Preventing victimization and providing a way for seniors to contribute to the safety of all Floridians
Rev 10/07 Form SVC11
1 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. CaseAL00395
J. Caravella
Preventing victimization and providing a way for seniors to contribute to the safety of all Floridians Rev 10/07 Form SVC11 2 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. CaseAL00395 Activity Record
Folder Name: AL00395 Konish
Date Handled by Description of Action Taken 04/10/14 J. Caravella Mr. Konish (comp) reports and supplies documents regarding two questionable taxing activities by Gainesville Regional Utility (GRU), a municipal utility, upon its residential and commercial customer bills;
1) the imposition of a 2.5641% Florida Gross Receipts Tax compared to the statutory limit of 2.5%, and
2) the collection of a 10% Gainesville Electric Utility Tax upon non-consumable items compared to the statutory limit of such municipal tax applicable only to the purchase of consumed electricity.
Regarding #1 above the comp references FL Statute 203.01:
203.01 Tax on gross receipts for utility and communications services. (1)(a)1. A tax is imposed on gross receipts from utility services that are delivered to a retail consumer in this state. The tax shall be levied as provided in paragraphs (b)-(j).
(b)1. The rate applied to utility services shall be 2.5 percent.
Further research by the undersigned found that also applicable is Florida Department of Revenue (FL DOR) Administrative Rule 12B-6.0015:
12B-6.0015 Imposition of the Gross Receipts Tax.
(3) SEPARATELY ITEMIZED CHARGES. (a) A distribution company may wholly or partially separately itemize the gross receipts tax on the customers bill, invoice, statement, or other evidence of sale. However, the gross receipts tax is imposed on the privilege of doing business, and it is an item of cost to the distribution company. The distribution company remains fully and completely liable for the payment of the tax, even when the tax is wholly or partially separately itemized on the customers bill, invoice, statement, or other evidence of sale. When the tax is wholly or partially separately itemized, every person, including governmental units and charitable and religious organizations, is liable for the payment of the tax to the distribution company. (b) Example: A distribution company bills its customer for both the electricity and the transportation of the electricity. Tax is imposed at the rate of 2.5 percent of the distribution companys gross receipts for utility services. When the distribution company separately itemizes Florida gross receipts tax on a customers billing, the amount of gross receipts tax is
Preventing victimization and providing a way for seniors to contribute to the safety of all Floridians Rev 10/07 Form SVC11 3 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. CaseAL00395 calculated at the rate of 2.5 percent of the total amount billed for the electric services, including the amount separately itemized as Florida gross receipts tax. Customer Billing: Electric service amount $100.00 Florida gross receipts tax $ 2.56 * Total amount of billing $102.56 * Calculation of separately itemized Florida gross receipts tax: Total amount of billing $102.56 x Gross Receipts Tax Rate 2.5% Total tax to be separately itemized $ 2.56
It therefore appears plausible that a factor of 2.56% is recognized by the above FL DOR Rule example. Applying 2.5641% to an aggregate, itemized subtotal, results in the same Total tax ($2.56) as cited in the above example; so no further action will be taken on #1.
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In regard to comps #2, his Florida statutory reference is Florida Statute (FS) 166.231(1)(a):
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. (bold/color/underline for emphasis)
Research by the undersigned with the FL DOR (Carla Bruce 850-717-6315) found that the DOR has no Rule regarding FS 166.231(1)(a) because it deals with a municipal tax, not a state tax. As noted in the above statute;
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. (bold for emphasis) Purchase of electricity is defined in this statute as;
Purchase of electricity means the purchase of electric power by a person who will consume it within the municipality. (bold for emphasis)
Preventing victimization and providing a way for seniors to contribute to the safety of all Floridians Rev 10/07 Form SVC11 4 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. CaseAL00395 City of Gainesville ordinance provides for the tax; http://library.municode.com/index.aspx?clientId=10819 Sec. 25-16. Definitions. Purchaser shall include any person, firm, corporation, partnership, society, club or association of persons acting together as a unit who purchase or cause to be purchased for consumption utility service within the corporate limits of the city. Sec. 25-17. Levy. (a) There is hereby levied by the city on each and every purchase in the city of electricity, metered or bottled gas (natural, liquefied petroleum gas, or manufactured), and water service, a tax of ten percent of the charge made by the seller of such service or commodity. .
as does Alachua County ordinance;
http://library.municode.com/index.aspx?clientId=10343 Sec. 39.6.02. Imposition of tax. There is hereby levied by the county, within the unincorporated area of Alachua County, a public service tax upon each purchase of electricity, metered or bottled gas (natural, liquified petroleum gas or manufactured), telecommunications service as provided herein, and water service. The tax upon each purchase of electricity, metered or bottled gas (natural, liquified petroleum or manufactured), and water service shall be in an amount equal to ten percent of the payments received by the seller of the tangible item or service from the purchaser for the purchase of such item or service. .
and both mostly reflect controlling FS 166.231(1)(a).
On bills, within Gainesville the 10% municipal tax is known as Gainesville Util Tax. Outside Gainesville this 10% tax is known as County Elec Util Tax.
GRU collects 10% municipal tax for electric purchase upon its customers inside the city. GRU also collects a 10% Alachua County tax for electric purchase upon its customers outside the city. Included in the aggregate upon which the 10% tax is charged are non-electric purchases such as an Electric Customer Charge, which appears to have begun in November 2010 (itemized as and 1 below).
The complaint regarding GRUs 10% tax upon electricity purchased for consumption, as articulated by the complainant, is that GRU is improperly applying the 10% tax to non-consumable electric charges; therefore, GRU is collecting money it is not entitled to have: Research of residential electric bills and GRU found that the 10% monthly tax has been and is applied to:
1 Electric Customer Charge [non-consumable] 2,3,4 Energy Use Tier(s) [consumable] 6 Florida Gross Receipts Tax [non-consumable] 7 Electric (County) Surcharge [non-consumable]
GRU's BILL CALCULA1ION OI J0 1AX 8OURCE: https://www.gru.com/Portals/0/Legacy/Pdf/calcul atingElectric.pdf 1
Preventing victimization and providing a way for seniors to contribute to the safety of all Floridians Rev 10/07 Form SVC11 5 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. CaseAL00395 1 The Electric Customer Charge (ECC) is a fixed monthly fee described by GRU as:
Each utility service has a fixed customer charge to recover those costs that GRU must incur to provide service whether or not any consumption is used. Meter repair and replacement expenses, monthly meter reading expenses and the costs of producing and mailing the utility bill are examples of such costs. Source:http://www.gru.com/MyHome/Content/BillDefinitionsforRe sidentialCustomers.aspx4
The 2010 residential ECC was $8.45 10% tax = $.84/mth The 2011 residential ECC was $8.67 10% tax = $.87/mth The 2012 residential ECC was $8.67 10% tax = $.87/mth The 2013 residential ECC was $11.90 10% tax = $1.19mth The 2014 residential ECC is $11.90 10% tax = $1.19mth Source:http://www.gru.com/MyHome/Content/BillDefinitionsforRe sidentialCustomers.aspx4 GRU serves approximately 82,000 residential customers. (82,128 for 2012 as cited in GRU Storm Hardening Report to the Florida Public Service Commission Pursuant to Rule 25-6.0343, F.A.C. Calendar Year 2012)
Non-residential ECC for 2013 varies with consumption /demand; set at $30.00, $100.00, or $350.00. Source:http://www.gru.com/MyHome/Content/BillDefinitionsforRe sidentialCustomers.aspx4 GRU serves approximately 10,000 non-residential customers. (10,428 for 2012 as cited in GRU Storm Hardening Report to the Florida Public Service Commission Pursuant to Rule 25-6.0343, F.A.C. Calendar Year 2012)
Based upon the 10% municipal tax collected only from residential customers and only on the fixed, non-consumable Electric Customer Charge (ECC), the amount collected in 2010 from 82,000 customers = $ 137,760.00 (Nov & Dec) 2011 from 82,000 customers = $ 856,080.00 2012 from 82,000 customers = $ 856,080.00 2013 from 82,000 customers = $1,170,960.00 2014 from 82,000 customers = $ 292,740.00 (Jan Mar) Total = $3,313,620.00
This Total does not account for the 10% municipal tax collected on the variable monthly non-consumable residential charges for 6 Florida Gross Receipts Tax or 7 Electric Surcharge. Nor does this Total account for the 10% municipal tax upon non-residential 1ECC, 6 Florida Gross Receipts Tax or 7 Electric Surcharge.
It would appear the complainant may be due a minimum refund of $40.41 from November 2010
Preventing victimization and providing a way for seniors to contribute to the safety of all Floridians Rev 10/07 Form SVC11 6 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. CaseAL00395 through March 2014 from just the 10% municipal tax upon his ECC. A query letter to GRU will be sent by the undersigned. This proposed refund does not take into account the 10% tax paid on his other monthly taxed non-consumables described in detail hereafter:
7 The Electric Surcharge is a variable monthly fee described by GRU as:
The Florida Public Service Commission has authorized an electric surcharge be levied on electric charges to customers receiving electric service outside the city limits and equal to the utility tax (10%) levied on electric charges to customers receiving electric service inside the city limits. [Sec. 27-27(c), Gainesville Code of Ordinances] a
Source:http://www.gru.com/MyHome/Content/BillDefinitionsforRe sidentialCustomers.aspx4 or https://www.gru.com/MyBusiness/Content/BillDefinitionsforNonres identialCustomers.aspx4surcharges
For out-of-municipality customers this Surcharge is part of an aggregate (+ 1 & 6 non-consumables) taxed at 10% becoming GRUs County Elec Util Tax upon a GRU bill.
a Sec. 27-27. Base rates for retail service. (a) Rates. The rates to be charged and collected for electric energy furnished by the city to retail consumers shall be in accordance with the schedule set out in Appendix A. (b) Taxes. An amount equal to all applicable taxes imposed against the sale or consumption of electric energy shall be added to the rates hereinabove set forth. The United States of America, the State of Florida, and all political subdivisions, agencies, boards, commissions, and instrumentalities thereof, and all recognized places of religious assembly of the State of Florida are exempt from the city's utility tax. (c) Surcharge for consumers outside city limits. The rates to be charged and collected by the city for electric energy furnished by the city outside of its corporate limits to consumers of retail electric service shall be the base rates as set forth above, plus a surcharge equal the amount of the city utility tax charged consumers inside the city limits; provided, however, that the United States of America, the State of Florida, and all political subdivisions, agencies, boards, commissions, and instrumentalities thereof and all recognized places of religious assembly of the State of Florida are exempt from the payment of the surcharge imposed and levied thereby. (d) Availability. This service is available to consumers both within and outside the corporate limits of the city. * * * * * * * * * APPENDIX A SCHEDULE OF FEES, RATES AND CHARGES UTILITIES: (1)Electricity: f.1. Base rate. The rates to be charged and collected for electric energy furnished by the city to consumers for residential service are hereby fixed as follows: (i) Non-time-differentiated rate. All residential customers may elect service at this rate: (A) Customer charge, per month .....8.67 (B) First 250 kilowatt hours per month, per kWh . . .
6 The Florida Gross Receipts Tax is a variable monthly tax described by GRU as:
Chapter 12B-6 of the Florida Administrative Code levies a 2.5% tax on the gross receipts of electric and gas industries in the State of Florida and allows this amount to be recovered from all customers
Preventing victimization and providing a way for seniors to contribute to the safety of all Floridians Rev 10/07 Form SVC11 7 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. CaseAL00395 regardless of tax exempt status. These tax revenues are passed directly to the State and are used for Public Education Capital Outlay funding. The DOR factor for the Florida Gross Receipts Tax Adjustment is determined by the Department of Revenue and may be revised periodically. Source:http://www.gru.com/MyHome/Content/BillDefinitionsforRe sidentialCustomers.aspx4 or https://www.gru.com/MyBusiness/Content/BillDefinitionsforNonres identialCustomers.aspx4surcharges (see FL Admin Code 12B-6 above at p.2)
There were approximately 51,000 residential households within the City of Gainesville in 2010. Source:http://en.wikipedia.org/wiki/Gainesville,_Ilorida
Having insufficient data, no dollar amounts can be attributed to the 10% municipal tax collected from non-residential electric customers upon their ECC, Florida Gross Receipts Tax and Electric Surcharge.
John Caravella Seniors vs. Crime, Office Manager jcaravella@alachuasheriff.org
Preventing victimization and providing a way for seniors to contribute to the safety of all Floridians Rev 10/07 Form SVC11 8 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. CaseAL00395 04-18-14 J. Caravella GRU may reply to SVC that the complainant must apply for a credit or refund personally as stated in FS 166.234:
166.234 Public service tax; administrative provisions; rights and remedies. (6) Any purchaser of a service may request from a seller a refund of, or credit for, taxes collected from the purchaser upon the ground that the amounts collected were not due to any municipality. The seller shall issue the refund or allow a credit to the purchaser entitled thereto, if the request is made within 3 years following collection of the tax from the purchaser. In any event, a seller shall issue a refund or credit to a purchaser within 45 days following the sellers determination of the amount of taxes collected from the purchaser within the preceding 3 years that were not due to any municipality. (also see FS 166.235) Related to the purchase of electricity as defined at the bottom of p.3 above, the prior three years of the comps ECC equals approximately $33.01. As part of the Gainesville Elect Util Tax the municipality also taxes the Florida Gross Receipts Tax as part of the Gainesville Elect Util Tax for city residents. In addition to the ECC, the Florida Gross Receipts Tax is also a non-consumable item. Minimum calculations for the Florida Gross Receipts Tax for municipal residential accounts could add ~ $7.00 - $14.00 to the $33.01; however, the complainant would have to calculate the exact amount from his own monthly bills. GRU serves approximately 51,000 residential customers with the municipality.
In addition to the $33.01 above and the $7.00 - $14.00 above for the Florida Gross Receipts Tax, Alachua County residential accounts are also taxed upon an Electric Surcharge at 10% becoming part of the County Elec Util Tax. Portions of this Surcharge are non-consumable items that may add ~ $8.00 - $17.00 to a county residents potential claim. GRU serves approximately 31,000 County residential accounts.
In addition, both municipal and County residential accounts are taxed the 10% rate upon gas and water consumption plus Customer Charges for both commodities. County residential accounts are also charged the 10% rate on a non-consumable Gas Surcharge and Water Surcharge. FS 166.231(1)(a) defines the purchase of electricity, but not the purchase of gas or water; however the statute still appears to limit the 10% tax to only the purchases of electricity, metered natural gas and water service.
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