| 1 | The Committee on Business Regulation recommends the following: |
| 2 |
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| 3 | Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to the tax on substitute communications |
| 7 | systems; amending s. 202.11, F.S.; deleting certain |
| 8 | definitions; amending s. 202.12, F.S.; deleting a |
| 9 | provision relating to the manner in which the tax on gross |
| 10 | receipts for communications services is applied to a |
| 11 | substitute communications system; amending ss. 202.16, |
| 12 | 202.17, and 202.18, F.S.; correcting cross references; |
| 13 | amending s. 202.19, F.S.; deleting a provision authorizing |
| 14 | the imposition of a local communications services tax on |
| 15 | substitute communications systems; amending s. 203.01, |
| 16 | F.S.; deleting a provision authorizing the imposition of a |
| 17 | gross receipts tax on actual costs of operating substitute |
| 18 | communications systems; specifying that retroactive |
| 19 | operation is remedial and does not create any right to or |
| 20 | require any refunds; repealing s. 202.15, F.S., relating |
| 21 | to special rules for users of substitute communications |
| 22 | systems; providing for retroactive operation; providing an |
| 23 | effective date. |
| 24 |
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| 25 | Be It Enacted by the Legislature of the State of Florida: |
| 26 |
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| 27 | Section 1. Subsections (2) through (15) of section 202.11, |
| 28 | Florida Statutes, are renumbered as subsections (1) through |
| 29 | (14), respectively, subsections (17) through (25) of said |
| 30 | section are renumbered as subsections (15) through (23), |
| 31 | respectively, and present subsections (1) and (16) of said |
| 32 | section are amended to read: |
| 33 | 202.11 Definitions.--As used in this chapter: |
| 34 | (1) "Actual cost of operating a substitute communications |
| 35 | system" includes, but is not limited to, depreciation, interest, |
| 36 | maintenance, repair, and other expenses directly attributable to |
| 37 | the operation of such system. For purposes of this chapter, the |
| 38 | depreciation expense included in actual cost is the depreciation |
| 39 | expense claimed for federal income tax purposes. The total |
| 40 | amount of any payment required by a lease or rental contract or |
| 41 | agreement must be included within the actual cost of operating |
| 42 | the substitute communications system. |
| 43 | (16) "Substitute communications system" means any |
| 44 | telephone system, or other system capable of providing |
| 45 | communications services, which a person purchases, installs, |
| 46 | rents, or leases for his or her own use to provide himself or |
| 47 | herself with services used as a substitute for any switched |
| 48 | service or dedicated facility by which a dealer of |
| 49 | communications services provides a communication path. |
| 50 | Section 2. Paragraphs (c), (d), and (e) of subsection (1) |
| 51 | of section 202.12, Florida Statutes, are redesignated as |
| 52 | paragraphs (b), (c), and (d), respectively, and present |
| 53 | paragraph (b) of subsection (1) of said section is amended to |
| 54 | read: |
| 55 | 202.12 Sales of communications services.--The Legislature |
| 56 | finds that every person who engages in the business of selling |
| 57 | communications services at retail in this state is exercising a |
| 58 | taxable privilege. It is the intent of the Legislature that the |
| 59 | tax imposed by chapter 203 be administered as provided in this |
| 60 | chapter. |
| 61 | (1) For the exercise of such privilege, a tax is levied on |
| 62 | each taxable transaction, and the tax is due and payable as |
| 63 | follows: |
| 64 | (b) At the rate set forth in paragraph (a) on the actual |
| 65 | cost of operating a substitute communications system, to be paid |
| 66 | in accordance with s. 202.15. This paragraph does not apply to |
| 67 | the use by any dealer of his or her own communications system to |
| 68 | conduct a business of providing communications services or any |
| 69 | communications system operated by a county, a municipality, the |
| 70 | state, or any political subdivision of the state. The gross |
| 71 | receipts tax imposed by chapter 203 shall be applied to the same |
| 72 | costs, and remitted with the tax imposed by this paragraph. |
| 73 | Section 3. Paragraph (a) of subsection (1) of section |
| 74 | 202.16, Florida Statutes, is amended to read: |
| 75 | 202.16 Payment.--The taxes imposed or administered under |
| 76 | this chapter and chapter 203 shall be collected from all dealers |
| 77 | of taxable communications services on the sale at retail in this |
| 78 | state of communications services taxable under this chapter and |
| 79 | chapter 203. The full amount of the taxes on a credit sale, |
| 80 | installment sale, or sale made on any kind of deferred payment |
| 81 | plan is due at the moment of the transaction in the same manner |
| 82 | as a cash sale. |
| 83 | (1)(a) Except as otherwise provided in ss. 202.12(1)(b) |
| 84 | and 202.15, The taxes collected under this chapter and chapter |
| 85 | 203 shall be paid by the purchaser of the communications service |
| 86 | and shall be collected from such person by the dealer of |
| 87 | communications services. |
| 88 | Section 4. Subsection (6) of section 202.17, Florida |
| 89 | Statutes, is amended to read: |
| 90 | 202.17 Registration.-- |
| 91 | (6) In addition to the certificate of registration, the |
| 92 | department shall provide to each newly registered dealer an |
| 93 | initial resale certificate that is valid for the remainder of |
| 94 | the period of issuance. The department shall provide to each |
| 95 | active dealer, except persons registered pursuant to s. 202.15, |
| 96 | an annual resale certificate. As used in this section, the term |
| 97 | "active dealer" means a person who is registered with the |
| 98 | department and who is required to file a return at least once |
| 99 | during each applicable reporting period. |
| 100 | Section 5. Subsection (1) of section 202.18, Florida |
| 101 | Statutes, is amended to read: |
| 102 | 202.18 Allocation and disposition of tax proceeds.--The |
| 103 | proceeds of the communications services taxes remitted under |
| 104 | this chapter shall be treated as follows: |
| 105 | (1) The proceeds of the taxes remitted under s. |
| 106 | 202.12(1)(a) and(b) shall be divided as follows: |
| 107 | (a) The portion of such proceeds which constitutes gross |
| 108 | receipts taxes, imposed at the rate prescribed in chapter 203, |
| 109 | shall be deposited as provided by law and in accordance with s. |
| 110 | 9, Art. XII of the State Constitution. |
| 111 | (b) The remaining portion shall be distributed according |
| 112 | to s. 212.20(6). |
| 113 | Section 6. Subsections (8) through (12) of section 202.19, |
| 114 | Florida Statutes, are renumbered as subsections (7) through |
| 115 | (11), respectively, and present subsection (7) of said section |
| 116 | is amended to read: |
| 117 | 202.19 Authorization to impose local communications |
| 118 | services tax.-- |
| 119 | (7) Any tax imposed by a municipality, school board, or |
| 120 | county under this section also applies to the actual cost of |
| 121 | operating a substitute communications system, to be paid in |
| 122 | accordance with s. 202.15. This subsection does not apply to the |
| 123 | use by any provider of its own communications system to conduct |
| 124 | a business of providing communications services or to the use of |
| 125 | any communications system operated by a county, a municipality, |
| 126 | the state, or any political subdivision of the state. |
| 127 | Section 7. Paragraph (a) of subsection (1) of section |
| 128 | 203.01, Florida Statutes, is amended to read: |
| 129 | 203.01 Tax on gross receipts for utility and |
| 130 | communications services.-- |
| 131 | (1)(a)1. Every person that receives payment for any |
| 132 | utility service shall report by the last day of each month to |
| 133 | the Department of Revenue, under oath of the secretary or some |
| 134 | other officer of such person, the total amount of gross receipts |
| 135 | derived from business done within this state, or between points |
| 136 | within this state, for the preceding month and, at the same |
| 137 | time, shall pay into the State Treasury an amount equal to a |
| 138 | percentage of such gross receipts at the rate set forth in |
| 139 | paragraph (b). Such collections shall be certified by the Chief |
| 140 | Financial Officer upon the request of the State Board of |
| 141 | Education. |
| 142 | 2. A tax is levied on communications services as defined |
| 143 | in s. 202.11(3). Such tax shall be applied to the same services |
| 144 | and transactions as are subject to taxation under chapter 202, |
| 145 | and to communications services that are subject to the exemption |
| 146 | provided in s. 202.125(1). Such tax shall be applied to the |
| 147 | sales price of communications services when sold at retail and |
| 148 | to the actual cost of operating substitute communications |
| 149 | systems, as such terms are defined in s. 202.11, shall be due |
| 150 | and payable at the same time as the taxes imposed pursuant to |
| 151 | chapter 202, and shall be administered and collected pursuant to |
| 152 | the provisions of chapter 202. |
| 153 | Section 8. The retroactive application of the provisions |
| 154 | of this act are remedial in nature and shall not be construed to |
| 155 | create a right to a refund or to require a refund by any |
| 156 | governmental entity of any tax, penalty, or interest remitted to |
| 157 | the Department of Revenue on substitute communications systems |
| 158 | prior to the effective date of this act. |
| 159 | Section 9. Section 202.15, Florida Statutes, is repealed. |
| 160 | Section 10. This act shall take effect upon becoming a law |
| 161 | and shall apply retroactively to October 1, 2001. |