CODING: Words stricken are deletions; words underlined are additions.

House Bill 0313e2

CS/CS/HB 313, Second Engrossed 1 A bill to be entitled 2 An act relating to telecommunications; creating 3 ss. 125.421, 166.047, F.S.; specifying 4 circumstances under which a county or other 5 entity of local government may obtain or hold a 6 certificate under chapter 364, F.S., relating 7 to telecommunications companies, and under 8 which the provision of telecommunications 9 services constitutes a municipal or public 10 purpose; providing exceptions; amending s. 11 196.012, F.S.; providing that certain 12 telecommunications services provided to the 13 public for hire are not exempt from taxation 14 unless provided by the operator of a public-use 15 airport or provided by a public hospital; 16 providing that certain property used to provide 17 such services is exempt until a specified date; 18 amending s. 199.183, F.S.; providing that 19 telecommunication services provided to the 20 public for hire by the state or a political 21 subdivision are not exempt from intangible 22 personal property taxes; providing exceptions; 23 amending s. 212.08, F.S.; providing that 24 telecommunication services provided to the 25 public for hire by the state or political 26 subdivision are not exempt from sales or use 27 taxes; providing exceptions; providing a 28 finding of an important state interest; 29 providing an effective date. 30 31 Be It Enacted by the Legislature of the State of Florida: 1 CODING: Words stricken are deletions; words underlined are additions. CS/CS/HB 313, Second Engrossed 1 Section 1. Section 125. 421, Florida Statutes is 2 created to read: 3 125.421 Telecommunications services.--A 4 telecommunications company that is a county or other entity of 5 local government may obtain or hold a certificate required by 6 chapter 364, and the obtaining or holding of said certificate 7 serves a public purpose only if the county or other entity of 8 local government:(1) Separately accounts for the revenues, 9 expenses, property, and source of investment dollars 10 associated with the provision of such service; 11 (2) Is subject, without exemption, to all local 12 requirements applicable to telecommunications companies; and 13 (3) Notwithstanding any other provision of law, pays, 14 on its telecommunications facilities used to provide two-way 15 telecommunication services to the public for hire and for 16 which a certificate is required under chapter 364, ad valorem 17 taxes, or fees in amounts equal thereto, to any taxing 18 jurisdiction in which the county or other entity of local 19 government operates. Any entity of local government may pay 20 and impose such ad valorem taxes or fees. Any immunity of any 21 county or other entity of local government from taxation of 22 the property taxed by this section is hereby waived. 23 24 This section does not apply to the provision of 25 telecommunications services for internal operational needs of 26 a county or other entity of local government. This section 27 does not apply to the provision of internal information 28 services, including, but not limited to, tax records, 29 engineering records, and property records, by a county or 30 other entity of local government to the public for a fee. 31 2 CODING: Words stricken are deletions; words underlined are additions. CS/CS/HB 313, Second Engrossed 1 Section 2. Section 166.047, Florida Statutes, is 2 created to read: 3 166.047 Telecommunications services.--A 4 telecommunications company that is a municipality or other 5 entity of local government may obtain or hold a certificate 6 required by chapter 364, and the obtaining or holding of said 7 certificate serves a municipal or public purpose under the 8 provision of Article VIII Section (2)b, Florida Constitution, 9 only if the municipality or other entity of local 10 government:(1) Separately accounts for the revenues, 11 expenses, property, and source of investment dollars 12 associated with the provision of such services;(2) Is 13 subject, without exemption, to all local requirements 14 applicable to telecommunications companies; and 15 (3) Notwithstanding any other provision of law, pays, 16 on its telecommunications facilities used to provide two-way 17 telecommunications services to the public for hire and for 18 which a certificate is required pursuant to chapter 364, ad 19 valorem taxes, or fees in amounts equal there to, to any 20 taxing jurisdiction in which the municipality or other entity 21 of local government operates. Any entity of local government 22 may pay and impose such ad valorem taxes or fees. 23 24 This section does not apply to the provision of 25 telecommunications services for internal operational needs of 26 a municipality or other entity of local government. This 27 sections does not apply to the provision of internal 28 information services, including, but not limited to, tax 29 records, engineering records, and property records, by a 30 municipality or other entity of local government to the public 31 for a fee. 3 CODING: Words stricken are deletions; words underlined are additions. CS/CS/HB 313, Second Engrossed 1 Section 3. Section Subsection (6) of section 196.012, 2 Florida Statutes, is amended to read: 3 196.012 Definitions.--For the purpose of this chapter, 4 the following terms are defined as follows, except where the 5 context clearly indicates otherwise: 6 (6) Governmental, municipal, or public purpose or 7 function shall be deemed to be served or performed when the 8 lessee under any leasehold interest created in property of the 9 United States, the state or any of its political subdivisions, 10 or any municipality, agency, authority, or other public body 11 corporate of the state is demonstrated to perform a function 12 or serve a governmental purpose which could properly be 13 performed or served by an appropriate governmental unit or 14 which is demonstrated to perform a function or serve a purpose 15 which would otherwise be a valid subject for the allocation of 16 public funds. For purposes of the preceding sentence, an 17 activity undertaken by a lessee which is permitted under the 18 terms of its lease of real property designated as an aviation 19 area on an airport layout plan which has been approved by the 20 Federal Aviation Administration and which real property is 21 used for the administration, operation, business offices and 22 activities related specifically thereto in connection with the 23 conduct of an aircraft full service fixed base operation which 24 provides goods and services to the general aviation public in 25 the promotion of air commerce shall be deemed an activity 26 which serves a governmental, municipal, or public purpose or 27 function. The use by a lessee, licensee, or management company 28 of real property or a portion thereof as a convention center, 29 visitor center, sports facility with permanent seating, 30 concert hall, arena, stadium, park, or beach is deemed a use 31 that serves a governmental, municipal, or public purpose or 4 CODING: Words stricken are deletions; words underlined are additions. CS/CS/HB 313, Second Engrossed 1 function when access to the property is open to the general 2 public with or without a charge for admission. If property 3 deeded to a municipality by the United States is subject to a 4 requirement that the Federal Government, through a schedule 5 established by the Secretary of the Interior, determine that 6 the property is being maintained for public historic 7 preservation, park, or recreational purposes and if those 8 conditions are not met the property will revert back to the 9 Federal Government, then such property shall be deemed to 10 serve a municipal or public purpose. The term "governmental 11 purpose" also includes a direct use of property on federal 12 lands in connection with the Federal government's Space 13 Exploration Program. Real property and tangible personal 14 property owned by the Federal Government and used for defense 15 and space exploration purposes or which is put to a use in 16 support thereof shall be deemed to perform an essential 17 national governmental purpose and shall be exempt. "Owned by 18 the lessee" as used in this chapter does not include personal 19 property, buildings, or other real property improvements used 20 for the administration, operation, business offices and 21 activities related specifically thereto in connection with the 22 conduct of an aircraft full service fixed based operation 23 which provides goods and services to the general aviation 24 public in the promotion of air commerce provided that the real 25 property is designated as an aviation area on an airport 26 layout plan approved by the Federal Aviation Administration. 27 For purposes of determination of "ownership," buildings and 28 other real property improvements which will revert to the 29 airport authority or other governmental unit upon expiration 30 of the term of the lease shall be deemed "owned" by the 31 governmental unit and not the lessee. Providing two-way 5 CODING: Words stricken are deletions; words underlined are additions. CS/CS/HB 313, Second Engrossed 1 telecommunications services to the public for hire by the use 2 of a telecommunications facility, as defined in s. 364.02(13), 3 and for which a certificate is required under chapter 364 does 4 not constitute an exempt use for purposes of s. 196.199, 5 unless the telecommunications services are provided by the 6 operator of a public-use airport, as defined in s. 332.004, 7 for the operator's provision of telecommunications services 8 for the airport or its tenants, concessionaires, or licensees, 9 or unless the telecommunications services are provided by a 10 public hospital. However, property that is being used to 11 provide such telecommunications services on or before October 12 1, 1997, shall remain exempt, but such exemption expires 13 October 1, 2004. 14 Section 4. Subsection (1) of section 199.183, Florida 15 Statutes, 1996 Supplement, is amended to read: 16 199.183 Taxpayers exempt from annual and 17 nonrecurring taxes.-- 18 (1) Intangible personal property owned by this state 19 or any of its political subdivisions or municipalities shall 20 be exempt from taxation under this chapter. This exemption 21 does shall not apply to: 22 (a) Any leasehold or other interest that which is 23 described in s. 199.023(1)(d). 24 (b) Property related to the provision of two-way 25 telecommunications services to the public for hire by the use 26 of a telecommunications facility, as defined in s. 364.02(13), 27 and for which a certificate is required under chapter 364, 28 when such service is provided by any county, municipality, or 29 other political subdivision of the state. Any immunity of any 30 political subdivision of the state or other entity of local 31 government from taxation of the property used to provide 6 CODING: Words stricken are deletions; words underlined are additions. CS/CS/HB 313, Second Engrossed 1 telecommunication services that is taxed as a result of this 2 paragraph is hereby waived. However, intangible personal 3 property related to the provision of such telecommunications 4 services provided by the operator of a public-use airport, as 5 defined in s. 332.004, for the operator's provision of 6 telecommunications services for the airport or its tenants, 7 concessionaires, or licensees, and intangible personal 8 property related to the provision of such telecommunications 9 services provided by a public hospital, are exempt from 10 taxation under this chapter. 11 Section 5. Subsection (6) of section 212.08, Florida 12 Statutes, 1996 Supplement, is amended to read: 13 212.08 Sales, rental, use, consumption, distribution, 14 and storage tax; specified exemptions.--The sale at retail, 15 the rental, the use, the consumption, the distribution, and 16 the storage to be used or consumed in this state of the 17 following are hereby specifically exempt from the tax imposed 18 by this part. 19 (6) EXEMPTIONS; POLITICAL SUBDIVISIONS.--There are 20 also exempt from the tax imposed by this chapter sales made to 21 the United States Government, a state, or any county, 22 municipality, or political subdivision of a state when payment 23 is made directly to the dealer by the governmental entity. 24 This exemption shall not inure to any transaction otherwise 25 taxable under this chapter when payment is made by a 26 government employee by any means, including, but not limited 27 to, cash, check, or credit card when that employee is 28 subsequently reimbursed by the governmental entity. This 29 exemption does not include sales of tangible personal property 30 made to contractors employed either directly or as agents of 31 any such government or political subdivision thereof when such 7 CODING: Words stricken are deletions; words underlined are additions. CS/CS/HB 313, Second Engrossed 1 tangible personal property goes into or becomes a part of 2 public works owned by such government or political subdivision 3 thereof. This exemption does not include sales, rental, use, 4 consumption, or storage for use in any political subdivision 5 or municipality in this state of machines and equipment and 6 parts and accessories therefor used in the generation, 7 transmission, or distribution of electrical energy by systems 8 owned and operated by a political subdivision in this state 9 for transmission or distribution expansion. Likewise exempt 10 are charges for services rendered by radio and television 11 stations, including line charges, talent fees, or license fees 12 and charges for films, videotapes, and transcriptions used in 13 producing radio or television broadcasts. The exemption 14 provided in this subsection does not include sales, rental, 15 use, consumption, or storage for use in any political 16 subdivision or municipality in this state of machines and 17 equipment and parts and accessories therefor used in providing 18 two-way telecommunications services to the public for hire by 19 the use of a telecommunications facility, as defined in s. 20 364.02(13), and for which a certificate is required under 21 chapter 364, which facility is owned and operated by any 22 county, municipality, or other political subdivision of the 23 state. Any immunity of any political subdivision of the state 24 or other entity of local government from taxation of the 25 property used to provide telecommunication services that is 26 taxed as a result of this section is hereby waived. However, 27 the exemption provided in this subsection includes 28 transactions taxable under this part which are for use by the 29 operator of a public-use airport, as defined in s. 322.004, in 30 providing such telecommunications services for the airport or 31 its tenants, concessionaires, or licensees, or which are for 8 CODING: Words stricken are deletions; words underlined are additions. CS/CS/HB 313, Second Engrossed 1 use by a public hospital for the provision of such 2 telecommunications services. 3 Section 6. Severability Clause 4 5 If any section, subsection, paragraph, or other provision of 6 this act, or its application to any person or circumstances 7 shall be held invalid or unconstitutional, such holding shall 8 not affect the validity of any other section, subsection, 9 paragraph, or other provision, or its application to other 10 persons or circumstances. The legislature hereby expresses 11 the intent that it would have enacted the other provisions of 12 this act as if the invalid or unconstitutional provisions was 13 not contained within the act. 14 Section 7. Under s. 18, Art. VII of the State 15 Constitution, the Legislature determines and declares that the 16 provisions of this act fulfill an important state interest. 17 Section 8. This act shall take effect October 1, 1997. 18 19 20 21 22 23 24 25 26 27 28 29 30 31 9