Florida Senate - 2012 COMMITTEE AMENDMENT
Bill No. CS for SB 1060
Senate . House
Comm: RCS .
The Committee on Community Affairs (Ring) recommended the
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
38 Section 2. Section 202.11, Florida Statutes, is amended to
40 202.11 Definitions.—As used in this chapter, the term:
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
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
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
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
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
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 consist exclusively of telephone calls originated by using
132 an access number, authorization code, or other means that may be
133 manually, electronically, or otherwise entered , and that are
134 sold in predetermined units or dollars of which the number
135 declines with use in a known amount.
136 (12) (10) “Purchaser” means the person paying for or
137 obligated to pay for communications services.
138 (13) (11) “Retail sale” means the sale of communications
139 services for any purpose other than for resale or for use as a
140 component part of or for integration into communications
141 services to be resold in the ordinary course of business.
142 However, any sale for resale must comply with s. 202.16(2) and
143 the rules adopted thereunder.
144 (14) (12) “Sale” means the provision of communications
145 services for a consideration.
146 (15) (13) “Sales price” means the total amount charged in
147 money or other consideration by a dealer for the sale of the
148 right or privilege of using communications services in this
149 state, including any property or other service, not described in
150 paragraph (a), which is services that are part of the sale and
151 for which the charge is not separately itemized on a customer’s
152 bill or separately allocated under subparagraph (b)8. The sales
153 price of communications services may shall not be reduced by any
154 separately identified components of the charge which that
155 constitute expenses of the dealer, including, but not limited
156 to, sales taxes on goods or services purchased by the dealer,
157 property taxes, taxes measured by net income, and universal
158 service fund fees.
159 (a) The sales price of communications services includes
160 shall include, whether or not separately stated, charges for any
161 of the following:
162 1. The connection, movement, change, or termination of
163 communications services.
164 2. The detailed billing of communications services.
165 3. The sale of directory listings in connection with a
166 communications service.
167 4. Central office and custom calling features.
168 5. Voice mail and other messaging service.
169 6. Directory assistance.
170 7. The service of sending or receiving a document commonly
171 referred to as a facsimile or “fax,” except when performed
172 during the course of providing professional or advertising
174 (b) The sales price of communications services does not
175 include charges for any of the following:
176 1. An Any excise tax, sales tax, or similar tax levied by
177 the United States or any state or local government on the
178 purchase, sale, use, or consumption of any communications
179 service, including, but not limited to, a any tax imposed under
180 this chapter or chapter 203 which is permitted or required to be
181 added to the sales price of such service, if the tax is stated
183 2. A Any fee or assessment levied by the United States or
184 any state or local government, including, but not limited to,
185 regulatory fees and emergency telephone surcharges, which must
186 is required to be added to the price of the such service if the
187 fee or assessment is separately stated.
188 3. Communications services paid for by inserting coins into
189 coin-operated communications devices available to the public.
190 4. The sale or recharge of a prepaid calling arrangement.
191 5. The provision of air-to-ground communications services,
192 defined as a radio service provided to a purchaser purchasers
193 while on board an aircraft.
194 6. A dealer’s internal use of communications services in
195 connection with its business of providing communications
197 7. Charges for property or other services that are not part
198 of the sale of communications services, if such charges are
199 stated separately from the charges for communications services.
200 8. To the extent required by federal law, Charges for goods
201 and services that are exempt from tax under this chapter,
202 including Internet access services but excluding any item
203 described in paragraph (a), that which are not separately
204 itemized on a customer’s bill, but that which can be reasonably
205 identified from the selling dealer’s books and records kept in
206 the regular course of business. The dealer may support the
207 allocation of charges with books and records kept in the regular
208 course of business covering the dealer’s entire service area,
209 including territories outside this state.
210 (16) (14) “Service address” means:
211 (a) Except as otherwise provided in this section:
212 1. The location of the communications equipment from which
213 communications services originate or at which communications
214 services are received by the customer;
215 2. In the case of a communications service paid through a
216 credit or payment mechanism that does not relate to a service
217 address, such as a bank, travel, debit, or credit card, and in
218 the case of third-number and calling-card calls, the term
219 “service address” means the address of the central office, as
220 determined by the area code and the first three digits of the
221 seven-digit originating telephone number; or
222 3. If the location of the equipment described in
223 subparagraph 1. is not known and subparagraph 2. is
224 inapplicable, the term “service address” means the location of
225 the customer’s primary use of the communications service. For
226 purposes of this subparagraph, the location of the customer’s
227 primary use of a communications service is the residential
228 street address or the business street address of the customer.
229 (b) In the case of video cable services and direct-to-home
230 satellite services, the location where the customer receives the
231 services in this state.
232 (c) In the case of mobile communications services, the
233 customer’s place of primary use.
234 (17) (15) “Unbundled network element” means a network
235 element, as defined in 47 U.S.C. s. 153(29), to which access is
236 provided on an unbundled basis pursuant to 47 U.S.C. s.
238 (18) (16) “Private communications service” means a
239 communications service that entitles the subscriber or user to
240 exclusive or priority use of a communications channel or group
241 of channels between or among channel termination points,
242 regardless of the manner in which such channel or channels are
243 connected, and includes switching capacity, extension lines,
244 stations, and any other associated services that which are
245 provided in connection with the use of such channel or channels.
246 (19) (17)(a) “Customer” means:
247 1. The person or entity that contracts with the home
248 service provider for mobile communications services; or
249 2. If the end user of mobile communications services is not
250 the contracting party, the end user of the mobile communications
251 service. This subparagraph only applies for the purpose of
252 determining the place of primary use.
253 (b) “Customer” does not include:
254 1. A reseller of mobile communications services; or
255 2. A serving carrier under an agreement to serve the
256 customer outside the home service provider’s licensed service
258 (20) (18) “Enhanced zip code” means a United States postal
259 zip code of 9 or more digits.
260 (21) (19) “Home service provider” means the facilities-based
261 carrier or reseller with which the customer contracts for the
262 provision of mobile communications services.
263 (22) (20) “Licensed service area” means the geographic area
264 in which the home service provider is authorized by law or
265 contract to provide mobile communications service to the
267 (23) (21) “Place of primary use” means the street address
268 representative of where the customer’s use of the mobile
269 communications service primarily occurs, which must be:
270 (a) The residential street address or the primary business
271 street address of the customer; and
272 (b) Within the licensed service area of the home service
274 (24) (22)(a) “Reseller” means a provider who purchases
275 communications services from another communications service
276 provider and then resells, uses as a component part of, or
277 integrates the purchased services into a mobile communications
279 (b) The term “Reseller” does not include a serving carrier
280 with which a home service provider arranges for the services to
281 its customers outside the home service provider’s licensed
282 service area.
283 (25) (23) “Serving carrier” means a facilities-based carrier
284 providing mobile communications service to a customer outside a
285 home service provider’s or reseller’s licensed service area.
286 (26) (24) “Video service” means the transmission of video,
287 audio, or other programming service to a purchaser, and the
288 purchaser interaction, if any, required for the selection or use
289 of a programming service, regardless of whether the programming
290 is transmitted over facilities owned or operated by the video
291 service provider or over facilities owned or operated by another
292 dealer of communications services. The term includes point-to
293 point and point-to-multipoint distribution services through
294 which programming is transmitted or broadcast by microwave or
295 other equipment directly to the purchaser’s premises, but does
296 not include direct-to-home satellite service. The term includes
297 basic, extended, premium, pay-per-view, digital video, two-way
298 cable, and music services has the same meaning as that provided
299 in s. 610.103.
300 Section 3. Subsection (1) of section 202.125, Florida
301 Statutes, is amended to read:
302 202.125 Sales of communications services; specified
304 (1) The separately stated sales price of communications
305 services sold to residential households is exempt from the tax
306 imposed by s. 202.12 and s. 203.01(1)(b)3. This exemption does
307 not apply to any residence that constitutes all or part of a
308 transient public lodging establishment as defined in chapter
309 509, any mobile communications service, any video cable service,
310 or any direct-to-home satellite service.
311 Section 4. Paragraph (a) of subsection (2) of section
312 202.16, Florida Statutes, is amended to read:
313 202.16 Payment.—The taxes imposed or administered under
314 this chapter and chapter 203 shall be collected from all dealers
315 of taxable communications services on the sale at retail in this
316 state of communications services taxable under this chapter and
317 chapter 203. The full amount of the taxes on a credit sale,
318 installment sale, or sale made on any kind of deferred payment
319 plan is due at the moment of the transaction in the same manner
320 as a cash sale.
321 (2)(a) A sale of communications services that are used as a
322 component part of or integrated into a communications service or
323 prepaid calling arrangement for resale, including, but not
324 limited to, carrier-access charges, interconnection charges paid
325 by providers of mobile communication services or other
326 communication services, charges paid by a video cable service
327 provider providers for the purchase of video programming or the
328 transmission of video or other programming by another dealer of
329 communications services, charges for the sale of unbundled
330 network elements, and any other intercompany charges for the use
331 of facilities for providing communications services for resale,
332 must be made in compliance with the rules of the department. A
333 Any person who makes a sale for resale which is not in
334 compliance with these rules is liable for any tax, penalty, and
335 interest due for failing to comply, to be calculated pursuant to
336 s. 202.28(2)(a).
337 Section 5. Paragraph (c) of subsection (3) of section
338 202.18, Florida Statutes, is amended to read:
339 202.18 Allocation and disposition of tax proceeds.—The
340 proceeds of the communications services taxes remitted under
341 this chapter shall be treated as follows:
343 (c)1. Except as otherwise provided in this paragraph,
344 proceeds of the taxes levied pursuant to s. 202.19, less amounts
345 deducted for costs of administration in accordance with
346 paragraph (b), shall be distributed monthly to the appropriate
347 jurisdictions. The proceeds of taxes imposed pursuant to s.
348 202.19(5) shall be distributed in the same manner as
349 discretionary surtaxes are distributed, in accordance with ss.
350 212.054 and 212.055.
351 2. The department shall make any adjustments to the
352 distributions pursuant to this section which are necessary to
353 reflect the proper amounts due to individual jurisdictions or
354 trust funds. In the event that the department adjusts amounts
355 due to reflect a correction in the situsing of a customer, such
356 adjustment shall be limited to the amount of tax actually
357 collected from such customer by the dealer of communication
359 3.a. Notwithstanding the time period specified in s.
360 202.22 (5), Adjustments in distributions which are necessary to
361 correct misallocations between jurisdictions shall be governed
362 by this subparagraph. If the department determines that
363 misallocations between jurisdictions occurred, it shall provide
364 written notice of such determination to all affected
365 jurisdictions. The notice shall include the amount of the
366 misallocations, the basis upon which the determination was made,
367 data supporting the determination, and the identity of each
368 affected jurisdiction. The notice shall also inform all affected
369 jurisdictions of their authority to enter into a written
370 agreement establishing a method of adjustment as described in
371 sub-subparagraph c.
372 b. An adjustment affecting a distribution to a jurisdiction
373 which is less than 90 percent of the average monthly
374 distribution to that jurisdiction for the 6 months immediately
375 preceding the department’s determination, as reported by all
376 communications services dealers, shall be made in the month
377 immediately following the department’s determination that
378 misallocations occurred.
379 c. If an adjustment affecting a distribution to a
380 jurisdiction equals or exceeds 90 percent of the average monthly
381 distribution to that jurisdiction for the 6 months immediately
382 preceding the department’s determination, as reported by all
383 communications services dealers, the affected jurisdictions may
384 enter into a written agreement establishing a method of
385 adjustment. If the agreement establishing a method of adjustment
386 provides for payments of local communications services tax
387 monthly distributions, the amount of any such payment agreed to
388 may not exceed the local communications services tax monthly
389 distributions available to the jurisdiction that was allocated
390 amounts in excess of those to which it was entitled. If affected
391 jurisdictions execute a written agreement specifying a method of
392 adjustment, a copy of the written agreement shall be provided to
393 the department no later than the first day of the month
394 following 90 days after the date the department transmits notice
395 of the misallocation. If the department does not receive a copy
396 of the written agreement within the specified time period, an
397 adjustment affecting a distribution to a jurisdiction made
398 pursuant to this sub-subparagraph shall be prorated over a time
399 period that equals the time period over which the misallocations
401 Section 6. Subsections (1) and (3) of section 202.195,
402 Florida Statutes, are amended to read:
403 202.195 Proprietary confidential business information;
404 public records exemption.—
405 (1) Proprietary confidential business information obtained
406 from a telecommunications company or from a franchised or
407 certificated video service provider cable company for the
408 purposes of imposing fees for occupying the public rights-of
409 way, assessing the local communications services tax pursuant to
410 s. 202.19, or occupying or regulating the public rights-of-way,
411 held by a local governmental entity, is confidential and exempt
412 from s. 119.07(1) and s. 24(a), Art. I of the State
413 Constitution. Such proprietary confidential business information
414 held by a local governmental entity may be used only for the
415 purposes of imposing such fees, assessing such tax , or
416 regulating such rights-of-way, and may not be used for any other
417 purposes, including, but not limited to, commercial or
418 competitive purposes.
419 (3) Nothing in This exemption does not expand expands the
420 information or documentation that a local governmental entity
421 may properly request under applicable law pursuant to the
422 imposition of fees for occupying the rights-of-way, the local
423 communication services tax, or the regulation of its public
425 Section 7. Paragraph (b) of subsection (2) of section
426 202.20, Florida Statutes, is amended to read:
427 202.20 Local communications services tax conversion rates.—
429 (b) Except as otherwise provided in this subsection, the
430 term “replaced revenue sources,” as used in this section, means
431 the following taxes, charges, fees, or other impositions to the
432 extent that the respective local taxing jurisdictions were
433 authorized to impose them prior to July 1, 2000.
434 1. With respect to municipalities and charter counties and
435 the taxes authorized by s. 202.19(1):
436 a. The public service tax on telecommunications authorized
437 by former s. 166.231(9).
438 b. Franchise fees on video cable service providers as
439 authorized by 47 U.S.C. s. 542.
440 c. The public service tax on prepaid calling arrangements.
441 d. Franchise fees on dealers of communications services
442 which use the public roads or rights-of-way, up to the limit set
443 forth in s. 337.401. For purposes of calculating rates under
444 this section, it is the legislative intent that charter counties
445 be treated as having had the same authority as municipalities to
446 impose franchise fees on recurring local telecommunication
447 service revenues before prior to July 1, 2000. However, the
448 Legislature recognizes that the authority of charter counties to
449 impose such fees is in dispute, and the treatment provided in
450 this section is not an expression of legislative intent that
451 charter counties actually do or do not possess such authority.
452 e. Actual permit fees relating to placing or maintaining
453 facilities in or on public roads or rights-of-way, collected
454 from providers of long-distance, cable, and mobile
455 communications services for the fiscal year ending September 30,
456 1999; however, if a municipality or charter county elects the
457 option to charge permit fees pursuant to s. 337.401(3)(c)1.a.,
458 such fees may shall not be included as a replaced revenue
460 2. With respect to all other counties and the taxes
461 authorized in s. 202.19(1), franchise fees on video cable
462 service providers as authorized by 47 U.S.C. s. 542.
463 Section 8. Subsections (5) and (6) of section 202.22,
464 Florida Statutes, are amended to read:
465 202.22 Determination of local tax situs.—
466 (5) If a dealer of communications services does not use one
467 or more of the methods specified in subsection (1) for
468 determining the local taxing jurisdiction in which one or more
469 service addresses are a service address is located and: ,
470 (a) The dealer’s failure to use one or more of such methods
471 results in a net aggregate underpayment of all taxes levied
472 pursuant to s. 202.19 with respect to one or more tax periods
473 that are being examined by the department; and
474 (b) The department has determined the misallocations
475 between jurisdictions for all taxes levied pursuant to s. 202.19
476 and collected by the dealer with respect to any tax period being
477 examined by the department; then,
479 the dealer of communications services may be held liable to the
480 department for the net aggregate underpayment of any tax, and
481 for including interest and penalties attributable to the net
482 aggregate underpayment of tax, which is due as a result of
483 assigning one or more the service addresses address to an
484 incorrect local taxing jurisdiction. However, the dealer of
485 communications services is not liable for any tax, interest, or
486 penalty under this subsection unless the department has
487 determined the net aggregate underpayment of tax for any tax
488 period that is being examined, taking into account all
489 underpayments and overpayments for such period or periods to the
490 extent that such amount was collected and remitted by the dealer
491 of communications services with respect to a tax imposed by
492 another local taxing jurisdiction. Upon determining that an
493 amount was collected and remitted by a dealer of communications
494 services with respect to a tax imposed by another local taxing
495 jurisdiction, the department shall adjust the respective amounts
496 of the proceeds paid to each such taxing jurisdiction under s.
497 202.18 in the month immediately following such determination .
498 (6)(a) Pursuant to rules adopted by the department, each
499 dealer of communications services must notify the department of
500 the methods it intends to employ for determining the local
501 taxing jurisdiction in which service addresses are located.
502 (b) Notwithstanding s. 202.28, if a dealer of
503 communications services:
504 1. Employs a method of assigning service addresses other
505 than as set forth in paragraph (1)(a), paragraph (1)(b), or
506 paragraph (1)(c), the deduction allowed to the dealer of
507 communications services as compensation under s. 202.28 shall be
508 0.25 percent of that portion of the tax due and accounted for
509 and remitted to the department which is attributable to such
510 method of assigning service addresses other than as set forth in
511 paragraph (1)(a), paragraph (1)(b), or paragraph (1)(c).
512 2. Employs a method of assigning service addresses as set
513 forth in paragraph (1)(a), paragraph (1)(b), or paragraph
514 (1)(c), the department may not deny the deduction allowed to the
515 dealer of communications services as compensation allowed under
516 s. 202.28 because the dealer assigned one or more service
517 addresses to an incorrect local taxing jurisdiction.
518 Section 9. Subsection (3) is added to section 202.231,
519 Florida Statutes, to read:
520 202.231 Provision of information to local taxing
522 (3) The gross taxable sales and net tax information
523 contained in the monthly reports required by this section shall
524 be aggregated on a jurisdiction-by-jurisdiction basis, and the
525 aggregate jurisdiction-by-jurisdiction information shall be made
526 available by the department to the public through the
527 department’s website for each fiscal year this chapter has been
528 in effect.
529 Section 10. Paragraphs (a) and (c) of subsection (2) of
530 section 202.24, Florida Statutes, are amended to read:
531 202.24 Limitations on local taxes and fees imposed on
532 dealers of communications services.—
533 (2)(a) Except as provided in paragraph (c), each public
534 body is prohibited from:
535 1. Levying on or collecting from dealers or purchasers of
536 communications services any tax, charge, fee, or other
537 imposition on or with respect to the provision or purchase of
538 communications services.
539 2. Requiring any dealer of communications services to enter
540 into or extend the term of a franchise or other agreement that
541 requires the payment of a tax, charge, fee, or other imposition.
542 3. Adopting or enforcing any provision of any ordinance or
543 agreement to the extent that such provision obligates a dealer
544 of communications services to charge, collect, or pay to the
545 public body a tax, charge, fee, or other imposition.
547 Municipalities and counties may not negotiate those terms and
548 conditions related to franchise fees or the definition of gross
549 revenues or other definitions or methodologies related to the
550 payment or assessment of franchise fees on providers of cable or
551 video services.
552 (c) This subsection does not apply to:
553 1. Local communications services taxes levied under this
555 2. Ad valorem taxes levied pursuant to chapter 200.
556 3. Business taxes levied under chapter 205.
557 4. “911” service charges levied under chapter 365.
558 5. Amounts charged for the rental or other use of property
559 owned by a public body which is not in the public rights-of-way
560 to a dealer of communications services for any purpose,
561 including, but not limited to, the placement or attachment of
562 equipment used in the provision of communications services.
563 6. Permit fees of general applicability which are not
564 related to placing or maintaining facilities in or on public
565 roads or rights-of-way.
566 7. Permit fees related to placing or maintaining facilities
567 in or on public roads or rights-of-way pursuant to s. 337.401.
568 8. Any in-kind requirements, institutional networks, or
569 contributions for, or in support of, the use or construction of
570 public, educational, or governmental access facilities allowed
571 under federal law and imposed on providers of cable or video
572 service pursuant to any existing ordinance or an existing
573 franchise agreement granted by each municipality or county,
574 under which ordinance or franchise agreement service is provided
575 before prior to July 1, 2007, or as permitted under chapter 610.
576 Nothing in This subparagraph does not shall prohibit the ability
577 of providers of cable or video service from recovering the to
578 recover such expenses as allowed under federal law.
579 9. Special assessments and impact fees.
580 10. Pole attachment fees that are charged by a local
581 government for attachments to utility poles owned by the local
583 11. Utility service fees or other similar user fees for
584 utility services.
585 12. Any other generally applicable tax, fee, charge, or
586 imposition authorized by general law on July 1, 2000, which is
587 not specifically prohibited by this subsection or included as a
588 replaced revenue source in s. 202.20.
589 Section 11. Paragraph (j) of subsection (3) of section
590 202.26, Florida Statutes, is amended to read:
591 202.26 Department powers.—
592 (3) To administer the tax imposed by this chapter, the
593 department may adopt rules relating to:
594 (j) The types of books and records kept in the regular
595 course of business which must be available during an audit of a
596 dealer’s books and records when the dealer has made an
597 allocation or attribution pursuant to the definition of sales
598 prices in s. 202.11(15)(b)8. 202.11 (13)(b)8. and examples of
599 methods for determining the reasonableness thereof. Books and
600 records kept in the regular course of business include, but are
601 not limited to, general ledgers, price lists, cost records,
602 customer billings, billing system reports, tariffs, and other
603 regulatory filings and rules of regulatory authorities. The Such
604 records may be required to be made available to the department
605 in an electronic format when so kept by the dealer. The dealer
606 may support the allocation of charges with books and records
607 kept in the regular course of business covering the dealer’s
608 entire service area, including territories outside this state.
609 During an audit, the department may reasonably require
610 production of any additional books and records found necessary
611 to assist in its determination.
612 Section 12. Paragraph (a) of subsection (1) of section
613 203.01, Florida Statutes, is amended to read:
614 203.01 Tax on gross receipts for utility and communications
616 (1)(a)1. A tax is imposed on gross receipts from utility
617 services that are delivered to a retail consumer in this state.
618 The Such tax shall be levied as provided in paragraphs (b)-(j).
619 2. A tax is levied on communications services as defined in
620 s. 202.11(1) 202.11 (2). The Such tax shall be applied to the
621 same services and transactions as are subject to taxation under
622 chapter 202, and to communications services that are subject to
623 the exemption provided in s. 202.125(1). The Such tax shall be
624 applied to the sales price of communications services when sold
625 at retail, as the such terms are defined in s. 202.11, shall be
626 due and payable at the same time as the taxes imposed pursuant
627 to chapter 202, and shall be administered and collected pursuant
628 to the provisions of chapter 202.
629 Section 13. Paragraph (a) of subsection (1) of section
630 610.118, Florida Statutes, is amended to read:
631 610.118 Impairment; court-ordered operations.—
632 (1) If an incumbent cable or video service provider is
633 required to operate under its existing franchise and is legally
634 prevented by a lawfully issued order of a court of competent
635 jurisdiction from exercising its right to terminate its existing
636 franchise pursuant to the terms of s. 610.105, any
637 certificateholder providing cable service or video service in
638 whole or in part within the service area that is the subject of
639 the incumbent cable or video service provider’s franchise shall,
640 for as long as the court order remains in effect, comply with
641 the following franchise terms and conditions as applicable to
642 the incumbent cable or video service provider in the service
644 (a) The certificateholder shall pay to the municipality or
646 1. Any prospective lump-sum or recurring per-subscriber
647 funding obligations to support public, educational, and
648 governmental access channels or other prospective franchise
649 required monetary grants related to public, educational, or
650 governmental access facilities equipment and capital costs.
651 Prospective lump-sum payments shall be made on an equivalent
652 per-subscriber basis calculated as follows: the amount of the
653 prospective funding obligations divided by the number of
654 subscribers being served by the incumbent cable service provider
655 at the time of payment, divided by the number of months
656 remaining in the incumbent cable or video service provider’s
657 franchise equals the monthly per subscriber amount to be paid by
658 the certificateholder until the expiration or termination of the
659 incumbent cable or video service provider’s franchise; and
660 2. If the incumbent cable or video service provider is
661 required to make payments for the funding of an institutional
662 network, the certificateholder shall pay an amount equal to the
663 incumbent’s funding obligations but not to exceed 1 percent of
664 the sales price, as defined in s. 202.11(15) 202.11 (13), for the
665 taxable monthly retail sales of cable or video programming
666 services the certificateholder received from subscribers in the
667 affected municipality or county. All definitions and exemptions
668 under chapter 202 apply in the determination of taxable monthly
669 retail sales of cable or video programming services.
670 Section 14. Section 624.105, Florida Statutes, is amended
671 to read:
672 624.105 Waiver of customer liability.—Any regulated company
673 as defined in s. 350.111, any electric utility as defined in s.
674 366.02(2), any utility as defined in s. 367.021(12) or s.
675 367.022(2) and (7), and any provider of communications services
676 as defined in s. 202.11(1) 202.11 (2) may charge for and include
677 an optional waiver of liability provision in their customer
678 contracts under which the entity agrees to waive all or a
679 portion of the customer’s liability for service from the entity
680 for a defined period in the event of the customer’s call to
681 active military service, death, disability, involuntary
682 unemployment, qualification for family leave, or similar
683 qualifying event or condition. Such provisions may not be
684 effective in the customer’s contract with the entity unless
685 affirmatively elected by the customer. No such provision shall
686 constitute insurance so long as the provision is a contract
687 between the entity and its customer.
688 Section 15. The following changes made in this act are
689 intended to be remedial in nature and apply retroactively, but
690 do not provide a basis for an assessment of any tax not paid or
691 create a right to a refund or credit of any tax paid before the
692 general effective date of this act:
693 (1) The changes made in section 2 of this act to
694 subsections renumbered as subsections (9) and (15) of s. 202.11,
695 Florida Statutes.
696 (2) The changes made in section 8 of this act to s. 202.22,
697 Florida Statutes.
698 Section 16. This act shall take effect July 1, 2012.
700 ================= T I T L E A M E N D M E N T ================
701 And the title is amended as follows:
702 Delete everything before the enacting clause
703 and insert:
704 A bill to be entitled
705 An act relating to communications services taxes;
706 amending s. 202.105, F.S.; revising legislative
707 intent; amending s. 202.11, F.S.; modifying
708 definitions; removing the definition of the term
709 “cable service”; adding definitions for the terms
710 “digital good,” “digital service,” and “Internet
711 access service”; revising the definitions of the terms
712 “communication services,” “information service,”
713 “mobile communication service,” “sales price,”
714 “service address,” and “video service”; amending ss.
715 202.125, 202.16, 202.20, and 202.24, F.S.; conforming
716 provisions to changes in terminology; amending s.
717 202.18, F.S.; removing a cross-reference to conform;
718 amending s. 202.195, F.S.; clarifying provisions
719 exempting from the public records law certain
720 proprietary confidential business information held by
721 a local governmental entity for the purpose of
722 assessing the local communications services tax;
723 amending s. 202.22, F.S.; revising provisions relating
724 to a communications services dealer’s liability for
725 tax underpayments that result from the incorrect
726 assignment of service addresses to local taxing
727 jurisdictions and providing requirements and
728 conditions with respect thereto; prohibiting the
729 department from denying a dealer of communications
730 services a deduction of a specified amount as a
731 collection allowance under certain circumstances;
732 amending s. 202.231, F.S.; requiring the Department of
733 Revenue to aggregate monthly and make available to the
734 public on a jurisdiction-by-jurisdiction basis certain
735 sales and net tax information; amending s. 202.26,
736 F.S.; conforming a cross-reference; amending ss.
737 203.01, 610.118, and 624.105, F.S.; conforming cross
738 references; providing for certain retroactive effect;
739 providing an effective date.