HB 887

A bill to be entitled
2An act relating to taxation of communications services;
3amending s. 202.16, F.S.; requiring tax amounts and
4brackets made available to communications services dealers
5by the Department of Revenue for computing the
6communication services tax to be based on a rounding
7algorithm; specifying mathematical criteria for the
8rounding algorithm; authorizing a communications services
9dealer to compute the tax on an item or an invoice basis;
10requiring the department to allow application of the
11rounding algorithm to certain aggregated state and local
12taxes; directing the department to allow, but not require,
13a dealer to collect taxes on communications services based
14on a bracket system; providing construction; providing for
15retroactive application; providing an effective date.
17Be It Enacted by the Legislature of the State of Florida:
19     Section 1.  Subsection (3) of section 202.16, Florida
20Statutes, is amended to read:
21     202.16  Payment.-The taxes imposed or administered under
22this chapter and chapter 203 shall be collected from all dealers
23of taxable communications services on the sale at retail in this
24state of communications services taxable under this chapter and
25chapter 203. The full amount of the taxes on a credit sale,
26installment sale, or sale made on any kind of deferred payment
27plan is due at the moment of the transaction in the same manner
28as a cash sale.
29     (3)(a)  Notwithstanding the rate of tax on the sale of
30communications services imposed pursuant to this chapter and
31chapter 203, the department shall make available in an
32electronic format or otherwise the tax amounts and brackets
33applicable to each taxable sale based on a rounding algorithm
34that meets the following criteria:
35     1.  Tax computation must be carried to the third decimal
37     2.  The tax must be rounded to a whole cent using a method
38that rounds up to the next cent whenever the third decimal place
39is greater than four.
40     (b)  A dealer may compute the tax due on a taxable sale on
41an item or an invoice basis, and the department must allow
42application of the rounding algorithm to the aggregated state
43and local taxes imposed under this chapter and chapter 203. The
44department must allow, but may not require, a dealer to collect
45the tax based on a bracket system such that the tax collected
46results in a tax rate no less than the tax rate imposed pursuant
47to this chapter and chapter 203.
48     Section 2.  The amendments made by this act to section
49202.16, Florida Statutes, are intended to be remedial in nature
50and apply retroactively. The amendments do not provide a basis
51for an assessment of any tax not paid, or create a right to a
52refund of any tax paid, under section 202.16, Florida Statutes,
53before July 1, 2011.
54     Section 3.  This act shall take effect July 1, 2011.

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