Clay County: Business Impact Estimate
Proposed Ordinance’s Title:
AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF CLAY COUNTY, FLORIDA, AMENDING ORDINANCE NO. 2003-80, WHICH IS CODIFIED AS CHAPTER 18.3, ARTICLE VI, OF THE CLAY COUNTY CODE, ENTITLED “PUBLIC SERVICE UTILITY TAX”, BY AMENDING SECTION 18.3-202 (a) TO INCREASE THE AMOUNT OF THE TAX IMPOSED AND LEVIED BY THE COUNTY ON EACH PURCHASE OF ELECTRICITY AND METERED OR BOTTLED GAS (NATURAL, LIQUEFIED PETROLEUM GAS OR MANUFACTURED), IN THE UNINCORPORATED AREA OF THE COUNTY, FROM FOUR PERCENT TO TEN PERCENT OF THE PAYMENTS RECEIVED BY THE SELLER OF THE SERVICE FROM THE PURCHASER FOR THE PURCHASE OFTHE SERVICE; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.
This Business Impact Estimate is provided in accordance with Section 125.66 (3), Florida Statutes.
1. A summary of the proposed ordinance, including a statement of the public purpose to be served by the proposed ordinance, such as serving the public health, safety, morals, and welfare of the County:
The proposed ordinance is to amend the Clay County Code concerning the Public Service Utility Tax imposed by the County. Since January of 2004, the County has collected a 4% tax on the purchase of electricity and metered or bottled gas in the unincorporated area of the County. The current rate of 4% is below the maximum rate of 10% which is permitted by Section 166.231(1)(a), Florida Statutes. By increasing the Public Service Utility Tax from 4% to a rate at or below 10%, the County would generate additional general funds that would be used to fund shortfalls in the County’s budget such as for essential Public Safety services.
2. An estimate of the direct economic impact of the proposed ordinance on private, for-profit businesses in the County, including the following, if any:
a. An estimate of direct compliance costs that businesses may reasonably incur if the ordinance is enacted:
The Public Service Utility Tax was enacted in 2003 and collections began in 2004; therefore, the proposed ordinance would have no impact on the number of businesses that are subject to the tax. Businesses that currently collect the tax would continue to collect it, albeit at a higher percentage, and pass the resulting funds through to the County in accordance with existing protocols. There may be limited compliance costs associated with businesses that collect the tax modifying their point of sale/billing systems to calculate the increased rate.
Businesses that currently pay the Public Service Utility Tax would continue to pay it at an increased rate with a de minimus increase in compliance costs.
b. Identification of any new charge or fee on businesses subject to the proposed ordinance or for which businesses will be financially responsible:
The Public Service Utility Tax has been in place for over two decades; therefore, there will be no new charge or fee associated with the proposed ordinance. For those businesses subject to the Public Service Utility Tax, there would be an increase in the amount those businesses would pay based on their consumption of a given amount of purchased electricity and metered or bottled gas.
The proposed ordinance does not impact the numerous exemptions listed in Sec. 18.3-203, Article VI, of the Clay County Code, including, but not limited to, industrial consumers of electricity and metered or bottled gas and agricultural uses of metered or bottled gas and fuel oil. These exemptions serve to blunt the impact of the proposed ordinance change on businesses.
c. An estimate of the County’s regulatory costs, including an estimate of revenues from any new charges or fees that will be imposed on businesses to cover such costs:
Regulatory costs for the County would be de minimis. The County anticipates realizing additional revenues as follows:
· 2% increase (to 6% total)—approximately $2.5 million per year
· 4% increase (to 8% total)—approximately $4.9 million per year
· 6% increase (to 10% total)—approximately $7.4 million per year
3. A good faith estimate of the number of businesses likely to be impacted by the ordinance:
The proposed ordinance would impact all of the businesses in the County that are not in the industrial and agricultural sectors. Of the approximately 4,400 businesses in the County, it is estimated that approximately 75%, or 3,300 businesses, would be impacted by paying increases in the Public Service Utility Tax.
4. Any additional information the board determines may be useful:
N/A
