Purpose
The purpose of the proposed repeal of Rule 12B-7.0225, F.A.C. (Computation of Phosphate Rock Tax Rate), is to remove the unnecessary adoption of the phosphate rock producer price index to be used by the Department for purposes of calculating the annual adjustment to the producer price index for phosphate rock.
The Department is required to calculate the annual base rate adjustment to the phosphate rock tax rate and provide notification to the affected producers each year. Prior to July 1, 2007, Section 211.3103, F.S., required an annual adjustment to the base price by the change in the producer price index for phosphate rock primary products. When that index was no longer available, the Department was required to select a comparable index and to adopt that index by rule. The Department adopted in this rule the U.S. Bureau of Labor Statistics Producer Price Index North American Industry Classification System National Code 212392, Phosphate Rock Mining, as the price index to be used in the calculation of the annual base rate adjustment beginning with the year 2007 and thereafter. The Department also adopted the change in methodology for calculating the annual base rate adjustment for the phosphate rock tax rate for the year 2006.
Effective July 1, 2007, Section 18, Chapter 2007-106, L.O.F., changed the producer price index to be used for this purpose to the producer price index for phosphate rock, the index currently used by the Department and adopted in this rule. The Department is only required to select a comparable index and adopt that index by rule in the event that the producer price index is discontinued. Because the Department is using the index required by the statute and that index remains available and the provisions regarding the methodology to compute the tax rate for the year 2006 are now obsolete, this rule is no longer necessary. The effect of this rule repeal will be to remove this rule from the administrative code.