Instructions For Completing The Florida Communications Services Tax Return (Form Dr-700016)

DR-700016N

R. 06/07

Page 23

When changes in taxable sales are due to situsing or

If the rate of the correct jurisdiction is the same as or lower

reporting errors and tax has not been refunded to the

than the original (incorrect) jurisdiction, the tax due amount

customer, use the following calculations to determine the

reported should be used to claim a credit in the original

change in taxable sales.

(incorrect) jurisdiction and this same tax due amount reported

in the correct jurisdiction. Taxable sales amounts should be

If you are using the DOR database, a database certified

calculated by dividing the tax amount by the tax rate for each

by DOR, or a ZIP+4 database in compliance with s.

affected jurisdiction. When tax is transferred to a jurisdiction

202.22, F.S., adjustments to taxable sales should be made by

with a lower rate, calculated taxable sales will not match

reallocating the original local tax due amount reported in the

actual sales to customers but will provide the information

wrong jurisdiction to the correct jurisdiction. The tax should

needed to correct the allocation of tax reported.

be reallocated regardless of the tax rate originally used or the

tax rate of the correct jurisdiction. Taxable sales amounts

Example 4: $1,113.09 in local tax due was originally reported

should be calculated by dividing the tax amount by the tax

in Jurisdiction B (tax rate 2.10%), but should have been

rate for each affected jurisdiction.

reported in Jurisdiction A (tax rate 1.10%). Calculate the

change (decrease) in taxable sales for Jurisdiction B by

Example 1: $1,113.09 in local tax due was originally reported in

dividing the tax due originally reported in Jurisdiction B

Jurisdiction A (tax rate 1.10%), but should have been reported

by its current tax rate. (EX: $1,113.09 divided by .0210 =

in Jurisdiction B (tax rate 2.10%). Calculate the change

$53,004.29). Report the decrease in parentheses. Calculate

(decrease) in taxable sales for Jurisdiction A by dividing the

the change (increase) in taxable sales to Jurisdiction A by

tax due originally reported in Jurisdiction A by its current tax

dividing the tax due originally reported in Jurisdiction B by the

rate. (EX: $1,113.09 divided by .0110 = $101,190.00). Report

current tax rate for Jurisdiction A. (EX: $1,113.09 divided by

the decrease in parentheses. Calculate the change (increase)

.0110 = $101,190.00).

in taxable sales to Jurisdiction B by dividing the tax due

Column G - Rate. Enter the appropriate local rate for the

originally reported in Jurisdiction A by the current tax rate for

Jurisdiction B. (EX: $1,113.09 divided by .0210 = $53,004.29).

applied period that you are adjusting.

Example 2: $1,113.09 in local tax due was originally reported

Column H - Collection allowance adjustment. Collection

in Jurisdiction B (tax rate 2.10%), but should have been

allowance adjustments are required for all transfers of tax

reported in Jurisdiction A (tax rate 1.10%). Calculate the

between jurisdictions and any transactions that result in a

change (decrease) in taxable sales for Jurisdiction B by

decrease in taxable sales for a prior applied period. If the

dividing the tax due originally reported in Jurisdiction B

original filing was not eligible for a collection allowance or

by its current tax rate. (EX: $1,113.09 divided by .0210 =

if this schedule is being used to report only an increase in

$53,004.29). Report the decrease in parentheses. Calculate

taxable sales for a prior applied period, this section does not

the change (increase) in taxable sales to Jurisdiction A by

apply. Enter 0 (zero) in Column H.

dividing the tax due originally reported in Jurisdiction B by the

When a jurisdictional transfer results in a transfer to a

current tax rate for Jurisdiction A. (EX: $1,113.09 divided by

jurisdiction with the same or higher tax rate, the collection

.0110 = $101,190.00).

allowance adjustment must be capped at the amount claimed

If you are using a database that does not meet the

on the original return (i.e., no additional collection allowance

requirements of section 202.22, F.S., you should identify the

will be granted on additional tax due as a result of the

taxable sales and local tax due amounts to be reallocated,

transfer).

the tax rates for the jurisdictions where the tax was originally

If Column F (Change in reported taxable sales) is a decrease

reported (incorrect jurisdiction), and where the tax should be

(negative number), the collection allowance must be

reported (correct jurisdiction).

recouped by one of the following methods. The result should

If the correct jurisdiction has a higher tax rate, the original

be entered as a positive number in Column H.

taxable sales amount will be used to claim a credit in the

• If you are using the DOR database, a database certified

incorrect jurisdiction. This same taxable sales amount will be

by DOR, or a ZIP+4 database in compliance with

used in the correct jurisdiction to calculate tax due. When

s. 202.22, F.S., multiply .0075 by the tax collected and/or

multiplied by the tax rates, a higher local tax due amount in

accrued for sales being decreased in Column F.

the correct jurisdiction will result. Note that additional local

tax resulting from the transfer to a jurisdiction with a higher

• If you are not using the DOR database, a database

tax rate will be due, along with penalty and interest. See

certified by DOR, or a ZIP+4 database in compliance with

“Penalty and Interest Calculation.”

s. 202.22, F.S., multiply .0025 by the tax collected and/or

accrued for sales being decreased in Column F.

Example 3: $101,190.00 in taxable sales was originally reported

in Jurisdiction A (tax rate 1.10%) but should have been

Column I - Adjustment amount. Subtract Column H from

reported in Jurisdiction B (tax rate 2.10%). Report the change

the tax collected and/or accrued for the sales reported in

(decrease) in taxable sales ($101,190.00) in Jurisdiction A and

Column F, and enter the result here. Report negative amounts

the tax rate (1.10%) in the appropriate columns. Report the

in parentheses (amount).

decrease in parentheses. Report the change (increase) in

taxable sales ($101,190.00) in Jurisdiction B and the tax rate

(2.10%) in the appropriate columns. The additional tax will be

due, along with penalty and interest.

Instructions For Completing The Florida Communications Services Tax Return (Form Dr-700016) - 2007 Page 6

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