FL S0504

Allows dealers to claim tax credits or refunds for taxes paid on worthless or uncollectible private-label credit card accounts or receivables charged off as bad debt on or after January 1, 2014.

Requires dealers to claim credits or refunds within 12 months after the month the bad debt is charged off by the lender for federal income tax purposes, with no prior claim allowed on the same accounts or receivables.

Limits recovery amounts on a sliding scale: 25 percent for 2014 chargeoffs, 50 percent for 2015, 75 percent for 2016, and 100 percent for chargeoffs on or after January 1, 2017.

Permits dealers to calculate credit or refund amounts using either an apportionment method based on Florida/non-Florida and taxable/nontaxable sales, or a specified percentage derived from sampling methodology agreed upon with the department.

Allows related entities with 50 percent or more common ownership to claim credits or refunds, and requires dealers to repay taxes if accounts or receivables are subsequently collected.