Category Archives: Florida Tax

When is an Assessment from the DOR Not an Assessment?

Upon completion of a Florida tax audit, the Department of Revenue (“DOR”) will issue a Notice of Proposed Assessment (“NOPA”) to assess any additional tax, interest, and penalties. By its terms, the NOPA provides that it will become a “final assessment” within 60 days of issuance if it is not challenged by the taxpayer. At the end of an audit of Verizon, the DOR issued a NOPA within 60 days prior to the expiration of the statute of limitations. Verizon took the position that the NOPA did not constitute an assessment for statute of limitation purposes until 60 days after its issuance, and by that time the assessment was time barred because the statute of limitations expired. Verizon lost at the trial court on a summary judgment motion, but the First District Court of Appeal recently ruled for Verizon, in a unanimous decision, that a NOPA does not constitute an assessment for statute of limitations purposes because it’s not a “final” assessment. Here is a link to the opinion:

Michael J. Wilson

Florida Tax Legislation Provides a Hodgepodge of Tax Breaks Totaling Over $400 Million

Florida House Bill 33, which was enacted just a few weeks ago, provides a number of tax cuts and incentives. The bill’s key provisions include:

1. A $60,000 cap on the amount of sales tax paid on repairs of a vessel, which would apply to a repair costing in excess of $1 million;

2. An expansion of the number of sales tax exemptions for agricultural equipment, including aquacultural products and feed for aquacultural products, storage, equipment, irrigation equipment, trailers, and plant stakes;

3. Changed the corporate income tax credit program from a first-come first-served basis to a prorated credit and limited the target industries allowed to claim the credit;

4. An additional $14 million for the corporate income tax research and development tax credit program in 2016;

5. A sales tax exemption on admissions for gun club memberships;

6. An extension of the community contribution tax credit programs to June 30, 2018, and a $3 million increase in the tax credit cap for housing projects;

7. An additional $16.6 million to be spent in fiscal year 2015-2016 on the brownfields tax credit program;

8. A 1.73% Communications Services Tax reduction, which went into effect July 1; and

9. A 10-day back-to-school sales tax holiday from August 7 through August 16.

Michael J. Wilson