Fla. Admin. Code R. 12A-15.014

Current through Reg. 50, No. 235-239, December 10, 2024

Section 12A-15.014 - Transition Rule

(1)

(a) Accrual basis accounting recognizes the sales date as the invoice date. At the time the invoice is prepared, accounts receivable will be increased with a corresponding entry to increase the sales accounts. Thus, for sales, purchases, and rentals of tangible personal property, the Department will be guided by the invoice date to determine if the surtax is applicable for transactions prior to the effective date of any such surtax, or if the surtax is applicable to transactions during the period the surtax is levied. Cash sales will be subjected to the surtax if the transaction occurs on or after the effective date of any such surtax.

(b) The Department will recognize the state sales and use tax rate as the appropriate tax rate, if the state sales and use tax is included in the tax return, for sales invoices dated and recorded reflecting total income through the sales accounts, prior to the effective date of any such surtax, provided the goods or services are delivered within the customary period for the particular type of firm. Delivery within 45 days of the sales invoice date may be utilized for auditing purposes during this transition period to support a normal delivery period.

(2) Commercial Rentals. Prepayments of rents to avoid increased tax rate are prohibited. Tenants with leases in effect prior to the effective date of any such surtax which provide for payments to be made on and after the effective date of any such surtax, cannot avoid tax by prepaying rent prior to the effective date of the surtax. Commercial rentals will be taxed pursuant to Section 212.031, F.S., plus the surtax rate for all rentals due on or after the effective date of any such surtax.

(3) Electric Utilities; Natural or Manufactured Gas; Fuel Oil.

(a) Electric utilities and sellers of gas and fuel oil normally bill their customers after the period of service. The 6.95% tax rate plus the surtax rate will apply to billing cycles, which includes services billed for cycles ending on or after the effective date of any such surtax.

1. Example: If the effective date of the surtax is January 1, 1995, and the monthly service cycle is December 1, 1994, through December 31, 1994, and the service cycle billing is mailed to customer on January 5, 1995, the surtax does not apply.

2. Example: If the effective date of the surtax is January 1, 1995, and the monthly service cycle is December 10, 1994, through January 10, 1995, and the service cycle billing is mailed to customer on January 15, 1995, the surtax applies.

(b) Where service periods or cycles are not noted on the bill to the customer, the invoice or billing date would determine the applicable tax rate. In the cases of electric, gas, and fuel oil, billing cycles are from the most current meter reading to the previous meter reading.

Fla. Admin. Code Ann. R. 12A-15.014

Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.031, 212.05(1), 212.05011, 212.054, 212.055 FS.

New 12-11-89, Amended 11-16-93, 3-20-96, 10-2-01, 4-17-03, Amended by Florida Register Volume 44, Number 002, January 3, 2018 effective 1/17/2018, Amended by Florida Register Volume 44, Number 249, December 26, 2018 effective 1/8/2019, Amended by Florida Register Volume 45, Number 230, November 26, 2019 effective 12/12/2019, Amended by Florida Register Volume 48, Number 105, May 31, 2022 effective 6/14/2022.

New 12-11-89, Amended 11-16-93, 3-20-96, 10-2-01, 4-17-03, 1-17-18, 1-8-19, 12-12-19, 6-14-22.