Judges: Robert A. Butterworth Attorney General
Filed Date: 5/19/1987
Status: Precedential
Modified Date: 7/5/2016
Mr. Tyrone E. May City Attorney City of Vernon 610 West Beach Drive Panama City, Florida 32401
Dear Mr. May:
You have asked the following questions:
(1) MAY THE CITY OF VERNON, AFTER ENACTING A PUBLIC SERVICE TAX OF 6 PERCENT PER TAXABLE ITEM OR SERVICE ON ELECTRICITY, BOTTLED AND METERED GAS, FUEL OIL, AND TELECOMMUNICATIONS SERVICES, PROVIDE FOR A MAXIMUM TAX OF $25 PER MONTHLY BILLING OF EACH TAXABLE ITEM OR SERVICE OF ELECTRICITY, BOTTLED AND METERED GAS, FUEL OIL AND TELEGRAPH SERVICES?
(2) IF SUCH A CAP IS PERMISSIBLE, MAY THE CITY OF VERNON PROVIDE THAT THE $25 TAX CAP BE APPLICABLE ONLY TO THOSE ITEMS ENUMERATED IN s.
166.231 (1)(a), F.S. (1986 SUPP.) (ELECTRICITY, BOTTLED OR METERED GAS, WATER SERVICE), AND NOT LOCAL TELEPHONE SERVICE, WHICH WOULD BE TAXED AT 6 PERCENT WITH NO CAP?
QUESTION ONE
You state that the City of Vernon recently enacted a public service tax pursuant to s.
Section
The tax shall be levied only upon purchases [of electricity, metered or bottled gas (natural liquefied petroleum gas or manufactured) and water service] 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.
See also, s.
A monthly tax cap of $25 per taxable item or service, in effect, exempts from taxation that portion of the taxable value of the item or service generating tax revenue in excess of $25. Section 2, Art. VIII, State Const., gives municipalities "home rule powers" which may be exercised for any valid municipal purpose, "except as otherwise provided by law." However, the taxing power of municipalities is not derived from s. 2(b), Art. VIII, State Const; rather, the origin of such taxing power and the limitations on its exercise are found in ss. 1(a) and 9(a), Art. VII, State Const., and such general or special laws concerning other taxes as may be enacted by the Legislature. See, AGO's 80-87 and 79-26 concluding that a municipality has no home rule powers with respect to the levy of excise or non-ad valorem taxes and exemptions therefrom, as all such taxing power must be authorized by general law. In exercising its taxing power, a municipality is limited to that taxing power expressly, or by necessary implication, conferred. See, AGO 79-26. Thus, as a general rule, "a municipality . . . has no inherent power to exempt from taxation property which it is authorized by statute or charter to tax, since, with some exceptions, delegation of power to tax does not include power to exempt from taxation or power to remit or compromise taxes. . . ." 16 McQuillin Municipal Corporations s. 44.65 p. 204. Similarly, without legislative authority, a municipality may not contract away its power to impose taxes or impose taxes only under certain conditions. Eastern Shores v. City of North Miami Beach,
Section
Sections
QUESTION TWO
In light of my response to your first question, it is unnecessary to respond to your second question. But see, AGO 79-26, stating that the conjunctive language of ss.
In summary, I am of the opinion that a municipality in levying a public service tax pursuant to s.
Sincerely,
Robert A. Butterworth Attorney General
Prepared by:
Lagran Saunders Assistant Attorney General