8508-13ORDINANCE NO. 8508 -13
AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA,
AMENDING THE CITY OF CLEARWATER CODE OF
ORDINANCES, CHAPTER 29, TAXATION AND OTHER FEES,
ARTICLE III, PUBLIC SERVICE TAX, SECTION 29.76,
EXEMPTIONS; PROVIDING FOR AN EXEMPTION OF PUBLIC
SERVICE TAXES ON A DECREASING GRADUATED BASIS
FOR A PERIOD OF FIVE YEARS, FOR THE PURCHASE OF
ELECTRICITY OR METERED NATURAL GAS, WHEN
PURCHASED BY AN INDUSTRIAL CUSTOMER WITHIN THE
NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM
INDUSTRY NUMBER 33441 AND RELATED SUBCATEGORIES
AS ESTABLISHED BY THE OFFICE OF MANAGEMENT AND
BUDGET, WHICH USES SUCH ELECTRCITY OR GAS
DIRECTLY IN THE MANUFACTURING, PROCESSING,
COMPOUNDING, OR A PRODUCTION PROCESS, AT A FIXED
LOCATION IN CLEARWATER, OF ITEMS OF TANGIBLE
PERSONAL PROPERTY FOR SALE; REQUIRING ANY
PURCHASER WHO CLAIMS AN EXEMPTION FROM THE
PUBLIC SERVICE TAX TO CERTIFY TO THE SELLER IN
WRITING THAT PURCHASER QUALIFIES FOR THE
EXEMPTION; PROVIDING AN EFFECTIVE DATE.
WHEREAS, it is the goal of the City of Clearwater to support economic growth by
promoting and increasing the viability and profitability of business and commerce within the
City of Clearwater; and
WHEREAS, by providing incentives for businesses to relocate to, or expand within
the City, employment opportunities will be created that will benefit the community, and
promote and strengthen the local economy; and
WHEREAS, as authorized by Chapter 166, Florida Statutes, the City of Clearwater
imposes and collects a municipal public service tax on every purchase within the City of,
among other things, electricity and metered natural gas, pursuant to Chapter 29, Article III,
§§ 29.71, et.seq., of the Code of Ordinances of the City of Clearwater; and
WHEREAS, subsection 166.231(6), Florida Statutes, provides that a municipality
may exempt from said tax, any amount up to, and including, the total amount of electricity
and /or metered natural gas when purchased by an industrial consumer which uses the
electricity or gas directly in industrial manufacturing, processing, compounding, or a
production process, at a fixed location within the municipality, of items of tangible personal
property for sale; and
WHEREAS, said statute requires that the municipality establish the requirements for
qualification for the exemption in a manner prescribed by ordinance; and
Ordinance No. 8508 -13
WHEREAS, the City hereby determines that the granting of a public service tax
exemption will encourage existing businesses to expand and will draw new businesses to
Clearwater, thereby achieving economic development and growth and enhancing the
health, safety and welfare of the citizens of the City, serving a public purpose, and
supporting the City's Economic Development Strategic Plan; now therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CLEARWATER, FLORIDA:
Section 1. Chapter 29, Taxation and Other Fees, Article III, Public Service Tax,
Section 29.76, Exemptions, subsection (2) is hereby amended to add the following:
(f) Purchases of electricity by an industrial customer within Industry Number 33441,
North American Industry Classification System, which uses the electricity directly in
industrial manufacturing, processing, compounding, or a production process, at a fixed
location within the City of Clearwater, of items of tangible personal property for sale,
shall be exempt on the following decreasing graduated scale for a period of five (5)
years from March 1, 2015 ( "Effective Date "):
(1) For a period of one (1) year beginning on the Effective Date, purchases shall
qualify for a fifty percent (50 %) exemption;
(2) For a period of one (1) year beginning on the first anniversary of the Effective
Date, purchases shall qualify for a forty percent (40 %) exemption;
(3) For a period of one (1) year beginning on the second anniversary of the
Effective Date, purchases shall qualify for a thirty percent (30 %) exemption;
(4) For a period of one (1) year beginning on the third anniversary of the Effective
Date, purchases shall qualify for a twenty percent (20 %) exemption;
(5) For a period of one (1) year beginning on the fourth anniversary of the
Effective Date, purchases shall qualify for a ten percent (10 %) exemption;
(6) On the fifth anniversary of the Effective Date, this exemption shall terminate.
(g) Purchases of metered natural gas by an industrial customer within Industry
Number 33441, North American Industry Classification System, which uses the metered
natural qas directly in industrial manufacturing, processing, compounding, or a
production process, at a fixed location within the City of Clearwater, of items of tangible
personal property for sale, shall be exempt on the following decreasing graduated scale
for a period of five (5) years from March 1, 2015 ( "Effective Date "):
(1) For a period of one (1) year beginning on the Effective Date, purchases shall
qualify for a one hundred percent (100 %) exemption;
(2) For a period of one (1) year beginning on the first anniversary of the Effective
Date, purchases shall qualify for an eighty percent (80 %) exemption;
(3) For a period of one (1) year beginning on the second anniversary of the
Effective Date, purchases shall qualify for a sixty percent (60 %) exemption;
[GM13- 9216 - 036/136264/11 2 Ordinance No. 8508 -13
(4) For a period of one (1) year beginning on the third anniversary of the Effective
Date, purchases shall qualify for a forty percent (40 %) exemption;
(5) For a period of one (1) year beginning on the fourth anniversary of the
Effective Date, purchases shall qualify for a twenty percent (20 %) exemption;
(6) On the fifth anniversary of the Effective Date, this exemption shall terminate.
(h) Any purchaser who claims an exemption from the public service tax pursuant to
subsections (f) and (q) shall provide written certification to the seller, certifying
entitlement to the exemption, in the format as prescribed by the City of Clearwater
Economic Development & Housing Department. A seller accepting the certification
required by this subsection is relieved of the obligation to collect and remit tax. If it is
determined at any time that purchaser was not entitled to receive such exemption,
purchaser shall be subject to all taxes exempted during said period on non - eligibility.
Section 2. This ordinance shall take effect immediately upon adoption.
DEC 0 5 ?113
PASSED ON FIRST READING
PASSED ON SECOND AND FINAL
READING AND ADOPTED
DEC 1 9 2013
— c eOrlC r1 Cr C DS
George N. Cretekos
Mayor
Approved as to form: Attest:
)11_1-A-4YUg'
Laura Lipowski Mahony
Assistant City Attorney
Rosemarie Call
City Clerk
[GM13- 9216 - 036/136264/1] 3 Ordinance No. 8508 -13
EXEMPTION CERTIFICATE
FOR THE PURCHASE OF METERED NATURAL GAS AND /OR ELECTRICITY USED TO
PRODUCE TANGIBLE PERSONAL PROPERTY FOR SALE
, incorporated in the State of , its
undersigned officer who is duly authorized, hereby certifies to (Vendor's Name),
that purchases of metered natural gas or electricity under account number will be
exclusively used in industrial manufacturing, processing, compounding, or production of tangible personal
property for sale. This industrial process is located at (Street
Address), in Clearwater, Florida, County of Pinellas.
I certify that (Name of Purchasing Business) is a business
establishment contained within an industry classified under North American Industry Classification
System (NAICS) code 33441 (Semiconductor and Other Electronic Component Manufacturing), which
contains sub code categories; 334412 (Bare Printed Circuit Board Manufacturing) 334413
(Semiconductor and Related Device Manufacturing), 334416 (Capacitor, Resistor, Coil, Transformer, and
Other Inductor Manufacturing), 334417 (Electronic Connector Manufacturing), 334418 (Printed Circuit
Assembly (Electronic Assembly) Manufacturing), and 334419 (Other Electronic Component
Manufacturing), as published by the Office of Management and Budget, Executive Office of the President.
I certify that the metered natural gas or electricity purchased hereunder is exempt from public service tax
under paragraph 166.231(6), Florida Statutes, and the City of Clearwater Code of Ordinances, Chapter
29, Section 29.76, on the following decreasing graduated scale for a period of five (5) years from March
1, 2015 ( "Effective Date "):
Exemption Period Beginning
Exemption
1 year
1 year
1 year
Effective Date
2 " anniversary of Effective Date
4th anniversary of Effective Date
100%
60%
20%
50%
30%
10%
I understand that if I use the metered natural gas or electricity purchased for any nonexempt purpose, I
will be liable to pay the City of Clearwater directly for applicable taxes due on the purchase.
Dated at Florida, this day of
Authorized Officer of Company
By:
Printed signature:
Title:
Telephone number:
This certificate relieves the vendor from the responsibility of collecting tax on the exempt purchases. The
City of Clearwater will look solely to the purchaser for recovery of tax if the purchaser was not entitled to
the exemption.
Form to be retained in vendor's records with copy to the City of Clearwater Finance Department, Attn:
Finance Director, P.O. Box 4748, Clearwater, FL 33758 -4748.