Florida Senate - 2012                             CS for SB 1060
       By the Committee on Communications, Energy, and Public
       Utilities; and Senator Bogdanoff
       579-02577-12                                          20121060c1
    1                        A bill to be entitled                      
    2         An act relating to communications services taxes;
    3         amending s. 202.105, F.S.; revising legislative
    4         intent; amending s. 202.11, F.S.; modifying
    5         definitions; removing the definition of the term
    6         “cable service”; adding definitions for the terms
    7         “digital good,” “digital service,” “Internet access
    8         service,” and “video service”; amending ss. 202.125,
    9         202.16, 202.20, and 202.24, F.S.; conforming
   10         provisions to changes in terminology; amending s.
   11         202.18, F.S.; removing a cross-reference to conform;
   12         amending s. 202.195, F.S.; clarifying provisions
   13         exempting from the public records law certain
   14         proprietary confidential business information held by
   15         a local governmental entity for the purpose of
   16         assessing the local communications services tax;
   17         amending s. 202.22, F.S.; revising provisions relating
   18         to a communications services dealer’s liability for
   19         tax underpayments that result from the incorrect
   20         assignment of service addresses to local taxing
   21         jurisdictions and providing requirements and
   22         conditions with respect thereto; prohibiting the
   23         Department of Revenue from denying a dealer of
   24         communications services a deduction of a specified
   25         amount as a collection allowance under certain
   26         circumstances; amending s. 202.231, F.S.; requiring
   27         the Department of Revenue to aggregate monthly and
   28         make available to the public on a jurisdiction-by
   29         jurisdiction basis certain sales and net tax
   30         information; amending s. 202.26, F.S.; conforming a
   31         cross-reference; amending s. 212.05, F.S.; revising
   32         the definition of the term “prepaid calling
   33         arrangement”; amending ss. 203.01, 610.118, and
   34         624.105, F.S.; conforming cross-references; providing
   35         for certain retroactive effect; providing an effective
   36         date.
   38  Be It Enacted by the Legislature of the State of Florida:
   40         Section 1. Subsection (1) of section 202.105, Florida
   41  Statutes, is amended to read:
   42         202.105 Legislative findings and intent.—
   43         (1) It is declared to be a specific legislative finding
   44  that the creation of this chapter fulfills important state
   45  interests by reforming the tax laws to provide a fair,
   46  efficient, and uniform method for taxing communications services
   47  sold in this state. This chapter is essential to the continued
   48  economic vitality of this increasingly important industry
   49  because it restructures state and local taxes and fees to
   50  account for the impact of federal legislation, industry
   51  deregulation, and the multitude of convergence of service
   52  offerings that is now taking place among providers offering
   53  functionally equivalent communications services in today’s
   54  marketplace. This chapter promotes the increased competition
   55  that accompanies deregulation by embracing a competitively
   56  neutral tax policy that will free consumers to choose a provider
   57  based on tax-neutral considerations. This chapter further spurs
   58  new competition by simplifying an extremely complicated state
   59  and local tax and fee system. Simplification will lower the cost
   60  of collecting taxes and fees, increase service availability, and
   61  place downward pressure on price. Newfound administrative
   62  efficiency is demonstrated by a reduction in the number of
   63  returns that a provider must file each month. By restructuring
   64  separate taxes and fees into a revenue-neutral communications
   65  services tax centrally administered by the department, this
   66  chapter will ensure that the growth of the industry is
   67  unimpaired by excessive governmental regulation. The tax imposed
   68  pursuant to this chapter is a replacement for taxes and fees
   69  previously imposed and is not a new tax. The taxes imposed and
   70  administered pursuant to this chapter are of general application
   71  and are imposed in a uniform, consistent, and nondiscriminatory
   72  manner.
   73         Section 2. Section 202.11, Florida Statutes, is amended to
   74  read:
   75         202.11 Definitions.—As used in this chapter:
   76         (1) “Cable service” means the transmission of video, audio,
   77  or other programming service to purchasers, and the purchaser
   78  interaction, if any, required for the selection or use of any
   79  such programming service, regardless of whether the programming
   80  is transmitted over facilities owned or operated by the cable
   81  service provider or over facilities owned or operated by one or
   82  more other dealers of communications services. The term includes
   83  point-to-point and point-to-multipoint distribution services by
   84  which programming is transmitted or broadcast by microwave or
   85  other equipment directly to the purchaser’s premises, but does
   86  not include direct-to-home satellite service. The term includes
   87  basic, extended, premium, pay-per-view, digital, and music
   88  services.
   89         (1)(2) “Communications services” means the transmission,
   90  conveyance, or routing of voice, data, audio, video, or any
   91  other information or signals, including video cable services, to
   92  a point, or between or among points, by or through any
   93  electronic, radio, satellite, cable, optical, microwave, or
   94  other medium or method now in existence or hereafter devised,
   95  regardless of the protocol used for such transmission or
   96  conveyance. The term includes such transmission, conveyance, or
   97  routing in which computer processing applications are used to
   98  act on the form, code, or protocol of the content for purposes
   99  of transmission, conveyance, or routing without regard to
  100  whether such service is referred to as voice-over-Internet
  101  protocol services or is classified by the Federal Communications
  102  Commission as enhanced or value-added. The term does not
  103  include:
  104         (a) Information services.
  105         (b) Installation or maintenance of wiring or equipment on a
  106  customer’s premises.
  107         (c) The sale or rental of tangible personal property.
  108         (d) The sale of advertising, including, but not limited to,
  109  directory advertising.
  110         (e) Bad check charges.
  111         (f) Late payment charges.
  112         (g) Billing and collection services.
  113         (h) Internet access service, electronic mail service,
  114  electronic bulletin board service, or similar online computer
  115  services.
  116         (i) Digital goods.
  117         (j) Digital services.
  118         (2)(3) “Dealer” means a person registered with the
  119  department as a provider of communications services in this
  120  state.
  121         (3)(4) “Department” means the Department of Revenue.
  122         (4) “Digital good” means any downloaded good or product
  123  that is delivered or transferred by means other than tangible
  124  storage media, including downloaded games, software, music, or
  125  other digital content. The term does not include video service.
  126         (5) “Digital service” means any service, other than video
  127  service, which is provided electronically, including remotely
  128  provided access to or use of software or another digital good,
  129  and also includes the following services, if they are provided
  130  remotely: monitoring, security, distance learning, energy
  131  management, medical diagnostic, mechanical diagnostic, and
  132  vehicle tracking services. If a digital service is bundled for
  133  sale with the transmission, conveyance, or routing of any
  134  information or signals, the bundled service is a digital service
  135  unless the tax imposed under this chapter and chapter 203 has
  136  not been paid with respect to such transmission, conveyance, or
  137  routing.
  138         (6)(5) “Direct-to-home satellite service” has the meaning
  139  ascribed in the Communications Act of 1934, 47 U.S.C. s. 303(v).
  140         (7)(6) “Information service” means the offering of a
  141  capability for generating, acquiring, storing, transforming,
  142  processing, retrieving, using, or making available information
  143  via communications services, including, but not limited to,
  144  electronic publishing, web-hosting service, and end-user 900
  145  number service. The term does not include any video, audio, or
  146  other programming service that uses point-to-multipoint
  147  distribution by which programming is delivered, transmitted, or
  148  broadcast by any means, including any interaction that may be
  149  necessary for selecting and using the service, regardless of
  150  whether the programming is delivered, transmitted, or broadcast
  151  over facilities owned or operated by the seller or another, or
  152  whether denominated as cable service or as basic, extended,
  153  premium, pay-per-view, digital, music, or two-way cable service.
  154         (8) “Internet access service” has the same meaning as
  155  ascribed to the term “Internet access” by s. 1105(5) of the
  156  Internet Tax Freedom Act, 47 U.S.C. s. 151 note, as amended by
  157  Pub. L. No. 110-108.
  158         (9)(7) “Mobile communications service” means commercial
  159  mobile radio service, as defined in 47 C.F.R. s. 20.3 as in
  160  effect on June 1, 1999. The term does not include air-ground
  161  radiotelephone service as defined in 47 C.F.R. s. 22.99 as in
  162  effect on June 1, 1999.
  163         (10)(8) “Person” has the meaning ascribed in s. 212.02.
  164         (11)(9) “Prepaid calling arrangement” means the separately
  165  stated retail sale by advance payment of communications services
  166  that must be paid for in advance; that may be used to place or
  167  receive consist exclusively of telephone calls originated; that
  168  are enabled by using an access number, authorization code, or
  169  other means that may be manually, electronically, or otherwise
  170  entered;, and that are sold in predetermined units or dollars of
  171  which the number declines on a predetermined basis with use in a
  172  known amount.
  173         (12)(10) “Purchaser” means the person paying for or
  174  obligated to pay for communications services.
  175         (13)(11) “Retail sale” means the sale of communications
  176  services for any purpose other than for resale or for use as a
  177  component part of or for integration into communications
  178  services to be resold in the ordinary course of business.
  179  However, any sale for resale must comply with s. 202.16(2) and
  180  the rules adopted thereunder.
  181         (14)(12) “Sale” means the provision of communications
  182  services for a consideration.
  183         (15)(13) “Sales price” means the total amount charged in
  184  money or other consideration by a dealer for the sale of the
  185  right or privilege of using communications services in this
  186  state, including any property or other service, not described in
  187  paragraph (a), which is services that are part of the sale and
  188  for which the charge is not separately itemized on a customer’s
  189  bill or separately allocated under subparagraph (b)8. The sales
  190  price of communications services may shall not be reduced by any
  191  separately identified components of the charge which that
  192  constitute expenses of the dealer, including, but not limited
  193  to, sales taxes on goods or services purchased by the dealer,
  194  property taxes, taxes measured by net income, and universal
  195  service fund fees.
  196         (a) The sales price of communications services includes
  197  shall include, whether or not separately stated, charges for any
  198  of the following:
  199         1. The connection, movement, change, or termination of
  200  communications services.
  201         2. The detailed billing of communications services.
  202         3. The sale of directory listings in connection with a
  203  communications service.
  204         4. Central office and custom calling features.
  205         5. Voice mail and other messaging service.
  206         6. Directory assistance.
  207         7. The service of sending or receiving a document commonly
  208  referred to as a facsimile or “fax,” except when performed
  209  during the course of providing professional or advertising
  210  services.
  211         (b) The sales price of communications services does not
  212  include charges for any of the following:
  213         1. An Any excise tax, sales tax, or similar tax levied by
  214  the United States or any state or local government on the
  215  purchase, sale, use, or consumption of any communications
  216  service, including, but not limited to, a any tax imposed under
  217  this chapter or chapter 203 which is permitted or required to be
  218  added to the sales price of such service, if the tax is stated
  219  separately.
  220         2. A Any fee or assessment levied by the United States or
  221  any state or local government, including, but not limited to,
  222  regulatory fees and emergency telephone surcharges, which must
  223  is required to be added to the price of the such service if the
  224  fee or assessment is separately stated.
  225         3. Communications services paid for by inserting coins into
  226  coin-operated communications devices available to the public.
  227         4. The sale or recharge of a prepaid calling arrangement.
  228         5. The provision of air-to-ground communications services,
  229  defined as a radio service provided to a purchaser purchasers
  230  while on board an aircraft.
  231         6. A dealer’s internal use of communications services in
  232  connection with its business of providing communications
  233  services.
  234         7. Charges for property or other services that are not part
  235  of the sale of communications services, if such charges are
  236  stated separately from the charges for communications services.
  237         8. To the extent required by federal law, Charges for goods
  238  and services that are exempt from tax under this chapter,
  239  including Internet access services but excluding any item
  240  described in paragraph (a), that which are not separately
  241  itemized on a customer’s bill, but that which can be reasonably
  242  identified from the selling dealer’s books and records kept in
  243  the regular course of business. The dealer may support the
  244  allocation of charges with books and records kept in the regular
  245  course of business covering the dealer’s entire service area,
  246  including territories outside this state.
  247         (16)(14) “Service address” means:
  248         (a) Except as otherwise provided in this section:
  249         1. The location of the communications equipment from which
  250  communications services originate or at which communications
  251  services are received by the customer;
  252         2. In the case of a communications service paid through a
  253  credit or payment mechanism that does not relate to a service
  254  address, such as a bank, travel, debit, or credit card, and in
  255  the case of third-number and calling-card calls, the term
  256  “service address” means the address of the central office, as
  257  determined by the area code and the first three digits of the
  258  seven-digit originating telephone number; or
  259         3. If the location of the equipment described in
  260  subparagraph 1. is not known and subparagraph 2. is
  261  inapplicable, the term “service address” means the location of
  262  the customer’s primary use of the communications service. For
  263  purposes of this subparagraph, the location of the customer’s
  264  primary use of a communications service is the residential
  265  street address or the business street address of the customer.
  266         (b) In the case of video cable services and direct-to-home
  267  satellite services, the location where the customer receives the
  268  services in this state.
  269         (c) In the case of mobile communications services, the
  270  customer’s place of primary use.
  271         (17)(15) “Unbundled network element” means a network
  272  element, as defined in 47 U.S.C. s. 153(29), to which access is
  273  provided on an unbundled basis pursuant to 47 U.S.C. s.
  274  251(c)(3).
  275         (18)(16) “Private communications service” means a
  276  communications service that entitles the subscriber or user to
  277  exclusive or priority use of a communications channel or group
  278  of channels between or among channel termination points,
  279  regardless of the manner in which such channel or channels are
  280  connected, and includes switching capacity, extension lines,
  281  stations, and any other associated services that which are
  282  provided in connection with the use of such channel or channels.
  283         (19)(17)(a) “Customer” means:
  284         1. The person or entity that contracts with the home
  285  service provider for mobile communications services; or
  286         2. If the end user of mobile communications services is not
  287  the contracting party, the end user of the mobile communications
  288  service. This subparagraph only applies only for the purpose of
  289  determining the place of primary use.
  290         (b) The term “Customer” does not include:
  291         1. A reseller of mobile communications services; or
  292         2. A serving carrier under an agreement to serve the
  293  customer outside the home service provider’s licensed service
  294  area.
  295         (20)(18) “Enhanced zip code” means a United States postal
  296  zip code of 9 or more digits.
  297         (21)(19) “Home service provider” means the facilities-based
  298  carrier or reseller with which the customer contracts for the
  299  provision of mobile communications services.
  300         (22)(20) “Licensed service area” means the geographic area
  301  in which the home service provider is authorized by law or
  302  contract to provide mobile communications service to the
  303  customer.
  304         (23)(21) “Place of primary use” means the street address
  305  representative of where the customer’s use of the mobile
  306  communications service primarily occurs, which must be:
  307         (a) The residential street address or the primary business
  308  street address of the customer; and
  309         (b) Within the licensed service area of the home service
  310  provider.
  311         (24)(22)(a) “Reseller” means a provider who purchases
  312  communications services from another communications service
  313  provider and then resells, uses as a component part of, or
  314  integrates the purchased services into a mobile communications
  315  service.
  316         (b) The term “Reseller” does not include a serving carrier
  317  with which a home service provider arranges for the services to
  318  its customers outside the home service provider’s licensed
  319  service area.
  320         (25)(23) “Serving carrier” means a facilities-based carrier
  321  providing mobile communications service to a customer outside a
  322  home service provider’s or reseller’s licensed service area.
  323         (26)(24) “Video service” means the transmission of video,
  324  audio, or other programming service to a purchaser, and the
  325  purchaser interaction, if any, required for the selection or use
  326  of a programming service, regardless of whether the programming
  327  is transmitted over facilities owned or operated by the video
  328  service provider or over facilities owned or operated by another
  329  dealer of communications services. The term includes point-to
  330  point and point-to-multipoint distribution services through
  331  which programming is transmitted or broadcast by microwave or
  332  other equipment directly to the purchaser’s premises, but does
  333  not include direct-to-home satellite service. The term includes
  334  basic, extended, premium, pay-per-view, digital video, two-way
  335  cable, and music services has the same meaning as that provided
  336  in s. 610.103.
  337         Section 3. Subsection (1) of section 202.125, Florida
  338  Statutes, is amended to read:
  339         202.125 Sales of communications services; specified
  340  exemptions.—
  341         (1) The separately stated sales price of communications
  342  services sold to residential households is exempt from the tax
  343  imposed by s. 202.12 and s. 203.01(1)(b)3. This exemption does
  344  not apply to any residence that constitutes all or part of a
  345  transient public lodging establishment as defined in chapter
  346  509, any mobile communications service, any video cable service,
  347  or any direct-to-home satellite service.
  348         Section 4. Paragraph (a) of subsection (2) of section
  349  202.16, Florida Statutes, is amended to read:
  350         202.16 Payment.—The taxes imposed or administered under
  351  this chapter and chapter 203 shall be collected from all dealers
  352  of taxable communications services on the sale at retail in this
  353  state of communications services taxable under this chapter and
  354  chapter 203. The full amount of the taxes on a credit sale,
  355  installment sale, or sale made on any kind of deferred payment
  356  plan is due at the moment of the transaction in the same manner
  357  as a cash sale.
  358         (2)(a) A sale of communications services that are used as a
  359  component part of or integrated into a communications service or
  360  prepaid calling arrangement for resale, including, but not
  361  limited to, carrier-access charges, interconnection charges paid
  362  by providers of mobile communication services or other
  363  communication services, charges paid by a video cable service
  364  provider providers for the purchase of video programming or the
  365  transmission of video or other programming by another dealer of
  366  communications services, charges for the sale of unbundled
  367  network elements, and any other intercompany charges for the use
  368  of facilities for providing communications services for resale,
  369  must be made in compliance with the rules of the department. A
  370  Any person who makes a sale for resale which is not in
  371  compliance with these rules is liable for any tax, penalty, and
  372  interest due for failing to comply, to be calculated pursuant to
  373  s. 202.28(2)(a).
  374         Section 5. Paragraph (c) of subsection (3) of section
  375  202.18, Florida Statutes, is amended to read:
  376         202.18 Allocation and disposition of tax proceeds.—The
  377  proceeds of the communications services taxes remitted under
  378  this chapter shall be treated as follows:
  379         (3)
  380         (c)1. Except as otherwise provided in this paragraph,
  381  proceeds of the taxes levied pursuant to s. 202.19, less amounts
  382  deducted for costs of administration in accordance with
  383  paragraph (b), shall be distributed monthly to the appropriate
  384  jurisdictions. The proceeds of taxes imposed pursuant to s.
  385  202.19(5) shall be distributed in the same manner as
  386  discretionary surtaxes are distributed, in accordance with ss.
  387  212.054 and 212.055.
  388         2. The department shall make any adjustments to the
  389  distributions pursuant to this section which are necessary to
  390  reflect the proper amounts due to individual jurisdictions or
  391  trust funds. In the event that the department adjusts amounts
  392  due to reflect a correction in the situsing of a customer, such
  393  adjustment shall be limited to the amount of tax actually
  394  collected from such customer by the dealer of communication
  395  services.
  396         3.a. Notwithstanding the time period specified in s.
  397  202.22(5), Adjustments in distributions which are necessary to
  398  correct misallocations between jurisdictions shall be governed
  399  by this subparagraph. If the department determines that
  400  misallocations between jurisdictions occurred, it shall provide
  401  written notice of such determination to all affected
  402  jurisdictions. The notice shall include the amount of the
  403  misallocations, the basis upon which the determination was made,
  404  data supporting the determination, and the identity of each
  405  affected jurisdiction. The notice shall also inform all affected
  406  jurisdictions of their authority to enter into a written
  407  agreement establishing a method of adjustment as described in
  408  sub-subparagraph c.
  409         b. An adjustment affecting a distribution to a jurisdiction
  410  which is less than 90 percent of the average monthly
  411  distribution to that jurisdiction for the 6 months immediately
  412  preceding the department’s determination, as reported by all
  413  communications services dealers, shall be made in the month
  414  immediately following the department’s determination that
  415  misallocations occurred.
  416         c. If an adjustment affecting a distribution to a
  417  jurisdiction equals or exceeds 90 percent of the average monthly
  418  distribution to that jurisdiction for the 6 months immediately
  419  preceding the department’s determination, as reported by all
  420  communications services dealers, the affected jurisdictions may
  421  enter into a written agreement establishing a method of
  422  adjustment. If the agreement establishing a method of adjustment
  423  provides for payments of local communications services tax
  424  monthly distributions, the amount of any such payment agreed to
  425  may not exceed the local communications services tax monthly
  426  distributions available to the jurisdiction that was allocated
  427  amounts in excess of those to which it was entitled. If affected
  428  jurisdictions execute a written agreement specifying a method of
  429  adjustment, a copy of the written agreement shall be provided to
  430  the department no later than the first day of the month
  431  following 90 days after the date the department transmits notice
  432  of the misallocation. If the department does not receive a copy
  433  of the written agreement within the specified time period, an
  434  adjustment affecting a distribution to a jurisdiction made
  435  pursuant to this sub-subparagraph shall be prorated over a time
  436  period that equals the time period over which the misallocations
  437  occurred.
  438         Section 6. Subsections (1) and (3) of section 202.195,
  439  Florida Statutes, are amended to read:
  440         202.195 Proprietary confidential business information;
  441  public records exemption.—
  442         (1) Proprietary confidential business information obtained
  443  from a telecommunications company or from a franchised or
  444  certificated video service provider cable company for the
  445  purposes of imposing fees for occupying the public rights-of
  446  way, assessing the local communications services tax pursuant to
  447  s. 202.19, or occupying or regulating the public rights-of-way,
  448  held by a local governmental entity, is confidential and exempt
  449  from s. 119.07(1) and s. 24(a), Art. I of the State
  450  Constitution. Such proprietary confidential business information
  451  held by a local governmental entity may be used only for the
  452  purposes of imposing such fees, assessing such tax, or
  453  regulating such rights-of-way, and may not be used for any other
  454  purposes, including, but not limited to, commercial or
  455  competitive purposes.
  456         (3) Nothing in This exemption does not expand expands the
  457  information or documentation that a local governmental entity
  458  may properly request under applicable law pursuant to the
  459  imposition of fees for occupying the rights-of-way, the local
  460  communication services tax, or the regulation of its public
  461  rights-of-way.
  462         Section 7. Paragraph (b) of subsection (2) of section
  463  202.20, Florida Statutes, is amended to read:
  464         202.20 Local communications services tax conversion rates.—
  465         (2)
  466         (b) Except as otherwise provided in this subsection, the
  467  term “replaced revenue sources,” as used in this section, means
  468  the following taxes, charges, fees, or other impositions to the
  469  extent that the respective local taxing jurisdictions were
  470  authorized to impose them prior to July 1, 2000.
  471         1. With respect to municipalities and charter counties and
  472  the taxes authorized by s. 202.19(1):
  473         a. The public service tax on telecommunications authorized
  474  by former s. 166.231(9).
  475         b. Franchise fees on video cable service providers as
  476  authorized by 47 U.S.C. s. 542.
  477         c. The public service tax on prepaid calling arrangements.
  478         d. Franchise fees on dealers of communications services
  479  which use the public roads or rights-of-way, up to the limit set
  480  forth in s. 337.401. For purposes of calculating rates under
  481  this section, it is the legislative intent that charter counties
  482  be treated as having had the same authority as municipalities to
  483  impose franchise fees on recurring local telecommunication
  484  service revenues before prior to July 1, 2000. However, the
  485  Legislature recognizes that the authority of charter counties to
  486  impose such fees is in dispute, and the treatment provided in
  487  this section is not an expression of legislative intent that
  488  charter counties actually do or do not possess such authority.
  489         e. Actual permit fees relating to placing or maintaining
  490  facilities in or on public roads or rights-of-way, collected
  491  from providers of long-distance, cable, and mobile
  492  communications services for the fiscal year ending September 30,
  493  1999; however, if a municipality or charter county elects the
  494  option to charge permit fees pursuant to s. 337.401(3)(c)1.a.,
  495  such fees may shall not be included as a replaced revenue
  496  source.
  497         2. With respect to all other counties and the taxes
  498  authorized in s. 202.19(1), franchise fees on video cable
  499  service providers as authorized by 47 U.S.C. s. 542.
  500         Section 8. Subsections (5) and (6) of section 202.22,
  501  Florida Statutes, are amended to read:
  502         202.22 Determination of local tax situs.—
  503         (5) If a dealer of communications services does not use one
  504  or more of the methods specified in subsection (1) for
  505  determining the local taxing jurisdiction in which one or more
  506  service addresses are a service address is located and:,
  507         (a) The dealer’s failure to use one or more of such methods
  508  results in a net aggregate underpayment of all taxes levied
  509  pursuant to s. 202.19 with respect to one or more tax periods
  510  that are being examined by the department; and
  511         (b) The department has determined the misallocations
  512  between jurisdictions for all taxes levied pursuant to s. 202.19
  513  and collected by the dealer with respect to any tax period being
  514  examined by the department,
  516  the dealer of communications services may be held liable to the
  517  department for the net aggregate underpayment of any tax, and
  518  for including interest and penalties attributable to the net
  519  aggregate underpayment of tax, which is due as a result of
  520  assigning one or more the service addresses address to an
  521  incorrect local taxing jurisdiction. However, the dealer of
  522  communications services is not liable for any tax, interest, or
  523  penalty under this subsection unless the department has
  524  determined the net aggregate underpayment of tax for any tax
  525  period that is being examined, taking into account all
  526  underpayments and overpayments for such period or periods to the
  527  extent that such amount was collected and remitted by the dealer
  528  of communications services with respect to a tax imposed by
  529  another local taxing jurisdiction. Upon determining that an
  530  amount was collected and remitted by a dealer of communications
  531  services with respect to a tax imposed by another local taxing
  532  jurisdiction, the department shall adjust the respective amounts
  533  of the proceeds paid to each such taxing jurisdiction under s.
  534  202.18 in the month immediately following such determination.
  535         (6)(a) Pursuant to rules adopted by the department, each
  536  dealer of communications services must notify the department of
  537  the methods it intends to employ for determining the local
  538  taxing jurisdiction in which service addresses are located.
  539         (b) Notwithstanding s. 202.28, if a dealer of
  540  communications services:
  541         1. Employs a method of assigning service addresses other
  542  than as set forth in paragraph (1)(a), paragraph (1)(b), or
  543  paragraph (1)(c), the deduction allowed to the dealer of
  544  communications services as compensation under s. 202.28 shall be
  545  0.25 percent of that portion of the tax due and accounted for
  546  and remitted to the department which is attributable to such
  547  method of assigning service addresses other than as set forth in
  548  paragraph (1)(a), paragraph (1)(b), or paragraph (1)(c).
  549         2. Employs a method of assigning service addresses as set
  550  forth in paragraph (1)(a), paragraph (1)(b), or paragraph
  551  (1)(c), the department may not deny the deduction allowed to the
  552  dealer of communications services as compensation allowed under
  553  s. 202.28 because the dealer assigned one or more service
  554  addresses to an incorrect local taxing jurisdiction.
  555         Section 9. Subsection (3) is added to section 202.231,
  556  Florida Statutes, to read:
  557         202.231 Provision of information to local taxing
  558  jurisdictions.—
  559         (3) The gross taxable sales and net tax information
  560  contained in the monthly reports required by this section shall
  561  be aggregated on a jurisdiction-by-jurisdiction basis, and the
  562  aggregate jurisdiction-by-jurisdiction information shall be made
  563  available by the department to the public through the
  564  department’s website for each fiscal year this chapter has been
  565  in effect.
  566         Section 10. Paragraphs (a) and (c) of subsection (2) of
  567  section 202.24, Florida Statutes, are amended to read:
  568         202.24 Limitations on local taxes and fees imposed on
  569  dealers of communications services.—
  570         (2)(a) Except as provided in paragraph (c), each public
  571  body is prohibited from:
  572         1. Levying on or collecting from dealers or purchasers of
  573  communications services any tax, charge, fee, or other
  574  imposition on or with respect to the provision or purchase of
  575  communications services.
  576         2. Requiring any dealer of communications services to enter
  577  into or extend the term of a franchise or other agreement that
  578  requires the payment of a tax, charge, fee, or other imposition.
  579         3. Adopting or enforcing any provision of any ordinance or
  580  agreement to the extent that such provision obligates a dealer
  581  of communications services to charge, collect, or pay to the
  582  public body a tax, charge, fee, or other imposition.
  584  Municipalities and counties may not negotiate those terms and
  585  conditions related to franchise fees or the definition of gross
  586  revenues or other definitions or methodologies related to the
  587  payment or assessment of franchise fees on providers of cable or
  588  video services.
  589         (c) This subsection does not apply to:
  590         1. Local communications services taxes levied under this
  591  chapter.
  592         2. Ad valorem taxes levied pursuant to chapter 200.
  593         3. Business taxes levied under chapter 205.
  594         4. “911” service charges levied under chapter 365.
  595         5. Amounts charged for the rental or other use of property
  596  owned by a public body which is not in the public rights-of-way
  597  to a dealer of communications services for any purpose,
  598  including, but not limited to, the placement or attachment of
  599  equipment used in the provision of communications services.
  600         6. Permit fees of general applicability which are not
  601  related to placing or maintaining facilities in or on public
  602  roads or rights-of-way.
  603         7. Permit fees related to placing or maintaining facilities
  604  in or on public roads or rights-of-way pursuant to s. 337.401.
  605         8. Any in-kind requirements, institutional networks, or
  606  contributions for, or in support of, the use or construction of
  607  public, educational, or governmental access facilities allowed
  608  under federal law and imposed on providers of cable or video
  609  service pursuant to any existing ordinance or an existing
  610  franchise agreement granted by each municipality or county,
  611  under which ordinance or franchise agreement service is provided
  612  before prior to July 1, 2007, or as permitted under chapter 610.
  613  Nothing in This subparagraph does not shall prohibit the ability
  614  of providers of cable or video service from recovering the to
  615  recover such expenses as allowed under federal law.
  616         9. Special assessments and impact fees.
  617         10. Pole attachment fees that are charged by a local
  618  government for attachments to utility poles owned by the local
  619  government.
  620         11. Utility service fees or other similar user fees for
  621  utility services.
  622         12. Any other generally applicable tax, fee, charge, or
  623  imposition authorized by general law on July 1, 2000, which is
  624  not specifically prohibited by this subsection or included as a
  625  replaced revenue source in s. 202.20.
  626         Section 11. Paragraph (j) of subsection (3) of section
  627  202.26, Florida Statutes, is amended to read:
  628         202.26 Department powers.—
  629         (3) To administer the tax imposed by this chapter, the
  630  department may adopt rules relating to:
  631         (j) The types of books and records kept in the regular
  632  course of business which must be available during an audit of a
  633  dealer’s books and records when the dealer has made an
  634  allocation or attribution pursuant to the definition of sales
  635  prices in s. 202.11(15)(b)8. 202.11(13)(b)8. and examples of
  636  methods for determining the reasonableness thereof. Books and
  637  records kept in the regular course of business include, but are
  638  not limited to, general ledgers, price lists, cost records,
  639  customer billings, billing system reports, tariffs, and other
  640  regulatory filings and rules of regulatory authorities. The Such
  641  records may be required to be made available to the department
  642  in an electronic format when so kept by the dealer. The dealer
  643  may support the allocation of charges with books and records
  644  kept in the regular course of business covering the dealer’s
  645  entire service area, including territories outside this state.
  646  During an audit, the department may reasonably require
  647  production of any additional books and records found necessary
  648  to assist in its determination.
  649         Section 12. Paragraph (a) of subsection (1) of section
  650  203.01, Florida Statutes, is amended to read:
  651         203.01 Tax on gross receipts for utility and communications
  652  services.—
  653         (1)(a)1. A tax is imposed on gross receipts from utility
  654  services that are delivered to a retail consumer in this state.
  655  The Such tax shall be levied as provided in paragraphs (b)-(j).
  656         2. A tax is levied on communications services as defined in
  657  s. 202.11(1) 202.11(2). The Such tax shall be applied to the
  658  same services and transactions as are subject to taxation under
  659  chapter 202, and to communications services that are subject to
  660  the exemption provided in s. 202.125(1). The Such tax shall be
  661  applied to the sales price of communications services when sold
  662  at retail, as the such terms are defined in s. 202.11, shall be
  663  due and payable at the same time as the taxes imposed pursuant
  664  to chapter 202, and shall be administered and collected pursuant
  665  to the provisions of chapter 202.
  666         Section 13. Paragraph (e) of subsection (1) of section
  667  212.05, Florida Statutes, is amended to read:
  668         212.05 Sales, storage, use tax.—It is hereby declared to be
  669  the legislative intent that every person is exercising a taxable
  670  privilege who engages in the business of selling tangible
  671  personal property at retail in this state, including the
  672  business of making mail order sales, or who rents or furnishes
  673  any of the things or services taxable under this chapter, or who
  674  stores for use or consumption in this state any item or article
  675  of tangible personal property as defined herein and who leases
  676  or rents such property within the state.
  677         (1) For the exercise of such privilege, a tax is levied on
  678  each taxable transaction or incident, which tax is due and
  679  payable as follows:
  680         (e)1. At the rate of 6 percent on charges for:
  681         a. Prepaid calling arrangements. The tax on charges for
  682  prepaid calling arrangements shall be collected at the time of
  683  sale and remitted by the selling dealer.
  684         (I) “Prepaid calling arrangement” means the separately
  685  stated retail sale by advance payment of communications services
  686  that must be paid for in advance; that may be used to place or
  687  receive consist exclusively of telephone calls; that are enabled
  688  originated by using an access number, authorization code, or
  689  other means that may be manually, electronically, or otherwise
  690  entered; and that are sold in predetermined units or dollars
  691  whose number declines on a predetermined basis with use in a
  692  known amount.
  693         (II) If the sale or recharge of the prepaid calling
  694  arrangement does not take place at the dealer’s place of
  695  business, it shall be deemed to take place at the customer’s
  696  shipping address or, if no item is shipped, at the customer’s
  697  address or the location associated with the customer’s mobile
  698  telephone number.
  699         (III) The sale or recharge of a prepaid calling arrangement
  700  shall be treated as a sale of tangible personal property for
  701  purposes of this chapter, whether or not a tangible item
  702  evidencing such arrangement is furnished to the purchaser, and
  703  such sale within this state subjects the selling dealer to the
  704  jurisdiction of this state for purposes of this subsection.
  705         b. The installation of telecommunication and telegraphic
  706  equipment.
  707         c. Electrical power or energy, except that the tax rate for
  708  charges for electrical power or energy is 7 percent.
  709         2. The provisions of s. 212.17(3), regarding credit for tax
  710  paid on charges subsequently found to be worthless, shall be
  711  equally applicable to any tax paid under the provisions of this
  712  section on charges for prepaid calling arrangements,
  713  telecommunication or telegraph services, or electric power
  714  subsequently found to be uncollectible. The word “charges” in
  715  this paragraph does not include any excise or similar tax levied
  716  by the Federal Government, any political subdivision of the
  717  state, or any municipality upon the purchase, sale, or recharge
  718  of prepaid calling arrangements or upon the purchase or sale of
  719  telecommunication, television system program, or telegraph
  720  service or electric power, which tax is collected by the seller
  721  from the purchaser.
  722         Section 14. Paragraph (a) of subsection (1) of section
  723  610.118, Florida Statutes, is amended to read:
  724         610.118 Impairment; court-ordered operations.—
  725         (1) If an incumbent cable or video service provider is
  726  required to operate under its existing franchise and is legally
  727  prevented by a lawfully issued order of a court of competent
  728  jurisdiction from exercising its right to terminate its existing
  729  franchise pursuant to the terms of s. 610.105, any
  730  certificateholder providing cable service or video service in
  731  whole or in part within the service area that is the subject of
  732  the incumbent cable or video service provider’s franchise shall,
  733  for as long as the court order remains in effect, comply with
  734  the following franchise terms and conditions as applicable to
  735  the incumbent cable or video service provider in the service
  736  area:
  737         (a) The certificateholder shall pay to the municipality or
  738  county:
  739         1. Any prospective lump-sum or recurring per-subscriber
  740  funding obligations to support public, educational, and
  741  governmental access channels or other prospective franchise
  742  required monetary grants related to public, educational, or
  743  governmental access facilities equipment and capital costs.
  744  Prospective lump-sum payments shall be made on an equivalent
  745  per-subscriber basis calculated as follows: the amount of the
  746  prospective funding obligations divided by the number of
  747  subscribers being served by the incumbent cable service provider
  748  at the time of payment, divided by the number of months
  749  remaining in the incumbent cable or video service provider’s
  750  franchise equals the monthly per subscriber amount to be paid by
  751  the certificateholder until the expiration or termination of the
  752  incumbent cable or video service provider’s franchise; and
  753         2. If the incumbent cable or video service provider is
  754  required to make payments for the funding of an institutional
  755  network, the certificateholder shall pay an amount equal to the
  756  incumbent’s funding obligations but not to exceed 1 percent of
  757  the sales price, as defined in s. 202.11(15) 202.11(13), for the
  758  taxable monthly retail sales of cable or video programming
  759  services the certificateholder received from subscribers in the
  760  affected municipality or county. All definitions and exemptions
  761  under chapter 202 apply in the determination of taxable monthly
  762  retail sales of cable or video programming services.
  763         Section 15. Section 624.105, Florida Statutes, is amended
  764  to read:
  765         624.105 Waiver of customer liability.—Any regulated company
  766  as defined in s. 350.111, any electric utility as defined in s.
  767  366.02(2), any utility as defined in s. 367.021(12) or s.
  768  367.022(2) and (7), and any provider of communications services
  769  as defined in s. 202.11(1) 202.11(2) may charge for and include
  770  an optional waiver of liability provision in their customer
  771  contracts under which the entity agrees to waive all or a
  772  portion of the customer’s liability for service from the entity
  773  for a defined period in the event of the customer’s call to
  774  active military service, death, disability, involuntary
  775  unemployment, qualification for family leave, or similar
  776  qualifying event or condition. Such provisions may not be
  777  effective in the customer’s contract with the entity unless
  778  affirmatively elected by the customer. No such provision shall
  779  constitute insurance so long as the provision is a contract
  780  between the entity and its customer.
  781         Section 16. The following changes made in this act are
  782  intended to be remedial in nature and apply retroactively, but
  783  do not provide a basis for an assessment of any tax not paid or
  784  create a right to a refund or credit of any tax paid before the
  785  general effective date of this act:
  786         (1) The changes made in section 2 of this act to
  787  subsections renumbered as subsections (9), (11), and (15) of s.
  788  202.11, Florida Statutes;
  789         (2) The changes made in section 8 of this act to s. 202.22,
  790  Florida Statutes; and
  791         (3) The changes made in section 13 of this act to paragraph
  792  (e) of subsection (1) of s. 212.05, Florida Statutes.
  793         Section 17. This act shall take effect July 1, 2012.