| 1 | A bill to be entitled |
| 2 | An act relating to county power to levy and collect taxes; |
| 3 | amending s. 125.01, F.S.; including municipal public |
| 4 | service taxes in certain chartered counties under such |
| 5 | power; deleting a referendum exception for a county levy |
| 6 | of ad valorem taxes for municipal services in a municipal |
| 7 | service taxing unit; amending s. 166.231, F.S.; including |
| 8 | certain chartered counties under provisions authorizing |
| 9 | imposition of a public service tax on purchases of |
| 10 | electricity, gas, and water; providing an effective date. |
| 11 |
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| 12 | Be It Enacted by the Legislature of the State of Florida: |
| 13 |
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| 14 | Section 1. Paragraph (r) of subsection (1) of section |
| 15 | 125.01, Florida Statutes, is amended to read: |
| 16 | 125.01 Powers and duties.-- |
| 17 | (1) The legislative and governing body of a county shall |
| 18 | have the power to carry on county government. To the extent not |
| 19 | inconsistent with general or special law, this power includes, |
| 20 | but is not restricted to, the power to: |
| 21 | (r) Levy and collect taxes, including a public service tax |
| 22 | as provided in s. 166.231 in a county that has adopted a charter |
| 23 | pursuant to part II of this chapter, both for county purposes |
| 24 | and for the providing of municipal services within any municipal |
| 25 | service taxing unit, and special assessments; borrow and expend |
| 26 | money; and issue bonds, revenue certificates, and other |
| 27 | obligations of indebtedness, which power shall be exercised in |
| 28 | such manner, and subject to such limitations, as may be provided |
| 29 | by general law. There shall be no referendum required for the |
| 30 | levy by a county of ad valorem taxes, both for county purposes |
| 31 | and for the providing of municipal services within any municipal |
| 32 | service taxing unit. |
| 33 | Section 2. Section 166.231, Florida Statutes, is amended |
| 34 | to read: |
| 35 | 166.231 Municipalities and charter counties; public |
| 36 | service tax.-- |
| 37 | (1)(a) A municipality or a county chartered under part II |
| 38 | of chapter 125 may levy a tax on the purchase of electricity, |
| 39 | metered natural gas, liquefied petroleum gas either metered or |
| 40 | bottled, manufactured gas either metered or bottled, and water |
| 41 | service. Except for those municipalities in which paragraph (c) |
| 42 | applies, the tax shall be levied only upon purchases within the |
| 43 | municipality or such county and shall not exceed 10 percent of |
| 44 | the payments received by the seller of the taxable item from the |
| 45 | purchaser for the purchase of such service. Municipalities |
| 46 | imposing a tax on the purchase of cable television service as of |
| 47 | May 4, 1977, may continue to levy such tax to the extent |
| 48 | necessary to meet all obligations to or for the benefit of |
| 49 | holders of bonds or certificates which were issued prior to May |
| 50 | 4, 1977. Purchase of electricity means the purchase of electric |
| 51 | power by a person who will consume it within the municipality or |
| 52 | such county. |
| 53 | (b) The tax imposed by paragraph (a) shall not be applied |
| 54 | against any fuel adjustment charge, and such charge shall be |
| 55 | separately stated on each bill. The term "fuel adjustment |
| 56 | charge" means all increases in the cost of utility services to |
| 57 | the ultimate consumer resulting from an increase in the cost of |
| 58 | fuel to the utility subsequent to October 1, 1973. |
| 59 | (c) The tax in paragraph (a) on water service may be |
| 60 | applied outside municipal boundaries to property included in a |
| 61 | development of regional impact approved pursuant to s. 380.06, |
| 62 | if agreed to in writing by the developer of such property and |
| 63 | the municipality prior to March 31, 2000. If a tax levied |
| 64 | pursuant to the subsection is challenged, recovery, if any, |
| 65 | shall be limited to moneys paid into an escrow account of the |
| 66 | clerk of the court subsequent to such challenge. |
| 67 | (2) Services competitive with those enumerated in |
| 68 | subsection (1), as defined by ordinance, shall be taxed on a |
| 69 | comparable base at the same rates. However, fuel oil shall be |
| 70 | taxed at a rate not to exceed 4 cents per gallon. However, for |
| 71 | municipalities or counties chartered under part II of chapter |
| 72 | 125 levying less than the maximum rate allowable in subsection |
| 73 | (1), the maximum tax on fuel oil shall bear the same proportion |
| 74 | to 4 cents which the tax rate levied under subsection (1) bears |
| 75 | to the maximum rate allowable in subsection (1). |
| 76 | (3) A municipality or a county chartered under part II of |
| 77 | chapter 125 may exempt from the tax imposed by this section any |
| 78 | amount up to, and including, the first 500 kilowatt hours of |
| 79 | electricity purchased per month for residential use. Such |
| 80 | exemption shall apply to each separate residential unit, |
| 81 | regardless of whether such unit is on a separate meter or a |
| 82 | central meter, and shall be passed on to each individual tenant. |
| 83 | (4)(a) The purchase of natural gas, manufactured gas, or |
| 84 | fuel oil by a public or private utility, either for resale or |
| 85 | for use as fuel in the generation of electricity, or the |
| 86 | purchase of fuel oil or kerosene for use as an aircraft engine |
| 87 | fuel or propellant or for use in internal combustion engines is |
| 88 | exempt from taxation hereunder. |
| 89 | (b) A municipality or a county chartered under part II of |
| 90 | chapter 125 may exempt from the tax imposed by this section the |
| 91 | purchase of metered or bottled gas (natural liquefied petroleum |
| 92 | gas or manufactured) or fuel oil for agricultural purposes. As |
| 93 | used in this paragraph, "agricultural purposes" means bona fide |
| 94 | farming, pasture, grove, or forestry operations, including |
| 95 | horticulture, floriculture, viticulture, dairy, livestock, |
| 96 | poultry, bee, and aquaculture. |
| 97 | (5) Purchases by the United States Government, this state, |
| 98 | and all counties, school districts, and municipalities of the |
| 99 | state, and by public bodies exempted by law or court order, are |
| 100 | exempt from the tax authorized by this section. A municipality |
| 101 | or a county chartered under part II of chapter 125 may exempt |
| 102 | from the tax imposed by this section the purchase of taxable |
| 103 | items by any other public body as defined in s. 1.01, or by a |
| 104 | nonprofit corporation or cooperative association organized under |
| 105 | chapter 617 which provides water utility services to no more |
| 106 | than 13,500 equivalent residential units, ownership of which |
| 107 | will revert to a political subdivision upon retirement of all |
| 108 | outstanding indebtedness, and shall exempt purchases by any |
| 109 | recognized church in this state for use exclusively for church |
| 110 | purposes. |
| 111 | (6) A municipality or a county chartered under part II of |
| 112 | chapter 125 may exempt from the tax imposed by this section any |
| 113 | amount up to, and including, the total amount of electricity, |
| 114 | metered natural gas, liquefied petroleum gas either metered or |
| 115 | bottled, or manufactured gas either metered or bottled purchased |
| 116 | per month, or reduce the rate of taxation on the purchase of |
| 117 | such electricity or gas when purchased by an industrial consumer |
| 118 | which uses the electricity or gas directly in industrial |
| 119 | manufacturing, processing, compounding, or a production process, |
| 120 | at a fixed location in the municipality or county, of items of |
| 121 | tangible personal property for sale. The municipality or county |
| 122 | shall establish the requirements for qualification for this |
| 123 | exemption in the manner prescribed by ordinance. Possession by a |
| 124 | seller of a written certification by the purchaser, certifying |
| 125 | the purchaser's entitlement to an exemption permitted by this |
| 126 | subsection, relieves the seller from the responsibility of |
| 127 | collecting the tax on the nontaxable amounts, and the |
| 128 | municipality or county shall look solely to the purchaser for |
| 129 | recovery of such tax if it determines that the purchaser was not |
| 130 | entitled to the exemption. Any municipality or county granting |
| 131 | an exemption pursuant to this subsection shall grant the |
| 132 | exemption to all companies classified in the same SIC Industry |
| 133 | Major Group Number. |
| 134 | (7) The tax authorized hereunder shall be collected by the |
| 135 | seller of the taxable item from the purchaser at the time of the |
| 136 | payment for such service. The seller shall remit the taxes |
| 137 | collected to the municipality or county in the manner prescribed |
| 138 | by ordinance. Except as otherwise provided in ss. 166.233 and |
| 139 | 166.234, the seller shall be liable for taxes that are due and |
| 140 | not remitted to the municipality or county. This shall not bar |
| 141 | the seller from recovering such taxes from purchasers; however, |
| 142 | the universities in the State University System shall not be |
| 143 | deemed a seller of any item otherwise taxable hereunder when |
| 144 | such item is provided to university residences incidental to the |
| 145 | provision of educational services. |
| 146 | (8)(a) Beginning July 1, 1995, a municipality may by |
| 147 | ordinance exempt not less than 50 percent of the tax imposed |
| 148 | under this section on purchasers of electrical energy who are |
| 149 | determined to be eligible for the exemption provided by s. |
| 150 | 212.08(15) by the Department of Revenue. The exemption shall be |
| 151 | administered as provided in that section. A copy of any |
| 152 | ordinance adopted pursuant to this subsection shall be provided |
| 153 | to the Department of Revenue not less than 14 days prior to its |
| 154 | effective date. |
| 155 | (b) If an area that is nominated as an enterprise zone |
| 156 | pursuant to s. 290.0055 has not yet been designated pursuant to |
| 157 | s. 290.0065, a municipality may enact an ordinance for such |
| 158 | exemption; however, the ordinance shall not be effective until |
| 159 | such area is designated pursuant to s. 290.0065. |
| 160 | (c) This subsection shall expire and be void on December |
| 161 | 31, 2005, except that any qualified business which has satisfied |
| 162 | the requirements of this subsection prior to December 31, 2005, |
| 163 | shall be allowed the full benefit of the exemption allowed under |
| 164 | this subsection as if this subsection had not expired on |
| 165 | December 31, 2005. |
| 166 | (9) A purchaser who claims an exemption under subsection |
| 167 | (4) or subsection (5) shall certify to the seller that he or she |
| 168 | qualifies for the exemption, which certification may encompass |
| 169 | all purchases after a specified date or other multiple |
| 170 | purchases. A seller accepting the certification required by this |
| 171 | subsection is relieved of the obligation to collect and remit |
| 172 | tax; however, a governmental body that is exempt from the tax |
| 173 | authorized by this section shall not be required to furnish such |
| 174 | certification, and a seller is not required to collect tax from |
| 175 | such an exempt governmental body. |
| 176 | (10) Governmental bodies which sell or resell taxable |
| 177 | service to nonexempt end users must collect and remit the tax |
| 178 | levied under this section. |
| 179 | Section 3. This act shall take effect July 1, 2005. |