CS for SB 2024 First Engrossed 20102024e1 1 A bill to be entitled 2 An act relating to the tax on communications and 3 utility services; amending s. 202.12, F.S.; decreasing 4 the rate at which the sales price of certain 5 communications services are taxed; amending s. 6 202.125, F.S., relating to exemptions from the tax; 7 inserting a cross-reference to conform to changes made 8 by the act; amending s. 203.01, F.S.; imposing an 9 additional tax on certain communications services at a 10 specified rate; providing for an exemption to apply to 11 such tax; requiring that the tax on communications 12 services be included on bills dated on or after a 13 specified date; amending s. 215.61, F.S.; requiring 14 that the State Board of Education make specified 15 adjustments to the figures used by the board in 16 determining the amount of bond debt that can be 17 serviced by revenues derived from the gross receipts 18 tax on utility services; requiring that such 19 adjustment be based on a specified assumption; 20 deleting a provision requiring the deduction of 21 amounts used for debt service when determining fiscal 22 sufficiency; authorizing a dealer of communications 23 services to state the combined rate of certain taxes 24 on a bill for a taxable communications services under 25 certain circumstances; authorizing the Department of 26 Revenue to adopt emergency rules to promulgate forms 27 and instructions; providing for the act to apply to 28 bills for communications services dated on or after a 29 certain date; providing an effective date. 30 31 Be It Enacted by the Legislature of the State of Florida: 32 33 Section 1. Paragraph (a) of subsection (1) of section 34 202.12, Florida Statutes, is amended to read: 35 202.12 Sales of communications services.—The Legislature 36 finds that every person who engages in the business of selling 37 communications services at retail in this state is exercising a 38 taxable privilege. It is the intent of the Legislature that the 39 tax imposed by chapter 203 be administered as provided in this 40 chapter. 41 (1) For the exercise of such privilege, a tax is levied on 42 each taxable transaction, and the tax is due and payable as 43 follows: 44 (a) Except as otherwise provided in this subsection, at a 45 rate of 6.656.8percent applied to the sales price of the 46 communications service which: 47 1. Originates and terminates in this state, or 48 2. Originates or terminates in this state and is charged to 49 a service address in this state, 50 51 when sold at retail, computed on each taxable sale for the 52 purpose of remitting the tax due. The gross receipts tax imposed 53 by chapter 203 shall be collected on the same taxable 54 transactions and remitted with the tax imposed by this 55 paragraph. If no tax is imposed by this paragraph by reason of 56 s. 202.125(1), the tax imposed by chapter 203 shall nevertheless 57 be collected and remitted in the manner and at the time 58 prescribed for tax collections and remittances under this 59 chapter. 60 Section 2. Subsection (1) of section 202.125, Florida 61 Statutes, is amended to read: 62 202.125 Sales of communications services; specified 63 exemptions.— 64 (1) The separately stated sales price of communications 65 services sold to residential households is exempt from the tax 66 imposed by s. 202.12 and s. 203.01(1)(b)3. This exemption shall 67 not apply to any residence that constitutes all or part of a 68 public lodging establishment as defined in chapter 509, any 69 mobile communications service, any cable service, or any direct 70 to-home satellite service. 71 Section 3. Paragraph (b) of subsection (1) of section 72 203.01, Florida Statutes, is amended to read: 73 203.01 Tax on gross receipts for utility and communications 74 services.— 75 (1) 76 (b)1. The rate applied to utility services shall be 2.5 77 percent. 78 2. The rate applied to communications services shall be 79 2.37 percent. 80 3. There shall be an additional rate of 0.15 percent 81 applied to communication services subject to the tax levied 82 pursuant to s. 202.12(1)(a), (c), and (d). The exemption 83 provided in s. 202.125(1) applies to the any tax levied pursuant 84 to this subparagraph. 85 Section 4. Subsection (3) of section 215.61, Florida 86 Statutes, is amended to read: 87 215.61 State system of public education capital outlay 88 bonds.— 89 (3) No bonds authorized by s. 9(a)(2), Art. XII of the 90 State Constitution shall be issued in an amount exceeding 90 91 percent of the amount which the State Board of Education 92 determines can be serviced by the revenues derived from the 93 gross receipts tax levied and collected pursuant to chapter 203. 94 In determining the amount which can be serviced by the gross 95 receipts tax, the State Board of Education shall useutilizethe 96 average annual amount of revenue collected for the tax periods 97 during the 24 months immediately preceding the most recent 98 collection date beforeprior tothe date of issuance of any such 99 bonds, adjusted to reflect revenues that would have been 100 collected had legislation enacted into law before the date of 101 determination been in effect during the 24-month period. Such 102 adjustment shall be based on the assumption that the provisions 103 of the enacted legislation had become effective 24 months before 104 the dates contemplated in the legislation. For purpose of the 105 approval required by s. 215.73, official estimates of future 106 collections furnished by the State Board of Education prior to 107 the estimated date of issuance shall be used to determine fiscal 108 sufficiency.However, 100 percent of the amount required to109provide for the debt service for the current fiscal year of the110bonds issued prior to July 1, 1975, under the provisions of s.1119(a)(2), Art. XII of the State Constitution shall be deducted in112making the determination.113 Section 5. In complying with sections 1 through 3 of this 114 act, the dealer of communication services may collect a combined 115 rate of 6.8 percent comprised of 6.65 percent and 0.15 percent 116 required by ss. 202.12(1)(a) and 203.01(1)(b)3., Florida 117 Statutes, respectively, as long as the provider properly 118 reflects the tax collected with respect to the two provisions as 119 required in the return to the Department of Revenue. 120 Section 6. The Department of Revenue may, and all 121 conditions are deemed met to, adopt emergency rules pursuant to 122 ss. 120.536(1) and 120.54, Florida Statutes, for the purpose of 123 promulgating such forms and instructions as are required to 124 effectuate this act. 125 Section 7. This act shall take effect upon becoming a law, 126 except that sections 1 through 5 of this act apply to taxable 127 transactions included on bills for services dated on or after 128 August 1, 2010.