A contractor's license expires on March 31st. If they submit their renewal application on April 15th, what additional penalty must they pay beyond the standard renewal fee?
Correct Answer
D) 50% late penalty
Florida Administrative Code 61G4 establishes that contractors who renew their license within 60 days after expiration must pay a 50% late penalty in addition to the standard renewal fee.
Why This Is the Correct Answer
CORRECT_ANSWER - According to Florida Administrative Code 61G4, contractors who renew their license after the March 31st expiration date but within 60 days must pay a 50% late penalty in addition to the standard renewal fee. Since April 15th falls within this 60-day grace period (only 15 days late), the contractor must pay the 50% penalty. This penalty structure encourages timely renewal while still allowing a reasonable window for late renewals without requiring complete reapplication.
Why the Other Options Are Wrong
Option A: No penalty for the first 30 days
This is incorrect because Florida does not provide a penalty-free grace period for late license renewals. Any renewal submitted after the March 31st expiration date incurs a penalty, even if it's just one day late.
Option C: 100% late penalty plus reapplication required
This is incorrect because the 100% penalty and reapplication requirement only applies after the 60-day grace period has expired. Since April 15th is only 15 days after the March 31st expiration, the contractor is still within the 60-day window.
Memory Technique
Remember '60-50': Within 60 days late = 50% penalty. After 60 days = start over with 100% penalty plus reapplication.
Reference Hint
Florida Administrative Code 61G4 - Contractor Licensing Rules, specifically the sections on license renewal and penalty structures
More Business & Finance Questions
A general contractor purchases equipment worth $45,000 with a useful life of 9 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?
What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?
A contractor estimates startup costs of $75,000 for equipment, $25,000 for initial inventory, $15,000 for insurance premiums, and $10,000 for working capital. They can finance 70% of the total. How much cash do they need?
When establishing professional relationships with architects and engineers, what is the most important factor for a general contractor to consider?
A partnership agreement for a construction company should address all of the following EXCEPT:
A contractor purchases a truck for $60,000. After 5 years, it has accumulated depreciation of $35,000. What is the truck's book value?
A contractor's business plan projects first-year revenue of $500,000 with a 15% net profit margin. If actual revenue is $450,000 with the same profit margin, what is the variance in net profit?
Using the Modified Accelerated Cost Recovery System (MACRS), construction equipment is typically depreciated over how many years?
A contractor is comparing financing options for equipment purchase. Option A: $80,000 cash purchase. Option B: $20,000 down, $65,000 financed at 6% for 4 years. What is the total cost of Option B?
A contractor purchases equipment using a capital lease with a present value of $120,000. How should this be recorded on the balance sheet?
People Also Study
Related Study Resources
Previous Question
A construction company maintains an average inventory of $150,000 in materials with an annual inventory carrying cost rate of 25%. What is the annual carrying cost?
Next Question
An employee claims they need time off for a religious holiday not typically observed by the company. The employer's best response is to: