PREVENTING VICTIMIZATION AND PROVIDING A WAY FOR SENIORS TO CONTRIBUTE TO THE SAFETY OF ALL FLORIDIANS
Rev.01/11 Form SVC01
The Seniors vs. Crime project does not offer or provide legal services or legal representation. Any response provided Is not legal advice, is not a definite statement of the law, and is not a complete analysis of this area of inquiry.
SVC Case File AL00395
June 2, 2014
Nicolle Shalley Gainesville City Attorney 200 E. University Avenue, Suite 425 Gainesville, FL 32601 (352) 334-5011
Dear City Attorney Shalley:
Thank you for your reply dated May 28, 2014. This office is able to discuss factual research rather than legal authority concerning any matter. To that end, we are more interested in the Public Service Tax collected by GRU for the City of Gainesville rather than what is occurring elsewhere in Florida.
Your reply indicates the Gainesville municipal Public Service Tax is assessed by city ordinance against the purchase of electricity in apparent compliance with controlling Florida statute 166.231(1). This, too, is the statute relied upon and supplied to this office by our complainant.
Your reply also confirms Gainesvilles application of its municipal Public Service Tax extends beyond the purchase of electricity. In addition, the Gainesville municipal Public Service Tax adds tax to a non- electric power item GRUs Electric Customer Charge. You point out (p.3, para.5), Our research confirms that it is common practice throughout the State to apply the Public Service Tax to the customer charge). I would submit that action and reliance simply upon a common practice seems insufficient to add application of the Public Service Tax to items beyond the States legislative definition. Your reply quotes Florida statute 166.231(1)(a) and (b) that in pertinent part defines a persons purchase of electric power; that being the consumption of it and it being power." The singular exemption of Public Service Tax against a fuel adjustment charge may simply be due to its extremely close relationship to consumption.
Your reply (pages 2 and 3) commingle the terms purchase in the city of electricity, base rate and utility service regarding city ordinance and application of the Public Service Tax. This office is developing a more simplistic working tool for potential use by others to better understand this issue. I have attached a draft copy of this working tool/scenario and I would appreciate your input as it relates to the topic in question. Our premise is that a common practice or a city ordinance cannot supersede a state law.
Thank you for your kind attention to these matters.
Sincerely,
John Caravella SVC Office Manager Pam Bondi Attorney General Region Four Alachua County Sheriffs Office PO Box 5489 Gainesville, FL 32627-5489 352- 367- 4023 A Special Project of the Florida Attorney General 1 SVC CASE FILE AL00395 HYPOTHETICAL SCENARIO
Scenario , Question:
\ou lie in a municipality, in a motor home, which is connected to a municipal electric meter. 1he municipality generates electricity or its residents and you are connected to its electric serice and hae a meter rom the municipality. 1he municipality charges a ee or the meter een i no electricity is purchased. \ou create all your electricity by operating the motor home`s gasoline generator, thereore, you do not use or need municipal electricity. \our meter neer registers consumption. \ou obtain water rom your priate well so you do not purchase water serice. \ou do not hae cable teleision.
\our neighbor also has a motor home connected to its own municipal electric meter. \our neighbor uses municipal electricity, thereore, your neighbor`s meter registers consumption. \our neighbor obtains water rom a priate well and does not hae cable teleision.
Public Tax rules
(a) Your municipality levies a tax on the purchase of electricity.
The tax shall be levied only upon purchases within the municipality.
Purchase of electricity means the purchase of electric power by a person who will consume it within the municipality.
(b) The tax imposed by paragraph (a) shall not be applied against any fuel adjustment charge, and such charge shall be separately stated on each bill.
The term fuel adjustment charge means all increases in the cost of utility services to the ultimate consumer resulting from an increase in the cost of fuel to the utility.
(c) The tax in paragraph (a) on water service may be applied outside municipal boundaries to property included in a development if agreed to in writing by the developer of such property and the municipality.
Who will pay any Public 1ax?
YOU YOUR NEIGHBOR 2 The 2013 Florida Statutes
166.231 Municipalities; public service tax. (1)(a) A municipality may levy a tax on the purchase of electricity, metered natural gas, liquefied petroleum gas either metered or bottled, manufactured gas either metered or bottled, and water service. Except for those municipalities in which paragraph (c) applies, the tax shall be levied only upon purchases within the municipality and shall not exceed 10 percent of the payments received by the seller of the taxable item from the purchaser for the purchase of such service. Municipalities imposing a tax on the purchase of cable television service as of May 4, 1977, may continue to levy such tax to the extent necessary to meet all obligations to or for the benefit of holders of bonds or certificates which were issued prior to May 4, 1977. Purchase of electricity means the purchase of electric power by a person who will consume it within the municipality.
(b) The tax imposed by paragraph (a) shall not be applied against any fuel adjustment charge, and such charge shall be separately stated on each bill. The term fuel adjustment charge means all increases in the cost of utility services to the ultimate consumer resulting from an increase in the cost of fuel to the utility subsequent to October 1, 1973.
(c) The tax in paragraph (a) on water service may be applied outside municipal boundaries to property included in a development of regional impact approved pursuant to s. 380.06, if agreed to in writing by the developer of such property and the municipality prior to March 31, 2000. If a tax levied pursuant to the subsection is challenged, recovery, if any, shall be limited to moneys paid into an escrow account of the clerk of the court subsequent to such challenge.