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Item C BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: Julv 12,2001 Division: Management Services Bulk Item: Yes .--2L No Department: Administrative Services AGENDA ITEM WORDING: Approval of Resolution to increase the local communication tax conversion rate to minimize fiscal impact to the county due to passage of Communications Services Tax Simplification Law; electing to increase the total rate for the local communications services tax by 0.24 percent in lieu of imposing permit fees on communications service providers desiring to occupy county right-of-way. ITEM BACKGROUND: Communication Services Tax (CST) Simplification Act radically alters several revenue sources levied by municipalities and counties. This action allows Monroe County to increase their rate of local taxation in lieu of collecting permit fees (we have never charged permit fees). We collect approximately $615,000 in franchise fees; this increase will increase revenue by approximately $1,500. PREVIOUS REVELANT BOCC ACTION: None CONTRACT/AGREEMENT CHANGES: New Resolution STAFF RECOMMENDATIONS: Approval TOTAL COST: BUDGETED: Yes No COST TO COUNTY: REVENUE PRODUCING: Yes..L No AMOUNT PER MONTH Year (Increased revenue by .0024; (about $1,500 annually). APPROVED BY: County Atty _ OMB/Purchasing _Risk DIVISION DIRECTOR APPROVAL: -~'1 James L. Roberts DOCUMENTATION: Included To Follow_ Not Required_ AGENDA ITEM # c DISPOSITION: Revised 2/27/01 Board of Caunty Commissioners RESOLUTION NO. -2001 A RESOLunON OP THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA ELECTING TO INCREASE THE LOCAL COMMUNICATIONS SERVICes TAX CONVERSION RATE TO MINIMIZE FISCAL IMPACT TO THE COUNTY DUE TO PASSAGE OF COMMUNICATIONS SERVICES TAX SIMPLIPICATION LAW; ELECTING TO INCRIASI! THE TOTAL RATE FOR THE LOCAL COMMUNICATIONS SERVICES TAX BY 0.24 PERCENT IN U!U Of IMPOSING peRMIT FEES ON COMMUNXCATIONS SERVICE PROVIDERS DESIRING TO OCCUpy COUNTY RIGHT-Or-WAY; DlREttlNG THE CLERK TO TRANSMIT THIS RESOLUTION TO STATE OF PLORlDA DEPARTMENT OF REVENUE; PROVIDING FOR SEVERABILlTY; PROVIDING FOR AN EFFECTIVE DATE WHEREAS. Chapter 2000-260, Laws of Florida, as amended by Chapter 2001- 140, uws of florida (hereinafter "Communications services Tax Simplification Law"'), .-.strud:ures and consolidates all taxes imposed upon communications services; and WHERI!AS. as allowed by the Communications Services Tax Simplification Law, the BOCC desires to adopt a rate for the local communications services ta~ ("CST") to be distributed to Manroe county from the State of Florida Department of Revenue in order to minimize the "seal impact to the County due to passage of this state law; and WHER!A5, the communications Services Ta~ Simplification Law requires local ,o".rnmcnts to Inform tIM Stat~ af Florida Department of Revenue of It adoption of a CST rate by certified man no later than :July 16, 2001 for it to take effect on October :I., 2001; and WHEREAS, tM Communlcalian.. Services Tax Simplification Law requires local govemments to elect either to increase the total rilte for the local CST by the permit fee Add-on of 0.24 percent or to Impoce ;I permit f.. which cannot exceed $100.00 per permit application; and WHEREAS, the Communications Services Tax Simplification Law requires local governments to Inform the state of Florida Department of Rf!V~nue of this election by certified mail no later than .:July le, 2001; now, therefore IE IT RI!SOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA: 5ecttlon 1. Tne Recitals set forth ~bove are true and correct and form II ~rt of this Resolution. Section 2. Pursuant to section 202.20, Fla. Stat., as amended by Chapter 2001- 140, Laws 01 Florida, the Bacc of Monroe County, "Iorld., hereby elects to adopt :I 1.5 percent rate as the county's local CST for the period of October 1, 2001 through September 30, 2002. section 3. Pun;uilnt to section 202.20, Fl.. Stet., as amended by Chapte.. 2001- 140, Laws of Florida, the Bace of Monroe County, Florida hereby further elects to establish die county's annualized CST rate at 1.4 percent beginning Cktober 2, 2002. ,,alan 4. The rates set forth in paragl".phs Z and 3 do not include 0.24 percent permit fee Add-on allowed by section 337.401, Fla. Stat., and established in paragraph 5 Of this Resolution below. section 5. Pursuant to section 337.401, Pia. Stat., the Doce of Monroe County, Florida, hereby elects to increase the total rate for the local CST by 0.24 percent In lieu of imposing permit fees 011 communications service providll!lf'S desiring to occupy County rtght1f-way. Section 6. In the aggregate, the first year CST rate is 1.74 percent, to be effective October 1, 2001 through September 30, 2001. In the aggregate, the annualized CST rate Is 1.&4 percent to be effective october 1, 2002 and thereafter, unless changed by actio~ of the BOCC. Section 7. The Clerk to the BOCe is hereby directed to transmit a true ilnd corNet copy of this Resolution to the State of Florida Department of Revenue by certified mail no later than 3uly US, 2001. The address is Communications services Tax, Florida Departrnant of Revenue, Post Off".ee Box 6609, Tallahassee, FL 32399..eOOO. The Clerk is also directed to inform tlte Department that fo.. questions about the County's local CST, It may contad: Rob Wolfe at County Atlomey's Office, 304/292...3470. Sec:tfon 8. If any s..d:lon, subsection, sentence, clause, or provision of this Resolution is held unconstitutional, inoperative, or void by a court of competent jurisdiction, s\lch holding $hall not afffl!et the remainder of this Resolution. Section 9. The provisions of this Resolution shall become effective upon approval by the Boanl of County Commissioners. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, florida, at a regular meeting of Hid .oard held on the 12th day of July, 2001. Mayor George Neugent Mayor Pro Tem Nora Wlllh.ms Commissioner Murray Nelson COmmissioner Dixie Spehar Commissioner Charles McCoy (SEAL) Attest: DANNY L.KOLHAGE, Clerk BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By By Deputy Clerk Mayor/Chairperson jdrescsTax Page 1 of 2 FLORID ASSOCIA TI OF COUNTI P.O. BOX 549/ TALLAHASSEE, FLORIDA 32302 Phone: 850/922-4300 Suncom: 292-4300 FAX: 850/488-7501 Website: www.f1-counties.com M E M 0 RAN DUM . . . via em ail TO: County Administrators County Attorneys County Lobbyists FROM: Bob McKee, Governmental Liaison DATE: June 25, 2001 RE: July 16 Deadlines for Action Under Communication Services Tax Simplification Act The Communication Services Tax (CST) Simplification Act radically alters several revenue sources levied by municipalities and counties. Prudent local governments will implement the Act quickly. If local governments do not adopt a resolution and send it to the Florida Department of Revenue (DOR) via certified mail by July 16, 2001, local governments may lose revenues. The Florida Association of Counties (FAC) conducted four regional seminars to explain the CST. For your review, the seminar materials are available on the FAC website at htto:l/www.fl-counties.com/GovRelations/GovRelbeta.htm. The materials include an overview of the changes in law, a timeline for action under the new tax, a model resolution, and relevant chapter laws. FAC's goal is to arm each county with enough information so that each county's governing body can adopt resolutions to meet the deadline. There are two actions for which this deadline applies. The first is a permit fee option, where counties must choose to continue to charge permit fees on Communication Service Providers for their activity in the rights-of-way, or to forgo permit fees and receive additional tax capacity. If no action is taken, local governments are assumed to have chosen to forgo permit fees. However, in order to receive any tax dollars back to replace the lost permit fees, the local governing board must increase the rate of taxation by resolution or ordinance. The second action is an opportunity for local governments to increase their rate of local taxation. Those local governments that have a conversion rate below the maximum rate may increase their local taxation rate up to the maximum to be effective on October Page 2 of 2 1, 2001, the start date of the CST. If this change is not made and notified to the OOR by July 16, a change in tax rate would not be effective until January 1, 2003. If you have any question regarding the requirements under this act, please do not hesitate to email me at bmckeeaufl-counties.com or call me at (850) 922-4300.