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T4: Michael R. Couuo, Jr., Village Man �
FROM: JoAnn Forsythe, Finance Director
. DATE: July 6, 2001
SUBJECT: Local Communications Services Tax
Pursuant to the attached letter from John C. Randolph, attorney for the
Village of Tequesta, regarding the proposed Resolution on the Local
Communications Service Tax the Village must decide:
• To charge permit fees for the use of its rights-of-way
" Or
• Take advantage of increasing the amount of the conversion rate
the State has computed for the Village
After performing calculations on the various taxes that will comprise the
new Telecommunications Service Tax I would suggest that we choose to
increase the amount of the conversion rate the State has computed for the
Village as a way to protect this revenue stream. When the 2001 conversion
rate of 4.4% was used to calculate the Village's potential income, the
Village had less than a 1% increase in this revenue stream. However, in the
following year using the State's reduced conversion rate of 4.1% the Village
had a potentia16.7% decrease in that same revenue stream.
It is important to note that should the Village choose to increase the amount
of the conversion rate the State has computed, the Village must notify the
Department of Revenue of such election by certified mail by July 16, 2001.
cc: Mary Wolcott, Village Clerk
Finance/Communications Svc. Tax Memo
To� � .
��R Flagter Center Tower, Suite 1100 Mailing Address
T O�-�S'I'ON 505 South Flagler Drive Post Oft'ice Box 3475
Q, C�ry � n/� West Palm Beach, Ftorida 33401 West Palm Beach, Florida 33402-3475
C7� J L VDlh7 .C.ri Zelephone (561) 659-3000 Facsimile (561) 832-1454
Attaraeys aad Counsei�rs
Johu G Randolp6, Esq.
Direct Dial: (561) 650-0458
�maiL• jrandolph(u�jones-foster.com
June 8, 2001 VIA FAX: 575-6203
Mr. Michael R Couzzo, Jr.
Village Manager
Village of Tequesta
Post Office Box 3273
Tequesta, Flarida 33469-0273 .
RE: Village of Tequesta
Local Communications Services Tax
Our File No. 13153.1
Dear Mike:
For your considera.tion I have prepazed a Resolution to adopt the additiona10.12°/a allowed by statute
under the Communications Services Tax Simplification Law in the event the Village opts not to
chazge permit fees for the use of its rights-of-way. I am sending this to you because if the Village
chooses to go tlus route it must notify the Department of Revenue of such election by certified mail
by July 16, 2001.
In addition to the above, a determination has to be made as to whether you want to take advantage
of increasing the amount of the conversion rate the Sta.te has computed for the Vitlage. I ha.ve
enclosed a draft resolution in regazd to that matter for your consideration.
Please conta.ct me so that we can discuss how you wish to move forward with this item.
Sincerely,
JONES, F S R, JOHNSTON & STLIBBS, P.A.
Jo C. Randolph
JCR/ssm
Enclosures