The purpose of the proposed amendments to Rule 12A-15.003, F.A.C. (Admissions; Tangible Personal Property; Services; Service Warranties; Real Property and Transient Accommodations; Use Tax), is to provide when dealers who receive consideration for ...

 

DEPARTMENT OF REVENUE

Sales and Use Tax

RULE NOS.: RULE TITLES:

12A-15.003 Admissions; Tangible Personal Property; Services; Service Warranties; Real Property and Transient Accommodations; Use Tax

12A-15.011: Coin-Operated Amusement and Vending Machines, and Other Devices

PURPOSE AND EFFECT: The purpose of the proposed amendments to Rule 12A-15.003, F.A.C. (Admissions; Tangible Personal Property; Services; Service Warranties; Real Property and Transient Accommodations; Use Tax), is to provide when dealers who receive consideration for the issuance of a service warranty are required to collect the discretionary sales surtax.

The purpose of the proposed amendments to Rule 12A-15.011, F.A.C. (Coin-Operated Amusement and Vending Machines, and Other Devices), is to correct divisor rates for sales of food, beverages, and other items of tangible personal property made through vending machines in counties imposing a 1/4 percent or 3/4 percent discretionary sales surtax.

SUMMARY: The proposed amendments to Rule 12A-15.003, F.A.C. (Admissions; Tangible Personal Property; Services; Service Warranties; Real Property and Transient Accommodations; Use Tax), provide that any dealer who receives consideration for the issuance of a service warranty is required to collect surtax at the rate imposed by the county where the tangible personal property indemnified by the service warranty is delivered or located.

The proposed amendments to Rule 12A-15.011, F.A.C. (Coin-Operated Amusement and Vending Machines, and Other Devices), correct the divisor rates for counties that impose a discretionary sales surtax at the rates of 1/4 percent or 3/4 percent for purposes of computing the amount of sales tax, plus surtax, due on sales of food, beverages, and other items of tangible personal property made through vending machines.

SUMMARY OF statement of ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Costs 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: 212.05(1)(h) FS., 212.0515 FS., 212.17(6) FS., 212.18(2) FS., 213.06(1) FS.

LAW IMPLEMENTED: 212.02(24) FS., 212.05(1) FS., 212.0506 FS., 212.0515 FS., 212.054 FS., 212.055 FS., 212.0596 FS., 212.06(1)(4)(6)(8)(10) FS., 212.07(2)(8) FS., 212.12(11) FS., 212.18(3) FS., 212.183 FS.

A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: February 6, 2006, 10:00 a.m.

PLACE: Room 118, Carlton Building, 501 South Calhoun Street, Tallahassee, Florida

NOTICE UNDER THE AMERICANS WITH DISABILITIES ACT: Any person requiring special accommodations to participate in any rulemaking proceeding before Technical Assistance and Dispute Resolution is asked to advise the Department at least 48 hours before such proceeding by contacting Larry Green at [phone]. Persons with hearing or speech impairments may contact the Department by using the Florida Relay Service, which can be reached at [phone] (Voice) and [phone] (TDD).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULES IS: Janet L. Young, 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 RULES IS:

 

12A-15.003 Admissions; Tangible Personal Property; Services; Service Warranties; Real Property and Transient Accommodations; Use Tax.

(1) through (6) No change.

(7) SERVICE WARRANTIES.

(a) Any dealer person who is located within a surtax county and who receives consideration for the issuance of a service warranty from the agreement holder is required to collect surtax at the rate imposed by the county where the tangible personal property indemnified by the service warranty is delivered or located.

(b)1. Example: The person receiving consideration for a service warranty is located in County A (a county imposing a 1% surtax). The service warranty covers a refrigerator sold in County A and delivered in County B (a county imposing a 1.5% surtax). The person receiving consideration for the service warranty is required to collect sales tax and surtax on the sales price of the service warranty at the rate of 7.5% (6% state sales tax and 1.5% surtax).

2.1. Example: The person receiving consideration for the issuance of a service warranty is located in County A (a county imposing a 1% surtax). The service warranty covers a television located within County B (a county not imposing the surtax). The person receiving consideration for the service warranty is required to collect sales tax on the sales price of the service warranty at the rate of 6%. The person receiving the consideration is not required to collect surtax.

3.2. Example: The person receiving consideration for the issuance of a service warranty is located in County A (a county not imposing a 1/2% surtax). The service warranty covers a motor vehicle, and the resident address of the owner identified on the title document is located in County B (a county imposing a 1% surtax). The person receiving consideration for the service warranty is required to collect sales tax and surtax on the sales price of the service warranty at the rate of 7% (6% state sales tax and 1% surtax).

(8) through (10) No change.

Specific Authority 212.17(6), 212.18(2), 213.06(1) FS.  Law Implemented 212.05(1), 212.0506, 212.054, 212.055, 212.0596, 212.06(1), (4), (6), (8), (10), 212.07(8), 212.18(3), 212.183 FS. History–New 12-11-89, Amended 1-30-91, 5-12-92, 8-10-92, 11-16-93, 3-20-96, 6-19-01, 10-2-01, 4-17-03,________.

 

12A-15.011 Coin‑Operated Amusement and Vending Machines, and Other Devices.

(1) No change.

(2)(a) Vending machine sales; effective tax rates. The amount of tax to be paid on food, beverages, and other items of tangible personal property that are sold in vending machines is subject to the surtax at the rate imposed by the county where the machine is located. To calculate the tax due in an applicable reporting period for vending machines located in counties imposing a surtax:

1. Divide the total gross receipts from sales made through the vending machines by the divisors provided in paragraph (b) to compute gross taxable sales;

2. Subtract gross taxable sales from the total gross receipts to compute the amount of tax, plus surtax, due.

(b) Divisors for counties imposing surtax at the following rates are:

Surtax Rate	Divisor for Food
	and Beverages	Divisor for Other
		Items of Tangible
		Personal Property
No Surtax	1.0645	1.0659
1/4%	1.06655 1.0425	1.0683
1/2%	1.0686	1.0707
3/4%	1.0706	1.0728 1.0727
1%	1.0726	1.0749
1 1/4%	1.07465	1.0770
1 1/2%	1.0767	1.0791

(c) No change.

(3) No change.

Specific Authority 212.05(1)(h), 212.0515, 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(24), 212.05(1)(h), 212.0515, 212.054, 212.055, 212.07(2), 212.12(11), 212.18(3) FS. History–New 12‑11‑89, Amended 1‑30‑91, 5‑12‑92, 9‑14‑93, 11‑16‑93, 12‑13‑94, 3‑20‑96, 6-19-01, 11-1-05,_______.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Janet L. Young, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone [phone]

NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Charles Strausser, Revenue Program Administrator II, Technical Assistance and Dispute Resolution, P. O. Box 7443, Tallahassee, Florida 32314-7443; telephone number [phone]

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 27, 2005

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: The proposed amendments to Rule Chapter 12A-15, F.A.C. (Discretionary Sales Surtax), were noticed for a rule development workshop in the Florida Administrative Weekly on November 10, 2005 (Vol. 31, No. 45, pp. 4116-4117). A rule development workshop was held on November 30, 2005. No one appeared to provide comment regarding these proposed rule changes. No written comments have been received by the Department.