Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. HB 5601
       
       
       
       
       
       
                                Ì281752+Î281752                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: RE            .                                
                  04/25/2014           .                                
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       The Committee on Appropriations (Hukill) recommended the
       following:
       
    1         Senate Amendment to Amendment (477076) (with title
    2  amendment)
    3  
    4         Delete lines 99 - 135
    5  and insert:
    6         Section 5. Effective July 1, 2014, subsections (1), (3),
    7  (4), and (7) of section 203.01, Florida Statutes, are amended to
    8  read:
    9         203.01 Tax on gross receipts for utility and communications
   10  services.—
   11         (1)(a)1. A tax is imposed on gross receipts from utility
   12  services that are delivered to a retail consumer in this state.
   13  The tax shall be levied as provided in paragraphs (b)-(j).
   14         2. A tax is levied on communications services as defined in
   15  s. 202.11(1). The tax shall be applied to the same services and
   16  transactions as are subject to taxation under chapter 202, and
   17  to communications services that are subject to the exemption
   18  provided in s. 202.125(1). The tax shall be applied to the sales
   19  price of communications services when sold at retail, as the
   20  terms are defined in s. 202.11, shall be due and payable at the
   21  same time as the taxes imposed pursuant to chapter 202, and
   22  shall be administered and collected pursuant to the provisions
   23  of chapter 202.
   24         3. An additional tax is levied on charges for, or the use
   25  of, electrical power or energy that is subject to the tax levied
   26  pursuant to s. 212.05(1)(e)1.c. or s. 212.06(1). The tax shall
   27  be applied to the same transactions or uses as are subject to
   28  taxation under s. 212.05(1)(e)1.c. or s. 212.06(1). If a
   29  transaction is exempt from the tax imposed under
   30  212.05(1)(e)1.c. or s. 212.06)1) the transaction is also exempt
   31  from the tax imposed under this subparagraph. The tax shall be
   32  applied to charges for electrical power or energy and is due and
   33  payable at the same time as taxes imposed pursuant to chapter
   34  212. Chapter 212 governs the administration and enforcement of
   35  the tax imposed by this subparagraph. The charges upon which the
   36  tax imposed by this subparagraph is applied do not include the
   37  taxes imposed by subparagraph 1. or s. 166.231. The tax imposed
   38  by this subparagraph becomes state funds at the moment of
   39  collection and is not considered as revenue of a utility for
   40  purposes of a franchise agreement between the utility and a
   41  local government.
   42         (b)1. The rate applied to utility services shall be 2.5
   43  percent.
   44         2. The rate applied to communications services shall be
   45  2.37 percent.
   46         3. There shall be An additional rate of 0.15 percent shall
   47  be applied to communication services subject to the tax levied
   48  pursuant to s. 202.12(1)(a), (c), and (d). The exemption
   49  provided in s. 202.125(1) applies to the tax levied pursuant to
   50  this subparagraph.
   51         4. The rate applied to electrical power or energy taxed
   52  under subparagraph (a)3. shall be 2.6 percent.
   53         (c)1. The tax imposed under subparagraph (a)1. shall be
   54  levied against the total amount of gross receipts received by a
   55  distribution company for its sale of utility services if the
   56  utility service is delivered to the retail consumer by a
   57  distribution company and the retail consumer pays the
   58  distribution company a charge for utility service which includes
   59  a charge for both the electricity and the transportation of
   60  electricity to the retail consumer. The distribution company
   61  shall report and remit to the Department of Revenue by the 20th
   62  day of each month the taxes levied pursuant to this paragraph
   63  during the preceding month.
   64         2. To the extent practicable, the Department of Revenue
   65  must distribute all receipts of taxes remitted under this
   66  chapter to the Public Education Capital Outlay and Debt Service
   67  Trust Fund in the same month as the department collects such
   68  taxes.
   69         (d)1. Each distribution company that receives payment for
   70  the delivery of electricity to a retail consumer in this state
   71  is subject to tax on the exercise of this privilege as provided
   72  by this paragraph unless the payment is subject to tax under
   73  paragraph (c). For the exercise of this privilege, the tax
   74  levied on the such distribution company’s receipts for the
   75  delivery of electricity shall be determined by multiplying the
   76  number of kilowatt hours delivered by the index price and
   77  applying the rate in subparagraph (b)1. paragraph (b) to the
   78  result.
   79         2. The index price is the Florida price per kilowatt hour
   80  for retail consumers in the previous calendar year, as published
   81  in the United States Energy Information Administration Electric
   82  Power Monthly and announced by the Department of Revenue on June
   83  1 of each year to be effective for the 12-month period beginning
   84  July 1 of that year. For each residential, commercial, and
   85  industrial customer class, the applicable index posted for
   86  residential, commercial, and industrial shall will be applied in
   87  calculating the gross receipts to which the tax applies. If
   88  publication of the indices is delayed or discontinued, the last
   89  posted index shall be used until a current index is posted or
   90  the department adopts a comparable index by rule.
   91         3. Tax due under this paragraph shall be administered,
   92  paid, and reported in the same manner as the tax due under
   93  paragraph (c).
   94         4. The amount of tax due under this paragraph shall be
   95  reduced by the amount of any like tax lawfully imposed on and
   96  paid by the person from whom the retail consumer purchased the
   97  electricity, whether imposed by and paid to this state, another
   98  state, a territory of the United States, or the District of
   99  Columbia. This reduction in tax shall be available to the retail
  100  consumer as a refund made pursuant to s. 215.26 and does not
  101  inure to the benefit of the person who receives payment for the
  102  delivery of the electricity. The methods of demonstrating proof
  103  of payment and the amount of such refund shall be made according
  104  to rules of the Department of Revenue.
  105         (e)1. A Every distribution company that receives payment
  106  for the sale or transportation of natural or manufactured gas to
  107  a retail consumer in this state is subject to tax on the
  108  exercise of this privilege as provided by this paragraph. For
  109  the exercise of this privilege, the tax levied on the such
  110  distribution company’s receipts for the sale or transportation
  111  of natural or manufactured gas shall be determined by dividing
  112  the number of cubic feet delivered by 1,000, multiplying the
  113  resulting number by the index price, and applying the rate in
  114  subparagraph (b)1. paragraph (b) to the result.
  115         2. The index price is the Florida price per 1,000 cubic
  116  feet for retail consumers in the previous calendar year as
  117  published in the United States Energy Information Administration
  118  Natural Gas Monthly and announced by the Department of Revenue
  119  on June 1 of each year to be effective for the 12-month period
  120  beginning July 1 of that year. For each residential, commercial,
  121  and industrial customer class, the applicable index posted for
  122  residential, commercial, and industrial shall will be applied in
  123  calculating the gross receipts to which the tax applies. If
  124  publication of the indices is delayed or discontinued, the last
  125  posted index shall be used until a current index is posted or
  126  the department adopts a comparable index by rule.
  127         3. Tax due under this paragraph shall be administered,
  128  paid, and reported in the same manner as the tax due under
  129  paragraph (c).
  130         4. The amount of tax due under this paragraph shall be
  131  reduced by the amount of any like tax lawfully imposed on and
  132  paid by the person from whom the retail consumer purchased the
  133  natural gas or manufactured gas, whether imposed by and paid to
  134  this state, another state, a territory of the United States, or
  135  the District of Columbia. This reduction in tax shall be
  136  available to the retail consumer as a refund pursuant to s.
  137  215.26 and does not inure to the benefit of the person providing
  138  the transportation service. The methods of demonstrating proof
  139  of payment and the amount of such refund shall be made according
  140  to rules of the Department of Revenue.
  141         (f) Any person who imports into this state electricity,
  142  natural gas, or manufactured gas, or severs natural gas, for
  143  that person’s own use or consumption as a substitute for
  144  purchasing utility, transportation, or delivery services taxable
  145  under subparagraph (a)1. this chapter and who cannot demonstrate
  146  payment of the tax imposed by this chapter must register with
  147  the Department of Revenue and pay into the State Treasury each
  148  month an amount equal to the cost price, as defined in s.
  149  212.02, of such electricity, natural gas, or manufactured gas
  150  times the rate set forth in subparagraph (b)1. paragraph (b),
  151  reduced by the amount of any like tax lawfully imposed on and
  152  paid by the person from whom the electricity, natural gas, or
  153  manufactured gas was purchased or any person who provided
  154  delivery service or transportation service in connection with
  155  the electricity, natural gas, or manufactured gas. For purposes
  156  of this paragraph, the term “cost price” has the meaning
  157  ascribed in s. 212.02(4). The methods of demonstrating proof of
  158  payment and the amount of such reductions in tax shall be made
  159  according to rules of the Department of Revenue.
  160         (g) Electricity produced by cogeneration or by small power
  161  producers which is transmitted and distributed by a public
  162  utility between two locations of a customer of the utility
  163  pursuant to s. 366.051 is subject to the tax imposed by
  164  subparagraph (a)1. this section. The tax shall be applied to the
  165  cost price, as defined in s. 212.02, of such electricity as
  166  provided in s. 212.02(4) and shall be paid each month by the
  167  producer of such electricity.
  168         (h) Electricity produced by cogeneration or by small power
  169  producers during the 12-month period ending June 30 of each year
  170  which is in excess of nontaxable electricity produced during the
  171  12-month period ending June 30, 1990, is subject to the tax
  172  imposed by subparagraph (a)1. this section. The tax shall be
  173  applied to the cost price, as defined in s. 212.02, of such
  174  electricity as provided in s. 212.02(4) and shall be paid each
  175  month, beginning with the month in which total production
  176  exceeds the production of nontaxable electricity for the 12
  177  month period ending June 30, 1990. As used in For purposes of
  178  this paragraph, the term “nontaxable electricity” means
  179  electricity produced by cogeneration or by small power producers
  180  which is not subject to tax under paragraph (g). Taxes paid
  181  pursuant to paragraph (g) may be credited against taxes due
  182  under this paragraph. Electricity generated as part of an
  183  industrial manufacturing process that which manufactures
  184  products from phosphate rock, raw wood fiber, paper, citrus, or
  185  any agricultural product is shall not be subject to the tax
  186  imposed by this paragraph. The term “industrial manufacturing
  187  process” means the entire process conducted at the location
  188  where the process takes place.
  189         (i) Any person other than a cogenerator or small power
  190  producer described in paragraph (h) who produces for his or her
  191  own use electrical energy that which is a substitute for
  192  electrical energy produced by an electric utility as defined in
  193  s. 366.02 is subject to the tax imposed by subparagraph (a)1.
  194  this section. The tax shall be applied to the cost price, as
  195  defined in s. 212.02, of such electrical energy as provided in
  196  s. 212.02(4) and shall be paid each month. The provisions of
  197  This paragraph does do not apply to any electrical energy
  198  produced and used by an electric utility.
  199         (j) Notwithstanding any other provision of this chapter,
  200  with the exception of a communications services dealer reporting
  201  taxes administered under chapter 202, the department may
  202  require:
  203         1. A quarterly return and payment when the tax remitted for
  204  the preceding four calendar quarters did not exceed $1,000;
  205         2. A semiannual return and payment when the tax remitted
  206  for the preceding four calendar quarters did not exceed $500; or
  207         3. An annual return and payment when the tax remitted for
  208  the preceding four calendar quarters did not exceed $100.
  209         (3) The tax imposed by subparagraph (1)(a)1. subsection (1)
  210  does not apply to:
  211         (a)1. The sale or transportation of natural gas or
  212  manufactured gas to a public or private utility, including a
  213  municipal corporation or rural electric cooperative association,
  214  either for resale or for use as fuel in the generation of
  215  electricity; or
  216         2. The sale or delivery of electricity to a public or
  217  private utility, including a municipal corporation or rural
  218  electric cooperative association, for resale, or as part of an
  219  electrical interchange agreement or contract between such
  220  utilities for the purpose of transferring more economically
  221  generated power;
  222  
  223  if provided the person deriving gross receipts from such sale
  224  demonstrates that a sale, transportation, or delivery for resale
  225  in fact occurred and complies with the following requirements: A
  226  sale, transportation, or delivery for resale must be in strict
  227  compliance with the rules and regulations of the Department of
  228  Revenue; and any sale subject to the tax imposed by this section
  229  which is not in strict compliance with the rules and regulations
  230  of the Department of Revenue shall be subject to the tax at the
  231  appropriate rate imposed on utilities under subparagraph
  232  (1)(b)1. by paragraph (b) on the person making the sale. Any
  233  person making a sale for resale may, through an informal protest
  234  provided for in s. 213.21 and the rules of the Department of
  235  Revenue, provide the department with evidence of the exempt
  236  status of a sale. The department shall adopt rules that provide
  237  that valid proof and documentation of the resale by a person
  238  making the sale for resale will be accepted by the department
  239  when submitted during the protest period but will not be
  240  accepted when submitted in any proceeding under chapter 120 or
  241  any circuit court action instituted under chapter 72;
  242         (b) Wholesale sales of electric transmission service;
  243         (c) The use of natural gas in the production of oil or gas,
  244  or the use of natural or manufactured gas by a person
  245  transporting natural or manufactured gas, when used and consumed
  246  in providing such services; or
  247         (d) The sale or transportation to, or use of, natural gas
  248  or manufactured gas by a person eligible for an exemption under
  249  s. 212.08(7)(ff)2. for use as an energy source or a raw
  250  material. Possession by a seller of natural or manufactured gas
  251  or by any person providing transportation or delivery of natural
  252  or manufactured gas of a written certification by the purchaser,
  253  certifying the purchaser’s entitlement to the exclusion
  254  permitted by this paragraph, relieves the seller or person
  255  providing transportation or delivery from the responsibility of
  256  remitting tax on the nontaxable amounts, and the department
  257  shall look solely to the purchaser for recovery of such tax if
  258  the department determines that the purchaser was not entitled to
  259  the exclusion. The certification must include an acknowledgment
  260  by the purchaser that it will be liable for tax pursuant to
  261  paragraph (1)(f) if the requirements for exclusion are not met.
  262         (4) The tax imposed pursuant to subparagraph (1)(a)1. this
  263  chapter relating to the provision of any utility services at the
  264  option of the person supplying the taxable services may be
  265  separately stated as Florida gross receipts tax on the total
  266  amount of any bill, invoice, or other tangible evidence of the
  267  provision of such taxable services and may be added as a
  268  component part of the total charge. If Whenever a provider of
  269  taxable services elects to separately state such tax as a
  270  component of the charge for the provision of such taxable
  271  services, any every person, including all governmental units,
  272  shall remit the tax to the person who provides such taxable
  273  services as a part of the total bill, and the tax is a component
  274  part of the debt of the purchaser to the person who provides
  275  such taxable services until paid and, if unpaid, is recoverable
  276  at law in the same manner as any other part of the charge for
  277  such taxable services. For a utility, the decision to separately
  278  state any increase in the rate of tax imposed by this chapter
  279  which is effective after December 31, 1989, and the ability to
  280  recover the increased charge from the customer is shall not be
  281  subject to regulatory approval.
  282         (7) Gross receipts subject to the tax imposed under
  283  subparagraph (1)(a)1. by this section for the provision of
  284  electricity must shall include receipts from monthly customer
  285  charges or monthly customer facility charges.
  286         Section 6. Effective July 1, 2014, paragraph (e) of
  287  subsection (1) of section 212.05, Florida Statutes, is amended
  288  to read:
  289         212.05 Sales, storage, use tax.—It is hereby declared to be
  290  the legislative intent that every person is exercising a taxable
  291  privilege who engages in the business of selling tangible
  292  personal property at retail in this state, including the
  293  business of making mail order sales, or who rents or furnishes
  294  any of the things or services taxable under this chapter, or who
  295  stores for use or consumption in this state any item or article
  296  of tangible personal property as defined herein and who leases
  297  or rents such property within the state.
  298         (1) For the exercise of such privilege, a tax is levied on
  299  each taxable transaction or incident, which tax is due and
  300  payable as follows:
  301         (e)1. At the rate of 6 percent on charges for:
  302         a. Prepaid calling arrangements. The tax on charges for
  303  prepaid calling arrangements shall be collected at the time of
  304  sale and remitted by the selling dealer.
  305         (I) “Prepaid calling arrangement” means the separately
  306  stated retail sale by advance payment of communications services
  307  that consist exclusively of telephone calls originated by using
  308  an access number, authorization code, or other means that may be
  309  manually, electronically, or otherwise entered and that are sold
  310  in predetermined units or dollars whose number declines with use
  311  in a known amount.
  312         (II) If the sale or recharge of the prepaid calling
  313  arrangement does not take place at the dealer’s place of
  314  business, it shall be deemed to take place at the customer’s
  315  shipping address or, if no item is shipped, at the customer’s
  316  address or the location associated with the customer’s mobile
  317  telephone number.
  318         (III) The sale or recharge of a prepaid calling arrangement
  319  shall be treated as a sale of tangible personal property for
  320  purposes of this chapter, regardless of whether or not a
  321  tangible item evidencing such arrangement is furnished to the
  322  purchaser, and such sale within this state subjects the selling
  323  dealer to the jurisdiction of this state for purposes of this
  324  subsection.
  325         b. The installation of telecommunication and telegraphic
  326  equipment.
  327         c. Electrical power or energy, except that the tax rate for
  328  charges for electrical power or energy is 4.35 7 percent.
  329  Charges for electrical power and energy do not include taxes
  330  imposed under ss. 203.01(1)(a)3. and 166.231.
  331         2. Section The provisions of s. 212.17(3), regarding credit
  332  for tax paid on charges subsequently found to be worthless, is
  333  shall be equally applicable to any tax paid under the provisions
  334  of this section on charges for prepaid calling arrangements,
  335  telecommunication or telegraph services, or electric power
  336  subsequently found to be uncollectible. As used in this
  337  paragraph, the term word “charges” in this paragraph does not
  338  include any excise or similar tax levied by the Federal
  339  Government, a any political subdivision of the state, or a any
  340  municipality upon the purchase, sale, or recharge of prepaid
  341  calling arrangements or upon the purchase or sale of
  342  telecommunication, television system program, or telegraph
  343  service or electric power, which tax is collected by the seller
  344  from the purchaser.
  345         Section 7. Effective July 1, 2014, subsection (11) of
  346  section 212.12, Florida Statutes, is amended to read:
  347         212.12 Dealer’s credit for collecting tax; penalties for
  348  noncompliance; powers of Department of Revenue in dealing with
  349  delinquents; brackets applicable to taxable transactions;
  350  records required.—
  351         (11) The department shall make available in an electronic
  352  format or otherwise the tax amounts and brackets applicable to
  353  all taxable transactions that occur in counties that have a
  354  surtax at a rate other than 1 percent which transactions would
  355  otherwise have been transactions taxable at the rate of 6
  356  percent. Likewise, the department shall make available in an
  357  electronic format or otherwise the tax amounts and brackets
  358  applicable to transactions taxable at 4.35 7 percent pursuant to
  359  s. 212.05(1)(e)1.c. s. 212.05(1)(e) and on transactions which
  360  would otherwise have been so taxable in counties which have
  361  adopted a discretionary sales surtax.
  362         Section 8. In complying with the amendments to ss. 203.01
  363  and 212.05, Florida Statutes, relating to the additional tax on
  364  electrical power or energy, made by this act, a seller of
  365  electrical power or energy may collect a combined rate of 6.95
  366  percent, which consists of the 4.35 percent and 2.6 percent
  367  required under ss. 212.05(1)(e)1.c. and 203.01(1)(b)4., Florida
  368  Statutes, respectively, if the provider properly reflects the
  369  tax collected with respect to the two provisions as required in
  370  the return to the Department of Revenue.
  371         Section 9. Effective upon this act becoming a law, the
  372  Department of Revenue may, and all conditions are deemed met to,
  373  adopt emergency rules pursuant to ss. 120.536(1) and 120.54,
  374  Florida Statutes, for the purpose of implementing the amendments
  375  to ss. 203.01, 212.05, 212.12, and 212.20, Florida Statutes,
  376  relating to the additional tax on electrical power or energy,
  377  made by this act. This section expires July 1, 2017.
  378         Section 10. Effective July 1, 2014, paragraphs (c) and (d)
  379  of subsection (6) of section 212.20, Florida Statutes, are
  380  amended to read:
  381         212.20 Funds collected, disposition; additional powers of
  382  department; operational expense; refund of taxes adjudicated
  383  unconstitutionally collected.—
  384         (6) Distribution of all proceeds under this chapter, and s.
  385  202.18(1)(b) and (2)(b), and s. 203.01(a)3. is shall be as
  386  follows:
  387         (c)1. Proceeds from the fees imposed under ss.
  388  212.05(1)(h)3. and 212.18(3) shall remain with the General
  389  Revenue Fund.
  390         2. The portion of the proceeds which constitutes gross
  391  receipts tax imposed pursuant to s. 203.01(a)3. shall be
  392  deposited as provided by law and in accordance with s. 9, Art.
  393  XII of the State Constitution.
  394         (d) The proceeds of all other taxes and fees imposed
  395  pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
  396  and (2)(b) shall be distributed as follows:
  397         1. In any fiscal year, the greater of $500 million, minus
  398  an amount equal to 4.6 percent of the proceeds of the taxes
  399  collected pursuant to chapter 201, or 5.2 percent of all other
  400  taxes and fees imposed pursuant to this chapter or remitted
  401  pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
  402  monthly installments into the General Revenue Fund.
  403         2. After the distribution under subparagraph 1., 8.8794
  404  8.814 percent of the amount remitted by a sales tax dealer
  405  located within a participating county pursuant to s. 218.61
  406  shall be transferred into the Local Government Half-cent Sales
  407  Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
  408  be transferred shall be reduced by 0.1 percent, and the
  409  department shall distribute this amount to the Public Employees
  410  Relations Commission Trust Fund less $5,000 each month, which
  411  shall be added to the amount calculated in subparagraph 3. and
  412  distributed accordingly.
  413         3. After the distribution under subparagraphs 1. and 2.,
  414  0.0956 0.095 percent shall be transferred to the Local
  415  Government Half-cent Sales Tax Clearing Trust Fund and
  416  distributed pursuant to s. 218.65.
  417         4. After the distributions under subparagraphs 1., 2., and
  418  3., 2.0602 2.0440 percent of the available proceeds shall be
  419  transferred monthly to the Revenue Sharing Trust Fund for
  420  Counties pursuant to s. 218.215.
  421  5. After the distributions under subparagraphs 1., 2., and 3.,
  422  1.3514 1.3409 percent of the available proceeds shall be
  423  
  424  ================= T I T L E  A M E N D M E N T ================
  425  And the title is amended as follows:
  426         Delete lines 387 - 388
  427  and insert:
  428         the communications services tax; amending s. 203.01,
  429         F.S.; providing for an additional tax on charges for
  430         electrical power or energy and the rate for such tax;
  431         providing for the redistribution of certain taxes on
  432         electrical power and energy; amending ss. 212.05 and
  433         212.12, F.S.; conforming provisions to changes made by
  434         the act; providing that a seller of electrical power
  435         may combine the collection of certain taxes if
  436         properly reflected in its return to the Department of
  437         Revenue; providing for emergency rules; amending s.
  438         212.20, F.S.; revising the distribution of taxes,
  439         including the taxes collected on charges for
  440         electrical power and energy; providing for a monthly
  441         distribution of a