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. 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 bases 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 that has been approved by the Department. Dealers report the bad debt credit on Form DR-700016, Florida Communications Services Tax Return, by deducting the bad debt 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. Section 6, Chapter 2010-149, L.O.F., authorizes the Department of Revenue, and all conditions are deemed met, to adopt an emergency rule to promulgate forms and instructions necessary to report the communications services tax. The law allows a communications services dealer to collect a combined 6.8 percent tax rate comprised of the state tax rate of 6.65 percent and the additional gross receipts tax rate of 0.15 percent if the components of the tax collected are properly shown on the dealer’s tax return. To provide communications services tax dealers and taxpayers who pay tax directly to the Department the necessary form changes to report and remit tax due on communications services beginning August 1, 2010, an emergency rule to incorporate updated tax returns ensures that the public is notified of these law changes by the most appropriate and expedient means. This emergency rule incorporates, by reference, Form DR-700016, Florida Communications Services Tax Return, and Form DR-700019, Communications Services Use Tax Return, effective August 2010, and the instructions to report tax due on communications services billed, including the residential exemption, and to report bad debt credits consistent with the provisions of Chapter 2010-83, L.O.F.