Communications services tax applies to telecommunications, video, direct-to-home satellite, and related services. The tax is comprised of two parts: the Florida communications services tax and the local communications services tax.
Communications services include telecommunications, video, direct-to-home satellite, and related services. This definition includes voice, data, audio, video, or any other information or signals, transmitted by any medium.
See examples of services subject to tax.
The Florida portion of the tax includes both state tax and gross receipts tax. (The gross receipts tax on communications services is imposed under Chapter 203, Florida Statutes [F.S.], but administered under Chapter 202, F.S.) The total tax rate for the Florida portion is 7.44 percent. The rate for the state tax is 4.92 percent. The total rate for the gross receipts tax is 2.52 percent, which is composed of .15 percent and 2.37 percent.
Dealers may bill and collect the 4.92 percent state tax rate along with the .15 percent gross receipts tax rate (a total of 5.07 percent) provided the amounts are properly reflected on the tax return.
Each local taxing jurisdiction (municipality, charter county, or unincorporated county) has a specific local tax rate. A list of all the current and past local jurisdictional rates is on our Internet site. For a list of current local rates only, download the Jurisdiction Rate Table.
Direct-to-home satellite service is taxed at a state rate of 9.07 percent plus 2.37 percent gross receipts tax for a total of 11.44 percent. Local tax does not apply to these services.
Dealers should not collect taxes on exempt sales of communications services. Exempt transactions include:
See examples of documentation needed.
|Government||Written evidence, per Rule 12A-19.042, Florida Administrative Code|
|Religious and educational organizations, and homes for the aged with 501(c)(3), I.R.C. status||Written evidence, per Rule 12A-19.043, Florida Administrative Code|
|Resale||Copy of Annual Resale Certificate for Communications Services Tax, or telephone or online transaction or vendor authorization number. See the "Annual Resale Certificate" section for more information.|
Communications services sold to a residential household are exempt from the 4.92 percent state tax and the .15 percent gross receipts tax. Residential service is subject to the 2.37 percent gross receipts tax and local tax. This partial exemption does not apply to the sale of mobile communications service, video service, direct-to-home satellite service, or any residence that constitutes all or part of a transient public lodging establishment as defined in Chapter 509, Florida Statutes.
See examples of how tax rates apply to services.
Local, long distance, VoIP, and toll telephone service is taxed at the total Florida rate of 7.44 percent, plus applicable local tax rate. The 7.44 percent portion is composed of the state rate of 4.92 percent and total gross receipts tax rate of 2.52 percent (.15 percent plus 2.37 percent). However, some services sold to a residential household are exempt from the 4.92 percent state tax and .15 percent gross receipts tax. (See section "Partial Exemption for Some Residential Services")
Mobile communications and video services are taxed at the total Florida rate of 7.44 percent, plus applicable local tax rate. There is no residential exemption.
Telephone charges made at a hotel or motel and fax services are taxed at the total Florida rate of 7.44 percent, plus applicable local tax rate. There is no residential exemption.
Direct-to-home satellite service is taxed at a state rate of 9.07 percent plus 2.37 percent gross receipts tax for a total of 11.44 percent. There is no local tax and no residential exemption.
Dealers must itemize and separately state taxes on customer's bills. The taxes must be identified as Florida communications services tax and local communications services tax, respectively.
A business that sells communications services, such as video services, direct-to-home satellite services, or other related services, must register as a dealer for communications services tax. One registration is required for each legal entity, regardless of the number of locations. You can register using our secure Internet site.
Dealers who collect local communications services tax must notify the Florida Department of Revenue of the method they will use to assign addresses to the correct taxing jurisdiction. To notify us of a change in the method you will use to assign addresses, complete Form DR-700020, Notification of Method Employed to Determine Taxing Jurisdiction.
Direct Pay Permits — Self-accrual authority may be granted to qualifying entities for one of two purposes.
To apply for a direct pay permit, complete Form DR-700030, Application for Self-Accrual Authority/Direct Pay Permit — Communications Services Tax.
You can electronically file and pay communications services tax using Revenue's secure web application. You can access the web application using your contract object number and business partner number or a Revenue-issued user ID and password. You must enroll in our e-Services program to receive a user ID and password. Enrollment has advantages: you can save your bank account and contact information, view your filing history, and reprint returns.
Please read our detailed electronic filing and payment information. Taxpayers who report and pay tax electronically should also download a payment due date calendar. Helpful hints are available to prevent common mistakes, provide answers to common questions, and help ensure a successful filing.
Businesses whose communications services tax collections are less than $20,000 per year may pay and report tax using a paper DR-700016 return. Returns and payments are due on the 1st and late after the 20th day of the month following the collection period. However, we encourage all taxpayers to file and pay electronically.
Businesses whose communications services tax collections are more than $20,000 in the state's fiscal year (July 1 to June 30) will be required to file and pay electronically in the next calendar year.
A dealer using one or more of the qualifying methods to ensure proper address-to-jurisdiction assignment for purposes of collecting local communications services tax will be granted an allowance of .75 percent (.0075) of the total tax due.
If a qualifying method is not used to ensure proper address-to-jurisdiction assignment, a collection allowance of .25 (.0025) percent will be granted.
Direct-to-home satellite service providers receive the .75 (.0075) percent collection allowance.
The DOR Address/Jurisdiction Database identifies the local taxing jurisdiction for addresses in Florida. The database is based on information provided by local taxing jurisdictions and is updated every six months.
See examples of how the database can be accessed and used.
Dealer or vendor databases can be certified for their accuracy of assignment of street addresses to the proper jurisdiction. Dealers or database vendors can request database certification by filing an Application for Certification of Communications Services Database (Form DR-700012).
See list of certified database vendors.
Upon initial registration, dealers will be sent an Annual Resale Certificate for Communication Services Tax (Form DR-700015) along with their Certificate of Registration (Form DR-700014). This annual resale certificate is separate from the one issued for sales and use tax. The resale certificate may be used only to make tax-exempt purchases of communications services that will be resold. Certificates expire on December 31st of each year. Registered, active dealers are issued a new resale certificate annually.
Registered, active dealers who electronically file their tax returns are required to print their own certificate. Dealers who file paper returns will be mailed a new certificate each year in mid-November. All registered active, dealers, regardless of how they file returns, may access their certificate through our file and pay webpage (log in is required). The annual resale certificate may be downloaded and printed or saved. Click on the Print Annual Resale Certificate link, to access the file and pay webpage where you can log in and print your annual resale certificate.
Here are some points for selling dealers to remember about accepting an Annual Resale Certificate for Communications Services Tax.
For more information, see TIP 07A19-05.
Consumers who purchase taxable communications services from a seller that does not collect tax must report and pay use tax. Complete Form DR-700019, Communications Services Use Tax Return.
Download a communications services tax brochure.