Florida Senate - 2014                        COMMITTEE AMENDMENT
       Bill No. HB 5601
       
       
       
       
       
       
                                Ì973828OÎ973828                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: RE            .                                
                  04/25/2014           .                                
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       following:
       
    1         Senate Amendment to Amendment (477076) (with title
    2  amendment)
    3  
    4         Delete lines 16 - 98
    5  and insert:
    6         (a) Except as otherwise provided in this subsection, at a
    7  rate of 6.13 6.65 percent applied to the sales price of the
    8  communications service that which:
    9         1. Originates and terminates in this state;, or
   10         2. Originates or terminates in this state and is charged to
   11  a service address in this state,
   12  
   13  when sold at retail, computed on each taxable sale for the
   14  purpose of remitting the tax due. The gross receipts tax imposed
   15  by chapter 203 shall be collected on the same taxable
   16  transactions and remitted with the tax imposed by this
   17  paragraph. If no tax is imposed by this paragraph due to the
   18  exemption provided under by reason of s. 202.125(1), the tax
   19  imposed by chapter 203 shall nevertheless be collected and
   20  remitted in the manner and at the time prescribed for tax
   21  collections and remittances under this chapter.
   22         (b) At the rate of 10.28 10.8 percent on the retail sales
   23  price of any direct-to-home satellite service received in this
   24  state. The proceeds of the tax imposed under this paragraph
   25  shall be accounted for and distributed in accordance with s.
   26  202.18(2). The gross receipts tax imposed by chapter 203 shall
   27  be collected on the same taxable transactions and remitted with
   28  the tax imposed by this paragraph.
   29         Section 2. Section 202.12001, Florida Statutes, is amended
   30  to read:
   31         202.12001 Combined rate for tax collected pursuant to ss.
   32  202.12(1)(a) and 203.01(1)(b).—In complying with ss. 1-3, ch.
   33  2010-149, Laws of Florida, the dealer of communication services
   34  may collect a combined rate of 6.28 6.8 percent comprised of
   35  6.13 6.65 percent and 0.15 percent required by ss. 202.12(1)(a)
   36  and 203.01(1)(b)3., respectively, if as long as the provider
   37  properly reflects the tax collected with respect to the two
   38  provisions as required in the return to the Department of
   39  Revenue.
   40         Section 3. Subsection (2) of section 202.18, Florida
   41  Statutes, is amended to read:
   42         202.18 Allocation and disposition of tax proceeds.—The
   43  proceeds of the communications services taxes remitted under
   44  this chapter shall be treated as follows:
   45         (2) The proceeds of the taxes remitted under s.
   46  202.12(1)(b) shall be allocated divided as follows:
   47         (a) The portion of such proceeds that constitute which
   48  constitutes gross receipts taxes, imposed at the rate prescribed
   49  in chapter 203, shall be deposited as provided by law and in
   50  accordance with s. 9, Art. XII of the State Constitution.
   51         (b) Sixty and nine-tenths Sixty-three percent of the
   52  remainder shall be allocated to the state and distributed
   53  pursuant to s. 212.20(6), except that the proceeds allocated
   54  pursuant to s. 212.20(6)(d)2. shall be prorated to the
   55  participating counties in the same proportion as that month’s
   56  collection of the taxes and fees imposed pursuant to chapter 212
   57  and paragraph (1)(b).
   58         (c)1. During each calendar year, the remaining portion of
   59  such proceeds shall be transferred to the Local Government Half
   60  cent Sales Tax Clearing Trust Fund. Seventy percent of such
   61  proceeds shall be allocated in the same proportion as the
   62  allocation of total receipts of the half-cent sales tax under s.
   63  218.61 and the emergency distribution under s. 218.65 in the
   64  prior state fiscal year. Thirty percent of such proceeds shall
   65  be distributed pursuant to s. 218.67.
   66         2. The proportion of the proceeds allocated based on the
   67  emergency distribution under s. 218.65 shall be distributed
   68  pursuant to s. 218.65.
   69         3. In each calendar year, the proportion of the proceeds
   70  allocated based on the half-cent sales tax under s. 218.61 shall
   71  be allocated to each county in the same proportion as the
   72  county’s percentage of total sales tax allocation for the prior
   73  state fiscal year and distributed pursuant to s. 218.62.
   74         4. The department shall distribute the appropriate amount
   75  to each municipality and county each month at the same time that
   76  local communications services taxes are distributed pursuant to
   77  subsection (3).
   78         Section 4. Section 203.001, Florida Statutes, is amended to
   79  read:
   80         203.001 Combined rate for tax collected pursuant to ss.
   81  202.12(1)(a) and 203.01(1)(b).—In complying with ss. 1-3, ch.
   82  2010-149, Laws of Florida, the dealer of communication services
   83  may collect a combined rate of 6.28 6.8 percent comprised of
   84  6.13 6.65 percent and 0.15 percent required by ss. 202.12(1)(a)
   85  and 203.01(1)(b)3., respectively, if as long as the provider
   86  properly reflects the tax collected with respect to the two
   87  provisions as required in the return to the Department of
   88  Revenue.
   89         Section 5. Subsection (9) of section 202.11, Florida
   90  Statutes, is amended to read:
   91         202.11 Definitions.—As used in this chapter, the term:
   92         (9) “Prepaid calling arrangement” means: the separately
   93  stated retail sale by advance payment of
   94         (a)A right to use communications services, other than
   95  mobile communications services, for which a separately stated
   96  price must be paid in advance, which is sold at retail in
   97  predetermined units that decline in number with use on a
   98  predetermined basis, and which that consist exclusively of
   99  telephone calls originated by using an access number,
  100  authorization code, or other means that may be manually,
  101  electronically, or otherwise entered; or and that are sold in
  102  predetermined units or dollars of which the number declines with
  103  use in a known amount.
  104         (b) A right to use mobile communications services that must
  105  be paid for in advance and is sold at retail in predetermined
  106  units that expire or decline in number on a predetermined basis
  107  if:
  108         1. The purchaser’s right to use mobile communications
  109  services terminates upon all purchased units expiring or being
  110  exhausted unless the purchaser pays for additional units;
  111         2. The purchaser is not required to purchase additional
  112  units; and
  113         3. Any right of the purchaser to use units to obtain
  114  communications services other than mobile communications
  115  services is limited to services that are provided to or through
  116  the same handset or other electronic device that is used by the
  117  purchaser to access mobile communications services.
  118  
  119  Predetermined units described in this subsection may be
  120  quantified as amounts of usage, time, money, or a combination of
  121  these or other means of measurement.
  122         Section 6. Paragraph (e) of subsection (1) of section
  123  212.05, Florida Statutes, is amended to read:
  124         212.05 Sales, storage, use tax.—It is hereby declared to be
  125  the legislative intent that every person is exercising a taxable
  126  privilege who engages in the business of selling tangible
  127  personal property at retail in this state, including the
  128  business of making mail order sales, or who rents or furnishes
  129  any of the things or services taxable under this chapter, or who
  130  stores for use or consumption in this state any item or article
  131  of tangible personal property as defined herein and who leases
  132  or rents such property within the state.
  133         (1) For the exercise of such privilege, a tax is levied on
  134  each taxable transaction or incident, which tax is due and
  135  payable as follows:
  136         (e)1. At the rate of 6 percent on charges for:
  137         a. Prepaid calling arrangements. The tax on charges for
  138  prepaid calling arrangements shall be collected at the time of
  139  sale and remitted by the selling dealer.
  140         (I) “Prepaid calling arrangement” has the same meaning as
  141  provided in s. 202.11 means the separately stated retail sale by
  142  advance payment of communications services that consist
  143  exclusively of telephone calls originated by using an access
  144  number, authorization code, or other means that may be manually,
  145  electronically, or otherwise entered and that are sold in
  146  predetermined units or dollars whose number declines with use in
  147  a known amount.
  148         (II) If the sale or recharge of the prepaid calling
  149  arrangement does not take place at the dealer’s place of
  150  business, it shall be deemed to have taken take place at the
  151  customer’s shipping address or, if no item is shipped, at the
  152  customer’s address or the location associated with the
  153  customer’s mobile telephone number.
  154         (III) The sale or recharge of a prepaid calling arrangement
  155  shall be treated as a sale of tangible personal property for
  156  purposes of this chapter, whether or not a tangible item
  157  evidencing such arrangement is furnished to the purchaser, and
  158  such sale within this state subjects the selling dealer to the
  159  jurisdiction of this state for purposes of this subsection.
  160         (IV) No additional tax under this chapter or chapter 202 is
  161  due or payable if a purchaser of a prepaid calling arrangement,
  162  who has paid tax under this chapter on the sale or recharge of
  163  such arrangement, applies one or more units of the prepaid
  164  calling arrangement to obtain communications services as
  165  described in s. 202.11(9)(b)3., other services that are not
  166  communications services, or products.
  167         b. The installation of telecommunication and telegraphic
  168  equipment.
  169         c. Electrical power or energy, except that the tax rate for
  170  charges for electrical power or energy is 7 percent.
  171         2. The provisions of s. 212.17(3), regarding credit for tax
  172  paid on charges subsequently found to be worthless, are shall be
  173  equally applicable to any tax paid under the provisions of this
  174  section on charges for prepaid calling arrangements,
  175  telecommunication or telegraph services, or electric power
  176  subsequently found to be uncollectible. The term word “charges”
  177  under in this paragraph does not include any excise or similar
  178  tax levied by the Federal Government, any political subdivision
  179  of this the state, or any municipality upon the purchase, sale,
  180  or recharge of prepaid calling arrangements or upon the purchase
  181  or sale of telecommunication, television system program, or
  182  telegraph service or electric power, which tax is collected by
  183  the seller from the purchaser.
  184         Section 7. The amendments made to ss. 202.11 and 212.05,
  185  Florida Statutes, by this act are intended to be remedial in
  186  nature and apply retroactively, but do not provide a basis for
  187  an assessment of any tax not paid or create a right to a refund
  188  or credit of any tax paid before the effective date of this act.
  189  
  190  ================= T I T L E  A M E N D M E N T ================
  191  And the title is amended as follows:
  192         Delete line 387
  193  and insert:
  194         the communications services tax; amending ss. 202.11
  195         and 212.05, F.S.; revising the term “prepaid calling
  196         arrangement” to clarify and update which services are
  197         included under that definition and subject to a sales
  198         tax; providing for retroactive application; amending
  199         s. 212.20,