CS/HB 887

A bill to be entitled
2An act relating to communications services tax; amending
3s. 202.16, F.S.; requiring that a dealer compute the
4communications services tax based on a rounding algorithm;
5providing criteria; providing for application of the tax;
6providing options to the dealer for applying the rounding
7algorithm; providing that a dealer is not required to
8collect the tax based on a bracket system; removing the
9provision requiring the Department of Revenue to make
10available tax amounts and applicable brackets; providing
11that the provisions of the act are remedial in nature and
12apply retroactively; providing that the act does not
13provide a basis for assessment of any tax not paid or
14create a right to certain refunds or credits; providing an
15effective 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)  A dealer must compute the tax due on a sale of
30communications services imposed pursuant to this chapter and
31chapter 203 based on a rounding algorithm that meets the
32following criteria:
33     1.  The tax computation must be carried to the third
34decimal place.
35     2.  The tax must be rounded to a whole cent using a method
36that rounds up to the next cent whenever the third decimal place
37is greater than four.
38     (b)  A dealer may elect to compute the tax due on a sale of
39communications services on an item or an invoice basis.
40     (c)  The rounding algorithm must be applied to the local
41communications services tax imposed pursuant to this chapter
42separately from its application to the communications services
43tax imposed pursuant to s. 202.12 and gross receipts tax
44pursuant to s. 203.01.
45     (d)  A dealer may elect to apply the rounding algorithm to
46the communications services taxes imposed pursuant to ss. 202.12
47and 203.01 in one of the following manners:
48     1.  Apply the rounding algorithm to the combined
49communications services tax imposed pursuant to ss. 202.12 and
51     2.  Apply the rounding algorithm separately to the
52communications services tax imposed pursuant to s. 202.12(1)(a)
53and gross receipt tax imposed pursuant to s. 203.01(1)(b)2. and
55     3.  Apply the rounding algorithm to the combined taxes
56imposed pursuant to ss. 202.12(1)(a) and 203.01(1)(b)3., as
57allowed by s. 203.001, and apply the rounding algorithm
58separately to the gross receipts tax pursuant to s.
60     (e)  A dealer is not required to collect the tax based on a
61bracket system. Notwithstanding the rate of tax on the sale of
62communications services imposed pursuant to this chapter and
63chapter 203, the department shall make available in an
64electronic format or otherwise the tax amounts and brackets
65applicable to each taxable sale such that the tax collected
66results in a tax rate no less than the tax rate imposed pursuant
67to this chapter and chapter 203.
68     Section 2.  This act is intended to be remedial in nature
69and applies retroactively. This act does not provide a basis for
70an assessment of any tax not paid or create a right to a refund
71or credit of any tax paid under s. 202.16, Florida Statutes,
72before July 1, 2011.
73     Section 3.  This act shall take effect July 1, 2011.

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