Senate Bill sb1610e1

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  1                      A bill to be entitled

  2         An act relating to the communications services

  3         tax; amending s. 202.125, F.S., relating to the

  4         tax exemption on the sale of communications

  5         services to religious or educational

  6         institutions; providing definitions to conform

  7         such exemption to the sales tax exemption

  8         provided for these institutions; creating s.

  9         202.151, F.S.; clarifying the imposition of a

10         use tax on certain purchases of communications

11         services; amending s. 202.16, F.S.; providing

12         an exception to the requirement that dealers

13         separately state the communications services

14         tax on bills and invoices; creating s. 202.205,

15         F.S.; providing a transition rule for counties

16         and municipalities that reduced the local

17         communications services tax on a specified

18         date; amending s. 202.22, F.S.; clarifying

19         provisions governing the electronic databases

20         used to determine local tax situs for the

21         communications services tax; repealing s.

22         212.05(1)(g), F.S., relating to a sales tax on

23         certain substitute telecommunications

24         equipment; amending s. 337.401, F.S.; changing

25         the date on which local governments must notify

26         dealers that provide communications services of

27         changes in permit fees; revising provisions

28         relating to charges for the use of

29         rights-of-way; defining the term "dealer";

30         amending s. 365.172, F.S.; clarifying that the

31         E911 fee applies to certain customers whose


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  1         place of primary use is within the state;

  2         specifying that certain definitions applicable

  3         to the Communications Services Tax

  4         Simplification Law apply to the E911 fee;

  5         amending ss. 212.0501, 212.08, 212.20, 509.032,

  6         561.1105, F.S., relating to the tax on diesel

  7         fuel, a tax exemption for professional

  8         services, distribution of taxes, and tax

  9         certificates; conforming cross-references to

10         changes made by the act; specifying that

11         certain provisions of the act are remedial in

12         nature and intended to clarify the law in

13         effect on the effective date of the act;

14         requiring the Department of Revenue to submit a

15         report on the accuracy of the 2001 state

16         communications services tax rates and local

17         communications services tax conversion rates to

18         the Governor, the President of the Senate, and

19         the Speaker of the House of Representatives;

20         providing effective dates.

21

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

23

24         Section 1.  Subsection (4) of section 202.125, Florida

25  Statutes, is amended to read:

26         202.125  Sales of communications services; specified

27  exemptions.--

28         (4)  The sale of communications services to a religious

29  institution or educational institution organization that is

30  exempt from federal income tax under s. 501(c)(3) of the

31  Internal Revenue Code, or by a religious institution that is


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  1  exempt from federal income tax under s. 501(c)(3) of the

  2  Internal Revenue Code having an established physical place for

  3  worship at which nonprofit religious services and activities

  4  are regularly conducted and carried on, is exempt from the

  5  taxes imposed or administered pursuant to ss. 202.12 and

  6  202.19. As used in this subsection, the term:

  7         (a)  "Religious institution" means an organization

  8  owning and operating an established physical place for worship

  9  at which nonprofit religious services and activities are

10  regularly conducted. The term also includes:

11         1.  Any nonprofit corporation the sole purpose of which

12  is to provide free transportation services to religious

13  institution members, their families, and other religious

14  institution attendees.

15         2.  Any nonprofit state, district, or other governing

16  or administrative office the function of which is to assist or

17  regulate the customary activities of religious institutions.

18         3.  Any nonprofit corporation that owns and operates a

19  television station in this state of which at least 90 percent

20  of the programming consists of programs of a religious nature

21  and the financial support for which, exclusive of receipts for

22  broadcasting from other nonprofit organizations, is

23  predominantly from contributions from the public.

24         4.  Any nonprofit corporation the primary activity of

25  which is making and distributing audio recordings of religious

26  scriptures and teachings to blind or visually impaired persons

27  at no charge.

28         5.  Any nonprofit corporation the sole or primary

29  purpose of which is to provide, upon invitation, nonprofit

30  religious services, evangelistic services, religious

31  education, administrative assistance, or missionary assistance


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  1  for a religious institution, or established physical place of

  2  worship at which nonprofit religious services and activities

  3  are regularly conducted.

  4         (b)  "Educational institution" includes:

  5         1.  Any state tax-supported, parochial, church, and

  6  nonprofit private school, college, or university that conducts

  7  regular classes and courses of study required for

  8  accreditation by or membership in the Southern Association of

  9  Colleges and Schools, the Florida Council of Independent

10  Schools, or the Florida Association of Christian Colleges and

11  Schools, Inc.;

12         2.  Any nonprofit private school that conducts regular

13  classes and courses of study which are accepted for continuing

14  education credit by a board of the Division of Medical Quality

15  Assurance of the Department of Health;

16         3.  Any nonprofit library;

17         4.  Any nonprofit art gallery;

18         5.  Any nonprofit performing arts center that provides

19  educational programs to school children, which programs

20  involve performances or other educational activities at the

21  performing arts center and serve a minimum of 50,000 school

22  children a year; and

23         6.  Any nonprofit museum that is open to the public.

24         Section 2.  Section 202.151, Florida Statutes, is

25  created to read:

26         202.151  Use tax imposed on certain purchasers of

27  communications services.--Any person who purchases

28  communications services that are otherwise taxable under ss.

29  202.12 and 202.19 at retail from a seller in another state,

30  territory, the District of Columbia, or any foreign country

31  shall report and remit to the department the taxes imposed by


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  1  or administered under this chapter on the communications

  2  services purchased and used, the same as if such

  3  communications services had been purchased at retail from a

  4  dealer in this state. This section does not apply if the

  5  out-of-state seller registers as a dealer in this state and

  6  collects from the purchaser the taxes imposed by or

  7  administered under this chapter. The department may adopt

  8  rules governing the reporting and remitting of communications

  9  services taxes by purchasers who purchase from out-of-state

10  sellers who do not collect the taxes imposed by or

11  administered under this chapter.

12         Section 3.  Subsection (1) of section 202.16, Florida

13  Statutes, is amended to read:

14         202.16  Payment.--The taxes imposed or administered

15  under this chapter and chapter 203 shall be collected from all

16  dealers of taxable communications services on the sale at

17  retail in this state of communications services taxable under

18  this chapter and chapter 203. The full amount of the taxes on

19  a credit sale, installment sale, or sale made on any kind of

20  deferred payment plan is due at the moment of the transaction

21  in the same manner as a cash sale.

22         (1)(a)  Except as otherwise provided in ss.

23  202.12(1)(b) and 202.15, the taxes collected under this

24  chapter and chapter 203 shall be paid by the purchaser of the

25  communications service and shall be collected from such person

26  by the dealer of communications services.

27         (b)  Each dealer of communications services selling

28  communications services in this state shall collect the taxes

29  imposed under this chapter and chapter 203 from the purchaser

30  of such services, and such taxes must be stated separately

31  from all other charges on the bill or invoice. Notwithstanding


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  1  the requirement in this paragraph and in s. 202.35 to

  2  separately state such taxes, a public lodging establishment

  3  licensed under chapter 509 may notify purchasers of the taxes

  4  imposed under this chapter on a notice in a guest room posted

  5  in a manner consistent with the requirements of s. 509.2015,

  6  rather than separately stating the taxes on the guest bill or

  7  invoice.

  8         Section 4.  Section 202.205, Florida Statutes, is

  9  created to read:

10         202.205  Transition rule for local

11  rates.--Notwithstanding s. 202.21, the rate of the local

12  communications services tax for a county or municipality that

13  adopted a resolution or ordinance reducing the rate of tax

14  effective October 1, 2002, and that notified the Department of

15  Revenue of the reduced rate by mail postmarked by July 16,

16  2001, shall be the adopted reduced rate beginning October 1,

17  2002. However, the local governing body of the county or

18  municipality may change the local rate effective January 1,

19  2003, in the manner provided in this chapter.

20         Section 5.  Paragraph (b) of subsection (2) and

21  paragraphs (a) and (g) of subsection (3) of section 202.22,

22  Florida Statutes, are amended to read:

23         202.22  Determination of local tax situs.--

24         (2)

25         (b)1.  Each local taxing jurisdiction shall furnish to

26  the department all information needed to create and update the

27  electronic database, including changes in service addresses,

28  annexations, incorporations, reorganizations, and any other

29  changes in jurisdictional boundaries. The information

30  furnished to the department must specify an effective date,

31  which must be the next ensuing January 1 or July 1, and such


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  1  information must be furnished to the department at least 120

  2  days prior to the effective date. However, the requirement

  3  that counties submit information pursuant to this paragraph

  4  shall be subject to appropriation.

  5         2.  The department shall update the electronic database

  6  in accordance with the information furnished by local taxing

  7  jurisdictions under subparagraph 1. Each update must specify

  8  the effective date as the next ensuing January 1 or July 1 and

  9  must be posted by the department on a website not less than 90

10  days prior to the effective date. A substantially affected

11  person may provide notice to the database administrator of an

12  objection to information contained in the electronic database.

13  If an objection is supported by competent evidence, the

14  department shall forward the evidence to the affected local

15  taxing jurisdictions and update the electronic database in

16  accordance with the determination furnished by local taxing

17  jurisdictions to the department.  The department shall also

18  furnish the update on magnetic or electronic media to any

19  dealer of communications services or vendor who requests the

20  update on such media. However, the department may collect a

21  fee from the dealer of communications services which does not

22  exceed the actual cost of furnishing the update on magnetic or

23  electronic media. Information contained in the electronic

24  database is conclusive for purposes of this chapter. The

25  electronic database is not an order, a rule, or a policy of

26  general applicability.

27         3.  Each update must identify the additions, deletions,

28  and other changes to the preceding version of the database.

29  Each dealer of communications services shall be required to

30  collect and remit local communications services taxes imposed

31  under this chapter only for those service addresses that are


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  1  contained in the database and for which all of the elements

  2  required by this subsection are included in the database.

  3         (3)  For purposes of this section, a database must be

  4  certified by the department pursuant to rules that implement

  5  the following criteria and procedures:

  6         (a)  The database must assign street addresses, address

  7  ranges, post office boxes, or post office box ranges to the

  8  proper jurisdiction with an overall accuracy rate of 95

  9  percent at a 95 percent level of confidence, as determined

10  through a statistically reliable sample. The accuracy must be

11  measured based on the entire geographic area within the state

12  covered by such database state or, if the service area of the

13  dealer does not encompass the entire state, based on the

14  dealer's entire service area.

15         (g)  Notwithstanding any provision of law to the

16  contrary, if a dealer submits an application for certification

17  on or before the later of October 1, 2001, or the date that

18  which is 30 days after the date on which the applicable

19  department rule becomes effective, the 180-day time limit set

20  forth in paragraph (d) does not apply. During the time the

21  application is under consideration by the department or, if

22  the application is denied, until the denial is no longer

23  subject to administrative or judicial review or until a later

24  date fixed by order of the reviewing court and such

25  application is neither approved nor denied within the time

26  period set forth in paragraph (d):

27         1.  For purposes of computing the amount of the

28  deduction to which such dealer is entitled under s. 202.28,

29  the dealer shall be deemed to have used a certified database

30  pursuant to paragraph (1)(b), until such time as the

31  application for certification is denied.


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  1         2.  In the event that such application is approved,

  2  such approval shall be deemed to have been effective on the

  3  date of the application or October 1, 2001, whichever is

  4  later.

  5         Section 6.  Paragraph (g) of subsection (1) of section

  6  212.05, Florida Statutes, as amended by section 38 of chapter

  7  2001-140, Laws of Florida, is repealed.

  8         Section 7.  Paragraph (j) of subsection (3) and

  9  subsections (4) and (6) of section 337.401, Florida Statutes,

10  are amended to read:

11         337.401  Use of right-of-way for utilities subject to

12  regulation; permit; fees.--

13         (3)

14         (j)  Pursuant to this paragraph, any county or

15  municipality may by ordinance change either its election made

16  on or before July 16, 2001, under paragraph (c) or an election

17  made under this paragraph.

18         1.a.  If a municipality or charter county changes its

19  election under this paragraph in order to exercise its

20  authority to require and collect permit fees in accordance

21  with this subsection, the rate of the local communications

22  services tax imposed by such jurisdiction pursuant to ss.

23  202.19 and 202.20 shall automatically be reduced by the sum of

24  0.12 percent plus the percentage, if any, by which such rate

25  was increased pursuant to sub-subparagraph (c)1.b.

26         b.  If a municipality or charter county changes its

27  election under this paragraph in order to discontinue

28  requiring and collecting permit fees, the rate of the local

29  communications services tax imposed by such jurisdiction

30  pursuant to ss. 202.19 and 202.20 may be increased by

31


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  1  ordinance or resolution by an amount not to exceed 0.24

  2  percent.

  3         2.a.  If a noncharter county changes its election under

  4  this paragraph in order to exercise its authority to require

  5  and collect permit fees in accordance with this subsection,

  6  the rate of the local communications services tax imposed by

  7  such jurisdiction pursuant to ss. 202.19 and 202.20 shall

  8  automatically be reduced by the percentage, if any, by which

  9  such rate was increased pursuant to sub-subparagraph (c)2.b.

10         b.  If a noncharter county changes its election under

11  this paragraph in order to discontinue requiring and

12  collecting permit fees, the rate of the local communications

13  services tax imposed by such jurisdiction pursuant to ss.

14  202.19 and 202.20 may be increased by ordinance or resolution

15  by an amount not to exceed 0.24 percent.

16         3.a.  Any change of election pursuant to this paragraph

17  and any tax rate change resulting from such change of election

18  shall be subject to the notice requirements of s. 202.21;

19  however, no such change of election shall become effective

20  prior to January 1, 2003.

21         b.  Any county or municipality changing its election

22  under this paragraph in order to exercise its authority to

23  require and collect permit fees shall, in addition to

24  complying with the notice requirements under s. 202.21,

25  provide to all dealers providing communications services in

26  such jurisdiction written notice of such change of election by

27  September July 1 immediately preceding the January 1 on which

28  such change of election becomes effective. For purposes of

29  this sub-subparagraph, dealers providing communications

30  services in such jurisdiction shall include every dealer

31  reporting tax to such jurisdiction pursuant to s. 202.37 on


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  1  the return required under s. 202.27 to be filed on or before

  2  the 20th day of May immediately preceding the January 1 on

  3  which such change of election becomes effective.

  4         (4)  As used in this section, "communications services"

  5  and "dealer" have has the same meaning ascribed in chapter

  6  202, and "cable service" has the same meaning ascribed in 47

  7  U.S.C. s. 522, as amended.

  8         (6)(a)  As used in this subsection, the term:

  9         1.  "Pass-through provider" means any person who places

10  or maintains a communications facility in the roads or

11  rights-of-way of a municipality or county that levies a tax

12  pursuant to chapter 202 and who does not remit taxes imposed

13  by that municipality or county pursuant to chapter 202.

14         2.  "Communications facility" means a facility that may

15  be used to provide communications services. Multiple cables,

16  conduits, strands, or fibers located within the same conduit

17  shall be considered one communications facility for purposes

18  of this subsection.

19         (b)  A municipality that levies a tax pursuant to

20  chapter 202 may charge a pass-through provider that places or

21  maintains a communications facility in the municipality's

22  roads or rights-of-way an annual amount not to exceed $500 per

23  linear mile or portion thereof. A municipality's roads or

24  rights-of-way do not include roads or rights-of-way that

25  extend in or through the municipality but that are state,

26  county, or another authority's roads or rights-of-way.

27         (c)  A county that levies a tax pursuant to chapter 202

28  may charge a pass-through provider that places or maintains a

29  communications facility in the county's roads or

30  rights-of-way, including county roads or rights-of-way within

31  a municipality in the county, an annual amount not to exceed


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  1  $500 per linear mile or portion thereof. However, a county

  2  shall not impose a charge for any linear miles, or portions

  3  thereof, of county roads or rights-of-way where a

  4  communications facility is placed which extend through any

  5  municipality within the county to which the pass-through

  6  provider remits a tax imposed pursuant to chapter 202. A

  7  county's roads or rights-of-way do not include roads or

  8  rights-of-way that extend in or through the county but that

  9  are state, municipal, or another authority's roads or

10  rights-of-way.

11         (d)  The amounts charged pursuant to this subsection

12  shall be based on the linear miles of roads or rights-of-way

13  where a communications facility is placed, not based on a

14  summation of the lengths of individual cables, conduits,

15  strands, or fibers. The amounts referred to in this subsection

16  may be charged only once annually and only to one person

17  annually for any communications facility. A municipality or

18  county shall discontinue charging such amounts to a person

19  that has ceased to be a pass-through provider. Any annual

20  amounts charged shall be reduced for a prorated portion of any

21  12-month period during which the person remits taxes imposed

22  by the municipality or county pursuant to chapter 202. Any

23  excess amounts paid to a municipality or county shall be

24  refunded to the person upon written notice of the excess to

25  the municipality or county.

26         (e)  This subsection does not alter any provision of

27  this section or s. 202.24 relating to taxes, fees, or other

28  charges or impositions by a municipality or county on a dealer

29  of communications services or authorize any charges to be

30  assessed on a dealer of communications services, except as

31  specifically set forth in this subsection. A municipality or


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  1  county may not charge a pass-through provider any amounts

  2  other than the charges under this subsection as a condition to

  3  the placement or maintenance of a communications facility in

  4  the roads or rights-of-way of a municipality or county by a

  5  pass-through provider, except that a municipality or county

  6  may impose permit fees on a pass-through provider consistent

  7  with paragraph (3)(c) if the municipality or county elects to

  8  exercise its authority to collect permit fees under paragraph

  9  (3)(c).

10         (f)  The charges under this subsection do not apply to

11  communications facilities placed in a municipality's or

12  county's rights-of-way before the effective date of this

13  subsection with permission from the municipality or county, if

14  any was required, except to the extent that the facilities of

15  a pass-through provider were subject to per-linear-foot or

16  per-mile charges in effect as of October 1, 2001, in which

17  case the municipality or county may impose on a pass-through

18  provider only charges consistent with paragraph (b) or

19  paragraph (c) for such facilities. Notwithstanding the

20  foregoing, this subsection does not impair any written

21  agreement between a pass-through provider and a municipality

22  or county imposing per-linear-foot or per-mile charges for

23  communications facilities placed in municipal or county roads

24  or rights-of-way which was in effect before the effective date

25  of this subsection. Upon the termination or expiration of any

26  such written agreement, any charges imposed must be consistent

27  with paragraph (b) or paragraph (c). Notwithstanding the

28  foregoing, until October 1, 2005, this subsection shall not

29  affect a municipality or county continuing to impose charges

30  in excess of the charges authorized in this subsection on

31  facilities of a pass-through provider that is not a dealer of


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  1  communications services in the state under chapter 202, but

  2  only to the extent that such charges were imposed by municipal

  3  or county ordinance or resolution adopted before February 1,

  4  2002. Effective October 1, 2005, any charges imposed must be

  5  consistent with paragraph (b) or paragraph (c).

  6         (g)  The charges authorized in this subsection shall

  7  not be applied with respect to any communications facility

  8  that is used exclusively for the internal communications of an

  9  electric utility or other person in the business of

10  transmitting or distributing electric energy. If a

11  municipality or county imposes any amount on a person or

12  entity other than a provider of communications services in

13  connection with the placement or maintenance by such person or

14  entity of a communication facility in municipal or county

15  roads or rights-of-way, such amounts, if any, shall not exceed

16  the highest amount, if any, the municipality or county is

17  imposing in such context as of the date this act becomes a

18  law.  If a municipality or county is not imposing any amount

19  in such context as of the date this act becomes a law, any

20  amount, if any, imposed thereafter, shall not be less than

21  $500 per linear mile, payable annually, of any cable, fiber

22  optic, or other pathway that makes physical use of the

23  municipal or county right-of-way.  Any excess of $500 shall be

24  applied in a nondiscriminatory manner and shall not exceed the

25  sum of:

26         (a)  Costs directly related to the inconvenience or

27  impairment solely caused by the disturbance to the municipal

28  or county right-of-way;

29         (b)  The reasonable cost of the regulatory activity of

30  the municipality or county; and

31


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  1         (c)  The proportionate share of cost of land for such

  2  street, alley, or other public way attributable to utilization

  3  of the right-of-way by a person or entity other than a

  4  provider of communications services.

  5

  6  For purposes of this subsection, the term communications

  7  facility shall not include communications facilities owned,

  8  operated, or used by electric utilities or regional

  9  transmission organizations exclusively for internal

10  communications purposes. Except as specifically provided

11  herein, municipalities and counties retain all existing

12  authority, if any, to collect fees relating to public roads

13  and rights-of-way from electric utilities or regional

14  transmission organizations, and nothing in this subsection

15  shall alter this authority.

16         Section 8.  Effective with respect to bills issued by

17  providers of mobile telecommunications services after August

18  1, 2002, subsections (8) and (9) of section 365.172, Florida

19  Statutes, are amended to read:

20         365.172  Wireless emergency telephone number "E911."--

21         (8)  WIRELESS E911 FEE.--

22         (a)  Each home service provider shall collect a monthly

23  fee imposed on each customer whose place of primary use is

24  service subscriber who has a service number that has a billing

25  address within this state. The rate of the fee shall be 50

26  cents per month per each service number, beginning August 1,

27  1999. The fee shall apply uniformly and be imposed throughout

28  the state.

29         (b)  The fee is established to ensure full recovery for

30  providers and for counties, over a reasonable period, of the

31


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  1  costs associated with developing and maintaining an E911

  2  system on a technologically and competitively neutral basis.

  3         (c)  After July 1, 2001, the board may adjust the

  4  allocation percentages provided in s. 365.173 or reduce the

  5  amount of the fee, or both, if necessary to ensure full cost

  6  recovery or prevent overrecovery of costs incurred in the

  7  provision of E911 service, including costs incurred or

  8  projected to be incurred to comply with the order. Any new

  9  allocation percentages or reduced fee may not be adjusted for

10  2 years. The fee may not exceed 50 cents per month per each

11  service number.

12         (d)  State and local taxes do not apply to the fee.

13         (e)  A local government may not levy any additional fee

14  on wireless providers or subscribers for the provision of E911

15  service.

16         (9)  MANAGEMENT OF FUNDS.--

17         (a)  Each provider, as a part of its monthly billing

18  process, shall collect the fee imposed under subsection (8).

19  The provider may list the fee as a separate entry on each

20  bill, in which case the fee must be identified as a fee for

21  E911 services. A provider shall remit the fee only if the fee

22  is paid by the subscriber. If a provider receives a partial

23  payment for a monthly bill from a subscriber, the amount

24  received shall first be applied to the payment due the

25  provider for the provision of telecommunications service.

26         (b)  A provider is not obligated to take any legal

27  action to enforce collection of the fees for which any

28  subscriber is billed. The provider shall provide to the board

29  each quarter a list of the names, addresses, and service

30  numbers of all subscribers who have indicated to the provider

31  their refusal to pay the fee.


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  1         (c)  Each provider may retain 1 percent of the amount

  2  of the fees collected as reimbursement for the administrative

  3  costs incurred by the provider to bill, collect, and remit the

  4  fee. The remainder shall be delivered to the board and

  5  deposited in the fund. The board shall distribute the

  6  remainder pursuant to s. 365.173.

  7         (d)  Each provider shall deliver revenues from the fee

  8  to the board within 60 days after the end of the month in

  9  which the fee was billed, together with a monthly report of

10  the number of billing addresses of wireless customers whose

11  place of primary use is subscribers in each county. A provider

12  may apply to the board for a refund of, or may take a credit

13  for, any fees remitted to the board which are not collected by

14  the provider within 6 months following the month in which the

15  fees are charged off for federal income tax purposes as bad

16  debt. The board may waive the requirement that the fees and

17  number of customers whose place of primary use is in each

18  county billing addresses be submitted to the board each month,

19  and authorize a provider to submit the fees and number of

20  customers billing addresses quarterly if the provider

21  demonstrates that such waiver is necessary and justified.

22         (e)  For purposes of this section, the definitions

23  contained in s. 202.11 and the provisions of s. 202.155 apply

24  in the same manner and to the same extent as such definitions

25  and provisions apply to the taxes levied pursuant to chapter

26  202 on mobile communications services.

27         (f)(e)  As used is this subsection, the term "provider"

28  includes any person or entity that resells wireless service

29  and was not assessed the fee by its resale supplier.

30         Section 9.  Subsection (4) of section 212.0501, Florida

31  Statutes, is amended to read:


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  1         212.0501  Tax on diesel fuel for business purposes;

  2  purchase, storage, and use.--

  3         (4)  Except as otherwise provided in s. 212.05(1)(k) s.

  4  212.05(1)(l), a licensed sales tax dealer may elect to collect

  5  such tax pursuant to this chapter on all sales to each person

  6  who purchases diesel fuel for consumption, use, or storage by

  7  a trade or business.  When the licensed sales tax dealer has

  8  not elected to collect such tax on all such sales, the

  9  purchaser or ultimate consumer shall be liable for the payment

10  of tax directly to the state.

11         Section 10.  Paragraph (v) of subsection (7) of section

12  212.08, Florida Statutes, is amended to read:

13         212.08  Sales, rental, use, consumption, distribution,

14  and storage tax; specified exemptions.--The sale at retail,

15  the rental, the use, the consumption, the distribution, and

16  the storage to be used or consumed in this state of the

17  following are hereby specifically exempt from the tax imposed

18  by this chapter.

19         (7)  MISCELLANEOUS EXEMPTIONS.--

20         (v)  Professional services.--

21         1.  Also exempted are professional, insurance, or

22  personal service transactions that involve sales as

23  inconsequential elements for which no separate charges are

24  made.

25         2.  The personal service transactions exempted pursuant

26  to subparagraph 1. do not exempt the sale of information

27  services involving the furnishing of printed, mimeographed, or

28  multigraphed matter, or matter duplicating written or printed

29  matter in any other manner, other than professional services

30  and services of employees, agents, or other persons acting in

31  a representative or fiduciary capacity or information services


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  1  furnished to newspapers and radio and television stations.  As

  2  used in this subparagraph, the term "information services"

  3  includes the services of collecting, compiling, or analyzing

  4  information of any kind or nature and furnishing reports

  5  thereof to other persons.

  6         3.  This exemption does not apply to any service

  7  warranty transaction taxable under s. 212.0506.

  8         4.  This exemption does not apply to any service

  9  transaction taxable under s. 212.05(1)(i) s. 212.05(1)(j).

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11  Exemptions provided to any entity by this subsection shall not

12  inure to any transaction otherwise taxable under this chapter

13  when payment is made by a representative or employee of such

14  entity by any means, including, but not limited to, cash,

15  check, or credit card even when that representative or

16  employee is subsequently reimbursed by such entity.

17         Section 11.  Paragraph (c) of subsection (6) of section

18  212.20, Florida Statutes, is amended to read:

19         212.20  Funds collected, disposition; additional powers

20  of department; operational expense; refund of taxes

21  adjudicated unconstitutionally collected.--

22         (6)  Distribution of all proceeds under this chapter

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

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

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

26  the General Revenue Fund.

27         Section 12.  Paragraph (f) of subsection (2) of section

28  509.032, Florida Statutes, is amended to read:

29         509.032  Duties.--

30         (2)  INSPECTION OF PREMISES.--

31


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  1         (f)  In conducting inspections of establishments

  2  licensed under this chapter, the division shall determine if

  3  each coin-operated amusement machine that is operated on the

  4  premises of a licensed establishment is properly registered

  5  with the Department of Revenue.  Each month the division shall

  6  report to the Department of Revenue the sales tax registration

  7  number of the operator of any licensed establishment that has

  8  on location a coin-operated amusement machine and that does

  9  not have an identifying certificate conspicuously displayed as

10  required by s. 212.05(1)(h) s. 212.05(1)(i).

11         Section 13.  Section 561.1105, Florida Statutes, is

12  amended to read:

13         561.1105  Inspection of licensed premises;

14  coin-operated amusement machines.--In conducting inspections

15  of establishments licensed under the Beverage Law, the

16  division shall determine if each coin-operated amusement

17  machine that is operated on the licensed premises is properly

18  registered with the Department of Revenue. Each month, the

19  division shall report to the Department of Revenue the sales

20  tax registration number of the operator of any licensed

21  premises that has on location a coin-operated amusement

22  machine and that does not have an identifying certificate

23  conspicuously displayed as required by s. 212.05(1)(h) s.

24  212.05(1)(i).

25         Section 14.  The amendments to sections 202.125(4),

26  202.22(2)(b) and (3)(a) and (g), and 212.05(1)(g), Florida

27  Statutes, contained in this act are remedial in nature and

28  intended to clarify the law in effect on the effective date of

29  this act.

30         Section 15.  By February 1, 2003, the Department of

31  Revenue shall submit a report on the accuracy of the state


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  1  communications services tax rates and the local communication

  2  services tax conversion rates imposed, authorized, or

  3  administered pursuant to section 202.20, Florida Statutes, to

  4  the Governor, the President of the Senate, and the Speaker of

  5  the House of Representatives. The report shall include a

  6  comparison of the available collection data and updated

  7  estimates for the sales tax portion, the gross receipts tax

  8  portion, and each local government's local portion of the

  9  communications services tax.

10         Section 16.  Except as otherwise expressly provided in

11  this act, this act shall take effect upon becoming a law.

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