Fla. Admin. Code R. 12A-19.030

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

Section 12A-19.030 - Communications Services Tax Direct Pay Permits

(1) Persons who purchase communications services may apply for a communications services tax direct pay permit from the Department to assume the obligation of self-accruing and remitting to the state the tax due on their purchases of communications services when:

(a) The majority of the communications services purchased for use by a person are for communications that originate outside Florida and terminate within Florida; or

(b) The taxable status of sales of communications services will be known only upon use.

(2) For purposes of this rule, the term "person" means a single legal entity and does not mean a group or combination of affiliated entities or entities controlled by one person or group of persons.

(3)

(a) To request a Communications Services Tax Direct Pay Permit, a person must file form DR-700030, Application for Self-Accrual Authority/Direct Pay Permit Communications Services Tax (incorporated by reference in Rule 12A-19.100, F.A.C.), with the Department, in the manner provided on the form.

(b) Each permit holder must hold a valid dealer's Communications Services Tax Certificate of Registration (form DR-700014) issued by the Department. Persons that are not registered with the Department for the communications services tax must file a Florida Business Tax Application (form DR-1) with the Department. If form DR-700030, Application for Self-Accrual Authority/Direct Pay Permit Communications Services Tax accompanies form DR-1, then 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.), is only required to be filed if an applicant will be responsible for collecting and remitting local communications services taxes on sales of communications services.

(4)

(a) The effective date of a Communications Services Tax Direct Pay Permit is the postmark date of the application or, when delivered by means other than the United States Postal Service, the date the application is received by the Department.

(b) The Department will specify on each communications services tax direct pay permit the specific taxes for which the dealer is authorized to self-accrue and remit tax directly to the Department. When a direct pay permit authorizes self-accrual of any local communications services taxes, each service address that a direct pay permit applies to will be identified.

(c)

1. A communications services tax direct pay permit expires five (5) years from the effective date. The expiration date shall be the end of the month preceding five (5) years from the effective date, if the effective date is on or before the 15th of the month. The expiration date shall be the end of the month that is five (5) years from the effective date, if the effective date is after the 15th of the month. The Department will provide a Renewal Notice and Application for Self-Accrual Authority/Direct Pay Permit - Communications Services Tax (Form DR-700032, incorporated by reference in Rule 12A-19.100, F.A.C.) to a permit holder sixty (60) days prior to the expiration date of a permit. Holders of a communications services tax direct pay permit whose certificate will expire must complete Form DR-700032 prior to expiration of their current direct pay permit. Persons that fail to receive Form DR-700032 or who need more information regarding the notice may contact the Department at Account Management, Florida Department of Revenue, P.O. Box 6480, Tallahassee, Florida 32314-6480.

2. When the registration of a permit holder has been canceled, and the permit holder no longer holds a valid dealer's Communications Services Tax Certificate of Registration, the permit holder must surrender the permit to the Department for cancellation. To surrender a permit, the permit holder must forward the permit to Account Management, Florida Department of Revenue, P.O. Box 6480, Tallahassee, Florida 32314-6480.

3. Upon expiration of the purchasing customer's communications services tax direct pay permit, a dealer is required to collect and remit the applicable communications services tax from that customer.

(5) COMMUNICATIONS SERVICES TAX Direct Pay Permit for Interstate Communications Services.

(a) Persons issued a direct pay permit under the provisions of this subsection will receive Form DR-700031, Communications Services Tax Direct Pay Permit. Permit holders must provide a copy of Form DR-700031 to the communications services dealer to purchase communications services identified on the permit tax-exempt at the time of purchase.

(b) Permit holders are required to pay each calendar year to the Department an amount not to exceed the following:

1. $100,000 in communications services taxes, imposed under Sections 202.12 and 203.01(1)(a)2., F.S., on all charges for interstate communications services that originate outside Florida and terminate inside Florida that are billed to a single entity; or

2. $100,000 in communications services taxes, imposed under Sections 202.12 and 203.01(1)(a)2., F.S., on all charges for interstate communications services that originate outside Florida and terminate inside Florida that are billed to a single entity and $25,000 in local communications services tax, imposed under Section 202.19(1), F.S., on charges for interstate communications services that originate outside Florida and terminate inside Florida that are billed to each individual service address identified on a permit in any municipality or county imposing a local communications services tax.

(c) The filing of the returns for the taxes identified on a direct pay permit must be made on a monthly basis, and the tax may be remitted in one of the following manners:

1. The tax due may be prorated throughout the calendar year;

2. The tax due, based on a permit holder's purchases, may be paid to the Department as the applicable tax is accrued; or

3. The total amount of the tax due, not to exceed the amount of the partial exemption authorized under the permit, may be paid in full as a single payment with the first return of each calendar year. Subsequent returns must be filed indicating that no tax is due with the return.

(d) A return must be filed by a direct pay permit holder even if no tax is due.

(e) A permit holder must pay its tax obligation to the Department using electronic funds transfer, as required by Section 202.30(1), F.S., and Rule Chapter 12-24, F.A.C., and must submit its return using electronic data interchange, as required by Section 202.30(2), F.S., and Rule Chapter 12-24, F.A.C.

(f) In the calendar year of issuance, any amounts of communications services taxes paid by a permit holder to its provider(s) after the effective date of a direct pay permit will be included in the total amount of communications services tax due to the Department for that calendar year. When remitting the remaining amounts to the Department, the amount paid directly to communications services provider(s) after the effective date of a permit may be deducted from the total amount due to the Department. In the event that a permit holder has paid to its provider(s) an amount that exceeds the amount of tax allowed by the permit, the permit holder must obtain the applicable refund or credit from its provider(s).

(g) Communications services taxes and local communications services taxes are due and must be paid to the selling dealer or directly to the Department on all charges for intrastate communications services and charges for interstate communications services that originate inside Florida and terminate outside Florida.

(6) COMMUNICATIONS SERVICES TAX DIRECT PAY PERMIT FOR TAX DUE UPON DETERMINATION OF USE.

(a) Persons that are issued a direct pay permit under the provisions of this subsection will receive Form DR-700031, Communications Services Tax Direct Pay Permit. Permit holders must provide a copy of Form DR-700031 to the communications services dealer to purchase communications services identified on the permit tax-exempt at the time of purchase.

(b) Permit holders are required to file tax returns on a monthly basis and pay to the Department the amount of the state communications services tax, imposed under Sections 202.12 and 203.01(1)(a)2., F.S., and the amount of local communications services taxes, imposed under Section 202.19, F.S., due upon the determination of the use of such communications services.

(7) In the event that an original communications services tax direct pay permit is lost or destroyed, a permit holder may request a replacement by contacting the Department at (850)488-6800. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).Written requests should be addressed to Account Management, Florida Department of Revenue, P.O. Box 6480, Tallahassee, Florida 32314-6480.

(8)

(a) Persons that are registered with the Department for the communications services tax do not receive a collection allowance unless communications services taxes are actually collected and remitted to the Department. See paragraph (3)(b) concerning the requirement to file form DR-700020, Notification of Method Employed to Determine Taxing Jurisdiction.

(b) Communications Services Tax Annual Resale Certificates may only be used in the manner provided by Rule 12A-19.060, F.A.C., Sales for the Purpose of Resale.

(9) RECORDKEEPING REQUIREMENTS.

(a) Any holder of a communications services tax direct pay permit is required to keep and preserve all information and documentation necessary to substantiate that the holder was qualified to receive a communications services tax direct pay permit and that the holder has paid all tax due on its purchases of communications services until such time as the taxes imposed by and administered under Chapter 202, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(b) A dealer of communications services is not required to collect communications services taxes identified on the communications services tax direct pay permit for services sold to a permit holder. A dealer shall retain a copy of a permit in its records until such time as the taxes imposed by and administered under Chapter 202, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(c) Electronic storage of all required records through use of imaging, microfiche, or other electronic storage media will be sufficient compliance with the provisions of this subsection.

Fla. Admin. Code Ann. R. 12A-19.030

Rulemaking Authority 202.26(3)(e), (i), 202.27(7) FS. Law Implemented 202.12(3), 202.16(4), 202.19(7), 202.27(7)(b), 202.30, 202.34(3) FS.

New 1-31-02, Amended 4-17-03, 4-5-07.