title
COMMUNICATION SERVICES TAX RATE INCREASE (B)
Ordinance No. 0-07-38
An ordinance of the City of Gainesville, Florida, amending section 25-81 of the Code of Ordinances of the City of Gainesville relating to the communication services tax rate; increasing the local communication services tax rate in accordance with Chapter 202.20(2) Florida Statutes; providing directions to the codifier; providing a severability clause; providing a repealing clause; and providing an immediate effective date.
recommendation
The City Commission adopt the proposed ordinance.
explanation
FINANCE DEPARTMENT STAFF REPORT
When the Communications Services Tax became effective in October 2001, it replaced a number of revenue sources including a portion of municipal utility tax revenues and certain franchise fees previously received by local governments. Inherent in the law was a promise to local governments that their revenues, at least in the year of adoption, would be unaffected by the change in the law. Local governments were permitted to measure their revenues in the first fiscal year 2002 and make adjustments to their rates, including an adjustment for the revenues that should have been received.
The City of Gainesville originally adopted the rate that had been estimated as a proper replacement rate by the Department of Revenue. After the first six months of the new tax, City staff estimated the underpayment that had been received and adjusted its rates accordingly. Looking back, however, and using a full year's revenue from October 2001 through September 2002, it is clear that even our previous adjustment was underestimated. Now that we have complete information from that first year, and because this particular type of emergency rate-setting is anticipated to sunset July 1 of this year under a recently adopted bill, staff has proposed this ordinance.
Using the provisions of Chapter 202.20(2) Florida Statutes, staff is requesting a one-year catch-up r...
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