HomeMy WebLinkAbout1999 11 08 Public Hearings Item F
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COMMISSION AGENDA
ADD-ON
ITEM F
Consent
Information
Public Hearin2 XX
Re2ular
November 8. 1999
Meeting
MGR. ~ept.
REQUEST: The City Manager presents to the Commission, for their action, the First Reading
of proposed Ordinance No. 751 which addresses the Public Service Tax.
PURPOSE: The purpose of this agenda item is for the Commission to act on the First Reading
of the proposed Ordinance No. 751 which would replace Chapter 18 of the Code
of Ordinances for the City of Winter Springs entitled Public Service Tax.
CONSIDERA TIONS:
1. The City Code establishes rates for Public Services Taxes at 8% for electricity, natural gas,
propane, water, local telephone, and telegraph services within the City.
2. State Statutes allows rates for public service taxes to go as high as 10%.
3. In the alternative, state statute provides that telephone and telegraph services may be bundled
together with other telecommunication services (i.e. Cell phone, fax, etc.) in a combined
telecommunications tax of 7%.
4. Although it is impossible to project from our records accurately what the increase on public
services taxes would be if we adopt the 7% telecommunications tax as an alternative to the
8% telephone and telegraph tax, the experience of other cities indicates that the revenues
could easily double and certainly not go down.
Table 1 below represents a conservative 50% increase in Fiscal Year 2001. The impact on
Fiscal Year 2000 is not representative of the increase since it takes approximately 6 months
to begin collecting the new rates after the ordinance is adopted.
TABLE I
FY 2001
BUDGET
FY 2001
PROJECTED
8% Telephoneffelegraph
7% Telecommunications
$288,500
$288,500
$420.000
$420,000
The Commission has three alternatives as follows:
1. Do Nothing.
2. Adopt the 7% telecommunications tax in lieu of the current 8% telephone and telegraph tax
and leave the other public services taxes at 8%.
3. Adopt the 7% telecommunications tax at 7% in lieu of the current 8% telephone and
telegraph tax and increase the other public service taxes to the 10% maximum.
Table II below shows a conservative revenue projection for the three alternatives:
TABLE IT
Alternative 1
FY 2000
Alternative 3
FY 2001
Adopt telecommunications
Tax, increase other Public
Services Taxes to 10%.
Alternative 2
FY 2001
Adopt 7% Telecommun-
Leave as is at 8% ications Tax, leave
Public Services Taxes at 8%.
Electricity $1,215,500 $1,180,000 $1,475,000
Water $ 206,000 $ 200,000 $ 250,000
Natural Gas $ 31,000 $ 30,000 $ 37,500
Propane $ 12,500 $ 12,000 $ 15,000
Telephone $ 228,500
Telecommunications $ 420.000 $ 420.000
Total $1,753,500 $1,842,000 $2,197,500
As shown above in Table II the revenue increases resulting from Alternative 3 would go a long
way toward replacing the COP's grant for the eight police officers provided for by the grant when
it expires next year in the alternative to raising property taxes.
APPLICABLE LAW:
Florida Statute Section 166.231
Municipalities; public service tax.
(l)(a) A municipality may levy a tax on the purchase of electricity, metered
natural gas, liquefied petroleum gas either metered or bottled, manufactured gas either metered
or bottled, and water service. The tax shall be levied only upon purchases within the
municipality and shall not exceed 10 percent of the payments received by the seller of the
taxable item from the purchaser for the purchase of such service. Municipalities imposing a tax
on the purchase of cable television service as of May 4, 1977, may continue to levy such tax to
the extent necessary to meet all obligations to or for the benefit of holders of bonds or
certificates which were issued prior to May 4, 1977. Purchase of electricity means the purchase
of electric power by a person who will consume it within the municipality.
(b) The tax imposed by paragraph (a) shall not be applied against any fuel
adjustment charge, and such charge shall be separately stated on each bill. The term "fuel
adjustment charge" means all increases in the cost of utility services to the ultimate consumer
resulting from an increase in the cost of fuel to the utility subsequent to October 1, 1973.
(9)(a) 2 Only upon purchases within the municipality of telecommunications
service that originates and terminates in this state at a rate not to exceed 7 percent of the total
amount charged for any telecommunications service provided within the municipality or, if the
location of the telecommunications service provided cannot be determined as part of the billing
process, the total amount billed for such telecommunications service to a telephone or telephone
number, a telecommunications number or device, a service address, or a customers' billing
address located within the municipality, excluding public telephone charges collected on site,
charges for any foreign exchange service or any private line service except when such services
are used or sold as a substitute for any telephone company switched service or dedicated facility
by which a telephone company provides a communication path, access charges, and any
customer access line charges paid to a local telephone company. However, telecommunications
service as defined in s. 203.012(5)(b) shall be taxed only on the monthly recurring customer
service charges excluding variable usage charges.
Florida Statute Section 203.012
Definitions. - As used in this chapter:
(1) The term "access charge" or "right of access" means any charge to any person
for the right to use or for the use of a telephone system which includes equipment, facilities, or
services to originate or terminate any of the services defined in subsection (4), subsection (5),
subsection (6), or subsection (7) and which specifically includes customer access line charges,
which includes the gross amount paid by subscribers and users in this state for access into the
intrastate or interstate interexchange network as authorized by the Federal Communications
Commission or the Florida Public Service Commission.
(2)(a) Gross receipts from telecommunication services include the gross receipts
for all telecommunication services of whatever nature, including, but not limited to, access
charges and charges for right of access; residential and business I-party, 2-part, and 4-party
rotary charges; centrex charges; directory assistance charges; public telephone charges; touch-
tone charges; emergency number charges; private branch exchange message charges; ;public
announcement service charges; dial-it charges; local area data transport charges; key lines
charges; private branch exchange trunk-flat rate charges; and directory listing charges other than
yellow-page classified listing charges.
(b) Gross receipts for telecommunication services do not include:
1. Charges for customer premises equipment, including such equipment that is
leased or rented by the customer from any source;
2. Charges made to the public for commercial or cable television, unless it is
used for two-way communication; however, if such two-way communication service is
separately billed, only the charges made for two-way communication service will be subject to
tax hereunder;
3. Charges made by hotels and motels, which are required under the provisions of
s. 212.03 to collect transient rentals tax from tenants and lessees, for local telephone service or
to]] telephone service, when such charge occurs incidental to the right of occupancy in such hotel
or motel;
4. Connection and disconnection charges; move or change charges; suspension of
service charges; and service order, number change and restoration charges; or
5. Charges for services or items of equipment supplied by providers of the
telecommunication services described in paragraph (5)(b), such as maintenance charges,
equipment sales, or rental which are incidental to the provision of such telecommunication
services, provided such charges are separately stated, itemized, or described on the bill, invoice,
or other tangible evidence of the provision of such service.
(3) The term "local telephone service" means:
(a) The access to a local telephone system, and the privilege of telephonic-quality
communication with substantially all persons having telephone or radio stations constituting a
part of such local telephone system; or
(b) Any facility or service provided in connection with a service described in
paragraph (a).
The term "local telephone service" does not include any service which is a toll telephone service;
private communication service; ce]]ular mobile telephone or telecommunication service;
specialized mobile radio, or pagers and paging service, including but not limited to "beepers"
and any other form of mobile and portable one-way or two-way communication; or
teletypewriter service.
(4) The term "private communication service" means:
( a) A communication service furnished to a subscriber or user that entitles the
subscriber or user to exclusive or priority use of a communication channel or groups of channels,
or to the use of an intercommunication system for the subscriber's stations, regardless of whether
such channel, groups of channels, or intercommunication system may be connected through
switching with a service described in subsection (3), subsection (6), or subsection (7);
(b) Switching capacity, extension lines, and stations or other associated services
which are provided in connection with, and which are necessary or unique to the use of, channels
or systems described in paragraph (a); or
(c) The channel mileage which connects a telephone station located outside a
local telephone system area with a central office in such local telephone system.
(5) The term "telecommunication service" means:
(a) Local telephone service, toll telephone service, telegram or telegraph service,
teletypewriter service, or private communication service; or
(b) Cellular mobile telephone or telecommunication service; or specialized
mobile radio, and pagers and paging service, including but not limited to "beepers" and any other
form of mobile and portable one-way or two-way communication; but does not include services
or equipment incidental to telecommunication services enumerated in this paragraph such as
maintenance of customer premises equipment, whether owned by the customer or not, or
equipment sales or rental for which charges are separately stated, itemized, or described on the
bill, invoice, or other tangible evidence of the provision of such service.
The term "telecommunication service" does not include any internet access service, electronic
mail service, electronic bulletin board service, or similar on-line computer service.
(6) The term "teletypewriter service" means the access from a teletypewriter,
telephone, or other data station of which such station is a part, and the privilege of
intercommunication by such station with substantially all persons having teletypewriter,
telephone, or other data stations constituting a part of the same teletypewriter system, to which
the subscriber or user is entitled upon payment of a charge or charges, whether such charge or
charges are determined as a flat periodic amount, on the basis of distance and elapsed
transmission time, or some other method. The term "teletypewriter service" does not include
local telephone service or toll telephone service.
(7) The term "toll telephone service" means:
(a) A telephonic-quality communication for which there is a toll charge which
varies in amount with the distance and elapsed transmission time of each individual
communication; or
(b) A service which entitles the subscriber or user, upon the payment of a
periodic charge which is determined as a flat amount or upon the basis of total elapsed
transmission time, to the privilege of an unlimited number of telephonic communications to or
from all or a substantial portion of the persons having telephone or radio telephone stations in a
specified area which is outside the local telephone system area in which the station provided
with this service is located.
The term "toll telephone service" includes interstate and intrastate wide-area telephone service
charges.
(8) The term "interstate," as applied to telecommunication services, means
originating in this state but not terminating in this state, or terminating in this state but not
originating in this state.
(9) The term "utility service" means electricity for light, heat, or power; natural
or manufactured gas for light, heat, or power; or telecommunication services.
(1) The term "person" means any person as defined in s. 212.02.
FINDINGS: 1) It is believed that the State will terminate a municipality's ability to levy a 7
percent tax on telecommunications services on January 1,2000. Those
municipalities without enabling legislation to collect this tax by year's end would
lose all rights to this tax.
2) Oral communications with the Florida League of Cities, the City of Orlando,
and the City of Longwood all say that the revenue base has increased.
FUNDING: No new funding required.
RECOMMENDATION:
1. Approve the First Reading of Ordinance #751 providing for the 7%
Telecommunications Tax in lieu of the 8% telephone and telegraph tax and
leave other public service tax rates at their current 8% rate, and consider
raising the other public service tax rates to 10% in FY 2001.
2. Approve the First Reading of Ordinance #751 providing for the 7%
Telecommunications Tax in lieu of the 8% telephone and telegraph tax and
increase the other public service taxes from 8% to 10% now.
IMPLEMENTATION:
November 8, 1999- Adoption First Reading.
November 22, 1999 - Adoption Second Reading.
March 22, 1999 - Completion of four month notice requirement.
April 1, 1999 - begin collecting new rates.
ATTACHMENTS:
A - Proposed Ordinance No. 751.
B - Land Development Coordinator Memo to City Manager dated
October 6, 1999.
C - City Code, Article II, Public Service Tax
COMMISSION ACTION:
ORDINANCE NO. 751
AN ORDINANCE OF THE CITY OF WINTER SPRINGS, FLORIDA,
AMENDING CHAPTER 18, TAXATION, OF THE CODE OF ORDINANCES,
PROVIDING FOR LANGUAGE CONSISTENT WITH CURRENT STATE
STATUTES RELATIVE TO THE PUBLIC SERVICE TAX; ELECTING THE
OPTION TO LEVY A TAX ON TELECOMMUNICATIONS SERVICE AS
PROVIDED UNDER SECTIONS 166.231 AND 203.012, FLORIDA STATUTES;
PROVIDING FOR SEVERABILITY, CONFLICTS, AND AN EFFECTIVE DATE.
WHEREAS, the City of Winter Springs adopted the Public Service Tax consistent with
Section 166.231, Florida Statutes, over ten (10) years ago; and,
WHEREAS, various amendments to the statute have occurred since that time which the
City of Winter Springs wishes to incorporate into its Code of Ordinances in order to remain
consistent with State statutes; and,
WHEREAS, the telecommunications service industry has undergone significant changes,
growth and diversification in recent years; and,
WHEREAS, Section 166.231, Florida Statutes, grants the municipalities the authority to
tax various services, including certain purchases of telecommunications services; and,
WHEREAS, the City Commission finds it necessary and proper to implement an
equitable taxing system allowed under Sections 166.231(1)(a) and 166.23 I (9)(a)2, Florida
Statutes;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF WINTER SPRINGS, FLORIDA:
SECTION I - That Chapter 18 of the Code of Ordinances be deleted in its entirety and
be replaced by the below listed:
ARTICLE I. IN GENERAL
Sees. 18-1 -- 18.25. Reserved.
ARTICLE ll. MUNICIPAL PUBLIC SERVICE TAX
See. 18-26. Levy.
(a) There is hereby imposed and levied by the city a tax upon each and every purchase of
electricity, metered or bottled gas (natural, liquefied or manufactured) and water service within
the city in the amount of ten (10) percent of the total amount charged by the seller of such utility
service or commodity. For purposes of calculating the tax, the amount charged for the taxable
service shall be deemed to include any gross receipts, taxes and franchise fees separately stated
on the customer's bill; provided, however, that the first three hundred (300) kilowatt hours of
electricity shall be exempt from said municipal public service tax for residential customers.
(b) There is hereby imposed and levied by the city a tax upon each and every purchase of
telecommunications service which originates and terminates in this state at a rate of seven (7)
percent of the total amount charged for any telecommunications service provided within the city
or, if the location of the telecommunications service provided cannot be determined, the total
amount billed for such telecommunications service to a telephone or telephone number, a
telecommunications number or device, or a customer's billing address located within the city,
excluding public telephone charges collected on site, charges for any foreign exchange service or
any private line service except when such services are used or sold as a substitute for any
telephone company switched service or dedicated facility by which a telephone company
provides and communication path, access charges, and any customer access line charges to a
local telephone company. However, telephone communication service shall be taxed only on the
monthly recurring customer service charges excluding variable usage charges. For purposes of
calculating the tax, the amount charged for the taxable service shall be deemed to include any
gross receipts taxes and franchise fees separately stated on the customer's bill.
(c) As used in this chapter, terms shall have the meaning and definition given to them
under section 203.012, Florida Statutes, including, but not limited to the terms "access charge" or
"right of access", "local telephone service", "private communication service",
"telecommunications service", "teletypewriter or computer exchange service" and "toll telephone
service" .
Sec. 18-27. Exemptions.
Purchases by all federal, state, county and municipal governments and their commissions
and agencies, all public schools and all recognized churches that possess a consumer certificate
of exemption issued under chapter 212, Florida Statutes, telecommunications service for use in
the conduct of a telecommunications service for hire or otherwise for resale and certain other
public bodies exempted by law or court order, shall be exempt from the taxes hereby imposed
and levied under this article. However, governmental bodies which sell or resell taxable service
to nonexempt end users must collect and remit the tax levies under section 18-26.
Sec. 18-28. Collection by seller.
(a) It shall be the duty of every seller of electricity, metered or bottled gas (natural,
liquefied or manufactured), water service and telecommunications service within the city to
collect from the purchaser, for the use of the city, the tax levied under section 18-26, at the time
of collecting the charge therefor, and to file a return and remit, on or before the twentieth day of
each calendar month, or if the twentieth day is either a legal holiday or is not a city business day,
then on or before the first city business day that is not also a legal holiday, following the
twentieth day of the month, unto the city, all such taxes levied and collected during the preceding
calendar month. The date of receipt of such taxes by the city will be the date of postmark, or if
by electronic transfer, the date received by the city's primary bank as indicated on the city's bank
statement. Notwithstanding any other provision of this section, in the event the total amount of
tax anticipated to be collected within a calendar quarter does not exceed one hundred twenty
dollars ($120.00), the seller of such service may, with the authorization of the city, remit the
taxes collected during such calendar quarter to the city quarterly. In such case, the tax shall be
due on or before the twentieth day of the month following the end of the calendar quarter in
which the taxes were collected. The term "return" as used in this section, means the supporting
documentation submitted periodically in accordance with the provisions of this chapter, and to be
accompanied by the tax remittance, if any for that period, unto the city, which at a minimum
shall indicate:
(I) The name and address of the seller; and,
(2) The time period covered with respect to the particular return being filed; and,
(3) The amount (in US. dollars) of the revenue collected from the sale of the
taxable service; and,
(4) The amount (in US. dollars) of any collection allowance taken in accordance
with Florida law; and,
(5) The amount (in US. dollars) of tax being remitted to the city, or having been
sent by electronic transfer to the city's bank, which is the subject of the particular
return being filed; and,
(6) The name and telephone number of a person authorized by the seller to
respond to inquiries from the city concerning how the seller is administering and
collecting the tax.
Any seller remitting the tax by electronic transfer must nevertheless send periodic returns to the
city. It shall be unlawful for any seller to collect for any such service without at the same time
collecting the tax hereby levied with respect to such sales, unless such seller shall elect to assume
and pay such tax without collecting the same from the purchaser. Any seller failing to collect
such tax at the time of collecting for any such service, where the seller has not elected to assume
and pay such tax, shall be liable to the city for the amount of such tax in like manner as if the
same had actually been paid to the seller, and the mayor of the city may cause to be brought all
suit actions and to take all proceedings in the name of the city as may be necessary for the
recovery of such tax; provided, however, that the seller shall not be liable for the payment of the
tax upon uncollected bills. If any purchaser shall fail, neglect, or refuse to pay for any such
service, including the tax hereby imposed, the seller shall have the right and is hereby authorized
and empowered to immediately discontinue further service to such purchaser until the same is
paid in full; provided, however, that in the case that bills for the use of any of the above services
rendered by the utilities are rendered at any other date than the first of the month, the utility
company shall be allowed twenty (20) days from the date the bill is rendered for the collection
and payment of the tax to the city. Sellers may remit by hand-delivery or postal service to 1126
East State Road 434, Winter Springs, Florida 32708, or by electronic transfer to the city's
primary bank. However, if a seller elects to remit by electronic transfer, that seller shall
thereafter always remit by electronic transfer.
(b) For the purpose of compensating the seller of telecommunications service, the seller
shall be allowed one percent of the amount of tax collected and due to the city in the form of a
deduction from the amount collected for remittance. This deduction shall be allowed as
compensation for the keeping of records and for the collection of, and the remitting of, the tax.
This deduction shall not be allowed in the event of an untimely return, unless the seller has in
writing requested and been granted an extension oftime for filing such return in accordance with
section 166.231 (9)(f), Florida Statutes.
Sec. 18-29. Seller's records.
Each and every seller of electricity, metered or bottled gas (natural, liquefied or
manufactured), water service and telecommunications service, shall keep at its principal place of
business a complete record showing all sales in the city of such commodities or service, which
records shall show the price charged upon each sale, the date thereof, the date of payment, the
amount of utility taxes charged upon each sale, the date such utility tax was remitted to the city,
the period of time covered by such remittance and other related information that may be required
to verify proper collection and remittance of said taxes. To assure proper administration of the
provisions of this chapter, the city may, where possible and practical, conduct a periodic audit of
each sales records of all businesses in connection with which the tax is imposed under this
chapter. Failure to conduct such an audit will not eliminate the liability of the seller for
collection and remittance of the tax. Pursuant to section 166.234, Florida Statues, the city may,
during the seller's normal business hours at the official location of the seller's books and records,
audit the records of any seller of a service that is taxable by the city under section 166.231 or
166.232, Florida Statutes, for the purposes of ascertaining whether taxable services have been
provided or the correctness of any return that has been filed or payment that has been made, if
the city's power to assess tax or grant a refund is not barred by the applicable limitations period.
Each such seller must provide to the city, upon sixty (60) days written notice of intent to audit
from the city, access to applicable records for such service, except an extension of this sixty-day
period must be granted if reasonably requested by the seller. The seller may at its option waive
the sixty-day notice requirement. If either the city or the seller requires an additional extension,
it must give notice to the other no less than thirty (30) days before the existing extension expires,
except in cases of bona fide emergency or waiver of the notice requirement by the other party.
In an audit, the seller is liable only for its taxable accounts collected which correspond to the
information provided to it by the city under section 166.233(3), Florida Statutes. As used in this
section "applicable records" means records kept in the ordinary course of business which
establish the collection and remittance of taxes due. Such applicable records may be provided to
the city on an electronic medium if agreed to by the seller and the city. In accordance with
section 166.23 I (9)(c), Florida Statutes, any information received by the city or its agent in
connection with such audit is confidential and exempt from the provisions of section 119.07(1),
Florida Statutes.
Sec. 18-30. Interest and penalties.
(a) Any seller of electricity, metered or bottled gas (natural, liquefied or manufactured),
water service or telecommunications service failing to remit to the city on or before the twentieth
day of each calendar month or quarter, as applicable, or if the twentieth day is either a legal
holiday or is not a city business day, then on or before the first city business day, that is not also
a legal holiday, following the twentieth day of the month or quarter, as applicable, all such taxes
levied and collected during the proceeding tax period shall be liable for interest on the unpaid
amount of tax at the rate of one percent per month from the date the tax was due until paid. In
addition, penalties will be assessed at a rate offive (5) percent per month of the delinquent tax,
not to exceed a total penalty of twenty-five (25) percent, except that in no event will the penalty
for failure to file a return be less that fifteen dollars ($15.00). In the case ofa fraudulent return
or a willful intent to evade payment of the tax, the seller making such fraudulent return or
willfully attempting to evade payment of the tax, shall be liable for a specific penalty of one
hundred (100) percent of the tax. Interest and penalties shall be computed on the net tax due
after application of any overpayments. The interest and penalties shall accrue from the due date
until the date such taxes are paid; provided, however, that the city may settle or compromise any
interest due pursuant to this section as is reasonable under the circumstances.
(b) The city is entitled to and may asses against any seller not complying with any
provision of this chapter, a fee based upon the actual costs incurred by the city in collecting the
tax or the information due.
SECTION II - Conflicts. All Ordinances in conflict for the provisions of this Ordinance are
hereby superceded and this Ordinance shall prevail.
SECTION III - Severability. If any words, phrase, sentence or portion of this Ordinance is
stricken by a Florida Court of competent jurisdiction, all other terms and conditions of the
Ordinance not specifically stricken shall remain in full force and effect.
SECTION IV - Effective Date. This Ordinance shall become effective on May 1, 2000.
DONE AND ENACTED in regular session of the City Commission of the City of
Winter Springs, Florida this day of , 1999.
CITY OF WINTER SPRINGS, FLORIDA
MayorPaulP.Partyka
ATTEST:
Andrea Lorenzo-Luaces, City Clerk
CLTY of.wniTER SPRINGS, FLORIDA
Municipal Public Service Tax Report
For the period of
to
"
Company
Address
Phone
Gross Sales
Less: Exempt Sales
Taxable Sales
Tax Collected
Less: Collection
Allowance (1 %)
Total Tax Due
I certify that the above return is. to the best of my knowledge and belief, a true and correct statement.
Signature
Date
Print Name
Telephone
Title
Revised 4/16/99
SAMPLE -NOTIFICA 1'10 N LETTER
Date
Business Address
Dear --------:
On , the City Commission of the City of Winter Springs, Florida
adopted Ordinance No. imposing a 7% public service tax on all intrastate
telecommunications services. (Name of Company) was included on one or more lists obtained
by the City from various sources to identify companies that may be doing business within the
City limits, and would therefore be required to collect this tax.
Florida law requires that companies be given up to 120 days notice of this tax. In order to give
your company sufficient time to make any necessary changes to your system, you must
implement this tax not later than the first billing cycle beginning on or after May I, 2000. If
your company does not have any customers within the City limits at this time, please retain this
information for future use.
Enclosed you will find a copy of Ordinance No. _ and a listing of street addresses within the
City limits. Any billings to post office boxes in Winter Springs would also be taxable. A sample
remittance for is included, but feel free to use your own form as long as it contains the same
information.
Any information you could provide as to parent companies, subsidiaries or competitors who
should be advised of this tax would be welcome. Please call me at (telephone #) if you have any
questions. Thank you for your cooperation.
Sincerely,
CITY OF WINTER SPRINGS
(someone in finance)
October 6, 1999
To:
Ron McLemore, City Manager
Don leBlanc, Land Development coordinato@
From:
Re:
Public Service Tax
Attached for legal review is a proposed ordinance which will implement the public service tax
throughout the City of Winter Springs. This ordinance is a verbatim copy of the existing
Longwood ordinance. Also attached is a sample letter to be sent to the various companies
notifying them of the ordinance.
A change to Chapter 18 would be to increase the tax on electricity, metered or bottled gas and
water service from 8% to 10%.
Longwood stated that the revenues collected prior to the enactment of the ordinance for the year
95/96 were $337,000.00. After enactment, the revenues for 96/97 were $898,000.00 and the
revenues for 98/99 were $1,040,000.00.
If this is legally correct, then the ordinance could be enacted in November 1999, all notifications
sent out in December 1999, and the effective date of the ordinance would be May 1,2000.
It is assumed that someone in finance will ramrod this after enactment.
TAXATION
ARTICLE I. IN GENERAL
Sees. 18-1-18.25. Reserved.
ARTICLE II. PUBLIC SERVICE TAX.
Sec. 18-26. Levied; amount; payment.
(a) There is hereby levied against each and every
purchaser or person using electricity, metered or
bottled gas, water, local telephone and telegraph
service within the corporate limits of the city, a
tax based upon and a charge made, by the seller
thereof, as follows: Eight (8) percent of the total
amount billed. Such percentage may be changed
from time to time by resolution duly passed by
the city commission.
(b) The tax shall, in every case, be paid by the
purchaser for the use of the city, to the seller of
such electricity, metered or bottled gas, water,
local telephone and telegraph service, at the time
of paying the charge therefor to the seller thereof,
but not less often than monthly.
(Ord. No. 454, S 1,3-27-89)
Sec. 18-27. Duty of seller to collect; forward to
tax collector; liability of seller,
buyer.
(a) It shall be the duty of every seller of elec-
tricity, metered or bottled gas, water, local tele-
phone and telegraph service, to collect from the
purchaser, for the use of the city, the tax hereby
levied at the time of collecting the selling price
charged for each transaction and to report and to
pay over, on or before the 15th day of each fiscal
month, to the tax collector of the city, all such
taxes levied and collected during the preceding
fiscal month.
*Editor's note-Ord. No. 454, !i!i 1-5, adopted Mar. 27,
1989, enacted provisions pertaining to a public service tax.
Such provisions have been codified as Art. II, !i!i 18.26-18.30.
Formerly, Art. II, !i!i 18.26-18-31, pertained to the same sub.
ject matter and was derived from the 1974 Code, !i!i 15-16-15.21
(Ord. No. 161, !i!i 1-5, adopted Oct. 24, 1977). Sec. 6 of Ord.
No. 454 repealed Ord. No. 161.
Cross reference-Utilities, Ch. 19.
State law reference-Authority of municipality to impose
tax on utility purchases, F.S. !i 166.231 et seq.
Supp. No.1
!i 18-28
(b) It shall be unlawful for any sene!!' to. collect
the price of any purchase of electricity, metered
or bottled gas, water, local telephone. and tele-
graph service, without at the time, collecting the
tax hereby levied in respect to such purchase or
purchases, unless such seller shall elect to assume
and pay such tax without collecting the same
from the purchaser.
(c) Any seller failing to collect such tax at the
time of collecting the price of any purchase, where
the seller has not elected to assume and pay such
tax, shall be liable to the city for the amount of
such tax in like manner as if the same had actu-
ally been paid to the seller, and the mayor shall
cause to be brought all suits and actions and to
take all proceedings in the name of the city as
may be necessary for the recovery of such tax;
provided, however, the seller shall not be liable
for the payment of such tax upon uncollected bills.
(d) If any purchaser shall fail, neglect or refuse
to pay to the seller, the seller's charge, and the
tax hereby imposed and as hereby required, on
account of the purchase for which such charge is
made, or either, the seller shall have and is hereby
vested with the rights, power and authority to
immediately discontinue further service to such
purchaser until the tax and the seller's bill shall
have been paid in full.
(Ord. No. 454, ~ 2, 3-27-89)
Sec. 18-28. Records required, inspection;
authority to transcribe.
Each and every seller of electricity, metered or
bottled gas, water, local telephone and telegraph
service, shall keep complete records showing all
purchases in the city of such commodities or ser-
vice, which records shall show the price charged
upon each purchase, the date thereof, and the
date of payment thereof, and such records shall
be kept open for inspection by the duly author-
ized agents of the city during business hours on
all business days, and the duly authorized agents
of the city shall have the rights, power and au-
thority to take such transcripts thereof during
such times as they may desire.
(Ord. No. 454, ~ 3,3-27-89)
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