HomeMy WebLinkAbout05-04-2001 Notification Requirements - Public Service TaxGe�t—
BROWN, WARD, SALZMAN & WEISS, P.A.
Usher L. Brown
John H. Ward •
Gary S. Salzman'
Jeffrey S. Weiss
Suzanne D'Agresta
Anthony A. Garganese°
Scott D. Danahy
Alfred Truesdell
Arthur R. "Randy" Brown, Jr.
Brett A. Marlowe
.Jeffrey P. Buak
Kristine R. Kutz
Joseph G. Colombo
Joanne Reed
Board Certified Civil Trial Lawyer
° Board Certified Business Litigation Lawyer
° Board Certified City, County & Local Government Law
ATTORNEYS AT LAW
May 4, 2001
Ms. Louise Frangoul, Finance Director
City of Winter Springs
1126 East SR 434
Winter Springs, Florida 32708-2799
Re: Notification Requirements - Public Service Tax
Dear Ms. Frangoul:
Two Landmark Center
225 East Robinson Street, Suite 660
Post Office Box 2873
Orlando, FL 32802-2873
(407)425-9566
(407) 425-9596 FAX
Email: firm@oriandolaw.net
Website: www.ortandolaw.net
Please allow this correspondence to serve as a response to your request for a legal opinion
regarding the notification requirements of § 166.231 F.S. et seq. Substantially you asked, was the
City of Winter Springs required to notify Florida Power of its election to increase the public service
tax from eight (8%) percent to ten (10%) percent?
The short answer to your inquiry is no.
Florida law requires that any tax levy be adopted by ordinance, have an effective date of a
subsequent January 1, April 1, July 1, or October 1, and the municipality must give notice of the levy
to the Florida Department of Revenue at least one -hundred -twenty (120) days before the effective
date. See § 166.233(2)(a)
From the documents I have been provided, the City of Winter Springs enacted Ordinance 751
on or about November 22, 1999, which provided for an increase in the rate of the public service tax.
The City provided written notice to the Florida Department of Revenue on or about March 10, 2000,
Ms. Louise Frangoul, Finance Director
City of Winter Springs
May 4, 2001
Page 2
indicating the effective date of the rate change to be April 1, 2000. Due to the failure of the City to
provide at least one -hundred -twenty (120) days notice, the Department administratively found the
effective date to be July 1, 2000. This is the only notice required for a rate adjustment.
The City is required, upon a written request from any person, to provide a copy of any
ordinance adopting a levy or all amendments thereto and will provide lists of effected properties to
which the levy will apply. Upon receipt of such request the City will respond within 20 days from
the date of the request. The City is required to update the lists as changes occur and for notifying
the sellers affected by the changes. -.See § 166.233(3).
The assertions of Mr. Cone of Florida Power in his letter to you dated January 24, 2001, are
incorrect. Florida Power, as a seller of services within the City is required to monitor the Florida
Department of Revenue for changes in the public service taxes. Likewise, Florida Power has the
ability to monitor the jurisdictions within which it provides services by requesting information in
writing. Sellers of services, like Florida Power, are liable for taxes that are due and not remitted to
the municipality, and will have the election to recover such tax from its customers. See §
166.23](7). Finally, municipalities are authorized to assess interest and penalties for failure to pay
any tax when due or to file any required return. § 166.234(7).
I hope the foregoing was responsive to your inquiry. Given the aforesaid, it appears from
your handwritten notation to Mr. DeMarie on Florida Power's January 24, 2001 letter, Florida Power
may be liable to the City for back taxes which were not collected. The City Attorney would like you
to estimate how much in taxes Florida Power may owe the City of Winter Springs. At such time,
we would like to schedule a meeting with you and the City Manager to discuss how the City wishes
to proceed in this matter. Please provide me with a written estimate of the taxes which may be owed
at your earliest convenience.
Very truly yours,
;Oy rPBuak
JPB:kj
cc: LVIr. Gene DeMarie, Director of General Services
Anthony A. Garganese, City Attorney
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