ORDINANCE NO. 2008-05

 

AN ORDINANCE OF THE TOWN OF MELBOURNE BEACH, BREVARD COUNTY, FLORIDA RELATING TO PUBLIC SERVICE TAXATION; MAKING FINDINGS; AMENDING SECTIONS 14-27, 14-28, 14-30, 14-31, AND 14-32, MELBOURNE BEACH TOWN CODE; REPEALING SECTION 14-29, MELBOURNE BEACH TOWN CODE; ENACTING A PUBLIC SERVICE TAX ON WATER SERVICE; REPEALING REFERENCES TO ASSESSMENT OF A PUBLIC SERVICE TAX ON TELECOMMUNICA-TIONS SERVICES; INCREASING LEVIES; REVISING EXEMPTIONS FROM TAXATION; REVISING LANGUAGE RELATING TO ASSESSMENT OF INTEREST AND PENALTIES;  READOPTING AND RECONFIRMING ORDINANCE NO. 98-02, RELATING TO PUBLIC SERVICE TAXES; REPEALING CERTAIN INCONSISTENT ORDINANCES AND RESOLUTIONS; PROVIDING A SEVERABILITY/ INTERPRETATION CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE.

 

     WHEREAS, in 2007, the Florida Legislature adopted Chapter 2007-321, Laws of Florida, and the voters of the State of Florida adopted amendments to Art. VII, §6, Florida Constitution of 1968 proposed by Senate Bill 2D (popularly known on the January 29, 2008 ballot as “Amendment 1”), all in an effort to reduce taxes on real estate;

     WHEREAS, the Town of Melbourne Beach is committed to implementing the desires of the electorate to cut taxes on real estate;

     WHEREAS, to provide for a balanced budget and to implement budget cuts to realize the property tax cuts called for, the Town Commission deems it necessary to adopt this Ordinance;

WHEREAS, the Town Commission finds that this Ordinance will promote the public health, safety, welfare, and economic order of the community and is in the public interest;

     WHEREAS, all conditions precedent to the effectiveness of this levy have been satisfied by the Town;

     WHEREAS, this Ordinance is adopted pursuant to authority provided for in Article VII, §1(a) and §9(a), Florida Constitution of 1968, (no tax shall be levied by a municipality, except as may be permitted by general law); Sections 166.231, 166.232, 166.233, and 166.234, Florida Statutes (2007)(general law providing for the levy of a public service tax); Article VIII, §2, Florida Constitution of 1968 (municipal home rule); and Section 166.021, Florida Statutes (1997) (implementation of municipal home rule), inter alia;

     WHEREAS, on May ___, 2008, the Town notified the Florida Department of Revenue, in writing by certified U.S. first class U.S. mail, of the levy to be effectuated by this Ordinance; and

     WHEREAS, said notification to the Florida Department of Revenue was made upon forms prescribed by the aforesaid Department.

BE IT ENACTED by the Town of Melbourne Beach, Florida:

     SECTION 1.  That Section 14-27 of the Town Code of the Town of Melbourne Beach, Florida, is hereby amended to read as follows:

§ 14-27.  Definitions.

     For the purpose of this article, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

     Fuel adjustment charge means and refers to all increases in the cost of utility services to the ultimate consumer resulting from an increase in the cost of fuel to the utility subject to October 1, 1973.  (Legislative Authority:  §166.231(1)(b), Fla.Stat. (2007) (1997).)

     Local telephone service means and refers to the access to a local telephone system, and the privilege of telephonic-quality communication with substantially all persons having telephone or radio telephone stations constituting a part of such local telephone system, or any facility or service provided in connection with said service.  The term "local telephone service" does not include any service which is a toll telephone service (as defined by Section 203.012(7), Florida Statutes (1997)); private communication service (as defined by Section 203.012(4), Florida Statutes (1997)); cellular mobile telephone or telecommunication service (as defined by Section 203.012(5), Florida Statutes (1997)); specialized mobile radio; or pagers and paging service, including but not limited to "beepers" and any other form of mobile and portable one-way or two-way communication; or teletypewriter service (as defined by Section 203.012(6), Florida Statutes (1997)).  Further, the term "local telephone service" does not include any public telephone charges collected on site, access charges, and any customer access line charges paid to a local telephone company.  (Legislative Authority:  §203.012, Fla.Stat. (1997).)

     Public service tax means and refers to the tax authorized by Sections 166.231, 166.232, 166.233, and 166.234, Florida Statutes, on the purchase of: 1) electricity; 2) metered natural gas; 3) metered or bottled liquified petroleum gas; 4) metered or bottled manufactured gas; and 5) water service telecommunications services, said purchases occurring within the municipal limits of the town.  (Legislative Authority:  §166.231(1)(a), Fla.Stat. (2007).)

     Purchase of electricity means and refers to the purchase of electricity by the person who will consume it within the town.  (Legislative Authority:  §166.231(1)(a), Fla.Stat. (2007) (1997).)

     Purchase means and refers to every act or transaction whereby possession of, utilization of, or control over electricity, metered natural gas, metered or bottled liquified petroleum gas, metered or bottled manufactured gas, or water service telecommunications services, which are subject to a public service tax, becomes vested in the purchaser within the corporate limits of the town for which payment is made pursuant to a duty and obligation thereof.

     Seller means and refers to any person rendering electricity, metered natural gas, metered or bottled liquified petroleum gas, metered or bottled manufactured gas, or water service telecommunications services, which are subject to a public service tax, to a purchaser.

     Telecommunications services means and refers to local telephone service.  (Legislative Authority:  §§166.231(9) and 203.012(5)(a), Fla.Stat. (1997).

     SECTION 2.  That Section 14-28 of the Town Code of the Town of Melbourne Beach, Florida, is hereby amended to read as follows:

Sec. 14-28.  Public service tax on electricity, metered natural gas, metered or bottled liquified petroleum gas, and metered or bottled manufactured gas, and water service.

     (a)  There is hereby levied by the town within the corporate limits of the town on each sale of electricity, metered natural gas, metered or bottled liquified petroleum gas, and metered or bottled manufactured gas, and water service, a public service tax on the charge made by the seller thereof, which tax in every case shall be paid by the purchaser (for the use of the town) at the time of paying the charge therefor.  Said tax shall be computed on the basis of 9.5% 6.65% of the payments received total charge made by the seller from to the purchaser for the purchase of said service.

     (b)  It shall be the duty of every seller of electricity, metered natural gas, metered or bottled liquified petroleum gas, or metered or bottled manufactured gas, or water service, to collect from the purchaser for the use of the town, the tax levied by this article at the time of collecting the selling price for each transaction.  All such taxes levied and collected during the preceding month shall be reported and paid over on or before the fifteenth day of each calendar month to the town manager.  (Legislative Authority:  §166.231(7), Fla.Stat. (2007) (1997).) 

     (c)  It shall be unlawful for any seller to collect the price of any purchase of electricity, metered natural gas, metered or bottled liquified petroleum gas, or metered or bottled manufactured gas, or water service, without at the same time, collecting the tax levied by this article in respect to such purchase(s) unless such seller shall elect to assume and pay such tax without collecting such tax from the purchaser.  (Legislative Authority:  §166.231(7), Fla.Stat. (2007) (1997).

     SECTION 3.  That Section 14-29 of the Town Code of the Town of Melbourne Beach, Florida, is hereby amended to read as follows:

Sec. 14-29.  Taxable telecommunication services; Tax levied. (Repealed).  (Legislative Authority:  Chap. 2000-260, §§36, 38, 39, and 58, Laws of Fla. 

     SECTION 4.  That Section 14-31 of the Town Code of the Town of Melbourne Beach, Florida, is hereby amended to read as follows:

Sec. 14-31.  Keeping of records.

     (a)  Every seller of electricity, metered natural gas, metered or bottled liquified petroleum gas, metered or bottled manufactured gas, or water service tele-communications services, shall keep complete records showing all purchases within the town of such commodities or services, which records shall show the price charged upon each purchase and the date thereof, all as set forth by Section 166.234, Florida Statutes.  The records shall be kept for inspection by the duly authorized agents of the town during the seller's normal business hours at the official location of the seller's books and records.  The duly authorized agents of the town shall have the right, power, and authority to make such transcripts thereof during such times as they may desire.  Records shall be retained by the seller for the statutorily required period.  (Legislative Authority:  §166.234, Fla.Stat. (2007) (1997).)

     (b)  Each meter or measured service of electricity, metered natural gas, metered or bottled liquified petroleum gas, metered or bottled manufactured gas or telephone call, shall constitute a separate purchase.

     SECTION 5.  That Section 14-32 of the Town Code of the Town of Melbourne Beach, Florida, is hereby amended to read as follows:

Sec. 14-32.  Exemption from tax.

     (a)  General.  The United States of America, the State of Florida, and all counties, school districts boards, and municipalities of the state, public bodies exempted by law or court order, political subdivisions and agencies, boards, commissions and authorities thereof, and any recognized church in this state for use exclusively for church purposes, are hereby exempted from payment of the tax levied by this article.  A recognized church that claims one of the foregoing exemptions to be entitled to the same must certify to the seller that it qualifies for the exemption, which certification may encompass all purchases after a specified date or other multiple purchases.  A seller accepting the certification required by this subsection is relieved of the obligation to collect and remit tax, and a seller is not required to collect tax from such an exempt governmental body.  A recognized church that claims an exemption as set forth in this sub-section shall certify to the seller that said purchaser qualifies for the exemption, which exemption may encompass all purchases after a specified date or other multiple purchases.  Copies of said certifications and consumer certifications of exemption shall be maintained by the seller and made available upon request to the town.

(Legislative Authority:  §166.231(5) and (9), Fla.Stat. (2007) (1997).)

     (b)  Resale of telecommunication services.  The purchase of local telephone service or other telecommunication services for use in the conduct of a telecommunication service for hire or otherwise for resale is exempt from the tax levied by this article.  (Legislative Authority:  §166.231(9)(e), Fla. Stat. (1997).)  

     (b) (c)  Fuel adjustment charge.  The public service tax shall not be levied against any fuel adjustment charge applicable to the purchase of electricity, metered natural gas, metered or bottled liquified petroleum gas, or metered or bottled manufactured gas, or water service; provided, that such charge shall be separately stated on each bill issued by a seller to a purchaser.  (Legislative Authority: §166.231(1)(b), Fla.Stat. (2007) (1997).)

     (d)  Telecommunication services; Religious institution with a consumer certificate of exemption.  Any religious institution possessing a consumer certificate of exemption issued pursuant to Chapter 212, Florida Statutes, is hereby exempted from payment of the public service tax levied upon telecommunication services by this article.  (Legislative Authority:  §166.231(5), Fla. Stat. (1997).) 

     (e)  Method of asserting exemption.  A purchaser who claims an exemption as set forth in this section shall certify to the seller that said purchaser qualifies for the exemption, which exemption may encompass all purchases after a specified date or other multiple purchases.  In the event of a claim of exemption from the public service tax on telecommunications services, presentation of a Chapter 212, Florida Statutes, consumer certification of exemption shall satisfy the requirements of this sub-section.  Copies of said certifications and consumer certifications of exemption shall be maintained by the seller and made available upon request to the town.

     SECTION 6.  That Section 14-33 of the Town Code of the Town of Melbourne Beach, Florida, is hereby amended to read as follows:

Sec. 14-33.  Late return of tax payments by seller; Interest; Penalties.

     (a)  Subject to the time limitations and requirements of s. 166.234, Florida Statutes, interest Interest and penalties may be charged by the town to the seller upon any late payment of tax revenues or filing of a required return.  No interest or penalty shall be passed thru or passed along to consumer purchasers.

     (b)  No penalty shall be assessed against a seller, unless the town manager determines the existence of willful neglect, willful negligence, or fraud.  Said determination may be appealed to the town commission, if said appeal is filed within thirty (30) days of the date of the town manager's determination.  Penalties may be assessed at a rate of five percent (5%) per month of the delinquent tax, not to exceed a total penalty of 25 percent, except that in no event shall the penalty for failure to file a return be less than $15.  In the case of a fraudulent return or a willful intent to evade payment of the tax, the seller making such fraudulent return or willfully attempting to evade payment of the tax, shall be liable for a specific penalty of 100 percent (100%) of the tax. 

     (c)  Interest may be charged at a rate of one percent (1%) per month of the delinquent tax from the date that the tax was due until paid.

     (d)  Interest and penalties shall be computed on the net tax due after application of any overpayments, and shall be subject to compromise as provided by law.  (Legislative Authority:  §166.234(4), (5), (7), and (8), Florida Statutes (2007).)

     SECTION 7.  All provisions of Ordinance No. 98-02, originally adopting public service taxes, are hereby reaffirmed and readopted, but modified as provided in this Ordinance. 

SECTION 8.  Severability/Interpretation Clause. 

          (a)  In the event that any term, provision, clause, sentence or section of this Ordinance shall be held by a court of competent jurisdiction to be partially or wholly unenforceable or invalid for any reason whatsoever, any such invalidity, illegality, or unenforceability shall not affect any of the other or remaining terms, provisions, clauses, sentences, or sections of this Ordinance, and this Ordinance shall be read and/or applied as if the invalid, illegal, or unenforceable term, provision, clause, sentence, or section did not exist.

          (b)  In interpreting the provisions of this Ordinance, the following rules and symbols shall apply:

              (1)  Words underlined are additions to existing text.

              (2)  Words stricken through are deletions from existing text.

              (3)  Asterisks (* * *) indicates a deletion from the Ordinance of text existing in the Code of Ordinances.  It is intended that the text in the Code of Ordinance denoted by the asterisks and not set forth in this Ordinance shall remain unchanged from the language existing prior to adoption of this Ordinance.

          (c)  It is the legislative intent of the Town Commission that notes marked "Legislative Authority" shall not be interpreted to be a material part of this Ordinance but are included for ease of reference by the reader of this Ordinance.

     SECTION 9.  Ordinances and Resolutions in Conflict.  All ordinances or resolutions or parts thereof that may be determined to be in conflict herewith, except portions of the Comprehensive Plan, are hereby repealed.

     SECTION 10.  Effective Date.  Pursuant to Section 166.233(2)(a), Florida Statutes (2007), a public service tax levy may only become effective on the subsequent January 1, April 1, July 1, or October 1.  Further, no levy may become effective until 120 days after the municipality notifies the Florida Department of Revenue of same.  Consequently, this Ordinance and Sections 3., 6., 8. 9., and 10., of this Ordinance shall become effective upon adoption, except that the amendments to Sections 1., 2., 4., 5., and 7., shall not become effective until October 1, 2008.

     PASSED by the Town Commission of the Town of Melbourne Beach on first reading on the 21st day of May, 2008, and ADOPTED by the Town Commission of the Town of Melbourne Beach, Florida, on final reading on the 18th day of June, 2008.

 

                               TOWN OF MELBOURNE BEACH,

                               FLORIDA

 

 

 

                               By:________________________                                      William G. Stacey, Mayor

 

ATTEST:________________________

       Lenore Milan, CMC

       Town Clerk