HB 1221 Summary

• Creates Joint Legislative Sales and Use Tax Review Committee to comprehensively review all current and future sales/use tax exemptions and exclusions, with mandatory reporting timelines and recommendations for retention, modification, or repeal of exemptions that don't sufficiently serve the public interest.

• Establishes "Water's Edge" Combined Tax Reporting for multistate/multinational corporate groups, replacing separate accounting methods with combined income reporting to more accurately measure business activities and reduce competitive disadvantages for Florida corporations.

• Revises Corporate Income Tax Calculations by redefining "adjusted federal income," limiting certain deductions and carryovers for water's edge group members, and requiring subtraction of certain dividends from taxable income.

• Eliminates Affiliated Group Consolidated Returns effective January 1, 2016, requiring affiliated groups to transition to water's edge group combined reporting and file consolidated returns under new methodology.

• Allocates Recaptured Tax Revenue with $50 million each to the State University System and community colleges for workforce education, and remainder to school districts to reduce local property tax millage requirements.