CS/CS/HB 567

1	A bill to be entitled
2	An act relating to the communications services tax;
3	amending s. 202.12, F.S.; decreasing the rate of the tax;
4	providing for application; amending s. 202.16, F.S.;
5	requiring dealers to document exempt sales for resale;
6	providing requirements and procedures; providing a
7	definition; providing construction; providing for dealer
8	provision of evidence of the exempt status of certain
9	sales through an informal protest process; requiring the
10	Department of Revenue to accept certain evidence during
11	the protest period; providing limitations; requiring the
12	department to establish a toll-free telephone number for
13	the purpose of verifying registration numbers and resale
14	certificates; requiring the department to establish a
15	system for receiving information from dealers regarding
16	certificate numbers; amending s. 202.18, F.S.; decreasing
17	the percentage allocation of certain tax proceeds;
18	amending s. 202.20, F.S.; limiting local governmental
19	authority to make certain rate adjustments in the tax
20	under certain circumstances; providing for a determination
21	of completeness of certain data; providing effective
22	dates.
23
24	Be It Enacted by the Legislature of the State of Florida:
25
26	Section 1.  Paragraphs (a) and (b) of subsection (1) of
27	section 202.12, Florida Statutes, are amended to read:
28	202.12  Sales of communications services.--The Legislature
29	finds that every person who engages in the business of selling
30	communications services at retail in this state is exercising a
31	taxable privilege. It is the intent of the Legislature that the
32	tax imposed by chapter 203 be administered as provided in this
33	chapter.
34	(1)  For the exercise of such privilege, a tax is levied on
35	each taxable transaction, and the tax is due and payable as
36	follows:
37	(a)  Except as otherwise provided in this subsection, at a
38	rate of 6.55 6.8 percent applied to the sales price of the
39	communications service which:
40	1.  Originates and terminates in this state, or
41	2.  Originates or terminates in this state and is charged
42	to a service address in this state,
43
44	when sold at retail, computed on each taxable sale for the
45	purpose of remitting the tax due. The gross receipts tax imposed
46	by chapter 203 shall be collected on the same taxable
47	transactions and remitted with the tax imposed by this
48	paragraph. If no tax is imposed by this paragraph by reason of
49	s. 202.125(1), the tax imposed by chapter 203 shall nevertheless
50	be collected and remitted in the manner and at the time
51	prescribed for tax collections and remittances under this
52	chapter.
53	(b)  At the rate of 10.55 10.8 percent on the retail sales
54	price of any direct-to-home satellite service received in this
55	state. The proceeds of the tax imposed under this paragraph
56	shall be accounted for and distributed in accordance with s.
57	202.18(2). The gross receipts tax imposed by chapter 203 shall
58	be collected on the same taxable transactions and remitted with
59	the tax imposed by this paragraph.
60	Section 2.  The amendments to s. 202.12, Florida Statutes,
61	by this act shall apply to bills for communications services
62	dated on or after January 1, 2008.
63	Section 3.  Effective January 1, 2008, subsection (2) of
64	section 202.16, Florida Statutes, is amended to read:
65	202.16  Payment.--The taxes imposed or administered under
66	this chapter and chapter 203 shall be collected from all dealers
67	of taxable communications services on the sale at retail in this
68	state of communications services taxable under this chapter and
69	chapter 203. The full amount of the taxes on a credit sale,
70	installment sale, or sale made on any kind of deferred payment
71	plan is due at the moment of the transaction in the same manner
72	as a cash sale.
73	(2)(a)  A sale of communications services that are used as
74	a component part of or integrated into a communications service
75	or prepaid calling arrangement for resale, including, but not
76	limited to, carrier-access charges, interconnection charges paid
77	by providers of mobile communication services or other
78	communication services, charges paid by cable service providers
79	for the transmission of video or other programming by another
80	dealer of communications services, charges for the sale of
81	unbundled network elements, and any other intercompany charges
82	for the use of facilities for providing communications services
83	for resale, must be made in compliance with the rules of the
84	department. Any person who makes a sale for resale which is not
85	in compliance with these rules is liable for any tax, penalty,
86	and interest due for failing to comply, to be calculated
87	pursuant to s. 202.28(2)(a).
88	(b)1.  Any dealer who makes a sale for resale shall
89	document the exempt nature of the transaction, as established by
90	rules adopted by the department, by retaining a copy of the
91	purchaser's initial or annual resale certificate issued pursuant
92	to s. 202.17(6). In lieu of maintaining a copy of the
93	certificate, a dealer may document, prior to the time of sale,
94	an authorization number provided telephonically or
95	electronically by the department or by such other means
96	established by rule of the department. The dealer may rely on an
97	initial or annual resale certificate issued pursuant to s.
98	202.17(6), valid at the time of receipt from the purchaser,
99	without seeking additional annual resale certificates from such
100	purchaser, if the dealer makes recurring sales to the purchaser
101	in the normal course of business on a continual basis. For
102	purposes of this paragraph, the term "recurring sales to a
103	purchaser in the normal course of business" means sales in which
104	the dealer extends credit to the purchaser and records the debt
105	as an account receivable, or in which the dealer sells to a
106	purchaser who has an established cash account, similar to an
107	open credit account. For purposes of this paragraph, purchases
108	are made from a selling dealer on a continual basis if the
109	selling dealer makes, in the normal course of business, sales to
110	the purchaser no less frequently than once in every 12-month
111	period.
112	2.  A dealer may, through the informal conference
113	procedures provided for in s. 213.21 and the rules of the
114	department, provide the department with evidence of the exempt
115	status of a sale. Exemption certificates executed by entities
116	that were exempt at the time of sale, resale certificates
117	provided by purchasers who were active dealers at the time of
118	sale, and verification by the department of a purchaser's active
119	dealer status at the time of sale in lieu of a resale
120	certificate shall be accepted by the department when submitted
121	during the protest period but may not be accepted in any
122	proceeding under chapter 120 or any circuit court action
123	instituted under chapter 72.
124	Section 4.  Effective January 1, 2008, the Department of
125	Revenue shall establish a toll-free telephone number for the
126	verification of valid dealer registration numbers and resale
127	certificates issued under chapter 202, Florida Statutes. The
128	system must be adequate to guarantee a low busy rate, must
129	respond to keypad inquiries, and must provide data that is
130	updated daily.
131	Section 5.  Effective January 1, 2008, the Department of
132	Revenue shall establish a system for receiving information from
133	dealers regarding certificate numbers of purchasers who are
134	seeking to make purchases for resale under chapter 202, Florida
135	Statutes. The department shall provide such dealers, free of
136	charge, with verification of those numbers that are canceled or
137	invalid.
138	Section 6.  Effective January 1, 2008, paragraph (b) of
139	subsection (2) of section 202.18, Florida Statutes, is amended
140	to read:
141	202.18  Allocation and disposition of tax proceeds.--The
142	proceeds of the communications services taxes remitted under
143	this chapter shall be treated as follows:
144	(2)  The proceeds of the taxes remitted under s.
145	202.12(1)(b) shall be divided as follows:
146	(b)  Sixty-two and one-tenth Sixty-three percent of the
147	remainder shall be allocated to the state and distributed
148	pursuant to s. 212.20(6), except that the proceeds allocated
149	pursuant to s. 212.20(6)(d)3. shall be prorated to the
150	participating counties in the same proportion as that month's
151	collection of the taxes and fees imposed pursuant to chapter 212
152	and paragraph (1)(b).
153	Section 7.  Paragraph (a) of subsection (2) of section
154	202.20, Florida Statutes, is amended to read:
155	202.20  Local communications services tax conversion
156	rates.--
157	(2)(a)1.  With respect to any local taxing jurisdiction,
158	if, for the periods ending December 31, 2001; March 31, 2002;
159	June 30, 2002; or September 30, 2002, the revenues received by
160	that local government from the local communications services tax
161	imposed under subsection (1) are less than the revenues received
162	from the replaced revenue sources for the corresponding 2000-
163	2001 period; plus reasonably anticipated growth in such revenues
164	over the preceding 1-year period, based on the average growth of
165	such revenues over the immediately preceding 5-year period; plus
166	an amount representing the revenues from the replaced revenue
167	sources for the 1-month period that the local taxing
168	jurisdiction was required to forego, the governing authority may
169	adjust the rate of the local communications services tax upward
170	to the extent necessary to generate the entire shortfall in
171	revenues within 1 year after the rate adjustment and by an
172	amount necessary to generate the expected amount of revenue on
173	an ongoing basis.
174	2.  If complete data are not available at the time of
175	determining whether the revenues received by a local government
176	from the local communications services tax imposed under
177	subsection (1) are less than the revenues received from the
178	replaced revenue sources for the corresponding 2000-2001 period,
179	as set forth in subparagraph 1., the local government shall use
180	the best data available for the corresponding 2000-2001 period
181	in making such determination. Complete data shall be deemed
182	available to all local governments after the department
183	completes audits, including the redistribution of local tax, of
184	dealers who account for no less than 80 percent of the amount of
185	communications services tax revenues received for fiscal year
186	2005-2006.
187	3.  The adjustment permitted under subparagraph 1. may be
188	made by emergency ordinance or resolution and may be made
189	notwithstanding the maximum rate established under s. 202.19(2)
190	and notwithstanding any schedules or timeframes or any other
191	limitations contained in this chapter. Beginning July 1, 2007, a
192	local government may make such adjustment only if the department
193	or a dealer allocates or reallocates revenues away from the
194	local government. However, any such adjustment shall be made no
195	later than 6 months following the date the department notifies
196	the local governments in writing that complete data is
197	available. The emergency ordinance or resolution shall specify
198	an effective date for the adjusted rate, which shall be no less
199	than 60 days after the date of adoption of the ordinance or
200	resolution and shall be effective with respect to taxable
201	services included on bills that are dated on the first day of a
202	month subsequent to the expiration of the 60-day period. At the
203	end of 1 year following the effective date of such adjusted
204	rate, the local governing authority shall, as soon as is
205	consistent with s. 202.21, reduce the rate by that portion of
206	the emergency rate which was necessary to recoup the amount of
207	revenues not received prior to the implementation of the
208	emergency rate.
209	4.  If, for the period October 1, 2001, through September
210	30, 2002, the revenues received by a local government from the
211	local communications services tax conversion rate established
212	under subsection (1), adjusted upward for the difference in
213	rates between paragraphs (1)(a) and (b) or any other rate
214	adjustments or base changes, are above the threshold of 10
215	percent more than the revenues received from the replaced
216	revenue sources for the corresponding 2000-2001 period plus
217	reasonably anticipated growth in such revenues over the
218	preceding 1-year period, based on the average growth of such
219	revenues over the immediately preceding 5-year period, the
220	governing authority must adjust the rate of the local
221	communications services tax to the extent necessary to reduce
222	revenues to the threshold by emergency ordinance or resolution
223	within the timeframes established in subparagraph 3. The
224	foregoing rate adjustment requirement shall not apply to a local
225	government that adopts a local communications services tax rate
226	by resolution or ordinance. If complete data are not available
227	at the time of determining whether the revenues exceed the
228	threshold, the local government shall use the best data
229	available for the corresponding 2000-2001 period in making such
230	determination. This subparagraph shall not be construed as
231	establishing a right of action for any person to enforce this
232	subparagraph or challenge a local government's implementation of
233	this subparagraph.
234	Section 8.  Except as otherwise expressly provided by this
235	act, this act shall take effect upon becoming a law.

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