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Home My WebLink AboutOrdinance 2001-13 ORDINANCE NO. 2001-13 AN 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 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 ofOcoee; 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 G: \Cab le\2000\Ocoee\Ordinance-Adjustment-to-MaximumRate-051 80 1.doc 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(1)(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 COMMISSION OF THE CITY OF OCOEE, FLORIDA AS FOLLOWS: Section 1. G:\Cable\2000\Ocoee\Ordinance-Adjustment-to-MaximumRate-05180 I.doc 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 of 5.5% 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). 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 this authority 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 ofOcoee 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 G:\Cable\2000\Ocoee\Ordinance-Adjustment-to-MaximumRate-O5180 I.doc preempted. Section 2. Inclusion in the Code of Laws and Ordinances. Specificity authority is hereby granted 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 stand notwithstanding the invalidity of any part. G:\Cable\2000\Ocoee\Ordinance-Adjustment-to-MaximumRate-O5180 I.doc Section 6. Effective Date. This Ordinance shall be effective immediately upon passage. ATTEST: Je \11:.,/ (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO FORM this 1 q day of ::r U /'Ie , 2001. FOLEY & LARDNER By: if~(4J!z1 City Attorney . G:\Cable\2000\Ocoee\Ordinance-Adjustment-to-MaximumRate-os 180 I.doc APPROVED: CITY OF OCOEE, FLORIDA ADVERTISED JUNE 7,2001 READ FIRST TIME JUNE 5, 2001 READ SECOND TIME AND ADOPTED TI..J JJ t- 1'1 , 2001 UNDER AGENDA ITEM NO. 'P'J: fl. I. ~. FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO LEGALITY this ~ day of ::r vl\<2 ,2001. LEIBOWITZ & ASSOCIATES, P.A.