The state of Florida is apparently in the process of considering new state communications tax guidelines that have some providers a little nervous. A concerned netizen writes us and included several pdf files (attached below) that explore the state's efforts to implement a State Communicated Services Tax. The documents do not appear on the State of Florida Department of Revenue web site, but outline the attempts being made in the state to create several new tax guidelines.

One of the documents outlines the proposal for rule 12A-19.036, which would make "Substitute Communications Systems" subject to State of Florida Communication Tax (9.17%), and local communication tax (5% to6%).

The definition of "Substitute Communications Systems" in the documents is defined as "any system that is used for voice or data, that connects multiple users with the use of Switching or Routing Technology".

So in essence, every Business owner who has a telephone system installed at the office, could be facing 14% to 16% Communication Taxes on the operating cost of the phone system.

Every Business owner who has a Computer network (LAN) installed at their office, would have to remit to the State of Florida, 14%-16% of Communication Taxes on the operating cost of the network. (Possibly on the cost of the whole IT department, with the exception of monies spent on purchasing hardware or software).

Individuals who have a computer network or LAN installed at their homes, and incur costs to operate and maintain it, might be subject to State Communication Taxes as well.

All wireless POP operators, would have to remit to the State of Florida 14% to 16% of Communication Taxes on the operating and maintenance cost of the Network.

A second rule (12A-19.002) is being proposed to explicitly clarify the issue of State of Florida Communication Tax on all pipes that are used to deliver Internet access.

According to the language of the proposal, all forms of communication lines used for delivering Internet Access will have to be billed as two components. The communication component (local loop, T1 loop, etc.) and the internet access component. The communication component would be subject to Florida communication taxes, though Internet Access cannot be taxed since it is a federal mandate.

Any provider who does not break down the bill to the end user, will have to pay these taxes from their own pockets, and will not be able to pass on these taxes to the end users.

Keep in mind, these changes are all simply proposed works in the progress of being negotiated.

See: Notice of Proposed Rule Development Substitute Communication Systems (link)

Notice of Proposed Rule Development DSL Internet Access (link)

As well as the agenda for a July 31st meeting to discuss the legislation.