(1)
NATURAL OR MANUFACTURED GAS.
(a) A tax is
imposed at the rate of 2.5 percent on distribution companies' gross receipts
from the privilege of selling or transporting natural or manufactured gas to a
retail consumer in this state. The gross receipts tax on the sale or
transportation of natural or manufactured gas is calculated as follows: (number
of cubic feet of gas sold or transported) รท 1, 000 x (the applicable gas
index price) x (2.5 percent).
(b)
The tax imposed in paragraph (1)(a) does not apply to:
1. Subject to the documentation requirements
outlined in subsection (5), the sale or transportation of natural or
manufactured gas to a public or private utility, including a municipal
corporation or agency thereof, or rural electric cooperative association for
resale.
2. The sale or
transportation of natural or manufactured gas to a public or private utility,
including a municipal corporation, or agency thereof, or rural electric
cooperative association for use as a fuel in the generation of
electricity.Distribution companies may document this exclusion from tax by
obtaining a certification from public or private utilities that purchase
transportation of natural or manufactured gas for use as a fuel in the
generation of electricity. The following is a suggested format of a
certification to be issued by a public or private utility to a natural or
manufactured gas distribution company:
CERTIFICATION
NATURAL OR MANUFACTURED GAS PURCHASED
FOR USE AS FUEL TO GENERATE ELECTRICITY
This is to certify that I have purchased natural or
manufactured gas for use as a fuel in the generation of electricity.
I understand that if such purchases of natural or
manufactured gas do not qualify for the exclusion as indicated on this
certification, I must pay the applicable tax directly to the Department of
Revenue.
Under penalties of perjury, I declare that I have read the
foregoing certificate and the facts stated herein are true.
_________________________________
_____________________
Purchaser's Name (Print or Type) Date
_________________________________
_____________________
Signature of Authorized Person Title
________________________________________
Federal Employer Identification Number (FEI
No.)
3.
a. The sale or transportation to, or use of,
natural or manufactured gas by any person eligible for an exemption under
Section 212.08(7)(ff)2., F.S., for use as an energy source or a raw material.
Possession by a seller of natural or manufactured gas or by any person
providing transportation or delivery of natural or manufactured gas of a
written certification by the purchaser, certifying the purchaser's entitlement
to the exclusion permitted by this subparagraph, relieves the seller or person
providing transportation or delivery from the responsibility of remitting tax
on the nontaxable amounts. The Department shall look solely to the purchaser
for recovery of such tax if the Department determines that the purchaser was
not entitled to the exclusion. The certification must include an acknowledgment
by the purchaser that it will be liable for tax pursuant to Section
203.01(1)(f),
F.S., if the requirements for exclusion are not met. The following is a
suggested format of a certification to be issued by a manufacturer to a natural
or manufactured gas distribution company:
CERTIFICATION
NATURAL OR MANUFACTURED GAS PURCHASED BY A
PERSON ELIGIBLE FOR EXEMPTION UNDER INDUSTRIAL CLASSIFICATIONS IN SECTION
212.08(7)(ff)2., F.S.
This is to certify that I have purchased natural or
manufactured gas for use as an energy source or raw material that is excluded
from tax pursuant to Section
203.01(3)(d),
F.S.
I certify that the applicable purchases were made by a
company whose four-digit SIC Industry Number, as listed below, is classified
under SIC Industry Major Group Number 10, 12 through 14, 20 or 22 through 39 or
Group Number 212 in the Standard Industrial Classification (SIC) Manual, 1987,
published by the Office of Management and Budget.
I acknowledge that I will be liable for tax pursuant to
Section 203.01(1)(f),
F.S., if the requirements for exclusion pursuant to Section
203.01(3)(d),
F.S., are not satisfied.
I understand that if such purchases of natural or
manufactured gas do not qualify for the exclusion as indicated on this
certification, I must pay the applicable tax directly to the Department of
Revenue.
Under penalties of perjury, I declare that I have read the
foregoing certificate and the facts stated herein are true.
_________________________________
_____________________
Purchaser's Name (Print or Type) Date
_________________________________
_____________________
Signature of Authorized Person Title
________________________________________
Federal Employer Identification Number (FEI
No.)
b. The Standard
Industrial Classification (SIC) Manual, 1987, published by the Office of
Management and Budget, is provided by the U.S. Department of Labor at
www.osha.gov.
(2) ELECTRICITY.
(a) A tax is imposed at the rate of 2.5
percent on a distribution company's gross receipts from the privilege of
selling electricity that is delivered to a retail consumer in this state when
the charge to the consumer includes charges for both the electricity and the
transportation of the electricity. Tax imposed pursuant to this paragraph is
calculated by multiplying the distribution company's gross receipts by 2.5
percent.
1. The tax imposed in paragraph
(2)(a) does not apply to:
a. Receipts from
customers for separately itemized charges for the connection, disconnection,
suspension, or restoration of electricity;
b. Receipts from customers for separately
itemized charges for returned checks or other forms of payment, late payments,
or interest due on late payments; or
c. Receipts from customers for separately
itemized charges for the sale, lease, rental, repair, or maintenance of
customer premises equipment.
2.
a. When
charges for utility services are separately itemized as an amount for services
based on a standard rate amount with a separate rate adjustment on the same
billing, invoice, statement, or other evidence of sale for services, gross
receipts tax is due on the receipts for utility services after the application
of the rate adjustment.
b. Example:
A customer purchases electricity from an electric utility under an energy
management program. The customer is billed the standard residential rate. In
addition, the customer receives load management monthly credits for allowing
specified electrical equipment to be interrupted at the option of the electric
utility. The charge for electric service after the load management credits are
applied against the charge at the standard residential rate is the amount
subject to the gross receipts tax.
c. Example: A customer purchases electricity
from an electric utility at the standard residential service rate. The electric
utility charges each residential customer in this rate class an additional
energy cost recovery factor, called "energy charges, " on a per kilowatt hour
basis. The customer is billed for electricity at the standard residential rate,
plus the applicable energy charges. The amount charged to the customer at the
standard residential rate, plus the amount of the energy charges, is the amount
subject to the gross receipts tax.
3. Each and every fee imposed by a political
subdivision of the State of Florida on the distribution company, such as a
franchise fee, is included in the charge upon which the gross receipts tax is
computed, when the fees are passed on to the customer and separately itemized
on a customer's bill, invoice, statement, or other evidence of sale.
4. Any municipal public service tax imposed
under Section 166.231 or
166.232, F.S., or any sales tax
imposed under Chapter 212, F.S., on the sale or purchase of electric power or
energy is not included in the charge upon which the gross receipts tax is
computed when the municipal tax or sales tax is separately itemized on a
customer's bill, invoice, statement, or other evidence of
sale.
(b) Each
distribution company that receives payment for the delivery of electricity to a
retail consumer in this state is subject to tax on the exercise of this
privilege as provided by this paragraph, unless the payment is subject to tax
under paragraph (a). Under this paragraph, the gross receipts tax on the
delivery of electricity is calculated as follows: (number of kilowatt hours
delivered) x (the applicable electricity index price) x (2.5
percent).
(c) The tax imposed in
paragraphs (2)(a) and (b) does not apply to:
1. The sale or delivery of electricity to a
public or private utility, including a municipal corporation or agency thereof,
or rural electric cooperative association, for resale subject to the
documentation requirements outlined in subsection (5);
2. The sale or delivery of electricity to a
public or private utility, including a municipal corporation or agency thereof,
or rural electric cooperative association, as part of an electric interchange
agreement or contract between such utilities for the purpose of transferring
more economically generated power.
a. The
electric utility is required to maintain a copy of the agreement or contract in
its books and records and is not required to meet the provisions of this rule
regarding sales for resale.
b. The
internal use, including interdepartmental transfers, of the purchased power is
not subject to tax.
3.
Wholesale sales of electric transmission service.
4. The loss of electricity resulting from the
generation, transmission, or distribution of electricity, including line
losses, generation losses, and any other losses for which charges are not made
to the electric utility's customers.
(3) SEPARATELY ITEMIZED CHARGES.
(a) A distribution company may wholly or
partially separately itemize the gross receipts tax on the customer's bill,
invoice, statement, or other evidence of sale. However, the gross receipts tax
is imposed on the privilege of doing business, and it is an item of cost to the
distribution company. The distribution company remains fully and completely
liable for the payment of the tax, even when the tax is wholly or partially
separately itemized on the customer's bill, invoice, statement, or other
evidence of sale. When the tax is wholly or partially separately itemized,
every person, including governmental units and charitable and religious
organizations, is liable for the payment of the tax to the distribution
company.
(b) Example: A
distribution company bills its customer for both the electricity and the
transportation of the electricity. Tax is imposed at the rate of 2.5 percent of
the distribution company's gross receipts for utility services. When the
distribution company separately itemizes "Florida gross receipts tax" on a
customer's billing, the amount of gross receipts tax is calculated at the rate
of 2.5 percent of the total amount billed for the electric services, including
the amount separately itemized as "Florida gross receipts tax."
Customer Billing:
|
Electric service amount
|
$100.00
|
|
Florida gross receipts tax
|
$ 2.56*
|
|
Total amount of billing
|
$102.56
|
* Calculation of separately itemized "Florida gross receipts
tax":
|
Total amount of billing
|
$102.56
|
|
x Gross Receipts Tax Rate
|
2.5%
|
|
Total tax to be separately itemized
|
$ 2.56
|
(4) USE TAX.
(a) Gross receipts tax is levied upon a
person's cost price of electricity, or natural or manufactured gas, imported
into this state or severed within this state for the person's own use or
consumption as a substitute for purchasing utility, transportation, or delivery
services taxable under Chapter 203, F.S., and who cannot demonstrate payment of
the tax imposed by subparagraph 203.01(1)(a)1., F.S. The tax implemented
pursuant to this paragraph is calculated by multiplying the cost price of the
utility service by 2.5 percent.
(b)
The tax implemented pursuant to paragraph (4)(a) does not apply to:
1. The use of natural gas in the production
of oil or gas, or the use of natural or manufactured gas by a person
transporting natural or manufactured gas, when used and consumed in providing
such services;
2. The use of
natural gas or manufactured gas by a person eligible for an exemption under
Section 212.08(7)(ff)2., F.S., for use as an energy source or a raw
material;
3. The use of natural gas
or manufactured gas by a public or private utility as fuel in the generation of
electricity; or
4. The loss of
electricity resulting from the generation, transmission, or distribution of
electricity, including line losses, generation losses, and any other losses for
which charges are not made to the electric utility's
customers.
(5)
SALES FOR RESALE.
(a) The sale,
transportation, or delivery of utility services for resale is only exempt from
the tax imposed under subparagraph 203.01(1)(a)1., F.S., if the sale,
transportation, or delivery is documented in strict compliance with this rule.
Distribution companies must document sales for resale by obtaining resale
certificates from customers who purchase transportation, delivery, or utility
services for the purposes of resale. Resale certificates submitted during the
protest period will be accepted by the Department as valid proof and
documentation of the resale, but will not be accepted when submitted in any
proceeding under Chapter 120, F.S., or any circuit court action instituted
under Chapter 72, F.S.
(b) The
distribution company is only required to obtain one certificate for sales made
for the purposes of resale from each customer making purchases for the purposes
of resale. The certificate must contain the purchaser's name and address, the
purchaser's gross receipts tax registration number and its effective date, a
statement that the purchases are for the purpose of resale, the signature of
the purchaser or an authorized representative of the purchaser, and the date of
issuance. The following is a suggested format of a resale certificate:
RESALE CERTIFICATE FOR GROSS RECEIPTS TAX ON UTILITY
SERVICES
This is to certify that the electricity for light, heat, or
power or the natural or manufactured gas for light, heat, or power purchased
after _____ (date) from _____________________ (seller's name) is purchased for
the purpose of resale.
I understand that if I fraudulently issue this certificate to
evade the payment of gross receipts tax I will be liable for payment of the tax
directly to the Department and subject to the penalties imposed under Section
203.03(2),
F.S.
I understand that I must disclose to the seller, or remit tax
on, any purchase not for resale when tax was not paid to the seller and/or
distribution company.
Under penalties of perjury, I declare that I have read the
foregoing certificate and the facts stated herein are true.
Purchaser's Name
__________________________________________________________________________________________
Purchaser's
Address_________________________________________________________________________________________
Name and Title of Purchaser's Authorized Signature
_________________________________________________________________________________________________________
Certificate of Registration Number
____________________________________________________________________________
Effective Date of
Registration_________________________________________________________________________________
By
____________________________________________________________________________________
(authorized signature)
Date __________
(6) RECORDKEEPING REQUIREMENTS. Distribution
companies that sell, transport, or deliver utility services to retail consumers
in Florida and taxpayers that import utility services into Florida for their
own use must maintain electrical interchange agreements or contracts, resale
certificates, exemption certificates, and other documentation required under
the provisions of this rule chapter in their books and records until tax
imposed under subparagraph 203.01(1)(a)1., F.S., may no longer be determined
and assessed under Section
95.091, F.S. Electronic storage
of required documentation through the use of imaging, microfiche, or other
electric storage media will satisfy compliance with recordkeeping
requirements.
