37-97 ORDINANCE NO. 37-97
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AMENDING CHAPTER 50,
"UTILITIES GENERALLY; PUBLIC SERVICE TAX",
SUBHEADING "PUBLIC SERVICE TAX", OF THE CODE OF
ORDINANCES OF THE CITY OF DELRAY BEACH, BY AMENDING
SECTION 50.15, "LEVY OF TAX", TO INCREASE THE
UTILITY TAX FOR THE PURPOSE OF FUNDING THE CITY'S
BEAUTIFICATION PROGRAM; PROVIDING A GENERAL
REPEALER CLAUSE, A SAVING CLAUSE, AND AN EFFECTIVE
DATE.
WHEREAS, the Beautification Fund was established for the
purpose of financing capital and operating expenses incurred in
projects for the beautification of the public rights-of-way within
the City and the maintenance of such beautification projects; and
WHEREAS, the City's Beautification Program is funded
through the levy of a utility tax; and
WHEREAS, the City Commission has determined that it is
necessary and appropriate to increase the utility tax to insure
adequate funding of the Beautification Fund.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That Title V, "Public Works", Chapter 50,
"Utilities Generally; Public Service Tax", Subheading "Public Service
Tax", Section 50.15, Levy of Tax", of the Code of Ordinances of the
City of Delray Beach, be, and the same is hereby amended to read as
follows:
Section 50.15 LEVY OF TAX.
(A) Electricity and Gas.
(1) (a) The City hereby levies a tax on the purchase
of electricity and metered or bottled gas (natural liquefied
petroleum gas or manufactured). The tax shall be levied only upon
purchases within the City in the amount of ~/~ 8.7% of the payments
received by the seller of the taxable item from the purchaser for the
purchase of metered or bottled gas (natural liquefied petroleum gas
or manufactured), and in the amount of 9/~ 9.7% of the payments
received by the seller of the taxable item from the purchaser for the
purchase of electricity.
(b) For each residential dwelling unit, the
first 90 kilowatt hours of electricity purchased each month for
residential use shall be exempt from the tax levied by this
subsection.
(c) This tax shall not be applied against any
fuel adjustment charge, and such charge shall be separately stated on
each bill. The term "FUEL ADJUSTMENT CHARGE" means all increases in
the cost of utility services to the ultimate consumer resulting from
an increase in the cost of fuel to the utility subsequent to October
1, 1973.
(d) This tax shall in every case be paid by the
purchaser, for the use of the City, to the seller of such electricity
or gas at the time of paying the charges therefor to the seller
thereof, but not less often than monthly.
(2) To the extent such sums are not otherwise
required to meet current or future utility tax certificate bond
covenants, and/or debt service on same, that portion of the revenues
attributable to the increase in the tax from 7.5% to ~/~ 8.7% shall
be transferred monthly to the City of Delray Beach Beautification
Program, to be used for capital and operating expenses incurred in
projects for the beautification of the public rights-of-way within
the City and the maintenance of such beautification projects. 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, such use being subject to the prior lien
enjoyed by the holders of outstanding and future parity obligations
of the City secured by the utility services tax of the city.
(3) Services competitive with those enumerated in
division (A) (1) above or in division (B) shall be taxed on a
comparable base at the same rates. However, because this City
imposes a tax which is less than the maximum rate of 10%
allowable by F.S. Section 166.231(1), the maximum tax on fuel oil
shall bear the same proportion to $.04 per gallon which the tax
rate of ~/~ 8.7% levied under division (A) (1) (a) bears to the
maximum rate of 10% allowable by F.S. Section 166.231(1).
(4) The purchase of natural gas or fuel oil by a
public or private utility, either for resale or for use as fuel in
the generation of electricity, or the purchase of fuel oil or
kerosene for use as an aircraft engine fuel or propellant or for
use ~n internal combustion engines is exempt from taxation
hereunder.
- 2 - Ord. No. 37-97
(5) The City hereby exempts from taxation hereunder
the purchase of the taxable items by the United States Government,
this state, or any other public body as defined in F.S. Section 1.01
and shall exempt purchases by any recognized church in this state for
use exclusively for church purposes.
(6) The tax authorized hereunder shall be collected
by the seller of the taxable item from the purchaser at the time of
the payment for such service. The seller shall remit the taxes
collected to the City in the manner prescribed by this
subchapter.
(7) The City shall notify in writing any known seller
of items taxable hereunder of any change in the boundaries of the
city or in the rate of taxation. All qualifying businesses, as
defined in F.S. Section 212.08(15) located within the City's
enterprise zones shall be exempt from the payment of 50% of the
City tax on the purchase of electricity, as permitted by F.S.
Section 166.231(8).
(B) Telecommunications Services.
(1) Definitions. For purposes of this division (B),
the following definitions shall apply:
(a) "PURCHASE." Every act or transaction
whereby possession or utilization of, or control over taxable
telecommunications services become vested in the purchaser within the
City for which payment is made pursuant to a duty and obligation
therefor. However, such term shall not pertain to, nor include any
such act or transaction when undertaken or performed by an agency or
instrumentality of the United States Government, 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.
(b) "PURCHASER." Every person legally liable
for the payment of taxable telecommunication services rendered to him
by a seller, unless such person is an agency or instrumentality of
the United States Government, the State of Florida, the county, a
municipality, or 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 telecommunication service for
hire or otherwise for resale.
- 3 - Ord. No. 37-97
(c) "PURCHASE WITHIN THE CITY." A purchase is
within the City if the communication originates or terminates within
the City and is billed to a purchaser, telephone or telephone number,
or telecommunications number or device within the City.
(d) "SE~." Every person rendering taxable
telecommunications services to any purchaser thereof.
(e) ,,TAXABLE TELECOMMUNICATION SERVICES."
Purchases within the City of telecommunication services which
originate and terminate in this state. However, if the location of
origination and termination of telecommunication service cannot be
determined, the taxable telecommunication service shall be the total
amount billed to a telephone or telephone number, telecommunication
number or device, or a customer's billing address located within the
City. Such taxable telecommunication services shall not include
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
switch service or dedicated facility by which a telephone company
provides a communication path, access charges, and any customer
access line charges paid to a local telephone company. Purchases
within the City of telecommunication services as defined in F.S.
Section 203.012(5) (b) shall be taxed only on the monthly recurring
customer service charges, excluding variable usage charges.
(F.S. Section 166.231(9) (a) (2))
(2) Levy of Tax. There is hereby levied and imposed
by the City, upon every purchase in the City of taxable
communications and services and competitive services, a public
service tax which shall be determined as follows:
(a) The tax shall be levied only upon purchases
within the City in the amount of seven percent (7%) of the payments
received by the seller of the taxable telecommunications 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.
(b) When the seller, in accordance with its
rules and regulations, 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 governmental charges and taxes shown on such purchases for the
total amount.
- 4 - Ord. No. 37-97
(c) The seller is required and it shall be his
duty to render to the purchaser bills covering all such purchases
made. 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 whenever the bill
becomes due and payable under the rules and regulations of the
seller, provided and to the extent that such bills are
subsequently paid.
(d) The purchaser is required and it shall be
his duty to pay such public utility tax to the seller as agent for
the City at the time of the payment of each such bill. The seller is
hereby authorized and required and it shall be his duty to collect
such public utility tax from the purchaser at the time of the payment
of each bill and to remit the same to the Finance Department of the
City in accordance with the provisions hereinafter stated.
(3) Exemptions. Purchases of the taxable
telecommunications services by the United States Government, the
State of Florida, the county, a municipality, any recognized
church in this state if used exclusively for church purposes, and
purchases of local telephone service 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 this division (B).
(4) Seller Compensation. For the purpose of
compensating the seller 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 in the form of a deduction from the amount collected for
remittance. The deduction is allowed as compensation for the keeping
of records, collection of the tax, and remitting the tax.
(5) Remittance of Tax to the City by Seller. Every
seller is hereby required to execute and file not later than the
twentieth day of each calendar month of the year at the office of
the Finance Department of the City a statement setting forth the
amount of the public utility tax on taxable telecommunication
services to which the City became entitled under the provisions
hereof an 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.
- 5 - Ord. No. 37-97
(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. The
City may audit the records of any provider of telecommunications
service taxable by the City; each such provider shall provide to the
City, upon sixty (60) days' written notice, access to all applicable
records for such telecommunications service. In an audit, the
telecommunications service provider shall be liable only for its
taxable accounts collected corresponding to the information provided
to it by the municipality. However, notwithstanding the provisions
of F.S. Section 119.14, any information received by the City in
connection with such an audit shall be confidential and not subject
to the provisions of F.S. Section 119.07(1). This exemption is
subject to the Open Government Sunset Review Act in accordance with
F.S. Section 119.14
(7) Beautification Program. That portion of the
revenues which would have been attributable to any increase from 7.5%
to ~/~ 8.7% in the utility tax on local telephone service previously
provided in division (A) of this section shall be earmarked and
transferred monthly to the City Beautification Program, to be
utilized for the purposes set forth in division (A) (2) of this
section.
(8) The City shall provide to a telecommunications
service provider who is responsible for collecting the tax, upon its
request, a printed alphabetical listing of all street names,
including block numbers and street numbers for streets which cross or
form city boundaries within the City for use by the provider of the
telecommunications service in calculating the proper amount of tax
payable to the City. The City shall be responsible for updating this
listing as changes occur and providing this information to the
telecommunications service provider. The provider, in turn, shall be
responsible for charging the tax only to service and billing
addresses contained in this listing. The City shall be entitled to
collect a fee not to exceed the actual cost of providing the
information to the telecommunications service provider requesting it.
Section 2. That all ordinances or parts of ordinances
in conflict herewith be, and the same are hereby repealed.
- 6 - Ord. No. 37-97
Section 3. 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 4. That this ordinance shall become effective
on ~ril 1, 1998.
PASSED AND ~OPTED in regular session on second and final
reading on this the 23rd day of Se.~te~er. , 1997.
ATTEST:
First Reading Septe~er 9, 1997
Second Reading Septe~er 23, 1997
- 7 - Ord. No. 37-97
.Florida Department of Revenue TIP
Tax Information Publication
1997
NEW REPORTS FOR MUNICIPAL PUBLIC SERVICE TAXES (MPST)
First Report Due September 1, 1997
Municipalities and charter counties must begin letting.the Florida. Department of Revenue
knoTM about the levy and change or repeal of municipal public service taxes (for information
regarding MPST, see sections 166.231 and 166.232, Florida Statutes). The reporting
requirement that became law in 1997 i'-'"~s desi~ensure that the correct municipal public
service tax information be available to interested parties.
The reporting requirement does not apply to any taxes levied on services, other than
telecommunication service, provided by the municipality, or a separate utility authority,
board, or commission of the municipality or charter county. As to telecommunication
service, each municipality and charter county must report all information regardless of who
furnishes the telecommunication service.
The first report, due September 1, 1997, is to supply current data. Subsequent reports are to
be provided to the Department at least 120 days prior to the effective date of a change to the
tax rate. NOTE: tax rate changes may take effect only on January 1, April 1, July 1, or
October 1. Changes to information about the local government contact person should be
provided as changes occur.
Each municipality and charter county must complete Form DR-700001 (Municipal Public
Service Tax Database Report) and submit it to the Department. A copy of the form is
enclosed. Information to be provided on this form includes:
1) the service taxed (e.g., telecommunication, electricity, natural gas,
liquefied petroleum gas, manufactured gas, water, and fuel oil);
2) tax rate;
3) the effective date of the tax rate change or repeal; and,
4) the name, mailing address, and telephone number of a contact person
designated to respond to inquiries concerning each tax.
MPST information may be accessed through the Department's intern et website at
"http://fcn. state.fl, us/dor/revenue, html" or requested by writing the Florida Department of
Revenue, Inter-Governmental Relations, 5050 West Tennessee Street, Tallahassee, FL
32399-0100. A fee nmy be required for information supplied in response to a written
request.
FOR MORE INFORMATION
We provide this information to help you understand the requirements of Florida laws and
administrative rules.
The Department of Revenue will have the information that is provided by the municipalities and
charter counties available through the Department's internet website at"
http://fcn.state.fl.us/dor/revenue.html'.
For more information regarding reporting requirements, call Inter-Governmental Relations,
Monday-Friday, 8 a.m. to 5 p.m., ET, at 850-921-4418 or write to the Florida Department of
Revenue, Inter-C, overnmentai Relations, 5050 West Tennessee Street, TaHahassee, FL 32399-
0100.
Hearing or speech impaired persons should call our TDD at 1-800-367-8331 or 850-922-1115.
STATUTE CITATION:
s. 166.233, F.S.
/__ '~ FLORIDA GOVERNMENT FINANCE OFFICERS ASSOCIATION, INC.
- '~. Since 1937
Post Office Box 10270 · 201 West Park Avenue · Tailahassee, FL 32302-2270
Telephone (904)488-4559 · FAX (904)488-0132
1997.98
OFFICERS
President
WILLIAM r. t'NDEUWOOD. ,I. COrO August 13, 1997
Director of Admin. Services and Finance
City of Stuart
121 $.W. Flagler Avenue
Stuart, FL 34994-2172
(56,) 288.53~0 Dear FGFOA Member:
~esidem-Elect
MARGARET 1... SIMMONS, CPA
Finance Directo~
City of Clearwater
P.O. Box 4748 Recently there have been significant changes to the administration of the municipal
Clearwater. FL 34618-4748
(81~, 562.4~8 utility tax There _are several .very important e!ements regarding the new legislation
S~crc~,yrrreas .... that require your immediate attention. Please find attached a summary of this
JIMMOYE. CGFO legislation, which gives details on how it affects municipalities and/or charter counties
Chief Deputy Comptroller
Orange County Comptroller whoimpose this tax. The first of the upcoming deadlines is October 1, 1997, so please
P.O. Box 38
Ortan~o. FL 32802 be sure to give this issue your prompt attention.
{'407) 836-5695
Immcdiate Past President
U~RVL.. ~)^v~s If ~e FGFOA can be of any assistance to you in this matter, please feel free to contact
Internal Audit Director
city o~O,~o the administrative offices at (850) 4884559
400 Soufl~ Orange Avenue
Orlando. FL 32801
(407) 246-2678
muEcrou, s Sincerely,
STEVEN J. CARR, CGFO
Alachua Count),- CCC
P.O. Box 939
Gainesville, FL 32602
DEUORA. D. ~IUAU~ William F. Underwood, II
Director of BOCC Accounting
H.,s~rough Coun,y CCC President, Florida Government Finance Officers Association
P.O. Box I110
Tanma. FL 33601-11 IO
(813) 276-8100 x 7678
GIBSON E. MITCHELL, CGFO
Finance Director
City of Sarasota
1565 1' Street
Sarasota, FL 34236
{'941 ) 954-4185
MERVYN C, TIMBERLAKE, Jr.
Fioancial Services Director
City of Boca Raton
201 W. Palmetto Park Rd.
Boca Raton, FL 33432
(561) 393-7729
JULIE A. WEATHERHOLTZ, CPA, CGFO
Finance Director
City of Winter Park
4OI South Park Avenue
Winter Park, FL 32789
(407) 599-338 I
ELBERT E. WRAIN$
Dffector of Finance/Management Services
City of Oak{and Park
Oakland Park, FL 33334
(954) 561-6260
AU0 I 9 1997
MICHAEL MADDEN '
Director of Administrative Seswices
URGENT INFORMATION REGARDING MUNICIPAL UTILITY TAX
On Mgy 29, t997, legislation affecting the Public Service Tax (commonly referred to as the Utility Tax) became
law as Chapter 97-233, Laws of Florida. This legislation directly affects many areas of the utility tax contained in
section 166.231, F.S., with significant changes to the tax on telecommunication services. While there are
numerous changes and requirements in this legislation, the following identifies those areas which require
immediate attention by any municipality or charter county who imposes this tax (taxing jurisdiction) on any
taxable service whether its on electricity, gas, water, and/or telephone/telecommunications.
The most immediate requirement calls for each taxing jurisdiction to notify the Florida Department of Revenue
(DOR) that they have levied this tax, specify which services are taxed. While the legislation specifies that such
notification must be made by September 1, the DOR has delayed this requirement until October 1, 1997. This
notification is requested to be provided on a DOR form, which is included with this correspondence.
The next important date is January 1, 1998. By this date, each taxing jurisdiction must develop their address
listings in a very specific format in order for the various utility and telecommunication companies to be held
accountable for their collection of utility taxes. The effective date of the new address listings will be July 1, 1998.
All address listings currently on file with each company will remain in effect until July 1, 1998. The new
legislation requireS the following address components: (a) a list containing each street name, known street name
aliases, street address number ranges, applicable directionals, and zip codes associated with each street name, for
all street addresses located within the taxing jurisdiction. If a range of addresses within the taxing jurisdiction
consist only of odd or even street numbers, the list must specify whether the street numbers are odd or even. The
list must be in alphabetical order, except that numbered streets must be in numerical sequence; (b) Another list
must contain each postal zip code and all the city names associated with all zip codes assigned to areas located
entirely within the taxing jurisdiction, including zip codes assigned to post office boxes (drawers, caller services,
etc.); and (c) a sequential list containing all post office box (drawer, caller service, etc.) number ranges and the
city names and zip codes associated therewith, for all post office boxes (drawers, caller services, etc.) located
within the taxing jurisdiction, except that post office boxes (drawers, caller services, etc.) with postal zip codes
entirely within the taxing jurisdiction which are included on the list identified in (b) need not be duplicated. As
address listings within a taxing jurisdiction require updates/corrections over time, the jurisdiction must notify all
applicable companies at least 60 days prior to the beginning of a calendar quarter (January 1, April 1, etc.) for the
company to be required to collect the tax. If such notice occurs with less than 60 days prior to the beginning of a
calendar quarter, the company will not be responsible for collecting the tax until the beginning of the next calendar
quarter. Important: The seller is only responsible for collecting the tax from those addresses contained in
the lists which include all of the required elements specified in the law. You must do it correctly or the seller
is not liable!!!
The effective date of any ordinance either imposing/repealing the utility tax, changing the rate of the tax, or
converting from the 10 percent option on local telephone service to the 7 percent option on telecommunication
services (or vice versa) can only occur on January 1, April 1, July 1, and October 1.
This legislation contains a variety of other changes. Some of these include: filing due date is now tied to the
State's sales tax and gross receipts tax (on or before the 20th day of the month); tax remittance forms may be
determined by the seller, but must contain certain basic information; statute of limitations for refunds and credits
are reduced tothree years; interest and penalties are specifically authorized and capped, but authorizing language
must be included in your ordinance; religious exemptions have been modified; substantial changes to audits have
been added; and contingency-based audits are no longer allowed:' Based on the number and the types of changes to
this tax, most taxing jurisdictions will also find it necessary to amend their utility tax ordinance in order for it to
conform to the new law.
For additional information on this subject, please contact Ken Small with the Florida League.of.~i~iesrat
413-0329.
AU6:1 9 1997
MEMORANDUM
TO: Joe Safford, Finance Director
FROM: Alison MacGregor Harry, City Clerk~I[k~
SUBJECT: Ordinance No. 37-97 (Utility Tax Increase)
DATE: September 29, 1997
Attached for your use and information is an executed copy of
Ordinance No. 37-97 increasing the utility tax for the purpose of
adequately funding the beautification program. Please note the
effective date of the ordinance is April 1, 1998.
Ordinance No. 37-97 was passed and adopted on second and final
reading by the City Commission in regular session on September
23, 1997.
AMH/m
Attachment
cc: Milena Walinski, Assistant Finance Director
Becky O'Connor, Treasurer
Barbara Schooler, UTB Manager
MEMORANDUM
TO: MAYOR AND CITY COMMISSIONERS
FROM: ~CITY Mg~AGER
SUBJECT: AGENDA ITEM #~ - REGULAR MEETING OF SEPTEMBER 23, 1997
ORDINANCE NO. 37-97 (UTILITY TAX)
DATE: SEPTEMBER 17, 1997
This is second reading and a public hearing for Ordinance No.
37-97 which amends Chapter 50, "Utilities Generally; Public
Service Tax", of the City Code by increasing the utility tax.
This is pursuant to direction from the Commission at the August
5th regular meeting. A copy of the minutes is attached. The
increase (two-tenths of one percent) is necessary to insure
adequate funding of the Beautification Fund.
We recently learned that the 1997 Legislature amended the enabling
legislation for the Public Service Tax to only allow rate changes
on October 1, January 1, April 1 and July 1; and then require 120
days notice to the State Department of Revenue prior to
implementing any rate change. Therefore, this rate increase will
not become effective until April 1, 1998.
Recommend approval of Ordinance No. 37-97 on second and final
reading.
ref:agmemoll
MEMORANDUM
TO: MAYOR AND CITY COMMISSIONERS
FROM: CITY MANAGER~
SUBJECT: AGENDA ITEM #/~.- REGULAR MEETING OF SEPTEMBER 9, 1997
ORDINANCE NO. 37-97 (UTILITY TAX)
DATE: SEPTEMBER 5, 1997
This is first reading for Ordinance No. 37-97 which amends Chapter
50, "Utilities Generally; Public Service Tax", of the City Code by
increasing the utility tax. This is pursuant to direction from
the Commission at the August 5th regular meeting. A copy of the
minutes is attached. The increase (two-tenths of one percent) is
necessary to insure adequate funding of the Beautification Fund.
We recently learned that the 1997 Legislature amended the enabling
legislation for the Public Service Tax to only allow rate changes
on October 1, January 1, April 1 and July 1; and then require 120
days notice to the State Department of Revenue prior to
implementing any rate change. Therefore, this rate increase will
not become effective until April 1, 1998.
Recommend approval of Ordinance No. 37-97 on first reading. If
passed, a public hearing will be scheduled for September 23, 1997.
ref:agmemoll
The City Attorney stated that as of July 31, 1997, the
total amount of the liens and accrued interest is $1,646.50. The
offer to satisfy all the existing liens on the property at this
time is $1,000.00.
Mayor Alperin stated that the Commission has been
consistent in the past about not accepting less than what is owed
unless the property was being turned over for a municipal purpose
such as an affordable housing project.
Mr. Egan moved to deny the offer to satisfy liens
against property at 123 N.W. 10th Avenue, seconded by Mr. Ran-
dolph. Upon roll call the Commission voted as follows: Mr. Egan
- Yes; Mr. Ellingsworth - Yes; Mr. Randolph - Yes; Mayor Alperin
- Yes. Said motion passed with a 4 to 0 vote.
Mr. Scb_midt stepped back up to the dais.
9.E. REQUEST FOR FUNDING/CENTER FOR EMPLOYMENT TRAINING:
Consider a request from The Center for Employment Training for
funding of Delray Beach residents seeking to enroll in the CET
training program.
The City Manager stated that this request was received
because of some delays in the Center for Employment Training
getting other funding. From what we have been able to learn, CET
seems to be a very effective organization but this particular
type of program is something the City has not been involved in in
the past plus this is not the best time in the budget year to be
requesting funding. He noted that the Center for Employment
Training does have some other funding that looks as if it could
be made available, so at this time the staff recommendation is
that the funding request be denied. The Center has submitted a
request for a grant from the City out of the FY 1998 budget which
will be considered through the normal budget process.
Mr. Ellingsworth moved to approve the staff recommenda-
tion that the funding request be denied, seconded by Mr. Egan.
Upon roll call the Commission voted as follows: Mr. Ellingsworth
- Yes; Mr. Randolph - Yes; Mayor Alperin - Yes; Mr. Schmidt -
Yes; Mr. Egan Yes. Said motion passed with a 5 to 0 vote.
9.F. FY 1998 BEAUTIFICATION FUND BUDGET: Consider alterna-
tive proposals for balancing the Beautification Fund.
The City Manager stated that it has been mentioned to
the Commission over the past few years that the Beautification
Fund would eventually run out of money. There are several areas
(Atlantic Avenue east of the Intracoastal Waterway, the 1-95
sound barrier wall, Lake Ida Road) where at some point in the
course of the next year the one year contractual maintenance will
end and the City will have to assume maintenance responsibility.
Based on estimates of these additional costs, the Beautification
Fund as presented in the proposed PY 98 budget shows a deficit of
8 8/05/97
about $100,000. To deal with this problem, the City Manager had
presented three options. The first option is to shift enough
areas to the General Fund to balance the Beautification Fund and
cover the cost by cutting back other General Fund programs. This
means that maintenance would essentially be paid for out of
property taxes and we would have to find another $100,000 to cut
out of the General Fund. A second option is to shift enough
areas to the General Fund to balance the Beautification Fund and
direct Parks and Recreation to do the best they can with the
resources they have. The City Manager felt that this option
would result in rapid deterioration in the appearance of many
public areas of the city. The Parks Maintenance staff already
has difficulty keeping up with their workload. The third option
and the one recommended by the City Manager is that the Commis-
sion consider increasing the utility tax by two-tenths of one
percent (from 9.5% to 9.7%) and adding that to the Beautification
Trust Fund so that the Trust Fund would be getting 1.2% instead
of just 1%. The bond issue for the initial beautification is
about ten years old so there are about ten more years before that
would be paid off. At the time it is paid off, it is probable
the utility tax could be reduced some. It is growing on an
annual basis as the City grows and hopefully that growth would
keep pace with cost increases over the years. Another option is
to let the Fund run a deficit this year but that just postpones
the problem. In terms of how this increase would affect the
public, for someone who has an average electric bill of $300 per
month, it would cost them an extra 60 cents a month.
Mr. Randolph stated that he feels the City needs to
look closely at future beautification projects to ensure that
sufficient funding will be available for maintenance. The Parks
and Recreation crews are trying very hard to keep up with all of
the maintenance, but there are some areas that need closer
attention if they are going to be maintained properly. Mr.
Randolph stated he would support option #3, the utility tax
increase, if it will get us to where we can keep the City looking
good.
It was the consensus of the Commission to support
option #3, the utility tax increase. The City Manager stated
that the appropriate ordinance to amend the utility tax would be
brought back as part of the budget package.
9.G. FY 1998 GENERAL FUND BUDGET/STATUS REPORT.
The City Manager gave the following status report. The
budget is balanced. It has set aside in it $150,000 for the
Commission to deal with the requests from the Library, Old School
Square and Pineapple Grove. One possibility is for both Old
School Square and Pineapple Grove to receive the full amount
requested, $60,000 and $30,000 respectively, with the remaining
$60,000 going to the Library which would increase their budget by
ten percent. He noted that he had provided to the Commission an
analysis of the Library budget and what they propose to do with
-9- 8/05/97
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Section 50.03(H)
(H) In the event that any developed unserved residential
customer shall fail to make payment under the deferred payment
plan when such payment is due, the city, upon eighteen (18) days'
prior written notice, shall have the right to terminate water
service in accordance with Sec. 52.51.
(Ord. No. 152-88, passed 11/22/88)
PUBLIC SERVICE TAX
Section 50.15 LEVY OF TAX.
(A) Electricity and Gas.
(1) (a) The City hereby levies a tax on the purchase
of electricity and metered or bottled gas (natural liquefied
petroleum gas or manufactured). The tax shall be..~vied only
upon purchases within the City in the amount off'J% of the
~^ payments, v received by the seller of the taxable item from the
purchaser for the purchase of metered or bottled gas (natural
liquefied petroleum gas or manufactured), and in the amount of
9.5% of the payments received by the seller of the taxable item
from the purchaser for the purchase of electricity.
(Am. Ord. No. 44-92, passed 9/22/92)
(b) For each residential dwelling unit, the first
90 kilowatt hours of electricity purchased each month for
residential use shall be exempt from the tax levied by this
subsection.
(Am. Ord. No. 44~92, passed 9/22/92)
(c) This tax shall not be applied against any
fuel adjustment charge, and such charge shall be separately
stated on each bill. The term "FUEL ADJUSTMENT CHARGE" means all
increases in the cost of utility services to the ultimate
consumer resulting from an increase in the cost of fuel to the
utility subsequent to October 1, 1973.
(d) This tax shall in every case be paid by the
purchaser, for the use of the City, to the seller of such
electricity or gas at the time of paying the charges therefor to
the seller thereof, but not less often than monthly.
Section 50.15(A)(2)
(2) To the extent such sums are not otherwise required
to meet current or future utility tax certificate bond covenants,
and/or debt service on same, that portion of the~Trevenues
attributable to the increase in the tax from 7.5% to-8~5~ shall
be transferred monthly to the City of Delray Beach Beautification
Program, to be used for capital and operating expenses incurred
in projects for the beautification of the public rights-of-way
within the City and the maintenance of such beautification
projects. 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, such use
being subject to the prior lien enjoyed by the holders of
outstanding and future parity obligations of the City secured by
the utility services tax of the city.
(3) Services competitive with those enumerated in
division (A)(1) above or in division (B) shall be taxed on a
comparable base at the same rates. However, because this City
imposes a tax which is less than the maximum rate of 10%
allowable by F.S. Section 166.231(1), the maximum tax on fuel oil
shall ~e~e same proportion to $.04 per gallon which the tax
rate o~,Sr~g%~evied under division (A)(1)(a)bears to the maximum
rate of~tO~ allowable by F.S. Section 166.231(1).
(4) The purchase of natural gas or fuel oil by a
public or private utility, either for resale or for use as fuel
in the generation of electricity, or the purchase of fuel oil or
kerosene for use as an aircraft engine fuel or propellant or for
use in internal combustion engines is exempt from taxation
hereunder.
(5) The City hereby exempts from taxation hereunder
the purchase of the taxable items by the United States
Government, this state, or any other public body as defined in
F.S. Section 1.01 and shall exempt purchases by any recognized
church in this state for use exclusively for'church purposes.
('80 Code, Sections 25-30, 25-31)
(6) The tax authorized hereunder shall be collected by
the seller of the taxable item from the purchaser at the time of
the payment for such service. The seller shall remit the taxes
collected to the City in the manner prescribed by this
subchapter.
(7) The City shall notify in writing any known seller
of items taxable hereunder of any change in the boundaries of the
city or in the rate of taxation. All qualifying businesses, as
defined in F.S. Section 212.08(15) located within the City's
enterprise zones shall be exempt from the payment of 50% of the
City tax on the purchase of electricity, as permitted by F.S.
Section 166.231(8).
(Ord. No. 49-86, passed 8/12/86)
V.6
Section 50.1§(B)
(B) Telecommunications Services.
(1) Definitions. For purposes of this division (B),
the following definitions shall apply:
(a) "PURCHASE." Every act or transaction whereby
possession or utilization of, or control over taxable
telecommunications services become vested in the purchaser within
the City for which payment is made pursuant to a duty and
obligation therefor. However, such term shall not pertain to,
nor include any such act or transaction when undertaken or
performed by an agency or instrumentality of the United States
Government, 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.
(b) "PURCHASER." Every person legally liable for
the payment of taxable telecommunication services rendered to him
by a seller, unless such person is an agency or instrumentality
of the United States Government, the State of Florida, the
county, a municipality, or 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
telecommunication service for hire or otherwise for resale.
(c) "PURCHASE WITHIN THE CITY." A purchase is
within the City if the communication originates or terminates
within the City and is billed to a purchaser, telephone or
telephone number, or telecommunications number or device within
the City.
(d) "SELLER." Every person rendering taxable
telecommunications services to any purchaser thereof.
V.7
Section §0.15(B)(1)(e)
(e) "TAXABL~ TELECOMMUNICATION SERVICES."
Purchases within the City of telecommunication services which
originate and terminate in this state. However, if the location
of origination and termination of telecommunication service
cannot be determined, the taxable telecommunication service shall
be the total amount billed to a telephone or telephone number,
telecommunication number or device, or a customer's billing
address located within the City. Such taxable telecommunication
services shall not include 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 switch service or dedicated
facility by which a telephone company provides a communication
path, access charges, and any customer access line charges paid
to a local telephone company. Purchases within the City of
telecommunication services as defined in F.S. Section
203.012(5)(b) shall be taxed only on the monthly recurring
customer service charges, excluding variable usage charges.
(F.S. Section 166.231(9)(a)(2))
(2) Levy of Tax. There is hereby levied and imposed
by the City, upon every purchase in the City of taxable
communications and services and competitive services, a public
service tax which shall be determined as follows:
(a) The tax shall be levied only upon purchases
within the City in the amount of seven percent (7%) of the
payments received by the seller of the taxable telecommunications
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.
(b) When the seller, in accordance with its rules
and regulations, 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 governmental charges and taxes shown on such purchases for the
total amount.
(c) The seller is required and it shall be his
duty to render to the purchaser bills covering all such purchases
made. 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 whenever the bill
becomes due and payable under the rules and regulations of the
seller, provided and to the extent that such bills are
subsequently paid.
V.8
Section 50.15(B)(2)(d)
(d) The purchaser is required and it shall be his
duty to pay such public utility tax to the seller as agent for
the City at the time of the payment of each such bill. The
seller is hereby authorized and required and it shall be his duty
to collect such public utility tax from the purchaser at the time
of the payment of each bill and to remit the same to the Finance
Department of the City in accordance with the provisions
hereinafter stated.
(3) Exemptions. Purchases of the taxable
telecommunications services by the United States Government, the
State of Florida, the county, a municipality, any recognized
church in this state if used exclusively for church purposes, and
purchases of local telephone service 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 this division (B).
('80 Code, Sections 25-30, 25-31)
(4) Seller Compensation. For the purpose of
compensating the seller 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 in the form of a deduction from the amount
collected for remittance. The deduction is allowed as
compensation for the keeping of records, collection of the tax,
and remitting the tax.
(5) Remittance of Tax to the City by Seller. Every
seller is hereby required to execute and file not later than the
twentieth day of each calendar month of the year at the office of
the Finance Department of the City a statement setting forth the
amount of the public utility tax on taxable telecommunication
services to which the City became entitled under the provisions
hereof an 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.
V.9
Section 50.15(B)(6)
(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. The City may audit the records of any provider of
telecommunications service taxable by the City; each such
provider shall provide to the City, upon sixty (60) days' written
notice, access to all applicable records for such
telecommunications service. In an audit, the telecommunications
service provider shall be liable only for its taxable accounts
collected corresponding to the information provided to it by the
municipality. However, notwithstanding the provisions of F.S.
Section 119.14, any information received by the City in
connection with such an audit shall be confidential and not
subject to the provisions of F.S. Section 119.07(1). This
exemption is subject to the Open Government Sunset Review Act in
accordance with F.S. Section 119.14
(7) Beautification Program. That portion of the
revenues_which would have been attributable to any increase from
7.5% toN'~-~_5% in the utility tax on local telephone service
previously provided in division (A) of this section shall be
earmarked and transferred monthly to the City Beautification
Program, to be utilized for the purposes set forth in division
(A)(2) of this section.
(8) The City shall provide to a telecommunications
service provider who is responsible for collecting the tax, upon
its request, a printed alphabetical listing of all street names,
including block numbers and street numbers for streets which
cross or form city boundaries within the City for use by the
provider of the telecommunications service in calculating the
proper amount of tax payable to the City. The City shall be
responsible for updating this listing as changes occur and
providing this information to the telecommunications service
provider. The provider, in turn, shall be responsible for
charging the tax only to service and billing addresses contained
in this listing. The City shall be entitled to collect a fee not
to exceed the actual cost of providing the information to the
telecommunications service provider requesting it.
(F.S. Section 166.231) ('80 Code, Sec. 25-23) (Ord. No. 57-82,
passed 9/14/82; Am. Ord. No. 64-86, passed 10/14/86; Am. Ord. No.
161-86, passed 12/30/86; Am. Ord. No. 1-87, passed 1/20/87)
V. lO
Section 50.16
Section 50.16 WHEN SALE IN CIT~ DEEMED MADE.
For the purpose of this subchapter, a sale shall be
determined to be made in the City in every instance where
electricity or bottled gas (natural or manufactured) is delivered
to a purchaser residing within the City, regardless of whether
the residence or business or headquarters of the seller is
located within the City or elsewhere. With respect to
telecommunication service, a sale within the City is defined by
Sec. 50.15(B)(1).
('80 Code, Sec. 25-24)
Section 50.17 SELLER TO COLLECT.
(A) It shall be the duty of every seller of electricity,
bottled gas (natural or manufactured), or telecommunication
service to collect from the purchaser, for the use of the City,
the tax hereby levied, at the time of collecting the selling
price charged for each transaction, and to report and pay over,
on or before the fifteenth day of each calendar month, to the
Finance Department of the City, all such taxes levied and
collected during the preceding calendar month. It shall be
unlawful for any seller to collect the price of any sale of
electricity, bottled gas (natural or manufactured), or
telecommunication service without at the same time collecting the
tax hereby levied in respect to such sale or sales.
(B) Any seller failing to collect such tax at the time of
collecting the price of any sale shall be liable to the City for
the amount of such tax in like manner as if the same had been
actually paid to the seller, and the Mayor shall cause to be
brought all suits and actions and shall take all proceedings in
the name of the City as may be necessary for the recovery of such
tax; however, the seller shall not be liable for the payment of
such tax upon uncollected bills.
(C) If any purchaser shall fail, neglect, or refuse to pay
to the seller, the seller's charge, and the tax hereby imposed
and as hereby required, on account of the sale for which such
charge is made, or either, the seller shall have and is hereby
vested with the right, power, and authority immediately to
discontinue further service to such purchaser until the tax and
the seller's bill have been paid in full.
('80 Code, Sec. 25-26)
V.l!
Section 50.18
Section 50.18 RECORDS REOUIRED: RIGHT TO INSPECT.
(A) Each and every seller of electricity and bottled gas
(natural or manufactured) shall keep complete records showing all
sales in the City of such commodities or service, which records
shall show the price charged upon each sale, the date thereof,
and the date of payment therefor. The records shall be kept open
for inspection by duly-authorized agents of the City during
business hours on all business days, and such agents shall have
the right, power, and authority to make transcripts thereof
during such times as they may desire.
('80 Code, Sec. 25-27)
(B) As to telecommunications service, see Sec. 50.15(B)(6).
Section 50.~9 MONTHLY RETURNS P~EOUIRED; COMPUTATION.
(A) In addition to making records available as set forth in
Sec. 50.18, every seller is hereby required to execute and file
not later than the twentieth day of each month, at the Finance
Department of the City, a sworn statement on a form prescribed by
the City setting forth the amount of tax to which the City became
entitled under the provisions of this subchapter on account of
bills paid by purchasers during the preceding fiscal month, and
contemporaneously with the filing of the statement shall pay the
amount of such tax to which the City is entitled to the Finance
Department of the City to be deposited to the credit of such
funds of the City and to be utilized for such purposes as the
Commission may prescribe by ordinance or resolution.
('80 Code, Sec. 25-28)
(B) In all cases where the seller of electricity, bottled
gas (natural or manufactured), or telecommunications service
collects the price thereof at monthly periods, the tax hereby
levied may be computed on the aggregate amount of sales during
such period, provided that the amount of tax to be collected
shall be the nearest whole cent to the amount computed.
('80 Code, Sec. 25-29)
V.12