25717918, 12A-1.004 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 25717918

Notice of Proposed Rule

Department:

DEPARTMENT OF REVENUE

Division:

Sales and Use Tax

Chapter:

SALES AND USE TAX

Overview

RULE:

12A-1.004	Sales Tax Brackets (Repealed)
12A-1.005	Admissions
12A-1.020	Licensed Practitioners; Drugs, Medical Products and Supplies
12A-1.056	Tax Due at Time of Sale; Tax Returns and Regulations
12A-1.057	Alcoholic and Malt Beverages
12A-1.060	Registration
12A-1.070	Leases and Licenses of Real Property; Storage of Boats and Aircraft
12A-1.091	Use Tax
12A-1.097	Public Use Forms
12A-1.103	Remote Sales; Marketplaces
12A-1.104	Sales of Property to be Transported to a Cooperating State (Repealed)
12A-1.108	Exemption for Data Center Property
12A-1.112	Sales Tax Paid by Dealers on Behalf of Purchasers

PURPOSE:

The purpose of this rulemaking is to update the Department’s rules relating to sales and use tax to address 2021 legislative changes contained in Chapter 2021-2, Laws of Florida, and Chapter 2021-31, Laws of Florida. Revisions to Rule 12A-1.005 replace the application of the sales tax bracket system with the application of the rounding algorithm to the sale of admissions (Chapter 2021-2, § 11, L.O.F.). Revisions to Rule 12A-1.020 incorporate the exemption from tax of specific items of tangible personal property that assist in independent living (Chapter 2021-31, § 21, L.O.F.); these revisions are included in Form DR-46NT, Nontaxable Medical Items and General Grocery List, which is incorporated by reference in Rule 12A-1.097. Revisions to Rules 12A-1.056, 12A-1.060, 12A-1.091, and 12A-1.103 implement changes regarding the taxation of marketplace sales and remote sales (Chapter 2021-2, L.O.F.). Effective July 1, 2021, marketplace providers and persons who made a substantial number of remote sales in the previous calendar year are required to electronically register with the Department, collect sales tax, and electronically remit collected taxes. Effective April 1, 2022, marketplace sellers may collect and remit sales tax on sales made through a marketplace when the marketplace seller meets the conditions set forth in s. 212.05965(11), F.S. The newly created reference document Form DR-1MP, Florida Business Tax Application for Marketplace Providers and Remote Sales, is incorporated in Rule 12A-1.060 and provides screenshots of registration screens required to be completed by an out-of-state business that is a marketplace provider or that makes remote sales and is registering as a new business in Florida (Chapter 2021-2, L.O.F.). Proposed amendments to Rule 12A-1.097 incorporate revisions to two forms which implement provisions related to marketplace providers and remote sales: Form DR-1, Florida Business Tax Application; and Form DR-1A, Application for Registered Businesses to Add a New Florida Location (Chapter 2021-2, L.O.F.); additionally, the forms include a revision to the question for the registration for collection of the rental car surcharge; revisions to three forms to replace the sales tax bracket system with information about the new rounding algorithm (Chapter 2021-2, § 11, L.O.F.): Form DR-7N, Instructions for Consolidated Sales and Use Tax Return; Form DR-15EZN, Instructions for DR-15EZ Sales and Use Tax Returns; and Form DR-15N, Instructions for DR-15 Sales and Use Tax Returns. Revisions to Rule 12A-1.057 and the creation of Rule 12A-1.112 address when a dealer may advertise or hold out to the public that they will pay all or part of the sales tax imposed by Chapter 212, F.S (Chapter 2021-31, § 19, L.O.F.). Revisions to Rule 12A-1.070 and the proposed repeal of Rule 12A-1.004 remove reference to the sales tax bracket system which has been replaced with a rounding algorithm (Chapter 2021-2, § 11, L.O.F.). Rule 12A-1.104 is proposed for repeal as it is duplicative of statute. Revisions to Rule 12A-1.108 extend the date for applications for a Data Center Property Temporary Tax Exemption Certificate (Chapter 2021-31, § 20, L.O.F.). The rulemaking addresses amendments to Sections 212.04, 212.05, 212.054, 212.0596, 212.06, 212.07, 212.11, 212.12, and 212.18, F.S., as well as the creation of Section 212.05965, F.S., contained in Chapter 2021-2, L.O.F. The rulemaking also addresses amendments to Sections 212.06, 212.07, and 212.08, F.S., contained in Chapter 2021-31, L.O.F.

SUMMARY:

Rule 12A-1.004 is proposed for repeal as the 2021 legislature replaced the sales tax bracket system with a rounding algorithm. Proposed revisions to Rule 12A-1.005 address the collection of sales tax on the cost of admission based on the rounding algorithm which has replaced the sales tax bracket system and is consistent with emergency rule 12AER21-7. The proposed amendments for Rule 12A-1.020 incorporate a 2021 legislative change which exempts specific items that assist in independent living; this list has been added to Form DR-46NT, Nontaxable Medical Items and General Grocery List, which is incorporated by reference in Rule 12A-1.097. The proposed rule language for Rule 12A-1.056 strikes language related to the collection allowance for dealers who made mail order sales and is consistent with emergency rule 12AER21-8. Revisions to Rule 12A-1.057 address 2021 legislative changes to the provisions restricting dealers from absorbing part of or all sales tax in addition to the removal of obsolete language. The proposed rule language for Rule 12A-1.060 is consistent with emergency rule 12AER21-9, which included a previous version of Form DR-1MP; provides information regarding how marketplace providers, marketplace sellers, and remote sellers must register as dealers with the Department; adopts, by reference, Form DR-1MP, Florida Business Tax Application for Marketplace Providers and Remote Sales, which is provided as a reference for businesses registering as a marketplace provider or remote seller. The proposed rule language for Rule 12A-1.070 is consistent with emergency rule 12AER21-10, which strikes language related to the sales tax bracket system. The proposed revision to Rule 12A-1.091 replaces the term mail order sales with the term remote sales and is consistent with emergency rule 12AER21-11. Proposed revisions to Rule 12A-1.097 incorporate revisions to two forms implementing provisions related to marketplace providers, remote sales, and rental car surcharge; revisions to three forms that replace the sales tax bracket system with information about the new rounding algorithm; and revisions to one form to include a list of items that assist in independent living which are exempt from sales tax. Rule 12A-1.103 has been substantially reworded so the rule includes definitions related to marketplaces and remote sales; stipulates who is required to collect sales tax on sales made through a marketplace; includes provisions for certain marketplace sellers to collect sales tax on sales made through a marketplace; provides that marketplace providers and remote sellers are required to collect both sales tax and discretionary sales surtax; and is based on emergency rule 12AER21-13. Rule 12A-1.104 is proposed for repeal as it is duplicative of statute. Revisions to Rule 12A-1.108 extend the date for applications for a Data Center Property Temporary Tax Exemption Certificate. The proposed rule language creating Rule 12A-1.112 addresses when a dealer may advertise or hold out to the public that they will pay all or part of the sales tax imposed by Chapter 212, F.S.

RULEMAKING AUTHORITY:

201.11, 202.17(3)(a), 202.22(6), 202.26(3), 212.04(4), 212.0515(7), 212.0596(3), 212.06(5)(b)13., 212.07(1)(b), 212.08(5)(b)4., (n)4., (o)4., (7), 212.099(10), 212.11(5)(b), 212.12(1)(a)2., 212.17(8), 212.18(2), (3), 212.183, 213.06(1), 288.1258(4)(c), 376.70(6)(b), 376.75(9)(b), 403.718(3)(b), 403.7185(3)(b), 1002.40(16) FS.

LAW:

119.071(5), 125.0104, 125.0108, 201.01, 201.08(1)(a), 201.133, 202.11(2), (3), (6), (16), (24), 202.22(3)-(6), 202.28(1), 203.01, 212.02(1), 212.03, 212.0305, 212.031, 212.04, 212.05, 212.0501, 212.0506(4), (11), 212.0515, 212.054, 212.055, 212.0596, 212.05965, 212.06, 212.0606, 212.07, 212.08, 212.084(3), 212.085, 212.09, 212.096, 212.099, 212.11, 212.12, 212.13, 212.14(2), (4), (5), 212.15(1), 212.16(1), (2), 212.18(2), (3), 212.183, 212.1832, 212.19, 212.21(3), 213.235, 213.29, 213.37, 213.755, 215.26(6), 219.07, 288.1258, 290.00677, 365.172(9), 373.41492, 376.70, 376.75, 403.718, 403.7185, 443.131, 443.1315, 443.1316, 443.171(2), 465.187, 616.260, 681.117, 1002.40(13) FS.

PRINT PUBLISH DATE:

3/31/2022 Vol. 48/63

COMMENTS:

From 3/31/2022 To 4/21/2022 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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