Monday, November 27, 2006

DONATING SALES TAX COLLECTION ALLOWANCE TO EDUCATION [FLORIDA]

Florida dealers are obligated to collect sales and use tax, file tax returns, and remit the taxes to the Florida Department of Revenue. As compensation for conducting such activities, the tax filer is entitled to a collection allowance of 2.5% of the first $1,200 of tax due (a maximum of $30) on a return.

Sales and use tax dealers can now elect to donate their collection allowance to the Educational Enhancement Trust Fund. The Fund will be paid out to school districts that have adopted resolutions stating that these funds will be used to ensure that up-to-date technology is purchased for the classrooms in those districts, and the teachers are trained in the use of this technology.

The election is made on a timely sales and use tax return - a check box will be included on the return forms, beginning with the January 2007 return. It must be made with each return, and once made may not be rescinded by the taxpayer.

It appears that the donation will be made to schools in the business county of the taxpayer. However, if that county has not adopted the appropriate resolution, or the taxpayer is located out-of-state, the donation will be divided among all counties adopting the resolution.
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