Did Florida's residential communications-services exemption apply when elder-care and housing facilities bought telephone service for residents?

Plain-English summary

Florida concluded that communications services used exclusively by residents qualified for the residential-household exemption whether the facility or the individual resident made the purchase. The ruling covered represented nursing homes, assisted-living facilities, continuing-care retirement communities, and government-funded housing for older or disabled residents.

The exemption applied to resident telephone service in private or shared rooms, apartments, homes, and resident-only common areas. It could apply when the facility included local service in a basic monthly package without separately stating the charge.

The exemption was partial under the 2003 law

For the ruling period, the residential exemption removed the 6.8% state communications-services-tax component. The 2.37% gross-receipts component and applicable local communications-services tax still applied.

The ruling said the exemption did not cover cable service, direct-to-home satellite service, or mobile communications service. Those rates and rules are historical and should not be assumed current.

Resident use and facility use were treated differently

• Resident buys directly: the provider applied the residential exemption to the resident's account.
• Facility buys for residents without a separate charge: the facility's purchase qualified to the extent the service was exclusively for residents, including resident rooms and resident-only common areas.
• Facility separately charges residents: the facility purchased for resale, registered as a communications-services seller, and collected and remitted state and local tax from residents while applying the residential exemption.
• Facility business or administrative use: fully taxable and not eligible for the resident exemption.

The provider could document residential use through a residential tariff schedule or a good-faith customer application or other written or oral account record representing that the service was for residential household use.

Mixed-use service required allocation or direct pay

The ruling said no statutory or regulatory formula then existed for mixed resident and business purchases. It described three compliance approaches: separately identified resale lines supported by an annual resale certificate, a direct-pay permit for taxability determined by use, or payment to the provider followed by a supported credit for tax paid on service resold to residents.

For shared line charges, the Department considered an allocation based on resident-room or resident-use lines compared with total lines reasonable. A charge tied to a specific phone number had to use that phone number's actual residential or nonresidential classification rather than a general allocation.

The ruling recommended a direct-pay permit when the facility could not distinguish purchases for resale from purchases it consumed. The facility then collected tax on resident sales, accrued tax on its own use, and remitted both.

Historical refund process began with the provider

Only tax on communications services exclusively used by residents could qualify for refund; facility administrative or retail use did not. Under the 2003 procedure, the purchaser first submitted a written request to the dealer identifying the account, tax amount, months, and reason, within the statutory period described in the ruling.

The Department encouraged each association member to seek an individual opinion on its allocation method and submit invoices and resident-charge documentation.

What this means for you

Elder-care and housing facilities

Map telephone lines, handsets, and charges to resident-only, administrative, retail, and mixed uses. Determine whether resident service is included in a general fee or separately resold.

Communications providers

Maintain customer-application or tariff documentation supporting residential treatment and distinguish services the ruling excluded from the exemption.

Accountants and tax professionals

Treat the rates, forms, refund period, and permit mechanics as historical. Verify current Chapter 202 law before applying the transaction framework today.

Common questions

Q: Did the facility have to be nonprofit?
A: No for this residential-use analysis. The association specifically asked about its for-profit members as well as nonprofit homes.

Q: Did service in resident-only common areas qualify?
A: Yes, when the facility made no separate charge and the service was exclusively for residents.

Q: What if the facility charged residents separately?
A: It purchased for resale, registered, and collected the remaining communications taxes while applying the residential exemption.

Q: Did office and administrative lines qualify?
A: No. Facility business use remained fully taxable.

Q: Was cable or satellite service included?
A: No. The ruling expressly excluded cable, direct-to-home satellite, and mobile communications services from this residential exemption.

Citations and references

• Fla. Stat. §§ 202.12, 202.125(1), and 202.19(10) — historical residential exemption and remaining taxes
• Fla. Stat. § 202.23 — historical refund procedure
• Fla. Stat. § 202.27(8) — direct-pay authority
• Fla. Admin. Code r. 12A-19.030 — direct-pay permits
• Fla. Admin. Code r. 12A-19.041 — residential-use documentation
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 03A19-002

Original ruling text

SUMMARY

QUESTION: Association has asked on behalf of its members,
whether the residential exemption applies to purchases or
sales by nursing homes, assisted living facilities,
continuing care retirement communities, and government
funded housing for the elderly.

ANSWER - Based on Facts Below: Purchases of communications
services that are for the exclusive use of the residents
qualify for the residential household exemption, regardless
of whether the purchase is made by the facility or by the
individual resident.

Nov 26, 2003

Re: Technical Assistance Advisement 03A19-002
XXX (hereafter "Association")
Communications Services Tax
Application of Residential Exemption to Homes for the Aged
Sections 202.11, 202.125, 202.12, and 202.19, Florida
Statutes (F.S.)
Rules 12A-19.030, 12A-19.041, Florida Administrative Code
(F.A.C.)

Dear :

This is a response to your letter of July 2, 2003, requesting a
Technical Assistance Advisement (TAA) for your association,
regarding the above-referenced matter. This response to your
request constitutes a TAA under Chapter 12-11, Florida
Administrative Code (F.A.C.), and is issued to you under the
authority of Section 213.22, Florida Statutes (F.S.). This TAA
only applies to sales of communications services on or after
October 1, 2001.

Facts

The following facts are based on the information contained in
your correspondence.

Association requests this advisement on behalf of its members.
Association's members consist of not-for-profit members that
come within the definition of a "not-for-profit home for the
aged" and of for-profit members. Association is aware that
purchases by not-for-profit homes for the aged are exempt as of
July 1, 2003. However, Association asks whether the residents of
these entities were eligible for the residential exemption from
the communications services tax that was effective October 1,
2001.

Association's understanding is that the telephone bills for
facilities identified in this letter do not distinguish charges
for residential lines from business lines.

Association is primarily concerned with the application of the
residential exemption to its for-profit members. The for-profit
members include: nursing homes, assisted living facilities,
continuing care retirement communities, and government funded
housing for the elderly.

A nursing home, as defined in Chapter 400, Part II, F.S.,
typically consists of private or semi-private rooms. A nursing
home may be used for a few days or weeks while a resident is
recuperating from an illness or receiving rehabilitative
services. However, the majority of the residents are long-term
admissions with an average stay of over one year. For all
practical purposes, the nursing home is their home.

An assisted living facility, as defined by Chapter 400, Part
III, F.S., typically consists of private rooms or apartments. A
few of the smaller ones have semi-private accommodations. When
people are moving to an assisted living facility, it is usually
a permanent move. The facility becomes their homes.

Continuing care retirement communities, as defined in Chapter
651, F.S., provide residents with a continuum of housing and
support services. Most residents reside independently in an
apartment, townhouse, or small home. Others reside in the

nursing home or assisted living facility on campus. Residents
pay entrance fees plus a monthly maintenance fee for their care
and housing. The community is their home.

Government financed, insured, or subsidized housing for the
elderly and disabled consists of apartments. This type of
housing is for low to moderate income persons. Funding comes
through the U.S. Department of Housing and Urban Development or
through the Florida Housing Finance Agency. A few have a
switchboard that receives and transfers calls to residents. The
residents are charged for their share of the costs.

Association has a ruling from the Public Service Commission that
allows all of the facilities identified in this letter to use
telephone systems with a switching mechanism (shared tenant
services) for the benefit of the residents.

Types of Transactions

By law, nursing homes and assisted living facilities must
provide residents with access to a telephone. This can be done
in a number of ways. Some providers have a few telephones in
common areas or meeting rooms that are available for the
exclusive use of the residents at no charge. Others install a
telephone in each room and provide local telephone services as
part of their basic service package. The charge is included in
the monthly fee and not itemized on the billing statement.
Association is aware of one nursing home that bills residents
separately for their share of local telephone charges.

For continuing care retirement communities that purchase
telephone services on behalf of residents, the method of payment
would be similar to what is described for nursing homes and
assisted living facilities. Most residents who live
independently purchase their own telephone services, but there
may be a few exceptions. Most continuing care retirement
communities also pay for satellite and cable hookups for
residents. Association is aware that these services are not
classified as residential services for the purpose of an
exemption from the communications services tax.

Requested Advisement

You have asked for guidance regarding the application of the
residential exemption from the communications services tax to
nursing homes, assisted living facilities, continuing care
retirement communities, and government funded housing for the
elderly.

Applicable Law and Discussion

Unless otherwise noted, all statutory references are to statutes
effective with respect to bills issued by communications
services providers after October 1, 2001.

Effective October 1, 2001, the taxation of communications
services in the State of Florida was restructured to a state and
local communications services tax under Chapter 202, F.S. In
general, the new tax structure includes a state rate of taxation
that is 6.8 percent, plus a gross receipts tax rate that is 2.37
percent, for a combined state communications services tax rate
of 9.17 percent. Each local taxing jurisdiction may levy its own
tax rate on communications services. A listing of all the local
jurisdictional rates can be found on our web site at:
www.myflorida.com/dor/. Both the state communications services
tax and the applicable local communications services tax must be
separately stated on each customer's bill. See, s. 202.35, F.S.
The tax is imposed on the sale of communications services that
either originate and terminate in Florida or that originate or
terminate in Florida and are charged to a service address in
Florida. The tax is also imposed on the actual cost of
operating a substitute communications system in the State of
Florida. The definition of "communications services" is
contained in s. 202.11(3), F.S. Further, the definition of
"sales price" is contained in s. 202.11(14), F.S.

Section 202.125(1), F.S., provides:

(1) The separately stated sales price of communications
services sold to residential households is exempt from the
tax imposed by s. 202.12. This exemption shall not apply to
any residence that constitutes all or part of a public

lodging establishment as defined in chapter 509, any mobile
communications service, any cable service, or any directto-home satellite service.

Section 202.27(8), F.S., provides:

(8) The department may provide by rule for self-accrual of
the communications services tax when:

(a) Authorized by law for holders of direct-pay permits; or

(b) The taxable status of sales of communications services
will be known only upon use.

Section 202.23, F.S. provides, in part:

(1) Notwithstanding any other law, a purchaser seeking a
refund of or credit for a tax collected by a dealer under
this chapter must, within 3 years following collection of
the tax from the purchaser, submit a written request for
the refund or credit to the dealer in accordance with this
section. A request shall not be granted unless the amount
claimed was collected from the purchaser and was not due to
the state or to any local taxing jurisdiction.

(a) A request for a refund or credit may be submitted under
this section if:

1. The dealer charged and collected the tax with respect to
   a transaction or charge that was not subject to the
   communications services taxes imposed by this chapter or
   chapter 203, or applied a tax rate in excess of the lawful
   rate.

2. The purchaser or the transaction was exempt or immune
   from such taxes.

3. The purchaser was assigned to the incorrect local taxing
   jurisdiction for purposes of the taxes authorized in s.
   202.19.

4. The purchaser paid the tax in error.

(b) A purchaser's request for a refund or credit must be
signed by the purchaser and is complete for purposes of
this section and the limitation period if it states the
purchaser's name, mailing address, account number, the tax
amounts claimed, the specific months during which those
amounts were collected, and the reason for the purchaser's
claim that such amounts were not due to the state or to any
local taxing jurisdiction. If the reason for the request is
an exemption or immunity or a claim that the purchaser was
assigned to the incorrect local taxing jurisdiction for
purposes of a tax imposed under s. 202.19, a completed
request must also include any additional information the
department prescribes by rule to facilitate verification of
the purchaser's eligibility for exemption or immunity or to
facilitate verification of the purchaser's service address.
Upon receipt of a completed request, the dealer shall
ascertain whether it collected the tax claimed from the
purchaser and whether the request is timely.

(c) Within 30 days following receipt of a completed
request, the dealer shall determine whether any portion of
the tax was collected solely as the result of an error of
the dealer or the purchaser or solely as the result of a
combination of errors of the dealer and the purchaser. The
dealer shall refund any such amount or credit the
purchaser's account for such amount within 45 days
following such determination.

(d) With respect to all amounts timely claimed which the
dealer collected from the purchaser and which the dealer
has not determined to be subject to refund or credit
pursuant to paragraph (c), the dealer shall, within 30 days
following receipt of the purchaser's completed request for
refund or credit, provide a copy of the request to the
department. If the reason for the purchaser's request is
described in subparagraph (a)1. or subparagraph (a)3., the
dealer shall contemporaneously furnish to the department an
identification of the charges included in the taxable
measure and the tax rates applied to the charges, or a

written identification of each local jurisdiction to which
the purchaser was assigned and the amounts collected from
the purchaser and reported for each such jurisdiction, as
the case may be. If a purchaser's request submitted to the
department under this section sets forth another reason for
claiming a refund or credit, the dealer shall furnish to
the department information to facilitate the department's
evaluation of the request.

(e) Within 90 days following receipt of the purchaser's
request from the dealer, the department shall determine
whether the tax was correctly applied and notify the dealer
in writing of its determination. If the department
determines that the tax was incorrectly applied, its
notification to the dealer must inform the dealer how the
tax should have been applied, including, in the case of an
incorrect assignment of the purchaser to a local taxing
jurisdiction, an identification of the correct local taxing
jurisdiction and the applicable rates of tax levied by the
local jurisdiction. The department's notification must also
inform the dealer of any portion of the amount claimed
which was not due to the state or to any local taxing
jurisdiction and approve the refund or credit of such
amount to the purchaser. Within 45 days following receipt
of notification from the department, the dealer shall issue
a refund or credit the purchaser's account for any such
amount. The dealer's obligation to issue a refund or credit
the purchaser's account is limited to amounts approved in
accordance with this section.

(2) This section provides the sole and exclusive procedure
and remedy for a purchaser who claims that a dealer has
collected communications services taxes imposed or
administered under this chapter which were not due....
(Emphasis Supplied.)

Sales of communications services to a residential household are
partially exempt from the state communications services tax.
The partial exemption excludes the state rate of 6.8 percent,
while continuing the imposition of the gross receipts tax
portion (2.37 percent) and the applicable local communications

services tax rate. See, ss. 202.12(1)(a), 202.125(1), and
202.19(10), F.S. As we previously discussed, this is true of
any sale of communications services to a residential household,
except for sales of cable service, direct-to-home satellite
service, and mobile communications services.

You have specifically asked the following:

Question: Whether nursing homes, assisted living facilities,
continuing care retirement communities, and government funded
housing for the elderly would be considered residential settings
for the purpose of qualifying for an exemption to the
communications services tax when such services are purchased by
the facility rather than the residents?

Answer: Yes. A residential facility may purchase communications
services for its residents and be entitled to the residential
household exemption. Sales by the facility to its residents
would be considered sales of communications services subject to
both the state and local communications services tax and would
qualify for the residential household exemption. Purchases of
communications services by residents of these facilities qualify
as sales to residential households. Any facility that charges
its residents for communications services should purchase those
services for resale and collect and remit the communications
services tax in accordance with the residential household
exemption, as described above. Communications services used in
the business and administrative processes would remain fully
taxable; however, the use of a direct pay permit allows the
facility to buy all of its communications services without the
payment of tax and allows the facility to self-accrue tax when
an unknown portion of the purchases is for communications
services used by the facility and an unknown portion is for
communications services resold to residents.

Guidance regarding the use of communications services tax direct
pay permits is found in Rule 12A-19.030, F.A.C. In order to
request a Communications Services Tax Direct Pay Permit, a
person must file form DR-700030, Application for Self-Accrual
Authority/Direct Pay Permit Communications Services Tax, with
the Department, in the manner provided on the form, which is

available on the Department's website at
www.myflorida.com/dor/forms/.

Question: Whether these facilities are entitled to a refund of
the taxes that have been paid to date? If so, when did the
communications services tax take effect and how would one apply
for a refund?

Answer: Any refund due would only apply to the purchases of
communications services that are exclusively for residential
use. No refund would be due on any communications services used
by the facility in its business, such as administrative or
retail operations. The residential household exemption has been
in place since the enactment of Chapter 202, F.S., which became
effective on bills issued on or after October 1, 2001. The
procedure for a purchaser to request a refund of tax collected
by a dealer and imposed or administered pursuant to Chapter 202,
F.S., is set forth in s. 202.23, F.S., provided above. That
section specifies that a purchaser seeking a refund must first
make a written request to their dealer. The request must state
the purchaser's name, mailing address, account number, the
amount of refund being claimed, the months during which those
amounts were collected, and the reason the purchaser believes
the tax was not due. The full text of s. 202.23, F.S. is
available on the Department's Tax Law Library at
www.myflorida.com/dor.

Question: Whether there is a formula for a facility to use to
separate charges and taxes for residential services from charges
and taxes for telecommunications services used for business
purposes?

Answer: Currently, there is no formula provided by statute or
adopted by rule to separate mixed-use purchases. Section
202.27(8)(b), F.S., does provide authority for the Department to
issue a direct pay permit to persons for purchases of
communications services where the taxable status will be known
only upon use. When a facility purchases communication services
and receives a bill that contains charges for both
communications services that are to be resold and communications
services that will be consumed by the facility or contains

charges for both communications services that are exclusively
for the residents' use without charge and for use by the
facility, it would be appropriate for the facility to issue a
Communications Services Tax Direct Pay Permit For Tax Due Upon
Determination Of Use. Then, the provider will not charge the
facility communications services tax on any of the purchases.
Rather, the facility would collect state and local
communications services tax on the sales price of each sale of
communications services to residents, in accordance with the
residential exemption. The facility would also accrue state and
local communications services tax on communications services it
purchased and did not resell. Collected and accrued taxes
should be remitted on form DR-700016, Communications Services
Tax Return. A collection allowance should be taken only for the
taxes collected from residents.

A facility, whose provider separates the services that are for
resale to the residents from the services that are used by the
facility, may issue its Annual Resale Certificate to provider(s)
for only the separately identified services that the facility
will resell to residents. The facility would pay to its
provider(s) all communications services taxes due on the
communications services that the facility uses rather than
resells. The facility should collect and remit the state and
local communications services taxes on the sales price of each
sale of communication services to a resident, in accordance with
the residential household exemption. The collection allowance
would apply to the tax collected from residents.

However, a facility may elect to pay state and local
communications services tax to its providers rather than issuing
its Annual Communications Services Tax Resale Certificate or
obtaining and issuing a direct pay permit. The facility would
be required to collect and remit the state and local
communications services taxes on the sales price of each sale of
communications services to residents, in accordance with the
residential household exemption. If the facility can identify
the portion of the communications services that are resold and
the portion of the communications services that are not resold,
based upon its books and records, then the facility may deduct
the amount of taxes paid to the provider for the services that

were resold from the taxes collected from its residents for
those services. The facility should apply the collection
allowance to only the amount of taxes collected from its
residents.

It appears to be reasonable for the facility to allocate charges
for multi-purpose lines or other single charges for
communications services provided for both the facility's use and
the residents' use. Once the charges have been allocated, a
refund request for the amount of taxes previously paid to its
provider can be made. One allocation method would be to use the
percentage of the residential room lines as compared to the
total lines purchased by the facility. This does not apply to
charges for long distance services that are charged to a
specific line or phone number. When a charge is identified to a
specific phone number, all charges for that phone number should
be taxed at the same rate, either with no exemption due to the
nonresidential use of the phone number or with the application
of the residential household exemption. This method only
applies to charges for lines that are used both for
administrative or business purposes and for residential
household purposes of the residents. For example, if the
facility purchases 100 lines and 50 lines are located in common
areas exclusively for the residents' use at no charge, then 50%
of the charges to the facility for the lines would be subject to
the residential household exemption. Another example would be
when the facility purchases 100 lines that are shared between
the administrative offices and the residents, who are not
charged for the use, with 60 handsets available for exclusive
use by the residents and 40 handsets located in the
administrative offices. In that case, 60% of the charges to the
facility for the lines would be subject to the residential
household exemption. This credit would be taken against the
communications services tax collected by the facility from its
residents and in no event may exceed the amount of tax collected
from the residents.

When members apply to their providers for refunds, it is likely
that the providers will initially deny the refund and forward
the refund request to the Department for review, as provided in
s. 202.23(1)(d), F.S., provided above. Further, the method

described herein is not the only method that may be reasonable.
Therefore, members of the Association are strongly encouraged to
individually write to the Department for its opinion on the
reasonableness of the method used by the individual member. The
request should include an explanation of the method used, copies
of its invoices for purchases, and documentation of any charges
made to the individual residents.

The best method for members of your Association to utilize in
complying with the Communications Services Tax is for your
members to use a Direct Pay Permit, which allows the provider to
not collect the tax. The member would be required to collect
and/or accrue tax as applicable on its purchases. This method
would relieve the members of the necessity of working issues out
with the provider. Of course, direct pay permit holders are
subject to audit by the Department.

Question: If the telephone services are exempt from the
communications services tax, how would a facility notify its
telephone provider that this is the case?

Answer: A facility would need to contact its provider and update
its "customer application," unless the facility's purchases were
based on a "residential schedule" under tariffs filed by the
service provider with the Public Service Commission. This
information is contained in Rule 12A-19.041, F.A.C., which
provides guidance regarding the partial exemption for
residential households. Rule 12A-19.041(6), F.A.C.,
specifically states that a provider may document that the
residential exemption applies to a purchaser's account, unless
notified by the purchaser that the residential exemption does
not apply, and is 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 the tariffs filed by a
service provider with the Public Service Commission, or the
service provider has on file a writing or document evidencing a
representation of a customer that the communications services
are being purchased for residential household use. The writing
or document may be a customer application or a certificate that
identifies the customer as purchasing the communications
services for residential purposes. A "customer application"

includes a record of information obtained electronically or
orally from the customer in the ordinary course of business. A
provider must have acted in good faith in accepting the
representation of a customer. The issuance of a direct pay
permit by a facility would resolve this issue by permitting the
provider to not collect tax and authorizing the facility to
determine its own tax liability.

Question: If continuing care retirement communities purchased
basic telephone services for independent residents and include
the cost in the monthly maintenance fee, would the charges to
the facility for those services be exempt from tax? What if the
services were purchased by the continuing care retirement
communities and billed to residents as a separate charge for
telephone services?

Answer: There are four basic transactions at issue: the purchase
of communications services by the resident from a provider
(charge from provider to resident, no facility involvement), the
purchase of communications services by the facility for the
exclusive use of the residents in common areas (no separate
charge to residents), the purchase of communications services by
the facility for use in individual rooms (charge not separately
stated to resident), and the purchase of communications services
by the facility for use in individual rooms (charge separately
stated to resident).

When a communications services provider sells communications
services to a resident of a facility, the residential household
exemption should apply and would be documented by the provider
in its "customer application." When no charge is made to the
resident and either the facility purchases the communications
services for the exclusive use of its residents in common areas
or purchases the communications services for the residents' use
in their individual rooms, the residential household exemption
should apply to these purchases by the facility and would be
documented by the provider in its "customer application" for the
facility. When communications services are purchased by the
facility for the residents' rooms and the facility bills the
residents for the communications services, the facility should
purchase the communications services for resale by issuing its

Communications Services Tax Annual Resale Certificate to its
provider in lieu of payment of the tax and would collect and
remit communications services tax from its residents in
accordance with the residential household exemption, as
described above. As previously discussed, a direct pay permit
may be issued instead when services for resale and services for
business purposes are purchased from a single provider.

Facilities that charge residents for communications services
must register with the Department by completing an Application
to Collect and/or Report Tax in Florida, form DR-1. Further,
the facility will need to indicate on form DR-700020,
Notification of Method Employed to Determine Taxing Jurisdiction
(Communications Services Tax), the method that the facility
intends to use to determine the local taxing jurisdiction
applicable to the residents of the facility. This form is
currently contained within form DR-1, so the facility should
only need to complete form DR-1 to provide the Department with
the information. Once registered for communications services
tax, the facility will receive a Communications Services Tax
Annual Resale Certificate that can be issued to its providers
for these purchases. The facility should collect and remit both
state and local communications services on the charges to the
residents and apply the residential exemption to such sales. A
facility that charges residents for communications services, and
that can not distinguish its purchases that are for resale from
its purchases that are for its own use, should apply for a
Communications Services Tax Direct Pay Permit For Tax Due Upon
Determination Of Use for these purchases.

If a facility needs any assistance with the registration
process, please contact our registration office at (850) 4889750 for assistance. Please feel free to contact the
Department's Tax Information Services office for assistance
regarding the completion of the returns at 1-800-352-3671
(Florida only).

Summary

In summary, purchases of communications services that are for
the exclusive use of the residents qualify for the residential

household exemption, regardless of whether the purchase is made
by the facility or by the individual resident. When a facility
purchases communications services and sells the communications
services to the residents, the facility should purchase the
communications services for resale and collect and remit the
communications services tax on the sales price of the
communications services to the residents, and the residential
household exemption would apply. In the event that the facility
can not distinguish between its purchases of communications
services that will be resold from its purchases that it will
consume, then the facility should issue a direct pay permit to
its provider, collect and remit communications services tax on
its sales to its residents, applying the residential exemption,
and should remit communications services tax on the
communications services consumed by the facility. A facility
that makes charges for communications services to its residents
should register with the Department as a seller of
communications services.

More information on the communications services tax, including
Chapter 202, F.S., forms, and administrative rules regarding
registration, tax returns, exemptions, and collection
allowances, is available from the Department of Revenue's Tax
Law Library, available on the Department's website at
www.myflorida.com/dor.

This response constitutes a Technical Assistant Advisement under
Section 213.22, F.S., which is binding on the Department only
under the facts and circumstances described in the requests for
this advice, as specified in Section 213.22, F.S. Our response
is predicated on those facts and the specific situation
summarized above. You are advised that subsequent statutory or
administrative rule changes or judicial interpretations of the
statutes or rules, upon which this advice is based, may subject
similar future transactions to a different treatment than
expressed in this response.

You are further advised that this response, your request and
related backup documents are public records under Chapter 119,
F.S., and are subject to disclosure to the public under the
conditions of s. 213.22, F.S. Ordinarily, confidential

information, such as the identity of the person to whom an
advisement is issued, must be deleted before public disclosure.
In the situation in which a taxpayer association is seeking an
advisement on behalf of its members, having the identity of the
requesting association remain in the published advisement is
useful to those using the advisement for guidance. No specific
taxpayer information is included in an advisement issued to a
taxpayer association, and concerns about protecting proprietary
information are not present under such circumstances. However,
in light of the statutory requirements as to confidentiality, a
taxpayer association must give its consent to the Department to
allow its name to be included in the published advisement. The
taxpayer to whom this advisement is issued has given written
consent to allow the disclosure of its identity.

Sincerely,

Jennifer J. Silvey
Senior Attorney
Technical Assistance & Dispute Resolution

Control No: 55938