Bill Text: FL S0290 | 2013 | Regular Session | Introduced


Bill Title: Taxes on Prepaid Calling Arrangements

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-05-03 - Died in Appropriations Subcommittee on Finance and Tax [S0290 Detail]

Download: Florida-2013-S0290-Introduced.html
       Florida Senate - 2013                                     SB 290
       
       
       
       By Senator Galvano
       
       
       
       
       26-00383A-13                                           2013290__
    1                        A bill to be entitled                      
    2         An act relating to taxes on prepaid calling
    3         arrangements; amending ss. 202.11 and 212.05, F.S.;
    4         revising the definition of “prepaid calling
    5         arrangement” to clarify and update which services are
    6         included under that definition; providing for
    7         retroactive application; providing an effective date.
    8  
    9         WHEREAS, it is the intent of the Legislature to clarify
   10  that certain communication services that are paid for in advance
   11  are considered prepaid calling arrangements, subject to the
   12  state retail sales tax and are, therefore, excluded from a
   13  communications services tax, and
   14         WHEREAS, it is further the intent of the Legislature that
   15  the provisions of this act are remedial in nature, should be
   16  interpreted broadly, as appropriate for a tax exclusion
   17  provision that defines the tax base, and not strictly, as would
   18  be appropriate for a tax exemption provision, NOW, THEREFORE,
   19  
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Subsection (9) of section 202.11, Florida
   23  Statutes, is amended to read:
   24         202.11 Definitions.—As used in this chapter, the term:
   25         (9) “Prepaid calling arrangement” means access to the
   26  separately stated retail sale by advance payment of
   27  communications services which must be paid for in advance of
   28  using such services and which is that consist exclusively of
   29  telephone calls originated by using an access number,
   30  authorization code, or other means that may be manually,
   31  electronically, or otherwise entered and that are sold in
   32  predetermined units or dollars that expire on a predetermined
   33  schedule or that are decremented on a predetermined basis in
   34  exchange for such access of which the number declines with use
   35  in a known amount.
   36         Section 2. Paragraph (e) of subsection (1) of section
   37  212.05, Florida Statutes, is amended to read:
   38         212.05 Sales, storage, use tax.—It is hereby declared to be
   39  the legislative intent that every person is exercising a taxable
   40  privilege who engages in the business of selling tangible
   41  personal property at retail in this state, including the
   42  business of making mail order sales, or who rents or furnishes
   43  any of the things or services taxable under this chapter, or who
   44  stores for use or consumption in this state any item or article
   45  of tangible personal property as defined herein and who leases
   46  or rents such property within the state.
   47         (1) For the exercise of such privilege, a tax is levied on
   48  each taxable transaction or incident, which tax is due and
   49  payable as follows:
   50         (e)1. At the rate of 6 percent on charges for:
   51         a. Prepaid calling arrangements. The tax on charges for
   52  prepaid calling arrangements shall be collected at the time of
   53  sale and remitted by the selling dealer.
   54         (I) “Prepaid calling arrangement” has the same meaning as
   55  provided in s. 202.11 means the separately stated retail sale by
   56  advance payment of communications services that consist
   57  exclusively of telephone calls originated by using an access
   58  number, authorization code, or other means that may be manually,
   59  electronically, or otherwise entered and that are sold in
   60  predetermined units or dollars whose number declines with use in
   61  a known amount.
   62         (II) If the sale or recharge of the prepaid calling
   63  arrangement does not take place at the dealer’s place of
   64  business, it shall be deemed to have taken take place at the
   65  customer’s shipping address or, if no item is shipped, at the
   66  customer’s address or the location associated with the
   67  customer’s mobile telephone number.
   68         (III) The sale or recharge of a prepaid calling arrangement
   69  shall be treated as a sale of tangible personal property for
   70  purposes of this chapter, whether or not a tangible item
   71  evidencing such arrangement is furnished to the purchaser, and
   72  such sale within this state subjects the selling dealer to the
   73  jurisdiction of this state for purposes of this subsection.
   74         b. The installation of telecommunication and telegraphic
   75  equipment.
   76         c. Electrical power or energy, except that the tax rate for
   77  charges for electrical power or energy is 7 percent.
   78         2. The provisions of s. 212.17(3), regarding credit for tax
   79  paid on charges subsequently found to be worthless, is shall be
   80  equally applicable to any tax paid under the provisions of this
   81  section on charges for prepaid calling arrangements,
   82  telecommunication or telegraph services, or electric power
   83  subsequently found to be uncollectible. The term word “charges”
   84  under in this paragraph does not include any excise or similar
   85  tax levied by the Federal Government, any political subdivision
   86  of this the state, or any municipality upon the purchase, sale,
   87  or recharge of prepaid calling arrangements or upon the purchase
   88  or sale of telecommunication, television system program, or
   89  telegraph service or electric power, which tax is collected by
   90  the seller from the purchaser.
   91         Section 3. The amendments made by this act are intended to
   92  be remedial in nature and apply retroactively, but do not
   93  provide a basis for an assessment of any tax not paid or create
   94  a right to a refund or credit of any tax paid before the
   95  effective date of this act.
   96         Section 4. Except as otherwise expressly provided in
   97  section 3 of this act, this act shall take effect July 1, 2013.

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