Florida Senate - 2011 COMMITTEE AMENDMENT Bill No. CS for SB 1198 Barcode 306410 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Budget Subcommittee on Finance and Tax (Bogdanoff) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Subsection (3) of section 202.16, Florida 6 Statutes, is amended to read: 7 202.16 Payment.—The taxes imposed or administered under 8 this chapter and chapter 203 shall be collected from all dealers 9 of taxable communications services on the sale at retail in this 10 state of communications services taxable under this chapter and 11 chapter 203. The full amount of the taxes on a credit sale, 12 installment sale, or sale made on any kind of deferred payment 13 plan is due at the moment of the transaction in the same manner 14 as a cash sale. 15 (3)(a) A dealer must compute the tax due on the sale of 16 communications services imposed pursuant to this chapter and 17 chapter 203 based on a rounding algorithm that meets the 18 following criteria: 19 1. The computation of the tax must be carried to the third 20 decimal place. 21 2. The tax must be rounded to a whole cent using a method 22 that rounds up to the next cent whenever the third decimal place 23 is greater than four. 24 (b) The rounding algorithm must be applied to the local 25 communications services tax imposed pursuant to this chapter 26 separately from its application to the communications services 27 taxes imposed pursuant to s. 202.12 and the gross receipts taxes 28 imposed pursuant to s. 203.01. 29 (c) A dealer may apply the rounding algorithm to the taxes 30 imposed pursuant to ss. 202.12 and 203.01 in one of the 31 following ways: 32 1. Apply the rounding algorithm to the combined taxes 33 imposed pursuant to ss. 202.12 and 203.01. 34 2. Apply the rounding algorithm to the communications 35 services taxes imposed pursuant to s. 202.12(1) and apply the 36 rounding algorithm separately to the combined gross receipts 37 taxes imposed pursuant to ss. 203.01(1)(b)2. and 203.01(1)(b)3. 38 3. Apply the rounding algorithm to the combined taxes 39 imposed pursuant to ss. 202.12(1) and 203.01(1)(b)3., as allowed 40 by ss. 202.12001 and 203.001, and apply the rounding algorithm 41 separately to the gross receipts tax imposed pursuant to s. 42 203.01(1)(b)2. 43 (d) Under paragraph (b) or paragraph (c), a dealer may 44 apply the rounding algorithm to the aggregate tax amount that is 45 computed on all taxable items on an invoice or to each tax 46 amount that is computed on one or more, but less than all, 47 taxable items on an invoice. The aggregate tax amount for all 48 items on the invoice must equal at least the result that would 49 have been obtained if the rounding algorithm had been applied to 50 the aggregate tax amount computed on all taxable items on the 51 invoice. A dealer may satisfy this requirement by setting a 52 minimum tax amount of not less than 1 cent with respect to each 53 item, or group of items, to which the rounding algorithm is 54 applied. 55 (e) The department may not require a dealer to collect the 56 tax based on a bracket system.Notwithstanding the rate of tax57on the sale of communications services imposed pursuant to this58chapter and chapter 203, the department shall make available in59an electronic format or otherwise the tax amounts and brackets60applicable to each taxable sale such that the tax collected61results in a tax rate no less than the tax rate imposed pursuant62to this chapter and chapter 203.63 Section 2. This act is intended to be remedial in nature 64 and applies retroactively. This act does not provide a basis for 65 an assessment of any tax not paid or create a right to a refund 66 or credit of any tax paid under s. 202.16, Florida Statutes, 67 before July 1, 2011. 68 Section 3. This act shall take effect July 1, 2011. 69 70 ================= T I T L E A M E N D M E N T ================ 71 And the title is amended as follows: 72 Delete everything before the enacting clause 73 and insert: 74 A bill to be entitled 75 An act relating to communications services tax; 76 amending s. 202.16, F.S.; requiring that a dealer 77 compute the communications services tax based on a 78 rounding algorithm; providing criteria; providing for 79 application of the tax; providing options to the 80 dealer for applying the rounding algorithm; providing 81 that a dealer may apply the rounding algorithm to the 82 aggregate tax amount under certain conditions; 83 providing that a dealer is not required to collect the 84 tax based on a bracket system; removing the provision 85 requiring the Department of Revenue to make available 86 tax amounts and applicable brackets; providing that 87 the provisions of the act are remedial in nature and 88 apply retroactively; providing that the act does not 89 provide a basis for assessment of any tax not paid or 90 create a right to certain refunds or credits; 91 providing an effective date.