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64-86 ORDINANCE NO. 64-86 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING CHAPTER 25, "TAXATION", OF THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING ARTICLE III, "UTILITY SERVICES", SECTION 25-23, "LEVIED; PURCHASER TO PAY", TO ADD A NEW SUBSECTION TO MODIFY THE TAX ON LOCAL TELEPHONE SERVICES TO BE FROM 8.5% TO 7.0% BASED UPON LOCAL SERVICE EMANATING OR TERMINATING IN THE CITY OF DELRAY BEACH; AND PROVIDING FOR EARMARKING OF A PORTION THEREOF FOR THE CITY OF DELRAY BEACH BEAUTIFICATION PROGRAM; PROVIDING A SAVING CLAUSE; PROVIDING A GENERAL REPEALER; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Delray Beach, Florida, a municipal corporation of the State of Florida, pursuant to Article VIII, Section 2(b) of the Constitution of the State of Florida, and the provisions of ail generai laws relating to and governing municipalities generally in the State of Florida finds that it is necessary and proper to modify and levy a public service tax as authorized by the revisions of Florida Statutes Section 166.231(2) and 166.231(9), as may be subsequently amended, on the purchase of "Telecommunications Services"; and, WHEREAS, the City Council of the City of Delray Beach, Florida, has determined that said public service tax shail be equal to seven percent (7%) of the payments received by the seller of the taxable item from the purchaser for the purchase of such service. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That Section 25-23, "Levied; purchaser to pay", of the Code of Ordinances of the City of Delray Beach, Florida, shall be and the same is hereby amended to read as follows: Sec. 25-23. Levied; purchaser to pay. (a) There is hereby levied by the City on each and every purchase in the city, of electricity, and metered and bottled gas (natural or manufactured), a~l--l~eal ~el~e-se~v~ee, a tax based upon the charge made by the seller thereof, as follows, to wit: Eight and one-half percent (8.5%) on the totai amount billed in any current month. Which tax shall, in every case, be paid by the purchaser, for the use of the city, to the seller of such electricity, gas or local telephone service at the time of paying the charges therefor to the seller thereof, but not less often than monthly. (b) The tax imposed by subsection (a) above shall not be applied against any fuel adjustment charge, and such charge shail be separately stated on each bill. "Fuel adjustment charge" shail mean ail increases in the cost of utility services to the ultimate consumer resulting from an increase in the cost of fuel to the utility subse- quent to October 1, 1973. (c) That portion of the revenues attributable to the increase in the tax from seven and one-hail percent (7.5%)to eight and one-half percent (8.5%), as set forth in Section 25-23(a), above, shail be transferred monthly to the City of Delray Beach Program, to be used solely for capital expenses or retirement of bonded indebtedness, incurred in or for projects for the beautification of the public rights-of-way within the city. Any revenues transferred to such fund in excess of fund expenditures in any fiscal year shall be retained and reappropriated in the fund in the next fiscal year. (d) Telecommunications Services Public Service Tax. (1) Definitions. For purposes of Section 25-23(d), the following defini- tions shall apply: i. Purchase. Every act or transaction whereby possession of, utilization of, or control over taxable telecommunications ser- vices become vested in the purchaser within the City of IJelray Beach, Florida, for which payment is made pursuant to a duty and obligation therefore; but such terms shall not pertain to, nor include any such act or transaction when undertaken or PGerformed by an a~ency or instrumentality of the United States overnment, the State of Florida, the County, a municipality, or a recognized chUrch in the State if used exclusively for church purposes; nor shall such term apply to purchases of local telephone service or other telecommunication service for use in the conduct of a telecommunications service for hire or otherwise for resale. ii. Purchaser. Every person leg. ally liable for the payment of taxable telecommunication serwces rendered to him/her, by a seller, unless such person is an agency or instrumentality of the United States Government, the State of Florida, the County, a municipality, a recognized church in this State using taxable telecommunication services exclusively for church purposes, or a purchaser of local telephone service or other telecommunication services for use in the conduct of a telecom- munication service for hire or otherwise for resale. iff. Seller. Every person renderin~ taxable telecommunications services to any purchaser thereof. iv. Taxable Telecommunication Services. Purchases within the City of Delray Beach, Florida, telecommunication services which originate and terminate in this State, excluding public telephone charges collected on sight, access charges, any customer access line charges paid to a local telephone company, and Intra-State toll charges, billed to a telephone number other than the originating or terminating telephone number located within the City of Delray Beach; provided, purchases within the City of Delray Beach of telecommunica- tions services as defined in Florida Statutes Section 203.012(5)(b) shail be taxed only on the monthly recurring customer service charges excluding variable usage charges. v. Purchase Within the Citv. of Delra. ¥ Beach. A purchase is within the City of Delray Beach if the communication originates or terminates within the City of Delray Beach and is billed to a purchaser, telephone or telephone number, or telecommunica- tions number or device within the City. (2) There is hereby levied and imposed by the City, upon every pur- chase in the City of Delray Beach of taxable communications and services and competitive services, a public service tax which shall be determined as follows: i. The tax shall be levied only upon purchases within the City of Delray Beach in the amount of seven percent (7%) of the payments received by the seller of the taxable telecommunica- tions services from the purchaser for the purchase of such service within the City. Services competitive with those enumerated above shall be taxed on a comparable base at the same rates. 2 ORD. NO. 64-86 ii. When the seller in accordance with its rules and re~[ulations renders a bill to the purchaser to cover purchases made during the period of time to which the bill is applicable, the amount of public service tax shall be exclusive of ~overnmental charges and taxes, shown on such purchases~ for the total amount. iii. The seller is required and it shall be his/her/its duty to render to such purchaser bills covering all such pu.rchases made, and the amount of such public utility tax shall be entered and shown by the seller as a separate item on each such bill and shall become due and payable to the City of Delray Beach whenever such bill becomes due and payable under the rules and re~'ulations of the seller, provided and to the extent that such bills are subsequently paid. iv. The purchaser is required and it shall be his/her/its duty to pay such public utility tax to the seller as agent for the City of Delray Beach, at the time of the payment of each such bill. The seller is hereby authorized and required and it shall be his/her/its duty to collect such public utility tax from such purchaser at the time of the payment of each such bill and to remit the same to the Finance Department of the City of Delray Beach in accordance with the provisions hereinafter stated. (3) Exemptions. Purchases of the taxable telecommunications services by the United Stated Government, the State of Florida, the County, a municipality, any recognized church in this State if used exclu- sively for church purposes, and purchases of local telephone ser- vice or other telecommunication service for use in the conduct of a telecommunication service for hire or otherwise for resale are exempt from taxation under the terms of Section 25-23(d). (4) Seller Compensation. For the purpose of compensating the selIer of taxable telecommunications services, such seller shall be allowed one percent (1%) of the amount of the tax collected for such taxable telecommunication services and due to the City of Delray Beach in the form of a deduction from the amount collected for remittance. The deduction is allowed as compensation for keeping of records and collection of tax and remitting the same. (5) Remittance of Tax to the City of Delray Beach by Seller. Every seller is hereby required to execute and file not later than the twentieth (20th) day of each calendar month of the year at the office of the Finance Department of the City of Delra¥ Beach a statement setting forth the amount of such public utility tax on taxabIe telecommunication services to which the City of Delray Beach became entitled under the provisions hereof on account of bills paid by purchasers during the preceding fiscal month, and contemporaneously with the filing of such statements, shall pay the amount of such public utility tax on taxable telecommunications services to the Finance Department of the City of Delray Beach. (6) Records to be Kept. Every seller is hereby required to establish and maintain appropriate accounts and records of the tax herein imposed as prescribed and required by the Federal Communications Commission and the Public Service Commission, and such accounts and records shall be open to inspection by the City of Delray Beach at all reasonable times where maintained by the seller. (7) That portion of the revenues which would have been attributable to any increase from 7.5 percent to 8.5 percent in the utility tax on local telephone service previously provided in Section 25-23(a) shall be earmarked and transferred monthly to the City of Delray Beach 3 ORD. NO. 64-86 Beautification Program, to be utilized for the purposes set forth in Section 25-23(c). Section 2. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 3. That all ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. Section 4. That this ordinance shall become effective one hundred twenty (120) days after its passage on second and final reading, and shall apply to all bills by sellers defined herein which are rendered after said one hundred twentieth day after passage. PASSED AND ADOPTED in regular session on second and final reading on this MAYOR ATTEST: First Reading. September 23, 1986 Second Reading October 14, 1986 4 ORD. NO. 64-86