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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 Pr~nted on Recycled Pa?er ~ C~ ~ C~ Hell, ~ N.W. &~ 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~ PRISE THE ~D (SPECIAL ACTIW. TIES DISTRICT) ZONING ORDI. NANCE FOR THE WATERFORD P~CE I ~LINT DEVELOPMEMT OF REGIONAL ~MPACT GENERALLY L~TED ON THE ~UT~ SIDE OF LINTON BOULE. VARD. ~E~EEN INTERSTATE · AND LINDELL BOULEVARD; INCOR~RAT~NG ANY EXtSTING C~DITIONS OF THE WATERFORD P~CE DELINT DR] INTO THE ~D ZONING DISTRI~; ~ND~TfONS FOR FURTHER VELOPMENT; PROVIDING A ~V. lNG C~USE, A GENERAL RE. ~LER C~USE, AND AN EFFEC. T~E ~TE. 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 ~RTATION FEES~, $UBSE~ION N~ (A),TO REVISE THE FEE ~HEDULE~R EMERGENCY MEDICALT~HS~RTATION IN ~R~HCE WtTH THE IN;~- TION INDEX CHARGE FOR ~; PROVIDING A GENERAL REPEAL. ER C~USE, A ~VING C~USE AND AN EFFECTIVE DATE. AN ~DINANCE ~ T~ CI~ C~ M;SSI~ OF THE CI~ ~ DEL~Y B~CH, FL~IDA, ~ENDING SEC. TtON 4J.~, ~IGHT INDUSTRIAL (LI) DISTRICt, OF THE ~ND DE' ~LOFMEHT REGU~T;ONS OF THE C;TY OF DELRAY BEACH, ~ENDfNG SUBSECTION ~PECIAL DISTRICT REGU~- SUBPARAGRAPH ~{H)(3), TO REDUCE THE MUM FLOR AREA ALL~ATED PE~ TENANT OR BAY; PROVIDING A GENERAL REPEALER C~USE, A ~VfNG C~USE, AND AN EF. FE~IVE DATE. AN ~DINANCE OF THE CI~ MINION OF THE CfTY OF ~LRAY ~CH, FLORIDA, ~ENDING SEC- TI~ ~1~(C), ~IDEWALK C~ ~RU~I~ REQUIREMENTS, AND ~ION ~.1~(C), ~RIVEWAY C~ ~;UCTION RETIREMENTS~, THE ~ND DEVELOPMENT REG~ ~TIONS OF THE CITY ~ DELRAY I~CH, TO PR~I~ ~R THE U~E ~ A~TERNATIVE SURFA;E ~PE$ 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