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The Florida Department of Revenue (DOR) administers 33 taxes, including sales and use tax, discretionary sales surtax, unemployment tax, communications services tax, and corporate income tax. These five taxes are briefly outlined here because many businesses are subject to them. For a complete list of taxes administered by the Department, contact Taxpayer Services.

Sales and Use Tax

Chapter 212, Florida Statutes (F.S.)

Sales tax applies to the sale, rental, lease, or license to use goods, certain services, and commercial property in Florida, unless the transaction is specifically exempt.

If your business will involve taxable transactions, you must register as a sales and use tax dealer before you begin conducting business in this state. See "How to Register" for details.

After your registration application is approved, you will receive a Certificate of Registration (Form DR-11), an Annual Resale Certificate (Form DR-13), and your tax return forms.

Dealers are responsible for collecting sales tax at the time of each sale and for remitting the tax for each collection period to the Department, along with a Sales and Use Tax Return (Form DR-15). Any use tax due must also be accrued and remitted on your tax return. You must file a return, even if no tax is due. If your business opening date changes, notify the Department to avoid a Notice of Delinquency and a late-filing penalty.

Discretionary Sales Surtax

Rule 12A-15.002, Florida Administrative Code

Florida counties are authorized to levy a discretionary sales surtax on most transactions in the county that are subject to sales and use tax.

A dealer who sells and delivers taxable merchandise or a taxable service to a location within a county imposing a discretionary surtax is required to collect the surtax at the rate imposed in the county where the merchandise or service is delivered. The surtax is levied on the first $5,000 of any item of tangible personal property. The $5,000 limit does not apply to commercial rentals, transient rentals, or services.

Dealers remit discretionary sales surtax to the Florida Department of Revenue, along with sales and use tax, on the Sales and Use Tax Return (Form DR-15).

Unemployment Tax

Chapter 443, F.S.

Unemployment compensation provides partial, temporary income to workers who lose their jobs through no fault of their own, and are able and available for work. The employer pays for unemployment compensation through a tax administered by the Department of Revenue. Workers do not pay any part of the unemployment tax and employers must not make payroll deductions for this purpose. The employer's payments go into a reserve fund from which benefits are paid to eligible claimants. After a qualifying period, employers with a stable employment history will receive credit for this in a reduced tax rate.

You will be liable for unemployment compensation taxes in Florida if you meet any of these criteria:

• You have a $1,500 quarterly payroll or employ at least one worker for a day or portion of a day for 20 weeks in a calendar year. This includes corporate officer wages, draws, dividends, distributions, etc.
• You are a government entity.
• You have a 501(c)(3) IRS exemption and employ four or more workers for a day or portion of a day for 20 weeks in a calendar year.
• You employ persons who provide agricultural labor; and you employ five or more workers for a day or a portion of a day for 20 weeks in a calendar year, or pay $10,000 in cash during any calendar quarter.
• You employ persons who provide domestic services in your private home or college club and you pay $1,000 in cash during any calendar quarter.
• You acquired all or part of the organization, trade, business, or assets of a liable employer.
• You are liable for federal unemployment taxes.
• You have voluntarily elected to cover workers.

If your business meets any of the above criteria, you must register to report unemployment tax. See "How to Register" for details.

Employers are required to file an Employer's Quarterly Report (Form UCT-6) each quarter, regardless of employment activity or whether any taxes are due. Exception: Employers of domestic employees may qualify for annual filing.

Communications Services Tax

Chapter 202, F.S.

If your business provides communications services, you must register to collect and remit communications services tax. The tax is imposed on voice, data, audio, video, or any other information or signal, including cable services that are transmitted by any medium. Dealers of communications services are required to file a monthly Communications Services Tax Return (Form DR-700016).

Examples of services subject to the tax include:

• Local, long distance, and toll telephone.
• Cable television.
• Direct-to-home satellite.
• Mobile communications.
• Private communications.
• Pager and beeper.
• Telephone charge made by a hotel or motel.
• Facsimiles (fax), when not provided in the course of professional or advertising services.
• Telex, telegram, and teletype
.

See "How to Register" for details on registration. If you are unsure whether your business is required to register for this tax, contact Taxpayer Services (See "For Information and Forms" below).

How to Register

You can register to collect and/or report tax via the Department's Internet site. Go to www.myflorida.com/dor/eservices and click on e-Services. If you do not have Internet access, you can complete a paper Application to Collect and/or Report Tax in Florida (Form DR-1). Obtain Form DR-1 from your local DOR service center or one of the contacts listed below.

Corporate Income Tax

Chapter 220, F.S.

Corporations and artificial entities that conduct business, or earn or receive income in Florida, including out-of-state corporations, must file a Florida corporate income tax return unless specifically exempt. The return must be filed, even if no tax is due.

S Corporations and tax-exempt organizations are generally not required to file a Florida corporate income tax return if they do not have federal taxable income. If they have federal taxable income, however, they are then required to file a Florida corporate income tax return and pay any tax due.

Homeowner and condominium associations that file federal Form 1120-H are not required to file a Florida corporate income tax return. If federal Form 1120 is filed, a Florida corporate income tax return is required.

Corporations and artificial entities subject to Florida corporate income tax must file Florida Form F-1120, Florida Corporate Income/Franchise and Emergency Excise Tax Return, unless they qualify to file Florida Corporate Short Form Income Tax Return, Form F-1120A.

Reference Material

Tax Rules

Call Taxpayer Services to request copies of Chapters 199, 202, 212, 220, and 443, Florida Statutes, and Rule 12A-15.002, Florida Administrative Code. Tax rules are also available on the Department's Internet site. Look for the Florida Tax Law Library.

Brochures

Ask for the following brochures, available from your local DOR service center, the DOR Distribution Center, or Taxpayer Services:

• Florida's Sales and Use Tax
• Discretionary Sales Surtax
• Florida's Corporate Income Tax
• Florida Unemployment Compensation Law
• Communications Services Tax
• Florida's Documentary Stamp Tax

For Information and Forms

Persons with hearing or speech impairments may call the TDD at 800-367-8331 or 850-922-1115.

• Order multiple copies of forms from our Internet site, or
• Mail form requests to:
  Distribution Center
  Florida Department of Revenue
  168A Blountstown Hwy
  Tallahassee FL 32304-3761