Green and white 1992 Annual Reports are now flooding corporate mailboxes across the State. Every corporation, whether profit or not-for-profit, is required to file an Annual Report on the form provided by the Department of State, Division of Corporations. The form must be timely received in Tallahassee with the $61.25 fee, or a substantial penalty will be levied. Though the form may be complicated, this year the filing fee has not increased!

Corporations which refuse to file and pay the fee will be involuntarily dissolved. The effect of a dissolved corporation is to expose a corporations's principals to personal liability for the Corporation's debts. Dissolution may also adversely impact the corporation's and principal's tax status, and prevent the prosecution or defense of claims in court. Condominium and cooperative associations must file the Annual Report in addition to the annual filing and per unit fee required by the Division of Land Sales.

There are a number of changes on the 1992 Annual Report form. The most significant is the addition of the new "red" block "ten". This change requires under the penalty of perjury that a corporate officer verify whether the corporation has liability for intangible taxes. If this block is not completed, the form will not be accepted by the State.

Florida's intangible tax is a levy of 1.5 mills upon intangible property held in the State. Generally, intangible property is paper which has value because the paper represents holdings in something else. These papers would include stocks, bonds, negotiable paper, and notes. An exception from the tax are notes and other obligations, other than bonds, which are secured by a mortgage, deed of trust, or other real property lien. Although a tax is not required to be paid if, after exemptions, the total amount due is less than $5.00, a corporation is still required to file an intangible tax return.

The second change to the Annual Report is the addition of block "12" at the bottom of the form. The addition inquires as to whether the corporation desires to contribute to the Florida's Election Campaign Financing Trust Fund. This block is somewhat similar to the Federal Election Campaign Fund check-off on an individual's Federal 1040 tax return. The difference is that Florida's check-off block is aimed towards corporations, and electing a contribution requires the corporation to pay an additional $5.00 to the State.