Were emergency notification, voice-message, and interactive voice-response services subject to Florida CST or sales tax?

Plain-English summary

The Florida Department of Revenue found no communications services tax or sales tax due on the four notification and call-management offerings under the facts presented, though the legal reason differed by service.

Outbound emergency notifications and delivered voice messages were information services for CST purposes, not communications services sold to customers. They also were not taxable information services for sales-tax purposes. The provider's purchased communications services were not subject to CST because the servers where the services originated or terminated were outside Florida.

The inbound IVR product included a taxable-type communications component: the toll-free line used to record and retrieve messages. But no CST was due because the calls did not originate or terminate in Florida and were not charged to a Florida service address. Electronically delivered IVR reports were not subject to sales tax or CST.

Outbound IVR call transfer was routing and therefore a communications service, but it likewise was not subject to CST because it originated from out-of-state servers, did not terminate in Florida, and was not charged to a Florida service address.

What this means for you

Notification and messaging platforms

Classify each component separately: message creation and information processing, purchased transmission, toll-free access, reporting, and call transfer can have different tax treatment.

Tax and billing teams

Server location, call origination and termination, service address, and whether charges are bundled or itemized should be documented. Exempt-customer status alone is not a substitute for the sourcing analysis.

Common questions

Q: Were outbound emergency notifications and voice-message delivery taxable?
A: No. The provider sold information services and consumed the underlying communications services outside Florida.

Q: Was the inbound toll-free line a communications service?
A: Yes, but the charge was not subject to CST under the stated out-of-state sourcing facts.

Q: Did electronic IVR reports owe sales tax?
A: No.

Citations and references

• Fla. Stat. §§ 202.11, 202.12(1), 202.125, 212.02(16), 212.05, 212.08(7)(v), and 213.22
• Fla. Admin. Code rr. 12A-1.062, 12A-19.042, and 12A-19.043

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 14A19-004

Original ruling text

Executive Director
Marshall Stranburg

Question: Are the following services subject to CST or sales tax:

1. Delivery of high-speed outbound emergency notification services including phone, email, text
   and social media messages, to the various constituents of tax exempt organizations. (Services as
   described under Outbound Emergency Notifications services.)
   Response: For the Outbound Emergency Notification services – These are sales of
   information services for CST purposes and would not be subject to CST. The Taxpayer
   consumes communications services in its provision of an information service. In general, the
   Taxpayer will not owe CST on its purchases of communications services, because the servers
   where the communications services are used are located outside Florida.
2. The delivery of voice messages to live recipients, answering machines, and voicemail boxes for
   charitable solicitations and communication for existing business relationships, general interest
   and emergency purposes. (Delivery of Voice Messages services)
   Response: For the Delivery of Voice Messages services, the Taxpayer is not providing
   communications services, but instead consumes communications services in the provision of
   information services for CST purposes. Neither the Taxpayer’s charge to the customer nor its
   purchase of communications services used to provide the information service are subject to
   CST.
3. Inbound Interactive Voice Response applications, which prompt callers for input and use their
   responses to perform defined actions on a database for various charitable solicitations and
   communication for existing business relationships purposes. (Inbound Interactive Voice
   Response services)
   Response: The Inbound Interactive Voice Response service includes a charge for a toll-free
   line that the customer and the customer’s callers use to retrieve the customer’s messages.
   The charge for the toll-free line is the sale of a communications service. However, charges
   for the toll-free line would not be subject to CST, because they do not originate or terminate
   in Florida and are not charged to a Florida service address.
4. Outbound Interactive Voice Response applications which perform automated call distribution
   and assign calls over to live representatives. (Outbound Interactive Voice Response services)
   Response: The Outbound Interactive Voice Response makes only outbound calls from the
   servers located in XXXX, XXXX, and XXXX and, under certain conditions, may transfer calls
   to a live operator. Call transfer is routing and is a communications service. However, because the
   communications services do not originate or terminate in Florida and are not charged to a Florida
   service address, such charges are not subject to CST.
   Child Support Enforcement – Ann Coffin, Director  General Tax Administration – Maria Johnson, Director
   Property Tax Oversight – James McAdams, Director  Information Services – Damu Kuttikrishnan, Director

www.myflorida.com/dor
Tallahassee, Florida 32399-0100

Technical Assistance Advisement
Page 2
July 8, 2014
RE:

Technical Assistance Advisement – TAA 14A19-004
Communications Services Tax
XXXX (Taxpayer)
FEI #: XXXXXXXX
Chapters 202 and 212, Florida Statutes

Dear XXXX,
This is a response to your letter dated January 6, 2014. You have requested a Technical Assistance
Advisement (TAA) regarding the Department’s position on the application of Sales and Use Tax
(sales tax) and Florida Communications Services Tax (CST) on your client’s sales of notification
and call management services to customers. The information provided with your letter established
that you meet the requirements for a TAA.
ISSUE
The Taxpayer asks whether the following services it provides are subject to CST or sales tax:

1. Delivery of high-speed outbound emergency notification services including phone, email, text
   and social media messages to the various constituents of tax exempt organizations. (Services as
   described under Outbound Emergency Notifications services.)
2. The delivery of voice messages to live recipients, answering machines, and voicemail boxes for
   charitable solicitations and communication for existing business relationships, general interest
   and emergency purposes. (Delivery of Voice Messages services)
3. Inbound Interactive Voice Response applications which prompt callers for input and use their
   responses to perform defined actions on a database for various charitable solicitations and
   communication for existing business relationships purposes. (Inbound Interactive Voice
   Response services)
4. Outbound Interactive Voice Response applications which perform automated call distribution
   and assign calls over to live representatives. (Outbound Interactive Voice Response services)
   FACTS
   The TAA request letter provides the following regarding transactions involving the Taxpayer’s
   business of providing various services. The Taxpayer,
   … provides high-speed outbound notification services via an internet based
   software system. Additionally, the Taxpayer provides automated inbound and
   outbound call management services using [its] interactive voice response ("IVR")

Technical Assistance Advisement
Page 3
system … for the automated delivery of recorded voice messages to both
answering devices and live call recipients. In addition, [the Taxpayer] established
a Software as a Service (SaaS) model for community wide emergency
notification. This new use of technology allows municipalities, schools and
individuals to communicate ….
More detailed explanations are provided about each of the services the Taxpayer provides, with
descriptions excerpted from the Taxpayer’s letter as follows.
Outbound Emergency Notifications Services
The Taxpayer provides outbound emergency notifications to governmental entities, schools (both
public and private), and the utilities industry.
The services provided by [the Taxpayer] enable their customers to generate highspeed notifications to geographically selected calling areas and/or listed
databases. This is accomplished by the customer choosing one of two options.
Under the first option, the customer is provided a limited number of pass codes
which allow the customers’ representative(s) access to [the Taxpayer’s] software
via the [I]nternet. The customers use this access to create messages which are
subsequently broadcast via email, text message, social media and/or a phone call
to a specified database of recipients … using [the Taxpayer’s] software and the
IVR[,] both of which are located on servers in XXXX, XXXX, and XXXX.
Under the second option, the customer is provided an access phone number which
allows them to record messages for broadcast to the customers’ specified database
using [the Taxpayer’s] software and IVR. Upon creation of the message by the
customer, [the Taxpayer’s] servers send the messages using a domestic telephone
company and/or an [I]nternet [S]ervice [P]rovider. [The Taxpayer] pays all
applicable taxes on its use of the telephone service and/or [I]nternet service it uses
to provide the notification services.
The Taxpayer explains that for the access phone number under the second option, the recording
lines are shared by all customers. Customers are charged for the service annually. The Taxpayer
explains that:
Most customers have an annual minute bank which is based on the amount of
time used to deliver voice messages to recipients. If a customer exceeds [its]
annual system utilization [it] can opt for a block of additional time to be used in
the future. Charges for accessing this line are not separately charged to the
customer, these charges are included as a part of the service at no additional
charge. Also, there is no charge for the time a customer spends recording a
message or preparing to send the message.

Technical Assistance Advisement
Page 4
Review of the sample contract provided for the Outbound Emergency Notifications service
provides the following information as excerpted in pertinent parts below. The [XXXX] Services
Agreement will be referred to throughout this advisement as the “Services Agreement,” as it also
applies to the IVR service and the Outbound IVR service. 1
Licensor is the owner of a service identified as “[XXXX] Emergency Notification
System” (the “Service”), which is designed to allow authorized licensed users to
have access 24 hours a day, 7 days a week for the purpose of generating highspeed notifications to targeted groups via an Internet-hosted software application.
Licensee desires to utilize the Service for the purpose of communicating matters
of public interest and concern…
The Services Agreement contract specifies that the Taxpayer grants its customer a non-exclusive
and non-transferable license to use the Service for the customer’s own purpose.

3. Functionality: The Service provides the ability for the Licensee to generate
   high-speed notifications to geographically selected calling areas and/or listed
   databases via an Internet-hosted software application. The Service utilizes an
   interactive voice response telephone service to record Licensee voice messages
   and initiate telephone call-out projects….
   Costs for the service are detailed in “Exhibit A – Service Charges.” This schedule evidences an
   $X0,000 charge, annually, for an initial 3-year term. Included in this charge are 500 minutes for
   testing and training, up to 5 user pass codes, one distance training session, one database upload,
   data and record management, the service data collection website, the service mapping interface,
   etc. Additional user passcodes and distance training sessions may be purchased for additional
   charges.
   Delivery of Voice Messages Services
   The Taxpayer describes its provision of this service as follows:
   The Taxpayer provides the delivery of voice messages to live recipients,
   answering machines and [voicemail] boxes for general interest and emergency
   notifications. Taxpayer’s customers either provide a database listing of phone
   numbers or are provided access to the Taxpayer’s database of records and are
   provided with access to the Taxpayer’s [I]nternet portal. The customers can also
   initiate projects not run through the [I]nternet portal by submitting a request for
   services (RFS) that defines the Project call date(s), Project goals, database
   identifier(s) and a voice message recording. If the Taxpayer accepts the RFS, it
   will use [its’] software to generate outbound automated telephone calls to the

1

The Taxpayer’s emergency notification system is copyrighted. Therefore, it is redacted and not referenced by name
in this TAA.

Technical Assistance Advisement
Page 5
defined database of numbers. The Taxpayer uses a domestic telephone company
to deliver the voice messages and pays all applicable taxes on its use of the
telephone service.
Review of the sample contract provided supports the description as provided above. It provides,
… Through the use of sophisticated call progress analysis the NETWORK can be
utilized for a variety of telephony related applications such as voice broadcasting,
automated surveying and other interactive voice response applications….
The contract states the “Costs for Services” as follows:
Voice Broadcasting (“VB”) Charges:

$0.XX per delivered message
(subject to the minimum amounts
required below)

VB Manual Set-up Fees*:

$XXX per individual Project
(includes two voice recordings)

Minimum Project Billing:

$X00 per individual Project
(excluding additional charges*)

Special Reports:

$XX per report. Standard Project
recaps are provided free of charge

*VB Manual set up fees include the processing of one (1) calling database for
one (1) calling date and the recording set-up of one (1) or two (2) voice files. …
Any Project whose set-up requirements exceed these standards … will be subject
to additional charges per MESSSAGE CENTRIC’s then current fee schedule….
Inbound Interactive Voice Response Services (IVR)
The letter provides the following explanation of its IVR service:
[The Taxpayer] obtains a unique toll-free number from a domestic telephone
company and provides its customer with access to its IVR system via the unique
number and an assigned [Personal Identification Number]. The service allows the
customer to record messages by dialing their assigned number and using their
assigned PIN. The customer can then promote the assigned toll-free telephone
line, and callers may call this line to listen to the prerecorded message recorded
by the taxpayer's customer. The service captures the caller’s spoken responses and
key press information and provides a report in the system regarding the caller’s
caller ID, call time and responses. The Taxpayer’s customer pays a monthly fee

Technical Assistance Advisement
Page 6
for the service plus an additional fee per minute used for incoming calls to
service. This per minute fee applies for both calls made into the system to record
the messages and to listen to the messages. (Emphasis supplied.)
There is no charge for the utilization of a toll-free phone line. Rather the IVR
services are billed based on the time an IVR customer is on the phone with the
IVR system. The Taxpayer’s customer is billed only for the time that a caller is
connected to the IVR line. Additionally, the IVR reports which are provided to
the Taxpayer’s customer are all delivered electronically.
In addition to the contract information provided regarding the Outbound Emergency
Notifications service, an addendum entitled “Bulletin Board Service Addendum” provides
additional terms for the IVR service. The addendum provides that,
… Licensor will provide the Licensee with a unique, toll-free telephone line
terminating at Licensor’s interactive voice response (“IVR”) system (the “Bulletin
Board Service”). The Bulletin Board service will allow Licensee to record
messages by dialing Licensee’s assigned IVR and accessing the Bulletin Board
Service using Licensee’s assigned PIN. Licensee may then promote [its] assigned
toll-free telephone line, and callers may call such line to listen to the prerecorded
message recorded by Licensee. The Bulletin Board Service will capture the
caller’s spoken responses and keypress information and provide a report in the
[XXXX} system regarding the caller’s caller ID and call time. (Emphasis
supplied.)
The cost for services states that,
Licensee shall pay to Licensor [XX] hundred and [XX] dollars ($XXX] per
month for the Bulletin Board Service plus $0.XX per minute used for incoming
calls to the Bulletin Board Service (whether made for the purpose of recording or
listening to the messages…. (Emphasis supplied by the Taxpayer and by the
Department.)
Outbound Interactive Voice Response Services
The Taxpayer explains that its IVR system can also perform automated outbound calls and call
distribution. It works as follows:
The Taxpayer’s customer can provide the Taxpayer with a database of phone
numbers to be contacted. The IVR system will make automated outbound calls
and those that reach live persons can survey the call recipient, capture responses
and transfer certain callers to live operators based on the responses. Customers
utilizing the IVR system are only billed for system utilization time. This relates to

Technical Assistance Advisement
Page 7
the time when end users, callers, and recipients are connected to the IVR. There is
no charge for the utilization of the toll-free line [, and] the IVR reports are
delivered electronically to the Taxpayer’s customer.
While the Taxpayer’s explanation does not reference this, the sample contract provided for these
services references the “Integrated Public Alert Warning System (“XXXX”).
XXXX is a public alert and warning system developed and maintained by the
Federal Emergency Management Agency (“FEMA”), and is designed to provide
integrated services and capabilities to local, state and federal authorities for the
purpose of enabling them to alert and warn their respective communities via
mobile communication methods. Licensor’s [Proprietary] Service has the ability
to permit authorized XXXX users to deliver messages to XXXX through the
[Taxpayer’s Proprietary] Service using an XXXX add-on (the “XXXX
Submission App”).
The contract further provides that once the Licensee (or customer) submits messages to XXXX,
the Licensor has no further guarantees or responsibilities regarding the dissemination of the
message.
Cost for this service includes an amount (in the thousands) for the initial term , and then an
annual amount for each successive term for the service.
TAXPAYER POSITION
The Taxpayer explains that it is either not providing a communications services to its customers
or, in the event that it is providing a communications service, that (1) the service does not
originate and/or terminate in Florida or (2) is provided to an exempt entity. The Taxpayer’s letter
opines that based on its understanding of Florida law, none of the services it provides are subject
to CST or sales tax.
LAW AND DISCUSSION
Communications Services Tax
Section 202.11(1), F.S., provides the following definition, quoted in pertinent part, for
communications services.
“Communications services” means the transmission, conveyance, or routing of
voice, data, audio, video, or any other information or signals, including video
services, to a point, or between or among points, by or through any electronic,
radio, satellite, cable, optical, microwave, or other medium or method now in
existence or hereafter devised, regardless of the protocol used for such
transmission or conveyance. The term includes such transmission, conveyance, or
routing in which computer processing applications are used to act on the form,
code, or protocol of the content for purposes of transmission, conveyance, or

Technical Assistance Advisement
Page 8
routing without regard to whether such service is referred to as voice-overInternet-protocol services or is classified by the Federal Communications
Commission as enhanced or value-added. The term does not include:
(a) Information services. …
Information services are defined as follows in s. 202.11(5), F.S.
“Information service” means the offering of a capability for generating, acquiring,
storing, transforming, processing, retrieving, using, or making available
information via communications services, including, but not limited to, electronic
publishing, web-hosting service, and end-user 900 number service. The term does
not include video service.
Section 202.11(12), F.S., provides the definition of a sale of communications services.
“Sale” means the provision of communications services for a consideration.
Rule 12A-19.042(4), F.A.C., provides the documentation requirements a Taxpayer must verify
and/or procure to exempt a governmental entity.
(a) A dealer is not obligated to collect and remit the Florida communications
services tax and the local communications services tax on such sales when either
of the following two alternative documentation requirements has been met and the
payments are made directly by the governmental entity.

1. A dealer has on file a writing or document evidencing a representation of the
   dealer’s customer that the communications services are being purchased by an
   entity described in subsection (2) or (3). The writing or document may be a
   customer application, a certificate, or a series of billing statements to the customer
   that identifies the customer as such an entity and that provides the customer a
   means to change its classification if the communications services are no longer
   purchased for use by the entity. A “customer application” includes a record of
   information obtained electronically or orally from the customer in the ordinary
   course of business at the time of establishing the account.
2. A dealer has on file a copy of the customer’s Florida Consumer’s Certificate of
   Exemption (form DR-14) identifying the customer as “federal,” “state,” “county,”
   or “municipality.”
   (b) A dealer must have acted in good faith in accepting the representation of the
   customer.
   (c) When a dealer accepts a payment made using an authorized Purchasing or
   Procurement Card (“P-Card”) that indicates on its face that it is a Florida state or
   local government purchasing card for official business only, a dealer should not
   charge any communications services taxes.
3. To substantiate the exempt nature of the sale in its books and records, a dealer
   is only required to either:

Technical Assistance Advisement
Page 9
a. Obtain a copy of the face of the Purchasing or Procurement Card, or
b. Obtain the tax exempt number, account number, and cardholder name from the
face of the card.

2. Payments made using a Purchasing or Procurement Card are direct payments
   by the authorizing governmental entity. A dealer is not required to obtain a copy
   of the governmental entity’s Consumer’s Certificate of Exemption.
3. A dealer is not obligated to determine what items the Purchasing or
   Procurement card may or may not be used to purchase. It is the cardholder’s
   responsibility to use the card only for allowable purchases.
   Sales and Use Tax
   Section 212.08(7)(v), F.S., provides an exemption from sales tax for professional services.
4. Also exempted are professional, insurance, or personal service transactions that
   involve sales as inconsequential elements for which no separate charges are made.
5. The personal service transactions exempted pursuant to subparagraph 1. do not
   exempt the sale of information services involving the furnishing of printed,
   mimeographed, or multigraphed matter, or matter duplicating written or printed
   matter in any other manner, other than professional services and services of
   employees, agents, or other persons acting in a representative or fiduciary
   capacity or information services furnished to newspapers and radio and television
   stations. As used in this subparagraph, the term “information services” includes
   the services of collecting, compiling, or analyzing information of any kind or
   nature and furnishing reports thereof to other persons. …
   Rule 12A-1.062(3) and (5), F.A.C., quoted in pertinent part, provide guidance on
   information services for sales tax purposes.
   (3)(a) "Information services" means and includes the services of collecting,
   compiling or analyzing information of any kind or nature, or furnishing reports
   thereof to other persons. The charge for furnishing information services, such as
   newsletters, tax guides, research publications, and other written reports of
   compiled information, which are not produced for and provided exclusively to a
   single customer, is taxable.
   (b) The term "information services" does not include the furnishing of
   information, including a written report to a person of a personal or individual
   nature, that is not or may not be substantially incorporated in reports furnished to
   other persons.

Technical Assistance Advisement
Page 10
(5) The charge for furnishing information by way of electronic images which
appear on the subscriber's video display screen does not constitute a sale of
tangible personal property nor does it constitute the sale of a taxable information
service.

Communications services are defined, in part, as the transmission, conveyance, or routing of
voice, data, audio, video, and/or any other information or signals to a point or between or among
points, regardless of the medium or methods used. They include transmissions where “computer
processing applications” are used to act on the form, code, or protocol of the content for purposes
of transmission. The definition of communications services excludes a narrow list of services,
including Information services. (See s. 202.11(1), F.S.)
“Information services” is defined in Florida statute as “… the offering of a capability for
generating, acquiring, storing, transforming, processing, retrieving, using, or making available
information via communications services, including, but not limited to, electronic publishing,
web-hosting service, and end-user 900 number service.” (See s. 202.11(5), F.S.)
CST is imposed upon the retail sale of communications services when the services (1) originate
and terminate in Florida, or (2) originate or terminate in Florida and are charged to a Florida
service address. (s. 202.12(1), F.S.) A service address is, in general, the location of the
communications equipment from which the services originate, or the location at which the
services are received. (s. 202.11(14), F.S.)
There are few exemptions from CST and they differ greatly from sales tax exemptions. For any
sales of communications services, sales to federal, state, or local governmental entities would be
exempt from CST pursuant to ss. 202.125(2) and (3), F.S. In additional, any sales to institutions
meeting the qualifications outlined in s. 202.125(4), F.S., specific educational or religious
institutions, or homes for the aged, would be exempt from CST. Rule 12A-19.042(4), F.A.C.,
provides the documentation requirements a Taxpayer must procure to exempt a government
entity from CST. For specific educational or religious institutions, or homes for the aged, Rule
12A-19.043, F.A.C., contains suggested formats for exemption certificates these entities may use
for documenting their exemption from CST. Absent provision of the documentation for
governmental entities or the suggested format exemption certificates for other exempted entities,
it is advised that the Taxpayer charge CST where applicable. For sales tax purposes, an exempt
entity must provide its Florida Consumer’s Certificate of Exemption to document its exempt
status.
In Florida, the sale of tangible personal property is subject to sales tax (SUT). (See section
212.05, F.S.) Sales tax is due on the “sales price.” (See s. 212.02(16), F.S.) By definition, the
“sales price” includes services that are part of the sale of tangible personal property. However,
professional services are exempted from SUT, except for information services. Information
services for SUT purposes are defined as “… services of collecting, compiling or analyzing
information of any kind or nature, or furnishing reports thereof to other persons….”

Technical Assistance Advisement
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Note that while both CST and SUT contain definitions and provisions related to information
services, the definitions for information services differ for SUT and CST purposes.
The Taxpayer has requested advice whether and how CST or SUT would apply to its sales of the
identified services.
For the Outbound Emergency Notifications, there are two methods by which the customer may
create its message for distribution. The first is for the customer to create its message through an
online portal and have the message distributed through email, text message, social media and/or
outgoing calls to specified recipients. The second method is for the customer to use an access
phone number to create a recorded message for distribution to specified recipients. The phone
line is shared by all customers utilizing this option of the service.
The Taxpayer charges customers an annual amount, which includes use of the service (an annual
minute bank), passcodes for users, training, records management and storage, etc. The customer
may also purchase additional passcodes and distance training allotments for additional charges.
Additional charges may be incurred if the customer exceeds its annual minute bank.
For this service, the Taxpayer is not providing communications services, but instead consumes
communications services in the provision of information services for CST purposes. It would not
matter whether the charge to the customer is bundled or itemized; the charge is not subject to
CST. The sale is not a sale of information services for sales tax purposes, and the sale is not
subject to SUT.
Because the Taxpayer, who is located in Florida, is consuming communications services it
purchases, its purchase is the retail sale, and the Taxpayer may potentially owe CST to its
provider on its purchases of communications services consumed in Florida. However, its servers
where the services originate and/or terminate for the Outbound Emergency Notification service
are located in XXXX, XXXX, and XXXX. Therefore, CST is not due on communications
services purchased to provide the Outbound Emergency Notification service.
For the Delivery of Voice Messages services, the Taxpayer generates outbound automated
telephone calls delivering voice messages to customer recipients based on a database of phone
numbers provided by the customers. The Taxpayer uses a U.S. domestic telephone company to
provide this service, paying all applicable taxes and fees.
The Taxpayer is not providing communications services but, again, consumes communications
services in the provision of an information service for CST purposes. It does not matter whether
the charge to the customer is bundled or itemized; the charge is not subject to CST. The sale is
not a sale of information services for sales tax purposes, and the sale is not subject to sales tax.
Because the Taxpayer, who is located in Florida, is consuming communications services it
purchases, its purchase is the retail sale, and the Taxpayer may potentially owe CST to its
provider on its purchases of communications services consumed in Florida. However, its servers

Technical Assistance Advisement
Page 12
where the services originate and/or terminate for the Delivery of Voice Messages service are
located in XXXX, XXXX, and XXXX. Therefore, CST is not due on communications services
purchased to provide the Delivery of Voice Messages service.
For the Inbound Interactive Voice Response services, the Taxpayer obtains from a domestic
telephone company, and provides to its customer, a unique phone number and assigned PIN
allowing the customer access to the Taxpayer’s IVR system. The customer records messages and
then promotes the toll free number to callers. Callers use the toll free number to call in and listen
to the prerecorded message. The service may capture the caller’s spoken and key press
responses. The system also provides an electronic report with the caller’s caller ID, call time, and
responses. The Taxpayer charges the customer a monthly fee plus an additional per minute fee
for incoming calls.
The Taxpayer states that it is not charging for the toll free line. However, the “toll free” line is
only toll free for the end caller, not for the Taxpayer’s customer. The charge to the Taxpayer’s
customer is the retail sale of a communications service. Provision of a communications service
for consideration is a “sale” of communications service. Since the charge is not for resale
purposes, it is the “retail sale” of the communications service. When the communications service
(1) originates and terminates in Florida, or (2) originates or terminates in Florida and is
charged to a Florida service address, the charges for the services are subject to CST.
In the instant case, for service address purposes, the origination of the call is unknown. The
termination of the call is to the Taxpayer’s server equipment located in XXXX, XXXX, and
XXXX. Therefore, charges for the toll-free line would not be subject to CST, because they do
not originate or terminate in Florida and are not charged to a Florida service address.
The Inbound IVR service also includes the compilation of information into a report for the
customer. The report is delivered or retrieved electronically. Therefore, it is not an information
service for sales tax purposes, but is an information service for CST purposes. Information
services are excluded from the definition of communications services. (See s. 202.11(1)(a), F.S.,
above.) Delivered electronically, the report is not subject to SUT or CST.
For the Outbound Interactive Voice Response services, the Taxpayer explains that the customer
provides the Taxpayer with a database of phone numbers to be contacted. The IVR system makes
automated outbound telephone calls. Calls that reach a live person can survey the call recipient,
capture responses, and transfer certain callers to live operators if necessary. This information
differs slightly from the XXXX contract addendum provided. According to the addendum, the
service is used only for information distribution purposes and, once the messages are submitted
to XXXX, the Taxpayer has no further responsibilities. Charges are made to the customer on an
annual basis.
The only potential liability for CST for the Outbound Interactive Voice Response service is the
ability of the system to transfer calls from the IVR system to a live operator. In this case, the call

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originates at the Taxpayer’s equipment outside the state of Florida. As the communications
service does not originate or terminate in Florida and is not charged to a Florida service address,
the charge is not subject to CST.
CONCLUSIONS

1. For the Outbound Emergency Notification services – These are sales of information services
   for CST purposes and would not be subject to CST. The Taxpayer consumes
   communications services in its provision of an information service. In general, the Taxpayer
   will not owe CST on its purchases of communications services, because the servers where
   the communications services are used are located outside Florida.
2. For the Delivery of Voice Messages services, the Taxpayer is not providing communications
   services, but instead consumes communications services in the provision of information
   services for CST purposes. Neither the Taxpayer’s charge to the customer nor its purchase of
   communications services used to provide the information service are subject to CST.
3. The Inbound Interactive Voice Response service includes a charge for a toll-free line that the
   customer and the customer’s callers use to retrieve the customer’s messages. The charge for
   the toll-free line is the sale of a communications service. However, charges for the toll-free
   line would not be subject to CST, because they do not originate or terminate in Florida and
   are not charged to a Florida service address.
4. The Outbound Interactive Voice Response makes only outbound calls from the servers
   located in XXXX, XXXX, and XXXX and, under certain conditions, may transfer calls to a
   live operator. Call transfer is routing and is a communications service. However, because the
   communications services do not originate or terminate in Florida and are not charged to a
   Florida service address, such charges are not subject to CST.
   This response constitutes a Technical Assistance Advisement under s. 213.22, F.S., which is
   binding on the Department only under the facts and circumstances described in the request for
   this advice as specified in s. 213.22, F.S. Our response is predicated on those facts and the
   specific situation summarized above. You are advised that subsequent statutory or administrative
   rule changes, or judicial interpretations of the statutes or rules, upon which this advice is based,
   may subject similar future transactions to a different treatment than expressed in this response.
   You are further advised that this response, your request and related backup documents are public
   records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions
   of s. 213.22, F.S. Confidential information must be deleted before public disclosure. In an effort
   to protect confidentiality, we request you provide the undersigned with an edited copy of your
   request for Technical Assistance Advisement, the backup material and this response, deleting
   names, addresses and any other details which might lead to identification of the taxpayer. Your
   response should be received by the Department within 15 days of the date of this letter.

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Should you have any questions, please feel free to contact me.
Sincerely,

Carla M. Bruce
Tax Law Specialist
Technical Assistance and Dispute Resolution
(850) 717-6315
Record ID: 159758