The purpose of the proposed amendments to Rule 12A-19.010, F.A.C. (Registration), is to: (1) implement Sections 1-11, Chapter 2005-187, L.O.F., regarding the elimination of the communications services tax on substitute communications systems; and (2)...

 

DEPARTMENT OF REVENUE

Sales and Use Tax

RULE NOS.: RULE TITLES:

12A-19.010 Registration

12A-19.020 Tax Due at Time of Sale; Tax Returns and Regulations

12A-19.060 Sales for the Purpose of Resale

12A-19.100 Public Use Forms

PURPOSE AND EFFECT: The purpose of the proposed amendments to Rule 12A-19.010, F.A.C. (Registration), is to: (1) implement Sections 1-11, Chapter 2005-187, L.O.F., regarding the elimination of the communications services tax on substitute communications systems; and (2) amend the definition of taxable “communications services” to clarify that the definition includes services provided using voice-over-Internet-protocol, as provided in Section 14, Chapter 2005-187, L.O.F. The purpose of the proposed amendments to Rule 12A-19.020, F.A.C. (Tax Due at Time of Sale; Tax Returns and Regulations), and to Rule 12A-19.060, F.A.C. (Sales for the Purpose of Resale), is to implement Sections 1-11, Chapter 2005-187, L.O.F., regarding the elimination of the communications services tax on substitute communications systems. The purpose of the proposed amendments to Rule 12A-19.100, F.A.C. (Public Use Forms), is to adopt, by reference, revisions to Form DR-700016, Communications Services Tax Return.

SUMMARY: The proposed amendments to Rule 12A-19.010, F.A.C. (Registration): (1) eliminate provisions regarding the communications services tax on substitute communications systems pursuant to Sections 1-11, Chapter 2005-187, L.O.F.; and (2) amend the definition of taxable “communications services” to clarify that the definition includes services provided using voice-over-Internet-protocol, as provided in Section 14, Chapter 2005-187, L.O.F. The proposed amendments to Rule 12A-19.020, F.A.C. (Tax Due at Time of Sale; Tax Returns and Regulations), and to Rule 12A-19.060, F.A.C. (Sales for the Purpose of Resale), eliminate provisions regarding the communications services tax on substitute communications systems pursuant to Sections 1-11, Chapter 2005-187, L.O.F. The proposed amendments to Rule 12A-19.100, F.A.C. (Public Use Forms): (1) 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 specified months; (2) adopt, by reference, revisions to Form DR-700016, Communications Services Tax Return; and (3) update information on how to obtain forms from the Department.

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: 202.151 FS., 202.16(2) FS., 202.26(3)(a)(c)(d)(e)(h) FS.

LAW IMPLEMENTED: 202.11(2)(3)(6)(8)(10)(11)(12)(13) FS., 202.12(1) FS., 202.13(2) FS., 202.151 FS., 202.16 FS., 202.17(1)(3)(a)(4)(6) FS., 202.19(1) FS., 202.22(6) FS., 202.27 FS., 202.28(1)(2) FS., 202.30(3) FS., 202.33 FS., 202.34(3)(4)(c) FS., 202.35(1)(2) 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: Thomas Butscher, Senior Attorney, 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-19.010 Registration.

(1) Scope of rule. This rule provides guidelines regarding the procedures and requirements for the registration of persons providing communications services, users of substitute communications systems, and persons requesting a communications services tax direct pay permit.

(2) No change.

(3)(a) Except as provided herein, a person registering with the Department for the communications services tax must notify the Department of the method(s) that will be employed to determine the local taxing jurisdiction in which service addresses are located. The notification to the Department shall be made using Form form DR-700020, Notification of Method Employed to Determine Taxing Jurisdiction (Communications Services Tax) (incorporated by reference in Rule 12A-19.100, F.A.C.). The following persons are not required to file Form form DR-700020 with respect to the activities listed:

1. No change.

2. Substitute communications system operators;

3. through 6. renumbered 2. through 5. No change.

(b) Persons who must register for the communications services tax include persons who provide the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals, including cable services, to a point, or between or among points, by or through any electronic, radio, satellite, cable, optical, microwave, or other medium or method now in existence or hereafter devised, regardless of the protocol used for such transmission or conveyance, for a consideration, except as provided in paragraph (c). The term includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether such service is referred to as voice-over-Internet-protocol services or is classified by the Federal Communications Commission as enhanced or value-added.

(c) through (d) No change.

(4) Persons who purchase, install, rent, or lease a substitute communications system must obtain a Communications Services Tax Certificate of Registration (form DR-700014), as provided in subsection (2).

(a) A substitute communications system means any telephone system, or other system capable of providing communications services, that a person purchases, installs, rents, or leases for his or her own use to provide himself or herself with services used as a substitute for any switched service or dedicated facility by which a dealer of communications services provides a communication path.

(b) A substitute communications system does not include the use by any dealer of his or her own communications system to conduct a business of providing communications services or any communications system operated by a county, a municipality, the state, or any political subdivision of the state.

(c) An example of a substitute communications system would occur when a person uses satellite equipment to communicate with other locations without incurring any charges from a communications services provider.

(4)(5) No change.

Specific Authority 202.26(3)(e), (h) FS. Law Implemented 202.11(2), (6), (8), (12), (3), (7), (9), (13), (14), (16), 202.12(1)(b), 202.15, 202.17(1), (3)(a), (4), 202.22(6)(a), 202.27(6) FS. History–New 1-31-02, Amended 4-17-03,_______.

 

12A-19.020 Tax Due at Time of Sale; Tax Returns and Regulations.

(1)(a) No change.

(b) Tax due under Section 202.12(1)(b), F.S., on the actual cost of operating a substitute communications system is due on March 1 for the preceding calendar year. The payment accompanied with a return must either reach the Department or be postmarked on or before the 20th day of March for a dealer to avoid penalty and interest for late filing.

(b)(c) No change.

(2)(a) No change.

(b) Except as provided herein, all communications services tax dealers must notify the Department of the method or methods the dealer will employ to determine local taxing jurisdictions in which service addresses are located. The notification to the Department shall be made using Form form DR-700020, Notification of Method Employed to Determine Taxing Jurisdiction (Communications Services Tax) (incorporated by reference in Rule 12A-19.100, F.A.C.). If a communications services tax dealer that is required to notify the Department of the method to be used to determine local taxing jurisdictions fails to notify the Department that the dealer will use a method described in subparagraph (a)1., the dealer will be assigned an initial collection allowance of .25 percent. If a dealer is assigned a collection allowance of .25 percent due to failure to notify the Department of use of a method described in subparagraph (a)1., the dealer will be assigned a .75 percent collection allowance upon subsequently providing a completed Form form DR-700020. The dealer will be entitled to a refund or credit of the difference between the .25 percent collection allowance initially assigned and the .75 percent collection allowance during any period the dealer was using an eligible method and claiming the lower allowance prior to notifying the Department. The following persons are not responsible for collecting and remitting local communications services taxes and are not required to file Form form DR-700020:

1. No change.

2. Substitute communications system operators;

3. through 6. renumbered 2. through 5. No change.

(c) No change.

(3)(a) No change.

(b) Form DR-700016, Florida Communications Services Tax Return, must also be used to report and remit tax due on the use of substitute communications systems. Form DR-700016, accompanied by the applicable payment, is due on the first day of March following the use of a substitute communications system during the preceding calendar year. Such return and applicable payment shall be late on the 21st day of March following the end of the calendar year for which the return and applicable payment are due.

(b)(c) No change.

(4) through (5) No change.

(6) Purchasers Users of a substitute communications system, and purchasers paying communications services use tax directly to the Department, who file a timely tax return are not allowed to deduct a collection allowance as compensation for the prescribed record keeping, accounting for, and timely remittance of taxes imposed by and administered under Chapter 202, F.S.

(7) through (10) No change.

Specific Authority 202.15, 202.151, 202.26(3)(a) FS. Law Implemented 202.12(1), 202.15, 202.151, 202.16, 202.19(1), 202.22(6), 202.27, 202.28(1), (2), 202.30(3), 202.33(2), 202.35(1) FS. History–New 1-31-02, Amended 4-17-03, 7-31-03, 10-1-03, 9-28-04, 6-28-05,________.

 

12A-19.060 Sales for the Purpose of Resale.

(1) through (3) No change.

(4) ANNUAL RESALE CERTIFICATES ISSUED BY THE DEPARTMENT.

(a) Each newly registered dealer, except persons registered as users of substitute communications systems, will receive a Communications Services Tax Certificate of Registration (Form form DR-700014) and a Communications Services Tax Annual Resale Certificate (Form form DR-700015). For each calendar year, the Department will issue to each active registered dealer a Communications Services Tax Annual Resale Certificate that specifically identifies the valid period of the certificate.

(b) through (d) No change.

(5) through (8) No change.

Specific Authority 202.16(2), 202.26(3)(c), (d) FS. Law Implemented 202.11(3), (10), (4), (11), (12), 202.13(2), 202.16(2), (4), 202.17(6), 202.34(3), (4)(c) 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. 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; or, 2) faxing a forms request to the Distribution Center at [phone]; or, 3) calling the Distribution Center at [phone]; or, 4) writing the Florida Department of Revenue, Distribution Center, 168A Blountstown Highway, Tallahassee, Florida 32304; or, 5) 2) faxing the Distribution Center at [phone]; or, 3) visiting any local Department of Revenue Service Center to personally obtain a copy; or, 4) calling the Forms Request Line during regular office hours at [phone] (in Florida only) or [phone]; or, 5) downloading selected forms from the Department’s Internet site at the address shown inside the parentheses (www.myflorida.com/dor). Persons with hearing or speech impairments may call the Department’s TDD at [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
01/06	January 2006 –		January 1, 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		Florida Communications Services Tax Return (R. 01/06)
(4)(a) DR-700016		Florida Communications Services Tax Return (R. 11/05)		____
(b) DR-700016		Florida Communications Services Tax Return (R. 11/05		____
(c) DR-700016		Florida Communications Services Tax Return (R. 06/05)		____

(a) through (p) renumbered (d) through (s) No change.

(5) through (9) No change.

Specific Authority 202.15, 202.151, 202.16(2), 202.26(3)(a), (c), (d) FS. Law Implemented 202.11(3), (10), (4), (11), (12), 202.12(1), 202.13(2), 202.15, 202.151, 202.16(2), (4), 202.17(6), 202.19(1), 202.22(6), 202.27, 202.28(1), (2), 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,_______.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Thomas Butscher, Senior Attorney, 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: Gary Gray, Revenue Program Administrator I, 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-19, F.A.C. (Communications Service Tax), were noticed for a rule development workshop in the Florida Administrative Weekly on November 10, 2005 (Vol. 31, No. 45, pp. 4119-4121). 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.