HomeMy WebLinkAboutOrdinance 2001-131
ORDINANCE NO. "00 l=-J 31
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, RELATING
TO INCREASING THE LOCAL COMMUNICATIONS
SERVICES TAX RATE; PROVIDING FOR INTENT;
PROVIDING FOR INCREASED LOCAL
COMMUNICATIONS SERVICES TAX RATE; PROVIDING
FOR NOTICE TO THE DEPARTMENT OF REVENUE;
PROVIDING FOR SEVERABILITY; PROVIDING AN
EFFECTIVE DATE.
WHEREAS, during the 2000 Regular Session, the Florida Legislature passed the
"Communications Services Tax Simplification Law" ("Communications Tax Law"), as amended,
creating Chapter 202, Florida Statutes (2000); and
WHEREAS, pursuant to section 202.19(2), Florida Statutes (2000), municipalities may
impose a local communications services tax at a rate of up to 5.1 % for municipalities that have
not chosen to levy permit fees, and at a rate of up to 4.98% for municipalities that chosen to levy
permit fees. These maximum rates do not include the add-ons of up to 0.12% for municipalities
authorized pursuant to section 337.401, Florida Statutes, for municipalities that choose not to
levy permit fees, nor do the rates supersede conversion of emergency rates authorized by section
202.20, Florida Statutes, which may be in excess of these maximum rates; and
WHEREAS, the Communication Tax Law 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, pursuant to the Communications Tax Law, 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 section 202. 19(2)(a), Florida Statutes (2001); and
WHEREAS, the Communications Tax Law created two Local Communications Services
Tax rates, namely, a Conversion rate. and a Maximum rate. The Conversion rate or "initial" rate
varies for each jurisdiction and was based upon the size of the communications tax base for each
particular local jurisdiction and 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 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 section 202. 19(2)(a), Florida Statutes (2001); and
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Communications Services Tax Rate Increase Ordinance.Doc
WHEREAS, pursuant to the Communications Tax Law, 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 section 202.19(2)(a), Florida
Statutes (2001), plus the difference between the Conversion rates set forth in subsection
202.20(1)(a) and (1) b, Florida Statutes (2001);
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Intent. It is the intent of the City of Sunny Isles Beach to increase its local
communications services tax rate as provided in accordance with the Communications Tax Law.
Under the Communications Tax Law, any municipality that has a local communications services
tax conversion rate established under section 202.20, Florida Statutes, which is less than the
maximum rate established under section 202.19, Florida Statutes, may by resolution or ordinance
increase its rate up to the maximum rate established under section 202.19, Florida Statutes, with
such increased rate to be effective October 1, 2001. For the period beginning on October 1,
2001, and ending September 30, 2002, the maximum rate established under section 202.19,
Florida Statues, is deemed to be the sum of such maximum rate plus the difference between the
conversion rates set forth in paragraphs (a) and (b) of section 202.20(1), Florida Statutes. It is
the further intent of the City of Sunny Isles Beach to increase its local communications services
tax rate effective October 1, 2002 as provided in section 202.19(2)(a), Florida Statutes, to the
maximum tax rate of up to 5.1 % for municipalities that choose not to levy permit fees.
Section 2. Increased Local Communications Services Tax Rate. The local communications
services tax rate for the City of Sunny Isles Beach is increased to 5.6% during the period
beginning October 1, 2001, and ending September 30, 2002. This increased rate is to be
effective October 1, 2001. The increased tax rate is the sum of the rate set forth in section
202.19(2)(a), plus the difference between the conversion rates set forth in sections 202.20(1)(1)
and 1(b), Florida Statutes (2001). For the period beginning October 1, 2002, and continuing
thereafter, the City, hereby invokes its authority in accordance with the Communications Tax
Law to impose a tax rate of 5.1 % as set forth in section 202.19(2), Florida Statutes.
Section 3. Notice to the Deoartment of Revenue. The City of Sunny Isles Beach directs that
notice of the increased local communications services tax rate be provided to the Department of
Revenue by certified mail postmarked on or before July 16, 2001. By virtue of the enactment of
this ordinance, the City hereby notifies the Department of Revenue of is 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.
Section 4. Severability. The provisions of this Ordinance are declared to be severable and if
any section, sentence, clause or phrase of this Ordinance shall, for any reason, be held to be
invalid or unconstitutional, such decision shall not affect the validity of the remaining sections,
sentences, clauses, and phrases of this Ordinance but shall remain in effect, it being the
legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part.
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Section 5. Effective Date. This Ordinance shall become effective ten days after adoption on
second reading.
PASSED AND ADOPTED on first reading the 21st day of June, 2001.
PASSED AND ADOPTED on second reading this 2
,2001.
ATTEST:
~~~~'H~
Richard Brown-Morilla, City Clerk
APPROVED AS TO FORM
AND S FICIENCY:
~;:~~~:~;,~~~~~~~~
VOTE: 5 -0
Mayor David Samson
Vice Mayor Kauffman
Commissioner Iglesias
Commissioner Morrow
Commissioner Turetsky
yes Vno_
yes Vno_
yes.JL11o _
yes~no_
yes ~o_
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