CODING: Words stricken are deletions; words underlined are additions.House Bill 1489e1
CS/HBs 1489 & 1171, First Engrossed
1 A bill to be entitled
2 An act relating to taxation of Internet access,
3 electronic mail, electronic bulletin board, or
4 similar on-line computer services; amending s.
5 203.012, F.S.; providing that
6 "telecommunication service" does not include
7 such services for purposes of gross receipts
8 taxes; revising the definition of
9 "teletypewriter or computer exchange service"
10 to remove computer exchange service; reenacting
11 s. 166.231(10), F.S., relating to the municipal
12 public service tax on telecommunication
13 service, and s. 212.05(1)(e)1., F.S., relating
14 to the sales and use tax on telecommunication
15 service, to incorporate the amendment to s.
16 203.012, F.S., in references thereto; providing
17 intent; providing an effective date.
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19 Be It Enacted by the Legislature of the State of Florida:
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21 Section 1. Subsections (3), (5), and (6) of section
22 203.012, Florida Statutes, are amended to read:
23 203.012 Definitions.--As used in this chapter:
24 (3) The term "local telephone service" means:
25 (a) The access to a local telephone system, and the
26 privilege of telephonic-quality communication with
27 substantially all persons having telephone or radio telephone
28 stations constituting a part of such local telephone system;
29 or
30 (b) Any facility or service provided in connection
31 with a service described in paragraph (a).
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CS/HBs 1489 & 1171, First Engrossed
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2 The term "local telephone service" does not include any
3 service which is a toll telephone service; private
4 communication service; cellular mobile telephone or
5 telecommunication service; specialized mobile radio, or pagers
6 and paging, service, including but not limited to "beepers"
7 and any other form of mobile and portable one-way or two-way
8 communication; or teletypewriter or computer exchange service.
9 (5) The term "telecommunication service" means:
10 (a) Local telephone service, toll telephone service,
11 telegram or telegraph service, teletypewriter or computer
12 exchange service, or private communication service; or
13 (b) Cellular mobile telephone or telecommunication
14 service; or specialized mobile radio, and pagers and paging,
15 service, including but not limited to "beepers" and any other
16 form of mobile and portable one-way or two-way communication;
17 but does not include services or equipment incidental to
18 telecommunication services enumerated in this paragraph such
19 as maintenance of customer premises equipment, whether owned
20 by the customer or not, or equipment sales or rental for which
21 charges are separately stated, itemized, or described on the
22 bill, invoice, or other tangible evidence of the provision of
23 such service.
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25 The term "telecommunication service" does not include any
26 Internet access service, electronic mail service, electronic
27 bulletin board service, or similar on-line computer service.
28 (6) The term "teletypewriter or computer exchange
29 service" means the access from a teletypewriter, telephone,
30 computer, or other data station of which such station is a
31 part, and the privilege of intercommunication by such station
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CS/HBs 1489 & 1171, First Engrossed
1 with substantially all persons having teletypewriter,
2 telephone, computer, or other data stations constituting a
3 part of the same teletypewriter or computer exchange system,
4 to which the subscriber or user is entitled upon payment of a
5 charge or charges, whether such charge or charges are
6 determined as a flat periodic amount, on the basis of distance
7 and elapsed transmission time, or some other method. The term
8 "teletypewriter or computer exchange service" does not include
9 local telephone service or toll telephone service.
10 Section 2. For the purpose of incorporating the
11 amendment to section 203.012, Florida Statutes, in a reference
12 thereto, subsection (10) of section 166.231, Florida Statutes,
13 1996 Supplement, is reenacted to read:
14 166.231 Municipalities; public service tax.--
15 (10) A municipality may levy a tax on the purchase of
16 telecommunication services as defined in s. 203.012 as
17 follows:
18 (a)1. Only upon purchases within the municipality of
19 local telephone service as defined in s. 203.012(3) at a rate
20 not to exceed 10 percent of the monthly recurring customer
21 service charges, excluding public telephone charges collected
22 on site, access charges, and any customer access line charges
23 paid to a local telephone company; or
24 2. Only upon purchases within the municipality of
25 telecommunications service which originates and terminates in
26 this state at a rate not to exceed 7 percent of the total
27 amount charged for any telecommunications service provided
28 within the municipality or, if the location of the
29 telecommunications service provided cannot be determined, the
30 total amount billed for such telecommunications service to a
31 telephone or telephone number, a telecommunications number or
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CS/HBs 1489 & 1171, First Engrossed
1 device, or a customers' billing address located within the
2 municipality, excluding public telephone charges collected on
3 site, charges for any foreign exchange service or any private
4 line service except when such services are used or sold as a
5 substitute for any telephone company switched service or
6 dedicated facility by which a telephone company provides a
7 communication path, access charges, and any customer access
8 line charges paid to a local telephone company. However,
9 telecommunications service as defined in s. 203.012(5)(b)
10 shall be taxed only on the monthly recurring customer service
11 charges excluding variable usage charges.
12 (b) For the purpose of compensating the seller, the
13 seller shall be allowed 1 percent of the amount of the tax
14 collected and due to the municipality in the form of a
15 deduction from the amount collected for remittance. The
16 deduction shall be allowed as compensation for the keeping of
17 records and for the collection of, and the remitting of, the
18 tax.
19 (c) A municipality shall elect by ordinance the tax
20 specified in subparagraph (a)1. or subparagraph (a)2., and any
21 such election shall not be changed until after the expiration
22 of at least 12 months after the effective date of the
23 ordinance levying the tax specified in such subparagraph. A
24 municipality shall notify the companies responsible for
25 collecting such tax at least 120 days prior to such change of
26 election.
27 (d) A municipality electing by ordinance the tax
28 specified in subparagraph (a)2. shall provide to a
29 telecommunications service provider who is responsible for
30 collecting the tax, upon its request, a printed alphabetical
31 listing of all street names including block numbers and street
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CS/HBs 1489 & 1171, First Engrossed
1 numbers for streets which cross or form municipal boundaries
2 within the municipality for use by the provider of the
3 telecommunications service in calculating the proper amount of
4 tax payable to the municipality. The municipality shall be
5 responsible for updating this listing as changes occur and for
6 providing this information to the telecommunications service
7 provider. The provider, in turn, shall be responsible for
8 charging the tax only to service and billing addresses
9 contained in this listing. The municipality shall be entitled
10 to collect a fee not to exceed the actual cost of providing
11 the information to the telecommunications service provider
12 requesting it.
13 (e) A municipality may audit the records of any
14 provider of telecommunications service taxable by such
15 municipality; each such provider shall provide to the
16 municipality, upon 60 days' notice, access to all applicable
17 records for such telecommunications service. In an audit, the
18 telecommunications service provider shall be liable only for
19 its taxable accounts collected corresponding to the
20 information provided to it by the municipality. However, any
21 information received by the municipality or its agent in
22 connection with such audit is confidential and exempt from the
23 provisions of s. 119.07(1).
24 (f)1. If the sale of a taxable telecommunication
25 service also involves the sale of an exempt cable television
26 service, the tax shall be applied to the value of the taxable
27 service when it is sold separately.
28 2. If the company does not offer this service
29 separately, the consideration paid shall be separately
30 identified and stated with respect to the taxable and exempt
31 portions of the transaction as a condition of the exemption.
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CS/HBs 1489 & 1171, First Engrossed
1 3. The amounts identified as taxable in subparagraph
2 2. shall not be less than the statewide average tariff rates
3 set forth by the local exchange telecommunications companies
4 in the tariffs filed with the Public Service Commission on
5 January 1, 1995, and on January 1 of each year thereafter for
6 the equivalent services subject to this section. The Public
7 Service Commission shall publish the statewide average tariff
8 rates annually, beginning on January 1, 1996.
9 4. If the total amount of municipal utility tax
10 collected by a municipality or charter county from
11 telecommunication services pursuant to this subsection for the
12 period of July 1, 1995, to June 30, 1996, is less than the
13 amount collected for the period July 1, 1994, to June 30,
14 1995, the municipality or charter county shall assess each
15 company that remits such tax a pro rata share of the
16 shortfall. The shortfall shall be prorated based on the
17 amount of tax remitted by each company for the period July 1,
18 1995, to June 30, 1996, and the total amount of tax remitted
19 for the same period. By September 1, 1996, the municipality
20 or charter county shall certify to each company the amount of
21 additional tax owed and the tax shall be remitted to the
22 municipality or charter county by October 1, 1996. Provided,
23 however, that this assessment may only be imposed if, in
24 addition to the conditions above, a municipality or charter
25 county has levied the applicable maximum tax rate allowed
26 under this paragraph during the period July 1, 1995, and June
27 30, 1996, and has not switched between the two options allowed
28 under subparagraph (f)1. or subparagraph (f)2. during the
29 period July 1, 1995, and June 30, 1996.
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CS/HBs 1489 & 1171, First Engrossed
1 Purchases of local telephone service or other
2 telecommunications service for use in the conduct of a
3 telecommunications service for hire or otherwise for resale
4 are exempt from the tax imposed by this subsection.
5 Section 3. For the purpose of incorporating the
6 amendment to section 203.012, Florida Statutes, in a reference
7 thereto, subparagraph 1. of paragraph (e) of subsection (1) of
8 section 212.05, Florida Statutes, 1996 Supplement, is
9 reenacted to read:
10 212.05 Sales, storage, use tax.--It is hereby declared
11 to be the legislative intent that every person is exercising a
12 taxable privilege who engages in the business of selling
13 tangible personal property at retail in this state, including
14 the business of making mail order sales, or who rents or
15 furnishes any of the things or services taxable under this
16 chapter, or who stores for use or consumption in this state
17 any item or article of tangible personal property as defined
18 herein and who leases or rents such property within the state.
19 (1) For the exercise of such privilege, a tax is
20 levied on each taxable transaction or incident, which tax is
21 due and payable as follows:
22 (e)1. At the rate of 6 percent on charges for:
23 a. All telegraph messages and long-distance telephone
24 calls beginning and terminating in this state,
25 telecommunication service as defined in s. 203.012, and those
26 services described in s. 203.012(2)(a), except that the tax
27 rate for charges for telecommunication service is 7 percent.
28 b. Any television system program service.
29 c. The installation of telecommunication and
30 telegraphic equipment.
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CS/HBs 1489 & 1171, First Engrossed
1 d. Electrical power or energy, except that the tax
2 rate for charges for electrical power or energy is 7 percent.
3 Section 4. It is the intent of the Legislature that
4 this act is remedial and is intended to clarify existing law.
5 Section 5. This act shall take effect upon becoming a
6 law.
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