HB 809

1	A bill to be entitled
2	An act relating to communications services taxes;
3	amending s. 202.105, F.S.; revising legislative
4	intent; amending s. 202.11, F.S.; modifying
5	definitions; removing the definitions of the terms
6	"cable service" and "enhanced zip code"; adding
7	definitions for the terms "digital good," "digital
8	service," "Internet access service," and "video
9	service"; amending ss. 202.125, 202.16, 202.20, and
10	202.24, F.S.; conforming provisions to changes in
11	terminology; amending s. 202.18, F.S.; removing a
12	cross-reference to conform; amending s. 202.195, F.S.;
13	clarifying provisions exempting from the public
14	records law certain proprietary confidential business
15	information held by a local governmental entity for
16	the purpose of assessing the local communications
17	services tax; amending s. 202.22, F.S.; providing an
18	exception to the provision holding a dealer of
19	communications services harmless from liability when
20	the dealer fails to correct a customer's local taxing
21	jurisdiction following notice by the Department of
22	Revenue; eliminating provisions requiring that the
23	department provide a database for determining the
24	local taxing jurisdiction in which a service address
25	is located; amending s. 202.23, F.S.; removing a
26	provision relating to assigning a purchaser to a local
27	taxing jurisdiction, to conform to changes made by the
28	act; amending s. 202.231, F.S.; requiring the
29	Department of Revenue to aggregate monthly and make
30	available to the public on a jurisdiction-by-
31	jurisdiction basis certain sales and net tax
32	information; amending s. 202.26, F.S.; conforming
33	cross-references; eliminating a requirement that the
34	department adopt a rule governing certain databases;
35	amending s. 202.28, F.S.; deleting provisions imposing
36	a penalty against a dealer of communications services
37	which incorrectly assigns a service address, to
38	conform to changes made by the act; amending s.
39	212.05, F.S.; revising the definition of the term
40	"prepaid calling arrangement"; amending ss. 203.01,
41	610.118, and 624.105, F.S.; conforming cross-
42	references; providing for certain retroactive effect;
43	providing an effective date.
44
45	Be It Enacted by the Legislature of the State of Florida:
46
47	Section 1.  Subsection (1) of section 202.105, Florida
48	Statutes, is amended to read:
49	202.105  Legislative findings and intent.-
50	(1)  It is declared to be a specific legislative finding
51	that the creation of this chapter fulfills important state
52	interests by reforming the tax laws to provide a fair,
53	efficient, and uniform method for taxing communications services
54	sold in this state. This chapter is essential to the continued
55	economic vitality of this increasingly important industry
56	because it restructures state and local taxes and fees to
57	account for the impact of federal legislation, industry
58	deregulation, and the multitude of convergence of service
59	offerings that is now taking place among providers offering
60	functionally equivalent communications services in today's
61	marketplace. This chapter promotes the increased competition
62	that accompanies deregulation by embracing a competitively
63	neutral tax policy that will free consumers to choose a provider
64	based on tax-neutral considerations. This chapter further spurs
65	new competition by simplifying an extremely complicated state
66	and local tax and fee system. Simplification will lower the cost
67	of collecting taxes and fees, increase service availability, and
68	place downward pressure on price. Newfound administrative
69	efficiency is demonstrated by a reduction in the number of
70	returns that a provider must file each month. By restructuring
71	separate taxes and fees into a revenue-neutral communications
72	services tax centrally administered by the department, this
73	chapter will ensure that the growth of the industry is
74	unimpaired by excessive governmental regulation. The tax imposed
75	pursuant to this chapter is a replacement for taxes and fees
76	previously imposed and is not a new tax. The taxes imposed and
77	administered pursuant to this chapter are of general application
78	and are imposed in a uniform, consistent, and nondiscriminatory
79	manner.
80	Section 2.  Section 202.11, Florida Statutes, is amended to
81	read:
82	202.11  Definitions.-As used in this chapter:
83	(1)  "Cable service" means the transmission of video,
84	audio, or other programming service to purchasers, and the
85	purchaser interaction, if any, required for the selection or use
86	of any such programming service, regardless of whether the
87	programming is transmitted over facilities owned or operated by
88	the cable service provider or over facilities owned or operated
89	by one or more other dealers of communications services. The
90	term includes point-to-point and point-to-multipoint
91	distribution services by which programming is transmitted or
92	broadcast by microwave or other equipment directly to the
93	purchaser's premises, but does not include direct-to-home
94	satellite service. The term includes basic, extended, premium,
95	pay-per-view, digital, and music services.
96	(1)(2)  "Communications services" means the transmission,
97	conveyance, or routing of voice, data, audio, video, or any
98	other information or signals, including video cable services, to
99	a point, or between or among points, by or through any
100	electronic, radio, satellite, cable, optical, microwave, or
101	other medium or method now in existence or hereafter devised,
102	regardless of the protocol used for such transmission or
103	conveyance. The term includes such transmission, conveyance, or
104	routing in which computer processing applications are used to
105	act on the form, code, or protocol of the content for purposes
106	of transmission, conveyance, or routing without regard to
107	whether such service is referred to as voice-over-Internet-
108	protocol services or is classified by the Federal Communications
109	Commission as enhanced or value-added. The term does not
110	include:
111	(a)  Information services.
112	(b)  Installation or maintenance of wiring or equipment on
113	a customer's premises.
114	(c)  The sale or rental of tangible personal property.
115	(d)  The sale of advertising, including, but not limited
116	to, directory advertising.
117	(e)  Bad check charges.
118	(f)  Late payment charges.
119	(g)  Billing and collection services.
120	(h)  Internet access service, electronic mail service,
121	electronic bulletin board service, or similar online computer
122	services.
123	(i)  Digital goods.
124	(j)  Digital services.
125	(2)(3)  "Dealer" means a person registered with the
126	department as a provider of communications services in this
127	state.
128	(3)(4)  "Department" means the Department of Revenue.
129	(4)  "Digital good" means any downloaded good or product
130	that is delivered or transferred by means other than tangible
131	storage media, including downloaded games, software, music, or
132	other digital content. The term does not include video service.
133	(5)  "Digital service" means any service, other than video
134	service, which is provided electronically, including remotely
135	provided access to or use of software or another digital good,
136	and also includes the following services, if they are provided
137	remotely: monitoring, security, distance learning, energy
138	management, medical diagnostic, mechanical diagnostic, and
139	vehicle tracking services. If a digital service is bundled for
140	sale with the transmission, conveyance, or routing of any
141	information or signals, the bundled service is a digital service
142	unless the tax imposed under this chapter and chapter 203 has
143	not been paid with respect to such transmission, conveyance, or
144	routing.
145	(6)(5)  "Direct-to-home satellite service" has the meaning
146	ascribed in the Communications Act of 1934, 47 U.S.C. s. 303(v).
147	(7)(6)  "Information service" means the offering of a
148	capability for generating, acquiring, storing, transforming,
149	processing, retrieving, using, or making available information
150	via communications services, including, but not limited to,
151	electronic publishing, web-hosting service, and end-user 900
152	number service. The term does not include any video, audio, or
153	other programming service that uses point-to-multipoint
154	distribution by which programming is delivered, transmitted, or
155	broadcast by any means, including any interaction that may be
156	necessary for selecting and using the service, regardless of
157	whether the programming is delivered, transmitted, or broadcast
158	over facilities owned or operated by the seller or another, or
159	whether denominated as cable service or as basic, extended,
160	premium, pay-per-view, digital, music, or two-way cable service.
161	(8)  "Internet access service" has the same meaning as
162	ascribed to the term "Internet access" by s. 1105(5) of the
163	Internet Tax Freedom Act, 47 U.S.C. s. 151 note, as amended by
164	Pub. L. No. 110-108.
165	(9)(7)  "Mobile communications service" means commercial
166	mobile radio service, as defined in 47 C.F.R. s. 20.3 as in
167	effect on June 1, 1999. The term does not include air-ground
168	radiotelephone service as defined in 47 C.F.R. s. 22.99 as in
169	effect on June 1, 1999.
170	(10)(8)  "Person" has the meaning ascribed in s. 212.02.
171	(11)(9)  "Prepaid calling arrangement" means the separately
172	stated retail sale by advance payment of communications services
173	that must be paid for in advance; that may be used to place or
174	receive consist exclusively of telephone calls originated; that
175	are enabled by using an access number, authorization code, or
176	other means that may be manually, electronically, or otherwise
177	entered;, and that are sold in predetermined units or dollars of
178	which the number declines on a predetermined basis with use in a
179	known amount.
180	(12)(10)  "Purchaser" means the person paying for or
181	obligated to pay for communications services.
182	(13)(11)  "Retail sale" means the sale of communications
183	services for any purpose other than for resale or for use as a
184	component part of or for integration into communications
185	services to be resold in the ordinary course of business.
186	However, any sale for resale must comply with s. 202.16(2) and
187	the rules adopted thereunder.
188	(14)(12)  "Sale" means the provision of communications
189	services for a consideration.
190	(15)(13)  "Sales price" means the total amount charged in
191	money or other consideration by a dealer for the sale of the
192	right or privilege of using communications services in this
193	state, including any property or other service, not described in
194	paragraph (a), which is services that are part of the sale and
195	for which the charge is not separately itemized on a customer's
196	bill or separately allocated under subparagraph (b)8. The sales
197	price of communications services may shall not be reduced by any
198	separately identified components of the charge which that
199	constitute expenses of the dealer, including, but not limited
200	to, sales taxes on goods or services purchased by the dealer,
201	property taxes, taxes measured by net income, and universal-
202	service fund fees.
203	(a)  The sales price of communications services includes
204	shall include, whether or not separately stated, charges for any
205	of the following:
206	1.  The connection, movement, change, or termination of
207	communications services.
208	2.  The detailed billing of communications services.
209	3.  The sale of directory listings in connection with a
210	communications service.
211	4.  Central office and custom calling features.
212	5.  Voice mail and other messaging service.
213	6.  Directory assistance.
214	7.  The service of sending or receiving a document commonly
215	referred to as a facsimile or "fax," except when performed
216	during the course of providing professional or advertising
217	services.
218	(b)  The sales price of communications services does not
219	include charges for any of the following:
220	1.  An Any excise tax, sales tax, or similar tax levied by
221	the United States or any state or local government on the
222	purchase, sale, use, or consumption of any communications
223	service, including, but not limited to, a any tax imposed under
224	this chapter or chapter 203 which is permitted or required to be
225	added to the sales price of such service, if the tax is stated
226	separately.
227	2.  A Any fee or assessment levied by the United States or
228	any state or local government, including, but not limited to,
229	regulatory fees and emergency telephone surcharges, which must
230	is required to be added to the price of the such service if the
231	fee or assessment is separately stated.
232	3.  Communications services paid for by inserting coins
233	into coin-operated communications devices available to the
234	public.
235	4.  The sale or recharge of a prepaid calling arrangement.
236	5.  The provision of air-to-ground communications services,
237	defined as a radio service provided to a purchaser purchasers
238	while on board an aircraft.
239	6.  A dealer's internal use of communications services in
240	connection with its business of providing communications
241	services.
242	7.  Charges for property or other services that are not
243	part of the sale of communications services, if such charges are
244	stated separately from the charges for communications services.
245	8.  To the extent required by federal law, Charges for
246	goods and services that are exempt from tax under this chapter,
247	including Internet access services but excluding any item
248	described in paragraph (a), that which are not separately
249	itemized on a customer's bill, but that which can be reasonably
250	identified from the selling dealer's books and records kept in
251	the regular course of business. The dealer may support the
252	allocation of charges with books and records kept in the regular
253	course of business covering the dealer's entire service area,
254	including territories outside this state.
255	(16)(14)  "Service address" means:
256	(a)  Except as otherwise provided in this section:
257	1.  The location of the communications equipment from which
258	communications services originate or at which communications
259	services are received by the customer;
260	2.  In the case of a communications service paid through a
261	credit or payment mechanism that does not relate to a service
262	address, such as a bank, travel, debit, or credit card, and in
263	the case of third-number and calling-card calls, the term
264	"service address" means the address of the central office, as
265	determined by the area code and the first three digits of the
266	seven-digit originating telephone number; or
267	3.  If the location of the equipment described in
268	subparagraph 1. is not known and subparagraph 2. is
269	inapplicable, the term "service address" means the location of
270	the customer's primary use of the communications service. For
271	purposes of this subparagraph, the location of the customer's
272	primary use of a communications service is the residential
273	street address or the business street address of the customer.
274	(b)  In the case of video cable services and direct-to-home
275	satellite services, the location where the customer receives the
276	services in this state.
277	(c)  In the case of mobile communications services, the
278	customer's place of primary use.
279	(17)(15)  "Unbundled network element" means a network
280	element, as defined in 47 U.S.C. s. 153(29), to which access is
281	provided on an unbundled basis pursuant to 47 U.S.C. s.
282	251(c)(3).
283	(18)(16)  "Private communications service" means a
284	communications service that entitles the subscriber or user to
285	exclusive or priority use of a communications channel or group
286	of channels between or among channel termination points,
287	regardless of the manner in which such channel or channels are
288	connected, and includes switching capacity, extension lines,
289	stations, and any other associated services that which are
290	provided in connection with the use of such channel or channels.
291	(19)(17)(a)  "Customer" means:
292	1.  The person or entity that contracts with the home
293	service provider for mobile communications services; or
294	2.  If the end user of mobile communications services is
295	not the contracting party, the end user of the mobile
296	communications service. This subparagraph only applies for the
297	purpose of determining the place of primary use.
298	(b)  "Customer" does not include:
299	1.  A reseller of mobile communications services; or
300	2.  A serving carrier under an agreement to serve the
301	customer outside the home service provider's licensed service
302	area.
303	(18)  "Enhanced zip code" means a United States postal zip
304	code of 9 or more digits.
305	(20)(19)  "Home service provider" means the facilities-
306	based carrier or reseller with which the customer contracts for
307	the provision of mobile communications services.
308	(21)(20)  "Licensed service area" means the geographic area
309	in which the home service provider is authorized by law or
310	contract to provide mobile communications service to the
311	customer.
312	(22)(21)  "Place of primary use" means the street address
313	representative of where the customer's use of the mobile
314	communications service primarily occurs, which must be:
315	(a)  The residential street address or the primary business
316	street address of the customer; and
317	(b)  Within the licensed service area of the home service
318	provider.
319	(23)(22)(a)  "Reseller" means a provider who purchases
320	communications services from another communications service
321	provider and then resells, uses as a component part of, or
322	integrates the purchased services into a mobile communications
323	service.
324	(b)  The term "Reseller" does not include a serving carrier
325	with which a home service provider arranges for the services to
326	its customers outside the home service provider's licensed
327	service area.
328	(24)(23)  "Serving carrier" means a facilities-based
329	carrier providing mobile communications service to a customer
330	outside a home service provider's or reseller's licensed service
331	area.
332	(25)(24)  "Video service" means the transmission of video,
333	audio, or other programming service to a purchaser, and the
334	purchaser interaction, if any, required for the selection or use
335	of a programming service, regardless of whether the programming
336	is transmitted over facilities owned or operated by the video
337	service provider or over facilities owned or operated by another
338	dealer of communications services. The term includes point-to-
339	point and point-to-multipoint distribution services through
340	which programming is transmitted or broadcast by microwave or
341	other equipment directly to the purchaser's premises, but does
342	not include direct-to-home satellite service. The term includes
343	basic, extended, premium, pay-per-view, digital video, two-way
344	cable, and music services has the same meaning as that provided
345	in s. 610.103.
346	Section 3.  Subsection (1) of section 202.125, Florida
347	Statutes, is amended to read:
348	202.125  Sales of communications services; specified
349	exemptions.-
350	(1)  The separately stated sales price of communications
351	services sold to residential households is exempt from the tax
352	imposed by s. 202.12 and s. 203.01(1)(b)3. This exemption does
353	not apply to any residence that constitutes all or part of a
354	transient public lodging establishment as defined in chapter
355	509, any mobile communications service, any video cable service,
356	or any direct-to-home satellite service.
357	Section 4.  Paragraph (a) of subsection (2) of section
358	202.16, Florida Statutes, is amended to read:
359	202.16  Payment.-The taxes imposed or administered under
360	this chapter and chapter 203 shall be collected from all dealers
361	of taxable communications services on the sale at retail in this
362	state of communications services taxable under this chapter and
363	chapter 203. The full amount of the taxes on a credit sale,
364	installment sale, or sale made on any kind of deferred payment
365	plan is due at the moment of the transaction in the same manner
366	as a cash sale.
367	(2)(a)  A sale of communications services that are used as
368	a component part of or integrated into a communications service
369	or prepaid calling arrangement for resale, including, but not
370	limited to, carrier-access charges, interconnection charges paid
371	by providers of mobile communication services or other
372	communication services, charges paid by a video cable service
373	provider providers for the purchase of video programming or the
374	transmission of video or other programming by another dealer of
375	communications services, charges for the sale of unbundled
376	network elements, and any other intercompany charges for the use
377	of facilities for providing communications services for resale,
378	must be made in compliance with the rules of the department. A
379	Any person who makes a sale for resale which is not in
380	compliance with these rules is liable for any tax, penalty, and
381	interest due for failing to comply, to be calculated pursuant to
382	s. 202.28(2)(a).
383	Section 5.  Paragraph (c) of subsection (3) of section
384	202.18, Florida Statutes, is amended to read:
385	202.18  Allocation and disposition of tax proceeds.-The
386	proceeds of the communications services taxes remitted under
387	this chapter shall be treated as follows:
388	(3)
389	(c)1.  Except as otherwise provided in this paragraph,
390	proceeds of the taxes levied pursuant to s. 202.19, less amounts
391	deducted for costs of administration in accordance with
392	paragraph (b), shall be distributed monthly to the appropriate
393	jurisdictions. The proceeds of taxes imposed pursuant to s.
394	202.19(5) shall be distributed in the same manner as
395	discretionary surtaxes are distributed, in accordance with ss.
396	212.054 and 212.055.
397	2.  The department shall make any adjustments to the
398	distributions pursuant to this section which are necessary to
399	reflect the proper amounts due to individual jurisdictions or
400	trust funds. In the event that the department adjusts amounts
401	due to reflect a correction in the situsing of a customer, such
402	adjustment shall be limited to the amount of tax actually
403	collected from such customer by the dealer of communication
404	services.
405	3.a.  Notwithstanding the time period specified in s.
406	202.22(5), Adjustments in distributions which are necessary to
407	correct misallocations between jurisdictions shall be governed
408	by this subparagraph. If the department determines that
409	misallocations between jurisdictions occurred, it shall provide
410	written notice of such determination to all affected
411	jurisdictions. The notice shall include the amount of the
412	misallocations, the basis upon which the determination was made,
413	data supporting the determination, and the identity of each
414	affected jurisdiction. The notice shall also inform all affected
415	jurisdictions of their authority to enter into a written
416	agreement establishing a method of adjustment as described in
417	sub-subparagraph c.
418	b.  An adjustment affecting a distribution to a
419	jurisdiction which is less than 90 percent of the average
420	monthly distribution to that jurisdiction for the 6 months
421	immediately preceding the department's determination, as
422	reported by all communications services dealers, shall be made
423	in the month immediately following the department's
424	determination that misallocations occurred.
425	c.  If an adjustment affecting a distribution to a
426	jurisdiction equals or exceeds 90 percent of the average monthly
427	distribution to that jurisdiction for the 6 months immediately
428	preceding the department's determination, as reported by all
429	communications services dealers, the affected jurisdictions may
430	enter into a written agreement establishing a method of
431	adjustment. If the agreement establishing a method of adjustment
432	provides for payments of local communications services tax
433	monthly distributions, the amount of any such payment agreed to
434	may not exceed the local communications services tax monthly
435	distributions available to the jurisdiction that was allocated
436	amounts in excess of those to which it was entitled. If affected
437	jurisdictions execute a written agreement specifying a method of
438	adjustment, a copy of the written agreement shall be provided to
439	the department no later than the first day of the month
440	following 90 days after the date the department transmits notice
441	of the misallocation. If the department does not receive a copy
442	of the written agreement within the specified time period, an
443	adjustment affecting a distribution to a jurisdiction made
444	pursuant to this sub-subparagraph shall be prorated over a time
445	period that equals the time period over which the misallocations
446	occurred.
447	Section 6.  Subsections (1) and (3) of section 202.195,
448	Florida Statutes, are amended to read:
449	202.195  Proprietary confidential business information;
450	public records exemption.-
451	(1)  Proprietary confidential business information obtained
452	from a telecommunications company or from a franchised or
453	certificated video service provider cable company for the
454	purposes of imposing fees for occupying the public rights-of-
455	way, assessing the local communications services tax pursuant to
456	s. 202.19, or occupying or regulating the public rights-of-way,
457	held by a local governmental entity, is confidential and exempt
458	from s. 119.07(1) and s. 24(a), Art. I of the State
459	Constitution. Such proprietary confidential business information
460	held by a local governmental entity may be used only for the
461	purposes of imposing such fees, assessing such tax, or
462	regulating such rights-of-way, and may not be used for any other
463	purposes, including, but not limited to, commercial or
464	competitive purposes.
465	(3)  Nothing in This exemption does not expand expands the
466	information or documentation that a local governmental entity
467	may properly request under applicable law pursuant to the
468	imposition of fees for occupying the rights-of-way, the local
469	communication services tax, or the regulation of its public
470	rights-of-way.
471	Section 7.  Paragraph (b) of subsection (2) of section
472	202.20, Florida Statutes, is amended to read:
473	202.20  Local communications services tax conversion
474	rates.-
475	(2)
476	(b)  Except as otherwise provided in this subsection, the
477	term "replaced revenue sources," as used in this section, means
478	the following taxes, charges, fees, or other impositions to the
479	extent that the respective local taxing jurisdictions were
480	authorized to impose them prior to July 1, 2000.
481	1.  With respect to municipalities and charter counties and
482	the taxes authorized by s. 202.19(1):
483	a.  The public service tax on telecommunications authorized
484	by former s. 166.231(9).
485	b.  Franchise fees on video cable service providers as
486	authorized by 47 U.S.C. s. 542.
487	c.  The public service tax on prepaid calling arrangements.
488	d.  Franchise fees on dealers of communications services
489	which use the public roads or rights-of-way, up to the limit set
490	forth in s. 337.401. For purposes of calculating rates under
491	this section, it is the legislative intent that charter counties
492	be treated as having had the same authority as municipalities to
493	impose franchise fees on recurring local telecommunication
494	service revenues before prior to July 1, 2000. However, the
495	Legislature recognizes that the authority of charter counties to
496	impose such fees is in dispute, and the treatment provided in
497	this section is not an expression of legislative intent that
498	charter counties actually do or do not possess such authority.
499	e.  Actual permit fees relating to placing or maintaining
500	facilities in or on public roads or rights-of-way, collected
501	from providers of long-distance, cable, and mobile
502	communications services for the fiscal year ending September 30,
503	1999; however, if a municipality or charter county elects the
504	option to charge permit fees pursuant to s. 337.401(3)(c)1.a.,
505	such fees may shall not be included as a replaced revenue
506	source.
507	2.  With respect to all other counties and the taxes
508	authorized in s. 202.19(1), franchise fees on video cable
509	service providers as authorized by 47 U.S.C. s. 542.
510	Section 8.  Section 202.22, Florida Statutes, is amended to
511	read:
512	202.22  Determination of local tax situs.-
513	(1)  A dealer of communications services who is obligated
514	to collect and remit a local communications services tax imposed
515	under s. 202.19 shall be held harmless from any liability,
516	including tax, interest, and penalties, which would otherwise be
517	due solely as a result of an assignment of a service address to
518	an incorrect local taxing jurisdiction, unless the liability
519	arises from tax that is due with respect to taxable services
520	that are included on bills to a customer which are dated on or
521	after the first day of the 4th month after the dealer is
522	notified by the department that the customer has been
523	incorrectly assigned. if the dealer of communications services
524	exercises due diligence in applying one or more of the following
525	methods for determining the local taxing jurisdiction in which a
526	service address is located:
527	(a)  Employing an electronic database provided by the
528	department under subsection (2).
529	(b)  Employing a database developed by the dealer or
530	supplied by a vendor which has been certified by the department
531	under subsection (3).
532	(c)1.  Employing enhanced zip codes to assign each street
533	address, address range, post office box, or post office box
534	range in the dealer's service area to a specific local taxing
535	jurisdiction.
536	2.  If an enhanced zip code overlaps boundaries of
537	municipalities or counties, or if an enhanced zip code cannot be
538	assigned to the service address because the service address is
539	in a rural area or a location without postal delivery, the
540	dealer of communications services or its database vendor shall
541	assign the affected service addresses to one specific local
542	taxing jurisdiction within such zip code based on a reasonable
543	methodology. A methodology satisfies this subparagraph if the
544	information used to assign service addresses is obtained by the
545	dealer or its database vendor from:
546	a.  A database provided by the department;
547	b.  A database certified by the department under subsection
548	(3);
549	c.  Responsible representatives of the relevant local
550	taxing jurisdictions; or
551	d.  The United States Census Bureau or the United States
552	Postal Service.
553	(d)  Employing a database of street addresses or other
554	assignments that does not meet the requirements of paragraphs
555	(a)-(c), but meets the criteria set forth in paragraph (3)(a) at
556	the time of audit by the department.
557	(2)(a)  The department shall, subject to legislative
558	appropriation, create as soon as practical and feasible, and
559	thereafter maintain, an electronic database that gives due and
560	proper regard to any format that is approved by the American
561	National Standards Institute's Accredited Standards Committee
562	X12 and that designates for each street address, address range,
563	post office box, or post office box range in the state,
564	including any multiple postal street addresses applicable to one
565	street location, the local taxing jurisdiction in which the
566	street address, address range, post office box, or post office
567	box range is located and the appropriate code for each such
568	local taxing jurisdiction, identified by one nationwide standard
569	numeric code. The nationwide standard numeric code must contain
570	the same number of numeric digits, and each digit, or
571	combination of digits, must refer to the same level of taxing
572	jurisdiction throughout the United States using a format similar
573	to FIPS 55-3 or other appropriate standard approved by the
574	Federation of Tax Administrators and the Multistate Tax
575	Commission. Each address or address range or post office box or
576	post office box range must be provided in standard postal
577	format, including the street number, street number range, street
578	name, post office box number, post office box range, and zip
579	code. The department shall provide notice of the availability of
580	the database, and any subsequent revision thereof, by
581	publication in the Florida Administrative Weekly.
582	(b)1.  Each local taxing jurisdiction shall furnish to the
583	department all information needed to create and update the
584	electronic database, including changes in service addresses,
585	annexations, incorporations, reorganizations, and any other
586	changes in jurisdictional boundaries. The information furnished
587	to the department must specify an effective date, which must be
588	the next ensuing January 1 or July 1, and such information must
589	be furnished to the department at least 120 days prior to the
590	effective date. However, the requirement that counties submit
591	information pursuant to this paragraph shall be subject to
592	appropriation.
593	2.  The department shall update the electronic database in
594	accordance with the information furnished by local taxing
595	jurisdictions under subparagraph 1. Each update must specify the
596	effective date as the next ensuing January 1 or July 1 and must
597	be posted by the department on a website not less than 90 days
598	prior to the effective date. A substantially affected person may
599	provide notice to the database administrator of an objection to
600	information contained in the electronic database. If an
601	objection is supported by competent evidence, the department
602	shall forward the evidence to the affected local taxing
603	jurisdictions and update the electronic database in accordance
604	with the determination furnished by local taxing jurisdictions
605	to the department. The department shall also furnish the update
606	on magnetic or electronic media to any dealer of communications
607	services or vendor who requests the update on such media.
608	However, the department may collect a fee from the dealer of
609	communications services which does not exceed the actual cost of
610	furnishing the update on magnetic or electronic media.
611	Information contained in the electronic database is conclusive
612	for purposes of this chapter. The electronic database is not an
613	order, a rule, or a policy of general applicability.
614	3.  Each update must identify the additions, deletions, and
615	other changes to the preceding version of the database.
616	(3)  For purposes of this section, a database must be
617	certified by the department pursuant to rules that implement the
618	following criteria and procedures:
619	(a)  The database must assign street addresses, address
620	ranges, post office boxes, or post office box ranges to the
621	proper jurisdiction with an overall accuracy rate of 95 percent
622	at a 95 percent level of confidence, as determined through a
623	statistically reliable sample. The accuracy must be measured
624	based on the entire geographic area within the state covered by
625	such database.
626	(b)  Upon receipt of an application for certification or
627	recertification of a database, the provisions of s. 120.60 shall
628	apply, except that the department shall examine the application
629	and, within 90 days after receipt, notify the applicant of any
630	apparent errors or omissions and request any additional
631	information determined necessary. The applicant shall designate
632	an individual responsible for providing access to all records,
633	facilities, and processes the department determines are
634	reasonably necessary to review, inspect, or test to make a
635	determination regarding the application. Such access must be
636	provided within 10 working days after notification.
637	(c)  The application must be in the form prescribed by rule
638	and must include the applicant's name, federal employer
639	identification number, mailing address, business address, and
640	any other information required by the department. The
641	application may request that the applicant identify the
642	applicant's proposal for testing the database.
643	(d)  Each application for certification must be approved or
644	denied upon written notice within 180 days after receipt of a
645	completed application. The notice must specify the grounds for
646	denial, inform the applicant of any remedy that is available,
647	and indicate the procedure that must be followed. Filing of a
648	petition under chapter 120 does not preclude the department from
649	certifying the database upon a demonstration that the
650	deficiencies have been corrected.
651	(e)  Certification or recertification of a database under
652	this subsection is effective from the date of the department's
653	notice approving the application until the expiration of 3 or 4
654	years following such date, as set forth in the notice, except as
655	provided in paragraph (f).
656	(f)  An application for recertification of a database must
657	be received by the department not more than 3 years after the
658	date of any prior certification. The application and procedures
659	relating thereto shall be governed by this subsection, except as
660	otherwise provided in this paragraph. When an application for
661	recertification has been timely submitted, the existing
662	certification shall not expire but shall remain effective until
663	the application has received final action by the department, or
664	if the application is denied, until the denial is no longer
665	subject to administrative or judicial review or such later date
666	as may be fixed by order of the reviewing court.
667	(g)  Notwithstanding any provision of law to the contrary,
668	if a dealer submits an application for certification on or
669	before the later of October 1, 2001, or the date that is 30 days
670	after the date on which the applicable department rule becomes
671	effective, the 180-day time limit set forth in paragraph (d)
672	does not apply. During the time the application is under
673	consideration by the department or, if the application is
674	denied, until the denial is no longer subject to administrative
675	or judicial review or until a later date fixed by order of the
676	reviewing court:
677	1.  For purposes of computing the amount of the deduction
678	to which such dealer is entitled under s. 202.28, the dealer
679	shall be deemed to have used a certified database pursuant to
680	paragraph (1)(b).
681	2.  In the event that such application is approved, such
682	approval shall be deemed to have been effective on the date of
683	the application or October 1, 2001, whichever is later.
684	(4)(a)  As used in this section, "due diligence" means the
685	care and attention that is expected from, and ordinarily
686	exercised by, a reasonable and prudent person under the
687	circumstances.
688	(b)  Notwithstanding any law to the contrary, a dealer of
689	communications services is exercising due diligence in applying
690	one or more of the methods set forth in subsection (1) if the
691	dealer:
692	1.  Expends reasonable resources to accurately and reliably
693	implement such method. However, the employment of enhanced zip
694	codes pursuant to paragraph (1)(c) satisfies the requirements of
695	this subparagraph; and
696	2.  Maintains adequate internal controls in assigning
697	street addresses, address ranges, post offices boxes, and post
698	office box ranges to taxing jurisdictions. Internal controls are
699	adequate if the dealer of communications services:
700	a.  Maintains and follows procedures to obtain and
701	implement periodic and consistent updates to the database at
702	least once every 6 months; and
703	b.  Corrects errors in the assignments of service addresses
704	to local taxing jurisdictions within 120 days after the dealer
705	discovers such errors.
706	(5)  If a dealer of communications services does not use
707	one or more of the methods specified in subsection (1) for
708	determining the local taxing jurisdiction in which a service
709	address is located, the dealer of communications services may be
710	held liable to the department for any tax, including interest
711	and penalties, which is due as a result of assigning the service
712	address to an incorrect local taxing jurisdiction. However, the
713	dealer of communications services is not liable for any tax,
714	interest, or penalty to the extent that such amount was
715	collected and remitted by the dealer of communications services
716	with respect to a tax imposed by another local taxing
717	jurisdiction. Upon determining that an amount was collected and
718	remitted by a dealer of communications services with respect to
719	a tax imposed by another local taxing jurisdiction, the
720	department shall adjust the respective amounts of the proceeds
721	paid to each such taxing jurisdiction under s. 202.18 in the
722	month immediately following such determination.
723	(6)(a)  Pursuant to rules adopted by the department, each
724	dealer of communications services must notify the department of
725	the methods it intends to employ for determining the local
726	taxing jurisdiction in which service addresses are located.
727	(b)  Notwithstanding s. 202.28, if a dealer of
728	communications services employs a method of assigning service
729	addresses other than as set forth in paragraph (1)(a), paragraph
730	(1)(b), or paragraph (1)(c), the deduction allowed to the dealer
731	of communications services as compensation under s. 202.28 shall
732	be 0.25 percent of that portion of the tax due and accounted for
733	and remitted to the department which is attributable to such
734	method of assigning service addresses other than as set forth in
735	paragraph (1)(a), paragraph (1)(b), or paragraph (1)(c).
736	(7)  As used in this section, "enhanced zip code" means a
737	United States postal zip code of 9 or more digits.
738	(8)  All local communications services taxes collected by a
739	dealer are subject to the provisions of s. 213.756. The hold
740	harmless protection provided by subsection (1) does not entitle
741	a dealer to retain or take credits for taxes collected from any
742	customers that are assigned to an incorrect local taxing
743	jurisdiction in excess of the taxes due to the correct local
744	taxing jurisdiction for that customer. Dealers are entitled to
745	refunds of or credits for such excess collections only upon
746	making refunds or providing credits to the customer.
747	Section 9.  Subsections (2) and (5) of section 202.23,
748	Florida Statutes, are amended to read:
749	202.23  Procedure on purchaser's request for refund or
750	credit of communications services taxes.-
751	(2)  This section provides the sole and exclusive procedure
752	and remedy for a purchaser who claims that a dealer has
753	collected communications services taxes imposed or administered
754	under this chapter which were not due. An action that arises as
755	a result of the claimed collection of taxes that were not due
756	may not be commenced or maintained by or on behalf of a
757	purchaser against a dealer, a municipality, a county, or the
758	state unless the purchaser pleads and proves that the purchaser
759	has exhausted the procedures in subsection (1) and that the
760	defendant has failed to comply with subsection (1). However, a
761	dealer who does not make a determination no determination by a
762	dealer under paragraph (1)(c) shall be deemed a failure to
763	comply with subsection (1) if the dealer has complied with the
764	obligations imposed on the dealer by paragraphs (1)(d), (e), and
765	(f). In any such action, it is a complete defense if that the
766	dealer, a municipality, a county, or the state has refunded the
767	taxes claimed or credited the purchaser's account. In such an
768	action against a dealer, it is also a complete defense that, in
769	collecting the tax, the dealer used one or more of the methods
770	set forth in s. 202.22 for assigning the purchaser to a local
771	taxing jurisdiction. An Such action is barred unless it is
772	commenced within 180 days following the date of the dealer's
773	written response under paragraph (1)(f), or within 1 year
774	following submission of the purchaser's request to the dealer if
775	the dealer failed to issue a timely written response. The relief
776	available to a purchaser as a result of collection of
777	communications services taxes that were not due is limited to a
778	refund of or credit for such taxes.
779	(5)  A dealer who has collected and remitted amounts that
780	were not due, as determined by the department under paragraph
781	(1)(e), who has issued a refund or credit to the purchaser for
782	such amounts, and who takes a credit or receives a refund from
783	the department for such amounts as provided in subsection (3) is
784	not subject to assessment for any of the tax that was refunded
785	or credited or for any interest or penalty with respect to the
786	tax. In addition, a dealer who modifies his or her tax
787	compliance practices to conform to a department determination
788	under paragraph (1)(e) is not subject to assessment as a result
789	of such modification, absent a subsequent change in law or
790	update to a database pursuant to s. 202.22.
791	Section 10.  Subsection (3) is added to section 202.231,
792	Florida Statutes, to read:
793	202.231  Provision of information to local taxing
794	jurisdictions.-
795	(3)  The gross taxable sales and net tax information
796	contained in the monthly reports required by this section shall
797	be aggregated on a jurisdiction-by-jurisdiction basis, and the
798	aggregate jurisdiction-by-jurisdiction information shall be made
799	available by the department to the public through the
800	department's website for each fiscal year this chapter has been
801	in effect.
802	Section 11.  Paragraphs (a) and (c) of subsection (2) of
803	section 202.24, Florida Statutes, are amended to read:
804	202.24  Limitations on local taxes and fees imposed on
805	dealers of communications services.-
806	(2)(a)  Except as provided in paragraph (c), each public
807	body is prohibited from:
808	1.  Levying on or collecting from dealers or purchasers of
809	communications services any tax, charge, fee, or other
810	imposition on or with respect to the provision or purchase of
811	communications services.
812	2.  Requiring any dealer of communications services to
813	enter into or extend the term of a franchise or other agreement
814	that requires the payment of a tax, charge, fee, or other
815	imposition.
816	3.  Adopting or enforcing any provision of any ordinance or
817	agreement to the extent that such provision obligates a dealer
818	of communications services to charge, collect, or pay to the
819	public body a tax, charge, fee, or other imposition.
820
821	Municipalities and counties may not negotiate those terms and
822	conditions related to franchise fees or the definition of gross
823	revenues or other definitions or methodologies related to the
824	payment or assessment of franchise fees on providers of cable or
825	video services.
826	(c)  This subsection does not apply to:
827	1.  Local communications services taxes levied under this
828	chapter.
829	2.  Ad valorem taxes levied pursuant to chapter 200.
830	3.  Business taxes levied under chapter 205.
831	4.  "911" service charges levied under chapter 365.
832	5.  Amounts charged for the rental or other use of property
833	owned by a public body which is not in the public rights-of-way
834	to a dealer of communications services for any purpose,
835	including, but not limited to, the placement or attachment of
836	equipment used in the provision of communications services.
837	6.  Permit fees of general applicability which are not
838	related to placing or maintaining facilities in or on public
839	roads or rights-of-way.
840	7.  Permit fees related to placing or maintaining
841	facilities in or on public roads or rights-of-way pursuant to s.
842	337.401.
843	8.  Any in-kind requirements, institutional networks, or
844	contributions for, or in support of, the use or construction of
845	public, educational, or governmental access facilities allowed
846	under federal law and imposed on providers of cable or video
847	service pursuant to any existing ordinance or an existing
848	franchise agreement granted by each municipality or county,
849	under which ordinance or franchise agreement service is provided
850	before prior to July 1, 2007, or as permitted under chapter 610.
851	Nothing in This subparagraph does not shall prohibit the ability
852	of providers of cable or video service from recovering the to
853	recover such expenses as allowed under federal law.
854	9.  Special assessments and impact fees.
855	10.  Pole attachment fees that are charged by a local
856	government for attachments to utility poles owned by the local
857	government.
858	11.  Utility service fees or other similar user fees for
859	utility services.
860	12.  Any other generally applicable tax, fee, charge, or
861	imposition authorized by general law on July 1, 2000, which is
862	not specifically prohibited by this subsection or included as a
863	replaced revenue source in s. 202.20.
864	Section 12.  Paragraphs (f), (g), (h), (i), and (j) of
865	subsection (3) of section 202.26, Florida Statutes, are amended
866	to read:
867	202.26  Department powers.-
868	(3)  To administer the tax imposed by this chapter, the
869	department may adopt rules relating to:
870	(f)  The records and methods necessary for a dealer to
871	demonstrate the exercise of due diligence as defined by s.
872	202.22 202.22(4)(b).
873	(g)  The creation of the database described in s. 202.22(2)
874	and the certification and recertification of the databases as
875	described in s. 202.22(3).
876	(g)(h)  The registration of dealers.
877	(h)(i)  The review of applications for, and the issuance
878	of, direct-pay permits, and the returns required to be filed by
879	holders thereof.
880	(i)(j)  The types of books and records kept in the regular
881	course of business which must be available during an audit of a
882	dealer's books and records when the dealer has made an
883	allocation or attribution pursuant to the definition of sales
884	prices in s. 202.11(15)(b)8. 202.11(13)(b)8. and examples of
885	methods for determining the reasonableness thereof. Books and
886	records kept in the regular course of business include, but are
887	not limited to, general ledgers, price lists, cost records,
888	customer billings, billing system reports, tariffs, and other
889	regulatory filings and rules of regulatory authorities. The Such
890	records may be required to be made available to the department
891	in an electronic format when so kept by the dealer. The dealer
892	may support the allocation of charges with books and records
893	kept in the regular course of business covering the dealer's
894	entire service area, including territories outside this state.
895	During an audit, the department may reasonably require
896	production of any additional books and records found necessary
897	to assist in its determination.
898	Section 13.  Paragraph (e) of subsection (2) of section
899	202.28, Florida Statutes, is amended to read:
900	202.28  Credit for collecting tax; penalties.-
901	(2)
902	(e)  If a dealer of communications services does not use
903	one or more of the methods specified in s. 202.22(1) for
904	assigning service addresses to local jurisdictions and assigns
905	one or more service addresses to an incorrect local jurisdiction
906	in collecting and remitting local communications services taxes
907	imposed under s. 202.19, the dealer shall be subject to a
908	specific penalty of 10 percent of any tax collected but reported
909	to the incorrect jurisdiction as a result of incorrect
910	assignment, except that the penalty imposed under this paragraph
911	with respect to a single return may not exceed $10,000.
912	Section 14.  Paragraph (a) of subsection (1) of section
913	203.01, Florida Statutes, is amended to read:
914	203.01  Tax on gross receipts for utility and
915	communications services.-
916	(1)(a)1.  A tax is imposed on gross receipts from utility
917	services that are delivered to a retail consumer in this state.
918	The Such tax shall be levied as provided in paragraphs (b)-(j).
919	2.  A tax is levied on communications services as defined
920	in s. 202.11(1) 202.11(2). The Such tax shall be applied to the
921	same services and transactions as are subject to taxation under
922	chapter 202, and to communications services that are subject to
923	the exemption provided in s. 202.125(1). The Such tax shall be
924	applied to the sales price of communications services when sold
925	at retail, as the such terms are defined in s. 202.11, shall be
926	due and payable at the same time as the taxes imposed pursuant
927	to chapter 202, and shall be administered and collected pursuant
928	to the provisions of chapter 202.
929	Section 15.  Paragraph (e) of subsection (1) of section
930	212.05, Florida Statutes, is amended to read:
931	212.05  Sales, storage, use tax.-It is hereby declared to
932	be the legislative intent that every person is exercising a
933	taxable privilege who engages in the business of selling
934	tangible personal property at retail in this state, including
935	the business of making mail order sales, or who rents or
936	furnishes any of the things or services taxable under this
937	chapter, or who stores for use or consumption in this state any
938	item or article of tangible personal property as defined herein
939	and who leases or rents such property within the state.
940	(1)  For the exercise of such privilege, a tax is levied on
941	each taxable transaction or incident, which tax is due and
942	payable as follows:
943	(e)1.  At the rate of 6 percent on charges for:
944	a.  Prepaid calling arrangements. The tax on charges for
945	prepaid calling arrangements shall be collected at the time of
946	sale and remitted by the selling dealer.
947	(I)  "Prepaid calling arrangement" means the separately
948	stated retail sale by advance payment of communications services
949	that must be paid for in advance; that may be used to place or
950	receive consist exclusively of telephone calls; that are enabled
951	originated by using an access number, authorization code, or
952	other means that may be manually, electronically, or otherwise
953	entered; and that are sold in predetermined units or dollars
954	whose number declines on a predetermined basis with use in a
955	known amount.
956	(II)  If the sale or recharge of the prepaid calling
957	arrangement does not take place at the dealer's place of
958	business, it shall be deemed to take place at the customer's
959	shipping address or, if no item is shipped, at the customer's
960	address or the location associated with the customer's mobile
961	telephone number.
962	(III)  The sale or recharge of a prepaid calling
963	arrangement shall be treated as a sale of tangible personal
964	property for purposes of this chapter, whether or not a tangible
965	item evidencing such arrangement is furnished to the purchaser,
966	and such sale within this state subjects the selling dealer to
967	the jurisdiction of this state for purposes of this subsection.
968	b.  The installation of telecommunication and telegraphic
969	equipment.
970	c.  Electrical power or energy, except that the tax rate
971	for charges for electrical power or energy is 7 percent.
972	2.  The provisions of s. 212.17(3), regarding credit for
973	tax paid on charges subsequently found to be worthless, shall be
974	equally applicable to any tax paid under the provisions of this
975	section on charges for prepaid calling arrangements,
976	telecommunication or telegraph services, or electric power
977	subsequently found to be uncollectible. The word "charges" in
978	this paragraph does not include any excise or similar tax levied
979	by the Federal Government, any political subdivision of the
980	state, or any municipality upon the purchase, sale, or recharge
981	of prepaid calling arrangements or upon the purchase or sale of
982	telecommunication, television system program, or telegraph
983	service or electric power, which tax is collected by the seller
984	from the purchaser.
985	Section 16.  Paragraph (a) of subsection (1) of section
986	610.118, Florida Statutes, is amended to read:
987	610.118  Impairment; court-ordered operations.-
988	(1)  If an incumbent cable or video service provider is
989	required to operate under its existing franchise and is legally
990	prevented by a lawfully issued order of a court of competent
991	jurisdiction from exercising its right to terminate its existing
992	franchise pursuant to the terms of s. 610.105, any
993	certificateholder providing cable service or video service in
994	whole or in part within the service area that is the subject of
995	the incumbent cable or video service provider's franchise shall,
996	for as long as the court order remains in effect, comply with
997	the following franchise terms and conditions as applicable to
998	the incumbent cable or video service provider in the service
999	area:
1000	(a)  The certificateholder shall pay to the municipality or
1001	county:
1002	1.  Any prospective lump-sum or recurring per-subscriber
1003	funding obligations to support public, educational, and
1004	governmental access channels or other prospective franchise-
1005	required monetary grants related to public, educational, or
1006	governmental access facilities equipment and capital costs.
1007	Prospective lump-sum payments shall be made on an equivalent
1008	per-subscriber basis calculated as follows: the amount of the
1009	prospective funding obligations divided by the number of
1010	subscribers being served by the incumbent cable service provider
1011	at the time of payment, divided by the number of months
1012	remaining in the incumbent cable or video service provider's
1013	franchise equals the monthly per subscriber amount to be paid by
1014	the certificateholder until the expiration or termination of the
1015	incumbent cable or video service provider's franchise; and
1016	2.  If the incumbent cable or video service provider is
1017	required to make payments for the funding of an institutional
1018	network, the certificateholder shall pay an amount equal to the
1019	incumbent's funding obligations but not to exceed 1 percent of
1020	the sales price, as defined in s. 202.11(15) 202.11(13), for the
1021	taxable monthly retail sales of cable or video programming
1022	services the certificateholder received from subscribers in the
1023	affected municipality or county. All definitions and exemptions
1024	under chapter 202 apply in the determination of taxable monthly
1025	retail sales of cable or video programming services.
1026	Section 17.  Section 624.105, Florida Statutes, is amended
1027	to read:
1028	624.105  Waiver of customer liability.-Any regulated
1029	company as defined in s. 350.111, any electric utility as
1030	defined in s. 366.02(2), any utility as defined in s.
1031	367.021(12) or s. 367.022(2) and (7), and any provider of
1032	communications services as defined in s. 202.11(1) 202.11(2) may
1033	charge for and include an optional waiver of liability provision
1034	in their customer contracts under which the entity agrees to
1035	waive all or a portion of the customer's liability for service
1036	from the entity for a defined period in the event of the
1037	customer's call to active military service, death, disability,
1038	involuntary unemployment, qualification for family leave, or
1039	similar qualifying event or condition. Such provisions may not
1040	be effective in the customer's contract with the entity unless
1041	affirmatively elected by the customer. No such provision shall
1042	constitute insurance so long as the provision is a contract
1043	between the entity and its customer.
1044	Section 18.  The following changes made in this act are
1045	intended to be remedial in nature and apply retroactively, but
1046	do not provide a basis for an assessment of any tax not paid or
1047	create a right to a refund or credit of any tax paid before the
1048	general effective date of this act:
1049	(1)  The changes made in section 2 of this act to
1050	subsections renumbered as subsections (9), (11), and (15) of s.
1051	202.11, Florida Statutes;
1052	(2)  The changes made in section 7 of this act to s.
1053	202.22, Florida Statutes; and
1054	(3)  The changes made in section 14 of this act to
1055	paragraph (e) of subsection (1) of s. 212.05, Florida Statutes.
1056	Section 19.  This act shall take effect July 1, 2012.

CODING: Words stricken are deletions; words underlined are additions.