7/3/2001 - Laserfiche WebLink

Home Browse Search

a ,+ +, e �*ti3p ( ; _ yax i } z �xs i p ift .<t. a. x » 3 i ,,,.. _. ,y,< a .. ..... . .r �,•' i> �Gn. t -.,., Y a;. 1. a .f '" `R . •.,T_S. ,±:' -. za zio- y. .e, �'. -. 'k'3`.i"`..' ll .x , .a. V nw fi r .H :. .. xyx $4 Str „fit } >¢`. ' tiS. „. tea' ✓ >4�+- Via' } y w"M.+z' yt 'P'"h r, PROOF OF PUBLICATION OF ADVERTISEMENT FOR HEARING IS ON FILE IN THE OFFICE OF THE CLERK TO THE BOARD The Board reviewed a Memorandum of June 26 , 2001 : Date : June 26, 2001 To : The Honorable Board of County Commissioners Thru : James E . Chandler, County Administrator From : Thomas W. Frame, General Services Director c. ) ' Subject : Public Hearing on Communications Services Tax Simplification Law Conversion Rate and Fee for the Issuance of R/W Permits for Communications Services Using Indian River County Rights-of-way BACKGROUND : During this immediate past legislative session , Chapter 2001 - 140 , Laws of Florida. the second part to the Communications Services Tax (CST) Simplification Act was passed. Last year ' s legislation. Chapter 2000-260 , Laws of Florida. consolidated seven state and local taxes on communication services into a single levv with a common rate and base . Local taxes consolidated are the cable franchise fee and local option sales tax for non-charter counties and cable franchise fees , public service tax , municipal franchise fee and local option sales tax for charter counties and municipalities. The legislation that passed last year left incomplete several significant pieces of the CST. This year ' s bill establishes both the maximum rates of taxation for local governments and hold harmless conversion rates . Additionally, the bill clarifies the audit authority of local governments as well as the regulatory authority that local governments maintain with respect to the rights-of-way . Previously , non-charter counties obtained revenue on certain communications services via cable franchise fees and the local option sales tax on a portion of the communications services subject to sales tax . Relative to cable franchise fees. Indian River County had received revenues from cable franchise fees equivalent to approximately $553 ,468 annually . The local option sales tax is paid to the county through the existing payment system from the Department of Revenue . The county received no revenue from public service tax (telecommunication services such as telephone, cell phones , beepers etc . ) since revenues could only be collected through taxes authorized to charter counties and municipalities . The Communications Services Tax (CST) Simplification Act eliminates the county ' s ability to continue to collect franchise fees from cable companies . Instead, the legislation now groups together a number of communication service companies along with the cable companies and established a conversion rate which is designed to be revenue neutral . That conversion rate will be applied against the total taxable base of all the communication companies and generate the same revenue that had been previously generated by the county ' s existing levies (franchise fee ) . The taxable base for Indian River County is $40 .397 , 155 . The conversion rate for Indian River County for a typical 12 -month cycle is 1 . 4% . During the first year, there will be a lag in local government ' s receipt of revenues due to the transition from the existing taxes to the new CST on October 1 . 2001 . Consequently , the first year ' s Conversion Rates have been grossed up to make up for the revenues that would have been received had there been no transition lag that conversion rate is set slightly higher at 1 . 5 % . Then the following year, the rate is adjusted slightly lower for a full twelve- month collection period at 1 .4% . The bill further sets a maximum conversion rate that a non -charter counry may charge which is 1 . 6°o or ? 06 more than the basic conversion rate identified for Indian River County . In order for Indian River County to avail itself of that additional percentage in the conversion rate of .2 %. it must adopt an ordinance and notify the Department JULY 312001 81K I 18 P G - 66 - t� ja+ t4x `Yat Y t t v w s '` rt s h t s + f r1 1 1 1 17