12A-1.056: Tax Due at Time of Sale; Tax Returns and Regulations
12A-1.105: Service Warranties
PURPOSE AND EFFECT: The purpose of the proposed amendments to Rule 12A-1.056, Florida Administrative Code (F.A.C.) (Tax Due at Time of Sale; Tax Returns and Regulations) is to: (1) clarify instructions to dealers who cannot reasonably compile the information required for an accurate sales and use tax return on a calendar month basis on how to request to file and pay returns on an alternative-period basis; and (2) require dealers who have obtained authorization from the Department to file returns and pay tax on an alternative-period basis to provide the Department with a calendar of alternate-reporting periods each calendar year.
The purpose of the proposed amendments to Rule 12A-1.105, F.A.C. (Service Warranties), is to clarify that service warranties to repair, maintain, or replace tangible personal property are not subject to tax if the parts and labor to repair the property are exempt from sales and use tax, as provided in Section 21, Chapter 2007-106, Laws of Florida.
SUBJECT AREA TO BE ADDRESSED: The subject area of the workshop is: (1) the requirement for taxpayers who report on an alternate-reporting period to provide a calendar of the alternate reporting periods to the Department each calendar year; and (2) the clarification that service warranties to repair, maintain, or replace tangible personal property are not subject to sales tax if the parts and labor to repair the property are exempt from sales and use tax.
SPECIFIC AUTHORITY: 212.17(6), 212.18(2), 213.06(1) FS.
LAW IMPLEMENTED: 125.0104(3)(g), 125.0108(2)(a), 212.02(4), (14)(a), (16), 212.03(2), 212.0305(3)(c), 212.031(3), 212.04(3), (4), 212.0506, 212.055, 212.06, 212.0606, 212.08(7)(v), 212.11, 212.12(1), (2), (3), (4), (5), 212.14(2), 212.15(1), 212.18(3), 213.235, 213.755, 370.07(3), 373.41492, 376.70, 376.75, 403.718, 403.7185, 634.011, 634.131, 634.401, 634.415, 681.117 FS.
A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: February 20, 2008, 10:00 a.m.
PLACE: Room 118, Carlton Building, 501 S. Calhoun Street, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Larry Green at (850)922-4830. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Janet L. Young, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone (850)922-9407
THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS:
12A-1.056 Tax Due at Time of
(1) DUE DATES FOR PAYMENTS AND TAX RETURNS.
(a) The total amount of tax on cash sales, credit sales, installment sales, or sales made on any kind of deferred payment plan shall be due at the moment of the transaction. Except as provided in Rule Chapter 12-24, F.A.C., Rules 12A-1.005, and 12A-1.070, F.A.C., and this rule, all taxes required under Chapter 212, F.S., to be collected or paid in any month, are due to the Department on the first day of the month following the date of sale or transaction. The payment and return must be delivered to the Department or be postmarked on or before the 20th day of the month following the date of sale or transaction for a dealer to be entitled to the collection allowance and to avoid penalty and interest for late filing. If the 20th day falls on a Saturday, Sunday, or legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For purposes of this rule, a legal holiday means a holiday that is observed by federal or state agencies as a legal holiday as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the
(b) through (c) No change.
(d)1. If a A dealer cannot reasonably compile the information required for an accurate return on a calendar month basis, the dealer may who maintains records on a period other than a monthly basis can request to file returns and pay tax on an alternative-period basis a variation from monthly filing and remittance of the tax. The dealer’s request must be in writing and must be submitted by submitting a written request to the Florida Department of Revenue, Return Reconciliation, Building F-3,
a. The name of the business;
b. The business mailing address;
c. The business partner number;
d.c. The dealer’s certificate of registration number;
e.d. A detailed explanation why the dealer cannot reasonably file returns on a calendar month basis of the problems associated with filing on a monthly basis; and
f.e. The beginning and ending month and, day, and year of each requested alternative- reporting period for the current calendar year.
2. When the Department Executive Director or the Executive Director’s designee determines that the dealer cannot reasonably compile the information required for the making of an accurate return cannot reasonably be compiled by a taxpayer on a calendar month basis, the Department the Executive Director or the Executive Director’s designee will notify the dealer in writing that the dealer may report as an alternative-period filer deviation from monthly filing of returns and remitting of tax is authorized. Alternative-period returns and payments Such payments and returns are due on the first day after succeeding the end of the designated alternative-reporting period and become delinquent on the twenty-first day after succeeding the end of the alternative-reporting period.
3. Each year, dealers who have been authorized to file on an alternative-reporting basis must provide a calendar of alternative-reporting dates for the upcoming year. The dealer must provide the calendar by December 15, and the calendar must include all alternative-reporting periods for the following calendar year. The annual calendars may be submitted to the Department by any one of the following means:
a. E-mailing the calendar to conssut@dor.state.fl.us;
b. Faxing the calendar to Returns Reconciliation/Sales Tax Unit at (850)922-9672;
c. Mailing the calendar to General Tax Administration, Returns Reconciliation/Sales and Use Tax Unit,
(e) through (i) No change.
(2) through (4) No change.
Specific Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 125.0104(3)(g), 125.0108(2)(a), 212.03(2), 212.0305(3)(c), 212.031(3), 212.04(3), (4), 212.0506(4), (11), 212.055, 212.06(1)(a), 212.0606, 212.11, 212.12(1), (2), (3), (4), (5), 212.14(2), 212.15(1), 213.235, 213.755, 370.07(3), 373.41492, 376.70, 376.75, 403.718, 403.7185, 681.117 FS. History–Revised 10-7-68, 6-16-72, Amended 10-21-75, 6-9-76, 11-8-76, 2-21-77, 4-2-78, 10-18-78, 12-23-80, 8-26-81, 9-24-81, 11-23-83, 5-28-85, Formerly 12A-1.56, Amended 3-12-86, 1-2-89, 12-19-89, 12-7-92, 10-20-93, 10-17-94, 3-20-96, 4-2-00, 6-19-01, 8-1-02, 4-17-03, 9-28-04,_________.
12A-1.105 Service Warranties.
(1)(a) Every person who solicits, offers, provides, enters into, issues, or delivers any service warranty, or who receives, on behalf of another person, any consideration from a service warranty holder is exercising a taxable privilege and shall register as a dealer with the Department of Revenue before such person may engage in or conduct business in this state. See Rule 12A-1.060, F.A.C.
(b)1. The term “service warranty” means any contract or agreement which indemnifies the holder of the contract or agreement for the cost of maintaining, repairing, or replacing tangible personal property, whether or not the contract provides for the furnishing of parts. The term “service warranty” includes motor vehicle warranties issued under Part I of Chapter 634, F.S., and service warranties issued under Part III of Chapter 634, F.S.
a. through e. No change.
2. The term “service warranty” does not include contracts or agreements to repair, maintain, or replace tangible personal property if such property when sold at retail in this state would not be subject to sales tax or if the parts and labor to repair tangible personal property qualify for an exemption under Chapter 212, F.S.
a. through b. No change.
c. Example: A maintenance contract covering the cost of parts and labor that are exempt when used to repair industrial machinery and equipment, as provided in Section 212.08(7)(xx), F.S., is not considered a service warranty contract.
3. No change.
(c) through (d) No change.
(2) through (5) No change.
Specific Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(4), (14)(a), (16), 212.0506, 212.06, 212.08(7)(v), 212.18(3), 634.011, 634.131, 634.401, 634.415 FS. History–New 1-2-89, Amended 12-11-89, 8-10-92, 1-4-94, 3-20-96, 4-2-00, 6-19-01, 5-1-06,________.