Florida Senate - 2014 CS for SB 898 By the Committee on Communications, Energy, and Public Utilities; and Senator Abruzzo 579-02095-14 2014898c1 1 A bill to be entitled 2 An act relating to the communications services tax; 3 amending s. 202.11, F.S.; revising the definition of 4 the term “sales price” to exclude charges for the sale 5 of communications services between a franchisor and 6 its franchisee; defining the term “franchisee”’ 7 providing applicability; providing an effective date. 8 9 Be It Enacted by the Legislature of the State of Florida: 10 11 Section 1. Paragraph (b) of subsection (13) of section 12 202.11, Florida Statutes, is amended to read: 13 202.11 Definitions.—As used in this chapter, the term: 14 (13) “Sales price” means the total amount charged in money 15 or other consideration by a dealer for the sale of the right or 16 privilege of using communications services in this state, 17 including any property or other service, not described in 18 paragraph (a), which is part of the sale and for which the 19 charge is not separately itemized on a customer’s bill or 20 separately allocated under subparagraph (b)8. The sales price of 21 communications services may not be reduced by any separately 22 identified components of the charge which constitute expenses of 23 the dealer, including, but not limited to, sales taxes on goods 24 or services purchased by the dealer, property taxes, taxes 25 measured by net income, and universal-service fund fees. 26 (b) The sales price of communications services does not 27 include charges for any of the following: 28 1. An excise tax, sales tax, or similar tax levied by the 29 United States or any state or local government on the purchase, 30 sale, use, or consumption of any communications service, 31 including, but not limited to, a tax imposed under this chapter 32 or chapter 203 which is permitted or required to be added to the 33 sales price of such service, if the tax is stated separately. 34 2. A fee or assessment levied by the United States or any 35 state or local government, including, but not limited to, 36 regulatory fees and emergency telephone surcharges, which must 37 be added to the price of the service if the fee or assessment is 38 separately stated. 39 3. Communications services paid for by inserting coins into 40 coin-operated communications devices available to the public. 41 4. The sale or recharge of a prepaid calling arrangement. 42 5. The provision of air-to-ground communications services, 43 defined as a radio service provided to a purchaser while on 44 board an aircraft. 45 6. A dealer’s internal use of communications services in 46 connection with its business of providing communications 47 services. 48 7. Charges for property or other services that are not part 49 of the sale of communications services, if such charges are 50 stated separately from the charges for communications services. 51 8. Charges for goods or services that are not subject to 52 tax under this chapter, including Internet access services but 53 excluding any item described in paragraph (a), whichthatare 54 not separately itemized on a customer’s bill, but whichthatcan 55 be reasonably identified from the selling dealer’s books and 56 records kept in the regular course of business. The dealer may 57 support the allocation of charges with books and records kept in 58 the regular course of business covering the dealer’s entire 59 service area, including territories outside this state. 60 9. The sale of communications services between a franchisor 61 and its franchisee. This exclusion does not apply to the sale of 62 communications services to a franchisor for its own use. As used 63 in this subparagraph, the term “franchisee” means any entity, 64 including a related company as defined in s. 495.011, using the 65 franchisor’s service mark as defined in s. 495.011, whether by 66 license, management agreement, or by a subsidiary or affiliate 67 of the franchisor. 68 Section 2. This act is a clarification of existing law, and 69 no tax may be assessed or collected with respect to any charge 70 or portion thereof described in s. 202.11(13)(b), Florida 71 Statutes, as amended by this act, for periods before or after 72 the effective date of this act. 73 Section 3. This act shall take effect upon becoming a law.