| 1 | A bill to be entitled |
| 2 | An act relating to the tax on substitute communications |
| 3 | systems; amending s. 202.11, F.S.; deleting certain |
| 4 | definitions; amending s. 202.12, F.S.; deleting a |
| 5 | provision relating to the manner in which the tax on gross |
| 6 | receipts for communications services is applied to a |
| 7 | substitute communications system; amending ss. 202.16, |
| 8 | 202.17, and 202.18, F.S.; correcting cross references; |
| 9 | amending s. 202.19, F.S.; deleting a provision authorizing |
| 10 | the imposition of a local communications services tax on |
| 11 | substitute communications systems; amending s. 203.01, |
| 12 | F.S.; deleting a provision authorizing the imposition of a |
| 13 | gross receipts tax on actual costs of operating substitute |
| 14 | communications systems; specifying that retroactive |
| 15 | operation is remedial and does not create any right to or |
| 16 | require any refunds; amending s. 624.105, F.S.; correcting |
| 17 | a cross reference; repealing s. 202.15, F.S., relating to |
| 18 | special rules for users of substitute communications |
| 19 | systems; providing for retroactive operation; providing an |
| 20 | effective date. |
| 21 |
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| 22 | Be It Enacted by the Legislature of the State of Florida: |
| 23 |
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| 24 | Section 1. Subsections (2) through (15) of section 202.11, |
| 25 | Florida Statutes, are renumbered as subsections (1) through |
| 26 | (14), respectively, subsections (17) through (25) of said |
| 27 | section are renumbered as subsections (15) through (23), |
| 28 | respectively, and present subsections (1) and (16) of said |
| 29 | section are amended to read: |
| 30 | 202.11 Definitions.--As used in this chapter: |
| 31 | (1) "Actual cost of operating a substitute communications |
| 32 | system" includes, but is not limited to, depreciation, interest, |
| 33 | maintenance, repair, and other expenses directly attributable to |
| 34 | the operation of such system. For purposes of this chapter, the |
| 35 | depreciation expense included in actual cost is the depreciation |
| 36 | expense claimed for federal income tax purposes. The total |
| 37 | amount of any payment required by a lease or rental contract or |
| 38 | agreement must be included within the actual cost of operating |
| 39 | the substitute communications system. |
| 40 | (16) "Substitute communications system" means any |
| 41 | telephone system, or other system capable of providing |
| 42 | communications services, which a person purchases, installs, |
| 43 | rents, or leases for his or her own use to provide himself or |
| 44 | herself with services used as a substitute for any switched |
| 45 | service or dedicated facility by which a dealer of |
| 46 | communications services provides a communication path. |
| 47 | Section 2. Paragraphs (c), (d), and (e) of subsection (1) |
| 48 | of section 202.12, Florida Statutes, are redesignated as |
| 49 | paragraphs (b), (c), and (d), respectively, and present |
| 50 | paragraph (b) of subsection (1) and subsection (2) of said |
| 51 | section are amended to read: |
| 52 | 202.12 Sales of communications services.--The Legislature |
| 53 | finds that every person who engages in the business of selling |
| 54 | communications services at retail in this state is exercising a |
| 55 | taxable privilege. It is the intent of the Legislature that the |
| 56 | tax imposed by chapter 203 be administered as provided in this |
| 57 | chapter. |
| 58 | (1) For the exercise of such privilege, a tax is levied on |
| 59 | each taxable transaction, and the tax is due and payable as |
| 60 | follows: |
| 61 | (b) At the rate set forth in paragraph (a) on the actual |
| 62 | cost of operating a substitute communications system, to be paid |
| 63 | in accordance with s. 202.15. This paragraph does not apply to |
| 64 | the use by any dealer of his or her own communications system to |
| 65 | conduct a business of providing communications services or any |
| 66 | communications system operated by a county, a municipality, the |
| 67 | state, or any political subdivision of the state. The gross |
| 68 | receipts tax imposed by chapter 203 shall be applied to the same |
| 69 | costs, and remitted with the tax imposed by this paragraph. |
| 70 | (2) A dealer of taxable communications services shall |
| 71 | bill, collect, and remit the taxes on communications services |
| 72 | imposed pursuant to chapter 203 and this section at a combined |
| 73 | rate that is the sum of the rate of tax on communications |
| 74 | services prescribed in chapter 203 and the applicable rate of |
| 75 | tax prescribed in this section. Each dealer subject to the tax |
| 76 | provided in paragraph (1)(b) shall also remit the taxes imposed |
| 77 | pursuant to chapter 203 and this section on a combined basis. |
| 78 | However, a dealer shall, in reporting each remittance to the |
| 79 | department, identify the portion thereof which consists of taxes |
| 80 | remitted pursuant to chapter 203. Return forms prescribed by the |
| 81 | department shall facilitate such reporting. |
| 82 | Section 3. Paragraph (a) of subsection (1) of section |
| 83 | 202.16, Florida Statutes, is amended to read: |
| 84 | 202.16 Payment.--The taxes imposed or administered under |
| 85 | this chapter and chapter 203 shall be collected from all dealers |
| 86 | of taxable communications services on the sale at retail in this |
| 87 | state of communications services taxable under this chapter and |
| 88 | chapter 203. The full amount of the taxes on a credit sale, |
| 89 | installment sale, or sale made on any kind of deferred payment |
| 90 | plan is due at the moment of the transaction in the same manner |
| 91 | as a cash sale. |
| 92 | (1)(a) Except as otherwise provided in ss. 202.12(1)(b) |
| 93 | and 202.15, The taxes collected under this chapter and chapter |
| 94 | 203 shall be paid by the purchaser of the communications service |
| 95 | and shall be collected from such person by the dealer of |
| 96 | communications services. |
| 97 | Section 4. Subsection (6) of section 202.17, Florida |
| 98 | Statutes, is amended to read: |
| 99 | 202.17 Registration.-- |
| 100 | (6) In addition to the certificate of registration, the |
| 101 | department shall provide to each newly registered dealer an |
| 102 | initial resale certificate that is valid for the remainder of |
| 103 | the period of issuance. The department shall provide to each |
| 104 | active dealer, except persons registered pursuant to s. 202.15, |
| 105 | an annual resale certificate. As used in this section, the term |
| 106 | "active dealer" means a person who is registered with the |
| 107 | department and who is required to file a return at least once |
| 108 | during each applicable reporting period. |
| 109 | Section 5. Subsections (1) and (2) of section 202.18, |
| 110 | Florida Statutes, are amended to read: |
| 111 | 202.18 Allocation and disposition of tax proceeds.--The |
| 112 | proceeds of the communications services taxes remitted under |
| 113 | this chapter shall be treated as follows: |
| 114 | (1) The proceeds of the taxes remitted under s. |
| 115 | 202.12(1)(a) and (b) shall be divided as follows: |
| 116 | (a) The portion of such proceeds which constitutes gross |
| 117 | receipts taxes, imposed at the rate prescribed in chapter 203, |
| 118 | shall be deposited as provided by law and in accordance with s. |
| 119 | 9, Art. XII of the State Constitution. |
| 120 | (b) The remaining portion shall be distributed according |
| 121 | to s. 212.20(6). |
| 122 | (2) The proceeds of the taxes remitted under s. |
| 123 | 202.12(1)(b)(c) shall be divided as follows: |
| 124 | (a) The portion of such proceeds which constitutes gross |
| 125 | receipts taxes, imposed at the rate prescribed in chapter 203, |
| 126 | shall be deposited as provided by law and in accordance with s. |
| 127 | 9, Art. XII of the State Constitution. |
| 128 | (b) Sixty-three percent of the remainder shall be |
| 129 | allocated to the state and distributed pursuant to s. 212.20(6), |
| 130 | except that the proceeds allocated pursuant to s. 212.20(6)(d)3. |
| 131 | shall be prorated to the participating counties in the same |
| 132 | proportion as that month's collection of the taxes and fees |
| 133 | imposed pursuant to chapter 212 and paragraph (1)(b). |
| 134 | (c)1. During each calendar year, the remaining portion of |
| 135 | such proceeds shall be transferred to the Local Government Half- |
| 136 | cent Sales Tax Clearing Trust Fund and shall be allocated in the |
| 137 | same proportion as the allocation of total receipts of the half- |
| 138 | cent sales tax under s. 218.61 and the emergency distribution |
| 139 | under s. 218.65 in the prior state fiscal year. |
| 140 | 2. The proportion of the proceeds allocated based on the |
| 141 | emergency distribution under s. 218.65 shall be distributed |
| 142 | pursuant to s. 218.65. |
| 143 | 3. In each calendar year, the proportion of the proceeds |
| 144 | allocated based on the half-cent sales tax under s. 218.61 shall |
| 145 | be allocated to each county in the same proportion as the |
| 146 | county's percentage of total sales tax allocation for the prior |
| 147 | state fiscal year and distributed pursuant to s. 218.62. |
| 148 | 4. The department shall distribute the appropriate amount |
| 149 | to each municipality and county each month at the same time that |
| 150 | local communications services taxes are distributed pursuant to |
| 151 | subsection (3). |
| 152 | Section 6. Subsections (8) through (12) of section 202.19, |
| 153 | Florida Statutes, are renumbered as subsections (7) through |
| 154 | (11), respectively, and present subsection (7) of said section |
| 155 | is amended to read: |
| 156 | 202.19 Authorization to impose local communications |
| 157 | services tax.-- |
| 158 | (7) Any tax imposed by a municipality, school board, or |
| 159 | county under this section also applies to the actual cost of |
| 160 | operating a substitute communications system, to be paid in |
| 161 | accordance with s. 202.15. This subsection does not apply to the |
| 162 | use by any provider of its own communications system to conduct |
| 163 | a business of providing communications services or to the use of |
| 164 | any communications system operated by a county, a municipality, |
| 165 | the state, or any political subdivision of the state. |
| 166 | Section 7. Paragraph (a) of subsection (1) of section |
| 167 | 203.01, Florida Statutes, is amended to read: |
| 168 | 203.01 Tax on gross receipts for utility and |
| 169 | communications services.-- |
| 170 | (1)(a)1. Every person that receives payment for any |
| 171 | utility service shall report by the last day of each month to |
| 172 | the Department of Revenue, under oath of the secretary or some |
| 173 | other officer of such person, the total amount of gross receipts |
| 174 | derived from business done within this state, or between points |
| 175 | within this state, for the preceding month and, at the same |
| 176 | time, shall pay into the State Treasury an amount equal to a |
| 177 | percentage of such gross receipts at the rate set forth in |
| 178 | paragraph (b). Such collections shall be certified by the Chief |
| 179 | Financial Officer upon the request of the State Board of |
| 180 | Education. |
| 181 | 2. A tax is levied on communications services as defined |
| 182 | in s. 202.11(2)(3). Such tax shall be applied to the same |
| 183 | services and transactions as are subject to taxation under |
| 184 | chapter 202, and to communications services that are subject to |
| 185 | the exemption provided in s. 202.125(1). Such tax shall be |
| 186 | applied to the sales price of communications services when sold |
| 187 | at retail and to the actual cost of operating substitute |
| 188 | communications systems, as such terms are defined in s. 202.11, |
| 189 | shall be due and payable at the same time as the taxes imposed |
| 190 | pursuant to chapter 202, and shall be administered and collected |
| 191 | pursuant to the provisions of chapter 202. |
| 192 | Section 8. Section 624.105, Florida Statutes, is amended |
| 193 | to read: |
| 194 | 624.105 Waiver of customer liability.--Any regulated |
| 195 | company as defined in s. 350.111, any electric utility as |
| 196 | defined in s. 366.02(2), any utility as defined in s. |
| 197 | 367.021(12) or s. 367.022(2) and (7), and any provider of |
| 198 | communications services as defined in s. 202.11(2)(3) may charge |
| 199 | for and include an optional waiver of liability provision in |
| 200 | their customer contracts under which the entity agrees to waive |
| 201 | all or a portion of the customer's liability for service from |
| 202 | the entity for a defined period in the event of the customer's |
| 203 | call to active military service, death, disability, involuntary |
| 204 | unemployment, qualification for family leave, or similar |
| 205 | qualifying event or condition. Such provisions may not be |
| 206 | effective in the customer's contract with the entity unless |
| 207 | affirmatively elected by the customer. No such provision shall |
| 208 | constitute insurance so long as the provision is a contract |
| 209 | between the entity and its customer. |
| 210 | Section 9. The retroactive application of the provisions |
| 211 | of this act are remedial in nature and shall not be construed to |
| 212 | create a right to a refund or to require a refund by any |
| 213 | governmental entity of any tax, penalty, or interest remitted to |
| 214 | the Department of Revenue on substitute communications systems |
| 215 | prior to the effective date of this act. |
| 216 | Section 10. Section 202.15, Florida Statutes, is repealed. |
| 217 | Section 11. This act shall take effect upon becoming a law |
| 218 | and shall apply retroactively to October 1, 2001. |