HB 1897 2003
1	A bill to be entitled
2	An act relating to the taxable price of bundled
3	transactions; amending s. 202.11, F.S.; revising a
4	definition; creating s. 202.165, F.S.; providing a
5	definition; specifying the taxable price of certain
6	bundled transactions; providing the Department of Revenue
7	enforcement powers and rulemaking authority; specifying
8	duties and responsibilities of dealers and the department
9	in regard to customers; providing an effective date.
10
11	Be It Enacted by the Legislature of the State of Florida:
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13	Section 1. Paragraph (a) of subsection (15) of section
14	202.11, Florida Statutes, is amended to read:
15	202.11 Definitions.--As used in this chapter:
16	(15) "Service address" means:
17	(a) Except as otherwise provided in this section, the
18	location of the communications equipment from which
19	communications services originate or at which communications
20	services are received by the customer. If the location of such
21	equipment cannot be determined as part of the billing process,
22	as in the case of third-number and calling-card calls and
23	similar services, the term means the location determined by the
24	dealer based on the customer's telephone number, the customer's
25	mailing address to which bills are sent by the dealer, or
26	another street address provided by the customer.In the case of
27	a communications service paid through a credit or payment
28	mechanism that does not relate to a service address, such as a
29	bank, travel, debit, or credit card, and in the case of third-
30	number and calling-card calls,the service address is the
31	address of the central office, as determined by the area code
32	and the first three digits of the seven-digit originating
33	telephone number.
34	Section 2. Section 202.165, Florida Statutes, is created
35	to read:
36	202.165 Taxable price of bundled transactions.-—
37	(1) For purposes of this section, a "bundled transaction"
38	means a transaction consisting of distinct and identifiable
39	properties or services which are sold for a single nonitemized
40	sales price but which are treated differently for tax purposes.
41	The provisions of this section shall not apply to services
42	defined in s. 202.11(3)(h).
43	(2) In the case of a bundled transaction that includes
44	communications services:
45	(a) If the sales price is attributable to properties or
46	services that are taxable and properties or services that are
47	nontaxable, the portion of the sales price attributable to the
48	nontaxable properties or services shall be subject to tax unless
49	the dealer reasonably identifies and allocates such portion from
50	its books and records kept in the regular course of business for
51	other purposes.
52	(b) If the sales price is attributable to properties or
53	services that are taxable at different rates, the total sales
54	price shall be treated as attributable to the properties or
55	services taxable at the highest rate unless the selling dealer
56	reasonably identifies and allocates the portion of the sales
57	price attributable to the properties or services taxable at a
58	lower rate from its books and records kept in the regular course
59	of business for other purposes.
60	(3) If upon audit the department determines that the
61	selling dealer did not reasonably identify and allocate the
62	portions of the nonitemized sales price for purposes of
63	collecting and remitting tax on those portions of the
64	nonitemized sales price subject to tax under the law of this
65	state, or taxable at varying rates, the department may
66	redetermine the allocation to correctly reflect the proper
67	amount of tax due on the different properties or services and
68	determine and assess any resulting deficiency.
69	(4) The department is granted specific rulemaking
70	authority to adopt rules relating to the determination of
71	whether the portions of the single nonitemized sales price have
72	been reasonably identified and allocated based on books and
73	records and the types of books and records used to support such
74	identification. Such books and records shall include, but not be
75	limited to, items such as the dealer’s general ledger; price
76	lists; invoices, customer bills, and cost records; tariffs and
77	other regulatory filings; and rules or orders of regulatory
78	authorities.
79	(5) Upon written request from a customer currently under
80	audit under chapter 202 and, if applicable, chapter 212, the
81	selling dealer shall provide a written explanation of how the
82	sales price was apportioned to services and property involved in
83	the transaction for purposes of calculating the tax due. The
84	explanation must be provided within 60 days after receipt of the
85	customer request.
86	(6) This section does not create any customer right to
87	require that a selling dealer or the department identify the
88	different portions of bundled transactions to minimize the
89	customer’s payment of tax.
90	Section 3. This act shall take effect July 1, 2004.
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