Florida Administrative Code
12 - DEPARTMENT OF REVENUE
12A - Sales and Use Tax
Chapter 12A-19 - COMMUNICATIONS SERVICES TAX
Section 12A-19.080 - Distribution Adjustments Resulting from Misallocation of Tax

(a) "Distribution adjustments" are the reallocation of tax between local taxing jurisdictions or reallocation of tax distributed incorrectly to either the state, gross receipts or local portion of Communications Services Tax. This reallocation may be the result of incorrect local jurisdictional situsing, misapplication of tax on the return, or other filing errors causing tax misallocation.

(b) "Situsing" is the assignment of a service address to a local taxing jurisdiction.

(c) A "completed audit" is as an audit that has been paid and all formal or informal protest rights have been exercised or expired.

(a) The Department's determination will occur annually on or about November 15 and notice of this determination will be mailed to each affected local jurisdiction.

(b) Example: A jurisdiction's average monthly distribution is $10, 000. The jurisdiction's sum total of adjustments for the adjustment cycle is ($9, 000). All adjustments are from audits with a 36-month audit period. The ($9, 000) will be allocated equally over a 36-month period with a monthly adjustment of ($250). [($9000) / 36 months = ($250)].

(c) Example: A jurisdiction's average monthly distribution is $10, 000. The jurisdiction's sum total of adjustments for the adjustment cycle is ($8, 000.00). The ($8, 000) adjustment will be made to the jurisdiction's December distribution.

(a) On February 1, distribution adjustments will be combined into one electronic file organized by county and then jurisdiction within the county. For each local jurisdiction, the file will identify the taxpayer names, federal identification numbers, and the amount of the distribution adjustment. The file will be posted to the Local Government Communications Services Tax Information Sharing System. All local jurisdictions will have 30 days to review and make general inquiries regarding their proposed distribution adjustment. A local jurisdiction may make the inquiry to the Florida Department of Revenue, Local Government Unit, by mail at 5050 W. Tennessee St., Mail Stop 1-4400, Tallahassee, FL 32399-0161, or by email to local-govt-unit@floridarevenue.com, or by phone to (850)717-6630. All general inquiries regarding proposed distribution adjustments must be postmarked or otherwise time stamped or received by March 1.

(b) At any time, a local government may request to review adjustment documentation. Local governments who seek to review the documentation regarding their distribution adjustment(s) must submit a written letter specifying which adjustment(s) the local jurisdiction wishes to review. The letter must include:

(c) On April 1, a final adjustments file will be posted to the Local Government Communications Services Tax Information Sharing System.

(d) On or about November 15, if the Department determines that misallocations have occurred, it will mail notification of this determination to each affected local jurisdiction.

(e) The December distribution of communications services tax will include adjustments for those jurisdictions whose net adjustments are less than ninety percent (90%) of the average monthly distributions to the affected jurisdiction for the six months immediately preceding November 1.

(f) March Distribution of the subsequent year: For those jurisdictions whose net adjustments are equal to or in excess of the ninety percent (90%) of the average monthly distributions to the affected jurisdiction for the six months immediately preceding November 1, the first distribution adjustments will occur in March, unless the Department has received a written agreement specifying a different method of adjustment from affected jurisdictions by March 1.

(g) If any date specified above falls on a Saturday, Sunday, or federal or state legal holiday, the specific action will occur on the next succeeding workday.