Were charges for a digital platform's redacted suite of personalized video, audio, live-interaction, and content offerings subject to Florida communications services tax?

Plain-English summary

The digital platform's described offerings were subject to Florida communications services tax. The Department concluded that the services involved transmitting video, audio, or other programming to purchasers and therefore fit the statutory definition of video services.

The platform sold personalized prerecorded messages, live video interactions, paid content features, and other offerings whose names and some details were redacted. Customers used their own internet or mobile-data plans to reach the platform. Talent generally set prices, the platform collected the customer payment, passed most of it to the talent, and retained a fixed percentage.

The Department rejected the argument that personalization made the transactions nontaxable personal or information services. Florida's information-service definition expressly excludes video service, and the video-service definition does not use a “primary purpose” test.

The taxable sales price was the total amount charged to the customer. It was not reduced to the platform's retained percentage merely because part of the payment was passed to talent. The ruling also stated that the platform was providing communications services and had to register as a dealer.

Common questions

Did it matter that customers supplied their own internet or mobile-data service? No. The Department still treated the platform's offerings as taxable video services.

Did a personalized message become a nontaxable personal service? No. The underlying personal or entertainment purpose did not remove an audio or video offering from the video-service definition.

Was only the platform's commission taxable? No. The total customer charge was the taxable sales price under the ruling.

Could the platform rely on TAAs issued to other businesses? No. The ruling stated that another taxpayer's TAA has no precedential value outside that taxpayer's specific transaction.

Citations and references

• Fla. Stat. § 202.11(1), (5), (13), (14), and (24)
• Fla. Stat. § 202.12(1)
• Fla. Stat. § 213.22(1)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 23A19-001

Original ruling text

QUESTION:
Whether Taxpayer’s charges for its
,
offerings are subject to Florida’s Communications Services Tax.
ANSWER:
Taxpayer’s charges for its
,
offerings are subject to Florida’s Communications Services Tax.

, and

, and

March 7, 2023

Via Email:
Re:

Dear

Technical Assistance Advisement – TAA #: 23A19-001
Communications Services Tax - Video Services
.1 (“Taxpayer”)
Section 202.11, Florida Statutes (“F.S.”)
BP #:
FEI#:
:

This is in response to your letter dated September 21, 2021, requesting this Department’s issuance of a
TAA pursuant to Section (s.) 213.22, F.S., and Chapter 12-11, Florida Administrative Code, regarding
whether Taxpayer’s service offerings, as referenced herein, are subject to Florida’s Communications
Services Tax. Your request has been carefully examined, and the Department finds it to be in compliance
with the requisite criteria set forth in Chapter 12-11, F.A.C. This response to your request constitutes a
TAA and is issued to you under the authority of s. 213.22, F.S.
REQUESTED ADVISMENT
Whether Taxpayer’s charges for
,
offerings are subject to Communications Services Tax.

,

, and

FACTS
1

Taxpayer’s current legal name is
. during the fourth quarter of

., doing business as
.

o, but will be changed to

Technical Assistance Advisement
March 7, 2023
Page 2

Your petition provides that Taxpayer, headquartered in
services, including
,
,

, is a provider of digital goods and
, and
.

A
is a customized and personalized message that is pre-recorded by Talent2 such as entertainers,
musicians, athletes or other social media personalities. Customers explore Taxpayer’s website or mobile
application to browse available Talent and their service offerings. Talent controls services available to
customers at any particular time - including setting the prices of their offerings.
Upon requesting a
, customers must complete a questionnaire regarding the recipient, the
occasion, and other instructions to be used by Talent to cater the message for the customer. Once the
request is fulfilled, Taxpayer collects payment from the customer and passes most of the payment
on to the Talent. Taxpayer retains a fixed percentage of the fees for its services.
Using its internet or mobile data plan, a customer can access and view
as well as download or
stream video messages through Taxpayer’s website or mobile application. Taxpayer contends that since
the customer is presumably paying communications services tax on its mobile communications services,
the imposition of communications services tax on
would result in double taxation.
You assert that although
can be downloaded and viewed several times, they are not a video
transmission disseminated to the public or other customers.
differ from streaming video services
and video rentals, in that customers or members of streaming services pay for access to digital content
such as movies, television shows, and sporting or news events, whereas Taxpayer’s customers pay for
video messages created by Talent and tailored to the customer’s request.
Although a customized digital video is the result of the customer’s purchase, Taxpayer contends that
customers are essentially purchasing a personal service and not the ability to stream or download a video.
You further contend that some of Taxpayer’s services are delivered via digital or telephonic media, but
similar to other professional or personal services delivered via video, the true object of the transaction is
a personal service.
You state that the primary component of
is the creation of the customer’s video message, which
you contend is a personal service and the second component being delivery of the video message, which
Taxpayer believes to be an information service, neither of which should be subject to communications
services tax.
You state that Taxpayer does not provide the telecommunications services needed for customers to
access its website, platform, or mobile application and thus should not be subject to communications
services tax.
In the event the Department finds that
are subject to communications services tax, you assert
that the tax base is only the portion of the payment that Taxpayer retains and should not include the
portion of the payment that Taxpayer collects on behalf of Talent.

2

Technical Assistance Advisement
March 7, 2023
Page 3

Taxpayer’s
offering allows customers to schedule live video calls or attend live events which
are charged on a per-minute basis at a price set by Talent. Taxpayer asserts that Taxpayer’s
goes beyond video streaming, in that customers are paying for a real-time interaction with Talent.
Taxpayer contends that the live video calls between the customer and Talent are analogous to
entertainment services. You further contend that Taxpayer’s hosting of video calls and live events should
not be the determining factor. Channeling calls through Taxpayer’s app simply facilitates the tracking of
connections and billing customers. Taxpayer contends that
and
are
comprised of personal services and information services not subject to communications services tax.

Through Taxpayer’s Direct Messages offering, upon paying the applicable fee set by Talent, customers can
connect with and send Talent a message of up to
. Taxpayer retains a fixed percentage of
the fee charged by Talent. You state that Taxpayer’s direct messaging offering occurs within the
mobile application. This offering is comprised of proprietary software and uses support purchased from
third party software providers.
Taxpayer contends that its direct messaging offering should not be subject to communications services
tax, as it does not provide data services. You state that to access Taxpayer’s direct messaging offering,
customers are required to have their own data service plans upon which customer is presumably paying
communications services tax.

According to the Terms of Service, Taxpayer’s
is free, but customers may subscribe
to any available Paid Features. For a monthly fee, Taxpayer’s
offering grants customers access to
additional digital content or discounts offered by Talent via Taxpayer’s website and mobile application.
You state that the object of this offering is VIP or priority access to the Talent and content created by
Talent. It is Taxpayer’s position that its
offering is a personal or entertainment service, not subject
to communications services tax
Other Revenue Streams and Payment Structure
Taxpayer’s other revenue streams include “
,” which allows businesses to purchase
personalized messages recorded by Talent to endorse the business’ brand.
for Business enables
business customers to purchase credits to be redeemed by the business customer’s employees in the
future for any of Taxpayer’s products. The concierge fee offers additional customer support services such
as drafting scripts for Talent.
All such transactions occur on the
website. Taxpayer collects payment from customers and passes
most of the payment on to the Talent. The Taxpayer retains a fixed percentage of the fees for its services,
essentially serving as an intermediary between Talent and customers.
It is Taxpayer’s position that its offerings, including
,
,
,
and
are personal services and/or information services, not subject to communications

Technical Assistance Advisement
March 7, 2023
Page 4

services tax. To support its position, Taxpayer references TAA #15A-014, dated October 16, 2015. You
state that in examining online video-based offerings provided by other taxpayers, the Department has
advised that subscription-based streaming video services and rentals of digital videos are subject to
communications services tax, whereas, in TAA #14A19-005, dated December 18, 2014, the Department
determined that the purchase of digital video content stored on an online library for online streaming or
available for download is the sale of an information service not subject to communications services tax.
LAW AND DISCUSSION
As an initial matter, with regard to your references to TAA #s 14A19-005 and 15A-014, it must be noted
that TAA’s issued to other Taxpayers have no precedential value except to the taxpayer who requested
the advisement, and then, only for the specific transaction presented. See s. 213.22(1), F.S.
Chapter 202, F.S., imposes Communications Services Tax on the retail sale of communications services.
Communications services tax is comprised of the Florida communications services tax and the local
communications services tax. See s. 202.11(1), F.S.
Section 202.11(5), F.S., defines the term “information service” to mean “the offering of a capability for
generating, acquiring, storing, transforming, processing, retrieving, using, or making available information
via communications services, including, but not limited to, electronic publishing, web-hosting service, and
end-user 900 number service. The term includes data processing and other services that allow data to be
generated, acquired, stored, processed, or retrieved and delivered by an electronic transmission to a
purchaser whose primary purpose for the underlying transaction is the processed data or information.
The term does not include video service.” The term “information service” does not include video service.
The term “video services” means “the transmission of video, audio, or other programming service to a
purchaser, and the purchaser interaction; if any, required for the selection or use of a programming
service .... The term includes basic, extended, premium, pay-per-view, digital video, two-way cable, and
music services.” See s. 202.11(24), F.S.
A sale of communications services occurs when communications services are provided for a consideration.
Communications services tax applies to the retail sales price of communications services that (1) originate
and terminate in Florida, or (2) originate or terminate in Florida and are charged to a Florida service
address. See s. 202.12(1), F.S. Service address generally means the location of the equipment from which
communications services originate or are received by the customer. For video services, the service address
is the location where the customer receives the service in Florida. See s. 202.11(14), F.S.
As stated above, communications services tax is computed on the “sales price,” which is defined in s.
202.11(13), F.S., and means in part:
... the total amount charged in money or other consideration by a dealer for the sale of
the right or privilege of using communications services in this state, including any property
or other service, not described in paragraph (a), which is part of the sale and for which
the charge is not separately itemized on a customer’s bill or separately allocated under
subparagraph (b)8. The sales price of communications services may not be reduced by
any separately identified components of the charge which constitute expenses of the

Technical Assistance Advisement
March 7, 2023
Page 5

dealer, including, but not limited to, sales taxes on goods or services purchased by the
dealer, property taxes, taxes measured by net income, and universal-service fund fees.
In this case, Taxpayer provides a variety of service offerings, including
,
,
, and
. Taxpayer contends that these offerings are personal and/or information
services, not subject to Florida communications services tax. Taxpayer further contends that it is not
providing the telecommunications services necessary to access their website or platform or app;
therefore, its offerings should not be subject to communications services tax. For customers to access
Taxpayer’s offerings via its website, platform, or mobile application, the customer must have their own
data service plans.
Based on the description of Taxpayer’s service offerings, as well as review of the documentation and
information provided, Taxpayer’s charges for its offerings are subject to communications services tax, as
these services, involve the “transmission of video, audio, or other programming service to a purchaser …”
including “digital video,” which is defined as video services, pursuant to s. 202.11(24), F.S.
Despite your contention that Taxpayer’s offerings are nontaxable information services, these offerings fall
clearly within the statutory definition of video services, they cannot be information services. The
definition of video service, unlike information service, contains no test for the “primary purpose” of the
transaction, therefore the underlying purpose of the video service is irrelevant. The issue of “personal
service” becomes irrelevant. Accordingly, Taxpayer’s offerings that include audio or video are “video
services” subject to the communications services tax.
Section 202.12, F.S., provides that every person who engages in the business of selling communications
services at retail in this state is exercising a taxable privilege. As discussed above, part of the definition of
communications services in s. 202.11(1), F.S., includes “… video services, to a point, or between or among
points, by or through any electronic, radio, satellite, cable, optical, microwave, or other medium or
method now in existence or hereafter devised, regardless of the protocol used for such transmission or
conveyance.” The definition of video services in s. 202.11(24), F.S., encompasses Taxpayer’s offerings.
Taxpayer is providing communications services as defined by Chapter 202, F.S., and therefore must
register as a dealer.
You state that if the Department finds Taxpayer’s offerings to be subject to communications services tax,
it is your assertion that the tax base is only the portion of the payment that Taxpayer retains and should
not include the portion of the payment that Taxpayer collects on behalf of Talent. However, pursuant to
s. 202.11(13), F.S., the term, sales price, means the total amount charged for the sale of the right or
privilege of using communications services. The sales price may not be reduced by any separately
identified components of the charge which constitute expenses of the dealer, including, but not limited
to, sales taxes on goods or services purchased by the dealer, property taxes, taxes measured by net
income, and universal-service fund fees. Therefore, the total amount charged is subject to
communications services tax.
CONCLUSION
Based upon review of the documentation and information provided, as well as Taxpayer’s Terms of Use,
as of
, Taxpayer’s charges for its
,
,
,
and
offerings are subject to Florida’s communications services tax.

Technical Assistance Advisement
March 7, 2023
Page 6

This response constitutes a Technical Assistance Advisement under s. 213.22, F.S., which is binding on the
Department only under the facts and circumstances described in the request for this advice, as specified
in s. 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.
Confidential information must be deleted before public disclosure. In an effort to protect confidentiality,
we request you provide the undersigned with an edited copy of your request for Technical Assistance
Advisement, the backup material and this response, deleting names, addresses and any other details
which might lead to identification of the Taxpayer. Your response should be received by the Department
within ten (10) days of the date of this letter.
If you have any further questions with regard to this matter and wish to discuss them, you may contact
me directly at (850)717-6701.
Best Regards,

Shundra McClean
Shundra McClean
Tax Law Specialist
Technical Assistance & Dispute Resolution
Record ID: 597994
cc:

Technical Assistance Advisement
March 7, 2023
Page 7

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Tax type:

Communications Services Tax

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