2001-O-48
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ORDINANCE NO. 2001-0-48
AN ORDINANCE OF THE CITY OF EDGEWATER,
FLORIDA; FOR THE PURPOSE OF ADJUSTING THE
CITY'S LOCAL COMMUNICATIONS SERVICES TAX RATE
IN ACCORDANCE WITH FLORIDA'S COMMUNICATIONS
SERVICES TAX SIMPLIFICATION ACT, PROVIDING FOR
CONFLICTING PROVISIONS, SEVERABILITY AND
APPLICABILITY; PROVIDING FOR AN EFFECTIVE DATE,
ADOPTION AND CODIFICATION.
WHEREAS, on July 1,2001, Florida's Communications Services Tax Simplification Act
(ACT) became law. The ACT established a new tax structure designed to treat communications
service providers in a nondiscriminatory manner with respect to the compensation these providers
have traditionally provided to local governments; and
WHEREAS, the new tax rates were not established in the initial adoption of the Act; and
WHEREAS, the ACT directed the Legislature to set and adopt, in the 2001 Legislative
Session, the new rates to be applied under the new tax structure; and
WHEREAS, the Legislative restructuring, in the 2001 Legislative Session, resulted in a new
Local Communications Services Tax, which is designed to apply equally to telephone service, cable
service and wireless service providers and where such new rates shall become effective on October
1, 2001, without any action by the City of Edgewater; and
WHEREAS, the ACT created two Local Communications Services Tax rates, namely, a
Conversion rate and a Maximum rate. The Conversion rate or "initial" rate varies for each local
jurisdiction and was based upon the size of the communications tax base for each particular local
jurisdiction and the revenues received by that local jurisdiction in 1999. The Conversion rate is
known as the initial rate because it takes effect on October 1, 2001, without any formal action by
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the local government. The new Law also established a Maximum rate. The Maximum rate is a
weighted average. The State assumed that each municipal and chartered county had imposed upon
communications providers all available taxes and fees at their highest possible levels under the
previous tax structure. The potential maximum revenue from this assumption was then totaled. The
State then divided this potential maximum sum, by the sum total of the new taxable base for each
municipal and chartered county. The outcome was 5.1 % as set forth in s. 202.19(2)(a), Florida
Statutes (2001); and
WHEREAS, pursuant to the ACT, a municipality that has an initial Conversion rate below
the Maximum rate is authorized to adjust its Conversion rate upward to the Maximum rate as set
forth in s. 202.19(2)( a), Florida Statutes (2001); and
WHEREAS, pursuant to the ACT, for the period beginning on October 1, 2001 and ending
on September 30, 2002, the established Maximum rate shall be deemed to be the sum of the
Maximum rate established under s. 202. 19(2)(a), Florida Statutes (2001), plus the difference
between the Conversion rates set forth in ss. 202.20(l)(a) and (l)(b), Florida Statutes (2001); and
WHEREAS, pursuant to the ACT, a municipality is authorized to adjust its Conversion rate
as described above; and
WHEREAS, it is the intent of the City to exercise its authority to adjust its new Local
Communications Services Conversion rate as described above.
NOW, THEREFORE, BE IT ENACTED by the People of the City of Edge water,
Florida:
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PART A.
AMEND CHAPTER 16 (TAXATION), BY AMENDING
SECTION 16-2 (TAXES IMPOSED: ELECTRICITY,
METERED OR BOTTLED GAS, FUEL OIL,
TELECOMMUNICATION SERVICES) OF THE CODE OF
ORDINANCES, CITY OF EDGEW ATER, FLORIDA.
Section 16-2 is amended to read as follows:
Sec. 16-2.
Taxes imposed: Electricity, metered or bottled gas, fuel oil,
telecommunication services.
(a) The tax previously imposed pursuant to former section 16-1 of the Code of
Ordinances on each purchase of electricity and metered or bottled gas (natural
liquefied petroleum gas or manufactured) in the corporate limits of the city in th
amount often (10) percent of the payments received by the seller ofthe service from
the purchaser for the purchase of the service shall continue in effect.
(b) The tax previously imposed pursuant to former section 16-1 of the Code of
Ordinances on fuel oil in the amount of four cents ($0.04) per gallon shall remain in
effect.
(c) Effective febmary 1,1997, a tax is hereby imposed and Ievied upon the pm chase of
telcphone collUllunication ser v ice ~hich 01 iginates and terminates in the State of
florida, at a late of seven (7) percent of the total amount charged for any
telecommunication seIvice provided ~ithin the city or, it the location of the
telecollllllunication service provided cannot be dete1mined, the total amount billed
for such telccomnmnication se1 vice to a telephone or telcphone number, a
teleconlluunieation number or device, or customer's billing address located ~ithin
the municipality exeluding public telephone chalges collected on site, ehalges for
any foreign exchange se1vice 01 any private line service except ~hcn such SO vices
ale used or sold as a substitute f01 any telephone company s~itched ser vice 01
dcdicated facility by ~hich a telephone company p10vides a communication path,
access charges, and any customer access line charges paid to a local telephone
company. TelccomnlUnication se1 v iccs as de,fincd in section 20J.012(5)(b), Plo1ida
Statute,s, shall be, taxed only on the monthly 1ceulling customer 50 v ice cha1ges
exeluding valiabIe usage chalges. The tax p1eviously imposed by forme1 section I G-
1 of the Code of Ordinances on pmchascs onoeal telephone and teleg1aph SC1 vices
in the amount often (10) percellt shall remain in effect tlnough January J 1, 1997.
W W Effective October 1, 1996, there is hereby imposed on each purchase of water service
in the corporate limits of the city a tax in the amount of ten (10) percent of the
payments received by the seller of the service from the purchase of the service.
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@ Local Communications Services Tax - Imvlementation.
(1) The City of Edgewater hereby acknowledges that on October 1,2001, a new
Local Communications Services Tax Conversion rate will go into effect
without anv formal action by the City of Edgewater.
(2) For the period beginning October 1. 2001. and ending September 30, 2002,
the City of Edge water, hereby invokes its authority, in accordance with ACT,
to impose a Local Communications Services Tax rate of 5.5%. This new
Local Communications Services Tax rate is the sum of the rate set forth in
s. 202.19(2)( a), plus the difference between the Conversion rates set forth in
ss. 202.20(1 )(a) and (l)(b), Florida Statutes (2001). The ACT is designed to
be revenue neutral. Consistent with this specific legislative intent of the
ACT that the new tax structure provide revenue neutrality for local
governments, the City of Edgewater hereby makes this adiustment.
(3) Section 202.20, Florida Statutes (2001) requires that the City notify the
Department of Revenue, by certified mail postmarked on or before July 16,
2001, of whether the City will elect to adiust its Conversion rate to the
Maximum rate. This statutory section permits the City to adiust its Local
Communications Services Tax rate by ordinance or resolution. In
accordance with these prerogatives the City adopts this Ordinance. Likewise,
the City hereby declares that this Ordinance shall be its notice to the
Department of Revenue of the City's election to require an upward
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adiustment of the Local Communications Services Tax for the period
beginning on October}, 200}, and ending on September 30,2002.
(4) For the period beginning October 1,2002, and continuing thereafter, the City
of Edgewater, hereby invokes its authority, in accordance with ACT, to
impose the Local Communications Services Tax rate of 5.1 % as set forth in
s. 202.19(2)( at Florida Statutes (2001). The City hereby declares that this
Ordinance shall be its notice to the Department of Revenue of the City's
election to require an adiustment of the Local Communications Services Tax
for the period beginning on October 1, 2002 and continuing thereafter unless
and until expressly repealed or preempted. The ACT is designed to be
revenue neutral. Consistent with this specific legislative intent of the ACT
that the new tax structure provide revenue neutrality for local governments,
the City of Edgewater hereby makes this adiustment.
PART B.
CONFLICTING PROVISIONS.
All conflicting ordinances and resolutions, or parts thereof in conflict with this ordinance,
are hereby superseded by this ordinance to the extent of such conflict.
PART C.
SEVERABILITY AND APPLICABILITY.
If any portion of this ordinance is for any reason held or declared to be unconstitutional,
inoperative, or void, such holding shall not affect the remaining portions of this ordinance. If this
ordinance or any provisions thereof shall be held to be inapplicable to any person, property, or
circumstances, such holding shall not affect its applicability to any other person, property, or
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circumstance.
PART D.
CODIFICATION.
Provisions of this ordinance shall be incorporated in the Code of Ordinances of the City of
Edgewater, Florida, and the word "ordinance", may be changed to "section", "article", or other
appropriate word, and the sections of this ordinance may be renumbered or relettered to accomplish
such intention; provided, however, that Parts B through F shall not be codified.
PART E.
EFFECTIVE DATE.
This Ordinance shall take place upon adoption.
PART F.
ADOPTION.
After Motion by Councilwoman Rhodes and Second by Councilman Brown, the vote on first
reading of this ordinance held on June 18, 2001, was as follows:
AYE NAY
Mayor Donald A. Schmidt X
Councilman James P. Brown X
Councilman Dennis A. Vincenzi X
Councilwoman Harriet E. Rhodes X
Councilwoman Judy Lichter X
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After Motion by the andSecondby ajM4= the vote onthe second reading
of this ordinance was as follows:
AYE NAY
Mayor Donald A. Schmidt
Councilman James P. Brown
Councilman Dennis A. Vincenzi
Councilwoman Harriet E. Rhodes
Councilwoman Judy Lichter
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PASSED AND DULY ADOPTED this day of July, 2001.
For the use and reliance only by the City of
Edgewater, Florida. Approved as to form and
legality by:
Scott A. Cookson, Esquire
City Attorney
Foley & Lardner
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CITY COUNCIL OF THE
CITY OF EDGEWATER, FLORIDA
By: n w r
Donald A. Schmidt
Mayor
Robin L. Matusick
Legal Assistant
Approved by the City Council of the City o
Edgewater a a meeting held on this
day d hhh 1NNYo. (��. J��1 ��� 2001 under
Agenda Itet