Ord 07-98ORDINANCE NO. 7-98
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
DELRAY BEACH, FLORIDA, AMENDING CHAPTER 50,
"UTILITIES GENERALLY; PUBLIC SERVICE TAX", OF THE
CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, BY
AMENDING SECTION 50.15, "LEVY OF TAX", AND SECTION
50.18, "RECORDS REQUIRED; RIGHT TO INSPECT", TO
COMPLY WITH CHANGES MADE IN THE STATE LAW REGARDING
TAXATION OF TELECOMMUNICATION SERVICES; PROVIDING A
SAVING CLAUSE, A GENERAL REPEALER CLAUSE, AND AN
EFFECTIVE DATE.
WHEREAS, the City of Delray Beach is authorized by state
and local law to levy a tax on telecommunication services; and
WHEREAS, the State has amended the statute governing the
levy of taxes on telecommunication services; and
WHEREAS, the City Commission of the City of Delray Beach
desires to conform its ordinances to Chapter 97-233 of the Laws of
Florida.
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", Section 50.15, "Levy of
Tax", of the Code of Ordinances of the City of Delray Beach is hereby
amended to read as follows:
Section 50.15 T.RVY 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 9.7% 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 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, and all counties, school districts, and municipalities of the
state, and by public bodies exempted by law or court order, 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.
- 2 - Ord. No. 7-98
(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 and by F.S.
Section 166.231(7).
(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, by public bodies exempted by law
or court order, 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, a public body exempted by law or court order, 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.
- 3 - Ord. No. 7-98
(d) "S~T.T.RR." Every person rendering
telecommunications services to any purchaser thereof.
taxable
(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 as Dart
of the billinq proces.s, the taxable telecommunication service shall
be the total amount billed to a telephone or telephone number,
telecommunication number or device, a service address or a customer's
billin9 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.
(2) Levy of Tax. There is hereby levied and imposed by
the City, upon every purchase in the City of taxable communications
~ 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 ~S~ service 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.
- 4 - Ord. No. 7-98
(d) The purchaser is required and it shall be his
duty to pay such public ~~ service 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 ~~ service 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, school districts, by
public bodies exempted by law or court order, 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 ~~ service 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 ~~ service tax on taxable
telecommunications services to the Finance Department of the City.
(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~//~/~/~~/~/~~/~/~
5 - Ord. No. 7-98
However, notwithstanding the provisions
of F.S. Section 119.~07(1), any information received by the City in
connection with such an audit shall be confidential and not subject
to the Open Government Sunset Review Act in accordance with F.S.
Section 119.~07(1).
(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.
Section 2. That Title V, "Public Works", Chapter 50,
"Utilities Generally; Public Service Tax", Section 50.18, "Records
Required; Right to Inspect", of the Code of Ordinances of the City of
Delray Beach is hereby amended to read as follows:
Section 50.18 RECORDS REQUI~RD; PROCEDURES FOR INFORMING SELLERS OF
TAX LEVIES; ADMINISTRATIVE PROVISIONS; RIGHT TO INSPECT.
- 6 - Ord. No. 7-98
Ail records required to be kept by the City and seller(s) and
the riqht to inspect such records shall be qoverned by the provisions
of F.S. Sections 166.233 and 166.234.
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 all ordinances or parts of ordinances in
conflict herewith be, and the same are hereby repealed.
Section 5. That this ordinance shall become effective
immediately upon its passage on second and final reading.
PASSED AND ADOPTED in regular session on second and final
reading on this the 20th day of January _ . , 1998.
ATTEST:
-- ' JCity -Cl~rk '
First Reading January 6~ 1998
Second Reading January 20, 1998
- 7 - Ord. No. 7-98
MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
MAYOR AND CITY COMMISSIONERS
CITY MANAGER I~
AGENDA ITEM # lO~- REGULAR MEETING OF JANUARY 20, 1998
ORDINANCE NO. 7-98 (CHANGE IN PUBLIC SERVICE TAX
ORDINANCE)
JANUARY 15, 1998
This is second reading and a public hearing for Ordinance No. 7-98
which amends Chapter 50, "Utilities Generally; Public Service
Tax", of the City Code to comply with changes made in the state
law regarding taxation of telecommunication services.
On May 30, 1997, House Bill No. 1275 became law. This bill
revised the record keeping requirements and procedures that
municipalities and sellers of utilities must comply with. The
statute primarily addresses changes in time periods for adopting
or levying a public service tax, information required to be
gathered and stored by the municipality and by the seller of
utility services, auditing procedures and administrative
procedures.
At first reading on January 6, 1998, the Commission passed the
ordinance by unanimous vote.
Recommend approval of Ordinance No.
reading.
7-98 on second and final
ref:agmemo21
[ITY OF DELRII¥ BER[H
CITY ATTORNEY'S OFFICE
DELRAY 8EACH
Ali. America City
1993
DATE:
TO:
F ROM:
2i)~1 NW 1>t AVI~NUE · DELRAY BEACH, FLORIDA 33444
FACSI:,!II..E 407:,275-4755 Wrilcr's Direct l,me: (561) 243-7091
M EMORAN DU M
December 15, 1997
City Commission
Brian Shutt, Assistant City Attorney
SUBJECT: Change in Public Service Tax Ordinance
On May 30, 1997 HB No. 1275 became law. This bill revised the record keeping
requirements and procedures that municipalities and sellers of utilities must comply with.
The enactment of this statute requires the City to make changes in Chapter 50 of its Code
of Ordinances. The statute primarily addresses changes in time periods for adopting or
levying a public service tax, information required to be gathered and stored by the
municipality and by the seller of utility services, auditing procedures, and administrative
procedures.
By copy of this memorandum to David Harden, City Manager, our office requests that this
ordinance be placed on the January 6, 1998 City Comlnission agenda. Please call if you
have any questions.
Attachment
CC:
David Harden, City Manager
Alison MacGregor Harry, City Clerk
Joe Safford, Finance Director
pubultx.rbs
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&~ OR~INkNCE OF THE C1~ C~
~I~ION OF THE C~ OF DELRAY
lEACH, FLOR~D~ RESTATING
AND ME~DING ORDINANCE ~,
AND ORDI~NCE 11~ WHICH C~
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NANCE FOR THE WATERFORD
P~CE I ~LINT DEVELOPMEMT
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GENERALLY L~TED ON THE
~UT~ SIDE OF LINTON BOULE.
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INCOR~RAT~NG ANY EXtSTING
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P~CE DELINT DR] INTO THE ~D
ZONING DISTRI~;
~ND~TfONS FOR FURTHER
VELOPMENT; PROVIDING A ~V.
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AN ORDtNANCE OF THE CITY ~
~I~ION OF THE CITY OF DELRAY
BEACH, FLORID~ M~FYING
THE ~UNI~ REDEVELOP.
~NT P~N FOR THE CJ~ OF
~L~Y B~CH; FINDING THAT
THE MODIFICATIONS CONFORM
TO THE CO, UNiTY REDEVELOP.
MENT ACT OF I~, AS MENDED;
FINDING THAT THE ~DIFICA-
TIONS ARE CONSISTENT WITH THE
C~TY OF DELRAY BEACH'S C~
PREHENS~VE P~N, AND ~KfNG
FURTHER F~NDINGS PURSUANT
TO THE AFPLI~BLE REQUIRE.
~ENTS OF FLORIDA STATUTES
SECTION I~ (6) (7); PROVeDFNG
A GENERAL REPEALER C~USE,
A ~VING C~USE AND AN EFFEC-
TIVE DATE.
AN ORDtNANCE OF THE CI~ C~
M~SStON OF THE C1~ ~ DELRAY
BEACH, FLORIDA, MENDING
CHAPTER M, ~FIRE ~FE~ AND
EMERGENCY SERVICES', OF THE
~DE OF ORDJNANCES ~ THE
C~TY OF DELRAY 8E~CH, BY
~ENDING SECTION
~ERGEN~Y ~EDI~AL
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N~ (A),TO REVISE THE FEE
~HEDULE~R EMERGENCY
MEDICALT~HS~RTATION IN
~R~HCE WtTH THE IN;~-
TION INDEX CHARGE FOR ~;
PROVIDING A GENERAL REPEAL.
ER C~USE, A ~VING C~USE
AND AN EFFECTIVE DATE.
AN ~DINANCE ~ T~ CI~ C~
M;SSI~ OF THE CI~ ~ DEL~Y
B~CH, FL~IDA, ~ENDING SEC.
TtON 4J.~, ~IGHT INDUSTRIAL
(LI) DISTRICt, OF THE ~ND DE'
~LOFMEHT REGU~T;ONS OF
THE C;TY OF DELRAY BEACH,
~ENDfNG SUBSECTION
~PECIAL DISTRICT REGU~-
SUBPARAGRAPH
~{H)(3), TO REDUCE THE
MUM FLOR AREA ALL~ATED
PE~ TENANT OR BAY; PROVIDING
A GENERAL REPEALER C~USE,
A ~VfNG C~USE, AND AN EF.
FE~IVE DATE.
AN ~DINANCE OF THE CI~
MINION OF THE CfTY OF ~LRAY
~CH, FLORIDA, ~ENDING SEC-
TI~ ~1~(C), ~IDEWALK C~
~RU~I~ REQUIREMENTS, AND
~ION ~.1~(C), ~RIVEWAY C~
~;UCTION RETIREMENTS~,
THE ~ND DEVELOPMENT REG~
~TIONS OF THE CITY ~ DELRAY
I~CH, TO PR~I~ ~R THE
U~E ~ A~TERNATIVE SURFA;E
~PE$ FOR DRIVEWAYS AND
BIDEWALKS ~EN MPPROVED BY
THE CI~ ENGINEER; PROVIDING
A GENERAL REPEALER C~USE,
'A ~VING C~USE, ~D AN EF*
FE~IVE ~TE.
~ ORD;NANCE OF T~E C;~ C~
MINION OF THE C~TY OF DELRAY
8~CH, PLORID~ ~ENDiNG
~ER ~, ~AR6AGE AND
T~, OF THE CODE OF ORDI-
~N~E$ OF THE CITY ~
~CH, BY ~ENDING SECTION
~, ~ULK TR~, TO PROVIDE
Boca Raton News, Friday, Jsnuary 9, 1998 7~
CONTINUED
BULK TRASH MAY BE COLLECTED
ON EITHER THE FIRST OR SEC-
OND REFUSE COLLECTION DAY;
PROViDiNG A SAVING CLA'dSE, A
GENERAL REPEALER CLAUSE,
AND AN EFFECTIVE DATE.
AN ORDINAHCE OF THE CITY
MISSeON OF THE CITY OF DELRAY
BEACH, FLORIDA, MENDING
CHAPTER ~1, q.ITtL~TtES GENER-
ALLY; PUBLIC SERVICE TAX', OF
THE CODE OF ORDINANCES OF
THE CITY OF DELRAY EEACH, BY
AMENDING SECTION ~.lS, ~LEVY
,,OF : TAX~, AND SECTION
eRECORDS REQUIRED; RIGHT TO
INSPECT~, TO COMPLY WITH
CHANGES MADE IN THE STATE
LAW REGARDING TAXATION OF
TELECOMAqUNICATION SERVtCES;
PROVIDING A SAVING CLAUSE, A
iGENERAL REPEALER CLAUSE,
AND AN EFFECTIVE DATE.
int' ~ c~idere~ ~t This IIMring,
mc~ perw~ wUI rmcl I rec~cl ~) (e-
lure ~Mt I wrbetim reqni
~le tl~lmgny ~ evldeece rain w~ich
CITY OF DELRAY BEACH
c~ c~-~
MC~ R~tm N~wS
o~D '
[lTV JIF DELRfl¥ BEggH
CITY ATTORNEY'S OFFICE
DELRAY BEACH
Ali. America City
1993
DATE:
TO:
FROM:
200 NW 1st AVENUE · DELRAY BEACH, FLORIDA 33444
FACSIMILE 407/278-4755 Wrilcr's Direct Line: (561) 243-7091
MEMORANDUM
December 17, 1997
David Harden, City~r
Brian Shutt, Assistant City Attorney
SUBJECT: Change in Public Service Tax Ordinance
Per our conversation, I have made the requested changes.
ordinance. Please call if I can be of further assistance.
Please see the attached
Attachment
Alison MacGregor Harty
Joe Safford
~) Pnnted on Flecvcled Paoer
ORDINANCE NO. -98
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY
BEACH, FLORIDA, AMENDING CHAPTER 50, "UTILITIES GENERALLY;
PUBLIC SERVICE TAX", OF THE CODE OF ORDINANCES OF THE CITY
OF DELRAY BEACH, BY AMENDING SECTION 50.15, "LEVY OF TAX",
AND SECTION 50.18, "RECORDS REQUIRED; RIGHT TO INSPECT", TO
COMPLY WITH CHANGES MADE IN THE STATE LAW REGARDING
TAXATION OF TELECOMMUNICATION SERVICES; PROVIDING A
SAVING CLAUSE, A GENERAL REPEALER CLAUSE, AND AN
EFFECTIVE DATE.
WHEREAS, the City of Delray Beach is authorized by state and local law to levy a tax on
telecommunications services; and,
WHEREAS, the State has amended the statute governing the levy of taxes on
telecommunication services; and,
WHEREAS, the City Commission of the City of Delray Beach desires to conform its
ordinances to Chapter 97-233 of the Laws of Florida.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS:
Section 1. That Chapter 50, "Utilities Generally; Public Service Tax", Section 50.15,
"Levy of Tax", of the Code of Ordinances of the City of Delray Beach is hereby amended by
amending Section 50.15 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 9.7% 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)(I) 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(l),
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 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, and ali counties, school districts, and
municipalities of the state, and by public bodies exempted by law or court order, 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 and by F.S. Section
166.231 (7).
(B) Telecommunications Services.
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 terms 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, byl public bodies exempted by law or court order, or a recognized
church in the state if used exclt~sively for church purposes; nor shall such term apply to purchases
of local telephone service or Xo,~er telecommunication service for use in the conduct of a
telecommunications service for hire~se for resale.
(b) "PURCHASER." Every person legally liable for the paym-~~of
l,~.axable telecommunication services rendered to him by a seller, unless such person is an a.ge. nc.y. o~
~,,~ instrumentally 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 ora 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
(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 as part of the billing process, the taxable telecommunication service shall be
the total amount billed to a telephone or telephone number, telecommunication number or device,
a service address 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.
(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 rate.
(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 service 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
uOit-y service 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 ufilhy
service 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, school districts, by
public bodies exempted by law or court order, 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 fbr 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 ~
service 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
4
contemporaneously with the filing of such statements, shall pay the amount of such public utility
service tax on taxable telecommunications services to the Finance Department of the City.
(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_.;-eae-h-meh
.... :a~.- ou,., ..... :a~ ,,. ,h~ r:, ........ :.,.,/r.m ,~ .... , .... :, .... ,: ........ to all applicable.
}, ............ j ............. ~, .... z. However, notwithstanding the provisions off F.S. Section
119.-1407(.]), any information received by the City in connection with such an audit shall be
confidential and not subject to the Open Government Sunset Review Act in accordance with
Section ! ! 9.-1407(!).
(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.
Section 2. That Chapter 50, "Utilities Generally; Public Service Tax", Section 50.18,
"Records Required; Right to Inspect", of the Code of Ordinances of the City of Deiray Beach is
hereby amended by amending Section 50.18 as follows:
Section 50.18 RECORDS REQUIRED; PROCEDURES FOR INFORMING SELLERS OF
TAX LEVIES; ADMINISTRATIVE PROVISIONSi RIGHT TO INSPECT.
All records required to be kept by the City,, and seller(s) and the right to inspect such
records shall be governed by the provisions of F.S. Sections 166.233 and 166.234.
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 all ordinances or parts of ordinances in conflict herewith by and the
same are hereby repealed.
Section 5.
final reading.
That this ordinance shall become effective upon its passage on second and
PASSED AND ADOPTED in regular session on second and final reading on this the
day of ., 1998.
MAYOR
ATTEST:
City Clerk
First Reading
Second Reading
telecom 1 .ord