Exemptions Form From The Communications Services Tax printable pdf download

Tax Information Publication- 2001

TIP # 01BER-04

DATE ISSUED: October 3, 2001

EXEMPTIONS FROM THE COMMUNICATIONS SERVICES TAX

Beginning October 1, 2001, communications services, such as telephone, cable television, direct-to-

home satellite, and fax services, are subject to the communications services tax instead of sales tax.

Residential households, governmental entities, and certain nonprofit organizations are partially or

entirely exempt from the communications services tax. Dealers and customers should be aware,

however, that the exemptions for residential households and for nonprofit organizations under the

new communications services tax differ from the sales tax exemptions that previously applied.

Are Residential Households Exempt from the Communications Services Tax?

SCOPE OF THE RESIDENTIAL EXEMPTION. There is an exemption from communications

services taxes for residential households, but the exemption is limited regarding the taxes, services,

and residential households that are exempt.

Taxes Subject to Exemption. The residential household exemption from communications

services taxes applies only to the 6.8% state portion of the Florida communications services

tax. Residential households are subject to the 2.37% gross receipts portion and the applicable

local communications services tax rate.

Services Subject to Exemption. The residential household exemption applies to

communications services other than cable, direct-to-home satellite, and mobile

communications services. When purchased by residential customers, cable, direct-to-home

satellite, and mobile communications services are subject to communications services taxes.

Residential Households Subject to Exemption. A residential household is exempt unless it is a

public lodging establishment licensed under Chapter 509, F.S., or is part of such a licensed

public lodging establishment. A residential household in a public lodging establishment that is

exempt from sales tax on purchases of electricity and other utilities taxable under Chapter 212,

Florida Statutes, would be subject to communications services taxes on telephone and other

communications services.

DEALER DOCUMENTATION OF RESIDENTIAL HOUSEHOLD EXEMPTION.

Communications services dealers are not required to collect and remit tax on sales of

communications services when the service is sold at a rate based on a "residential schedule" under

tariffs filed with the Public Service Commission, unless the purchaser notifies the dealer that the

residential household exemption does not apply. The purchaser (the owner, operator, manager, or

agent) of communications services for use in a licensed public lodging establishment must notify the

communications services dealer that the services do not qualify for the residential household

exemption so that the dealer can collect and remit communications services tax. If the dealer is not

notified by the purchaser, the purchaser becomes liable for the tax due.

Are Governmental Entities Exempt from the Communications Services Tax?

SCOPE OF THE GOVERNMENTAL EXEMPTION.The following government entities are entirely

Exemptions Form From The Communications Services Tax