Senate Bill sb1610c2

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    By the Committees on Finance and Taxation; Regulated
    Industries; and Senator Pruitt




    314-2170-02

  1                      A bill to be entitled

  2         An act relating to the communications services

  3         tax; amending s. 202.125, F.S., relating to the

  4         tax exemption on the sale of communications

  5         services to religious or educational

  6         institutions; providing definitions to conform

  7         such exemption to the sales tax exemption

  8         provided for these institutions; creating s.

  9         202.151, F.S.; clarifying the imposition of a

10         use tax on certain purchases of communications

11         services; amending s. 202.16, F.S.; providing

12         an exception to the requirement that dealers

13         separately state the communications services

14         tax on bills and invoices; creating s. 202.205,

15         F.S.; providing a transition rule for counties

16         and municipalities that reduced the local

17         communications services tax on a specified

18         date; amending s. 202.22, F.S.; clarifying

19         provisions governing the electronic databases

20         used to determine local tax situs for the

21         communications services tax; repealing s.

22         212.05(1)(g), F.S., relating to a sales tax on

23         certain substitute telecommunications

24         equipment; amending s. 337.401, F.S.; changing

25         the date on which local governments must notify

26         dealers that provide communications services of

27         changes in permit fees; revising provisions

28         relating to charges for the use of

29         rights-of-way; amending s. 365.172, F.S.;

30         clarifying that the E911 fee applies to certain

31         customers whose place of primary use is within

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  1         the state; specifying that certain definitions

  2         applicable to the Communications Services Tax

  3         Simplification Law apply to the E911 fee;

  4         amending ss. 212.0501, 212.08, 212.20, 509.032,

  5         561.1105, F.S., relating to the tax on diesel

  6         fuel, a tax exemption for professional

  7         services, distribution of taxes, and tax

  8         certificates; conforming cross-references to

  9         changes made by the act; specifying that

10         certain provisions of the act are remedial in

11         nature and intended to clarify the law in

12         effect on the effective date of the act;

13         providing effective dates.

14

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

16

17         Section 1.  Subsection (4) of section 202.125, Florida

18  Statutes, is amended to read:

19         202.125  Sales of communications services; specified

20  exemptions.--

21         (4)  The sale of communications services to a religious

22  institution or educational institution organization that is

23  exempt from federal income tax under s. 501(c)(3) of the

24  Internal Revenue Code, or by a religious institution that is

25  exempt from federal income tax under s. 501(c)(3) of the

26  Internal Revenue Code having an established physical place for

27  worship at which nonprofit religious services and activities

28  are regularly conducted and carried on, is exempt from the

29  taxes imposed or administered pursuant to ss. 202.12 and

30  202.19. As used in this subsection, the term:

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  1         (a)  "Religious institution" means church, synagogue,

  2  or established physical place for worship at which nonprofit

  3  religious services and activities are regularly conducted. The

  4  term also includes:

  5         1.  Any nonprofit corporation the sole purpose of which

  6  is to provide free transportation services to church members,

  7  their families, and other church attendees;

  8         2.  Any nonprofit state, district, or other governing

  9  or administrative office the function of which is to assist or

10  regulate the customary activities of religious institutions;

11         3.  Any nonprofit corporation that owns and operates a

12  television station in this state of which at least 90 percent

13  of the programming consists of programs of a religious nature

14  and the financial support for which, exclusive of receipts for

15  broadcasting from other nonprofit organizations, is

16  predominantly from contributions from the public;

17         4.  Any nonprofit corporation the primary activity of

18  which is making and distributing audio recordings of religious

19  scriptures and teachings to blind or visually impaired persons

20  at no charge; and

21         5.  Any nonprofit corporation the sole or primary

22  purpose of which is to provide, upon invitation, nonprofit

23  religious services, evangelistic services, religious

24  education, administrative assistance, or missionary assistance

25  for a church, synagogue, or established physical place of

26  worship at which nonprofit religious services and activities

27  are regularly conducted.

28         (b)  "Educational institution" includes:

29         1.  Any state tax-supported, parochial, church, and

30  nonprofit private school, college, or university that conducts

31  regular classes and courses of study required for

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  1  accreditation by or membership in the Southern Association of

  2  Colleges and Schools, the Florida Council of Independent

  3  Schools, or the Florida Association of Christian Colleges and

  4  Schools, Inc.;

  5         2.  Any nonprofit private school that conducts regular

  6  classes and courses of study which are accepted for continuing

  7  education credit by a board of the Division of Medical Quality

  8  Assurance of the Department of Health;

  9         3.  Any nonprofit library;

10         4.  Any nonprofit art gallery;

11         5.  Any nonprofit performing arts center that provides

12  educational programs to school children, which programs

13  involve performances or other educational activities at the

14  performing arts center and serve a minimum of 50,000 school

15  children a year; and

16         6.  Any nonprofit museum that is open to the public.

17         Section 2.  Section 202.151, Florida Statutes, is

18  created to read:

19         202.151  Use tax imposed on certain purchasers of

20  communications services.--Any person who purchases

21  communications services that are otherwise taxable under ss.

22  202.12 and 202.19 at retail from a seller in another state,

23  territory, the District of Columbia, or any foreign country

24  shall report and remit to the department the taxes imposed by

25  or administered under this chapter on the communications

26  services purchased and used, the same as if such

27  communications services had been purchased at retail from a

28  dealer in this state. This section does not apply if the

29  out-of-state seller registers as a dealer in this state and

30  collects from the purchaser the taxes imposed by or

31  administered under this chapter. The department may adopt

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  1  rules governing the reporting and remitting of communications

  2  services taxes by purchasers who purchase from out-of-state

  3  sellers who do not collect the taxes imposed by or

  4  administered under this chapter.

  5         Section 3.  Subsection (1) of section 202.16, Florida

  6  Statutes, is amended to read:

  7         202.16  Payment.--The taxes imposed or administered

  8  under this chapter and chapter 203 shall be collected from all

  9  dealers of taxable communications services on the sale at

10  retail in this state of communications services taxable under

11  this chapter and chapter 203. The full amount of the taxes on

12  a credit sale, installment sale, or sale made on any kind of

13  deferred payment plan is due at the moment of the transaction

14  in the same manner as a cash sale.

15         (1)(a)  Except as otherwise provided in ss.

16  202.12(1)(b) and 202.15, the taxes collected under this

17  chapter and chapter 203 shall be paid by the purchaser of the

18  communications service and shall be collected from such person

19  by the dealer of communications services.

20         (b)  Each dealer of communications services selling

21  communications services in this state shall collect the taxes

22  imposed under this chapter and chapter 203 from the purchaser

23  of such services, and such taxes must be stated separately

24  from all other charges on the bill or invoice. Notwithstanding

25  the requirement in this paragraph and in s. 202.35 to

26  separately state such taxes, a public lodging establishment

27  licensed under chapter 509 may notify purchasers of the taxes

28  imposed under this chapter on a notice in a guest room posted

29  in a manner consistent with the requirements of s. 509.2015,

30  rather than separately stating the taxes on the guest bill or

31  invoice.

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  1         Section 4.  Section 202.205, Florida Statutes, is

  2  created to read:

  3         202.205  Transition rule for local

  4  rates.--Notwithstanding s. 202.21, the rate of the local

  5  communications services tax for a county or municipality that

  6  adopted a resolution or ordinance reducing the rate of tax

  7  effective October 1, 2002, and that notified the Department of

  8  Revenue of the reduced rate by mail postmarked by July 16,

  9  2001, shall be the adopted reduced rate beginning October 1,

10  2002. However, the local governing body of the county or

11  municipality may change the local rate effective January 1,

12  2003, in the manner provided in this chapter.

13         Section 5.  Paragraph (b) of subsection (2) and

14  paragraphs (a) and (g) of subsection (3) of section 202.22,

15  Florida Statutes, are amended to read:

16         202.22  Determination of local tax situs.--

17         (2)

18         (b)1.  Each local taxing jurisdiction shall furnish to

19  the department all information needed to create and update the

20  electronic database, including changes in service addresses,

21  annexations, incorporations, reorganizations, and any other

22  changes in jurisdictional boundaries. The information

23  furnished to the department must specify an effective date,

24  which must be the next ensuing January 1 or July 1, and such

25  information must be furnished to the department at least 120

26  days prior to the effective date. However, the requirement

27  that counties submit information pursuant to this paragraph

28  shall be subject to appropriation.

29         2.  The department shall update the electronic database

30  in accordance with the information furnished by local taxing

31  jurisdictions under subparagraph 1. Each update must specify

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  1  the effective date as the next ensuing January 1 or July 1 and

  2  must be posted by the department on a website not less than 90

  3  days prior to the effective date. A substantially affected

  4  person may provide notice to the database administrator of an

  5  objection to information contained in the electronic database.

  6  If an objection is supported by competent evidence, the

  7  department shall forward the evidence to the affected local

  8  taxing jurisdictions and update the electronic database in

  9  accordance with the determination furnished by local taxing

10  jurisdictions to the department.  The department shall also

11  furnish the update on magnetic or electronic media to any

12  dealer of communications services or vendor who requests the

13  update on such media. However, the department may collect a

14  fee from the dealer of communications services which does not

15  exceed the actual cost of furnishing the update on magnetic or

16  electronic media. Information contained in the electronic

17  database is conclusive for purposes of this chapter. The

18  electronic database is not an order, a rule, or a policy of

19  general applicability.

20         3.  Each update must identify the additions, deletions,

21  and other changes to the preceding version of the database.

22  Each dealer of communications services shall be required to

23  collect and remit local communications services taxes imposed

24  under this chapter only for those service addresses that are

25  contained in the database and for which all of the elements

26  required by this subsection are included in the database.

27         (3)  For purposes of this section, a database must be

28  certified by the department pursuant to rules that implement

29  the following criteria and procedures:

30         (a)  The database must assign street addresses, address

31  ranges, post office boxes, or post office box ranges to the

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  1  proper jurisdiction with an overall accuracy rate of 95

  2  percent at a 95 percent level of confidence, as determined

  3  through a statistically reliable sample. The accuracy must be

  4  measured based on the entire geographic area within the state

  5  covered by such database state or, if the service area of the

  6  dealer does not encompass the entire state, based on the

  7  dealer's entire service area.

  8         (g)  Notwithstanding any provision of law to the

  9  contrary, if a dealer submits an application for certification

10  on or before the later of October 1, 2001, or the date that

11  which is 30 days after the date on which the applicable

12  department rule becomes effective, the 180-day time limit set

13  forth in paragraph (d) does not apply. During the time the

14  application is under consideration by the department or, if

15  the application is denied, until the denial is no longer

16  subject to administrative or judicial review or until a later

17  date fixed by order of the reviewing court and such

18  application is neither approved nor denied within the time

19  period set forth in paragraph (d):

20         1.  For purposes of computing the amount of the

21  deduction to which such dealer is entitled under s. 202.28,

22  the dealer shall be deemed to have used a certified database

23  pursuant to paragraph (1)(b), until such time as the

24  application for certification is denied.

25         2.  In the event that such application is approved,

26  such approval shall be deemed to have been effective on the

27  date of the application or October 1, 2001, whichever is

28  later.

29         Section 6.  Paragraph (g) of subsection (1) of section

30  212.05, Florida Statutes, as amended by section 38 of chapter

31  2001-140, Laws of Florida, is repealed.

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  1         Section 7.  Paragraph (j) of subsection (3) and

  2  subsection (6) of 337.401, Florida Statutes, are amended to

  3  read:

  4         337.401  Use of right-of-way for utilities subject to

  5  regulation; permit; fees.--

  6         (3)

  7         (j)  Pursuant to this paragraph, any county or

  8  municipality may by ordinance change either its election made

  9  on or before July 16, 2001, under paragraph (c) or an election

10  made under this paragraph.

11         1.a.  If a municipality or charter county changes its

12  election under this paragraph in order to exercise its

13  authority to require and collect permit fees in accordance

14  with this subsection, the rate of the local communications

15  services tax imposed by such jurisdiction pursuant to ss.

16  202.19 and 202.20 shall automatically be reduced by the sum of

17  0.12 percent plus the percentage, if any, by which such rate

18  was increased pursuant to sub-subparagraph (c)1.b.

19         b.  If a municipality or charter county changes its

20  election under this paragraph in order to discontinue

21  requiring and collecting permit fees, the rate of the local

22  communications services tax imposed by such jurisdiction

23  pursuant to ss. 202.19 and 202.20 may be increased by

24  ordinance or resolution by an amount not to exceed 0.24

25  percent.

26         2.a.  If a noncharter county changes its election under

27  this paragraph in order to exercise its authority to require

28  and collect permit fees in accordance with this subsection,

29  the rate of the local communications services tax imposed by

30  such jurisdiction pursuant to ss. 202.19 and 202.20 shall

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  1  automatically be reduced by the percentage, if any, by which

  2  such rate was increased pursuant to sub-subparagraph (c)2.b.

  3         b.  If a noncharter county changes its election under

  4  this paragraph in order to discontinue requiring and

  5  collecting permit fees, the rate of the local communications

  6  services tax imposed by such jurisdiction pursuant to ss.

  7  202.19 and 202.20 may be increased by ordinance or resolution

  8  by an amount not to exceed 0.24 percent.

  9         3.a.  Any change of election pursuant to this paragraph

10  and any tax rate change resulting from such change of election

11  shall be subject to the notice requirements of s. 202.21;

12  however, no such change of election shall become effective

13  prior to January 1, 2003.

14         b.  Any county or municipality changing its election

15  under this paragraph in order to exercise its authority to

16  require and collect permit fees shall, in addition to

17  complying with the notice requirements under s. 202.21,

18  provide to all dealers providing communications services in

19  such jurisdiction written notice of such change of election by

20  September July 1 immediately preceding the January 1 on which

21  such change of election becomes effective. For purposes of

22  this sub-subparagraph, dealers providing communications

23  services in such jurisdiction shall include every dealer

24  reporting tax to such jurisdiction pursuant to s. 202.37 on

25  the return required under s. 202.27 to be filed on or before

26  the 20th day of May immediately preceding the January 1 on

27  which such change of election becomes effective.

28         (6)(a)  As used in this subsection, the term:

29         1.  "Pass-through provider" means any person who places

30  or maintains a communications facility in the roads or

31  rights-of-way of a municipality or county that levies a tax

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  1  pursuant to chapter 202 and who does not remit taxes imposed

  2  by that municipality or county pursuant to chapter 202.

  3         2.  "Communications facility" means a facility that may

  4  be used to provide communications services. Multiple cables,

  5  conduits, strands, or fibers located within the same conduit

  6  shall be considered one communications facility for purposes

  7  of this subsection.

  8         (b)  A municipality that levies a tax pursuant to

  9  chapter 202 may charge a pass-through provider that places or

10  maintains a communications facility in the municipality's

11  roads or rights-of-way an annual amount not to exceed $500 per

12  linear mile or portion thereof. A municipality's roads or

13  rights-of-way do not include roads or rights-of-way that

14  extend in or through the municipality but that are state,

15  county, or another authority's roads or rights-of-way.

16         (c)  A county that levies a tax pursuant to chapter 202

17  may charge a pass-through provider that places or maintains a

18  communications facility in the county's roads or

19  rights-of-way, including county roads or rights-of-way within

20  a municipality in the county, an annual amount not to exceed

21  $500 per linear mile or portion thereof. However, a county

22  shall not impose a charge for any linear miles, or portions

23  thereof, of county roads or rights-of-way where a

24  communications facility is placed which extend through any

25  municipality within the county to which the pass-through

26  provider remits a tax imposed pursuant to chapter 202. A

27  county's roads or rights-of-way do not include roads or

28  rights-of-way that extend in or through the county but that

29  are state, municipal, or another authority's roads or

30  rights-of-way.

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  1         (d)  The amounts charged pursuant to this subsection

  2  shall be based on the linear miles of roads or rights-of-way

  3  where a communications facility is placed, not based on a

  4  summation of the lengths of individual cables, conduits,

  5  strands, or fibers. The amounts referred to in this subsection

  6  may be charged only once annually and only to one person

  7  annually for any communications facility. A municipality or

  8  county shall discontinue charging such amounts to a person

  9  that has ceased to be a pass-through provider. Any annual

10  amounts charged shall be reduced for a prorated portion of any

11  12-month period during which the person remits taxes imposed

12  by the municipality or county pursuant to chapter 202. Any

13  excess amounts paid to a municipality or county shall be

14  refunded to the person upon written notice of the excess to

15  the municipality or county.

16         (e)  This subsection does not alter any provision of

17  this section or s. 202.24 relating to taxes, fees, or other

18  charges or impositions by a municipality or county on a dealer

19  of communications services or authorize any charges to be

20  assessed on a dealer of communications services, except as

21  specifically set forth in this subsection. A municipality or

22  county may not charge a pass-through provider any amounts

23  other than the charges under this subsection as a condition to

24  the placement or maintenance of a communications facility in

25  the roads or rights-of-way of a municipality or county by a

26  pass-through provider, except that a municipality or county

27  may impose permit fees on a pass-through provider consistent

28  with paragraph (3)(c) if the municipality or county elects to

29  exercise its authority to collect permit fees under paragraph

30  (3)(c).

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  1         (f)  The charges under this subsection do not apply to

  2  communications facilities placed in a municipality's or

  3  county's rights-of-way before the effective date of this

  4  subsection with permission from the municipality or county, if

  5  any was required, except to the extent that the facilities of

  6  a pass-through provider were subject to per-linear-foot or

  7  per-mile charges in effect as of October 1, 2001, in which

  8  case the municipality or county may impose on a pass-through

  9  provider only charges consistent with paragraph (b) or

10  paragraph (c) for such facilities. Notwithstanding the

11  foregoing, this subsection does not impair any written

12  agreement between a pass-through provider and a municipality

13  or county imposing per-linear-foot or per-mile charges for

14  communications facilities placed in municipal or county roads

15  or rights-of-way which was in effect before the effective date

16  of this subsection. Upon the termination or expiration of any

17  such written agreement, any charges imposed must be consistent

18  with paragraph (b) or paragraph (c). Notwithstanding the

19  foregoing, until October 1, 2005, this subsection shall not

20  affect a municipality or county continuing to impose charges

21  in excess of the charges authorized in this subsection on

22  facilities of a pass-through provider that is not a dealer of

23  communications services in the state under chapter 202, but

24  only to the extent that such charges were imposed by municipal

25  or county ordinance or resolution adopted before February 1,

26  2002. Effective October 1, 2005, any charges imposed must be

27  consistent with paragraph (b) or paragraph (c).

28         (g)  The charges authorized in this subsection shall

29  not be applied with respect to any communications facility

30  that is used exclusively for the internal communications of an

31  electric utility or other person in the business of

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  1  transmitting or distributing electric energy. If a

  2  municipality or county imposes any amount on a person or

  3  entity other than a provider of communications services in

  4  connection with the placement or maintenance by such person or

  5  entity of a communication facility in municipal or county

  6  roads or rights-of-way, such amounts, if any, shall not exceed

  7  the highest amount, if any, the municipality or county is

  8  imposing in such context as of the date this act becomes a

  9  law.  If a municipality or county is not imposing any amount

10  in such context as of the date this act becomes a law, any

11  amount, if any, imposed thereafter, shall not be less than

12  $500 per linear mile, payable annually, of any cable, fiber

13  optic, or other pathway that makes physical use of the

14  municipal or county right-of-way.  Any excess of $500 shall be

15  applied in a nondiscriminatory manner and shall not exceed the

16  sum of:

17         (a)  Costs directly related to the inconvenience or

18  impairment solely caused by the disturbance to the municipal

19  or county right-of-way;

20         (b)  The reasonable cost of the regulatory activity of

21  the municipality or county; and

22         (c)  The proportionate share of cost of land for such

23  street, alley, or other public way attributable to utilization

24  of the right-of-way by a person or entity other than a

25  provider of communications services.

26

27  For purposes of this subsection, the term communications

28  facility shall not include communications facilities owned,

29  operated, or used by electric utilities or regional

30  transmission organizations exclusively for internal

31  communications purposes. Except as specifically provided

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  1  herein, municipalities and counties retain all existing

  2  authority, if any, to collect fees relating to public roads

  3  and rights-of-way from electric utilities or regional

  4  transmission organizations, and nothing in this subsection

  5  shall alter this authority.

  6         Section 8.  Effective with respect to bills issued by

  7  providers of mobile telecommunications services after August

  8  1, 2002, subsections (8) and (9) of section 365.172, Florida

  9  Statutes, are amended to read:

10         365.172  Wireless emergency telephone number "E911."--

11         (8)  WIRELESS E911 FEE.--

12         (a)  Each home service provider shall collect a monthly

13  fee imposed on each customer whose place of primary use is

14  service subscriber who has a service number that has a billing

15  address within this state. The rate of the fee shall be 50

16  cents per month per each service number, beginning August 1,

17  1999. The fee shall apply uniformly and be imposed throughout

18  the state.

19         (b)  The fee is established to ensure full recovery for

20  providers and for counties, over a reasonable period, of the

21  costs associated with developing and maintaining an E911

22  system on a technologically and competitively neutral basis.

23         (c)  After July 1, 2001, the board may adjust the

24  allocation percentages provided in s. 365.173 or reduce the

25  amount of the fee, or both, if necessary to ensure full cost

26  recovery or prevent overrecovery of costs incurred in the

27  provision of E911 service, including costs incurred or

28  projected to be incurred to comply with the order. Any new

29  allocation percentages or reduced fee may not be adjusted for

30  2 years. The fee may not exceed 50 cents per month per each

31  service number.

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  1         (d)  State and local taxes do not apply to the fee.

  2         (e)  A local government may not levy any additional fee

  3  on wireless providers or subscribers for the provision of E911

  4  service.

  5         (9)  MANAGEMENT OF FUNDS.--

  6         (a)  Each provider, as a part of its monthly billing

  7  process, shall collect the fee imposed under subsection (8).

  8  The provider may list the fee as a separate entry on each

  9  bill, in which case the fee must be identified as a fee for

10  E911 services. A provider shall remit the fee only if the fee

11  is paid by the subscriber. If a provider receives a partial

12  payment for a monthly bill from a subscriber, the amount

13  received shall first be applied to the payment due the

14  provider for the provision of telecommunications service.

15         (b)  A provider is not obligated to take any legal

16  action to enforce collection of the fees for which any

17  subscriber is billed. The provider shall provide to the board

18  each quarter a list of the names, addresses, and service

19  numbers of all subscribers who have indicated to the provider

20  their refusal to pay the fee.

21         (c)  Each provider may retain 1 percent of the amount

22  of the fees collected as reimbursement for the administrative

23  costs incurred by the provider to bill, collect, and remit the

24  fee. The remainder shall be delivered to the board and

25  deposited in the fund. The board shall distribute the

26  remainder pursuant to s. 365.173.

27         (d)  Each provider shall deliver revenues from the fee

28  to the board within 60 days after the end of the month in

29  which the fee was billed, together with a monthly report of

30  the number of billing addresses of wireless customers whose

31  place of primary use is subscribers in each county. A provider

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  1  may apply to the board for a refund of, or may take a credit

  2  for, any fees remitted to the board which are not collected by

  3  the provider within 6 months following the month in which the

  4  fees are charged off for federal income tax purposes as bad

  5  debt. The board may waive the requirement that the fees and

  6  number of customers whose place of primary use is in each

  7  county billing addresses be submitted to the board each month,

  8  and authorize a provider to submit the fees and number of

  9  customers billing addresses quarterly if the provider

10  demonstrates that such waiver is necessary and justified.

11         (e)  For purposes of this section, the definitions

12  contained in s. 202.11 and the provisions of s. 202.155 apply

13  in the same manner and to the same extent as such definitions

14  and provisions apply to the taxes levied pursuant to chapter

15  202 on mobile communications services.

16         (f)(e)  As used is this subsection, the term "provider"

17  includes any person or entity that resells wireless service

18  and was not assessed the fee by its resale supplier.

19         Section 9.  Subsection (4) of section 212.0501, Florida

20  Statutes, is amended to read:

21         212.0501  Tax on diesel fuel for business purposes;

22  purchase, storage, and use.--

23         (4)  Except as otherwise provided in s. 212.05(1)(k) s.

24  212.05(1)(l), a licensed sales tax dealer may elect to collect

25  such tax pursuant to this chapter on all sales to each person

26  who purchases diesel fuel for consumption, use, or storage by

27  a trade or business.  When the licensed sales tax dealer has

28  not elected to collect such tax on all such sales, the

29  purchaser or ultimate consumer shall be liable for the payment

30  of tax directly to the state.

31

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  1         Section 10.  Paragraph (v) of subsection (7) of section

  2  212.08, Florida Statutes, is amended to read:

  3         212.08  Sales, rental, use, consumption, distribution,

  4  and storage tax; specified exemptions.--The sale at retail,

  5  the rental, the use, the consumption, the distribution, and

  6  the storage to be used or consumed in this state of the

  7  following are hereby specifically exempt from the tax imposed

  8  by this chapter.

  9         (7)  MISCELLANEOUS EXEMPTIONS.--

10         (v)  Professional services.--

11         1.  Also exempted are professional, insurance, or

12  personal service transactions that involve sales as

13  inconsequential elements for which no separate charges are

14  made.

15         2.  The personal service transactions exempted pursuant

16  to subparagraph 1. do not exempt the sale of information

17  services involving the furnishing of printed, mimeographed, or

18  multigraphed matter, or matter duplicating written or printed

19  matter in any other manner, other than professional services

20  and services of employees, agents, or other persons acting in

21  a representative or fiduciary capacity or information services

22  furnished to newspapers and radio and television stations.  As

23  used in this subparagraph, the term "information services"

24  includes the services of collecting, compiling, or analyzing

25  information of any kind or nature and furnishing reports

26  thereof to other persons.

27         3.  This exemption does not apply to any service

28  warranty transaction taxable under s. 212.0506.

29         4.  This exemption does not apply to any service

30  transaction taxable under s. 212.05(1)(i) s. 212.05(1)(j).

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  1  Exemptions provided to any entity by this subsection shall not

  2  inure to any transaction otherwise taxable under this chapter

  3  when payment is made by a representative or employee of such

  4  entity by any means, including, but not limited to, cash,

  5  check, or credit card even when that representative or

  6  employee is subsequently reimbursed by such entity.

  7         Section 11.  Paragraph (c) of subsection (6) of section

  8  212.20, Florida Statutes, is amended to read:

  9         212.20  Funds collected, disposition; additional powers

10  of department; operational expense; refund of taxes

11  adjudicated unconstitutionally collected.--

12         (6)  Distribution of all proceeds under this chapter

13  and s. 202.18(1)(b) and (2)(b) shall be as follows:

14         (c)  Proceeds from the fees imposed under ss.

15  212.05(1)(h)3. 212.05(1)(i)3. and 212.18(3) shall remain with

16  the General Revenue Fund.

17         Section 12.  Paragraph (f) of subsection (2) of section

18  509.032, Florida Statutes, is amended to read:

19         509.032  Duties.--

20         (2)  INSPECTION OF PREMISES.--

21         (f)  In conducting inspections of establishments

22  licensed under this chapter, the division shall determine if

23  each coin-operated amusement machine that is operated on the

24  premises of a licensed establishment is properly registered

25  with the Department of Revenue.  Each month the division shall

26  report to the Department of Revenue the sales tax registration

27  number of the operator of any licensed establishment that has

28  on location a coin-operated amusement machine and that does

29  not have an identifying certificate conspicuously displayed as

30  required by s. 212.05(1)(h) s. 212.05(1)(i).

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  1         Section 13.  Section 561.1105, Florida Statutes, is

  2  amended to read:

  3         561.1105  Inspection of licensed premises;

  4  coin-operated amusement machines.--In conducting inspections

  5  of establishments licensed under the Beverage Law, the

  6  division shall determine if each coin-operated amusement

  7  machine that is operated on the licensed premises is properly

  8  registered with the Department of Revenue. Each month, the

  9  division shall report to the Department of Revenue the sales

10  tax registration number of the operator of any licensed

11  premises that has on location a coin-operated amusement

12  machine and that does not have an identifying certificate

13  conspicuously displayed as required by s. 212.05(1)(h) s.

14  212.05(1)(i).

15         Section 14.  The amendments to sections 202.125(4),

16  202.22(2)(b) and (3)(a) and (g), and 212.05(1)(g), Florida

17  Statutes, contained in this act are remedial in nature and

18  intended to clarify the law in effect on the effective date of

19  this act.

20         Section 15.  Except as otherwise expressly provided in

21  this act, this act shall take effect upon becoming a law.

22

23          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
24                            CS/SB 1610

25

26  The Committee Substitute for CS/SB 1610 authorizes
    municipalities and counties to impose charges on pass-through
27  providers.  These charges are capped at $500 per linear mile
    per year, but existing agreements are allowed to continue
28  until October 1, 2005.

29

30

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