Florida State Sales Tax Remittance by gdj10182

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Florida State Sales Tax Remittance document sample

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									      Herbert E. Polson
City of St. Petersburg, Florida
Page 1
Industry Compliance Burden
    – AT&T
    – Files 39,912 State &
      Local Tax Returns
      Throughout the U.S.
• BellSouth
    – Files 39,148 State &
      Local Tax Returns
      Throughout the U.S.
• Average 3.15 Minutes
   between Tax Returns       Page 7
Industry’s
    – Difficulties Keeping Data
       Base Current with
       Annexations (FL Averages
       275 Annexations/Year)
    – Portable Numbers Make
       Jurisdictional Coding Difficult
       Even For the Most
       Sophisticated Systems
• Jurisdictions Dispute Over Border
   Areas
    – Roaming Charges Problems

                                         Page 7
Tax Erosion
   – Unless All
     Communication Services
     are Taxed the Same, then
     Nontaxable Service
     Providers will have a
     Competitive Advantage
     and Grow at the Expense
     of Other Members of the
     Industry and the State &
     Local Revenue Tax Base
                                Page 7
Industry’s
   – Competitive Neutrality
   – Excessive Compliance
      Burden
• Local Governments’
   – Tax Base Erosion
• State’s
   – Economic Development
   – Equitable Tax Policy
   – Voters’ Confusion
                              Page 7
              Cable TV
                                    Satellite TV



                                                      Interstate
Paging                                                  Long
                                                       Distance




   Wireline                                        Wireless
                         Internet                                  Page 3
              Cable TV
                                    Satellite TV



                                                      Interstate
Paging                                                  Long
                                                       Distance




   Wireline                                        Wireless
                         Internet                              Page 2
              Cable TV
                                    Satellite TV



                                                      Interstate
Paging                                                  Long
                                                       Distance




   Wireline                                        Wireless
                         Internet                              Page 4
              Cable TV              Satellite TV
                                                   Interstate
                                                     Long
                                                    Distance

Paging




                                                   Wireless
   Wireline                          Intrastate
                                       Long
                         Internet     Distance                  Page 5
              Cable TV              Satellite TV



                                                     Interstate
Paging                                                 Long
                                                      Distance




   Wireline                                        Wireless
                         Internet                                 Page 6
Old Laws
•   Sales Taxes on Telecommunication (7%)
•   Sales Tax on Cable (6%)
•   Local Option Sales Tax (up to 2.5%)
•   Telecommunications Gross Receipts Tax
    (2.5%)
•   Municipal Utility Tax - Option 1 (10%)
•   Municipal Utility Taxes - Option 2 (7%)    Replaced by the
•   Franchise Fees - Cable (5%)               Communications
•   Franchise Fees - Local Exchange             Services Tax
    Companies (1%)
•   Permit Fees for Long Distance             (Revenue Neutral)
•   Permit Fees for Cable
•   Permit Fees for Local Exchange
                                                             Page 8
    Companies
                      Cable TV   Satellite TV
       Paging                                   Interstate
                                                  Long
                                                 Distance




Wireline
                                                   Wireless


           Internet                                           Page 9
                 Cable TV       Satellite TV

     Paging                                    Interstate
                                                 Long
                                                Distance

Wireline


                                                  Wireless



      Internet

                 One Tax Base Does it All!                   Page 10
                                                          Tax Simplicity



 A Broad Tax Base with Lower Overall Tax Rates
Florida Communications Services Tax Simplification Act -
        •Provides for a statewide tax on all electronic
         communications services.
        •Provides for two separate tax rates; a state rate
         and a variable local rate.
        •Provides for administration by the Florida
         Department of Revenue.
        •Provides for continued revenue stream for
         local and state governments.
        •Provides for greater ease of understanding
         by communications services customer.                          Page11
Page 12
Page 13
• One Local Tax Rate per Locality
• One Transaction Tax Base, Return, Payment, Audit,
  Sourcing Method, and Uniform Definitions
• State Administered Jurisdictional and Rate Database
• Telecommunications Providers Held Harmless from
  Claims from Customers & Tax Jurisdictions for
  Situsing or Rate Errors
• Lead Time for Tax Changes to Enable Billing,
  Collection & Remittance
• Vendors Compensation to Cover Administrative Costs
                                                    Page 14
Page 15
•   Taxes should be economically neutral and equitable;
•   Taxes should be easy to administer and collect;
•   There should not be multiple taxation;
•   Tax reform should be revenue neutral;
•   Tax policy should be pro-growth; and
•   Tax reform should move toward taxing
    communications providers just like any other business .



                                                          Page 16
Communications Services Tax
    Simplification Act




  Simpler Taxes Are The Best!   Page 17
LOCAL GOVERNMENT
    CONCERNS
          Major Glitch Issues
• Public Records &
   Information Sharing
• Trust Fund
• Cable Franchises
• Management of Public
   Rights of Way
• Pass-through Providers
• Audits
     Outstanding Issues for 2002
•   Bundling of Internet Services
•   Zip plus four billing systems
•   Compensation from pass-through providers
•   Future Federal Legislation
For copies of legislation and staff
         analysis go to
‘www.leg.state.fl.us and look up
        Senate Bill 1878

								
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