HomeMy WebLinkAboutOrdinance 751 Public Service Tax
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 166.231(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 II. MUNICIPAL PUBLIC SERVICE TAX
Sec. 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.
(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 ofthe 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:
(1) 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 of time for filing such return in accordance with
section 166.231 (9)(1), 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 166.231(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 (l00) 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 assess 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 April 1, 2000.
DONE AND ENACTED in regular session of the City Commission of the City of
Winter Springs, Florida this J;;l..rJ day of -Noia.,..,....b.....u , 1999.
A
C
THIS DOCUMENT WAS PREPARED BY:
Donald R. LeBlanc
Land Development Coordinator
City of Winter Springs
1126 East SR 434
Winter Springs FL 32708
~ ......... ~~ ~---...- ---- - - ----
The Orlando Sentinel
Published Daily
~tatt of jflortba } 5.5.
COUNTY OF ORANGE
BEVERL Y C. SIMMONS
Before the undersigned authority personally appeared
, who on oath says
that he/she is the Legal Advertising Representative of The Orlando Sentinel, a dally
newspaper published at AI T""ONTE ~PRINGS in
.~ r "T flI 01 t County, Florida;
that the attached copy of advertisement, being a NOTICE Of PUSlIC
in the matter of OR l). 1 S].
in the ~Fl"ITNOl t
was published in said newspaper in the issue; of ],],/],2/'1'
Court,
Affiant further says that the said Orlando Sentinel is a newspaper published at
~I Tl110~Tr ~PlnNG~ , in said
'\:rI"lTNO' r County, Florida,
and that the said newspaper has heretofore been continuously published in
said ~ F I"Il NOI V County, Florida,
each Week Day and has been entered as second-class mail matter at the post
office in AI T AMONTF ~PRING\: in said
\:fMTNOt [ County, Florida,
for a period of one year next preceding the first publication of the attached
copy of advertisement; and affiant further says that he/she has neither paid
nor promised any person, firm or rporation any discount, rebate,
commission or refund for the purpo of securi thi(Jverti ement for
publication in the said newspaper.
o' .
e this day of
S
The foregoing instrument was a nowle~~~d before
NOVEMBER ,19~, by B RLY C.
who is personally known to me an~o di ke an oath.
(SEAL)
~I~OI' JIURIC ttlAAlNG I
. CffY OJ'
WINTER SPRINGS, FLORIDA
~ICE IS HEREBY GIVEN by
the City Commission 01 the City
01 Wint., Springs, Florida that
said COmmission will hold a
Public He8rlng on an Ordinance
entitled as follOws:
ORDINANCE
NUMBER 751
AN ORDINANCE OF THE
CITY Of WINTER
~~~~~?:G CH~~~~~~t
TAXATION, OF THE COO"
~~I~SDt~~NE1:GJ'l'~E
CONSISTENT .WITH CUR.
RENrSTATE STATUTES
RELAmE 'to THE PUB-,
~liCTl~~"ltiE ~~~
TO LEVY A TAX ON TELE.
COMMUNICATIONS SER-
VICE AS PROVIDED UN.
DER SECTIONS 186.231
AND 203.012 . FLORIDA
STATUTE!;., PROVIDING
FOR SnERA.ILITY,
~c~~C~i'r~D AN EF-
The Public Hearing will be held
at 6:30 p.m. on Monday, No-
vember 22, 1999 or as soon
thereafter as ~ossible in the
g~lrTl~'~~t G~;::b~b:d f~
Winter Springs. Florida 32708:
Copies (If the proposed Ordi'
nance are available in the office
of the City Clerk for inspection.
IntereSlea parties may appear at
this hearin~ and be he;lrd with
~~s,fc~~t P~rs~~s ~~rcs~~b~;i~~
needing assistance to partici- I
pate in any 01 the$8 proceed-
Ings should contact the Employ- i
ee Relations Department ADA
Coordinator, 48 hours in ad-
3~9~esci'J. the meeting at (407)
, Per~ons are advised that if they
decide to appeal any decision
made at these meellngs/hear-
ings, they will need a record of
the proceedjngs and lor such
~~~g~~l ~elerr;;:Xrri'~:~ot~ i~i
the proceedings is made, which
,neludes the testimony and evi-
dence upon whiCh the appeal is
based, per Section 286.0105
F,S. '
~~b~Il3'I WINTER SPf'lINGS,
IslMayor Paul p, Pal'tyka
ATTEST:
IslAndrea Lorenzo-Luaees
City Clerk
CSE3010378 NOV. 12. 1999