Florida Regulations 12A-19.042: Governmental Exemption from the Communications Services Tax
Current as of: 2024 | Check for updates
|
Other versions
(1)(a) The sale of communications services, as defined in Florida Statutes § 202.11(1), is subject to the Florida communications services tax and the local communications services tax, unless specifically exempt.
(b) This rule governs the documentation and recordkeeping requirements regarding the exemption for sales to the federal government, state government, and political subdivisions of the state or federal government from the communications services taxes.
(2) SALES TO THE FEDERAL GOVERNMENT. The sale of communications services to the Federal Government, its agencies or instrumentalities, or any entity that is exempt from state taxes under federal law is exempt from the Florida communications services tax and the local communications services tax.
(3) SALES TO THE STATE AND POLITICAL SUBDIVISIONS. The sale of communications services to a state or any county, municipality, or political subdivision of a state is exempt from the Florida communications services tax and the local communications services tax.
(4) DOCUMENTATION REQUIREMENTS.
(a) A dealer is not obligated to collect and remit the Florida communications services tax and the local communications services tax on such sales when either of the following two alternative documentation requirements has been met and the payments are made directly by the governmental entity.
1. A dealer has on file a writing or document evidencing a representation of the dealer’s customer that the communications services are being purchased by an entity described in subsection (2) or (3). The writing or document may be a customer application, a certificate, or a series of billing statements to the customer that identifies the customer as such an entity and that provides the customer a means to change its classification if the communications services are no longer purchased for use by the entity. A “”customer application”” includes a record of information obtained electronically or orally from the customer in the ordinary course of business at the time of establishing the account.
2. A dealer has on file a copy of the customer’s Florida Consumer’s Certificate of Exemption (form DR-14) identifying the customer as “”federal,”” “”state,”” “”county,”” or “”municipality.””
(b) A dealer must have acted in good faith in accepting the representation of the customer.
(c) When a dealer accepts a payment made using an authorized Purchasing or Procurement Card (“”P-Card””) that indicates on its face that it is a Florida state or local government purchasing card for official business only, a dealer should not charge any communications services taxes.
1. To substantiate the exempt nature of the sale in its books and records, a dealer is only required to either:
a. Obtain a copy of the face of the Purchasing or Procurement Card, or
b. Obtain the tax exempt number, account number, and cardholder name from the face of the card.
2. Payments made using a Purchasing or Procurement Card are direct payments by the authorizing governmental entity. A dealer is not required to obtain a copy of the governmental entity’s Consumer’s Certificate of Exemption.
3. A dealer is not obligated to determine what items the Purchasing or Procurement card may or may not be used to purchase. It is the cardholder’s responsibility to use the card only for allowable purchases.
(5) RECORDKEEPING REQUIREMENTS.
(a) When a dealer has complied with the documentation requirements of this rule and the Department determines that tax, penalty, and interest are due, the Department will look to the customer for payment of the tax, penalty, and interest due. The Department will look to a dealer for payment of any applicable tax, penalty, and interest due when a dealer’s books and records demonstrate a failure to comply with the documentation requirements of this rule.
(b) 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.
Rulemaking Authority 202.26(3)(c) FS. Law Implemented 202.125(2), (3), 202.13(2), 202.16(4), 202.34(3) FS. History-New 1-31-02.
(2) SALES TO THE FEDERAL GOVERNMENT. The sale of communications services to the Federal Government, its agencies or instrumentalities, or any entity that is exempt from state taxes under federal law is exempt from the Florida communications services tax and the local communications services tax.
(3) SALES TO THE STATE AND POLITICAL SUBDIVISIONS. The sale of communications services to a state or any county, municipality, or political subdivision of a state is exempt from the Florida communications services tax and the local communications services tax.
(4) DOCUMENTATION REQUIREMENTS.
(a) A dealer is not obligated to collect and remit the Florida communications services tax and the local communications services tax on such sales when either of the following two alternative documentation requirements has been met and the payments are made directly by the governmental entity.
1. A dealer has on file a writing or document evidencing a representation of the dealer’s customer that the communications services are being purchased by an entity described in subsection (2) or (3). The writing or document may be a customer application, a certificate, or a series of billing statements to the customer that identifies the customer as such an entity and that provides the customer a means to change its classification if the communications services are no longer purchased for use by the entity. A “”customer application”” includes a record of information obtained electronically or orally from the customer in the ordinary course of business at the time of establishing the account.
2. A dealer has on file a copy of the customer’s Florida Consumer’s Certificate of Exemption (form DR-14) identifying the customer as “”federal,”” “”state,”” “”county,”” or “”municipality.””
(b) A dealer must have acted in good faith in accepting the representation of the customer.
(c) When a dealer accepts a payment made using an authorized Purchasing or Procurement Card (“”P-Card””) that indicates on its face that it is a Florida state or local government purchasing card for official business only, a dealer should not charge any communications services taxes.
1. To substantiate the exempt nature of the sale in its books and records, a dealer is only required to either:
a. Obtain a copy of the face of the Purchasing or Procurement Card, or
b. Obtain the tax exempt number, account number, and cardholder name from the face of the card.
2. Payments made using a Purchasing or Procurement Card are direct payments by the authorizing governmental entity. A dealer is not required to obtain a copy of the governmental entity’s Consumer’s Certificate of Exemption.
3. A dealer is not obligated to determine what items the Purchasing or Procurement card may or may not be used to purchase. It is the cardholder’s responsibility to use the card only for allowable purchases.
(5) RECORDKEEPING REQUIREMENTS.
(a) When a dealer has complied with the documentation requirements of this rule and the Department determines that tax, penalty, and interest are due, the Department will look to the customer for payment of the tax, penalty, and interest due. The Department will look to a dealer for payment of any applicable tax, penalty, and interest due when a dealer’s books and records demonstrate a failure to comply with the documentation requirements of this rule.
(b) 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.
Rulemaking Authority 202.26(3)(c) FS. Law Implemented 202.125(2), (3), 202.13(2), 202.16(4), 202.34(3) FS. History-New 1-31-02.