Skip to Navigation | Skip to Main Content | Skip to Site Map | Mobile Site

Senate Tracker: Sign Up | Login

The Florida Senate

2005 Florida Statutes

Section 202.12, Florida Statutes 2005

1202.12  Sales of communications services.--The Legislature finds that every person who engages in the business of selling communications services at retail in this state is exercising a taxable privilege. It is the intent of the Legislature that the tax imposed by chapter 203 be administered as provided in this chapter.

(1)  For the exercise of such privilege, a tax is levied on each taxable transaction, and the tax is due and payable as follows:

(a)  Except as otherwise provided in this subsection, at a rate of 6.8 percent applied to the sales price of the communications service which:

1.  Originates and terminates in this state, or

2.  Originates or terminates in this state and is charged to a service address in this state,

when sold at retail, computed on each taxable sale for the purpose of remitting the tax due. The gross receipts tax imposed by chapter 203 shall be collected on the same taxable transactions and remitted with the tax imposed by this paragraph. If no tax is imposed by this paragraph by reason of s. 202.125(1), the tax imposed by chapter 203 shall nevertheless be collected and remitted in the manner and at the time prescribed for tax collections and remittances under this chapter.

(b)  At the rate of 10.8 percent on the retail sales price of any direct-to-home satellite service received in this state. The proceeds of the tax imposed under this paragraph shall be accounted for and distributed in accordance with s. 202.18(2). The gross receipts tax imposed by chapter 203 shall be collected on the same taxable transactions and remitted with the tax imposed by this paragraph.

(c)  At the rate set forth in paragraph (a) on the sales price of private communications services provided within this state, which shall be determined in accordance with the following provisions:

1.  Any charge with respect to a channel termination point located within this state;

2.  Any charge for the use of a channel between two channel termination points located in this state; and

3.  Where channel termination points are located both within and outside of this state:

a.  If any segment between two such channel termination points is separately billed, 50 percent of such charge; and

b.  If any segment of the circuit is not separately billed, an amount equal to the total charge for such circuit multiplied by a fraction, the numerator of which is the number of channel termination points within this state and the denominator of which is the total number of channel termination points of the circuit.

The gross receipts tax imposed by chapter 203 shall be collected on the same taxable transactions and remitted with the tax imposed by this paragraph.

(d)  At the rate set forth in paragraph (a) applied to the sales price of all mobile communications services deemed to be provided to a customer by a home service provider pursuant to s. 117(a) of the Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252, if such customer's service address is located within this state.

(2)  A dealer of taxable communications services shall bill, collect, and remit the taxes on communications services imposed pursuant to chapter 203 and this section at a combined rate that is the sum of the rate of tax on communications services prescribed in chapter 203 and the applicable rate of tax prescribed in this section. However, a dealer shall, in reporting each remittance to the department, identify the portion thereof which consists of taxes remitted pursuant to chapter 203. Return forms prescribed by the department shall facilitate such reporting.

(3)  Notwithstanding any law to the contrary, the combined amount of taxes imposed under this section and s. 203.01(1)(a)2. shall not exceed $100,000 per calendar year on charges to any person for interstate communications services that originate outside this state and terminate within this state. This subsection applies only to holders of a direct-pay permit issued under this subsection. A refund may not be given for taxes paid before receiving a direct-pay permit. Upon application, the department may issue one direct-pay permit to the purchaser of communications services authorizing such purchaser to pay the Florida communications services tax on such services directly to the department if the majority of such services used by such person are for communications originating outside of this state and terminating in this state. Only one direct-pay permit shall be issued to a person. Such direct-pay permit shall identify the taxes and service addresses to which it applies. Any dealer of communications services furnishing communications services to the holder of a valid direct-pay permit is relieved of the obligation to collect and remit the taxes imposed under this section and s. 203.01(1)(a)2. on such services. Tax payments and returns pursuant to a direct-pay permit shall be monthly. As used in this subsection, "person" means a single legal entity and does not mean a group or combination of affiliated entities or entities controlled by one person or group of persons.

History.--ss. 3, 58, ch. 2000-260; ss. 3, 4, 38, ch. 2001-140; s. 2, ch. 2005-187.


A.  Section 11, ch. 2005-187, provides that "[s]ections 1 through 10 of this act shall take effect [June 10, 2005,] and shall apply retroactively to October 1, 2001."

B.  Section 9, ch. 2005-187, provides that "[t]he retroactive application of the provisions of this act are remedial in nature and shall not be construed to create a right to a refund or to require a refund by any governmental entity of any tax, penalty, or interest remitted to the Department of Revenue on substitute communications systems prior to the effective date of this act." Section 20, ch. 2005-187, provides an effective date of July 1, 2005, for ch. 2005-187. Section 11, ch. 2005-187, provides that ss. 1-10 take effect upon becoming law; the Governor approved ch. 2005-187 on June 10, 2005.

C.  Section 12, ch. 2005-187, provides that:

"(1)  The Communications Service Tax Task Force is created and housed for administrative purposes within the Department of Revenue. The task force shall operate independently of the department.

"(2)(a)  The task force shall consist of nine members, three appointed by the Governor, three appointed by the President of the Senate, and three appointed by the Speaker of the House of Representatives. Members shall serve at the pleasure of the appointing official. Any vacancy shall be filled in the same manner as the original appointment.

"(b)  All members shall possess expertise in state or national telecommunications policy, taxation, law, or technology. A member of the Legislature or a registered lobbyist may not be appointed to the task force.

"(c)  Members shall serve without compensation, but are entitled to reimbursement of travel and per diem expenses pursuant to section 112.061, Florida Statutes, relating to completing their duties and responsibilities under this section.

"(3)  The task force shall study:

"(a)  The national and state regulatory and tax policies relating to the communications industry, including the Internet Tax Freedom Act;

"(b)  The levels of tax revenue that have been generated by the communications services taxes imposed or administered pursuant to chapter 202, Florida Statutes, in the past and that are expected to be generated in the future, and their adequacy in funding government services and bonded indebtedness that rely on them;

"(c)  The impact of the communications services taxes on Florida's competitiveness;

"(d)  The impact of the diversity of communications technology and of changes in such technology on the state's ability to design tax laws, the applicability of which is reasonably clear to communications service providers and state administrators, and which are susceptible to efficient and fair administration by the state;

"(e)  The administrative burdens imposed on communications services providers; and

"(f)  To the extent that future revenues from the communications services tax are expected to be inadequate to fund government services and bonded indebtedness that rely on them, the options that are available for funding these services and bonded indebtedness.

"(4)  The task force shall hold its organizational meeting by July 15, 2006. It shall select a chair and vice chair and shall meet at the call of the chair at the time and place designated by the chair or as often as necessary to accomplish the purposes of this section. A quorum is necessary for the purpose of conducting official business of the task force. The task force shall use accepted rules of procedure to conduct its meetings and shall keep a complete record of each meeting.

"(5)  The Public Service Commission shall provide staff for the technical and regulatory issues addressed by the task force. The Department of Revenue shall provide administrative support and staff for the tax issues addressed by the task force.

"(6)  The task force shall report its findings and recommendations to the Governor, the President of the Senate, and the Speaker of the House of Representatives by February 1, 2007. The task force shall be dissolved by December 31, 2007."

D.  Section 18, ch. 2005-187, provides that "[t]he Executive Director of the Department of Revenue is authorized, and all conditions are deemed met, to adopt emergency rules under sections 120.563(1) and 120.54(4), Florida Statutes, to administer this act. Notwithstanding any other provision of law, the emergency rules shall remain effective for 6 months after the date of their adoption and may be renewed during the pendency of procedures to adopt rules addressing the subject of the emergency rules."