DATE ISSUED:May 23, 2007
Effective annually on July 1, the index prices used by distribution companies to calculate the gross receipts tax on the sale or transportation of natural or manufactured gas to retail consumers are adjusted as provided by law. Beginning with customer bills dated on or after July 1, 2007, distribution companies must use the index prices listed below when completing Form DR-133, Gross Receipts Tax Return.
The gross receipts tax due on the sale or transportation of natural or manufactured gas to retail consumers in Florida is computed by multiplying the quantity sold or transported by the appropriate index prices listed above and then applying the 2.5% gross receipts tax rate (see Form DR-133 Gross Receipts Tax Return instructions).
Electricity: Distribution companies should not use index prices to calculate tax due on the delivery of electricity to retail consumers in Florida under current law. However, Florida law requires the Department of Revenue to announce the index prices that would be used if Florida law were revised. Electricity index prices (cents per KWH) for the period July 1, 2007, through June 30, 2008, are as follows: Residential $0.1098; Commercial $0.0969; Industrial $0.0727.
For your convenience, this notice will be posted on the Department of Revenue's Internet site. Look under the "Check Rates Here" section of the Department's "Taxes" page (http://www.myflorida.com/dor/taxes/) and click on "Gross receipts tax index prices."
Please note that Chapter 2005-148, Laws of Florida, significantly modified how Florida's Gross Receipts Tax is calculated for natural and manufactured gas utility services. Tax Information Publication 05B06-04 (Revised 12-20-05) provides a detailed explanation of these law changes.
** Source for Florida index prices - United States Department of Energy Information Administration Natural Gas Monthly website (published on April 30, 2007).
References: Subparagraphs 203.01(1)(d)2. and 203.01(1)(e)2., Florida Statutes.
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 website at www.myflorida.com/dor or call Taxpayer Services, 8:00 a.m. to 7:00 p.m., ET, Monday through Friday, excluding holidays, at 800-352-3671.
For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, MS 3-2000, 5050 West Tennessee Street, Tallahassee, FL 32399-0112.