5621846, 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: 5621846

Notice of Proposed Rule

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, Florida Administrative Code (F.A.C.), Gross Receipts Tax, is to implement: (1) the provisions of Sections 203.01 and 203.012, Florida Statutes (F.S.), as amended by Sections 1 and 2, Chapter 2005-148, Laws of Florida (L.O.F.), which, effective January 1, 2006, imposes a tax on utility services delivered to a retail consumer in Florida; and (2) the provisions of Section 2, Chapter 2007-60, L.O.F., which moves the due date of the payment of tax from the last day of the month to the 20th day of the month. When adopted, these proposed changes to Rule Chapter 12B-6, F.A.C., will provide for the administration of the gross receipts tax imposed on utility services.

SUMMARY:

The substantial rewording of Rule 12B-6.001, F.A.C.: (1) changes the title to “Scope; Definitions; Index Price”; (2) provides 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) defines 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) provides that the gross receipts tax imposed on certain utility services delivered to a retail consumer in Florida is based on an index price; (5) provides how the Department will announce the annual index prices for electricity and for natural and manufactured gas; (6) provides 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) provides 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.
Proposed new Rule 12B-6.0015, F.A.C. (Imposition of the Gross Receipts Tax), provides: (1) 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) how the tax is computed based on the index price; (3) 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 how to document such sales or charges; (4) 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 how to document such sales or charges; (5) 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 how the tax is to be calculated; (6) that the tax does not apply to receipts from customers for purposes of resale; (7) that receipts from separately itemized charges for the connection, disconnection, suspension, or restoration of utility services are not subject to tax; (8) that receipts from separately itemized fees for returned checks, late payments, and interest due on late payments are not subject to gross receipts tax; (9) 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) that the gross receipts tax applies 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) 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) 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) that the sale or delivery of electricity as part of an electric interchange agreement or contract between utilities is not subject to tax and provides guidelines on how to document such sale or delivery; (14) 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) that separately itemized charges for gross receipts tax on a customer’s bill, invoice, statement, or other evidence of sale are a part of the gross receipts of a distribution company; (16) for 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) the documentation requirements, including a suggested resale certificate, for tax-exempt sales of utility services for purposes of resale and when the Department will accept resale certificates to document tax-exempt sales for the purpose of resale; and (18) recordkeeping requirements for taxpayers who sell or deliver utility services.
The proposed amendments to Rule 12B-6.0021, F.A.C. (Registration), provide: (1) 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; and (2) updated information on how to register with the Department.
The proposed amendments to Rule 12B-6.005, F.A.C. (Payment of Tax; Reports; Public Use Forms): (1) replace the term “utility provider” with the term “taxpayer”; (2) incorporate the provisions of Section 2, Chapter 2007-60, L.O.F., which move the due date for reporting and remitting the gross receipts tax from the last day of the month to the 20th day of the month; (3) provide 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; (4) remove obsolete provisions regarding the filing of an application for refund; (5) 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 (6) adopt changes to Form DR-133, Gross Receipts Tax Return, and update information on how to obtain copies of the form from the Department.
The amendments to Rule 12B-6.0051, F.A.C. (Public Service Tax Reporting Form), update information on how to obtain Form DR-700001, Municipal Public Service Tax Data Base, from the Department.
The amendments to Rule 12B-6.008, F.A.C. (Interest), provide that interest shall not exceed one percent per month and remove obsolete provisions regarding interest for payments due prior to January 1, 2000.

RULEMAKING AUTHORITY:

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

LAW:

166.233, 203.01, 203.012, 203.06, 213.235, 213.255(1), (2), (3), 213.37, 231.755, 215.26 FS.

PRINT PUBLISH DATE:

5/16/2008 Vol. 34/20

COMMENTS:

From 5/16/2008 To 6/6/2008 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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