7044-02
ORDINANCE NO. 7044-02
AN ORDINANCE OF THE CITY OF CLEARWATER,
FLORIDA, RELATING TO PUBLIC SERVICE TAX;
AMENDING SECTIONS 29.71, 29.72, 29.73, 29.74,
29.75, AND 29.76, CODE OF ORDINANCES TO
BRING SAID ORDINANCES INTO COMPLIANCE
WITH STATE STATUTES; PROVIDING AN
EFFECTIVE DATE
WHEREAS, Sections 29.71,29.72,29.73,29.74,29.75, and 29.76, Code of
Ordinances, relating to public service tax, needed revision because of changes in state
statutes; and
WHEREAS, the City Commission finds that these changes in city ordinances are
needed to be in compliance with changes in state statutes; now therefore,
BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
CLEARWATER, FLORIDA:
Section 1. Section 29.71, Code of Ordinances, is amended to read:
Sec 29.71. Definitions.
The following words, terms and phrases, when used in this article, shall have the
meaning ascribed to them in this section, except where the context clearly indicates a
different meaning:
Access charge or right of access, local telephone service, priv-ate communication
service telecommunication service, teletypewriter or computer exchange service and
toll telephone service mean, as set forth in F.S. 203.012, as the definitions may be
amended from time to time, which definitions are adopted and incorporated by
reference.
Electronic transfer means the use, by the seller, of the Automated Clearinq House
(ACH), or other electronic transfer system approved by the Finance Director, to send
the taxes directly from the seller's bank to the City's bank.
Purchase in the city means, with respect to public services subject to the tax levied by
section 29.72 except telecommunication services, every instance in which the
commodity or service is delivered to a purchaser or consumer within the city, regardless
of whether the seller maintains its business office within the city or elsewhere. \MtA.
respect to telecommunication services, the term shall be synonymous \\'ith the term
"provided in the city," and both terms shall have the meaning provided by state la'N.
Seller means a person, firm, corporation, or other leqal entity who sells a service
Ordinance 7044-02
subject to a levy.
Tax means the municipal public service tax authorized under ~166.231, F.S.
Remit, remittance, remittinq mean the sendinQ by the seller and receipt by the City of all
taxes levied and collected pursuant to Sec 29.72. The date of receipt of such taxes by
the City will be the date of postmark, or if by electronic transfer, the date received by
the City's bank as indicated on the City's bank statement.
Section 2. Section 29.72, Code of Ordinances, is amended to read:
Sec. 29.72. Levy
(1) Utflities. Public SeNice Tax. There is levied by the city on every purchase in the
city of electricity, metered or bottled gas (natural, liquefied petroleum gas, or
manufactured), and water service, a tax of ten percent of the payments received by the
seller of the item taxed by this section from the purchaser for the purchase of such
service. The tax levied by this subsection shall be collected by the seller of the item
subject to this tax from the purchaser at the time of payment for such service.
(2) Public SeNice Tax on Fuel oil. There is hereby further levied by the city a tax on
every purchase in the city of fuel oil at the rate of $0.04 per gallon. This tax shall in
every case be paid by the purchaser of fuel oil to the seller of fuel oil. The tax levied
in this section on fuel oil shall be collected by the seller of fuel oil from the purchaser
at the time of payment for such service. The term "fuel oil" as used in this subsection
shall include fuel oil grade nos. 1, 2, 3, 4, 5, and 6, kerosene, and coal oil.
(3) Telecommunications services. There is levied by the city 3 tax on every purchase in
the city of
telecommunication service that originates and terminates in this state, at the rate of 7
percent of the total amount charged for any telecommunication service the source of
IJ'.'hich is ascribed to the city on the basis of billing address or service address as used
consistently by the seller, provided within the city or, if the location of the
telecommunication services provided cannot be determined, the total amount billed for
such telecommunication services to a telephone or telephone number, a
telecommunications number or device or a customer's billing address located v.'ithin the
city, excluding public telephone charges collected on site, charges for any f-oreign
exchange service or any private line service except when such services are used or
sold as a substitute for any telephone company switched 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. However,
telecommunications services as defined in 9203.12(5), F.S. as may be amended from
time to time to, shall be taxed only on the monthly recurring customer service charges
excluding variable usage charges.
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Ordinance 7044-02
(3) The tax imposed by paraQraph (1) shall not be applied aQainst any fuel adjustment
charQe, and such charQe shall be separately stated on each bill. The term "fuel
adiustment charQe" means all increases in the cost of utility services to the ultimate
consumer resultinQ from an increase in the cost of fuel to the utility subsequent to
October 1, 1973.
Section 3. Section 29.73, Code of Ordinances, is amended to read:
Sec 29.73. Payment; collection.
It shall be the duty of every seller of electricity, metered or bottled gas (natural or
manufactured), water service, or fuel oil or telecommunication service, to collect from
the purchaser, for the use of the city, the tax hereby levied in this article, at the time of
collecting the selling price charged for each transaction, and to report and pay over, on
or before the 20th day of each calendar month, or quarter if applicable, or if the twentieth
day is either a legal holiday or is not a city business day, then on or before the first city
business day, that is not also a legal holiday, unto the finance director, all such taxes
levied and collected during the preceding calendar month. Any seller of electricity,
metered or bottled gas (manufactured or natural), fuel oil, and water service arn::I-
telecommunications service failing to remit to the City on or before the twentieth (20th)
day of each calendar month will be subject to the provisions of Sec. 29.77 paragraph
(7).
Section 4. Section 29.74, Code of Ordinances, is amended to read:
Sec 29.74. Records of service.
(1) Each seller of electricity, metered or bottled gas (natural or manufactured), water
service, and fuel oil and telecommunication service shall keep 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. Duly authorized
agents of the city may during the sellers normal business hours at the official location of
the seller's books and records, audit the records of any seller of a service that is taxable
by the city under 9166.231, F.S. or 9166.232, F.S. for the purpose of ascertaining the
correctness of any return that has been filed or payment that has been made, if the
city's power to assess tax or grant a refund is not barred by the applicable limitations
period. Each such seller must provide to the city, upon 60 days' written notice, access
to applicable records for such service except that extensions of this 60-day period will
be granted if reasonably requested by the seller.
(2) Each seller of services that are taxable under 9 166.231, F.S. or 9 166.232, F.S.
shall preserve applicable records relating to such taxes until the expiration of the time
within which the city may make an assessment with respect to that tax; however, a
seller is not required to retain duplicative or redundant records. The term "applicable
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Ordinance 7044-02
records" means records kept in the ordinary course of business which establish the
collection and remittance of taxes due.
Section 5. Section 29.75, Code of Ordinances, is amended to read:
See 29.75. Computation Period
In all cases where the seller of electricity, metered or bottled gas (natural or
manufactured), water service or fuel oil or telecommunication 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.
Section 6. Section 29.76, Code of Ordinances, is amended to read:
See 29.76.Exemptions.
(1) The United States of America, the State, and political subdivisions and agencies
thereof are hereby exempted from payment of the taxes imposed by section 29.72.
Such tax shall not apply to sales of bottled water.
(2) There is excluded from the tax levied and imposed pursuant to section 29.72 the
following;
(a) Purchases of special fuels as defined in 9206.86, F.S.;
(b) The purchase of not more than five gallons of fuel oil delivered at the seller's
place of business into the purchaser's container of not more than five gallon
capacity;
(c) The purchase of fuel oil or kerosene for use as an aircraft engine fuel or
propellant or for use in internal combustion engines;
(d) The purchase of natural gas or fuel oil by a public or private utility, including
municipal corporation and rural electric cooperative associations, either for
resale or for use as fuel in the generation of electricity;
(8) The purchase of local telephone service or other telecommunications service
for use in the conduct of a telecommunications service for hire or otherv.'ise for
resale.
(f) The purchase of any item otherwise subject to the tax levied by section 29.72
by any recognized church in this state for use exclusively for church purposes
and purchases made by any religious institution that possesses a consumer
certificate of exemption issued under chapter 212, F.S.
(e) Purchases by any recognized church in this state for use exclusively for church
purposes.
Section 7. This ordinance shall take effect immediately upon adoption.
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Ordinance 7044-02
PASSED ON FIRST READING
October 17. 2002
PASSED ON SECOND AND FINAL
READING AND ADOPTED
November 7, 2002
Approved as to form:
JdJ6. Akin
City Attorney
Attest:
~.~aa~a~
~ Cynt<<ia . Goudeau, City Cler
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Ordinance 7044-02