TIP # 00AO1-03
DATE ISSUED: 01/24/00

Sales Tax on Prepaid Wireless Telephone Accounts
SUPPLEMENT TO TIP NO. 99A01-18

Effective July 1, 1999, sales tax, at the rate of seven percent, is due on the sale or recharge of a prepaid telephone calling card at the moment of sale to the customer. The statutory definition of "prepaid telephone card" includes the right to make telephone calls using a prepaid mobile account. Therefore, sales tax must also be collected on the sale or recharge of prepaid wireless telephone accounts at the time of sale or recharge. The sales tax on prepaid wireless telephone accounts is computed on the amount of the prepayment at the rate of seven percent, plus any applicable discretionary sales surtax imposed in the county in which the service is sold. Discretionary sales surtax is not due on the sale of a traditional prepaid telephone calling card, the primary purpose of which is to make long distance telephone calls.

FOR MORE INFORMATION

This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance.

For more information call Tax Information Services, Monday - Friday, 8:00 a.m. to 7:00 p.m., ET, at 1-800-352-3671 (in Florida only) or 850-488-6800.

Hearing or speech impaired persons should call our TDD at 1-800-367-8331 or 850-922-1115.

For a detailed written response to your questions, write the Florida Department of Revenue, Tax Information Services, 1379 Blountstown Highway, Tallahassee, FL 32304.

For forms and other information, visit our Web site at /dor/.

Get tax forms quickly by FAX ON DEMAND. Call 850-922-3676, twenty-four hours a day, seven days a week, using your fax machine handset and follow the instructions.

References:
HB 879

SUGGESTED CERTIFICATE FOR PRINTED MATERIALS

TO BE MAILED PARTLY OUTSIDE FLORIDA

FOR USE ON OR AFTER JULY 1, 2000

_______________________________ (Name of Purchaser of Printed Materials) certifies that he or she has placed an order, dated or numbered or otherwise described as follows:

___________________________________________________________________ with _______________________________ (Name of Printing Facility) for the printing of certain materials, and as a part of that order the Printing Facility has agreed to deliver the printed materials to the United States Postal Service for mailing to an agreed list of persons.

The above-named Purchaser further certifies that, based on the mailing list, none or less than a substantial part of the printed materials will be mailed to persons located in this state.

The Purchaser understands that, as a result of this certification, the Printing Facility has no obligation to collect any sales or use tax for the printed materials from the Purchaser, and that the Purchaser must pay sales or use tax directly to the Department of Revenue for all printed materials in the above order that are mailed to persons located within Florida. Such tax is due on the first day of the month following the sale of the materials and is delinquent on the 21st day of that month.