9222874, 12A-1.0615 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 9222874

Notice of Proposed Rule

Department:

DEPARTMENT OF REVENUE

Division:

Sales and Use Tax

Chapter:

SALES AND USE TAX

Overview

RULE:

12A-1.0615

Hotel Rewards Points Programs

PURPOSE:

Rule 12A-1.0615, F.A.C. (Hotel Reward Points Programs), is being created to provide for the application of Florida tax in situations involving hotel reward points programs within the transient rentals industry that reflects the findings of Report Number 2005-131, “Application of the Tourist Development Tax to the Sale of Discounted Hotel Rooms Over the Internet and the Hotel Rewards Points Program,” issued by the Senate Committee on Government Efficiency Appropriations. This rule sets forth when transient lodging accommodations provided to reward points programs members will be subjected to Florida’s taxes on those accommodations, including the state sales tax, local surtax, and any locally-imposed convention development tax, tourist development tax, tourist impact tax, and municipal resort tax. This rule also sets forth when transactions between the administrator of a hotel reward points program and the hotel participating in the program are subject to tax.

SUMMARY:

The proposed creation of Rule 12A-1.0615, F.A.C. (Hotel Reward Points Programs): (1) provides that the rule will govern the taxation of transactions between hotel reward points program administrators and hotels within the program; (2) provides that no tax is to be collected from a member of a program when the member uses a certificate or confirmation number and is provided a room at no charge; (3) defines the terms “hotel,” “reimbursements,” and “contributions”; (4) provides that tax is due when a hotel receives more in reimbursements from the program fund than it paid in contributions to the program fund in the prior calendar year; (5) provides the calculation of taxable reimbursements for a hotel’s initial twelve months of participation in a program and for each calendar year subsequent to the initial year of operation, including examples of the calculations; and (6) provides the recordkeeping requirements of hotels participating in a reward points program.

RULEMAKING AUTHORITY:

125.0104(3)(k), 125.0108(2)(e), 212.0305(3)(f), 212.12(12), 212.17(6), 212.18(2), 213.06(1) FS., Ch. 67-930, L.O.F.

LAW:

125.0104(1)-(4), (8), (10), 125.0108, 212.03(1)-(5), (7), 212.0305, 212.054 FS., Ch. 67-930, L.O.F.

PRINT PUBLISH DATE:

10/8/2010 Vol. 36/40

COMMENTS:

From 10/8/2010 To 10/29/2010 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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