- Committee -
SCS/SB 627 - Current law authorizes certain cities and counties to levy a tax on the gross receipts of businesses and services, including utility services such as electricity and natural gas. This act retains the current authorization for the tax but authorizes the cities and counties to also levy a tax, with voter approval, on consumers who purchase the utility services from any business entity not subject to the gross receipts tax. Cities and counties that currently impose a franchise fee or payment in lieu of taxes are required to charge a rental payment or similar charge for all business entities who transport or cause to be transported gas or electricity and who are not otherwise subject to a franchise fee or payment in lieu of taxes.
The act also clarifies the current sales tax treatment of telecommunications services. Sales of local and long distance telecommunications service to telecommunication subscribers through equipment for the transmission of messages and conversations are subject to sales tax. Specifically excluded from the definition of telecommunication service, and thus not taxable, are access to the Internet or to interactive computer services (except the amount paid for the telephone line or other telecommunication service, which remains taxable), answering services and paging services, private mobile radio services (except cellular services, personal communications services, and enhanced specialized mobile radio services, which remain taxable), and cable or satellite television or music services.
RUSS HEMBREE