Instructions For Completing The Florida Communications Services Tax Return (Form Dr-700016)

DR-700016N

R. 01/07

Page 23

Example 4: $1,113.09 in local tax due was originally reported in

reallocating the original local tax due amount reported in the

wrong jurisdiction to the correct jurisdiction. The tax should be

Jurisdiction B (tax rate 2.10%), but should have been reported

reallocated regardless of the tax rate originally used or the tax

in Jurisdiction A (tax rate 1.10%). Calculate the change

rate of the correct jurisdiction. Taxable sales amounts should

(decrease) in taxable sales for Jurisdiction B by dividing the

be calculated by dividing the tax amount by the tax rate for

tax due originally reported in Jurisdiction B by its current

each affected jurisdiction.

tax rate. (EX: $1,113.09 divided by .0210 = $53,004.29).

Report the decrease in parentheses. Calculate the change

Example 1: $1,113.09 in local tax due was originally reported in

(increase) in taxable sales to Jurisdiction A by dividing the

Jurisdiction A (tax rate 1.10%), but should have been reported

tax due originally reported in Jurisdiction B by the current

in Jurisdiction B (tax rate 2.10%). Calculate the change

tax rate for Jurisdiction A. (EX: $1,113.09 divided by .0110 =

(decrease) in taxable sales for Jurisdiction A by dividing the

$101,190.00).

tax due originally reported in Jurisdiction A by its current tax

rate. (EX: $1,113.09 divided by .0110 = $101,190.00). Report

Column G - Rate. Enter the appropriate local rate for the

the decrease in parentheses. Calculate the change (increase)

applied period that you are adjusting.

in taxable sales to Jurisdiction B by dividing the tax due

Column H - Collection allowance adjustment. Collection

originally reported in Jurisdiction A by the current tax rate for

allowance adjustments are required for all transfers of tax

Jurisdiction B. (EX: $1,113.09 divided by .0210 = $53,004.29).

between jurisdictions and any transactions that result in a

Example 2: $1,113.09 in local tax due was originally reported in

decrease in taxable sales for a prior applied period. If the

Jurisdiction B (tax rate 2.10%), but should have been reported

original filing was not eligible for a collection allowance or

if this schedule is being used to report only an increase in

in Jurisdiction A (tax rate 1.10%). Calculate the change

(decrease) in taxable sales for Jurisdiction B by dividing the

taxable sales for a prior applied period, this section does not

tax due originally reported in Jurisdiction B by its current

apply. Enter 0 (zero) in Column H.

tax rate. (EX: $1,113.09 divided by .0210 = $53,004.29).

When a jurisdictional transfer results in a transfer to a

Report the decrease in parentheses. Calculate the change

jurisdiction with the same or higher tax rate, the collection

(increase) in taxable sales to Jurisdiction A by dividing the

allowance adjustment must be capped at the amount claimed

tax due originally reported in Jurisdiction B by the current

on the original return (i.e., no additional collection allowance

tax rate for Jurisdiction A. (EX: $1,113.09 divided by .0110 =

will be granted on additional tax due as a result of the

$101,190.00).

transfer).

If you are using a database that does not meet the

If Column F (Change in reported taxable sales) is a decrease

requirements of section 202.22, F.S., you should identify the

(negative number), the collection allowance must be recouped

taxable sales and local tax due amounts to be reallocated,

by one of the following methods. The result should be entered

the tax rates for the jurisdictions where the tax was originally

as a positive number in Column H.

reported (incorrect jurisdiction), and where the tax should be

reported (correct jurisdiction).

• If you are using the DOR database, a database certified by

DOR, or a ZIP+4 database in compliance with s. 202.22,

If the correct jurisdiction has a higher tax rate, the original

F.S., multiply .0075 by the tax collected and/or accrued for

taxable sales amount will be used to claim a credit in the

sales being decreased in Column F.

incorrect jurisdiction. This same taxable sales amount will

be used in the correct jurisdiction to calculate tax due. When

• If you are not using the DOR database, a database

multiplied by the tax rates, a higher local tax due amount in

certified by DOR, or a ZIP+4 database in compliance with

the correct jurisdiction will result. Note that additional local tax

s. 202.22, F.S., multiply .0025 by the tax collected and/or

resulting from the transfer to a jurisdiction with a higher tax

accrued for sales being decreased in Column F.

rate will be due, along with penalty and interest. See “Penalty

Column I - Adjustment amount. Subtract Column H from the

and Interest Calculation.”

tax collected and/or accrued for the sales reported in Column

Example 3: $101,190.00 in taxable sales was originally reported

F, and enter the result here. Report negative amounts in

in Jurisdiction A (tax rate 1.10%) but should have been

parentheses (amount).

reported in Jurisdiction B (tax rate 2.10%). Report the change

Penalty and Interest Calculation

(decrease) in taxable sales ($101,190.00) in Jurisdiction A and

the tax rate (1.10%) in the appropriate columns. Report the

Penalty and interest are due on all adjustments which result

decrease in parentheses. Report the change (increase) in

in additional tax due, except corrections of state or local tax

taxable sales ($101,190.00) in Jurisdiction B and the tax rate

situsing errors (revenue reported in the wrong jurisdiction). If

(2.10%) in the appropriate columns. The additional tax will be

you are using the DOR database, a database certified by DOR,

due, along with penalty and interest.

or a ZIP+4 database in compliance with s. 202.22, F.S., you

will be held harmless for tax, penalty, and interest that would

If the rate of the correct jurisdiction is the same as or lower

have accrued otherwise as a result of the additional tax due on

than the original (incorrect) jurisdiction, the tax due amount

transfers between jurisdictions. If you do not use a database as

reported should be used to claim a credit in the original

specified in the previous sentence you will not be held harmless

(incorrect) jurisdiction and this same tax due amount reported

in the correct jurisdiction. Taxable sales amounts should be

and the additional tax due from the transfer to the jurisdiction with

the higher tax rate will be due, along with penalty and interest.

calculated by dividing the tax amount by the tax rate for each

affected jurisdiction. When tax is transferred to a jurisdiction

Column J - Penalty. See “Penalty for late payments” on Page

with a lower rate, calculated taxable sales will not match

19 for information on calculating the penalty due.

actual sales to customers but will provide the information

needed to correct the allocation of tax reported.

Instructions For Completing The Florida Communications Services Tax Return (Form Dr-700016) - 2007 Page 6

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