| 1 | A bill to be entitled |
| 2 | An act relating to taxation of communications services; |
| 3 | amending s. 202.16, F.S.; requiring tax amounts and |
| 4 | brackets made available to communications services dealers |
| 5 | by the Department of Revenue for computing the |
| 6 | communication services tax to be based on a rounding |
| 7 | algorithm; specifying mathematical criteria for the |
| 8 | rounding algorithm; authorizing a communications services |
| 9 | dealer to compute the tax on an item or an invoice basis; |
| 10 | requiring the department to allow application of the |
| 11 | rounding algorithm to certain aggregated state and local |
| 12 | taxes; directing the department to allow, but not require, |
| 13 | a dealer to collect taxes on communications services based |
| 14 | on a bracket system; providing construction; providing for |
| 15 | retroactive application; providing an effective date. |
| 16 |
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| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
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| 19 | Section 1. Subsection (3) of section 202.16, Florida |
| 20 | Statutes, is amended to read: |
| 21 | 202.16 Payment.-The taxes imposed or administered under |
| 22 | this chapter and chapter 203 shall be collected from all dealers |
| 23 | of taxable communications services on the sale at retail in this |
| 24 | state of communications services taxable under this chapter and |
| 25 | chapter 203. The full amount of the taxes on a credit sale, |
| 26 | installment sale, or sale made on any kind of deferred payment |
| 27 | plan is due at the moment of the transaction in the same manner |
| 28 | as a cash sale. |
| 29 | (3)(a) Notwithstanding the rate of tax on the sale of |
| 30 | communications services imposed pursuant to this chapter and |
| 31 | chapter 203, the department shall make available in an |
| 32 | electronic format or otherwise the tax amounts and brackets |
| 33 | applicable to each taxable sale based on a rounding algorithm |
| 34 | that meets the following criteria: |
| 35 | 1. Tax computation must be carried to the third decimal |
| 36 | place. |
| 37 | 2. The tax must be rounded to a whole cent using a method |
| 38 | that rounds up to the next cent whenever the third decimal place |
| 39 | is greater than four. |
| 40 | (b) A dealer may compute the tax due on a taxable sale on |
| 41 | an item or an invoice basis, and the department must allow |
| 42 | application of the rounding algorithm to the aggregated state |
| 43 | and local taxes imposed under this chapter and chapter 203. The |
| 44 | department must allow, but may not require, a dealer to collect |
| 45 | the tax based on a bracket system such that the tax collected |
| 46 | results in a tax rate no less than the tax rate imposed pursuant |
| 47 | to this chapter and chapter 203. |
| 48 | Section 2. The amendments made by this act to section |
| 49 | 202.16, Florida Statutes, are intended to be remedial in nature |
| 50 | and apply retroactively. The amendments do not provide a basis |
| 51 | for an assessment of any tax not paid, or create a right to a |
| 52 | refund of any tax paid, under section 202.16, Florida Statutes, |
| 53 | before July 1, 2011. |
| 54 | Section 3. This act shall take effect July 1, 2011. |