House Bill 1949e1
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HB 1949, First Engrossed
1 A bill to be entitled
2 An act relating to tax on sales, use, and other
3 transactions; amending s. 212.05, F.S.;
4 reducing the rate of the tax on charges for
5 telecommunication service from 7 percent to 6.5
6 percent; providing for application of such tax;
7 providing legislative intent to further reduce
8 the rate in a subsequent year; amending s.
9 212.12, F.S., to conform; specifying the
10 application date of such reduced rate for
11 charges billed on a monthly cycle; providing an
12 effective date.
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14 Be It Enacted by the Legislature of the State of Florida:
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16 Section 1. Paragraph (e) of subsection (1) of section
17 212.05, Florida Statutes, 1998 Supplement, is amended to read:
18 212.05 Sales, storage, use tax.--It is hereby declared
19 to be the legislative intent that every person is exercising a
20 taxable privilege who engages in the business of selling
21 tangible personal property at retail in this state, including
22 the business of making mail order sales, or who rents or
23 furnishes any of the things or services taxable under this
24 chapter, or who stores for use or consumption in this state
25 any item or article of tangible personal property as defined
26 herein and who leases or rents such property within the state.
27 (1) For the exercise of such privilege, a tax is
28 levied on each taxable transaction or incident, which tax is
29 due and payable as follows:
30 (e)1. Effective January 1, 2000, at the rate of 6.5 6
31 percent on the total charge charges for:
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HB 1949, First Engrossed
1 a. All telegraph messages and long-distance telephone
2 calls beginning and terminating in this state,
3 telecommunication service as defined in s. 203.012, and those
4 services described in s. 203.012(2)(a). The tax shall be
5 applied to the total charge for each message, call, or other
6 segment or component of telecommunication service for which a
7 customer is charged. It is the intent of the Legislature that,
8 pursuant to future legislative action, the rate at which
9 telecommunication service as defined in s. 203.012 and those
10 services described in s. 203.012(2)(a) are taxed be reduced to
11 6 percent on January 1, 2001, except that the tax rate for
12 charges for telecommunication service is 7 percent.
13 2. At the rate of 7 percent on the total charge for
14 electrical power or energy.
15 3. At the rate of 6 percent on charges for:
16 a.b. Any television system program service.
17 b.c. The installation of telecommunication and
18 telegraphic equipment.
19 d. Electrical power or energy, except that the tax
20 rate for charges for electrical power or energy is 7 percent.
21 4.2. For purposes of this chapter, "television system
22 program service" means the transmitting, by any means, of any
23 audio or video signal to a subscriber for other than
24 retransmission, or the installing, connecting, reconnecting,
25 disconnecting, moving, or changing of any equipment related to
26 such service. For purposes of this chapter, the term
27 "telecommunication service" does not include local service
28 provided through a pay telephone. The provisions of s.
29 212.17(3), regarding credit for tax paid on charges
30 subsequently found to be worthless, shall be equally
31 applicable to any tax paid under the provisions of this
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HB 1949, First Engrossed
1 section on charges for telecommunication or telegraph services
2 or electric power subsequently found to be uncollectible. The
3 word "charges" in this paragraph does not include any excise
4 or similar tax levied by the Federal Government, any political
5 subdivision of the state, or any municipality upon the
6 purchase or sale of telecommunication, television system
7 program, or telegraph service or electric power, which tax is
8 collected by the seller from the purchaser.
9 5.3. Telegraph messages and telecommunication services
10 which originate or terminate in this state, other than
11 interstate private communication services, and are billed to a
12 customer, telephone number, or device located within this
13 state are taxable under this paragraph. Interstate private
14 communication services are taxable under this paragraph as
15 follows:
16 a. One hundred percent of the charge imposed at each
17 channel termination point within this state;
18 b. One hundred percent of the charge imposed for the
19 total channel mileage between each channel termination point
20 within this state; and
21 c. The portion of the interstate interoffice channel
22 mileage charge as determined by multiplying said charge times
23 a fraction, the numerator of which is the air miles between
24 the last channel termination point in this state and the
25 vertical and horizontal coordinates, 7856 and 1756,
26 respectively, and the denominator of which is the air miles
27 between the last channel termination point in this state and
28 the first channel termination point outside this state. The
29 denominator of this fraction shall be adjusted, if necessary,
30 by adding the numerator of said fraction to similarly
31 determined air miles in the state in which the other channel
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HB 1949, First Engrossed
1 termination point is located, so that the summation of the
2 apportionment factor for this state and the apportionment
3 factor for the other state is not greater than one, to ensure
4 that no more than 100 percent of the interstate interoffice
5 channel mileage charge can be taxed by this state and another
6 state.
7 6.4. The tax imposed pursuant to this paragraph shall
8 not exceed $50,000 per calendar year on charges to any person
9 for interstate telecommunications services defined in s.
10 203.012(4) and (7)(b), if the majority of such services used
11 by such person are for communications originating outside of
12 this state and terminating in this state. This exemption
13 shall only be granted to holders of a direct pay permit issued
14 pursuant to this subparagraph. No refunds shall be given for
15 taxes paid prior to receiving a direct pay permit. Upon
16 application, the department may issue a direct pay permit to
17 the purchaser of telecommunications services authorizing such
18 purchaser to pay tax on such services directly to the
19 department. Any vendor furnishing telecommunications services
20 to the holder of a valid direct pay permit shall be relieved
21 of the obligation to collect and remit the tax on such
22 service. Tax payments and returns pursuant to a direct pay
23 permit shall be monthly. For purposes of this subparagraph,
24 the term "person" shall be limited to a single legal entity
25 and shall not be construed as meaning a group or combination
26 of affiliated entities or entities controlled by one person or
27 group of persons.
28 7.5. If the sale of a television system program
29 service, as defined in this paragraph, also involves the sale
30 of an item exempt under s. 212.08(7)(j), the tax shall be
31 applied to the value of the taxable service when it is sold
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HB 1949, First Engrossed
1 separately. If the company does not offer this service
2 separately, the consideration paid shall be separately
3 identified and stated with respect to the taxable and exempt
4 portions of the transaction as a condition of the exemption,
5 except that the amount identified as taxable shall not be less
6 than the cost of the service.
7 Section 2. Subsection (11) of section 212.12, Florida
8 Statutes, 1998 Supplement, is amended to read:
9 212.12 Dealer's credit for collecting tax; penalties
10 for noncompliance; powers of Department of Revenue in dealing
11 with delinquents; brackets applicable to taxable transactions;
12 records required.--
13 (11) The department is authorized to provide by rule
14 the tax amounts and brackets applicable to all taxable
15 transactions that occur in counties that have a surtax at a
16 rate other than 1 percent which transactions would otherwise
17 have been transactions taxable at the rate of 6 percent.
18 Likewise, the department is authorized to promulgate by rule
19 the tax amounts and brackets applicable to transactions
20 taxable at 3 percent pursuant to s. 212.08(3), transactions
21 taxable at 7 percent pursuant to s. 212.05(1)(e)1. and 2., and
22 on transactions which would otherwise have been so taxable in
23 counties which have adopted a discretionary sales surtax.
24 Section 3. With respect to charges for
25 telecommunication service that are regularly billed on a
26 monthly cycle, the changes in the sales tax rate provided for
27 in this act shall apply to charges appearing on any bill dated
28 on or after February 1, 2000.
29 Section 4. This act shall take effect July 1, 1999.
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