Ordinance 87-2574 . k
ORDINANCE NO. 87-2574
AN ORDINANCE OF THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING THE
CODE_OF THE CITY OF MIAMI BEACH, CHAPTER 41,
ARTICLE IV, SECTIONS 41-37, 41-38, 41-39, 41-40, 41-
41, 41-42, 41-43 AND DELETING 41-41.1; TO DELETE
REFERENCES TO TELEPHONE SERVICE; TO LEVY A
PUBLIC SERVICE TAX ON THE PURCHASE OF
TELECOMMUNICATION SERVICES AND COMPETITIVE
SERVICES AND PROVIDING DEFINITIONS, A METHOD
OF IMPLEMENTATION, DUTIES OF SELLERS AND
PURCHASERS, REQUIREMENTS FOR REMIT i APJCE OF
THE TAX, RECORDS, REPORTS AND FOR
RECOGNITION OF EXPENSES: TO CLARIFY THE
APPLICABLE PENALTY FOR VIOLATON OF THE
UTILITY TAX PROVISIONS; FURTHER, REPEALING
ALL ORDINANCES IN CONFLICT THEREWITH:
PROVIDING FOR SEVERABILITY: AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the City of Miami Beach, a municipal corporation of the State of
Florida, pursuant to Article VIII, Section 2(b) of the Constitution of the State of
Florida, and the provisions of all general laws relating to and governing municipalities
generally in the State of Florida, finds that it is necessary and proper to levy a public
service tax as authorized by the 198.5 provisions of Florida Statutues 166.231(2),
166.231(9) and 166.231(9)(b) on the purchase of telecommunications services and
WHEREAS, the City Commission of the City of Miami Beach has determined
that the public service tax for such telecommunication services shall be equal to seven
(7) per cent of the payments received by the seller of the taxable item from the
purchaser for the purchase of such service; and
WHEREAS, due to such levy, it is necessary to amend and clarify existing
provisions of the City ordinances which currently impose certain taxes.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. That the title of Chapter 41, Article IV and Section 41-37 of the City
Code of the City of Miami Beach, Florida, is hereby amended,
respectively, to read as follows:
Article-IV, Tax en Sales el Elee#iei y, Metered er Battled Gas, Fuel
Oil and Telephone Serviee,
Article IV. Tax on Sales of Electricity, Metered and Bottled Gas,
Fuel Oil, and Telecommunication Services.
See. 4l-374 Tax-levied; amount,
Thefe-is !Ref eby levied by the eity ea each aAd evefy sale made OR and
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after Oeteber 45, 4988 &n the elty, ref billings based eft meter
readings ea of after November 45, 4989 of eieetr-ie4ty, metered er
bett-led gas {natural er manufactured), and telephone seriee, a tax of
ten pefeent upeR the charge made by the seller theree€i and there is
hereby 4eiied by the city eft each and every sale made ea and after
Jane 43, 4984 lft the efty a tax of fear cents per galley of fuel eil
upeR the charge made by the seller thefee€i which tax shall, in every
ease, be paid by the parehaser fer the use of the city to the seller of
such eleetrleity, metered of betted gas, telephone service, er fuel
oil, at the time of pay-ing the charge therefor, to the seller thefeefi
but Ret less often than mental
{a) For the purpose of this article, the wards ='fuelail'-' as used
herein shall mean all Banker E, 414, number 4, 2, 3, 4, 5 of 6
fuel ail, and kereseRel er any cembinatien thereof, or lighting
heating, eeeking, power er any ether purpose delivered to any
purchaser thereof w-ithiR the e4ty.
SECTION 41-37. Definitions.
For the purposes of this Article, the following words and phrases shall
have the meanings respectively ascribed to them by this section:
Purchase. Every act or transaction whereby possession of, utilization
of, control over or title to electricity, metered gas, bottled gas, fuel
oil and telecommunication service, and the duty and obligation to pay
therefor, become vested in the purchaser within the corporate limits
of the city, but such term shall not pertain to nor include any such
act or transaction when undertaken or performed by an agency or
instrumentality of the United States government, the state, the
county or a municipality.
Purchaser. Every person or agency legally liable for the payment of
electricity, metered gas, bottled gas, or fuel oil delivered, or
telecommunication service rendered to him, by a seller, unless such
person is specifically exempted by Section 41-40.
Seller. Every person delivering electricity, metered gas, bottled gas,
or fuel oil, or rendering telecommunication service to any purchaser
thereof.
Telecommunications Service. Any such service as defined in Florida
Statutes § 203.012(5).
Telecommunications Service Provider. A business entity licensed by
the Federal Communications Commission, the Florida Public Service
Commission, or both, to provide one or more kinds of
telecommunications service.
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Taxable Telecommunications Service Purchase. Means and includes
all purchases of telecommunications service provided within the city,
which service originates and terminates in the State of Florida. If a
telecommunications service provider does not have the technological
means-to determine if a purchase is provided within the city, the
telecommunications service provider shall calculate the taxable
telecommunications service purchase based upon the total amount
billed for telecommunications service to a telephone or telephone
number, a telecommunications number or device, or a customer's
billing address located within the municipality. Excluded from the
definition are public telephone charges collected on site, charges for
any foreign exchange service or any private line service (except when
such services are used or sold as a substitute for any telephone
company switched service or dedicated facility by which a telephone
company provides a communication path), access charges, and any
customer access line charges paid to a local telephone company.
Telecommunications service as defined in Florida Statutes §
203.012(5)(b) shall be taxed only on the monthly recurring customer
service charges excluding variable usage charges.
Fuel Oil. The words "fuel oil" as used herein shall mean all Bunker C.
• Oil, number 1, 2, 3, 4, 5 or 6 fuel oil, and kerosene, or any
combination thereof, for lighting, he.i:ing, cooking, power or any
other purpose delivered to any purchaser thereof within the city.
(Ord. No. 1611, S1; Ord. No. 1710, Sl; Ord. No. 1785, 31;
Ord. No. 1849, 3l; Ord. No. 1935, 31; Ord. No. 76-2072, SI;
Ord. No. 79-2180, SI; Ord No. 80-2228, :11; Ord. No. 84-2413, Si.)
SECTION 2. That Section 41-38 of the Code of the City of Miami Beach, Florida
is hereby amended to read as follows:
Section 41-38. Collect-les and remittance te eity fegaired by seller-,
it shall be the duty of every seller of ele€tfic4ty-, metered of bettied
gas 4Ratufa-1 of manufactured}, telepheRe service of fuel eii te €elleet
4fem the purchaser-, ter the use of the E4ty-, the tax hereby 4ev-ied at
the tiFne e4 €elleeting the selling price charged ref each tfaRsaetien,
and te fepert and pay ever-s en of befefe the 444teef+th day e4 each
calendar FneRth ante the city finance difeeter afl such taxes fey+-led
and €elleeted dac-iRg the preceding calendar menta, 4t shall be
uftlawfai 4ef any seller te collect the pf-ice of any sale e4 eieetfieityj
metered er bettied gas -(natural of manufactured}, telephone sefviee
of fuel e44 w4theut3 at the same time, eelle€ting the tax hereby levied
-in respect te such sale-, uR.less such seller shall elect te assume and
pay such tax witheut eelle€tisg the same ffem the purchaser-. Any
seller failing
te eelleet such tax at the time e€ eelle€ting the pr-iee of
any sale, where the seller has Ret elected te assume and pay saeh tax-,
shall be liable te the city fec the ameaet of saeh tax -is like maRRef
as 44 the same has been actually paid te the seller-, and the city
finance difeetef shall cause te be bfeaght all suits, eiaims, and
a€tieRs and te take all pfeeeedisgs iR the same of the city as may be
Reeessafy ref the feeevery of such tax,iR€iad4Rg the allewasee of
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feaseRable attefRey tees te the city ter the payment et-its attecReysi
prey-ideal however, that the seller shall Ret be liable ter the payment
et saeh tax apart aReelleeted bills. 44 any pafehaser shall tail, Reg-legit
OF Able te pay te the seller the seller's charge and the tax hereby
vestee w+th the fight, pewer and anther-ity te immediately
diseeatiRae -farther service te sada parehasef uhtil the tax and the
sellers bill have been paid tR 441.
Sec. 41-38. Rate and amount of tax on purchase of electricity,
metered :as bottled :as and fuel oil .ublic utilit
services.
There is hereby levied and imposed by the city upon every purchase in
the corporate limits of the city of electricity, metered gas, bottled
gas, and fuel 3i1. included in or reflected by any bills required to be
rendered by the seller to the purchaser hereunder, a tax based upon a
charge made by the seller thereof, as follows:
(1) When the seller renders a bill to the purchaser to cover such
purchase made during the period of time to which such bill is
applicable, the amount of tax shall be ten (10) per cent,
exclusive of governmental charges and taxes, of the total
amount shown on such bill as due Ind payable on account of the
purchase of electricity, metered gas, bottled gas. The amount
of tax on the purchase of fuel oil shall be four cents ($0.04) per
gallon. The total amount of taxes due pursuant to this section
shall be computed to the nearest whole cent.
(2) In the use and application set out in this section, purchases of
electricity, metered gas, bottled gas, fuel oil, shall be
considered and treated as constituting and being distinct and
unrelated classes of purchases, and in the event that more than
one such class shall be shown upon the same bill, the amount of
excise tax payable pursuant hereto shall be determined and
computed for each such class separately. (Ord. No. 1611 §1; Ord
No. 1849 §2; Ord. No. 84-2413 §2).
SECTION 3. That Section 41=39 of the Code of the City of Miami Beach, Florida
is hereby amended to read as follows:
Section 41-39. Records et sales feVetiFeEi te be kept by seller.
Each and every seder et eleetfiefty, metered er bettled gas (Ratafal
er maRataetared), -fuel ell and telepheRe service shall keep eemplete
records shewiRg all sales iR the eity et such eemmedities er sefviee,
which feeerds shall shew the price charged apeR each sale, the date
thereof and the date et payment thereter, and such records shall be
kept epeR ter 4RspeetieR by the duly a ether-iced agents et the eity
dariRg basiRess hears et all business days, and such duly anther-ized
agents et the e4ty shall have the right, pewef and aatherity te make
such tfaRsefipts thereat daA*g such times as they may desire,
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Section 41-39. Telecommunications Public Service Tax.
(1) There is hereby imposed by the City of Miami Beach a public
' 1141rvice tax of seven percent (7%) upon purchases within the
city of taxable telecommunications service as authorized by
Florida Statues S 166.231. Such tax shall be levied upon the
total amount billed for taxable telecommunications service
provided within the city; or, if the location of the
telecommunications service provided cannot be determined,
upon the total amount billed for telecommunications service to
a telephone or telephone number, a telecommunications number
or device, or a customer's billing address located within the
city.
(2) When the seller in accordance with its rules and regulations
renders a bill to the purchaser to cover purchases made during
the period of time to which the bill is applicable, the amount of
public service tax shall be exclusive of governmental charges
and taxes, shown on any such purchases, for the total amount.
(3) The seller is required and it shall be his duty to render to each
purchaser bills covering all such purchases made, and the
amount of such public utility tax be entered and shown by
the seller as a separate item on each such bill and shall become
due and payable under the rules and regulations of the seller,
provided and to the extent that such bill are subsequently paid,
(4) The purchaser is required and it shall be his duty to pay such
public utility tax to the seller, as agent for the City, at the
time of the payment of each such bill. The seller is hereby
authorized and required and it shall be his duty to collect such
public utility tax from such purchaser at the time of the
payment of each such bill and to remit the same to the City in
accordance with the provisions hereinafter stated.
(5) For the purpose of compensating the seller, the seller shall be
allowed one (1) per cent of the amount of the tax collected and
due to the City in the form of a deduction from the amount
collected for remittance. The deduction is allowed as
compensation for keeping of records, collection of tax and
remitting the same.
(6) The city shall provide to a telecommunications service
Provider upon its re•uest a current street location map of the
city, for use by the provider of the telecommunications service
in calculating the proper amount of the tax payable to the city.
The city shall be entitled to collect a fee equal to the actual
cost of providing the information to the telecommunications
service provider requesting it. (Ord. No. 1611, J1; Ord. No. 1849
§3).
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SECTION 4. That Section 41-40 of the Code of the City of Miami Beach, Florida
is hereby amended to read as follows:
Sect 41-40. Exemptions -from Tax- Federal and state agencies
and fecegnized churches in the state e€ Flefida
when use is ber elareh pimpeses.
The federal gevefnment, the state and peliti€al subdivisions and
agencies thereof. and a feeegnized chafeh in this state when-its use 1s
exclusively ref chafeh pafpeses are hereby exempted if em payment
of the tax hereby lev-ied.
Section 41-40. Exemptions from Tax
(a) Purchases by the United States government, the State of
Florida, the county, a municipality, any recognized church in
this state if used exclusively for church purposes, and purchases
of local telephone service or other telecommunications service
for use in the conduct of a telecommunications service for hire
or otherwise for resale are exempt from taxation under this
ordinance. All exemptions from taxation provided for under the
terms described above shall be specifically designated by the
City Finance Director on a tax exemption certificate which
shall be provided to the purchaser by the City.
(b) The tax herein above levied shall not apply to coin-box
telephones.
(c) The tax hereinabove levied shall not apply to the purchase of
metered or bottled gas (natural or manufactured) or fuel oil
purchased by a private or public utility, either for resale or for
use as fuel in the generation of electricity, or the purchase of
fuel oil or kerosene for use as aircraft engine fuel or propellant
or for use in internal combustion engines shall be exempt from
taxation hereunder. (Ord. No. 1611, §1; Ord. No. 84-2413 §3).
SECTION 5. That Section 41-41 and Section 41-41.1 of the Code of the City of
Miami Beach, Florida, is hereby amended to read as Sec. 41-41
Records to be kept by seller; inspection of records; transcripts, etc;
remittance to City.
Sec. 41-41. Same- Coin-box telephones,
The tax hefeinabeve levied shall net apply to eein-bexc te!ephenes,
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See. Same - Gas of fuel eil purchased by utilities; fuel eil
of kerosene aged as aicEFaft engine fuel er
pfepellant of ler use fn vernal eembastien engines.
The fax hefeiRabeve 4e'ied shall Ret apply to the pefehase of metefed
of att-led gas 4Ratefal of maaafaetefed4 of feel eil pefehased by a
pr-ivate of pa#4ie utility eithef fef fesale of fef ase as 4eel R the
geRefatieR of eleetfieity-, of the pefe lase of fuel oil of kefeseRe fef
use as a4fefa4t engine feel of pfepeflant of 4of use fR -intefnal
eembest-ieR eagiRes shall be exempt 4f em taxat4eR hefeiRdef.
Section 41-41. Records to be kept by seller; inspection of records;
transcripts, etc.; remittance to City.
(a) Every seller is hereby required by the Federal Communications
Commission and the Florida Public Service Commission to
establish and maintain appropriate accounts and records of all
purchases of electricity, metered gas, bottled gas, fuel oil, and
telecommunications service within the corporate limits of the
city, which records shall show the price charged upon each
purchase, the period of time covered thereby, the amount of
tax levied and imposed hereunder, and the date of payment
thereof, and said records shall be kept open for inspection by
the duly authorized officers or agents of the city during
business hours on all business days upon 60 days' notice and said
duly authorized officers or agents of the city shall have the
right, power, and authority to make such transcripts therefrom
during such times as they may desire.
Any such information received by the City is confidential and is
not subject to the provisions of Florida Statutes § 119.07(1).
The City Finance Director is hereby authorized and empowered
to promulgate from time to time such rules and regulations
with respect to the establishment and maintenance of such
accounts and records reasonably necessary to carry into effect
the purpose and intent of the provisions hereof.
(b) Every seller is hereby required to execute and file no later than
the twentieth (20th) day of each month at the office of the
finance department a statement setting forth the amount of
such public service tax to which the City became entitled under
the provisions hereof on account of bills paid by purchasers
during the preceding month, and contemporaneously with the
filing of such statements, shall pay the amount of such public
service tax to the finance department. In the event that any
purchaser refuses to pay such tax specifically, then seller shall
promptly inform the City of the name and address of such
purchaser, and the amount of tax withheld by said purchaser.
(Ord. No. 1611 § 1).
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SECTION 6. That Section 41-42 of the Code of the City of Miami Beach, Florida, is
hereby amended as follows:
Seati-42. W#e talc may be competed en aggregate ametiet el
sales.
�fl all eases where the seller of eleetf-ie4t,, metered of bettfed gas 4Ratural
or Fhanufacturee4, fuel oil or telephehe sefviee eelleets the price thefeef at
r ehthly pefieds, the tax hereby 4e4kied may be eer puted eh the aggregate
arneuflt of sales duf-iflg such per-ie4 pre§Lieleell that the ameunt of tax to be
eelleeted shall be the heafest whole eery to the ameuflt eemputed.
Sec. 41-42. Reports of deliveries for resale.
Every manufacturer, distributor, wholesaler or seller who shall deliver -
electricity; metered gas, bottled gas or fuel oil service to any seller or
other person having a place of business in the corporation limits of the
city, or licensed to do business therein, to be sold or resold to ultimate
purchasers, shall report to the City Finance Department semi-annually, as
of June 30 and December 31, the names and addresses of such sellers or
other persons, and the quantities received by each of them during the
preceding six (6) months, such reports to be filed not later than one month
after the close of each semi-annual period.(Ord. No. 1611, 11; Ord. No.
1849, J4.)
SECTION 7. That Section 41-43 of the Code of the City of Miami Beach, Florida,
is hereby amended as follows:
Sec. 41-43. Penalty fer violations.
Ahy purchaser w-ilfully fa44ing of refusing to pay the tax hereby
-imposed-, where the seller has het elected to assume afld pay such tax,
and any seller v-ielat-ing the pre ens hereof, of any etf-ieef, agent or
empleyee of any seller v-ielat-ing the prey-siohs hereof shall be
punished as prev-ided by sect eh 4-8.
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Section 41-43. Penalties.
(a) 'it shall be unlawful and a violation hereof for any purchaser
identified in this Article to evade the payment of the public
service tax provided for herein or any part thereof, or to fail or
neglect to pay such tax within thirty (30) days after same has
become due and payable, unless the seller, as identified in this
Article, has elected to assume and pay such tax, or for any such
seller to fail or refuse to pay to the city all amounts of tax
payable to the city by the such seller, or to fail or refuse to
keep the accounts and records required in this Article or to set
forth any erroneous false information therein with the intent to
defraud the City, or to refuse to permit the City or its duly
authorized agent, to examine such accounts and records; and
any such purchaser willfully violating any provision of this
Article, or any such seller or any officer, agent or employee of
the such seller willfully violating any provision of this Article,
shall be guilty of a violation of law, and shall, upon conviction,
be punished as provided in section 1-8 of this Code.
(b) In addition to any penalties imposed above, any seller who fails
to remit or is delinquent in remit:ing tax due under this article
shall pay interest at the rate of 10% per annum or the rate as
specified by Florida Statute§687:01i;whichever is higher on the
unpaid amount of tax from the date on which the tax first
became delinquent until paid.(Ord. No. 1611, §1.)
* * *
SECTION 8. The tax authorized by this Ordinance shall apply to services rendered
and billed on or after the effective date of this Ordinance.
SECTION 9. Repealer.
That all ordinances or parts of ordinances in conflict herewith, be and
the same are hereby repealed.
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SEC TION 10. Severability.
If ay. section, sentence, clause or phrase of this ordinance is held to
be;„waiid or unconstitutional by any court of competent jurisdiction,
then said holding shall in no way affect the validity of the remaining
portions of this ordinance.
SECTION 11. Effective Date.
That this Ordinance shall take effect (10) days after adoption on
July 25, 1987
PASSED and APPROVED this 15th day of July , 1987
L
AYOR
• Attest:
FORM
/
CITY CLERK -�
1st Reading - June 17, 1987
2nd Reading - July 15, 1987(as amended)p�te_7.^6? - -,
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