CS/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; removing the provision requiring the Department
8of Revenue to make available tax amounts and applicable
9brackets; providing that the provisions of the act are
10remedial in nature and apply retroactively; providing that
11the act does not provide a basis for assessment of any tax
12not paid or create a right to certain refunds or credits;
13providing an effective date.
15Be It Enacted by the Legislature of the State of Florida:
17     Section 1.  Subsection (3) of section 202.16, Florida
18Statutes, is amended to read:
19     202.16  Payment.-The taxes imposed or administered under
20this chapter and chapter 203 shall be collected from all dealers
21of taxable communications services on the sale at retail in this
22state of communications services taxable under this chapter and
23chapter 203. The full amount of the taxes on a credit sale,
24installment sale, or sale made on any kind of deferred payment
25plan is due at the moment of the transaction in the same manner
26as a cash sale.
27     (3)(a)  A dealer must compute the tax due on a sale of
28communications services imposed pursuant to this chapter and
29chapter 203 based on a rounding algorithm that meets the
30following criteria:
31     1.  The tax computation must be carried to the third
32decimal place.
33     2.  The tax must be rounded to a whole cent using a method
34that rounds up to the next cent whenever the third decimal place
35is greater than four.
36     (b)  The rounding algorithm must be applied to the local
37communications services tax imposed pursuant to this chapter
38separately from its application to the communications services
39taxes imposed pursuant to s. 202.12 and gross receipts taxes
40imposed pursuant to s. 203.01.
41     (c)  A dealer may apply the rounding algorithm to the taxes
42imposed pursuant to ss. 202.12 and 203.01 in one of the
43following manners:
44     1.  Apply the rounding algorithm to the combined taxes
45imposed pursuant to ss. 202.12 and 203.01.
46     2.  Apply the rounding algorithm to the communications
47services taxes imposed pursuant to s. 202.12(1) and apply the
48rounding algorithm separately to the combined gross receipts
49bracket system. Notwithstanding the rate of tax on the sale of
50communications services imposed pursuant to this chapter and
51chapter 203, the department shall make available in an
52electronic format or otherwise the tax amounts and brackets
53applicable to each taxable sale such that the tax collected
54results in a tax rate no less than the tax rate imposed pursuant
55to this chapter and chapter 203.
56     Section 2.  This act is intended to be remedial in nature
57and applies retroactively. This act does not provide a basis for
58an assessment of any tax not paid or create a right to a refund
59or credit of any tax paid under s. 202.16, Florida Statutes,
60before July 1, 2011.
61     Section 3.  This act shall take effect July 1, 2011.

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