Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. SB 1060
                                Barcode 455260                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: FAV            .                                
                  01/30/2012           .                                

       The Committee on Communications, Energy, and Public Utilities
       (Bogdanoff) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (1) of section 202.105, Florida
    6  Statutes, is amended to read:
    7         202.105 Legislative findings and intent.—
    8         (1) It is declared to be a specific legislative finding
    9  that the creation of this chapter fulfills important state
   10  interests by reforming the tax laws to provide a fair,
   11  efficient, and uniform method for taxing communications services
   12  sold in this state. This chapter is essential to the continued
   13  economic vitality of this increasingly important industry
   14  because it restructures state and local taxes and fees to
   15  account for the impact of federal legislation, industry
   16  deregulation, and the multitude of convergence of service
   17  offerings that is now taking place among providers offering
   18  functionally equivalent communications services in today’s
   19  marketplace. This chapter promotes the increased competition
   20  that accompanies deregulation by embracing a competitively
   21  neutral tax policy that will free consumers to choose a provider
   22  based on tax-neutral considerations. This chapter further spurs
   23  new competition by simplifying an extremely complicated state
   24  and local tax and fee system. Simplification will lower the cost
   25  of collecting taxes and fees, increase service availability, and
   26  place downward pressure on price. Newfound administrative
   27  efficiency is demonstrated by a reduction in the number of
   28  returns that a provider must file each month. By restructuring
   29  separate taxes and fees into a revenue-neutral communications
   30  services tax centrally administered by the department, this
   31  chapter will ensure that the growth of the industry is
   32  unimpaired by excessive governmental regulation. The tax imposed
   33  pursuant to this chapter is a replacement for taxes and fees
   34  previously imposed and is not a new tax. The taxes imposed and
   35  administered pursuant to this chapter are of general application
   36  and are imposed in a uniform, consistent, and nondiscriminatory
   37  manner.
   38         Section 2. Section 202.11, Florida Statutes, is amended to
   39  read:
   40         202.11 Definitions.—As used in this chapter:
   41         (1) “Cable service” means the transmission of video, audio,
   42  or other programming service to purchasers, and the purchaser
   43  interaction, if any, required for the selection or use of any
   44  such programming service, regardless of whether the programming
   45  is transmitted over facilities owned or operated by the cable
   46  service provider or over facilities owned or operated by one or
   47  more other dealers of communications services. The term includes
   48  point-to-point and point-to-multipoint distribution services by
   49  which programming is transmitted or broadcast by microwave or
   50  other equipment directly to the purchaser’s premises, but does
   51  not include direct-to-home satellite service. The term includes
   52  basic, extended, premium, pay-per-view, digital, and music
   53  services.
   54         (1)(2) “Communications services” means the transmission,
   55  conveyance, or routing of voice, data, audio, video, or any
   56  other information or signals, including video cable services, to
   57  a point, or between or among points, by or through any
   58  electronic, radio, satellite, cable, optical, microwave, or
   59  other medium or method now in existence or hereafter devised,
   60  regardless of the protocol used for such transmission or
   61  conveyance. The term includes such transmission, conveyance, or
   62  routing in which computer processing applications are used to
   63  act on the form, code, or protocol of the content for purposes
   64  of transmission, conveyance, or routing without regard to
   65  whether such service is referred to as voice-over-Internet
   66  protocol services or is classified by the Federal Communications
   67  Commission as enhanced or value-added. The term does not
   68  include:
   69         (a) Information services.
   70         (b) Installation or maintenance of wiring or equipment on a
   71  customer’s premises.
   72         (c) The sale or rental of tangible personal property.
   73         (d) The sale of advertising, including, but not limited to,
   74  directory advertising.
   75         (e) Bad check charges.
   76         (f) Late payment charges.
   77         (g) Billing and collection services.
   78         (h) Internet access service, electronic mail service,
   79  electronic bulletin board service, or similar online computer
   80  services.
   81         (i) Digital goods.
   82         (j) Digital services.
   83         (2)(3) “Dealer” means a person registered with the
   84  department as a provider of communications services in this
   85  state.
   86         (3)(4) “Department” means the Department of Revenue.
   87         (4) “Digital good” means any downloaded good or product
   88  that is delivered or transferred by means other than tangible
   89  storage media, including downloaded games, software, music, or
   90  other digital content. The term does not include video service.
   91         (5) “Digital service” means any service, other than video
   92  service, which is provided electronically, including remotely
   93  provided access to or use of software or another digital good,
   94  and also includes the following services, if they are provided
   95  remotely: monitoring, security, distance learning, energy
   96  management, medical diagnostic, mechanical diagnostic, and
   97  vehicle tracking services. If a digital service is bundled for
   98  sale with the transmission, conveyance, or routing of any
   99  information or signals, the bundled service is a digital service
  100  unless the tax imposed under this chapter and chapter 203 has
  101  not been paid with respect to such transmission, conveyance, or
  102  routing.
  103         (6)(5) “Direct-to-home satellite service” has the meaning
  104  ascribed in the Communications Act of 1934, 47 U.S.C. s. 303(v).
  105         (7)(6) “Information service” means the offering of a
  106  capability for generating, acquiring, storing, transforming,
  107  processing, retrieving, using, or making available information
  108  via communications services, including, but not limited to,
  109  electronic publishing, web-hosting service, and end-user 900
  110  number service. The term does not include any video, audio, or
  111  other programming service that uses point-to-multipoint
  112  distribution by which programming is delivered, transmitted, or
  113  broadcast by any means, including any interaction that may be
  114  necessary for selecting and using the service, regardless of
  115  whether the programming is delivered, transmitted, or broadcast
  116  over facilities owned or operated by the seller or another, or
  117  whether denominated as cable service or as basic, extended,
  118  premium, pay-per-view, digital, music, or two-way cable service.
  119         (8) “Internet access service” has the same meaning as
  120  ascribed to the term “Internet access” by s. 1105(5) of the
  121  Internet Tax Freedom Act, 47 U.S.C. s. 151 note, as amended by
  122  Pub. L. No. 110-108.
  123         (9)(7) “Mobile communications service” means commercial
  124  mobile radio service, as defined in 47 C.F.R. s. 20.3 as in
  125  effect on June 1, 1999. The term does not include air-ground
  126  radiotelephone service as defined in 47 C.F.R. s. 22.99 as in
  127  effect on June 1, 1999.
  128         (10)(8) “Person” has the meaning ascribed in s. 212.02.
  129         (11)(9) “Prepaid calling arrangement” means the separately
  130  stated retail sale by advance payment of communications services
  131  that must be paid for in advance; that may be used to place or
  132  receive consist exclusively of telephone calls originated; that
  133  are enabled by using an access number, authorization code, or
  134  other means that may be manually, electronically, or otherwise
  135  entered;, and that are sold in predetermined units or dollars of
  136  which the number declines on a predetermined basis with use in a
  137  known amount.
  138         (12)(10) “Purchaser” means the person paying for or
  139  obligated to pay for communications services.
  140         (13)(11) “Retail sale” means the sale of communications
  141  services for any purpose other than for resale or for use as a
  142  component part of or for integration into communications
  143  services to be resold in the ordinary course of business.
  144  However, any sale for resale must comply with s. 202.16(2) and
  145  the rules adopted thereunder.
  146         (14)(12) “Sale” means the provision of communications
  147  services for a consideration.
  148         (15)(13) “Sales price” means the total amount charged in
  149  money or other consideration by a dealer for the sale of the
  150  right or privilege of using communications services in this
  151  state, including any property or other service, not described in
  152  paragraph (a), which is services that are part of the sale and
  153  for which the charge is not separately itemized on a customer’s
  154  bill or separately allocated under subparagraph (b)8. The sales
  155  price of communications services may shall not be reduced by any
  156  separately identified components of the charge which that
  157  constitute expenses of the dealer, including, but not limited
  158  to, sales taxes on goods or services purchased by the dealer,
  159  property taxes, taxes measured by net income, and universal
  160  service fund fees.
  161         (a) The sales price of communications services includes
  162  shall include, whether or not separately stated, charges for any
  163  of the following:
  164         1. The connection, movement, change, or termination of
  165  communications services.
  166         2. The detailed billing of communications services.
  167         3. The sale of directory listings in connection with a
  168  communications service.
  169         4. Central office and custom calling features.
  170         5. Voice mail and other messaging service.
  171         6. Directory assistance.
  172         7. The service of sending or receiving a document commonly
  173  referred to as a facsimile or “fax,” except when performed
  174  during the course of providing professional or advertising
  175  services.
  176         (b) The sales price of communications services does not
  177  include charges for any of the following:
  178         1. An Any excise tax, sales tax, or similar tax levied by
  179  the United States or any state or local government on the
  180  purchase, sale, use, or consumption of any communications
  181  service, including, but not limited to, a any tax imposed under
  182  this chapter or chapter 203 which is permitted or required to be
  183  added to the sales price of such service, if the tax is stated
  184  separately.
  185         2. A Any fee or assessment levied by the United States or
  186  any state or local government, including, but not limited to,
  187  regulatory fees and emergency telephone surcharges, which must
  188  is required to be added to the price of the such service if the
  189  fee or assessment is separately stated.
  190         3. Communications services paid for by inserting coins into
  191  coin-operated communications devices available to the public.
  192         4. The sale or recharge of a prepaid calling arrangement.
  193         5. The provision of air-to-ground communications services,
  194  defined as a radio service provided to a purchaser purchasers
  195  while on board an aircraft.
  196         6. A dealer’s internal use of communications services in
  197  connection with its business of providing communications
  198  services.
  199         7. Charges for property or other services that are not part
  200  of the sale of communications services, if such charges are
  201  stated separately from the charges for communications services.
  202         8. To the extent required by federal law, Charges for goods
  203  and services that are exempt from tax under this chapter,
  204  including Internet access services but excluding any item
  205  described in paragraph (a), that which are not separately
  206  itemized on a customer’s bill, but that which can be reasonably
  207  identified from the selling dealer’s books and records kept in
  208  the regular course of business. The dealer may support the
  209  allocation of charges with books and records kept in the regular
  210  course of business covering the dealer’s entire service area,
  211  including territories outside this state.
  212         (16)(14) “Service address” means:
  213         (a) Except as otherwise provided in this section:
  214         1. The location of the communications equipment from which
  215  communications services originate or at which communications
  216  services are received by the customer;
  217         2. In the case of a communications service paid through a
  218  credit or payment mechanism that does not relate to a service
  219  address, such as a bank, travel, debit, or credit card, and in
  220  the case of third-number and calling-card calls, the term
  221  “service address” means the address of the central office, as
  222  determined by the area code and the first three digits of the
  223  seven-digit originating telephone number; or
  224         3. If the location of the equipment described in
  225  subparagraph 1. is not known and subparagraph 2. is
  226  inapplicable, the term “service address” means the location of
  227  the customer’s primary use of the communications service. For
  228  purposes of this subparagraph, the location of the customer’s
  229  primary use of a communications service is the residential
  230  street address or the business street address of the customer.
  231         (b) In the case of video cable services and direct-to-home
  232  satellite services, the location where the customer receives the
  233  services in this state.
  234         (c) In the case of mobile communications services, the
  235  customer’s place of primary use.
  236         (17)(15) “Unbundled network element” means a network
  237  element, as defined in 47 U.S.C. s. 153(29), to which access is
  238  provided on an unbundled basis pursuant to 47 U.S.C. s.
  239  251(c)(3).
  240         (18)(16) “Private communications service” means a
  241  communications service that entitles the subscriber or user to
  242  exclusive or priority use of a communications channel or group
  243  of channels between or among channel termination points,
  244  regardless of the manner in which such channel or channels are
  245  connected, and includes switching capacity, extension lines,
  246  stations, and any other associated services that which are
  247  provided in connection with the use of such channel or channels.
  248         (19)(17)(a) “Customer” means:
  249         1. The person or entity that contracts with the home
  250  service provider for mobile communications services; or
  251         2. If the end user of mobile communications services is not
  252  the contracting party, the end user of the mobile communications
  253  service. This subparagraph only applies only for the purpose of
  254  determining the place of primary use.
  255         (b) The term “Customer” does not include:
  256         1. A reseller of mobile communications services; or
  257         2. A serving carrier under an agreement to serve the
  258  customer outside the home service provider’s licensed service
  259  area.
  260         (20)(18) “Enhanced zip code” means a United States postal
  261  zip code of 9 or more digits.
  262         (21)(19) “Home service provider” means the facilities-based
  263  carrier or reseller with which the customer contracts for the
  264  provision of mobile communications services.
  265         (22)(20) “Licensed service area” means the geographic area
  266  in which the home service provider is authorized by law or
  267  contract to provide mobile communications service to the
  268  customer.
  269         (23)(21) “Place of primary use” means the street address
  270  representative of where the customer’s use of the mobile
  271  communications service primarily occurs, which must be:
  272         (a) The residential street address or the primary business
  273  street address of the customer; and
  274         (b) Within the licensed service area of the home service
  275  provider.
  276         (24)(22)(a) “Reseller” means a provider who purchases
  277  communications services from another communications service
  278  provider and then resells, uses as a component part of, or
  279  integrates the purchased services into a mobile communications
  280  service.
  281         (b) The term “Reseller” does not include a serving carrier
  282  with which a home service provider arranges for the services to
  283  its customers outside the home service provider’s licensed
  284  service area.
  285         (25)(23) “Serving carrier” means a facilities-based carrier
  286  providing mobile communications service to a customer outside a
  287  home service provider’s or reseller’s licensed service area.
  288         (26)(24) “Video service” means the transmission of video,
  289  audio, or other programming service to a purchaser, and the
  290  purchaser interaction, if any, required for the selection or use
  291  of a programming service, regardless of whether the programming
  292  is transmitted over facilities owned or operated by the video
  293  service provider or over facilities owned or operated by another
  294  dealer of communications services. The term includes point-to
  295  point and point-to-multipoint distribution services through
  296  which programming is transmitted or broadcast by microwave or
  297  other equipment directly to the purchaser’s premises, but does
  298  not include direct-to-home satellite service. The term includes
  299  basic, extended, premium, pay-per-view, digital video, two-way
  300  cable, and music services has the same meaning as that provided
  301  in s. 610.103.
  302         Section 3. Subsection (1) of section 202.125, Florida
  303  Statutes, is amended to read:
  304         202.125 Sales of communications services; specified
  305  exemptions.—
  306         (1) The separately stated sales price of communications
  307  services sold to residential households is exempt from the tax
  308  imposed by s. 202.12 and s. 203.01(1)(b)3. This exemption does
  309  not apply to any residence that constitutes all or part of a
  310  transient public lodging establishment as defined in chapter
  311  509, any mobile communications service, any video cable service,
  312  or any direct-to-home satellite service.
  313         Section 4. Paragraph (a) of subsection (2) of section
  314  202.16, Florida Statutes, is amended to read:
  315         202.16 Payment.—The taxes imposed or administered under
  316  this chapter and chapter 203 shall be collected from all dealers
  317  of taxable communications services on the sale at retail in this
  318  state of communications services taxable under this chapter and
  319  chapter 203. The full amount of the taxes on a credit sale,
  320  installment sale, or sale made on any kind of deferred payment
  321  plan is due at the moment of the transaction in the same manner
  322  as a cash sale.
  323         (2)(a) A sale of communications services that are used as a
  324  component part of or integrated into a communications service or
  325  prepaid calling arrangement for resale, including, but not
  326  limited to, carrier-access charges, interconnection charges paid
  327  by providers of mobile communication services or other
  328  communication services, charges paid by a video cable service
  329  provider providers for the purchase of video programming or the
  330  transmission of video or other programming by another dealer of
  331  communications services, charges for the sale of unbundled
  332  network elements, and any other intercompany charges for the use
  333  of facilities for providing communications services for resale,
  334  must be made in compliance with the rules of the department. A
  335  Any person who makes a sale for resale which is not in
  336  compliance with these rules is liable for any tax, penalty, and
  337  interest due for failing to comply, to be calculated pursuant to
  338  s. 202.28(2)(a).
  339         Section 5. Paragraph (c) of subsection (3) of section
  340  202.18, Florida Statutes, is amended to read:
  341         202.18 Allocation and disposition of tax proceeds.—The
  342  proceeds of the communications services taxes remitted under
  343  this chapter shall be treated as follows:
  344         (3)
  345         (c)1. Except as otherwise provided in this paragraph,
  346  proceeds of the taxes levied pursuant to s. 202.19, less amounts
  347  deducted for costs of administration in accordance with
  348  paragraph (b), shall be distributed monthly to the appropriate
  349  jurisdictions. The proceeds of taxes imposed pursuant to s.
  350  202.19(5) shall be distributed in the same manner as
  351  discretionary surtaxes are distributed, in accordance with ss.
  352  212.054 and 212.055.
  353         2. The department shall make any adjustments to the
  354  distributions pursuant to this section which are necessary to
  355  reflect the proper amounts due to individual jurisdictions or
  356  trust funds. In the event that the department adjusts amounts
  357  due to reflect a correction in the situsing of a customer, such
  358  adjustment shall be limited to the amount of tax actually
  359  collected from such customer by the dealer of communication
  360  services.
  361         3.a. Notwithstanding the time period specified in s.
  362  202.22(5), Adjustments in distributions which are necessary to
  363  correct misallocations between jurisdictions shall be governed
  364  by this subparagraph. If the department determines that
  365  misallocations between jurisdictions occurred, it shall provide
  366  written notice of such determination to all affected
  367  jurisdictions. The notice shall include the amount of the
  368  misallocations, the basis upon which the determination was made,
  369  data supporting the determination, and the identity of each
  370  affected jurisdiction. The notice shall also inform all affected
  371  jurisdictions of their authority to enter into a written
  372  agreement establishing a method of adjustment as described in
  373  sub-subparagraph c.
  374         b. An adjustment affecting a distribution to a jurisdiction
  375  which is less than 90 percent of the average monthly
  376  distribution to that jurisdiction for the 6 months immediately
  377  preceding the department’s determination, as reported by all
  378  communications services dealers, shall be made in the month
  379  immediately following the department’s determination that
  380  misallocations occurred.
  381         c. If an adjustment affecting a distribution to a
  382  jurisdiction equals or exceeds 90 percent of the average monthly
  383  distribution to that jurisdiction for the 6 months immediately
  384  preceding the department’s determination, as reported by all
  385  communications services dealers, the affected jurisdictions may
  386  enter into a written agreement establishing a method of
  387  adjustment. If the agreement establishing a method of adjustment
  388  provides for payments of local communications services tax
  389  monthly distributions, the amount of any such payment agreed to
  390  may not exceed the local communications services tax monthly
  391  distributions available to the jurisdiction that was allocated
  392  amounts in excess of those to which it was entitled. If affected
  393  jurisdictions execute a written agreement specifying a method of
  394  adjustment, a copy of the written agreement shall be provided to
  395  the department no later than the first day of the month
  396  following 90 days after the date the department transmits notice
  397  of the misallocation. If the department does not receive a copy
  398  of the written agreement within the specified time period, an
  399  adjustment affecting a distribution to a jurisdiction made
  400  pursuant to this sub-subparagraph shall be prorated over a time
  401  period that equals the time period over which the misallocations
  402  occurred.
  403         Section 6. Subsections (1) and (3) of section 202.195,
  404  Florida Statutes, are amended to read:
  405         202.195 Proprietary confidential business information;
  406  public records exemption.—
  407         (1) Proprietary confidential business information obtained
  408  from a telecommunications company or from a franchised or
  409  certificated video service provider cable company for the
  410  purposes of imposing fees for occupying the public rights-of
  411  way, assessing the local communications services tax pursuant to
  412  s. 202.19, or occupying or regulating the public rights-of-way,
  413  held by a local governmental entity, is confidential and exempt
  414  from s. 119.07(1) and s. 24(a), Art. I of the State
  415  Constitution. Such proprietary confidential business information
  416  held by a local governmental entity may be used only for the
  417  purposes of imposing such fees, assessing such tax, or
  418  regulating such rights-of-way, and may not be used for any other
  419  purposes, including, but not limited to, commercial or
  420  competitive purposes.
  421         (3) Nothing in This exemption does not expand expands the
  422  information or documentation that a local governmental entity
  423  may properly request under applicable law pursuant to the
  424  imposition of fees for occupying the rights-of-way, the local
  425  communication services tax, or the regulation of its public
  426  rights-of-way.
  427         Section 7. Paragraph (b) of subsection (2) of section
  428  202.20, Florida Statutes, is amended to read:
  429         202.20 Local communications services tax conversion rates.—
  430         (2)
  431         (b) Except as otherwise provided in this subsection, the
  432  term “replaced revenue sources,” as used in this section, means
  433  the following taxes, charges, fees, or other impositions to the
  434  extent that the respective local taxing jurisdictions were
  435  authorized to impose them prior to July 1, 2000.
  436         1. With respect to municipalities and charter counties and
  437  the taxes authorized by s. 202.19(1):
  438         a. The public service tax on telecommunications authorized
  439  by former s. 166.231(9).
  440         b. Franchise fees on video cable service providers as
  441  authorized by 47 U.S.C. s. 542.
  442         c. The public service tax on prepaid calling arrangements.
  443         d. Franchise fees on dealers of communications services
  444  which use the public roads or rights-of-way, up to the limit set
  445  forth in s. 337.401. For purposes of calculating rates under
  446  this section, it is the legislative intent that charter counties
  447  be treated as having had the same authority as municipalities to
  448  impose franchise fees on recurring local telecommunication
  449  service revenues before prior to July 1, 2000. However, the
  450  Legislature recognizes that the authority of charter counties to
  451  impose such fees is in dispute, and the treatment provided in
  452  this section is not an expression of legislative intent that
  453  charter counties actually do or do not possess such authority.
  454         e. Actual permit fees relating to placing or maintaining
  455  facilities in or on public roads or rights-of-way, collected
  456  from providers of long-distance, cable, and mobile
  457  communications services for the fiscal year ending September 30,
  458  1999; however, if a municipality or charter county elects the
  459  option to charge permit fees pursuant to s. 337.401(3)(c)1.a.,
  460  such fees may shall not be included as a replaced revenue
  461  source.
  462         2. With respect to all other counties and the taxes
  463  authorized in s. 202.19(1), franchise fees on video cable
  464  service providers as authorized by 47 U.S.C. s. 542.
  465         Section 8. Subsections (5) and (6) of section 202.22,
  466  Florida Statutes, are amended to read:
  467         202.22 Determination of local tax situs.—
  468         (5) If a dealer of communications services does not use one
  469  or more of the methods specified in subsection (1) for
  470  determining the local taxing jurisdiction in which one or more
  471  service addresses are a service address is located and:,
  472         (a) The dealer’s failure to use one or more of such methods
  473  results in a net aggregate underpayment of all taxes levied
  474  pursuant to s. 202.19 with respect to one or more tax periods
  475  that are being examined by the department; and
  476         (b) The department has determined the misallocations
  477  between jurisdictions for all taxes levied pursuant to s. 202.19
  478  and collected by the dealer with respect to any tax period being
  479  examined by the department,
  481  the dealer of communications services may be held liable to the
  482  department for the net aggregate underpayment of any tax, and
  483  for including interest and penalties attributable to the net
  484  aggregate underpayment of tax, which is due as a result of
  485  assigning one or more the service addresses address to an
  486  incorrect local taxing jurisdiction. However, the dealer of
  487  communications services is not liable for any tax, interest, or
  488  penalty under this subsection unless the department has
  489  determined the net aggregate underpayment of tax for any tax
  490  period that is being examined, taking into account all
  491  underpayments and overpayments for such period or periods to the
  492  extent that such amount was collected and remitted by the dealer
  493  of communications services with respect to a tax imposed by
  494  another local taxing jurisdiction. Upon determining that an
  495  amount was collected and remitted by a dealer of communications
  496  services with respect to a tax imposed by another local taxing
  497  jurisdiction, the department shall adjust the respective amounts
  498  of the proceeds paid to each such taxing jurisdiction under s.
  499  202.18 in the month immediately following such determination.
  500         (6)(a) Pursuant to rules adopted by the department, each
  501  dealer of communications services must notify the department of
  502  the methods it intends to employ for determining the local
  503  taxing jurisdiction in which service addresses are located.
  504         (b) Notwithstanding s. 202.28, if a dealer of
  505  communications services:
  506         1. Employs a method of assigning service addresses other
  507  than as set forth in paragraph (1)(a), paragraph (1)(b), or
  508  paragraph (1)(c), the deduction allowed to the dealer of
  509  communications services as compensation under s. 202.28 shall be
  510  0.25 percent of that portion of the tax due and accounted for
  511  and remitted to the department which is attributable to such
  512  method of assigning service addresses other than as set forth in
  513  paragraph (1)(a), paragraph (1)(b), or paragraph (1)(c).
  514         2. Employs a method of assigning service addresses as set
  515  forth in paragraph (1)(a), paragraph (1)(b), or paragraph
  516  (1)(c), the department may not deny the deduction allowed to the
  517  dealer of communications services as compensation allowed under
  518  s. 202.28 because the dealer assigned one or more service
  519  addresses to an incorrect local taxing jurisdiction.
  520         Section 9. Subsection (3) is added to section 202.231,
  521  Florida Statutes, to read:
  522         202.231 Provision of information to local taxing
  523  jurisdictions.—
  524         (3) The gross taxable sales and net tax information
  525  contained in the monthly reports required by this section shall
  526  be aggregated on a jurisdiction-by-jurisdiction basis, and the
  527  aggregate jurisdiction-by-jurisdiction information shall be made
  528  available by the department to the public through the
  529  department’s website for each fiscal year this chapter has been
  530  in effect.
  531         Section 10. Paragraphs (a) and (c) of subsection (2) of
  532  section 202.24, Florida Statutes, are amended to read:
  533         202.24 Limitations on local taxes and fees imposed on
  534  dealers of communications services.—
  535         (2)(a) Except as provided in paragraph (c), each public
  536  body is prohibited from:
  537         1. Levying on or collecting from dealers or purchasers of
  538  communications services any tax, charge, fee, or other
  539  imposition on or with respect to the provision or purchase of
  540  communications services.
  541         2. Requiring any dealer of communications services to enter
  542  into or extend the term of a franchise or other agreement that
  543  requires the payment of a tax, charge, fee, or other imposition.
  544         3. Adopting or enforcing any provision of any ordinance or
  545  agreement to the extent that such provision obligates a dealer
  546  of communications services to charge, collect, or pay to the
  547  public body a tax, charge, fee, or other imposition.
  549  Municipalities and counties may not negotiate those terms and
  550  conditions related to franchise fees or the definition of gross
  551  revenues or other definitions or methodologies related to the
  552  payment or assessment of franchise fees on providers of cable or
  553  video services.
  554         (c) This subsection does not apply to:
  555         1. Local communications services taxes levied under this
  556  chapter.
  557         2. Ad valorem taxes levied pursuant to chapter 200.
  558         3. Business taxes levied under chapter 205.
  559         4. “911” service charges levied under chapter 365.
  560         5. Amounts charged for the rental or other use of property
  561  owned by a public body which is not in the public rights-of-way
  562  to a dealer of communications services for any purpose,
  563  including, but not limited to, the placement or attachment of
  564  equipment used in the provision of communications services.
  565         6. Permit fees of general applicability which are not
  566  related to placing or maintaining facilities in or on public
  567  roads or rights-of-way.
  568         7. Permit fees related to placing or maintaining facilities
  569  in or on public roads or rights-of-way pursuant to s. 337.401.
  570         8. Any in-kind requirements, institutional networks, or
  571  contributions for, or in support of, the use or construction of
  572  public, educational, or governmental access facilities allowed
  573  under federal law and imposed on providers of cable or video
  574  service pursuant to any existing ordinance or an existing
  575  franchise agreement granted by each municipality or county,
  576  under which ordinance or franchise agreement service is provided
  577  before prior to July 1, 2007, or as permitted under chapter 610.
  578  Nothing in This subparagraph does not shall prohibit the ability
  579  of providers of cable or video service from recovering the to
  580  recover such expenses as allowed under federal law.
  581         9. Special assessments and impact fees.
  582         10. Pole attachment fees that are charged by a local
  583  government for attachments to utility poles owned by the local
  584  government.
  585         11. Utility service fees or other similar user fees for
  586  utility services.
  587         12. Any other generally applicable tax, fee, charge, or
  588  imposition authorized by general law on July 1, 2000, which is
  589  not specifically prohibited by this subsection or included as a
  590  replaced revenue source in s. 202.20.
  591         Section 11. Paragraph (j) of subsection (3) of section
  592  202.26, Florida Statutes, is amended to read:
  593         202.26 Department powers.—
  594         (3) To administer the tax imposed by this chapter, the
  595  department may adopt rules relating to:
  596         (j) The types of books and records kept in the regular
  597  course of business which must be available during an audit of a
  598  dealer’s books and records when the dealer has made an
  599  allocation or attribution pursuant to the definition of sales
  600  prices in s. 202.11(15)(b)8. 202.11(13)(b)8. and examples of
  601  methods for determining the reasonableness thereof. Books and
  602  records kept in the regular course of business include, but are
  603  not limited to, general ledgers, price lists, cost records,
  604  customer billings, billing system reports, tariffs, and other
  605  regulatory filings and rules of regulatory authorities. The Such
  606  records may be required to be made available to the department
  607  in an electronic format when so kept by the dealer. The dealer
  608  may support the allocation of charges with books and records
  609  kept in the regular course of business covering the dealer’s
  610  entire service area, including territories outside this state.
  611  During an audit, the department may reasonably require
  612  production of any additional books and records found necessary
  613  to assist in its determination.
  614         Section 12. Paragraph (a) of subsection (1) of section
  615  203.01, Florida Statutes, is amended to read:
  616         203.01 Tax on gross receipts for utility and communications
  617  services.—
  618         (1)(a)1. A tax is imposed on gross receipts from utility
  619  services that are delivered to a retail consumer in this state.
  620  The Such tax shall be levied as provided in paragraphs (b)-(j).
  621         2. A tax is levied on communications services as defined in
  622  s. 202.11(1) 202.11(2). The Such tax shall be applied to the
  623  same services and transactions as are subject to taxation under
  624  chapter 202, and to communications services that are subject to
  625  the exemption provided in s. 202.125(1). The Such tax shall be
  626  applied to the sales price of communications services when sold
  627  at retail, as the such terms are defined in s. 202.11, shall be
  628  due and payable at the same time as the taxes imposed pursuant
  629  to chapter 202, and shall be administered and collected pursuant
  630  to the provisions of chapter 202.
  631         Section 13. Paragraph (e) of subsection (1) of section
  632  212.05, Florida Statutes, is amended to read:
  633         212.05 Sales, storage, use tax.—It is hereby declared to be
  634  the legislative intent that every person is exercising a taxable
  635  privilege who engages in the business of selling tangible
  636  personal property at retail in this state, including the
  637  business of making mail order sales, or who rents or furnishes
  638  any of the things or services taxable under this chapter, or who
  639  stores for use or consumption in this state any item or article
  640  of tangible personal property as defined herein and who leases
  641  or rents such property within the state.
  642         (1) For the exercise of such privilege, a tax is levied on
  643  each taxable transaction or incident, which tax is due and
  644  payable as follows:
  645         (e)1. At the rate of 6 percent on charges for:
  646         a. Prepaid calling arrangements. The tax on charges for
  647  prepaid calling arrangements shall be collected at the time of
  648  sale and remitted by the selling dealer.
  649         (I) “Prepaid calling arrangement” means the separately
  650  stated retail sale by advance payment of communications services
  651  that must be paid for in advance; that may be used to place or
  652  receive consist exclusively of telephone calls; that are enabled
  653  originated by using an access number, authorization code, or
  654  other means that may be manually, electronically, or otherwise
  655  entered; and that are sold in predetermined units or dollars
  656  whose number declines on a predetermined basis with use in a
  657  known amount.
  658         (II) If the sale or recharge of the prepaid calling
  659  arrangement does not take place at the dealer’s place of
  660  business, it shall be deemed to take place at the customer’s
  661  shipping address or, if no item is shipped, at the customer’s
  662  address or the location associated with the customer’s mobile
  663  telephone number.
  664         (III) The sale or recharge of a prepaid calling arrangement
  665  shall be treated as a sale of tangible personal property for
  666  purposes of this chapter, whether or not a tangible item
  667  evidencing such arrangement is furnished to the purchaser, and
  668  such sale within this state subjects the selling dealer to the
  669  jurisdiction of this state for purposes of this subsection.
  670         b. The installation of telecommunication and telegraphic
  671  equipment.
  672         c. Electrical power or energy, except that the tax rate for
  673  charges for electrical power or energy is 7 percent.
  674         2. The provisions of s. 212.17(3), regarding credit for tax
  675  paid on charges subsequently found to be worthless, shall be
  676  equally applicable to any tax paid under the provisions of this
  677  section on charges for prepaid calling arrangements,
  678  telecommunication or telegraph services, or electric power
  679  subsequently found to be uncollectible. The word “charges” in
  680  this paragraph does not include any excise or similar tax levied
  681  by the Federal Government, any political subdivision of the
  682  state, or any municipality upon the purchase, sale, or recharge
  683  of prepaid calling arrangements or upon the purchase or sale of
  684  telecommunication, television system program, or telegraph
  685  service or electric power, which tax is collected by the seller
  686  from the purchaser.
  687         Section 14. Paragraph (a) of subsection (1) of section
  688  610.118, Florida Statutes, is amended to read:
  689         610.118 Impairment; court-ordered operations.—
  690         (1) If an incumbent cable or video service provider is
  691  required to operate under its existing franchise and is legally
  692  prevented by a lawfully issued order of a court of competent
  693  jurisdiction from exercising its right to terminate its existing
  694  franchise pursuant to the terms of s. 610.105, any
  695  certificateholder providing cable service or video service in
  696  whole or in part within the service area that is the subject of
  697  the incumbent cable or video service provider’s franchise shall,
  698  for as long as the court order remains in effect, comply with
  699  the following franchise terms and conditions as applicable to
  700  the incumbent cable or video service provider in the service
  701  area:
  702         (a) The certificateholder shall pay to the municipality or
  703  county:
  704         1. Any prospective lump-sum or recurring per-subscriber
  705  funding obligations to support public, educational, and
  706  governmental access channels or other prospective franchise
  707  required monetary grants related to public, educational, or
  708  governmental access facilities equipment and capital costs.
  709  Prospective lump-sum payments shall be made on an equivalent
  710  per-subscriber basis calculated as follows: the amount of the
  711  prospective funding obligations divided by the number of
  712  subscribers being served by the incumbent cable service provider
  713  at the time of payment, divided by the number of months
  714  remaining in the incumbent cable or video service provider’s
  715  franchise equals the monthly per subscriber amount to be paid by
  716  the certificateholder until the expiration or termination of the
  717  incumbent cable or video service provider’s franchise; and
  718         2. If the incumbent cable or video service provider is
  719  required to make payments for the funding of an institutional
  720  network, the certificateholder shall pay an amount equal to the
  721  incumbent’s funding obligations but not to exceed 1 percent of
  722  the sales price, as defined in s. 202.11(15) 202.11(13), for the
  723  taxable monthly retail sales of cable or video programming
  724  services the certificateholder received from subscribers in the
  725  affected municipality or county. All definitions and exemptions
  726  under chapter 202 apply in the determination of taxable monthly
  727  retail sales of cable or video programming services.
  728         Section 15. Section 624.105, Florida Statutes, is amended
  729  to read:
  730         624.105 Waiver of customer liability.—Any regulated company
  731  as defined in s. 350.111, any electric utility as defined in s.
  732  366.02(2), any utility as defined in s. 367.021(12) or s.
  733  367.022(2) and (7), and any provider of communications services
  734  as defined in s. 202.11(1) 202.11(2) may charge for and include
  735  an optional waiver of liability provision in their customer
  736  contracts under which the entity agrees to waive all or a
  737  portion of the customer’s liability for service from the entity
  738  for a defined period in the event of the customer’s call to
  739  active military service, death, disability, involuntary
  740  unemployment, qualification for family leave, or similar
  741  qualifying event or condition. Such provisions may not be
  742  effective in the customer’s contract with the entity unless
  743  affirmatively elected by the customer. No such provision shall
  744  constitute insurance so long as the provision is a contract
  745  between the entity and its customer.
  746         Section 16. The following changes made in this act are
  747  intended to be remedial in nature and apply retroactively, but
  748  do not provide a basis for an assessment of any tax not paid or
  749  create a right to a refund or credit of any tax paid before the
  750  general effective date of this act:
  751         (1) The changes made in section 2 of this act to
  752  subsections renumbered as subsections (9), (11), and (15) of s.
  753  202.11, Florida Statutes;
  754         (2) The changes made in section 8 of this act to s. 202.22,
  755  Florida Statutes; and
  756         (3) The changes made in section 13 of this act to paragraph
  757  (e) of subsection (1) of s. 212.05, Florida Statutes.
  758         Section 17. This act shall take effect July 1, 2012.
  760  ================= T I T L E  A M E N D M E N T ================
  761         And the title is amended as follows:
  762         Delete everything before the enacting clause
  763  and insert:
  764                        A bill to be entitled                      
  765         An act relating to communications services taxes;
  766         amending s. 202.105, F.S.; revising legislative
  767         intent; amending s. 202.11, F.S.; modifying
  768         definitions; removing the definition of the term
  769         “cable service”; adding definitions for the terms
  770         “digital good,” “digital service,” “Internet access
  771         service,” and “video service”; amending ss. 202.125,
  772         202.16, 202.20, and 202.24, F.S.; conforming
  773         provisions to changes in terminology; amending s.
  774         202.18, F.S.; removing a cross-reference to conform;
  775         amending s. 202.195, F.S.; clarifying provisions
  776         exempting from the public records law certain
  777         proprietary confidential business information held by
  778         a local governmental entity for the purpose of
  779         assessing the local communications services tax;
  780         amending s. 202.22, F.S.; revising provisions relating
  781         to a communications services dealer’s liability for
  782         tax underpayments that result from the incorrect
  783         assignment of service addresses to local taxing
  784         jurisdictions and providing requirements and
  785         conditions with respect thereto; prohibiting the
  786         Department of Revenue from denying a dealer of
  787         communications services a deduction of a specified
  788         amount as a collection allowance under certain
  789         circumstances; amending s. 202.231, F.S.; requiring
  790         the Department of Revenue to aggregate monthly and
  791         make available to the public on a jurisdiction-by
  792         jurisdiction basis certain sales and net tax
  793         information; amending s. 202.26, F.S.; conforming a
  794         cross-reference; amending s. 212.05, F.S.; revising
  795         the definition of the term “prepaid calling
  796         arrangement”; amending ss. 203.01, 610.118, and
  797         624.105, F.S.; conforming cross-references; providing
  798         for certain retroactive effect; providing an effective
  799         date.