HB 0433CS

CHAMBER ACTION



1The Utilities & Telecommunications Committee recommends the
2following:
3
4     Council/Committee Substitute
5     Remove the entire bill and insert:
6
A bill to be entitled
7An act relating to the tax on gross receipts for utility
8services; amending s. 203.01, F.S.; providing for a tax on
9utility services delivered to a retail consumer in this
10state; providing for a tax on the gross receipts of a
11distribution company providing delivery of electricity to
12a retail consumer, based on an index price; providing for
13an annual calculation of the index price; providing for a
14tax reduction by refund for similar taxes paid to another
15jurisdiction; providing for a tax on the gross receipts of
16a distribution company providing for the sale or
17transportation of natural gas or manufactured gas to a
18retail consumer, based on an index price; providing for an
19annual calculation of the index price; providing for a tax
20reduction by refund for similar taxes paid to another
21jurisdiction; providing for a tax on the cost price of
22electricity, natural gas, or manufactured gas to be paid
23by any person who causes these products to be severed or
24imported into the state for that person's own use;
25revising obsolete provisions; providing that the tax does
26not apply to certain sales, transportation, delivery, or
27uses; amending s. 203.012, F.S.; redefining the term
28"utility service"; defining the term "distribution
29company"; authorizing the executive director of the
30Department of Revenue to adopt emergency rules to
31implement the act; providing an amnesty for unpaid gross
32receipts tax, penalties, and interest on unpaid gross
33receipts tax otherwise due for selling natural gas in this
34state; providing conditions for the amnesty; providing
35limitations for the amnesty; authorizing the executive
36director of the Department of Revenue to adopt emergency
37rules to implement the amnesty; providing an effective
38date.
39
40Be It Enacted by the Legislature of the State of Florida:
41
42     Section 1.  Subsections (1) and (3) of section 203.01,
43Florida Statutes, are amended to read:
44     203.01  Tax on gross receipts for utility and
45communications services.--
46     (1)(a)1.  A tax is imposed on gross receipts from utility
47services that are delivered to a retail consumer in this state.
48Such tax shall be levied as provided in paragraphs (b)-(j) Every
49person that receives payment for any utility service shall
50report by the last day of each month to the Department of
51Revenue, under oath of the secretary or some other officer of
52such person, the total amount of gross receipts derived from
53business done within this state, or between points within this
54state, for the preceding month and, at the same time, shall pay
55into the State Treasury an amount equal to a percentage of such
56gross receipts at the rate set forth in paragraph (b). Such
57collections shall be certified by the Chief Financial Officer
58upon the request of the State Board of Education.
59     2.  A tax is levied on communications services as defined
60in s. 202.11(3). Such tax shall be applied to the same services
61and transactions as are subject to taxation under chapter 202,
62and to communications services that are subject to the exemption
63provided in s. 202.125(1). Such tax shall be applied to the
64sales price of communications services when sold at retail and
65to the actual cost of operating substitute communications
66systems, as such terms are defined in s. 202.11, shall be due
67and payable at the same time as the taxes imposed pursuant to
68chapter 202, and shall be administered and collected pursuant to
69the provisions of chapter 202.
70     (b)  The rate applied to utility services shall be 2.5
71percent. The rate applied to communications services shall be
722.37 percent.
73     (c)  The tax shall be levied against the total amount of
74gross receipts received by a distribution company for its sale
75of utility services if the utility service is delivered to the
76retail consumer by a distribution company and the retail
77consumer pays the distribution company a charge for utility
78service which includes a charge for both the electricity and the
79transportation of electricity to the retail consumer. The
80distribution company shall report and remit to the Department of
81Revenue by the last day of each month the taxes levied pursuant
82to this paragraph during the preceding month.
83     (d)1.  Each distribution company that receives payment for
84the delivery of electricity to a retail consumer in this state
85is subject to tax on the exercise of this privilege as provided
86by this paragraph unless the payment is subject to tax under
87paragraph (c). For the exercise of this privilege, the tax
88levied on such distribution company's receipts for the delivery
89of electricity shall be determined by multiplying the number of
90kilowatt hours delivered by the index price and applying the
91rate in paragraph (b) to the result.
92     2.  The index price is the Florida price per kilowatt hour
93for retail consumers in the previous calendar year, as published
94in the United States Energy Information Administration Electric
95Power Monthly and announced by the Department of Revenue on June
961 of each year to be effective for the 12-month period beginning
97July 1 of that year. For each customer class residential,
98commercial, and industrial, the applicable index posted for
99residential, commercial, and industrial will be applied in
100calculating the gross receipts to which the tax applies. If
101publication of the indices is delayed or discontinued, the last
102posted index shall be used until a current index is posted or
103the department adopts a comparable index by rule.
104     3.  Tax due under this paragraph shall be administered,
105paid, and reported in the same manner as the tax due under
106paragraph (c).
107     4.  The amount of tax due under this paragraph shall be
108reduced by the amount of any gross receipts tax or similar tax
109lawfully imposed on and paid by the person from whom the retail
110consumer purchased the electricity, whether imposed by and paid
111to this state, another state, a territory of the United States,
112or the District of Columbia. This reduction in any gross
113receipts tax shall be available to the retail consumer as a
114refund made pursuant to s. 215.26 and does not inure to the
115benefit of the person who receives payment for the delivery of
116the electricity. The methods of demonstrating proof of payment
117and the amount of such refund shall be made according to rules
118of the Department of Revenue.
119     (e)1.  Every distribution company that receives payment for
120the sale or transportation of natural or manufactured gas to a
121retail consumer in this state is subject to tax on the exercise
122of this privilege as provided by this paragraph. For the
123exercise of this privilege, the tax levied on such distribution
124company's receipts for the sale or transportation of natural or
125manufactured gas shall be determined by dividing the number of
126cubic feet delivered by 1,000, multiplying the resulting number
127by the index price, and applying the rate in paragraph (b) to
128the result.
129     2.  The index price is the Florida price per 1,000 cubic
130feet for retail consumers in the previous calendar year as
131published in the United States Energy Information Administration
132Natural Gas Monthly and announced by the Department of Revenue
133on June 1 of each year to be effective for the 12-month period
134beginning July 1 of that year. For each customer class
135residential, commercial, and industrial, the applicable index
136posted for residential, commercial, and industrial will be
137applied in calculating the gross receipts to which the tax
138applies. If publication of the indices is delayed or
139discontinued, the last posted index shall be used until a
140current index is posted or the department adopts a comparable
141index by rule.
142     3.  Tax due under this paragraph shall be administered,
143paid, and reported in the same manner as the tax due under
144paragraph (c).
145     4.  The amount of tax due under this paragraph shall be
146reduced by the amount of any gross receipts tax or similar tax
147lawfully imposed on and paid by the person from whom the retail
148consumer purchased the natural gas or manufactured gas, whether
149imposed by and paid to this state, another state, a territory of
150the United States, or the District of Columbia. This reduction
151in any gross receipts tax shall be available to the retail
152consumer as a refund pursuant to s. 215.26 and does not inure to
153the benefit of the person providing the transportation service.
154The methods of demonstrating proof of payment and the amount of
155such refund shall be made according to rules of the Department
156of Revenue.
157     (f)  Any person who imports into this state electricity,
158natural gas, or manufactured gas, or severs natural gas, for
159that person's own use or consumption as a substitute for
160purchasing utility, transportation, or delivery services taxable
161under this chapter and who cannot demonstrate payment of the tax
162imposed by this chapter must register with the Department of
163Revenue and pay into the State Treasury each month an amount
164equal to the cost price of such electricity, natural gas, or
165manufactured gas times the rate set forth in paragraph (b),
166reduced by the amount of any gross receipts tax or similar tax
167lawfully imposed on and paid by the person from whom the
168electricity, natural gas, or manufactured gas was purchased or
169any person who provided delivery service or transportation
170service in connection with the electricity, natural gas, or
171manufactured gas. For purposes of this paragraph, the term "cost
172price" has the meaning ascribed in s. 212.02(4). The methods of
173demonstrating proof of payment and the amount of such reductions
174in tax shall be made according to rules of the Department of
175Revenue.
176     (g)(c)  Electricity produced by cogeneration or by small
177power producers which is transmitted and distributed by a public
178utility between two locations of a customer of the utility
179pursuant to s. 366.051 is subject to the tax imposed by this
180section. The tax shall be applied to the cost price of such
181electricity as provided in s. 212.02(4) and shall be paid each
182month by the producer of such electricity.
183     (h)(d)  Electricity produced by cogeneration or by small
184power producers during the 12-month period ending June 30 of
185each year which is in excess of nontaxable electricity produced
186during the 12-month period ending June 30, 1990, is subject to
187the tax imposed by this section. The tax shall be applied to the
188cost price of such electricity as provided in s. 212.02(4) and
189shall be paid each month, beginning with the month in which
190total production exceeds the production of nontaxable
191electricity for the 12-month period ending June 30, 1990. For
192purposes of this paragraph, "nontaxable electricity" means
193electricity produced by cogeneration or by small power producers
194which is not subject to tax under paragraph (g)(c). Taxes paid
195pursuant to paragraph (g)(c) may be credited against taxes due
196under this paragraph. Electricity generated as part of an
197industrial manufacturing process which manufactures products
198from phosphate rock, raw wood fiber, paper, citrus, or any
199agricultural product shall not be subject to the tax imposed by
200this paragraph. "Industrial manufacturing process" means the
201entire process conducted at the location where the process takes
202place.
203     (i)(e)  Any person other than a cogenerator or small power
204producer described in paragraph (h)(d) who produces for his or
205her own use electrical energy which is a substitute for
206electrical energy produced by an electric utility as defined in
207s. 366.02 is subject to the tax imposed by this section. The tax
208shall be applied to the cost price of such electrical energy as
209provided in s. 212.02(4) and shall be paid each month. The
210provisions of this paragraph do not apply to any electrical
211energy produced and used by an electric utility.
212     (j)(f)  Notwithstanding any other provision of this
213chapter, with the exception of a communications services dealer
214reporting taxes administered under chapter 202 telephone or
215telecommunication system described in paragraph (c), the
216department may require:
217     1.  A quarterly return and payment when the tax remitted
218for the preceding four calendar quarters did not exceed $1,000;
219     2.  A semiannual return and payment when the tax remitted
220for the preceding four calendar quarters did not exceed $500; or
221     3.  An annual return and payment when the tax remitted for
222the preceding four calendar quarters did not exceed $100.
223     (3)  The tax imposed by subsection (1) does not apply to
224term "gross receipts" as used herein does not include gross
225receipts of any person derived from:
226     (a)1.  The sale or transportation of natural gas or
227manufactured gas to a public or private utility, including a
228municipal corporation or rural electric cooperative association,
229either for resale or for use as fuel in the generation of
230electricity; or
231     2.(b)  The sale or delivery of electricity to a public or
232private utility, including a municipal corporation or rural
233electric cooperative association, for resale within the state,
234or as part of an electrical interchange agreement or contract
235between such utilities for the purpose of transferring more
236economically generated power;
237
238provided the person deriving gross receipts from such sale
239demonstrates that a sale, transportation, or delivery for resale
240in fact occurred and complies with the following requirements: A
241sale, transportation, or delivery for resale in this state must
242be in strict compliance with the rules and regulations of the
243Department of Revenue; and any sale subject to the tax imposed
244by this section person making a sale for resale in this state
245which is not in strict compliance with the rules and regulations
246of the Department of Revenue shall be subject to liable for and
247pay the tax at the appropriate rate imposed on utilities by
248paragraph (b) on the person making the sale. Any person making a
249sale for resale in this state may, through an informal protest
250provided for in s. 213.21 and the rules of the Department of
251Revenue, provide the department with evidence of the exempt
252status of a sale. The department shall adopt rules which provide
253that valid proof and documentation of the resale in this state
254by a person making the sale for resale in this state will be
255accepted by the department when submitted during the protest
256period but will not be accepted when submitted in any proceeding
257under chapter 120 or any circuit court action instituted under
258chapter 72;.
259     (b)  Wholesale sales of electric transmission service;
260     (c)  The use of natural gas in the production of oil or
261gas, or the use of natural or manufactured gas by a person
262transporting natural or manufactured gas, when used and consumed
263in providing such services; or
264     (d)  The sale or transportation to, or use of, natural gas
265or manufactured gas by a person eligible for an exemption under
266s. 212.08(7)(ff)2. for use as an energy source or a raw
267material.
268     Section 2.  Section 203.012, Florida Statutes, is amended
269to read:
270     203.012  Definitions.--As used in this chapter:
271     (1)  "Distribution company" means any person owning or
272operating local electric or natural or manufactured gas utility
273distribution facilities within this state for the transmission,
274delivery, and sale of electricity or natural or manufactured
275gas. The term does not include natural gas transmission
276companies that are subject to the jurisdiction of the Federal
277Energy Regulatory Commission.
278     (2)  "Person" means any person as defined in s. 212.02.
279     (3)(1)  "Utility service" means electricity for light,
280heat, or power; and natural or manufactured gas for light, heat,
281or power, including transportation, delivery, transmission, and
282distribution of the electricity or natural or manufactured gas.
283This subsection does not broaden the definition of utility
284service to include separately stated charges for tangible
285personal property or services which are not charges for the
286electricity or natural or manufactured gas or the
287transportation, delivery, transmission, or distribution of
288electricity or natural or manufactured gas.
289     Section 3.  Emergency rules.--The executive director of the
290Department of Revenue is authorized, and all conditions are
291deemed met, to adopt emergency rules, under ss. 120.536(1) and
292120.54(4), Florida Statutes, to implement the provisions of s.
293203.01, Florida Statutes, which provide for remittance of tax by
294distribution companies and self-accrual of tax by retail
295consumers and the provisions of s. 203.012, Florida Statutes,
296which define the term "distribution company" and provide that
297utility services include transportation, transmission, and
298distribution of electricity and natural or manufactured gas.
299Such rules shall include forms the Department of Revenue
300determines are necessary or appropriate for registration,
301applying for self-accrual authority, reporting, and remitting
302taxes, or applying for credits. Notwithstanding any other law,
303such emergency rules shall remain effective for 6 months after
304the date of adoption and may be renewed during the pendency of
305procedures to adopt rules addressing the subject of the
306emergency rules.
307     Section 4.  Amnesty for registration and remittance of
308tax.--
309     (1)  The state shall provide an amnesty for unpaid gross
310receipts tax, penalties, and interest on unpaid gross receipts
311tax that may otherwise be due for the sale or transportation of
312natural gas for consumption in this state if all of the
313following requirements are satisfied:
314     (a)  The sales subject to amnesty were made prior to
315October 1, 2005.
316     (b)  The gross receipts at issue were derived from one of
317the following:
318     1.  Sales by persons who are not regulated pursuant to
319chapter 366, Florida Statutes;
320     2.  Sales for which the written sales agreement provides
321for transfer of title to the gas outside the state; or
322     3.  Sales of transportation services associated with the
323sales of gas.
324     (c)  The seller registered with the Department of Revenue
325to pay gross receipts tax on or before October 1, 2005.
326     (d)  The seller applies for amnesty on or before October 1,
3272005, in accordance with the rules of the Department of Revenue.
328     (2)  The amnesty is not available for taxes, penalties, or
329interest that have been assessed if the assessment is final and
330has not been timely challenged, or for any tax, penalty, or
331interest that has been previously paid to the department unless
332the payment is the subject of an assessment that is not final or
333that has been timely challenged.
334     (3)  The amnesty is not available for tax billed to or
335collected by the seller as an itemized charge to customers.
336     (4)  The executive director of the Department of Revenue
337may adopt emergency rules under ss. 120.536(1) and 120.54(4),
338Florida Statutes, to implement the amnesty. Such rules may
339provide forms and procedures for applying for amnesty; for
340reporting the sales for which amnesty is sought; and for
341ensuring the applicant's ongoing commitment to registration,
342collection, and remittance of the state's gross receipts tax.
343Notwithstanding any other law, the emergency rules shall remain
344effective until the later of the date that is 6 months after the
345date of adoption of the rule or the date of final resolution of
346all amnesty applications filed pursuant to this section.
347     Section 5.  This act shall take effect October 1, 2005.


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