The Florida Department of Revenue (the âDepartmentâ) recently published Technical Assistance Advisement No. 17C1-004 (decided Apr. 17, 2017, published Aug. 25, 2017) (the âTAAâ), which addresses how receipts from âother salesâ are sourced under Floridaâs apportionment regulation (i.e., Florida Administrative Code Regulation (âRegulationâ) 12C-1.0155(2)(l)). Despite the cost-of-performance (âCOPâ) language explicitly stated in Floridaâs Regulation 12C-1.0155(2)(l), the Department applied a market-based sourcing approach, concluding that the receipts from certain services should be sourced to Florida when the taxpayerâs customers are physically located in the state. While Technical Assistance Advisements have no precedential value, the TAA showcases Floridaâs propensity to use market-based sourcing for receipts from âother sales,â which appears to be in contrast to the COP directive under Florida Regulation 12C-1.0155(2)(l).
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