Florida Gross Receipts Tax on Utility Services

What is Taxable?

Tax is imposed on gross receipts from the sale, delivery, or transportation of natural gas, manufactured gas, or electricity to a retail consumer in Florida (as authorized by Chapter 203, Florida Statutes).

Who Must Register to Collect Tax?

Distribution Company. Each distribution company that receives payment for the sale or transportation of natural or manufactured gas or electricity to a retail consumer in Florida must report and remit the gross receipts tax from utility services on the Gross Receipts Tax Return (Form DR-133).

A "distribution company" is any person owning or operating local electric, or natural or manufactured gas, utility distribution facilities within Florida for the transmission, delivery, and sale of electricity or natural or manufactured gas. The term does not include natural gas transmission companies that are subject to the jurisdiction of the Federal Energy Regulatory Commission.

Use Tax. Any person who imports into this state electricity, natural gas, or manufactured gas, or severs natural gas for his or her own use as a substitute for purchasing utility, transportation, or delivery services taxable under Chapter 203, F.S., who cannot prove payment of tax, must register and report and remit gross receipts tax. Tax is applied to the "cost price" of electricity as provided in s. 212.02(4), F.S.

Cogeneration or Small Power Producers. Electricity produced by cogeneration or by small power producers is electricity that is:

• Transmitted and distributed by a public utility between two locations of a customer of a utility according to s. 366.051, F.S.
• Produced for the producers' own use as a substitute for electrical energy produced by an electric utility.

Cogenerators and small power producers are required to report and remit gross receipts tax. Tax is applied to the "cost price" of electricity as provided in s. 212.02(4), F.S.

What Is Exempt?

A complete list of tax-exempt transactions is provided in Chapter 203, F.S. Examples of exemptions include:

• A sale, transportation, or delivery of natural or manufactured gas or electricity for resale when documented in compliance with rules of the Department.
• Wholesale sales of electric transmission service.
• The use of natural gas in the production of oil or gas, or use of natural or manufactured gas by a person transporting natural or manufactured gas, when used and consumed in providing such services.
• The sale or transportation to, or use of, natural or manufactured gas by a person eligible for an exemption under s. 212.08(7)(ff)2., F.S.
• A sale, transportation, or delivery of natural or manufactured gas for use as a fuel in the generation of electricity.

How Do I Register to Collect Gross Receipts Tax?

You can register to collect and/or report tax via the Department's Internet site. Go to www.myflorida.com/dor/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.

After your registration application is approved, you will receive a Certificate of Registration for Gross Receipts Tax (Form DR-11GR).

When is Tax Due?

Beginning July 1, 2007 and thereafter, Florida law requires your tax returns (Form DR-133) and payments are due by the 20th day of the month following each collection period. If the 20th falls on a Saturday, Sunday, or federal or state holiday, your tax return must be postmarked or hand-delivered to the Department on the first working day following the 20th. (See TIP No. 07B06-02).

Taxpayers that file tax returns and make payments electronically can find payment due date calendars and other e-Services program information at: www.myflorida.com/dor/eservices/.

A tax return must be filed even when no (zero) tax is due.

What is the Penalty for Late Filing or Payment?

The penalty for a late-filed return or late payment is 10 percent for each month (or fraction of a month) the tax is late, not to exceed 50 percent of the tax due. A minimum penalty is $10, even if no tax is due.

File and Pay Electronically

The Department maintains a free and secure Internet site to file and pay gross receipts tax. To enroll, go to the Department's Internet site at e-Services.

Reference Material

Tax Laws - CContact Taxpayer Services Monday through Friday, 8 a.m. to 7 p.m., ET at 800-352-3671 to request a copy of Chapter 203 or rule Chapter 12B-6. Tax laws are also available on the Department's Florida Tax Law Library.

Information and forms are available on our Internet site at www.myflorida.com/dor/forms