Lake Wales (Current through Ordinance 2023-17, Adopted 7-05-2023)
 Code of Ordinances
 Chapter 19. Taxation   
 Article II. Public Service Tax
  

  Article II. Public Service Tax  

§ 19-24. Definitions and rules of construction.
Latest version.

(a) When used in this chapter, the following words, terms or phrases shall have the meanings ascribed to them in this section unless the context clearly indicates otherwise:

City means the City of Lake Wales.

City clerk means the City Clerk of the City of Lake Wales or his/her designee.

City manager means the City Manager of the City of Lake Wales or his/her designee.

Electronic transfer means the use of the automated clearing house (ACH), or other electronic transfer system approved on a case by case basis, to send the public service taxes collected directly from the seller's bank to the bank so designated to receive such transfer.

Finance director means the Finance Director of the City of Lake Wales or his/her designee.

F.S. means the most recently published edition of Florida Statutes.

Fuel oil, for the purpose of this article, means an oil, including kerosene (coal oil), that is burned to supply light, heat or power; oil purchased for use in internal combustion engines is not taxable under this article.

Purchaser means a person, firm, corporation or other legal entity who purchases a service directly from a seller.

Remit and remittance means the sending by the seller and the receipt by the city of all taxes levied and collected pursuant to this article.

Seller means a person, firm, corporation, or other legal entity who sells directly to the purchaser; for purposes of this article, the seller acts as the tax-collecting agency of the city.

Telecommunications service means:

(1) Local telephone service, toll telephone service, telegram or telegraph service, teletypewriter or computer exchange service, or private communication service; or

(2) Cellular mobile telephone or telecommunications service, specialized mobile radio, and pagers and paging service, including but not limited to beepers and any other form of mobile and portable one-way or two-way communication, but does not include services or equipment incidental to telecommunications services enumerated in this paragraph such as maintenance of customer premises equipment, whether owned by the customer or not, or equipment sales or rental for which charges are separately stated, itemized, or described on the bill, invoice, or other tangible evidence of the provision of such service.

Utility service for the purpose of this article means electricity for light, heat or power; natural and manufactured gas, fuel oil or kerosene (coal oil) for light, heat or power; or water service.

(b) For the purposes of administration and enforcement of this chapter, unless otherwise stated in this chapter, the following rules of construction shall apply:

(1) The word "shall" is always mandatory and not discretionary; the word "may" is permissive.

(2) The words "he," "his," and other words denoting the masculine gender shall extend and be applied to females and to firms, partnerships and corporations as well as to males.

(3) Words used in the present tense shall include the future, and words used in the singular number shall include the plural and plural the singular, unless the context clearly indicates the contrary.

(4) Unless the context clearly indicates the contrary, where a regulation involves two (2) or more items, conditions, provisions, or events connected by the conjunction "and," "or" or "either…or," the conjunction shall be interpreted as follows:

a. "And" indicates that all the connected terms, conditions, provisions or events shall apply.

b. "Or" indicates that the connected items, conditions, provisions or events may apply singly or in any combination.

c. "Either…or" indicates that the connected items, conditions, provisions or events shall apply singly but not in combination.

d. The word "includes" shall not limit a term to the specific example but is intended to extend its meaning to all other instances or circumstances of like kind or character.

(Ord. No. 96-20, § 1, 11-20-96; Ord. No. 2001-19, § 1, 11-20-01)
§ 19-25. Applicability.
Latest version.

(a) The tax hereby levied shall apply to all sales of electricity, gas, fuel oil, or water service, whether delivered through the medium of a meter or other measuring device or otherwise, to premises located in the city.

(b) Telecommunications services are not taxed by the city as of October 1, 2001. The State of Florida levies a communications services tax on telecommunications services to include cable television service providers. Prior pledges of telecommunications service tax revenues for debt issues now apply to a portion of communications services tax revenues received from the state.

(Ord. No. 96-20, § 1, 11-20-96; Ord. No. 2001-19, § 1, 11-20-01)
§ 19-26. Public service tax levied.
Latest version.

(a) There is levied by the city on every purchase in the city of electricity, water service and metered or bottled gas (natural liquified petroleum gas or manufactured) a public service tax based upon the charge made by the seller in the amount of ten (10) percent on each sale, which tax shall in every case be paid by the purchaser for the use of the city to the seller at the time of paying the charge therefor, but not less often than monthly. The tax hereby imposed shall not be applied against any fuel adjustment charge, and such charge shall be separately stated on each bill rendered by the seller to the purchaser for the purchase of a utility service. The term "fuel adjustment charge" shall mean all increases in the cost of utility services to the purchaser resulting from an increase in the cost of fuel to the seller subsequent to October 1, 1973.

(b) There is levied by the city a tax of four cents ($0.04) per gallon on every purchase of fuel oil and a tax of one-half of one cent ($0.005) per gallon on every purchase of kerosene (coal oil) within the city which tax shall in every case be paid by the purchaser for the use of the city to the seller of such fuel oil or kerosene at the time of paying the charge by the seller therefor. The bulk station or dealer of such fuel oil or kerosene shall collect the tax from the retailer and report and pay the same to the city as provided in section 19-28. In the event any retail dealer shall purchase such fuel oil or kerosene from any dealer not operating a bulk station within the city, such retail dealer shall collect the tax and report and pay the tax to the city. The dealer responsible to the city for the payment of the tax, whether bulk, wholesale dealer or retailer, shall make a report to the city of the number of gallons of fuel oil or kerosene sold in the city subject to the tax as provided in section 19-28

(Ord. No. 96-20, § 1, 11-20-96; Ord. No. 2001-19, § 1, 11-20-01)
§ 19-27. Exemptions.
Latest version.

(a) The purchase of natural gas or fuel oil by a public or private utility, either for resale or for use as fuel in the generation of electricity, is exempt from taxation.

(b) The purchase of fuel oil or kerosene for use as an aircraft engine fuel or propellant or for use in internal combustion engines is exempt from taxation.

(c) The tax imposed by this article shall not apply to purchases in the city of electricity, gas, fuel oil, or water service by the following entities which are exempt from municipal taxation:

(1) The United States government;

(2) The State of Florida, its agencies and departments;

(3) Polk County, its agencies and departments;

(4) Polk County School Board;

(5) Lake Wales Housing Authority.

(d) The tax imposed by this article shall not apply to purchases of electricity, gas, fuel oil, or water service by the city.

(e) The tax imposed by this article shall not apply to purchases in the city of electricity, gas, fuel oil, or water service by any church which is recognized by the state and whose purchases are used exclusively for church purposes.

(f) The tax imposed by this article shall not apply to any purchase which is specifically exempted by federal or state law.

(Ord. No. 96-20, § 1, 11-20-96; Ord. No. 2001-19, § 1, 11-20-01)
§ 19-28. Collection of tax; responsibility of seller.
Latest version.

(a) It shall be the duty of every seller of electricity, gas, water, or fuel oil in acting as the tax-collecting agency of the city to collect from the purchaser, for the use of the city, the tax hereby imposed and levied at the time of collecting the purchase price charged for each transaction, and to report on forms prescribed by the city and pay over to the city all such taxes.

(b) It shall be unlawful for any seller to collect the price of any sale of electricity, gas, water, or fuel oil in the city without, at the same time, collecting the tax hereby levied in respect to such sales, unless such seller shall elect to assume and pay such tax without collecting the tax thereby levied from the purchaser; and it shall be unlawful for any seller of a utility service to fail to state a fuel adjustment charge upon which no tax is levied separately from all other charges upon which the tax is levied at the time the seller collects the charges and tax from the purchaser.

(c) Any seller failing to collect the tax at the time of collecting the price of any sale, where the seller has not elected to assume and pay such tax, shall be liable to the city for the amount of such tax in like manner as if the same had actually been paid to the seller; and a seller failing to show separately the amount of the fuel adjustment charge upon which no tax is levied at the time of collecting the charge shall be liable to the city for the amount of tax which would have been collected on the charge if the tax had been levied thereon. The city manager and city commission of the city shall bring or cause to be brought all such suits and actions and take all such proceedings as may be necessary for the recovery of such tax.

(d) Sellers shall remit to the city by hand-delivery, U.S. postal service or electronic transfer, on or before the twentieth day of each calendar month, all such taxes collected during the preceding calendar month except as provided in subsection (e) herein. In the event the twentieth day falls on a Saturday, Sunday or holiday, the time shall be extended additionally to the next business day following the Saturday, Sunday or holiday. The date of receipt of such taxes by the city will be the date postmarked by the U.S. postal service, or, if hand-delivered, the day received by the city clerk. If taxes are remitted by electronic transfer, the date of receipt will be the date received by the bank so designated to receive electronic transfers as indicated on the bank statement. Prior to making the initial remittance by electronic transfer, authorization to do so must be obtained from the city's finance director. If a seller elects to remit by electronic transfer, that seller shall thereafter always remit by electronic transfer unless approval is given by the finance director to discontinue the electronic transfer; a seller remitting by electronic transfer shall also forward to the city a monthly report of public service taxes collected as required in subsection (a).

(e) Sellers collecting less than twenty-five dollars ($25.00) of tax during the calendar month may remit such tax to the city on a quarterly or fiscal year basis at the discretion of the finance director. All such taxes imposed, levied and collected during the preceding calendar quarter or fiscal year shall be remitted to the city by hand-delivery or U.S. postal service on or before the twentieth day of the calendar month following the end of the calendar quarter or fiscal year. In the event the twentieth day falls on a Saturday, Sunday or holiday, the time shall be extended additionally to the next business day following the Saturday, Sunday or holiday. The date of receipt of such taxes by the city will be the date postmarked by the U.S. postal service, or, if hand-delivered, the day received by the city clerk. Sellers remitting on a quarterly or fiscal year basis shall not remit by electronic transfer.

(f) Effective January 1, 1997, when a seller fails to make a report or fails to pay the tax within the time required hereunder, interest will accumulate on the outstanding tax due on a daily basis at a rate of 0.0328767 percent (12%/365) from the delinquent date until paid in full; said interest shall be payable and collectible in the same manner as if it were a part of the tax imposed. The city manager and city commission of the city shall bring or cause to be brought all such suits and actions and take all such proceedings as may be necessary for the recovery of such tax and interest; provided that the seller shall not be liable for the payment of tax upon uncollected charges.

(g) If any purchaser shall fail, neglect or refuse to pay to the seller the seller's charge and the tax hereby imposed and as hereby required on account of the sale for which such charge is made, or either, the seller shall have and is hereby invested with the right, power and authority immediately to discontinue further service to such purchaser until the tax and the seller's bill have been paid in full.

(Ord. No. 96-20, § 1, 11-20-96; Ord. No. 2001-19, § 1, 11-20-01)
§ 19-29. Records of purchases; inspections.
Latest version.

(a) Each and every seller of electricity, gas, water, and fuel oil, in respect to sales on which a tax is hereby levied, shall keep complete records showing all sales in the city of such electricity, gas, water, and fuel oil, which records shall show the price charged upon each purchase (showing as separate amounts the fuel adjustment charge upon which no tax is collected and all other charges upon which the tax levied hereby is collected), the date thereof and the date of payment thereof, and shall during business hours on all business days be open for inspection by the duly authorized agents of the city, who shall have the right, power and authority to audit, examine, and make such transcripts of any and all business and/or sales records including those records stored on computer software or otherwise kept by electronic means, in any way pertaining to the sales, within the city limits during such times as they may desire. It shall be the duty of the finance director or his designee to inspect the records at least once every three (3) years in order to determine that the tax hereby imposed and levied is being properly reported and paid to the city by each seller of the service.

(b) Records not located with the municipal limits of the city must be furnished by the seller to the city within fourteen (14) days of written. Should the seller fail to comply with the written demand or notice, the city may authorize an agent or officer of the city to conduct an audit at the location where said records are maintained at the seller's expense.

(Ord. No. 96-20, § 1, 11-20-96; Ord. No. 2001-19, § 1, 11-20-01)
§ 19-30. Penalty for non-compliance.
Latest version.

(a) It shall be unlawful and an offense for a purchaser to willfully fail, refuse or neglect to pay the tax hereby imposed and levied and for a seller, or an officer, agent or employee of a seller, to willfully make a false report, fail to make a report or fail to pay the tax, or violate any other provision hereof. The person shall, upon conviction, be guilty of a class D offense or a civil fine not to exceed ten thousand dollars ($10,000.00).

(b) In addition to the penalty imposed by subsection (a), a person who willfully obtains an exemption number with the intent to avoid paying the tax hereby imposed and levied when the tax would otherwise be payable, or uses an exemption number to avoid paying the tax hereby imposed and levied when the tax would otherwise be payable, or procures or permits either of the foregoing shall upon conviction be liable to the city in an amount not to exceed three (3) times the amount of the tax that would have been payable in respect to the purchase or purchases for which the exemption number was used contrary to the provisions of this chapter. Conviction as used in this paragraph shall mean a finding of guilty by a court of competent jurisdiction whether or not adjudication of guilt is withheld; the term shall also include a plea of nolo contendere by such person.

(c) Additional fees may be assessed against sellers not complying with any provision of this chapter, said fee being based upon the actual cost incurred by the city in collecting the public service tax or obtaining any information or reports due.

(Ord. No. 96-20, § 1, 11-20-96; Ord. No. 2001-19, § 1, 11-20-01)
§ 19-31. Duties and responsibilities of city clerk.
Latest version.

(a) The city clerk shall perform the duties of tax collector in respect to collection of the public service tax.

(b) The city clerk shall maintain records of all known sellers of items taxable hereunder which records shall include the reports required to be filed by the sellers with the remittance of taxes due the city.

(c) The city clerk shall maintain, provide, update and make available to sellers an alphabetical listing of all street names within the city. Said listing shall meet all criteria established in F.S. § 166.231(9)(d).

(d) The city clerk shall notify in writing by certified mail any known seller of items taxable hereunder of any change in the city boundaries or in the rate of taxation. Said notification shall occur within seven (7) days of the adoption of an ordinance authorizing such change.

(e) The city clerk shall develop and implement procedures for the collection of public service taxes due the city which shall include notification of delinquent status and billing for interest due on late payments. A billing for interest due shall not be required when said interest is less than ten dollars ($10.00).

(f) The city clerk is authorized to refuse issuance or renewal of a local business tax receipt if the public service tax of the applicable business has become delinquent or remains unpaid.

(Ord. No. 96-20, § 1, 11-20-96; Ord. No. 2001-19, § 1, 11-20-01; Ord. No. 2006-47, § 3, 12-5-06)
§ 19-32. Deposit and use of public service taxes.
Latest version.

(a) All public service taxes received by the city shall upon receipt thereof be deposited in the general fund. Revenues derived from taxes levied on each separate service taxable hereunder shall be recorded in separate revenue accounts within the general fund for purposes of accounting therefor, but shall be authorized to pay any and all operating and nonoperating expenses of the city.

(b) Nothing contained in this article shall impair or affect the validity of pledges of revenues derived from public service taxes heretofore made by the city for the debt service requirements of obligations issued by the city.

(Ord. No. 96-20, § 1, 11-20-96; Ord. No. 2001-19, § 1, 11-20-01)