Section 14 of Chapter 2016-220, L.O.F., modified the way “adjusted federal income” is defined and calculated for Florida Corporate Income Tax purposes. The purpose of changes to Rule 12C-1.013, F.A.C., is to provide guidance to taxpayers on how ...

 

DEPARTMENT OF REVENUE

Corporate, Estate and Intangible Tax

RULE NO.: RULE TITLE:

12C-1.013: Adjusted Federal Income Defined

12C-1.0222: Returns; Extensions of Time; Payments of Tentative Tax

12C-1.034: Special Rules Relating to Estimated Tax

12C-1.051: Forms

PURPOSE AND EFFECT: Section 14 of Chapter 2016-220, L.O.F., modified the way “adjusted federal income” is defined and calculated for Florida Corporate Income Tax purposes. The purpose of changes to Rule 12C-1.013, F.A.C., is to provide guidance to taxpayers on how adjusted federal income should now be calculated, particularly with respect to adjustments related to certain depreciation. The changes also remove obsolete provisions related to earlier tax years.

Sections 16 through 19 of Chapter 2016-220, L.O.F., amended provisions in Chapter 220, F.S., to conform the timing of filing returns, making payments, and filing declarations to analogous timing provisions at the federal level. The purpose of the proposed amendments to Rules 12C-1.0222 and 12C-1.034, F.A.C. is to bring the rules into compliance with the statutory changes.

The purpose of the proposed amendments to Rule 12C-1.051, F.A.C., is to adopt, by reference, changes to forms used by the Department in the administration of the corporate income tax.

SUMMARY: The proposed amendments incorporate legislative changes to Rules 12C-1.013, 12C-1.0222, and 12C-1.034, F.A.C., and to forms incorporated in Rule 12C-1.051, F.A.C., which are used by the Department in the administration of the corporate income tax.

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: 1) no requirement for the Statement of Economic Regulatory Costs (SERC) was triggered under Section 120.541(1), F.S.; and 2) based on past experiences regarding the procedures for processing written protests of assessments and rules of this nature, the adverse impact or regulatory cost, if any, do not exceed nor would exceed any one of the economic analysis criteria in a SERC, as set forth in Section 120.541(2)(a), F.S.

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: 213.06(1), 220.192(7), 220.193(4), 220.196(4), 220.24, 220.32(2), 220.34(2)(f), 220.34(3), 220.51, 1002.395(13), FS., Section 4, Chapter 2009-18, Section 3, Chapter 2009-192, L.O.F.

LAW IMPLEMENTED: 119.071(5), 212.08(5)(p), 213.21, 213.755(1), 220.02(3), 220.03(5), 220.11, 220.12, 220.13, 220.131, 220.15, 220.16, 220.181, 220.182, 220.183, 220.184, 220.1845, 220.185, 220.186, 220.1875, 220.1895, 220.1896, 220.1899, 220.191, 220.192, 220.193, 220.194, 220.195, 220.196, 220.21, 220.211, 220.22, 220.221, 220.222, 220.23, 220.24, 220.241, 220.31, 220.32, 220.33, 220.34, 220.41, 220.42, 220.43, 220.44, 220.51, 220.721, 220.723, 220.725, 220.737, 220.801, 220.803, 220.805, 220.807, 220.809, 221.04, 624.5105, 624.51055, 1002.395 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: November 16, 2016, 9:00 a.m.

PLACE: 2450 Shumard Oak Boulevard, Building Two, Room 1220, Tallahassee, Florida

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Becky Nall at [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Kimberly Berg, Technical Assistance and Dispute Resolution, Department of Revenue, P.O. Box 7443, Tallahassee, Florida 32314-7443, telephone [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

12C-1.013 Adjusted Federal Income Defined.

(1) through (13) No change.

(14) Adjustments for excess s. 179, I.R.C., expense, special 50 percent bonus depreciation (s. 168(k), I.R.C.), and deferred cancellation of indebtedness income.

(a) Additions Required:

1. For tax years that begin after December 31, 2007, and before January 1, 2015, in 2008 and 2009 taxpayers are required to add back the amount of the federal deduction claimed under s. 179, I.R.C., that exceeds $128,000, except for tax years beginning in 2010, in which case taxpayers are required to add back the amount of the federal deduction claimed under s. 179, I.R.C., that exceeds $250,000. All amounts in excess of $128,000 ($250,000 for tax years beginning in 2010) are required to be added back, including amounts carried over from previous tax years under s. 179(b)(3)(B), I.R.C. The increased overall investment limitation contained in s. 179(b)(2), I.R.C., is the same for Florida as it is for federal income tax purposes.

2. Taxpayers are required to add back the amount of the federal deduction claimed as special 50 percent bonus depreciation under s. 168(k), I.R.C., for assets placed in service after December 31, 2007, and before January 1, 2021 2010.

3. For indebtedness acquired after December 31, 2008, and before January 1, 2010, taxpayers are required to add back the gross amount of cancellation of indebtedness income that is deferred under s. 108(i), I.R.C. (relating to business indebtedness discharged by the reacquisition of a debt instrument). The deferral of the deduction for original issue discount in debt for debt exchanges required by s. 108(i)(2), I.R.C., is also required for Florida corporate income tax purposes.

(b) through (c) No change.

(d) A schedule reflecting all of the adjustments made under Section 220.13(1)(e), F.S., must be created and maintained. Taxpayers must also report any additions on Schedule I, Additions and/or Adjustments to Federal Taxable Income, of the Florida Corporate Income/Franchise and/or Emergency Excise Tax Return (Form F-1120, incorporated by reference in Rule 12C-1.051, F.A.C.) and any subtractions on Schedule II (Subtractions from Federal Taxable Income), of the return for the current tax year. Partnerships filing a Florida Partnership Information Return (Form F-1065, incorporated by reference in Rule 12C-1.051, F.A.C.) are required to make the adjustments required by Sections 220.13(1)(e)1. and 3., F.S., on Part I (Florida Adjustment to Partnership Income), of the return. The additions and subtractions under Sections 220.13(1)(e)1. and 3., F.S., must be reported in Part I of Form F-1065. Partnerships must report the amount of expenses claimed under s. 179, I.R.C., to their partners, so that their partners can compute the amount under subparagraph (14)(a)1., F.A.C.

(e) No change.

(f) Example: On its calendar-year 2014 2009 federal income tax return, Taxpayer claimed $250,000 in s. 179, I.R.C., expense, of which $25,000 was a carryover from 2011 2006 allowed under s. 179(b)(3)(B), I.R.C. Taxpayer also claimed $300,000 in special 50 percent bonus depreciation under I.R.C. s. 168(k) and $50,000 of depreciation under I.R.C. s. 168(b) for assets placed in service during the 2014 2009 calendar year. Taxpayer is required to add back $122,000 ($250,000 minus $128,000) of s. 179, I.R.C., expense and $300,000 of the special 50 percent bonus depreciation in computing its Florida taxable income. Taxpayer is not required to add back the amount of regular depreciation (non-special 50 percent bonus depreciation) it claimed under s. 168(b), I.R.C., on its 2014 2009 federal income tax return. On its 2014 2009 Florida corporate income tax return, the taxpayer may also claim subtractions for one-seventh of the amount of special 50 percent bonus depreciation required to be added back ($300,000 divided by seven equals $42,857.14) and one-seventh of the amount of s. 179, I.R.C., expense required to be added back ($122,000 divided by seven equals $17,428.57). In each of the subsequent six tax years, the Taxpayer may subtract $42,857.14 and $17,428.57. At the end of these years, the subtractions should equal the amount(s) required to be added back. If Taxpayer disposes of the property, the gain or loss is the same for Florida as it is for federal income tax purposes. Any differences resulting from additions to Florida income are recovered solely through the subtraction process, even though the underlying property may be disposed of or fully depreciated.

(g) through (h) No change.

(i) Amended returns and Sections 220.13(1)(a)14. and 15., F.S. The original law (Chapter 2009-18, L.O.F.), which created Section 220.13(1)(e), F.S., repealed Sections 220.13(1)(a)14. and 15., F.S., and made these changes retroactive to January 1, 2008. Taxpayers that filed their Florida corporate income tax returns and reported additions to tax for special 50 percent bonus depreciation and s. 179, I.R.C., expense under Sections 220.13(1)(a)14. and 15., F.S., or pursuant to Emergency Rule 12CER08-31, F.A.C., are required to amend their Florida corporate income tax return(s) to conform to the new law, Chapter 2009-18, L.O.F. To the extent that any tax is due and paid on a 2007 or 2008 amended return(s) as a result of the differences between the additions and subtractions required by Sections 220.13(1)(a)14. and 15., F.S., and the adjustments required by Section 220.13(1)(e), F.S., additional interest or penalty will be compromised or waived. The provisions of this rule do not relieve a taxpayer of its obligation to file a Florida corporate income tax return and report the adjustments required by Section 220.13(1)(e), F.S.

(i)(j) The subtractions allowed by Section 220.13(1)(e), F.S., are the means by which the additions required by Section 220.13(1)(e), F.S., are reconciled and recovered. If a taxpayer does not claim a deduction for special 50 percent bonus depreciation, does not claim a deduction for s. 179, I.R.C., expense in excess of $128,000 ($250,000 for tax years beginning in 2010), or does not elect to defer cancellation of indebtedness income pursuant to s. 108(i), I.R.C., on the related federal income tax return(s), no add back is required or subtraction allowed for Florida corporate income tax purposes. Similarly, if a taxpayer did not add back special 50 percent bonus depreciation, or did not add back excess s. 179, I.R.C., expense, or deferred cancellation of indebtedness income because, for example, it was not subject to the Florida corporate income tax in that year, no subtraction is allowed for Florida corporate income tax purposes.

(j)(k) Bonus depreciation claimed for assets placed in service prior to January 1, 2008, is not required to be added back under Section 220.13(1)(e), F.S. Section s. 179, I.R.C., expense claimed in tax years beginning before January 1, 2008, is not required to be added back. No subtraction is allowed for special 50 percent bonus depreciation, s. 179, I.R.C., expense, or deferred cancellation of indebtedness income unless it has been added back in computing Florida taxable income under Section 220.13(1)(e), F.S.

(15) through (21) No change.

Rulemaking Authority 213.06(1), 220.51 FS., Section 4, Chapter 2009-18, Section 3, Chapter 2009-192, L.O.F. Law Implemented 220.02(3), 220.03(5), 220.13, 220.131(1), 220.43(1), (3) FS. History–New 10-20-72, Amended 1-19-73, 10-20-73, 10-8-74, 4-21-75, 5-10-78, 11-13-78, 12-18-83, Formerly 12C-1.13, Amended 12-21-88, 12-7-92, 5-17-94, 10-19-94, 3-18-96, 10-2-01, 4-14-09, 6-28-10, 7-20-11,             .

 

12C-1.0222 Returns; Extensions of Time; Payments of Tentative Tax.

(1) No change.

(2) Requests for Extensions of Time to File Return.

(a)1. For taxpayers with a taxable year ending December 31, an An extension of the due date of any required Florida corporate income/franchise tax return will be effective until five (5) 15 days after the expiration of the federal extension or until six (6) months after the original due date of the return, whichever occurs earlier. For taxpayers with a taxable year ending June 30, an extension will be effective until seven (7) months after the original due date of the return. For taxable year ends other than December 31 and June 30, an extension will be effective until six (6) months after the original due date of the return. The aggregate amount of time of extensions for a return cannot exceed 6 months.

2. An extension of the due date of any required Florida partnership information return will be effective until six (6) months after the original due date of the return.

3. If an automatic extension is not permitted because a federal extension has not been requested or is not allowed, the application for extension of time to file a return must contain sufficient facts to establish good cause why the return cannot be filed on or before the original due date. An extension of time for filing a return does not operate as an extension of time for payment of the tax or any part thereof.

(b) A corporation or a partnership that has been granted an automatic extension of time for filing its federal corporate income tax return or its federal partnership return by the Internal Revenue Service, or that establishes good cause, will be granted an extension of time to file its Florida corporate income/franchise tax return or its Florida partnership information return when the following requirements are met:

1. Form F-7004, Florida Tentative Income/Franchise and Emergency Excise Tax Return and Application for Extension of Time to File Return (incorporated by reference in Rule 12C-1.051, F.A.C.), signed by a person duly authorized by the taxpayer to sign a request for extension, is filed with the Department on or before the due date prescribed for filing the return. See Rule 12C-1.0221, F.A.C., for persons authorized to request an extension of time to file. For affiliated groups, the parent company qualified to file a Florida consolidated income tax return must file Form F-7004. An extension granted to the parent company of an affiliated group applies to the parent company’s consolidated return. If any corporate partner requires an extension of time to file its separate Florida corporate income/franchise tax return, a separate Form F-7004 must be filed by the corporate partner with the Department.

2. The amount estimated to be the balance of its proper tax due for the taxable year after giving effect to payments and credits on its declaration of estimated income tax is paid to the Department.

(3) Extended Return Due Dates.

(a) No change.

(b) An extension of the due date of any required return is effective until 15 days after the expiration of the Federal extension, or until six (6) months after the due date prescribed by law, whichever occurs first. The aggregate amount of time of extensions for a return cannot exceed six (6) months, unless the exceptions specified in paragraph (2)(a) of this rule apply. No further extensions are allowed.

1. The automatic Federal extension period for a federal corporate income tax return is six (6) months. For a corporation whose taxable fiscal year ends December 31, a required Florida corporate income/franchise tax return is due May 1 April 1 of the following year. When a taxpayer is granted an extension of time to file its federal Federal corporate income tax return, the extended due date for the federal Federal return is September 15. When the requirements of this rule are met, and the corporation is granted an extension of time to file its Florida corporate income/franchise tax return, the extended due date for the Florida return is October 1.

2. The automatic federal extension of time to file a Federal partnership return is five (5) months. When a taxpayer is granted an extension of time to file its Florida Partnership Information Return (Form F-1065, incorporated by reference in Rule 12C-1.051, F.A.C.), the due date is 15 days after the Federal return due date. A For example, a partnership whose taxable fiscal year ends on December 31, will be granted an extension of time from April 1 May 1 to October 1 to file its Florida partnership information return when all the requirements for an extension of the due date of a return provided in this rule are met.

(c) No change.

Rulemaking Authority 213.06(1), 220.32(2), 220.51 FS. Law Implemented 220.222, 220.32, 220.801 FS. History–New 10-20-73, Amended 10-8-74, 4-21-75, 3-5-80, 12-18-83, Formerly 12C-1.222, Amended 12-21-88, 12-19-89, 4-8-92, 3-18-96, 3-13-00, 3-15-04, 9-1-09,          .

 

12C-1.034 Special Rules Relating to Estimated Tax.

(1) Definition.

(a) Section 220.24(1), F.S., defines “estimated tax” as the amount which the taxpayer estimates to be his tax under the Florida corporate income/franchise tax due Income Tax Code for the taxable year. Section 221.04(1), F.S., provides for the making of estimated tax payments for emergency excise tax due under Chapter 221, F.S. in compliance with the rules for Chapter 220, F.S.

(b) “Estimated tax,”, for the purposes of this rule, is the estimate of net corporate income/franchise and emergency excise tax due after credits.

(c) Estimated tax payments are prepayments of tax and are not tax paid, since Section 220.34(1), F.S., provides that amounts paid as estimated tax are deemed assessed on the taxpayer’s original due date for filing the corporate income/franchise tax return.

(2)(a) Section 220.24, F.S., requires a declaration of estimated tax if the amount payable as estimated tax can reasonably be expected to be more than $2,500. Section 220.241, F.S., sets the due date for filing the Declaration of Estimated Tax.

(b) For tax years that begin before January 1, 2017, a declaration of estimated tax must be filed Generally, the taxpayer is required to file the Declaration of Estimated Tax on or before the first day of the fifth month of the taxable year, if the taxpayer can reasonably expect before the first day of the fourth month to owe more than $2,500 in tax for the taxable year.

(b)1. Except for taxpayers with a June 30 taxable year end, a declaration of estimated tax for tax years beginning on or after January 1, 2017, must be filed Generally, the taxpayer is required to file the Declaration of Estimated Tax on or before the first day of the sixth fifth month of the taxable year, if the taxpayer can reasonably expect before the first day of the fourth month to owe more than $2,500 in tax for the taxable year.

2. Taxpayers with a June 30 taxable year end must file a declaration of estimated tax before the first day of the fifth month of the taxable year, if the taxpayer can reasonably expect before the first day of the fourth month to owe more than $2,500 in tax for the taxable year.

(3) Reasonably Expect.

(a)1. The phrase “reasonably expect” implies a forecast of tax owed. The estimated tax is should be based upon the amount of Florida net income which the taxpayer can reasonably expect be expected to receive or accrue and the amount of depreciation on assets placed in service between January 1, 1981 and December 31, 1986, that will be deducted for Federal tax purposes, based on the facts and circumstances existing at the time prescribed for filing the declaration, as well as those reasonably anticipated for the taxable year.

2. The phrase “reasonably expect” does not imply that a taxpayer can wait until more than $2,500 of tax is actually due on income already earned.

3. A business is may be required to make a declaration of estimated tax by the date specified in subsection (2) 1st day of the 5th month, even though income may not actually be earned until later in the taxable year. For example, a seasonal business that can reasonably expect before the first 1st day of the fourth 4th month of a taxable year beginning on or after January 1, 2017, to owe more than $2,500 for the taxable year will be required to make a declaration of estimated tax before on the first day of the sixth fifth month of the taxable year (before the first day of the fifth month of the taxable year for a taxpayer with a June 30 taxable year end). Therefore, a Christmas shop with that has a taxable year ending January 31, 2018, will be expected to make a declaration before July by June 1, 2017 (the first day of the sixth fifth month following the end of the taxable year) if the corporation reasonably expects to owe more than $2,500 in tax for the tax year. It does not matter whether the corporation is making sales by that date or not.

(b) In determining whether a corporation that existed for a full 12 months during the prior year can reasonably expect the estimated tax to owe be more than $2,500 in tax, the Department will consider is authorized to take into account the taxpayer’s past payment history and circumstances.

(c) If When the tax due for the corporation’s prior taxable year exceeded $2,500, as provided by Section 220.34(2)(d)1., F.S., there is will be a presumption that the taxpayer can could reasonably expect to owe more than $2,500 in the current taxable year estimated tax. However, a taxpayer may rebut this presumption.

(d) In considering a factual determination of a specific taxpayer, the Department will is authorized to consider the following factors:

1. General economic conditions;

2. Economic conditions of a specific industry;

3. Cause and timing of taxable income.

(e) There is no automatic first year exception from filing the declaration by the date specified in subsection (2) first day of the fifth month of the taxable year and making payments of estimated tax in accordance with the time limitations set by Section 220.33(1), F.S.

(4) The Department of Revenue combines the declaration of estimated tax Declaration of Estimated Tax and the payment of the first installment into the Declaration/Installment of Florida Estimated Income/Franchise Taxone form, the (Form F-1120ES, incorporated by reference in Rule 12C-1.051, F.A.C.).

(5)(a) When the due date of the declaration of estimated tax is before the first day of the sixth fifth month (before the first day of the fifth month for taxpayers with a June 30 taxable year end), there must be four equal installments.

(b) Estimated tax payments are then due before the first 1st day of the sixth 5th month (before the first day of the fifth month for taxpayers with a June 30 taxable year end) (the same date as the declaration is due), before the first 1st day of the seventh 7th month, before the first 1st day of the tenth 10th month, and before the first 1st day of the next taxable year. For calendar year taxpayers, estimated tax payments are due May 31, June 30, September 30, and December 31 May 1, July 1, October 1 and January 1 of the following tax year.

(6) No change.

(7) Amended declarations.

(a) A declaration of estimated tax is based upon a reasonable projection of tax liability. A declaration must Amended declarations may be adjusted when made in any case in which the taxpayer determines finds that circumstances have developed that which will materially change the amount of estimated tax reported in the previous declaration. The remaining estimated tax payments must be increased or decreased to reflect the adjusted projected income.

(b) An amended declaration may be filed during any interval between installment dates prescribed for the taxable year. However, no amended declaration may be filed until after the installment date on or before which the original declaration was filed and only one amended declaration may be filed during each interval between installment dates.

(c) An amended declaration may be made on Form F-1120ES marked “Amended” for any installment.

(d) If an amended declaration is filed, Section 220.33(6), F.S., provides that the remaining payments should also be increased or decreased.

(e) There is no provision in the Florida Statutes for an automatic waiver of penalty for underpayment of estimated tax when an amended declaration is filed.

(8) Overpayments of Estimated Tax.

(a)1. A taxpayer must make may an irrevocable election irrevocably elect on its annual Florida corporate income/franchise tax return to designate that an overpayment as an of estimated tax be applied to the next year’s estimated tax payment payments for the subsequent taxable year or an amount to that the overpayment be refunded.

2. The decision to apply an overpayment to the subsequent next year’s estimated tax payments may not be changed to request a refund.

3.a. If a taxpayer files an amended return for a tax year that reports reflects an overpayment of tax, the taxpayer may elect to use the overpayment as a credit against estimated tax for a subsequent the next taxable year or may request a refund of the overpayment. The overpayment of tax may not be credited against estimated tax payments for a closed taxable year that is closed.

b. Example: A a calendar year taxpayer in 2016 1993 amends the 2013 1990 Florida corporate income/franchise tax return pursuant to a federal Federal adjustment that impacted Florida to Federal taxable income. The result of the amendment is that the taxpayer has overpaid the tax due for 2013 1990. The overpayment may be refunded or credited to the 2016 1993 estimated tax payments. The overpayment may not be credited to estimated tax payments for the 2014 1991 or 2015 1992 taxable year.

(b) In the case of an overpayment for a taxable year for which a Florida corporate income/franchise and emergency excise tax return has been filed, the properly executed return constitutes shall constitute a claim for refund or credit within the meaning of Sections 220.723 and 220.34(4), F.S.

(c)1. If a taxpayer requests that an overpayment be applied to estimated tax for the succeeding tax year, the application will be to the first estimated tax payment of the next tax year, even if the return is was filed after the due date for the first payment.

2. Example: A a calendar year taxpayer requested an extension of the filing date for the 2016 Florida corporate income/franchise 1991 tax return from May 1, 2017, April 1, 1992 until October 1, 2017 1992. The first payment of estimated tax for the succeeding tax year is due May 30, 2017 May 1, 1992. The 2016 annual return is filed on September 29, 2017 September 30, 1992. If the taxpayer requested that the overpayment of estimated tax be applied to the next tax year, the overpayment is would have been applied effective May 30, 2017 May 1, 1992.

(d) The Department will not pay interest on an overpayment that a taxpayer has elected to apply as an estimated payment to a subsequent taxable year. If the taxpayer elects to have all or part of the overpayment shown by its return applied to its estimated income tax for its succeeding taxable year, no interest shall be allowed on such portion of the overpayment credited.

(e) There are no provisions within the Florida Statutes for a “quick refund” if the estimated tax is overpaid. A The taxpayer may not claim a refund of estimated tax paid until the Florida corporate income/franchise tax return is filed for that tax year.

(9) Underpayment of estimated tax.

(a) No change.

(b)1. No penalty or interest will be imposed for any underpayment of any installment of estimated tax if, on or before the date prescribed for payment of the installment, the total amount of all payments of estimated tax made equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were the lesser of the following amounts:

a. An amount equal to a tax computed at the rates applicable to the taxable year but otherwise on the basis of the facts shown on the return for the preceding taxable year and the law applicable to the preceding year, provided that the preceding taxable year was a year of 12 months and a return was filed for such year; or,

b. An amount equal to 90 percent of the tax finally due for the taxable year.

c.(I) A contribution Contributions to an eligible nonprofit scholarship-funding organization (SFO) organizations (SFOs) made on or after July 1, 2014, for a corporate income tax credit pursuant to Section 220.1875, F.S., reduces reduce the amount required to meet the prior year exception referenced in sub-subparagraph a. The specific prior year exception amount reduced by a contribution to an SFO is determined by the date of contribution on the certificate of contribution issued by the SFO. Cross reference: Rule Chapter 12-29, F.A.C.

(II) Example: A calendar year taxpayer remitted four estimated payments of $16,000 each on May 31, 2017 April 30, 2014; June 30, 2017 2014; September 30, 2017 2014; and December 31, 2017 2014. The taxpayer also made a $15,000 contribution to an SFO and was issued a certificate of contribution on July 20, 2017 July 15, 2014, which generated a tax credit for the taxpayer. For the prior tax year ending December 31, 2016 2013, corporate income tax of $80,000 was due. Taxpayer’s prior year exception computation is as follows:

Due dates of installments	(1st) 5/31/2017 4/30/2014	(2nd) 6/30/2017 6/30/2014	(3rd) 9/30/2017 9/30/2014	(4th) 12/31/2017 12/31/2014
Current year: Total cumulative amount paid (or credited) from the beginning of the taxable year through the installment date indicated	16,000.00	32,000.00	48,000.00	64,000.00
(a) Prior year exception: Tax on prior year’s income using current year’s rates	25% of tax 20,000.00	50% of tax 40,000.00	75% of tax 60,000.00	100% of tax 80,000.00
(b) Cumulative donations made on or after July 1, 2014, to SFOs from the beginning of the taxable year through the installment date indicated. Certificate of contribution must be issued on or before installment due date.	0.00	0.00	15,000.00	15,000.00
(c) The prior year exception adjusted for the credit for contributions to SFOs per Section 1002.395(5)(f), F.S., equals (a) less (b)	20,000.00	40,000.00	45,000.00	65,000.00
Installment meets prior year exception? To answer Yes, Current year must equal or exceed Prior year (c).	No	No	Yes	No

Taxpayer has met the prior year exception for the third installment through a combination of estimated payments and SFO credit so that estimated tax penalty and interest will not apply for the third installment.

(III) Example: A calendar year taxpayer remitted four estimated payments of $10,000 each on May 31, 2017 April 30, 2015; June 30, 2017 2015; September 30, 2017 2015; and December 31, 2017 2015. The taxpayer also made four $10,000 contributions to an SFO and was issued certificates of contribution on May 31, 2017 April 30, 2015; June 30, 2017 2015; September 30, 2017 2015; and December 31, 2017 2015. For the prior tax year ending December 31, 2016 2014, corporate income tax of $80,000 was due. Taxpayer’s prior year exception computation is as follows:

Due dates of installments	(1st) 5/31/2017 4/30/2015	(2nd) 6/30/2017 6/30/2015	(3rd) 9/30/2017 9/30/2015	(4th) 12/31/2017 12/31/2015
Current year: Total cumulative amount paid (or credited) from the beginning of the taxable year through the installment date indicated	10,000.00	20,000.00	30,000.00	40,000.00
(a) Prior year exception: Tax on prior year’s income using current year’s rates	25% of tax 20,000.00	50% of tax 40,000.00	75% of tax 60,000.00	100% of tax 80,000.00
(b) Cumulative donations made on or after July 1, 2014, to SFOs from the beginning of the taxable year through the installment date indicated. Certificate of contribution must be issued on or before installment due date.	10,000.00	20,000.00	30,000.00	40,000.00
(c) The prior year exception adjusted for the credit for contributions to SFOs per Section 1002.395(5)(f), F.S., equals (a) less (b)	10,000.00	20,000.00	30,000.00	40,000.00
Installment meets prior year exception? To answer Yes, Current year must equal or exceed Prior year (c).	Yes	Yes	Yes	Yes

Taxpayer has met the prior year exception for all four installments through a combination of estimated payments and SFO credit so that estimated tax penalty and interest will not apply to any of the four installments.

2.a. A taxpayer may not use the prior year exception if the previous tax year was for a short tax year (not a full 12 months), except where the short periods are due to a change in accounting period.

b.(I) The taxpayer may not use a total of the tax liability for 2 or more short periods to qualify for a prior year exception, except where the short periods are due to a change in accounting period. The prior year exception is denied even where there is continuity of business. If a short period return is required for federal, and, therefore, Florida purposes, then for the next tax year, the taxpayer is denied the use of the prior year exception for the subsequent tax year.

(II) Example: Corporation C was part of affiliated group ABC, which filed a federal consolidated income tax return for the 2014 1991 and 2015 1992 tax years. For Florida corporate income/franchise tax purposes, Corporation C has always filed a separate return. On June 1, 2015 1992, the stock of Corporation C was bought by Corporation X. Corporation C has two taxable years for 2015 1992 for federal income tax purposes, and, therefore, for Florida corporate income/franchise tax purposes even though it has always filed a separate Florida corporate income/franchise tax return. For the The first taxable year within 2015 1992 (January 1 through May 31, 2015 1992), Corporation C may could base estimated tax payments on a prior year exception (January 1, 2014 1991 through December 31, 2014 1991). Corporation C may not cannot use the prior year exception for the second taxable year within 2015 1992 (June 1, 2015 1992 through December 31, 2015 1992). Furthermore, Corporation C cannot use a prior year exception for the 2016 1993 tax year.

3. See subsection (12) of this rule concerning special rules for estimated tax payments required in short years.

(c) No change.

(d)1. Paragraphs (a) and (b) of this subsection contain references to the “tax shown on the return,” the “tax for such year,” the “tax finally due for the taxable year,” etc. The term “tax” when used in such references means the tax imposed by Chapter Chapters 220 and 221, F.S., minus amounts properly credited against such tax for the taxable year. Payments of estimated tax and payments of tentative tax are not “amounts properly credited.” for this purpose.

2. For Therefore, for taxpayers subject to tax under Chapter 220, Part II, F.S., and tax under Chapter 221, F.S., “tax” means the tax imposed by Section 220.11, F.S., minus the allowable credits in the order specified in Section 220.02(8) 220.02(10), F.S., plus the emergency excise tax imposed by Section 221.01, F.S. For banks and savings associations subject to the franchise tax under Chapter 220, Part VII, F.S., and tax under Chapter 221, F.S., “tax” means the tax imposed by Section 220.63, F.S., minus the allowable credits in the order specified in Section 220.02(8) 220.02(10), F.S., plus the emergency excise tax imposed by Section 221.01, F.S.

3. The For returns filed under this code, the computations under paragraphs (a) and (b) of this subsection are shall be based on the return as filed, except where the amount finally determined to be due is less than the amount shown on the return. If no return was filed, the computation is under paragraphs (a) and (b) of this subsection shall be based on the appropriate tax liability and credit allowable under Chapter Chapters 220 and 221, F.S.

4. Example: Taxpayer A, who is subject to tax under Part II of Chapter 220, Part II, F.S., filed on Form F-1120. The return shows “Total Income/Franchise and Emergency Excise Tax Due” of $5,000, “Estimated Tax Payments” of $500, and a “Total amount due or overpayment” of $4,500. For the purposes of paragraphs (a) and (b) of this subsection, the “tax” shown on the return or finally due for such year is the “Total Income/Franchise and Emergency Excise Tax Due” on the return or $5,000. The estimated tax payments are not amounts properly credited against the tax in the definition of “tax” for this purpose.

(e) No estimated tax penalty is will be due when if the taxpayer filed a return for the preceding year showing a tax liability in an amount of $2,500 or less.

(f) No change.

(g) Period of underpayment.

1. For taxpayers with a June 30 taxable year end, the The computation of interest and penalty for underpayment of any installment of estimated tax begins on the day following the date such installment is required to be paid and ends on the first day of the fourth month following the close of the taxable year, or the date such underpayment is paid, whichever is earlier. For all other taxpayers, the computation of interest and penalty for underpayment of any installment of estimated tax ends on the first day of the fifth month following the close of the taxable year, or the date such underpayment is paid, whichever is earlier.

2.a. No change.

b.(I) If a payment is made between installment dates, it will be applied to the earliest installment due, to the extent of any deficiency in payments. However, penalty and interest will apply from the original due date of the installment until the date paid.

(II) Example: A calendar year taxpayer made payments on May 31, July 25, September 30, and December 31 May 1, July 25, October 1 and January 1 of the next calendar year. The July 25 payment was due June 30 July 1. Therefore, interest and penalty will apply for the period July 1 July 2 through July 25.

(III) The prior year exception to penalty only applies to requirements for timely made payments. If payments are not timely, the estimated penalty will be calculated based on the minimum installment due for 90 percent of the tax.

(h) through (i) No change.

(j) Interest and penalty on underpayment of estimated tax can be compromised per Section 213.21, F.S.

(10) Controlled/Affiliated groups. Consolidated return not filed in prior year.

(a) The manner in which the members of a controlled group of corporations (as defined in s. 1563, I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C.) allocate the $5,000 exemption allowed under Section 220.14, F.S., among members for purposes of filing the annual Florida corporate income/franchise tax return is shall be binding upon all the members with respect to the estimated tax, including whether a declaration is required and the computation of penalties and interest on underpayments.

(b)1. If an affiliated group is not required to file a consolidated declaration of estimated tax for a taxable year because the parent corporation has not elected to file a Florida consolidated tax return pursuant to Section 220.131, F.S., then each member shall be treated as a separate taxpayer for purposes of Sections 220.24 and 220.33, F.S. That is, if a consolidated return was not filed in a prior year, each member of the affiliated group will be required to file separate declarations of estimated tax and make separate payments of estimated tax.

2. If the members of a group are treated as separate taxpayers for the taxable year under subparagraph (b)1., then each member is entitled to a separate $2,500 estimated tax threshold for purposes of determining requirements for making a declaration of estimated tax under Section 220.24(1), F.S., for such year, unless the group files a consolidated return for such year.

(c)1.3. If an affiliated group files a Florida consolidated tax return is filed for the taxable such year, the amounts amount of any estimated tax payments made by the individual group members for such year prior to the filing of the consolidated return are shall be credited against the tax liability of the group.

2.4. The If the group files a consolidated return for such year, the amount of the installment required to be paid is equal to 90 percent of the tax shown on the return for the taxable year (see for Section 220.34(2)(b)1., F.S.). The “tax shown on the return” is shall be the tax shown on the Florida consolidated tax return.

3. The exception provided by Section 220.34(2)(d)1., F.S., will not apply in the year an affiliated a group first files a Florida consolidated tax return.

(11) Affiliated group. Consolidated tax return filed in prior year.

(a)1. General Rule. After an affiliated group files a Florida consolidated tax return, it must file its declaration of estimated tax on a consolidated basis for each subsequent taxable year until such time as the affiliated group is granted permission to file separate Florida tax returns are properly filed under Section 220.131, F.S. Until such time, the group is shall be treated as a single taxpayer for purposes of making a declaration of estimated tax and making payments of estimated tax.

2. If an affiliated group files a Florida consolidated tax return for the taxable year, it is limited to a single $2,500 estimated tax threshold for the purposes of determining requirements for filing a declaration of estimated tax. For purposes of determining an amount equal to the tax computed at the rates applicable to the taxable year, but otherwise on the basis of the facts shown on the return for, and the law applicable to the preceding taxable year (see Section 220.34(2)(d)1., F.S.), the “facts shown on the return” are the facts shown on the Florida consolidated tax return for the preceding year.

(b)1. If, after filing Florida consolidated tax returns, the affiliated group is granted permission to file separate Florida tax returns under Section 220.131, F.S., are filed by the members for a taxable year the amount of any estimated tax payments made with respect to a consolidated declaration of estimated tax for such year will shall be credited against the separate tax liabilities of the members in the any manner designated on a statement from by the common parent which is satisfactory to the Executive Director or the Executive Director’s designee. This A statement must shall be attached to the Florida corporate income/franchise tax returns of each member of the affiliated group, consolidated declaration of estimated tax setting forth the name, address, and federal employee identification number of each member, and the amount of estimated tax payment that will be allocated to each member.

2. Each member of the group is entitled to a separate $2,500 estimated tax threshold for purposes of determining requirements for making a declaration of estimated tax under Section 220.24(1), F.S., for such year. For purposes of Section 220.34(2)(b)2., F.S., the “amount, if any, of the installment paid” by any member is an amount apportioned to such member in any manner designated by the common parent. The exception provided by Section 220.34(2)(d)1., F.S., will not apply to an affiliated group filing separate Florida tax returns in a year immediately following a year in which a Florida consolidated tax return was filed.

(c) If a group is required to file a consolidated declaration of estimated tax for the taxable year, then:

1. If such group files a consolidated return for the taxable year, it shall be limited to a single $2,500 estimated tax threshold for the purposes of determining requirements for filing a declaration of estimated tax. For purposes of determining an amount equal to the tax computed at the rates applicable to the taxable year, but otherwise on the basis of the facts shown on the return for, and the law applicable to the preceding taxable year (for Section 220.34(2)(d)1., F.S.), the “facts shown on the return” shall be the facts shown on the consolidated return for the preceding year.

2. If such group does not file a consolidated return for the taxable year, each member of the group shall be entitled to a separate $2,500 estimated tax threshold for purposes of determining requirements for making a declaration of estimated tax under Section 220.24(1), F.S., for such year. For purposes of Section 220.34(2)(b)2., F.S., the “amount, if any of the installment paid” by any member shall be an amount apportioned to such member in any manner designated by the common parent. The exception provided by Section 220.34(2)(d)1., F.S., will not apply to a group filing separate returns in a year immediately following a year in which a consolidated return was filed.

(12) Short taxable years.

(a) No change.

(b)1. In the case of a corporation that is required to file a declaration of estimated tax for a short taxable year, the corporation must shall file the declaration of estimated tax and make payments of estimated tax in accordance with the time periods prescribed in subsections (5) and (6) of this rule.

2. However, the declaration must shall be filed on or before the first day of the next taxable year if the taxpayer can reasonably expect to owe more than $2,500 in estimated tax before the first day of such last month and the date specified in subsections (5) and (6) as applicable is not within the short taxable year.

3. Any estimated tax payable in installments which is not paid before the first day of the next taxable year, whether or not the date otherwise specified in Section 220.33, F.S., for payment has arrived, must shall be paid on the first day of the first month succeeding the last month of the short taxable year.

(c) The application of the provisions of paragraphs (a) and (b) is may be illustrated by the following examples:

1. Example (1): A taxpayer filing on a calendar year basis that changes to a fiscal year beginning September 1, 2017 1993, will have a short taxable year beginning January 1, 2017 1993 and ending August 31, 2017 1993. If the corporation can reasonably expect to owe more than $2,500 in estimated tax before April 1, 2017 1993, the first day of the fourth 4th month of the taxable year, the declaration of estimated tax must be filed on or before June May 1, 2017 1993 (the first day of the sixth 6th 5th month).

2. Example (2): If, in the first example, the taxpayer could not reasonably expect to owe more than $2,500 in estimated tax until July 1, 2017 1993, then the requirements of Section 220.24, F.S., were met before the first day of the last month of the short taxable year, and a declaration of estimated tax is required to be filed on or before September 1, 2017 1993, for the short taxable year. However, if the taxpayer does not reasonably expect to owe more than $2,500 in tax until August 1, 2017 1993, then the requirements of Section 220.24, F.S., were not met before the first day of the last month of the short taxable year, and no declaration of estimated tax is required to be filed for the short taxable year.

3. Example (3): The taxable year for a corporation that has elected to be a calendar year taxpayer began June 1, 2017 1993. The taxable year is, therefore, June 1, 2017 1993 through December 31, 2017 1993. The taxpayer can reasonably expect by August 31, 2017 1993 (before the first 1st day of the fourth 4th month of the taxable year) to owe $10,000 in tax. The declaration of estimated tax must be filed before by November 1 October 1 (the first 1st day of the sixth 6th 5th month of the taxable year). Payments of estimated tax would be due October 31, November 30, and December 31 October 1, December 1 (the 1st day of the 7th month), and January 1 (the 1st day of the succeeding taxable year). The taxpayer must pay at least 90 percent of the tax finally determined to be due. The tax finally determined to be due was $10,000; therefore, the taxpayer must pay at least $9,000 in estimated tax to avoid being underpaid. The provisions of Section 220.33, F.S., provide for four equal installments if the declaration is required to be filed on or before the first 1st day of the sixth 6th 5th month of the taxable year. The taxpayer will not be underpaid if the payments due October 31 and November 30 October 1 and December 1 are each at least $3,000 (one-third of $9,000). The payment made on December 31 January 1 must be the remaining balance of $3,000.

(d)1. In cases where the short taxable year results from a change of annual accounting period, for the purpose of determining whether the anticipated income for a short taxable year will result in an estimated tax liability requiring the filing of a declaration, the estimated tax liability is computed in part by subtracting a prorated exemption from the anticipated income such income shall be placed on an annual basis by multiplying such income by 12 and dividing the result by the number of months in the short period. The prorated exemption is computed by multiplying the exemption allowed under Section 220.14, F.S., by a fraction, the numerator of which is the number of days in the short taxable year, and the denominator of which is 365. If the tax computed on such annual income exceeds $2,500, the estimated tax shall be the same part of the excess so computed as the number of months in the short period is of 12 months.

2. For example, a taxpayer that which changes from a calendar year basis to a fiscal year basis beginning October 1, 2017 1988, will have a short taxable year beginning January 1, 2017 1988, and ending September 30, 2017 1988. If on or before August 31, 2017 1988, the taxpayer anticipates that it will have income of $87,750 $54,000 for the 9-month taxable year, the estimated tax is computed as follows:

Anticipated income for 9 months                                                     $87,750.00 $54,000.00

Less prorated exemption ($50.000 x 273/365)                              - 37,397.00

Florida net income Annual income (54,000 x 12/9)                     $50,353.00 72,000.00

Tax liability on $72,000

(($72,000 ‒ 5,000) x 5.5 percent)                                                     3,685.00

Estimated tax for 9-month period

($50,353 x 5.5 percent) ($3,685 x 9/12)                                         $2, 769.42 $2,763.75

Since the tax liability on the annual income is in excess of $2,500, a declaration is required to be filed, reporting an estimated tax of $2,769.42 $2,763.75 for the 9-month taxable period. This paragraph does not apply in any case where the short taxable year does not result from a change in the taxpayer’s annual accounting period.

        (e) If the taxable year for which an underpayment of estimated tax exists is a short taxable year due to a change in annual accounting periods, in determining the tax based on the current year rates but otherwise on the basis of the facts shown on the return for the preceding taxable year and the law applicable to the preceding year for purposes of Section 220.34(2)(d)1., F.S., the tax will be reduced by multiplying it by the number of months in the short taxable year and dividing the resulting amount by 12. The application of the exception provided in Section 220.34(2)(d)2., F.S., shall be determined as if the estimated tax were 90 percent of the tax finally due for the short taxable year.

(f) Where a declaration of estimated tax has been filed for a short taxable year, an amended declaration may be filed during any interval between installment dates. The However, no amended declaration for a short taxable year may not be filed until after the installment date on or before which the original declaration is was filed and only one amended declaration may be filed during each interval between installment dates. For purposes of this paragraph, the term “installment date” includes the last first day of the next taxable year if such last first day does not fall on a prescribed installment date.

(13) Miscellaneous provisions.

(a) No change.

(b) A taxpayer may use the prior year exception, even if the corporation had a net operating loss the prior year, only when provided the prior year was a full 12-month months tax year.

(c) When an “S” Corporation changes its status to a “C” Corporation, the corporation must make it is responsible for filing estimated tax payments in the year it converts when if its tax liability can be expected to exceed $2,500. An “S” Corporation that becomes a “C” Corporation cannot use a prior year exception. The That is, the corporation cannot use the tax paid to Florida as an “S” Corporation to relieve it from filing estimated tax payments. However, a corporation that has converted from “S” to “C” status will be allowed to base estimates on the prior year’s income and the tax computed on such income as if it were a “C” Corporation in the prior year.

(d) No change.

Rulemaking Authority 213.06(1), 220.24, 220.34(2)(f), 220.34(3), 220.51, 1002.395(13) FS. Law Implemented 213.21, 220.131, 220.24, 220.241, 220.33, 220.34, 1002.395 FS. History–New 10-20-72, Amended 10-20-73, 7-27-80, 12-18-83, Formerly 12C-1.34, Amended 12-21-88, 4-8-92, 5-17-94, 3-18-96, 3-13-00, 9-28-04, 7-28-15,          .

 

12C-1.051 Forms.

(1)(a) The following forms and instructions are used by the Department in its administration of the corporate income tax and franchise tax. These forms are hereby incorporated by reference in this rule.

(b) Copies of these forms are available, without cost, by one or more of the following methods: 1) downloading the form from the Department’s Internet site at www.myflorida.com/dor/forms; or, 2) calling the Department at 1(800) 352-3671, Monday through Friday, 8:00 a.m. to 7:00 p.m. (Eastern Time); or, 3) visiting any local Department of Revenue Service Center; or, 4) writing the Florida Department of Revenue, Taxpayer Services, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800) 955-8770 (Voice) and 1(800) 955-8771 (TTY).

Form Number	Title	Effective Date
(2) No change.
(3)(a) No change.
(b) F-1065N	Instructions for Preparing Form F-1065 Florida Partnership Information Return (R. 01/1701/16) (http://www.flrules.org/Gateway/reference.asp?No=Ref-06342)	01/1701/16
(4) F-1120A	Florida Corporate Short Form Income Tax Return (R 01/1701/16) (http://www.flrules.org/Gateway/reference.asp?No=Ref-06343)	01/1701/16
(5)(a) F-1120	Florida Corporate Income/Franchise Tax Return (R. 01/1701/16)	01/1701/16
	(http://www.flrules.org/Gateway/reference.asp?No=Ref-06344)
(b) F-1120N	F-1120 Instructions – Corporate Income/Franchise Tax Return	01/1701/16
	for taxable years beginning on or after January 1, 2015 (R. 01/1701/16)
	(http://www.flrules.org/Gateway/reference.asp?No=Ref-06345)
(6) F-1120ES	Declaration/Installment of Florida Estimated Income/Franchise	01/1701/15
	Tax (R. 01/1701/15)
	(http://www.flrules.org/Gateway/reference.asp?No=Ref-04881)
(7) through (12) No change.
(13) F-2220	Underpayment of Estimated Tax on Florida Corporate Income/Franchise Tax (R. 01/1701/15) (http://www.flrules.org/Gateway/reference.asp?No=Ref-04884)	01/1701/15
(14) F-7004	Florida Tentative Income/Franchise Tax Return and Application for Extension of Time to File Return (R. 01/1701/15) (http://www.flrules.org/Gateway/reference.asp?No=Ref-04885)	01/1701/15

 

Rulemaking Authority 213.06(1), 220.192(7), 220.193(4), 220.196(4), 220.51, 1002.395(13) FS. Law Implemented 119.071(5), 212.08(5)(p), 213.755(1), 220.11, 220.12, 220.13(1), (2), 220.15, 220.16, 220.181, 220.182, 220.183, 220.184, 220.1845, 220.185, 220.186, 220.1875, 220.1895, 220.1896, 220.1899, 220.191, 220.192, 220.193, 220.194, 220.195, 220.196, 220.21, 220.211, 220.22, 220.221, 220.222, 220.23, 220.24, 220.241, 220.31, 220.32, 220.33, 220.34, 220.41, 220.42, 220.43, 220.44, 220.51, 220.721, 220.723, 220.725, 220.737, 220.801, 220.803, 220.805, 220.807, 220.809, 221.04, 624.5105, 624.51055, 1002.395 FS. History–New 9-26-77, Amended 12-18-83, Formerly 12C-1.51, Amended 12-21-88, 12-31-89, 1-31-91, 4-8-92, 12-7-92, 1-3-96, 3-18-96, 3-13-00, 6-19-01, 8-1-02, 6-19-03, 3-15-04, 9-24-04, 6-28-05, 5-1-06, 4-5-07, 1-1-08, 1-27-09, 1-11-10, 4-26-10(12)(a), (b), 4-26-10(13)(a), (b), 6-28-10, 1-12-11, 6-6-11, 1-25-12, 1-17-13, 3-12-14, 1-19-15, 1-11-16,              .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Kimberly Berg

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Governor and Cabinet

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: October 25, 2016

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: September 7, 2016