Florida: Video Streaming Services Subject to Communications Services Tax

Listen to a brief overview of state tax developments this week, including Florida, or read full Florida development below.

Detailed Florida Development

The Florida Department of Revenue recently issued a Technical Assistance Advisement in response to a taxpayer’s inquiry as to the taxability of its online platform offering. The taxpayer provided an Internet-based platform where viewers could, free of charge, watch real-time streaming videos, as well as videos that have been saved on the platform and were viewable on demand. An enhanced experience was also available for those customers that purchased a subscription, such as being able to view videos without ads. The Department determined that none of the elements of the taxpayer’s offerings constituted the sale of tangible personal property or a service subject to sales tax. However, Florida imposes a Communication Services Tax (CST) on the “transmission, conveyance, or routing of…video services.” The Department concluded that the taxpayer’s sales of subscriptions would be subject to CST, with the sale sourced to where the customer received the video service. Please contact Adam Raschke at 813-301-2239 with questions on Technical Assistance Advisement 19A19-001.

This Week's Developments

To view past weeks of TWIST that you may have missed, please visit our TWIST homepage.

To receive the TWIST e-mail each Monday, make sure that State and Local Tax is checked off as one of your topics of interest on the KPMG Tax subscription site.

Featured Speaker

Sarah McGahan

Sarah McGahan

Managing Director, State & Local Tax, KPMG US