings and loan association and the face amount of such certificate shall be fully insured by the appropriate federal insurance corporation.

(3) The certificate of deposit shall be issued in the name of the licensed handler and the State of Florida, Department of Citrus. The handler shall present a certificate of deposit and an executed assignment of such handler’s interest in the certificate in favor of the State of Florida, Department of Citrus on a form to be provided by the Department of Citrus. Such assignment shall be irrevocable for the period from the beginning of the citrus season for which the certificate is submitted or from the date of submission of the certificate of deposit if occurring after commencement of the season, through September 1 of the following citrus season. The certificate of deposit may be reassigned by the Department of Citrus to such handler providing that all citrus assessments excise taxes due and payable to the Department of Citrus by such handler during the term covered by the certificate shall have been paid to the Department in full. The conditions of the assignment from the handler to the Department of Citrus shall be that if the handler shall well and truly comply with the provisions of Florida law and Department of Citrus rules regarding the payment of citrus assessments, excise taxes, then the certificate of deposit subject to such assignment shall be reassigned by the Department of Citrus to the handler, otherwise said assignment to remain in full force and effect.

(4) All interest accruing on such certificate of deposit shall be paid directly to the handler and the handler shall register his federal employer tax number or other federal tax identification number with the financial institution issuing such certificate.

(5) A handler may reassign existing certificates of deposit to the Department of Citrus for subsequent years, provided all assessment tax liabilities for the current season have been satisfied. A separate certificate of deposit for the required amount of the bond otherwise called for must be assigned to the Department of Citrus for each citrus shipping season for which the handler desires to utilize this alternate procedure.

Rulemaking Specific Authority 601.10(1), 601.15(1) FS. Law Implemented 601.15(6)(b) FS. History–New 2-1-81, Formerly 20-9.08, Amended 11-27-01,_________.

NAME OF PERSON ORIGINATING PROPOSED RULE: William Roberts, Acting General Counsel

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Florida Citrus Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: May 16, 2012

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: June 1, 2012