HB 0637 2004
1	A bill to be entitled
2	An act relating to the tax on gross receipts for utility
3	and communications services; providing for an amnesty for
4	unpaid gross receipts taxes, penalties, and interest on
5	unpaid gross receipts taxes relating to the sale or
6	transportation of natural gas under certain circumstances;
7	providing exceptions; providing for adoption of emergency
8	rules by the Department of Revenue; providing for period
9	of effect of such rules; amending s. 203.01, F.S.;
10	applying provisions imposing a tax on gross receipts for
11	utility services to sales, transportation, or delivery of
12	natural or manufactured gas or electricity for heat,
13	light, or power; specifying imposition of the tax;
14	providing for determining the amount of the tax; providing
15	limitations and exceptions; providing for registration and
16	payment of the tax by certain persons bringing electricity
17	into this state under certain circumstances; exempting
18	certain transactions or uses from the tax; amending s.
19	203.012, F.S.; providing a definition; providing for
20	adoption of emergency rules by the Department of Revenue
21	for certain purposes; providing for period of effect of
22	such rules; providing for renewal under certain
23	circumstances; providing effective dates.
24
25	Be It Enacted by the Legislature of the State of Florida:
26
27	Section 1. Amnesty for registration and remittance of
28	gross receipts taxes.--
29	(1) The state shall provide an amnesty for unpaid gross
30	receipts taxes, penalties, and interest on unpaid gross receipts
31	taxes that may otherwise be due from the sale or transportation
32	of natural gas for consumption in this state if:
33	(a) The sales subject to amnesty were made prior to July
34	1, 2004.
35	(b) The gross receipts at issue were derived from one of
36	the following:
37	1. Sales by persons who are not regulated pursuant to
38	chapter 366, Florida Statutes;
39	2. Sales for which the written sales agreement provides
40	for transfer of title to the gas outside the state;
41	3. Sales of transportation services associated with the
42	sales of gas; or
43	4. Sales to persons eligible for the exemption under s.
44	212.08(7)(ff), Florida Statutes.
45	(c) The seller registered with the Department of Revenue
46	to pay the gross receipts tax on or before July 1, 2004.
47	(d) The seller applies for amnesty by October 1, 2004, in
48	accordance with the rules of the Department of Revenue.
49	(2) The amnesty is not available for:
50	(a) Any tax, penalty, or interest that has been assessed
51	if the assessment is final and has not been timely challenged,
52	or for any tax, penalty, or interest that has been previously
53	paid to the department unless the payment is the subject of an
54	assessment that is not final or that has been timely challenged.
55	(b) Any tax billed to or collected by the seller as an
56	itemized charge to customers.
57	(3) The executive director of the Department of Revenue
58	may adopt emergency rules under ss. 120.536(1) and 120.54(4),
59	Florida Statutes, to implement the amnesty. Such rules may
60	provide forms and procedures for applying for the amnesty; for
61	reporting the sales for which the amnesty is sought; and for
62	ensuring the applicant’s ongoing commitment to registration,
63	collection, and remittance of the state’s gross receipts tax.
64	Notwithstanding any other provision of law, the emergency rules
65	shall remain effective until the later of the date that is 6
66	months after the date of adoption of the rule or the date of
67	final resolution of all amnesty applications filed pursuant to
68	this section.
69	(4) This section shall take effect July 1, 2004.
70	Section 2. Subsections (1) and (3) of section 203.01,
71	Florida Statutes, are amended to read:
72	203.01 Tax on gross receipts for natural or manufactured
73	gas or electricity for light, heat, or power utilityand
74	communications services.--
75	(1)(a)1. Every person that receives payment for any
76	natural or manufactured gas for light, heat, or power utility
77	serviceshall report by the last day of each month to the
78	Department of Revenue, under oath of the secretary or some other
79	officer of such person, the total amount of gross receipts
80	derived from business done within this state, or between points
81	within this state, for the preceding month and, at the same
82	time, shall pay into the State Treasury an amount equal to a
83	percentage of such gross receipts at the rate set forth in
84	paragraph (b). Such collections shall be certified by the Chief
85	Financial Officer upon the request of the State Board of
86	Education.
87	2. A tax is levied on communications services as defined
88	in s. 202.11(3). Such tax shall be applied to the same services
89	and transactions as are subject to taxation under chapter 202,
90	and to communications services that are subject to the exemption
91	provided in s. 202.125(1). Such tax shall be applied to the
92	sales price of communications services when sold at retail and
93	to the actual cost of operating substitute communications
94	systems, as such terms are defined in s. 202.11, shall be due
95	and payable at the same time as the taxes imposed pursuant to
96	chapter 202, and shall be administered and collected pursuant to
97	the provisions of chapter 202.
98	3. A tax is levied upon payments received for electricity
99	for light, heat, or power that is delivered to a retail consumer
100	in this state. Such tax shall be levied as provided in paragraphs
101	(b)-(i).
102	(b) The rate applied to utility service as described in
103	subparagraph (a)1. or subparagraph (a)3. servicesshall be 2.5
104	percent. The rate applied to communications services shall be
105	2.37 percent.
106	(c) The tax on electricity for light, heat, or power shall
107	be levied against the total amount of gross receipts received by
108	a distribution company for sales of such electricity delivered to
109	the final consumer by the distribution company for which the
110	final consumer pays the distribution company an amount which
111	includes a charge for both the electricity and the transportation
112	of electricity to the consumer. The distribution company shall
113	report and remit to the Department of Revenue by the last day of
114	each month the taxes levied pursuant to this paragraph during the
115	preceding month.
116	(d)1. Each distribution company that receives payment for
117	the delivery of electricity to a retail consumer in this state is
118	subject to a tax on the exercise of the privilege as provided by
119	this paragraph unless the payment is subject to tax under
120	paragraph (c). For the exercise of this privilege, the tax levied
121	on such distribution company's receipts for the delivery of
122	electricity shall be determined by multiplying the number of
123	kilowatt hours delivered by the index price and applying the rate
124	in paragraph (b) to the result.
125	2. The index price is the price per kilowatt hour in this
126	state for residential, commercial, or industrial retail
127	consumers, as applicable, in the previous calendar year, as
128	published in the United States Energy Information Administration
129	Electric Power Monthly and announced by the Department of Revenue
130	on June 1 of each year to be effective for the 12-month period
131	beginning July 1 of that year.
132	3. Tax due under this paragraph shall be administered,
133	paid, and reported in the same manner as the tax due under
134	paragraph (c).
135	4. The amount of tax due under this paragraph shall be
136	reduced by the amount of any gross receipts tax or similar tax
137	lawfully imposed on and paid by the person from whom the consumer
138	purchased the electricity, whether imposed by and paid to this
139	state, another state, a territory of the United States, or the
140	District of Columbia. This reduction must be reflected in a
141	reduction to any gross receipts tax passed on to the final retail
142	consumer as a separately stated charge and does not inure to the
143	benefit of the person who receives payment for the delivery of
144	the electricity. The methods of demonstrating proof of payment
145	and the amount of such reduction in tax shall be made according
146	to rules of the Department of Revenue.
147	(e) Any person who imports into this state electricity for
148	that person's own use or consumption as a substitute for
149	purchasing electricity, transportation, or delivery services
150	taxable under this chapter and who cannot demonstrate payment of
151	the tax imposed by this chapter must register with the Department
152	of Revenue and pay into the State Treasury each month an amount
153	equal to the cost price of such electricity times the rate set
154	forth in paragraph (b), reduced by the amount of any gross
155	receipts tax or similar tax lawfully imposed on and paid by the
156	person from whom the electricity was purchased or any person who
157	provided delivery service or transportation service in connection
158	with the electricity. For purposes of this paragraph, the term
159	"cost price" has the same meaning as provided in s. 212.02(4).
160	The methods of demonstrating proof of payment and the amount of
161	such reductions in tax shall be made according to rules of the
162	Department of Revenue.
163	(f)(c)Electricity produced by cogeneration or by small
164	power producers which is transmitted and distributed by a public
165	utility between two locations of a customer of the utility
166	pursuant to s. 366.051 is subject to the tax imposed by this
167	section. The tax shall be applied to the cost price of such
168	electricity as provided in s. 212.02(4) and shall be paid each
169	month by the producer of such electricity.
170	(g)(d)Electricity produced by cogeneration or by small
171	power producers during the 12-month period ending June 30 of
172	each year which is in excess of nontaxable electricity produced
173	during the 12-month period ending June 30, 1990, is subject to
174	the tax imposed by this section. The tax shall be applied to the
175	cost price of such electricity as provided in s. 212.02(4) and
176	shall be paid each month, beginning with the month in which
177	total production exceeds the production of nontaxable
178	electricity for the 12-month period ending June 30, 1990. For
179	purposes of this paragraph, "nontaxable electricity" means
180	electricity produced by cogeneration or by small power producers
181	which is not subject to tax under paragraph (f)(c). Taxes paid
182	pursuant to paragraph (f)(c)may be credited against taxes due
183	under this paragraph. Electricity generated as part of an
184	industrial manufacturing process which manufactures products
185	from phosphate rock, raw wood fiber, paper, citrus, or any
186	agricultural product shall not be subject to the tax imposed by
187	this paragraph. "Industrial manufacturing process" means the
188	entire process conducted at the location where the process takes
189	place.
190	(h)(e)Any person other than a cogenerator or small power
191	producer described in paragraph (g)(d)who produces for his or
192	her own use electrical energy which is a substitute for
193	electrical energy produced by an electric utility as defined in
194	s. 366.02 is subject to the tax imposed by this section. The tax
195	shall be applied to the cost price of such electrical energy as
196	provided in s. 212.02(4) and shall be paid each month. The
197	provisions of this paragraph do not apply to any electrical
198	energy produced and used by an electric utility.
199	(i)(f)Notwithstanding any other provision of this
200	chapter, with the exception of a communications services dealer
201	reporting taxes administered under chapter 202 telephone or
202	telecommunication system described in paragraph (c), the
203	department may require:
204	1. A quarterly return and payment when the tax remitted
205	for the preceding four calendar quarters did not exceed $1,000;
206	2. A semiannual return and payment when the tax remitted
207	for the preceding four calendar quarters did not exceed $500; or
208	3. An annual return and payment when the tax remitted for
209	the preceding four calendar quarters did not exceed $100.
210	(3) The tax imposed by subsection (1) does not apply to
211	term "gross receipts" as used herein does not include gross
212	receipts of any person derived from:
213	(a)1. The sale or transportationof natural gas or
214	manufactured gas to a public or private utility, including a
215	municipal corporation or rural electric cooperative association,
216	either for resale or for use as fuel in the generation of
217	electricity; or
218	2.(b) The sale or deliveryof electricity to a public or
219	private utility, including a municipal corporation or rural
220	electric cooperative association, for resale within the state,
221	or as part of an electrical interchange agreement or contract
222	between such utilities for the purpose of transferring more
223	economically generated power;
224
225	provided the person deriving gross receipts from such sale
226	demonstrates that a sale or transportation or delivery for
227	resale in fact occurred and complies with the following
228	requirements: A sale or transportation or delivery for resale in
229	this statemust be in strict compliance with the rules and
230	regulations of the Department of Revenue; and any sale subject
231	to the tax imposed by this section person making a sale for
232	resale in this statewhich is not in strict compliance with the
233	rules and regulations of the Department of Revenue shall be
234	subject to liable for and pay the tax at the appropriate rate
235	imposed by paragraph (1)(b) on the person making the sale. Any
236	person making a sale for resale in this statemay, through an
237	informal protest provided for in s. 213.21 and the rules of the
238	Department of Revenue, provide the department with evidence of
239	the exempt status of a sale. The department shall adopt rules
240	which provide that valid proof and documentation of the resale
241	in this stateby a person making the sale for resale in this
242	state will be accepted by the department when submitted during
243	the protest period but will not be accepted when submitted in
244	any proceeding under chapter 120 or any circuit court action
245	instituted under chapter 72.
246	(b) Wholesale sales of electric transmission service.
247	(c) The use of natural gas in the production of oil or gas,
248	or the use of natural or manufactured gas by a person
249	transporting natural or manufactured gas, when used and consumed
250	in providing such services.
251	(d) The sale or transportation to, or use of, natural gas
252	or manufactured gas by a person eligible for an exemption under
253	s. 212.08(7)(ff) for use as an energy source or a raw material.
254
255	Nothing in this subsection is intended to imply that tax is due
256	on separately stated charges for transportation of natural or
257	manufactured gas.
258	Section 3. Subsection (3) is added to section 203.012,
259	Florida Statutes, to read:
260	203.012 Definitions.--As used in this chapter:
261	(3) "Distribution company" means any person owning or
262	operating local electric utility distribution facilities within
263	this state for the distribution of electricity to the final
264	retail consumer.
265	Section 4. The executive director of the Department of
266	Revenue is authorized, and all necessary conditions are deemed
267	met, to adopt emergency rules under ss. 120.536(1) and 120.54(4),
268	Florida Statutes, to implement the provisions of s. 203.01,
269	Florida Statutes. Such rules shall include forms the department
270	determines necessary or appropriate to register, apply for self-
271	accrual authority, report, and remit taxes, or apply for credits.
272	Notwithstanding any other provision of law, such emergency rules
273	shall remain effective for 6 months after the date of adoption
274	and may be renewed during the pendency of procedures to adopt
275	rules addressing the subject of the emergency rules.
276	Section 5. Except as otherwise provided herein, this act
277	shall take effect January 1, 2005.