Florida Senate - 2014                                    SB 1076
       By Senator Flores
       37-00994A-14                                          20141076__
    1                        A bill to be entitled                      
    2         An act relating to electrical power or energy;
    3         amending s. 203.01, F.S.; imposing an additional tax
    4         on gross receipts for electrical power or energy for
    5         specified years; revising exemptions from the tax on
    6         gross receipts for utility and communications
    7         services; providing exemptions from the additional tax
    8         on gross receipts from electrical power or energy;
    9         requiring the additional tax to be excluded from the
   10         taxable base on which gross receipts are calculated
   11         under certain circumstances; amending s. 212.05, F.S.;
   12         revising the sales tax rate for charges for electrical
   13         power or energy for specified years; providing that
   14         discretionary sales surtaxes apply regardless of the
   15         sales tax rate for charges for electrical power or
   16         energy; amending s. 212.054, F.S.; requiring
   17         discretionary sales surtaxes to be levied on all
   18         charges for electrical power or energy unless
   19         specifically exempted; amending s. 212.12, F.S.;
   20         conforming a provision to a change made by the act;
   21         providing for a sales tax holiday for certain
   22         products; providing restrictions; providing
   23         definitions; authorizing the Department of Revenue to
   24         adopt emergency rules; providing an effective date.
   26  Be It Enacted by the Legislature of the State of Florida:
   28         Section 1. Present subsections (5) through (9) of section
   29  203.01, Florida Statutes, are renumbered as subsections (6)
   30  through (10), respectively, paragraph (b) of subsection (1),
   31  subsection (3), and present subsections (4) and (8) are amended,
   32  and a new subsection (4) is added to that section, to read:
   33         203.01 Tax on gross receipts for utility and communications
   34  services.—
   35         (1)
   36         (b)1. The rate applied to utility services shall be 2.5
   37  percent.
   38         2. The rate applied to communications services shall be
   39  2.37 percent.
   40         3. There shall be An additional rate of 0.15 percent shall
   41  be applied to communication services subject to the tax levied
   42  pursuant to s. 202.12(1)(a), (c), and (d). The exemption
   43  provided in s. 202.125(1) applies to the tax levied pursuant to
   44  this subparagraph.
   45         4. An additional rate shall be applied to the gross
   46  receipts for electrical power or energy delivered to a retail
   47  consumer in this state.
   48         a. Effective January 1, 2015, the additional rate shall be
   49  1.5 percent.
   50         b. Effective January 1, 2016, the additional rate shall be
   51  2.5 percent.
   52         c. Effective January 1, 2017, the additional rate shall be
   53  3.5 percent.
   54         d. Notwithstanding s. 203.0111, any increase in the gross
   55  receipts tax provided by this subparagraph applies to charges
   56  for electrical power or energy on any bill dated on or after the
   57  date the increase takes effect.
   58         (3) The tax imposed by subparagraph (1)(b)1. subsection (1)
   59  does not apply to:
   60         (a)1. The sale or transportation of natural gas or
   61  manufactured gas to a public or private utility, including a
   62  municipal corporation or rural electric cooperative association,
   63  either for resale or for use as fuel in the generation of
   64  electricity; or
   65         2. The sale or delivery of electricity to a public or
   66  private utility, including a municipal corporation or rural
   67  electric cooperative association, for resale, or as part of an
   68  electrical interchange agreement or contract between such
   69  utilities for the purpose of transferring more economically
   70  generated power,;
   72  if provided the person deriving gross receipts from such sale
   73  demonstrates that a sale, transportation, or delivery for resale
   74  in fact occurred and complies with the following requirements: A
   75  sale, transportation, or delivery for resale must be in strict
   76  compliance with the rules and regulations of the Department of
   77  Revenue; and any sale subject to the tax imposed by this section
   78  which is not in strict compliance with the rules and regulations
   79  of the Department of Revenue shall be subject to the tax at the
   80  appropriate rate imposed on utilities by paragraph (b) on the
   81  person making the sale. Any person making a sale for resale may,
   82  through an informal protest provided for in s. 213.21 and the
   83  rules of the Department of Revenue, provide the department with
   84  evidence of the exempt status of a sale. The department shall
   85  adopt rules that provide that valid proof and documentation of
   86  the resale by a person making the sale for resale will be
   87  accepted by the department when submitted during the protest
   88  period but will not be accepted when submitted in any proceeding
   89  under chapter 120 or any circuit court action instituted under
   90  chapter 72;
   91         (b) Wholesale sales of electric transmission service;
   92         (c) The use of natural gas in the production of oil or gas,
   93  or the use of natural or manufactured gas by a person
   94  transporting natural or manufactured gas, when used and consumed
   95  in providing such services; or
   96         (d) The sale or transportation to, or use of, natural gas
   97  or manufactured gas to, or the use of natural gas or
   98  manufactured gas by, a person eligible for an exemption under s.
   99  212.08(7)(ff)2. for use as an energy source or a raw material.
  100  Possession by a seller of natural or manufactured gas or by any
  101  person providing transportation or delivery of natural or
  102  manufactured gas of a written certification by the purchaser,
  103  certifying the purchaser’s entitlement to the exclusion
  104  permitted by this paragraph, relieves the seller or person
  105  providing transportation or delivery from the responsibility of
  106  remitting tax on the nontaxable amounts, and the department
  107  shall look solely to the purchaser for recovery of such tax if
  108  the department determines that the purchaser was not entitled to
  109  the exclusion. The certification must include an acknowledgment
  110  by the purchaser that it will be liable for tax pursuant to
  111  paragraph (1)(f) if the requirements for exclusion are not met.
  112         (4) The additional tax imposed by subparagraph (1)(b)4.
  113  does not apply to:
  114         (a) The sale of electrical power or energy to a person
  115  eligible for an exemption under s. 212.08(7)(ff) for use in
  116  operating machinery and equipment at a fixed location in this
  117  state;
  118         (b) The sale or transportation of electrical power or
  119  energy to, or the use of electrical power or energy by, a person
  120  eligible for an exemption under s. 212.08(5)(e) for certain
  121  agricultural purposes;
  122         (c) The sale or transportation of electrical power or
  123  energy to, or the use of electrical power or energy by, a person
  124  eligible for an exemption under s. 212.08(7)(j) for use as a
  125  household fuel;
  126         (d) The sale or transportation of electrical power or
  127  energy to, or the use of electrical power or energy by, a person
  128  eligible for an exemption under s. 212.08(15)(a) for use in an
  129  enterprise zone;
  130         (e) The sale or transportation of electrical power or
  131  energy to, or the use of electrical power or energy by, a person
  132  who holds a valid Consumer’s Certificate of Exemption issued by
  133  the Department of Revenue;
  134         (f) The sale or transportation of electrical power or
  135  energy to, or the use of electrical power or energy by, a
  136  foreign diplomat and consular personnel who hold a tax exemption
  137  card issued by the United States Department of State; or
  138         (g) The sale or transportation of electrical power or
  139  energy to, or the use of electrical power or energy by, the
  140  Federal Government or any federal department, commission,
  141  agency, or other instrumentality thereof.
  142         (5)(4) The taxes tax imposed pursuant to this chapter
  143  relating to the provision of any utility services at the option
  144  of the person supplying the taxable services may be separately
  145  stated as Florida gross receipts taxes tax on the total amount
  146  of any bill, invoice, or other tangible evidence of the
  147  provision of such taxable services and may be added as a
  148  component part of the total charge. If Whenever a provider of
  149  taxable services elects to separately state such taxes tax as a
  150  component of the charge for the provision of such taxable
  151  services, every person, including all governmental units, shall
  152  remit the taxes tax to the person who provides such taxable
  153  services as a part of the total bill, and the taxes are tax is a
  154  component part of the debt of the purchaser to the person who
  155  provides such taxable services until paid and, if unpaid, are is
  156  recoverable at law in the same manner as any other part of the
  157  charge for such taxable services. If a utility provider elects
  158  to separately state the additional tax imposed by subparagraph
  159  (1)(b)4. on any bill, invoice, or other tangible evidence of the
  160  provision of such taxable service, the additional tax may not be
  161  included as part of the taxable base on which the gross receipts
  162  tax is calculated. For a utility, the decision to separately
  163  state any increase in the rate of tax imposed by this chapter
  164  which is effective after December 31, 1989, and the ability to
  165  recover the increased charge from the customer is shall not be
  166  subject to regulatory approval.
  167         (9)(8) Notwithstanding the provisions of subsection (5) (4)
  168  and s. 212.07(2), sums that were charged or billed as taxes
  169  under this section and chapter 212 and that were remitted to the
  170  state in full as taxes are shall not be subject to refund by the
  171  state or by the utility or other person that remitted the sums
  172  if, when the amount remitted was not in excess of the amount of
  173  tax imposed by chapter 212 and this section.
  174         Section 2. Paragraph (e) of subsection (1) of section
  175  212.05, Florida Statutes, is amended to read:
  176         212.05 Sales, storage, use tax.—It is hereby declared to be
  177  the legislative intent that every person is exercising a taxable
  178  privilege who engages in the business of selling tangible
  179  personal property at retail in this state, including the
  180  business of making mail order sales, or who rents or furnishes
  181  any of the things or services taxable under this chapter, or who
  182  stores for use or consumption in this state any item or article
  183  of tangible personal property as defined herein and who leases
  184  or rents such property within the state.
  185         (1) For the exercise of such privilege, a tax is levied on
  186  each taxable transaction or incident, which tax is due and
  187  payable as follows:
  188         (e)1. At the rate of 6 percent on charges for:
  189         a. Prepaid calling arrangements. The tax on charges for
  190  prepaid calling arrangements shall be collected at the time of
  191  sale and remitted by the selling dealer.
  192         (I) “Prepaid calling arrangement” means the separately
  193  stated retail sale by advance payment of communications services
  194  that consist exclusively of telephone calls originated by using
  195  an access number, authorization code, or other means that may be
  196  manually, electronically, or otherwise entered and that are sold
  197  in predetermined units or dollars whose number declines with use
  198  in a known amount.
  199         (II) If the sale or recharge of the prepaid calling
  200  arrangement does not take place at the dealer’s place of
  201  business, it shall be deemed to take place at the customer’s
  202  shipping address or, if no item is shipped, at the customer’s
  203  address or the location associated with the customer’s mobile
  204  telephone number.
  205         (III) The sale or recharge of a prepaid calling arrangement
  206  shall be treated as a sale of tangible personal property for
  207  purposes of this chapter, whether or not a tangible item
  208  evidencing such arrangement is furnished to the purchaser, and
  209  such sale within this state subjects the selling dealer to the
  210  jurisdiction of this state for purposes of this subsection.
  211         b. The installation of telecommunication and telegraphic
  212  equipment.
  213         c. Electrical power or energy, except that the tax rate for
  214  charges for electrical power or energy is 7 percent.
  215         (I) Effective January 1, 2015, the tax rate for charges for
  216  electrical power or energy is 4 percent.
  217         (II) Effective January 1, 2016, the tax rate for charges
  218  for electrical power or energy is 2 percent.
  219         (III) Effective January 1, 2017, the tax rate for charges
  220  for electrical power or energy is 0 percent.
  221         (IV) A discretionary sales surtax levied pursuant to s.
  222  212.055 and administered under s. 212.054 applies to charges for
  223  electrical power or energy regardless of the tax rate imposed
  224  under this sub-subparagraph.
  225         2. The provisions of s. 212.17(3), regarding credit for tax
  226  paid on charges subsequently found to be worthless are, shall be
  227  equally applicable to any tax paid under the provisions of this
  228  section on charges for prepaid calling arrangements,
  229  telecommunication or telegraph services, or electric power
  230  subsequently found to be uncollectible. The term word “charges”
  231  in this paragraph does not include any excise or similar tax
  232  levied by the Federal Government, any political subdivision of
  233  the state, or any municipality upon the purchase, sale, or
  234  recharge of prepaid calling arrangements or upon the purchase or
  235  sale of telecommunication, television system program, or
  236  telegraph service or electric power, which tax is collected by
  237  the seller from the purchaser.
  238         Section 3. Paragraph (a) of subsection (2) of section
  239  212.054, Florida Statutes, is amended to read:
  240         212.054 Discretionary sales surtax; limitations,
  241  administration, and collection.—
  242         (2)(a) The tax imposed by the governing body of any county
  243  authorized to so levy pursuant to s. 212.055 shall be a
  244  discretionary surtax on all transactions occurring in the county
  245  which transactions are subject to the state tax imposed on
  246  sales, use, services, rentals, admissions, and other
  247  transactions by this chapter and communications services as
  248  defined for purposes of chapter 202. The surtax shall be levied
  249  on all charges for electrical power or energy unless
  250  specifically exempted under this chapter. The surtax, if levied,
  251  shall be computed as the applicable rate or rates authorized
  252  pursuant to s. 212.055 times the amount of taxable sales and
  253  taxable purchases representing such transactions. If the surtax
  254  is levied on the sale of an item of tangible personal property
  255  or on the sale of a service, the surtax shall be computed by
  256  multiplying the rate imposed by the county within which the sale
  257  occurs by the amount of the taxable sale. The sale of an item of
  258  tangible personal property or the sale of a service is not
  259  subject to the surtax if the property, the service, or the
  260  tangible personal property representing the service is delivered
  261  within a county that does not impose a discretionary sales
  262  surtax.
  263         Section 4. Subsection (11) of section 212.12, Florida
  264  Statutes, is amended to read:
  265         212.12 Dealer’s credit for collecting tax; penalties for
  266  noncompliance; powers of Department of Revenue in dealing with
  267  delinquents; brackets applicable to taxable transactions;
  268  records required.—
  269         (11) The department shall make available in an electronic
  270  format or otherwise the tax amounts and brackets applicable to
  271  all taxable transactions that occur in counties that have a
  272  surtax at a rate other than 1 percent which transactions would
  273  otherwise have been transactions taxable at the rate of 6
  274  percent. Likewise, the department shall make available in an
  275  electronic format or otherwise the tax amounts and brackets
  276  applicable to transactions taxable as provided in at 7 percent
  277  pursuant to s. 212.05(1)(e), and on transactions which would
  278  otherwise have been so taxable in counties that which have
  279  adopted a discretionary sales surtax.
  280         Section 5. Sales tax holiday for Energy Star and WaterSense
  281  products.—
  282         (1) The tax levied under chapter 212, Florida Statutes, may
  283  not be collected during the period from 12:01 a.m. on September
  284  19, 2014, through 11:59 p.m. on September 21, 2014, on the first
  285  $1,500 of the sale price of a new Energy Star product or
  286  WaterSense product. However, a person is limited to one purchase
  287  of each specific type of Energy Star or WaterSense product
  288  listed in paragraph (2)(a) or paragraph (2)(b), respectively,
  289  which has a sales price of $500 or more. A second or subsequent
  290  purchase of a specific type of Energy Star product or WaterSense
  291  product that has a sales price of $500 or more is subject to
  292  tax.
  293         (2) As used in this section, the term:
  294         (a) “Energy Star product” means an air conditioner, air
  295  purifier, ceiling fan, clothes washer, dehumidifier, dishwasher,
  296  freezer, refrigerator, water heater, or package of light bulbs
  297  that is designated by the United States Environmental Protection
  298  Agency and the United States Department of Energy as meeting or
  299  exceeding each agency’s requirements under the Energy Star
  300  program and which is affixed with an Energy Star label.
  301         (b) “WaterSense product” means a bathroom sink faucet,
  302  faucet accessory, high-efficiency toilet, showerhead, or weather
  303  or sensor-based irrigation controller that is recognized as
  304  water efficient by the WaterSense program sponsored by the
  305  United States Environmental Protection Agency and which is
  306  affixed with a WaterSense label.
  307         (3) The Department of Revenue may, and all conditions are
  308  deemed met to, adopt emergency rules pursuant to ss. 120.536(1)
  309  and 120.54, Florida Statutes, to administer this section.
  310         Section 6. This act shall take effect July 1, 2014.