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Home My WebLink About2001 07 02 Consent A Sales Tax Liability for the Concession Stands ~ '4_ _:,;;'" COMMISSION AGENDA ITEM A CONSENT X INFORMA TIONAL PUBLIC HEARING REGULAR July 2,2001 Meeting MGR ~EP~ Authorization REQUEST: The Finance Department Requesting the Commission to approve a supplemental appropriation in the amount of $23,650 from General Fund Reserves to Amend the FYOl Budget to Include the Cost of the Sales Tax Liability for the Concession Stand for the Period 3/96 - 9/00. PURPOSE: This item is needed to request authorization to amend the FY 01 budget to include the cost of the sales tax liability owed to the Department of Revenue for sales tax collected over the period 3/96 - 9/00 for concession stand sales estimated at $23,650 financed through a supplemental appropriation from the General Fund. CONSIDERATIONS: . The City of Winter Springs opened a concession stand in December 1992. . According to the Department of Revenue, a governmental entity that engages in sales such as that associated with a concession stand, must collect and remit sales tax. . According to Chuck Pula, Parks and Recreation Director, the City has properly been charging sales tax for concession stand sales. In conversations with his Concession Stand Manager, he understood that tax has been charged since opening the stand in December of 1992, with tax being built into the price of the goods for sale. . According to the Department of Revenue and Finance Department staff, the City did not have a resale certificate for sales tax and has not remitted quarterly sales tax payments to the Department of Revenue in connection with the concession stand since its opening in December 1992. . The Finance Department has applied for and received a 200 I Florida Annual Resale Certificate for Sales Tax dated 4/16/2001. ,.-.. -...~ . The Department of Revenue has requested remittance of the sales tax liability from 3/96 through current date. The liability for prior years, from 3/96 through 9/00 is $23,650. . The Department has not yet requested payment from 12/92 through 3/96. It appears they are looking 5 years back. . The Department has the right to charge the City both penalties and interest. If imposed, the City will attempt to have it waived. If not waived, additional appropriations may be necessary. . The FY 01 liability will be charged to concession stand revenues, which are currently overstated by the sales tax collection. FUNDING: A General Fund supplemental appropriation of$23,650 is needed to cover the costs associated with the prior year sales tax liability. RECOMMENDATION: It is recommended that authorization be given to 'amend the FY 01 budget to include a General Fund supplemental appropriation of $23,650 to cover the costs associated with the prior year sales tax liability. ATTACHMENTS: 1. 2001 Florida Annual Resale Certificate for Sales Tax COMMISSION ACTION: ~ . . ';;. .;.- .r_o 04/17/01 -$- DR-" R. 10/00 116 . ~ 'I Certifica~e of Registration J Issued Pursuant to Chapter 212, Florida Statutes DEPARTMENT OF REVENUE 69-13-072187-07-2 04/16/01 12/08/92 QUARTERLY Certificate Number Registration Effective Dale Opening Dale Filing Frequency This certifies that CITY OF WINTER SPRINGS 1126 E STATE ROAD 434 WINTER SPRINGS FL 32708-2715 has met the sales and use tax registration requirements for the business location stated above and is authorized to collect and remit tax as required by Florida law. This certificate is non-transferable. POST THIS CERTIFICATE iN A CONSPICUOUS PLACE ,... v THIS IS YOUR SALES & USE TAX CERTIFICATE OF REGISTRATION (DETACH AND POST IN A CONSPICUOUS PLACE) REFER TO THE BACK OF THIS SECTION FOR SPECIFIC INFORMATION REGARDING YOUR COUNTY'S TAX RATES. {) THIS IS YOUR ANNUAL RESALE CERTIFICATE FOR SALES TAX Note: New dealers who register after mid-October are issued annual resale certificates that expire on December 31 of the following year. These certificates are valid immediately. ~ II 2001 Florida Annual Resale Certificate for Sales Tax II THIS CERTIFICATE EXPIRES ON DECEMBER 31,2001 DR-13 R. 10/00 DErAIUMENT OF REVENUE Business Name and Location Address Registration Effective Date Certificate Number CITY OF WINTER SPRINGS 1126 E STATE ROAD 434 WINTER SPRINGS FL 32708-2715 APRIL 16,2001 69-13-072187-07-2 This is to certify that all tangible personal property purchased or rented, real property rented, or services purchased after the above Registration Effective Date by the above business are being purchased or rented for one of the following purposes; . Resale as tangible personal property, . Re-rental as real property, . Re-rental as tangible personal property. . Incorporation into and sale as part of the repair of . Resale of services, tangible personal property by a repair dealer. . Incorporation as a material. ingredient. or component part of tangible personal property that is being produced for sale by manufacturing. compounding. or processing. This certificale cannot be reassigned or transferred. This certificate can only be used by the active dealer or its authorized employees, Misuse of this Annual Resale Certificate will subject the user to penalties as provided by law. Presented to: Presented by: Au1horized Signature (purchaser) (date) (Insert name of seller on photocopy,) (date)