Bill Text: FL S0712 | 2014 | Regular Session | Introduced


Bill Title: Taxes on Prepaid Calling Arrangements

Spectrum: Bipartisan Bill

Status: (Failed) 2014-05-02 - Died in Messages, companion bill(s) passed, see HB 5601 (Ch. 2014-38) [S0712 Detail]

Download: Florida-2014-S0712-Introduced.html
       Florida Senate - 2014                                     SB 712
       
       
        
       By Senator Galvano
       
       
       
       
       
       26-00835C-14                                           2014712__
    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 and subject to a sales
    7         tax; providing for retroactive application; providing
    8         an effective date.
    9          
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Subsection (9) of section 202.11, Florida
   13  Statutes, is amended to read:
   14         202.11 Definitions.—As used in this chapter, the term:
   15         (9) “Prepaid calling arrangement” means: the separately
   16  stated retail sale by advance payment of
   17         (a)A right to use communications services, other than
   18  mobile communications services, for which a separately stated
   19  price must be paid in advance, which is sold at retail in
   20  predetermined units that decline in number with use on a
   21  predetermined basis, and which that consist exclusively of
   22  telephone calls originated by using an access number,
   23  authorization code, or other means that may be manually,
   24  electronically, or otherwise entered; or and that are sold in
   25  predetermined units or dollars of which the number declines with
   26  use in a known amount.
   27         (b) A right to use mobile communications services that must
   28  be paid for in advance and is sold at retail in predetermined
   29  units that expire or decline in number on a predetermined basis
   30  if:
   31         1. The purchaser’s right to use mobile communications
   32  services terminates upon all purchased units expiring or being
   33  exhausted unless the purchaser pays for additional units;
   34         2. The purchaser is not required to purchase additional
   35  units; and
   36         3. Any right of the purchaser to use units to obtain
   37  communications services other than mobile communications
   38  services is limited to services that are provided to or through
   39  the same handset or other electronic device that is used by the
   40  purchaser to access mobile communications services.
   41  
   42  Predetermined units described in this subsection may be
   43  quantified as amounts of usage, time, money, or a combination of
   44  these or other means of measurement.
   45         Section 2. Paragraph (e) of subsection (1) of section
   46  212.05, Florida Statutes, is amended to read:
   47         212.05 Sales, storage, use tax.—It is hereby declared to be
   48  the legislative intent that every person is exercising a taxable
   49  privilege who engages in the business of selling tangible
   50  personal property at retail in this state, including the
   51  business of making mail order sales, or who rents or furnishes
   52  any of the things or services taxable under this chapter, or who
   53  stores for use or consumption in this state any item or article
   54  of tangible personal property as defined herein and who leases
   55  or rents such property within the state.
   56         (1) For the exercise of such privilege, a tax is levied on
   57  each taxable transaction or incident, which tax is due and
   58  payable as follows:
   59         (e)1. At the rate of 6 percent on charges for:
   60         a. Prepaid calling arrangements. The tax on charges for
   61  prepaid calling arrangements shall be collected at the time of
   62  sale and remitted by the selling dealer.
   63         (I) “Prepaid calling arrangement” has the same meaning as
   64  provided in s. 202.11 means the separately stated retail sale by
   65  advance payment of communications services that consist
   66  exclusively of telephone calls originated by using an access
   67  number, authorization code, or other means that may be manually,
   68  electronically, or otherwise entered and that are sold in
   69  predetermined units or dollars whose number declines with use in
   70  a known amount.
   71         (II) If the sale or recharge of the prepaid calling
   72  arrangement does not take place at the dealer’s place of
   73  business, it shall be deemed to have taken take place at the
   74  customer’s shipping address or, if no item is shipped, at the
   75  customer’s address or the location associated with the
   76  customer’s mobile telephone number.
   77         (III) The sale or recharge of a prepaid calling arrangement
   78  shall be treated as a sale of tangible personal property for
   79  purposes of this chapter, whether or not a tangible item
   80  evidencing such arrangement is furnished to the purchaser, and
   81  such sale within this state subjects the selling dealer to the
   82  jurisdiction of this state for purposes of this subsection.
   83         (IV) No additional tax under this chapter or chapter 202 is
   84  due or payable if a purchaser of a prepaid calling arrangement,
   85  who has paid tax under this chapter on the sale or recharge of
   86  such arrangement, applies one or more units of the prepaid
   87  calling arrangement to obtain communications services as
   88  described in s. 202.11(9)(b)3., other services that are not
   89  communications services, or products.
   90         b. The installation of telecommunication and telegraphic
   91  equipment.
   92         c. Electrical power or energy, except that the tax rate for
   93  charges for electrical power or energy is 7 percent.
   94         2. The provisions of s. 212.17(3), regarding credit for tax
   95  paid on charges subsequently found to be worthless, are shall be
   96  equally applicable to any tax paid under the provisions of this
   97  section on charges for prepaid calling arrangements,
   98  telecommunication or telegraph services, or electric power
   99  subsequently found to be uncollectible. The term word “charges”
  100  under in this paragraph does not include any excise or similar
  101  tax levied by the Federal Government, any political subdivision
  102  of this the state, or any municipality upon the purchase, sale,
  103  or recharge of prepaid calling arrangements or upon the purchase
  104  or sale of telecommunication, television system program, or
  105  telegraph service or electric power, which tax is collected by
  106  the seller from the purchaser.
  107         Section 3. The amendments made by this act are intended to
  108  be remedial in nature and apply retroactively, but do not
  109  provide a basis for an assessment of any tax not paid or create
  110  a right to a refund or credit of any tax paid before the
  111  effective date of this act.
  112         Section 4. Except as otherwise expressly provided in
  113  section 3 of this act, this act shall take effect July 1, 2014.

feedback