Senate Bill 0770

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



    Florida Senate - 1999                                   SB 770

    By Senators Horne, Dawson-White, Gutman, Diaz-Balart, Forman,
    Holzendorf and Kirkpatrick




    6-482-99                                                See HB

  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 and for electrical

  6         power or energy; amending s. 212.12, F.S., to

  7         conform; providing an effective date.

  8

  9  Be It Enacted by the Legislature of the State of Florida:

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11         Section 1.  Paragraph (e) of subsection (1) of section

12  212.05, Florida Statutes, 1998 Supplement, is amended to read:

13         212.05  Sales, storage, use tax.--It is hereby declared

14  to be the legislative intent that every person is exercising a

15  taxable privilege who engages in the business of selling

16  tangible personal property at retail in this state, including

17  the business of making mail order sales, or who rents or

18  furnishes any of the things or services taxable under this

19  chapter, or who stores for use or consumption in this state

20  any item or article of tangible personal property as defined

21  herein and who leases or rents such property within the state.

22         (1)  For the exercise of such privilege, a tax is

23  levied on each taxable transaction or incident, which tax is

24  due and payable as follows:

25         (e)1.  At the rate of 6 percent on charges for:

26         a.  All telegraph messages and long-distance telephone

27  calls beginning and terminating in this state,

28  telecommunication service as defined in s. 203.012, and those

29  services described in s. 203.012(2)(a), except that the tax

30  rate for charges for telecommunication service is 7 percent.

31         b.  Any television system program service.

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    Florida Senate - 1999                                   SB 770
    6-482-99                                                See HB




  1         c.  The installation of telecommunication and

  2  telegraphic equipment.

  3         d.  Electrical power or energy, except that the tax

  4  rate for charges for electrical power or energy is 7 percent.

  5         2.  For purposes of this chapter, "television system

  6  program service" means the transmitting, by any means, of any

  7  audio or video signal to a subscriber for other than

  8  retransmission, or the installing, connecting, reconnecting,

  9  disconnecting, moving, or changing of any equipment related to

10  such service.  For purposes of this chapter, the term

11  "telecommunication service" does not include local service

12  provided through a pay telephone. The provisions of s.

13  212.17(3), regarding credit for tax paid on charges

14  subsequently found to be worthless, shall be equally

15  applicable to any tax paid under the provisions of this

16  section on charges for telecommunication or telegraph services

17  or electric power subsequently found to be uncollectible. The

18  word "charges" in this paragraph does not include any excise

19  or similar tax levied by the Federal Government, any political

20  subdivision of the state, or any municipality upon the

21  purchase or sale of telecommunication, television system

22  program, or telegraph service or electric power, which tax is

23  collected by the seller from the purchaser.

24         3.  Telegraph messages and telecommunication services

25  which originate or terminate in this state, other than

26  interstate private communication services, and are billed to a

27  customer, telephone number, or device located within this

28  state are taxable under this paragraph.  Interstate private

29  communication services are taxable under this paragraph as

30  follows:

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    Florida Senate - 1999                                   SB 770
    6-482-99                                                See HB




  1         a.  One hundred percent of the charge imposed at each

  2  channel termination point within this state;

  3         b.  One hundred percent of the charge imposed for the

  4  total channel mileage between each channel termination point

  5  within this state; and

  6         c.  The portion of the interstate interoffice channel

  7  mileage charge as determined by multiplying said charge times

  8  a fraction, the numerator of which is the air miles between

  9  the last channel termination point in this state and the

10  vertical and horizontal coordinates, 7856 and 1756,

11  respectively, and the denominator of which is the air miles

12  between the last channel termination point in this state and

13  the first channel termination point outside this state.  The

14  denominator of this fraction shall be adjusted, if necessary,

15  by adding the numerator of said fraction to similarly

16  determined air miles in the state in which the other channel

17  termination point is located, so that the summation of the

18  apportionment factor for this state and the apportionment

19  factor for the other state is not greater than one, to ensure

20  that no more than 100 percent of the interstate interoffice

21  channel mileage charge can be taxed by this state and another

22  state.

23         4.  The tax imposed pursuant to this paragraph shall

24  not exceed $50,000 per calendar year on charges to any person

25  for interstate telecommunications services defined in s.

26  203.012(4) and (7)(b), if the majority of such services used

27  by such person are for communications originating outside of

28  this state and terminating in this state.  This exemption

29  shall only be granted to holders of a direct pay permit issued

30  pursuant to this subparagraph.  No refunds shall be given for

31  taxes paid prior to receiving a direct pay permit. Upon

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    Florida Senate - 1999                                   SB 770
    6-482-99                                                See HB




  1  application, the department may issue a direct pay permit to

  2  the purchaser of telecommunications services authorizing such

  3  purchaser to pay tax on such services directly to the

  4  department. Any vendor furnishing telecommunications services

  5  to the holder of a valid direct pay permit shall be relieved

  6  of the obligation to collect and remit the tax on such

  7  service. Tax payments and returns pursuant to a direct pay

  8  permit shall be monthly. For purposes of this subparagraph,

  9  the term "person" shall be limited to a single legal entity

10  and shall not be construed as meaning a group or combination

11  of affiliated entities or entities controlled by one person or

12  group of persons.

13         5.  If the sale of a television system program service,

14  as defined in this paragraph, also involves the sale of an

15  item exempt under s. 212.08(7)(j), the tax shall be applied to

16  the value of the taxable service when it is sold separately.

17  If the company does not offer this service separately, the

18  consideration paid shall be separately identified and stated

19  with respect to the taxable and exempt portions of the

20  transaction as a condition of the exemption, except that the

21  amount identified as taxable shall not be less than the cost

22  of the service.

23         Section 2.  Subsection (11) of section 212.12, Florida

24  Statutes, 1998 Supplement, is amended to read:

25         212.12  Dealer's credit for collecting tax; penalties

26  for noncompliance; powers of Department of Revenue in dealing

27  with delinquents; brackets applicable to taxable transactions;

28  records required.--

29         (11)  The department is authorized to provide by rule

30  the tax amounts and brackets applicable to all taxable

31  transactions that occur in counties that have a surtax at a

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    Florida Senate - 1999                                   SB 770
    6-482-99                                                See HB




  1  rate other than 1 percent which transactions would otherwise

  2  have been transactions taxable at the rate of 6 percent.

  3  Likewise, the department is authorized to promulgate by rule

  4  the tax amounts and brackets applicable to transactions

  5  taxable at 3 percent pursuant to s. 212.08(3), transactions

  6  taxable at 7 percent pursuant to s. 212.05(1)(e), and on

  7  transactions which would otherwise have been so taxable in

  8  counties which have adopted a discretionary sales surtax.

  9         Section 3.  This act shall take effect July 1, 1999.

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12                          HOUSE SUMMARY

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      Reduces the rate of the sales tax on charges for
14    telecommunication service and for electrical power or
      energy from 7 percent to 6 percent.
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