Senate Bill sb1258

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    Florida Senate - 2002                                  SB 1258

    By Senator Peaden





    1-1296-02                                               See HB

  1                      A bill to be entitled

  2         An act relating to taxation of communications

  3         services; amending ss. 202.12 and 202.125,

  4         F.S.; exempting the sale of cable services and

  5         direct-to-home satellite services to

  6         residential households from the 6.8 percent tax

  7         on the sale of communications services;

  8         amending s. 202.18, F.S.; revising the

  9         distribution of the tax on the sale of

10         direct-to-home satellite services, to conform;

11         amending s. 202.19, F.S., relating to local

12         communications services taxes, to conform;

13         amending s. 212.20, F.S.; correcting

14         references; providing an effective date.

15

16  Be It Enacted by the Legislature of the State of Florida:

17

18         Section 1.  Paragraph (c) of subsection (1) of section

19  202.12, Florida Statutes, is amended to read:

20         202.12  Sales of communications services.--The

21  Legislature finds that every person who engages in the

22  business of selling communications services at retail in this

23  state is exercising a taxable privilege. It is the intent of

24  the Legislature that the tax imposed by chapter 203 be

25  administered as provided in this chapter.

26         (1)  For the exercise of such privilege, a tax is

27  levied on each taxable transaction, and the tax is due and

28  payable as follows:

29         (c)  At the rate of 4 percent on the retail sales price

30  of any direct-to-home satellite service sold to a residential

31  household and received in this state, and at the rate of 10.8

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    Florida Senate - 2002                                  SB 1258
    1-1296-02                                               See HB




  1  percent on the retail sales price of any other direct-to-home

  2  satellite service received in this state. The proceeds of the

  3  tax imposed under this paragraph shall be accounted for and

  4  distributed in accordance with s. 202.18(2). The gross

  5  receipts tax imposed by chapter 203 shall be collected on the

  6  same taxable transactions and remitted with the tax imposed by

  7  this paragraph.

  8         Section 2.  Subsection (1) of section 202.125, Florida

  9  Statutes, is amended to read:

10         202.125  Sales of communications services; specified

11  exemptions.--

12         (1)  The separately stated sales price of

13  communications services sold to residential households is

14  exempt from the tax imposed by s. 202.12. This exemption shall

15  not apply to any residence that constitutes all or part of a

16  public lodging establishment as defined in chapter 509, or any

17  mobile communications service, any cable service, or any

18  direct-to-home satellite service.

19         Section 3.  Subsection (2) of section 202.18, Florida

20  Statutes, is amended to read:

21         202.18  Allocation and disposition of tax

22  proceeds.--The proceeds of the communications services taxes

23  remitted under this chapter shall be treated as follows:

24         (2)  The proceeds of the taxes remitted under s.

25  202.12(1)(c) shall be divided as follows:

26         (a)  With respect to the tax levied at the rate of 10.8

27  percent:

28         1.(a)  The portion of such proceeds which constitutes

29  gross receipts taxes, imposed at the rate prescribed in

30  chapter 203, shall be deposited as provided by law and in

31  accordance with s. 9, Art. XII of the State Constitution.

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    Florida Senate - 2002                                  SB 1258
    1-1296-02                                               See HB




  1         2.(b)  Sixty-three percent of the remainder shall be

  2  allocated to the state and distributed pursuant to s.

  3  212.20(6), except that the proceeds allocated pursuant to s.

  4  212.20(6)(d)3. shall be prorated to the participating counties

  5  in the same proportion as that month's collection of the taxes

  6  and fees imposed pursuant to chapter 212 and paragraph (1)(b).

  7         3.a.(c)1.  During each calendar year, the remaining

  8  portion of such proceeds shall be transferred to the Local

  9  Government Half-cent Sales Tax Clearing Trust Fund and shall

10  be allocated in the same proportion as the allocation of total

11  receipts of the half-cent sales tax under s. 218.61 and the

12  emergency distribution under s. 218.65 in the prior state

13  fiscal year. However, during calendar year 2001, state fiscal

14  year 2000-2001 proportions shall be used.

15         b.2.  The proportion of the proceeds allocated based on

16  the emergency distribution under s. 218.65 shall be

17  distributed pursuant to s. 218.65.

18         c.3.  In each calendar year, the proportion of the

19  proceeds allocated based on the half-cent sales tax under s.

20  218.61 shall be allocated to each county in the same

21  proportion as the county's percentage of total sales tax

22  allocation for the prior state fiscal year and distributed

23  pursuant to s. 218.62, except that for calendar year 2001,

24  state fiscal year 2000-2001 proportions shall be used.

25         d.4.  The department shall distribute the appropriate

26  amount to each municipality and county each month at the same

27  time that local communications services taxes are distributed

28  pursuant to subsection (3).

29         (b)  With respect to the tax levied at the rate of 4

30  percent:

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    Florida Senate - 2002                                  SB 1258
    1-1296-02                                               See HB




  1         1.  The portion of such proceeds which constitutes

  2  gross receipts taxes, imposed at the rate prescribed in

  3  chapter 203, shall be deposited as provided by law and in

  4  accordance with s. 9, Art. XII of the State Constitution.

  5         2.a.  During each calendar year, the remaining portion

  6  of such proceeds shall be transferred to the Local Government

  7  Half-cent Sales Tax Clearing Trust Fund and shall be allocated

  8  in the same proportion as the allocation of total receipts of

  9  the half-cent sales tax under s. 218.61 and the emergency

10  distribution under s. 218.65 in the prior state fiscal year.

11         b.  The proportion of the proceeds allocated based on

12  the emergency distribution under s. 218.65 shall be

13  distributed pursuant to s. 218.65.

14         c.  In each calendar year, the proportion of the

15  proceeds allocated based on the half-cent sales tax under s.

16  218.61 shall be allocated to each county in the same

17  proportion as the county's percentage of total sales tax

18  allocation for the prior state fiscal year and distributed

19  pursuant to s. 218.62.

20         d.  The department shall distribute the appropriate

21  amount to each municipality and county each month at the same

22  time that local communications services taxes are distributed

23  pursuant to subsection (3).

24         Section 4.  Subsection (10) of section 202.19, Florida

25  Statutes, is amended to read:

26         202.19  Authorization to impose local communications

27  services tax.--

28         (6)  Notwithstanding any other provision of this

29  section, a tax imposed under this section does not apply to

30  any direct-to-home satellite service.

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    Florida Senate - 2002                                  SB 1258
    1-1296-02                                               See HB




  1         (10)  Notwithstanding any provision of law to the

  2  contrary, the exemption set forth in s. 202.125(1) shall not

  3  apply to a tax imposed by a municipality, school board, or

  4  county pursuant to subsection (4) or subsection (5). With

  5  respect to the amendment made by this act to s. 202.125(1),

  6  cable service sold to residential households shall continue to

  7  be subject to such tax imposed by a municipality, school

  8  board, or county, and direct-to-home satellite service sold to

  9  residential households shall remain exempt pursuant to

10  subsection (6).

11         Section 5.  Subsection (6) of section 212.20, Florida

12  Statutes, is amended to read:

13         212.20  Funds collected, disposition; additional powers

14  of department; operational expense; refund of taxes

15  adjudicated unconstitutionally collected.--

16         (6)  Distribution of all proceeds under this chapter

17  and s. 202.18(1)(b) and (2)(a)2.(b) shall be as follows:

18         (a)  Proceeds from the convention development taxes

19  authorized under s. 212.0305 shall be reallocated to the

20  Convention Development Tax Clearing Trust Fund.

21         (b)  Proceeds from discretionary sales surtaxes imposed

22  pursuant to ss. 212.054 and 212.055 shall be reallocated to

23  the Discretionary Sales Surtax Clearing Trust Fund.

24         (c)  Proceeds from the fees imposed under ss.

25  212.05(1)(i)3. and 212.18(3) shall remain with the General

26  Revenue Fund.

27         (d)  The proceeds of all other taxes and fees imposed

28  pursuant to this chapter or remitted pursuant to s.

29  202.18(1)(b) and (2)(a)2.(b) shall be distributed as follows:

30         1.  In any fiscal year, the greater of $500 million,

31  minus an amount equal to 4.6 percent of the proceeds of the

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    Florida Senate - 2002                                  SB 1258
    1-1296-02                                               See HB




  1  taxes collected pursuant to chapter 201, or 5 percent of all

  2  other taxes and fees imposed pursuant to this chapter or

  3  remitted pursuant to s. 202.18(1)(b) and (2)(a)2.(b) shall be

  4  deposited in monthly installments into the General Revenue

  5  Fund.

  6         2.  Two-tenths of one percent shall be transferred to

  7  the Solid Waste Management Trust Fund.

  8         3.  After the distribution under subparagraphs 1. and

  9  2., 9.653 percent of the amount remitted by a sales tax dealer

10  located within a participating county pursuant to s. 218.61

11  shall be transferred into the Local Government Half-cent Sales

12  Tax Clearing Trust Fund.

13         4.  After the distribution under subparagraphs 1., 2.,

14  and 3., 0.065 percent shall be transferred to the Local

15  Government Half-cent Sales Tax Clearing Trust Fund and

16  distributed pursuant to s. 218.65.

17         5.  For proceeds received after July 1, 2000, and after

18  the distributions under subparagraphs 1., 2., 3., and 4., 2.25

19  percent of the available proceeds pursuant to this paragraph

20  shall be transferred monthly to the Revenue Sharing Trust Fund

21  for Counties pursuant to s. 218.215.

22         6.  For proceeds received after July 1, 2000, and after

23  the distributions under subparagraphs 1., 2., 3., and 4.,

24  1.0715 percent of the available proceeds pursuant to this

25  paragraph shall be transferred monthly to the Revenue Sharing

26  Trust Fund for Municipalities pursuant to s. 218.215. If the

27  total revenue to be distributed pursuant to this subparagraph

28  is at least as great as the amount due from the Revenue

29  Sharing Trust Fund for Municipalities and the Municipal

30  Financial Assistance Trust Fund in state fiscal year

31  1999-2000, no municipality shall receive less than the amount

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    Florida Senate - 2002                                  SB 1258
    1-1296-02                                               See HB




  1  due from the Revenue Sharing Trust Fund for Municipalities and

  2  the Municipal Financial Assistance Trust Fund in state fiscal

  3  year 1999-2000. If the total proceeds to be distributed are

  4  less than the amount received in combination from the Revenue

  5  Sharing Trust Fund for Municipalities and the Municipal

  6  Financial Assistance Trust Fund in state fiscal year

  7  1999-2000, each municipality shall receive an amount

  8  proportionate to the amount it was due in state fiscal year

  9  1999-2000.

10         7.  Of the remaining proceeds:

11         a.  Beginning July 1, 2000, and in each fiscal year

12  thereafter, the sum of $29,915,500 shall be divided into as

13  many equal parts as there are counties in the state, and one

14  part shall be distributed to each county.  The distribution

15  among the several counties shall begin each fiscal year on or

16  before January 5th and shall continue monthly for a total of 4

17  months.  If a local or special law required that any moneys

18  accruing to a county in fiscal year 1999-2000 under the

19  then-existing provisions of s. 550.135 be paid directly to the

20  district school board, special district, or a municipal

21  government, such payment shall continue until such time that

22  the local or special law is amended or repealed.  The state

23  covenants with holders of bonds or other instruments of

24  indebtedness issued by local governments, special districts,

25  or district school boards prior to July 1, 2000, that it is

26  not the intent of this subparagraph to adversely affect the

27  rights of those holders or relieve local governments, special

28  districts, or district school boards of the duty to meet their

29  obligations as a result of previous pledges or assignments or

30  trusts entered into which obligated funds received from the

31  distribution to county governments under then-existing s.

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    Florida Senate - 2002                                  SB 1258
    1-1296-02                                               See HB




  1  550.135.  This distribution specifically is in lieu of funds

  2  distributed under s. 550.135 prior to July 1, 2000.

  3         b.  The department shall distribute $166,667 monthly

  4  pursuant to s. 288.1162 to each applicant that has been

  5  certified as a "facility for a new professional sports

  6  franchise" or a "facility for a retained professional sports

  7  franchise" pursuant to s. 288.1162. Up to $41,667 shall be

  8  distributed monthly by the department to each applicant that

  9  has been certified as a "facility for a retained spring

10  training franchise" pursuant to s. 288.1162; however, not more

11  than $208,335 may be distributed monthly in the aggregate to

12  all certified facilities for a retained spring training

13  franchise. Distributions shall begin 60 days following such

14  certification and shall continue for not more than 30 years.

15  Nothing contained in this paragraph shall be construed to

16  allow an applicant certified pursuant to s. 288.1162 to

17  receive more in distributions than actually expended by the

18  applicant for the public purposes provided for in s.

19  288.1162(6). However, a certified applicant is entitled to

20  receive distributions up to the maximum amount allowable and

21  undistributed under this section for additional renovations

22  and improvements to the facility for the franchise without

23  additional certification.

24         c.  Beginning 30 days after notice by the Office of

25  Tourism, Trade, and Economic Development to the Department of

26  Revenue that an applicant has been certified as the

27  professional golf hall of fame pursuant to s. 288.1168 and is

28  open to the public, $166,667 shall be distributed monthly, for

29  up to 300 months, to the applicant.

30         d.  Beginning 30 days after notice by the Office of

31  Tourism, Trade, and Economic Development to the Department of

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    Florida Senate - 2002                                  SB 1258
    1-1296-02                                               See HB




  1  Revenue that the applicant has been certified as the

  2  International Game Fish Association World Center facility

  3  pursuant to s. 288.1169, and the facility is open to the

  4  public, $83,333 shall be distributed monthly, for up to 168

  5  months, to the applicant. This distribution is subject to

  6  reduction pursuant to s. 288.1169.  A lump sum payment of

  7  $999,996 shall be made, after certification and before July 1,

  8  2000.

  9         8.  All other proceeds shall remain with the General

10  Revenue Fund.

11         Section 6.  This act shall take effect July 1, 2002.

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13            *****************************************

14                          HOUSE SUMMARY

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      Exempts the sale of cable services and direct-to-home
16    satellite services to residential households from the 6.8
      percent tax on the sale of communications services.
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