Florida Senate - 2020 SB 1174 By Senator Hutson 7-01308-20 20201174__ Page 1 of 24 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1

An act relating to the communications services tax; 2 amending s. 202.105, F.S.; revising legislative intent 3 regarding local communications services tax rates; 4 amending s. 202.11, F.S.; revising the definition of 5 the term “video service”; amending s. 202.12, F.S.; 6 revising downward the tax rate on the retail sale of 7 communications services; amending s. 202.13, F.S.; 8 conforming provisions to changes made by the act; 9 amending s. 202.18, F.S.; deleting a provision that 10 specifies where proceeds of a communications services 11 tax must be deposited and disbursed; amending s. 12 202.19, F.S.; revising the local communications 13 services tax rates levied by counties and 14 municipalities at certain dates; requiring reductions 15 of certain tax rates at specified dates; requiring 16 dealers to collect and remit local communications 17 services taxes under certain conditions; specifying 18 the fees, taxes, charges, and other impositions that 19 the revised local communications services tax rates 20 replace; providing an exception; conforming provisions 21 to changes made by the act; creating s. 202.197, F.S.; 22 authorizing the Legislature to appropriate moneys to 23 offset specified direct reductions of the local 24 communications services tax by certain counties and 25 municipalities; providing a procedure for certain 26 counties and municipalities that expect an 27 insufficient revenue amount as a result of reduced 28 local communications services tax rates to apply to 29

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 2 of 24 CODING: Words stricken are deletions; words underlined are additions. the Department of Revenue for a legislative 30 appropriation; requiring the department to submit a 31 report to the Legislature regarding aggregate taxable 32 sales amounts and expected shortfalls in revenues; 33 amending s. 202.21, F.S.; deleting provisions 34 authorizing local governments to adjust the rate of 35 their local communications services taxes for 36 specified reasons; authorizing the department to amend 37 specified forms without first adopting a rule; 38 amending ss. 202.24, 202.37, and 337.401, F.S.; 39 conforming provisions to changes made by the act; 40 repealing s. 202.20, F.S., relating to local 41 communications services tax conversion rates; 42 providing a directive to the Division of Law Revision; 43 providing effective dates. 44 45 Be It Enacted by the Legislature of the State of Florida: 46 47

Section 1. Subsection (2) of

section 202.105, Florida 48 Statutes, is amended to read: 49 202.105 Legislative findings and intent.— 50

(2) It is declared to be a specific legislative finding 51 that to promote greater tax transparency and improve tax 52 compliance, the local communications services tax rates, which 53 vary substantially across more than 480 jurisdictions, should be 54 replaced by a streamlined rate system with one tax rate for 55 municipalities and charter counties and a second tax rate for 56 noncharter counties this

chapter will not reduce the authority 57 that municipalities or counties had to raise revenue in the 58

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 3 of 24 CODING: Words stricken are deletions; words underlined are additions. aggregate, as such authority existed on February 1, 1989. 59

Section 2. Effective upon this act becoming a law, 60 subsection (24) of

section 202.11, Florida Statutes, is amended 61 to read: 62 202.11

Definitions.—As used in this chapter, the term: 63 (24) “Video service” means the transmission of video, 64 audio, or other programming service to a purchaser, and the 65 purchaser interaction, if any, required for the selection or use 66 of a programming service, regardless of whether the programming 67 is transmitted over facilities owned or operated by the video 68 service provider or over facilities owned or operated by another 69 dealer of communications services. The term includes: 70 (

a) Point-to-point and point-to-multipoint distribution 71 services through which programming is transmitted or broadcast 72 by microwave or other equipment directly to the purchaser’s 73 premises, but does not include direct-to-home satellite service. 74 (

b) The term includes Basic, extended, premium, pay-per-75 view, digital video, two-way cable, and music services. 76 (

c) The rental of digital video content and subscriptions 77 to digital video content delivered to a Florida service address 78 by download, streaming, or some combination thereof, and where 79 the access to such content expires at a specific time or on the 80 occurrence of a condition subsequent. 81 82 The term does not include the sale of digital video content 83 stored online or downloaded to a customer’s device if the 84 purchaser’s access to such content does not expire and may be 85 viewed as long as the purchaser retains the digital video 86 content. 87

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 4 of 24 CODING: Words stricken are deletions; words underlined are additions.

Section 3. Paragraph (

a) of subsection (1) of

section 88 202.12, Florida Statutes, is amended to read: 89 202.12 Sales of communications services.—The Legislature 90 finds that every person who engages in the business of selling 91 communications services at retail in this state is exercising a 92 taxable privilege. It is the intent of the Legislature that the 93 tax imposed by

chapter 203 be administered as provided in this 94 chapter. 95

(1) For the exercise of such privilege, a tax is levied on 96 each taxable transaction and is due and payable as follows: 97 (

a) Except as otherwise provided in this subsection, at the 98 rate of 4.9 4.92 percent applied to the sales price of the 99 communications service that: 100 1. Originates and terminates in this state;, or 101 2. Originates or terminates in this state and is charged to 102 a service address in this state, 103 104 when sold at retail, computed on each taxable sale for the 105 purpose of remitting the tax due. The gross receipts tax imposed 106 by

chapter 203 shall be collected on the same taxable 107 transactions and remitted with the tax imposed by this 108 paragraph. If no tax is imposed by this paragraph due to the 109 exemption provided under s. 202.125(1), the tax imposed by 110

chapter 203 shall nevertheless be collected and remitted in the 111 manner and at the time prescribed for tax collections and 112 remittances under this chapter. 113

Section 4. Subsection (3) of

section 202.13, Florida 114 Statutes, is amended to read: 115 202.13 Intent.— 116

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 5 of 24 CODING: Words stricken are deletions; words underlined are additions.

(3) The tax on dealers of communications services 117 authorized under this chapter, including the tax imposed by 118 local governments under s. ss. 202.19 and 202.20, supersedes 119 shall supersede the authority of local governments to levy 120 franchise fees as set out in 47 U.S.C. s. 542 without regard to 121 the fact that this is a tax of general applicability on all 122 providers of communications services. 123

Section 5. Paragraphs (

a) and (

c) of subsection (3) of 124

section 202.18, Florida Statutes, are amended to read: 125 202.18 Allocation and disposition of tax proceeds.—The 126 proceeds of the communications services taxes remitted under 127 this

chapter shall be treated as follows: 128 (3)(

a) Notwithstanding any law to the contrary, the 129 proceeds of each local communications services tax levied by a 130 municipality or county pursuant to s. 202.19(1) or s. 202.20(1), 131 less the department’s costs of administration, shall be 132 transferred to the Local Communications Services Tax Clearing 133 Trust Fund and held there to be distributed to such municipality 134 or county. However, the proceeds of any communications services 135 tax imposed pursuant to s. 202.19(5) shall be deposited and 136 disbursed in accordance with ss. 212.054 and 212.055.

For 137 purposes of this section, the proceeds of any tax levied by a 138 municipality or, county, or school board under s. 202.19(1) or 139 s. 202.20(1) are all funds collected and received by the 140 department pursuant to a specific levy authorized by such 141 sections, including any interest and penalties attributable to 142 the tax levy. 143 (c)1. Except as otherwise provided in this paragraph, 144 proceeds of the taxes levied pursuant to s. 202.19, less amounts 145

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 6 of 24 CODING: Words stricken are deletions; words underlined are additions. deducted for costs of administration in accordance with 146 paragraph (b), shall be distributed monthly to the appropriate 147 jurisdictions. The proceeds of taxes imposed pursuant to s. 148 202.19(5) shall be distributed in the same manner as 149 discretionary surtaxes are distributed, in accordance with ss. 150 212.054 and 212.055. 151 2. The department shall make any adjustments to the 152 distributions pursuant to this

section which are necessary to 153 reflect the proper amounts due to individual jurisdictions or 154 trust funds. In the event that the department adjusts amounts 155 due to reflect a correction in the situsing of a customer, such 156 adjustment shall be limited to the amount of tax actually 157 collected from such customer by the dealer of communications 158 communication services. 159 3.a. Adjustments in distributions which are necessary to 160 correct misallocations between jurisdictions shall be governed 161 by this subparagraph.

If the department determines that 162 misallocations between jurisdictions occurred, it shall provide 163 written notice of such determination to all affected 164 jurisdictions. The notice shall include the amount of the 165 misallocations, the basis upon which the determination was made, 166 data supporting the determination, and the identity of each 167 affected jurisdiction. The notice shall also inform all affected 168 jurisdictions of their authority to enter into a written 169 agreement establishing a method of adjustment as described in 170 sub-subparagraph c. 171 b.

An adjustment affecting a distribution to a jurisdiction 172 which is less than 90 percent of the average monthly 173 distribution to that jurisdiction for the 6 months immediately 174

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 7 of 24 CODING: Words stricken are deletions; words underlined are additions. preceding the department’s determination, as reported by all 175 communications services dealers, shall be made in the month 176 immediately following the department’s determination that 177 misallocations occurred. 178 c.

If an adjustment affecting a distribution to a 179 jurisdiction equals or exceeds 90 percent of the average monthly 180 distribution to that jurisdiction for the 6 months immediately 181 preceding the department’s determination, as reported by all 182 communications services dealers, the affected jurisdictions may 183 enter into a written agreement establishing a method of 184 adjustment.

If the agreement establishing a method of adjustment 185 provides for payments of local communications services tax 186 monthly distributions, the amount of any such payment agreed to 187 may not exceed the local communications services tax monthly 188 distributions available to the jurisdiction that was allocated 189 amounts in excess of those to which it was entitled.

If affected 190 jurisdictions execute a written agreement specifying a method of 191 adjustment, a copy of the written agreement shall be provided to 192 the department no later than the first day of the month 193 following 90 days after the date the department transmits notice 194 of the misallocation.

If the department does not receive a copy 195 of the written agreement within the specified time period, an 196 adjustment affecting a distribution to a jurisdiction made 197 pursuant to this sub-subparagraph shall be prorated over a time 198 period that equals the time period over which the misallocations 199 occurred. 200

Section

Section 202.19, Florida Statutes, is amended to 201 read: 202 202.19 Authorization to impose local communications 203

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 8 of 24 CODING: Words stricken are deletions; words underlined are additions. services tax.— 204

(1) The governing authority of each county and municipality 205 may, by ordinance, levy a local discretionary communications 206 services tax as provided in this section. 207 (2)(

a) Local communications services tax rates in effect on 208 January 1, 2020, which are 5 percent or less may not be amended 209 beyond their current rates. Local communications services tax 210 rates in effect on January 1, 2020, which are greater than 5 211 percent must be reduced to 5 percent or less on January 1, 2021. 212 Each county and municipality must adopt a local communications 213 services tax rate ordinance of 5 percent or less by September 1, 214 2020, as provided in s. 202.21.

If a county or municipality 215 fails to adopt a rate ordinance on or before September 1, 2020, 216 a dealer may not collect or remit the local communications 217 services tax in excess of 5 percent on or after January 1, 2021 218 Charter counties and municipalities may levy the tax authorized 219 by subsection (1) at a rate of up to 5.1 percent for 220 municipalities and charter counties that have not chosen to levy 221 permit fees, and at a rate of up to 4.98 percent for 222 municipalities and charter counties that have chosen to levy 223 permit fees. 224 (b)1.

Beginning January 1, 2022, a charter county or 225 municipality may levy the tax authorized by subsection (1) at a 226 flat rate of 4 percent. To levy the local communications 227 services tax beginning January 1, 2022, each charter county and 228 municipality must adopt by ordinance a flat 4 percent tax rate 229 by September 1, 2021, as provided in s. 202.21. If a charter 230 county or municipality that levies the local communications 231 services tax on January 1, 2021, fails to adopt an ordinance 232

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 9 of 24 CODING: Words stricken are deletions; words underlined are additions. before September 1, 2021, to adjust its tax rate to 4 percent, a 233 dealer must collect and remit the local communications services 234 tax at a rate of 4 percent on and after January 1, 2022. Each 235 charter county and municipality may levy a 4 percent tax or 236 repeal a tax at any time. However, the 4 percent tax rate or 237 repeal is effective for bills dated on or after the following 238 January 1. 239 2.

Beginning January 1, 2022, a noncharter county may levy 240 the tax authorized by subsection (1) at a flat rate of 2 241 percent. If a noncharter county that levies the local 242 communications services tax on January 1, 2021, fails to adopt 243 an ordinance before September 1, 2021, to adjust its tax rate to 244 2 percent, a dealer must collect and remit the local 245 communications services tax at a rate of 2 percent on and after 246 January 1, 2022. A noncharter county may levy a 2 percent tax 247 rate or repeal a tax at any time.

However, the 2 percent tax 248 rate or repeal is effective for bills dated on or after the 249 following January 1 Noncharter counties may levy the tax 250 authorized by subsection (1) at a rate of up to 1.6 percent. 251 (

c) The maximum rates authorized by paragraphs (

a) and (b) 252 do not include the add-ons of up to 0.12 percent for 253 municipalities and charter counties or of up to 0.24 percent for 254 noncharter counties authorized pursuant to s. 337.401, nor do 255 they supersede conversion or emergency rates authorized by s. 256 202.20 which are in excess of these maximum rates. 257 (3)(

a) The tax authorized under this

section replaces other 258 revenue sources for municipalities and counties and includes the 259 following taxes, charges, fees, and other impositions to the 260 extent that the respective local taxing jurisdictions were 261

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 10 of 24 CODING: Words stricken are deletions; words underlined are additions. authorized to impose those taxes, charges, fees, and other 262 impositions before July 1, 2000, and after October 1, 2020: 263 1. With respect to a charter county or municipality: 264 a. The public service tax on telecommunications authorized 265 by s. 166.231(9), Florida Statutes (2001). 266 b. Franchise fees on providers of cable television services 267 as authorized by 47 U.S.C. s. 542. 268 c. The public service tax on prepaid calling arrangements. 269 d.

Franchise fees on dealers of communications services 270 that use the public roads or rights-of-way. 271 e. Actual permit fees relating to placing or maintaining 272 facilities in or on public roads or rights-of-way collected from 273 providers of long-distance, cable, and mobile communications 274 services for the fiscal year ending September 30, 1999; however, 275 if a municipality or charter county elected to continue charging 276 permit fees as authorized by s. 337.401 on or before January 1, 277 2019, the fees may not be included as a replaced revenue source. 278 f.

Application fees, transfer fees, renewal fees, or claims 279 for related costs to which the municipality or county is 280 otherwise entitled for granting permission to dealers of 281 communications services, including providers of cable television 282 services as authorized by 47 U.S.C. s. 542, to use or occupy its 283 roads or rights-of-way for the placement, construction, and 284 maintenance of poles, wires, and other fixtures used in the 285 provision of communications services. 286 2.

With respect to a noncharter county, franchise fees on 287 providers of cable television services as authorized by 47 288 U.S.C. s. 542 The tax authorized under this

section includes and 289 is in lieu of any fee or other consideration, including, but not 290

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 11 of 24 CODING: Words stricken are deletions; words underlined are additions. limited to, application fees, transfer fees, renewal fees, or 291 claims for related costs, to which the municipality or county is 292 otherwise entitled for granting permission to dealers of 293 communications services, including, but not limited to, 294 providers of cable television services, as authorized in 47 295 U.S.C. s. 542, to use or occupy its roads or rights-of-way for 296 the placement, construction, and maintenance of poles, wires, 297 and other fixtures used in the provision of communications 298 services. 299 (

b) This subsection does not supersede or impair the right, 300 if any, of a municipality or county to require the payment of 301 consideration or to require the payment of regulatory fees or 302 assessments by persons using or occupying its roads or rights-303 of-way in a capacity other than that of a dealer of 304 communications services. 305 (4)(a)1. Except as otherwise provided in this section, the 306 tax imposed by any municipality shall be on all communications 307 services subject to tax under s. 202.12 which: 308 a. Originate or terminate in this state; and 309 b.

Are charged to a service address in the municipality. 310 2. With respect to private communications services, the tax 311 shall be on the sales price of such services provided within the 312 municipality, which shall be determined in accordance with the 313 following provisions: 314 a. Any charge with respect to a channel termination point 315 located within such municipality; 316 b. Any charge for the use of a channel between two channel 317 termination points located in such municipality; and 318 c. Where channel termination points are located both within 319

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 12 of 24 CODING: Words stricken are deletions; words underlined are additions. and outside of the municipality: 320 (

I) If any segment between two such channel termination 321 points is separately billed, 50 percent of such charge; and 322 (II) If any segment of the circuit is not separately 323 billed, an amount equal to the total charge for such circuit 324 multiplied by a fraction, the numerator of which is the number 325 of channel termination points within such municipality and the 326 denominator of which is the total number of channel termination 327 points of the circuit. 328 (b)1.

Except as otherwise provided in this section, the tax 329 imposed by any county under subsection (1) shall be on all 330 communications services subject to tax under s. 202.12 which: 331 a. Originate or terminate in this state; and 332 b. Are charged to a service address in the unincorporated 333 area of the county. 334 2. With respect to private communications services, the tax 335 shall be on the sales price of such services provided within the 336 unincorporated area of the county, which shall be determined in 337 accordance with the following provisions: 338 a.

Any charge with respect to a channel termination point 339 located within the unincorporated area of such county; 340 b. Any charge for the use of a channel between two channel 341 termination points located in the unincorporated area of such 342 county; and 343 c. Where channel termination points are located both within 344 and outside of the unincorporated area of such county: 345 (

I) If any segment between two such channel termination 346 points is separately billed, 50 percent of such charge; and 347 (II) If any segment of the circuit is not separately 348

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 13 of 24 CODING: Words stricken are deletions; words underlined are additions. billed, an amount equal to the total charge for such circuit 349 multiplied by a fraction, the numerator of which is the number 350 of channel termination points within the unincorporated area of 351 such county and the denominator of which is the total number of 352 channel termination points of the circuit. 353

(5) In addition to the communications services taxes 354 authorized by subsection (1), a discretionary sales surtax that 355 a county or school board has levied under s. 212.055 is imposed 356 as a local communications services tax under this section, and 357 the rate shall be determined in accordance with s. 202.20(3). 358 (

a) Except as otherwise provided in this subsection, each 359 such tax rate shall be applied, in addition to the other tax 360 rates applied under this chapter, to communications services 361 subject to tax under s. 202.12 which: 362 1. Originate or terminate in this state; and 363 2. Are charged to a service address in the county. 364 (

b) With respect to private communications services, the 365 tax shall be on the sales price of such services provided within 366 the county, which shall be determined in accordance with the 367 following provisions: 368 1. Any charge with respect to a channel termination point 369 located within such county; 370 2. Any charge for the use of a channel between two channel 371 termination points located in such county; and 372 3. Where channel termination points are located both within 373 and outside of such county: 374 a.

If any segment between two such channel termination 375 points is separately billed, 50 percent of such charge; and 376 b. If any segment of the circuit is not separately billed, 377

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 14 of 24 CODING: Words stricken are deletions; words underlined are additions. an amount equal to the total charge for such circuit multiplied 378 by a fraction, the numerator of which is the number of channel 379 termination points within such county and the denominator of 380 which is the total number of channel termination points of the 381 circuit. 382 (5)

(6) Notwithstanding any other provision of this section, 383 a tax imposed under this

section does not apply to any direct-384 to-home satellite service. 385 (6)

(7) Notwithstanding any law to the contrary, a tax 386 imposed under this

section shall not exceed $25,000 per calendar 387 year on communications services charges billed to a service 388 address located in a municipality or county imposing a local 389 communications services tax for interstate communications 390 services that originate outside this state and terminate within 391 this state. This subsection applies only to holders of a direct-392 pay permit issued under s. 202.12(3). A person who does not 393 qualify for a direct-pay permit under s. 202.12(3) does not 394 qualify for a direct-pay permit under this subsection.

A refund 395 may not be given for taxes paid before receiving a direct-pay 396 permit.

Upon application, the department shall identify the 397 service addresses qualifying for the limitation provided by this 398 subsection on the direct-pay permit issued under s. 202.12(3) 399 and authorize such purchaser to pay the local communications tax 400 on such interstate services directly to the department if the 401 application indicates that the majority of such services used by 402 such person and billed to a service address are for 403 communications originating outside of this state and terminating 404 in this state.

The direct-pay permit shall also indicate the 405 counties or municipalities to which it applies. Any dealer of 406

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 15 of 24 CODING: Words stricken are deletions; words underlined are additions. communications services furnishing communications services to 407 the holder of a valid direct-pay permit is relieved of the 408 obligation to collect and remit the tax on such services. Tax 409 payments and returns pursuant to a direct-pay permit shall be 410 monthly. As used in this subsection, “person” means a single 411 legal entity and does not mean a group or combination of 412 affiliated entities or entities controlled by one person or 413 group of persons. 414 (7)

(8) The revenues raised by any tax imposed under 415 subsection (1) or s. 202.20(1), or distributed to a local 416 government pursuant to s. 202.18, may be used by a municipality 417 or county for any public purpose, including, but not limited to, 418 pledging such revenues for the repayment of current or future 419 bonded indebtedness. Revenues raised by a tax imposed under 420 subsection (5) shall be used for the same purposes as the 421 underlying discretionary sales surtax imposed by the county or 422 school board under s. 212.055. 423 (8)

(9) Notwithstanding any provision of law to the 424 contrary, the exemption set forth in s. 202.125(1) does shall 425 not apply to the local communications services a tax imposed by 426 this

section a municipality, school board, or county pursuant to 427 subsection (4) or subsection (5). 428 (9)

(10) To the extent that a provider of communications 429 services is required to pay to a local taxing jurisdiction a 430 tax, charge, or other fee under any franchise agreement or 431 ordinance with respect to the services or revenues that are also 432 subject to the tax imposed by this section, such provider is 433 entitled to a credit against the amount payable to the state 434 pursuant to this

section in the amount of such tax, charge, or 435

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 16 of 24 CODING: Words stricken are deletions; words underlined are additions. fee with respect to such services or revenues. The amount of 436 such credit shall be deducted from the amount that such local 437 taxing jurisdiction is entitled to receive under s. 202.18(3). 438 (10)

(11) Notwithstanding any other provision of this 439 section, with respect to mobile communications services, the 440 rate of a local communications services tax levied under this 441

section shall be applied to the sales price of all mobile 442 communications services deemed to be provided to a customer by a 443 home service provider pursuant to s. 117(

a) of the Mobile 444 Telecommunications Sourcing Act, Pub. L. No. 106-252, if such 445 customer’s service address is located within the municipality 446 levying the tax or within the unincorporated area of the county 447 levying the tax, as the case may be. 448

Section

Section 202.197, Florida Statutes, is created to 449 read: 450 202.197 Offset for certain local communications services 451 tax loss associated with tax rate reductions.— 452

(1) If in any year, as a direct result of the tax rate 453 changes required by this act, local communications services tax 454 revenues are expected to be insufficient to timely pay principal 455 and interest or to comply with any covenant under a bond 456 resolution for bonds or other indebtedness outstanding as of 457 January 1, 2020, the Legislature may appropriate to the affected 458 jurisdiction an amount needed to eliminate the insufficiency. 459 The fact that the revenues of a local communications services 460 tax are pledged generally or that multiple revenue streams are 461 pledged creates a presumption that the jurisdiction’s 462 insufficient revenue amount does not directly result from the 463 tax rate changes.

Local communications services tax revenue 464

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 17 of 24 CODING: Words stricken are deletions; words underlined are additions. decreases due to consumer price reductions for taxable services 465 or due to reduced purchases of taxable services are not a direct 466 result of the tax rate changes required by this act. 467

(2) On or before November 15, each affected jurisdiction 468 expecting an insufficient revenue amount under subsection (1) 469 shall apply for an appropriation to the department on a form and 470 in the manner prescribed by the department.

The department shall 471 review the application and report the jurisdiction’s aggregate 472 taxable sales amounts for each of the two prior 12-month periods 473 to allow the Legislature to calculate any reductions due to the 474 affected jurisdiction as a result of changes in taxable sales. 475 On or before January 1, the department shall submit a report to 476 the Legislature containing each jurisdiction’s application, 477 aggregate taxable sales amounts, and any supporting 478 documentation provided by the jurisdiction to substantiate the 479 expected shortfall in revenues to meet debt service or bond 480 covenant requirements. 481

Section

Section 202.21, Florida Statutes, is amended to 482 read: 483 202.21 Effective dates; procedures for informing dealers of 484 communications services of tax levies and rate adoptions or 485 repeals changes.—Any adoption or, repeal, or change in the rate 486 of a local communications services tax imposed under s. 202.19 487 is effective with respect to taxable services included on bills 488 that are dated on or after the January 1 subsequent to such 489 adoption or, repeal, or change.

A municipality or county 490 adopting or, repealing, or changing the rate of such tax must 491 notify the department of the adoption or, repeal, or change by 492 September 1 immediately preceding such January 1. Notification 493

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 18 of 24 CODING: Words stricken are deletions; words underlined are additions. must be furnished on a form prescribed by the department and 494 must specify the rate of tax; the effective date of the adoption 495 or, repeal, or change thereof; and the name, mailing address, 496 and telephone number of a person designated by the municipality 497 or county to respond to inquiries concerning the tax.

The 498 department shall provide notice of such adoption or, repeal, or 499 change to all affected dealers of communications services at 500 least 90 days before the effective date of the tax.

The 501 department is not required to adopt by rule as set forth in s. 502 120.54 amendments to the communications services tax return form 503 that solely add local communications services tax rates which 504 adopted or remove local communications services tax rates which 505 were repealed Any local government that adjusts the rate of its 506 local communications services tax by emergency ordinance or 507 resolution pursuant to s. 202.20(2) shall notify the department 508 of the new tax rate immediately upon its adoption.

The 509 department shall provide written notice of the adoption of the 510 new rate to all affected dealers within 30 days after receiving 511 such notice. In any notice to providers or publication of local 512 tax rates for purposes of this chapter, the department shall 513 express the rate for a municipality or charter county as the sum 514 of the tax rates levied within such jurisdiction pursuant to s. 515 202.19(2)(

a) and (5), and shall express the rate for any other 516 county as the sum of the tax rates levied pursuant to s. 517 202.19(2)(

b) and (5). The department is not liable for any loss 518 of or decrease in revenue by reason of any error, omission, or 519 untimely action that results in the nonpayment of a tax imposed 520 under s. 202.19. 521

Section 9. Paragraph (

c) of subsection (2) of

section 522

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 19 of 24 CODING: Words stricken are deletions; words underlined are additions. 202.24, Florida Statutes, is amended to read: 523 202.24 Limitations on local taxes and fees imposed on 524 dealers of communications services.— 525 (2) 526 (

c) This subsection does not apply to: 527 1. Local communications services taxes levied under this 528 chapter. 529 2. Ad valorem taxes levied pursuant to

chapter 200. 530 3. Business taxes levied under

chapter 205. 531 4. “911” service charges levied under

chapter 365. 532 5. Amounts charged for the rental or other use of property 533 owned by a public body which is not in the public rights-of-way 534 to a dealer of communications services for any purpose, 535 including, but not limited to, the placement or attachment of 536 equipment used in the provision of communications services. 537 6. Permit fees of general applicability which are not 538 related to placing or maintaining facilities in or on public 539 roads or rights-of-way. 540 7.

Permit fees related to placing or maintaining facilities 541 in or on public roads or rights-of-way pursuant to s. 337.401. 542 8. Any in-kind requirements, institutional networks, or 543 contributions for, or in support of, the use or construction of 544 public, educational, or governmental access facilities allowed 545 under federal law and imposed on providers of video service 546 pursuant to any existing ordinance or an existing franchise 547 agreement granted by each municipality or county, under which 548 ordinance or franchise agreement service is provided before July 549 1, 2007, or as permitted under

chapter 610. This subparagraph 550 does not prohibit providers of video service from recovering the 551

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 20 of 24 CODING: Words stricken are deletions; words underlined are additions. expenses as allowed under federal law. 552 9. Special assessments and impact fees. 553 10. Pole attachment fees that are charged by a local 554 government for attachments to utility poles owned by the local 555 government. 556 11. Utility service fees or other similar user fees for 557 utility services. 558 12. Any other generally applicable tax, fee, charge, or 559 imposition authorized by general law on July 1, 2000, which is 560 not specifically prohibited by this subsection or included as a 561 replaced revenue source in s. 202.19 s. 202.20. 562

Section 10. Paragraphs (

a) and (

b) of subsection (1) and 563 subsection (2) of

section 202.37, Florida Statutes, are amended 564 to read: 565 202.37 Special rules for administration of local 566 communications services tax.— 567 (1)(

a) Except as otherwise provided in this section, all 568 statutory provisions and administrative rules applicable to the 569 communications services tax imposed by s. 202.12 apply to any 570 local communications services tax imposed under s. 202.19, and 571 the department shall administer, collect, and enforce all taxes 572 imposed under s. 202.19, including interest and penalties 573 attributable thereto, in accordance with the same procedures 574 used in the administration, collection, and enforcement of the 575 communications services tax imposed by s. 202.12.

Audits 576 performed by the department shall include a determination of the 577 dealer’s compliance with the jurisdictional situsing of its 578 customers’ service addresses and a determination of whether the 579 rate collected for the local tax pursuant to s. ss. 202.19 and 580

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 21 of 24 CODING: Words stricken are deletions; words underlined are additions. 202.20 is correct. The person or entity designated by a local 581 government pursuant to s. 213.053(8) may provide evidence to the 582 department demonstrating a specific person’s failure to fully or 583 correctly report taxable communications services sales within 584 the jurisdiction. The department may request additional 585 information from the designee to assist in any review. The 586 department shall inform the designee of what action, if any, the 587 department intends to take regarding the person. 588 (

b) The department may contract with one or more private 589 entities to assist it in fulfilling its obligation of 590 administering the local communications services taxes imposed 591 under this chapter, including, but not limited to, the 592 compilation, maintenance, and publication of data pursuant to s. 593 ss. 202.21 and 202.22. 594

(2) Each dealer of communications services obligated to 595 collect and remit one or more local communications services 596 taxes imposed under s. 202.19 shall separately report and 597 identify each such tax to the department, by jurisdiction, on a 598 form prescribed by the department, and shall pay such taxes to 599 the department. However, taxes imposed under s. 202.19(5) shall 600 be added to and included in the amounts reported to the 601 department as taxes imposed under s. 202.19(1). A dealer of 602 communications services may include in a single payment to the 603 department: 604 (

a) The total amount of all local communications services 605 taxes imposed pursuant to s. 202.19; and 606 (

b) The amount of communications services tax imposed by 607 ss. 202.12 and 203.01. 608

Section 11. Paragraph (

c) of subsection (3) of

section 609

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 22 of 24 CODING: Words stricken are deletions; words underlined are additions. 337.401, Florida Statutes, is amended to read: 610 337.401 Use of right-of-way for utilities subject to 611 regulation; permit; fees.— 612 (3) 613 (

c) Any municipality or county that, as of January 1, 2019, 614 elected to require permit fees from any provider of 615 communications services that uses or occupies municipal or 616 county roads or rights-of-way pursuant to former paragraph (c) 617 or former paragraph (j), Florida Statutes 2018, may continue to 618 require and collect such fees. A municipality or county that 619 elected as of January 1, 2019, to require permit fees may elect 620 to forego such fees as provided herein.

A municipality or county 621 that elected as of January 1, 2019, not to require permit fees 622 may not elect to impose permit fees. All fees authorized under 623 this paragraph must be reasonable and commensurate with the 624 direct and actual cost of the regulatory activity, including 625 issuing and processing permits, plan reviews, physical 626 inspection, and direct administrative costs; must be 627 demonstrable; and must be equitable among users of the roads or 628 rights-of-way. A fee authorized under this paragraph may not be 629 offset against the tax imposed under

chapter 202; include the 630 costs of roads or rights-of-way acquisition or roads or rights-631 of-way rental; include any general administrative, management, 632 or maintenance costs of the roads or rights-of-way; or be based 633 on a percentage of the value or costs associated with the work 634 to be performed on the roads or rights-of-way. In an action to 635 recover amounts due for a fee not authorized under this 636 paragraph, the prevailing party may recover court costs and 637 attorney fees at trial and on appeal. In addition to the 638

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 23 of 24 CODING: Words stricken are deletions; words underlined are additions. limitations set forth in this section, a fee levied by a 639 municipality or charter county under this paragraph may not 640 exceed $100.

However, permit fees may not be imposed with 641 respect to permits that may be required for service drop lines 642 not required to be noticed under s. 556.108(5) or for any 643 activity that does not require the physical disturbance of the 644 roads or rights-of-way or does not impair access to or full use 645 of the roads or rights-of-way, including, but not limited to, 646 the performance of service restoration work on existing 647 facilities, extensions of such facilities for providing 648 communications services to customers, and the placement of micro 649 wireless facilities in accordance with subparagraph (7)(e)3. 650 1.

If a municipality or charter county elects to not 651 require permit fees, the total rate for the local communications 652 services tax as computed under s. 202.20 for that municipality 653 or charter county may be increased by ordinance or resolution by 654 an amount not to exceed a rate of 0.12 percent. 655 2.

If a noncharter county elects to not require permit 656 fees, the total rate for the local communications services tax 657 as computed under s. 202.20 for that noncharter county may be 658 increased by ordinance or resolution by an amount not to exceed 659 a rate of 0.24 percent, to replace the revenue the noncharter 660 county would otherwise have received from permit fees for 661 providers of communications services. 662

Section

Section 202.20, Florida Statutes, is repealed. 663

Section 13. The Division of Law Revision is directed to 664 replace the phrase “this act” in

Section 7 of this act with the 665

chapter law of this act. 666

Section 14. Except as otherwise expressly provided in this 667

Florida Senate - 2020 SB 1174 7-01308-20 20201174__ Page 24 of 24 CODING: Words stricken are deletions; words underlined are additions. act and except for this section, which shall take effect upon 668 this act becoming a law, this act shall take effect January 1, 669 2021. 670