CHANGES IN LOCAL COMMUNICATIONS SERVICES TAX RATES EFFECTIVE JANUARY 1, 2005

Effective January 1, 2005, numerous local communications services tax (CST) rates will change. These local tax rate changes are pursuant to an ordinance adopted by the governing authority of the county or municipality. The local tax rate for CST includes both the local rate imposed under the CST statute (Section 202.19, Florida Statutes) and the discretionary sales surtax imposed under the sales and use tax statute (Section 212.055, Florida Statutes). The new rates are effective for all bills issued on or after January 1, 2005, regardless of the date that the service is rendered or transacted. These rates will stay in effect until further notice by the Department.

This TIP does not include rate changes due to changes in the county discretionary sales surtax. The deadline for counties to notify the Department of these rate changes is November 16, prior to the January 1 effective date. In prior years, we have sent one TIP and rate schedule in November that included all rate changes effective January 1. However, we are now obliged to send this TIP, pursuant to Section 202.21, F.S., and an additional TIP after November 16 pursuant to Sections 202.20(3) and 212.054(7)(a), F.S.

The following jurisdictions will have a rate change due to a local ordinance:

January 2005 - CST Rate Changes	Total Local Rated
GLADES COUNTY Unincorporated Area	2.440%
GOLF - PALM BEACH COUNTY	5.220%
HAWTHORNE - ALACHUA COUNTY	5.220%
INDIAN SHORES - PINELLAS COUNTY	5.820%
KEY WEST - MONROE COUNTY	5.900%
LAKE BUTLER - UNION COUNTY	5.600%
MICANOPY - ALACHUA COUNTY	5.100%
ORLANDO - ORANGE COUNTY	5.520%
WORTHINGTON SPRINGS - UNION COUNTY	5.500%

Note: We urge you to use caution in changing rates at this time. Another TIP and a complete rate schedule, which will include all January rate changes, will be sent in late November.

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 forms and other information, visit our site at www.myflorida.com/dor. Or call Taxpayer Services, Monday through Friday, 8:00 a.m., to 7:00 p.m., ET, at 800-352-3671, 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, Taxpayer Services, 1379 Blountstown Highway, Tallahassee, FL 32304-2716.