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HomeMy WebLinkAboutVII (A1a) Telecommunications; Ordinance No. 2001-13, Adjusting Telecommunications Tax Rate to Maximum Agenda 6-05-2001 Item VII Ala ORDINANCE NO. 2001-13 A ORDINANCE OF THE CITY OF OCOEE, FOR THE PURPOSE OF ADJUSTING THE CITY'S LOCAL COMMUNICATIONS SERVICES TAX RATE IN ACCORDANCE WITH FLORIDA'S COMMUNICATIONS SERVICES TAX SIMPLIFICATION ACT, PROVIDING A CODIFICATION CLAUSE; PROVIDING A CONFLICT CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR AN EFFECTIVE DATE AND FOR OTHER PURPOSES. WHEREAS, on July 1, 2000, 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 Ocoee; 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 Cfogc}Il x:Ococe.Orth m neMtlryamwl loMan mum0.uu L5180I Joc 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 thentotaled. 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(1)(a) and (1)(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 RESOLVED BY THE COMMISSION OF THE CITY OF OCOEE, FLORIDA AS FOLLOWS: Section 1. <.a.hm.,moves.end.Hc-nn]..,mm„-m-ma. ,mauwsi POI ex 1. The City of Ocoee 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 Ocoee. 2. For the period beginning October 1, 2001, and ending September 30, 2002, the City of Ocoee, 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 (1)(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 Ocoee 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 Ocoee, hereby invokes its authority,in accordance with ACT,to impose the Local Communications Services Tax rate of 5.1% as set forth ins. 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 G T4ble%?O JOat,e.6O'din mmA4rysmeni-coalvxi mum RmM5180'dx 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 Ocoee hereby makes this adjustment. Section 2. Inclusion in the Code of Laws and Ordinances. Specificity authority is hereby granted to codify to codify this Ordinance. It is the intention of the City of Ocoee that the provisions of this Ordinance shall become and be made a part of the City of Ocoee's Code or Ordinances,and that the sections of this Ordinance may be renumbered or relettered and the word "Ordinance" may be changed to "section," "article," or such other appropriate word or phrase in order to accomplish such intentions. Section 3. Repeal of Conflicting Ordinances. All ordinances or parts of ordinances, and all resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. Section 4. Savings. All fees,charges and financial obligations previously accrued pursuant to any ordinance and resolutions repealed pursuant to Section 2 above shall continue to be due and owing until paid. Section 5. 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 4 rt M42W0AOdxiJlNuunu-A JjuvmmvoMa,mu mR moot lent dx stand notwithstanding the invalidity of any part. Section 6. Effective Date. This Ordinance shall be effective immediately upon passage. FIRST READING THIS DAY OF , 2001. SECOND READING AND FINAL PASSAGE THIS DAY OF , 2001. CITY OF OCOEE, FLORIDA BY ITS CITY COMMISSION MAYOR ATTEST: CITY CLERK ckama.zaw,a e,o,a.,, ndiurm•ot.ioMa.urn�xate_Osi aoi ma.