Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 980
Barcode 385636
CHAMBER ACTION
Senate House
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04/24/2007 10:37 AM .
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11 The Committee on Finance and Tax (Haridopolos) recommended the
12 following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Paragraphs (a) and (b) of subsection (1) of
19 section 202.12, Florida Statutes, are amended to read:
20 202.12 Sales of communications services.--The
21 Legislature finds that every person who engages in the
22 business of selling communications services at retail in this
23 state is exercising a taxable privilege. It is the intent of
24 the Legislature that the tax imposed by chapter 203 be
25 administered as provided in this chapter.
26 (1) For the exercise of such privilege, a tax is
27 levied on each taxable transaction, and the tax is due and
28 payable as follows:
29 (a) Except as otherwise provided in this subsection,
30 at a rate of 6.7 6.8 percent applied to the sales price of the
31 communications service which:
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 980
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1 1. Originates and terminates in this state, or
2 2. Originates or terminates in this state and is
3 charged to a service address in this state,
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5 when sold at retail, computed on each taxable sale for the
6 purpose of remitting the tax due. The gross receipts tax
7 imposed by chapter 203 shall be collected on the same taxable
8 transactions and remitted with the tax imposed by this
9 paragraph. If no tax is imposed by this paragraph by reason of
10 s. 202.125(1), the tax imposed by chapter 203 shall
11 nevertheless be collected and remitted in the manner and at
12 the time prescribed for tax collections and remittances under
13 this chapter.
14 (b) At the rate of 10.7 10.8 percent on the retail
15 sales price of any direct-to-home satellite service received
16 in this state. The proceeds of the tax imposed under this
17 paragraph shall be accounted for and distributed in accordance
18 with s. 202.18(2). The gross receipts tax imposed by chapter
19 203 shall be collected on the same taxable transactions and
20 remitted with the tax imposed by this paragraph.
21 Section 2. The amendments to s. 202.12, Florida
22 Statutes, by this act shall apply to bills for communications
23 services dated on or after January 1, 2008.
24 Section 3. Effective January 1, 2008, subsection (2)
25 of section 202.16, Florida Statutes, is amended to read:
26 202.16 Payment.--The taxes imposed or administered
27 under this chapter and chapter 203 shall be collected from all
28 dealers of taxable communications services on the sale at
29 retail in this state of communications services taxable under
30 this chapter and chapter 203. The full amount of the taxes on
31 a credit sale, installment sale, or sale made on any kind of
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 980
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1 deferred payment plan is due at the moment of the transaction
2 in the same manner as a cash sale.
3 (2)(a) A sale of communications services that are used
4 as a component part of or integrated into a communications
5 service or prepaid calling arrangement for resale, including,
6 but not limited to, carrier-access charges, interconnection
7 charges paid by providers of mobile communication services or
8 other communication services, charges paid by cable service
9 providers for the transmission of video or other programming
10 by another dealer of communications services, charges for the
11 sale of unbundled network elements, and any other intercompany
12 charges for the use of facilities for providing communications
13 services for resale, must be made in compliance with the rules
14 of the department. Any person who makes a sale for resale
15 which is not in compliance with these rules is liable for any
16 tax, penalty, and interest due for failing to comply, to be
17 calculated pursuant to s. 202.28(2)(a).
18 (b)1. Any dealer who makes a sale for resale shall
19 document the exempt nature of the transaction, as established
20 by rules adopted by the department, by retaining a copy of the
21 purchaser's initial or annual resale certificate issued
22 pursuant to s. 202.17(6). In lieu of maintaining a copy of the
23 certificate, a dealer may document, prior to the time of sale,
24 an authorization number provided telephonically or
25 electronically by the department or by such other means
26 established by rule of the department. The dealer may rely on
27 an initial or annual resale certificate issued pursuant to s.
28 202.17(6), valid at the time of receipt from the purchaser,
29 without seeking additional annual resale certificates from
30 such purchaser, if the dealer makes recurring sales to the
31 purchaser in the normal course of business on a continual
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 980
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1 basis. For purposes of this paragraph, the term "recurring
2 sales to a purchaser in the normal course of business" means
3 sales in which the dealer extends credit to the purchaser and
4 records the debt as an account receivable, or in which the
5 dealer sells to a purchaser who has an established cash
6 account, similar to an open credit account. For purposes of
7 this paragraph, purchases are made from a selling dealer on a
8 continual basis if the selling dealer makes, in the normal
9 course of business, sales to the purchaser no less frequently
10 than once in every 12-month period.
11 2. A dealer may, through the informal conference
12 procedures provided for in s. 213.21 and the rules of the
13 department, provide the department with evidence of the exempt
14 status of a sale. Exemption certificates executed by entities
15 that were exempt at the time of sale, resale certificates
16 provided by purchasers who were active dealers at the time of
17 sale, and verification by the department of a purchaser's
18 active dealer status at the time of sale in lieu of a resale
19 certificate shall be accepted by the department when submitted
20 during the protest period but may not be accepted in any
21 proceeding under chapter 120 or any circuit court action
22 instituted under chapter 72.
23 Section 4. Effective January 1, 2008, the Department
24 of Revenue shall establish a toll-free telephone number for
25 the verification of valid dealer registration numbers and
26 resale certificates issued under chapter 202, Florida
27 Statutes. The system must be adequate to guarantee a low busy
28 rate, must respond to keypad inquiries, and must provide data
29 that is updated daily.
30 Section 5. Effective January 1, 2008, the Department
31 of Revenue shall establish a system for receiving information
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Florida Senate - 2007 COMMITTEE AMENDMENT
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1 from dealers regarding certificate numbers of purchasers who
2 are seeking to make purchases for resale under chapter 202,
3 Florida Statutes. The department shall provide such dealers,
4 free of charge, with verification of those numbers that are
5 canceled or invalid.
6 Section 6. Effective January 1, 2008, paragraph (b) of
7 subsection (2) of section 202.18, Florida Statutes, is amended
8 to read:
9 202.18 Allocation and disposition of tax
10 proceeds.--The proceeds of the communications services taxes
11 remitted under this chapter shall be treated as follows:
12 (2) The proceeds of the taxes remitted under s.
13 202.12(1)(b) shall be divided as follows:
14 (b) Sixty-two and six-tenths Sixty-three percent of
15 the remainder shall be allocated to the state and distributed
16 pursuant to s. 212.20(6), except that the proceeds allocated
17 pursuant to s. 212.20(6)(d)3. shall be prorated to the
18 participating counties in the same proportion as that month's
19 collection of the taxes and fees imposed pursuant to chapter
20 212 and paragraph (1)(b).
21 Section 7. Paragraph (a) of subsection (2) of section
22 202.20, Florida Statutes, is amended to read:
23 202.20 Local communications services tax conversion
24 rates.--
25 (2)(a)1. With respect to any local taxing
26 jurisdiction, if, for the periods ending December 31, 2001;
27 March 31, 2002; June 30, 2002; or September 30, 2002, the
28 revenues received by that local government from the local
29 communications services tax imposed under subsection (1) are
30 less than the revenues received from the replaced revenue
31 sources for the corresponding 2000-2001 period; plus
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1 reasonably anticipated growth in such revenues over the
2 preceding 1-year period, based on the average growth of such
3 revenues over the immediately preceding 5-year period; plus an
4 amount representing the revenues from the replaced revenue
5 sources for the 1-month period that the local taxing
6 jurisdiction was required to forego, the governing authority
7 may adjust the rate of the local communications services tax
8 upward to the extent necessary to generate the entire
9 shortfall in revenues within 1 year after the rate adjustment
10 and by an amount necessary to generate the expected amount of
11 revenue on an ongoing basis.
12 2. If complete data are not available at the time of
13 determining whether the revenues received by a local
14 government from the local communications services tax imposed
15 under subsection (1) are less than the revenues received from
16 the replaced revenue sources for the corresponding 2000-2001
17 period, as set forth in subparagraph 1., the local government
18 shall use the best data available for the corresponding
19 2000-2001 period in making such determination. Complete data
20 shall be deemed available to all local governments after the
21 department completes audits, including the redistribution of
22 local tax, of dealers who account for no less than 80 percent
23 of the amount of communications services tax revenues received
24 for fiscal year 2005-2006.
25 3. The adjustment permitted under subparagraph 1. may
26 be made by emergency ordinance or resolution and may be made
27 notwithstanding the maximum rate established under s.
28 202.19(2) and notwithstanding any schedules or timeframes or
29 any other limitations contained in this chapter. Beginning
30 July 1, 2007, a local government may make such adjustment only
31 if the department or a dealer allocates or reallocates
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Florida Senate - 2007 COMMITTEE AMENDMENT
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1 revenues away from the local government. However, any such
2 adjustment shall be made no later than 6 months following the
3 date the department notifies the local governments in writing
4 that complete data is available. The emergency ordinance or
5 resolution shall specify an effective date for the adjusted
6 rate, which shall be no less than 60 days after the date of
7 adoption of the ordinance or resolution and shall be effective
8 with respect to taxable services included on bills that are
9 dated on the first day of a month subsequent to the expiration
10 of the 60-day period. At the end of 1 year following the
11 effective date of such adjusted rate, the local governing
12 authority shall, as soon as is consistent with s. 202.21,
13 reduce the rate by that portion of the emergency rate which
14 was necessary to recoup the amount of revenues not received
15 prior to the implementation of the emergency rate.
16 4. If, for the period October 1, 2001, through
17 September 30, 2002, the revenues received by a local
18 government from the local communications services tax
19 conversion rate established under subsection (1), adjusted
20 upward for the difference in rates between paragraphs (1)(a)
21 and (b) or any other rate adjustments or base changes, are
22 above the threshold of 10 percent more than the revenues
23 received from the replaced revenue sources for the
24 corresponding 2000-2001 period plus reasonably anticipated
25 growth in such revenues over the preceding 1-year period,
26 based on the average growth of such revenues over the
27 immediately preceding 5-year period, the governing authority
28 must adjust the rate of the local communications services tax
29 to the extent necessary to reduce revenues to the threshold by
30 emergency ordinance or resolution within the timeframes
31 established in subparagraph 3. The foregoing rate adjustment
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Florida Senate - 2007 COMMITTEE AMENDMENT
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1 requirement shall not apply to a local government that adopts
2 a local communications services tax rate by resolution or
3 ordinance. If complete data are not available at the time of
4 determining whether the revenues exceed the threshold, the
5 local government shall use the best data available for the
6 corresponding 2000-2001 period in making such determination.
7 This subparagraph shall not be construed as establishing a
8 right of action for any person to enforce this subparagraph or
9 challenge a local government's implementation of this
10 subparagraph.
11 Section 8. Except as otherwise expressly provided by
12 this act, this act shall take effect upon becoming a law.
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15 ================ T I T L E A M E N D M E N T ===============
16 And the title is amended as follows:
17 Delete everything before the enacting clause
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19 and insert:
20 A bill to be entitled
21 An act relating to the communications services
22 tax; amending s. 202.12, F.S.; decreasing the
23 rate of the tax; providing for application;
24 amending s. 202.16, F.S.; requiring dealers to
25 document exempt sales for resale; providing
26 requirements and procedures; providing a
27 definition; providing construction; providing
28 for dealer provision of evidence of the exempt
29 status of certain sales through an informal
30 protest process; requiring the Department of
31 Revenue to accept certain evidence during the
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Florida Senate - 2007 COMMITTEE AMENDMENT
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1 protest period; providing limitations;
2 requiring the department to establish a
3 toll-free telephone number for the purpose of
4 verifying registration numbers and resale
5 certificates; requiring the department to
6 establish a system for receiving information
7 from dealers regarding certificate numbers;
8 amending s. 202.18, F.S.; decreasing the
9 percentage allocation of certain tax proceeds;
10 amending s. 202.20, F.S.; limiting local
11 governmental authority to make certain rate
12 adjustments in the tax under certain
13 circumstances; providing for a determination of
14 completeness of certain data; providing
15 effective dates.
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