2001-O-49
,.....
...
.....,
ORDINANCE NO. 2001-0-49
AN ORDINANCE OF THE CITY OF EDGEWATER,
FLORIDA; FOR THE PURPOSE OF ADJUSTING THE
CITY'S LOCAL COMMUNICATIONS SERVICES T AX RATE
IN ACCORDANCE WITH SECTION 337.401(3)(c)1., FLORIDA
STATUTES, PROVIDING FOR CONFLICTING PROVISIONS,
SEVERABILITY AND APPLICABILITY; PROVIDING FOR
AN EFFECTIVE DATE; CODIFICATION AND FOR
ADOPTION.
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 Florida law permits municipalities to recover costs in the form of permit
fees incurred by the municipalities in the exercise of its police power; and
WHEREAS, Section 337.401(3)( c) 1., Florida Statutes (2001) allows a municipality to adjust
its new Local Communications Services Tax upward by 0.12% in lieu of requiring and collecting
permit fees from any provider of communications services; and
StI tlck throtlgh passages are deleted.
Underlined passages are added.
2001-0-49
'-
....
...."
WHEREAS, it is the intent of the City to exercise its authority to adjust its new Local
Communications Services Tax upward by 0.12% in lieu of requiring and collecting permit fees from
any provider of communications services.
NOW, THEREFORE, BE IT ENACTED by the People of the City of Edgewater,
Florida:
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 of the 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 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 (l0) percent of the
payments received by the seller of the service from the purchase of the service.
(d) Simplified Communications Tax - Authority.
(l) The City of Edgewater hereby acknowledges that on October 1,2001, a new
Local Communications Services Tax Conversion rate will go into effect
without any 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
Stl tick thlOtlgh passages are deleted.
Underlined passages are added.
2001-0-49
2
~
......
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(l)(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 adjustment.
(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 adjust its Conversion rate to the
Maximum rate. This statutory section permits the City to adjust 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
adjustment of the Local Communications Services Tax for the period
beginning on October 1,2001, 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)(a), 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 adjustment 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 adjustment.
(e) Local Communications Services Tax Rate.
(1)
Authority.
The City of Edgewater hereby invokes its authority, in
accordance with Section 337.401 (3)(c)l., Florida Statutes (2001), to adiusts
its Local Communications Services Tax rate by the addition 0[0.12% in lieu
of requiring and collecting permit fees from any provider of communications
services. The ACT is designed to be revenue neutral. Consistent with this
specific legislative intent of the ACT that the new tax structure provide
StI tick dl1 otlgh passages are deleted.
Underlined passages are added.
2001-0-49
3
'-"
'wi
revenue neutrality for local governments, the City of Edgewater hereby
makes this adiustment.
(2) Ad;ustment. This adiustment shall be applied to the same communications
services subiect to the Local Communications Services Tax set forth in ss.
202.20(1 )(a) and (1 )(b), Florida Statutes (2001) and s. 202.19(2)(a), Florida
Statutes (2001).
(3) Notification. Section 337.401 (3)( c)L 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 forego the collection
of permit fees. 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 adiustment of the Local
Communications Services Tax in lieu of collecting permit fees.
(4) Term. The City hereby declares that this adiustment shall remain in effect
until and unless otherwise expressly repealed by the City, irrespective of
whether the City, in its discretion, maintains a Local Communications
Services Tax rate under ss. 202.20(1 )(a) and (1 )(b) or s. 202. 19(2)(a), Florida
Statutes (2001).
StI tIck tllI ougl. passages are deleted.
Underlined passages are added.
2001-0-49
4
...
...."
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
circumstance.
PARTD.
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.
St! tlck dB Otlgh passages are deleted.
Underlined passages are added.
2001-0-49
5
'-'
..",;
PART F.
ADOPTION.
After Motion by Councilwoman Lichter and Second by Councilwoman Rhodes, 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
After Motion by '7 ~ and Second by f;LL
the vote on the second reading of this ordinance was as follows:
AYE
NAY
Mayor Donald A. Schmidt
'1
Councilman James P. Brown
'f
Y.
i
r
Councilman Dennis A. Vincenzi
Councilwoman Harriet E. Rhodes
Councilwoman Judy Lichter
Stt tick till otlgh passages are deleted.
Underlined passages are added.
2001-0-49
6
0
PASSED AND DULY ADOPTED this day of July, 2001.
ATTEST:
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
SMnck-ihnough passages are deleted.
Underlined passages are added.
2001-0-49
CITY COUNCIL OF THE
CITY OF EDGEWATER, FLORIDA
By:,h/ o{vr w i
Donald A. Schmidt
Mayor
Robin L. Matusick
Legal Assistant
Approved by the City Council of the City o
Edgewater t a meeting held on this &,"
day of 2001 under
Agenda lt6moNo. (- C .