3578638, 12B-6.001 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 3578638

Notice of Development of Rulemaking

Department:

DEPARTMENT OF REVENUE

Division:

Miscellaneous Tax

Chapter:

GROSS RECEIPTS TAX

Overview

RULE:

12B-6.001	Scope; Definitions; Index Price
12B-6.0015	Imposition of the Gross Receipts Tax
12B-6.0021	Registration
12B-6.005	Payment of Tax; Reports; Public Use Forms
12B-6.0051	Public Service Tax Reporting Form
12B-6.008	Interest

PURPOSE:

The purpose of the proposed amendments to Rule Chapter 12B-6, F.A.C., Gross Receipts Tax, is to implement the provisions of Sections 203.01 and 203.012, F.S., as amended by Sections 1 and 2, Chapter 2005-148, L.O.F., which, effective January 1, 2006, imposes a tax on utility services delivered to a retail consumer in Florida. When adopted, these proposed changes to Rule Chapter 12B-6, F.A.C., will provide guidelines regarding the Department’s administration of the gross receipts tax imposed by Chapter 203, F.S., as amended by Chapter 2005-148, L.O.F.
The purpose of the substantial rewording of Rule 12B-6.001, F.A.C., is to: (1) change the title to “Scope; Definitions; Index Price”; (2) provide that the rule chapter applies to the tax imposed under Chapter 203, F.S., on utility services delivered to a retail consumer in Florida; (3) define the terms “cost price,” “Department,” “distribution company,” “electricity index price,” “gas index price,” “gross receipts,” “person,” and “utility services” for purposes of the rule chapter; (4) provide that the gross receipts tax imposed on certain utility services delivered to a retail consumer in Florida is based on an index price; (5) provide how the Department will announce the annual index prices for electricity and for natural and manufactured gas; (6) provide that the index price applies to electricity only if the transportation of the electricity is sold independent of the sale of the electricity itself; and (7) when the calculation of the tax requires the use of an index price, the distribution company must use a reasonable methodology to apply the residential, commercial, and industrial classifications to its existing rate structure.
The purpose of the proposed creation of new Rule 12B-6.0015, F.A.C. (Imposition of the Gross Receipts Tax), is to: (1) provide that the 2.5 percent gross receipts tax is imposed on distribution companies’ gross receipts from the privilege of selling and transporting natural or manufactured gas to retail consumers in Florida; (2) provide how the tax is computed based on the index price; (3) provide that the sale or transportation of natural or manufactured gas to public or private utilities for use as a fuel in the generation of electricity or for resale is not subject to tax and provide guidelines on how to document such sales or charges; (4) provide that the sale or transportation of natural or manufactured gas to persons eligible for an exemption under Section 212.08(7)(ff)2., F.S., for use as an energy source or a raw material is not subject to tax and provide guidelines on how to document such sales or charges; (5) provide that the 2.5 percent gross receipts tax is imposed on distribution companies’ gross receipts from the privilege of selling and transporting electricity to retail consumers in Florida and explain how the tax is to be calculated; (6) provide that the tax does not apply to receipts from customers for purposes of resale; (7) provide that receipts from separately itemized charges for the connection, disconnection, suspension, or restoration of utility services are not subject to tax; (8) provide that receipts from separately itemized fees for returned checks, late payments, and interest due on late payments are not subject to the gross receipts tax; (9) provide that receipts from separately itemized charges for the sale, lease, rental, repair, or maintenance of customer premises equipment are not subject to gross receipts tax; (10) provide guidelines on how gross receipts tax is applied to charges for utility services separately itemized to customers as an amount for services based on a standard rate amount with a separate rate adjustment; (11) provide that each and every fee imposed by a political subdivision of the State of Florida that is passed on to the customer as a separately itemized charge is included in the gross receipts subject to tax; (12) provide that any municipal public service tax and any sales tax separately itemized to the customer is not included in the gross receipts subject to tax; (13) provide that the sale or delivery of electricity as part of an electric interchange agreement or contract between utilities is not subject to tax and provide guidelines on how to document such sale or delivery; (14) provide that wholesale sales of electric transmission services and the loss of electricity from  the generation, transmission, or distribution of electricity are not subject to tax; (15) provide guidelines regarding any separately itemized charge for gross receipts tax on a customer’s bill, invoice, statement, or other evidence of sale; (16) provide guidelines on the imposition of use tax on natural or manufactured gas imported into Florida for which the Florida gross receipts tax has not been paid; (17) provide guidelines on how to document sales of utility services for purposes of resale; and (18) provide recordkeeping requirements for taxpayers who sell or deliver utility services.
The purpose of the proposed amendments to Rule 12B-6.0021, F.A.C. (Registration), is to provide that prior to engaging in the business of selling, transporting, delivering, or importing utility services in Florida, every person is required to register with the Department.
The purpose of the proposed amendments to Rule 12B-6.005, F.A.C. (Payment of Tax; Reports; Public Use Forms), is to: (1) replace the term “utility provider” with the term “taxpayer”; (2) provide guidelines for when taxpayers may elect to pay the gross receipts tax on total billings for electricity each month or on the actual gross receipts for electricity received in that month; (3) remove obsolete provisions regarding the filing of an application for refund; (4) provide that persons engaged in the transportation of natural or manufactured gas must provide the Department with a list of customers to whom transportation services were provided in the prior year or post such list on a publicly-accessible Internet web site; and (5) update information on how to obtain Form DR-133, Gross Receipts Tax Return, from the Department.
The purpose of the proposed amendments to Rule 12B-6.0051, F.A.C. (Public Service Tax Reporting Form), is to update information on how to obtain Form DR-700001, Municipal Public Service Tax Data Base, from the Department.
The purpose of the proposed amendments to Rule 12B-6.008, F.A.C. (Interest), is to provide that interest shall not exceed one percent per month and to remove obsolete provisions regarding interest for payments due prior to January 1, 2000.

SUBJECT:

The subject of this rule development workshop is the proposed guidelines regarding the gross receipts tax imposed on utility services by Chapter 203, F.S., as amended, by Chapter 2005-148, L.O.F., and effective January 1, 2006.

RULEMAKING AUTHORITY:

166.233, 203.01(3)(a)2., 213.06(1) FS.

LAW:

166.233, 203.01, 203.06, 203.012, 213.235, 213.255(1), (2), (3), 213.37, 215.26 FS.

PRINT PUBLISH DATE:

2/23/2007 Vol. 33/08

RELATED STATUTES
AND LAWS:

166.233, 203.01(3)(a)2., 213.06(1) FS., 166.233, 203.01, 203.06, 203.012, 213.235, 213.255(1), (2), (3), 213.37, 215.26 FS.

OVERSIGHT COMMITTEE:

Joint Administrative Procedures Committee
Florida Administrative Law Central Online Network (F.A.L.C.O.N.)

RELATED COURT CASES:

Division of Administrative Hearings

FEDERAL eRULEMAKING
WEB PORTAL:

Regulations.gov

HOW TO LINK TO
THIS NOTICE:

http://flrules.org/gateway/ruleno.asp?id=12B-6.001&PDate=2/23/2007&Section=1

REFERENCE MATERIALS:

No reference(s).

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