Chapter 2010-149, L.O.F., provides that for communications services billed on or after August 1, 2010, the state portion of the Florida communications services tax rate for certain services is reduced 0.15 percent from 6.8 percent to 6.65 percent, ...

DEPARTMENT OF REVENUE
Sales and Use Tax

Rule No.: RULE TITLE
12A-19.041: Residential Exemption from the Communications Services Tax
12A-19.100: Public Use Forms
PURPOSE AND EFFECT: Chapter 2010-149, L.O.F., provides that for communications services billed on or after August 1, 2010, the state portion of the Florida communications services tax rate for certain services is reduced 0.15 percent from 6.8 percent to 6.65 percent, and the gross receipts tax rate on those services has increased 0.15 percent from 2.37 percent to 2.52 percent. Communications services billed to a residential household on or after August 1, 2010, will be subject to the 2.37 percent gross receipts tax and will remain exempt from the 6.65 percent state portion of the tax. Such services will also be exempt from the additional gross receipts tax rate of 0.15 percent, ensuring that no person will pay any additional tax.
Chapter 2008-55, L.O.F., amended Section 509.013, F.S., redefining “public lodging establishments” as “transient public lodging establishments” and “nontransient public lodging establishments.” Section 4, Chapter 2010-138, L.O.F., clarifies that the residential exemption from the communications services tax does not include any “transient public lodging establishment.”
Effective July 1, 2010, Chapter 2010-83, L.O.F., allows communications services tax dealers to use a proportionate method to allocate bad debts based on current gross taxes due to determine the amount of bad debt that is attributable to the state and to the local jurisdiction or another reasonable allocation method approved by the Department. Dealers report the bad debit credit on Form DR-700016, Florida Communications Services Tax Return, by deducting the bad debit credit from the state tax or from the local jurisdiction tax due to the Department. The amount of the credit deducted and reported on the return is limited to the amount of state tax due or the amount of local jurisdiction tax due.
The purpose of the proposed rule amendments to Chapter 12A-19, F.A.C., is to: (1) provide the tax rate changes for communications services sold to residential households, as provided in Chapter 2010-149, L.O.F.; (2) clarify that the residential exemption does not include any transient public lodging establishment, as provided in Section 4, Chapter 2010-138, L.O.F.; (3) provide for the reporting of bad debt credits consistent with the provisions of Chapter 2010-83, L.O.F.; (4) provide the applicable reporting periods and service billing dates for each version of Form DR-700016, Florida Communications Services Tax Return; (5) update the local communications services tax rates; (6) adopt, by reference, updates to Form DR-700016, Communications Services Tax Return, and Form DR-700019, Communications Services Use Tax Return, necessary to incorporate the law changes and the rate local communications services tax rates and (7) update the information on how to obtain copies of forms from the Department.
SUMMARY: The proposed amendments to Rule 12A-19.041, F.A.C.: (1) amend the title to “Sales of Communications Services to a Residential Household” and the scope of the rule to clarify the intent of the application of the rule, as amended; (2) update provisions regarding the state portion and gross receipts tax portion of the Florida communications services tax for purposes of the residential exemption, as provided in Chapter 2010-149, L.O.F.; (3) include the definition of “transient public lodging establishment,” as defined in Section 509.013, F.S., as amended by Chapter 2008-55, L.O.F.; (4) clarify that the residential exemption from communications services tax does not apply to “transient public lodging establishments,” as provided in Section 4, Chapter 2010-138, L.O.F.; and (5) update the term “service provider” to “dealer” of communications services.
The proposed amendments to Rule 12A-19.100, F.A.C. (Public Use Forms): (1) incorporate the instructions to report tax due on communications services billed on or after August 1, 2010, and provide for the components of the communications services tax collected to be shown on Form DR-700016, Florida Communications Services Tax Return, and Form DR-700019, Communications Services Use Tax Return, as provided in Chapter 2010-149, L.O.F.; (2) provide in the instructions of Form DR-700016 that the residential exemption from the communications services tax does not include any transient public lodging establishment, as clarified in section 4, Chapter 2010-138, L.O.F.; (3) provide for the reporting of bad debt credits consistent with the provisions of Chapter 2010-83, L.O.F.; (4) provide which version of Form DR-700016, Florida Communications Services Tax Return, is to be used to report communications services tax on services billed during the calendar year; (5) update the local communications services tax rates; (6) adopt, by reference, changes to Forms DR-700016 and DR-700019 necessary to incorporate the law changes and the rate local communications services tax rates; and (7) update the information on how to obtain copies of forms from the Department.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 175.1015(5), 185.085(5), 202.151, 202.16(2), 202.26(3)(a), (c), (d), (e), (j), 202.27(7) FS.
LAW IMPLEMENTED: 119.071(5), 175.1015, 185.085, 202.11(3), (10), (11), 202.12(1), (3), 202.125(1), 202.13(2), 202.151, 202.16(2), (4), 202.17(6), 202.19(1), (7), (10), 202.22(6), 202.27, 202.28(1), (2), 202.29, 202.30(3), 202.33, 202.34(3), (4)(c), 202.35(1), (2), (4) FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: November 2, 2010, 9:30 a.m.
PLACE: Room 1220, 2450 Shumard Oak Blvd., Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Sarah Wachman at [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Heather Miller, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone [phone]

THE FULL TEXT OF THE PROPOSED RULE IS:

12A-19.041 Sales of Residential Exemption from the Communications Services to a Residential Household Tax.

(1)(a) The sale of communications services, as defined in Section 202.11(2), F.S., is subject to the Florida communications services tax and the local communications services tax, unless specifically exempt.

(1)(b) This rule is intended to clarify the application of tax on sales of communications services to residential households and governs the documentation and recordkeeping requirements of dealers who make sales to regarding the exemption for residential households from the communications services taxes.

(2) APPLICATION OF TAX THAT IS EXEMPT.

(a) Sales of communications services to a residential household are exempt from not subject to the state portion of the Florida communications services tax, imposed by Section 202.12(1)(a), F.S., and the additional gross receipts tax rate, imposed by Section 203.01(1)(b)3., F.S.

(b)(3) TAXES THAT ARE NOT EXEMPT. Sales of communications services to a residential household remain are subject to the Florida gross receipts tax rate portion of the Florida communications services tax, imposed by Section 203.01(1)(b)(a)2., F.S., and the local communications services tax rates, imposed by Section 202.19, F.S.

(c)(4) SERVICES THAT ARE NOT EXEMPT. The This partial exemption for sales to a residential household does not apply to:

1.(a) Sales of any cable service, as defined in Section 202.11(1), F.S.;

2.(b) Sales of any direct-to-home satellite service, as defined in Section 202.11(5), F.S.; and

3.(c) Sales of mobile communications services, as defined in Section 202.11(7), F.S.

(3)(5) Transient Public Lodging Establishments FACILITIES THAT ARE NOT EXEMPT. The partial This exemption for sales to residential households does not apply to sales to any residence that constitutes all or part of the service address of any structure or any unit within a structure licensed as a transient public lodging establishment, as defined by Section 509.013(4)(a), F.S., with the Division of Hotels and Restaurants of the Department of Business and Professional Regulation.

(a) The purchaser is required to notify the communications services dealer provider when the communications services are used in a transient licensed public lodging establishment. If the purchaser fails to provide such notification, the Department will look to the purchaser, rather than the dealer provider, for any applicable tax, penalty, or interest due when the services were purchased for use in a transient public lodging establishment.

(b) Persons that are entitled to an exemption from sales tax on the purchase of electric power or energy, gas, or fuel for use in a residential household, as provided in Rules 12A-1.053 and 12A-1.059, F.A.C., are not entitled to the exemption from communications services tax when the service address constitutes all or part of that residential household is licensed as a transient public lodging establishment.

(c) A “transient public lodging establishment,” as defined in Section 509.013, F.S., means any unit, group of units, dwelling, building, or group of buildings within a single complex of buildings that is:

1. Advertised or held out to the public as a place that is regularly rented to guests; or

2. Rented more than three times in a calendar year, with each separate rental period having a duration less than 1 calendar month or less than 30 days.

(d) Transient public Public lodging establishments include the following, if they are rented by an owner or operator to guests whose occupancy is intended to be temporary.: Examples of transient public lodging establishments include hotels,

1. Hotels, motels, bed and breakfast inns, transient apartments, nontransient apartments, transient rooming houses, and resort dwellings. other transient establishments;

2. Any unit or group of units in a condominium, cooperative, time-share plan, or other resort condominium; or

3. Any single family dwelling, duplex, triplex, quadraplex, townhouse, beach cottage, mobile home, or other resort dwelling.

(4)(6) DOCUMENTATION REQUIREMENTS. A communications services dealer provider, unless notified by the purchaser that the residential exemption does not apply, is not required to collect and remit tax on sales of communications services when:

(a) The service is sold at a rate based on a “residential schedule,” under the tariffs filed by a service provider with the Public Service Commission; or

(b) A dealer service provider has on file a writing or document evidencing a representation of a customer that the communications services are being purchased for residential household use. The writing or document may be a customer application or a certificate that identifies the customer as purchasing the communications services for residential purposes. A “customer application” includes a record of information obtained electronically or orally from the customer in the ordinary course of business. A dealer provider must have acted in good faith in accepting the representation of a customer.

(5)(7) No change.

Rulemaking Specific Authority 202.26(3)(c) FS. Law Implemented 202.125(1), 202.13(2), 202.16(4), 202.19(10), 202.34(3), 202.35(4) FS. History–New 1-31-02, Amended_________.

 

12A-19.100 Public Use Forms.

(1)(a) The Department employs the following public-use forms and instructions in the administration of Chapter 202, F.S., Communications Services Tax, and in the administration of the Department’s electronic Address/Jurisdiction Database created pursuant to Sections 175.1015 and 185.085, F.S. These forms are hereby incorporated by reference in this rule.

(b) Copies of these forms are available, without cost, by one or more of the following methods: 1) downloading the form from the Department’s Internet site at www.myflorida.com/dor/forms; or, 2) calling the Department at [phone], Monday through Friday, 8:00 a.m. to 7:00 p.m., Eastern Time; or, 3) visiting any local Department of Revenue Service Center; or, 4) writing the Florida Department of Revenue, Taxpayer Services, 5050 West Tennessee Street, Distribution Center, 168A Blountstown Highway, Tallahassee, Florida 32399-0112 32304. Persons with hearing or speech impairments may call the Department’s TDD at [phone] or [phone].

(2) The following versions of Form DR-700016, Florida Communications Services Tax Return, are applicable to the reporting periods and service billing dates indicated:

 

REVISION DATE	REPORTING PERIODS	SERVICE BILLING DATES
01/11	January 2011	January 1, 2011
08/10	August 2010 - December 2010	August 1, 2010 - December 31, 2010
01/10	January 2010 - July 2010	January 1, 2010 - July 31, 2010
06/09	June 2009 - December 2009	June 1, 2009 - December 31, 2009
01/09	January 2009 - May 2009	January 1, 2009 - May 31, 2009
09/08	September 2008 - December 2008	September 1, 2008 - December 31, 2008
06/08	June 2008 - August 2008	June 1, 2008 - August 31, 2008
05/08	May 2008	May 1, 2008 - May 31, 2008
01/08	January 2008 - April 2008	January 1, 2008 - April 30, 2008
09/07	September 2007 - December 2007	September 1, 2007 - December 31, 2007
06/07	June 2007 - August 2007	June 1, 2007 - August 31, 2007
02/07	February 2007 - May 2007	February 1, 2007 - May 31, 2007
01/07	January 2007	January 1, 2007 - January 31, 2007
06/06	June 2006 - December 2006	June 1, 2006  - December 31, 2006
01/06	January 2006 - May 2006	January 1, 2006  - May 31, 2006
11/05	November 2005 - December 2005	November 1, 2005 - December 31, 2005
06/05	June 2005 - October 2005	June 1, 2005 - October 31, 2005
01/05	January 2005 - May 2005	January 1, 2005 - May 31, 2005
11/04	November 2004 - December 2004	November 1, 2004 - December 31, 2004
10/04	October 2004	October 1, 2004 - October 31, 2004
06/04	June 2004 - September 2004	June 1, 2004 - September 30, 2004
01/04	January 2004 - May 2004	January 1, 2004 - May 31, 2004
12/03	December 2003	December 1, 2003 - December 31, 2003
11/03	November 2003	November 1, 2003 - November 30, 2003
10/03	October 2003	October 1, 2003 - October 31, 2003
06/03	June 2003 - September 2003	June 1, 2003 - September 30, 2003
03/03	March 2003 - May 2003	March 1, 2003 - May 31, 2003
01/03	January 2003 - February 2003	January 1, 2003 - February 28, 2003
12/02	December 2002	December 1, 2002 - December 31, 2002
11/02	November 2002	November 1, 2002 - November 30, 2002
10/02	October 2002	October 1, 2002 - October 31, 2002
01/02	January 2002 - September 2002	January 1, 2002 - September 30, 2002
12/01	October 2001 - December 2001	October 1, 2001 - December 31, 2001

 

Form Number          Title                                                                                 Effective Date

(3) No change.

(4)(a) DR-700016    Florida Communications Services Tax Return (R. 01/11)                _____

(b) DR-700016        Florida Communications Services Tax Return (R. 08/10)                _____

(a) through (ee) renumbered (c) through (gg) No change.

(5) DR-700019        Communications Services Use Tax Return (R. 8/10 10/09)             _____06/10

(6) through (12) No change.

Rulemaking Authority 175.1015(5), 185.085(5), 202.151, 202.16(2), 202.26(3)(a), (c), (d), (e), (j), 202.27(7) FS. Law Implemented 119.071(5), 175.1015, 185.085, 202.11(3), (10), (11), 202.12(1), (3), 202.13(2), 202.151, 202.16(2), (4), 202.17(6), 202.19(1), (7), 202.22(6), 202.27, 202.28(1), (2), 202.29, 202.30(3), 202.33, 202.34(3), (4)(c), 202.35(1), (2) FS. History–New 4-17-03, Amended 7-31-03, 10-1-03, 9-28-04, 6-28-05, 11-14-05, 7-16-06, 4-5-07, 11-6-07, 12-20-07, 1-28-08, 1-27-09, 1-11-10, 6-28-10(3), 6-28-10(5),_______.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Heather Miller, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone [phone]
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Governor and Cabinet
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 28, 2010
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: A Notice of Proposed Rule Development was published in the Florida Administrative Weekly on August 13, 2010 (Vol. 36, No. 32, pp. 3684-3685). No request was received by the Department to hold a workshop. No written comments have been received by the Department.