How did Florida tax monthly EV-charger program fees and separately billed electricity for residential and commercial customers?

Plain-English summary

A utility offered residential and commercial EV-charging programs with charging equipment hardwired into 240-volt circuits by electricians, plus separately measured electricity charges.

The Department gave four answers:

1. Residential monthly program charge: no sales tax or gross receipts tax. The hardwired equipment was an improvement to real property.
2. Residential monthly off-peak electricity charge: exempt from sales and use tax, but subject to gross receipts tax.
3. Commercial monthly service payment: no sales tax or gross receipts tax because it paid for the real-property improvement.
4. Commercial electricity sold separately: subject to both sales and use tax and gross receipts tax.

The real-property analysis relied on Fla. Stat. Sec. 212.06(14) and Rule 12A-1.051. The residential-electricity treatment relied on Sec. 212.08(7)(j) and Rule 12A-1.053, while Secs. 203.01 and 203.012(3) imposed gross receipts tax on utility services delivered to Florida retail consumers.

What this means for you

EV-charging program operators

Separate the equipment/program fee from the electricity charge. Hardwired installation supported real-property-improvement treatment, while the power itself followed residential or commercial utility-tax rules.

Commercial customers

The monthly equipment-service payment and the separately billed electricity did not receive the same treatment: the former was untaxed on these facts, while the latter bore both taxes.

Common questions

Were the monthly equipment fees taxable? No, because the hardwired installations were treated as real-property improvements.

Was residential off-peak electricity sales-tax exempt? Yes, but it remained subject to gross receipts tax.

How was commercial electricity taxed? It was subject to sales and use tax and gross receipts tax.

Citations and references

• Fla. Stat. Secs. 212.02, 212.05, 212.06(14), and 212.08(7)(j)
• Fla. Admin. Code R. 12A-1.051 and 12A-1.053
• Fla. Stat. Secs. 203.01 and 203.012(3)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 22A-019

Original ruling text

Question #1: Whether the Monthly Program Charge paid by a Customer participating in
Taxpayer’s Residential Program is the payment for an improvement to real property and
therefore not subject to either Sales and Use Tax or Gross Receipts Tax?
Answer #1: Based on the facts provided, Taxpayer is making improvements to real property;
therefore, Taxpayer would not charge its Residential customers sales tax or gross receipts tax on
the Monthly Program Charges.
Question #2: Whether the Monthly Off-Peak Energy Charge paid by a Customer participating in
Taxpayer’s Residential Program is exempt from Sales and Use Tax and is subject to Gross Receipts
Tax?
Answer #2: Correct. The Monthly Off-Peak Energy Charges paid by residential customers are
exempt from Sales and Use Tax and are subject to Gross Receipts Tax.
Question #3: Whether Monthly Service Payments paid by Customers participating in Taxpayer’s
Commercial Program are payments for the improvements to real property and therefore are not
subject to either Sales and Use Tax or Gross Receipts Tax?
Answer #3: Based on the facts provided, Taxpayer is making improvements to real property;
therefore, Taxpayer would not charge its Commercial customers sales tax or gross receipts tax
on the Monthly Service Payments.
Question #4: Whether Taxpayer’s separate sales of electricity to Customers participating in the
Commercial Program are subject to Sales and Use Tax and subject to Gross Receipts Tax?
Answer #4: Correct. Taxpayer’s sales of electricity to its Commercial customers are subject to
Sales and Use Tax and are also subject to Gross Receipts Tax.
September 15, 2022

XXX
XXX
XXX
Via email: XXX
RE: Technical Assistance Advisement 22A-019

Technical Assistance Advisement
September 15, 2022
Page 2

XXX (herein “Taxpayer”)
XXX
XXX
Sales and Use Tax
Taxability of the Installation and Monthly Charges for Electric Vehicle Charging Stations
Sections: 212.02, 212.05, 212.06, 212.08, 203.01, and 366.02, Florida Statutes (F.S.)
Rules: 12A-1.051 and 12A-1.053, Florida Administrative Code (F.A.C.)
Dear Mr. XXX:
This letter is in response to your request dated September 27, 2021, and the supplemental
request dated March 23, 2022, for issuance of a Technical Assistance Advisement (“TAA”)
pursuant to Section 213.22, F.S., and Rule Chapter 12-11, F.A.C., concerning the taxability of the
installation and monthly charges for electric vehicle charging stations. An examination of your
request has established you complied with the statutory and regulatory requirements for
issuance of a TAA. Therefore, the Department is hereby granting your request for a TAA.
STATEMENT OF FACTS
Taxpayer is an XXX utility in Florida. Taxpayer anticipates offering an optional Residential Electric
Vehicle Charging Services Rider Pilot Program (“Residential Program”) to its customers who own
electric vehicles (“EV”) and desire for charging stations to be installed at their residences.
Residential Program will be limited to customers that own and reside in a single-family home or
townhome with an attached garage. The residential customer must also be served under
Taxpayer’s RS-1 rate schedule. Furthermore, Taxpayer anticipates offering a Commercial Electric
Vehicle Charging Services Rider Pilot Program (“Commercial Program”). Commercial Program is
designed to meet the needs of commercial customers who operate a fleet of EVs, which will vary
from customer to customer.
Residential Program
Taxpayer provided the following documents pertaining to Residential Program as Attachments A
and B, respectively: Residential Electric Vehicle Charging Services Rider Pilot (“Residential Rider”)
and Optional Residential Electric Vehicle Charging Agreement (“Residential Agreement”).
Residential Rider expires five years from the effective date of Residential Program, unless
extended by approval of the Florida Public Service Commission (“FPSC”). Residential Agreement
becomes effective at such time as the Residential Rider expires and will continue for ten (10)
years.
Residential Rider and Residential Agreement both stipulate that charging equipment
(“Equipment”) will be maintained and owned by Taxpayer and that Taxpayer will design, procure,
install, own, operate, and provide maintenance to EV Equipment.

Technical Assistance Advisement
September 15, 2022
Page 3

The Equipment being installed by Taxpayer is a level 2 electronic vehicle charger (240 volts)
hardwired by a licensed electrician. Taxpayer offered an example of the type of charger that will
be used. The example is a relatively small device that is affixed to a wall via a “quick-release wall
mounting bracket.” It measures 6.8 inches across/wide, 5.8 inches in depth and is 18.5 inches in
height. An attached hook holds the 25 foot long “output” cable and connector. The electrical
wire connecting the Equipment to the hardwire conduit is 2.3 feet in length. It all weighs 15
pounds. It has WiFi connectivity capabilities.
Taxpayer reserves the right to remotely control charging session schedules and/or curtail the
energy delivered by Equipment. Taxpayer will be allowed to establish connectivity with
Equipment using Customer’s internet service provider. Taxpayer and its customers agree that
Equipment is owned by Taxpayer and there is no license, rental, or lease of Equipment (See
Residential Agreement, Paragraph 3.).
Customers will have the option to select “Full Installation” or “Equipment Only Installation”
Services. Equipment Only Installations involve a Residential Customer who already has a
dedicated and permitted 240-volt circuit in the garage location where the Equipment will be
located. Taxpayer will hardwire the Equipment to the existing 240-volt circuit. Under no
circumstance will Taxpayer ever install a charger into a 240 volt (NEMA 14-50) type outlet. Full
Installations will include designing, permitting, and installing a new 240-volt circuit on Customer’s
premises (See Residential Agreement, Paragraph 3.).
Customers will be billed a Monthly Service Payment based on whether they have a Full
Installation or an Equipment Only Installation.1 The Monthly Service Payment will be comprised
of a “Monthly Program Charge” and a “Monthly Off-Peak Energy Charge.” The Monthly Program
Charge is for the use of the EV Equipment and is higher for Customers who choose Full
Installation. The Monthly Off-Peak Energy Charge is a separate flat monthly fee for the use of
Off-Peak Energy, regardless of the installation option chosen. The flat monthly fee will be the
same regardless of the amount of energy used by the Equipment during Off-Peak Periods. In the
event Customer charges an EV during On-Peak Periods, Customer will be charged 22.87 cents per
kWh. Customer shall commence payment of the Monthly Service Payment, plus any applicable
taxes, on the Residential Operation Date in accordance with the General Rules and Regulations
for Electric Service. Any partial month will be paid on a pro rata basis (See Residential Rider,
Monthly Service Payment and Residential Agreement, Paragraph 5.).
Taxpayer will sub-meter Equipment to allow Taxpayer to perform the EV charging and all other
usage billing calculations in accordance with the applicable monthly rates. A separate meter is
1

Full Installation
Monthly Program Charge
Monthly Off-Peak Energy Charge
Total Monthly Service Payment

$25.57
$12.73
$38.30

Equipment Only Installation
$18.41
$12.73
$31.14

Technical Assistance Advisement
September 15, 2022
Page 4

necessary as Taxpayer must track both the timing and kilowatts of electricity usage (See
Residential Rider, Metering).
Company will provide maintenance to Equipment. Customer is not allowed to move, modify,
remove, adjust, alter, or change Equipment in any material way, except in the event of an
emergency. All replacements of, and alterations or additions to, Equipment become part of
Equipment. Customer must grant Taxpayer access rights to Customer’s property sufficient to
allow Taxpayer to perform any services to Equipment (See Residential Agreement, Paragraph 4.).
Customer agrees to maintain a homeowner’s property insurance policy with minimum limits
equal to the value of Customer’s property and a homeowner’s liability insurance policy with
minimum limits of Three Hundred Thousand ($300,000) Dollars (See Residential Agreement,
Paragraph 12.).
Customer is not allowed to assign Residential Agreement without consent of Taxpayer. A sale of
Customer’s property will be treated as an early termination by Taxpayer, unless Taxpayer agrees
in writing to an assignment of Residential Agreement to the purchaser of the property (See
Residential Agreement, Paragraph 13.).
Customer acknowledges and agrees that (i) Equipment is personal property, will be removable,
and will not be a fixture or otherwise part of the residential property; (ii) Taxpayer will own
Equipment; and (iii) Customer has no ownership interest in Equipment. Title to Equipment only
transfers to Customer at the end of the original term or upon any earlier termination if Taxpayer
elects to not remove the equipment. Customer is required to provide timely notice of Taxpayer’s
title and ownership of Equipment to all persons that may come to have an interest in or lien upon
Customer’s property (See Residential Agreement, Paragraph 6.).
If Customer terminates the Residential Agreement prior to the fifth anniversary, Customer must
pay a termination fee in an amount equal to the cost to uninstall, remove, and redeploy
Equipment plus any outstanding Monthly Service Payments. If Customer terminates the
Residential Agreement on or after the fifth anniversary, Customer must pay either a termination
fee or the remaining net book value of Equipment to purchase Equipment plus any outstanding
Monthly Service Payments. Taxpayer may terminate Residential Agreement for its convenience
or as a result of any federal, state, or local authority directing Taxpayer to do so. Upon such
termination, Taxpayer may elect to remove Equipment or leave Equipment and transfer title to
Customer at no charge (See Residential Agreement, Paragraph 7.).
Commercial Program
Taxpayer provided the following documents pertaining to Commercial Program as Attachments
A and B, respectively: Commercial Electric Vehicle Charging Services Rider Pilot (“Commercial
Rider”) and Commercial Electric Vehicle Charging Services Agreement (“Commercial
Agreement”). Commercial Rider expires four years from the effective date of Commercial

Technical Assistance Advisement
September 15, 2022
Page 5

Program, unless extended by approval of the FPSC. Commercial Agreement becomes effective
at such time as the Commercial Rider expires and will continue for ten (10) years.
Commercial Rider and Commercial Agreement both stipulate that charging equipment
(“Equipment”) will be maintained and owned by Taxpayer and that Taxpayer will design, procure,
install, own, operate, and provide maintenance to EV Equipment.
Taxpayer reserves the right to remotely control charging session schedules and/or curtail the
energy delivered by Equipment. Taxpayer and its customers agree that Equipment is owned by
Taxpayer and there is no license, rental, or lease of Equipment (See Commercial Agreement,
Paragraph 3.).
Customer pays a Monthly Service Payment, which is based solely on the cost of the installed EV
Equipment and replacement costs of such Equipment. The Monthly Service Payment will be
comprised of a “Monthly Equipment Cost” and “Monthly Expenses.” The Monthly Equipment
Cost includes the as-installed cost of Equipment. The Monthly Equipment Cost will be levelized
over the term of service based upon the installed cost of Equipment times a carrying cost. The
carrying cost is the cost of capital, reflecting Taxpayer’s current capital structure and most recent
FPSC-approved return on common equity. Monthly Equipment Cost also includes any
replacement cost(s) expected to be incurred during the term of service. Monthly Expenses will
be billed on a levelized basis over the term of service (See Commercial Rider, Monthly Service
Payment).
Customer will separately pay for its electricity used based on Customer’s separate commercial
rate tariff.
A separate meter is not required for Equipment under Commercial Program, as the electricity
charges will be based on the customer’s underlying commercial rate tariff.
Taxpayer will provide maintenance to Equipment. Customer is not allowed to move, modify,
remove, adjust, alter, or change Equipment in any material way, except in the event of an
emergency. All replacements of, and alterations or additions to, Equipment become part of
Equipment. (See Residential Agreement, Paragraph 4.).
Customer must maintain insurance, at its sole cost and expense. Customer must name Taxpayer
as an additional insured and provide a waiver of subrogation in favor of Taxpayer (See
Commercial Agreement, Paragraph 17.).
Customer must grant Taxpayer access to its property to allow Taxpayer to install Equipment,
inspect and maintain Equipment, and remove Equipment (See Commercial Agreement,
Paragraph 7.).

Technical Assistance Advisement
September 15, 2022
Page 6

Commercial Agreement cannot be subcontracted, assigned, transferred, delegated, or otherwise
disposed of by Customer without Taxpayer’s prior written approval. In the event of the sale of
the real property upon which Equipment is installed, such sale shall be considered an early
termination of Commercial Agreement by Customer, unless Taxpayer agrees in writing to an
assignment of Commercial Agreement to the purchaser of the real property (See Commercial
Agreement, Paragraph 19.).
Customer agrees that Equipment is and will remain the sole property of Taxpayer, unless and
until the end of the original term (or upon any earlier termination if Taxpayer elects to not
remove Equipment). Taxpayer reserves the right to modify or upgrade Equipment for the
continued supply of Service but will not degrade the capability. Taxpayer and Customer agree
that Equipment is personal property, will not be a fixture or otherwise part of the Customer’s
property, and Taxpayer will own Equipment (See Commercial Agreement, Paragraph 11.).
If Customer terminates the Commercial Agreement early, Customer is subject to pay Taxpayer a
Termination Fee. Taxpayer has the right to access and remove any and all Equipment. Title to
Equipment that Taxpayer elects not to remove will transfer to Customer upon written notice by
Taxpayer to Customer. Taxpayer has the right to terminate Commercial Agreement for its
convenience or due to actions of any federal, state, or local authority. Upon termination for
convenience by Taxpayer, Customer must choose to either (i) purchase Equipment or (ii) request
that Taxpayer remove Equipment. Title to Equipment that Taxpayer elects not to remove shall
transfer to Customer. Upon termination for cause, the same transfer of title choice applies. At
the Expiration of Commercial Agreement, title to Equipment will transfer to Customer at no
additional charge. Thereafter, Customer will be responsible for payment of all electric usage and
will be responsible for all maintenance and other costs related to ownership of Equipment (See
Commercial Agreement, Paragraph 12.).
Charging stations are now a familiar sight at gas stations, hotels and other locations. Information
supplied by Taxpayer reflects that the Equipment that will be used in the Commercial Program is
similar. Typical Equipment sits atop a concrete foundation that is 30 inches deep/thick. The
charging equipment (or “dispenser”) is bolted and anchored to the concrete foundation. The
controls and charging cord on the dispenser are at a height of 41.5 inches in compliance with the
ADA. Electrical power will be delivered to the Equipment from Taxpayer’s transformer via
underground wiring. Galvanized pipes delivering the electrical power - to the dispenser from the
transformer - are cemented into the ground.
REQUESTED ADVISEMENTS
Taxpayer is asking the following questions:

1. Whether the Monthly Program Charge paid by a Customer participating in Taxpayer’s
   Residential Program is the payment for an improvement to real property and therefore
   not subject to either Sales and Use Tax or Gross Receipts Tax.

Technical Assistance Advisement
September 15, 2022
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2. Whether the Monthly Off-Peak Energy Charge paid by a Customer participating in
   Taxpayer’s Residential Program is exempt from Sales and Use Tax and is subject to Gross
   Receipts Tax.
3. Whether the Monthly Service Payment paid by a Customer participating in Taxpayer’s
   Commercial Program is the payment for an improvement to real property and therefore
   is not subject to either Sales and Use Tax or Gross Receipts Tax.
4. Whether Taxpayer’s separate sales of electricity to Customers participating in Taxpayer’s
   Commercial Program are subject to Sales and Use Tax and subject to Gross Receipts Tax.
   APPLICABLE LAW AND DISCUSSION
   The primary issue identified by Taxpayer’s request is whether Taxpayer is improving real
   property or selling tangible personal property to Taxpayer's customers.
   Section 212.05(l)(a)l .a., F.S., applies to sales of tangible personal property. It provides, in part,
   the following:
   It is hereby declared to be the legislative intent that every person is exercising a taxable
   privilege who engages in the business of selling tangible personal property at retail in
   this state ....
   (1) For the exercise of such privilege, a tax is levied on each taxable transaction or
   incident, which tax is due and payable as follows:
   (a)l.a. At the rate of 6 percent of the sales price of each item or article of tangible
   personal property when sold at retail in this state, computed on each taxable sale for
   the purpose of remitting the amount of tax due the state, and including each and every
   retail sale.
   Section 212.05, F.S., provides that the sale of tangible personal property is subject to sales tax
   on the sales price of the tangible personal property sold. The sales price can include the charge
   for installation and other services that are part of the sale of the tangible personal property. See
   s. 212.02(16), F.S., and Rule 12A-1.016, F.A.C.
   As to the issue whether Taxpayer’s sales are for real property improvements, Section 212.06(14),
   F.S., and Rule 12A-1.051, F.A.C., apply.
   Section 212.06(14), F.S., provides, in part, the following:
   (14) For the purpose of determining whether a person is improving real property, the term:

Technical Assistance Advisement
September 15, 2022
Page 8

(a) "Real property" means the land and improvements thereto and fixtures and
is synonymous with the terms "realty" and "real estate."
(b) "Fixtures" means items that are an accessory to a building, other structure, or land and
that do not lose their identity as accessories when installed but that do become
permanently attached to realty....
(c) "Improvements to real property" includes the activities of building, erecting,
constructing, altering, improving, repairing, or maintaining real property.
Rule 12A-1.051, F.A.C, provides, in part, the following:
(1) Scope of the rule. This rule governs the taxability of the purchase, sale, or use of
tangible personal property by contractors and subcontractors who purchase, acquire,
or manufacture materials and supplies for use in the performance of real property
contracts. . . .
(2) Definitions. For purposes of this rule, the following terms have the following meanings:

(c)1. "Fixture" means an item that is an accessory to a building, other structure, or to land,
that retains its separate identity upon installation, but that is permanently attached to the
realty.

(h)l. "Real property contract" means an agreement, oral or written, whether on a
lump sum, time and materials, cost plus, guaranteed price, or any other basis, to:
a. Erect, construct, alter, repair, or maintain any building, ... or other real property
improvement;

c. Furnish and install tangible personal property that becomes a part of or is directly wired
... into the … electrical system … or other structural system that requires installation of wires
… or similar components that are embedded in or securely affixed to land or a structure
thereon.

Rule 12A-1.051(2)(c)3., F.A.C, provides that the determination whether an item is a fixture
depends upon a review of all the facts and circumstances. Items that are joined directly to a
structure’s wiring systems are likely to be classified as fixtures. Attachment in such a manner
that removal is impossible without causing substantial damage to the underlying realty,
indicates that an item is a fixture. If the property holder who causes an item to be attached
to realty intends that the item will remain in place for an extended or indefinite period of

Technical Assistance Advisement
September 15, 2022
Page 9

time, that item is more likely to be a fixture. If an interest in an item arises upon acquiring title
to the land or building, the item is more likely to be considered a fixture. If installation of an
item requires licensing of the contractor (e.g., licensed electrician) under statutes or
guidelines governing the building trades, that item is more likely to be regarded as a fixture.
Rule 12A-1.051(3), F.A.C, provides the classification of contracts by pricing. The taxability of
purchases and sales by real property contractors is determined by the pricing arrangement in
the contract. Contracts generally fall into different categories. As to lump sum contracts, the
contractor agrees to furnish materials and supplies, and necessary services, for a single stated
lump sum price.
Rule 12A-1.051(4), F.A.C, provides that real property improvement contractors are the ultimate
consumers of materials and supplies they use to perform real property contracts and must pay
tax on their costs of those materials and supplies.
Taxpayer has asserted in writing that all of the EV charging equipment for both Residential and
Commercial customers is hardwired into real property by a licensed electrician. Furthermore,
the documentation provided by Taxpayer indicates that the EV charging equipment is intended
to remain in place for an extended or indefinite period of time. Based on this information,
Taxpayer’s sales are for real property improvements. Taxpayer would be liable for the tax on its
purchases of tangible personal property associated with the real property improvements. The
discretionary sales surtax is due based on where the tangible personal property is delivered. See
Rule 12A-15.008(l)(a), F.A.C.
Sales Tax on Sales of Electricity:
Section 212.05, F.S., provides that the sale of tangible personal property is subject to tax. All
sales of tangible personal property in the State of Florida are subject to tax, unless specifically
exempt by Chapter 212, F.S. Section 212.02(19), F.S., defines tangible personal property as
"personal property which may be seen, weighed, measured, or touched, or is in any manner
perceptible to the senses, including electric power or energy." Section 212.05(1)(e)1.c., F.S.,
provides that the tax rate for sales of electrical power or energy is 4.35 percent.
Section 212.08(7)(j), F.S., provides a specific exemption for sales of utilities to residential
households or residential models in Florida by utility companies who pay the Gross Receipts Tax
required under s. 203.01, F.S.
Rule 12A-1.053(1)(a), F.A.C., indicates that “[t]he sale of electric power or energy by an electric
utility is taxable. The sale of electric power or energy for use in residential households, to owners
of residential models, or to licensed family day care homes by utilities who are required to pay
the gross receipts tax imposed by subparagraph 203.01(1)(a)1., F.S., is exempt. Also exempt is
electric power or energy sold by such utilities and used in the common areas of apartment
houses, cooperatives, and condominiums, in residential facilities . . . .”

Technical Assistance Advisement
September 15, 2022
Page 10

Rule 12A-1.053(1)(b)1., F.A.C., provides that “[a]n electric utility is not obligated to collect and
remit tax on any sale of electric power or energy when the electric power or energy is sold at a
rate based on the utility’s ‘residential schedule,’ under tariffs filed by the utility with the Public
Service Commission . . . .”
Section 366.02(2), F.S., defines “electric utility” as “. . . any municipal electric utility, investorowned electric utility, or rural electric cooperative which owns, maintains, or operates an electric
generation, transmission, or distribution system within the state.”
Gross Receipts Tax:
Section 203.01, F.S., imposes a tax on gross receipts from utility services that are delivered to a
retail consumer in this state. Section 203.012(3), F.S., defines “utility services” as “. . . electricity
for light, heat, or power . . . including transportation, delivery, transmission, and distribution of
the electricity . . ..” The tax rate applicable to electrical power or energy is 2.6 percent.

CONCLUSIONS
Based upon a review of the terms and conditions of both the Residential Program and the
Commercial Program and the assertions made by Taxpayer, the following answers are given to
the questions asked:

1. Whether the Monthly Program Charge paid by a Customer participating in Taxpayer’s
   Residential Program is the payment for an improvement to real property and therefore
   not subject to either Sales and Use Tax or Gross Receipts Tax.
   Because under both the “Equipment Only Installation” and the “Full Installation” the
   equipment is hardwired into 240 volt circuits by electricians, Taxpayer is making
   improvements to real property; therefore, Taxpayer would not charge its Residential
   customers sales tax or gross receipts tax on the Monthly Program Charges.
2. Whether the Monthly Off-Peak Energy Charge paid by a Customer participating in
   Taxpayer’s Residential Program is exempt from Sales and Use Tax and is subject to Gross
   Receipts Tax.
   Correct. The Monthly Off-Peak Energy Charges paid by residential customers are exempt
   from Sales and Use Tax and are subject to Gross Receipts Tax.

Technical Assistance Advisement
September 15, 2022
Page 11

3. Whether Monthly Service Payments paid by Customers participating in Taxpayer’s
   Commercial Program are payments for the improvements to real property and therefore
   are not subject to either Sales and Use Tax or Gross Receipts Tax.
   Based on the facts provided, Taxpayer is making improvements to real property;
   therefore, Taxpayer would not charge its Commercial customers sales tax or gross
   receipts tax on the Monthly Service Payments.
4. Whether Taxpayer’s separate sales of electricity to Customers participating in the
   Commercial Program are subject to Sales and Use Tax and subject to Gross Receipts Tax.
   Correct. Taxpayer’s sales of electricity to its Commercial customers are subject to Sales
   and Use Tax and are also subject to Gross Receipts Tax.
   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 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 Section 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.
   If you have any further questions with regard to this matter and wish to discuss them, you may
   contact me directly at 850-717-6363.

Sincerely,

Leigh L. Ceci
Leigh L. Ceci
Tax Law Specialist
Technical Assistance and Dispute Resolution
Record ID: 7000601382