Instructions for Form DR-7 "Consolidated Sales and Use Tax Return" - Florida

This document contains official instructions for Form DR-7, Consolidated Sales and Use Tax Return - a form released and collected by the Florida Department of Revenue.

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Download Instructions for Form DR-7 "Consolidated Sales and Use Tax Return" - Florida

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DR-7N
R. 01/20
Instructions for Consolidated Sales and Use Tax Return
Rule 12A-1.097, F.A.C.
Effective 01/20
Page 1 of 7
Account Changes
through Friday, excluding holidays, for assistance amending
your returns.
If you change your business name, mailing address, location
address within the same county, or close or sell your business,
Keep records that support all transactions for at least three
immediately notify the Department. You can also notify the
years from the date you file your return or the date it is required
Department when you temporarily suspend or resume your
to be filed, whichever is later.
business operations. The quickest way to notify the Department
Florida Annual Resale Certificate
is by visiting floridarevenue.com/taxes/updateaccount.
Registered sales and use tax dealers are provided a Florida
To notify us in writing, mail a letter to:
Annual Resale Certificate to make tax-exempt purchases or
Account Management - MS 1-5730
rentals of property or services for resale. You may provide a
Florida Department of Revenue
paper or electronic copy of your current Florida Annual Resale
5050 W Tennessee St
Certificate or the certificate number to any seller when making
Tallahassee, FL 32399-0160
purchases or rentals of property or services that you intend
to resell or re-rent as part of your business. You may provide
Be sure to include your business partner number, your
your Florida Annual Resale Certificate or certificate number
consolidated sales tax filing number, and the certificate number
for either the consolidated number (80-code number) or for an
for each location in any written correspondence sent to the
active location reported under the consolidated number. If you
Department.
purchase or rent property or services that will be used in your
Submit a new registration (online or paper) if you:
business, your Florida Annual Resale Certificate should not be
• move a business location from one Florida county to another;
used.
• add another location;
As a dealer, you have an obligation to collect the applicable
• purchase or acquire an existing business; or
amount of sales and use tax and discretionary sales surtax
• change the form of ownership of your business.
when you resell or re-rent the property or service at retail. If you
Due Dates, Electronic Filing and Payment, and
need help determining what you may buy or rent tax exempt
Other Filing Information
for resale, the Florida Annual Resale Certificate for Sales Tax
Electronic Filing and Payment: Consolidated sales and
brochure (Form GT-800060) is available on the Department’s
use tax returns and tax payments must be filed and paid
website.
electronically. You can file and pay sales and use tax by using
Sellers who make tax-exempt sales or rentals for purposes of
the Department’s website or you may purchase software from a
resale or re-rental must document the exemption using any one
software vendor.
of these methods:
Due Dates: Tax returns and payments are due on the 1
and
st
Obtain a paper or electronic copy of your customer’s current
late after the 20
day of the month following each reporting
th
Florida Annual Resale Certificate.
period. If the 20
falls on a Saturday, Sunday, or a state or
th
For each tax-exempt sale, use your customer’s Florida sales
federal holiday, your tax return must be received electronically
tax certificate number to obtain a transaction authorization
on the first business day following the 20
.
th
number.
For each tax-exempt customer, use your customer’s Florida
Due Dates for Electronic Payments: To avoid penalty and
sales tax certificate number to obtain a vendor authorization
interest, you must initiate your electronic payment and
number.
receive a confirmation number no later than 5:00 p.m. ET
on the business day prior to the 20th. Keep the confirmation
Sellers may verify a Florida Annual Resale Certificate number
number in your records. For a list of deadlines for initiating
and obtain an authorization number:
electronic payments on time, visit floridarevenue.com/forms,
Online: Visit floridarevenue.com/taxes/certificates
select the eServices section, and then select the current year
Phone: 877-357-3725
Florida eServices Calendar of Electronic Payment Deadlines
Mobile app: Available for iPhone, iPad, Android devices, and
(Form DR-659).
Windows phones.
Vendor software: You may purchase software from a software
Proper Collection of Tax
vendor to file and pay sales and use tax electronically. While
Collecting the right amount of tax is important because
you may use purchased software to file your sales and use
mistakes will cost you money. Florida’s general state sales tax
tax electronically, you may not use software to create paper
rate is 6%; however, there is an established “bracket system”
(alternative or substitute) returns to file with the Department.
for collecting sales tax on any part of each total taxable sale
If you use vendor software to prepare a “tax calculation
that is less than a whole dollar amount. Additionally, most
worksheet,” do not file the worksheet with the Department as
counties also have a local option discretionary sales surtax.
a tax return. To ensure proper credit to your account, be sure
Bracket rates are available at floridarevenue.com/forms.
to transfer information from the worksheet to your personalized
[State Sales and Use Tax Rate] + [Surtax Rate] = [Total Tax Rate]
return.
Calculate the total tax to be collected on the total amount of the
Amended Returns: If you discover that your original return
sale. The total tax collected must be shown on each invoice.
was incorrect, call Taxpayer Services at 850-488-6800 Monday
The sales tax and discretionary sales surtax may be shown as
DR-7N
R. 01/20
Instructions for Consolidated Sales and Use Tax Return
Rule 12A-1.097, F.A.C.
Effective 01/20
Page 1 of 7
Account Changes
through Friday, excluding holidays, for assistance amending
your returns.
If you change your business name, mailing address, location
address within the same county, or close or sell your business,
Keep records that support all transactions for at least three
immediately notify the Department. You can also notify the
years from the date you file your return or the date it is required
Department when you temporarily suspend or resume your
to be filed, whichever is later.
business operations. The quickest way to notify the Department
Florida Annual Resale Certificate
is by visiting floridarevenue.com/taxes/updateaccount.
Registered sales and use tax dealers are provided a Florida
To notify us in writing, mail a letter to:
Annual Resale Certificate to make tax-exempt purchases or
Account Management - MS 1-5730
rentals of property or services for resale. You may provide a
Florida Department of Revenue
paper or electronic copy of your current Florida Annual Resale
5050 W Tennessee St
Certificate or the certificate number to any seller when making
Tallahassee, FL 32399-0160
purchases or rentals of property or services that you intend
to resell or re-rent as part of your business. You may provide
Be sure to include your business partner number, your
your Florida Annual Resale Certificate or certificate number
consolidated sales tax filing number, and the certificate number
for either the consolidated number (80-code number) or for an
for each location in any written correspondence sent to the
active location reported under the consolidated number. If you
Department.
purchase or rent property or services that will be used in your
Submit a new registration (online or paper) if you:
business, your Florida Annual Resale Certificate should not be
• move a business location from one Florida county to another;
used.
• add another location;
As a dealer, you have an obligation to collect the applicable
• purchase or acquire an existing business; or
amount of sales and use tax and discretionary sales surtax
• change the form of ownership of your business.
when you resell or re-rent the property or service at retail. If you
Due Dates, Electronic Filing and Payment, and
need help determining what you may buy or rent tax exempt
Other Filing Information
for resale, the Florida Annual Resale Certificate for Sales Tax
Electronic Filing and Payment: Consolidated sales and
brochure (Form GT-800060) is available on the Department’s
use tax returns and tax payments must be filed and paid
website.
electronically. You can file and pay sales and use tax by using
Sellers who make tax-exempt sales or rentals for purposes of
the Department’s website or you may purchase software from a
resale or re-rental must document the exemption using any one
software vendor.
of these methods:
Due Dates: Tax returns and payments are due on the 1
and
st
Obtain a paper or electronic copy of your customer’s current
late after the 20
day of the month following each reporting
th
Florida Annual Resale Certificate.
period. If the 20
falls on a Saturday, Sunday, or a state or
th
For each tax-exempt sale, use your customer’s Florida sales
federal holiday, your tax return must be received electronically
tax certificate number to obtain a transaction authorization
on the first business day following the 20
.
th
number.
For each tax-exempt customer, use your customer’s Florida
Due Dates for Electronic Payments: To avoid penalty and
sales tax certificate number to obtain a vendor authorization
interest, you must initiate your electronic payment and
number.
receive a confirmation number no later than 5:00 p.m. ET
on the business day prior to the 20th. Keep the confirmation
Sellers may verify a Florida Annual Resale Certificate number
number in your records. For a list of deadlines for initiating
and obtain an authorization number:
electronic payments on time, visit floridarevenue.com/forms,
Online: Visit floridarevenue.com/taxes/certificates
select the eServices section, and then select the current year
Phone: 877-357-3725
Florida eServices Calendar of Electronic Payment Deadlines
Mobile app: Available for iPhone, iPad, Android devices, and
(Form DR-659).
Windows phones.
Vendor software: You may purchase software from a software
Proper Collection of Tax
vendor to file and pay sales and use tax electronically. While
Collecting the right amount of tax is important because
you may use purchased software to file your sales and use
mistakes will cost you money. Florida’s general state sales tax
tax electronically, you may not use software to create paper
rate is 6%; however, there is an established “bracket system”
(alternative or substitute) returns to file with the Department.
for collecting sales tax on any part of each total taxable sale
If you use vendor software to prepare a “tax calculation
that is less than a whole dollar amount. Additionally, most
worksheet,” do not file the worksheet with the Department as
counties also have a local option discretionary sales surtax.
a tax return. To ensure proper credit to your account, be sure
Bracket rates are available at floridarevenue.com/forms.
to transfer information from the worksheet to your personalized
[State Sales and Use Tax Rate] + [Surtax Rate] = [Total Tax Rate]
return.
Calculate the total tax to be collected on the total amount of the
Amended Returns: If you discover that your original return
sale. The total tax collected must be shown on each invoice.
was incorrect, call Taxpayer Services at 850-488-6800 Monday
The sales tax and discretionary sales surtax may be shown as
DR-7N
R. 01/20
Instructions for Consolidated Sales and Use Tax Return continued
Page 2 of 7
one total, or each tax can be shown separately. In many cases,
Column 1. Gross Sales - Enter the total amount of gross sales.
Do not include:
the actual tax you collect is more than a straight percentage
of the sales or use tax and surtax. You must use the bracket
tax collected;
system to calculate the tax due when any part of each total sale
fuel sales reported on a Florida fuel tax return; or
is less than a whole dollar amount.
lottery ticket sales.
Example: A customer purchases a taxable item that sells for
Column 2. Exempt Sales - Enter the total amount of tax-exempt
$60.67 (before tax) in a county with no discretionary sales
sales included in Line A, Column 1. Enter “0” if none. Some
surtax. To calculate the correct amount of Florida sales tax,
examples of tax-exempt sales are sales for resale, sales of
the seller first multiplies $60 by 6% (state sales tax rate) to
items specifically exempt, and sales to organizations that hold a
determine the sales tax on the whole dollar portion of the sale
Florida Consumer’s Certificate of Exemption.
($60 x 6% = $3.60). Using the bracket system, the seller then
Column 3. Taxable Amount - Subtract total exempt sales
determines that the correct amount of sales tax on the amount
from gross sales and enter the taxable amount. You must also
less than a dollar ($.67) is $.05. Therefore, the total sales tax
report the total amount of sales that are subject to sales tax
due on this transaction is $3.65 ($3.60 + $.05 cents).
but are exempt from discretionary sales surtax, on Line 15(a) or
Line 15(b). You must report on Line 15(c), the total amount of
Line-by-Line Instructions
sales for which you collected discretionary sales surtax at a rate
different than the rate of the county in which you are located.
The electronic consolidated sales and use tax return contains
one Consolidated Summary Sales and Use Tax Return (Form
In addition to reporting the Taxable Amount on the front of your
DR-15CON) and a Consolidated Sales and Use Tax Return
return, remember to complete the back of the return for the
(Form DR-7) for each business location reported under the
following:
consolidated sales tax filing number. First, complete the
Taxable sales and untaxed purchases or uses of electricity
return (Form DR-7) for each business location. When you
on Line 17.
have completed all the business location returns, the amounts
Taxable sales and untaxed purchases of dyed diesel fuel used
reported will be automatically totaled and transferred to the
in vessels or off-road equipment on Line 18.
appropriate lines and columns on the consolidated summary
Taxable sales from amusement machines on Line 19.
(Form DR-15CON).
Column 4. Tax Due - Enter the total amount of tax due,
If your consolidated sales and use tax return is missing a
including discretionary sales surtax due. You must also report
Consolidated Sales and Use Tax Return (Form DR-7) for one
the total amount of discretionary sales surtax due on Line 15(d).
or more of your business locations, call Taxpayer Services for
Amusement and Vending Machine Sales – You must be
assistance at 850-488-6800, Monday through Friday, excluding
registered in each county where you operate vending or
holidays. The additional locations must be registered with
amusement machines. For each county in which you operate
the Department and must have the same federal employer
machines, you must report the gross sales and the tax due from
identification number as your consolidated sales tax filing
amusement machines and from vending machines dispensing
number.
items other than food and beverages. Use the gross receipts
Line A. Sales/Services/Electricity
from each type of machine that you operate and the tax rate
Line A is used to report the total of all wholesale and retail sales
divisor for the county where the machine is located to compute
transactions and certain untaxed purchases or uses as follows:
the amount of gross sales and tax due.
• Sales, leases, or licenses to use certain property or goods
Total machine receipts ÷ Tax Rate Divisor = Gross Sales.
(tangible personal property).
Total machine receipts - Gross Sales = Tax due, including
• Sales and rentals, admissions, amusement machine receipts,
discretionary sales surtax.
and vending machine receipts (except food and beverage
sales reported on Line E). The amount of taxable sales from
Gross Sales × Surtax Rate = Discretionary Sales Surtax due.
amusement machines is also separately reported on Line 19.
• If you operate vending machines containing food or
• Sales of services including nonresidential interior pest
beverage items, complete Line E.
control, nonresidential interior janitorial and cleaning
• If you operate amusement machines, include receipts in
services, residential and nonresidential burglar and other
Line A and also complete Line 19.
protection services, and detective services.
• Sales and untaxed purchases or uses of electricity taxed at
Sales/Surtax
Amusement
Other Vended Items
the rate of 6.95% (2.6% imposed under Chapter 203, Florida
Rate
Divisor
Divisor
Statutes [F.S.], and 4.35% imposed under Chapter 212, F.S.),
6.0%
1.040
1.0659
plus surtax. You must also report this amount on Line 17.
6.5%
1.045
1.0707
• Sales and untaxed purchases of dyed diesel fuel used
7.0%
1.050
1.0749
in vessels or off-road equipment taxed at the rate of 6%
7.5%
1.055
1.0791
sales tax, plus surtax. You must also report this amount on
8.0%
1.060
1.0833
Line 18.
8.5%
1.065
1.0875
Note: Registered Florida motor vehicle dealers may use the
Example: The total receipts from an amusement machine(s) in
method described in Tax Information for Motor Vehicle Dealers
a county with a combined sales and surtax rate of 6.5% total
(Form GT-400400) to report tax on sales of motor vehicles to
$100.00. Total receipts divided by the amusement machine
out-of-state residents.
Line-by-Line Instructions continued
DR-7N
R. 01/20
Page 3 of 7
divisor for the 6.5% rate equals gross sales. Total receipts
Column 3. Taxable Amount - Subtract the amount reported in
Column 2 from the amount reported in Column 1 and enter the
minus gross sales equals tax due, including discretionary sales
difference (the taxable amount).
surtax due. Gross sales multiplied by the surtax rate equals
discretionary sales surtax due.
Column 4. Tax Due - Enter the total amount of tax due,
including discretionary sales surtax due. You must also report all
$100 ÷ 1.045 = $95.69 (gross sales)
discretionary sales surtax due on Line 15(d).
$100 – $95.69 = $4.31 (tax due, including surtax due)
Line C(a). Less Sales Tax Scholarship Credits
$95.69 x .005 = $.48 [surtax portion to be reported on Line 15(d)]
Report the amount of any state tax credit authorized by
Line B. Taxable Purchases - Use Tax
the Florida Tax Credit Scholarship Program for Commercial
You owe “use tax” on taxable purchases of goods or services
Rental Property and taken by your tenant(s) against the total
you have used or consumed that were:
sales tax and surtax due on commercial rentals. The amount
• Internet and out-of-state purchases not taxed by the
of sales tax credit reported may not exceed the state sales
seller and NOT purchased for resale.
tax due and reported in the amount on Line C, Column 4
Out-of-state or local purchases not taxed by a supplier and
(Commercial Rentals Tax Due). This credit is not available for
NOT purchased for resale whether ordered online, from a
any discretionary sales surtax due on commercial rentals. For
catalog, or by telephone.
more information on the Florida Tax Credit Scholarship Program
Taxable items, originally purchased untaxed for resale,
for Commercial Rental Property, visit
which you, your business, or employees used or consumed.
floridarevenue.com/taxes/sfo.
Include use tax and discretionary sales surtax on the return
Line D. Transient Rentals
for the reporting period during which you purchased, used, or
consumed the item(s).
Transient rentals are leases or rentals of living, sleeping, or
housekeeping accommodations, such as hotels, motels,
Column 1. Gross Sales - Not Applicable
single-family dwellings, multi-unit dwellings, apartments,
rooming houses, condominiums, timeshare resorts, vacation
Column 2. Exempt Sales - Not Applicable
houses, beach houses, mobile homes, or any other living,
Column 3. Taxable Amount - Enter the total amount of
sleeping, or housekeeping accommodations. Transient rental
purchases used or consumed that were not taxed by suppliers
taxes must be collected and paid on all rental charges, including
and not for resale. If you report purchases exempt from
any rental charges that are required to be paid by the guest as
discretionary sales surtax, also complete Line 15(a) or
a condition of the use of the accommodation, unless the rental
Line 15(b).
charge is specifically exempt. See Rule 12A-1.061, F.A.C., for
more information on what constitutes a “rental charge” and
Column 4. Tax Due - Enter the total amount of use tax due,
which rental charges are specifically exempt.
including discretionary sales surtax due.
Some counties impose one or more local option taxes
• You must also report all discretionary sales surtax due
on transient rentals. Many counties self-administer these
on Line 15(d).
local option taxes. Contact your county taxing agency to
• If you paid sales tax to another state at a rate less
determine whether your county imposes one of these taxes
than 6%, enter the total amount of Florida use tax, plus any
and if you are required to report and pay the taxes directly to
applicable discretionary sales surtax on Line B, Column 4, and
your county taxing agency or to the Department of Revenue.
claim a credit for the tax paid to the other state on Line 6. When
Form DR-15TDT, available on the Department’s website,
claiming a credit for sales tax paid to another state, make sure it
provides a listing of county local option transient rental rates
is legally imposed. When in doubt, contact the tax agency in the
and whether the local option tax is collected and administered
state where the tax was paid.
by the county or by the Department of Revenue.
Line C. Commercial Rentals
Column 1. Gross Sales - Enter the total gross amounts (rental
(5.5% Plus County Surtax Rate)
charges) charged for transient rentals only. Do not include tax
Commercial rentals include the renting, leasing, letting, or
collected in gross sales.
granting a license to use or occupy real property. Sales tax
at the rate of 5.5%, plus discretionary sales surtax, is due
Column 2. Exempt Sales - Enter the total amount of tax-exempt
on the total consideration charged for commercial property.
transient rentals included in Line D, Column 1. Enter “0” if none.
The consideration charged may include charges for property
Column 3. Taxable Amount - Subtract total exempt transient
taxes (whether paid to the landlord or directly to the county
rentals (Column 2) from total gross transient rentals (Column 1)
tax collector’s office), or common area maintenance. Rentals,
and enter the difference (the taxable amount).
leases, and licenses to use or occupy real property by related
persons are also considered commercial rentals (e.g., a
Column 4. Tax Due - Enter the total amount of tax due,
corporate owner leases property to his or her corporation). The
including any discretionary sales surtax due and any local
$5,000 limitation for discretionary sales surtax does not
option tax (for example, tourist development tax) administered
apply to commercial rentals.
by the Department of Revenue. You must also report all
discretionary sales surtax due on Line 15(d). The $5,000
Column 1. Gross Sales - Enter the total amount of
limitation for discretionary sales surtax does not apply to
consideration for commercial rentals. Do not include tax
transient rentals.
collected in the amount reported.
Line E. Food & Beverage Vending
Column 2. Exempt Sales - Enter the total amount of
If you operate food and beverage vending machines, compute
consideration for tax-exempt commercial rentals included in
your gross sales by dividing the total receipts from the
Line C, Column 1. Enter “0” if none. See section 212.031, F.S.,
machine(s) by the appropriate food and beverage divisor for the
and Rule 12A-1.070, Florida Administrative Code (F.A.C.), for
county where the machine(s) is located.
exemptions specifically available to commercial rentals.
Line-by-Line Instructions continued
DR-7N
R. 01/20
Page 4 of 7
Column 1. Gross Sales - Enter the total amount of gross sales
Line 8. Less Estimated Tax Paid/Department of
computed from food and beverage vending machines receipts.
Revenue (DOR) Credit Memo
Do not include tax collected in gross sales.
Enter the total amount of estimated tax you paid last month,
Column 2. Exempt Sales - Enter the total amount of tax-exempt
the amount of any sales tax credit memo(s) issued by the
sales included in Line E, Column 1. Enter “0” if none.
Department, and the amount of any specifically authorized tax
credits for which you have received a letter of approval from
Column 3. Taxable Amount - Subtract total exempt sales from
the Department. Follow the instructions sent to you from the
total gross sales and enter the taxable amount.
Department.
Column 4. Tax Due - Enter the total amount of tax due,
including discretionary sales surtax due. You must also report all
You will not receive a credit if the amount of credit (Line 8)
discretionary sales surtax due on Line 15(d).
reported on a location return is greater than the net amount of
tax due (Line 7) reported on that location return. If the amount
Food and Beverage Divisor
Sales/Surtax Rate
of credit for that return is more than the amount of tax due,
6.0%
1.0645
reduce the amount of credit claimed to equal the net amount of
tax due. You may report the remaining amount of credit (not to
6.5%
1.0686
exceed the net amount of tax due) on your next return. When
7.0%
1.0726
you file your FINAL return, complete an Application for Refund
7.5%
1.0767
– Sales and Use Tax (Form DR-26S) to obtain a refund of the
8.0%
1.0808
8.5%
1.0849
credit balance.
Line 9. Plus Estimated Tax Due Current Month
Example: The total receipts from a soft drink machine in a county
Enter the total amount of estimated tax due, if applicable, using
with a combined sales and surtax rate of 6.5% total $100. Total
one of the following three computation methods. You are NOT
receipts divided by the food and beverage divisor for the 6.5%
required to use only one method and may choose to use any
rate equals gross sales. Total receipts minus gross sales equals
one of these methods throughout the year.
tax due, including discretionary sales surtax due. Gross sales
multiplied by the surtax rate equals discretionary sales surtax due.
Three Methods for Computing Estimated Tax
The percentage for calculating estimated tax is 60%. Your
$100 ÷ 1.0686 = $93.58 (gross sales)
estimated tax liability is based only on Florida sales and use
$100 – $93.58 = $6.42 (tax due, including surtax due)
tax due (Form DR-15CON, Line 7, Net Tax Due minus any local
$93.58 x .005 = $.47 [surtax portion to be reported on Line 15(d)]
option discretionary sales surtax and any local option transient
Line 5. Total Amount of Tax Due
rental tax). Compute your estimated tax liability by one of the
Add the amounts in Column 4, Lines A, B, C, D, and E. Subtract
following methods:
the amount on Line C(a), Column 4, from the total and enter the
result on Line 5.
Method 1 – Average Tax Liability
Line 6. Less Lawful Deductions
Calculate 60% of your average state sales tax due for the months
Enter the total amount of all allowable tax deductions, except
you reported taxable transactions during the calendar year.
sales tax credit memos issued by the Department (reported
Example: When completing your December return (due
on Line 8). Lawful deductions include tax refunded by you
January 1 of the following year), calculate your average state
to your customers for returned goods or allowances for
sales tax due during the calendar year. To calculate your
damaged merchandise, tax paid by you on purchases of goods
average state sales tax due, complete the following steps:
intended for use or consumption but sold by you instead, Hope
Scholarship Credits, and any other deductions allowed by law.
Step 1. Review all of your sales tax returns filed for the
If you are claiming any approved Hope Scholarship Credits,
calendar year.
report the amount of the credits on Line 6 and on Line 16.
Step 2. Add together the amounts on Line 7 from each return.
Do not include documentation with your return.
Subtract any local option discretionary sales surtax and any
local option transient rental tax included in Line 7.
You will not receive a credit if the amount of lawful deductions
(Line 6) on a location return is more than the total amount of tax
Step 3. To calculate the monthly average state sales tax due,
due (Line 5) reported on that location return. If the amount of
divide the total calculated in Step 2 by the number of returns
your lawful deductions is more than the total amount of tax due
that were filed with tax due on Line 7.
on a location return, reduce the amount of lawful deductions
Step 4. Multiply your monthly average state sales tax due by
claimed to equal the total amount of tax due. You may report the
60%.
remaining amount of lawful deductions (not to exceed the total
amount of tax due) on your next return.
Step 5. Enter the result from Step 4 on Line 9 of each return
Line 7. Net Tax Due
the following year, beginning with your December return due
January 1.
Subtract Line 6 from Line 5 and enter the amount on Line 7.
The amount calculated in Step 4 can be used on each of your
Lines 8 - 9. Estimated Tax
returns for the following year through the November reporting
If you paid $200,000 or more in state sales and use tax on returns
period.
you filed during the most recent state fiscal year (July 1 through
June 30), you must make an estimated sales tax payment
Method 2 – Current Month/Previous Year
every month, starting with the December return, due January 1.
Calculate 60% of your state sales tax due for the same month
Before you file your FINAL return or if you have questions about
of the previous calendar year.
estimated tax, call Taxpayer Services.
Line-by-Line Instructions continued
DR-7N
R. 01/20
Page 5 of 7
Example: When completing your December return, multiply the
• A minimum of $50 if 10% of Line 10 is less than $50, or
amount on Line 7 of your January return for the same calendar
• 10% of the amount due on Line 10.
year (minus any local option discretionary sales surtax and any
If your return or payment is late, the minimum penalty is $50
local option transient rental tax) by 60%. Enter that amount on
for each location (reported on a separate location return,
Line 9.
Form DR-7) included in your consolidated sales and use tax
Method 3 – Current Month
return, even if you file a late return with no tax due.
Calculate 60% of the state sales tax due for the next month’s
Line 13. Plus Interest
return.
If your payment is late, you owe interest on the Amount Due
Example: When completing your December return, your
(Line 10). Florida law provides a floating rate of interest for late
estimated tax due is 60% of what you will report (minus any
payments of taxes and fees due, including discretionary sales
local option discretionary sales surtax and any local option
surtax. Interest rates, including daily rates, are published in
transient rental tax) on your January return. Enter that amount
Tax Information Publications that are updated semiannually
on Line 9.
on January 1 and July 1 each year and available on the
Department’s website at floridarevenue.com/taxes/rates.
Penalty for Underpayment of Estimated Tax – If you fail
Line 14. Amount Due with Return
to report and pay the minimum amount of estimated tax due
You may receive a collection allowance when you file and pay
each reporting period, you are subject to a loss of collection
electronically and on time. Subtract Line 11 from Line 10 and
allowance and a 10% penalty on any underpayment of
enter the amount due on Line 14. If you choose to donate
estimated tax due, and must pay interest on the amount
your collection allowance to education, check the “donate to
underpaid.
education” box and leave Line 11 blank.
You cannot amend your return to increase your estimated tax
All dealers: If your return or payment is late, add Lines 12 and
payment after the due date of the return.
13 to Line 10 and enter the amount due on Line 14. Line 14 is
Line 10. Amount Due
the amount you owe.
Subtract the amount on Line 8 from Line 7. Add the amount
Lines 15(a). - 15(d). Discretionary Sales Surtax
on Line 9. Enter the result on Line 10. The amount entered on
If you sell, rent, deliver, or receive taxable merchandise
Line 10 on Form DR-15CON cannot be negative.
or services in or at a location within a county imposing a
Line 11. Less Collection Allowance
discretionary sales surtax, you are required to collect surtax at
When you electronically file your consolidated sales and use
the rate imposed in the county where the merchandise or service
tax return and pay timely, you are entitled to deduct a collection
is delivered. The discretionary sales surtax also applies to the
allowance of 2.5% (.025) of the first $1,200 of the Amount Due
rental of real property and transient rentals and is collected at the
(Line 10), not to exceed $30 on each location return (Form
county rate where the property is located.
DR-7). You are not entitled to a collection allowance if you
Most counties impose a local option discretionary sales surtax
file your return or make your payment by a method other than
that must be collected on taxable transactions. You must collect
electronic means.
discretionary sales surtax along with the 6% state sales tax
If you are entitled to a collection allowance, you may choose
and send both taxes to the Department. Current discretionary
to donate the allowance to the Educational Enhancement Trust
sales surtax rates for all counties are listed on Discretionary Sales
Fund. This fund is used to purchase up-to-date technology for
Surtax Information (Form DR-15DSS), available on the Department’s
classrooms in local school districts in Florida. If you are eligible
website.
and choose to donate your collection allowance to education,
If you have locations in any Florida counties that impose a
check the “donate to education” box and leave Line 11 blank.
discretionary sales surtax, the applicable surtax rate is printed
The Department will calculate the collection allowance and
on each DR-7 return. For out-of-state locations, the DR-7 returns
transfer that amount to the Educational Enhancement Trust
will not show a discretionary sales surtax rate. However, all
Fund. You must make this choice on each original and timely
dealers must collect discretionary sales surtax on taxable sales
filed electronic return. You cannot make this choice after your
when the transaction occurs in, or delivery is into, a county that
electronic return is filed.
imposes a surtax. Use the chart below to help you determine
Line 12. Plus Penalty
when and at what rate to collect discretionary sales surtax.
For late returns and payments, the penalty is either:
When and at What Rate to Collect Discretionary Sales Surtax (Local Option County Tax) on Taxable Sales
into the county where the
surtax is collected at the county rate
with a discretionary surtax
where the delivery is made
selling dealer is located
into counties with different
surtax is collected at the county rate
sells and
If a selling dealer located in any
with or without a discretionary surtax
discretionary surtax rates
where the delivery is made
delivers
Florida county
into counties without a
surtax is not collected
with or without a discretionary surtax
discretionary surtax
into a Florida county with a
surtax is collected at the county rate
discretionary surtax
where the delivery is made
If an out-of-state selling dealer
sells and
into a Florida county without
delivers
surtax is not collected
a discretionary surtax
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