Fla. Admin. Code Title 12 — Department of Revenue

Division 12E Child Support Program

Chapter 12E-1 CHILD SUPPORT PROGRAM

Fla. Admin. Code R. 12E-1.001 General

History

• Rulemaking Authority 61.181(8), 409.026, 409.2567 FS. Law Implemented 61.13, 61.181(8), 88.0405, 88.331, 95.11(3), 409.2554, 409.2557, 409.2561, 409.2567, 409.2569, 409.2577, 742.10 FS. History–New 1-11-76, Formerly 10C-25.01, Amended 2-18-86, 4-6-88, 8-1-89, 6-17-92, 7-20-94, Formerly 10C-25.001, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.002 Services Provided

History

• Rulemaking Authority 409.026, 409.2557 FS. Law Implemented 61.14, 61.30, 119.08(3), 409.026, 409.2557, 409.2561, 409.2567 FS. History–New 1-11-76, Formerly 10C-25.02, Amended 2-18-86, 6-17-92, 7-20-94, Formerly 10C-25.002, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.003 Conditions of Eligibility

History

• Rulemaking Authority 409.026, 409.2567 FS. Law Implemented 409.2554, 409.2557, 409.2561, 409.2567, 409.2569, 409.2577, 742.011 FS. History–New 1-11-76, Formerly 10C-25.03, Amended 2-18-86, 4-6-88, 8-1-89, 7-20-94, Formerly 10C-25.003, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.004 Application for Services, Application Forms and Fee

History

• Rulemaking Authority s. 1, Chapter 94-124, s. 14, Chapter 94-236, L.O.F. Law Implemented 61.08(4)(d), 61.16(1), 61.30(1)(b), (14), (15), 88.111, 88.151, 88.235, 90.502(5), 119.08(3), 319.23, 319.24, 320.01, 327.02(27), 328.01, 328.15, 409.2557, 409.2561, 409.2567, 409.2564(2), (3), (4), 409.2569, 409.2572, 409.2577, 695.25, 742.045, 742.12 FS. History–New 2-18-86, Amended 4-9-87, 4-6-88, 8-1-89, 6-17-92, 7-20-94, Formerly 10C-25.0035, Amended 8-19-96, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.005 Collection and Distribution of Payments

History

• Rulemaking Authority 409.026, 409.2567 FS. Law Implemented 409.2554, 409.2557, 409.2561, 409.2567, 409.2569 FS. History–New 2-18-86, Amended 4-6-88, 8-1-89, 7-20-94, Formerly 10C-25.0036, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.0051 Undistributable Collections

(1) Introduction. The Department is responsible for distribution of child support payments under Section 409.2558, F.S. When the Department is unable to disburse the payment to the final intended recipient, the provisions of this rule apply.

(2) Definitions. For purposes of this rule:

(a) “Final intended recipient” means a parent, caregiver, a parent’s or caregiver’s estate, or a state, country, or agency providing Title IV-D services, including agencies administering programs under Title IV-A (Temporary Assistance for Needy Families), Title IV-E (Foster Care), or Title XIX (Medicaid) of the Social Security Act.

(b) “Obligee” means the person to whom support payments are made pursuant to an alimony or child support order.

(c) “Obligor” means a person who is responsible for making support payments pursuant to an alimony or child support order.

(d) “Undistributable collection” means a support payment received by the Department that the Department determines cannot be distributed to the final intended recipient, as defined by Section 409.2554(17), F.S.

(3) Undistributable Collection Processing.

(a) The Department will consider a collection undistributable when:

1. The final intended recipient is deceased and the Department cannot locate the individual’s estate or the estate does not claim the funds.

2. The final intended recipient cannot be found after making reasonable efforts to locate the individual.

a. Reasonable efforts to locate a final intended recipient are considered complete when, at a minimum, searches of the Department’s automated case management computer system, available electronic data exchange information from other state and federal agencies, and information available from a contractor providing location services to the Department, if any, have taken place and the Department has not found the individual.

b. If the searches find the final intended recipient, the Department disburses the payment.

c. If the searches do not find the final intended recipient, the payment is considered undistributable.

(b) The Department will process the undistributable collections in priority order as provided in Section 409.2558(3), F.S.

(4) Uncashed Checks for Less Than Ten Dollars.

(a) When the Department has sent one or more paper checks totaling less than ten dollars to the final intended recipient, and the individual has not cashed the check within 180 days of the issue date and does not have an established method of electronic disbursement, the Department will hold the collection for processing as program income.

1. The Department sends a Notice of Uncashed Check (CS-FM166) to the final intended recipient’s last known address by regular mail. The notice states the Department’s intention to process the collection as program income unless the individual contacts the Department to have the collection reissued. Form CS-FM166, (http://www.flrules.org/Gateway/reference.asp?No=Ref-14806), is incorporated herein by reference, effective 11/22.

2. If the final intended recipient does not contact the Department within 30 days of the date of the notice, the Department will process the collection as program income, crediting the federal share of the collection to the federal government and the state share of the collection to the General Revenue Fund.

3. If the final intended recipient contacts the Department after the collection has been processed as program income, the Department will handle the request to claim the collection as provided in subsection (6).

(5) Undistributed Collections for Ninety-Nine Cents or Less.

(a) If the Department has sent one or more paper checks totaling ninety-nine cents or less to a final intended recipient, the recipient has not cashed the check(s) within 180 days of the issue date on the check(s), the collection(s) is the only remaining payment due to the final intended recipient, and the individual does not have an established method of electronic disbursement, the Department will process the collection as program income.

(b) If the Department identifies undistributed collections totaling ninety-nine cents or less on a closed case and the collection is the only remaining collection due to the final intended recipient, the Department processes the collection as program income without attempting to locate the final intended recipient.

(6) Claiming Undistributable Collections.

(a) The final intended recipient may claim undistributable collections retained as program income. The individual may not claim an undistributable collection if the collection was applied to bad check charges because the obligor’s payment is returned to the Department for insufficient funds, overpayments, state-assigned arrears, administrative costs, other cases in which the obligor owes past-due support, or the collection was returned to the obligor. The individual may contact the Department to request the collection be disbursed.

(b) The final intended recipient must prove they are entitled to the collection by giving his or her name, mailing address, and other case or demographic information as needed for the Department to verify the individual’s identity.

(c) The Department will review the information provided and respond in writing to approve or deny the request.

1. If the request is approved, the Department will disburse the collection to the final intended recipient.

2. If the request is denied, the Department will mail the Request for Disbursement Denied (CS-FM127) to the final intended recipient. Form CS-FM127 (http://www.flrules.org/Gateway/reference.asp?No=Ref-14807) is incorporated herein by reference effective 11/22.

3. A final intended recipient may file a petition for an administrative hearing to contest the Department’s decision to deny a request to claim a collection considered undistributable by the Department. A petition for an administrative hearing must be received by the Department of Revenue, Child Support Program, Deputy Agency Clerk, within 20 calendar days from the mailing date of Form CS-FM127. Administrative hearings are conducted pursuant to Chapter 120, F.S.

(6) Forms. Members of the public may get a copy of the forms used in this rule chapter, incorporated by reference, without cost, by writing to the Department of Revenue, Child Support Program, Attn.: Forms Coordinator, P.O. Box 8030, Tallahassee, Florida 32314-8030.

History

• Rulemaking Authority 409.2557(3)(j), 409.2558(3)(a), 409.2558(9) FS. Law Implemented 409.2558(3), 409.2558(5) FS. History–New 10-24-11, Amended 10-26-22.

Fla. Admin. Code R. 12E-1.0052 Unidentifiable Payments

(1) Introduction. The Department is responsible for receipt and disbursement of child support payments under Section 409.2558, F.S. The State Disbursement Unit operating under Section 61.1824, F.S., is responsible for the receipt and disbursement of child support payments for:

(a) Cases enforced by the Department under Title IV-D of the Social Security Act; and,

(b) Cases not enforced by the Department under Title IV-D of the Social Security Act (non Title IV-D cases) in which the support order is issued on or after January 1, 1994, and in which the obligor’s support obligation is being paid through income deduction.

(2) Definitions. For purposes of this rule:

(a) “Comprehensive Case Information System or “CCIS” means a secured internet portal developed and set up by the Florida Association of Court Clerks and Comptrollers (FACC) that provides a single point of search for statewide court case information.

(b) “Department” means the Florida Department of Revenue.

(c) “State Disbursement Unit” or “SDU” means the unit operated by the Title IV-D agency, under Section 61.1824, F.S. The SDU provides one central address for receipt and disbursement of child support payments for the cases listed in subsection (1).

(d) “Unidentifiable payment” means “unidentifiable collection” as defined by Section 409.2554(18), F.S., and includes a payment received by the Department, including the State Disbursement Unit, for which the Department cannot identify the intended recipient or remitter.

(3) Payment Processing Procedures.

(a) The State Disbursement Unit’s automated remittance processing system matches and applies child support payments to individual cases.

(b) If the payment cannot be automatically applied and there is legible identifying information on the payment instrument, the State Disbursement Unit shall search the State Disbursement Unit database, the Department’s case management computer system, and CCIS using the information available from the payment instrument to try to identify the intended recipient or remitter.

(c) If the search identifies the intended recipient or remitter, the State Disbursement Unit shall apply the payment to the intended recipient’s case for which payment is made.

(d) If the intended recipient cannot be identified, the State Disbursement Unit shall return the payment to the remitter.

(e) If the searches do not identify the intended recipient, the remitter, or the remitter’s address, the payment is considered unidentifiable. Payments determined as unidentifiable by the State Disbursement Unit are submitted to the Department for review.

(f) If the Department is able to identify the intended recipient or remitter, the Department notifies the State Disbursement Unit to apply the payment to the intended recipient’s case for which payment is made. If the payment is unidentifiable, the Department processes it as program income. The Department shall deposit the state share of an unidentifiable payment in the General Revenue Fund. The federal share of the payment is deposited in the Grants and Donations Trust Fund.

(g) If after a payment is processed as program income, a parent provides information to the Department that identifies the payment, the Department shall apply the payment to the case or refund it to the remitter as appropriate.

History

• Rulemaking Authority 409.2557(3)(j), 409.2558(4), 409.2558(9) FS. Law Implemented 409.2558(4) FS. History–New 1-12-10, Amended 4-5-16, Technical Change 4-27-26.

Fla. Admin. Code R. 12E-1.006 Request for Reconsideration

(1) A recipient of collection and distribution services of the Department’s Child Support Program may request a reconsideration regarding the amount collected, the date collected, the amount distributed, the distribution timing, or the calculation of arrears. A reconsideration is a desk review to allow the Department to investigate the recipient’s concerns and correct any errors prior to a hearing.

(2) Requests for reconsideration shall be made on the Request for Reconsideration (CS-POF4). Form CS-POF4, (http://www.flrules.org/Gateway/reference.asp?No=Ref-14344), is incorporated herein by reference effective 06/22. If the request concerns information reported by the Department on a collection notice, the request for reconsideration form must be received by the Department within 60 days of the mailing date of the collection notice. If the request concerns collection or distribution information not referenced on the most recent collection notice, the request for reconsideration form must be received by the department within 60 days of the date the form is provided to the recipient.

(3) The Department must issue a written decision on the reconsideration process within 20 days of receipt of a complete and timely request for reconsideration form.

(4) The reconsideration process will include a review by a case analyst or case analyst supervisor. The recipient may choose to be present for the review, or may have a person represent them at the review, provided the representative has written approval from the recipient. At the time of the review, the recipient and/or the recipient’s representative, may present additional information regarding the issue being reviewed. The recipient, and/or the recipient’s representative, may appear by telephone.

(5) On request, the Department will provide the recipient one free copy of case file information that directly relates to the issue being reviewed, system information that directly relates to the issue being reviewed, and a non-certified depository history if on line access and printing capability is available in the local child support enforcement office, with the exception of any information whose release is prohibited by state or federal law. Additional copies are subject to copying costs pursuant to Section 119.07(1)(a), F.S.

(6) The Department will make a reasonable effort to accommodate recipients who do not speak English or who are hearing impaired.

(7) A regional manager or contract equivalent must issue a final decision regarding the reconsideration within 25 days of the receipt of a complete request for reconsideration. The decision must be in writing and must include:

(a) The date the reconsideration was requested;

(b) The issues involved;

(c) The results of the reconsideration;

(d) A statement that the written decision marks the end of the reconsideration process; and,

(e) Notice of the right to request a hearing before a hearing officer regarding the reconsideration decision within 45 days of the date of the written decision.

(8) Within 15 working days of the date of the written decision on the reconsideration, the Department shall authorize for payment any amount it determines is owed to the recipient.

(9) A request for reconsideration may be rejected for any of the following reasons:

(a) The recipient fails to indicate the reason the reconsideration is being requested.

(b) The issue is inappropriate for reconsideration under this rule.

(c) The reconsideration is not requested in a timely manner.

(d) The recipient has had a prior reconsideration on the identical issue.

(e) The recipient voluntarily withdraws the request for reconsideration in writing.

(10) The Department’s reconsideration decision informs the parent or caregiver how to request an administrative hearing if they disagree with the decision. A request for an administrative hearing must be received within 45 days of the date of the reconsideration decision, which is the date it is mailed to the parent or caregiver. Hearings are conducted by the Appeal Hearings Section of the Department of Children and Families.

History

• Rulemaking Authority 409.2558(6) FS. Law Implemented 409.2558(6) FS. History–New 1-11-76, Formerly 10C-25.04, Amended 2-18-86, 6-17-92, 7-20-94, Formerly 10C-25.004, Amended 8-19-96, 6-9-22.

Fla. Admin. Code R. 12E-1.007 Right to Appeal

History

• Rulemaking Authority 120.535, 409.026 FS. Law Implemented 409.026, 409.2557 FS. History–New 1-11-76, Formerly 10C-25.05, Amended 2-18-86, 7-20-94, Formerly 10C-25.005, Repealed 9-30-99.

Fla. Admin. Code R. 12E-1.008 Determination of Cooperation; Determination of Noncooperation; Determination of Good Cause to Not Cooperate

(1) Definitions.

(a) Definitions. As used in this section:

1. “Applicant” or “recipient” means an individual who has applied for or receives public assistance.

2. “Cooperation” means an applicant or recipient taking the actions identified in Section 409.2572, F.S., as requested by the child support program, to assist in identifying and locating the parent who owes support; establishing paternity; establishing, modifying, and enforcing medical and financial support; and collecting support or other payments or property due from the parent who owes support.

3. “Department” means the Department of Revenue.

4. “Good cause to not cooperate” means a legally and factually sufficient reason to excuse the applicant or recipient from cooperation requirements as determined by the Department, after evaluating the applicant or recipient’s written good cause to not cooperate claim, and other evidence available to the Department, in accordance with subsection (5) of this rule.

5. “Public assistance” means temporary cash assistance; food assistance received on behalf of a child under 18 years of age residing most of the time with only one parent or a nonparent caregiver; or money paid for foster care or Medicaid under Title IV-E and Title XIX of the Social Security Act, respectively.

(2) Cooperation Requirements for Applicants or Recipients of Public Assistance.

(a) The requirement for an applicant or a recipient to cooperate with the child support program will be excused only when the Department has approved a request for good cause to not cooperate in accordance with subsection (5).

(b) An adult who applies for or receives Medicaid services for a child only is not required to cooperate.

(c) An applicant or recipient of Medicaid-only must cooperate in establishing, modifying and enforcing medical support if the applicant or recipient is receiving Medicaid.

(d)1. A recipient of public assistance must make a good faith effort to cooperate with the Department as provided by Section 409.2572, F.S., to assist the Department in its efforts to identify and locate the alleged father or parent who owes support to establish paternity; establish, modify, and enforce medical and financial support; and collect support from the parent who owes support.

2. The recipient must provide the following information regarding the alleged father or parent who owes support when requested by the Department, if known:

a. Social Security Number;

b. Race;

c. Date of birth;

d. Current or former employer;

e. Place of birth;

f. Current or former address and phone number;

g. Other information, based upon individual case circumstances, that may help the Department determine the identity and location of the alleged father or parent who owes support.

3. A recipient who does not have information about the location or identity of the alleged father or parent who owes support satisifes the requirement to cooperate.

(3) Determination of Noncooperation. If a recipient of public assistance does not cooperate with the Department as provided by Section 409.2572, F.S., and subsection (2), the Department will mail the Notice of Noncooperation (Form CS-CF07), incorporated herein by reference, effective 11/21, (http://www.flrules.org/Gateway/reference.asp?No=Ref-13848) to the recipient at the last known address provided to the Department.

(a) The recipient may return the CS-CF07 or contact the Department within 10 business days after the date of mailing of the notice to make arrangements to cooperate, request good cause to not cooperate, or request the Department to conduct an informal review as provided by subsection (4). At the time of the request for informal review the recipient may state if they want to be present during the review and if they want a representative present during the review.

(b) If the recipient does not take timely action as required by paragraph (3)(a), the Department will notify the Department of Children and Families of the recipient’s noncooperation as provided by subsection (6).

(c) The Department does not report noncooperation to the Department of Children and Families if the recipient cooperates by the date specified in the CS-CF07 notice mailed to the recipient. The recipient is not reported as uncooperative unless the request to not cooperate is denied by the Department as provided by subsection (5), and the recipient continues to not cooperate.

(4) Request for Informal Review.

(a) Reviews of pending determinations of noncooperation requested pursuant to subsection (3), paragraph (b), must be completed within 20 business days after receipt of a completed request for review. The Department will contact the recipient with an explanation of the additional information required if an incomplete request is provided to the Department. The Department will make arrangements for the parent to comply with the requested action if the parent indicates their intent is to cooperate in their request for a review. The Department will determine the recipient is noncooperative and notify the Department of Children and Families if the parent indicates their intent is to not cooperate in their request for a review.

(b) The Department will take the following actions when a completed request for review is received by the Department.

1. Schedule a date to conduct the review if the recipient has requested to be present for the review and send a notice to the recipient to appear in a local child support office before the date specified in the notice, which must be at least 10 days after the date the notice is mailed. If the recipient chooses to have a representative present at the review, the recipient is responsible for making those arrangements.

2. Conduct the review. Reviews consist of an examination of the Department’s case record, interview with Department staff and an evaluation of the recipient’s statements. The Department provides the results of the review to the parent on the Notice of Decision on Noncooperation (CS-CF38), incorporated herein by reference, effective 09/18, (http://www.flrules.org/Gateway/reference.asp?No=Ref-09857).

(5) Good Cause Request to not Cooperate in Public Assistance Cases. The Department is authorized in accordance with 42 U.S.C. 654(29), and Section 409.2572(4), F.S., to determine a recipient’s request to not cooperate in public assistance cases. An approved request excuses the recipient from the requirement to cooperate with the Department.

(a) When an applicant or recipient does not want to cooperate because doing so may endanger the recipient or child(ren), the recipient must complete, sign and return the Request to Not Cooperate (CS-CF08) form, incorporated herein by reference, effective 11/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-12330) within 30 days after the date of the Request to Not Cooperate.

(b) Requests for good cause to not cooperate are approved or denied based upon the information provided by the recipient. The Department will suspend action on child support case activities from the time a request to not cooperate is received until a final determination is made. The Department sends a Notice of Decision Request to Not Cooperate (CS-CF11), incorporated herein by reference, effective 09/18, (http://www.flrules.org/Gateway/reference.asp?No=Ref-09858) to notify the recipient of its decision.

(c) A written request for good cause to not cooperate is approved when the recipient provides information that:

1. There is a reasonable likelihood that the recipient or child may be physically or emotionally harmed if cooperation is required;

2. The child was born as a result of rape or incest;

3. Legal proceedings for the adoption of the child are pending in court; or

4. The parent or caregiver is being assisted by a public or licensed private social services agency to determine whether to place the child for adoption.

(d) A written request for good cause to not cooperate is denied when the recipient does not provide a written statement or documentation in support of the claim.

(e) A recipient whose request for good cause to not cooperate is denied must cooperate with the Department as provided by Section 409.2572, F.S. and subsection (2). If the recipient does not cooperate, the Department proceeds as provided in subsection (3).

(6) Notification to the Department of Children and Families.

(a) In accordance with Section 409.2572(3), F.S., the Department is responsible for determining and reporting to the Department of Children and Families, noncooperation by applicants and recipients of public assistance.

(b) The Department will notify the Department of Children and Families when the applicant or recipient cooperates with the Department in accordance with Section 409.2572, F.S., or when the Department determines that an applicant or recipient has not cooperated, or when the Department determines the recipient is not required to cooperate.

(c) The Department will notify the Department of Children and Families and the applicant or recipient within two business days after the Department’s determination that:

1. The applicant or recipient is cooperating in good faith; or

2. Cooperation by the applicant or recipient is not needed or required to take the next appropriate case action.

History

• Rulemaking Authority 409.2557(3)(h) FS. Law Implemented 409.2572 FS. History–New 4-1-86, Amended 4-6-88, 7-20-94, Formerly 10C-25.006, Amended 3-6-02, 9-17-18, 11-12-20, 11-21-21, 7-10-24.

Fla. Admin. Code R. 12E-1.009 Enforcement of Income Deduction in IV-D Cases Where No Income Deduction Order Currently Exists

History

• Rulemaking Authority 409.2574 FS. Law Implemented Chapter 48, 61.1301, 409.2557, 409.2574 FS. History–New 10-20-86, Amended 6-17-92, 7-20-94, Formerly 10C-25.007, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.010 Immediate Income Deduction Orders

History

• Rulemaking Authority 409.026 FS. Law Implemented 61.1301, 61.181, 409.2574 FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.0071, Repealed 9-30-99.

Fla. Admin. Code R. 12E-1.011 Lottery Intercept

(1) Pursuant to Section 24.115(4), F.S., the Department will intercept the Florida lottery prize of any obligor who owes past-due support and who claims or is awarded a lottery prize or a portion of a lottery prize equal to or greater than $600. The prize is applied toward any past-due support or costs owed by the obligor for a Title IV-D case, not to exceed the amount owed.

(2) Definitions. As used in this rule:

(a) “Obligor” means a person responsible for making payments pursuant to an order establishing, enforcing, or modifying an obligation for child support, spousal support, or for child and spousal support when enforced by the Department.

(b) “Past-due support” means the amount of support owed pursuant to an order for child support, spousal support, or for child and spousal support when enforced by the Department that has not been paid. Also included in past-due support are amounts owed to the Department for court or administrative costs.

(c) “Department” means the Department of Revenue.

(3) Certification of Past-Due Support. The Department certifies all parents who owe a past-due amount for lottery intercept. Prior to the payment of a prize to any obligor owing past-due support, the Department of the Lottery will verify the information provided by the Department to determine if past-due support is owed. Upon the request of the Department of the Lottery, the Department will provide written certification that the obligor owes past-due support and specify the amount owed. Upon receipt of such written certification from the Department, the Department of the Lottery will transmit the prize money, not to exceed the amount certified as past-due support, to the Department.

(4) Notification of Intercept.

(a) The Department will notify the obligor by regular U.S. mail, that the prize money is being intercepted and will be applied to the balance of past-due support. The Notice of Intent to Deduct Lottery Winnings (CS-EF160), incorporated herein by reference, effective 07/22, (http://www.flrules.org/Gateway/reference.asp?No=Ref-14345) will be sent to the address provided by the obligor to the Department of the Lottery. The obligor may request an administrative hearing as set forth in Chapter 120, F.S., to contest a mistake of fact about the amount of past-due support or the identity of the obligor.

(b) If a petition for administrative hearing is not received within 21 days of receipt of the notice specified in paragraph (4)(a), the prize received from the Department of the Lottery will be applied to the obligor’s past-due support.

(c) To request an administrative hearing, the obligor will file a petition for an administrative hearing with the Department of Revenue, Child Support Program, Deputy Agency Clerk, P.O. Box 8030, Tallahassee, FL 32314-8030, within 21 days of receipt of this notice. If a petition for administrative hearing is not received within 21 days of receipt of this notice, the obligor will be considered to have waived the right to a hearing and the intercept will be applied to the obligor’s past-due support obligation. Administrative hearings will be conducted pursuant to Chapter 120, F.S.

(5) Application of Lottery Prize when Obligor owes Past-Due Support on Multiple Cases. If the obligor owes past-due support on more than one Title IV-D case, the prize is applied to each case based on the ratio of the past-due amount for each individual case to the total past-due support owed by the obligor for all Title IV-D cases. When past-due support is satisfied on all cases, the prize is applied to unpaid costs on each case based on the ratio of the unpaid costs for each individual case to the total unpaid costs owed by the obligor for all Title IV-D cases.

History

• Rulemaking Authority 409.2557(3) FS. Law Implemented 24.115(4) FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.008, Amended 1-23-03, 9-17-18, 11-12-20, 6-9-22.

Fla. Admin. Code R. 12E-1.012 Consumer Reporting Agencies

(1) Definitions. As used in this rule:

(a) “Consumer Reporting Agency,” also referred to as a “credit bureau” or a “credit reporting agency,” means a person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and who uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.

(b) “Delinquency” means the total amount of support that has come due and is unpaid pursuant to the payment schedule set forth in the support order as that term is defined by Section 61.046(21), F. S.

(c) “Overdue Support” means the amount of a delinquency, arrearage, or both, that is owed under a support order as that term is defined by Section 61.046(21), F. S.

(2) Reporting Overdue Support upon a Request from a Consumer Reporting Agency.

(a) If a consumer reporting agency requests information from the Department pursuant to Section 61.1354(1), F.S., concerning an obligor who has not been reported by the Department pursuant to subsection (3) of this rule, the Department shall, after complying with subsection (4) of this rule, provide the consumer reporting agency with the obligor’s name, social security number, and the amount of overdue support he or she owes, if any.

(b) If a consumer reporting agency or lending institution requests the Department to verify the amount of overdue support owed by an obligor who has been reported by the Department pursuant to subsection (3) of this rule, the Department shall provide the information to the consumer reporting agency or lending institution. A request from a lending institution must be accompanied by a written authorization signed by the obligor authorizing the Department to disclose the information.

(3) Periodic Reporting to Consumer Reporting Agencies.

(a) The initial report concerning an obligor may not be released until the Department has complied with the notice and hearing requirements in subsection (4) of this rule. Subsequent reports providing updated amounts owed by an obligor are released by the Department without further notice to the obligor.

(b) The Department initiates reporting to consumer reporting agencies if the case meets all the following criteria, unless any of the factors listed in paragraph (3)(c), are present:

1. The Department has a valid mailing or residential address for the obligor,

2. The delinquency in the case is:

a. Equal to or greater than $400, or

b. Greater than $100 and less than $400, and:

(I) For a weekly support obligation, the Department has not received and posted a payment in the past 10 days or longer,

(II) For a bi-weekly support obligation, the Department has not received and posted a payment in the past 17 days or longer,

(III) For a semi-monthly support obligation, the Department has not received and posted a payment in the past 18 days or longer,

(IV) For a monthly support obligation, the Department has not received and posted a payment in the past 34 days or longer,

(V) For a quarterly support obligation, the Department has not received and posted a payment in the past 95 days or longer,

(VI) For a semi-annual support obligation, the Department has not received and posted a payment in the past 186 days or longer,

(VII) For an annual support obligation, the Department has not received and posted a payment in the past 368 days or longer,

(VIII) For a one-time support obligation, the Department has not received and posted a payment in the past 34 days or longer.

3. The Department has a valid social security number for the obligor,

4. Overdue support in the case equals or exceeds two times the monthly support obligation, if any.

(c) The Department may not initiate reporting to consumer reporting agencies in a case if any of the following factors are present:

1. The obligor receives temporary cash assistance,

2. The obligor receives Supplemental Security Income benefits,

3. The obligor is complying with a written agreement he or she entered with the Department,

4. The obligor receives reemployment assistance (formerly known as unemployment compensation),

5. The Department has initiated an income deduction notice to the current employer or other income provider during the employer’s or income provider’s most recent pay frequency (e.g., weekly, monthly), if known, or during the support order obligation frequency (e.g., weekly, monthly),

6. The Department has placed an override on reporting overdue support to consumer reporting agencies (for example, when a court has prohibited using the action on a specific case),

7. The Department has any of the following compliance actions pending in the case:

a. A past-due notice sent to the obligor,

b. An appointment letter sent to the obligor,

c. An action to suspend the obligor’s driver license and motor vehicle registration(s),

d. An action to suspend the obligor’s business, professional, occupational, or recreational license or certification,

e. A legal action against the obligor for contempt of court or to establish a repayment on past-due support,

f. An action to place a lien on the obligor’s motor vehicle(s) or vessel(s),

g. A referral of the obligor’s case to another state’s Title IV-D agency to take compliance action against the obligor,

8. The obligor is paying support pursuant to an income deduction notice, or

9. The obligor is incarcerated.

(d)1. The Department may not release the initial report concerning an obligor’s overdue support if, after the obligor receives notice pursuant to subsection (4), the Department and the obligor enter into a written agreement establishing a payment plan in accordance with Rule 12E-1.027, F.A.C.

2. If the obligor does not comply with the written agreement, the Department shall release the initial report and subsequent periodic reports without further notice to the obligor, which must be stated in the written agreement.

3. The Department may not release the initial report for as long as the obligor complies with the written agreement.

(4) Notice and Right to Hearing.

(a) Before releasing a report or providing information concerning an obligor under this section, the Department sends the obligor by regular mail to his or her last known address a Notice of Intent to Report to Consumer Reporting Agencies, Form CS-EF32, incorporated herein by reference, effective 09/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15850). The notice informs the obligor that:

1. The Department will report the amount of overdue support to the consumer reporting agencies,

2. The Department will report an update of the overdue support amount each month,

3. Reporting overdue support to consumer reporting agencies may affect the obligor’s ability to obtain credit,

4. The obligor may avoid the initial report by paying the full amount of the overdue support within 20 days after the date the notice is mailed,

5. The obligor may request the Department to enter into a written agreement that establishes a payment plan to avoid reporting the overdue support; and,

6. By requesting an informal review, the obligor may contest the information proposed to be released if the overdue support amount is incorrect or the obligor is not the individual obligated to pay support.

(b) An obligor may contest the Department’s reporting of overdue support to consumer reporting agencies. To contest:

1. The obligor must submit a written request for informal review to the Department at the address specified in the Notice of Intent to Report to Consumer Reporting Agencies (CS-EF32) within 20 calendar days after the mailing date of the notice.

2. If a written request for informal review is received timely, the Department shall conduct the informal review to determine whether reporting to consumer reporting agencies is appropriate. The Department shall conclude its review within 20 days after receiving the request.

3. When the review is concluded, the Department will hand-deliver or send the obligor by regular mail a Notice of Decision Concerning Report to Consumer Reporting Agencies, Form CS-EF62, incorporated herein by reference, effective 07/22, (http://www.flrules.org/Gateway/reference.asp?No=Ref-14808). The notice informs the obligor whether the Department intends to report the obligor’s overdue support amount to the consumer reporting agencies. The notice also informs the obligor of the right under Chapter 120, F.S., to file a petition for administrative hearing to contest the accuracy of the information to be reported.

(5) Modifying Previous Reports to Consumer Reporting Agencies. The Department shall notify consumer reporting agencies to remove or modify the amount of overdue support from the obligor’s consumer report if the Department determines the amount reported by the Department is incorrect or has been paid in full.

(6) Department Requests for Consumer Reports. The Department is authorized to request consumer reports from consumer reporting agencies pursuant to Sections 61.1354(3) and (4), F.S. Before the Department submits a request for a consumer report to a consumer reporting agency, the Department shall certify one-time to the consumer reporting agency that every subsequent request for a consumer report from that agency will meet the requirements set forth in Section 61.1354(3), F.S. When the Department requests a consumer report, the Department shall provide the Notice of Intent to Request Credit Report, Form CS-EF15, incorporated herein by reference, effective 09/19/2017, (http://www.flrules.org/Gateway/reference.asp?No=Ref-08619), by regular mail to the individual’s last known address at least 15 days prior to transmitting the request to the consumer reporting agency.

History

• Rulemaking Authority 61.1354(5), 409.2557(3)(i) FS. Law Implemented 61.1354 FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.009, Amended 10-22-00, 10-30-06, 9-19-17, 11-12-20, 11-21-21, 6-9-22, 10-26-22, 9-14-23.

Fla. Admin. Code R. 12E-1.013 Release of Information

History

• Rulemaking Authority 409.026 FS. Law Implemented 119.07, 409.2579 FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.010, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.014 Federal Offset Program; Passport Denial; Secretary of the Treasury Full Collection Services

(1) Definitions. As used in this rule:

(a) “Assignment” means an assignment of rights to support as a condition of eligibility for temporary cash assistance, foster care maintenance payments, or medical support as authorized by 45 CFR 301.1.

(b) “Offset” means the complete or partial intercept of a federal income tax refund, rebate, or other federal payment.

(c) “Past-due support” means the amount of support determined under a court order, or an order of an administrative process established under Florida or another state’s law, for support and maintenance of a child which has not been paid, regardless of whether the child is a minor, but does not include retroactive support only with no delinquent payments.

(d) “Department” means the Department of Revenue.

(e) “Obligee” means the person to whom support payments are made pursuant to a child support order.

(f) “Obligor” means a person who is responsible for making support payments pursuant to a child support order.

(2) Certification for Federal Offset Program and Passport Denial. The Department will certify obligors to the federal Office of Child Support Enforcement for offset of federal income tax refunds or rebates when they meet the criteria in paragraph (3)(b), for offset of other federal payments when they meet the criteria in paragraph (3)(c), and for passport denial when support arrearages are greater than $2,500.

(3) Federal Offset Program.

(a) Obligors who owe past-due support in Title IV-D cases are subject to offset as authorized by 31 USC 3716, 42 USC 664(c), 45 CFR 301.1, and 45 CFR 303.72.

(b) Certification for Offset of Federal Income Tax Refunds or Rebates. The Department will certify an obligor for offset of the obligor’s federal income tax refund or rebate as follows:

1. For support assigned to the state, the total past-due support assigned to the state for all the obligor’s cases enforced by the Department is $150 or greater; and

2. For support owed to an obligee, the total past-due support owed to obligees on all the obligor’s cases enforced by the Department is $500 or greater.

(c) Certification for Offset of Other Federal Payments. The Department will certify an obligor for offset of federal payments, other than federal income tax refunds or rebates, as follows:

1. Past-due support is $25 or greater; and

2. Past-due support has been owed for 30 days or more.

(d) The Department will not certify past-due support owed by an obligor that is otherwise subject to certification under paragraph (3)(b) if:

1. The Department is enforcing another state’s support order on the other state’s behalf because the obligor resides in Florida, and the obligor does not owe past-due support assigned to Florida;

2. A court order prohibits offset certification;

3. A court order provides that enforcement of past-due support is stayed, unless the order specifies that federal offset is permitted; or

4. The Department has received a confirmed bankruptcy plan for the obligor under Chapters 11, 12, or 13 of the United States Bankruptcy Code. Upon receiving a Chapter 11, 12, or 13 confirmed bankruptcy plan for an obligor, the Department will decertify the obligor’s past-due support from offset. The Department will refund to the obligor an offset the Department receives during the term of a Chapter 11, 12, or 13 confirmed bankruptcy plan.

(e) Notification of Offset. Once an offset occurs, the United States Department of Treasury notifies the obligor by regular mail that the Department of Treasury is disbursing the offset to the Department.

(f) Distribution of Offset.

1. Offsets of past-due support assigned to the state are deposited by the Department in the State Treasury. After past-due support assigned to the state is paid in full, any remaining past-due support collected by the Department is paid to the obligee as required by 42 USC 657(a)(1) and (a)(2)(B).

2. For past-due support not assigned to the state, the Department delays distribution of an offset from a joint federal income tax refund for a period not to exceed six months after the Department receives notice of the offset, as allowed by 42 USC 664(a)(3)(B) to allow the unobligated joint filer to claim the unobligated joint filer’s share of the refund before the offset is distributed. In that case, distribution is delayed until one of the following occurs:

a. The Department receives written verification from the United States Department of Treasury that the unobligated joint filer’s claim filed by the obligor’s spouse has been resolved; or

b. Six months after the Department receives notice of the offset.

3. The Department will distribute offsets of other federal payments not from a federal income tax refund or rebate within two business days after the receipt date.

(g) If the obligor is paying retroactive support as ordered, and the obligor is not delinquent in the payment of current support, past-due support, or retroactive support, the Department will not certify the retroactive support amount for offset. If the Department is notified after it has received an offset that the offset was for retroactive support only, the Department will refund the offset to the obligor if there is no delinquency.

(4) Offsets under Review by the Internal Revenue Service.

(a) When the Department receives an offset, and identifies it as being a potentially erroneous offset, the Department refers the offset to the federal Office of Child Support Enforcement for the Internal Revenue Service to review the offset. The Department uses the following criteria to identify offsets referred for Internal Revenue Service review:

1. The total amount of the offsets received for the obligor is $1,000 or more, and there are no reported wages for the obligor for the tax year;

2. The total amount of the offsets is 20 percent or more of the obligor’s wages reported for the tax year; or

3. The Internal Revenue Service has previously reversed an offset received from the obligor.

(b) Based on authorization from the federal Office of Child Support Enforcement in Dear Colleague Letter DCL-11-17 issued September 9, 2011, if the Internal Revenue Service is reviewing an offset as being potentially erroneous, the Department delays distribution of the offset until the Internal Revenue Service completes its review.

(c) After the Internal Revenue Service completes its review and notifies the Department the offset will not be reversed, the Department distributes the offset.

(d) If the Department is notified an offset will be reversed, the Department does not distribute the offset, except as provided in paragraph (4)(e).

(e) In accordance with 31 CFR 285.3(g) and (h), if within six months after the Department receives the offset, the United States Department of Treasury, Bureau of the Fiscal Service has not responded to the Department or reversed the offset, the Department will distribute the offset. If the offset is disbursed to the obligee and is subsequently reversed by Fiscal Service, the Department initiates a payment recovery action under Rule 12E-1.022, F.A.C.

(5) Passport Denial.

(a) The Department of Revenue will certify and report for passport denial obligors who owe more than $2,500 in support arrearages under subsection (2) of this rule as required by Section 409.2564(10), F.S. Passport denial includes denial of:

1. A new passport;

2. Renewal of a passport;

3. Replacement of a lost passport; and

4. The addition of pages to an existing passport.

(b) When the United States Department of State denies an obligor’s passport application due to the Department’s certification for passport denial, the United States Department of State sends the obligor a notice informing the obligor that the obligor is not eligible to receive a passport unless the Department withdraws its certification for passport denial.

(c) If an obligor needs a United States passport, the obligor must contact the Department at the address or telephone number provided in the notice mailed by the federal Office of Child Support Enforcement as outlined in subsection (6) of this rule or the telephone number provided in the United States Department of State’s denial notice. The obligor may also contact one of the Department’s local offices for an informal conference.

(d) After the Department submits certification for passport denial, the Department will withdraw its certification if:

1. The obligor receives federal Supplemental Security Income; or

2. A court order requires the Department to withdraw its certification.

(e) An obligor may ask the Department to withdraw its certification for passport denial in the following circumstances:

1. The obligor reduces the support arrearages owed on all the obligor’s cases to $2,500 or less.

2. The obligor provides documentation from a medical authority verifying a close relative’s death or medical emergency requiring the obligor to travel outside the United States.

3. The obligor has a job that requires travel outside the country. The employer must agree to income withholding of support from the obligor’s pay.

4. The obligor is active duty military and provides a letter signed by a field grade commanding officer (Major or Lieutenant Commander or above). The letter must state the obligor’s duties require a passport.

5. The obligor receives social security disability benefits and has no other income. The Department must have verification of the obligor’s benefits, such as a copy of an award letter from the Social Security Administration.

(f) The Department will consider the circumstances provided by the obligor under paragraph (5)(e), and the following factors when deciding whether to withdraw its certification for passport denial:

1. The obligor’s previous payment history;

2. The obligor’s current ability to pay;

3. The obligor’s capacity to pay a lump sum towards the past-due support;

4. The obligor’s ability to work if the obligor keeps the passport; and

5. The overall case history.

(g) Only the state that certifies an obligor for passport denial may withdraw the certification and restore the obligor’s passport eligibility. If a state other than Florida certified the obligor for passport denial, the obligor must contact the other state at the address or telephone number listed in the notice discussed in subsection (6) to ask about passport reinstatement.

(6) Notice to Obligor of Certification for Federal Offset Program and Passport Denial. The federal Office of Child Support Enforcement mails each obligor who is subject to offset under paragraph (3)(b) or (5)(a) a one-time pre-offset notice. Once the Department certifies the amount for offset and passport denial, the certification continues until the obligor pays the past-due support or support arrearage in full. The Department updates the amount certified weekly if there are changes in the amount of the obligor’s past-due support or support arrearage.

(7) Right to Informal Review and Administrative Hearing.

(a) If an obligor contacts the Department in response to the pre-offset notice in subsection (6), or within 20 days after the date of notice of offset from the United States Department of Treasury or notice of passport denial from the United States Department of State, the Department will review its records and any records submitted by the obligor and attempt to resolve the obligor’s concerns informally.

(b) If the Department cannot resolve the obligor’s concerns during the informal review, the Department will notify the obligor by regular mail at the obligor’s last known address using form CS-EF36A, Notice of Decision of Informal Conference for Federal Offset or Passport Denial. Form CS-EF36A (http://www.flrules.org/Gateway/reference.asp?No=Ref-09860) is incorporated by reference herein effective 09/18.

(c) If the Department does not resolve the obligor’s concerns through an informal review, the obligor may ask for an administrative hearing within 30 days after the date of the notice.

1. If the past-due support or support arrearage is based on a Florida order, the obligor may ask for an administrative hearing in Florida. The Department of Children and Families, Office of Appeal Hearings conducts this hearing as authorized by Section 120.80(7), F.S.

2. If the past-due support or support arrearage is based on an order entered in another state, the obligor may ask that a hearing be held either in Florida or in the state that issued the order. If the obligor asks for the hearing to be held in the issuing state, the Department will contact the state that issued the order and provide all necessary information within 10 days after receiving the obligor’s request. The state that issued the order will inform the obligor and obligee of the date, time, and place of the administrative hearing.

(d) If the state that issued the order or the Florida Department of Children and Families holds an administrative hearing and issues a final order in the obligor’s favor, the Department will inform the federal Office of Child Support Enforcement to remove the obligor’s certification or change the certification amount to show the past-due support or support arrearage amount pursuant to the final order. If the final order is issued in the Department’s favor, the certification stays in place and any change in the past-due support or support arrearage amount is updated as required by subsection (6). If the final order requires the Department to refund an offset to the obligor, the Department will refund the offset or appeal the final order.

(8) United States Secretary of the Treasury Full Collection Services. As allowed by 45 CFR 303.71, the Department may request the federal Office of Child Support Enforcement to certify past-due support to the United States Secretary of the Treasury for full collection services under the Internal Revenue Code, Title 26 United States Code. The following conditions must be met for a case to be eligible for certification to the Secretary of the Treasury for full collection services:

(a) There must be a support order;

(b) An arrearage owed under the support order must equal or exceed $750;

(c) All reasonable efforts through the Title IV-D agency’s own collection remedies must have been made to collect the arrearage;

(d) The parent or custodian of the child to whom support is owed must have completed an assignment of rights to support or an application for services;

(e) At least six months must have passed since the most recent request to the Secretary of the Treasury for full collection services on the case; and

(f) The Department has certified the case for the federal offset program under this rule.

History

• Rulemaking Authority 409.2557(3)(i), 409.2564(13) FS. Law Implemented 61.17, 409.2564 FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.011, Amended 1-23-03, 1-12-10, 9-17-18, 6-20-24.

Fla. Admin. Code R. 12E-1.015 Reciprocity Requests

History

• Rulemaking Authority 409.2557(3) FS. Law Implemented 88.1011(19)(b), 88.171 FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.012, Amended 5-9-13, Repealed 9-4-25.

Fla. Admin. Code R. 12E-1.016 Child Support Guidelines

History

• Rulemaking Authority 409.026 FS. Law Implemented 61.30 FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.013, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.017 Expedited Process

History

• Rulemaking Authority 409.026 FS. Law Implemented Chapter 86-220, Section 127, L.O.F. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.014, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.018 Liens

History

• Rulemaking Authority 409.2557(3)(i) FS. Law Implemented 319.24, 409.2575 FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.015, Repealed 9-8-26.

Fla. Admin. Code R. 12E-1.019 Judgments by Operation of Law

History

• Rulemaking Authority 409.026 FS. Law Implemented 61.14(6)(a), (6)(a)3. FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.016, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.020 Genetic Testing

History

• Rulemaking Authority 409.026 FS. Law Implemented 409.2554, 409.2567, 742.12 FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.017, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.021 Case Closure

(1) Cases are closed in accordance with federal regulation 45 CFR 303.11, (June 9, 2020), incorporated herein by reference, effective 10-1-20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-14347). A copy may be obtained by writing to the Florida Department of Revenue, Child Support Program, Attn: Rules Coordinator, P.O. Box 8030, Tallahassee, Florida 32314-8030.

(2) The IV-D agency must retain all records for all closed cases for a minimum of three years.

History

• Rulemaking Authority 409.2557(3)(q) FS. Law Implemented 409.2561 FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.018, Amended 6-9-22.

Fla. Admin. Code R. 12E-1.022 Overpayment Recovery

(1) For purposes of this rule:

(a) “Department” means the Department of Revenue or a contractor or a subcontractor when authorized by the Department of Revenue.

(b) “Overpayment” means the amount of a disbursement that is received by an obligee in a Title IV-D case that the obligee is not entitled to receive. The term includes, but is not limited to, a disbursement resulting from fraud or mistake, a disbursement made based on a non-sufficient funds instrument or electronic funds transfer, and a disbursement made from a collection that was partially or fully reversed by the Internal Revenue Service.

(2) When an obligee receives an overpayment for a period during which the obligee was receiving temporary cash assistance, the Department shall report the amount of the overpayment to the Department of Children and Family Services.

(3) When an obligee receives an overpayment for a period during which the obligee was not receiving cash assistance, the Department shall send the obligee a written notice of overpayment by regular mail to the obligee’s last known address. The written notice of overpayment must state:

(a) The amount of the overpayment;

(b) The date of the overpayment;

(c) That the obligee is required to repay the overpayment;

(d) That the obligee may repay the overpayment in one lump sum;

(e) That the obligee may sign a repayment agreement to withhold a percentage of future collections or repay in installments;

(f) That recovery of the overpayment will be pursued whether the obligee’s child support case is open or closed; and,

(g) That if the obligee does not repay the overpayment, sign a repayment agreement, or respond to the Department in writing, the Department shall withhold 25% of future collections received until an overpayment has been repaid.

(4) When an obligee has agreed in writing to repay overpayments by withholding future collections received by the Department that would otherwise be disbursed to the obligee, the Department shall send the obligee a written notice of overpayment in compliance with subsection (3). The written notice of overpayment must also state:

(a) That the obligee has previously agreed in writing to withholding future collections to repay the overpayment;

(b) That the obligee must respond to the Department in writing within 60 days from the date of the written notice of overpayment;

(c) The method by which the obligee can request a reconsideration as provided by Rule 12E-1.006, F.A.C., Request for Reconsideration;

(d) That if the obligee makes a timely request for reconsideration, no further collection action will be taken until the reconsideration process is concluded;

(e) That if an overpayment is established when the reconsideration process is concluded, and the obligee does not repay the overpayment, sign a repayment agreement, or respond to the Department in writing, the Department shall attempt to recover the overpayment by withholding future collections or by pursuing other collection actions or legal remedies to recover the overpayment from the obligee; and,

(f) That if the obligee is not satisfied with the reconsideration decision, the obligee may request an administrative hearing as provided by subsection 12E-1.006(10), F.A.C., Request for Reconsideration.

(5) When an obligee has not agreed in writing to repay overpayments by withholding future collections received by the Department that would otherwise be disbursed to the obligee, the department shall send the obligee a written notice of overpayment in compliance with subsection (3).

(a) The first written notice of overpayment must also state:

1. That the obligee must respond to the Department in writing within 20 days from the date of the written notice of overpayment;

2. The method by which the obligee can request a reconsideration as provided by Rule 12E-1.006, F.A.C., Request for Reconsideration;

3. That if the obligee makes a timely request for reconsideration, no further collection action will be taken until the reconsideration process is concluded;

4. That if an overpayment is established when the reconsideration process is concluded, and the obligee does not repay the overpayment, sign a repayment agreement, or respond to the Department in writing, the Department shall attempt to recover the overpayment by withholding future collections or by pursuing other collection actions or legal remedies to recover the overpayment from the obligee; and,

5. That if the obligee is not satisfied with the reconsideration decision, the obligee may request an administrative hearing as provided by subsection 12E-1.006(10), F.A.C., Request for Reconsideration.

(b) If the obligee does not respond to the first written notice of overpayment sent pursuant to paragraph (5)(a), the department shall send the obligee a second written notice of overpayment in compliance with subsection (3). The second written notice of overpayment must also state:

1. The date of the first written notice of overpayment;

2. That this is a second written notice of overpayment; and,

3. That the obligee must respond to the Department in writing within 20 days from the date of the second written notice of overpayment.

(c) If the obligee does not respond to the second written notice of overpayment sent pursuant to paragraph (5)(b), the Department shall send the obligee a third and final written notice of overpayment in compliance with subsection (3). The third and final written notice of overpayment must also state:

1. The dates of the first and second written notices of overpayment;

2. That this is the third and final written notice of overpayment that will be sent;

3. That the obligee must respond to the department in writing within 20 days from the date of the third and final written notice of overpayment; and,

4. That the Department shall pursue other collection actions or legal remedies to recover the overpayment from the obligee.

(6) The Department shall provide a repayment agreement form with each written notice of overpayment that is sent to the obligee. The obligee may use the repayment agreement form to respond to the department in writing.

(7) The obligee may request to sign a repayment agreement to repay the overpayment in installments. Upon request and after full disclosure by the obligee of available income and resources, the Department shall agree to a repayment agreement with the obligee that is reasonably related to the obligee’s current ability to pay.

(8) The Department shall withhold 25% of future collections received until an overpayment has been repaid if the obligee does not respond to the written notices sent pursuant to subsection (4) or paragraph (5)(c).

(9) Amounts withheld from future collections received by the Department that would otherwise be disbursed to the obligee shall be applied toward the overpayment until it has been repaid. The remaining amount of each collection will be disbursed as required by Section 409.2558(1), F.S.

History

• Rulemaking Authority 409.2557(3)(q), 409.2558(7), 409.2558(9), 409.2564(13) FS. Law Implemented 409.2558(7), 409.2564(12)(b) FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.019, Amended 10-22-00, 7-8-03.

Fla. Admin. Code R. 12E-1.023 Suspension of Driver License; Suspension of Motor Vehicle Registration

(1) Introduction. The purpose of driver license suspension is to obtain compliance with a support order, subpoena, order to appear, order to show cause, order to appear for genetic testing, or similar order.

(2) Definition. For purposes of this rule “delinquency” means the total amount of support that has come due and is unpaid pursuant to the payment schedule set forth in the support order.

(3) Suspension Criteria.

(a) The Department is authorized pursuant to Section 61.13016, F.S., to initiate a proceeding for the suspension of an obligor’s driver license and the registration of all motor vehicles solely owned by the obligor when:

1. The obligor is 15 days delinquent in making a support payment, or

2. The obligor fails to comply with a subpoena, order to appear, order to show cause, or

similar order relating to paternity or support proceedings.

(b) The Department shall initiate a proceeding to suspend the driver license and the registration of all motor vehicles solely owned by the obligor for non-payment of support in an obligor’s case if the criteria in subparagraph (3)(a)1., and the following criteria are met, unless any of the factors listed in paragraph (3)(c), are present:

1. The Department has a valid mailing or residential address for the obligor,

2. The delinquency in the case is:

a. Equal to or greater than $400, or

b. Greater than $100 and less than $400, and:

(I) For a weekly support obligation, the Department has not received and posted a payment in the past 10 days or longer,

(II) For a bi-weekly support obligation, the Department has not received and posted a payment in the past 17 days or longer,

(III) For a semi-monthly support obligation, the Department has not received and posted a payment in the past 18 days or longer,

(IV) For a monthly support obligation, the Department has not received and posted a payment in the past 34 days or longer,

(V) For a quarterly support obligation, the Department has not received and posted a payment in the past 95 days or longer,

(VI) For a semi-annual support obligation, the Department has not received and posted a payment in the past 186 days or longer,

(VII) For an annual support obligation, the Department has not received and posted a payment in the past 368 days or longer,

(VIII) For a one-time support obligation, the Department has not received and posted a payment in the past 34 days or longer,

(c) The Department may not initiate a proceeding to suspend an obligor’s driver license or motor vehicle registration for non-payment of support if any of the following factors are present:

1. The obligor receives temporary cash assistance,

2. The obligor receives Supplemental Security Income benefits,

3. The obligor is complying with a written agreement the obligor entered with the Department,

4. The obligor receives reemployment assistance (formerly known as unemployment compensation),

5. The Department has initiated an income deduction notice to an employer or other payor of income during the employer’s or payor’s most recent pay frequency (e.g., weekly, monthly), if known, or during the support order obligation frequency (e.g., weekly, monthly),

6. The obligor is paying support pursuant to an income deduction notice,

7. The Department has placed an override on driver license suspension actions in the case, for example, when a court has prohibited driver license suspension in the case,

8. The Department has any of the following compliance actions pending in the case:

a. A past-due notice sent to the obligor,

b. An appointment letter sent to the obligor,

c. An action to report the obligor’s overdue support balance to consumer reporting agencies,

d. An action to suspend the obligor’s business, professional, occupational, or recreational license or certification,

e. A legal action against the obligor for contempt of court or to establish a repayment on past-due support,

f. An action to place a lien on the obligor’s motor vehicle(s) or vessel(s),

g. A referral of the obligor’s case to another state’s Title IV-D agency to take compliance actions against the obligor,

9. The obligor is disabled and incapable of self-support,

10. The obligor receives benefits under the federal Social Security Disability Insurance program, or

11. The obligor is making payments in accordance with a confirmed bankruptcy plan under Chapter 11, 12, or 13 of the U.S. Bankruptcy Code,

(4) Notice to Obligor of Intent to Suspend Driver License; Notice to Suspend Motor Vehicle Registration.

(a) In accordance with Section 61.13016(1), F.S., the Department sends to the obligor by regular mail a Notice of Intent to Suspend Driver License and Motor Vehicle Registration(s), Form CS-EF55, incorporated herein by reference, effective 11/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15989), The notice is mailed to the obligor’s address of record with the Department of Highway Safety and Motor Vehicles.

(b) In addition to the notice required by paragraph (4)(a), if the Department has information that using another address is more likely to result in actual notice to the obligor, the Department shall mail the notice to the obligor at that address.

(c) Service of the notice is complete upon mailing.

(5) Termination of Driver License Suspension Process; Termination of Motor Vehicle Registration Suspension Process. After the Department has provided notice to the obligor of its intent to suspend the obligor’s driver license and motor vehicle registration(s), but before the Department has notified the Department of Highway Safety and Motor Vehicles to suspend, the Department shall terminate a pending suspension action if the obligor satisfies any of the conditions in Section 61.13016(3), F.S. The Department shall also terminate a pending suspension action as follows:

(a) If the suspension action in a case was initiated due to non-payment of support, the Department will terminate the action when:

1. The Department closes the case,

2. An income deduction payment is received:

a. During the past seven days for a weekly obligation,

b. During the past 14 days for a bi-weekly obligation,

c. During the past 15 days for a semi-monthly obligation,

d. During the past 31 days for a monthly obligation,

e. During the past 92 days for a quarterly obligation,

f. During the past 183 days for a semi-annual obligation,

g. During the past 365 days for an annual obligation,

(b) If the suspension action in a case was initiated due to a failure to comply with a subpoena, order to appear, order to show cause, order to appear for genetic testing, or similar order, the Department shall terminate the action when:

1. The Department closes the case, or

2. A court orders the Department to terminate the action.

(6) Written Agreements for Payment of Past-Due Support.

(a) Rule 12E-1.027, F.A.C., governs the requirements and procedures for entering into a written agreement with the obligor for payment of past-due support.

(b) If the obligor defaults on a payment required by the written agreement, the Department shall, without further notice to the obligor, notify the Department of Highway Safety and Motor Vehicles to suspend the obligor’s license and registration(s), as provided by the terms of the written agreement, unless one of the circumstances listed in paragraph (5)(a), exists.

(7) Reinstatement of the Driver License; Reinstatement of Motor Vehicle Registration.

(a) The Department shall notify the Department of Highway Safety and Motor Vehicles to reinstate an obligor’s driver license and motor vehicle registration(s) in a case as follows:

1. If the suspension action in a case is initiated due to non-payment of support, the Department shall notify the Department of Highway Safety and Motor Vehicles to reinstate the obligor’s driver license and motor vehicle registration(s) when:

a. The Department closes the case,

b. An income deduction payment is received,

c. The obligor pays the delinquency in full,

d. The obligor enters into a written agreement with the Department,

e. The obligor demonstrates that he or she receives reemployment assistance,

f. The obligor demonstrates that he or she is disabled and incapable of self-support,

g. The obligor receives Supplemental Security Income benefits,

h. The obligor receives benefits under the federal Social Security Disability Insurance program,

i. The obligor receives temporary cash assistance,

j. The obligor is making payments in accordance with a confirmed bankruptcy plan under Chapter 11, 12, or 13 of the U.S. Bankruptcy Code,

k. A court orders the reinstatement of the license and motor vehicle registration, or

l. The Department requests the suspension in error.

2. If the suspension action in a case was initiated due to a failure to comply with a subpoena, order to appear, order to show cause, order to appear for genetic testing, or similar order, the Department shall notify the Department of Highway Safety and Motor Vehicles to reinstate the obligor’s driver license and motor vehicle registration(s) when:

a. The obligor complies with the subpoena or order,

b. A court orders the reinstatement of the license and motor vehicle registration,

c. The Department requests the suspension in error, or

d. The Department closes the case.

(b) The Department will notify the Department of Highway Safety and Motor Vehicles to reinstate a driver license or motor vehicle registration(s) when, based on supporting documentation:

1. The obligor is unable to comply with a written agreement or pay the total delinquency;

2. The obligor is participating in a job training class;

3. The obligor shows evidence of employment;

4. The child(ren) are no longer in the obligee’s household;

5. Child support payments are being made;

6. Earnings statements show deductions for child support;

7. The obligor has an existing support order the Department did not know about; or

8. The obligor documents a hardship claim.

(8) Procedure for Reinstatement. When the Department notifies the Department of Highway Safety and Motor Vehicles to reinstate the driver license and motor vehicle registration, the Department shall also notify the obligor that the Department is no longer pursuing suspension action, and the obligor’s driver license and motor vehicle registration(s) is eligible for reinstatement upon the obligor paying applicable fees owed to the Department of Highway Safety and Motor Vehicles. The Department uses Form CS-EF57, Driver License/Vehicle Registration Reinstatement Notice, to notify obligors their driver license and motor vehicle registration are eligible for reinstatement. Form CS-EF57, Driver License/Vehicle Registration Reinstatement Notice, (Effective 09/19/2017) (http://www.flrules.org/Gateway/reference.asp?No=Ref-08621), is hereby incorporated by reference in this rule.

History

• Rulemaking Authority 409.2557(3)(i) FS. Law Implemented 61.13016, 322.058 FS. History–New 7-20-94, Formerly 10C-25.020, Amended 3-6-02, 9-19-17, 3-25-20, 11-12-20, 11-21-21, 6-9-22, 9-14-23, 11-16-23.

Fla. Admin. Code R. 12E-1.024 Business or Professional License or Certification Suspension or Application Denial

History

• Rulemaking Authority 409.026 FS. Law Implemented 61.13015, 231.097, 231.28, 409.2598, 455.203, 559.79 FS. History–New 7-20-94, Formerly 10C-25.021, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.025 Procurement of Legal Services

History

• Rulemaking Authority 120.535, 409.026 FS. Law Implemented 409.2554, 409.2557 FS. History–New 7-20-94, Formerly 10C-25.022, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.026 Central Depository Electronic Transmission of Information

History

• Rulemaking Authority 409.026 FS. Law Implemented 61.181, 61.1811, 409.2557 FS. History–New 7-20-94, Formerly 10C-25.023, Repealed 5-9-13.

Fla. Admin. Code R. 12E-1.027 Written Agreements for Payment of Past-Due Support

(1) Scope. This rule establishes procedures for the Department to settle enforcement actions in child support cases by entering into written agreements with support obligors for the payment of past-due support. The Department may enter into such written agreements in accordance with this rule.

(2) Definitions.

(a) “Authorized representative” means a representative of the Department’s Child Support Program authorized to complete and sign a written agreement.

(b) “Past-due support” means the amount of support determined under a support order established under state law for support and maintenance of a child, or of a child and the parent with whom the child is living, which has not been paid.

(c) “Written agreement” or “payment agreement” means an agreement entered into by the Department and an obligor that sets the terms for payment of past-due support.

(3) Requirements for Entering into Written Agreements for Payment of Past-Due Support.

(a) The Department may enter into an agreement with an obligor for payment of past-due support if, after considering the factors in paragraph (b), the Department agrees that the obligor is currently unable to satisfy the past-due support by an immediate lump sum payment in full.

(b) The Department shall consider the following factors in determining whether to enter into an agreement for payment of past due support, and shall require documentation when necessary:

1. The obligor’s current income and assets,

2. The obligor’s employment history, current employment and capacity for work,

3. The obligor’s medically verifiable disability, if any,

4. The obligor’s ability to borrow money,

5. The obligor’s support payment history,

6. The obligor’s ability to meet a payment schedule based on projected cash flow; and,

7. The length of time required to pay off the past-due support under a payment schedule.

The Department may consider other factors and circumstances based on the particular facts of a case.

(c) The Department may renegotiate a written agreement for payment of past-due support. When renegotiating, the department shall consider the obligor’s support payment history during the term of the initial agreement, and the factors in paragraph (b), above.

(4) Form and Completion of Written Agreements.

(a) The Department uses the Payment Agreement for Past-Due Support (CS-EF91) form to enter into a written agreement with an obligor. Form CS-EF91, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15852), is incorporated herein by reference effective 09/23.

(b) A written agreement becomes effective when completed and signed by both the Department and the obligor, or the obligor’s representative. After execution of a written agreement, the Department provides the obligor, or the obligor’s representative a copy of the agreement.

History

• Rulemaking Authority 409.2557(3)(f), 409.2564(13) FS. Law Implemented 61.13016, 409.2561(1), (2)(b), (3), 409.2564(4), 409.2598 FS. History–New 3-6-02, Amended 10-26-22, 9-14-23, Technical Change 3-18-26.

Fla. Admin. Code R. 12E-1.028 Garnishment by Levy

(1) Introduction. Section 409.25656, F.S., authorizes the Department to levy against the personal property of obligors who owe past-due support.

(2) Definitions. For purposes of this rule:

(a) “Account” includes demand deposits, time deposits, checking or negotiable withdrawal orders, money market funds, mutual funds and any other intangible property subject to garnishment under Florida law.

(b) “Current earnings” means earnings received by an obligor from any source:

1. Within 30-days preceding the date a Notice to Freeze is served on the custodian; and,

2. At any time during the period when a Notice to Freeze is in effect.

(c) “Custodian” means a person other than the obligor, including a business entity, who has control or possession of any personal property owned by, or owed to, an obligor.

(d) “Freeze” means a hold placed by a custodian on an obligor’s personal property pursuant to a Notice to Freeze that prevents transfer or other disposition of the property from the time the notice is served on the custodian until the Notice to Freeze is released by the Department.

(e) “Levy action” means the garnishment procedure authorized by Section 409.25656, F.S., beginning with a Notice to Freeze issued by the Department, and ending with termination of the Notice to Freeze or the Department’s allocation of property received from the custodian when the Department issues a Notice of Levy.

(f) “Personal property” includes assets, credits, wages or other personal property owned by an obligor, or debts owed to an obligor, which are in the possession or control of a custodian.

(g) “Thrift Savings Plan” or “TSP” means a retirement savings and investment plan for Federal employees and military service members established by the Federal Employees' Retirement System Act of 1986.

(3) Case Selection.

(a) The Department intiates a levy action when:

1. The amount of past-due or overdue support is greater than $600 and greater than four times the total monthly support obligation, which includes current support and any payment on arrears;

2. Less than 75% of the total monthly support obligation was paid in the three-month period immediately preceding the Notice to Freeze;

3. The past-due or overdue support is owed under a Florida support order, or a support order issued by another state or foreign country and registered for enforcement in Florida; and

4. The support order is at least six months old.

(b) The Department does not intiate a levy action when:

1. The obligor receives temporary cash assistance, as defined by Section 414.0252(12), F.S.;

2. The obligor receives Federal Supplemental Security Income (SSI) benefits;

3. The obligor has filed for bankruptcy under Chapter 7, 11, 12 or 13 of the U.S. Bankruptcy Code;

4. Support payments have been paid by income withholding or reemployment assistance benefits (unemployment) within the past 31 days;

5. There is a pending levy action at the same financial institution;

6. A levy payment of more than $100 has been received in the past six months; or

7. The obligor is in compliance with a written agreement entered into under Rule 12E-1.027, F.A.C.

(4) Notice to Freeze.

(a) After considering the factors and conditions in subsection (3), the Department sends a Notice to Freeze (CS-EF121) to the custodian of the obligor’s personal property by certified mail, return receipt requested. The Notice to Freeze (CS-EF121) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11824). If the account is a Thrift Savings Plan, the Department sends the custodian a Thrift Savings Plan Income Withholding Order For State Agencies (TSP-CS-1) and Thrift Savings Plan Cover Sheet (CS-EF287). The Thrift Savings Plan Income Withholding Order For State Agencies (TSP-CS-1) 12/2022 is incorporated herein by reference, effective 09/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15853). The Department will not initiate a levy action against an obligor’s Thrift Savings Plan account or accounts unless the combined account balance is equal to or greater than $1500.

(b) Upon receiving the Notice to Freeze, the custodian may not transfer or dispose of the obligor’s personal property, up to the amount of past-due or overdue support stated in the notice, until the freeze is terminated.

(c) If the obligor contests the levy by requesting an administrative hearing in writing, or by filing a petition in circuit court within 21 days after receipt of the notice, the Department shall notify the custodian. The freeze remains in effect until final disposition and the custodian may not transfer or dispose of the property until further notice from the Department.

(d) When the obligor does not contest the levy, the freeze terminates at the earliest of the following:

1. 60 days after the custodian’s receipt of the Notice to Freeze;

2. When the Department consents to a transfer or disposition of the property; or

3. When the custodian receives a Notice of Levy from the Department.

(5) Custodian’s Response to Notice.

(a) The custodian must contact the Department within five days after receipt of the Notice to Freeze or Thrift Savings Plan Income Withholding Order For State Agencies and inform the Department of personal property in the custodian’s possession or control, including the type of property, its value or approximate value, and its location. If the custodian does not contact the Department, the Department mails the custodian a Notice to Freeze Second Request for Information (CS-EF280). The Notice to Freeze Second Request for Information (CS-EF280) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11836).

(6) Notice of Intent to Levy.

(a) The Department sends a Notice of Intent to Levy (CS-EF122) by certified mail, return receipt requested to the obligor providing notice of its intent to levy on the obligor’s personal property. The Notice of Intent to Levy (CS-EF122) is incorporated herein by reference, effective 07/22, (http://www.flrules.org/Gateway/reference.asp?No=Ref-14349).

(b) The Department may serve the obligor in person with a Notice of Intent to Levy. When the Department serves the notice in person, the Department completes the Affidavit of Service by Hand Delivery (CS-EF128), which constitutes proof of receipt of notice by the obligor. The Affidavit of Service by Hand Delivery (CS-EF128) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11830).

(7) Right to Hearing.

(a) The obligor and any joint owner may contest the intended levy within 21 days of receipt of the notice by requesting an administrative hearing in writing, or by filing a petition in circuit court.

(b) The obligor and any joint owner may request an informal conference with the Department to resolve disputed matters concerning the levy. Rights are not adjudicated at an informal conference and the right to contest the intended levy by requesting a formal or informal hearing is not affected by requesting or participating in an informal conference. A request for informal conference does not extend the 21 days allowed for contesting the intended levy. Mediation pursuant to Section 120.573, F.S., is not available as an alternative remedy.

(c) If the obligor requests an administrative hearing in writing, or files a petition in circuit court within 21 days after receipt of the notice, the Department sends the custodian an Extension of Freeze (CS-EF125) to extend the freeze until the contest is resolved. The Extension of Freeze (CS-EF125) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11828). If the levy action is for a Thrift Savings Plan account, the Department sends the custodian a Thrift Savings Plan Income Withholding Order For State Agencies (TSP-CS-1) to indicate a dispute is pending.

(d) The Department may not proceed in timely, contested levy actions involving amounts less than $50.00. The Department sends a Release of Freeze/Levy (CS-EF129) by regular mail to notify the obligor the Department is withdrawing the levy action and releasing the freeze. The Department issues a release to the financial institution or a refund to the obligor. The Release of Freeze/Levy (CS-EF129) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11831).

(8) Release of Freeze.

(a) In the following circumstances, the Department releases a Notice to Freeze, in full or in part, as appropriate:

1. All or part of the personal property belongs exclusively to a joint owner;

2. The Notice to Freeze was issued in error or the amount of past-due or overdue support is less than the amount stated in the Notice to Freeze;

3. All or part of the personal property constitutes current earnings exempt from levy in accordance with subsection (11) of this rule;

4. A writ of attachment, writ of garnishment, or writ of execution involving the same personal property is in effect when the Notice to Freeze becomes effective;

5. The obligor has filed bankruptcy under Chapter 7, 11, 12 or 13 of the U.S. Bankruptcy Code;

6. There is an interest in the personal property that is superior to the Department's interest; or

7. There is a final order that requries the Department to release the Notice to Freeze.

(b) If a levy on an account or securities is not appropriate, the Department sends the custodian a Full/Partial Release of Freeze (CS-EF124). The Full/Partial Release of Freeze (CS-EF124) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11827). If the levy action is for a Thrift Savings Plan account, the Department sends the custodian a Thrift Savings Plan Income Withholding Order For State Agencies (TSP-CS-1) to vacate the action.

(c) If a partial levy is appropriate, the Department sends the custodian a Notice of Special Account(s) Release (CS-EF132). The Notice of Special Account(s) Release (CS-EF132) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11834). If the levy action is for a Thrift Savings Plan account,, the Department sends the custodian a Thrift Savings Plan Income Withholding Order For State Agencies (TSP-CS-1) to modify the action.

(9) Consent to Levy.

(a) In accordance with Section 409.25656(7)(d), F.S., if an obligor who receives a Notice of Intent to Levy consents to the levy in writing, the Department shall levy within the time permitted by paragraph (10)(a) of this rule.

(b) To consent to levy, the obligor or joint owner must complete a Consent to Levy (CS-EF130). The Consent to Levy (CS-EF130) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11832).

(c) If the obligor or a joint owner previously filed an action contesting the intended levy, the action to contest must be withdrawn or otherwise disposed of before the Department accepts the Consent to Levy.

(d) Upon receiving a signed and approved Consent to Levy, the Department shall levy on the property.

(10) Notice of Levy.

(a) Unless the obligor and each joint owner, if any, consents to a levy as provided in subsection (9), the Department may send a Notice of Levy (CS-EF123) to the custodian after the latest of the following time periods:

1. Thirty days after the date the custodian receives the Notice to Freeze;

2. Thirty days after the earlier of the date the Department mails or hand delivers the Notice of Intent to Levy to the obligor in accordance with subsection (6); or

3. If the intended levy is contested in accordance with Sections 409.25656(8) and (9), F.S., the date of a final order authorizing the Department to proceed.

(b) If the custodian is holding securities, the Department sends the obligor a Notice of Levy on Securities (CS-EF131) by regular mail. The notice informs the obligor of a seven-day period during which the obligor may instruct the financial institution which securities to sell. The Notice of Levy on Securities (CS-EF131) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11833).

(c) The Department sends the custodian a Notice of Levy (CS-EF123) by certified mail, return receipt requested. The Notice of Levy (CS-EF123) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11826).

(d) The custodian is required to transfer the obligor’s personal property to the Department, or pay the Department the amount owed by the obligor, up to the amount of past-due or overdue support stated in the notice, and provide with transmittal of any personal property or payment, the obligor’s name, social security number and the control number referenced in the Notice of Levy.

(e) If the custodian does not pay the Department the amount due within 20 days after receipt of the Notice of Levy (CS-EF123), or within 60 days after receipt of the Thrift Savings Plan Income Withholding Order For State Agencies (TSP-CS-1), the Department mails the custodian a Request for Compliance with Notice of Levy (CS-EF146). The Request for Compliance with Notice of Levy (CS-EF146) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11835).

(11) Limits on Levying Against Current Earnings.

(a) If the Department determines the freeze on an obligor’s account in a financial institution includes the obligor’s current earnings as defined in paragraph (2)(b), the Department may not levy from the current earnings an amount that is greater than the limits on garnishment for child support provided by the Consumer Credit Protection Act (CCPA), 15 U.S.C. 1673(b).

(b) Funds in an account that are not current earnings are not subject to the limits in paragraph (11)(a).

(c) An obligor who claims the Department has frozen exempt earnings must provide the Department with the following proof concerning the current earnings and the account:

1. The pay date or dates of the current earnings received by the obligor;

2. The gross amount of the current earnings;

3. The amount of mandatory deductions from current earnings for state, federal and local taxes; Social Security taxes; and Medicare taxes;

4. The net amount of the current earnings;

5. The pay interval for the current earnings, such as weekly, bi-weekly or monthly;

6. The amount of current earnings deposited in the account and the deposit date or dates; and 7. The dates and amounts of all debits and withdrawals from the account, from the first date of deposit of current earnings until the date of the freeze.

(d) Upon receipt of the proof required by paragraph (11)(c), the Department shall determine if the amount that has been frozen includes exempt earnings. Upon determining that exempt earnings have been frozen, the Department shall notify the financial institution to release the exempt portion of current earnings from the Notice to Freeze.

(12) Levy Actions in Two or More Cases.

(a) If an obligor has two or more cases that meet the criteria in subsection (3), the Department includes all of the cases in a single levy action. The past-due or overdue support amount owed in each case is added together and the total amount owed for all cases appears on notices issued in accordance with this rule.

(b) Upon receipt from the custodian of proceeds from the obligor’s personal property, the Department allocates the proceeds among the obligor’s cases pro rata, in the same proportion as the total amount of past-due or overdue support owed in each case as of the date the Notice of Levy was issued.

(13) FAST Levy; Electronic Notification and Data Exchange.

(a) Financial institutions may elect to participate in the Federally Assisted State Transmitted (FAST) Levy service sponsored by the federal Office of Child Support Enforcement. With FAST Levy, the Department notifies participating financial institutions of pending levy actions by periodically transmitting an electronic data file to the federal Office of Child Support Enforcement, instead of serving the financial institution with notices by registered mail for each obligor. The financial institution receives the Department’s data by accessing the secure website maintained by the federal office and processes the Department’s data to determine the customer accounts levied upon and the amounts of the levies. The financial institution provides the data to the FAST Levy central site, which generates a response file to the Department. Using FAST Levy, participating financial institutions are able to process levy notices from multiple states in a standardized, automated manner.

(b) To learn more about Fast Levy, financial institutions may contact the federal Office of Child Support Enforcement at FASTLevy@acf.hhs.gov. The federal Agreement to Receive Electronic Lien/Levy Notices (FAST Levy Financial Institution Profile Form) is incorporated herein by reference, effective 10/21 (http://www.flrules.org/Gateway/reference.asp?No=Ref-13851). Financial institutions that elect to participate in FAST Levy must enter into a memorandum of understanding with the Department that is the same or substantially similar to Memorandum of Understanding, Child Support Garnishment Actions and Electronic Data Exchange (CS-EF314), incorporated herein by reference, effective 10/21 (http://www.flrules.org/Gateway/reference.asp?No=Ref-13852).

(14) Levy Actions Against Jointly Owned Property.

(a) When a levy action concerns jointly owned property, the Department provides the same notice and opportunity for a hearing to a joint owner as the Department provides to the obligor.

1. The Notice of Intent to Levy informs a joint owner that the joint owner has the same right to contest the levy as the obligor.

2. The joint owner may contest the levy action in the same manner as the obligor, as provided by Section 409.25656(8), F.S., within 21 days after receipt of the Notice of Intent to Levy.

(b) If the Department is informed that the joint owner has not received the Notice of Intent to Levy provided to the obligor, the Department shall serve the joint owner in person, or send the individual a Notice to Joint Owner Intent to Levy (CS-EF127), and a copy of the Notice of Intent to Levy previously served on the obligor by certified mail, return receipt requested. The joint owner may contest the levy within 21 days after the date of receipt of the Notice to Joint Owner Intent to Levy. The Notice to Joint Owner Intent to Levy (CS-EF127) is incorporated herein by reference, effective 04/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-11829).

(c) The Department may not levy upon the portion of the obligor’s jointly owned personal property that the Department determines belongs exclusively to a joint owner. Upon determining that a portion of the personal property belongs exclusively to the joint owner, the Department shall release that portion of the property from the Notice to Freeze.

1. The obligor and joint owner have the burden of proving that property subject to a Notice to Freeze belongs exclusively to the joint owner and must provide proof to the Department, which may include the following:

a. Documentation of deposits made by the joint owner;

b. Documentation that deposits were exclusively from the joint owner’s funds;

c. Account statements that correspond to the time period of the joint owner’s deposits; or

d. Any other documentation that proves the personal property belongs exclusively to the joint owner.

2. If the obligor and joint owner do not provide proof in accordance with subparagraph 1., the Department shall deny the claim.

(d) An agreement between the Department and the obligor and joint owner to partially release a Notice to Freeze on jointly owned property must be in writing and fully executed by all parties to the agreement.

History

• Rulemaking Authority 409.2557(3)(i), 409.25656(11) FS. Law Implemented 409.25656 FS. History–New 4-3-02, Amended 4-16-20, 11-12-20, 11-21-21, 6-9-22, 9-14-23, 9-8-26.

Fla. Admin. Code R. 12E-1.029 Financial Institution Data Matches

(1) Procedures for Entering into Agreements With Financial Institutions.

(a) The Department sends an Agreement for Financial Institution Data Matching (Form CS-EF134) (http://www.flrules.org/Gateway/reference.asp?No=Ref-15854), incorporated herein by reference, effective 09/23, for the operation of the data match system described in Section 409.25657(2), F.S., to each financial institution doing business in Florida meeting the definition of a financial institution in Section 409.25657(1)(a), F.S., that has not elected to participate in the Federal Office of Child Support Services national data match process specified in paragraph (c).

(b) The financial institution’s electronic files containing data match records must be prepared according to the specifications prescribed by the Federal Office of Child Support Services Multistate Financial Institution Data Match Specifications Handbook, Version 3.0, December 30, 2020, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15856), incorporated herein by reference, effective 09/23. The Department will maintain the confidentiality of information exchanged as required by section 409.2479(1), F.S., and 45 C.F.R. § 303.21 (10-1-21) (http://www.flrules.org/Gateway/reference.asp?No=Ref-15855), incorporated herein by reference, effective 09/23. Members of the public may obtain copies of the Multistate Financial Institution Data Match Specifications Handbook and 45 C.F.R. § 303.21, without cost, by writing to the Florida Department of Revenue, Mail Stop 2-4464, 5050 West Tennessee Street, Tallahassee, Florida 32399.

(c) The Department has designated the Federal Office of Child Support Enforcement as its agent authorized to enter into operational agreements for data matching, on behalf of the Department, with financial institutions doing business in two or more states electing to participate in the Federal Office of Child Support Enforcement’s national data match process. The authorization only extends to agreements entered into with financial institutions doing business in this state and excludes the authority to negotiate fees to be paid to financial institutions for the costs of participating in the data match.

(2) Selecting Cases for Data Matching. The Department shall include the following cases in the data match system provided by Section 409.25657(2), F.S.:

(a) Temporary cash assistance cases in which the amount of past due support is equal to or greater than $150;

(b) Non-temporary cash assistance cases in which the amount of past due support is equal to or greater than $500.

(3) Fees for Conducting Data Matches. If in a fully executed Agreement for Financial Institution Data Matching (CS-EF134) a financial institution elects to receive fees for its services, the Department will pay the applicable fees in the amounts specified, subject to the terms and conditions as stated in the Agreement. Fees are authorized only for financial institutions doing business in Florida.

History

• Rulemaking Authority 409.2557(3)(i), 409.25657(6) FS. Law Implemented 409.25657 FS. History–New 1-23-03, Amended 4-5-16, 3-25-20, 9-14-23.

Fla. Admin. Code R. 12E-1.030 Administrative Establishment of Child Support Obligations

(1) Introduction. Section 409.2563, F.S., authorizes the Department to administratively establish child support obligations when it is providing services under Title IV-D of the Social Security Act.

(2) Definitions. For purposes of this rule:

(a) “Address of record” means the address to which all administrative proposed orders, final orders, and other notices are mailed. The address of record is established as the active mailing or residential address maintained for the party by the Department that is listed on the initial notice that is served on the respondent. If the party provides a new address in writing after service of the initial notice, the new address is designated the address of record and all subsequent documents associated with the administrative proceeding action will be mailed to that address.

(b) “Administrative Support Order,” as defined by Section 409.2563(1)(a) F.S., is also referred to as “Final Administrative Support Order,” or “Final Order” and may include payment of noncovered medical expenses.

(c) “Amended Proposed Administrative Support Order,” or “Amended Proposed Order” is a modified Proposed Order issued by the Department to correct an error or reflect new information that changes the terms of the original or subsequent Proposed Order.

(d) “Emancipated” means the status of a minor child who has become an adult on reaching 18 years of age, by order of the court, by marriage, or by other means provided by law.

(e) “Income deduction order” means an administrative final order rendered by the Department directing an employer or other payor of income to deduct support payments from the income of a parent who is ordered to pay support.

(f) “Legal services provider” means a program attorney as defined in Section 409.2554(10), F.S.

(g) “Long-arm jurisdiction” refers to the conditions listed in Sections 48.193(1)(a) and 88.2011, F.S., that allow the Department to assert personal jurisdiction over a respondent who does not reside in Florida.

(h) “Notice of Proceeding to Establish an Administrative Support Order,” or “Initial Notice” means the notice served on the respondent that states the Department has started a proceeding to establish an administrative support order.

(i) “Petitioner,” or “petitioning parent” means the parent or caregiver with whom the child resides.

(j) “Public assistance” means temporary cash assistance, food assistance, Medicaid, or any combination thereof.

(k) “Respondent” means the parent from whom the Department is seeking support.

(3) Case Selection Criteria.

(a) As allowed by Section 409.2563 (2)(c), F.S., the Department is authorized to establish a support obligation administratively.

(b) The Department does not establish an administrative support obligation when:

1. The child is in foster care,

2. There is a court order of support for a payee with whom the child no longer resides,

3. The Department does not have an active residential or mailing address for the respondent,

4. There is a court order that only addresses health care insurance or noncovered medical expenses,

5. There is a court order that establishes an ongoing support obligation, a retroactive support amount, or reserves jurisdiction to establish a support obligation,

6. In accordance with Section 409.2579(4), F.S., the Department has reason to believe that the disclosure of information on the whereabouts of one party or the child to another person may result in physical or emotional harm to the party or the child,

7. Either parent is a minor, or

8. The respondent does not reside in Florida and long-arm jurisdiction is not applicable.

(4) Obtaining Cooperation from the Petitioner.

(a) If a case is eligible for establishment of an administrative support order the Department must obtain cooperation from the petitioner before serving notice on the respondent. To obtain cooperation, the Department mails the petitioner Form CS-ES96, Request for Information Administrative Support Action, incorporated herein by reference, effective 11/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-12344); the Financial Affidavit Administrative Proceeding (CS-OA11); the Parent Information Form (CS-OA12); and the Title IV-D Standard Parenting Time Plan (CS-OA250), except as provided by paragraph (6)(a). Forms CS-OA11 and CS-OA12 are incorporated by reference in Rule 12E-1.036, F.A.C. Form CS-OA250 is available at floridarevenue.com/childsupport/parenting_time_plans. The petitioner has 20 days after the mailing date of the forms to complete and return them. If the action was requested by another state’s Title IV-D agency, the petitioner has 45 days after the mailing date of the forms to complete and return them.

(b) If the petitioner returns the forms timely, the Department shall proceed to serve the respondent with an Initial Notice as described in subsection (5) below.

(c) If the forms are not returned timely, the Department shall initiate case closure for petitioners not receiving public assistance. For petitioners receiving Medicaid or food assistance, the Department shall report noncooperation to the Department of Children and Families as required by section 409.2572 F.S., and initiate case closure. If the petitioner is receiving temporary cash assistance for the child, the Department shall prepare a financial affidavit for the petitioner as authorized by Section 61.30(15) F.S.

(5) Initial Notice.

(a) The Department uses Form CS-OA01, Notice of Proceeding to Establish Administrative Support Order (incorporated by reference in Rule 12E-1.036, F.A.C.), to inform the respondent that the Department has initiated an administrative proceeding to establish a support obligation. This notice is referred to as the “Initial Notice.”

1. Along with the Initial Notice, the Department shall provide the respondent with the following documents:

a. Financial Affidavit Administrative Support Proceeding (CS-OA11),

b. Parent Information Form Administrative Support Proceeding (CS-OA12); and,

c. Title IV-D Standard Parenting Time Plan (CS-OA250), except as provided by paragraph (6)(a).

2. The Department shall mail the petitioner a copy of the Initial Notice provided to the respondent, along with Form CS-OA06, Notice to Parent or Caregiver of Administrative Proceeding (incorporated by reference in Rule 12E-1.036, F.A.C.).

(b) The Department is authorized to serve the Initial Notice as provided by Section 409.2563(4), F.S. The Department considers the Initial Notice to be properly served if:

1. Someone other than the respondent signs the certified mail receipt and the Department confirms with the respondent by telephone or in-person that the respondent received the Initial Notice,

2. The signature on the certified mail receipt is illegible, but the Department confirms it is the respondent’s by comparing it to another source such as Department of Highway Safety and Motor Vehicles DAVID database, or the Department confirms with the respondent by telephone or in-person that the respondent received the Initial Notice, or

3. The Department does not receive confirmation of receipt, but the respondent returns the financial affidavit or other information in response to the Initial Notice. Service is complete if the respondent submits anything in writing that shows the respondent received the Initial Notice.

(6) Title IV-D Standard Parenting Time Plan.

(a) The Department will provide a Title IV-D Standard Parenting Time Plan, form CS-OA250, to each parent as required by Section 409.25633, F.S., unless:

1. Florida is not the child’s home state,

2. One or both parents do not reside in Florida,

3. Either parent has requested nondisclosure for fear of harm from the other parent,

4. The parent who owes support is incarcerated, or

5. The parent owed support is a caregiver.

(b) If both parents agree to, sign, and return a parenting time plan to the Department before an administrative Final Order is entered, the parenting time plan will be incorporated into the Final Order. Both parents do not need to sign the same form. If the parents have a judicially established parenting time plan, the plan will not be incorporated in the administrative order.

(7) Proceeding in Circuit Court as an Alternative to the Administrative Process.

(a) As allowed by Sections 409.2563(4)(l) and (m), F.S., the respondent may file a support action in circuit court and serve the Department with a copy of the petition. The respondent must have the petition served on the Deputy Agency Clerk as specified by the Initial Notice, within 20 days after the date the respondent is served the Initial Notice. If the Department is served timely, the administrative proceeding ends and the case proceeds in circuit court. If the respondent files a petition in circuit court, but does not serve the Department in the 20-day time frame, the Department will continue with the administrative establishment proceeding. If the petition is served on the Department timely, the Department will mail the petitioning parent or caregiver Form CS-OA88, Dismissal of Administrative Proceeding (incorporated by reference in Rule 12E-1.036, F.A.C.).

(b) Respondent Asks the Department to Proceed in Circuit Court. The respondent may ask the Department to stop the administrative proceeding and proceed in circuit court. The respondent must make this request in writing and the request must be received by the Department within 20 days after being served the Initial Notice. The request from the respondent must state that the respondent requests the Department proceed with the determination of the support obligation in circuit court or that the respondent states his or her intentions to address custody matters or parental rights issues in circuit court. Oral requests are not accepted. If the respondent files a timely request for the Department to file an action in circuit court, the Department will send the respondent Form CS-OA247, Request for Court Action Status Update (incorporated by reference in Rule 12E-1.036, F.A.C.). The Department sends the petitioning parent Form CS-OA248, Notice of Court Action Financial Affidavit Needed for Court (incorporated by reference in Rule 12E-1.036, F.A.C.). The Department then sends the petitioning parent Form CS-PO31, Family Law Financial Affidavit (incorporated by reference, in Rule 12E-1.036, F.A.C.). When the petitioning parent returns the CS-PO31, the Department will file a petition with the clerk of court to determine the support obligation and obtain a civil case number. If the petitioning parent does not return the CS-PO31, the Department shall initiate case closure if the petitioning parent is not receiving public assistance. If the petitioning parent is receiving Medicaid or food assistance, the Department shall report noncooperation to the Department of Children and Families as required by Section 409.2572, F.S., and initiate case closure. If the petitioning parent is receiving temporary cash assistance for the child, the Department shall prepare a financial affidavit for the other parent as authorized by Section 61.30(15), F.S.

(c) When the Department receives a stamped copy of the petition back from the clerk, it sends a copy of the petition to the respondent by certified mail, return receipt requested. Along with the copy of the petition, the Department sends Form CS-OA18, Notice of Commencement of Action and Request for Waiver of Service of Process Administrative Paternity Proceeding (incorporated by reference in Rule 12E-1.036, F.A.C.). The Department also sends two copies of Form CS-OA19, Waiver of Service of Process (incorporated by reference in Rule 12E-1.036, F.A.C.). If the respondent is represented by an attorney, the Department sends the packet of forms and petition to the respondent’s attorney. The respondent has 10 days from the receipt of these forms to sign and complete one copy of the CS-OA19 and return it to the Department. If the Department does not receive the signed completed CS-OA19 within 10 days, it proceeds with the establishment of the support obligation administratively. The Department will also file a voluntary dismissal of the civil case with the clerk of court and mail a copy of the voluntary dismissal to the respondent. If the respondent completes and returns the CS-OA19 within 10 days, the Department sends the petitioner the Dismissal of Administrative Proceeding CS-OA88 form. The Department will then end the administrative proceeding and proceed in circuit court.

(8) Proposed Administrative Support Order.

(a) After the Department serves the respondent with the Initial Notice in accordance with paragraph (5)(b), no sooner than 20 days after service, the Department shall calculate the respondent’s support obligation using the child support guidelines in Section 61.30, F.S. If the respondent does not provide financial information within the time required by Sections 409.2563(13)(a) and (b), F.S., the Department shall impute income as provided by Section 61.30(2)(b) or 409.2563(5), F.S., as applicable.

(b) Calculation of the respondent’s retroactive support obligation shall be in accordance with Section 61.30(17), F.S. Retroactive support shall be addressed in an initial determination of child support.

(c) The Department shall prepare Form CS-OA20, Proposed Administrative Paternity and Support Order (incorporated by reference in Rule 12E-1.036, F.A.C.), which for purposes of this rule is entitled Proposed Administrative Support Order, that establishes the terms of the support obligation and includes, at a minimum, all elements contained in Section 409.2563(7)(e), F.S. The Department shall mail the Proposed Order to the respondent by regular mail to the respondent’s address of record. The Proposed Order shall include a notice of rights that informs the respondent of the right to an informal discussion with the Department, the right to a formal administrative hearing, and the right to consent to the entry of an Administrative Support Order. Copies of the child support guidelines worksheet prepared by the Department and the financial affidavit submitted by the other parent are mailed with the Proposed Order. The Department shall provide a copy of the Proposed Order and its attachments to the petitioner at the petitioner’s address of record.

(d) The Proposed Order must include an explanation of any deviations from the guidelines the Department considered when calculating the support obligation and any retroactive support owed.

(e) Except as provided by paragraph (6)(a), a blank Title IV-D Standard Parenting Time Plan is included with Form CS-OA20 when the parents do not provide a parenting time plan of their own or do not agree to the Title IV-D Standard Parenting Time Plan.

(f) If additional facts or information become available to the Department that materially changes the Proposed Order, the Department shall prepare an amended Proposed Administrative Paternity and Support Order, using Form CS-OA20 (from now on referred to as the Amended Proposed Order). An Amended Proposed Order shall include guideline worksheets to explain the changes and the requirements established in Section 409.2563(5)(a), F.S. The Department does not amend the Proposed Order if the additional facts or information become available after the respondent has requested an administrative hearing. Any additional facts or information are addressed at the hearing.

(9) Informal Discussions.

(a) The respondent may ask the Department to informally discuss the proposed order as authorized by Section 409.2563(5)(c)5., F.S.

(b) If the respondent asks for an informal discussion within 10 days of the date the Department mailed the Proposed Order, the Department shall extend the time limit for the respondent to request a hearing. The Department shall extend the time limit to 10 days from the date the Department notifies the respondent the informal discussions have ended. The Department will use Form CS-OA32, Notice of Conclusion of Informal Discussion Administrative Paternity Proceeding (incorporated by reference in Rule 12E-1.036, F.A.C.), to inform the respondent the informal discussions have ended. The deadline for asking for an administrative hearing will not occur before 20 days from the date the Department mailed the Proposed Order to the respondent regardless of when the informal discussions have ended.

(c) The respondent may contact the Department to discuss the case at any time, however, contact outside the time frame referenced in paragraph (9)(b), does not extend the time to request a hearing. If the respondent asks the Department for an informal discussion outside of the time frame referenced above, the Department shall send the respondent Form CS-OA35, Notice of Late Request for Informal Discussion Administrative Proceeding (incorporated by reference in Rule 12E-1.036, F.A.C.), and inform the respondent that the Department will discuss the Proposed Order with the respondent, but will not extend the time to request an administrative hearing.

(d) The following types of contact do not constitute a request for informal discussion:

1. The respondent has general questions about the Department’s Child Support Program or the respondent’s case,

2. The respondent’s questions do not affect the terms of the Proposed Order,

3. The respondent’s questions are answered during a customer contact, or

4. The respondent provides new information but does not include a request for informal discussion.

(e) If the respondent does not appear for an appointment or reschedule a missed appointment to discuss the Proposed Order, the time to request an administrative hearing is not extended.

(f) At the end of the informal discussion, the Department shall mail the respondent Form CS-OA32, Notice of Conclusion of Informal Discussion Administrative Paternity Proceeding.

(10) Request for Administrative Hearing.

(a) To request an administrative hearing, the respondent must submit a written request to the Department’s Deputy Agency Clerk at the address provided in the Proposed Order.

(b) The Department must receive the request for an administrative hearing no later than 20 days after the mailing date of the Proposed Order. If the respondent requests and is granted an informal discussion, the deadline for seeking an administrative hearing is 10 days from the date the Department informs the respondent the informal discussion ended using the Notice of Conclusion of Informal Discussion Administrative Paternity Proceeding (Form CS-OA32).

(c) The Department acknowledges all timely hearing requests received by the Deputy Agency Clerk using Form CS-OA55, Acknowledgment of Hearing Request Administrative Proceeding (incorporated by reference in Rule 12E-1.036, F.A.C.).

(d) If the request is received timely, the Department sends the request to the Florida Division of Administrative Hearings. The Division of Administrative Hearings notifies the Department, respondent, and petitioner in writing of the date, time, and place of the hearing.

(e) If the Department receives an untimely request for an administrative hearing, the Department denies the request and sends the respondent the Acknowledgment of Hearing Request Administrative Proceeding (Form CS-OA55). This form notifies the respondent that the request was not timely and the Department will proceed without a hearing.

(f) If the Department determines that an administrative hearing is appropriate, it may refer the proceeding to the Division of Administrative Hearings without issuing a Proposed Administrative Support Order. The Department may ask for an administrative hearing and the Division of Administrative Hearings shall conduct an administrative hearing to determine the support obligation when:

1. The Department is not able to determine the income of the respondent, or

2. The amount of income claimed by one party is disputed by the other party.

(11) Final Administrative Support Orders. The Department uses Form CS-OA40, Final Administrative Paternity and Support Order (incorporated by reference in Rule 12E-1.036, F.A.C.) to establish the support obligation. Section 409.2563(7)(e), F.S., sets the requirement for the Final Administrative Support Order and the minimum requirements for the content of the order. In addition to the Final Administrative Support Order, the Department enters an Income Deduction Order as part of the Final Administrative Support Order. The respondent is responsible for making the ordered payments to the State Disbursement Unit until the income deduction begins. Once rendered, a Final Administrative Support Order has the same force and effect as a court order and it remains in effect until the Department modifies it, or it is vacated as described in subsection (17), or it is superseded by a court order. If an administrative hearing is held, the administrative law judge shall issue an administrative support order, or a final order denying an administrative support order. If both parents agree to, sign, and return a parenting time plan to the Department before an administrative Final Order is entered, the parenting time plan will be incorporated into the Final Order. If a parenting time plan is not incorporated into the Final Order, the Department will provide each parent a blank Petition to Establish a Parenting Time Plan, except as provided by paragraph (6)(a). The Petition to Establish a Parenting Time Plan is available at floridarevenue.com/childsupport/parenting_time_plans.

(12) A respondent may consent to the entry of a final order any time after the receipt of the Initial Notice. To do this, the respondent must complete and return Form CS-PO384, Waiver of Opt-Out Administrative Proceeding (incorporated by reference in rule 12E-1.036, F.A.C.), after the respondent receives the Initial Notice Packet. If the respondent returns the Waiver of Opt-Out Administrative Proceeding, Financial Affidavit, and Parent Information Form, the Department sends the respondent Form CS-ES97, Waiver of Administrative Hearing (incorporated by reference in Rule 12E-1.036, F.A.C.). The Department also sends a copy of the Proposed Administrative Support Order discussed in subsection (8), of this rule. If the respondent completes and returns the CS-ES97, the Department need not wait 27 days from sending the Proposed Order to complete and render a Final Administrative Paternity and Support Order, CS-OA40. If the respondent does not return the CS-ES97, the Department waits at least 27 days after sending the Proposed Order before completing a Final Administrative Paternity and Support Order.

(13) Judicial Enforcement of Administrative Support Order. The Department may initiate judicial enforcement of an administrative support order by filing a petition for enforcement of administrative support order in circuit court. To do this, the Department must serve the respondent with a summons and a copy of the petition. If the circuit court issues an order enforcing the administrative support order, and the respondent does not comply, the Department may initiate contempt proceedings for violation of the court order.

(14) Modifying an Administrative Support Order.

(a) The Department files a petition in circuit court for a superseding order when support for an additional child of the same parents needs to be established or a child needs to be removed from the order.

(b) A parent or caregiver may request orally or in writing that the Department review an administrative support order in accordance with Rule 12E-1.041, F.A.C.

(c) The Department notifies the parents or caregiver, as applicable, when it begins a proceeding to modify an administrative support order issued by the Department.

1. The Department uses a Proposed Order to Modify Administrative Support Order (Form CS-OA120R), hereby incorporated by reference, effective 09/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15857), when a support order review indicates a modification is appropriate. If the party who does not request the review responds to the Department during the review, the Department sends the proposed order by regular mail to both parties at their addresses of record. If the non-requesting party does not participate in the support order review, the Department attempts to serve the proposed order on the non-requesting party by certified mail or personal service. If the party is not served by certified mail or personal service, the Department sends the non-requesting party the proposed order by regular mail to the non-requesting party’s address of record. If the proposed order is not contested by either party within 30 days after service by certified mail or personal service, or 35 days after the notice is sent by regular mail, the Department prepares and renders a Final Modified Administrative Support Order (Form CS-OA140R), hereby incorporated by reference, effective 09/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15858). Under Section 409.2563(13)(c), F.S., a party to an administrative proceeding has a continuing duty to provide the Department with a current mailing address after being served with an initial notice under paragraph (5)(b) of this rule, and the party is presumed to receive a subsequent notice, proposed order or other document mailed to the party’s address of record including a proposed order to modify support.

2. The Proposed Order to Modify Administrative Support Order includes the same notices as specified in subsection (8) of this rule.

3. Except as provided by paragraph (6)(a), a blank Title IV-D Standard Parenting Time Plan is included with Form CS-OA120R and CS-OA140R when the parents do not provide a parenting time plan of their own or do not agree to a Title IV-D Standard Parenting Time Plan. If a parenting time plan is not incorporated into the Final Modified Administrative Order, the Department will provide each parent a blank Petition to Establish a Parenting Time Plan, except as provided by paragraph (6)(a). The Petition to Establish a Parenting Time Plan is available at floridarevenue.com/childsupport/parenting_time_plans.”

(15) Termination of an Administrative Support Order or Support Obligation.

(a) The Department issues a Notice of Intent to Terminate Support, Determine Arrears and Establish Payment on Arrears (CS-OA160) when:

1. The parents reside together with the child(ren);

2. The child(ren) for whom support is ordered permanently resides with the parent who is ordered to pay support;

3. The child(ren) for whom support is ordered permanently resides with a person other than the parent to whom support is owed or the parent who is ordered to pay support and that person is unknown, not responsive to the Department, or does not want the Department’s services.

4. The parent who is ordered to pay support begins receiving Supplemental Security Income (SSI) after the support order is rendered;

5. The parent who is ordered to pay support has no income, is permanently disabled, and provides a doctor’s statement that the parent is permanently disabled and unable to work; or

6. A court has terminated the parental rights of the parent who is ordered to pay support.

(b) The Department sends the notice by regular mail to each parent or caregiver, as applicable, at the address of record with the Department in accordance with Section 409.2563(13)(c), F.S. Form CS-OA160, Notice of Intent to Terminate Support, Determine Arrears and Establish Payment on Arrears, is hereby incorporated by reference, effective 09/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15859).

(c) If a timely petition for an administrative hearing is filed with the Department in response to the notice, the Department refers the proceeding to the Division of Administrative Hearings in accordance with Section 409.2563(6), F.S. If the notice is not contested, the Department renders a Final Order Terminating Support, Determining Arrears and Establishing Payment on Arrears (CS-OA178). Form CS-OA178 is hereby incorporated by reference, effective 09/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15860).

(d) The Department terminates an administrative support order under paragraph (a) when retroactive support or past-due support is not owed, or if retroactive support or past-due support are owed, none is assigned to the state, and the parent to whom retroactive support or past-due support is owed waives it in writing, except when a parenting time plan is incorporated into a final administrative support order.

(e) The Department terminates the support obligation prospectively, determines arrears and establishes payment on arrears when there are grounds for termination under paragraph (a) and retroactive support or past-due support are owed and not waived by the person to whom it is owed. The administrative support order is not terminated.

(f) A parent or caregiver may request the Department to terminate an administrative support order or support obligation. Requests must made be in writing and may be made using Request to Terminate Support (CS-OA179). Form CS-OA179 is hereby incorporated by reference, effective 09/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15861). The request must include the following information:

1. Name of the parent or caregiver making the request;

2. Name of the other parent;

3. Child support case number or depository number;

4. Name of the child(ren) named in the order;

5. Specific reasons for the request to terminate; and,

6. Documentation that supports the request to terminate, if any.

(g) The Department evaluates requests to terminate an administrative support order or support obligation and issues a Notice of Intent to Terminate Support, Determine Arrears and Establish Payment on Arrears (CS-OA160) if the request and supporting documentation meet the criteria in paragraph (a). If the request does not meet the criteria, the Department mails the parent or caregiver the Response to Request to Terminate Support (CS-OA180). Form CS-OA180 is hereby incorporated by reference, effective 09/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15862).

(16) Dismissing the Administrative Support Proceeding. At any time before the entry of a Final Administrative Support Order, the Department may end the administrative proceeding and either close the case or proceed judicially. Instances when the Department will not proceed administratively include: a previous judicial support order for the children is provided by a party; the parties currently reside together as an intact family; or all the children reside with the respondent. When the Department decides to end the administrative proceeding, it will send the Dismissal of Administrative Proceeding form, CS-OA88, to the parties.

(17) Vacating Administrative Support Orders.

(a) The Department vacates an administrative support order when the order is rendered in error resulting in a fundamental defect, such as a lack of jurisdiction and other reasons listed in subparagraphs 1. through 3. Case situations that require vacating the administrative support order include:

1. The Department becomes aware of a support order that predates the administrative support order.

2. Information provided to the Department by another state was in error causing Florida to render an order when it did not have the authority.

3. The case did not meet the criteria listed in subsection (3).

(18) Forms. Members of the public may obtain copies of the forms used in this rule chapter incorporated by reference, without cost, by writing to the Florida Department of Revenue, Mail Stop 2-4814, 5050 West Tennessee Street, Tallahassee, Florida 32399.

History

• Rulemaking Authority 61.13(1)(b)7., 61.14(1)(d), 409.2557(3)(p), 409.2563(16), 409.25633(9) FS. Law Implemented 409.2563, 409.25633 FS. History–New 9-19-17, Amended 1-17-18, 9-17-18, 8-28-19, 11-12-20, 11-21-21, 10-26-22, 9-14-23, Technical Change 4-27-26.

Fla. Admin. Code R. 12E-1.031 Noncovered Medical Expenses

(1) Introduction. The Department is responsible for determining and collecting noncovered medical expenses under Section 409.25635, F.S.

(2) Definitions. For purposes of this rule:

(a) “Obligee” means the person to whom support payments are made pursuant to a child support order.

(b) “Obligor” means a person who is responsible for making support payments pursuant to a child support order.

(3) Criteria. The Department will determine and collect noncovered medical expenses when:

(a) The support order requires the obligor to pay all or a percentage of a child’s noncovered medical expenses.

(b) The obligee provides the Department with a written declaration under penalty of perjury that states:

1. Noncovered medical expenses have been incurred on behalf of the dependent child whom the obligor has been ordered to support.

2. The obligee has paid for noncovered medical expenses incurred on behalf of the child.

3. The obligor has not paid all or part of the child’s noncovered medical expenses as ordered.

4. The amount paid by the obligee for noncovered medical expenses and the amount the obligor allegedly owes to the obligee.

(c) The expenses are reasonable and necessary based on the specific language in the support order, the nature of the expense, and whether it is medically necessary as determined by a physician or other healthcare provider.

(d) The obligee has tried at least once to collect the amount owed from the obligor and provides the Department with a copy of the written document used to attempt to collect the amount from the obligor unless the obligee has reason to believe contacting the obligor may result in physical or emotional harm to themselves, to the child, or both.

(e) The obligee has not received services from the Department to determine and collect noncovered medical expenses for the same support order within the last six months.

(f) The last or only child on the case did not emancipate more than 24 months ago.

(g) The medical expenses are equal to or less than 24 months old.

(4) Requests for Service.

(a) If the case meets the criteria in subsection (3) upon request, the Department will send the obligee, by regular mail, the Instructions for Repayment of Medical Expenses Not Covered by Insurance (CS-EF204) (http://www.flrules.org/Gateway/reference.asp?No=Ref-06585), incorporated herein by reference effective 4/5/16.

(b) The obligee must complete a Statement of Medical Expenses Not Covered by Insurance (CS-EF205) (http://www.flrules.org/Gateway/reference.asp?No=Ref-06586), incorporated herein by reference effective 4/5/16, declaring:

1. The amount of noncovered medical expenses the obligee paid for the child.

2. The percentage of the child’s noncovered medical expenses the obligor is required to pay as specified in the support order.

3. The amount the obligor paid for noncovered medical expenses.

4. The amount the obligor still owes the obligee for noncovered medical expenses.

(c) The obligee must complete a Worksheet for Medical Expenses Not Covered by Insurance (CS-EF206) (http://www.flrules.org/Gateway/reference.asp?No=Ref-06587), incorporated herein by reference effective 4/5/16, and provide:

1. Proof of medical expenses for the child.

2. Proof of payment for the medical expenses.

(d) The obligee may only include medical expenses for services received after the date of the support order.

(e) The obligee may only include medical expenses that are equal to or less than 24 months old.

(f) The obligee must complete and return forms Statement of Medical Expenses Not Covered by Insurance (CS-EF205), Worksheet for Medical Expenses Not Covered by Insurance (CS-EF206), and supporting documents to the Department within 30 calendar days from the date on the Instructions for Repayment of Medical Expenses Not Covered by Insurance (CS-EF204).

(g) When the Department is enforcing a support order for another state, the other state has 45 calendar days to return the information.

(5) Determination of Eligible and Ineligible Expenses.

(a) The Department shall review noncovered medical expense requests submitted.

(b) If the obligee returns any, but not all of the required information, or returns incomplete or inaccurate information, the Department will send the obligee, by regular mail, an Information Request for Repayment of Medical Expenses (CS-EF207) (http://www.flrules.org/Gateway/reference.asp?No=Ref-06588), incorporated herein by reference effective 4/5/16, to the parent requesting the missing, incomplete, or corrected information.

(c) The obligee must complete and return the requested information to the Department within 21 calendar days from the mail date on the Information Request for Repayment of Medical Expenses (CS-EF207).

(d) If the obligee does not return the Statement of Medical Expenses Not Covered by Insurance (CS-EF205), Worksheet for Medical Expenses Not Covered by Insurance (CS-EF206), and supporting documents within 30 calendar days the request is considered abandoned and the Department closes the request for services.

1. The Department will send the obligee, by regular mail, a Status Update Medical Expenses Not Covered by Insurance (CS-EF208) (http://www.flrules.org/Gateway/reference.asp?No=Ref-12347), incorporated herein by reference effective 11/20, to inform the obligee the information did not arrive timely.

2. If the obligee returns the requested information after 30 calendar days, but before six months, the Department will re-open the request for services.

3. If the other state returns the requested information after 45 calendar days, but before six months, the Department will re-open the request for services.

(e) The Department shall review the forms and supporting documents returned by the obligee to determine which expenses and payments qualify for repayment, and the amount of noncovered medical expenses owed to the obligee.

1. The Department accepts proof of payment as paid by the obligee unless the document shows someone other than the obligee made the payment.

2. The payment date of the expense must be within 24 months of the date the obligee signed the form CS-EF205.

3. The Department will determine the amount owed to the obligee by the obligor only for expenses the obligee has already paid.

4. If the obligee has partially paid an expense, the Department considers only the amount paid for repayment.

(f) The Department will not attempt to obligate and collect if:

1. The expense does not show who received the service or the patient name is missing.

2. The submitted expense is for a child not included in the support order.

3. The submitted expense has the child’s name in freehand text rather than printed and does not appear to be a part of the original document.

4. The child emancipated before the medical services were incurred.

5. The submitted expense was not an uninsured medical, dental, or prescription medication expense ordered to be paid on behalf of a child as provided in Section 61.13(1)(b), F.S., or a similar law of another state.

6. The obligee does not provide proof of payment of the expense.

7. Someone other than the obligee paid the expense and there is no proof the obligee reimbursed the individual for the expense.

8. The expense was paid more than 24 months before the obligee signed the Statement of Medical Expenses Not Covered by Insurance (CS-EF205).

9. The expense was previously established as a noncovered medical expense owed by the obligor.

10. The expense is the same as another expense within the documentation provided by the obligee.

11. The expense is a health insurance, dental insurance, or prescription medication insurance premium payment.

12. The expenses are not reasonable and necessary based on the specific language in the support order, the nature of the expense, and whether it is medically necessary as determined by a physician or other healthcare provider.

13. The obligee did not initially try to collect the expense payment directly from the obligor.

14. The expense is interest charged on a credit or loan account while waiting for the obligor to reimburse noncovered medical expenses.

(g) If some or all of the expenses are not eligible for repayment, the Department will send the obligee, by regular mail, the Medical Expenses Not Eligible for Reimbursement (CS-EF209) (http://www.flrules.org/Gateway/reference.asp?No=Ref-06590), incorporated herein by reference effective 4/5/16. The form will list the receipt number, date the expense was incurred, type of service, name of service provider, name of child, and reason the Department cannot ask for repayment.

1. The obligee will have 15 calendar days from the mail date to provide the Department more information documenting why the expenses are eligible.

2. The other state will have 30 calendar days from the mail date to provide the Department more information documenting why the expenses are eligible.

(6) Notice of Proceeding. When the Department determines expenses claimed by the obligee as noncovered medical expenses are subject to reimbursement by the obligor, the Department will send the obligor, by regular mail, the Notice of Proceeding to Establish the Amount Owed for Medical Expenses Not Covered by Insurance (CS-EF210) (http://www.flrules.org/Gateway/reference.asp?No=Ref-12348), incorporated herein by reference effective 11/20, by regular mail.

(7) Uncontested.

(a) If the obligor does not contest the Notice of Proceeding to Establish the Amount Owed for Medical Expenses Not Covered by Insurance (CS-EF210) within 25 days of the Notice, the obligor is deemed to have waived the right to contest.

(b) Upon expiration of the contest period, the Department shall file a certified copy of the uncontested notice and the Notice to the Clerk of the Circuit Court Depository Determination of Noncovered Medical Expenses (CS-EF211) (http://www.flrules.org/Gateway/reference.asp?No=Ref-06592), incorporated herein by reference effective 4/5/16, with the depository.

(8) Contested. Upon entry of a final order by the Department following an administrative hearing, the Department shall file a certified copy of the final order establishing the amount of noncovered medical expenses, if any, and the Notice to the Clerk of the Circuit Court Depository Determination of Noncovered Medical Expenses (CS-EF211) with the depository.

History

• Rulemaking Authority 61.13(1)(b)7., 409.25635(9), 409.2557(3)(j) FS. Law Implemented 61.17, 409.25635 FS. History–New 4-5-16, Amended 11-12-20.

Fla. Admin. Code R. 12E-1.032 Electronic Remittance of Support Payments

(1) Scope. This rule sets forth the rules to be used in the administration of Section 61.1824(6), F.S., which provides for the electronic remittance of support payments deducted pursuant to an income deduction order or income deduction notice and the electronic submission of associated case data by an employer to the State Disbursement Unit. An employer who needs general information concerning the electronic remittance of support payments and associated case data may contact the State Disbursement Unit at www.fl.smartchildsupport.com. An employer who needs information about a waiver from electronic remittance and filing requirements may contact the Department of Revenue, toll free at 1(888)883-0743, or the State Disbursement Unit at www.fl.smartchildsupport.com.

(2) Definitions. As used in this rule:

(a) “Addenda record” means information required by the Department in an Automated Clearing House Credit “ACH credit” transfer that is needed to completely identify an employer or provide information concerning a payment, in approved electronic format.

(b) “Associated case data” means support payment information required to be submitted to the State Disbursement Unit pursuant to Title IV-D of the Social Security Act. Paragraph (5)(h), subparagraphs 1. through 10., of this rule lists the case data required to be submitted to the State Disbursement Unit.

(c) “Automated Clearing House” or “ACH” means a central distribution and settlement point for the electronic clearing of debits and credits between financial institutions rather than the physical movement of paper items.

(d) “Automated Clearing House Credit” or “ACH credit” means the electronic transfer of funds generated by the employer, cleared through the ACH for deposit to the State Disbursement Unit.

(e) “Department” means the Florida Department of Revenue.

(f) “Due date” means the date that an electronic payment and associated case data must be received by the State Disbursement Unit.

(g) “Electronic means” includes any one or more of the following methods of transmitting funds or data: electronic data interchange, electronic funds transfer, Internet, or any other technology designated by the Department.

(h) “Employer” means a person, business, or organization that pays one or more workers to perform a service or engage in an activity in exchange for financial compensation.

(i) “Employer’s designated child support payment processor (hereafter called employer’s processor)” means a financial institution or business utilized by the employer to provide ACH support payment services.

(j) “National Automated Clearing House Association” or “NACHA” means the national trade association for electronic payments associations, which establishes the rules, industry standards, and procedures governing the exchange of commercial ACH payments by depository financial institutions.

(k) “State Disbursement Unit” or “SDU” means the single unit in the state that receives all withheld support payments and processes all support payments pursuant to Section 61.1824, F.S.

(3) Methods of Transferring Funds and Associated Case Data by Electronic Means.

(a) Electronic remittance of support payments and associated case data by the employer or the employer’s processor to the State Disbursement Unit shall be in a format used within the “Automated Clearing House” or “ACH” network to conduct the transfer of support funds between business or government entities. An acceptable format includes either “Cash Concentration and Disbursement Plus (CCD+)” or “Corporate Trade Exchange (CTX).”

(b) The ACH credit transfer is the method by which employers subject to electronic payment requirements under this rule shall remit payments and associated case data by electronic means.

(4) Remittance or Transmission Problems.

(a) If the employer or employer’s processor incorrectly submits associated case data or incorrectly remits support payments, the employer or the employer’s processor shall contact, no later than the next business day after the date on which the error is discovered, the State Disbursement Unit at www.fl.smartchildsupport.com for specific instructions.

(b) The State Disbursement Unit shall review payment error and associated case data problems, determine the course of action to correct the error(s), and take steps to process the information and payment. The Department shall assist the State Disbursement Unit in resolving these specific payment errors, on a case-by-case basis.

(c) To assist the employer or employer’s processor in complying with Section 61.1824(6), F.S., and this rule chapter, the State Disbursement Unit shall contact the employer or employer’s processor when one or more of the following conditions exist.

1. The employer or employer’s processor does not transmit error-free payments and associated case data.

2. The employer or employer’s processor varies from the requirements and specifications of these rules.

3. The employer or employer’s processor fails to make timely electronic payments or timely provide associated case data, or fails to provide the required addenda record with the electronic payment.

(d) The State Disbursement Unit shall help the employer or the employer’s processor resolve the condition(s) in paragraph (c).

(5) Procedures for Payment.

(a) Automated Clearing House Credit Method (ACH Credit Method). An employer who uses the ACH credit method must contact the employer’s financial institution or an employer’s processor that provides prescribed ACH services and arrange to transfer the support payment to the State Disbursement Unit using an ACH credit transfer.

(b) For the employer to establish ACH payments directly to the State Disbursement Unit, initially the employer or employer’s processor must contact the State Disbursement Unit at www.fl.smartchildsupport.com and provide the information in subsection (c) below. The State Disbursement Unit will compare the information provided by the employer or employer’s processor with identifying information in the State Disbursement Unit’s child support computer system. Identifying information submitted by the employer or the employer’s processor must match the identifying information in the State Disbursement Unit computer system. The State Disbursement Unit will work with the employer to resolve discrepancies, if any are found. For the employer to establish ACH payments to the State Disbursement Unit, through an employer processor, the employer must contact the processor directly. For employers using a processor, the processor is responsible for verifying the information.

(c) The employer or the employer’s processor must provide the State Disbursement Unit with the following information for each obligor for whom payments will be remitted:

1. Obligor first and last name;

2. Obligor Social Security Number;

3. Obligee first and last name; and,

4. Case identifier, as stated in subparagraph (h)3.

(d) The State Disbursement Unit will inform the employer or employer’s processor of the following when there is a match of the information listed in paragraph (c).

1. State Disbursement Unit’s banking information to send payments electronically; and,

2. That electronic remittance of support payments may commence.

(e) Neither the State Disbursement Unit nor the Department will pay for expenses incurred by the employer or employer’s processor to use the ACH credit method. Pursuant to the income deduction provisions of Section 61.1301(2)(e)6., F.S., the employer may collect a fee from the employee’s income for each withheld payment.

(f) To assure the receipt of support payments by the due date, an employer or the employer’s processor must initiate the payment transaction in accordance with subsection (6).

(g) All ACH credit transfers must be in the NACHA Cash Concentration and Disbursement Plus “CCD+” or NACHA Corporate Trade Exchange “CTX” format containing an Accredited Standards Committee (ASC) X12 820 Payment Order/Remittance Advice Transaction Set with associated addenda record(s) for child support, in the format specified by NACHA guidelines as referenced herein. The Department uses NACHA guidelines to govern the formats and specifications for the electronic remittance of support payments and the electronic submission of associated case data, which are contained in the User Guide For Electronic Child Support Payments, Using The Child Support Application Banking Convention, Version 9.0, revised February 24, 2017, incorporated in this rule by reference, (http://www.flrules.org/Gateway/reference.asp?No=Ref-14350). A copy of the NACHA guidelines may be obtained at https://fl.smartchildsupport.com/. The employer, employer’s financial institution, or the employer’s processor providing ACH services may contact the State Disbursement Unit at www.fl.smartchildsupport.com to determine the formats, standards, and technical requirements to implement this provision.

(h) The electronic record shall include the following associated case data fields.

1. Segment identifier – A unique identifier for a segment composed of a combination of two or three uppercase letters and digits. “DED” is the segment identifier.

2. Application identifier – The type of deduction withheld from an employee’s pay. “CS” is the application identifier.

3. Case identifier – The unique identifier composed of alpha and numeric characters based on the court order number.

4. Pay date – The date the income was withheld from the employee’s paycheck.

5. Payment amount – The amount of support withheld from the employee’s income for a specific pay period, which is paid to the State Disbursement Unit.

6. Noncustodial parent Social Security Number.

7. Medical support indicator – The indicator designates whether the employer offers family medical insurance coverage. If medical insurance coverage is available, place a ‘Y’ in the field; if there is no coverage available, place an ‘N’ in the field. The National Automated Clearing House Association standard requires this data element.

8. Noncustodial parent name.

9. Federal Information Processing Standard Code (FIPS code) – The unique code that identifies each child support jurisdiction (i.e., states, counties and central registries). As used in this rule, the FIPS code refers to the code of the State Disbursement Unit receiving the transaction.

10. Employment termination indicator – The employment termination indicator notifies the Department that an individual’s employment has terminated. The employer is required to report this information pursuant to Section 61.1301(2)(k), F.S. If the employee has been terminated, place a ‘Y’ in this field; otherwise, the field is not used.

(i) The employer or employer’s processor may combine payment amounts from more than one employee in a single payment as long as the required information in paragraph (5)(h), subparagraphs 1. through 10., is submitted for each employee. In addition, the employer or employer’s processor must separately identify the portion of the single payment that is attributable to each employee.

(6) Due Date.

(a) Pursuant to Sections 61.1301(1)(a)3., 61.1301(2)(e)3. and 61.1301(2)(e)4., F.S., the employer is required to remit support payments based upon the employee’s pay cycle.

(b) The employer or employer’s processor who is required to pay support and provide associated case data through electronic means must initiate the transfer so that the amount due is deposited as collected funds to the State Disbursement Unit’s account on or before the due date. If the date on which the employer or employer’s processor is required to initiate an ACH credit transfer falls on a Saturday, Sunday, or a business or banking holiday, the employer or the employer’s processor must initiate the transaction on the preceding business day. For the purpose of this rule, “banking day” has the meaning prescribed in the banking provisions of Section 674.104(1), F.S.

(7) Waiver From Electronic Filing Requirements. The Department is authorized to waive the requirement that an employer or employer’s processor pay support and provide associated case data through electronic means, if the employer or employer’s processor is issued a waiver by the Department from the requirement to electronically file tax returns under Section 213.755 or 443.163, F.S. or the employer or employer’s processor is unable to comply with the requirements of Section 61.1824(6), F.S., and this rule.

(a) To request a waiver from electronically sending support payments, the employer or employer’s processor must complete and submit Form CS-FM42, Electronic Remittance of Child Support Payments Request for Waiver, revised February 2008, incorporated in this rule by reference. The employer or employer’s processor must explain on Form CS-FM42 how one or more of the factors discussed in paragraph (c) of this subsection affect the ability to file electronically.

(b) The Department shall review the information submitted by the employer or employer’s processor and respond in writing regarding the decision to grant or deny such waiver. The Department will use the following forms for this purpose.

1. Form CS-FM43, Electronic Remittance of Child Support Payments Waiver Approval Notice, revised February 2008, incorporated in this rule by reference. Form CS-FM43 states: that the waiver is approved for a specific period; the Department will remind the employer of the waiver expiration date no less than sixty (60) days before it expires; and, before the current waiver expires, the employer may apply for another waiver if he or she is unable to comply with the requirements of Section 61.1824(6), F.S., and this rule. The Department will use the Electronic Remittance of Child Support Payments Waiver Expiration Notice (Form CS-FM48), as the reminder notice. Form CS-FM48, (http://www.flrules.org/Gateway/reference.asp?No=Ref-14351), is hereby incorporated by reference, effective 06/22.

2. Form CS-FM47, Electronic Remittance of Child Support Payments Waiver Denial Notice, revised February 2008, incorporated in this rule by reference. Form CS-FM47 states: that the waiver is denied, the reason for the denial, that the employer must send support payments and provide case data electronically to the State Disbursement Unit, and that the employer may contest the decision by requesting an administrative hearing under Chapter 120, F.S. The form includes a Notice of Rights.

(c) Grounds for approving a request for a waiver include:

1. Any of the circumstances specified in the taxation and finance state revenue laws of Section 213.755(9)(a) or (b), F.S., or

2. The employer or the employer’s processor does not have access to the Internet.

(d) A waiver is valid for up to two years. The granting of a subsequent waiver is contingent on the employer or the employer’s processor working with the Department during the waiver period to address the issues that caused the Department to grant the waiver. The requirement to work with the Department means: discuss existing computer capabilities with Department personnel; consider any assistance, recommendations, or training the Department offers; and, implement any Department recommendation that enables the employer or employer’s processor to remit support payments and associated case data by electronic means, unless the employer or employer’s processor can establish that the circumstances or reasons in paragraph (7)(c) continue to apply. The Department shall issue subsequent waivers in accordance with this subsection.

(e) An employer may request an administrative hearing to contest the Department’s decision to deny the waiver. A written petition for an administrative hearing must be received by the Department of Revenue, Child Support Program, Deputy Agency Clerk, P.O. Box 8030, Tallahassee, FL 32314-8030, within twenty (20) days after receipt of Form CS-FM47. Administrative hearings shall be conducted pursuant to Chapter 120, F.S.

(f) Members of the public may obtain a copy of the forms used in this rule chapter, incorporated by reference, without cost, by writing to the Department of Revenue, Child Support Program, Attn: Forms Coordinator, P.O. Box 8030, Tallahassee, Florida 32314-8030.

History

• Rulemaking Authority 61.1824(6), 409.2557(3)(o) FS. Law Implemented 61.1824(6) FS. History–New 5-31-07, Amended 9-18-08, 6-9-22.

Fla. Admin. Code R. 12E-1.036 Administrative Establishment of Paternity and Support Obligations

(1) Introduction. Section 409.256, F.S., authorizes the Department to administratively establish the paternity of a child. The law also authorizes the Department to administratively establish paternity and support obligation when it is providing services under Title IV-D of the Social Security Act.

(2) Definitions. For purposes of this rule:

(a) “Address of record” means the address to which all administrative proposed orders, final orders, and other notices are mailed. The address of record is established as the active mailing or residential address maintained for the party by the Department that is listed on the initial notice that is served on the respondent. If the party provides a new address in writing after service of the initial notice, the new address is designated the address of record and all subsequent documents associated with the administrative action will be mailed to that address.

(b) “Administrative Support Order” or “Final Order” means a final order rendered by the Department as allowed by Section 409.256, F.S. The Final Order establishes paternity or paternity and a support obligation for the child or children. The administrative support order may also include terms for monetary support, retroactive support, health insurance, and non-covered medical expenses if appropriate.

(c) “Alleged Father” means “Putative Father” as defined by Section 409.256(1)(g), F.S., which is an individual who is or may be the biological father of a child whose paternity has not been established and whose mother was unmarried when the child was conceived and born.

(d) “Amended Proposed Administrative Support Order” or “Amended Proposed Order” is a modified Proposed Order issued by the Department to correct an error or reflect new information that changes the terms of the original or subsequent Proposed Order.

(e) “Caregiver” means a person other than the mother, father, or alleged father, who has physical custody of a child or with whom the child primarily resides.

(f) “Emancipated” means the status of a minor child who has become an adult on reaching 18 years of age, by order of the court, by marriage, or by other means provided by law.

(g) “Good cause” means the person scheduled for genetic testing missed the appointment for reasons beyond their control.

(h) “Income Deduction Order” means an administrative final order rendered by the Department directing an employer or other payor of income to deduct support payments from the income of a parent who is ordered to pay support.

(i) “Legal service provider” means a program attorney as defined by Section 409.2554(10), F.S.

(j) “Long-arm jurisdiction” refers to the conditions listed in Sections 48.193(1)(a) and 88.2011, F.S., that allow the Department to assert personal jurisdiction over a respondent who does not reside in Florida.

(k) “Paternity and Administrative Support Proceeding” means an administrative action taken by the Department to order genetic testing, establish paternity, and establish a support obligation.

(l) “Petitioner” or “petitioning parent” means the parent or caregiver with whom the child resides.

(m) “Public assistance” means temporary cash assistance, food assistance, Medicaid, or any combination thereof.

(n) “Respondent” means the parent from whom the Department is seeking support.

(3) Case Selection Criteria.

(a) Section 409.256(2)(a), F.S., authorizes the Department to start an administrative proceeding to establish paternity or paternity and support when the statutory criteria are met.

(b) The Department does not start an administrative paternity or paternity and support proceeding when:

1. The Department has filed a paternity action in circuit court to determine the paternity of the child and the action is pending.

2. The alleged father or mother is a minor.

3. The alleged father does not live in Florida and long-arm jurisdiction is not applicable.

4. The child is in foster care.

5. In accordance with Section 409.2579(4), F.S., the Department has reason to believe that the disclosure of information on the whereabouts of one party or the child to another person may result in physical or emotional harm to the party or the child.

6. The Department does not have an active residential or mailing address for the petitioner or respondent.

(4) Statement Naming an Alleged Father or Fathers. For cases meeting the criteria in subsection (3), the Department a statemnet naming an alleged father or fathers. The Department uses Form CS-PO34, Paternity Declaration (incorporated by reference in Rule 12E-1.039, F.A.C.), to record the name of the alleged father or fathers.

(a) The Department uses Form CS-PO34, Paternity Declaration (incorporated by reference in Rule 12E-1.039, F.A.C.), completed and signed by the mother, to record the name of the alleged father or fathers.

(b) The Department uses Form CS-PO102, Paternity Statement by Non-Parent, (incorporated by reference in Rule 12E-1.039, F.A.C.), completed and signed by the non-parent caregiver.

(c) The Department uses Form CS-PO103, Paternity Statement by Alleged Father (incorporated by reference in Rule 12E-1.039, F.A.C.), completed and signed by the alleged father, who may or may not be the caregiver of the child.

(5) Obtaining Cooperation from the Mother or Caregiver.

(a) If a case is eligible for establishment of an administrative paternity order, the Department must obtain cooperation from the mother or caregiver before serving notice on the respondent. To obtain cooperation, the Department mails Form CS-OP05, Requirement to Provide Sample for Genetic Testing, hereby incorporated by reference, effective 09/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15863), by regular mail to the mother or caregiver. The CS-OP05 informs the mother or caregiver where and when to appear to provide a sample for genetic testing, and it also informs the mother or caregiver to bring the child(ren) named on the form to be tested.

(b) If the mother or caregiver and the child(ren) appear for the genetic test and provide a sample timely, the Department shall proceed to serve the respondent with an initial notice as described in subsection (7), below.

(c) If the mother or caregiver and child(ren) do not provide a sample and a sample is not available to the Department from a previous genetic test, the Department shall initiate case closure for a petitioner who does not receive public assistance. For petitioners receiving public assistance, the Department shall report noncooperation to the Department of Children and Families and initiate case closure.

(6) Title IV-D Standard Parenting Time Plan.

(a) The Department will provide a Title IV-D Standard Parenting Time Plan, form CS-OA250 (available online at floridarevenue.com/childsupport/parenting_time_plans), to each parent as required by Section 409.25633, F.S., unless:

1. Florida is not the child’s home state,

2. One or both parents do not reside in Florida,

3. Either parent has requested nondisclosure for fear of harm from the other parent,

4. The parent who owes support is incarcerated, or

5. The parent owed support is a caregiver.

(b) If both parents agree to, sign, and return the parenting time plan to the Department before an administrative Final Order is entered, the parenting time plan will be incorporated into the Final Order. Both parents do not need to sign the same form. If the parents have a judicially established parenting time plan, the plan will not be incorporated in the administrative order.

(7) Notice of Proceeding to Establish Paternity and Order to Appear for Genetic Testing.

(a) Notice of Proceeding to Establish Paternity or Paternity and Administrative Support Requirements. The Department serves the alleged father with Form CS-OP01, Notice of Administrative Proceeding to Establish Paternity, hereby incorporated by reference, effective 1/18, (http://www.flrules.org/Gateway/reference.asp?No=Ref-08994), hereafter referred to as the Notice of Proceeding. The Department sends the alleged father Form CS-OP02, Order to Appear for Genetic Testing, incorporated by reference, effective 09/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15864), with the Notice of Proceeding and a copy of the Paternity Declaration, CS-PO34, CS-PO102, or an affidavit that names the alleged father. The Notice of Proceeding will be served on the respondent by certified mail, restricted delivery, return receipt requested, or by any other means of service that meet the requirements for service of process in a civil action. Once served, the alleged father must notify the Department in writing of any change of address. If the alleged father does not update the Department, the Department will serve by regular mail any other document or resulting order to the address of record and the alleged father is deemed to have received them.

(b) Proceeding in Circuit Court.

1. As allowed by Sections 409.256(4)(a)11. and 12., F.S., the alleged father may file a paternity action in circuit court and serve the Department with a copy of the petition. The person ordered to appear must have the petition served on the Deputy Agency Clerk within 20 days after the date he is served the Notice of Proceeding. If the Department is served timely, the administrative proceeding ends and the case proceeds in circuit court. If the alleged father files a petition in circuit court, but does not serve the Department in the 20-day time frame, the Department will continue with the administrative establishment proceeding. If the petition is served on the Department timely, the Department will mail the child’s mother or caregiver Form CS-OA88, Dismissal of Administrative Proceeding form, hereby incorporated by reference, effective 11/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-12353).

2. Respondent Asks the Department to Proceed in Circuit Court. The respondent may ask the Department to stop the administrative proceeding and proceed in circuit court. The respondent must make this request in writing and the request must be received by the Department within 20 days after being served the Initial Notice. The request from the respondent must state that he requests the Department proceed with the determination of paternity in circuit court or that he has custody matters or parental rights issues which need to be addressed by the court. Oral requests are not accepted. If the respondent files a timely request for the Department to file an action in circuit court, the Department will send the respondent Form CS-OA247, Request for Court Action Status Update, hereby incorporated by reference, effective 11/20, (http://www.flrules.org/Gateway/reference.asp?No=Ref-12354). The Department sends the petitioning parent Form CS-OA248, Notice of Court Action Financial Affidavit Needed for Court, hereby incorporated by reference, effective 09/19/2017, (http://www.flrules.org/Gateway/reference.asp?No=Ref-08634).

3. The Department then sends the petitioning parent Form CS-PO31, Family Law Financial Affidavit (Short Form), hereby incorporated by reference, effective 11/21, (http://www.flrules.org/Gateway/reference.asp?No=Ref-13858). Form CS-PO31 instructs the petitioning parent to contact the Department by phone to request a Family Law Financial Affidavit (Long Form), Form CS-PO30, if the individual’s gross income is $50,000 or more per year. Form CS-PO30 is hereby incorporated by reference, effective 11/21, (http://www.flrules.org/Gateway/reference.asp?No=Ref-13859). The Department will send the CS-PO30 to the petitioning parent upon request.

4. If the petitioning parent does not return the CS-PO30 or CS-PO31, the Department shall initiate case closure if the petitioning parent is not receiving public assistance. If the petitioning parent is receiving Medicaid or food assistance, the Department shall report noncooperation to the Department of Children and Families as required by Section 409.2572, F.S., and initiate case closure. If the petitioning parent is receiving temporary cash assistance for the child, the Department shall prepare a financial affidavit for the other parent as authorized by Section 61.30(15), F.S. If the petitioning parent returns the CS-PO30 or CS-PO31, the Department will file a petition with the clerk of court to determine the support obligation and obtain a civil case number.

5. After filing the petition in circuit court, the Department sends a copy of the petition to the respondent by certified mail, return receipt requested. Along with the copy of the petition, the Department sends the Notice of Commencement of Action and Request for Waiver of Service of Process Administrative Paternity Proceeding form (http://www.flrules.org/Gateway/reference.asp?No=Ref-06604), CS-OA18, effective 4/5/16, and incorporated by reference. The Department also sends two copies of the Waiver of Service of Process form (http://www.flrules.org/Gateway/reference.asp?No=Ref-06605), CS-OA19, effective 4/5/16, and incorporated by reference. If the respondent is represented by an attorney, the Department sends this packet of forms and petition to the respondent’s attorney.

6. The respondent has 10 days from the receipt of these forms to sign and complete one copy of the CS-OA19, and return it to the Department. If the Department does not receive the signed completed CS-OA19, within 10 days, it proceeds with the establishment of paternity administratively. The Department also files a voluntary dismissal of the civil case with the clerk of court and mails a copy of the voluntary dismissal to the respondent. If the respondent completes and returns the CS-OA19, within 10 days, the Department sends the petitioner or caregiver the Dismissal of Administrative Proceeding CS-OA88 form. The Department will then end the administrative proceeding and proceed in circuit court.

(8) Right to Contest the Order to Appear for Genetic Testing.

(a) Alleged Father Requests Informal Review.

1. Section 409.256(5), F.S., allows the person ordered to appear to contest the Order to Appear for Genetic Testing by asking the Department, in writing, for an informal review within 15 days after the date the Notice of Proceeding is served. When the Department receives the request for an informal review, it will contact the alleged father and, if possible, conduct the review by telephone. If the alleged father asks to appear in person, the Department will schedule an appointment. If the alleged father is incarcerated, he may present any concerns to the Department in writing or arrange with confinement officials to receive a phone call from the Department. At the end of the informal review, the Department will inform the alleged father whether it will continue with the administrative establishment of paternity. If the Department decides not to continue, it will end the administrative proceeding and will send the Dismissal of Administrative Proceeding form, CS-OA88, to the parties notifying them about the dismissal. If the Department intends to continue, it will inform the alleged father of its decision using the Notice of Conclusion of Informal Discussion Administrative Paternity Proceeding form (http://www.flrules.org/Gateway/reference.asp?No=Ref-06606), CS-OA32 effective 4/5/16 and incorporated by reference. The CS-OA32 informs the alleged father of the Department’s decision to continue and why. It also informs him of the right to contest the Order to Appear for Genetic Testing at an administrative hearing.

2. If the alleged father does not ask for an informal review within 15 days after the date of service of the Notice of Proceeding, the Department will inform him the request is outside the required time to ask for an informal review. The Department will do this using the Notice of Late Request for Informal Discussion Administrative Proceeding form (http://www.flrules.org/Gateway/reference.asp?No=Ref-06607), CS-OA35, effective 4/5/16, and incorporated by reference, and will continue with the administrative establishment proceeding.

(b) Alleged Father Asks for an Administrative Hearing.

1. In accordance with Section 409.256(5)(b), F.S., the person ordered to appear has 15 calendar days from the mailing date of the Notice of Conclusion of Informal Review to ask the Department for an administrative hearing. If the Department receives the request within the 15-day period, the Department will refer the request to the Division of Administrative Hearings. The Department will inform the requestor it sent the request to the Division of Administrative Hearings using the Acknowledgment of Hearing Request Administrative Proceeding form (http://www.flrules.org/Gateway/reference.asp?No=Ref-12362), CS-OA55, effective 11/20, and incorporated by reference. If the Department receives a timely hearing request, it will not continue the proceeding until the Division of Administrative Hearings issues an order, or the alleged father withdraws his request for a hearing. The Department will mail the Notice of Proceeding, Order to Appear for Genetic Testing, Paternity Declaration, and the alleged father’s request for hearing to the Division of Administrative Hearings within 15 calendar days after the receipt of the request for hearing.

2. If the alleged father does not ask for an administrative hearing within the 15-day time frame, the Department will proceed with the administrative proceeding. The alleged father may not ask for an administrative hearing without first requesting an informal review.

(9) Scheduling and Rescheduling of Genetic Testing Sample Collections.

(a) Scheduling of Genetic Testing Sample Collections. The Department will schedule the initial genetic testing sample collection before sending the alleged father the Order to Appear for Genetic Testing, CSOP02, and the mother or caregiver the Requirement to Provide Sample for Genetic Testing, CS-OP05. The CS-OP02 and CS-OP05, informs the parties when and where to appear for the genetic testing sample collection. The CS-OP05 will also direct the child’s mother or caregiver to bring the child to the genetic test sample collection.

(b) Rescheduling of Genetic Testing. The Department will reschedule the appointment for a genetic testing sample collection:

1. When a person scheduled for the genetic testing sample collection asks the Department to reschedule the genetic testing sample collection before the ordered test date. The person does not have to provide the Department a reason for rescheduling the initial genetic testing sample collection. The Department will inform the person of the new date using Department form Requirement to Provide Sample for Genetic Testing, CS-OP05.

2. One time if the person ordered to test shows good cause for not appearing at the scheduled genetic testing sample collection. The person claiming good cause must provide the Department with the facts that supports his or her claim for missing the scheduled genetic testing sample collection in writing no later than 10 days after the scheduled sample collection.

3. One time when a person sanctioned as described by subsection (10) of this rule, asks for a genetic testing sample collection.

(c) The Department will require and schedule a second genetic testing sample collection if it has reason to believe that the result of the previous test may be unreliable.

(d) Per Section 409.256(6)(c), F.S., a person previously tested may ask for a second genetic testing sample collection by filing a written request with the Department. The person asking for the second genetic testing sample collection must pay for the test before the Department schedules the test unless that person is receiving public assistance. To get a second genetic testing sample collection, the person must ask for the sample collection no later than 15 days after the Department mailed the initial test results.

(10) Refusal to Submit to Genetic Testing Sample Collection or Failure to Appear for Genetic Testing Sample Collection.

(a) Section 409.256(7), F.S., allows the Department to take one or more of the following actions if a person refuses to submit to the genetic testing sample collection or fails to appear on the ordered date, does not use the one-time opportunity to reschedule, or does not show good cause for missing the sample collection within 10 days after the scheduled sample collection.

(b) If the alleged father does not appear without requesting rescheduling or providing good cause, the Department will schedule a second genetic sample collection and send the alleged father the Requirement to Provide Sample for Genetic Testing, CS-OP05, which will list the new date, time, and location of the genetic testing sample collection. If the alleged father does not appear to the second sample collection, the Department is authorized to start a proceeding to suspend the alleged father’s driver license and motor vehicle registration as allowed by Section 61.13016, F.S. The Department will tell the alleged father of the intent to suspend his driver license and vehicle registration by sending the Notice of Intent to Suspend Driver’s License and Vehicle Registration(s) form, CS-EF55, incorporated by reference in Rule 12E-1.023, F.A.C. The Department sends this form by regular mail and it also informs the alleged father of his right to contest the action in circuit court. If the alleged father does not request a new genetic testing sample collection or contest the driver license suspension within 20 days after the mailing date of the CS-EF55, the Department will send an electronic request to the Department of Highway Safety and Motor Vehicles to suspend the driver license and vehicle registration of the alleged father. If the alleged father later complies with the Department and requests another test, and appears at the rescheduled genetic testing appointment, the Department will electronically request reinstatement of the driver license/vehicle registration from the Department of Highway Safety and Motor Vehicles. The Department will provide the alleged father the Driver License/Vehicle Registration Reinstatement Notice, CS-EF57, incorporated by reference in Rule 12E-1.023, F.A.C., which informs the alleged father to go to a local Driver License Examining Office to get the license reinstated. If the alleged father does not contest the suspension of the driver license/vehicle registration or request a new appointment, the Department will end the administrative proceeding and proceed in circuit court. The Department will not authorize reinstatement of the license until the alleged father submits to genetic testing.

(c) Prior Test Results. If an alleged father refuses to comply with the Order to Appear for Genetic Testing, but previously provided a sample for another case, the Department is authorized to use the previous sample taken from the alleged father. The alleged father is informed that the Department is authorized to do this in the Order to Appear for Genetic Testing, CS-OP02.

(d) File a Petition in Circuit Court. If the alleged father refuses to comply with the Order to Appear, and a previous sample is not available, the Department will file a petition in circuit court to establish paternity, obtain a support order, and seek repayment from the alleged father for costs incurred by the Department. If the Department files a petition in circuit court, it will notify the mother or caregiver using the Dismissal of Administrative Proceeding, CS-OA88 form.

(11) Genetic Testing Results.

(a) A laboratory under contract with the Department performs genetic testing of the samples and notifies the Department of the results. If the genetic testing results show a statistical probability of 99% or greater that the alleged father is the biological father the Department will issue a Proposed Order of Paternity, issue a Proposed Administrative Paternity and Support Order, or refer the proceeding to the Division of Administrative Hearings without issuing a Proposed Administrative Paternity and Support Order if the Department determines that an evidentiary hearing is appropriate to determine the respondent’s income.

(b) The Department will close the alleged father’s case if the genetic test shows a statistical probability of less than 99% that the alleged father is the biological father. In this circumstance the Department will:

1. Send the alleged father a copy of the Results of Genetic Testing form (http://www.flrules.org/Gateway/reference.asp?No=Ref-06611), CS-PO07a, effective 4/5/16, and incorporated by reference, by regular mail. The CS-PO07a is sent to the alleged father to inform him of the results of the genetic test. If genetic testing results indicate less than a 99% probability that the alleged father is the biological father, the form states that he is not the biological father of the child listed on the notice and the Department will take no further action, unless a second test is required.

2. The Department will close the alleged father’s case unless a second test is requested within 15 days after the mailing date of the genetic testing results or a second test is required by the Department.

3. Send the mother, caregiver, or other state a copy of the Results of Genetic Testing form (http://www.flrules.org/Gateway/reference.asp?No=Ref-06612), CS-PO07b, effective 4/5/16, and incorporated by reference, by regular mail. The CS-PO07b informs the addressee the results of the genetic test. If genetic testing results indicate less than a 99% probability that the alleged father is the biological father, it states that alleged father is not the biological father of the child named in the notice.

(12) Proposed Order of Paternity. The Proposed Order of Paternity (http://www.flrules.org/Gateway/reference.asp?No=Ref-15865), CS-OP30, effective 09/23, and incorporated by reference, is sent to the alleged father by regular mail to the address of record. The Proposed Order of Paternity informs him that the Department intends to issue a final order establishing him as the legal father of the child or children named in the Proposed Order of Paternity. The Proposed Order of Paternity informs the alleged father of his right to an informal review and to an administrative hearing. The time frames, forms, and procedures for the informal review and administrative hearing are the same as described in paragraph (14)(g). A blank Title IV-D Standard Parenting Time Plan, CS-OA250, is included with the Proposed Order of Paternity, form CS-OP30 except as provided by paragraph (6)(a). The Department will:

(a) Serve the Proposed Order of Paternity, CS-OP30, on the alleged father by regular mail at the address of record. A copy of the genetic test results from the laboratory must accompany the proposed order when the Department mails the Proposed Order of Paternity.

(b) Send the alleged father the results of the genetic test showing that he is the biological father of the child.

(c) Mail a copy of the Proposed Order of Paternity, CS-OP30, to the mother, caregiver, or other state. The genetic test results will be included in the packet showing the alleged father is the biological father of the child or children.

(13) Proceeding to Establish an Administrative Paternity and Support Order.

(a) After paternity has been determined, the Department may serve the alleged father by regular mail at the address of record with the Notice of Proceeding to Establish Administrative Support Order form (http://www.flrules.org/Gateway/reference.asp?No=Ref-11092), CS-OA01, effective 08/19, and incorporated by reference. The CS-OA01 informs the alleged father the Department intends to establish a paternity and a support obligation for the child named in the Notice and explains the steps the Department will take. The CS-OA01 also informs the alleged father of his right to file an action in circuit court or request the Department to proceed in circuit court instead of administratively. The Department will:

1. Send the alleged father the Notice of Proceeding to Establish Administrative Support Order form, CS-OA01, by regular mail informing him of the Department’s intent to establish an order for paternity and support. The Department uses the Notice of Proceeding to Establish Paternity and Administrative Support Order form (http://www.flrules.org/Gateway/reference.asp?No=Ref-08997), CS-OX01, effective 1/18, and incorporated by reference, when there is more than one child on the case and paternity has already been established for one or more children. The Department will provide a Title IV-D Standard Parenting Time Plan, CS-OA250, except as provided by paragraph (6)(a).

2. Send the alleged father the Financial Affidavit Administrative Support Proceeding form (http://www.flrules.org/Gateway/reference.asp?No=Ref-12364), CS-OA11, effective 11/20, and incorporated by reference. The CS-OA11 requests information to determine an individual’s income for the purpose of calculating the child support guideline amount. Also included in the packet is the Parent Information Form Administrative Support Proceeding (http://www.flrules.org/Gateway/reference.asp?No=Ref-12365), CS-OA12, effective 11/20, and incorporated by reference, which asks each party for case specific information regarding employment, residence, and children.

3. Send the mother, caregiver, or other state a copy of the Notice of Proceeding to Establish Administrative Support Order, CS-OA01, by regular mail. The Department will also include the genetic test results, and a blank Financial Affidavit Administrative Support Proceeding, CS-OA11, in the packet. The Financial Affidavit is not sent to caregivers. The Department also sends the Notice to Parent or Caregiver of Administrative Proceeding form (http://www.flrules.org/Gateway/reference.asp?No=Ref-08998), CS-OA06, effective 1/18, and incorporated by reference. The Notice to Parent or Caregiver of Administrative Proceeding informs the mother or caregiver of the proceeding to establish support and directs the mother to complete the enclosed forms. Included in the packet is the Parent Information Form Administrative Support Proceeding, CS-OA12. The Department will provide a Title IV-D Standard Parenting Time Plan, CS-OA250, except as provided by paragraph (6)(a).

(b) Alleged Father’s Rights; Proceeding in Circuit Court as an alternative to the Administrative Process:

1. The alleged father may file a paternity action in circuit court and serve the Department with a copy of the petition. The alleged father must have the petition served on the Deputy Agency Clerk at the address specified in the notice within 20 days after the date the Notice of Proceeding to Establish Administrative Support Order was mailed. If the Department is served timely, it will end the administrative establishment process and proceed in circuit court. If the alleged father files a petition in circuit court, but does not serve the Department in the 20-day time frame, the Department will continue with the administrative establishment proceeding by either issuing a Proposed Administrative Paternity and Support Order (http://www.flrules.org/Gateway/reference.asp?No=Ref-15866), CS-OA20, effective 09/23, and incorporated by reference, or referring the proceeding to the Division of Administrative Hearings without issuing a Proposed Administrative Paternity and Support Order if the Department determines that an evidentiary hearing is appropriate to determine the respondent’s income. If the petition is served on the Department timely, the Department will mail the petitioning parent or caregiver the Dismissal of Administrative Proceeding, CS-OA88.

2. The alleged father may ask the Department to stop the administrative proceeding and proceed in circuit court. The alleged father must make this request in writing and the request must be received by the Department within 20 days after the date the Notice of Proceeding to Establish Administrative Support Order was mailed. The request from the alleged father must state the alleged father requests the Department to proceed with the establishment of paternity and a support obligation in circuit court, or that the alleged father custody matters or parental rights issues which need to be addressed by the court. Oral requests are not accepted. If the respondent files a timely request for the Department to file an action in circuit court, the Department sends the respondent a Request for Court Action Status Update (CS-OA247). The Department sends the other parent a Notice of Court Action Financial Affidavit Needed for Court (CS-OA248). The Department then sends the other parent the Family Law Financial Affidavit (CS-PO31). When the petitioning parent returns the CS-PO31, the Department will file a petition with the clerk of court to determine paternity and support obligation and to obtain a civil case number. If the other parent does not return the CS-PO31, the Department shall initiate case closure if the petitioning parent is not receiving public assistance. If the petitioning parent is receiving Medicaid or food assistance, the Department shall report noncooperation to the Department of Children and Families as required by Section 409.2572, F.S., and initiate case closure. If the petitioning parent is receiving temporary cash assistance for the child, the Department shall prepare a financial affidavit for the other parent as authorized by Section 61.30(15), F.S. When the Department receives a stamped copy from the clerk, it sends one copy of the petition to the alleged father by certified mail, return receipt requested. Along with the copy of the petition, the Department sends a Notice of Commencement of Action and Request for Waiver of Service of Process Administrative Paternity and Support Proceeding, CS-OA18 form. The Department also sends two copies of the Waiver of Service of Process, CS-OA19 form. If the respondent is represented by an attorney, the Department sends the packet of forms and petition to the respondent’s attorney. The alleged father has 10 days after the receipt of these forms to complete one copy of the CS-OA19, and return it to the Department. If the Department does not receive the signed completed CS-OA19, within 10 days or if the alleged father does not respond to the Notice of Proceeding, the Department proceeds with the administrative establishment of paternity and support by issuing a Proposed Administrative Paternity and Support Order, CS-OA20, or referring the proceeding to the Division of Administrative Hearings without issuing a Proposed Administrative Paternity and Support Order if the Department determines that an evidentiary hearing is appropriate to determine the respondent’s income. The Department will also file a voluntary dismissal of the civil case with the clerk of court and mail a copy of the voluntary dismissal to the respondent.

3. If the alleged father completes and returns the CS-OA19, within 10 days, the Department sends the petitioner the Dismissal of Administrative Proceeding, CS-OA88 form. The Department will end the administrative proceeding and proceed in circuit court.

(14) Proposed Administrative Paternity and Support Order.

(a) Not sooner than 20 days after serving the Notice of Proceeding to Establish Administrative Support Order form, CS-OA01, under subsection (13), the Department will calculate the respondent’s support obligation using the child support guidelines in Section 61.30, F.S. If the respondent does not provide financial information within the time required by Sections 409.2563(13)(a) and (b), F.S., the Department will impute income as provided Section 61.30(2)(b) or 409.2563(5), F.S., as applicable.

(b) Calculation of the respondent’s retroactive support obligation will be in accordance with Section 61.30(17), F.S. Retroactive support will be addressed in an initial determination of child support.

(c) The Department will prepare a Proposed Administrative Paternity and Support Order (CS-OA20), which for purposes of the rule is entitled Proposed Order, that establishes the terms of the support obligation and includes, at a minimum, all elements contained in Section 409.2563(7)(e), F.S. The Department will mail the Proposed Order to the respondent by regular mail to the respondent’s address of record. The Proposed Order will include a notice of rights that informs the respondent of the right to an informal discussion with the Department, the right to a formal administrative hearing, and the right to consent to the entry of an Administrative Paternity and Support Order. Copies of the child support guidelines worksheet prepared by the Department and the financial affidavit submitted by the other parent are mailed with the Proposed Order. The Department will provide a copy of the Proposed Order and its attachments to the petitioner at the petitioner’s address of record.

(d) The Department may proceed with the administrative establishment of paternity and support by either sending the alleged father a Proposed Administrative Paternity and Support Order, CS-OA20, or referring the proceeding to the Division of Administrative Hearings without issuing a Proposed Administrative Paternity and Support Order if the Department determines that an evidentiary hearing is appropriate to determine the respondent’s income. The Department will calculate the respondent’s support obligation using the child support guidelines in Section 61.30, F.S. If the respondent does not provide financial information within the time required by Sections 409.2563(13)(a) and (b), F.S., the Department will impute income as provided by Section 61.30(2)(b), F.S., or impute income at fulltime minimum wage as provided by Section 409.2563(5)(a), F.S. Calculation of the respondent’s retroactive support obligation is in accordance with Section 61.30(17), F.S. Retroactive support is addressed in an initial determination of child support. The Department uses a Proposed Administrative Paternity and Support Order (http://www.flrules.org/Gateway/reference.asp?No=Ref-15867), CS-OX20, effective 09/23, and incorporated by reference, when a proceeding involves more than one child and paternity has already been established for one or more of the children. The Proposed Administrative Paternity and Support Order may include terms for monetary support, retroactive support, health insurance, and non-covered medical expenses as appropriate. The Proposed Administrative Paternity and Support Order tells the alleged father that the Department intends to issue an administrative order establishing paternity and a support obligation for the child or children listed in the Proposed Administrative Paternity and Support Order. When an agreed to and signed parenting time plan is provided by the parents, it is enclosed with Proposed Order. If a signed parenting time plan is not enclosed, the Department will provide a blank Title IV-D Standard Parenting Time Plan, CS-OA250, with form CS-OX20 except as provided by paragraph (6)(a).

(e) The Proposed Order must include an explanation of any deviations from the guidelines the Department considered when calculating the support obligation and any retroactive support owed.

(f) If additional facts or information become available to the Department that materially changes the Proposed Order, the Department shall prepare an Amended Proposed Administrative Paternity and Support Order form, CS-OA20 (from now on referred to as the Amended Proposed Order). An Amended Proposed Order shall include guideline worksheets to explain the changes and the requirements established in Section 409.2563(5)(a), F.S. The Department does not amend the Proposed Order if the additional facts or information become available after the respondent has requested an administrative hearing. Any additional facts or information are addressed at the hearing.

(g) The Proposed Order also informs the alleged father of his rights to contest the Proposed Administrative Paternity and Support Order. The alleged father’s rights to contest the Proposed Administrative Paternity and Support Order, CS-OA20, CS-OX20, or the Proposed Order for Paternity, CS-OP30, discussed in subsection (12), are:

1. Informal Review. The alleged father has the right to an informal review, and may contact the Department within 10 days after the mailing date of the proposed order to ask for an informal review. The alleged father may ask for an informal review either orally or in writing. If the informal review results in a change to the proposed order or if an error is detected, the Department will issue either an Amended Proposed Order of Paternity, CS-OP30, or an Amended Proposed Administrative Paternity and Support Order, CS-OA20. The Department may discontinue the support proceeding if the alleged father provides proof that an obligation should not be established. Types of circumstances where the Department would not proceed to render a support obligation includes: all children reside with the alleged father, or the alleged father, mother, and children reside together. If at the conclusion of the informal review the Department intends to render a final order, it will tell the alleged father using the Notice of Conclusion of Informal Discussion Administrative Paternity and Support Proceeding form, CS-OA32.

2. Administrative Hearing. The alleged father or the Department has the right to an administrative hearing. To request an administrative hearing, the respondent must submit a written request to the Department’s Deputy Agency Clerk at the address provided in the Proposed Order. If the alleged father wishes to ask for an administrative hearing, he has 20 days after the mailing date of the Proposed Administrative Paternity and Support Order or the Proposed Order for Paternity or, if the Department receives an informal review request timely, 10 days from the mailing date of the CS-OA32, whichever is later. If the Department receives the request for administrative hearing timely, it will refer the request to the Division of Administrative Hearings. If the request is received timely, the Department sends the respondent the Acknowledgment of Hearing Request Administrative Proceeding, form CS-OA55, notifying the respondent that the request that the Department will proceed with a hearing. The Department also sends the request to the Florida Division of Administrative Hearings. The Division of Administrative Hearings notifies the Department, respondent, and petitioner in writing of the date, time, and place of the hearing. If the Department receives an untimely request for an administrative hearing, the Department denies the request and sends the respondent the Acknowledgment of Hearing Request Administrative Proceeding, form CS-OA55. This form notifies the respondent that the request was not timely and the Department will proceed without a hearing.

(h) The genetic test results will be admitted as evidence and made part of the hearing record. If the statistical probability equals or exceeds a 99% probability that the alleged father is the biological father, there is a presumption of paternity. The presumption can be rebutted only by clear and convincing evidence to the contrary.

(i) If the Department determines that an administrative hearing is appropriate, it may refer the proceeding to the Division of Administrative Hearings without issuing a Proposed Administrative Paternity and Support Order. At the hearing, the administrative law judge may issue a final order that addresses paternity, or paternity and support. The administrative law judge will also determine any applicable retroactive support and include it as a sum certain in the final order. The retroactive support will be calculated for the 24 months prior to the date of the service of process for the Notice of Proceeding to Establish Paternity. If the administrative law judge issues an order, the Department will render it.

(15) Final Order Establishing Paternity or Paternity and Child Support.

(a) The Department will render a Final Order of Paternity (http://www.flrules.org/Gateway/reference.asp?No=Ref-15868), CS-OP50, effective 09/23, or a Final Administrative Paternity and Support Order (http://www.flrules.org/Gateway/reference.asp?No=Ref-15869), CS-OA40, effective 09/23, both forms incorporated by reference, if the alleged father does not ask for a hearing timely. The Department may use a Final Administrative Paternity and Support Order (http://www.flrules.org/Gateway/reference.asp?No=Ref-15870), CS-OX40, effective 09/23, and incorporated by reference, in cases where there is more than one child on the order and paternity does not need to be established for all of the children. In addition to the Final Administrative Paternity and Support Order, the Department enters an Income Deduction Order as part of the Final Administrative Paternity and Support Order. The respondent is responsible for making the ordered payments to the State Disbursement Unit until the income deduction begins.

(b) If a parenting time plan is not incorporated into the final order, the Department will provide each parent a blank Petition to Establish a Parenting Time Plan, except as provided by paragraph (6)(a). The Petition to Establish a Parenting Time Plan is available at floridarevenue.com/childsupport/parenting_time_plans.

(c) A respondent may consent to the entry of a final order any time after the receipt of the Initial Notice. To do this, the respondent must complete and return the Waiver of Opt-Out Administrative Proceeding (CS-PO384), (http://www.flrules.org/Gateway/reference.asp?No=Ref-08647), incorporated by reference, effective 09/19/2017, after the respondent receives the Initial Notice Packet. If the respondent returns the Waiver of Opt-Out Administrative Proceeding, Financial Affidavit, and Parent Information Form, the Department sends the respondent the Waiver of Administrative Hearing (CS-ES97), (http://www.flrules.org/Gateway/reference.asp?No=Ref-08648), incorporated herein by reference, effective 09/19/2017. The Department also sends a copy of the Proposed Administrative Support Order discussed in subsection (12) of this rule. If the respondent completes and returns the CS-ES97, the Department need not wait 27 days from sending the Proposed Order to complete and render a Final Administrative Paternity and Support Order, CS-OX40. If the respondent does not return the CS-ES97, the Department waits at least 27 days after sending the Proposed Order before completing a Final Administrative Paternity and Support Order.

(d) Any Final Order of Paternity or Final Administrative Paternity and Support Order rendered as allowed by this rule has the same effect as a judgment entered by the circuit court pursuant to Chapter 742, F.S.

(e) The Department will notify the Department of Health’s Bureau of Vital Statistics when paternity is established for a child under this rule. The Department will ask the Bureau of Vital Statistics to amend the child’s birth certificate to include the name of the legal father. In cases where the child was born in a state or U.S. Territory other than Florida, the Department will send a copy of the Final Order of Paternity or Final Administrative Paternity and Support Order to the birth registrar where the child was born.

(16) Judicial Enforcement of Administrative Support Order. The Department may initiate judicial enforcement of an administrative support order by filing a petition for enforcement of administrative paternity and support order in circuit court. To do this, the Department must serve the respondent with a summons and a copy of the petition. If the circuit court issues an order enforcing the administrative paternity and support order, and the respondent does not comply, the Department may initiate contempt proceedings for violation of the court order.

(17) Right to Judicial Review.

(a) Each Final Order of Paternity or Final Administrative Paternity and Support Order rendered by the Department shall inform the adversely affected party of his or her right to judicial review. The adversely affected party must file a Notice of Appeal within 30 days after the date of rendition of the final order.

(b) The Department has 30 days to ask for judicial review of any Final Order of Paternity or Final Administrative Paternity and Support Order issued by an administrative law judge.

(18) Modification, Termination, or Suspension of a Final Administrative Paternity and Support Order. The Department shall follow the procedures in Section 409.2563, F.S., to modify, or terminate the support obligation of a Final Administrative Paternity and Support Order.

(19) Dismissing the Administrative Paternity Proceeding. At any time before the entry of a Final Order of Paternity or a Final Administrative Paternity and Support Order, the Department may end the administrative proceeding and either close the case or proceed judicially. Instances when the Department will not proceed administratively include: a previous judicial support order for the children is provided by a party, the parties currently reside together as an intact family, or all the children reside with the alleged father. When the Department decides to end the administrative proceeding it will send the Dismissal of Administrative Proceeding form, CS-OA88, to the parties.

(20) Vacating Administrative Support Orders.

(a) The Department vacates an administrative support order when the order is rendered in error resulting in a fundamental defect, such as a lack of jurisdiction and other reasons listed in subparagraphs 1. through 3. Case situations that require vacating the administrative support order include:

1. The Department becomes aware of a support order that predates the administrative support order.

2. Information provided to the Department by another state was in error causing Florida to render an order when it did not have the authority.

3. The case did not meet the criteria listed in subsection (3).

(21) Forms. Members of the public may get copies of the forms used in this rule chapter, incorporated by reference, without cost, by writing to the Department of Revenue, Child Support Program, Attn.: Forms Coordinator, P.O. Box 8030, Tallahassee, Florida 32314-8030.

History

• Rulemaking Authority 409.2557(3)(p), 409.256(17), 409.25633(9) FS. Law Implemented 409.256, 409.2563, 409.25633 FS. History–New 4-5-16, Amended 9-19-17, 1-17-18, 9-17-18, 8-28-19, 11-12-20, 11-21-21, 6-9-22, 9-14-23, 11-16-23, Technical Change 4-27-26.

Fla. Admin. Code R. 12E-1.037 Notification to Withhold Support from Reemployment Assistance

(1) Definition. As used in this rule, the term “support obligations,” which is defined by Section 443.051(1)(b), F.S., means legally ordered payments or amounts due under a court order, administrative order, or judgment being enforced by the Department and that is issued by this state, another state, or a foreign country.

(2) Data exchange with the Florida Department of Commerce.

(a) The Department receives data files periodically from the Florida Department of Commerce and compares the reemployment assistance (formerly known as unemployment compensation) applicant information on the files to its own records of parents who owe support obligations and parents against whom the Department is seeking to establish a support obligation.

(b) If a name and social security number on a data file matches with a parent who has an open case in the Department’s records the Department adds the reemployment assistance information from the file to the parent’s child support case record.

(c) When a data file includes reemployment assistance applicants who do not match with a parent in the Department’s records the Department retains the nonmatching data for two years. The Department uses the data to perform data matching against parents with new cases opened by the Department during the two-year retention period.

(3) Notifying the Florida Department of Commerce of the withholding percentage.

(a) When the Department reports the names of reemployment assistance applicants owing support obligations as required by Section 443.051, F.S., the Department reports the withholding amount as a percentage of the reemployment assistance benefit amount.

(b) If a court enters a support order on or after July 1, 2006, that requires a reemployment assistance withholding percentage that is different than the 40 percent prescribed in Section 443.051(3)(b), F.S., the Department reports the court-ordered reemployment assistance withholding percentage.

(4) Maximum withholding percentage.

(a) The Department limits the reemployment assistance withholding percentage reported to the Florida Department of Commerce to no more than 40 percent per support order or a total of 50 percent of a parent’s reemployment assistance.

(b) When a parent has more than one support order requiring withholding from reemployment assistance, the Department adds the withholding percentages from each of the orders and reports the combined withholding percentage to the Florida Department of Commerce. If the combined withholding percentage exceeds 50 percent, the Department reports 50 percent as the withholding percentage. For example, if the parent has two support orders that each require withholding from reemployment assistance at a rate of 40 percent (totaling 80 percent), the Department reports 50 percent to the Florida Department of Commerce as the parent’s withholding percentage.

(5) Refunding collections that exceed the support obligation.

(a) If the withholding exceeds the parent’s total support obligation, including any delinquencies, arrearages, and retroactive support, the Department shall refund the amount of the excess withholding to the parent.

(b) In addition to refunding excess withholding amounts, the Department will calculate an adjusted withholding percentage that does not exceed the parent’s support obligation and notify the Florida Department of Commerce of the adjusted withholding percentage.

(c) If a subsequent reemployment assistance collection is withheld that exceeds the total support obligation as described in paragraph (5)(a), before the Florida Department of Commerce implements the adjusted withholding percentage, the Department will promptly refund the excess amount to the parent.

(6) To avoid withholding from reemployment assistance that exceeds the support obligation, the Department adjusts the withholding percentage when a parent who owes a support obligation contacts the Department if:

(a) The amount withheld exceeds the parent’s support obligations, in which case the Department reduces the reemployment assistance withholding percentage to the highest percentage that does not exceed the support obligations;

(b) The parent is paying the entire amount of the support obligation by income deduction from an income source other than reemployment assistance, in which case the Department adjusts the reemployment assistance withholding percentage to zero, or

(c) The deductions from an income source other than reemployment assistance satisfy only part of the support obligation, in which case the Department adjusts the reemployment assistance withholding percentage to the highest percentage that does not exceed the support obligation taking into account the deductions from the other income source.

(7) Support obligations for more than one case. When a parent owes support obligations for more than one child support case, the Department allocates each reemployment assistance withholding collection among the parent’s cases in the same proportion as the reemployment assistance withholding percentage for each of the parent’s support obligations. The following examples illustrate the allocation method.

(a) Example 1. If a parent has support obligations in two cases that have the same reemployment assistance withholding percentage, the Department splits the collection evenly and allocates the same amount to each case.

(b) Example 2. If a parent has support obligations in three cases that all have the same withholding percentage, the Department splits the collection evenly and allocates the same amount to each case.

(c) Example 3. If a parent has support obligations in two cases, and the withholding percentage is 20 percent in the first case and 40 percent in the second case, the Department allocates one-third of the collection to the first case and two-thirds of the collection to the second case.

(8) Bankruptcy. If the parent who owes support files bankruptcy, the withholding of current support from reemployment assistance may continue and is unaffected by the bankruptcy filing.

History

• Rulemaking Authority 409.2557 FS. Law Implemented 409.2557, 443.051 FS. History–New 9-19-17, Amended 9-4-25.

Fla. Admin. Code R. 12E-1.039 Request for Services

(1) Definitions. For purposes of this rule:

(a) “Public assistance recipient” means a person receiving temporary cash assistance under Section 414.095, F.S., Medicaid under Section 409.963, F.S., or food assistance under Section 414.31, F.S.

(b) “Alleged father” means “putative father” as defined by Section 409.256(1)(g), F.S., which is an individual who is or may be the biological father of a child whose paternity has not been established and whose mother was unmarried when the child was conceived and born.

(2) Services Provided. The Department establishes paternity; establishes, modifies, enforces, collects, and disburses support. The Department will initiate location activities to obtain address, asset, employment, health insurance, and personal identifying information in order to provide services.

(3) Eligibility.

(a) A parent, caregiver, or alleged father who has a need for services regarding a dependent child may apply for services.

(b) A public assistance recipient receiving temporary cash assistance or food assistance does not need to apply for services. A case is created automatically upon receipt of a referral from the Florida Department of Children and Families.

(c) A public assistance recipient receiving only Medicaid benefits must apply for services. A case is not automatically created.

(d) A former recipient of public assistance or child support services whose case has been closed and who wants the Department to resume services must complete an application.

(e) The Department provides services at the request of other states Title IV-D agencies, child support agencies from countries with which the State of Florida has a reciprocal agreement regarding child support, and to child support agencies or the equivalent in countries that have signed The Hague Convention on the International Recovery of Child Support and Other Forms of Family Maintenance.

(f) The Department does not provide services to a minor child seeking to collect support from a parent.

(g) The Department does not provide services to an adult seeking to collect support from a parent for the time during which the adult seeking to collect support was a dependent.

(4) Application.

(a) To apply for services, an individual who does not receive temporary cash assistance or food assistance must submit a signed and complete electronic or paper application. The Department will obtain information concerning parents and children including: name, address, date of birth, Social Security Number, employment, health insurance, military service, and other relevant information necessary to provide child support services.

1. An individual may submit the Online Application for Child Support Services form CS-ES51b through the Department’s website at floridarevenue.com. Form CS-ES51b, (http://www.flrules.org/Gateway/reference.asp?No=Ref-08649), is incorporated herein by reference effective 09/19/2017. The Department will send an electronic confirmation message to the applicant once the application is processed and the case has been opened.

2. A hardcopy application may be obtained by calling 1(850)488-KIDS (5437) or contacting a child support local office. Local child support office information is provided on the Department’s website floridarevenue.com.

a. Upon request, the Department will provide an individual who requests services with Forms CS-ES51 and CS-ES50. Form CS-ES51, Application for Child Support Services, is hereby incorporated by reference effective 09/23, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15871). Form CS-ES50, Application Instructions, is hereby incorporated by reference effective 12/21, (http://www.flrules.org/Gateway/reference.asp?No=Ref-13864). The applicant must complete and submit the CS-ES51 form provided.

b. When an applicant requests services for more than one child, the Department will provide the applicant a Child Information, Form CS-ES51ACI, for each additional child. Form CS-ES51ACI, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15872), is incorporated herein by reference, effective 09/23. The applicant must complete and submit the CS-ES51ACI form(s) provided.

c. When there is more than one alleged father, the Department will provide the applicant a separate Other Parent Information, Form CS-ES52, for each alleged father. Form CS-ES52, (http://www.flrules.org/Gateway/reference.asp?No=Ref-13867), is incorporated herein by reference, effective 12/21. The applicant must complete and submit the CS-ES52 form(s) provided.

d. When the applicant is applying for services for more than one child with different fathers, the applicant will be required to submit a separate application for each child and father.

(5) Supporting documents; additional requirements.

(a) An individual who applies for services under subsection (4) or who receives public assistance must:

1. Provide the Department all information necessary to process the request for services.

2. Provide the Department copies of all supporting documents, including: Final Judgment of Dissolution of Marriage, support order, birth certificate of child(ren) not born in Florida, paternity judgment, payment record, or written agreement between the applicant or public assistance recipient and the other parent concerning paternity, support, and parenting time, and other relevant documents necessary to provide child support services.

3. Provide a paternity declaration for each child who does not have a legal father.

a. The Department uses the Paternity Declaration, Form CS-PO34, for the mother and provides the form to each parent with the Application for Child Support Services. Form CS-PO34, (http://www.flrules.org/Gateway/reference.asp?No=Ref-13863), is incorporated herein by reference, effective 12/21.

b. The Department uses the Paternity Statement by Non-Parent, Form CS-PO102, for the non-parent caregiver. Form CS-PO102, (http://www.flrules.org/Gateway/reference.asp?No=Ref-08655), is incorporated herein by reference effective 09/19/2017.

c. The Department uses the Paternity Statement by Alleged Father, Form CS-PO103 for the alleged father. Form CS-PO103, (http://www.flrules.org/Gateway/reference.asp?No=Ref-12350), is incorporated herein by reference effective 11/20.

4. Provide a separate completed Father/Alleged Father Information form (CS-ES119) for each alleged father named on the paternity declaration. Form CS-ES119, (http://www.flrules.org/Gateway/reference.asp?No=Ref-13868), is hereby incorporated by reference, effective 12/21.

5. Provide the Department proof of health insurance if the child(ren) is insured.

6. Inform the Department of any changes in information for himself or herself, the child(ren) or other parent(s). This includes addresses, employment, phone numbers, and where the child(ren) resides.

7. Voluntarily submit to personal jurisdiction in Florida.

8. Cooperate with the Department as required by Rule 12E-1.008, F.A.C.

(6) Application and Referral Review.

(a) The Department will review applications submitted by an individual who does not receive temporary cash assistance or food assistance to determine whether the application is complete.

1. If the applicant returns some, but not all required information, or returns incomplete or inaccurate information, the Department will send the applicant Form CS-ES54, Request for More Information, by regular mail, requesting the missing, incomplete, or corrected information. Form CS-ES54, is hereby incorporated by reference, effective 09/19/2017, (http://www.flrules.org/Gateway/reference.asp?No=Ref-08657),

2. If the application is complete, the Department will send Form CS-ES55, Response to Request for Services and/or Information Request, to the applicant informing them the application was received. When additional information is required for the Department to proceed, the CS-ES55, will instruct the applicant to provide the required information within 30 days after the date of the notice. Form CS-ES55, (http://www.flrules.org/Gateway/reference.asp?No=Ref-14353), is hereby incorporated by reference, effective 07/22.

3. The Department will close the request for services case if an application is not returned or completed within 65 calendar days after the Department begins the application review.

(b) The Department will review public assistance referrals received from the Florida Department of Children and Families to determine whether additional information or documents are required to provide services.

1. The Department will send the Information Needed to Provide Services, Form CS-ES56, to the public assistance recipient informing them a request to open a child support case was received and additional information is required for the Department to proceed. Form CS-ES56, (http://www.flrules.org/Gateway/reference.asp?No=Ref-14354), is hereby incorporated by reference, effective 07/22.

2. The Department will provide the public assistance recipient Form CS-ES51ACI, Child Information, if there is more than one child in the household. The public assistance recipient must complete and submit the CS-ES51ACI form(s) provided.

3. The Department will notify the Department of Children and Family Services in accordance with Section 409.2572, F.S., if the public assistance recipient fails to provide all required information.

History

• Rulemaking Authority 409.2557(3)(h), (i) FS. Law Implemented 409.2567 FS. History–New 9-19-17, Amended 8-28-19, 11-12-20, 11-21-21, 6-9-22, 9-14-23.

Fla. Admin. Code R. 12E-1.040 Intergovernmental Forms

(1) Federally approved forms.

(a) As the state’s Title IV-D agency under Section 409.2557(1), F.S., the Department must use federally approved forms in intergovernmental cases involving child support programs in other states, foreign countries, and tribes, as required by 45 CFR 303.7(a)(4).

(b) The Department uses the General Testimony form (CS-IS21) to obtain a statement under penalty of perjury about the information and facts of the case from a person seeking to establish paternity, support, or paternity and support, or review or modification of a support order in an intergovernmental case. The Department requests information needed to prepare the General Testimony form from the petitioning parent. The Department provides the General Testimony form to the other government’s child support program. Form CS-IS21, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15873), is hereby incorporated by reference, effective 09/23.

(c) The Department uses the Declaration in Support of Establishing Parentage forms (CS-IS26 and CS-IS26a) to obtain a paternity affidavit from a person seeking establishment of paternity or paternity and support in an intergovernmental case. The Department provides Form CS-IS26 or CS-IS26a to the other government’s child support program. Form CS-IS26 is system-generated and populated with data previously obtained by the Department from the petitioning parent or governmental entity where the petitioning parent resides or applies for services. Form CS-IS26a is blank and includes Instructions for Completing the Declaration in Support of Establishing Parentage (Form CS-IS26i). Form CS-IS26, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15874), is hereby incorporated by reference, effective 09/23. Form CS-IS26a, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15875), is hereby incorporated by reference, effective 09/23. Form CS-IS26i, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15876), is hereby incorporated by reference, effective 09/23.

(2) Establishment of paternity and support or modification to add a child to a support order.

(a) The Department seeks information from the petitioning parent to complete Forms CS-IS21 and CS-IS26 when paternity or support is needed for a child when the alleged father does not reside in Florida.

(b) The Department uses the Information Needed to Establish a Support Order in Another State form (CS-IS72) to obtain information from the petitioning parent. Form CS-IS72, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15877), is hereby incorporated by reference, effective 09/23.

(c) When requesting establishment of paternity, the Department uses the Declaration in Support of Establishing Parentage form (CS-IS26a) to obtain information from the petitioning parent.

(d) Forms CS-IS72 and CS-IS26a are mailed to the petitioning parent for completion. The petitioning parent has 30 days after the date form CS-IS72 is mailed to complete and return it to the Department and, if requested by the Department, to complete and return Form CS-IS26a.

(e) If the petitioning parent does not timely return Form CS-IS72, or when requested Form CS-IS26a, the Department takes the following action:

1. If the petitioning parent receives cash assistance for the child and Form CS-IS26a is not requested, the Department prepares the General Testimony (CS-IS21) form, signs for the petitioning parent and requests services from the child support agency in a state with personal jurisdiction over the responding parent.

2. If the petitioning parent receives cash assistance for the child and Form CS-IS26a is requested or the petitioning parent does not receive cash assistance for the child, but receives Medicaid or food assistance, the Department reports noncooperation to the Department of Children and Families as required by Section 409.2572 F.S. In addition, the Department initiates case closure, unless there is a support order for another child on the case the Department is enforcing.

3. If the petitioning parent does not receive public assistance, the Department initiates case closure, unless there is a support order for another child on the case the Department is enforcing.

4. If a case is closed because the petitioning parent does not complete and return forms required under (2)(d), the Department will not re-open the case or provide services until the required forms are completed and returned to the Department.

(f) The Department prepares the General Testimony form (CS-IS21) using the information provided by the petitioning parent and mails it to them. When establishment or modification of a support order is requested, the Department includes Review and Sign Forms Needed to Obtain a Child Support Order (CS-IS73) with Form CS-IS21. If paternity is needed and Form CS-IS26a provided by the petitioning parent is incomplete, contains extraneous information or stray marks, the Department prepares Form CS-IS26 with the information provided by the petitioning parent and mails it to them. The petitioning parent has 30 days after the date Form CS-IS73 is mailed to review, correct, complete, sign and return the forms to the Department. Form CS-IS73, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15878), is hereby incorporated by reference, effective 09/23.

(g) If the petitioning parent does not sign and return the forms within 30 days after the date of mailing by the Department, the team member signs the forms and forwards them to the other government’s child support program.

(3) Review of support order in accordance with Rule 12E-1.041, F.A.C.

(a) The Department uses the Information Needed for Support Order Review in Another State form (CS-IS75) to obtain information from the petitioning parent. Form CS-IS75, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15879), is hereby incorporated by reference, effective 09/23. The petitioning parent has 30 days after the date Form CS-IS75 is mailed to them to complete and return the form to the Department.

(b) If the petitioning parent does not timely return Form CS-IS75, the Department stops the review and notifies the petitioning parent by mailing them the Support Order Review Update form (CS-POBA) incorporated by reference in Rule 12E-1.041, F.A.C.

(c) When the petitioning parent does not receive public assistance, the Department prepares the General Testimony form (CS-IS21) using the information provided by the petitioning parent and mails it to them with the Review and Sign Forms Needed to Review a Child Support Order form (CS-IS74). The parent has 30 days after the date Form CS-IS74 is mailed to them to review, correct, complete, sign and return the General Testimony form (CS-IS21) to the Department. Form CS-IS74, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15880), is hereby incorporated by reference, effective 09/23.

(d) If the petitioning parent does not return a signed Form CS-IS21 within 30 days after the date the form is mailed to them, the Department may sign the form for the petitioning parent.

(e) The Department sends Form CS-IS21 to the child support agency in the state with continuing, exclusive jurisdiction, as determined under Section 88.2051 F.S., to conduct a review of the support order and to modify the order, if appropriate.

History

• Rulemaking Authority 409.2557 FS. Law Implemented 88.3111(2), 88.3071(1)(a), 409.2557, 409.2561 FS. History–New 9-19-17, Amended 6-9-22, 10-26-22, 9-14-23.

Fla. Admin. Code R. 12E-1.041 Review for Modification of Support Order

(1) Initiating a review.

(a) The Department automatically initiates a monthly review of support orders to determine if modification is appropriate for cases in which the parent due support is receiving cash assistance from the Department of Children and Families, the support order has not been reviewed or modified for at least three years, and the Department has a mailing address for both parents, or caregiver, if applicable.

(b) A parent or caregiver may request the Department to review a support order to which they are a party by contacting the Department verbally or in writing. If the request is for one of the following reasons, the Department takes action to modify the support order, as appropriate, without conducting a review for modification:

1. A child of the parties has left or been added to the household of the parent due support.

2. There has been a change of custody of a child of the parties.

3. Extending support beyond the age of 18.

(c) The Department begins a review by mailing the applicable forms to both parents when the review is initiated under (1)(a) or to the parent who requests a review under (1)(b).

1. If the support order under review is an administrative support order issued by the Department, the forms consist of the Declaration of Change in Circumstances (CS-POBB), the Financial Affidavit (CS-OA11), and the Parent Information Form (CS-OA12). If the case is eligible for a parenting time plan under Rule 12E-1.030, F.A.C., the Title IV-D Standard Parenting Time Plan (CS-OA250) is included. Form CS-POBB, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15882), is hereby incorporated by reference, effective 09/23. Forms CS-OA11 and CS-OA12 are incorporated in Rule 12E-1.036, F.A.C.

2. If the support order under review is not an administrative support order issued by the Department, the forms consist of the Declaration of Change in Circumstances (CS-POBB) and the Family Law Financial Affidavit (Short Form) (CS-PO31). Form CS-PO31 is incorporated by reference in Rule 12E-1.036, F.A.C.

3. A caregiver is mailed Forms CS-POBB and CS-OA12 if the support order under review is an administrative support order issued by the Department and Form CS-POBB if the support order under review is not an administrative support order issued by the Department.

(d) When the review is initiated under (1)(a), the parents are requested to complete and return the forms within 20 days after the date that appears on Form CS-POBB. When the 20-day period expires, the Department proceeds with the review.

(e) When a review is initiated under (1)(b), the parent who requests the review must complete and return the forms within the time period specified in Form CS-POBB. If the forms are not completed and returned timely, the review is ended, and the requesting party is notified by the Support Order Review Update form (CS-POBA). Form CS-POBA, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15883), is hereby incorporated by reference, effective 09/23. If the requesting party returns the completed forms timely, the Department mails the applicable forms to the nonrequesting party for completion and return. If the forms mailed to the nonrequesting party are returned to the Department undelivered, the Department resends the forms to the party’s current address, if known. If the party’s current address is not known, the Department terminates the proceeding and notifies the requesting party by issuing Form CS-POBA that the review cannot be completed.

(f) The Department does not initiate or terminates a review when the parent who owes support is incarcerated. The Department notifies the parties that a review cannot be conducted by mailing the parties the Unable to Conduct Support Order Review Parent Who Owes Support in Jail form (CS-POBK). Form CS-POBK, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15884), is hereby incorporated by reference, effective 09/23.

(g) When the Department does not initiate or terminates a review and the parent who owes support is not incarcerated, the Department notifies the parties by issuing Form CS-POBA.

(2) Conducting the review.

(a) The requesting party must provide documentation showing a permanent, involuntary change of circumstance, which may include:

1. A change in either parent’s income. If the income of the parent who is ordered to pay support increases, the Department does not need to prove that the change is involuntary to proceed with support order modification.

2. A parent begins receiving Social Security Disability Income.

3. A parent or child becomes permanently disabled.

4. A change in a parent’s or child’s medical condition results in a reduced ability to pay support or an increased need for support.

5. An increased need for support.

(b) The Department uses the child support guidelines in Section 61.30, F.S., to calculate the amount of child support owed based on information provided by the parties and other relevant information obtained by the Department, such as state wage records obtained from the Florida Department of Commerce and income information provided by a parent’s employer or other payor of income.

(c) The Department begins a proceeding to modify a support order when:

1. It has been three years or more since the most recent support order review under Section 409.2564(11), F.S., or since the support order was entered or last modified; the child support amount calculated during the review varies from the child support amount in the support order by at least 10 percent or a minimum of $25.00 per month; and there is a permanent, involuntary change in circumstances.

2. It has been less than three years since the order was entered, modified, or reviewed under Section 409.2564(11), F.S.; the child support amount calculated during the review varies from the child support amount in the support order by at least 15 percent or $50.00 per month; and there is a permanent, involuntary change in circumstances.

(d) The Department notifies the parents of the results of a completed support order review.

1. When a support order review indicates an administrative support order should be modified, the Department proceeds in accordance with subsection 12E-1.030(14), F.A.C.

2. When a support order review indicates a judicial support order should be modified, the Department mails both parties the Results of Support Order Review form (CS-POBC). Form CS-POBC, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15885), is hereby incorporated by reference, effective 09/23.

3. When an administrative support order issued by the Department is reviewed and the review indicates there is not a substantial, permanent, or involuntary change in circumstances, the Department concludes the review by mailing the parties Form CS-POBC. When a support order review indicates the Department is unable to proceed with support order modification for reasons other than those stated in Form CS-POBC, the Department concludes the review by mailing the parties the Results of Support Order Review form (CS-POBCa). Form CS-POBCa, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15886), is hereby incorporated by reference, effective 09/23.

(3) Notice of right to request support order review and modification.

(a) If the mailing address of both parties is known, the Department mails the parties a Your Right to a Support Order Review form (CS-POBJ) at least once every three years in accordance with Section 409.2546(11), F.S. Form CS-POBJ, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15887), is hereby incorporated by reference, effective 09/23.

(b) The Department mails both parties the Right to Support Order Review Due to Incarceration form (CS-POBI) within 15 days after receiving information that the parent who owes support is incarcerated and will be incarcerated for at least 180 days. Form CS-POBI, (http://www.flrules.org/Gateway/reference.asp?No=Ref-15888), is hereby incorporated by reference, effective 09/23.

History

• Rulemaking Authority 61.13(1)(b)7., 61.14(1)(d), 409.2557(3)(p), 409.2563(7)(e), 409.2563(16), 409.25633(9) FS. Law Implemented 409.2563, 409.25633 FS. History–New 9-14-23.

Fla. Admin. Code R. 12E-1.042 Income Withholding

In accordance with Section 61.1301(1)(a)1., F.S., the notice used by the Department to implement income deduction in Title IV-D cases is the Income Withholding for Support form (CS-EF05/06). Form CS-EF05/06, (http://www.flrules.org/Gateway/reference.asp?No=Ref-16688), is hereby incorporated by reference, effective 06/24. The notice may be mailed to a payor of income or delivered electronically if the payor consents to electronic notification.

History

• Rulemaking Authority 409.2557(3), FS. Law Implemented 61.1301(1)(a)1. FS. History–New 9-14-23, Amended 6-20-24.

Division 12C Corporate, Estate and Intangible Tax

Chapter 12C-1 CORPORATE INCOME TAX

Fla. Admin. Code R. 12C-1.001 Explanation of Rules

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.01, 221.04 FS. History–New 10-20-72, Amended 12-18-83, Formerly 12C-1.01, Amended 12-21-88, 4-8-92, Repealed 3-13-00.

Fla. Admin. Code R. 12C-1.002 Declaration of Intent

Corporations and other artificial entities which are to become partners in a partnership which conducts business, derives income or exists within the state shall be subject to tax under the Florida Income Tax Code, without regard to any other factor which would determine the tax status of that partner for Florida income tax purposes. The partnership’s conduct of business, derivation of income or existence within Florida shall be deemed attributable to the partners, rather than to the partnership itself.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.02 FS. History–New 10-20-72, Formerly 12C-1.02, Amended 12-21-88.

Fla. Admin. Code R. 12C-1.003 Definitions

Any term used in these rules have the meaning which is ascribed to it in Chapter 220, F.S., unless a clearly different meaning is indicated from the context in which the term is used. For the purposes of these rules:

(1) “Apportionment” means the process of assigning business income between states by the use of a formula. If the business activity in respect to any trade or business of a taxpayer occurs both within and without Florida, and if by reason of such business activity, the taxpayer is taxable in another state, the portion of the net income (or net loss) arising from such trade or business which is derived from sources within Florida shall be determined by apportionment. For purposes of apportionment of income, a taxpayer is taxable in another state if:

(a) In that state the business is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or

(b) That state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.

(2) “Allocation” refers to the assignment of nonbusiness income to a particular state. Any taxpayer subject to the taxing jurisdiction of Florida must allocate all of its nonbusiness income or loss within or without Florida in accordance with Section 220.16, F.S.

(3) “Business activity” refers to the transactions and activity occurring in the regular course of a particular trade or business of a taxpayer.

(4) “Business income” means income arising from transactions and activity in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer’s regular trade or business operations. In essence, all income which arises from the conduct of trade or business operations of a taxpayer is business income. The income of a taxpayer is business income unless clearly classifiable as nonbusiness income.

Cross reference: Rule 12C-1.016, F.A.C.

(5) “Doing business” means actively engaging in any transaction for the purpose of financial gain. A taxpayer will be considered doing business within and without Florida if it has income from business activity which is taxable both within and without Florida. Income derived from or attributable to sources within Florida includes income from tangible or intangible property located or having a situs in Florida and income from any activities carried on in Florida, whether carried on in intrastate, interstate, or foreign commerce.

(6) “Written Notice” means any corporate income tax, franchise tax, or emergency excise tax return required by Section 220.22, F.S., formerly Section 221.04, F.S., or Rule 12C-1.022, F.A.C., amended returns (Form F-1120X or an amended F-1120 or F-1120A), or a final determination made pursuant to an audit.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.03, 220.13, 220.15, 220.16, 220.22, 220.63, 220.64 FS. History–New 10-20-72, Amended 10-8-74, 8-4-75, 9-6-76, 4-11-77, 12-18-83, Formerly 12C-1.03, Amended 12-21-88, 4-8-92, 5-17-94, 1-25-12.

Fla. Admin. Code R. 12C-1.011 Tax Imposed

(1) The following activities, notwithstanding others within the meaning of taxable privileges described in Section 220.02, F.S., will be construed as conducting business, earning or receiving income in Florida, or constitute those activities of a resident or citizen of Florida for purposes of this tax, and corporations participating therein are subject to taxation unless exempted by the constitution or the laws of the United States or of Florida.

(a) Incorporation in Florida. A Florida corporation is required to file a Florida corporate income/franchise tax return even though it has no physical existence or activity that takes place in Florida and it does business exclusively in other states or countries.

(b) Maintaining an office or other place of business in Florida. If a salesman holds out his home as an office, the corporation will be deemed to maintain an office in Florida whether or not the salesman is reimbursed for “office space.”

(c)1. Owning or leasing real or tangible personal property in this state.

2. Out-of-state leasing companies will become subject to the tax if tangible personal property that is leased to individuals or corporations, residing or existing outside the state, is transferred to a Florida location. A lessee company that routinely brings property into Florida will create a presumption that the leasing company’s property was brought into Florida. Unless the leasing company can show the property did not enter this state the leasing company will be subject to tax. Thus, leasing aircraft to commercial airlines that routinely fly aircraft into Florida will subject the leasing company to the tax. If the leasing company cannot determine whether the specific aircraft leased is flying into Florida, there will be a presumption that the aircraft has flown into the state if the airline that leased the aircraft routinely flies into Florida. However, if the leasing corporation can demonstrate that its aircraft are not flown into the state, the leasing companies will not be subject to Florida tax. Similarly, leasing railroad cars to shippers who, in turn, engage the services of railroad companies to haul the cars, which travel through Florida, will also subject the leasing company to tax within this state.

3. If a lease is treated as a conditional sales contract for federal tax purposes, the lessor shall not become subject to the Florida corporate income/franchise tax solely because of this paragraph. The making of a safe harbor election for federal tax purposes will not affect the determination for Florida tax purposes of whether the substance of the lease is a conditional sales contract.

(d) Maintaining within Florida a research facility for the exclusive use of a company.

(e) Maintaining in Florida an inventory or merchandise or material for sale, distribution, or manufacture, whether in public, owned, or rented warehouses.

(f) Maintaining in Florida an inventory of tangible personal property on consignment to dealers or agents for sale or display.

(g) Displaying the corporation’s merchandise in leased space on a prolonged or recurring basis.

(h) Assembling, installing, servicing, or repairing the taxpayer’s products in Florida by its agents or employees.

(i) Accepting orders in Florida by its employees.

(j) Selling goods through mobile stores (such as trucks with driver sales-persons).

(k) Making sales that are approved in the state by “independent contractors” who do not hold themselves out as engaged in selling, or soliciting orders for the sale of more than one principal; or making sales through the use of representatives in this state, when activities engaged in exceed those protected by P.L. 86-272 (15 U.S.C. ss. 381-384), which is incorporated by reference in Rule 12C-1.0511, F.A.C.

(l) Having employees that are present in Florida and that perform functions other than the solicitation of sales within Florida.

(m) Performing any service within Florida.

(n) Having corporate officers who have permanent or extended temporary residency (3 months in the aggregate of a 12 month period) within Florida who make management decisions while residing in Florida. If the only officer of the corporation or a key officer of the corporation is residing within Florida, management of the corporation is presumed to be occurring within Florida.

(o) Selling, managing, or providing consulting services in Florida for intangible assets. (Example, investment companies, trusts, brokers.) This does not include out-of-state corporations whose only activity is to manage out-of-state assets for Florida residents. For example, a New York investment company that continues to manage investments for a person who is now a Florida resident will not be subject to the tax for this limited connection with Florida.

(p)1. Selling or licensing the use of intangible property in Florida for taxable years beginning on or after January 1, 1994. For example, licensing the use of a trade name or trademark or patent to a business entity located in Florida will subject a corporation to the corporate income tax.

2. Corporations that during tax years beginning before January 1, 1994, not only licensed the use of a trade name or trademark to a business entity located in Florida, but also provided management services within Florida (including directing the purchases of supplies, on-site inspections, and training seminars within Florida) were subject to the Florida corporate income tax for all years these services were performed.

(q) Conducting seminars in Florida.

(r)1. Conducting management training courses for franchisees or affiliated corporations in Florida.

2. Regularly or systematically visiting franchisees or affiliated corporations in Florida in order to advise on business matters.

(s) Earning or receiving interest by a financial organization, as described in Section 220.15(6), F.S., from loans secured by real or tangible property located in Florida irrespective of place of receipt.

(t) Operating professional sports teams which engage in professional sports activities in Florida. There are a number of factors which are indicative of whether out-of-state corporations which engage in professional sports activities in Florida are conducting business or deriving income within the meaning and intent of Section 220.11(1), F.S.

1. Prior to the regular playing season the team may provide training for its athletes (players) including coaches, staff, etc., at facilities located in Florida. In the regular course of training, the teams will engage in practice or exhibition games in Florida.

2. During the regular playing season the team will play Florida-based teams in Florida.

3. After the close of the regular playing season the team may participate in playoff or championship games in Florida.

4. The corporation may have owned or rented real and tangible property in Florida for the conduct of training or other activities.

5. The corporation shares in gate receipts from games its teams play in Florida.

6. The corporation shares in radio and television receipts from local stations and from networks pursuant to the league contract, some portion of which is attributable to games played in Florida.

(u) Transportation companies traveling in Florida. All corporate transportation companies are subject to the Florida corporate income tax and are required to file Florida corporate income tax returns whenever they have revenue miles in Florida, as the term “revenue miles” is defined in Section 220.151, F.S. Transportation companies that deliver or pick up goods in Florida, as well as corporations that do not have a point of origin or termination within Florida, are subject to the Florida Income Tax Code whenever they have revenue miles in Florida.

(v) Foreign (out-of-state) corporations not otherwise subject to the law but who are partners or members of Florida partnerships or joint ventures are subject to the law by virtue of their membership in such partnerships or joint ventures. Florida partnerships are partnerships doing business, deriving income, or existing in Florida. A partnership will be considered to be existing within Florida if an active partner who participates in management decisions has permanent or extended temporary residency (for 3 months in the aggregate of a 12 month period) within Florida. If an active partner is residing within Florida, management of the partnership is presumed to be occurring within Florida.

(w) Insurers.

1. The issuing of policies of insurance or contracts of annuity under a certificate of authority issued by the Florida Office of Insurance Regulation where the policies or contracts are to be performed in Florida or where the policies insure or cover persons, property, subjects or risks located or resident in Florida.

2. The collecting of premiums on policies of insurance or contracts of annuity on such persons, property, subjects, or risks as described in subparagraph 1. above, when such policies were initially issued by an insurer possessing a certificate of authority issued by the Florida Office of Insurance Regulation.

3. The issuing of policies of insurance or contracts of annuity or the collecting of premiums without possessing a certificate of authority issued by the Florida Office of Insurance Regulation, when the issuing or collecting insurer would have been required to obtain a certificate of authority to engage in those activities.

4. The entering into contracts of reinsurance when such contracts of reinsurance are placed with an approved reinsurer by a ceding insurer domiciled or commercially domiciled in Florida as defined in Chapter 624, F.S., or by either an artificial entity domiciled or resident in Florida or a political subdivision of Florida where either the artificial entity or the political subdivision is engaged in self insurance.

5. Surplus lines insurers with an office or employees located in Florida.

(2) The following activities will not, in themselves, subject a foreign (non-Florida) corporation to the income/franchise tax. However, these exempted activities will not relieve a corporation from taxation if the corporation is otherwise subject to taxation.

(a) Maintaining an account in a Florida bank or savings association.

(b) Holding stock in a Florida corporation or a corporation that is subject to the Florida corporate income/franchise tax.

(c) Having an independent Florida accountant, attorney, or bookkeeper maintain accounting records, audit, or do tax preparation.

(d) Salesmen of the corporation soliciting sales of tangible personal property within Florida, provided none of the activities itemized in subsection (1), or any other activities which will subject the corporation to tax, are performed. The fact that the salesmen reside within Florida will not subject the corporation to the tax.

(e) Salesmen maintaining samples to demonstrate the product or give free samples to a customer. The samples may not be sold.

(f) Providing company cars to salesmen.

(3) Cross reference: Rule 12C-1.022, F.A.C.

(4) A taxpayer’s regular tax liability is equal to 5 1/2 percent of the taxpayer’s net income for the taxable year. However, Florida imposes a corporate alternative minimum tax (AMT). Corporations which pay federal AMT are required to compute Florida AMT. These corporations must compute both regular tax liability and AMT liability. The Florida tax due is the greater of these two amounts. Taxpayers use federal alternative minimum taxable income after the federal exemption allowed under s. 55(d)(2), I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C., as the starting point in computing Florida AMT. The Florida additions, subtractions and $5,000 exemption are generally the same regardless of the starting point. However, the amounts for some additions or subtractions may differ. For example, there is an adjustment to the addition of interest that is exempt for federal tax purposes or the addback of the federal net operating loss. The Florida AMT rate is 3.3 percent of Florida AMT net income.

Cross reference: subsection 12C-1.013(18), F.A.C.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.11, 220.22 FS. History–New 1-19-73, Amended 10-20-73, 8-23-76, 12-18-83, Formerly 12C-1.11, Amended 12-21-88, 1-30-90, 4-8-92, 5-17-94, 3-18-96, 3-13-00.

Fla. Admin. Code R. 12C-1.012 Net Income Defined

(1) For a taxpayer doing business within and without the state, net income shall be the portion of the taxpayer’s adjusted federal income for the taxable year which is apportioned to Florida under Section 220.15, F.S., plus the taxpayer’s nonbusiness income for the taxable year which is allocated to Florida under Section 220.16, F.S., less the allowable deduction for child-care facility start-up costs, less the amount of the exemption allowed the taxpayer under Section 220.14, F.S.

(2) For a taxpayer only doing business within the state, net income shall be the taxpayer’s adjusted federal income for the taxable year plus the taxpayer’s nonbusiness income for the taxable year which is allocated to Florida under Section 220.16, F.S., less the allowable deduction for child-care facility start-up costs, less the amount of the exemption allowed the taxpayer under Section 220.14, F.S.

(3) For the purpose of determining the deduction authorized by Section 220.63(5), F.S., any bank or banking organization, as defined in Section 220.62(1) or (4), F.S., is deemed to be an “international banking facility” to the extent that its eligible asset and liability accounts are segregated, or are capable of being segregated, whether or not such status has been established under any other applicable state or federal law.

(a) For the purpose of the sales factor used for apportionment, the “eligible gross income” giving rise to the deduction under Section 220.63(5), F.S., shall be excluded from both the numerator and denominator. Additionally, where the income from these assets is a loss, the removal of amounts from the taxable base will result in an addition to taxable income.

(b) Generally, the phrase “eligible asset and liability accounts” includes only international banking facility deposits, borrowings and extensions of credit as these terms are defined by the Florida Department of Financial Services.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.12, 220.13, 220.14, 220.15, 220.16, 220.63(5) FS. History–New 10-20-72, Amended 12-18-83, Formerly 12C-1.12, Amended 12-21-88, 4-8-92.

Fla. Admin. Code R. 12C-1.013 Adjusted Federal Income Defined

(1)(a) “Taxable income,” as defined by Section 220.13(2), F.S., is the starting point in determining Florida corporate income tax due.

(b) In general, “taxable income” is the amount of a corporation’s income that is subject to federal tax. However, the federal deductions provided for net operating losses, capital losses, excess charitable contributions, excess pension trust contributions, excess stock bonus and profit-sharing trust contributions are limited by Section 220.13(1)(b), F.S.

(c) Elections under s. 338(h)(10), I.R.C. For federal tax purposes, an election under s. 338(h)(10), I.R.C., can only be made if a consolidated return is being filed that includes both the target corporation and the selling consolidated group. The federal tax treatment of s. 338(h)(10), I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C., will be piggybacked to the greatest extent possible even though the taxpayer is not filing a consolidated Florida return. The target corporation should report the gain attributable to the deemed asset sale on its separate Florida return, if appropriate. The basis in the assets will then be stepped-up for Florida tax purposes to the same extent as for federal income tax purposes.

(d) “Taxable income” for an S corporation is defined as the amount subject to tax under s. 1374, I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C., (built-in gains or capital gains) or s. 1375, I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C. (passive investment income).

(e) For tax years ending on or after July 1, 1998, limited liability companies and foreign limited liability companies qualified to do business in Florida will be allowed to file in the same manner for Florida corporate income tax purposes as for federal tax purposes.

(2) A taxpayer’s “adjusted federal income” means an amount equal to the taxpayer’s taxable income, as defined in Section 220.13(2), F.S., adjusted for the Florida additions required by Section 220.13(1)(a), F.S., and the subtractions provided by Section 220.13(1)(b), F.S.

(3)(a) Adjustments to the federal taxable income reported on Form 1120 by a taxpayer may be necessary. That is, the federal taxable income reported on Form 1120 may not be the federal taxable income to which the additions and subtractions required by Section 220.13, F.S., are made. These adjustments include adjustments related to depreciation required under Sections 220.03(5)(b) and (c), F.S., and consolidated income adjustments for taxpayers grandfathered under the provisions of the flush left paragraph in Section 220.131(1), F.S. (1985).

(b) Depreciation adjustment.

1. If Election A was made pursuant to Section 220.03(5)(b), F.S., and depreciable assets were placed in service between January 1, 1981 and December 31, 1981, a depreciation adjustment must be computed for these assets. The adjustment is for the difference, if any, between the depreciation deducted for federal purposes for these assets and the depreciation allowable for these assets under the Internal Revenue Code of 1954, as amended and in effect on January 1, 1980.

2. If Election B was made pursuant to Section 220.03(5)(c), F.S., and depreciable assets were placed in service between January 1, 1981 and December 31, 1986, a depreciation adjustment must be computed for these assets. The adjustment is for the difference, if any, between the depreciation deducted for federal purposes for these assets and the depreciation allowable for these assets under the Internal Revenue Code of 1954, as amended and in effect on January 1, 1980.

(c) Consolidated return adjustment.

1. No consolidated income adjustment is allowed unless an election was properly made under Section 220.131(1), F.S., to file a consolidated return on the same basis as consolidated returns were filed prior to July 19, 1983. Such election must have been made within 90 days of December 20, 1984, or upon filing the taxpayer’s first return after December 20, 1984.

2. If this election was properly made, an adjustment will be required where the membership of the Florida affiliated group included in the Florida consolidated return differs from the membership in the federal affiliated group included in the federal consolidated return. The federal taxable income for the Florida affiliated group must be computed. The computation of the consolidated income of the Florida affiliated group must be made under the procedures, including all intercompany adjustments and eliminations, as are required by s. 1502, I.R.C. An adjustment is required for the difference, if any, between the income of the Florida and federal affiliated groups.

(4)(a) In computing regular tax due under Section 220.11(2), F.S., an addition to taxable income is required by Section 220.13(1)(a)2., F.S., for all interest which is excluded from federal taxable income, less the associated expenses that were disallowed. This addition includes interest income excluded under s. 103(a), I.R.C., principally interest from state and local debt obligations, and interest income derived from other obligations which are exempt from federal income tax by federal law, by state law, or by the terms of their issue.

(b) In calculating alternative minimum tax due pursuant to Section 220.11(3), F.S., an adjustment to the addition of exempt interest is provided. Cross reference: subparagraph 12C-1.013(19)(b)5., F.A.C.

(c) Earnings received on premiums paid by a savings and loan association into a secondary reserve maintained by the Federal Savings and Loan Insurance Corporation, an instrumentality of the United States, are not excluded from federal taxable income but are merely deferred. Such earnings are taken into account in accordance with the taxpayer’s method of accounting for federal income tax purposes.

(d)1. Where municipal bonds are acquired at market discount, and the discount is not considered to be tax-exempt interest for federal tax purposes, then for Florida tax purposes there will be no requirement for the discounted amount to be added back to federal taxable income. Premiums paid are considered to be an expense associated with exempt interest for purposes of Section 220.13(1)(a)2., F.S.

2. Subsection 1288(a), I.R.C., and Rev. Chapter 73-112 which is incorporated by reference in Rule 12C-1.0511, F.A.C., describes the position of the Internal Revenue Service. This treatment provides, to the extent the discount on state or municipal obligations is original issue discount, it is treated as tax-exempt interest. Therefore, corporations will be required for Florida tax purposes to add back the original issue discount as exempt interest in the same manner as provided by s. 1272, I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C.

(e) Dividends received from Federal Home Loan Bank stock issued prior to March 28, 1942, are not properly classifiable as interest and should not be added back to taxable income under the provision of Section 220.13(1)(a)2., F.S.

(5)(a) An addition is required by Section 220.13(1)(a)1., F.S., to federal taxable income equal to the amount of any tax upon or measured by income, paid or accrued as a liability to any state of the United States or to the District of Columbia, which is deductible from gross income in the computation of taxable income for the taxable year. There is no addition required for tax paid to a political subdivision of a state (for example, a city or county) or to the Commonwealth of Puerto Rico, or any territory or possession of the United States, or any foreign country.

(b) The intent of the Legislature when this provision was enacted was to prevent an erosion of the Florida tax base by the amount of the federal tax benefit obtained by paying state income taxes. Therefore, the taxpayer will only be required to add back the amount actually deducted, not an amount that could have been deducted. For example, a taxpayer pays corporate income taxes in 20 states. In computing the deduction allowable for federal purposes, the taxpayer forgets the income tax paid to Georgia. In computing the Florida corporate income tax, the taxpayer only adds back the tax deducted for the 19 states. There is no addback for the Georgia income tax that was not deducted for federal purposes, but was deductible under the Internal Revenue Code. If this error is later discovered, the Department will not require an addback of the amount of the Georgia tax.

(c) For purposes of this subsection, value added taxes will not be construed to be a tax upon or measured by income.

(6) Section 220.13(1)(a)4., F.S., requires a business to add back an amount equal to that portion of the wages or salaries paid or incurred for the taxable year which is equal to the amount allowable as an enterprise zone jobs credit. The addback is for the amount of the credit that is allowable, regardless of whether that amount of credit is actually used in the taxable year or carried forward under the provisions of Section 220.181(1)(d), F.S. Example: In 1992, a taxpayer pays salaries of $1,000 to “new employees”, as defined by Section 220.03(1)(q), F.S. Under the provisions of Section 220.181, F.S., the taxpayer would be allowed a credit of $150 (15%  $1,000). However, the taxpayer has a net operating loss for the taxable year. If the taxpayer intends to claim the $150 as a credit carryover in a future year, the taxpayer is required for the 1992 taxable year to addback $150 to federal taxable income (loss).

(7) Section 220.13(1)(a)5., F.S., requires a business to add back an amount equal to any ad valorem taxes paid which are allowable as an enterprise zone property tax credit. The addback is for the total ad valorem taxes paid or accrued in the taxable year that are eligible for the credit, regardless of whether that amount of credit is actually used in the taxable year or carried forward under the provisions of Section 220.182(1)(b), F.S.

(8)(a) Section 220.13(1)(a)6., F.S., provides for an addition of the amount of emergency excise tax paid or accrued which is deductible for federal income tax purposes.

(b) The Department will only require the taxpayer to add back the amount of emergency excise tax paid or accrued that was actually deducted, not the amount that could have been deducted.

(9) An addback is required by Section 220.13(1)(a)7., F.S., of the amount of assessments paid to guaranty associations which is allowable for the taxable year as a credit. This includes the amounts paid to the Florida Health Maintenance Organization Consumer Assistance Plan.

(10)(a) There will be subtracted from taxable income, to the extent included therein, the amounts provided in paragraphs (b), (c), (d) and (e) of this subsection. However, as to any amount subtracted under this paragraph, such amount will be reduced by all expenses deducted on the taxpayer’s return for the taxable year which are attributable, directly or indirectly, to such subtracted amount. Further, no amount will be subtracted from federal taxable income with respect to dividends paid or deemed paid by a Domestic International Sales Corporation.

(b) A subtraction for subpart F income, included for federal tax purposes under s. 951, I.R.C., is not allowed for taxable years beginning before January 1, 1993. For taxable years beginning on or after January 1, 1993, a subtraction from adjusted federal income is provided for subpart F income reported under s. 951, I.R.C., net of associated expenses. To support the amount of subpart F income claimed, all federal forms, schedules and worksheets associated with I.R.S. Form 5471 must be attached to the Form F-1120.

(c) Dividends treated as received from sources without the United States, as determined under s. 862, I.R.C.

(d) All amounts included in taxable income under s. 78, I.R.C.

(e) All amounts included in taxable income under s. 951A, I.R.C.

(11) Any amount of nonbusiness income included in taxable income must be subtracted therefrom. Cross reference: Rule 12C-1.016, F.A.C.

(12) A Florida subtraction from taxable income is provided by Section 220.13(1)(b)3., F.S., equal to the Florida salary and wages included in determining the federal targeted jobs credit, which were disallowed as an expense on the federal return pursuant to s. 280C(a), I.R.C. There is no subtraction provided for an amount equal to the salary and wages paid to employees in other states which were disallowed as an expense pursuant to s. 280C(a), I.R.C.

(13) A subtraction from taxable income is provided by Section 220.13(1)(b)1., F.S., for the net operating loss deduction allowable for federal income tax purposes under s. 172, I.R.C., the net capital loss allowable for federal purposes under s. 1212, I.R.C., the excess charitable contribution deduction allowable for federal income tax purposes under s. 170(d)(2), I.R.C., and the excess contributions deductions allowable for federal tax purposes under s. 404, I.R.C. Form F-1120, the corporate income tax return, provides for an addback of these amounts subtracted for federal purposes and then a subtraction for these amounts for Florida purposes. The two-step process is for computational ease because the amounts allowed for federal and Florida purposes may be different. Differences may occur because of the apportionment ratio in the year of the loss or the use of the loss when either federal or Florida income was greater than the other.

(14) Adjustments for excess s. 179, I.R.C., expense, special 50 percent bonus depreciation (s. 168(k), I.R.C.), and deferred cancellation of indebtedness income.

(a) Additions Required:

1. For tax years that begin after December 31, 2007, and before January 1, 2015, taxpayers are required to add back the amount of the federal deduction claimed under s. 179, I.R.C., that exceeds $128,000, except for tax years beginning in 2010, in which case taxpayers are required to add back the amount of the federal deduction claimed under s. 179, I.R.C., that exceeds $250,000. All amounts in excess of $128,000 ($250,000 for tax years beginning in 2010) are required to be added back, including amounts carried over from previous tax years under s. 179(b)(3)(B), I.R.C. The increased overall investment limitation contained in s. 179(b)(2), I.R.C., is the same for Florida as it is for federal income tax purposes.

2. Taxpayers are required to add back the amount of the federal deduction claimed as bonus depreciation under s. 168(k), I.R.C., for assets placed in service after December 31, 2007, and before January 1, 2027.

3. For indebtedness acquired after December 31, 2008, and before January 1, 2010, taxpayers are required to add back the gross amount of cancellation of indebtedness income that is deferred under s. 108(i), I.R.C. (relating to business indebtedness discharged by the reacquisition of a debt instrument). The deferral of the deduction for original issue discount in debt for debt exchanges required by s. 108(i)(2), I.R.C., is also required for Florida corporate income tax purposes.

(b) Subtractions allowed for special 50 percent bonus depreciation and s. 179, I.R.C., expense previously added back:

1. In each of the seven tax years commencing with the year the addition is made under Section 220.13(1)(e), F.S., taxpayers may subtract one-seventh of the amount of excess s. 179, I.R.C., expense and one-seventh of the special 50 percent bonus depreciation that is added back under Section 220.13(1)(e), F.S.

2. The total amount that may be subtracted over the seven-year period should equal, but may not exceed, the amounts of s. 179, I.R.C., expense and special 50 percent bonus depreciation that have been added back to Florida taxable income under Section 220.13(1)(e), F.S.

3. Subtractions may be transferred to the surviving company in a merger or acquisition. Otherwise, if a taxpayer ceases to do business during the seven-year period, it may not accelerate, transfer, or otherwise utilize a subtraction.

(c) Subtractions for cancellation of indebtedness deferred under s. 108(i), I.R.C.:

1. Taxpayers may subtract the income required to be added back under Section 220.13(1)(e)3., F.S., when the deferred cancellation of indebtedness income is recognized for federal income tax purposes. The subtraction may not exceed the amount of income from deferred cancellation of indebtedness that is added back under Section 220.13(1)(e)3., F.S.

2. Cancellation of indebtedness income is included in the tax base, but it is excluded from the apportionment formula by all taxpayers under Section 220.15(5)(a), F.S.

(d) A schedule reflecting all of the adjustments made under Section 220.13(1)(e), F.S., must be created and maintained. Taxpayers must also report any additions on Schedule I, Additions and/or Adjustments to Federal Taxable Income, of the Florida Corporate Income/Franchise Tax Return (Form F-1120, incorporated by reference in Rule 12C-1.051, F.A.C.), and any subtractions on Schedule II (Subtractions from Federal Taxable Income), of the return for the current tax year. Partnerships filing a Florida Partnership Information Return (Form F-1065, incorporated by reference in Rule 12C-1.051, F.A.C.), are required to make the adjustments required by Sections 220.13(1)(e)1. and 3., F.S., on Part I (Florida Adjustment to Partnership Income), of the return. The additions and subtractions under Sections 220.13(1)(e)1. and 3., F.S., must be reported in Part I of Form F-1065. Partnerships must report the amount of expenses claimed under s. 179, I.R.C., to their partners, so that their partners can compute the amount under subparagraph (14)(a)1., F.A.C.

(e) Basis of Property. The adjustments required by Sections 220.13(1)(e)1. and 2., F.S. (relating to excess s. 179, I.R.C., expense and special 50 percent bonus depreciation), do not affect the basis of the underlying property. The basis of the property for Florida corporate income tax purposes is the same as the basis of the property for federal income tax purposes. If the property is sold or otherwise disposed of, the gain or loss for Florida corporate income tax purposes is the same as the gain or loss for federal income tax purposes and is included in federal taxable income apportioned to Florida. Differences in the apportionment fraction from one year to the next are disregarded. The applicable depreciation conventions, methods, and recovery periods are computed in the same manner as they are computed in determining federal taxable income.

(f) Example: On its calendar-year 2014 federal income tax return, Taxpayer claimed $250,000 in s. 179, I.R.C., expense, of which $25,000 was a carryover from 2011 allowed under s. 179(b)(3)(B), I.R.C. Taxpayer also claimed $300,000 in special 50 percent bonus depreciation under I.R.C. s. 168(k) and $50,000 of depreciation under I.R.C. s. 168(b) for assets placed in service during the 2014 calendar year. Taxpayer is required to add back $122,000 ($250,000 minus $128,000) of s. 179, I.R.C., expense and $300,000 of the special 50 percent bonus depreciation in computing its Florida taxable income. Taxpayer is not required to add back the amount of regular depreciation (non-special 50 percent bonus depreciation) it claimed under s. 168(b), I.R.C., on its 2014 federal income tax return. On its 2014 Florida corporate income tax return, the taxpayer may also claim subtractions for one-seventh of the amount of special 50 percent bonus depreciation required to be added back ($300,000 divided by seven equals $42,857.14) and one-seventh of the amount of s. 179, I.R.C., expense required to be added back ($122,000 divided by seven equals $17,428.57). In each of the subsequent six tax years, the Taxpayer may subtract $42,857.14 and $17,428.57. At the end of these years, the subtractions should equal the amount(s) required to be added back. If Taxpayer disposes of the property, the gain or loss is the same for Florida as it is for federal income tax purposes. Any differences resulting from additions to Florida income are recovered solely through the subtraction process, even though the underlying property may be disposed of or fully depreciated.

(g) Example: In 2009, Taxpayer purchased its own indebtedness, a $10,000 bond it had previously sold for face value. Taxpayer was able to reacquire its bond for $7,000 and elected to defer recognition of the $3,000 of cancellation of indebtedness income under s. 108(i), I.R.C. Under Section 220.13(1)(e), F.S., Taxpayer would add back the deferred cancellation of indebtedness income ($3,000) to Florida income. In 2014 through 2018 (five years from 2009), the Taxpayer is required under s. 108(i), I.R.C., to recognize the $3,000 of cancellation of indebtedness income it deferred in 2009. Therefore, Taxpayer would be allowed under Section 220.13(1)(e), F.S., to subtract the cancellation of indebtedness income as it is recognized for federal tax purposes (provided that this income was added back in computing Florida net income in 2009). When Taxpayer recognizes the $600 of cancellation of indebtedness income in 2014 for federal tax purposes, a Florida subtraction is allowed in 2014 for the same amount, $600. The addition and subtractions to income associated with the cancellation of indebtedness income are excluded from the sales factor of the apportionment formula.

(h) Example: In 2009, Taxpayer issued new indebtedness in order to acquire its previously issued indebtedness. Taxpayer issued a 10-year, $10,000 bond, for $9,000, which was used to purchase a $15,000 bond it had previously sold for face value. The Taxpayer makes an election under s. 108(i), I.R.C., to defer recognition of cancellation of indebtedness income. Taxpayer is prevented by s. 108(i)(2)(A), I.R.C., from amortizing the $1,000 original issue discount on the new $10,000 bond. Under Section 220.13(1)(e), F.S., Taxpayer would add back the deferred cancellation of indebtedness income of $5,000 to Florida income and would also be prohibited from amortizing the $1,000 original issue discount. When Taxpayer recognizes the $5,000 ($1,000 per year) in cancellation of indebtedness income for federal tax purposes, a Florida subtraction is allowed for the same amount (provided that this income was added back in computing Florida net income). The deduction for the $1,000 original issue discount will be recognized for Florida corporate income tax purposes when it is allowed as a deduction for federal tax purposes.

(i) The subtractions allowed by Section 220.13(1)(e), F.S., are the means by which the additions required by Section 220.13(1)(e), F.S., are reconciled and recovered. If a taxpayer does not claim a deduction for special 50 percent bonus depreciation, does not claim a deduction for s. 179, I.R.C., expense in excess of $128,000 ($250,000 for tax years beginning in 2010), or does not elect to defer cancellation of indebtedness income pursuant to s. 108(i), I.R.C., on the related federal income tax return(s), no add back is required or subtraction allowed for Florida corporate income tax purposes. Similarly, if a taxpayer did not add back special 50 percent bonus depreciation, or did not add back excess s. 179, I.R.C., expense, or deferred cancellation of indebtedness income because, for example, it was not subject to the Florida corporate income tax in that year, no subtraction is allowed for Florida corporate income tax purposes.

(j) Bonus depreciation claimed for assets placed in service prior to January 1, 2008, is not required to be added back under Section 220.13(1)(e), F.S., Section 179, I.R.C., expense claimed in tax years beginning before January 1, 2008, is not required to be added back. No subtraction is allowed for special 50 percent bonus depreciation, s. 179, I.R.C., expense, or deferred cancellation of indebtedness income unless it has been added back in computing Florida taxable income under Section 220.13(1)(e), F.S.

(15) Net Operating Losses.

(a) Generally, Florida law follows the Internal Revenue Code with respect to the computation and handling of a net operating loss (NOL). However, under Section 220.13(1)(b)1., F.S., a net operating loss may not be allowed as a carryback to years prior to the year of the loss. It may be allowed only as a carryover (NOLCO) and is treated in the same manner and for the same period of time as allowed in s. 172, I.R.C.

(b) In all cases, the NOLCO allowable for a taxable year will be applied after the apportionment factor for the current year has been applied against current year activities.

(c) The Florida portion of a federal loss is determined by the Florida apportionment factor in effect for the year the loss occurred.

(d) A Florida addition or subtraction under Section 220.13(1), F.S., never creates an NOL or increases the amount of a federal NOL. However, adjustments to federal taxable income such as the adjustment for long-term contracts and the adjustment for Election B required under the provisions of Section 220.03(5)(c), F.S., impact the net operating loss and therefore, the carryover for Florida purposes. While a Florida addition or subtraction may never increase the amount of the net operating loss carryover over the federal amount, an adjustment may increase or decrease the net operating loss carryover for Florida purposes.

(e) Section 220.13(1)(d), F.S., provides that no deduction for a NOL will be allowed in a tax year if in a prior tax year the losses have been allowed for Florida tax purposes, notwithstanding the fact that such deduction may not have been fully utilized for federal tax purposes. Therefore, a Florida addition may decrease the amount of NOL carryover the taxpayer has available for Florida purposes.

(f) Only the excess of Florida additions over Florida subtractions will dilute the amount of net operating loss carryover available to the following tax year. Example: A corporation’s taxable income for 1991 was $(200,000). The taxpayer was required pursuant to Section 220.13(1)(a)2., F.S., to addback $100,000 exempt interest. A subtraction of $50,000 was provided by Section 220.13(1)(b)2.b., F.S., for the gross-up of income required by s. 78, I.R.C. The net operating loss carryover will be diluted for Florida tax purposes only by the excess of Florida additions over Florida subtractions. The net operating loss carryover to 1992 will be calculated as $(200,000) ‒ ($100,000 ‒ $50,000). Therefore, the net operating loss carryover available for Florida tax purposes will be $150,000.

(g)1. When a corporation which was a member of an affiliated group that filed a consolidated return ceases to be a member of the affiliated group or is granted permission to file a separate return according to the provisions of Section 220.131, F.S., and Rule 12C-1.0131, F.A.C., the portion of any consolidated net operating loss attributable to that member will be determined as follows: The consolidated net operating loss is multiplied by a fraction, the numerator of which is the separate net operating loss of such corporation, and the denominator of which is the sum of the separate net operating losses of all members of the group in such year having such losses. The net operating loss carryover that is allocated to that corporation is based on the consolidated apportionment factor in effect for the year of the loss.

2. Example 1. ABC affiliated group filed a consolidated Florida return in 1992. The consolidated apportionment factor was .300000. The incomes (losses) of the members were as follows:

A

B

C

Consolidated

Federal Taxable

Income (Loss)

$(5,000)

$500

$(1,500)

$(6,000)

Florida Additions

-0-

-0-

-0-

-0-

Florida Subtractions

-0-

-0-

-0-

-0-

Total

$(5,000)

$500

$(1,500)

$(6,000)

Apportioned Loss

$(1,800)

A’s portion:

$(5,000)  $(6,000)  .300000 = $ (1,385)

(6,500)

B’s portion:

$0  $ (6,000)  .300000 = $ 0

C’s portion:

$(1,500)  $ (6,000)  .300000 = $ (415)

(6,500)

3. Example 2: ABC affiliated group filed a consolidated Florida return in 1992. The consolidated apportionment factor was .300000. The incomes (losses) of the members were as follows:

A

B

C

Consolidated

Federal Taxable

Income (Loss)

$(5,000)

$500

$(1,500)

$(6,000)

Florida Additions

1,000

-0-

-0-

1,000

Florida Subtractions

-0-

-0-

-0-

-0-

Total

$(4,000)

$500

$(1,500)

$(5,000)

Apportioned Loss

$(1,500)

A’s portion:

$(4,000)  $(5,000)  .300000 = $ (1,091)

(5,500)

B’s portion:

$0  $(5,000)  .300000 = $ 0

$(1,500)  $(5,000)  .300000 = $(409)

C’s portion:

(5,500)

4. Example 3: ABC affiliated group filed a consolidated Florida return in 1992. The consolidated apportionment factor was .300000. The incomes (losses) of the members were as follows:

A

B

C

Consolidated

Federal Taxable

Income (Loss)

$ (5,000)

$ 500

$ (1,500)

$ (6,000)

Florida Additions

-0-

1000

1,000

2,000

Florida Subtractions

1,000

-0-

-0-

1,000

Total

$(6,000)

$1,500

$(500)

$(5,000)

Apportioned Loss

$(1,500)

A’s portion:

$(6,000)  $ (5,000)  .300000 = $ (1,385)

6,500

B’s portion:

$0  $(5,000)  .300000 = $ 0

C’s portion:

$( 500)  $(5,000)  .300000 = $(115)

(6,500)

It should be noted that the reason the subtraction is allowed to increase the NOL allocated to A is that subtractions are allowed to the extent of additions in calculating the net operating loss carryover. Therefore, all of the subtraction was allowed in computing the consolidated NOL carryover.

5. Example 4: ABC affiliated group filed a consolidated Florida return in 1992. The consolidated apportionment factor was .300000. The income (losses) of the members were as follows:

A

B

C

Consolidated

Federal Taxable

Income (Loss)

$(5,000)

$500

$(1,500)

$(6,000)

Florida Additions

-0-

-0-

-0-

-0-

Florida Subtractions

-0-

-0-

(2,000)

-0-

Total

$(5,000)

$500

$(1,500)

$(6,000)

Apportioned Loss

$(1,800)

A’s portion:

$(5,000)  $ (6,000)  .300000 = $ (1,385)

6,500

B’s portion:

$ 0  $ (6,000)  .300000 = $ 0

C’s portion:

$ (1,500)  $ (6,000)  .300000 = $ ( 415)

(6,500)

The subtractions for C are not included within the calculation of the allocation of the NOL because the subtractions may not increase the consolidated NOL.

(h) In the event of a corporate reorganization in which the tax attributes are carried over for federal tax purposes (for example, as provided in s. 381, I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C.), the net operating losses will be carried over for Florida purposes.

(i) Net operating losses carried over into unitary reporting years are limited by the separate return limitation year (SRLY) rules promulgated under the I.R.C. For taxable years beginning on or after September 1, 1982, and before September 1, 1984, the unitary reporting concepts must be used by members of a unitary business group. A net operating loss incurred during a unitary reporting year, determined before application of the NOLCO from any prior year, is attributed to each unitary group member based on its share of the unitary group’s combined net operating loss for that year. A member’s share of the unitary NOL is determined by multiplying the combined NOL by a factor which consists of that member’s own Florida numerators over the group’s combined denominators. In a tax year subsequent to the unitary years, the use of the attributable share of this NOLCO is limited by the member’s adjusted federal income or share thereof, determined before subtraction of the NOLCO, apportioned to Florida for the subsequent tax year.

(j) Section 382, I.R.C., generally limits on an annual basis the use of a net operating loss carryforward of an acquired corporation to the equity value of the acquired corporation at the time of acquisition multiplied by a defined interest rate factor. Florida piggybacks the federal provisions in s. 382, I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C., concerning the limitation on the use of any NOL carryforward of an acquired corporation. In computing the Florida corporate income tax, a deduction for the NOL carryover will be allowed to the extent of the amount allowed for federal purposes, provided that the deduction does not exceed the total amount of the Florida NOL carryover available in such taxable year.

(k) Section 108, I.R.C., limits any net operating loss or net operating loss carryover in a year in which there has been a discharge of indebtedness. Florida piggybacks the federal provisions in s. 108, I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C., concerning the limitation of any net operating loss or net operating loss carryover in a year in which there has been a discharge of indebtedness. For Florida purposes, the net operating loss must be recalculated to reflect the reduction for any discharge of indebtedness. This amount is adjusted by the additions and subtractions required by Section 220.13, F.S. The apportionment factor for the year of the loss would then be applied.

(l) With respect to Florida’s AMT, the Florida Income Tax Code does not create a separate NOL for AMT purposes. Therefore, any amount of a NOL carryover that is allowed to be subtracted in calculating Florida tax due, whether regular tax or AMT, will reduce the amount of NOL carryover available. Section 220.13(1)(d), F.S., provides that no deduction for NOLs will be allowed in a tax year if in a prior tax year the losses have been allowed for Florida tax purposes, notwithstanding the fact that such deduction may not have been fully utilized for federal tax purposes. Example: A taxpayer calculates the 1991 tax liability as follows:

Regular tax

AMT

Tentative apportioned adjusted federal income

$1,500,000

$2,500,000

NOL carryforward available

(2,000,000)

(2,000,000)

Adjusted federal income apportioned to Florida

$(500,000)

$500,000

The taxpayer would not have any NOL carryover available for use in subsequent years since the $2,000,000 of NOL carryover was already allowed for Florida tax purposes against the 1991 alternative minimum taxable income.

(m)1. A taxpayer may be allowed a net operating loss carryforward for Florida tax purposes from a year the corporation has federal and Florida alternative minimum tax due. The Florida net operating loss carryforward for Florida tax purposes will be limited to the amount of net operating loss carryforward available without the application of alternative minimum tax calculation.

2. Example: For 1991, the taxpayer’s regular federal taxable income was $(100,000). Due to federal alternative minimum tax adjustments and preference items the taxpayer paid federal alternative minimum tax. The taxpayer was required for Florida purposes to calculate both regular and alternative minimum tax. Florida additions to taxable income for regular tax purposes were $50,000. For Florida purposes, the taxpayer would be allowed a net operating loss carryover of $50,000 to subsequent tax years, even though Florida AMT was paid in 1991.

(16) Net Capital Loss Carryovers.

(a) A net capital loss may only be allowed as a carryover and is treated in the same manner and for the same period of time as allowed in s. 1212, I.R.C. In all cases, the net capital loss carryover allowable for a taxable year will be applied after the apportionment factor for the current year has been applied against current year activities.

(b)1. The Florida portion of a federal net capital loss carryforward is determined by the Florida apportionment factor in effect for the year the loss occurred.

2. If a corporation that was a member of an affiliated group that filed a consolidated return ceases to be a member of the affiliated group or is granted permission to file a separate return according to the provisions of Section 220.131, F.S. and Rule 12C-1.0131, F.A.C., the portion of any consolidated net capital loss attributable to that member is an amount equal to the consolidated net capital loss multiplied by a fraction, the numerator of which is the separate net capital loss of such corporation, and the denominator of which is the sum of the separate net capital losses of all members of the group in such year having such losses. The net capital loss carryover that is allocated to that corporation is based on the consolidated apportionment factor in effect for the year of the loss.

(c) For Florida income tax purposes, a capital loss is allowed to the extent it is allowed for federal tax purposes. That is, it is allowed to the extent of capital gains for federal purposes provided the deduction does not exceed the Florida carryover available.

(d) In the event of a corporate reorganization in which the tax attributes are carried over for federal tax purposes (for example, as provided in s. 381, I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C.), the net capital losses will be carried over for Florida purposes.

(17) Excess Charitable Contributions.

(a) The excess charitable contribution deduction provided by s. 170(d)(2), I.R.C., allowable for a taxable year will be applied after the apportionment factor for the current year has been applied against current year activities.

(b)1. The Florida portion of a federal excess charitable contribution carryforward is determined by the Florida apportionment factor in effect for the year the excess occurred.

2. If a corporation that was a member of an affiliated group that filed a consolidated return ceases to be a member of the affiliated group or is granted permission to file a separate return according to the provisions of Section 220.131, F.S., and Rule 12C-1.0131, F.A.C., the portion of any excess charitable contribution carryforward attributable to that member is an amount equal to the consolidated excess charitable contribution multiplied by a fraction, the numerator of which is the separate excess charitable contribution of such corporation, and the denominator of which is the sum of the separate excess charitable contributions of all members of the group in such year having such excess. The excess charitable contribution carryover that is allocated to that corporation is based on the consolidated apportionment factor in effect for the year of the excess.

(c) If a contribution is deductible according to the federal limitation of 10 percent of federal taxable income, there is no additional limitation for Florida. The deduction for the initial contribution is not limited to 10 percent of Florida’s taxable income; the federal deduction is simply already incorporated in federal taxable income, which is the starting point for Florida. The charitable contributions determined to be in excess for federal purposes are apportioned to Florida based upon Florida apportionment factor. This apportioned amount would be the Florida excess charitable contributions for the taxable year. A deduction for an excess contribution carryover would be allowed for Florida purposes to the extent claimed for federal purposes, as long as the deduction did not exceed the total amount of the Florida carryover to the taxable year. The excess charitable contribution deduction may not create or increase a net operating loss for Florida.

(d) In the event of a corporate reorganization in which the tax attributes are carried over for federal tax purposes (for example, as provided in s. 381, I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C.), the excess charitable contributions will be carried over for Florida purposes.

(18) Excess Contribution Deduction.

(a) The excess contributions deduction provided by s. 404, I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C., allowable for a taxable year will be applied after the apportionment factor for the current year has been applied against current year activities.

(b)1. The Florida portion of a federal excess contributions carryforward is determined by the Florida apportionment factor in effect for the year the excess occurred.

2. When a member of an affiliated group that filed a consolidated return is no longer included in the consolidated return of that affiliated group, the excess contributions carryover that is allocated to that corporation is based on the consolidated apportionment factor in effect for the year of the contribution.

(c) If a contribution is deductible according to the federal limitation, there is no additional limitation for Florida. The deduction for the initial contribution is not separately computed in computing Florida adjusted federal income; the federal deduction is simply already incorporated in federal taxable income, which is the starting point for Florida. The contributions determined to be in excess for federal purposes are apportioned to Florida based upon the Florida apportionment factor. This apportioned amount would be the Florida excess contributions for the taxable year. A deduction for an excess contribution carryover would be allowed for Florida purposes to the extent claimed for federal purposes, as long as the deduction did not exceed the total amount of the Florida carryover to the taxable year. The excess contribution deduction may not create or increase a net operating loss for Florida.

(d) In the event of a corporate reorganization in which the tax attributes are carried over for federal tax purposes (for example, as provided in s. 381, I.R.C., which is incorporated by reference in Rule 12C-1.0511, F.A.C.), the excess contributions will be carried over for Florida purposes.

(19) Florida Alternative Minimum Tax.

(a) For taxable years beginning on or after January 1, 2018, no taxpayer is required to pay Florida Alternative Minimum Tax (AMT) because no corporate income taxpayer is required to pay federal AMT. However, a taxpayer with previously earned Florida AMT credits must compute Florida AMT to determine the amount of Florida AMT credit allowable against Florida corporate income tax.

(b)1. For taxable years beginning before January 1, 2018, a corporation subject to the Florida Income Tax Code may be required to pay an alternative minimum tax. Florida AMT is equal to 3.3 percent of the Florida alternative minimum taxable income. Corporations required to pay federal AMT must compute the amount of regular Florida corporate income tax and the amount of Florida AMT that may be due. The corporation is liable for whichever amount is greater.

2. A taxpayer is not liable for the Florida AMT unless liable for the federal AMT. A taxpayer who is part of an affiliated group that filed a federal consolidated return and was not liable for federal AMT is not liable for Florida AMT when filing on a separate return basis. The entity is not subject to Florida AMT regardless of the amounts of federal tax preference items contained in the separate return. A corporation that is part of an affiliated group that filed a consolidated return for federal income tax purposes, and paid the federal AMT, must compute Florida AMT, even if it files a separate return for Florida. This requirement applies even if the individual corporation would not have been subject to federal AMT if a separate return had been filed.

3. The computation of the Florida alternative minimum taxable income is similar to the computation of the regular Florida taxable income. The primary difference is the starting point for the computation. Florida uses federal alternative minimum taxable income as the starting point in determining Florida AMT, after allowance of the federal exclusion amount provided in s. 55(d)(2), I.R.C.

4. The adjustments, additions, and subtractions provided in Section 220.13, F.S., are applied to the Florida alternative minimum taxable income amount to arrive at adjusted federal income. The tax base is adjusted by the same type of adjustments, additions, and subtractions that are made to the regular federal taxable income when the regular Florida corporate income tax is computed. Because different amounts may be included within the base (the “starting point”), there may be differences in the amounts of the adjustments, additions, and subtractions.

5. An addition that must be made when computing the Florida AMT is for the amount of interest that is exempt for federal income tax purposes. Section 220.13(1)(a)2., F.S., requires interest excluded from federal taxable income under s. 103(a), I.R.C., less the associated expenses, be added to the taxpayer’s federal taxable income. However, this subparagraph excludes 60 percent of the amounts already included in the federal alternative minimum taxable income, including interest on private activity bonds issued after August 7, 1986. If the federal Adjusted Current Earnings adjustment includes interest exempt under s. 103(a), I.R.C., there is an exclusion of 60 percent of the amount included in the federal Adjusted Current Earnings adjustment.

6.a. An addition is required when computing the Florida AMT for the federal net operating loss (NOL) deduction. When computing adjusted federal taxable income on the Florida corporate income/franchise tax return for regular Florida tax purposes, the taxpayer must add back the amount of the regular federal NOL deduction. When computing adjusted federal taxable income on the Florida return for Florida AMT purposes, the taxpayer is only required to add back the amount of the federal AMT NOL deduction.

b. The Florida NOL deduction allowed, for purposes of AMT, is the Florida portion of the federal loss apportioned to Florida as provided in this section. The Florida Income Tax Code does not create a separate NOL for AMT purposes.

c. The Florida Income Tax Code does not limit the amount of the NOL deduction to 90 percent of the alternative minimum taxable income before the NOL deduction.

d. The amount of the Florida NOL carryover is reduced by the amount of the NOL deduction used in computing the Florida corporate income tax, whether AMT or regular corporate income tax is finally determined to be due.

e. As with regular Florida corporate income tax, the use of an NOL carryover is not optional. It will be deemed used if it is available.

f. Cross reference: subsection 12C-1.013(15), F.A.C.

7. A possible adjustment when computing Florida AMT is the depreciation adjustment for Election A and Election B taxpayers. If there is an adjustment that is required when computing federal AMT to the depreciation expense for property placed in service between January 1, 1981, and December 31, 1986, then the amount of adjustment required is different when Florida AMT is computed.

8. The Florida Income Tax Code allows the income tax credits listed in Section 220.02(8), F.S. to be used against the amount of Florida AMT due. The use of a tax credit against Florida AMT is not optional and will be deemed used if it is available.

9. If the Florida AMT is paid, an alternative minimum tax credit is allowed by Section 220.186, F.S., in subsequent years. Cross reference: Rule 12C-1.0186, F.A.C.

(20) Adjustments from partnerships. Parts I and II of Form F-1065, Florida Partnership Information Return, are used to report to the partner and the State each partner’s share of the Florida partnership’s adjustments.

(21) Notwithstanding any other provision of these rules, any increment of any apportionment factor which is directly related to an increment of gross receipts or income which is deducted, subtracted, or otherwise excluded in determining adjusted federal income shall be excluded from both the numerator and denominator of such apportionment factor. Further, all valuations made for apportionment factor purposes shall be made on a basis consistent with the taxpayer’s method of accounting for federal income tax purposes.

History

• Rulemaking Authority 213.06(1), 220.51 FS., Section 3, Chapter 2009-192, L.O.F. Law Implemented 220.02(3), 220.03(5), 220.13, 220.131(1), 220.43(1), (3) FS. History–New 10-20-72, Amended 1-19-73, 10-20-73, 10-8-74, 4-21-75, 5-10-78, 11-13-78, 12-18-83, Formerly 12C-1.13, Amended 12-21-88, 12-7-92, 5-17-94, 10-19-94, 3-18-96, 10-2-01, 4-14-09, 6-28-10, 7-20-11, 1-10-17, 1-8-19, 12-12-19, 10-27-22.

Fla. Admin. Code R. 12C-1.0131 Adjusted Federal Income; Affiliated Groups

(1) Unless otherwise distinctly expressed, the terms used in this section shall have the same meaning as when used in a comparable context in the federal income tax regulations for consolidated returns. The term “common parent” as used in the federal regulations shall have the same meaning for Florida corporate tax purposes, and all references to the “Commissioner” or “District Director” in the federal regulations shall be construed to mean “the Executive Director or the Executive Director’s designee” for purposes of these rules.

(a)1. An affiliated group of corporations, as defined in these rules, which did not file a Florida consolidated return for the immediately preceding taxable year, may file a consolidated return in lieu of separate returns for the taxable year, provided the common parent is subject to the Florida Income Tax Code and each corporation which has been a member during any part of the taxable year for which the consolidated return is to be filed consents, in the manner provided in paragraph (e) of this subsection, to be bound by the provisions of these requirements and all applicable sections of the federal consolidated returns regulations.

2. A subgroup of the affiliated group may not file a consolidated return.

(b) If a group wishes to exercise its privilege of filing a consolidated return, such consolidated return must be filed not later than the date prescribed, including extensions of time, for the filing of the common parent’s return. Such consolidated return may not be withdrawn after such last day but the group may change the basis of its return at any time prior to such last day.

(c) The consolidated return shall be made on Form F-1120 for the group by the common parent corporation. The parent corporation of the group must attach Form F-851 (affiliations schedule) to the consolidated return. If the Florida and federal groups are identical, a copy of federal Form 851 may be substituted for Form F-851.

(d) If a group wishes to exercise its privilege of filing a consolidated return, then a Form F-1122 must be executed by each subsidiary and must be attached to the consolidated return for such year. Form F-1122 shall not be required for a taxable year if a Florida consolidated return was filed (or was required to be filed) by the group for the immediately preceding taxable year.

(e) If any eligible member of the group fails to file Form F-1122, the Executive Director or the Executive Director’s designee may, under the facts and circumstances, determine that such member has joined in the making of a consolidated return by such group. If the Executive Director or the Executive Director’s designee determines that the member has joined in the making of the consolidated return, such member shall be treated as if it had filed a Form F-1122 for such year for purposes of paragraph (e) of this subsection. The following circumstances, among others, will be taken into account in making this determination:

1. Whether or not the income and deductions of the members were included in the consolidated return;

2. Whether or not a separate return was filed by the member for that taxable year; and,

3. Whether or not the member was included in the affiliations schedule, Form F-851 or federal Form 851, as provided in paragraph (d) of this subsection.

(f) If any eligible member has failed to join in the making of a consolidated return under either paragraph (e) or (f) of this subsection, then the tax liability of each member of the group shall be determined on the basis of separate returns unless the common parent establishes to the satisfaction of the Executive Director or the Executive Director’s designee that the failure of such member to join in the making of the consolidated return was due to a mistake of law or fact, or to inadvertence. In such case, such member shall be treated as if it had filed a Form F-1122 for such year for purposes of paragraph (e) of this subsection, and thus joined in the making of the consolidated return for such year.

(g) The common parent, for all purposes other than the making of the consent required by paragraphs (a) and (b) of this subsection, shall be the sole agent for each subsidiary in the group, duly authorized to act in its own name in all matters relating to the tax liability for the consolidated return year. No subsidiary shall have authority to act for or to represent itself in any such matter. The provisions of this paragraph shall apply whether or not a consolidated return is made for any subsequent year and whether or not one or more subsidiaries have become or have ceased to be members of the group at any time. If a subsidiary has ceased to be a member of the group and if such subsidiary files written notice of such cessation with the Executive Director or the Executive Director’s designee, then upon request of such subsidiary, the Executive Director or the Executive Director’s designee will furnish it with a copy of any notice of deficiency in respect of the tax for a consolidated return year for which it was a member. The filing of such written notification and request by a corporation shall not have the effect of limiting the scope of the agency of the common parent.

(h) Unless the Executive Director or the Executive Director’s designee agrees to the contrary, an agreement entered into by the common parent extending the time within which a notice of deficiency may be issued or levy or proceeding in court begun in respect of the tax for a consolidated return year shall be applicable to each corporation which was a member of the group during any part of such taxable year and to each corporation the income of which was included in the consolidated return for such taxable year, notwithstanding that the liability of any such corporation is subsequently computed on the basis of a separate return under these regulations.

(i) If the common parent corporation contemplates dissolution, or is about to be dissolved, or if for any other reason its existence is about to terminate, it shall forthwith notify the Executive Director or the Executive Director’s designee of such fact and designate another member to act as its agent in its place to the same extent and subject to the same conditions and limitations as are applicable to the common parent. If the notice thus required is not given by the common parent, the remaining members may, subject to the approval of the Executive Director or the Executive Director’s designee, designate another member to act as such agent, and notice of such designation shall be given to the Executive Director or the Executive Director’s designee. Until a notice in writing designating a new agent has been approved by the Executive Director or the Executive Director’s designee, any notice of deficiency or other communications mailed to the common parent shall be considered as having been properly mailed to the agent of the group. If the Executive Director or the Executive Director’s designee has reason to believe that the existence of the common parent has terminated, the Executive Director or the Executive Director’s designee may, if deemed advisable, deal directly with any member in respect of its liability.

(2) If the Executive Director or the Executive Director’s designee establishes that members of an affiliated group of corporations which are subject to tax have engaged in non-arms’s length transactions which cause a material distortion of income apportioned to this state, the Executive Director or the Executive Director’s designee may require the filing of a consolidated return in order to fairly represent the tax base attributable to this state.

(3)(a)1. A group which filed, or was required to file, a consolidated return for the immediately preceding taxable year is required to file a consolidated return for the taxable year unless it has permission to discontinue filing consolidated returns under paragraph (b) or (c) of this subsection; or as long as a federal consolidated return is filed.

2. The requirement set forth in Section 220.131(1), F.S., that the parent company of an affiliated group must be subject to the Florida Income Tax Code is a condition that is necessary for an affiliated group to make an election to file a Florida consolidated return. There is no requirement in Section 220.131, F.S., that the parent be subject to the Florida Income Tax Code in each subsequent year. Therefore, the affiliated group may not break its consolidated election because the parent company no longer has nexus with Florida.

(b)1. Notwithstanding that a consolidated return is required for a taxable year, the Executive Director or the Executive Director’s designee is authorized to grant permission to a group to discontinue filing consolidated returns. Any such application shall be made to Technical Assistance, P.O. Box 7443, Tallahassee, Florida 32314-7443, and shall be made not later than the 90th day before the due date for the filing of the consolidated return, including extensions of time. Permission to revoke will be contingent upon an agreement between the taxpayer and the Executive Director or the Executive Director’s designee to the terms, conditions, and adjustment under which the change will be effected.

2. The Executive Director or the Executive Director’s designee is authorized to grant permission to a group to discontinue filing consolidated returns if the net result of all amendments to the Florida Income Tax Code or the Internal Revenue Code or regulations with effective dates commencing within the taxable year has a substantial adverse effect on the consolidated tax liability of the group for such year relative to what the aggregate tax liability would be if the members of the group filed separate returns for such year. Other factors which will be taken into account in determining whether good cause exists for granting permission to discontinue filing consolidated returns beginning with the taxable year include:

a. Changes in law or circumstances, including changes which do not affect income tax liability;

b. Changes in law which are first effective in the taxable year and which result in a substantial reduction in the consolidated net operating loss for such year relative to what the aggregate net operating losses would be if the members of the group filed separate returns for such year; and,

c. Changes in the Florida Income Tax Code or the Internal Revenue Code or regulations which are effective prior to the taxable year but which first have a substantial adverse effect on the filing of a consolidated return relative to the filing of separate returns by members of the group in such year.

3. Permission to revoke may be contingent upon an agreement between the taxpayer and the Executive Director or the Executive Director’s designee to the terms, conditions, and adjustment under which the change will be effected.

(c) The Executive Director or the Executive Director’s designee may grant all groups or a particular class of groups permission to discontinue filing consolidated returns if any provision of the Florida Income Tax Code or the Internal Revenue Code or regulations has been amended and such amendment is of the type which could have a substantial adverse effect on the filing of consolidated returns by substantially all groups or all such groups, as the case may be, relative to the filing of separate returns. Ordinarily, the permission to discontinue shall apply to the taxable year which includes the effective date of such amendment.

(d) If a group has permission under paragraph (b) or (c) of this subsection to discontinue filing consolidated returns for any taxable year and such group wishes to exercise such election, then the common parent must file a separate return for such year on or before the last day prescribed by law including extensions of time for the filing of the consolidated return for such year.

(e) A group shall be considered as remaining in existence, for the purposes of these rules, in accordance with the rules prescribed in s. 1.1502-75(d) of the Federal Income Tax Regulations.

(f) If a consolidated return includes the income of a corporation which was not a member of the group at any time during the consolidated return year, the tax liability of such corporation will be determined upon the basis of a separate return (or a consolidated return of another group, if paragraph (1)(f) or (3)(a) of this section applies), and the consolidated return will be considered as including only the income of the corporations which were members of the group during that taxable year. If a consolidated return includes the income of two or more corporations which were not members of the group but which constitute another group, the tax liability of such corporations will be computed in the same manner as if separate returns had been made by such corporations unless the Executive Director or the Executive Director’s designee upon application, approves the making of a consolidated return for the other group, or unless, under paragraph (a) of this subsection, a consolidated return is required for the other group.

(g) In any case in which amounts have been assessed and paid upon the basis of a consolidated return and the tax liability of one or more of the corporations included in the consolidated return is to be computed in the manner described in paragraph (f) of this subsection, the amounts so paid shall be allocated between the group composed of the corporations properly included in the consolidated return and each of the corporations the tax liability of which is to be computed on a separate basis (or on the basis of a consolidated return of another group) in such manner as the corporations which were included in the consolidated return may, subject to the approval of the Executive Director or the Executive Director’s designee, agree upon; or, in the absence of an agreement upon the method used in allocating the tax liability of the members of the group, under s. 1552(a) of the Internal Revenue Code.

(h) The taxable year of members of the group, including rules for changing to the parent’s taxable year, income to be included in the consolidated return, income to be included in and the time for making separate returns for periods not included in a consolidated return for the purposes of these rules shall be in accordance with the rules prescribed in the federal income tax regulations.

(4)(a) Unless otherwise provided by these rules or manifestly inconsistent with the provisions of the Florida Income Tax Code, the consolidated taxable income for a consolidated return year under these rules shall be determined in the same manner and under the same procedures, including intercompany adjustments and eliminations, as are required by the federal income tax regulations in the case of a federal consolidated return.

(b) If the Florida affiliated group differs in its members from the federal affiliated group because of an election made within 90 days of December 20, 1984, or upon filing the taxpayer’s first return after December 20, 1984, to file consolidated returns on the same basis that consolidated returns were filed for the taxable year immediately preceding the taxable year beginning on or after September 1, 1982, such non-qualifying members shall not be considered includible corporations and all computations hereunder shall be made as if such members were not members of the affiliated group.

(c) The apportionment provisions of Section 220.15, F.S., shall be taken into account by an affiliated group doing business within and without Florida.

(5) Estimated tax. Cross reference: Rule 12C-1.034, F.A.C.

History

• Rulemaking Authority 213.06(1), 220.131(1), 220.51 FS. Law Implemented 220.13, 220.131, 220.15 FS. History–New 10-20-72, Amended 10-20-73, 8-4-75, 8-23-76, 12-18-83, Formerly 12C-1.131, Amended 12-21-88, 4-8-92, 5-17-94, 3-18-96.

Fla. Admin. Code R. 12C-1.015 Apportionment of Adjusted Federal Income

(1) For taxable years beginning on or after January 1, 1991, corporations will apportion their adjusted federal income in accordance with Section 220.15, F.S., only if they are doing business within and without Florida. A taxpayer will be considered doing business within and without this state if it has income from business activity which is taxable both within and without Florida.

(a) In determining whether or not a taxpayer is doing business within and without Florida, a taxpayer will be considered doing business without this state if the corporation is taxable in another state, provided:

1. That state subjects the business to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or,

2. That state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.

(b)1. States have the jurisdiction to impose an income tax on any corporation that incorporates within their state. This is true regardless of whether the corporation exists or conducts business within their state. Therefore, corporations that have incorporated outside Florida may apportion income in accordance with Section 220.15, F.S.

2. In general, whether a state has jurisdiction to subject a Florida corporation to a net income tax is dependent on whether the activities within the state fall within or without the limitations prescribed under the due process or commerce clauses.

3. The jurisdiction of a state to impose a net income tax is further limited by P.L. 86-272 (15 U.S.C. ss. 381-384), which is incorporated by reference in Rule 12C-1.0511, F.A.C., P.L. 86-272 precludes a state from taxing income from interstate commerce if a corporation’s only business activity in the state is the solicitation of orders for sales of tangible personal property and the orders are approved and filled from outside the state.

4. The taxation by another state may also be limited by a de minimis exception. If the activity within a state is de minimis, or the activity that goes beyond the mere solicitation of orders for sales of tangible personal property is de minimis, a state is precluded from imposing an income tax. Whether a particular activity is a de minimis deviation from a prescribed standard must be determined with reference to the specific activity and all the facts of a specific case.

5. If no other state may tax a Florida corporation because of jurisdictional limitations due to the due process or commerce clauses, Public Law 86-272, or de minimis exceptions, the corporation will not be considered to be doing business within and without Florida.

6. If another state specifically rules that a Florida corporation is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax within that state, such ruling will be prima facie evidence that the state does have jurisdiction to tax.

7. The fact that a corporation has voluntarily filed a return and paid tax in another state will not be conclusive proof that the state had jurisdiction to impose a corporate income tax.

8. For purposes of determining whether a corporation is doing business within and without the state when engaged in foreign commerce, the state will determine taxability in a foreign country as though the jurisdictional standards applicable to a state of the United States applied to that country. Therefore, if a foreign country actually imposes a tax measured by income on a corporation, the criteria of doing business within and without the state will be met. The corporation will also meet the criteria if when applying the standards of due process, the commerce clause, and P.L. 86-272, which is incorporated by reference in Rule 12C-1.0511, F.A.C., the foreign country would have jurisdiction to tax if it were a state of the United States.

(c) Once it is determined that a corporation is subject to tax within another state or country, the corporation may apportion income using the property, payroll, and sales factors as prescribed in Section 220.15, F.S. The denominators of the apportionment factors will include the property, payroll, and sales everywhere. The denominators of the factors are not limited to only including the property, payroll, and sales in states which actually tax or have the jurisdiction to tax.

(d) There is no throwback rule in Florida. For a corporation that is doing business within and without Florida, the sales are not considered to be Florida sales solely because the corporation is not subject to tax within another state.

(e) Sales to the United States government are not treated differently from sales to individuals, partnerships, or corporations. If the sale is tangible personal property and the delivery is within Florida, the sale will be considered a Florida sale. If the sale is delivered outside Florida, it will not be considered a Florida sale.

(2) If a taxpayer is not considered to be doing business within and without Florida under subsection (1), all of its adjusted federal income will be subject to Florida corporate income/franchise tax.

(3) General Method.

(a) All corporations doing business within and without Florida, except insurance companies, transportation services, and taxpayers who have been given prior permission to use an alternate method of apportioning income, are required by Section 220.15, F.S., to apportion their business income to Florida based upon a three factor formula. Business income is adjusted federal income.

(b) The three factor formula measures Florida’s share of adjusted federal income by ratios of the taxpayer’s property, payroll, and sales in Florida to total property, payroll, and sales located or occurring everywhere. The general method of apportionment is modified for financial organizations; that is, what is included in the sales factor and property factor is modified for financial organizations.

(4) Zero in Numerator. In the event any of the factors has a numerator which is zero, the Florida fraction for such factor shall be zero and the apportionment fraction shall be the sum of the weighted fractions for the other factors.

Example: Corporation W had no property in Florida but the average value of its property everywhere in 1986 was $275,000. We’s payroll in Florida in 1986 amounted to $75,000 and the total payroll everywhere was $125,000. W reported sales in Florida in 1986 of $5,000,000 and sales everywhere of $8,000,000. The apportionment fraction is computed as follows:

Property:

$0

.25 = 0

---

$275,000

Payroll:

$75,000

.25 =.150000

---

$125,000

Sales:

$5,000,000

.50 =.312500

---

$8,000,000

Apportionment fraction

=.462500

(5) All amounts related to nonbusiness income, income related to ss. 78 and 862, I.R.C., (which are incorporated by reference in Rule 12C-1.0511, F.A.C.), and any other income which is not included in the adjusted federal income must be excluded from the apportionment factors.

(6) Consistency in reporting. If the taxpayer departs from or modifies the manner of valuing property, or of excluding or including property in the property factor; departs from or modifies the treatment of compensation paid used in returns for prior years; or modifies the basis for excluding or including gross receipts in the sales factor used in returns for prior years, the taxpayer shall disclose in the return for the current year the nature and extent of the modification.

(7) Consolidated Returns.

(a) Section 220.131(5), F.S., requires members of an affiliated group which file a Florida consolidated income tax return to use the general apportionment method prescribed by Section 220.15, F.S., unless an alternative method is determined to be more appropriate by the Department.

(b) In determining whether members of a consolidated group are considered to be doing business within and without Florida, the members will be considered as one “person.” Therefore, if any member of the group meets the criteria set in subsection (1) of this rule for doing business within and without Florida, the group will be entitled to use the apportionment provisions provided by Section 220.15, F.S.

(c)1. A single consolidated apportionment factor is constructed for the group. The property, payroll, and sales factors include the property, payroll, and sales for all members of the consolidated group. The apportionment factors do not just include the members that are doing business in Florida. The consolidated apportionment factor constructed is then multiplied by the consolidated adjusted federal income to determine the adjusted federal income apportioned to Florida.

2. The members of the affiliated group may not determine separate apportionment factors to apply to their portion of the consolidated adjusted federal income.

(d) Where all members of the consolidated group are subject to a special apportionment formula provided in Section 220.151, F.S., the consolidated group will determine a single consolidated apportionment factor using the special formula. For example, where the affiliated group is composed only of insurance companies, the apportionment factor will be insurance premiums written in Florida for all members of the consolidated group divided by insurance premiums written everywhere for all members of the group. Cross reference: Rule 12C-1.0151, F.A.C.

(e) Where an affiliated group includes one or more members which are transportation companies or insurance companies permitted to use the single-factor formula under Section 220.151, F.S., together with members which are not permitted to use the Section 220.151, F.S., formula, it is necessary to give effect to the single-factor formula for the transportation or insurance companies when determining the apportionment factor which will be used by the affiliated group. Cross reference: Rule 12C-1.0151, F.A.C.

1. In such cases, the denominators of the property, payroll, and sales factors for transportation or insurance companies shall be determined according to the general provisions for determining the denominators.

2. However, to determine the apportionment factor under the three-factor formula, it is necessary that the transportation or insurance company construct a numerator for each of the factors, as follows:

a. The numerator of the property factor shall be the denominator of the property factor for the company determined under Sections 220.15(2) and (3), F.S., and Rule 12C-1.0153, F.A.C., multiplied by the percentage derived from the appropriate single-factor prescribed in Section 220.151, F.S., for such company.

b. The numerator of the payroll factor shall be the denominator of the payroll factor for the company determined under Section 220.15(4), F.S., and Rule 12C-1.0154, F.A.C., multiplied by the percentage derived from the appropriate single-factor prescribed in Section 220.151, F.S., for such company.

c. The numerator of the sales factor shall be the denominator of the sales factor for the company determined under Section 220.15(5), F.S., and Rule 12C-1.0155, F.A.C., multiplied by the percentage derived from the appropriate single-factor prescribed in Section 220.151, F.S., for such company.

3. The numerators constructed for each of the factors under subparagraph 2., should be added with the numerators of the other members of the affiliated group when determining the apportionment factor which will be used by the affiliated group.

4. The resulting factors shall be weighted as specified in Section 220.15(1), F.S., to determine the apportionment percentage to be used by the affiliated group in determining the portion of the affiliated group’s business income apportioned to Florida.

(8) Method for Financial Organizations. When apportioning the income of a financial organization, a taxpayer will use the three factor apportionment formula described in Section 220.15, F.S. The payroll factor is identical to that applied to every industry. The requirements are set forth in Section 220.15(4), F.S. However, the sales and property factors of a financial organization are calculated differently from those of a corporation selling real or tangible personal property.

(9) Any corporation whose only activity consists of holding stock of corporations, bonds, or other securities; earning interest on accounts maintained in banks, savings and loan associations, credit unions, mutual funds, trusts; and holding mortgages on real and tangible personal property will be required to modify the apportionment factors for property and sales as if the corporation were a financial organization.

(10) Partnerships. The amounts of the property, payroll, and sales of a partnership are attributable to the partners or members of the joint venture. A corporation that is a partner in a partnership must add its share of the property, payroll, and sales to its own apportionment factors, regardless of whether the partnerships are Florida partnerships. Form F-1065 is used in part to distribute to each partner subject to the tax its share of the apportionment factors of the partnership or joint venture.

(11) If it appears to the Executive Director, or the Executive Director’s designee, that any agreement, understanding, or arrangement exists between any taxpayers, or between any taxpayer and any other person, which causes any taxpayer’s income subject to tax to be reflected improperly, or inaccurately, the Executive Director, or the Executive Director’s designee, is authorized to adjust the sales, property, and payroll factors to properly reflect the net income of such taxpayer.

(12) Cross references: Rule 12C-1.0151, F.A.C. (special industries – transportation and insurance); Rule 12C-1.0152, F.A.C. (other methods of apportionment); Rule 12C-1.0153, F.A.C. (property factor); Rule 12C-1.0154, F.A.C. (payroll factor); Rule 12C-1.0155, F.A.C. (sales factor).

History

• Rulemaking Authority 213.06(1), 220.131(5), 220.51 FS. Law Implemented 220.12, 220.13, 220.131, 220.15, 220.151, 220.44 FS. History–New 10-20-72, Amended 1-19-73, 10-20-73, 5-18-74, 10-8-74, 8-23-76, 8-22-78, 12-18-83, Formerly 12C-1.15, Amended 12-21-88, 1-30-90, 4-8-92, 5-17-94, 3-18-96.

Fla. Admin. Code R. 12C-1.0151 Apportionment for Special Industries

(1) Section 220.151, F.S., states that a taxpayer providing transportation services (transportation company), or an insurance company, must apportion income to Florida using a single-factor formula, in lieu of the three-factor formula used in the general apportionment method.

(2) Transportation Companies.

(a)1. Definition of taxpayer providing transportation services. A taxpayer providing transportation services is a business whose income is derived primarily from transporting people or goods from one location to another.

2. Corporations providing the following services, notwithstanding others, are not considered to be transportation companies:

a. Vessels carrying passengers to international waters where passengers cannot disembark from the vessel at points other than the origination point (cruises to nowhere);

b. Charter fishing boats;

c. Party boats;

d. Sightseeing rides on helicopters, airplanes, trolley cars, buses, or trains. However, charter bus lines and charter flight companies are considered to be transportation companies.

e. Delivery services in connection with the sale of tangible personal property. For example, a furniture company that delivers the furniture it sold is not a transportation company. Corporations whose primary business activity is the delivery of goods are transportation companies, whether or not the deliveries are for goods of affiliated or unrelated corporations.

f. Corporations leasing transportation equipment. A corporation leasing transportation equipment is not a transportation company and must use the general three-factor formula of apportionment, unless it petitions the Department to use an alternate method of apportionment as provided in Section 220.152, F.S., and Rule 12C-1.0152, F.A.C., and is granted permission to do so. The method for calculating the sales factor and the property factor for corporations leasing aircraft is specifically described in paragraph 12C-1.0153(4)(d) and subparagraph 12C-1.0155(2)(d)2., F.A.C.

3. For purposes of apportionment under Section 220.151, F.S., corporations which own, lease, or charter vessels that carry passengers to international waters, and dock in ports (other than the origination point) where passengers can disembark, will be deemed to be transportation companies.

4. For tax years beginning on or after January 1, 1989, the term “taxpayer furnishing transportation services” in Section 220.151, F.S., includes taxpayers engaged exclusively in interstate commerce. Transportation companies that deliver or pick up goods or passengers in this state, as well as corporations that do not have a point of origin or termination within this state, are subject to the Florida Income Tax Code whenever they have revenue miles in Florida.

(b) Mileage.

1. Air mail, air express cargo, and passenger excess baggage shall be considered freight for the purpose of computing freight revenue miles and gross receipts from freight transportation.

2. “Dead miles” for which no revenue is earned are not included in computing the apportionment factor. For example, if a common carrier hauls freight from Miami to Atlanta and returns to Miami without any freight, the mileage from Atlanta to Miami is not included in the apportionment factor. Only the mileage from Miami to Atlanta is considered revenue miles.

(c) Apportionment Factor. The business income of a transportation company providing transportation services, partially or wholly in interstate or foreign commerce, shall be apportioned to this state by multiplying such income by a fraction, the numerator of which is the revenue miles of the taxpayer in this state and the denominator of which is the revenue miles of the taxpayer everywhere.

1. Example (1): Corporation R is a Florida-based air carrier providing charter ambulance and passenger services anywhere in the United States. During R’s taxable year ended December 31, 1992, its records of operations disclosed it carried passengers a total of 510,000 revenue miles of which 310,000 were within Florida. The apportionment fraction is computed as follows:

Passenger revenue miles:

310,000 (Florida) =.607843

---

510,000 (Everywhere)

2. Example (2): Assume the same facts as in Example (1) except that Corporation R provided charter cargo service in addition to passenger service. Its records disclose a total of 16,000 ton miles of freight were carried, of which 8,000 ton miles were within Florida. Its gross revenue from passenger service was $45,000 and gross revenue from cargo services was $9,600. The apportionment fraction is computed as follows:

Step 1. Determine relative gross receipts from passenger and freight transportation.

Passenger:

$45,000 = .824176

---

$54,600

Freight:

$9,600 = .175824

---

$54,600

Step 2. Compute the weighted apportionment fraction:

Passenger:

310,000 (Florida) .824176 =.500970

---

510,000 (Everywhere)

Freight:

8,000 (Florida) .175824 =.087912

---

16,000 (Everywhere)

Total apportionment fraction =.588882

(3) Insurance companies.

(a)1. An insurance company must determine the premium written for reinsurance accepted in respect to properties and risks in Florida on the basis of the proportion which premiums written for reinsurance accepted from companies resident in or having a regional home office in Florida bears to premiums written for reinsurance accepted from all sources.

2. For purposes of this subsection, the “principal source of premiums” is defined as the majority (greater than 50 percent) of premium dollars received.

(b) If the principal source of premiums written by an insurance company is not for premiums for reinsurance accepted by it, the adjusted federal taxable income is apportioned to Florida by multiplying it by a fraction, the numerator of which is the direct premiums written for insurance upon properties and risks in Florida and the denominator of which is the direct premiums written for insurance upon properties and risks everywhere.

(c) Deposit-type funds, as separately listed on Schedule T of the Annual Statement filed with the Florida Office of Insurance Regulation, are not direct premiums written and therefore are not included in the apportionment factor calculation of an insurance company.

(4) Consolidated returns. See paragraphs 12C-1.015(7)(d) and (e), F.A.C., for the computation of the apportionment factor when consolidated returns are filed for affiliated groups that include transportation companies or insurance companies.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.151 FS. History–New 5-17-94, Amended 3-18-96, 10-2-01.

Fla. Admin. Code R. 12C-1.0152 Other Methods of Apportionment

(1)(a) A departure from the applicable method of apportionment required under the provisions of Section 220.15 or 220.151, F.S., shall be permitted only where the method does not accurately and fairly reflect business activity in Florida. An alternative method may not be invoked, either by the Department of Revenue or the taxpayer, merely because it reaches a different apportionment percentage than the regularly applicable formula. However, if the applicable formula will lead to a grossly distorted result in a particular case, a fair and accurate alternative method is appropriate (see Norfolk and Western Railway Co. v. Missouri State Tax Commission, 390 U.S. 317, 88 S. Ct. 995, 19 L. Ed. 2d 1201 (1968), which is incorporated by reference in Rule 12C-1.0511, F.A.C.).

(b) A taxpayer seeking to utilize an alternative apportionment method must show by clear and cogent evidence that the regularly applicable formula would result in taxation of extraterritorial values (see Butler Bros. v. McColgan, 315 U.S. 501, 62 S.Ct. 701, 86 L. Ed. 991 (1942), which is incorporated by reference in Rule 12C-1.0511, F.A.C.). This can be shown only if the regularly applicable formula is demonstrated to operate unreasonably and arbitrarily in apportioning to Florida a percentage of income which is out of all proportion to the business transacted in Florida and does not accurately and fairly reflect business activity in Florida (see Hans Rees’ Sons, Inc. v. North Carolina ex rel Maxwell, 283 U.S. 123, 51 S. Ct. 385, 75 L. Ed 879 (1931), which is incorporated by reference in Rule 12C-1.0511, F.A.C.).

(2) The party seeking to use an alternative formula must prove that the alternative formula fairly and accurately apportions income to Florida based upon business activity in Florida.

(3) A departure from the regularly applicable apportionment method will be authorized only in limited and specific cases where unusual fact situations (which ordinarily will be unique and nonrecurring) produce a result that is incongruous with the results of previous tax years under the regularly applicable apportionment method.

(4) A taxpayer must petition the Department for a departure from the required apportionment method by filing, on or before the due date for filing of the return for the taxable year, with extension, either: a written request for a technical assistance advisement under Section 213.22, F.S., and rule Chapter 12-11, F.A.C.; or, a petition for a declaratory statement under Section 120.565, F.S.

(a) The taxpayer must file the request or petition with Technical Assistance, P.O. Box 7443, Tallahassee, Florida 32314-7443.

(b) The taxpayer’s request or petition must include a summary of the evidence to support the taxpayer’s contention that the applicable apportionment formula results in taxation of extraterritorial values and to demonstrate that the regular formula operates to unreasonably and arbitrarily attribute income to Florida far out of proportion to the business transacted in Florida. The taxpayer must also furnish evidence that the use of an alternative method fairly and accurately apportions income to Florida.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.152 FS. History–New 5-17-94, Amended 3-18-96, 3-13-00.

Fla. Admin. Code R. 12C-1.0153 Property Factor for Apportionment

(1) For purposes of the property factor, the term “real and tangible personal property” includes land, buildings, machinery, stocks of goods, equipment, and other real and tangible personal property, but does not include coin or currency.

(2) Property shall be included in the property factor if it is actually used or is available for or capable of being used during the tax period.

(a) Property held as reserves or standby facilities or property held as a reserve source of materials shall be included in the factor. For example, a plant temporarily idle or raw material reserves not currently being processed are includible in the factor.

(b) Property or equipment under construction.

1. Property or equipment under construction during the tax period (except inventoriable goods-in-process) shall be excluded from the factor until such property is actually used for the production of income.

2. If the property is partially used for the production of income while under construction, the value of the property to the extent used shall be included in the property factor.

3. Construction companies shall include property under construction in the property factor. Regardless of the method of accounting used (percentage-of-completion or completed-contract methods), the costs of construction-in-progress are included in the property factor, to the extent the costs exceed progress billings.

(c) Property held for the production of income shall remain in the property factor until its permanent withdrawal is established by an identifiable event such as its sale or the lapse of five years during which time the property was held for sale.

(d)1. Any amount of property which is directly related to an amount of gross receipts or income which is deducted, subtracted, or otherwise excluded in determining adjusted federal income is excluded from both the numerator and denominator of the property factor.

2. Example: The taxpayer owns an apartment building. The income from the rentals is determined to be non-business income. The value of the apartment building is excluded from the property factor.

(e) Tangible property in the possession of customers is excluded from the property factor even though the taxpayer holds legal title under conditional sales contracts or chattel mortgages.

(f) Satellites used in the communications industry are in the denominator of the property factor. The numerator is based upon the ratio of earth stations serviced. For example, if a particular satellite that is owned by the taxpayer services earth stations located in Los Angeles, Chicago, New York and Miami, 25 percent of the cost of the satellite will be included in the numerator of the factor for this state.

(3) Property in Transit.

(a) Property in transit between locations of the taxpayer to which it belongs shall be considered to be at the destination for purposes of the property factor.

(b) Property in transit between a buyer and a seller which is included in the denominator of the property factor in accordance with regular accounting practices shall be included in the numerator of the state of destination.

(4) Mobile property.

(a) The value of mobile or movable property such as construction equipment, trucks, or leased electronic equipment which is located within and without Florida during the tax period shall be determined for the purposes of the numerator of the factor on the basis of total time within Florida during the tax period.

(b) The value of vessels carrying passengers to international waters where passengers cannot disembark from the vessel at points other than the origination point (cruises to nowhere); fishing boats; or party boats will be measured upon the port day method. The port day method measures the ratio of days in port inside the state, including port days to stock the boat and clean the boat, to total port days. Only the time that a vessel is moored to a wharf or pier is considered in computing the days spent in port.

(c) An automobile assigned to a traveling employee shall be included in the numerator if the employee’s compensation is included in the numerator of the payroll factor or if the automobile is licensed in Florida.

(d) Aircraft leasing companies.

1. Corporations leasing aircraft to airlines that fly the aircraft into Florida must elect to measure property in Florida using one of the following methods:

a. The original cost of the leased aircraft multiplied by a fraction, the numerator of which is the actual revenue miles in Florida for the aircraft leased and the denominator of which is the actual revenue miles everywhere for the aircraft leased; or

b. The original cost of the leased aircraft multiplied by a fraction, the numerator of which is lessee’s revenue miles in Florida for their fleet of similar aircraft and the denominator of which is the lessee’s revenue miles everywhere for their fleet of similar aircraft.

2. The phrase “revenue miles” is defined by Section 220.151(2), F.S., and paragraph 12C-1.0151(2)(b), F.A.C.

3. The method used (the actual revenue miles for the aircraft or the fleet average of the lessee) must be consistent with the method for determining the sales factor as described in subparagraph 12C-1.0155(2)(d)2., F.A.C. Once the valuation method is elected, the taxpayer must petition the Department of Revenue to change the method of valuation for subsequent taxable years. The taxpayer shall petition the Department for the change by filing, on or before the due date for filing of the return for the taxable year, with extension, either: a written request for a technical assistance advisement under Section 213.22, F.S., and Department of Revenue Chapter 12-11, F.A.C.; or a petition for a declaratory statement under Section 120.565, F.S.

(5) Valuation of Owned Property. Property owned by the taxpayer shall be valued at its original cost.

(a) As a general rule “original cost” is deemed to be the basis of the property for federal income tax purposes (prior to any federal adjustments) at the time of acquisition by the taxpayer and adjusted by subsequent capital additions or improvements thereto and partial disposition thereof, by reason of sale, exchange, or abandonment, etc. Depreciation is not taken into account in determining the value of the property.

(b) Any taxpayer subject to the jurisdiction of a regulatory agency shall determine the original cost of its property in accordance with the system of accounts prescribed by the regulatory agency for such taxpayer.

(c) Example (1): The taxpayer acquired a factory building in this state at a cost of $500,000 and 18 months later expended $100,000 for major remodeling of the building. Taxpayer files its return for the current taxable year on the calendar year basis. A depreciation deduction in the amount of $22,000 was claimed on the building for its return for the current taxable year. The value of the building includible in the numerator and denominator of the property factor is $600,000 as the depreciation deduction is not taken into account in determining the value of the building for purposes of the factor.

(d) Example (2): During the current taxable year, X Corporation merges into Y Corporation in a tax-free reorganization under the Internal Revenue Code. At the time of the merger, X Corporation owns a factory which X built five years earlier at a cost of $1,000,000. X has been depreciating the factory at the rate of two percent per year, and its basis in X’s hand at the time of the merger if $900,000. Since the property is acquired by Y in a transaction in which, under the Internal Revenue Code, its basis in Y’s hands is the same as its basis in X’s, Y includes the property in Y’s property factor at X’s original cost, without adjustment for depreciation, i.e., $1,000,000.

(e) If the original cost of property is unascertainable, the property is included in the factor at its fair market value as of the date of acquisition by the taxpayer.

(f) Inventory of stock of goods shall be included in the factor in accordance with the valuation method used for federal income tax purposes.

(6) Valuation of Rented Property. Property rented by the taxpayer is valued at eight times its net annual rental rate.

(a) The net annual rental rate for any item of rented property is the annual rate paid by the taxpayer for such property, less the aggregate annual subrental rates paid by subtenants of the taxpayer.

1. However, subrents are not deducted when the subrents constitute business income because the property which produces the subrents is used in the regular course of a trade or business of the taxpayer when it is producing such income. Accordingly, there is no reduction in its value.

2. If the subrents taken into account in determining the net annual rental rate produce a negative or clearly inaccurate value for any item of property, another method which will properly reflect the value of rented property may be required by the Department or requested by the taxpayer. In no case, however, shall such value be less than an amount which bears the same ratio to the annual rental paid by the taxpayer for such property as the fair market value of that portion of the property used by the taxpayer bears to the total fair market value of the rented property.

(b) If property owned by others is used by the taxpayer at no charge or rented by the taxpayer for a nominal rate, the net annual rental rate for such property shall be determined on the basis of a reasonable market rental rate for such property.

(c) Example (1): The taxpayer rents a 20-story office building and uses the lower two stories for its general corporation headquarters. The remaining 18 floors are subleased to others. The rental of the eighteen floors is not incidental to but rather is separate from the operation of the taxpayer’s trade or business. The subrents are to be deducted from the rent paid by the taxpayer.

(d) Example (2): The taxpayer rents a 10-story building at an annual rental rate of $1,000,000. Taxpayer occupies two stories and sublets eight stories for $1,000,000 a year. The net annual rental rate of the taxpayer must not be less than two-tenths of the taxpayer’s annual rental rate for the entire year or $200,000.

(e)1. “Annual rental rate” is the amount paid as rental for property for a 12-month period (i.e., the amount of the annual rent).

2. Where property is rented for less than a 12-month period, the rent paid for the actual period of rental shall constitute the “annual rental rate” for the tax period. However, where a taxpayer has rented property for a term of 12 or more months and the current tax period covers a period of less than 12 months (due, for example, to a reorganization or change of accounting period), the rent paid for the short tax period shall be annualized. If the rental term is for less than 12 months, the rent shall not be annualized beyond its term. When the rental term is on a month-to-month basis, rent shall not be annualized because of the uncertain duration.

3. Example (1): Taxpayer A which ordinarily files its returns based on a calendar year is merged into Taxpayer B on April 30. The net rent paid under a lease with 5 years remaining is $2,500 a month. The rent for the tax period January 1 to April 30 is $10,000. After the rent is annualized, the net rent is $30,000 ($2,500  12).

4. Example (2): Same facts as in Example (1) except that the lease would have terminated on August 31. In this case the annualized net rent is $20,000 ($2,500  8).

(7) “Annual rent” is the actual sum of money or other consideration payable, directly or indirectly, by the taxpayer or for its benefit for the use of the property and includes (A) any amount payable for the use of real or tangible personal property, or any part thereof, whether designated as a fixed sum of money or as a percentage of sales, profits, or otherwise; and (B) any amount payable as additional rent or in lieu of rents, such as interest, taxes, insurance, repairs, or any other items which are required to be paid by the terms of the lease or other arrangement, not including amounts paid as service charges, such as utilities, janitor services, etc. If a payment includes rent and other charges unsegregated, the amount of rent shall be determined by consideration of the relative values of the rent and the other items.

(a) Example (1): A taxpayer, pursuant to the terms of a lease, pays the lessor $12,000 a year rent plus taxes in the amount of $2,000 and interest on a mortgage in the amount of $1,000. The annual rent is $15,000.

(b) Example (2): A taxpayer stores part of its inventory in a public warehouse. The total charge for the year was $1,000 of which $700 was for the use of storage space and $300 for inventory insurance, handling and shipping charges, and C.O.D. collection. The annual rent is $700.

(c) Example (3): A taxpayer, pursuant to the terms of a lease, pays a lessor $1,000 per month as a base rental and at the end of the year pays the lessor one percent of its gross sales of $400,000. The annual rent is $16,000 ($12,000 plus one percent of $400,000 or $4,000).

(d) Rent paid in advance that is not an allowable deduction in the year of payment is not included in the property factor in that year. For example, if the first and last month’s rent of a five-year lease were paid during the first month, the last month’s rent would not be capitalized into the property factor until the fifth year, when it would be deductible.

(e) Items that are considered day-to-day expenses of the business are not included in the property factor. For example, daily “rents” for hotel rooms or motel rooms or the daily rental for use of an automobile are not included in the property factor. However, if these items are rented for more than 30 days, the rent is capitalized into the property factor.

(f) Rentals paid for the use of circuits in satellites in outer space will be capitalized as rents.

(g) Software rentals will be capitalized as rents if they are determined to be tangible personal property. Canned programs will be considered to be tangible personal property. It is important to distinguish between computer rentals and fees paid for computer services, which are not capitalized as rents. The rental of computer hardware is capitalized.

(8) Leasehold improvements shall, for the purposes of the property factor, be treated as property owned by the taxpayer regardless of whether the taxpayer is entitled to remove the improvements or the improvements revert to the lessor upon expiration of the lease. Hence, the original cost of leasehold improvements shall be included in the factor.

(9) A portion of a partnership’s real and tangible personal property, both owned or rented and used during the tax year in the regular course of such trade or business, is included in the denominator of a taxpayer’s property factor to the extent of the taxpayer’s interest in the partnership. The value of such property located in Florida is also included in the numerator of the property factor. The value of property that is rented or leased by the taxpayer to the partnership or vice versa is, with respect to the taxpayer, excluded from the property factor of the partnership or eliminated to the extent of the taxpayer’s interest in the partnership in order to avoid duplication. For purposes of inclusion in the Florida property factor, partnership property is allocated to each partner based on their interest in the partnership, or as designated in the partnership agreement.

(10)(a) Property factor for financial organizations. For tax years beginning after December 31, 1986, the property factor used by a financial organization also includes intangible personal property, except goodwill, which is owned and used in the business. The term “financial organization” as defined in Section 220.15(6), F.S., includes brokerage companies.

(b) Secured loans. Where the loan is secured by multiple liens upon real or tangible personal property, part of which is within the state and part of which is without the state, the amount of the loan which is included in the numerator of the factor is based on a fraction, the numerator of which is the value of the secured property in Florida, and the denominator of which is the value of the secured property everywhere. The “value of the secured property” will be the fair market value of the property at the time of the loan.

(11) Averaging Property Values.

(a) As a general rule, the average value of property owned by the taxpayer shall be determined by averaging the values at the beginning and end of the tax period.

(b) However, the Department is authorized to require or allow averaging by monthly values if such method of averaging is required to properly reflect the average value of the taxpayer’s property for the tax period.

1. Averaging by monthly values will be applied if substantial fluctuations in the values of the property exist during the tax period or where property is acquired after the beginning of the tax period or disposed of before the end of the tax period.

2. Example: The monthly value of the taxpayer’s property was as follows:

January

$2,000

February

2,000

March

3,000

April

3,500

May

4,500

June

10,000

July

15,000

August

17,000

September

23,000

October

25,000

November

13,000

December

2,000

Total

$120,000

The average value of the taxpayer’s property includible in the property factor for the income year is determined as follows:

$120,000/12 = $10,000

(c) Averaging with respect to rented property is achieved automatically by the method of determining the net annual rental rate of such property as set forth in subsection (7).

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.15 FS. History–New 5-17-94, Amended 3-18-96.

Fla. Admin. Code R. 12C-1.0154 Payroll Factor for Apportionment

(1) The total amount “paid” to employees is determined upon the basis of the taxpayer’s accounting method. If the taxpayer has adopted the accrual method of accounting, all compensation properly accrued shall be deemed to have been paid.

(a) Notwithstanding the taxpayer’s method of accounting, at the election of the taxpayer, compensation paid to employees may be included in the payroll factor by use of the cash method if the taxpayer is required to report such compensation under such method for unemployment compensation purposes.

(b)1. The amount of wages paid is included in the payroll factor, regardless of whether the wages are treated as a capital expenditure by the taxpayer.

2. Example: The taxpayer uses some of its employees in the construction of a storage building which, upon completion is used in the regular course of taxpayer’s trade or business. The wages paid to those employees are treated as a capital expenditure by the taxpayer. The amount of such wages is included in the payroll factor, even though those wages are also included in the property factor upon completion of the building.

(2)(a) The term “compensation” means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services.

(b) Amounts considered compensation include deferred compensation, value of board, rent, housing, lodging, and other benefits or services furnished to employees by the taxpayer in return for personal services provided that such amounts constitute income to the recipient under the Federal Internal Revenue Code.

(c) In the case of employees not subject to the Internal Revenue Code, e.g., those employees in foreign countries, the determination of whether such benefits or services would constitute income to the employees shall be made as though such employees were subject to the Federal Internal Revenue Code.

(3) Only amounts paid directly to employees are included in the payroll factor.

(a) The term “employee” means any officer of a corporation, or any individual who, under the usual common-law rules applicable in determining the employer-employee relationship, has the status of an employee. Generally, a person will be considered to be an employee if he is included by the taxpayer as an employee for purposes of the payroll taxes imposed by the Federal Insurance Contributions Act; except that, since certain individuals are included within the term “employees” in the Federal Insurance Contributions Act who would not be employees under the usual common-law rules, it may be established that a person who is included as an employee for purposes of the Federal Insurance Contributions Act is not an employee for purposes of this rule. Payments made to an independent contractor or any other person not properly classifiable as an employee are excluded.

(b)1. The business which is considered to be the common-law employer must include an employee’s salary in the payroll factor, even though a common paymaster is used. The common paymaster may not include the salary of an individual for whom it is not the common-law employer.

2. Salary reimbursement payments to an affiliated corporation for employees loaned to a corporation may not be included in the payroll factor. This provision is not intended to exclude payments to an affiliated corporation acting as a common paymaster from being included in the payroll factor if the reimbursements are for common-law employees.

(c) The wages paid to an individual who is employed directly by an employment agency, such as a temporary agency or a leasing company, are not included in the payroll factor. The employment agency would include the wages paid to that individual.

(4) Compensation paid in Florida.

(a) If compensation paid to employees is included in the payroll factor by use of the cash method of accounting or if the taxpayer is required to report such compensation under such method for unemployment compensation purposes, it shall be presumed that the total wages reported by the taxpayer to Florida for unemployment compensation purposes constitutes compensation paid in Florida except for compensation excluded by these rules. The presumption may be overcome by satisfactory evidence that an employee’s compensation is not properly reportable to Florida for unemployment compensation purposes.

(b) If the employee’s services are performed both within and without this state, the employee’s compensation will be attributed to this state:

1. If the employee’s base of operations is in this state;

2. If there is no base of operations in any state in which some part of the service is performed, but the place from which the service is directed or controlled is in this state; or

3. If the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the employee’s residence is in this state.

a. The term “base of operations” is the place of more or less permanent nature from which the employee starts his work and to which he customarily returns in order to receive instructions from the taxpayer or communications from his customers or other persons or to replenish stock or other materials, repair equipment or perform any other functions necessary to the exercise of his trade or profession at some other point or points.

b. The term “place from which the service is directed or controlled” refers to the place from which the power to direct or control is exercised by the taxpayer.

(5)(a) Any amount of payroll which is directly related to an amount of gross receipts or income which is deducted, subtracted, or otherwise excluded in determining adjusted federal income is excluded from both the numerator and denominator of the payroll factor.

(b) Example: The taxpayer owns various securities as an investment separate and apart from its trade or business. The income from the securities is determined to be non-business income. The management of the taxpayer’s investment portfolio is the only duty of Mr. X, an employee. The salary paid to Mr. X is excluded from the payroll factor.

(6) Compensation paid to employees of a partnership is included in the denominator of the taxpayer’s payroll factor to the extent of the taxpayer’s interest in the partnership. The amount paid to employees in Florida is also included in the numerator of the payroll factor to the extent of the taxpayer’s interest in the partnership. Partnership payroll should be allocated to each partner based on each partner’s interest in the partnership, or as designated in the partnership agreement, for inclusion in the Florida payroll factor.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.15 FS. History–New 5-17-94, Amended 3-18-96, 3-13-00.

Fla. Admin. Code R. 12C-1.0155 Sales Factor for Apportionment

(1) For the purposes of the sales factor, the term “sales” means all gross receipts received by the taxpayer from transactions and activities in the regular course of its trade or business.

(a) Sales of tangible personal property. In the case of a taxpayer engaged in manufacturing and selling or purchasing and reselling goods or products, “sales” includes all gross receipts from the sales of such goods or products. Gross receipts for this purpose means gross sales, without regard to returns and allowances, and includes all interest income, service charges, carrying charges, or time-price differential charges incidental to such sales. Any federal or state taxes, such as federal manufacturers’ excise taxes, shall be included as part of such gross receipts if such taxes constitute a part of the selling price. Federal and state excise taxes (including sales taxes) shall not be included in gross receipts when the statutes imposing such taxes require the taxpayer to add these taxes as a separate item to the selling price of the taxable transaction and to collect the tax from the purchaser.

(b) Sales of business assets. If a taxpayer derives receipts from the sale of equipment used in its business, such receipts constitute a “sale.” For example, a truck express company owns a fleet of trucks and sells its trucks under a regular replacement program. The gross receipts from the sales of the trucks are included in the sales factor. If amounts of gross receipts arising from an incidental or occasional sale of a fixed asset used in the regular course of the taxpayer’s trade or business would materially distort the sales factor, the taxpayer may petition the Department, or the Department is authorized to require, pursuant to Section 220.152, F.S., and Rule 12C-1.0152, F.A.C., an adjustment to the sales factor.

(c) Installment sales. Installment sales, including interest associated with the sale, are included in the sales factor as gross receipts are received.

(d) Rentals. Rental income is included in the sales factor if 10 percent or more of the taxpayer’s total income reported on the federal tax return consists of leasing or renting real or tangible personal property. In the case of a taxpayer engaged in renting real or tangible personal property, “sales” includes the gross receipts from the rental, lease, or licensing the use of the property.

(e) Sales for construction contractors. If the percentage-of-completion method is used, the sales factor includes only that portion of the contract price that reflects the percentage of the contract completed. If the completed-contract method is used, the sales factor includes that portion of the gross receipts (progress billings) received or accrued during the year.

(f) Income from intangible personal property.

1. Where the income producing activity in respect to business income from intangible personal property can be readily identified, such income is included in the denominator of the sales factor and, if the income producing activity occurs in Florida, in the numerator of the sales factor as well. For example, usually the income producing activity can be readily identified in respect to interest income received on deferred payments on sales of tangible personal property and income from the sale, licensing, or other use of intangible personal property. The sale or licensing of the use of a trade name, trademark, or patent will be attributable to the state in which the trade name, trademark, or patent is used.

2. Where business income from intangible property cannot readily be attributed to any particular income producing activity of the taxpayer, such income cannot be assigned to the numerator of the sales factor for any state and shall be excluded from the denominator of the sales factor. For example, where business income in the form of dividends received on stock, royalties received on patents or copyrights, or interest received on bonds, debentures or government securities results from the mere holding of the intangible personal property by the taxpayer, such dividends and interest shall be excluded from the denominator of the sales factor.

3. In the case of a taxpayer engaged in the sale, assignment, or licensing of intangible personal property such as patents and copyrights, “sales” includes the gross receipts therefrom.

(g) Disposition of partnership interest. The gross receipts from the sale of an interest in a partnership are included in “sales.”

(h) Sales of services. In the case of a taxpayer engaged in providing services, such as the operation of an advertising agency, the performance of equipment service contracts, or research and development contracts, “sales” includes the gross receipts from the performance of such services including fees, commissions, and similar items.

(i) Management fees. Generally, management fees charged from a parent corporation to a subsidiary are excluded from the sales factor. If the fees are just a pass-through of corporate overhead expenditures, the fees will not be included in “sales.” However, where the parent is not a vendor of tangible personal property or a “financial organization” and the preponderance of its gross receipts are management fees, these may be used in construction of the sales factor. In the case of a parent holding company, management fees are clearly in “its trade or business” and, therefore, includable in the sales factor.

(j) Intercompany sales. When a consolidated return is filed, intercompany sales may be included in the sales factor. Indications that the amounts may be included as sales include the following factors:

1. Amounts called sales on the books;

2. Amounts invoiced as sold to related party;

3. Actual payment from related party; or

4. Amounts included in consolidated federal income tax return as “gross receipts or sales.”

(k) Professional sports teams.

1. Receipts from player contract transactions, franchise fees, etc., are regarded as intangible business income and shall be assigned to the state in which the income-producing activity which is directly related to such receipts occurs. If there is no income-producing activity which directly relates to such receipts, such as the receipt of franchise fees for new league members, such receipts shall ordinarily be excluded from both the numerator and denominator of the sales factor.

2. Concession income and any other receipts not otherwise specifically covered shall be assigned to the physical location where the activity which gives rise to such receipts occurs.

(2) Florida sales. The numerator of the sales factor includes gross receipts attributed to Florida which were derived by the taxpayer from transactions and activities in the regular course of its trade or business. All interest income, service charges, carrying charges, or time-price differential charges incident to such gross receipts shall be included, regardless of the place where the account records are maintained or the location of the contract or other evidence of indebtedness.

(a) Sales of Tangible Personal Property in Florida. Gross receipts from sales of tangible personal property are in Florida if the property is delivered or shipped to a purchaser within Florida regardless of the F.O.B. point, other conditions of the sales, or the ultimate destination of the property. Tangible personal property shipped by common or contract carriers will use a destination test to determine whether the sale is a Florida sale or a sale outside Florida.

1.a. Property shall be deemed to be delivered or shipped to a purchaser within Florida if the recipient is located in Florida, even though the property is ordered from outside Florida.

b. Example: The taxpayer, with inventory in State A, sold $100,000 of its products to a purchaser having branch stores in several states including Florida. The order for the purchase was placed by the purchaser’s central purchasing department, located in State B. $25,000 of the purchaser’s order was shipped directly to purchaser’s branch store in Florida. The branch store in Florida is the “purchaser within Florida” with respect to $25,000 of the taxpayer’s sales.

2.a. Property is delivered or shipped to a purchaser within Florida if the shipment terminates in Florida, even though the property is subsequently transferred by the purchaser to another state.

b. Example: The taxpayer makes a sale to a purchaser who maintains a central warehouse in Florida at which all merchandise purchases are received. The purchaser reships the goods to its branch stores in other states for sale. All of the taxpayer’s products shipped to the purchaser’s warehouse in Florida are property “delivered or shipped to a purchaser within Florida.”

3.a. With respect to sales made to a citrus cooperative by a grower-member, the grower-member’s sales factor shall be the same as the sales factor for the most recent taxable year of the citrus cooperative-processor. With respect to sales made to a Florida processor by a grower-participant, the grower participant’s sales factor shall be the same as the sales factor for the most recent taxable year of the Florida processor. A copy of the processor’s sales factor as furnished to the grower-member or grower-participant shall be attached to the grower-member’s or grower-participant’s corporate income tax return, Form F-1120, which is incorporated by reference in Rule 12C-1.051, F.A.C.

b. If there is delivery of citrus fruit in Florida, other than citrus fruit delivered by a cooperative for a grower-member, citrus fruit delivered by a grower-member to a cooperative, or citrus fruit delivered by a grower-participant to a Florida processor, the sale will be a Florida sale. For example, if a citrus grower delivers fruit to a processor or middle-man for cash, the sale is considered to be a Florida sale, regardless of any subsequent shipment of the fruit outside Florida.

4.a. The term “purchaser within Florida” includes the ultimate recipient of the property if the taxpayer in Florida, at the designation of the purchaser, delivers to or has the property shipped to the ultimate recipient within Florida.

b. Example: A taxpayer in Florida sold merchandise to a purchaser in State A. Taxpayer directed the manufacturer or supplier of the merchandise in State B to ship the merchandise to the purchaser’s customer in Florida pursuant to purchaser’s instructions. The sale by the taxpayer is in Florida.

5.a. When property being shipped by a seller from the state of origin to a consignee in another state is diverted while en route to a purchaser in Florida, the sales are in Florida.

b. Example: The taxpayer, a produce grower in State A, begins shipment of perishable produce to the purchaser’s place of business in State B. While en route the produce is diverted to the purchaser’s place of business in Florida, where the taxpayer is subject to tax. The sale by the taxpayer is attributed to Florida.

(b) Gross receipts from the rental, lease, or licensing of tangible personal property are in this state if the property is located in this state. The rental, lease, licensing, or other use of tangible personal property in this state is a separate income producing activity from the rental, lease, licensing, or other use of the same property while located in another state; consequently, if property is within and without this state during the rental, lease or licensing period, gross receipts attributable to this state shall be measured by the ratio which the time the property was physically present or was used in this state bears to the total time or use of the property everywhere during such period.

(c) Real Property. Gross receipts from the sale, lease, rental, or licensing of real property are in Florida if the real property is located in Florida.

(d)1. The receipts from vessels carrying passengers to international waters where passengers cannot disembark from the vessel at points other than the origination point (cruises to nowhere); fishing boats; or party boats will be measured upon the port-day method. The port-day method measures the ratio of days in port inside the state, including port days to stock and clean the boat, to total port days. This ratio is multiplied by the total receipts to determine the numerator of the sales factor. Only the time that a vessel is moored to a wharf or pier is considered in computing the days spent in port.

2. Aircraft leasing companies.

a. Corporations leasing aircraft to airlines that fly the aircraft into Florida must elect to measure receipts in Florida using one of the following methods:

(I) The lease receipts for the leased aircraft multiplied by a fraction, the numerator of which is the actual revenue miles in Florida for the aircraft leased and the denominator of which is the actual revenue miles everywhere for the aircraft leased; or

(II) The lease receipts for the leased aircraft multiplied by a fraction, the numerator of which is lessee’s revenue miles in Florida for their fleet of similar aircraft and the denominator of which is the lessee’s revenue miles everywhere for their fleet of similar aircraft.

b. The phrase “revenue miles” is defined by Section 220.151(2), F.S., and paragraph 12C-1.0151(2)(b), F.A.C.

c. The method used (the actual revenue miles for the aircraft or the fleet average of the lessee) must be consistent with the method for determining the property factor, as described in paragraph 12C-1.0153(4)(d), F.A.C. Once the method is elected, the taxpayer must petition the Department of Revenue to change the method of valuation for subsequent taxable years. The taxpayer must petition the Department for the change by filing, on or before the due date for filing of the return for the taxable year, with extension, either: a written request for a technical assistance advisement under Section 213.22, F.S. and rule Chapter 12-11, F.A.C.; or, a petition for a declaratory statement under Section 120.565, F.S.

(e) Personal Services.

1. Gross receipts for the performance of personal services are attributable to Florida if such services are performed in Florida.

2.a. If services relating to a single item of income are performed partly within and partly without Florida, the gross receipts for the performance of such services shall be attributable to Florida only if a greater portion of the services were performed in Florida, based on costs of performance.

b. The term “costs of performance” means direct costs determined in a manner consistent with generally accepted accounting principles and in accordance with accepted conditions or practices in the taxpayer’s trade or business. Where independent contractors are used to complete a contract, the term “costs of performance” will include amounts paid to the independent contractors.

3. Where services are performed partly within and partly without this state, the services performed in each state may constitute a separate income producing activity, even though the client is billed a lump sum amount. In such cases, the gross receipts for the performance of services attributable to this state shall be measured by the ratio which the time spent in performing such services in this state bears to the total time spent in performing such services everywhere. Time spent in performing services includes the amount of time expended in the performance of a contract or other obligation which gives rise to such gross receipts. Personal services not directly connected with the performance of the contract or other obligation, as for example, time expended in negotiating the contract, are excluded from the computations.

(f) Intangible personal property in Florida.

1. The rental, leasing, licensing, or other use of a trade name, trademark, or patent to a business entity located in Florida will be considered a Florida sale. The mere holding of intangible personal property is not, of itself, an income producing activity.

2. Franchises. The franchise fees paid to rent, lease, license, or otherwise use a trade name and system of sales are Florida sales if the franchise location is in the state.

(g) Telecommunications. For purposes of this rule, gross receipts from telecommunications services include those earned by the offering of telecommunications for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used.

1. Intrastate charges for telecommunications services are Florida sales.

2. Interstate communications. Telecommunications charges are Florida sales if the communication originates or terminates in Florida and the bill is charged to a Florida telecommunications number or device, Florida telephone number or telephone, or Florida customer.

(h) Computer related sales.

1. Hardware delivered in Florida constitutes Florida sales.

2. Canned software programs are Florida sales if delivered to a customer in Florida.

3. Customized software programs are Florida sales when the customization of the programs is done in Florida. That is, when technical advice to customize a program is rendered on site in Florida, the sale will be considered a Florida sale.

4. Licensing fees for software are Florida sales to the extent the software is used in Florida.

5. Interactive networks.

a. Where there are charges to Florida customers for direct access to a data base, these charges are considered Florida sales. These charges include, but are not limited to, fees to access the network, fees based on the number of information requests made, time charges for connection to the data base and lines, and information retrieval from the data base.

b. Where there are charges by a corporation located in Florida to Florida customers for access to third party data bases, all charges will be considered Florida sales, regardless of where the third-party data bases are located.

c. Where a foreign (out-of-state) corporation charges Florida customers for access to third party data bases, all charges will be considered Florida sales except for charges directly related to the retrieval of information from the third-party data base.

d. When a P.C. or mainframe is physically located in Florida, a corporation will have a “Florida customer” for purposes of this subparagraph.

(i) Television and Radio Broadcasting. Gross receipts, including advertising revenues, from broadcasting within and without Florida will be attributed to the numerator of the sales factor on the basis of the ratio of the audience within Florida to the audience everywhere.

(j) Newspaper and Magazine Revenue. Receipts from the sale of newspapers and magazines, including advertising fees, will be considered Florida sales on the basis of the ratio of circulation within Florida to circulation everywhere.

(k) Printer Income. When a customer provides paper, the printer will attribute its income to Florida if the place where printing is done is in Florida. When the printer provides paper, the printer will attribute its income to Florida if the delivery destination of the product is Florida.

(l) Other Sales in Florida. Gross receipts from other sales shall be attributed to Florida if the income producing activity which gave rise to the receipts is performed wholly within Florida. Also, gross receipts shall be attributed to Florida if the income producing activity is performed within and without Florida but the greater proportion of the income producing activity is performed in Florida, based on costs of performance. The term “income producing activity” applies to each separate item of income and means the transactions and activity directly engaged in by the taxpayer for the ultimate purpose of obtaining gains or profits. Where independent contractors are used to complete a contract, the term “income producing activity” will include amounts paid to the independent contractors.

(3) Sales factor for financial organizations.

(a) The sales factor for a financial organization includes gross receipts as described in Section 220.15(5)(a), F.S. However, the sales factor is expanded by Section 220.15(5)(c), F.S., for a financial organization.

(b) Regular monthly charges for an account maintained in a Florida branch will be deemed to be Florida sales, regardless where the accounting services for the account are performed.

(c) Gross profits from trading in stocks, bonds, or other securities are considered sales for a financial organization. The gross profits are considered Florida sales if the stocks, bonds, or securities are managed within Florida. The management is deemed to be within Florida if the customer or client is within Florida.

(d) Interest on loans is included in the sales factor. Interest received within Florida, other than interest from loans secured by mortgages, deeds of trust, or other liens upon real or tangible personal property located outside Florida, is included in the numerator of the factor.

(e) Dividends are included in the factor. Dividends received within Florida are included in the numerator.

(f) Where a loan is secured by multiple liens upon real or tangible personal property, part of which is within Florida and part of which is without Florida, the amount of the interest which is included in the numerator of the factor is based on a fraction, the numerator of which is the value of the secured property in Florida, and the denominator of which is the value of the secured property everywhere. The “value of the secured property” will be the fair market value of the property at the time of the loan.

(4) Sales of a partnership are included in the denominator of a taxpayer’s sales factor to the extent of the taxpayer’s interest in the partnership. The amount of sales in Florida is also included in the numerator of the sales factor to the extent of the taxpayer’s interest in the partnership. Partnership sales should be allocated to each partner based on each partner’s interest in the partnership, or as designated in the partnership agreement, for inclusion in the Florida sales factor.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.15 FS. History–New 5-17-94, Amended 3-18-96, 10-2-01, 1-8-19.

Fla. Admin. Code R. 12C-1.016 Business/Nonbusiness Income

(1) “Nonbusiness income” means all income other than business income. For a determination of nonbusiness income, see Section 220.03(1)(r), F.S.

(a) The classification of income by the labels occasionally used, such as manufacturing income, compensation for services, sales income, interest, dividends, rents, royalties, gains, operating income, nonoperating income, etc., is of no import in determining whether income is business or nonbusiness income. Income of any type or class and from any source is business income if it arises from transactions and activity occurring in the regular course of a trade or business. Accordingly, the critical element in determining whether income is “business income” or “nonbusiness income” is the identification of the transactions and activity which are the elements of a particular trade or business. In general, all transactions and activities of the taxpayer which are dependent upon or contribute to the operations of the taxpayer’s economic enterprise as a whole constitute the taxpayer’s trade or business and will be transactions and activity arising in the regular course of, and will constitute integral parts of, a trade or business.

(b) Examples. The examples below illustrate the provisions of this rule relating to whether particular income is business or nonbusiness income. The examples used are illustrative only and do not purport to set forth all pertinent facts used in determination of whether particular income is business or nonbusiness income.

1. Rents from real and tangible personal property. Rental income from real and tangible property is business income if the property with respect to which the rental income was received is used in the taxpayer’s trade or business or is incidental thereto and therefore is includible in the property factor.

a. Example: The taxpayer operates a multistate car rental business. The income from car rentals is business income.

b. Example: The taxpayer is engaged in the heavy construction business in which it uses equipment such as cranes, tractors, and earth-moving vehicles. The taxpayer makes short-term leases of the equipment when particular pieces of equipment are not needed on any particular project. The rental income is business income.

c. Example: The taxpayer operates a multistate chain of men’s clothing stores. The taxpayer purchases a five-story office building for use in connection with its trade or business. It uses the street floor as one of its retail stores and the second and third floors for its general corporate headquarters. The remaining two floors are leased to others. The rental of the two floors is incidental to the operation of the taxpayer’s trade or business. The rental income is business income.

d. Example: The taxpayer constructed a plant for use in its multistate manufacturing business, and 20 years later the plant was closed and put up for sale. The plant was rented for a temporary period from the time it was closed by the taxpayer until it was sold 18 months later. The rental income is business income, and the gain on the sale of the plant is business income.

e. Example: The taxpayer operates a multistate chain of grocery stores. It owned an office building which it occupied as its corporate headquarters. Because of inadequate space, taxpayer acquired a new and larger building elsewhere for its corporate headquarters. The old building was rented to an investment company under a five-year lease. Upon expiration of the lease, taxpayer sold the building at a gain (or loss). The net rental income received over the lease period is business income, and the gain (or loss) on the sale of the building is nonbusiness income.

2. Gains or losses from sales of assets. Gain or loss from the sale, exchange or other disposition of real or tangible or intangible personal property constitutes business income if the property while owned by the taxpayer was used in the taxpayer’s trade or business.

a. Example: In conducting its multistate manufacturing business, the taxpayer systematically replaces automobiles, machines, and other equipment used in the business. The gains or losses resulting from those sales constitute business income.

b. Example: The taxpayer constructed a plant for use in its multistate manufacturing business and 20 years later sold the property at a gain while it was in operation by the taxpayer. The gain is business income.

c. Example: Same as Example b., except that the plant was closed and put up for sale but was not in fact sold until a buyer was found 18 months later. The gain is business income.

d. Example: Same as Example b., except that the plant was rented while being held for sale. The rental income is business income, and the gain on the sale of the plant is business income.

3. Interest. Interest income is business income where the intangible with respect to which the interest was received arises out of or was created in the regular course of the taxpayer’s trade or business operations or where the purpose for acquiring and holding the intangible is related to or incidental to such trade or business operations.

a. Example: The taxpayer operates a multistate chain of department stores, selling for cash and on credit. Service charges, interest, or time-price differentials and the like are received with respect to installment sales and revolving charge accounts. The amounts are business income.

b. Example: The taxpayer conducts a multistate manufacturing business. During the year the taxpayer receives a federal income tax refund and collects a judgment against a debtor of the business. Both the tax refund and the judgment bore interest. The interest income is business income.

c. Example: The taxpayer is engaged in a multistate manufacturing and wholesaling business. In connection with that business, the taxpayer maintains special accounts to cover such items as workmen’s compensation claims, rain and storm damage, machinery replacement, etc. The funds in those accounts are invested. Similarly, the taxpayer temporarily invests funds intended for payment of federal, state and local tax obligations. The interest income is business income.

d. Example: The taxpayer is engaged in a multistate money order and traveler’s check business. In addition to the fees received in connection with the sale of the money orders and traveler’s checks, the taxpayer earns interest income by the investment of the funds pending their redemption. The interest income is business income.

e. Example: The taxpayer is engaged in a multistate manufacturing and selling business. The taxpayer usually has working capital and extra cash totaling $200,000 which it regularly invests in short-term interest bearing securities. The interest income is business income.

4. Dividends. Dividends are business income where the stock with respect to which the dividends are received arises out of or was acquired in the regular course of the taxpayer’s trade or business operations or where the purpose for acquiring and holding the stock is related to or incidental to such trade or business operations.

a. Example: The taxpayer operates a multistate chain of stock brokerage houses. During the year the taxpayer receives dividends on stock it owns. The dividends are business income.

b. Example: The taxpayer is engaged in a multistate manufacturing and wholesaling business. In connection with that business the taxpayer maintains special accounts to cover such items as workmen’s compensation claims, etc. A portion of the moneys in those accounts is invested in interest-bearing bonds. The remainder is invested in various common stocks listed on national stock exchanges. Both the interest income and any dividends are business income.

c. Example: The taxpayer and several unrelated corporations own all of the stock of a corporation whose business operations consist solely of acquiring and processing materials for delivery to the corporate owners. The taxpayer acquired the stock in order to obtain a source of supply of materials used in its manufacturing business. The dividends are business income.

d. Example: The taxpayer is engaged in a multistate heavy construction business. Much of its construction work is performed for agencies of the federal government and various state governments. Under state and federal laws applicable to contracts for these agencies, a contractor must have adequate bonding capacity, as measured by the ratio of its current assets (cash and marketable securities) to current liabilities. In order to maintain an adequate bonding capacity, the taxpayer holds various stocks and interest-bearing securities. Both the interest income and any dividends received are business income.

e. Example: The taxpayer receives dividends from the stock of its subsidiary or affiliate which acts as the marketing agency for products manufactured by the taxpayer. The dividends are business income.

f. Example: The taxpayer is engaged in a multistate glass manufacturing business. It also holds a portfolio of stock and interest-bearing securities, the acquisition and holding of which are unrelated to the manufacturing business. The dividends and interest income received are nonbusiness income.

5. Patent, trademark, and copyright royalties. Patent, trademark and copyright royalties are business income where the patent or trademark or copyright with respect to which the royalties were received arises out of or was created in the regular course of the taxpayer’s trade or business operations or where the purpose for acquiring and holding the patent or trademark or copyright is related to or incidental to such trade or business operations.

a. Example: The taxpayer is engaged in the multistate business of manufacturing and selling industrial chemicals. In connection with that business the taxpayer obtained patents on certain of its products. The taxpayer licensed the production of the chemicals in foreign countries, in return for which the taxpayer receives royalties. The royalties received by the taxpayer are business income.

b. Example: The taxpayer is engaged in the music publishing business and holds copyrights on numerous songs. The taxpayer acquires the assets of a smaller publishing company, including music copyrights. These acquired copyrights are thereafter used by the taxpayer in its business. Any royalties received on these copyrights are business income.

c. Example: Same as Example b., except that the acquired company also held the patent on a type of phonograph needle. The taxpayer does not manufacture or sell phonographs or phonograph equipment. Any royalties received on the patent would be nonbusiness income.

(2) Nonbusiness income is not subject to apportionment, but is allocated as provided in Section 220.16, F.S.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.03(1)(r), 220.16 FS. History–New 12-21-88, Amended 3-18-96.

Fla. Admin. Code R. 12C-1.0186 Credit for Florida Alternative Minimum Tax

(1) If the Florida alternative minimum tax is paid pursuant to Section 220.11(3), F.S., or the Florida alternative minimum tax is offset by the credits provided in Section 220.1875 or 220.193, F.S., an alternative minimum tax credit is allowed by Section 220.186, F.S., in subsequent years.

(2) The amount of the alternative minimum tax credit is equal to the excess of the alternative minimum tax paid over the amount of regular corporate income tax without application of the credits provided in Section 220.1875 or 220.193, F.S., that would have otherwise been due. There is no limitation on the total dollar amount of the credit.

(3) An alternative minimum tax credit may not be taken in a subsequent year when alternative minimum tax is also due for that subsequent year. The credit may only be taken for a tax year when regular tax is due pursuant to Section 220.11(2), F.S. Furthermore, the amount of alternative minimum tax credit that may be taken is limited to the difference between the amount of regular tax that is due and the amount of alternative minimum that would be due if the application of the alternative minimum tax statutes was required. Therefore, for purposes of computing the limitation, the taxpayer will need to compute alternative minimum tax due in a subsequent year in which an alternative minimum tax credit is going to be used, even if the corporation is not otherwise required to compute the alternative minimum tax.

(4) There is no time limitation in which the alternative minimum tax credit must be used.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.186 FS. History–New 12-7-92, Amended 4-26-10, 6-6-11.

Fla. Admin. Code R. 12C-1.0187 Credits for Contributions to Nonprofit Scholarship Funding Organizations

History

• Rulemaking Authority 213.06(1), 220.187, 220.51 FS. Law Implemented 213.05, 213.35, 213.755, 220.03(1), 220.131, 220.187, 220.44, 624.51055 FS. History‒New 3-15-04, Amended 4-5-07, 4-26-10, Repealed 6-6-11.

Fla. Admin. Code R. 12C-1.0188 Community Contribution Tax

(1) Who May Claim the Credit Against Corporate Income Tax or Insurance Premium Tax.

(a) Any taxpayer who has received prior approval from the Florida Department of Commerce for a community contribution to any revitalization project undertaken by an eligible sponsor, will be allowed a credit of 50 percent of the contribution. The total annual credit for each taxpayer, applied against the tax due under Chapter 220, F.S., for a taxable year, is limited to $200,000. Contributions approved for insurance companies who are eligible to take this credit against the insurance premium tax, as provided for in Section 624.5105, F.S., are not eligible to receive the credit against the corporate income tax.

(b) The valuation of the contribution determined by the Florida Department of Commerce will be used in the computation of the credit. In instances where the value is misrepresented to the Florida Department of Commerce, the Director of the Department of Revenue has the authority to redetermine the value of the contribution, pursuant to Section 220.44, F.S.

1. A contribution of more than $400,000 may be made in a tax year. However, the credit received for any contribution may not exceed the $200,000 annual credit limitation.

2. When to Claim the Credit. The credit will be claimed in the taxpayer’s taxable year in which the contribution is paid or the transfer of the asset is completed, whichever is later. Any taxpayer on the accrual basis will be allowed the deduction if the contribution conforms to the provisions of s. 170(a)(2), I.R.C.

(2) Carryover of Community Contributions.

(a) If a credit granted in a tax year exceeds the tax liability for that year, the unused credit may be carried forward for a period not to exceed 5 years.

(b) The community contribution tax credit carryover created in a given year as a result of an annual contribution, cannot exceed the annual $200,000 credit limitation. However, the total carryover for all years may be greater than $200,000.

(c) If applicable, a schedule of the computation of any carryover of the credit must be included with the return.

(3) Consolidated Returns. In instances where taxpayers are filing a consolidated return, the community contribution tax credit will not be limited to the tax liability allocated to the particular corporation which made the contribution. Credits provided under this section are applied against the consolidated tax liability of the affiliated group that files a Florida consolidated income tax return.

(4) S Corporations. An S Corporation may avail itself of the community contribution tax credit at any time it has a Florida corporate income tax liability. In order to preserve the credit, even if the S Corporation does not have a tax liability for the current taxable year, a Form F-1120 must be filed for that taxable year, with a schedule attached which indicates the allowable credit is being carried forward. The credit may then be utilized in any of the eligible carry forward taxable years against any corporate income tax liability incurred either as an S Corporation, or as a C Corporation, if the S Corporation election is terminated.

(5) Recordkeeping Requirements. Every corporation claiming the community contribution tax credit must retain a copy of each approved application for tax credit obtained from the issuing agency for as long as the contents are material for administrative purposes. The retention of records is generally controlled by Section 213.35, F.S. This section requires records to be kept until the expiration of time within which the Department of Revenue may make an assessment under Section 95.091(3), F.S.

History

• Rulemaking Authority 213.06(1), 220.183(4)(d), 220.51 FS. Law Implemented 213.35, 220.03(1), 220.131, 220.183, 220.44 FS. History–New 1-3-96, Amended 8-1-02, 5-1-06, 1-1-24.

Fla. Admin. Code R. 12C-1.0191 Capital Investment Tax Credit Program

(1) Qualifying projects defined in Sections 220.191(1)(g)1. and 2., F.S.

(a) Section 220.191, F.S., requires an application process for the capital investment tax credit, which includes review and recommendation by Enterprise Florida, and a certification from the Department of Economic Opportunity, Division of Strategic Business Development. Once the applicant has been recommended by Enterprise Florida and certified by the Department of Economic Opportunity, the applicant is required to reach a written agreement with the Florida Department of Revenue on how the taxable income from the qualifying project is to be determined or calculated. The Department adopts a Technical Assistance Advisement, which the applicant requests from the Department, as the method for entering into such written agreement. When requesting the Technical Assistance Advisement, the applicant is required to follow the guidelines provided in Rule 12-11.003, F.A.C., and in addition, to include how the applicant proposes to determine the taxable income generated by or arising out of the qualifying project.

1. In situations where the applicant is using a separate corporate entity to account for the activities of the qualifying project, the taxable income generated by that entity as reported on the return filed pursuant to Section 220.22(1), F.S., will be used to determine the amount of income tax due and the subsequent amount of the credit that will be available for use. If the applicant has other activities not related to the project reported on this return, a pro forma attachment will be required to separately account for the taxable income generated by the project, the resulting amount of tax due, and the subsequent amount of the credit that will be available for use.

2. Where the activities of the qualifying project are included within preexisting multiple corporate structures, such as several affiliates or divisions, or the activities of the project are included within a corporation or corporations that are included in a consolidated income tax return filed pursuant to Section 220.131, F.S., the applicant will be required to separately account for, using a “pro forma” format, the qualifying project’s taxable income, the amount of income tax due, and subsequent credit. This pro-forma attachment will indicate separately all revenues, expenses, either direct or indirect, and any other adjustments made in the determination of the project’s annual taxable income, and the subsequent annual amount of the Capital Investment Tax Credit that may be claimed on the Florida corporate income tax return. This computation requires the qualifying project’s annual taxable income to be determined by generally accepted accounting principles (GAAP) and to conform to the provisions contained in Florida Corporate Income Tax Law under Chapter 220, F.S.

3. In situations where the activities of the project are included within other types of corporate structures, the applicant will be required to separately account for, using a “pro forma” format, the qualifying project’s taxable income, the amount of income tax due, and subsequent credit. This pro-forma attachment will indicate separately all revenues, expenses, either direct or indirect, and any other adjustments made in the determination of the project’s annual taxable income, and the subsequent annual amount of the Capital Investment Tax Credit that may be claimed on the Florida corporate income tax return. This computation requires the qualifying project’s annual taxable income to be determined by generally accepted accounting principles (GAAP) and to conform to the provisions contained in Florida Corporate Income Tax Law under Chapter 220, F.S.

(b)1. The maximum annual amount of Capital Investment Tax Credit is limited to 5 percent of the certified eligible capital costs of the qualifying project, for a period not to exceed 20 years, beginning with the commencement of the project’s operations. The tax credit may not be carried forward or backward, except as noted in subparagraph 2. The sum of all capital investment tax credits cannot exceed 100 percent of the eligible capital costs of the project.

2. A carryover of credit is available for a qualifying business that invested at least $100 million and is eligible to claim the credit against 100 percent of its corporate income tax liability pursuant to Section 220.191(2)(a)1., F.S. Unused credits from the 20-year credit period may be claimed in the 21st through 30th tax years after commencement of operations of such qualifying project.

3. The amount of carryover from any one taxable year is five (5) percent of the cumulative capital investment that is at least $100 million less the amount of capital investment tax credit that could be used on the tax return for the taxable year. The amount of carryover from a taxable year may not exceed five (5) percent of the cumulative capital investment that is at least $100 million.

4. Example: Taxpayer A is entitled to a capital investment credit in 2018 because it made a cumulative capital investment of $100 million; the 2018 corporate income tax due on the income generated by or arising out of its capital investment is $4 million; and the tax liability on its corporate income tax return was $4.5 million. From the 2018 taxable year, Taxpayer A generated a capital investment carryover of $1 million ($5 million less the lesser of $4.5 million or $4 million).

5. Example: Taxpayer B is entitled to a capital investment credit in 2020 because it made a cumulative capital investment of $100 million; the 2020 corporate income tax due on the income generated by or arising out of its capital investment is $3.5 million; and the corporate income tax liability on its tax return was $3 million. From the 2020 taxable year, Taxpayer B generated a capital investment carryover of $2 million ($5 million less the lesser of $3 million or $3.5 million).

(2) Qualifying projects defined in Section 220.191(1)(g)3., F.S.

(a) Section 220.191, F.S., requires an application process for the capital investment tax credit, which includes review and recommendation by Enterprise Florida and a certification from the Department of Economic Opportunity, Division of Strategic Business Development. The maximum annual amount of Capital Investment Tax Credit is limited to the lesser of $15 million or 5 percent of the certified eligible capital costs of the qualifying project, for a period not to exceed 20 years, beginning with the commencement of the project’s operations. If the tax credit is not fully used in any one year, the unused amount may be carried forward for a period not to exceed 20 years after the commencement of operations of the project. The tax credit may be used in whole or in part by the qualifying business or by any corporation that is a member of that qualifying business’s affiliated group of corporations, is a related entity taxable as a cooperative under subchapter T of the Internal Revenue Code, or, if the qualifying business is an entity taxable as a cooperative under subchapter T of the Internal Revenue Code, is related to the qualifying business. The sum of all capital investment tax credits cannot exceed 100 percent of the eligible capital costs of the project.

(b) When the capital investment tax credit is used in whole or in part by a member of the qualifying business’s affiliated group or by a related entity that is taxable as a cooperative under subchapter T of the Internal Revenue Code, the qualifying business and the entities claiming the qualifying business’s tax credit must attach a schedule reconciling the amount of capital investment tax credit claimed by each entity. The name, federal identification number, and amount of capital investment tax credit claimed by each entity must be included in the schedule.

(3) A copy of the Department of Economic Opportunity certification, Enterprise Florida documents, and, as appropriate, any “pro forma” attachment required by the written agreement to provide the calculations used in the determination of the annual taxable income generated by or arising out of the qualifying project, is required to be included with the Florida Corporate Income Tax Return (Form F-1120) when filing for and claiming the Capital Investment Tax Credit.

(4) A taxpayer that claims the capital investment tax credit against the insurance premium tax may not claim credit for the same qualifying project against the corporate income tax. For qualifying projects defined in Section 220.191(1)(g)3., F.S., the capital investment tax credit may only be applied against corporate income tax.

(5) A qualifying business that establishes a qualifying project that includes locating a new solar panel manufacturing facility in Florida that generates a minimum of 400 jobs within six months after commencement of operations with an average salary of at least $50,000, may assign or transfer its capital investment tax credit, or any portion thereof, to any other business. The amount of credit that may be transferred in any year is the lesser of (1) the qualifying business’s Florida corporate income tax liability for the tax year, or (2) the credit amount granted for the tax year. A business receiving the transferred credit may use the credit only in the year received, and the credit may not be used in any other tax year. Taxpayers are required to file a Transfer a Florida Tax Credit ‒ Corporate Income Tax (Form F-1193T, incorporated by reference in Rule 12C-1.051, F.A.C.) to transfer a capital investment tax credit for which a transfer is provided. The transfer must be verified by the Department prior to the transferee claiming the credit. Within 15 days of receipt of a completed Form F-1193T, the Department will notify the transferor and the transferee of the amount of tax credit authorized for transfer. A copy of the letter from the Department allowing the transfer must be attached by the transferee to the Florida Corporate Income/Franchise Tax Return (Form F-1120, incorporated by reference in Rule 12C-1.051, F.A.C.) on which the credit is claimed.

(6) Taxpayers making application for the Capital Investment Tax Credit or transferring a capital investment tax credit should refer to Section 220.191, F.S., for the definition of terms, statutory requirements, and other pertinent guidelines.

History

• Rulemaking Authority 213.06(1), 220.191(8), 220.51 FS. Law Implemented 220.191 FS. History–New 8-4-05, Amended 4-5-07, 4-26-10, 1-17-13, 1-8-19.

Fla. Admin. Code R. 12C-1.01915 Credit for Qualified Railroad Reconstruction or Replacement Expenditures

(1) Definitions. For purposes of this rule, the following terms mean:

(a) “Credit” means the credit for qualified railroad reconstruction or replacement expenditures authorized under Section 220.1915, F.S.

(b) “Qualified expenditures” means gross expenditures made in Florida by a qualifying railroad during the taxable year in which the credit is claimed, provided such expenditures were made on track that was owned or leased by a qualifying railroad on the last day of the prior calendar year, and were:

1. For the maintenance, reconstruction, or replacement of railroad infrastructure, including track, roadbed, bridges, industrial leads and sidings, or track-related structures which were owned or leased by the qualifying railroad; or

2. For new construction by the qualifying railroad of industrial leads, switches, spurs and sidings, and extensions of existing sidings located in Florida.

(c) “Qualifying railroad” means any Class II or Class III railroad operating in Florida on the last day of the calendar year prior to the taxable year for which the credit is claimed, pursuant to the classifications in effect for that year as set by the United States Surface Transportation Board or its successor.

(2) Available Credits for Qualifying Railroads. A credit equal to 50 percent of a qualifying railroad’s qualified expenditures incurred in Florida during a taxable year is available against the Florida corporate income tax imposed by Chapter 220, F.S. However, the amount of the credit may not exceed $3,500 multiplied by the number of miles of railroad track owned or leased in Florida by the qualifying railroad as of the end of the calendar year prior to the taxable year in which the qualified expenditures were incurred.

(a) The amount taken as a credit must be added to taxable income prior to computing the tax imposed by Ch. 220, F.S.

(b) For purposes of computing the credit limitation, double track is treated as multiple lines of railroad track. One mile of single track is equal to one mile, but one mile of double track is equal to two miles.

(c) The credit is allowed only once for each mile of railroad track in Florida in each taxable year. No two qualifying railroads may claim the same mile of railroad track in a taxable year.

(3) Application Process. To apply for available program credits, a qualifying railroad must submit a Florida Credit for Qualified Railroad Reconstruction or Replacement Expenditures Application for Tax Credit (Form F-11915, incorporated by reference in Rule 12C-1.051, F.A.C.) to the Department each taxable year, along with documentation demonstrating that the qualifying railroad’s qualified expenditures meet the criteria to receive credits. Only one Form F-11915 may be submitted per qualifying railroad per taxable year.

(a) If federal Form 8900 (Qualified Railroad Track Maintenance Credit), or its equivalent, is filed with the Internal Revenue Service within 60 days prior to submitting Form F-11915, the supporting documentation must include federal Form 8900. Otherwise, a qualifying railroad must submit federal Form 8900 directly to the Department within 60 days of submitting the form to the Internal Revenue Service.

(b) The qualifying railroad must submit Form F-11915 to the Department no later than May 1 of the calendar year following the year in which the qualified expenditures were made. If the May 1 due date falls on a Saturday, Sunday, or legal holiday, Form F-11915 will be considered timely if the form is postmarked or electronically submitted on the next succeeding day that is not a Saturday, Sunday, or legal holiday. The May 1 due date may not otherwise be extended.

1. Example: Qualifying railroad X operates on a calendar year basis. X has qualified expenditures during calendar year 2024. X must apply for a credit by submitting Form F-11915 to the Department no later than May 1, 2025.

2. Example: Qualifying railroad Y operates on a fiscal year basis, with a January 31 year end. Y has qualified expenditures during the fiscal year beginning February 1, 2024, and ending January 31, 2025. Y must apply for a credit by submitting Form F-11915 to the Department no later than May 1, 2026.

(c) If the qualifying railroad is a disregarded entity for federal tax purposes, Form F-11915 must be submitted in the name of the owner of the disregarded entity.

(d) The Department will issue a letter to the qualifying railroad within 30 days after receipt of the completed application indicating the amount of the approved credit.

(4) Determination of Carryforward or Transfer of Unused Credits. When a credit is not fully used during a taxable year, either because the qualifying railroad that earned the credit has insufficient tax liability or because the qualifying railroad is not a taxpayer under Chapter 220, F.S., the credit may be carried forward or may be transferred in accordance with subsection (5). The carryforward or transferred credit may be used in the year approved or any of the 5 subsequent taxable years in which the credit was earned, when the tax imposed by Chapter 220, F.S., for that taxable year exceeds the credit for which the qualifying railroad or transferee is eligible in that taxable year, after applying the other credits and unused carryovers in the order provided by Section 220.02(8), F.S.

(a) Amounts that exceed the limitation of $3,500 multiplied by the number of miles of railroad track owned or leased in Florida by the qualifying railroad as of the end of the calendar year prior to the taxable year in which the qualified expenditures were incurred, as provided in subsection (2), may not be carried forward to a subsequent taxable year or transferred.

(b) Example: Qualifying railroad Corporation A incurs $20,000 of qualified expenditures during its taxable year. Corporation A owns 2 miles of railroad track within Florida as of the end of the calendar year prior to the taxable year in which the qualified expenditures are incurred.

Corporation A’s credit is equal to 50 percent of the $20,000 qualified expenditures incurred in the taxable year but may not exceed $3,500 multiplied by the number of miles owned or leased in Florida at the end of the calendar year prior to the taxable year in which the qualified expenditures are incurred.

Credit computation: 50% x $20,000 = $10,000 but may not exceed $7,000 ($3,500 x 2 miles of railroad track). Therefore, Corporation A receives a $7,000 credit for qualified railroad reconstruction or replacement expenditures.

The amount of computed credit exceeding the limitation amount ($3,000 = $10,000 - $7,000) cannot be used, carried forward, or transferred.

(5) Transfer of credit. Any unused credit may be transferred, in whole or in part. The transfer of a credit does not affect the time limit for taking the credit, and the credit is subject to the same limitations imposed on the transferor in accordance with subsection (4). Transferred credits received by the transferee may only be used on tax returns with a due date or extended due date on or after the date of transfer.

(a) Credits may be transferred to a taxpayer subject to the tax under Chapter 220, F.S., and that either transports property using the rail facilities of any qualifying railroad, or furnishes railroad-related property or services, as those terms are defined in 26 C.F.R. s. 1.45G-1(b) (March 18, 2018), and herein incorporated by reference (http://www.flrules.org/Gateway/reference.asp?No=Ref-16071), to any railroad operating in Florida, or is a railroad. A copy of this regulation is available from the Department at https://floridarevenue.com/taxes/taxesfees/Pages/corp_tax_incent.aspx.

(b) The transferor is required to notify the Department of a credit transfer by submitting a Florida Credit for Qualified Railroad Reconstruction or Replacement Expenditures Notice of Intent to Transfer a Credit (Form F-11915T, incorporated by reference in Rule 12C-1.051, F.A.C.) to the Department within 30 days after the transfer. A separate notice must be submitted for each taxpayer receiving a transfer of credit.

(c) The Department will provide a letter to the transferor and transferee acknowledging the transfer of credit. The transferee must attach the letter to its Florida Corporate Income/Franchise Tax Return (Form F-1120) on which the credit is taken.

(6) Every taxpayer claiming a credit must retain documentation that substantiates and supports the credit until tax imposed by Chapter 220, F.S., may no longer be determined and assessed under Section 95.091(3) or Section 220.23, F.S. Documentation to substantiate and support the credit includes copies of: the completed credit application submitted to the Department; documentation related to any federal credit earned under 26 U.S.C. 45G; documentation related to any qualified expenditures incurred by the qualifying railroad, and the transfer letter issued by the Department reflecting the credit amount transferred.

History

• Rulemaking Authority 213.06(1), 220.1915(7) FS. Law Implemented 220.02(8), 220.1915 FS. History—New 12-3-23, Amended 2-20-25.

Fla. Admin. Code R. 12C-1.0192 Renewable Energy Technologies Investment Tax Credit

History

• Rulemaking Authority 213.06(1), 220.192(5), (7), 220.51 FS. Law Implemented 220.192 FS. History–New 4-26-10, Repealed 12-12-19.

Fla. Admin. Code R. 12C-1.0193 Florida Renewable Energy Production Credit

History

• Rulemaking Authority 213.06(1), 220.193, 220.51 FS. Law Implemented 213.35, 220.02(8), 220.03(1), 220.131, 220.193, 220.21 FS. History–New 4-26-10, Amended 1-17-13, Repealed 2-20-25.

Fla. Admin. Code R. 12C-1.0194 Corporate Income Tax Credits for Spaceflight Projects

(1) Taxpayers seeking to obtain a corporate income tax credit for spaceflight projects must apply to the Department of Economic Opportunity, as provided in Section 220.194, F.S.

(2)(a) For tax years beginning on or after October 1, 2015, a spaceflight business that has been approved and certified by the Department of Economic Opportunity may take a nontransferable corporate income tax credit of up to fifty percent (50%) of its Florida corporate income/franchise tax liability after all other credits are applied in the order provided in Section 220.02(8), F.S.

(b) A letter of certification issued by the Department of Economic Opportunity upon approval of an Application for Certification must be attached to the certified spaceflight business’ Florida corporate income/franchise tax return on which the nontransferable credit for spaceflight projects is taken.

(c) A certified spaceflight business may not file a consolidated Florida corporate income/franchise tax return when claiming the nontransferable corporate income tax credit.

(3)(a) For tax years beginning on or after October 1, 2015, a spaceflight business may be approved and certified by the Department of Economic Opportunity to transfer, in whole or in part, its Florida net operating loss that would otherwise be available to be taken on a Florida corporate income/franchise tax return, provided that the activity giving rise to the net operating loss occurred after July 1, 2011.

(b)1. To perfect the transfer, a certified spaceflight business (transferor) must provide the Department with a written Transfer Statement approved by the Department of Economic Opportunity to revenueaccounting@floridarevenue.com. For assistance, call the Department at (850)617-8586 Monday through Friday (excluding holidays). Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

2. The Transfer Statement must include: the date the transfer is effective; the transferee’s name, address, federal employer identification number (FEIN) and/or business partner number; the tax year that the transferee intends to use the tax credit; and the amount of tax credit transferred to the transferee.

3. Upon receipt of a Transfer Statement approved by the Department of Economic Opportunity, the Department will provide the transferee and the Department of Economic Opportunity with a certificate reflecting the tax credit amount transferred. The transferee must attach the certificate to its Florida corporate income/franchise tax return on which the credit is taken. Any unused credit is forfeited and not available for use in a subsequent tax year.

(c) Net operating losses that are transferred may not be subtracted from the income of the transferor.

(d) Payments received for net operating losses that are transferred are to be treated as nonbusiness income allocable to Florida on the transferor's Florida corporate income/franchise tax return.

(4) The amount taken as a corporate income tax credit for spaceflight projects must be added to federal taxable income prior to computing the Florida corporate income/franchise tax due.

(5) An amended Florida Corporate Income/Franchise Tax Return (Form F-1120X, incorporated by reference in Rule 12C-1.051, F.A.C.) is required if the corporate income tax credit for spaceflight project is disallowed or modified by the Department or if the Department of Economic Opportunity issues a Notice of Revocation or Modification to revoke or modify a letter of certification previously issued. The taxpayer must pay additional tax and interest as may be due, computed as the difference between the tax that would have been due had the credit been computed correctly and the tax actually paid. In addition the spaceflight business is liable for a penalty equal to 100 percent of the additional tax due.

(6) Every taxpayer claiming a corporate income tax credit for spaceflight projects must retain documentation that substantiates and supports the credit until tax imposed by Chapter 220, F.S., may no longer be determined and assessed under Section 95.091(3), or 220.23, F.S. Documentation to substantiate and support the credit includes copies of: the completed tax credit application submitted to the Department of Economic Opportunity; the letter of certification issued by the Department of Economic Opportunity; and the Transfer Certificate reflecting the credit amount transferred issued by the Department.

History

• Rulemaking Authority 213.06(1), 220.194(8), 220.51 FS. Law Implemented 220.194 FS. History–New 1-11-16.

Fla. Admin. Code R. 12C-1.0196 Research and Development Tax Credit

(1)(a)1. A research and development tax credit against Florida corporate income/franchise tax is provided in Section 220.196, F.S., to a business enterprise that claims a valid research credit against federal corporate income tax for qualified research expenses as provided in section 41 of the Internal Revenue Code (26 U.S.C. s. 41). The business enterprise must be a corporation, as defined in Section 220.03, F.S., and a qualified target industry business, as defined in Section 288.106, F.S. However, only qualified target industry businesses in the manufacturing, life sciences, information technology, aviation and aerospace, homeland security and defense, cloud information technology, marine sciences, materials science, and nanotechnology industries may qualify for a research and development tax credit.

2. Businesses that are partnerships, limited liability companies taxed as partnerships, or disregarded single member limited liability companies, are not corporations under Section 220.03, F.S., and, therefore, may not apply for an allocation of credit. However, each partner of a partnership that is a corporation may apply separately for an allocation of credit based on the corporation’s separate research expenses, including allocated partnership research expenses. For disregarded entities, the single member that is a corporation must apply separately for an allocation of credit based on the corporation’s separate research expenses, including those of the disregarded single member limited liability company. For purposes of 26 U.S.C. s. 41, the research expenses are apportioned among the partners during the taxable year and are treated as paid or incurred directly by the partners rather than by the partnership.

(b) “Qualified research expenses” include research expenses qualifying for the credit under section 41 of the Internal Revenue Code (26 U.S.C. s. 41) for in-house research expenses incurred in Florida or contract research expenses incurred in Florida. The term “qualified research expenses” does not include research conducted outside Florida or research expenses that do not qualify for a credit under 26 U.S.C. s. 41.

(c)1. The credit is available annually and is based upon qualified research expenses in Florida allowed under section 41 of the Internal Revenue Code (26 U.S.C. s. 41).

2. Example: Tax credit applications approved for the 2015 calendar year were based upon qualified research expenses incurred during calendar year 2015 for tax years that began in 2015.

(2)(a) To receive an annual allocation of the annual funds available for granting tax credits to qualified target industry businesses, an Allocation for Research and Development Tax Credit for Florida Corporate Income/Franchise Tax (Form F-1196, incorporated by reference in Rule 12C-1.051, F.A.C.) must be filed with the Department between 12:00 a.m. (ET), March 20 and 11:59 p.m. (ET), March 26 of that same year. The application is available on the Department’s website at floridarevenue.com/forms. Taxpayers required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and rule Chapter 12-24, F.A.C., must apply online using the Department’s website. When the completed application is submitted online, a confirmation number will be provided to confirm receipt of the application.

(b) A business enterprise must attach a letter from the Florida Department of Commerce, certifying that the business is an eligible target industry business, to its Allocation for Research and Development Tax Credit for Florida Corporate Income/Franchise Tax application. The Florida Department of Commerce will provide a letter upon receiving a request.

(c) Businesses needing assistance with the Allocation for Research and Development Tax Credit for Florida Corporate Income/Franchise Tax may call the Department at (850)488-6800, Monday through Friday (excluding holidays). Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(d) If the total credits requested (computed as the sum of the credit allocations requested from Form F-1196 for all qualified applicants) exceed the annual credit cap, each qualified applicant will be allocated credit on a prorated basis.

(e) Business enterprises that otherwise qualify and that have timely exercised their rights and challenged a Florida Department of Commerce refusal to issue a certification letter may apply to the Department for an allocation of credit pursuant to this paragraph, but must include documentation of their protest. The Department will consider the credit application and reserve an amount of credit for that applicant as if a certification letter had been received.

1. Should the petitioner prevail and receive a certification letter, the Department will send the petitioner a letter indicating the amount of credit allocated.

2. Should the petitioner not prevail in its appeal, the Department will send the petitioner a letter to confirm that because no certification letter was received, no credit will be allocated to the petitioner.

3. After all appeals related to that year’s allocation have been resolved by the Florida Department of Commerce, the Department will recompute the original allocation for all approved applicants, without any reserve for denied applicants. To the extent a business enterprise’s new allocation of credit is at least $1 greater than the original allocation for that tax year, the Department will provide a new letter stating the updated allocation amount.

(f) The Department will notify eligible taxpayers by letter of the amount of credit that is allocated to them and the tax year in which the qualified target industry business may claim the credit on its Florida corporate income/franchise tax return.

(g)1. Should the amount of credit requested by a business enterprise be determined to be overstated, the percentage of the original allocation provided by the Department will be applied to the lesser amount of credit that should have been requested. For example, Taxpayer A requested an allocation of credit for 2016 of $800,000, and the Department prorated the request and issued a letter allocating Taxpayer A $368,000 in research and development credit. Later, it was determined Taxpayer A should have only applied for an allocation of $400,000 in credit because its qualifying Florida expenditures were less than originally computed. Taxpayer A is only entitled to a credit allocation of $184,000 ($400,000 x $368,000/$800,000).

2. If the amount of credit requested by a business enterprise is later determined to be understated, the taxpayer may not claim more credit on its Florida corporate income/franchise tax return than it was allocated by the Department because of the annual cap on credit allocations. For example, Taxpayer Z requested an allocation of credit for 2016 of $700,000, and the Department prorated the request and issued a letter allocating Taxpayer Z $322,000 in research and development tax credit. Later, Taxpayer Z determined its allocation request should have been for $950,000, because its qualifying Florida expenditures were more than originally computed. Taxpayer Z is limited to a Florida research and development credit of $322,000 when it files its Florida corporate income/franchise tax return.

(h) Correspondence from the Department to credit applicants may be by electronic means.

(3) A federal research credit must be taken on the federal return filed by the qualified target industry business for the same tax year in which the Florida research and development credit is taken. The amount taken as a Florida research and development credit must be added to taxable income prior to computing the Florida corporate income/franchise tax due. The Florida research and development credit is limited to fifty percent (50%) of the Florida corporate income/franchise tax liability after all other credits are applied in the order provided in Section 220.02(8), F.S. A copy of federal Form 6765 (Credit for Increasing Research Activities) and a copy of federal Form 3800 (General Business Credit) must be attached to the Florida corporate income/franchise tax return on which the Florida research and development credit is taken. In the case of a corporate partner of a partnership that has earned a federal credit for increasing research activities, a copy of federal Form 1065, Schedule K-1 (Partner’s Share of Income, Deductions, Credits, etc.), and a copy of federal Form 3800 must be attached to the Florida corporate income/franchise tax return on which the Florida research and development credit is taken.

(4)(a) Any unused credits may be carried forward for up to five (5) tax years. Carryover credits may be used in a subsequent year when the Florida corporate income/franchise tax for such year exceeds the credit for such year after applying the other credits and unused carryovers in the order provided in Section 220.02(8), F.S.

(b) Example: A taxpayer is allocated a Florida research and development credit of $30,000 for its tax year beginning in 2012 and all requirements of Section 220.196, F.S., are met for the taxpayer to earn the full $30,000 allocation. Its Florida corporate income/franchise tax liability after all other applicable credits are applied is $50,000. The $30,000 Florida research and development credit that the taxpayer is allocated for tax year 2012 is more than 50 percent of its tax liability for tax year 2012. Therefore, the taxpayer is limited to a Florida research and development credit of $25,000 ($50,000 × .50) for tax year 2012, and the remaining $5,000 of Florida research and development credit may be carried forward for up to five tax years.

(5)(a)1. The Florida research and development tax credit is equal to ten percent (10%) of the amount of qualified research expenses incurred in Florida and allowed under section 41 of the Internal Revenue Code (26 U.S.C. s. 41) that exceeds the base amount. The base amount is defined as “the average of the qualified research expenses incurred in Florida for the four tax years preceding the tax year for which the credit is determined.” The four taxable years used to compute the base amount must end before the calendar year for which the qualified research expenses are determined.

2. Example: A taxpayer with a fiscal year end of June 30, 2013, that applies for the Florida research and development credit based upon the qualified research expenses incurred during calendar year 2012 will use the following taxable years for its base amount: taxable years ended June 30, 2011; June 30, 2010; June 30, 2009; and June 30, 2008.

(b)1. Taxpayers that have not been in existence for at least four tax years prior to the tax year in which the Florida research and development credit is claimed must reduce the amount of the credit by twenty-five percent (25%) for each year of the past four tax years that the corporation did not exist.

2. Example: A calendar year taxpayer is incorporated on January 1, 2009. The taxpayer applies for the Florida research and development credit for its tax year beginning January 1, 2012; its Florida qualified research expenses for calendar year 2012 equal $250,000. The taxpayer’s Florida qualified research expenses for its base amount are as follows:

Tax year 2008: $0, as Taxpayer did not exist.

Tax year 2009: $175,000

Tax year 2010: $200,000

Tax year 2011: $225,000

The average of the Florida qualified research expenses for the 4 taxable years preceding 2012 equals $150,000 (($0 + $175,000 + $200,000 + $225,000) ÷ 4). The excess Florida qualified research expenses over the base amount equal $100,000 ($250,000 - $150,000). The tentative Florida research and development credit is $10,000 ($100,000 × .10). However, since the taxpayer was not in existence for at least 4 taxable years immediately preceding tax year 2012, the Florida research and development credit is reduced by 25 percent for each taxable year the taxpayer did not exist. Therefore, the taxpayer’s Florida research and development credit for tax year 2012 is reduced by 25 percent to $7,500 ($10,000 ‒ $2,500).

(6) Every taxpayer claiming a Florida research and development credit must retain documentation that substantiates and supports the credit, a copy of the letter received from the Florida Department of Commerce certifying that the taxpayer meets the requirements of Section 220.196(2)(a)3., F.S. (i.e., is an eligible qualified target industry business), a copy of the letter received from the Department granting the credit, and a schedule reconciling all credit carryovers until tax imposed by Chapter 220, F.S., may no longer be determined and assessed under Section 95.091(3) or 220.23, F.S. Documentation to substantiate and support the credit includes records or other evidence of the amount of qualified Florida research expenses incurred for in-house research or for contract research expenses, that those expenses qualified under 26 U.S.C. s. 41, and that the federal credit was claimed.

(7) A taxpayer may not sell or transfer a credit. However, if all of the assets of the business are sold in a single transaction, the credit will transfer in the same manner that the federal tax benefits transfer.

History

• Rulemaking Authority 213.06(1), 220.196(4), 220.51 FS. Law Implemented 220.196 FS. History‒New 3-12-14, Amended 1-11-16, 3-14-17.

Fla. Admin. Code R. 12C-1.0198 Experiential Learning Tax Credit Program

(1) Definitions. For purpose of this rule, the following terms mean:

(a) “Apprentice” means a person at least 16 years of age who is engaged in learning a recognized skilled trade through actual work experience under the supervision of journeyworker craftspersons, which training should be combined with properly coordinated studies of related technical and supplementary subjects, and who has entered into a written agreement, which may be cited as an apprentice agreement, with an apprenticeship sponsor registered by the Florida Department of Education who may be either an employer, an association of employers, or a local joint apprenticeship committee.

(b) “Full time” means at least 30 hours per week.

(c) “Preapprentice means any person 16 years of age or over engaged in any course of instruction in the public school system or elsewhere, which course is registered as a preapprenticeship program with the Florida Department of Education.

(d) “Qualified business” means a business that is in existence and has been continuously operating for at least 3 years.

(e) “Student intern” means a person who has completed at least 60 credit hours at a state university or 15 credit hours at a Florida College System institution, regardless of whether the student intern receives course credit for the internship; a person who is enrolled in a career center operated by a school district under Section 1001.44, F.S., or a charter technical career center; or any graduate student enrolled at a state university.

(2) Available Tax Credits for Qualified Businesses. For taxable years beginning during calendar years, 2022-2025, an experiential learning tax credit is available against the tax imposed by Chapter 220, F.S., and equal to $2,000 per apprentice, preapprentice, or student intern, but no more than $10,000 per taxable year.

(a) These tax credits are available on a first-come, first-served basis.

(b) The Department must approve the tax credit before the taxpayer can take the credit on a return.

(c) Qualified businesses may carry forward any unused portion of the tax credit for up to two taxable years.

(3) Eligibility.

(a) To be eligible to request a tax credit, a qualified business must employ at least one apprentice, preapprentice, or student intern during any of the taxable years 2022-2025 in an apprenticeship, preapprenticeship, or internship in which the student intern worked full time in Florida for at least 9 consecutive weeks, or the apprentice or preapprentice worked in Florida for at least 500 hours, in addition to one of the following criteria:

1. Twenty percent or more of the business’ current full-time employees were previously employed as apprentices, preapprentices, or student interns by the qualified business.

2. Employed, on average for the 3 immediately preceding taxable years, 10 or fewer full-time employees and previously hired at least one apprentice, preapprentice, or student intern during that time.

(b) Qualified businesses must provide documentation demonstrating that each apprentice, preapprentice, or student intern employed during any of the taxable years 2022-2025 is enrolled in an educational institution as stated in paragraph (1)(e) or with a provider of related technical instruction and maintains a minimum grade point average of 2.0 on a 4.0 scale, if applicable.

(4) Application process.

(a) To apply for available program credits, a taxpayer must submit a Florida Experiential Learning Tax Credit Program – Application for Tax Credit (Form F-1198, incorporated by reference in Rule 12C-1.051, F.A.C.), along with documentation demonstrating that the business and apprentice, preapprentice, or student intern meet the criteria to receive tax credits, including a taxpayer’s Registered Apprenticeship Partners Information Data System program identification number, if applicable.

(b) Following receipt of an application, the Department will send written correspondence regarding the amount of tax credit approved or providing the reason the tax credit application could not be approved, whether in whole or in part. The taxpayer may protest a denial pursuant to Sections 120.569 and 120.57, F.S. The Department will reserve the denied amount of the allocation for the taxpayer during the protest period.

History

• Rulemaking Authority 213.06(1), 220.198(6) FS. Law Implemented 220.198 FS. History–New 1-1-23, Amended 1-1-24.

Fla. Admin. Code R. 12C-1.01991 Credit for Manufacturing of Human Breast Milk Derived Human Milk Fortifiers

(1) Definitions. For purpose of this rule, the following terms mean:

(a) “Credit” means the credit for manufacturing of human breast milk derived human milk fortifiers authorized under Section 220.1991, F.S.

(b) “Qualifying manufacturing equipment” means equipment for use in the production of human breast milk derived human milk fortifiers:

1. That can be sold as a product using a pasteurization or sterilization process; and

2. That is in compliance with all applicable United States Food and Drug Administration provisions.

(2) Available Credits. For taxable years beginning during the 2023 and 2024 calendar years, a credit is available against the tax imposed by Chapter 220, F.S., that is equal to 50 percent of the cost of qualifying manufacturing equipment purchased during the state fiscal year for which the application is submitted, or during the 6 months preceding such state fiscal year.

(a) These tax credits are available on a first-come, first-served basis.

(b) The Department must approve the tax credit before the taxpayer can take the credit on a return.

(c) A taxpayer who files a Florida consolidated return as a member of an affiliated group pursuant to Section 220.131(1), F.S., may be allowed the credit on a consolidated return basis.

(d) Taxpayers may carry forward any unused portion of the tax credit for up to five taxable years.

(3) Application process.

(a) To apply for available program credits, a taxpayer must submit a Florida Credit for Manufacturing of Human Breast Milk Derived Human Milk Fortifiers – Application for Tax Credit (Form F-11991, incorporated by reference in Rule 12C-1.051, F.A.C.), along with documentation demonstrating that the taxpayer purchased qualifying manufacturing equipment.

(b) Following receipt of an application, the Department will send written correspondence regarding the amount of tax credit approved or providing the reason the tax credit application could not be approved, whether in whole or in part. The taxpayer may protest a denial pursuant to Sections 120.569 and 120.57, F.S. The Department will reserve the denied amount of the allocation for the taxpayer during the protest period.

(4) Transfers of unused tax credits.

(a) A taxpayer may not convey, assign, or transfer a credit allocation or tax credit to another entity unless all of the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction. However, an unused credit or credit carryforward may be transferred between members of the same affiliated group of corporations.

(b) A transferred tax credit may only be taken by the receiving member of the affiliated group during the same period that the transferring member was approved to take the credit.

(c) A transferred carryforward amount may only be taken as a tax credit during the same time period as the transferring member was authorized to take the carryforward tax credit amount.

(d) A taxpayer must notify the Department of its intent to transfer a credit allocation or tax credit to another member of its affiliated group by submitting Florida Credit for Manufacturing of Human Breast Milk Derived Human Milk Fortifiers – Notice of Intent to Transfer a Tax Credit (Form F-11991T, incorporated by reference in Rule 12C-1.051, F.A.C.). A separate notice must be submitted for each member of an affiliated group of corporations receiving a transfer.

History

• Rulemaking Authority 213.06(1), 220.1991, FS. Law Implemented 220.1991 FS. History–New 1-1-24.

Fla. Admin. Code R. 12C-1.021 Record Keeping Requirements

(1) Every corporation subject to the Florida Corporate Income Tax Code will be required to keep such permanent books of account or records as will be sufficient to establish the tax base. Since the Florida tax base is federal taxable income (with certain Florida modifications), a record keeping system in compliance with Internal Revenue Service requirements for establishing the Florida tax base will be required. Supplemental data to support Florida modifications to federal taxable income and determination of the Florida apportionment fraction will also be needed. Such records shall be kept until the time within which the Department may make an assessment of the tax under Section 95.091(3), F.S.

(2) The required books and records must be available for inspection by the Department of Revenue as long as the contents are material. Generally, copies of returns, including records used in their preparation, should be retained.

(3) Taxpayers should also note that Section 220.23, F.S., requires that if the corporation’s related federal return is adjusted by amendment or otherwise and such adjustment will affect an item or items entering into the computations of such corporation’s net income subject to tax for any taxable year under the Florida Income Tax Code, the corporation is required to notify the Department of Revenue of such adjustment. Such notification may be made by filing an amended return or report within 60 days after such adjustment has been agreed to or finally determined for federal income tax purposes. In these circumstances, assessment of a deficiency or allowance of a refund is permitted without regard to the usual limitations contained in Section 95.091(3), F.S. Thus, the returns and records pertaining to years open to audit by the Internal Revenue Service should be retained until any resulting Florida adjustments have been resolved.

History

• Rulemaking Authority 213.06(1), 220.21(1), 220.51 FS. Law Implemented 220.21(1), 220.23, 213.35 FS. History–New 8-22-78, Formerly 12C-1.21, Amended 12-21-88.

Fla. Admin. Code R. 12C-1.0211 Penalty for Incomplete Return

(1) Section 220.211, F.S., imposes a penalty for filing an “incomplete return”. For tax returns due before January 1, 1993, this penalty is $150 or 5 percent of the tax finally determined to be due, whichever is greater, not to exceed $5,000. For tax returns due on or after January 1, 1993, this penalty is $300 or 10 percent of the tax finally determined to be due, whichever is the greater; however, such penalty shall not exceed $10,000.

(2) An “incomplete return” is a return which lacks uniformity, completeness, and arrangement such that the Department cannot readily accomplish the physical handling, verification, or review of the return. Such returns include, but are not limited to, those returns to which any one of the following conditions apply:

(a) Failure to complete an appropriate line item on page 1 of F-1120;

(b) Failure to provide an appropriate schedule for a line item on page 1 of F-1120;

(c) Failure to provide the required data on supporting schedules;

(d) Use of facsimile reports which are not in the same format as the F-1120;

(e) Failure to attach pages 1 through 4 of federal form 1120 or other specifically required federal form;

(f) Failure to attach any of the following when required:

1. Federal Forms 851 or 1122.

2. Federal Form 1120X or copy of a Revenue Agent’s Report (RAR).

3. Federal Form Schedule D.

4. Federal depreciation schedule on Form 4562.

5. Explanation for adjustments on Schedules M-1 and M-2.

6. Florida balance sheet if different from balance sheet on Federal return and schedule reconciling differences.

7. Any other required schedule or statement for explanation of an entry on a line item of the Florida corporate return, Form F-1120.

8. Failure to include the FEI number of the corporate entity.

9. Federal Form 4626.

10. Omission of any other material item.

History

• Rulemaking Authority 213.06(1), 220.21, 220.51 FS. Law Implemented 220.211 FS. History–New 12-21-88, Amended 4-8-92, 5-17-94.

Fla. Admin. Code R. 12C-1.022 Returns; Filing Requirement

(1) In general, every corporation as defined in Section 220.03(1)(e), F.S., subject to tax under Chapter 220, Part II, F.S., and every bank and savings association subject to tax under Chapter 220, Part VII, F.S., must make a return of income for each taxable year in which such entity either is liable for tax under the Florida Income Tax Code, or is required to make a federal income tax return, whether or not such taxpayer is liable for tax under the Florida Income Tax Code.

(a) The Florida Income Tax Code does not specifically provide for an exception from the filing requirements for any organization, association, or legal entity. Therefore, every corporation, as defined in Section 220.03(1)(e), F.S., and every bank or savings association, as defined in Section 220.62, F.S., will be required to file a return absent a specific provision within the Internal Revenue Code or the Treasury Regulations exempting the entity from filing a federal tax return or a letter of determination from the Internal Revenue Service providing that the entity does not have a federal filing requirement. It is the burden of a corporation that is existing in Florida or incorporated under the Laws of Florida to establish that it is not required to file a federal corporate income tax return and, therefore, does not have a Florida filing requirement. This section shall not be deemed to be an inclusive listing of the entities required to file a Florida corporate income/franchise tax return.

(b)1. “S” corporations are not subject to the tax, except for taxable years when they are liable for the federal tax under the Internal Revenue Code. An “S” corporation must file a Florida Corporate Income/Franchise and Emergency Excise Tax Return (Form F-1120, incorporated by reference in Rule 12C-1.051, F.A.C.) for taxable years when it is liable for federal tax under the Internal Revenue Code.

2. A single member limited liability company or qualified subchapter S corporation that is disregarded for Florida and Federal tax purposes is not required to file a separate Florida corporate income tax return. However, the income of the company is not exempt from tax. If it is owned by a corporation, whether directly or indirectly, the corporation is required to file Form F-1120 reporting its own income, together with the income of the single member limited liability company.

(c)1. Homeowners associations, including corporations or associations organized to operate condominiums pursuant to the Condominium Act, that are required to file federal returns on Form 1120, or that elect to file federal returns on Form 1120, must file a Florida Form F-1120 annually, regardless of whether any tax may be due.

2. Homeowners associations that elect to be taxed under s. 528, I.R.C., and file federal Form 1120-H, are not required to file Form F-1120 with the Department.

(d) Political organizations subject to Internal Revenue Code Section 527 who are required to file Federal Form 1120-POL must file a Florida Form F-1120 when the political organization reports federal taxable income on Federal Form 1120-POL or any other Federal Income Tax form.

(e) Any nonprofit or other tax-exempt organization, including a private foundation, which is exempt from Federal Income Tax under I.R.C. s. 501(a), and is described in I.R.C. s. 501(c), is required to file form F-1120 only when such organization has “unrelated trade or business taxable income,” as determined under I.R.C. s. 512, or is filing a Form 990T with the Internal Revenue Service. This filing requirement does not apply to a charitable trust. An organization that is required to apply for a “determination letter” to be exempt under I.R.C. s. 501(a), which has not timely filed such application on or before its due date as required by I.R.C. Reg. s. 1.508-1 or which has received an adverse determination, is not considered a tax-exempt organization. Such organization is subject to the Florida corporate income tax and is required to file form F-1120, unless the organization receives a retroactively effective determination letter. If an organization does not file Florida corporate income tax returns in reliance on this rule, and the Internal Revenue Service determines that the organization was not exempt from federal income tax for any such period, the organization is required to file form F-1120 or form F-1120X, Amended Florida Corporate Income/Franchise Tax Return (incorporated by reference in Rule 12C-1.051, F.A.C.), pursuant to Section 220.23, F.S.

(f)1. Insurance companies conducting business, deriving income, or existing within this state are required to file a Florida corporate income/franchise tax return.

2. Insurance companies whose only business activity within Florida is providing reinsurance are earning income within the state and, therefore, are required to file a Florida corporate income/franchise tax return.

(g) Credit unions without capital stock organized and operated for mutual purposes and without profit that are exempt under s. 501(c)(14), I.R.C., are not subject to the Florida tax, except for taxable years when they are liable for Federal tax under the Internal Revenue Code.

(h) Benefit plans qualifying under s. 401(a), I.R.C., and health and dental plans qualifying under s. 125, I.R.C., are only required for federal tax purposes to file information returns. A qualified pension, health, or dental plan that is totally exempt from Federal Income Tax will not be required to file Form F-1120 with the Department, as long as the plan remains totally exempt for Federal purposes.

(i)1. A real estate investment trust (REIT) must file a Florida income/franchise tax return for every year that it is conducting business, earning income, or existing within the state.

2. A totally owned subsidiary of a taxpayer which is treated as a qualified REIT subsidiary for federal tax purposes will be treated in the same manner for Florida tax purposes. That is, the qualified REIT subsidiary will not be treated as a separate corporation, and all assets, liabilities, and items of income, deductions, and credit of the qualified REIT subsidiary would be included in the taxpayer’s Florida income tax return. The qualified REIT subsidiary would not be required to file a separate return for the Florida corporate income tax.

(j) Entities that have elected to be treated as a U.S. real estate mortgage investment conduit (REMIC) for Federal purposes are not subject to the tax, except for taxable years when they are liable for the Federal tax on income from foreclosure property pursuant to s. 860G(c), I.R.C. Such entities are required to file Form F-1120 for taxable years when they are liable for Federal tax on income from foreclosure property pursuant to s. 860G(c), I.R.C.

(k) Any professional service corporation organized pursuant to Chapter 621, F.S., or any similar professional service corporation or professional association created as an artificial entity pursuant to the statutes of the United States or any other state, territory, possession, or jurisdiction is required to file a corporate income tax return for every year that it is conducting business, earning income, or existing within the state.

(2) Foreign (out-of-state) corporations.

(a) A corporate income tax return is required by every foreign (out-of-state) corporation that is conducting business, earning income, or existing within Florida. Cross reference: Rule 12C-1.011, F.A.C.

(b) A foreign (out-of-state) corporation is not relieved from filing a Florida corporate income/franchise tax return merely because it is not considered to be doing business within the definition of another state agency. For example, rules promulgated by the Florida Office of Insurance Regulation, Florida Secretary of State, or Florida Department of Financial Services will not affect the determination whether a corporation or bank or savings association is subject to the corporate income tax under Chapter 220, Part II, F.S., or the franchise tax under Chapter 220, Part VII, F.S.

(c) A requirement to file a Florida corporate income tax return is not automatically created when an out-of-state corporation registers with the Secretary of State to do business within the state. However, a foreign corporation that has registered to do business in the state must respond in writing to inquiries of the Department clearly explaining why a Florida filing is not required.

(d) The determination whether a foreign (out-of-state) corporation is required to file a Florida corporate income/franchise tax return is dependent only on the activities of the corporation during that tax year. However, there is a continuing expectation that a foreign corporation that was required to file in a previous year has a filing requirement in subsequent years. Therefore, a foreign corporation should file a return with a statement clearly explaining why there is not a continuing filing requirement. A foreign corporation must respond in writing to inquiries of the Department clearly explaining why a Florida filing is not required.

(e) Foreign (out-of-state) corporations not otherwise subject to Chapter 220, F.S., but who are partners or members of Florida partnerships or joint ventures, are subject to the Florida Income Tax Code by virtue of their membership in such partnerships or joint ventures and must file Form F-1120. A copy of the federal Schedule K-1 (Form 1065) should also be attached.

(3) Foreign (non-U.S.) corporations.

(a) Every foreign (non-U.S.) corporation subject to the Florida Income Tax Code must make a return of income for each taxable year such corporation is either liable for tax under the Florida Income Tax Code, or is required to make a federal income tax return, whether or not such taxpayer is liable for tax under the Florida Income Tax Code.

(b) Foreign corporations which are not considered under the Internal Revenue Code to have income effectively connected with a U.S. trade or business, but for which any tax is due under the provisions of s. 1442, I.R.C., will be required to file a Florida corporate income/franchise tax return.

(c) If a foreign corporation has been exempted by treaty from filing an F-1120, there will be no filing requirement for Florida income tax purposes. If a federal return is required to claim exempt status under the provision of a treaty, a corporation will be required to file a Florida return for each year it is required to file a federal return.

(d)1. Treasury Regulation 1.882-4(a)(3)(iv) provides that a foreign corporation may file a return for a taxable year and thereby protect the right to receive the benefit of the deductions and credits attributable to that gross income if it is later determined that the foreign corporation’s activities do create gross income effectively connected with the conduct of a trade or business within the United States. On that timely filed return, the corporation is not required to report any gross income as effectively connected with a United States trade or business or any deductions or credits, but should attach a statement indicating that the return is being filed under the provisions of Treas. Reg. 1.882-4(a)(3). Because this “protective return” is considered under the Treasury Regulations to be a true and accurate return which is required to be filed to protect possible benefits, it will be considered a required return for Florida tax purposes. Therefore, if a foreign corporation files a protective return under the provisions of Treas. Reg. 1.882-4(a)(3), it will be required to file a Florida corporate income tax return.

2. Because the corporation is not considered to have taxable income for federal purposes, it would not be considered to have taxable income for Florida purposes. Therefore, the Florida return would not reflect items of income, gain, deductions, losses, etc. The foreign corporation would be required to attach a copy of the federal return as filed, including the statement attached to the federal return indicating that the return is being filed under the provisions of Treas. Reg. 1.882-4(a)(3).

(4)(a) A taxpayer in existence during any portion of a taxable year and required to make a federal income tax return is required to make a Florida return. If a corporation was not in existence throughout an annual accounting period (either calendar year or fiscal year), the corporation is required to make a return for that fractional part of a year during which it was in existence.

(b) A corporation is not in existence after it ceases business and dissolves, retaining no assets, whether or not under state law it may thereafter be treated as continuing as a corporation for certain limited purposes connected with winding up its affairs, such as for the purpose of suing and being sued. If the corporation has valuable claims for which it will bring suit during this period, it has retained assets and therefore continues in existence. A corporation does not go out of existence if it is turned over to receivers or trustees who continue to operate it.

(c) A corporation subject to the Florida Income Tax Code which has received a charter but has never perfected its organization and has transacted no business and has no income from any source will be relieved from the necessity of making a Florida income tax return if it has been relieved from filing a federal income tax return pursuant to the Federal Income Tax Regulations. An application for waiver of the filing requirement should be submitted in writing in time to be received by the Department before the due date for filing the taxpayer’s Florida return.

(d) Once a Florida corporation has become active, a filing requirement will continue to exist until the corporation is dissolved. Inactivity of the business will not relieve the corporation from filing a return.

(e) A Florida corporation is required to file a Florida corporate income/franchise tax return even if it has no physical existence or activity in Florida and does business exclusively in other states or countries.

(5) The return required of a corporation subject to tax under Chapter 220, Part II, F.S., and the return required of a bank or savings association subject to tax under Chapter 220, Part VII, F.S., shall be made on Form F-1120. A copy of the related federal return filed with the Internal Revenue Service must be attached to Form F-1120. The instructions for Form F-1120 prescribe the attachments required to be submitted with the copy of the related federal return. The Florida corporate return requires computation of Florida net income using Federal taxable income, modified by adjustments, the Florida additions and subtractions, and apportioned to Florida using the Florida apportionment information. Taxpayers subject to federal alternative minimum tax (AMT) are also required to complete the Florida alternative minimum tax schedule.

(6)(a) Every Florida partnership having any partner subject to the Florida Income Tax Code is required to make an information return. A Florida partnership is a partnership, as defined in Section 220.03(1)(s), F.S., having income apportionable or allocated to Florida. A partner subject to the Florida Income Tax Code includes a taxpayer, as defined in Section 220.03(1)(z), F.S., and any corporation subject to the tax solely by virtue of its membership in a Florida partnership.

(b) The partnership will not be required to file a partnership return if the only partner subject to the Florida Income Tax Code is an S corporation.

(c) The following examples illustrate when a Florida partnership must file a partnership return.

1. Example: AB, a Florida partnership, has three partners, all of whom are individuals. AB is not required to file a Florida Partnership Information Return because it has no corporate partners.

2. Example: BC, a Florida partnership, has three partners, two individuals and one corporation, Corporation X. Corporation X is subject to the Florida Income Tax Code; therefore, BC is required to file a Florida Partnership Information Return.

3. Example: CD, a Florida partnership, has three partners, two individuals and one corporation, Corporation Y. Corporation Y is a New York corporation which does no business in Florida. However, CD is required to file a Florida Partnership Information Return because Corporation Y is subject to the Florida Income Tax Code solely by virtue of its membership in the Florida Partnership, CD.

4. Example: DE, a Florida Partnership, has three partners, two individuals and one corporation, Corporation Z. Corporation Z is an “S” Corporation. DE is not required to file a Florida Partnership Information Return.

(d) The return required of a partnership under this section shall be made on Form F-1065, Florida Partnership Information Return. A copy of the related U.S. Partnership Return of Income, Form 1065, must be attached. The instructions for Form F-1065 prescribe the attachments required to be submitted with the copy of the related federal Form 1065.

(e) Form F-1065 is used to determine the Florida partnership income adjustment; to report the names and addresses of all partners subject to tax under Chapter 220, F.S., who are entitled to share in the net income of the partnership; and to distribute to each partner subject to the tax its share of the Florida partnership income adjustment and its share of the apportionment factors of the partnership or joint venture.

(f)1. The corporate taxpayer-partner filing Form F-1120, Florida Corporation Income Tax Return, may use Form F-1065 to report its distributive share of any partnership income adjustments and its share of the apportionment factors of a partnership or joint venture which is not a Florida partnership.

2. Example: Corporation W is subject to the Florida Income Tax Code and is also a partner in partnership UVW, an Ohio partnership, that does no business in Florida and is not required to file a Florida Partnership Information Return. However, Corporation W may use Form F-1065, Florida Partnership Information Return, to report its share of the partnership income adjustments and the partnership apportionment factors for partnership UVW.

(g) Corporations who are members of a Florida partnership or joint venture must file Form F-1065, Florida Partnership Information Return, as well as, Form F-1120.

History

• Rulemaking Authority 213.06(1), 220.21, 220.22(4), 220.51 FS. Law Implemented 220.03, 220.22, 605.1103 FS. History–New 10-20-72, Amended 10-20-73, 10-8-74, 3-5-80, Formerly 12C-1.22, Amended 12-21-88, 4-8-92, 12-7-92, 3-18-96, 10-2-01, 6-19-03, 8-4-05, 1-1-26.

Fla. Admin. Code R. 12C-1.0221 Returns, Notices, and Elections; Signing and Verification

(1) A return, election, or notice required of a taxpayer shall be signed by an officer duly authorized to sign. A return or notice required of a taxpayer made by a fiduciary under Section 220.22(3), F.S., shall be signed by the fiduciary. An officer’s or fiduciary’s signature on a return or notice made by or for a taxpayer shall be prima facie evidence that such individual was authorized to sign the return or notice on behalf of the taxpayer.

(a) Florida corporate income/franchise and emergency excise tax returns (Form F-1120), amended returns (Form F-1120X), or notices shall be signed by the president, vice-president, treasurer, assistant treasurer, chief accounting officer, or any other officer duly authorized to sign such returns or notices.

(b) Consolidated returns (Form F-1120) and affiliations schedules (Form F-851) shall be signed by the president, vice-president, treasurer, assistant treasurer, chief accounting officer, or any other officer of the common parent authorized to sign. Each authorization and consent of subsidiary corporation to be included in a consolidated return (Form F-1122) shall be signed by an officer duly authorized by the subsidiary to sign.

(c) Form F-7004 shall be signed by a person authorized by the taxpayer to request such extension. Such person must be an individual authorized under paragraph (a) or (b) to sign the taxpayer’s return; a person currently enrolled as an agent under Treasury Department Circular Number 230 (Rev. 8-2011, herein incorporated by reference, Effective 01/13) (http://www.flrules.org/Gateway/reference.asp?No=Ref-02113) to practice before the Internal Revenue Service; an attorney who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia; or any certified public accountant who is duly qualified to practice in any state, possession, territory, commonwealth, or the District of Columbia.

(d) A fiduciary includes a receiver, trustee in dissolution, trustee in bankruptcy, or assignee, who, by order of a court of competent jurisdiction, by operation of law or otherwise, has possession of or holds title to all or substantially all of the property or business of a corporation.

(e) Notices include, but are not limited to, waivers of restrictions on assessment and collection of proposed assessments under Section 220.715, F.S., consents to extend the statutory period under Section 213.23, F.S., and notifications of federal adjustments under Section 220.23(2), F.S.

(2) A Florida partnership information return (Form F-1065) or notice required of a partnership shall be signed by any one of the general partners, and the fact that a partner has signed a return or notice shall be prima facie evidence that such partner was authorized to sign such document on behalf of the partnership. A Florida partnership return or notice made by a receiver, trustee in bankruptcy, or assignee shall be signed by such fiduciary. A Form F-7004, application for extension of time to file a Florida partnership return, shall be signed by a person authorized to make such application. Such person shall include a general partner; a person currently enrolled as an agent under Treasury Department Circular Number 230 to practice before the Internal Revenue Service; an attorney who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or the District of Columbia; or any certified public accountant who is duly qualified to practice in any state, possession, territory, commonwealth, or the District of Columbia.

(3) Each return or notice required to be filed under this code shall be verified by a written declaration that is made under the penalties of perjury. A return prepared for the taxpayer by another person shall contain a declaration by the preparer that it was prepared on the basis of all information of which the preparer has knowledge.

(a) Florida corporate income tax returns (Form F-1120), amended returns (Form F-1120X), and partnership information returns (Form F-1065) shall contain a declaration, under the penalties of perjury, that the officer, partner, or fiduciary signing the return has examined the return, including accompanying schedules and statements, and declares that to the best of his or her knowledge and belief the return is true, correct, and complete. If such returns are prepared by a person other than the taxpayer, the preparer shall declare, under penalties of perjury, that the return, accompanying schedules, and statements are true, correct, and complete to the best of his or her knowledge and belief based on all of the information of which he or she has any knowledge.

(b) Affiliations schedules (Form F-851) shall contain a declaration, under the penalties of perjury, that the officer or fiduciary signing the schedule has examined the information and statements contained therein and declares to the best of his or her knowledge and belief that the schedule is true and correct.

(c) Florida tentative income tax return and application for extension of time to file income tax return (Form F-7004) and authorization and consent of subsidiary corporation to be included in a consolidated return (Form F-1122) shall contain a declaration, under the penalties of perjury, that the person signing such form has been authorized to sign the form and that the information and statements therein are true and correct to the best of his or her knowledge and belief.

(4)(a) An electronically filed return or notice shall be deemed to be signed when the individual who is authorized to sign under subsection (1) includes his or her name in the filed electronic return data identified as signature information.

(b) When the individual who is authorized to sign includes his or her name in the filed electronic return data identified as signature information, it will also be deemed to serve as the written declaration made under penalties of perjury in accordance with subsection (3).

(5) Tax Return Preparers Other Than the Taxpayer.

(a) If an electronically filed return is prepared by a person other than the taxpayer, the declaration of the preparer that such return or notice was prepared on the basis of all information of which he or she has any knowledge shall be deemed to be signed when the preparer includes his or her name in the completed electronic return data identified as preparer information.

(b) When the preparer includes his or her name in the completed electronic return data identified as preparer information, it will also be deemed to serve as the written declaration made under penalties of perjury in accordance with subsection (3).

(c) The requirements of Internal Revenue Notice 2004-54, Alternative Methods of Signing for Income Tax Return Preparers (August 16, 2004, herein incorporated by reference), will be followed regarding the signature of a tax return preparer (other than the taxpayer) for returns submitted electronically to a taxpayer and filed with the Department by the taxpayer.

(d) All filed returns, including electronically-filed returns, prepared by a person other than the taxpayer, must include all information that is required on the return for paid preparers, including the firm name of the preparer (or individual name for a self-employed preparer) and address, and the preparer’s tax identification number and federal employer identification number.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 213.755, 220.221, 220.23(2)(a) FS. History–New 3-5-80, Amended 12-18-83, Formerly 12C-1.221, Amended 12-21-88, 4-8-92, 1-28-08, 4-26-10, 1-17-13.

Fla. Admin. Code R. 12C-1.0222 Returns; Extensions of Time; Payments of Tentative Tax

(1) Returns.

(a) A return submitted to the Department by electronic means, as provided in rule Chapter 12-24, F.A.C., is considered to be timely filed if the submission of the electronic return is initiated, and a confirmation from the Department is received, before 5:00 p.m. (Eastern Time), on or before the due date (including any extensions) prescribed by law. Taxpayers who meet the requirements of subsection (4) of Rule 12-24.003, F.A.C., must submit returns by electronic means. A hard-copy (paper) return is considered to be timely filed if postmarked on or before the due date (including any extensions) prescribed by law. If the due date falls on a Saturday, Sunday, or legal holiday, a return will be considered timely if a confirmation for an electronic return is received by the Department on or before 5:00 p.m. (Eastern Time), or a hard-copy (paper) return is postmarked, on the next succeeding day that is not a Saturday, Sunday, or legal holiday. For this purpose, a legal holiday will mean a holiday that is observed by federal or state agencies as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended.

(b)1. Example: Corporation A’s Florida corporate return was due Thursday, November 1. The envelope in which the return was mailed was postmarked November 1; therefore, the return is considered to have been filed on time.

2. Example: Corporation B’s Florida corporate return was due Saturday, September 1. Monday, September 3, was Labor Day. The envelope in which the return was mailed was postmarked Tuesday, September 4. The return is considered timely filed because it was postmarked the next succeeding day which was not a Saturday, Sunday, or legal holiday.

(2) Requests for Extensions of Time to File Return.

(a)1. For taxable year ends other than June 30, an extension will be effective until six (6) months after the original due date of the return. For taxpayers with a taxable year ending June 30, an extension will be effective until seven (7) months after the original due date of the return.

2. An extension of the due date of any required Florida partnership information return will be effective until six (6) months after the original due date of the return.

3. If an automatic extension is not permitted because a federal extension has not been requested or is not allowed, the application for extension of time to file a return must contain sufficient facts to establish good cause why the return cannot be filed on or before the original due date. An extension of time for filing a return does not operate as an extension of time for payment of the tax or any part thereof.

(b) A corporation or a partnership that has been granted an automatic extension of time for filing its federal income tax return or its federal partnership return by the Internal Revenue Service, or that establishes good cause, will be granted an extension of time to file its Florida corporate income/franchise tax return or its Florida partnership information return when the following requirements are met:

1. Form F-7004, Florida Tentative Income/Franchise Tax Return and Application for Extension of Time to File Return (incorporated by reference in Rule 12C-1.051, F.A.C.), signed by a person duly authorized by the taxpayer to sign a request for extension, is filed with the Department on or before the due date prescribed for filing the return. See Rule 12C-1.0221, F.A.C., for persons authorized to request an extension of time to file. For affiliated groups, the parent company qualified to file a Florida consolidated income tax return must file Form F-7004. An extension granted to the parent company of an affiliated group applies to the parent company’s consolidated return. If any corporate partner requires an extension of time to file its separate Florida corporate income/franchise tax return, a separate Form F-7004 must be filed by the corporate partner with the Department.

2. The amount estimated to be the balance of its proper tax due for the taxable year after giving effect to payments and credits on its declaration of estimated income tax is paid to the Department.

(3) Extended Return Due Dates.

(a) Upon the timely filing of Form F-7004, properly prepared and including payment of any tax determined to be due, an extension will be allowed.

(b) The aggregate amount of time of extensions for a return cannot exceed six (6) months, unless the exception specified in paragraph (2)(a), of this rule, applies. No further extensions are allowed.

1. For a corporation whose taxable year ends December 31, a required Florida corporate income/franchise tax return is due May 1 of the following year. When the requirements of this rule are met, and the corporation is granted an extension of time to file its Florida corporate income/franchise tax return, the extended due date for the Florida return is November 1.

2. A partnership whose taxable year ends on December 31, will be granted an extension of time from April 1 to October 1 to file its Florida partnership information return when all the requirements for an extension of the due date of a return provided in this rule are met.

(c)1. Failure to make payment with an application when one is required will void the request for extension of time to file. The taxpayer will be subject to the penalty provided in Section 220.801, F.S., for failure to file a timely return. Interest will be assessed on any tax due from the due date of the return to the date of payment.

2. An extension of time will be invalidated when the:

a. Tentative tax due is not paid with the application for extension (Form F-7004); or,

b. The tax is underpaid by the greater of $2,000 or thirty percent (30%) of the tax due on the return when filed.

History

• Rulemaking Authority 213.06(1), 220.32(2), 220.51 FS. Law Implemented 220.222, 220.32 FS. History–New 10-20-73, Amended 10-8-74, 4-21-75, 3-5-80, 12-18-83, Formerly 12C-1.222, Amended 12-21-88, 12-19-89, 4-8-92, 3-18-96, 3-13-00, 3-15-04, 9-1-09, 1-10-17, 1-17-18.

Fla. Admin. Code R. 12C-1.023 Federal Returns

(1) If a Federal amended return is filed or other redetermination of Federal income is made (for example, through an audit adjustment), and the adjustment would affect any item or items affecting net income subject to the Florida corporate income/franchise tax or the emergency excise tax, the taxpayer must notify the Department.

(2)(a) The notification required by Section 220.23, F.S., and subsection (1) of this rule must be in the form of a Florida amended return form (F-1120X) or a corporate income/franchise and emergency excise tax return marked “Amended” across the top of the return.

(b) A copy of the amended Federal return or other adjustment (for example, an RAR) must be attached to the amended return.

(3) No amended return is required when the only change to the federal return is to give effect to a carryback of a net operating loss or capital loss.

(4) No amended return is required for a tax year for which the only effect of a change is to increase or reduce a net operating loss. However, if the reduction or addition to a net operating loss effects a change in the deduction for a net operating loss carryover for a subsequent taxable year for which a return has already been filed, an amended return will be required for the subsequent tax year(s) in which there is a tax effect.

(5)(a) The required amended return must be filed not later than 60 days after such adjustment has been agreed to or finally determined for Federal tax purposes, or after any Federal income tax deficiency or refund, abatement, or credit resulting therefrom has been assessed, paid, or collected, whichever shall occur first.

(b) There are no provisions to extend the due date for the required amended return.

(c) Amounts paid solely for the purpose of satisfying a jurisdictional requirement for contesting an assessment in court will not be deemed to have been “paid” for purposes of this subsection.

(d) When some Federal audit adjustments are agreed to and some are contested, the taxpayer must file an amended return reflecting the changes for which there is agreement within 60 days from that agreement or from when the additional tax is paid. Additional amended returns for the items in dispute will be required if the taxpayer subsequently agrees to the changes or the assessment of those items becomes final.

(6) If the amended return concedes the accuracy of a Federal change or correction, any deficiency in Florida corporate income, franchise, or emergency excise tax is deemed assessed on the date of filing the amended return. No penalty will be assessed if the amended return is filed not later than 60 days after the date notification is required by Section 220.23(2)(a)3., F.S., and subsection (5) of this rule. However, interest will be due on any deficiency from the original due date of the return through the date of payment.

(7) If a required amended return is filed later than 60 days after the date specified in paragraph (5)(a) of this rule, the taxpayer will be subject to the failure to file penalty, pursuant to Section 220.801, F.S., regardless of whether additional tax is due. Interest will be due on any deficiency from the original date of the return through the date of payment.

(8) A claim for refund may be filed within 2 years after the date an amended return was due, regardless of whether the amended return was filed timely. However, the amount recoverable pursuant to this claim is limited to the amount of any overpayment resulting from recomputation for the taxable year after giving effect only to the item or items reflected in the adjustment required to be reported.

(9) In any case where an amended return is required, then notwithstanding the limitations contained in Section 95.091(3), F.S.:

(a) A notice of deficiency may be issued at any time within 5 years after the date the amended return is filed; or

(b) If the taxpayer fails to file an amended return, a notice of deficiency may be issued at any time.

(c) In either case, the amount of any proposed assessment shall be limited to the amount of any deficiency resulting from the recomputation of the taxpayer’s income for the taxable year after giving effect only to the item or items reflected in the adjustment.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.23, 220.801, 220.809 FS. History–New 5-17-94.

Fla. Admin. Code R. 12C-1.024 Declaration of Estimated Tax

History

• Rulemaking Authority 213.06, 220.51 FS. Law Implemented 220.24 FS. History–New 10-20-73, Amended 12-18-83, Formerly 12C-1.24, Amended 12-21-88, 4-8-92, Repealed 5-17-94.

Fla. Admin. Code R. 12C-1.032 Payments of Tentative Tax

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.32 FS. History–New 10-20-72, Formerly 12C-1.32, Amended 12-21-88, Repealed 9-1-09.

Fla. Admin. Code R. 12C-1.033 Payments of Estimed Tax

History

• Rulemaking Authority 220.51 FS. Law Implemented 220.33 FS. History–New 10-20-73, Formerly 12C-1.33, Amended 12-21-88, Repealed 5-17-94.

Fla. Admin. Code R. 12C-1.034 Special Rules Relating to Estimated Tax

(1) Definition.

(a) Section 220.24(1), F.S., defines “estimated tax” as the amount which the taxpayer estimates to be the Florida corporate income/franchise tax due for the taxable year.

(b) “Estimated tax,” for the purposes of this rule, is the estimate of net corporate income/franchise tax due after credits.

(c) Estimated tax payments are prepayments of tax and are not tax paid, since Section 220.34(1), F.S., provides that amounts paid as estimated tax are deemed assessed on the taxpayer’s original due date for filing the corporate income/franchise tax return.

(2)(a) Except for taxpayers with a June 30 taxable year end, a declaration of estimated tax must be filed before the first day of the sixth month of the taxable year, if the taxpayer can reasonably expect before the first day of the fourth month to owe more than $2,500 in tax for the taxable year.

(b) Taxpayers with a June 30 taxable year end must file a declaration of estimated tax before the first day of the fifth month of the taxable year, if the taxpayer can reasonably expect before the first day of the fourth month to owe more than $2,500 in tax for the taxable year.

(c) Installment due dates that fall on a Saturday, Sunday, or legal holiday extend to the next business day, with the exception of installments due on the last day of June, which must be paid on or before the last Friday of June.

(d) For a list of deadlines for initiating electronic payments on time, visit floridarevenue.com/forms, select the eServices, and then select the current year Florida eServices Calendar of Electronic Payment Deadlines (Form DR-659).

(3) Reasonably Expect.

(a)1. The phrase “reasonably expect” implies a forecast of tax owed. The estimated tax is based upon the amount of Florida net income which the taxpayer can reasonably expect to receive or accrue, based on the facts and circumstances existing at the time prescribed for filing the declaration, as well as those reasonably anticipated for the taxable year.

2. The phrase “reasonably expect” does not imply that a taxpayer can wait until more than $2,500 of tax is actually due on income already earned.

3. A business is required to make a declaration of estimated tax by the date specified in subsection (2), even though income may not actually be earned until later in the taxable year. For example, a seasonal business that can reasonably expect before the first day of the fourth month to owe more than $2,500.00 for the taxable year will be required to make a declaration of estimated tax before the first day of the sixth month of the taxable year (before the first day of the fifth month of the taxable year for a taxpayer with a June 30 taxable year end). Therefore, a Christmas shop with a taxable year ending January 31, 2018, will be expected to make a declaration before July 1, 2017 (the first day of the sixth month following the end of the taxable year) if the corporation reasonably expects to owe more than $2,500.00 in tax for the tax year. It does not matter whether the corporation is making sales by that date or not.

(b) In determining whether a corporation that existed for a full 12 months during the prior year can reasonably expect to owe more than $2,500.00 in tax, the Department will consider the taxpayer’s past payment history and circumstances.

(c) If the tax due for the corporation’s prior taxable year exceeded $2,500.00, there is a presumption that the taxpayer can reasonably expect to owe more than $2,500 in the current taxable year.

(d) In considering a factual determination of a specific taxpayer, the Department will consider the following factors:

1. General economic conditions;

2. Economic conditions of a specific industry;

3. Cause and timing of taxable income.

(e) There is no first year exception from filing the declaration by the date specified in subsection (2), and making payments of estimated tax in accordance with the time limitations set by Section 220.33(1), F.S.

(4) The Department of Revenue combines the declaration of estimated tax and the payment of the first installment into the Declaration/Installment of Florida Estimated Income/Franchise Tax (Form F-1120ES, incorporated by reference in Rule 12C-1.051, F.A.C.).

(5)(a) When the due date of the declaration of estimated tax is before the first day of the sixth month (before the first day of the fifth month for taxpayers with a June 30 taxable year end), there must be four equal installments.

(b) Estimated tax payments are then due before the first day of the sixth month (before the first day of the fifth month for taxpayers with a June 30 taxable year end), before the first day of the seventh month, before the first day of the tenth month, and before the first day of the next taxable year. For calendar year taxpayers, estimated tax payments are due May 31, June 30, September 30, and December 31.

(6) There are no provisions for annualization. Section 220.33, F.S., requires equal installments based on the due date of the declaration.

(7) Amended declarations. A declaration of estimated tax is based upon a reasonable projection of tax liability. A declaration must be adjusted when the taxpayer determines that circumstances have developed that materially change the amount of estimated tax reported in the declaration. The remaining estimated tax payments must be increased or decreased to reflect the adjusted projected income.

(8) Overpayments of Estimated Tax.

(a)1. A taxpayer must make an irrevocable election on its annual Florida corporate income/franchise tax return to designate an overpayment as an estimated tax payment for the subsequent taxable year or an amount to be refunded.

2. The decision to apply an overpayment to the subsequent year’s estimated tax payments may not be changed to request a refund.

3.a. If a taxpayer files an amended return for a tax year that reports an overpayment of tax, the taxpayer may elect to use the overpayment as a credit against estimated tax for a subsequent taxable year or may request a refund of the overpayment. The overpayment of tax may not be credited against estimated tax payments for a closed taxable year.

b. Example: A calendar year taxpayer in 2018 amends the 2015 Florida corporate income/franchise tax return pursuant to a federal adjustment that impacted Florida taxable income. The result of the amendment is that the taxpayer has overpaid the tax due for 2015. The overpayment may be refunded or credited to the 2018 estimated tax payments. The overpayment may not be credited to estimated tax payments for the 2016 or 2017 taxable year.

(b) In the case of an overpayment for a taxable year for which a Florida corporate income/franchise tax return has been filed, the properly executed return constitutes a claim for refund or credit.

(c)1. If a taxpayer requests that an overpayment be applied to estimated tax for the succeeding tax year, the application will be to the first estimated tax payment of the next tax year, even if the return is filed after the due date for the first payment.

2. Example: A calendar year taxpayer requested an extension of the filing date for the 2016 Florida corporate income/franchise tax return from May 1, 2017, until November 1, 2017. The first payment of estimated tax for the succeeding tax year is due May 31, 2017. The 2016 return is filed on September 29, 2017. If the taxpayer requested that the overpayment of estimated tax be applied to the next tax year, the overpayment is applied effective May 31, 2017.

(d) The Department will not pay interest on an overpayment that a taxpayer has elected to apply as an estimated payment to a subsequent taxable year.

(e) There are no provisions within the Florida Statutes for a “quick refund” if the estimated tax is overpaid. A taxpayer may not claim a refund of estimated tax paid until the Florida corporate income/franchise tax return is filed for that tax year.

(9) Underpayment of estimated tax.

(a) Definition. The amount of the underpayment for any installment date is the excess of:

1. The amount of the installment which would be required to be paid if the estimated tax were equal to 90 percent of the tax shown on the return for the taxable year or, if no return was filed, 90 percent of the tax for such year, over

2. The amount, if any, of the installment paid on or before the last day prescribed for payment.

(b)1. No penalty or interest will be imposed for any underpayment of any installment of estimated tax if, on or before the date prescribed for payment of the installment, the total amount of all payments of estimated tax made equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were the lesser of the following amounts:

a. An amount equal to a tax computed at the rates applicable to the taxable year but otherwise on the basis of the facts shown on the return for the preceding taxable year and the law applicable to the preceding year, provided that the preceding taxable year was a year of 12 months and a return was filed for such year; or,

b. An amount equal to 90 percent of the tax finally due for the taxable year.

c.(I) A contribution to an eligible nonprofit scholarship-funding organization (SFO) for a corporate income tax credit pursuant to Section 220.1875, F.S., reduces the amount required to meet the prior year exception referenced in sub-subparagraph a. For taxable years beginning before January 1, 2018, the specific prior year exception amount reduced by a contribution to an SFO is determined by the date of contribution on the certificate of contribution issued by the SFO. For taxable years beginning on or after January 1, 2018, a taxpayer may, after earning a tax credit under Section 220.1875, F.S., reduce any estimated payment in that taxable year by the amount of the credit. Cross reference: rule Chapter 12-29, F.A.C.

(II) Example: A calendar year taxpayer remitted four estimated payments of $16,000 each on May 31, 2017; June 30, 2017; September 30, 2017; and December 31, 2017. The taxpayer also made a $15,000 contribution to an SFO and was issued a certificate of contribution on June 20, 2017, which generated a tax credit for the taxpayer. For the prior tax year ending December 31, 2016, corporate income tax of $80,000 was due. Taxpayer’s prior year exception computation is as follows:

Due dates of installments

(1st)

5/31/2017

(2nd)

6/30/2017

(3rd)

9/30/2017

(4th)

12/31/2017

Current year: Total cumulative amount paid (or credited) from the beginning of the taxable year through the installment date indicated

16,000.00

32,000.00

48,000.00

64,000.00

(a) Prior year exception: Tax on prior year’s income using current year’s rates

25% of tax

20,000.00

50% of tax

40,000.00

75% of tax

60,000.00

100% of tax

80,000.00

(b) Cumulative donations made to SFOs from the beginning of the taxable year through the installment date indicated. Certificate of contribution must be issued on or before installment due date.

0.00

0.00

15,000.00

15,000.00

(c) The prior year exception adjusted for the credit for contributions to SFOs per Section 1002.395(5)(g), F.S., equals (a) less (b)

20,000.00

40,000.00

45,000.00

65,000.00

Installment meets prior year exception? To answer Yes, Current year must equal or exceed Prior year (c).

No

No

Yes

No

Taxpayer has met the prior year exception for the third installment through a combination of estimated payments and SFO credit so that estimated tax penalty and interest will not apply for the third installment.

(III) Example: A calendar year taxpayer remitted four estimated payments of $10,000 each on May 31, 2017; June 30, 2017; September 30, 2017; and December 31, 2017. The taxpayer also made four $10,000 contributions to an SFO and was issued certificates of contribution on May 31, 2017; June 30, 2017; September 30, 2017; and December 31, 2017. For the prior tax year ending December 31, 2016, corporate income tax of $80,000 was due. Taxpayer’s prior year exception computation is as follows:

Due dates of installments

(1st)

5/31/2017

(2nd)

6/30/2017

(3rd)

9/30/2017

(4th)

12/31/2017

Current year: Total cumulative amount paid (or credited) from the beginning of the taxable year through the installment date indicated

10,000.00

20,000.00

30,000.00

40,000.00

(a) Prior year exception: Tax on prior year’s income using current year’s rates

25% of tax

20,000.00

50% of tax

40,000.00

75% of tax

60,000.00

100% of tax

80,000.00

(b) Cumulative donations made to SFOs from the beginning of the taxable year through the installment date indicated. Certificate of contribution must be issued on or before installment due date.

10,000.00

20,000.00

30,000.00

40,000.00

(c) The prior year exception adjusted for the credit for contributions to SFOs per Section 1002.395(5)(g), F.S., equals (a) less (b)

10,000.00

20,000.00

30,000.00

40,000.00

Installment meets prior year exception? To answer Yes, Current year must equal or exceed Prior year (c).

Yes

Yes

Yes

Yes

Taxpayer has met the prior year exception for all four installments through a combination of estimated payments and SFO credit so that estimated tax penalty and interest will not apply to any of the four installments.

(IV) Example: A calendar year taxpayer remitted four estimated payments of $18,000 each on May 31, 2018; June 29, 2018; October 1, 2018; and December 31, 2018. The taxpayer also made a $17,000 contribution to an SFO and was issued a certificate of contribution on June 20, 2018, which generated a tax credit for the taxpayer. For the prior tax year ending December 31, 2017, corporate income tax of $90,000 was due. Taxpayer’s prior year exception computation is as follows:

Due dates of installments

(1st)

5/31/2018

(2nd)

6/29/2018

(3rd)

10/1/2018

(4th)

12/31/2018

Current year: Total cumulative amount paid (or credited) from the beginning of the taxable year through the installment date indicated

18,000.00

36,000.00

54,000.00

72,000.00

(a) Prior year exception: Tax on prior year’s income using current year’s rates

25% of tax

22,500.00

50% of tax

45,000.00

75% of tax

67,500.00

100% of tax

90,000.00

(b) Cumulative donations timely made to SFOs for the taxable year. Certificate of contribution must be issued for the taxable year.

17,000.00

17,000.00

17,000.00

17,000.00

(c) The prior year exception adjusted for the credit for contributions to SFOs per Section 1002.395(5)(g), F.S., equals (a) less (b)

5,500.00

28,000.00

50,500.00

73,000.00

Installment meets prior year exception? To answer Yes, Current year must equal or exceed Prior year (c).

Yes

Yes

Yes

No

Taxpayer has met the prior year exception for the first three installments through a combination of estimated payments and SFO credit so that estimated tax penalty and interest will not apply for the first, second, or third installment.

2.a. A taxpayer may not use the prior year exception if the previous tax year was for a short tax year (not a full 12 months), except where the short periods are due to a change in accounting period.

b.(I) The taxpayer may not use a total of the tax liability for 2 or more short periods to qualify for a prior year exception, except where the short periods are due to a change in accounting period. The prior year exception is denied even where there is continuity of business. If a short period return is required for federal and Florida purposes, the taxpayer is denied the use of the prior year exception for the subsequent tax year.

(II) Example: Corporation C was part of affiliated group ABC, which filed a federal consolidated income tax return for the 2016 and 2017 tax years. For Florida corporate income/franchise tax purposes, Corporation C has always filed a separate return. On June 1, 2017, the stock of Corporation C was bought by Corporation X. Corporation C has two taxable years for 2017 for federal income tax purposes, and, therefore, for Florida corporate income/franchise tax purposes even though it has always filed a separate Florida corporate income/franchise tax return. For the first taxable year within 2017 (January 1 through May 31, 2017), Corporation C may base estimated tax payments on a prior year exception (January 1, 2016, through December 31, 2016). Corporation C may not use the prior year exception for the second taxable year within 2017 (June 1, 2017, through December 31, 2017). Furthermore, Corporation C cannot use a prior year exception for the 2018 tax year.

3. See subsection (12) of this rule concerning special rules for estimated tax payments required in short years.

(c) Whether a taxpayer has met the requirements to not be penalized for underpayment of estimated tax is evaluated for each installment; there are no provisions for annualization.

(d)1. The term “tax” means the tax imposed by Chapter 220, F.S., minus amounts properly credited against such tax for the taxable year. Payments of estimated tax and payments of tentative tax are not “amounts properly credited.”

2. For taxpayers subject to tax under Chapter 220, Part II, F.S., “tax” means the tax imposed by Section 220.11, F.S., minus the allowable credits in the order specified in Section 220.02(8), F.S. For banks and savings associations subject to the franchise tax under Chapter 220, Part VII, F.S., “tax” means the tax imposed by Section 220.63, F.S., minus the allowable credits in the order specified in Section 220.02(8), F.S.

3. The computations under paragraphs (a) and (b) of this subsection are based on the return as filed, except where the amount finally determined to be due is less than the amount shown on the return. If no return was filed, the computation is based on the appropriate tax liability and credit allowable under Chapter 220, F.S.

4. Example: Taxpayer A, who is subject to tax under Part II of Chapter 220, F.S., filed Form F-1120. The return shows “Total Income/Franchise Tax Due” of $5,000, “Estimated Tax Payments” of $500, and a “Total amount due or overpayment” of $4,500. For the purposes of paragraphs (a) and (b) of this subsection, the “tax” shown on the return or finally due for such year is the “Total Income/Franchise Tax Due” on the return or $5,000. The estimated tax payments are not amounts properly credited against “tax” for this purpose.

(e) No estimated tax penalty is due when the taxpayer filed a return for the preceding year showing a tax liability in an amount of $2,500 or less.

(f) If a corporation merges with another corporation, the “prior year exception” is based on the prior year’s return of the surviving corporation.

(g) Period of underpayment.

1. For taxpayers with a June 30 taxable year end, the computation of interest and penalty for underpayment of any installment of estimated tax begins on the day following the date such installment is required to be paid and ends on the first day of the fourth month following the close of the taxable year, or the date such underpayment is paid, whichever is earlier. For all other taxpayers, the computation of interest and penalty for underpayment of any installment of estimated tax ends on the first day of the fifth month following the close of the taxable year, or the date such underpayment is paid, whichever is earlier.

2.a. For purposes of determining the period of the underpayment, the date prescribed for the payment of any installment shall be determined without regard to any extensions of time. A payment of estimated tax on any installment date, to the extent that it exceeds the amount of the installment determined under subparagraph (b)1. of this subsection for such date, shall be considered a payment of the previous underpayment, if any. If no previous underpayment exists, this amount will be applied as a payment toward the next installment.

b.(I) If a payment is made between installment dates, it will be applied to the earliest installment due, to the extent of any deficiency in payments. However, penalty and interest will apply from the original due date of the installment until the date paid.

(II) Example: A calendar year taxpayer made payments on May 31, July 25, September 30, and December 31. The July 25 payment was due June 30. Therefore, interest and penalty will apply for the period July 1 through July 25.

(III) The prior year exception to penalty only applies to requirements for timely made payments. If payments are not timely, the estimated penalty will be calculated based on the minimum installment due for 90 percent of the tax.

(h) A corporation will not be disqualified from using the prior year exception merely because it did not meet the exception for a prior installment period. Each installment will be evaluated to determine whether the installment is underpaid per Section 220.34(2)(b), F.S., and whether the corporation is excepted from penalty under the provisions of the prior year exception.

(i) The taxpayer is liable for interest at the rate determined under Section 220.807, F.S., upon the amount of any underpayment of estimated tax. The taxpayer is also liable, per Section 220.34(2)(a), F.S., for penalty at the rate of 12 percent per annum upon the amount of any underpayment of estimated tax.

(10) Controlled/Affiliated groups. Consolidated return not filed in prior year.

(a) The manner in which the members of a controlled group of corporations (as defined in s. 1563, I.R.C.), allocate the exemption allowed under Section 220.14, F.S., among members for purposes of filing the annual Florida corporate income/franchise tax return is binding upon all the members with respect to the estimated tax, including whether a declaration is required and the computation of penalties and interest on underpayments.

(b)1. If an affiliated group is not required to file a consolidated declaration of estimated tax for a taxable year because the parent corporation has not elected to file a Florida consolidated tax return pursuant to Section 220.131, F.S., then each member shall be treated as a separate taxpayer for purposes of Sections 220.24 and 220.33, F.S. That is, each member of the affiliated group will be required to file separate declarations of estimated tax and make separate payments of estimated tax.

2. If the members of a group are treated as separate taxpayers for the taxable year under subparagraph (b)1., then each member is entitled to a separate $2,500 estimated tax threshold for purposes of determining requirements for making a declaration of estimated tax under Section 220.24(1), F.S., for such year.

(c)1. If an affiliated group files a Florida consolidated tax return for the taxable year, the amounts of any estimated tax payments made by the individual group members for such year prior to the filing of the consolidated return are credited against the tax liability of the group.

2. The amount of the installment required to be paid is equal to 90 percent of the tax shown on the return for the taxable year (see Section 220.34(2)(b)1., F.S.). The “tax shown on the return” is the tax shown on the Florida consolidated tax return.

3. The exception provided by Section 220.34(2)(d)1., F.S., will not apply in the year an affiliated group first files a Florida consolidated tax return.

(11) Affiliated group. Consolidated tax return filed in prior year.

(a)1. General Rule. After an affiliated group files a Florida consolidated tax return, it must file its declaration of estimated tax on a consolidated basis for each subsequent taxable year until such time as the affiliated group is granted permission to file separate Florida tax returns under Section 220.131, F.S. Until such time, the group is treated as a single taxpayer for purposes of making a declaration of estimated tax and making payments of estimated tax.

2. If an affiliated group files a Florida consolidated tax return for the taxable year, it is limited to a single $2,500 estimated tax threshold for purposes of determining requirements for filing a declaration of estimated tax. For purposes of determining an amount equal to the tax computed at the rates applicable to the taxable year, but otherwise on the basis of the facts shown on the return for, and the law applicable to the preceding taxable year (see Section 220.34(2)(d)1., F.S.), the “facts shown on the return” are the facts shown on the Florida consolidated tax return for the preceding year.

(b)1. If, after filing Florida consolidated tax returns, the affiliated group is granted permission to file separate Florida tax returns under Section 220.131, F.S., the amount of any estimated tax payments made with respect to a consolidated declaration of estimated tax for such year will be credited against the separate tax liabilities of the members in the manner designated on a statement from the common parent. This statement must be attached to the Florida corporate income/franchise tax returns of each member of the affiliated group, setting forth the name, address, and federal employee identification number of each member, and the amount of estimated tax payment that will be allocated to each member.

2. Each member of the group is entitled to a separate $2,500 estimated tax threshold for purposes of determining requirements for making a declaration of estimated tax under Section 220.24(1), F.S., for such year. For purposes of Section 220.34(2)(b)2., F.S., the “amount, if any, of the installment paid” by any member is an amount apportioned to such member in any manner designated by the common parent. The exception provided by Section 220.34(2)(d)1., F.S., will not apply to an affiliated group filing separate Florida tax returns in a year immediately following a year in which a Florida consolidated tax return was filed.

(12) Short taxable years.

(a) A separate declaration is required if the taxpayer is required to file an income tax return for a period of less than 12 months. However, no declaration will be required if the short taxable year is:

1. A period of less than 4 months, or

2. A period of 4 or more months but less than 12 months and the requirements of Section 220.24, F.S., are not met before the first day of the last month in the short taxable year.

(b)1. In the case of a corporation that is required to file a declaration of estimated tax for a short taxable year, the corporation must file the declaration of estimated tax and make payments of estimated tax in accordance with the time periods prescribed in subsections (5) and (6) of this rule.

2. However, the declaration must be filed before the first day of the next taxable year if the taxpayer can reasonably expect to owe more than $2,500 in estimated tax before the first day of such last month and the date specified in subsections (5) and (6) as applicable is not within the short taxable year.

3. Any estimated tax payable in installments which is not paid before the first day of the next taxable year, whether or not the date otherwise specified in Section 220.33, F.S., for payment has arrived, must be paid on the first day of the first month succeeding the last month of the short taxable year.

(c) The application of the provisions of paragraphs (a) and (b), is illustrated by the following examples:

1. Example (1): A taxpayer filing on a calendar year basis that changes to a fiscal year beginning September 1, 2017, will have a short taxable year beginning January 1, 2017, and ending August 31, 2017. If the corporation can reasonably expect to owe more than $2,500 in estimated tax before April 1, 2017, the first day of the fourth month of the taxable year, the declaration of estimated tax must be filed before June 1, 2017 (the first day of the sixth month).

2. Example (2): If, in the first example, the taxpayer could not reasonably expect to owe more than $2,500 in estimated tax until July 1, 2017, then the requirements of Section 220.24, F.S., were met before the first day of the last month of the short taxable year, and a declaration of estimated tax is required to be filed before September 1, 2017, for the short taxable year. However, if the taxpayer does not reasonably expect to owe more than $2,500 in tax until August 1, 2017, then the requirements of Section 220.24, F.S., were not met before the first day of the last month of the short taxable year, and no declaration of estimated tax is required to be filed for the short taxable year.

3. Example (3): The taxable year for a corporation that has elected to be a calendar year taxpayer began June 1, 2017. The taxable year is, therefore, June 1, 2017, through December 31, 2017. The taxpayer can reasonably expect by August 31, 2017 (before the first day of the fourth month of the taxable year), to owe $10,000 in tax. The declaration of estimated tax must be filed before November 1 (the first day of the sixth month of the taxable year). Payments of estimated tax would be due October 31, November 30, and December 31. The taxpayer must pay at least 90 percent of the tax finally determined to be due. The tax finally determined to be due was $10,000; therefore, the taxpayer must pay at least $9,000 in estimated tax to avoid being underpaid. The provisions of Section 220.33, F.S., provide for four equal installments if the declaration is required to be filed before the first day of the sixth month of the taxable year. The taxpayer will not be underpaid if the payments due October 31 and November 30 are each at least $3,000 (one-third of $9,000). The payment made on December 31 must be the remaining balance of $3,000.

(d)1. In cases where the short taxable year results from a change of annual accounting period, for the purpose of determining whether the anticipated income for a short taxable year will result in an estimated tax liability requiring the filing of a declaration, the estimated tax liability is computed in part by subtracting a prorated exemption from the anticipated income. The prorated exemption is computed by multiplying the exemption allowed under Section 220.14, F.S., by a fraction, the numerator of which is the number of days in the short taxable year, and the denominator of which is 365.

2. For example, a taxpayer that changes from a calendar year basis to a fiscal year basis beginning October 1, 2017, will have a short taxable year beginning January 1, 2017, and ending September 30, 2017. If on or before August 31, 2017, the taxpayer anticipates that it will have income of $87,750 for the 9-month taxable year, the estimated tax is computed as follows:

Anticipated income for 9 months

$87,750.00

Less prorated exemption ($50,000 x 273/365)

• 37,397.00

Florida net income

$50,353.00

Estimated tax for 9-month period

($50,353 x 5.5 percent)

$2,769.42

Since the tax liability on the annual income is in excess of $2,500, a declaration is required to be filed, reporting an estimated tax of $2,769.42 for the 9-month taxable period. This paragraph does not apply in any case where the short taxable year does not result from a change in the taxpayer’s annual accounting period.

(e) If the taxable year for which an underpayment of estimated tax exists is a short taxable year due to a change in annual accounting periods, in determining the tax based on the current year rates but otherwise on the basis of the facts shown on the return for the preceding taxable year and the law applicable to the preceding year for purposes of Section 220.34(2)(d)1., F.S., the tax will be reduced by multiplying it by the number of months in the short taxable year and dividing the resulting amount by 12. The application of the exception provided in Section 220.34(2)(d)2., F.S., shall be determined as if the estimated tax were 90 percent of the tax finally due for the short taxable year.

(f) Where a declaration of estimated tax has been filed for a short taxable year, an amended declaration may be filed during any interval between installment dates. The amended declaration may not be filed until after the installment date on or before which the original declaration is filed. For purposes of this paragraph, the term “installment date” includes the last day of the taxable year if such last day does not fall on a prescribed installment date.

(13) Miscellaneous provisions.

(a) There are no special estimated tax requirements for large corporations.

(b) A taxpayer may use the prior year exception, even if the corporation had a net operating loss the prior year, only when the prior year was a full 12-month tax year.

(c) When an “S” Corporation changes its status to a “C” Corporation, the corporation must make estimated tax payments in the year it converts when its tax liability can be expected to exceed $2,500. An “S” Corporation that becomes a “C” Corporation cannot use a prior year exception. The corporation cannot use the tax paid to Florida as an “S” Corporation to relieve it from filing estimated tax payments. However, a corporation that has converted from “S” to “C” status will be allowed to base estimates on the prior year’s income and the tax computed on such income as if it were a “C” Corporation in the prior year.

(d) Partnerships that convert from partnership status to corporation status may not use a prior year exception based on the prior year’s income and the tax computed on such income as if it were a “C” Corporation in the prior year.

History

• Rulemaking Authority 213.06(1), 220.24, 220.34(2)(f), 220.34(3), 220.51, 1002.395(12) FS. Law Implemented 220.24, 220.241, 220.33, 220.34, 1002.395(5) FS. History–New 10-20-72, Amended 10-20-73, 7-27-80, 12-18-83, Formerly 12C-1.34, Amended 12-21-88, 4-8-92, 5-17-94, 3-18-96, 3-13-00, 9-28-04, 7-28-15, 1-10-17, 1-17-18, 1-8-19.

Fla. Admin. Code R. 12C-1.042 Methods of Accounting

History

• Rulemaking Authority 213.06(1), 220.42, 220.51 FS. Law Implemented 220.42 FS. History–New 10-8-74, Formerly 12C-1.42, Amended 12-21-88, 4-8-92, 3-18-96, 3-13-00, Repealed 10-27-22.

Fla. Admin. Code R. 12C-1.044 Adjustments to Income

(1) The Executive Director or the Executive Director’s designee is authorized to make adjustments to clearly reflect income in order to arrive at a proper and accurate tax. The Executive Director or the Executive Director’s designee is authorized to exercise such discretion when any agreement, understanding, arrangement, or device, whether by inadvertence or design, improperly or inaccurately reflects Florida income. Adjustments are authorized to be made, but are not limited to, any item or items of income, loss, deduction, apportionment factor, or exclusion and can be made to all or part of any such item or items to the extent required to properly and accurately reflect income. Utilization of this authority by the Executive Director or the Executive Director’s designee shall not be limited to circumstances where the improper or inaccurate reflection of income results from efforts to reduce, avoid, or escape tax.

(2) Examples when such adjustments are authorized to be made include, but are not limited to:

(a) Transactions at more or less than a fair price, which include, but are not limited to:

1. Transfers of property.

2. Loans and advances.

3. Services.

4. Transfers or use of intangible property.

(b) Transactions, arrangements, or agreements with little or no business purpose other than the reduction or avoidance of tax;

(c) Methods of accounting that fail to properly and accurately reflect income such as the inconsistent treatment of items of income, loss, or expense; or

(d) Acquisitions requiring substantial capital investment in Florida resulting in substantial changes in organizational structure and increases in the Florida apportionment fraction of the newly acquired corporation or group of corporations due to increases in the property and payroll factors.

(3)(a) If a taxpayer requests an adjustment under Section 220.44, F.S., pursuant to paragraph (2)(d), such request shall be made by the taxpayer through submission of a request for such adjustment to the Executive Director or the Executive Director’s designee. Whether such adjustment shall be allowed and the amount of any adjustment shall be determined through an analysis that takes into account and balances the factors listed in this rule against the net tax effect of the amount of the adjustment. The taxpayer shall provide information requested by the Executive Director or the Executive Director’s designee that shall be utilized when making the analysis and the determination of whether and to what extent an adjustment is appropriate under Section 220.44, F.S.

(b) When an affiliated group of corporations that is necessitated by regulatory and market requirements to create different legal entities and has never elected to file a Florida consolidated return acquires a separate group of affiliated corporations and:

1. The acquired group of corporations:

a. Is or will continue to be headquartered in Florida;

b. Was properly filing Florida consolidated returns prior to acquisition; and,

c. Has substantial debt prior to acquisition, which is paid directly or indirectly by the purchaser as part of the purchase price;

2. The purchaser or its existing affiliates incurred substantial debt in order to effect the acquisition; and

3. The taxpayer demonstrates that substantial net operating losses will occur upon the filing of separate Florida returns by members of the affiliated group, the Executive Director or the Executive Director’s designee is authorized to enter into an agreement with the parent company of the affiliated group for an adjustment to accelerate the deduction of current year net operating losses within the affiliated group for a period not to exceed 5 years. The Executive Director or the Executive Director’s designee is authorized to impose other conditions so that the adjustment is limited to the acceleration of current year net operating losses. Under no circumstances shall a taxpayer be allowed to use more tax preference items than it would have been entitled to use without the acceleration effects of this rule. The tax effect of the acceleration of current year net operating losses in each of the years under the agreement shall not exceed the lesser of ten percent (10%) of the additional Florida investments made in the first three tax years after the acquisition that contribute to the increased payroll and property factor related to the acquired companies, or $2 million.

(c) The agreement shall include provisions for the recapture of any tax benefits resulting from such adjustments should the conditions set forth in this rule or the agreement no longer be met.

(d)1. A taxpayer, any successor entities, or other members of an affiliated group of corporations that includes the taxpayer or any successor entities that have entered into an agreement with the Department under this rule shall not submit a request to revise, amend, or modify the existing agreement unless the taxpayer presents information showing that unforeseen circumstances have arisen with respect to the transaction that is the subject of the agreement.

2. A taxpayer, any successor entities, or other members of an affiliated group of corporations that includes the taxpayer or any successor entities that has entered into an agreement with the Department under this rule shall not submit a request for another agreement under this subsection for a period of 10 years from the date of the existing agreement unless the taxpayer presents information regarding a new transaction that involves a different acquired corporation or group of corporations from those included in the existing agreement.

(e) Should a taxpayer disagree with a decision made by the Executive Director or the Executive Director’s designee on a request for an adjustment made pursuant to this subsection, the taxpayer may request review of the decision by the Governor and Cabinet acting as the head of the Department of Revenue.

(4) A taxpayer shall be required to submit information under oath or affirmation and shall permit examination of books and records as necessary to allow the Executive Director or the Executive Director’s designee to determine whether and to what extent an adjustment is appropriate.

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 213.37, 220.21, 220.44 FS. History–New 10-4-04.

Fla. Admin. Code R. 12C-1.051 Forms

(1)(a) The following forms and instructions are used by the Department in its administration of the corporate income tax and franchise tax. These forms are hereby incorporated by reference in this rule.

(b) Copies of these forms are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday, (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2) F-851

Corporate Income/Franchise Tax Affiliations Schedule

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16277)

01/24

(3)(a) F-1065

Florida Partnership Information Return (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06341)

01/16

(b) F-1065N

Instructions for Preparing Form F-1065 Florida Partnership Information

Return

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16278)

01/24

(4) F-1120A

Florida Corporate Short Form Income Tax Return

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16280)

01/24

(5)(a) F-1120

Florida Corporate Income/Franchise Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18772)

01/26

(b) F-1120N

Instructions for – Corporate Income/Franchise Tax Return for taxable years beginning on or after January 1, 2025

(http://flrules.org/Gateway/reference.asp?No=Ref-18773)

01/26

(6) F-1120ES

Declaration/Installment of Florida Estimated Income/Franchise Tax (R. 01/17) (http://www.flrules.org/Gateway/reference.asp?No=Ref-07769)

01/17

(7)(a) F-1120X

Amended Florida Corporate Income/Franchise Tax Return (R. 01/16) (http://www.flrules.org/Gateway/reference.asp?No=Ref-06346)

01/16

(b) F-1120XN

Instructions for Preparing Form F-1120X Amended Florida Corporate Income/Franchise Tax Return

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14255)

01/22

(8) F-1122

Authorization and Consent of Subsidiary Corporation to be Included in a Consolidated Income Tax Return (R. 01/13)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-02109)

01/13

(9)(a) F-11915

Florida Credit for Qualified Railroad Reconstruction or Replacement Expenditures Application for Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17791)

02/25

(b) F-11915T

Florida Credit for Qualified Railroad Reconstruction or Replacement Expenditures Notice of Intent to Transfer a Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17792)

02/25

(10) F-1193T

Notice of Intent to Transfer A Florida Tax Credit – Corporate Income Tax (http://www.flrules.org/Gateway/reference.asp?No=Ref-16282)

01/24

(11) F-1196

Allocation for Research and Development Tax Credit for Florida Corporate Income/Franchise Tax (R. 01/18)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-08989)

01/18

(12) F-1198

Florida Experiential Learning Tax Credit Program – Application for Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16284)

07/23

(13)(a) F-11991

Florida Credit for Manufacturing of Human Breast Milk Derived Human Milk Fortifiers – Application for Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16285)

07/23

(b) F-11991T

Florida Credit for Manufacturing of Human Breast Milk Derived Human Milk Fortifiers – Notice of Intent to Transfer a Tax Credit (http://www.flrules.org/Gateway/reference.asp?No=Ref-16286)

07/23

(14) F-11992

Florida Individuals with Unique Abilities Tax Credit Program Application for Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17793)

02/25

(15) F-2220

Underpayment of Estimated Tax on Florida Corporate Income/Franchise Tax

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17794)

02/25

(16) F-7004

Florida Tentative Income/Franchise Tax Return and Application for

Extension of Time to File Return (R. 01/17)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-07771)

01/17

History

• Rulemaking Authority 213.06(1), 220.183(4)(d), 220.1915(7), 220.196(4), 220.198(6), 220.1991(3), 220.51, 402.261(7)(a), 1002.395(12)(b) FS. Law Implemented 119.071(5), 212.08(5)(p), 213.37, 220.03, 220.11, 220.12, 220.13(1), (2), 220.15, 220.16, 220.183, 220.184, 220.1845, 220.185, 220.186, 220.1875, 220.1876, 220.1877, 220.1878, 220.1895, 220.191, 220.1915, 220.196, 220.198, 220.199, 220.1991, 220.1992, 220.21, 220.211, 220.22, 220.221, 220.222, 220.23, 220.24, 220.241, 220.31, 220.32, 220.33, 220.34, 220.41, 220.42, 220.43, 220.51, 220.721, 220.723, 220.725, 220.737, 220.801, 220.803, 220.805, 220.807, 220.809, 402.261, 1002.395 FS. History–New 9-26-77, Amended 12-18-83, Formerly 12C-1.51, Amended 12-21-88, 12-31-89, 1-31-91, 4-8-92, 12-7-92, 1-3-96, 3-18-96, 3-13-00, 6-19-01, 8-1-02, 6-19-03, 3-15-04, 9-24-04, 6-28-05, 5-1-06, 4-5-07, 1-1-08, 1-27-09, 1-11-10, 4-26-10(12)(a), (b), 4-26-10(13)(a), (b), 6-28-10, 1-12-11, 6-6-11, 1-25-12, 1-17-13, 3-12-14, 1-19-15, 1-11-16, 1-10-17, 1-17-18, 1-8-19, 12-12-19, 5-23-22, 1-1-23, 11-21-23, 1-1-24, 2-20-25, 1-1-26.

Fla. Admin. Code R. 12C-1.0511 Incorporation by Reference

(1) The Department of Revenue hereby incorporates by reference in this rule the following sections of the United States Internal Revenue Code of 1986, as amended and in effect January 1, 1993:

(a) s. 55, I.R.C.;

(b) s. 78, I.R.C.;

(c) s. 108, I.R.C.;

(d) s. 338, I.R.C.;

(e) s. 381, I.R.C.;

(f) s. 382, I.R.C.;

(g) s. 404, I.R.C.;

(h) s. 862, I.R.C.;

(i) s. 1272, I.R.C.;

(j) s. 1288, I.R.C.;

(k) s. 1374, I.R.C.;

(l) s. 1375, I.R.C.;

(m) s. 1552, I.R.C.;

(n) s. 1563, I.R.C.

(2) The Department of Revenue hereby incorporates by reference in this rule Public Law 86-272 (15 U.S.C. ss. 381 – 384).

(3) The Department of Revenue hereby incorporates by reference in this rule Rev. Rule. 73-112.

(4) The Department of Revenue hereby incorporates by reference the following court cases:

(a) Norfolk and Western Railway Co. v. Missouri State Tax Commission, 390 U.S. 317, 88 S. Ct. 995, 19 L. Ed. 2d 1201 (1968);

(b) Butler Bros. v. McColgan, 315 U.S. 501, 62 S. Ct. 701, 86 L. Ed. 991 (1942);

(c) Hans Rees’ Sons, Inc. v. North Carolina ex rel Maxwell, 283 U.S. 123, 51 S. Ct. 385, 75 L. Ed 879 (1931).

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 120.543 FS. History–New 5-17-94.

Fla. Admin. Code R. 12C-1.053 Adoption of Chapter 214

History

• Rulemaking Authority 220.51 FS. Law Implemented 220.21 FS. History–New 10-20-73, Amended 10-8-74, 2-27-78, Formerly 12C-1.53, Amended 12-21-88, Repealed 4-8-92.

Fla. Admin. Code R. 12C-1.068 Intangible Tax Credit; Additional Tax Due

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.68 FS., Section 127, Chapter 91-112, Section 8, Chapter 98-132, L.O.F. History–New 12-21-88, Amended 4-8-92, 5-17-94, 3-18-96, Repealed 4-14-09.

Fla. Admin. Code R. 12C-1.318 Rules for Recognition of Taxpayers and Their Representatives

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 120.62, 213.053, 220.731 FS. History–New 10-20-73, Amended 10-8-74, Formerly 12C-1.53(r)-(t), Amended 2-27-78, 12-21-88, 4-8-92, Repealed 5-9-13.

Fla. Admin. Code R. 12C-1.321 Confidentiality and Information Sharing

History

• Rulemaking Authority 220.51 FS. Law Implemented 214.21 FS. History–New 10-20-73, Amended 10-8-74, Formerly 12C-1.153(1)(u), Amended 2-27-78, Repealed 4-8-92.

Fla. Admin. Code R. 12C-1.322 Amounts Less Than One Dollar

(1) If a total amount of less than one dollar is payable, refundable or creditable, such amount shall be disregarded. No refund will be returned by the Department for an amount less than one dollar unless the taxpayer requests a refund in writing to the Comptroller.

(2) To the extent permitted by any corporation income tax form or instructions prescribed for use with any corporation income tax form, declaration, statement, other document, or supporting schedules, any amount required to be reported on such form shall be entered at the nearest whole dollar amount. The extent to which, and the conditions under which such whole dollar amounts shall be entered on any form will be set forth in the instructions issued with respect to such form. For the purpose of the computation to the nearest dollar, a fractional part of a dollar shall be disregarded unless it amounts to fifty cents or more, in which case the amount (determined without regard to the fractional part of a dollar) shall be increased by one dollar.

History

• Rulemaking Authority 213.06(1), 220.51, 220.737 FS. Law Implemented 220.737 FS. History–New 10-20-73, Amended 10-8-74, Formerly 12C-1.53(1)(v), Amended 2-27-78, 4-8-92.

Fla. Admin. Code R. 12C-1.343 Interest Computations

(1) The interest rate on any underpayment of tax or on any overpayment will be determined pursuant to Section 220.807, F.S.

(2)(a) Interest on any overpayment accrues from the date the taxpayer files written notice with the Department. However, if an overpayment is refunded or credited within 3 months after the date upon which the taxpayer files written notice advising the Department of the overpayment, no interest is allowed on such overpayment.

(b) The term “written notice” is defined in subsection 12C-1.003(6), F.A.C.

(3) Interest on deficiencies accrues from the due date of the return without regard to extensions of time to file.

(4) Erroneous refund. Any tax, interest, or penalty which has been erroneously refunded for a taxable year, and which is recoverable by the Department will bear interest at the rate provided in Section 220.807, F.S., and will be assessed from the date of payment of such refund to the date of recovery. An amount will be considered to be an “erroneous refund” whenever a taxpayer is refunded any amount of tax finally determined to be due.

(5) The daily rate of interest computed under this rule shall use a year based on 365 days, and 366 days in a leap year. This daily rate will be carried out to nine decimal places.

(6) Interest Rates.

(a) The interest rate determined pursuant to Section 220.807, F.S., is subject to change on January 1st and July 1st of each year.

(b) The applicable interest rate for any period can be obtained by:

1. Accessing the Department’s website at floridarevenue.com/taxes/rates, or

2. Calling Taxpayer Services during regular business hours at (850)488-6800, Monday through Friday (excluding holidays).

3. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

History

• Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.723, 220.807, 220.809 FS. History–New 4-2-78, Amended 12-21-88, 4-8-92, 5-17-94, 3-18-96, 1-25-12.

Fla. Admin. Code R. 12C-1.0135 Unitary Business Groups; Special Requirements

History

• Rulemaking Authority 213.06, 220.135(4), 220.51 FS. Law Implemented 120.53(1)(b), 220.135 FS. History–New 12-18-83, Formerly 12C-1.135, Amended 12-21-88, Repealed 4-8-92.

Fla. Admin. Code R. 12C-1.0181 Enterprise Zone Jobs Credit

History

• Rulemaking Authority 20.05(5), 213.06, 220.51 FS. Law Implemented 120.53(1)(b), 213.05, 213.35, 220.03(1), (5), 220.181, 290.009(1) FS., Section 56, Ch. 94-136, Laws of Florida. History–New 10-20-85, Formerly 12C-1.181, Amended 12-21-88, 12-7-92, 10-19-94, Repealed 1-3-96.

Fla. Admin. Code R. 12C-1.0182 Enterprise Zone Property Tax Credit

History

• Rulemaking Authority 213.06(1), 220.182(7), 220.51 FS. Law Implemented 220.181, 220.182, 290.009(1) FS., Section 56, Ch. 94-136, Laws of Florida. History–New 10-7-85, Formerly 12C-1.182, Amended 12-21-88, 4-8-92, 5-17-94, 10-19-94, Repealed 1-3-96.

Fla. Admin. Code R. 12C-1.0183 Community Contribution Tax Credit

History

• Rulemaking Authority 20.05(5), 213.06, 220.183(6)(d), 220.51 FS. Law Implemented 220.183 FS., Section 56, Ch. 94-136, Laws of Florida. History–New 4-24-85, Formerly 12C-1.183, Amended 12-21-88, 1-30-90, 4-8-92, 10-19-94, Repealed 1-3-96.

Fla. Admin. Code R. 12C-1.0241 Declaration; Time for Filing

History

• Rulemaking Authority 220.51 FS. Law Implemented 220.24, 220.241 FS. History–New 10-20-73, Formerly 12C-1.241, Amended 12-21-88, Repealed 5-17-94.

Chapter 12C-2 INTANGIBLE PERSONAL PROPERTY TAX

Fla. Admin. Code R. 12C-2.001 Definitions

The terms “Just Value, Just Valuation, Cash Value, Full Cash Value, Present Cash Value, Market Value, Actual Value and Value” are synonymous. These terms mean the price which the vendor’s interest would bring if offered for sale by one who desires to sell but is not compelled to sell, and bought by one willing to buy but not compelled to buy, with both seeking to maximize their gains and neither being in a position to take advantage of the other.

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 196.199(2)(b) FS. History–New 4-17-72, Amended 9-27-76, Formerly 12C-2.01, Amended 11-21-91, 1-28-08.

Fla. Admin. Code R. 12C-2.002 Property Subject to Tax – Annual and Nonrecurring

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 199.023, 199.032, 199.042, 199.052, 199.057, 199.062, 199.103, 199.133, 199.135, 199.143, 199.145, 199.155, 199.175, 199.183, 199.185, 199.202 FS. History–New 4-17-72, Amended 12-20-73, 11-17-74, Formerly 12C-2.02, Amended 11-21-91, 10-9-01, Repealed 1-28-08.

Fla. Admin. Code R. 12C-2.003 Exemptions

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 199.183, 199.185, 213.12(2) FS. History–New 4-17-72, Amended 12-20-73, 11-17-74, 4-21-75, Formerly 12C-2.03, Amended 11-21-91, 10-9-01, Repealed 1-28-08.

Fla. Admin. Code R. 12C-2.004 Property Subject to Tax – Governmental Leasehold Estates and Nonrecurring

(1) Tax on Governmental Leasehold Estates – All leases of government-owned property are subject to an annual tax if rental payments are due as consideration for the lease, unless the lessee serves or performs a governmental, municipal, or public purpose or function as defined in Section 196.012, F.S.

(2)(a) A nonrecurring tax is imposed at the rate of $2.00 per thousand dollars (2 mills) of the value of a note or other obligation for payment of money that is secured by a mortgage, deed of trust, or other lien on Florida real property.

(b) The following are examples of property subject to the nonrecurring tax:

1. Agreements or contracts for deed.

2. Agreements not to encumber real property if the agreement attaches as a lien on the real property.

3. Future Advances – to the extent secured by a lien on Florida real property.

4. Line of Credit – to the extent secured by a lien on Florida real property, as described in Section 199.143, F.S.

(c) Example: Note and mortgage given to secure loan with a principal amount of $1,000,000.

Tax computation:

Principal

$1,000,000.00

Tax rate

x .002

---

Tax due

$2,000.00

(3)(a) Where a note, bond or other obligation for the payment of money is secured by realty located both inside and outside of the state and by personal property located both inside and outside of the state, the nonrecurring tax is required to be apportioned based on each type of property’s relative percentage of the principal amount of debt at the time the obligation is created.

(b) Example: Note and mortgage given to secure a loan of $1,000,000. The mortgage includes real property located in and out of Florida as well as personal property located in and out of Florida.

Security

Value

Percentage

Tax

Value of Florida Real Property

$250,000.00

25%

$500.00(*)

Value of NonFlorida Real Property

250,000.00

25%

– 0 –

Total Value of All Real Property

500,000.00

50%

N/A

Value of Florida Personal Property

250,000.00

25%

0(**)

Value of NonFlorida Personal Property

250,000.00

25%

0(**)

Total Value of All Personal Property

500,000.00

50%

0(**)

Total Collateral

$1,000,000.00

100%

(*) Nonrecurring 2 mill tax

(**) There is no tax on personal property.

(4)(a) Where the value of real property pledged to secure an obligation is less than the balance of the obligation, the amount of the obligation secured by the value of Florida real property is subject to the nonrecurring tax.

(b) Example:

Principal Amount of Loan

$1,000,000.00

Less Value of Florida Real Property

-500,000.00

Amount subject to nonrecurring tax

$ 500,000.00

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 196.199(2)(a), (b), 199.133, 199.135, 199.143, 199.155, 199.183 FS. History–New 4-17-72, Amended 12-20-73, 5-8-79, Formerly 12C-2.04, Amended 11-21-91, 5-18-93, 10-9-01, 1-28-08, 1-17-13.

Fla. Admin. Code R. 12C-2.005 Reporting Requirements – Due Date ‒ Payment of Tax – Discounts Allowed

(1) Governmental Leasehold –

(a)1. Every person, regardless of domicile, who leases property from a governmental entity in this state, is required to file a return with the Department. All intangible personal property subject to tax is required to be assessed at its value as of January 1 of each year. The tax is to be reported on a Governmental Leasehold Intangible Personal Property Tax Return (Form DR-601G, incorporated by reference in Rule 12C-2.0115, F.A.C.). The return and the tax are due on or before June 30 of each year.

2. A return, accompanied with tax due, for the current tax year, that is postmarked or delivered to the Department on or before June 30 of the tax year will be considered timely filed. A return that bears a postmark, or is delivered to the Department, after June 30 of the tax year is delinquent. When June 30 falls on a Saturday, Sunday, or legal holiday, returns postmarked or delivered to the Department on the next succeeding workday will be filed timely. For purposes of this rule, a legal holiday means a holiday that is observed by federal or state agencies as a legal holiday as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

3. The following discounts may be claimed for early payment when the return and payment are postmarked or delivered to the Department on or before the last day of the month of the following periods:

a. 4% during January and February;

b. 3% during March;

c. 2% during April;

d. 1% during May;

e. No discount during June.

4. The postmark date will determine the date of payment for payments mailed to the department. If no postmark is available, the date indicated by the taxpayer on the return signature line or the date of delivery to the Department will be the date of payment.

(b) When the tax due, before discount, is less than $60, no return is required to be filed and no tax is due. Taxpayers who receive a Governmental Leasehold Intangible Personal Property Tax Return (Form DR-601G) from the Department for which no tax is due may file the return, without payment, to inform the Department that no tax is due. Filing this information return will eliminate additional inquiries from the Department regarding the filing of the return. Taxpayers who are under audit, examination, or investigation by the Department will be required to file a completed return, even if the amount of tax due with the return is less than sixty dollars ($60).

(2) Nonrecurring Tax –

(a) The nonrecurring 2 mill tax on notes, bonds and other obligations for the payment of money which are secured by mortgage, deed of trust or other lien on Florida real property is due and payable at the time the instrument is presented for recordation.

(b) If there is no written instrument, or if the written instrument is not presented for recordation, the nonrecurring tax of 2 mills is due and payable within 30 days following the creation of the obligation.

(c) If a mortgage, deed of trust, or other instrument evidencing a lien subject to the nonrecurring tax secures a revolving line of credit, a line of credit, or future advances, the tax is due, as provided in paragraphs (a) and (b) on the initial debt or obligation, excluding future advances. Thereafter, each time a future advance is made under a future advance mortgage additional nonrecurring tax is due.

(3) Extension of Time for Filing Governmental Leasehold Tax Return –

(a)1. The Department will grant an extension of time of 3 months for filing a return or reporting and paying the tax when it is determined there is reasonable cause for granting the extension. Reasonable cause for the purpose of administering these provisions shall be deemed to be one of the following:

a. Having been granted an extension of time to file federal income taxes. A copy of the extension from the Internal Revenue Service must accompany the request for extension of time; or

b. A tax payment of 100% of last year’s intangible tax or 90% of the current year’s tax accompanies the request for extension; or

c. The records necessary to complete the return are not available due to fire, illness or death of the person having the knowledge to complete the return; or

d. Reasonable cause is established under the provisions of Rule 12-13.007, F.A.C.

2. All requests for extensions of time, for filing returns or reporting and paying the tax, must be filed with the Department on a Governmental Leasehold Intangible Personal Property Tax Application for Extension of Time to File Return (Form DR-602G, incorporated by reference in Rule 12C-2.0115, F.A.C.) and must be received by the Department on or before June 30 of the tax year. The Department will notify taxpayers only if the request is denied.

3. The extension of time covers the period July 1 through September 30. No penalty will be assessed if the return is filed and the tax due is paid on or before September 30 of the tax year. All taxes paid after June 30 of the tax year are subject to interest as provided in Rule 12C-2.007, F.A.C. Interest will be assessed on tax paid after June 30, including those taxes for which an extension of time to file and pay has been granted.

(b) Examples:

1. A taxpayer requested and was granted an extension of time to file a tax return and paid the tax due with the return. The extension was granted through September 30 of the tax year. On September 30 of the tax year, intangible tax in the amount of $100 is paid. No penalties are due because of the approved extension of time to file. However, interest in the amount of $3.00 is due. (See Rule 12C-2.007, F.A.C.)

Tax Due With Return

$100

Penalties

0

Interest

3

Total Due With Return

$103

2. A taxpayer is granted an extension of time to file a tax return and pay the tax due with the return. The extension was granted through September 30 of the tax year. On October 1 of the tax year a return is filed and the intangible tax is paid. On October 1, the extension of time to file is void. The taxpayer is liable for all penalties and interest from June 30 of the tax year until the date paid. (See Rule 12C-2.007, F.A.C.)

Tax Due With Return

$100

Penalties: Delinquency (40%)

Late Filing (40%)

Maximum delinquency and late filing Penalty (40%)]

40

Interest

3

Total Due With Return

$143

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 196.199(2)(b), 199.135 FS. History–New 4-17-72, Amended 12-20-73, 11-17-74, Formerly 12C-2.05, Amended 11-21-91, 10-9-01, 5-4-03, 1-28-08.

Fla. Admin. Code R. 12C-2.006 Taxable Situs – Reporting Requirements – Who Shall File a Return

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 199.052, 199.057, 199.062, 199.175, 199.202 FS. History–New 4-17-72, Amended 12-20-73, 11-17-74, 9-27-76, 9-6-77, Formerly 12C-2.06, Amended 11-21-91, 1-5-94, 6-2-98, 10-9-01, 5-4-03, Repealed 1-28-08.

Fla. Admin. Code R. 12C-2.0061 Transfer of Intangible Personal Property to Certain Out-of-State Entities

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 199.052, 199.175 FS. History–New 6-2-98, Repealed 1-28-08.

Fla. Admin. Code R. 12C-2.0062 Management or Control

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 199.052, 199.175 FS. History–New 6-2-98, Repealed 1-28-08.

Fla. Admin. Code R. 12C-2.0063 Intangible Personal Property Held in Trusts

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 199.052, 199.175 FS. History–New 6-2-98, Amended 10-9-01, Repealed 1-28-08.

Fla. Admin. Code R. 12C-2.007 Penalties and Interest

(1) Delinquent Penalty. A delinquent penalty of 10 percent of the tax due, per month or portion of a month, will accrue on the governmental leasehold estates intangible tax and the nonrecurring intangible tax that is not paid on or before the due date. The delinquent penalty will not exceed 50 percent of the tax due.

(2) Late Filing Penalty. A late filing penalty of 10 percent of the tax due, per month or portion of a month, will accrue on governmental leasehold estates intangible tax returns not filed on or before the due date. The late filing penalty will not exceed 50 percent of the tax due.

(3) The combined penalties provided in subsections (1) and (2) will not exceed 10 percent of the tax due per month, or portion of a month, and is limited to 50 percent of the tax due.

(4) Undervaluation Penalty. Governmental leasehold estate property which has been reported at an amount less than market value is subject to a specific undervaluation penalty of 10 percent of the tax due attributed to the undervaluation.

(5)(a) Interest accrues at the rate of interest established pursuant to Section 213.235, F.S., and Rule 12-3.0015, F.A.C. (prorated daily).

(b) Interest is due based on the amount of tax paid after June 30 of the tax year regardless of any extension of time granted by the Department for paying the tax or filing a return. Interest accrues on the unpaid tax beginning July 1 of the tax year and is calculated through and including the date of payment.

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 196.199(2)(b), 199.282, 213.235 FS. History–New 4-17-72, Amended 12-20-73, 9-27-76, 4-2-78, Formerly 12C-2.07, Amended 11-21-91, 5-18-93, 4-2-00, 10-9-01, 5-4-03, 1-28-08.

Fla. Admin. Code R. 12C-2.0075 Amnesty Program

History

• Rulemaking Authority 199.202, 199.2825, 213.06 FS. Law Implemented 120.53(1), 199.202, 199.282(2), 199.2825 FS. History–New 4-8-87, Repealed 6-12-95.

Fla. Admin. Code R. 12C-2.008 Information Reports

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 199.052, 199.057, 199.062, 199.185, 607.1622, 733.702 FS. History–New 4-17-72, Amended 12-20-73, 4-21-75, Formerly 12C-2.08, Amended 7-31-90, 11-21-91, 1-5-94, 10-9-01, 5-4-03, Repealed 1-28-08.

Fla. Admin. Code R. 12C-2.009 Assessment Procedures

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 199.103, 199.232 FS. History–New 4-17-72, Formerly 12C-2.09, Amended 11-21-91, Repealed 6-12-95.

Fla. Admin. Code R. 12C-2.010 Valuations

(1) Leases of Governmental Property.

(a) The value of a lease of governmental property described in subsection 12D-3.003(3), F.A.C., is determined by valuing the lease payments for the remaining term of the lease on January 1 of the tax year, subject to the following provisions:

1. The lease payments to be valued do not include any amount for taxes, interest, insurance, repairs, maintenance, exclusive franchise or concession fees, costs of utilities, or similar charges required to be paid the lessor, and include only the amount paid by the lessee for the use of real or tangible property provided or owned by the governmental lessor, whether designated as a fixed sum, a percentage, or a variable amount.

2. If lease payments are nominal amounts, such as $1 or $10 per year, or the payments are significantly less than a fair market rental for the property, the annual fair market rent which would be paid by the lessee in the open market for comparable property under similar terms and circumstances will be the lease payment to be valued.

3. If payments required by the lease are based on some factor other than the passage of time, such as a percentage of sales or profits, the lease payment to be valued will be based on the average annual rent actually paid by the lessee in prior years, providing the amount so determined is not nominal or significantly less than the fair market rental for the property. The average annual rental used will be determined from the amounts paid by the lessee for a period not to exceed the previous five years. If the average so determined is nominal or is significantly less than fair market value for the property, the lease payment to be discounted will be the annual fair market rental for the property.

4. Otherwise, the annualized lease payment required under the lease is the amount to be valued. The valuation factors to be used are based on the Federal Reserve discount rate – Atlanta – on the last business day of the preceding year, plus one percent. Valuation Factor Tables determined by the Department based on that discount rate, plus one percent, are annually published in a Taxpayer Information Publication and posted to the Department’s Revenue Law Library at floridarevenue.com.

5. The period for which the lease payments are to be valued is the number of years remaining under the lease, exclusive of renewal options, as of January 1 of the tax year. The year in which the lease will expire is to be considered a full year for the purpose of this rule.

6. If the final period for which the lease payment is to be valued is less than a year, the lease payment is to be valued using the 1 year value factor and the tax apportioned based on the number of months during the year that the lease is in effect.

(b) Nothing in this paragraph exempts tangible personal property, buildings, or real property improvements owned by the lessee from ad valorem taxation. Such items are not includable in the value of the lessee’s interest in leased governmental property classified as intangible property.

Cross Reference – Chapter 12D-3, F.A.C.

(c) The following examples illustrate the provisions of this paragraph:

1. Lessee makes $4,000.00 annual payments to lessor that includes $1,000.00 tax on a lease with 10 years remaining and the Federal Reserve discount rate – Atlanta – is 11%. The value of the lessee’s interest is determined by discounting the net annual rent of $3,000.00 for 10 years at 12%. This results in a taxable value of $16,950.60.

2. A lessee has 10 years remaining on a percentage lease with an original term of 13 years and the Federal discount rate – Atlanta – is 11%. The lessee has paid $5,000.00 in the first previous year, $6,000.00 in the second previous year and $4,000.00 in the third previous year. The value of the lessee’s interest would be determined by averaging the prior payments of $5,000.00, $6,000.00, and $4,000.00. The lessee’s interest of $5,000.00 would be discounted for 10 years at 12% or $28,251.00.

(2) Nonrecurring Tax.

(a) All obligations for the payment of money, evidenced by note, bond, or deed of trust secured by a written specific lien on real property located in this state are valued at an amount equal to the principal amount of indebtedness at the time of execution.

(b) Agreements for deed constitute intangible property within the classification subject to the nonrecurring tax as a lien in equity on real property. The agreements for deed or contracts for deed are taxable at the principal amount of indebtedness at the time the agreement is executed.

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 196.199(2)(b), 199.155 FS. History–New 4-17-72, Amended 12-20-73, 9-27-76, 8-8-78, 12-31-80, Formerly 12C-2.10, Amended 11-21-91, 5-18-93, 10-9-01, 1-28-08, 1-17-13.

Fla. Admin. Code R. 12C-2.0105 Tax Credits

History

• Rulemaking Authority 199.202(2), 213.06(1) FS. Law Implemented 199.104, 199.106 FS. History–New 5-18-93, Amended 10-9-01, Repealed 1-28-08.

Fla. Admin. Code R. 12C-2.011 Administration

(1) Nonrecurring Tax – Payments made directly to Department.

Only nonrecurring tax due on obligations or advances made under instruments which have been previously recorded or which are not normally recorded or which are not normally taxed at the time of recording may be paid directly to the Department. Examples include tax payments due on an advance made under a future advance clause of a recorded mortgage on real property, advances made under a revolving line of credit secured by a recorded mortgage on real property, or the obligation created under an agreement or contract for deed.

(2) Persons paying the nonrecurring tax directly to the Department are required to file a report using the format described below to report and pay the tax:

(a)1. Include the taxpayer’s name, mailing address, city and state, and the taxpayer’s identification number.

2. Identify the obligation for which tax is being paid, including the following:

a. The name of the obligor;

b. The county in which the real property is located;

c. The official record book and page number of the recording, if any;

d. The parcel number assigned by the county property appraiser or legal description;

e. The amount on which tax is being paid;

f. The date on which obligation or advance was made; and,

g. The amount of tax.

(b) Taxpayers must mail these tax payments to the Florida Department of Revenue, 5050 West Tennessee Street, Tallahassee, Florida 32399-0100 or may be presented to a local office of the Department of Revenue.

History

• Rulemaking Authority 199.135(2), 199.202, 213.06(1) FS. Law Implemented 199.135 FS. History–New 4-17-72, Amended 9-26-77, 10-16-80, Formerly 12C-2.11, Amended 11-21-91, 1-28-08, 12-29-25.

Fla. Admin. Code R. 12C-2.0115 Public Use Forms

(1)(a) The following public use forms and instructions are employed by the Department in its dealings with the public related to administration of the intangible tax. These forms are hereby incorporated and made a part of this rule by reference.

(b) Copies of these forms are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2) DR-601G

Governmental Leasehold Intangible Personal Property Tax Return (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06349)

01/16

(3) DR-602G

Governmental Leasehold Intangible Personal Property Tax Application for

Extension of Time to File Return (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06350)

01/16

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 119.071(5), 196.199(2), 199.202, 215.26 FS. History–New 11-21-91, Amended 1-5-94, 10-9-01, 5-4-03, 9-28-04, 6-28-05, 10-30-06, 1-28-08, 1-27-09, 1-31-10, 2-7-11, 1-29-12, 1-17-13, 5-9-13, 1-20-14, 1-11-16, 12-29-25.

Fla. Admin. Code R. 12C-2.012 Refunds

(1)(a) Any person entitled to a refund of intangible personal property taxes may seek a refund by filing an Application for Refund (Form DR-26, incorporated by reference in Rule 12-26.008, F.A.C.) with the Department. Form DR-26 must be in accordance with the timing provisions of Section 215.26(2), F.S., and must meet the requirements of Sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C.

(b) Form DR-26, Application for Refund, must be filed with the Department within three (3) years after the date the tax was paid.

(2)(a) An automatic refund of the amount of overpayment of tax will be granted by the Department when the Department determines upon examination that an overpayment of the tax with the return has occurred, that no additional information is required to determine the correct amount of tax due, and that the overpayment of tax is in accordance with the timing provisions of Section 215.26(2), F.S.

(b) For example, an automatic refund will be granted by the Department when an examination of the return reveals that:

1. The discount pursuant to Section 199.042(2), F.S. (2005), has been understated.

2. The payment made with a Governmental Leasehold Intangible Personal Property Tax Application for Extension of Time to File Return (Form DR-602G, incorporated by reference in Rule 12C-2.0115, F.A.C.) exceeds the amount of tax due when the return is filed; or

3. A mathematical error on the return, such as the use of an incorrect tax rate or other calculation error, results in an overpayment.

History

• Rulemaking Authority 199.202, 213.06(1) FS. Law Implemented 196.199(2)(b), 199.232, 213.255(2), (3), 215.26(2) FS. History–New 4-17-72, Formerly 12C-2.12, Amended 11-21-91, 5-4-03, 9-28-04, 1-28-08, 5-9-13.

Fla. Admin. Code R. 12C-2.013 Disposition of Taxes

History

• Rulemaking Authority 199.202 FS. Law Implemented 199.202 FS. History–New 4-17-72, Amended 12-20-73, Formerly 12C-2.13, Repealed 11-17-74.

Chapter 12C-3 ESTATE TAX

Fla. Admin. Code R. 12C-3.001 When Return Is to Be Filed and Basis for the Tax

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.02, 198.03, 198.04, 198.05, 198.12, 198.13, 198.14, 198.15, 198.32 FS. History–New 2-19-72, Amended 5-23-77, Formerly 12C-3.01, Amended 1-11-93, 8-25-94, Repealed 12-13-94.

Fla. Admin. Code R. 12C-3.0015 Affidavit – No Florida Estate Tax Due

(1) No Florida estate tax is due and no Florida estate tax return is required to be filed by the personal representative of an estate when the decedent died on or after January 1, 2005.

(2)(a) When the personal representative is not required to file a federal estate tax form (Form 706 or 706-NA), an Affidavit of No Florida Estate Tax Due (Form DR-312, incorporated by reference in Rule 12C-3.008, F.A.C.) may be filed with the clerk of the circuit court in every county where the decedent owned real property to remove any Florida estate tax lien on the decedent’s real property. This affidavit is admissible as evidence that no Florida estate tax is due by the estate.

(b) When the personal representative is required to file a federal estate tax form (Form 706 or 706-NA) and owes no Florida estate tax, an Affidavit of No Florida Estate Tax Due When Federal Return is Required (Form DR-313, incorporated by reference in Rule 12C-3.008, F.A.C.) may be filed with the clerk of the circuit court to remove any Florida estate tax lien on the decedent’s real property. This affidavit is admissible as evidence that no Florida estate tax is due by the estate.

(c) When the decedent died on or after January 1, 2005, the personal representative of an estate is not required to file the affidavits in this subsection for probate proceedings commenced on or after July 1, 2023, or for probate proceedings pending on July 1, 2023, for which an order of final discharge has not been entered.

History

• Rulemaking Authority 198.08, 198.32(2), 213.06(1) FS. Law Implemented 198.02, 198.03, 198.04, 198.05, 198.13, 198.26, 198.32 FS. History–New 12-13-94, Amended 1-22-01, 4-14-09, 1-25-12, 1-20-14, 1-1-24.

Fla. Admin. Code R. 12C-3.002 Resident Decedents Credit for Death Taxes Paid to Other States

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.02, 198.03, 198.04 FS. History–New 2-19-72, Amended 5-23-77, Formerly 12C-3.02, Amended 1-11-93, 8-25-94, Repealed 12-13-94.

Fla. Admin. Code R. 12C-3.0025 Jointly Owned Property

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.02, 198.03, 198.04 FS. History–New 12-13-94, Repealed 1-20-14.

Fla. Admin. Code R. 12C-3.003 Calculation of the Tax upon Estates of Florida Nonresident Decedents and Alien Decedents

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.02 FS. History–New 2-19-72, Formerly 12C-3.03, Amended 1-11-93, 8-25-94, Repealed 12-13-94.

Fla. Admin. Code R. 12C-3.0035 Calculation of Tax upon Resident Decedent Estates

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.02 FS. History–New 12-13-94, Amended 1-22-01, Repealed 1-20-14.

Fla. Admin. Code R. 12C-3.004 Releases

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.03, 198.22 FS. History–New 2-19-72, Amended 9-6-77, Formerly 12C-3.04, Amended 1-11-93, 8-25-94, Repealed 12-13-94.

Fla. Admin. Code R. 12C-3.0045 Calculation of Tax upon Nonresident Decedent Estates

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.03, 198.22 FS. History–New 12-13-94, Amended 1-22-01, Repealed 1-20-14.

Fla. Admin. Code R. 12C-3.005 Limitation of Tax

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented Article VII, Section 5, Florida Constitution 1968, 198.04 FS. History–New 2-19-72, Formerly 12C-3.05, Amended 8-25-94, Repealed 12-13-94.

Fla. Admin. Code R. 12C-3.0055 Calculation of Tax upon Nonresident Alien Decedent Estates

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.04 FS. History–New 12-13-94, Amended 1-22-01, Repealed 1-20-14.

Fla. Admin. Code R. 12C-3.006 Information Confidential

No private person, firm or corporation shall be entitled to receive a copy of or any information relative to the value of any estate or any particulars set forth or disclosed in any report or return required to be filed with the Department under Chapter 198, F.S., without the expressed written consent of a person signing such report or return or their attorney as the same appears in the records of the Department.

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 213.053(1)(e), (2)(a) FS. History–New 2-19-72, Formerly 12C-3.06, Amended 8-25-94, 12-13-94.

Fla. Admin. Code R. 12C-3.007 Interest on Overpayment of Taxes

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.29 FS., Decision of Supreme Court of Florida in case of Mailman v. Green, 111 So. 2d 267. History–New 2-19-72, Formerly 12C-3.07, Repealed 4-14-09.

Fla. Admin. Code R. 12C-3.008 Public Use Forms

(1)(a) The following public-use forms and instructions are employed by the Department in its administration of the Florida estate tax and are hereby adopted by reference.

(b) Copies of these forms are available, without cost, by one or more of the following methods: 1) downloading these forms from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2) DR-312

Affidavit of No Florida Estate Tax Due

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16275)

01/24

(3) DR-313

Affidavit of No Florida Estate Tax Due When Federal Return is Required

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16276)

01/24

(4) F-706

Florida Estate Tax Return (R. 10/13)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-03611)

01/14

History

• Rulemaking Authority 198.08, 198.32(2), 213.06(1) FS. Law Implemented 198.02, 198.03, 198.04, 198.08, 198.13, 198.32(2), (3), FS. History–New 9-26-77, Formerly 12C-3.08, Amended 1-11-93, 8-25-94, 1-22-01, 5-4-03, 10-30-06, 11-6-07, 4-14-09, 6-28-10, 1-25-12, 1-20-14, 1-1-21, 1-1-24.

Fla. Admin. Code R. 12C-3.009 Penalties and Interest

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.15, 198.16, 198.18, 198.37, 198.38, 198.39, 198.40, 213.235 FS. History–New 4-2-78, Formerly 12C-3.09, Amended 1-11-93, 8-25-94, 4-2-00, Repealed 4-14-09.

Fla. Admin. Code R. 12C-3.010 Final Certificate and Nontaxable Certificate Mailing Procedure

(1) When the decedent died prior to January 1, 2005, Section 198.19, F.S., requires that a Final Certificate be issued to the personal representative. However, if an attorney is representing the estate and files the estate tax return, the Final Certificate will be mailed to the attorney, and a copy of the Final Certificate transmittal letter will be sent to the personal representative. Otherwise, the Final Certificate will be mailed to the personal representative. If it is determined that no estate taxes are due to the State of Florida, the Department (upon receipt of a $5.00 fee for each certificate requested) will issue a Nontaxable Certificate to the personal representative, administrator, curator, heirs, devisees, or legatees of the decedent.

(2) For decedents who died on or after January 1, 2005, the Department will not issue a Final Certificate or Nontaxable Certificate to the personal representative of the estate, as defined in Section 198.01(2), F.S. The personal representative may file an Affidavit of No Florida Estate Tax Due (Form DR-312, incorporated by reference in Rule 12C-3.008, F.A.C.) or an Affidavit of No Florida Estate Tax Due When Federal Return is Required (Form DR-313, incorporated by reference in Rule 12C-3.008, F.A.C.), as provided in Rule 12C-3.0015, F.A.C., to evidence that no Florida estate tax liability is due.

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.13, 198.19, 198.32(2) FS. History–New 6-7-78, Formerly 12C-3.10, Amended 1-11-93, 8-25-94, 12-13-94, 4-14-09, 1-20-14.

Fla. Admin. Code R. 12C-3.011 Tax on Generation-Skipping Transfers

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.031, 198.08, 198.155 FS. History–New 8-25-94, Amended 12-13-94, Repealed 1-20-14.

Fla. Admin. Code R. 12C-3.012 Releases

History

• Rulemaking Authority 198.08, 213.06(1) FS. Law Implemented 198.22 FS. History–New 8-25-94, Amended 12-13-94, 1-22-01, 5-4-03, Repealed 1-20-14.

Fla. Admin. Code R. 12C-3.013 Protest Procedures

History

• Rulemaking Authority 72.011, 198.08, 213.06(1), 213.21 FS. Law Implemented 72.011, 198.08, 213.21 FS. History–New 8-25-94, Amended 1-22-01, Repealed 4-14-09.

Division 12 Departmental

Chapter 12-2 ORGANIZATION AND GENERAL INFORMATION

Fla. Admin. Code R. 12-2.001 Department of Revenue

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.03(2), 20.04(1), 20.21, 213.01 FS. History–New 10-21-75, Formerly 12-2.01, Amended 12-18-88, 6-26-96, Repealed 4-5-98.

Fla. Admin. Code R. 12-2.002 Head of the Department of Revenue

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.03(6), 20.05(1)(b), (7), 20.21, 120.53(1)(a), 213.01 FS. History–New 10-21-75, Formerly 12-2.02, Amended 12-18-88, 3-6-91, Repealed 6-26-96.

Fla. Admin. Code R. 12-2.003 Executive Functions

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.05(1)(b), 20.055(1), (4), 20.21, 120.53(1)(a), 213.01, 213.018 FS. History–New 10-21-75, Amended 3-16-80, 3-30-81, Formerly 12-2.03, Amended 12-18-88, 3-6-91, 12-16-91, 1-5-93, Repealed 6-26-96.

Fla. Admin. Code R. 12-2.0031 Administrative Services Program

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21 FS. History–New 6-26-96, Repealed 4-5-98.

Fla. Admin. Code R. 12-2.0032 Child Support Enforcement Program

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21 FS. History–New 6-26-96, Repealed 4-5-98.

Fla. Admin. Code R. 12-2.0034 Property Tax Administration Program

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21 FS. History–New 6-26-96, Repealed 4-5-98.

Fla. Admin. Code R. 12-2.0036 General Tax Administration Program

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21 FS. History–New 6-26-96, Repealed 4-5-98.

Fla. Admin. Code R. 12-2.0038 Information Services Program

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21 FS. History–New 6-26-96, Repealed 4-5-98.

Fla. Admin. Code R. 12-2.004 Divisions

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21(2), (3), 120.53(1)(a), 213.01 FS. History–New 10-21-75, Amended 3-16-80, Formerly 12-2.04, Amended 12-18-88, 3-6-91, 12-16-91, Repealed 6-26-96.

Fla. Admin. Code R. 12-2.005 Division of Administration

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21(2), (3)(a), 120.53(1)(a), 213.01 FS. History–New 10-21-75, Amended 3-16-80, Formerly 12-2.05, Amended 12-18-88, 3-6-91, 12-16-91, Repealed 6-26-96.

Fla. Admin. Code R. 12-2.006 Division of Ad Valorem Tax

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21(2), (3)(b), 120.53(1)(a), 213.01 FS. History–New 10-21-75, Amended 3-16-80, Formerly 12-2.04, Amended 12-18-88, 3-6-91, 12-16-91, Repealed 6-26-96.

Fla. Admin. Code R. 12-2.007 Division of Corporate, Estate and Intangible Tax

History

• Rulemaking Authority 20.21(2), 120.53(1) FS. Law Implemented 20.21(2), 120.53(1) FS. History–New 10-21-75, Formerly 12-2.07, Repealed 3-19-80.

Fla. Admin. Code R. 12-2.008 Division of Sales and Use Tax

History

• Rulemaking Authority 20.21(2), 120.53(1) FS. Law Implemented 20.21(2), 120.53(1) FS. History–New 10-21-75, Amended 8-23-77, Formerly 12-2.08, Repealed 3-19-80.

Fla. Admin. Code R. 12-2.009 Division of Miscellaneous Tax

History

• Rulemaking Authority 20.21(2), 120.53(1) FS. Law Implemented 20.21(2), 120.53(1) FS. History–New 10-21-75, Amended 8-23-77, Formerly 12-2.09, Repealed 3-19-80.

Fla. Admin. Code R. 12-2.0091 Division of Audits

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21(2), (3)(c), 120.53(1)(a), 213.05 FS. History–New 3-16-80, Formerly 12-2.091, Amended 12-18-88, 3-6-91, 12-16-91, Repealed 6-26-96.

Fla. Admin. Code R. 12-2.0092 Division of Collection and Enforcement

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21(2), (3)(d), 120.53(1)(a), 213.05 FS. History–New 3-16-80, Amended 3-30-81, Formerly 12-2.092, Amended 12-18-88, 3-6-91, 12-16-91, Repealed 6-26-96.

Fla. Admin. Code R. 12-2.00922 Division of Information Systems and Services

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21(2), (3)(e), 120.53(1)(a), 213.05 FS. History–New 12-18-88, Amended 3-6-91, Repealed 6-26-96.

Fla. Admin. Code R. 12-2.00924 Division of Taxpayer Assistance

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21(2), (3)(f), 120.53(1)(a), 213.05 FS. History–New 12-18-88, Amended 3-6-91, 12-16-91, Repealed 6-26-96.

Fla. Admin. Code R. 12-2.00926 Division of Tax Processing

History

• Rulemaking Authority 120.53(1)(a), 213.06(1) FS. Law Implemented 20.21(2), (3)(e), 120.53(1)(a), 213.05 FS. History–New 3-6-81, Amended 12-16-91, Repealed 6-26-96.

Fla. Admin. Code R. 12-2.0093 Smoking

History

• Rulemaking Authority 255.27 FS. Law Implemented 255.27 FS. History–New 9-30-80, Formerly 12-2-093, Repealed 12-16-91.

Fla. Admin. Code R. 12-2.0095 Contract Bidding Disputes

History

• Rulemaking Authority 120.53(5) FS. Law Implemented 20.21, 120.53(5) FS. History–New 5-4-87, Repealed 4-5-98.

Fla. Admin. Code R. 12-2.010 General Requirements – Declaratory Statements

History

• Rulemaking Authority 120.53, 120.565 FS. Law Implemented 120.565 FS. History–New 10-21-75, Formerly 12-2.10, Repealed 4-5-98.

Fla. Admin. Code R. 12-2.011 Petition

History

• Rulemaking Authority 120.53, 120.565 FS. Law Implemented 120.565 FS. History–New 10-21-75, Formerly 12-2.11, Repealed 4-5-98.

Fla. Admin. Code R. 12-2.012 Purpose and Use of Declaratory Statement

History

• Rulemaking Authority 120.53, 120.565 FS. Law Implemented 120.565 FS. History–New 10-21-75, Formerly 12-2.12, Repealed 4-5-98.

Fla. Admin. Code R. 12-2.013 Department Disposition

History

• Rulemaking Authority 120.565 FS. Law Implemented 120.565 FS. History–New 10-21-75, Amended 5-10-77, Formerly 12-2.13, Repealed 4-5-98.

Fla. Admin. Code R. 12-2.020 Authority

History

• Rulemaking Authority 120.53(1)(c) FS. Law Implemented 120.53(1), (2), (3) FS. History–New 11-11-92, Repealed 9-19-17.

Fla. Admin. Code R. 12-2.021 Purpose

History

• Rulemaking Authority 120.54(1) FS. Law Implemented 120.53(1), (2), (3) FS. History–New 11-11-92, Repealed 5-9-13.

Fla. Admin. Code R. 12-2.022 Public Inspection and Copying

History

• Rulemaking Authority 120.53(1)(c), 213.06(1), 409.2557(3), 409.256(17), 409.2563(16) FS. Law Implemented 120.53(2)(a) FS. History–New 11-11-92, Amended 3-7-07, Repealed 11-12-20.

Fla. Admin. Code R. 12-2.023 Final Orders Required to be Indexed

History

• Rulemaking Authority 120.53(1)(c), 213.06(1), 409.2557(3)(p), 409.256(17), 409.2563(16) FS. Law Implemented 120.53(2) FS. History–New 11-11-92, Amended 3-7-07, Repealed 11-12-20.

Fla. Admin. Code R. 12-2.024 Listing of Final Orders

History

• Rulemaking Authority 120.533, 213.06(1) FS. Law Implemented 120.53(2) FS. History–New 11-11-92, Repealed 11-12-20.

Fla. Admin. Code R. 12-2.025 Designation of Official Reporter

History

• Rulemaking Authority 120.53(1)(c), 213.06(1) FS. Law Implemented 120.53(4) FS. History–New 11-11-92, Amended 3-7-07, Repealed 11-12-20.

Fla. Admin. Code R. 12-2.026 Numbering of Final Orders

History

• Rulemaking Authority 120.53(1)(c), 213.06(1) FS. Law Implemented 120.53(2), (3), (4), 409.256, 409.2563 FS. History–New 11-11-92, Amended 3-7-07, Repealed 11-12-20.

Fla. Admin. Code R. 12-2.027 System for Indexing Final Orders

History

• Rulemaking Authority 120.533(1), 213.06(1) FS. Law Implemented 120.53(2), (3), (4) FS. History–New 11-11-92, Repealed 5-9-13.

Fla. Admin. Code R. 12-2.028 Maintenance of Final Orders

History

• Rulemaking Authority 120.533(1), 213.06(1) FS. Law Implemented 119.041(2) FS. History–New 11-11-92, Repealed 5-9-13.

Chapter 12-3 GENERAL; PROCEDURE

Fla. Admin. Code R. 12-3.001 General; Procedure

History

• Rulemaking Authority 120.53(1) FS. Law Implemented 120.53(1), 120.54(9) FS. History–New 1-5-76, Amended 8-26-81, Formerly 12-3.01, Repealed 4-5-98.

Fla. Admin. Code R. 12-3.0012 Definitions

The following terms apply to the Department’s administration of the programs delegated to it by statute. These terms shall have the meaning given to them in this section, except where the context clearly indicates a different meaning.

(1)(a) The phrase “commence an audit” means when, subsequent to the issuance of a Notification of Intent to Conduct an Audit (DR-840) or similar notification, the Department performs an audit entrance interview.

(b) The phrase “audit entrance interview” means when any one of the following actions first occurs:

1. When the Department contacts the taxpayer to explain and discuss the specific audit plan or to discuss the nature of the taxpayer’s business operations; or

2. When the Department requests that specific books, records, documents, or other information be compiled, provided, or made available to the Department, other than the books, records, documents, or other information which were requested in the attachment to the DR-840; or

3. When the Department begins reviewing the accounts, books, or records of the taxpayer.

(2) “Adequate records” means books, accounts, and other records sufficient to permit a reliable determination of a tax deficiency or overpayment. Incomplete records can be determined to be adequate.

(a) To be sufficient to make a reliable determination, adequate records, including supporting documentation, must be:

1. Accurate, that is, the records must be free from material error;

2. Inclusive, that is, the records must capture transactions that are needed to determine a tax deficiency or overpayment;

3. Authentic, that is, the records must be worthy of acceptance as based on fact; and,

4. Systematic, that is, the records must organize transactions in an orderly manner.

(b) The nature of the taxpayer’s business, the nature of the industry, materiality, third-party confirmations and other corroborating evidence such as related supporting documentation, and the audit methods that are suitable for use in the audit, will be used to establish that the taxpayer has adequate records.

(c) Nothing herein is intended to render any portion of Part II, rule Chapter 12-24, F.A.C., inapplicable but rather this subsection prescribes a standard of adequacy of records for purposes of determining a tax deficiency or overpayment by the Department.

(d) Section 212.12(6)(b), F.S., does not allow the Department to use a sample to project an overpayment when the records are inadequate.

(3) “Voluminous records” means records maintained by the taxpayer that are so numerous and extensive that their provision by the taxpayer and review by the Department would not be practical under the circumstances of the time, space, and other logistical constraints of the taxpayer and the Department.

History

• Rulemaking Authority 212.12(6), 213.06(1) FS. Law Implemented 212.12(6), 213.345, 213.35 FS. History–New 4-2-00, Amended 10-1-03, 12-29-25.

Fla. Admin. Code R. 12-3.0015 Interest Applicable to Unpaid Tax Liabilities or Amounts Not Timely Refunded

(1) The provisions of Section 213.235, F.S., and this rule apply to all taxes listed in Section 213.05, F.S., except those taxes imposed by chapter 220, F.S. The interest rate provisions of Rule 12C-1.343, F.A.C., apply to the taxes imposed by Chapter 220, F.S.

(2)(a) The interest rate will be determined pursuant to Section 213.235, F.S., for tax payment deficiencies that arise for taxes due on or after January 1, 2000.

(b) The interest rate which applies to a specific tax payment deficiency may fluctuate while the deficiency continues, due to the redetermination of the interest rate every six months pursuant to Section 213.235, F.S.

(c) The interest imposed by Section 213.255, F.S., will be calculated pursuant to Section 213.235, F.S., except that the interest rate applied to a refund cannot exceed 11 percent annually. The provisions of Section 213.255, F.S., and rule Chapters 12-6 and 12-26, F.A.C., govern the circumstances under which interest is due from and paid by the Department on refunds.

(3)(a) The daily rate of interest computed pursuant to Section 213.235, F.S., and this rule use a year based on 365 days, and 366 days in a leap year.

(b) This daily rate will be carried out to nine decimal places.

(4)(a) The interest rate determined pursuant to Section 213.235, F.S., is subject to change on January 1st and July 1st of each year.

(b) The applicable interest rate for any 6-month period can be obtained by any of the following methods:

1. Accessing the Department’s website at floridarevenue.com/taxes/rates.

2. Calling Taxpayer Services during regular business hours at (850)488-6800.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.235, 213.255 FS. History–New 4-2-00, Amended 1-25-12, 12-29-25.

Fla. Admin. Code R. 12-3.0017 Adoption of Materials That Contain Departmental Procedures

(1) The following subsections of this rule describe materials and publications which contain procedures used by the Department in performing its statutory responsibilities, and these materials and publications are hereby incorporated by reference in this rule. A copy of these materials and publications may be obtained by:

(a) Writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112, or

(b) Calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or

(c) Downloading selected forms from the Department’s website at floridarevenue.com/forms. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(2) GT400514, Basic Electronic Auditing Manual (e-Auditing) (n. 9/02), which instructs the Department’s auditors on electronic audit techniques.

(3) GT400116, Stratified Statistical Sampling Manual (r. 3/02), which instructs the Department’s auditors on how to perform a stratified statistical sample of a taxpayer’s books and records.

(4) GT300034, Auditing in an Electronic Environment (e-Auditing) and Stratified Statistical Sampling (r. 5/02), which explains to audit candidates (taxpayers) the benefits of electronic auditing and what techniques the Department can use.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 212.12, 212.13, 213.35 FS. History–New 10-1-03, Amended 1-8-19, 12-29-25.

Fla. Admin. Code R. 12-3.002 Procedure for Effecting Service of Recommended Orders and Presenting Exceptions Thereto

History

• Rulemaking Authority 120 FS. Law Implemented 20.05, 120.53(1)(c), 120.57(1), (2) FS. History–New 4-16-78, Amended 9-2-79, Formerly 12-3.02, Repealed 4-5-98.

Fla. Admin. Code R. 12-3.003 Procedure for Conduct of Proceedings Before Head of Department

History

• Rulemaking Authority 120 FS. Law Implemented 20.05, 120.53(1)(c), 120.57(1), (2) FS. History–New 4-16-78, Amended 9-2-79, 8-26-81, Formerly 12-3.03, Repealed 4-5-98.

Fla. Admin. Code R. 12-3.004 Authority of Head of Department Respecting Modification or Rejection of Findings of Fact and Conclusions of Law

History

• Rulemaking Authority 120 FS. Law Implemented 20.05, 120.53(1)(c), 120.57(1), (2) FS. History–New 4-16-78, Amended 9-2-79, Formerly 12-3.04, Repealed 4-5-98.

Fla. Admin. Code R. 12-3.005 Authority of Head of Department to Establish Content of Final Order

History

• Rulemaking Authority 120 FS. Law Implemented 20.05, 120.53(1)(c), 120.57(1), (2) FS. History–New 4-16-78, Amended 9-2-79, Formerly 12-3.05, Repealed 4-5-98.

Fla. Admin. Code R. 12-3.006 Designation of Official Reporter to Publish and Index Subject Matter Relating to Agency Orders

History

• Rulemaking Authority 120.53(1)(c), (2)(a), 213.06(1) FS. Law Implemented 20.05, 120.53(1), (2) FS. History–New 2-14-80, Amended 8-26-81, Formerly 12-3.06, Repealed 5-9-13.

Fla. Admin. Code R. 12-3.007 Delegation of Authority

(1) Authority to take the following action is hereby delegated by the Governor and Cabinet acting as the head of the Department of Revenue to the Executive Director of the Department or the Executive Director’s designee:

(a) To take all actions relating to the:

1. Assessment, collection, enforcement, audit, adjustment, and refund of all taxes, fees, and assessments for which the Department of Revenue (Department) has been given control and administrative responsibility pursuant to Section 213.05, F.S.; and,

2. Administration of the state’s child support enforcement program pursuant to Section 409.2557, F.S., and in accordance with Title IV-D of the Social Security Act, 42 U.S.C., ss. 651 et seq.

3. Administration of ad valorem tax issues, as provided in Chapters 192 through 197 and 200, F.S.

(b) To perform all administrative activities required to supervise, direct, conduct, and administer the day-to-day duties of the Department as authorized by law or by rules adopted by the Governor and Cabinet, or in directives issued by the Governor and Cabinet acting as the head of the Department.

(c) To take any action concerning planning and budgeting for the Department, as authorized pursuant to Chapter 216, F.S., or other laws, or rules adopted by the Governor and Cabinet, or in directives issued by the Governor and Cabinet acting as the head of the Department.

(d) 1. To negotiate, execute, and enter into contracts and agreements, as required, for operation of the Department, or to carry out programs approved by the Legislature or Governor and Cabinet, except awards of commodity contracts by the Department of Management Services.

2. To contract for consultant and professional services up to $100,000. However, selection of consultant and professional services, other than sole source, shall be by procedures set forth in the Consultants Competitive Negotiations Act or other competitive selection process established by rule.

3. To enter into agreements with other federal, state, and local governmental agencies when authorized by law.

(e) To designate appropriate officials or employees to act as custodian of the records of the Department, and to accept service of process on behalf of the Department and the Executive Director in accordance with law.

(f)1. To bring suit in the name of the Department and in consultation with the Attorney General, or to defend suit in the name of the Department.

2. To settle claims, actions, causes of action, and legal proceedings brought against the Department or its employees when acting within the scope of their employment.

(g) To accept donations and gifts of property or grants of money on behalf of the Department in compliance with the law, provided such gifts are unencumbered, and have no impact on any other agency of the state.

(h) To act on behalf of the agency in carrying out the provisions of Chapter 120, F.S., unless prohibited by law or by directives issued by the Governor and Cabinet acting as the head of the Department. This delegation specifically includes, but is not limited to, the following:

1.a.(I) To publish a notice of intended rulemaking, after approval of such proposed notice by the Governor and Cabinet pursuant to Section 120.54(1)(k), F.S.

(II) To certify that a proposed rule has been approved by the Governor and Cabinet pursuant to Section 120.54(3)(e)1., F.S.

(III) To file with the Department of State the approved rule pursuant to Section 120.54(3)(e)1., F.S.

b. To explain in writing when appropriate why a rule development workshop is unnecessary.

2. To issue declaratory statements pursuant to Section 120.565, F.S.

3. To take final agency action in any ad valorem tax proceedings within the scope of the Department’s authority.

4. To take final agency action in any tax matters arising pursuant to Sections 120.57(1) and (2), F.S., where the amount in controversy does not exceed $500,000 in tax.

5. To take final agency action in any child support enforcement proceeding within the scope of the Department’s authority.

6. To provide methods for making available a description of the agency’s organization and general course of its operations, pursuant to Section 120.54(5)(b)7., F.S.

7. To issue an immediate final order pursuant to Section 120.569(2)(n), F.S., that states the particular facts supporting a finding that there is an immediate danger to the public health, safety, or welfare.

8. To issue a written statement pursuant to Section 120.57(3)(c), F.S., explaining why a bid solicitation process or contract award process must be continued without delay due to an immediate and serious danger to the public health, safety, or welfare.

9. Pursuant to Section 120.63(1)(a), F.S., to apply on behalf of the Department and certify to the Administration Commission that a proceeding required by Chapter 120, F.S., conflicts with a provision of federal law or rule.

10. To prepare, certify, and file the rule review report mandated by Section 120.74(2), F.S., with the presiding officers and affected standing committees of the Florida Legislature.

(i) To approve category to category transfers of budgets of property appraisers and tax collectors consistent with law.

(j) To grant extensions of time for good cause for completion of ad valorem tax rolls.

(k)1. To issue tax assessments, tax warrants, assignments of tax warrants, satisfaction of tax warrants, and such other documents necessary for orderly administration of the tax laws administered and supervised by the Department of Revenue.

2. To approve conclusive written closing agreements resulting in a reduction in tax of $500,000 or less, with any taxpayer to settle or compromise the taxpayer’s liability for tax, penalty, or interest assessed under any of the chapters specified in Section 72.011(1), F.S., as provided in Section 213.21, F.S.

(l) To issue technical assistance advisements, upon written request, stating the Department’s position on the tax consequences of a stated transaction or event, as provided in Section 213.22, F.S.

(m) To waive the requirements of Section 72.011(3)(b), F.S., providing one of the following circumstances is met:

1. When the financial resources of the taxpayer are sufficient to ensure that any final judgment upholding an assessment of tax, penalty, and interest will be satisfied.

2. When payment into the registry of the court or the obtaining of a surety bond would be manifestly unjust because of the circumstances of the assessment or of the taxpayer.

(2) A brief summary of the final disposition of the following actions taken by the Executive Director as authorized by this rule shall be included in the quarterly report submitted by the Department:

(a) Any action to settle or compromise tax or penalty or interest which reduces such tax or penalty or interest by more than $50,000;

(b) All activities where the Department takes final agency action on ad valorem tax proceedings, as provided above;

(c) All purchases over $100,000 which are not made from a state contract established by the Department of Management Services; and,

(d) All Title IV-D State Plan amendments.

History

• Rulemaking Authority 213.06(1), 213.21(5), 409.2557(3) FS. Law Implemented 20.05, 20.21, 72.011(1), (3), 120.54, 120.565, 120.569(2), 120.57(1), (2), (3), 120.63(1), 120.74(2), 213.05, 213.21, 213.22, 409.2557 FS. History–New 7-14-80, Amended 12-31-81, 8-29-85, 11-6-85, Formerly 12-3.07, Amended 5-18-86, 12-20-92, 12-6-98, 4-26-10, 7-28-15, 1-1-24.

Fla. Admin. Code R. 12-3.008 Recordation of Hearings

History

• Rulemaking Authority 120 FS. Law Implemented 120.57(1)(b)5., (2)(b) FS. History–New 8-26-81, Formerly 12-3.08, Repealed 4-5-98.

Fla. Admin. Code R. 12-3.009 Final Orders

History

• Rulemaking Authority 120 FS. Law Implemented 120.57, 120.59 FS. History–New 8-26-81, Formerly 12-3.09, Repealed 4-5-98.

Fla. Admin. Code R. 12-3.010 Record on Appeal

History

• Rulemaking Authority 120 FS. Law Implemented 120.57(1)(b)5., (2)(b) FS. History–New 8-26-81, Formerly 12-3.10, Repealed 4-5-98.

Fla. Admin. Code R. 12-3.011 Department Personnel Disciplinary Procedures and Standards

History

• Rulemaking Authority 213.06(1), 409.2557(3) FS. Law Implemented 20.21(2)(a), 110.201(2), 110.227 FS. History–New 7-27-99, Amended 10-18-04, Repealed 12-18-07.

Fla. Admin. Code R. 12-3.012 Compensation to Third-Party Recordkeepers

(1) SCOPE. This rule establishes the rates and conditions for payments to reimburse reasonably necessary costs directly incurred by third-party recordkeepers in searching for, reproducing, or transporting books, records, written materials, and electronically recorded information required to be produced under a subpoena duces tecum served by the Department for communications services tax or sales and use tax.

(2) DEFINITIONS. For purposes of this rule, the following definitions apply:

(a) “Subpoena” means a legal document that requires the attendance and testimony of a witness.

(b) “Subpoena duces tecum” means a legal document that requires the production of specified books, records, written materials, and electronically recorded information and may require the attendance and testimony of a witness.

(c) “Third-party recordkeeper” means any person or entity defined as a “third-party recordkeeper” under Section 202.36(4)(b)3. or 212.14(7)(b)3., F.S.

(3) COMPENSATION.

(a) Any third-party recordkeeper who receives a subpoena issued by the Department will be compensated for costs incurred for appearing to testify at the rate of $5 for each day of actual attendance at a proceeding conducted by the Department, plus 6 cents per mile for the actual distance traveled to and from the location of the proceeding. The actual distance traveled will be computed based upon the official mileage used for state employee travel, as provided in Section 112.061, F.S.

(b)1. Any third-party recordkeeper who receives a subpoena duces tecum will be compensated for costs directly incurred to produce, search for, reproduce, and transport the documents requested at the following rates:

a. $10 per hour for each hour consumed in producing, searching for, and copying such records;

b. 10 cents per page for reproducing such records; plus

c. The actual costs incurred to ship or mail the documents to the Department.

2. Compensation for costs made pursuant to this paragraph is in addition to any mileage allowance and fees paid under paragraph (a).

(c)1. To request compensation, a third-party recordkeeper is required to submit an invoice to the employee of the Department who served the subpoena duces tecum. The invoice must contain:

a. The third-party recordkeeper’s name, address, and federal employer identification number;

b. The case name and number appearing on the subpoena or subpoena duces tecum;

c. The name of the taxpayer to whom the records pertain;

d. The name of the Department employee who served the subpoena or subpoena duces tecum; and,

e. An itemized listing of the incurred costs being submitted for compensation.

2. In order to receive compensation from the state, any third-party recordkeepers who receive a subpoena or subpoena duces tecum must keep adequate records of research time, the actual distance traveled to and from the location of the proceeding, shipping and mailing costs, and the number of reproductions made, as applicable.

History

• Rulemaking Authority 202.36(4)(h), 212.14(7)(h), 213.06(1) FS. Law Implemented 202.36(4), 212.14(7), FS. History‒New 7-31-03.

Chapter 12-6 INFORMAL PROTEST AND APPEAL PROCEDURE

Fla. Admin. Code R. 12-6.001 Application of Rules

(1) The rules set forth in this chapter are applicable to all revenues assessed and collected by the Department pursuant to Section 213.05, F.S.

(2)(a) The Department of Revenue encourages taxpayers to attempt to resolve any notice, billing, assessment, or refund denial through discussions with the Department, whether in person, in writing, or by telephone, prior to initiating the informal protest procedures contained in this chapter. This will allow the Department and the taxpayer to address possible miscommunication, misunderstanding, or Department or taxpayer error.

(b) Notices issued by the Department pursuant to this rule chapter will be sent to the taxpayer, unless the taxpayer submits a completed Power of Attorney and Declaration of Representative (Form DR-835, incorporated by reference in Rule 12-6.0015, F.A.C.) which instructs the Department as to whom the taxpayer wants these notices to be sent. A notice is issued when the notice is created and dated. Notices will be sent to the taxpayer or authorized representative by United States Postal Service to the last known mailing address of the taxpayer or authorized representative. Notices of Proposed Assessment and Notices of Proposed Refund Denial may also be sent by email or fax to the last known email address or fax number with the affirmative consent of the taxpayer or authorized representative.

(c)1. If this chapter provides for a specific number of consecutive calendar days within which a taxpayer or the Department must act, the expiration of such period will not occur on a Saturday, Sunday, or legal holiday. For purposes of this chapter, the term “legal holiday” shall mean a holiday that is observed by state agencies as a legal holiday as this term is defined in Section 110.117, F.S. Instead, such specific number of consecutive calendar days will expire on the next successive day that is not a Saturday, Sunday, or legal holiday.

2. For the purposes of this chapter, “postmark date” shall include the date on which a taxpayer delivers a document discussed in these rules to an express service or delivery service for delivery to the Department.

(d) This chapter does not apply to the formal proceedings governed by Sections 120.569 and 120.57, F.S.

(3)(a) For the purposes of the extensions of time authorized in Rules 12-6.002, 12-6.003, 12-6.0033, 12-6.030 and 12-6.032, F.A.C., a taxpayer’s request for an extension will be granted, unless the Department determines that the request should be denied. A request for an extension will be denied when it is apparent from the best information available to the Department that: the taxpayer does not intend to comply with the requirements of the rule; or, the taxpayer intends to delay the procedures established by the rule; or, there is significant endangerment to the revenues involved in the protest. The Department will notify the taxpayer in writing of such determination, and such notification will grant the taxpayer 10 consecutive calendar days to comply with the rule’s requirements.

(b) For the purposes of any joint agreement to extend the time to conduct a conference authorized in Rule 12-6.0023 or 12-6.030, F.A.C., a taxpayer’s request to schedule the conference after the 40-day period will be granted, unless the Department determines that the request should be denied. A request will be denied when it is apparent from the best information available to the Department that: the taxpayer does not intend to comply with the requirements of the rule; or, the taxpayer intends to delay the procedures established by the rule; or, there is significant endangerment to the revenues involved in the protest. The Department will notify the taxpayer in writing of such determination, and such notification will grant the taxpayer 10 consecutive calendar days to comply with the rule’s requirements.

History

• Rulemaking Authority 72.011(2), 213.06(1), 213.21(1) FS. Law Implemented 72.011, 213.0537, 213.21(1) FS. History–New 10-8-81, Formerly 12-6.01, Amended 3-6-03, 1-1-23.

Fla. Admin. Code R. 12-6.0015 Public Use Forms

The following form is employed by the Department in its dealings with the public. This form is hereby incorporated by reference in this rule. Copies of this form are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

DR-835

Power of Attorney and Declaration of Representative (R. 10/11)

http://www.flrules.org/Gateway/reference.asp?No=Ref-00810

01/12

PART II PROTEST OF PROPOSED ASSESSMENTS

History

• Rulemaking Authority 213.06(1), 213.21(1) FS. Law Implemented 72.011(2), 119.071(5), 213.21(1) FS. History–New 3-6-03, Amended 4-5-07, 1-27-09, 6-28-10, 1-25-12, 12-29-25.

Fla. Admin. Code R. 12-6.002 Conference Procedures for Notices of Intent to Make Audit Changes

(1)(a) Except in cases of jeopardy assessments, estimated assessments, refund denials, or where review of the taxpayer’s books and records results in no liability due to the state or no refundable amount due to the taxpayer, the Department will, upon completion of an audit, issue a Notice of Intent to Make Audit Changes. The taxpayer shall have 30 consecutive calendar days after the date of issuance on the Notice of Intent to Make Audit Changes to mail or fax a written request for a conference to the office address or fax number on the Notice.

(b) If the Department issues a Revised Notice of Intent to Make Audit Changes, the taxpayer shall have 30 consecutive calendar days after the date of issuance on each Revised Notice of Intent to Make Audit Changes to mail or fax a written request for a conference to the office address or fax number on the revised notice.

(c) A request for a conference should be made directly to the office designated on the Notice of Intent to Make Audit Changes or the Revised Notice of Intent to Make Audit Changes. In order for the taxpayer’s request to be considered timely, the request must be postmarked or faxed within 30 consecutive calendar days from the date of issuance on the Notice of Intent to Make Audit Changes or the Revised Notice of Intent to Make Audit Changes.

(d) Requests postmarked or faxed more than 30 consecutive calendar days after the date of issuance on the Notice of Intent to Make Audit Changes or the Revised Notice of Intent to Make Audit Changes will be deemed late filed and shall result in forfeiture of the taxpayer’s rights to such conference, unless the taxpayer has timely secured a written extension of time within which to file a request for a conference.

(2)(a) A taxpayer may request an extension of time in which to request a conference by mailing or faxing a written request to the office address or fax number designated on the Notice of Intent to Make Audit Changes or Revised Notice of Intent to Make Audit Changes, prior to the expiration of the period within which a conference must be requested. Each extension of time will be for 30 consecutive calendar days. Within a 30 consecutive calendar day extension period, the taxpayer may submit a request in writing to the office address or fax number designated on the Notice of Intent to Make Audit Changes or Revised Notice of Intent to Make Audit Changes for an additional 30 consecutive calendar day extension within which to request a conference.

(b) Failure to mail or fax a written request for a conference within the 30 consecutive calendar day extension period, or to mail or fax a written request for an additional 30 consecutive calendar day extension within a pending extension period, shall result in forfeiture of the taxpayer’s rights to such conference.

(3) If a conference is requested, it will be held at the earliest convenience of both the taxpayer and the Department, but it will not be held more than 90 consecutive calendar days after the date of issuance on the Notice of Intent to Make Audit Changes or Revised Notice of Intent to Make Audit Changes, unless specifically agreed to in writing by the Department.

(4) If a request for a conference is not timely made, the right to seek a conference is waived. Failure to request a conference will not preclude instituting the protest procedures provided in Rule 12-6.003, F.A.C.

(5) If it is jointly determined by the Department’s representative and the taxpayer that an issue(s) cannot be resolved at the local level, to expedite ultimate resolution of the issue(s), the 30 consecutive calendar days provided under subsection (1) of this rule may be waived by the taxpayer.

(6) A Notice of Proposed Assessment will be issued by the Department if:

(a) An agreement is not reached after the conference held pursuant to this section; or

(b) The taxpayer has not timely filed a written request for a conference; or

(c) The taxpayer has not timely filed a written request for an extension of time for requesting a conference; or

(d) The taxpayer has waived his or her right to a conference pursuant to this section.

History

• Rulemaking Authority 213.06(1), 213.21(1) FS. Law Implemented 213.21(1) FS. History–New 10-8-81, Amended 12-31-81, Formerly 12-6.02, Amended 8-10-92, 3-6-03.

Fla. Admin. Code R. 12-6.0023 Conference Procedures for Delinquency Notices or Billings

(1)(a) After issuance of a delinquency notice or billing by the Department, the taxpayer may request a conference if an assessment has not been issued. A request for a conference shall be made by mailing, telephoning, or faxing the request directly to the address, telephone number, or fax number of the office designated on the delinquency notice or billing within 20 consecutive calendar days of the date of issuance on the delinquency notice or billing. In order for the taxpayer’s request to be considered timely, the request must be postmarked, telephoned, or faxed within 20 consecutive calendar days from the date of issuance on the delinquency notice or billing.

(b) Requests postmarked, telephoned, or faxed more than 20 consecutive calendar days after the date of issuance on the delinquency notice or billing will be deemed late filed and shall result in forfeiture of the taxpayer’s rights to such conference, unless the taxpayer has timely secured a written extension of time within which to file a request for a conference.

(2)(a) A taxpayer may request an extension of time in which to request a conference pursuant to subsection (1) if the request for an extension is received by the office designated on the delinquency notice or billing prior to the expiration of the period within which a conference must be requested. Each extension of time will be for 30 consecutive calendar days. Within a 30 consecutive calendar day extension period, the taxpayer may submit a request in writing to the office address or fax number designated on the delinquency notice or billing for an additional 30 consecutive calendar day extension within which to request a conference.

(b) Failure to mail, telephone, or fax a request for a conference within the 30 consecutive calendar day extension period, or failure to contact the Department, or failure to request an additional 30 consecutive calendar day extension within a pending extension period, shall result in forfeiture of the taxpayer’s rights to such conference.

(3) If a conference is requested, it will be held at the earliest convenience of both the taxpayer and the Department, but it will not be held more than 40 consecutive calendar days after the date of issuance on the delinquency notice or billing, unless specifically agreed to in writing by the Department.

(4) If an agreement is not reached as a result of the conference, or if no request is made for a conference, or if a request is not timely made for a conference, an assessment will be issued, and the taxpayer may file a protest under the procedures provided in Rule 12-6.0033, F.A.C.

History

• Rulemaking Authority 213.06(1), 213.21(1) FS. Law Implemented 72.011(2), 213.21(1) FS. History–New 7-1-88, Amended 8-10-92, 3-6-03.

Fla. Admin. Code R. 12-6.003 Protest of Notices of Proposed Assessment Issued by the Department Which Result From an Audit

(1)(a) A taxpayer may secure review of a Notice of Proposed Assessment by implementing the provisions of this section.

(b) To secure review of a Notice of Proposed Assessment, a taxpayer must file a written protest postmarked or faxed within 60 consecutive calendar days (150 consecutive calendar days if the notice is addressed to a person outside the United States) from the date of issuance on the notice.

(c) Protests postmarked or faxed more than 60 consecutive calendar days (150 consecutive calendar days if the Notice of Proposed Assessment is addressed to a person outside the United States) after the date of issuance on the notice will be deemed late filed, and the proposed assessment becomes final for purposes of Chapter 72, F.S., upon the expiration of 60 consecutive calendar days (150 consecutive calendar days if the notice is addressed to a person outside the United States) after the date of issuance on the notice, unless the taxpayer has timely secured a written extension of time within which to file a protest.

(d)1. A taxpayer may request an extension of time for filing a protest by mailing or faxing a written request to the address or fax number designated on the Notice of Proposed Assessment. To be considered timely, the request must be postmarked or faxed within 60 consecutive calendar days (150 consecutive calendar days if the notice is addressed to a person outside the United States) from the date of issuance on the notice. Each extension of time will be for 30 consecutive calendar days. Within a 30 consecutive calendar day extension period, the taxpayer may submit a request in writing to the address or fax number designated on the notice for an additional 30 consecutive calendar day extension within which to submit a written protest.

2. Failure to mail or fax the written protest or failure to mail or fax a written request for an additional extension within a 30 consecutive calendar day extension period will result in forfeiture of the taxpayer’s rights to the proceedings provided by this rule and the proposed assessment will become a final assessment for purposes of Chapter 72, F.S., at the expiration of the extended filing period.

(2)(a) The protest must be mailed or faxed to the address or fax number designated on the Notice of Proposed Assessment and include:

1. The taxpayer’s name, address, telephone number, federal taxpayer identifying number, and audit number.

2. The tax type, the periods, and the dollar amount of tax, interest, or penalty protested.

3. A list of the unagreed items.

4. A statement of facts and a description of any additional information not previously available that supports the list of unagreed items.

5. A statement explaining the law or other authority on which the taxpayer’s position is based.

6. A copy of the Notice of Proposed Assessment.

7. A statement whether oral presentation and argument are requested.

(b)1. If the protest does not contain this required information, the taxpayer will be notified in writing that the required information must be submitted within 15 consecutive calendar days. Within this 15 consecutive calendar day period, the taxpayer may submit a request in writing at the address or fax number listed on the written notification for an additional 15 consecutive calendar days within which to submit this required information. Within the 15 consecutive calendar day extension period, the taxpayer may submit a request in writing for an additional 15 consecutive calendar day extension within which to submit this required information.

2. Failure to submit this information or to request an additional 15 consecutive calendar day extension within either the original 15 consecutive calendar day period or an additional 15 consecutive calendar day extension period will result in issuance of a written dismissal of the protest and forfeiture of the taxpayer’s right to the proceedings provided by this rule.

3. If the taxpayer either fails to submit the required information or fails to request an extension of time within which to submit the required information, the proposed assessment will become a final assessment for purposes of Chapter 72, F.S., on the later of:

a. The date a 15 consecutive calendar day period expires pursuant to this rule; or

b. The expiration of 60 consecutive calendar days after the date of issuance on the Notice of Proposed Assessment.

(3)(a) Upon receipt of a complete, timely filed written protest, Informal Dispute Resolution will review the protest and may require the office originating the Assessment to provide a written explanation, report, or narrative setting forth the basis for the Assessment. A copy of any explanation, report, or narrative provided by the originating office pursuant to this sub-paragraph shall be given to the taxpayer, if such document is disclosable pursuant to applicable law. If requested by the taxpayer, an opportunity for submission of additional information and an oral conference will be provided. Conferences are conducted informally in Tallahassee, Florida, and no transcript of the proceedings will be made by the Department.

(b) If a protest is timely filed, Informal Dispute Resolution will issue a Notice of Decision (NOD). The NOD shall become a final assessment for purposes of Chapter 72, F.S., as of the date of issuance on the NOD, unless the taxpayer timely files a petition for reconsideration of the NOD.

(4)(a)1. A taxpayer shall have 30 consecutive calendar days from the date of issuance on the NOD to file a petition for reconsideration.

2. Petitions for reconsideration must be in writing, postmarked or faxed to the address or fax number stated on the NOD, and must contain additional facts or arguments in support of the taxpayer’s position.

3. The Department will not grant an extension of time for filing a petition for reconsideration.

(b)1. If the petition for reconsideration does not contain this required information, the taxpayer will be notified in writing by Informal Dispute Resolution that the required facts or arguments must be submitted within 15 consecutive calendar days. Within this 15 consecutive calendar day period, the taxpayer may submit a request in writing to Informal Dispute Resolution for an additional 15 consecutive calendar day extension within which to submit this required information. Within a 15 consecutive calendar day extension period, the taxpayer may submit a request in writing to Informal Dispute Resolution for an additional 15 consecutive calendar day extension within which to submit this required information.

2. Failure to submit this information or to request an additional 15 consecutive calendar day extension within either the original 15 consecutive calendar day period or an additional 15 consecutive calendar day extension period will result in issuance of a Notice of Reconsideration (NOR) that dismisses the petition for reconsideration and sustains the NOD. The NOR will become a final assessment for purposes of Chapter 72, F.S., as of the date of issuance on the NOR.

(c) If a petition for reconsideration is timely filed, the Department will issue a Notice of Reconsideration (NOR). The NOR will become a final assessment for purposes of Chapter 72, F.S., as of the date of issuance on the NOR.

(5) Procedures outlined in this section shall be for investigative purposes as specified in Section 120.57(5), F.S.

History

• Rulemaking Authority 72.011(2), 213.06(1), 213.21(1) FS. Law Implemented 72.011(2), 213.21(1) FS. History–New 12-31-81, Formerly 12-6.03, Amended 7-1-88, 3-6-03, 1-19-15, 2-20-25.

Fla. Admin. Code R. 12-6.0033 Protest of Assessments Issued by the Department Regarding Tax Returns, Other Required Filings, and Billings

(1)(a) A taxpayer may secure review of an assessment issued by the Department regarding tax returns, other required filings, and billings by implementing the provisions of this section. When a taxpayer has pursued review under the provisions of either Rule 12-6.002 or 12-6.003, F.A.C., or both, or has failed to comply with the time limitations or has exhausted the review rights in those rules, the taxpayer shall not have the right to pursue review under this section. The assessment procedure under this rule and review of such assessments regarding tax returns, other required filings, and departmental billings shall not preclude an audit of taxpayer books and records, and shall not preclude audit assessments or other assessments for tax deficiency.

(b) To secure review of an assessment regarding tax returns, other required filings, and billings a taxpayer must file a written protest postmarked or faxed within 20 consecutive calendar days (150 consecutive calendar days if the assessment is addressed to a person outside the United States) from the date of issuance on the assessment.

(c) Protests postmarked or faxed more than 20 consecutive calendar days (150 consecutive calendar days if the assessment is addressed to a person outside the United States) after the date of issuance on the assessment will be deemed late filed, and the assessment becomes final for purposes of Chapter 72, F.S., upon the expiration of 20 consecutive calendar days (150 consecutive calendar days if the assessment is addressed to a person outside the United States) after the date of issuance on the assessment, unless the taxpayer has timely secured a written extension of time within which to file a protest.

(d)1. A taxpayer may request an extension of time for filing a protest by mailing or faxing a written request to the address or fax number designated on the assessment. In order for the taxpayer’s request to be considered timely, the request must be postmarked or faxed within 20 consecutive calendar days (150 consecutive calendar days if the assessment is addressed to a person outside the United States) from the date of issuance on the assessment. Each extension of time will be for 15 consecutive calendar days. Within a 15 consecutive calendar day extension period, the taxpayer may submit a request in writing to the address or fax number designated on the assessment for an additional 15 consecutive calendar day extension within which to submit a written protest.

2. Failure to mail or fax the written protest or failure to mail or fax a written request for an additional extension within a 20 consecutive calendar day extension period shall result in forfeiture of the taxpayer’s rights to the proceedings provided by this rule and the proposed assessment will become a final assessment for purposes of Chapter 72, F.S., at the expiration of the extended filing period.

(2)(a) The protest shall be filed by mailing or faxing a written request to the address or fax number designated on the assessment, and shall include:

1. The taxpayer’s name, address, telephone number, federal taxpayer identifying number, and account number or audit number (where appropriate);

2. The tax type, the periods, and dollar amount of tax, interest, or penalty protested;

3. A list of the unagreed items;

4. A statement of facts and a description of any additional information not previously available that supports the list of unagreed items;

5. A statement explaining the law or other authority on which the taxpayer’s position is based;

6. A copy of the assessment;

7. A statement whether oral presentation and argument are requested.

(b)1. If the protest does not contain this required information, the taxpayer will be notified in writing by the office issuing the assessment that the required information must be submitted within 15 consecutive calendar days. Within this 15 consecutive calendar day period, the taxpayer may submit a request in writing to the office issuing the assessment for an additional 15 consecutive calendar days within which to submit this required information. Within a 15 consecutive calendar day extension period, the taxpayer may submit a request in writing to the office issuing the assessment for an additional 15 consecutive calendar day extension within which to submit this required information.

2. Failure to submit this information or to request an additional 15 consecutive calendar day extension within either the original 15 consecutive calendar day period or an additional 15 consecutive calendar day extension period shall result in issuance of a written dismissal of the protest and forfeiture of the taxpayer’s right to the proceedings provided by this rule.

3. If the taxpayer either fails to submit the required information or fails to request an extension of time within which to submit the required information, the assessment shall become a final assessment for purposes of Chapter 72, F.S., on the later of:

a. The date a 15-consecutive calendar day period expires pursuant to this rule; or

b. The expiration of 20 consecutive calendar days after the date of issuance on the assessment.

(3)(a)1. Upon receipt of a complete, timely filed written protest, the office that issued the assessment will review the protest and initiate an attempt to resolve the issues. The office that issued the assessment may require the office originating the assessment to provide a written explanation, report, or narrative setting forth the basis for the assessment. A copy of any explanation, report, or narrative provided by the originating office pursuant to this sub-paragraph shall be given to the taxpayer, if such document is disclosable pursuant to applicable law.

2. If a resolution is not achieved, the protest will be forwarded to Informal Dispute Resolution. Informal Dispute Resolution will review the protest and may require the office originating the assessment to provide a written explanation, report, or narrative setting forth the basis for the assessment. A copy of any explanation, report, or narrative provided by the originating office pursuant to this sub-paragraph shall be given to the taxpayer, if such document is disclosable pursuant to applicable law. If requested by the taxpayer, an opportunity for submission of additional information and an oral conference will be provided. Conferences are conducted informally in Tallahassee, Florida, and no transcript of the proceedings will be made by the Department.

(b) If a protest is timely filed and the taxpayer and the Department are unable to resolve the disputed issues, a Notice of Reconsideration (NOR) shall be issued. The assessment will become a final assessment for purposes of Chapter 72, F.S., as of the date of issuance on the NOR.

(4) If at any time jeopardy conditions exist, the Department may initiate enforcement action under the Department’s jeopardy procedures to enforce an assessment.

(5) Procedures outlined in this section shall be for investigative purposes as specified in Section 120.57(5), F.S.

History

• Rulemaking Authority 72.011(2), 213.06(1), 213.21(1) FS. Law Implemented 72.011(2), 213.21(1) FS. History–New 7-1-88, Amended 8-10-92, 3-6-03.

Fla. Admin. Code R. 12-6.005 Criteria for Qualified Representatives

(1)(a) Any person who appears before the Department in any proceeding has the right, at his or her own expense, to be accompanied, represented, and advised by counsel or by other qualified representatives. For the purposes of this rule, “counsel” shall mean a member of the Florida Bar or a law student certified pursuant to Chapter 11 of the Rules Regulating The Florida Bar.

(b) A Certified Public Accountant holding a license to practice in Florida shall be deemed a qualified representative for purposes of this rule.

(c) Other qualified representatives of taxpayers include: general partners of a general or limited partnership, officers of a corporation, or an authorized regular employee of an individual, partnership or corporation who has actual knowledge of the controversy.

(2) Any individual qualified as a representative under this rule shall file a Power of Attorney and Declaration of Representative signed under penalty of perjury by the qualified representative and by the party being represented. The form is the Power of Attorney and Declaration of Representative (Form DR-835), adopted and incorporated by reference in Rule 12-6.0015, F.A.C.

(3) Other individuals chosen by a taxpayer to represent the taxpayer may be qualified to appear before the Department, the Executive Director, or the Executive Director’s designees if the presiding officer of the proceeding is satisfied as to the qualifications of the individual seeking to qualify as a representative. In determining qualification to represent, the presiding officer shall satisfy himself or herself by reference to the provisions in the Uniform Rules of Procedure, Rule 28-106.106, F.A.C. (Who May Appear; Criteria for Other Qualified Representatives).

History

• Rulemaking Authority 213.06(1), 213.21(1) FS. Law Implemented 213.053(3), 213.21(1) FS. History–New 5-27-82, Formerly 12-6.05, Amended 3-6-03.

Fla. Admin. Code R. 12-6.006 Standards of Conduct for Qualified Representatives

In all proceedings before the Department, the Executive Director, or the Executive Director’s designees under this chapter, all individuals qualified as a taxpayer’s representative shall comply with the provisions set forth in Uniform Rules of Procedure, Rule 28-106.107, F.A.C.

PART III REFUND PROTEST PROCEDURES

History

• Rulemaking Authority 213.06(1), 213.21(1) FS. Law Implemented 213.21(1) FS. History–New 5-27-82, Formerly 12-6.06, Amended 3-6-03.

Fla. Admin. Code R. 12-6.007 Public-Use Forms (Repealed)

PART III REFUND PROTEST PROCEDURES

Fla. Admin. Code R. 12-6.030 Conference Procedures for Notices of Intent to Make Refund Claim Changes

(1)(a) The Department, upon determining that a refund should be wholly or partially denied, except in the case of a mathematical error, will issue a notice to the address provided by the taxpayer with his or her application for refund. The notice shall include a clear explanation of the reason for denial. No such notice will be issued by the Department if the only change made by the Department results from a mathematical error made by the taxpayer. Examples of mathematical errors include those resulting from the taxpayer’s improper computation of collection allowances or discounts. The taxpayer shall have 30 consecutive calendar days after the date of issuance on the notice to sign the notice agreeing to the proposed changes or to mail or fax a written request for a conference to the address or fax number designated on the notice.

(b) If the Department issues a revised notice, the taxpayer shall have 30 consecutive calendar days after the date of issuance on the revised notice to mail or fax a written request for a conference to the office address or fax number on the revised notice.

(c) A request for a conference should be made directly to the address or fax number designated on the notice or the revised notice. In order for the taxpayer’s request for a conference to be considered timely, the request must be postmarked or faxed within 30 consecutive calendar days from the date of issuance on the notice or on the revised notice.

(d) Requests postmarked or faxed more than 30 consecutive calendar days after the date of issuance on the notice or the revised notice will be deemed late filed and shall result in forfeiture of the taxpayer’s rights to such conference, unless the taxpayer has timely secured a written extension of time within which to file a request for a conference.

(2)(a) A taxpayer may request an extension of time in which to request a conference by mailing or faxing a written request to the address or fax number designated on the notice or the revised notice, prior to the expiration of the period within which a conference must be requested. Each extension of time will be for 30 consecutive calendar days. Within a 30 consecutive calendar day extension period, the taxpayer may submit a request in writing to the address or fax number designated on the notice or the revised notice for an additional 30 consecutive calendar day extension within which to request a conference.

(b) Failure to mail or fax a written request for a conference within the 30 consecutive calendar day extension period, or to mail or fax a written request for an additional 30 consecutive calendar day extension within a pending extension period, shall result in forfeiture of the taxpayer’s rights to a conference.

(3) If a conference is requested, it will be held at the earliest convenience of both the taxpayer and the Department, but it will not be held more than 40 consecutive calendar days after the date of issuance on the notice or revised notice, unless specifically agreed to in writing by the Department.

(4) Failure to request a conference will not preclude instituting the protest procedures provided in Rule 12-6.032, F.A.C.

(5) If it is jointly determined by the Department’s representative and the taxpayer that an issue(s) cannot be resolved, to expedite ultimate resolution of the issue(s), the 30 consecutive calendar days provided under subsection (1) of this rule may be waived by the taxpayer.

(6) A Notice of Proposed Refund Denial (form DR-832R) will be issued by the Department if:

(a) An agreement is not reached after the conference held pursuant to Rule 12-6.032, F.A.C.; or

(b) The taxpayer has not timely filed a written request for a conference; or

(c) The taxpayer has not timely filed a written request for an extension of time for requesting a conference; or

(d) The taxpayer has waived his or her right to a conference pursuant to this section.

(7) When an amount to be refunded is determined, the Department shall voucher a request for warrant for the amount approved and submit it to the Comptroller.

History

• Rulemaking Authority 213.06(1), 213.21(1) FS. Law Implemented 72.011(2), 213.21(1), 215.26 FS. History–New 3-6-03.

Fla. Admin. Code R. 12-6.032 Protest of Notices of Proposed Refund Denial

(1)(a) A taxpayer may secure review of a Notice of Proposed Refund Denial (Form DR-832R), by implementing the provisions of this section.

(b) To secure review of a Notice of Proposed Refund Denial (NPRD), a taxpayer must file a written protest, postmarked or faxed within 60 consecutive calendar days (150 consecutive calendar days if the NPRD is addressed to a person outside the United States) from the date of issuance on the NPRD.

(c) Protests postmarked or faxed more than 60 consecutive calendar days (150 consecutive calendar days if the Notice is addressed to a person outside the United States) after the date of issuance on the NPRD will be deemed late filed, and the proposed refund denial becomes final for purposes of Chapter 72, F.S., upon the expiration of 60 consecutive calendar days (150 consecutive calendar days if the NPRD is addressed to a person outside the United States) after the date of issuance on the NPRD, unless the taxpayer has timely secured a written extension of time within which to file a protest.

(d)1. A taxpayer may request an extension of time for filing a protest by mailing or faxing a written request to the address or fax number designated on the NPRD. In order for the taxpayer’s request to be considered timely, the request must be postmarked or faxed within 60 consecutive calendar days (150 consecutive calendar days if the NPRD is addressed to a person outside the United States) from the date of issuance on the NPRD. Each extension of time will be for 30 consecutive calendar days. Within a 30 consecutive calendar day extension period, the taxpayer may submit a request in writing to the address or fax number designated on the NPRD for an additional 30 consecutive calendar day extension within which to submit a written protest.

2. Failure to mail or fax the written protest or failure to mail or fax a written request for an additional extension within a 30 consecutive calendar day extension period shall result in forfeiture of the taxpayer’s rights to the proceedings provided by this rule and the proposed refund denial will become a final denial for purposes of Chapter 72, F.S., at the expiration of the extended filing period.

(2) The procedures for obtaining review of a proposed refund denial are as follows:

(a) The protest shall be filed by mailing or faxing a written request to the address or fax number designated on the NPRD and shall include:

1. The taxpayer’s name, address, telephone number, account number, federal taxpayer identifying number, and audit number or refund control number;

2. The type of tax and the dollar amount of the proposed refund denial that is being protested;

3. The refund period covered by the denial;

4. A copy of the Notice of Proposed Refund Denial;

5. A concise statement of facts including a statement of all disputed issues of material fact and a description of any additional information not previously available that supports the taxpayer’s position. If there are no disputed issues of material fact, the petition must so indicate;

6. A statement supporting the taxpayer’s position as to any contested issue;

7. A statement explaining the law or other authority upon which the taxpayer is relying;

8. A statement explaining the relief the taxpayer seeks from the Department;

9. Whether the taxpayer desires oral presentation and argument; and

10. Other information the taxpayer contends is material to the refund.

(b)1. If the protest does not contain this required information, the taxpayer will be notified in writing by the Department that the required information must be submitted within 15 consecutive calendar days. Within this 15 consecutive calendar day period the taxpayer may submit a request in writing to the address or fax number designated on the NPRD for an additional 15 consecutive calendar days within which to submit this required information. Within a 15 consecutive calendar day extension period the taxpayer may submit a request in writing to the Department for an additional 15 consecutive calendar day extension within which to submit this required information.

2. Failure to submit this information or to request an additional 15 consecutive calendar day extension within either the original 15 consecutive calendar day period or an additional 15 consecutive calendar day extension period shall result in issuance of a written dismissal of the protest and forfeiture of the taxpayer’s right to the proceedings provided by this rule.

3. If the taxpayer either fails to submit the required information or fails to request an extension of time within which to submit the required information, the proposed refund denial shall become a final refund denial for purposes of Chapter 72, F.S., on the later of:

a. The date a 15-consecutive calendar day period expires pursuant to this rule; or

b. The expiration of 60 consecutive calendar days after the date of issuance on the NPRD.

(3)(a)1. Upon receipt of a complete, timely filed written protest, the Refunds and Distribution Process will review the protest and initiate an attempt to resolve the issues. The Refunds and Distribution Process may require the field office that reviewed the Notice of Proposed Refund Denial to provide a written explanation, report, or narrative setting forth the basis for the denial. A copy of any explanation, report, or narrative provided by the originating office pursuant to this sub-paragraph shall be given to the taxpayer, if such document is disclosable pursuant to applicable law.

2. If a resolution is not achieved, the protest will be forwarded to Informal Dispute Resolution. Informal Dispute Resolution will review the protest and may require the office originating the Notice of Proposed Refund Denial to provide a written explanation, report, or narrative setting forth the basis for the refund denial. A copy of any explanation, report, or narrative provided by the originating office pursuant to this sub-paragraph shall be given to the taxpayer, if such document is disclosable pursuant to applicable law. If requested by the taxpayer, an opportunity for submission of additional information and an oral conference will be provided. Conferences are conducted informally in Tallahassee, Florida, and no transcript of the proceedings will be made by the Department.

(b) If a protest is timely filed and the taxpayer and the Department are unable to resolve the disputed issues, the protest will be denied. The proposed refund denial will become a final refund denial for purposes of Chapter 72, F.S., as of the date of issuance on the denial, unless the taxpayer timely files a petition for reconsideration of the denial.

(4)(a)1. A taxpayer shall have 30 consecutive calendar days from the date of issuance on the denial to file a petition for reconsideration.

2. Petitions for reconsideration must be in writing, postmarked or faxed to the address or fax number designated on the denial, no later than 30 consecutive calendar days after the date of issuance on the denial, and must contain additional facts or arguments in support of the taxpayer’s position.

3. The Department will not grant an extension of time for filing a petition for reconsideration.

(b)1. If the petition for reconsideration does not contain this required information, the taxpayer will be notified in writing by Informal Dispute Resolution that the required facts or arguments must be submitted within 15 consecutive calendar days. Within this 15 consecutive calendar day period, the taxpayer may submit a request in writing to Informal Dispute Resolution for an additional 15 consecutive calendar day extension within which to submit this required information. Within a 15 consecutive calendar day extension period, the taxpayer may submit a request in writing to Informal Dispute Resolution for an additional 15 consecutive calendar extension within which to submit this required information.

2. Upon failure to submit this information or to request an additional 15 consecutive calendar day extension within either the original 15 consecutive calendar day period or an additional 15 consecutive calendar day extension period, the petition for reconsideration will be dismissed and the denial of the protest will be sustained. The proposed refund denial will become a final refund denial for purposes of Chapter 72, F.S., upon expiration of the original 15 consecutive calendar day period or the last extension period.

(c) If a petition for reconsideration is timely filed and the taxpayer and the Department are unable to resolve the disputed issues, the petition shall be denied. The proposed refund denial will become a final refund denial for purposes of Chapter 72, F.S., as of the date the petition is denied.

(5) Procedures outlined in this section shall be for investigative purposes as specified in Section 120.57(5), F.S.

History

• Rulemaking Authority 72.011(2), 213.06(1), 213.21(1) FS. Law Implemented 72.011(2), 213.21(1), 215.26 FS. History–New 3-6-03.

Chapter 12-9 CERTIFIED FLORIDA PROPERTY APPRAISER AND CERTIFIED FLORIDA TAX COLLECTOR PROGRAM

Fla. Admin. Code R. 12-9.001 Definitions

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 4-2-81, Formerly 12-9.01, Amended 4-11-89, 12-30-97, 10-26-21, Transferred to 12D-19.001.

Fla. Admin. Code R. 12-9.002 Certified Florida Appraiser, Certified Florida Evaluator, Certified Cadastralist of Florida, Certified Florida Collector, and Certified Florida Collector Assistant Program

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 4-2-81, Formerly 12-9.02, Amended 4-11-89, 12-19-89, 12-30-97, 4-5-16, 10-26-21, Transferred to 12D-19.002.

Fla. Admin. Code R. 12-9.003 Qualifications

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 4-2-81, Formerly 12-9.03, Amended 4-11-89, 12-19-89, 12-30-97, 1-2-01, 10-26-21, Transferred to 12D-19.003.

Fla. Admin. Code R. 12-9.0031 Approval of Courses

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 10-26-21, Transferred to 12D-19.004.

Fla. Admin. Code R. 12-9.0032 Department Sponsored Courses

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 10-26-21, Transferred to 12D-19.005.

Fla. Admin. Code R. 12-9.004 Application for Certification

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002, 195.087(4) FS. History–New 4-2-81, Formerly 12-9.04, Amended 4-11-89, 12-30-97, 10-26-21, Transferred to 12D-19.006.

Fla. Admin. Code R. 12-9.005 Certificates

History

• Rulemaking Authority 20.21 FS. Law Implemented 145.10, 145.11 FS. History–New 4-2-81, Formerly 12-9.05, Repealed 4-11-89.

Fla. Admin. Code R. 12-9.0055 Fees and Tuition

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002, 195.087(4) FS. History–New 4-11-89, Amended 12-19-89, 10-30-91, 12-30-97, 10-26-21, Transferred to 12D-19.007.

Fla. Admin. Code R. 12-9.006 Certification

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 4-2-81, Formerly 12-9.06, Amended 4-11-89, 12-30-97, 10-26-21, Transferred to 12D-19.008.

Fla. Admin. Code R. 12-9.007 Recertification

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 4-2-81, Formerly 12-9.07, Amended 4-11-89, 12-30-97, 10-26-21, Transferred to 12D-19.009.

Fla. Admin. Code R. 12-9.0077 Reinstatement

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 10-26-21, Transferred to 12D-19.010.

Fla. Admin. Code R. 12-9.008 Hearing on Certification Application and Expiration

History

• Rulemaking Authority 195.002(2), 213.06(1) FS. Law Implemented 120.57, 145.10, 145.11, 195.002 FS. History–New 4-2-81, Formerly 12-9.08, Amended 4-11-89, Repealed 10-26-21.

Chapter 12-10 STATE REVENUE SHARING

Fla. Admin. Code R. 12-10.001 Scope and Purpose

History

• Rulemaking Authority 120.53(1)(c), 218.26(1) FS. Law Implemented 218.20, 218.21, 218.215, 218.23, 218.245, 218.25, 218.26 FS. History–New 3-8-82, Formerly 12-10.01, Repealed 4-5-98.

Fla. Admin. Code R. 12-10.002 Definitions

History

• Rulemaking Authority 120.53(1)(c), 218.26(1) FS. Law Implemented 218.20, 218.21, 218.215, 218.23, 218.245, 218.25, 218.26 FS. History–New 3-8-82, Formerly 12-10.02, Repealed 4-5-98.

Fla. Admin. Code R. 12-10.003 Eligibility Requirements

History

• Rulemaking Authority 120.53(1)(c), 218.26(1) FS. Law Implemented 218.20, 218.21, 218.215, 218.23, 218.245, 218.25, 218.26 FS. History–New 3-8-82, Amended 7-8-82, Formerly 12-10.03, Repealed 4-5-98.

Fla. Admin. Code R. 12-10.004 Scope and Purpose

History

• Rulemaking Authority 120.53(1)(c), 218.26(1) FS. Law Implemented 218.20, 218.21, 218.215, 218.23, 218.245, 218.25, 218.26 FS. History–New 3-8-82, Formerly 12-10.04, Repealed 4-5-98.

Fla. Admin. Code R. 12-10.005 Revenue Sharing Apportionment – Municipalities

History

• Rulemaking Authority 120.53(1)(c), 218.26(1) FS. Law Implemented 218.20, 218.21, 218.215, 218.23, 218.245, 218.25, 218.26 FS. History–New 3-8-82, Formerly 12-10.05, Repealed 4-5-98.

Fla. Admin. Code R. 12-10.006 Distribution to Units of Local Government

After the calculation of the apportionment factor as specified in Section 218.245, F.S., all receipts available are to be distributed according to the following procedures:

(1) The apportionment factor for each eligible unit of local government is applied to the Department’s estimate of all receipts available to determine each unit’s entitlement from the respective trust fund.

(2) Revenue shared with eligible units or ineligible units of local government is adjusted so that no eligible unit or ineligible unit receives less funds than its guaranteed entitlement or minimum entitlement, respectively.

(3) After making the adjustment as required by subsection (2), the sum of the guaranteed and minimum entitlements is subtracted from the estimate of all receipts available. The remaining funds are distributed according to a pro rata basis determined by the ratio of total dollars of all eligible units whose entitlements exceed their guaranteed entitlements, to the total receipts remaining after subtracting the sum of the guaranteed and minimum entitlements.

History

• Rulemaking Authority 218.26(1) FS. Law Implemented 218.21(9), (10), 218.23, 218.245(1), (2) FS. History–New 3-8-82, Amended 7-8-82, Formerly 12-10.06, Amended 11-1-98, 2-11-26.

Fla. Admin. Code R. 12-10.007 Limitation of Shared Funds

History

• Rulemaking Authority 120.53(1)(c), 218.26(1) FS. Law Implemented 218.20, 218.21, 218.215, 218.23, 218.245, 218.25, 218.26 FS. History–New 3-8-82, Formerly 12-10.04, Repealed 4-5-98.

Fla. Admin. Code R. 12-10.008 Apportionment for Municipalities Located in More Than One County

The apportionment factor for a municipality whose area is coincident with the area of more than one county is calculated as follows:

(1) For purposes of the population weight factor, the population of the municipality will be the total population within the municipal boundaries.

(2) The nonexempt assessed real and personal property will be calculated as the sum of the assessed values within the municipal boundaries contained within each county in which the municipality is located.

(3) The sales tax collection factor will be the sum of each of the partial sales tax collection factors calculated for each portion of the municipality contained within a different county. The partial sales tax allocation factor, for each portion of the municipality within a different county, will be calculated as the municipal population contained within that county divided by the total population of that county, multiplied by the county sales tax collections. The partial sales tax allocation factors are then divided by the total sales tax collected within all the eligible municipalities in the state. The partial tax collection factors, derived for each portion of the municipality contained within a different county, as summed to determine the sales tax collection factor of the municipality.

History

• Rulemaking Authority 218.26(1) FS. Law Implemented 218.21, 218.245, 218.26 FS. History–New 3-8-82, Formerly 12-10.08, Amended 11-1-98, 1-11-16, 2-11-26.

Fla. Admin. Code R. 12-10.009 Wire Deposit of Revenue Sharing Funds

History

• Rulemaking Authority 218.26(1) FS. Law Implemented 218.21, 218.215, 218.23, 218.245, 218.25, 218.26 FS. History–New 3-8-82, Formerly 12-10.09, Amended 11-1-98, Repealed 2-11-26.

Chapter 12-11 TECHNICAL ASSISTANCE ADVISEMENTS AND REQUESTS FOR TECHNICAL ADVICE

Fla. Admin. Code R. 12-11.001 General Explanation of Provisions

Under the provisions of Section 213.22, F.S., the Department of Revenue is granted the discretionary authority to issue technical assistance advisements to taxpayers. Pursuant to this authority, it is the practice of the Department of Revenue to answer inquiries of taxpayers, whenever deemed appropriate and in the interest of sound tax management, pertaining to the tax effects and consequences of their acts and transactions.

History

• Rulemaking Authority 213.22(3) FS. Law Implemented 213.22 FS. History–New 5-27-82, Formerly 12-11.01.

Fla. Admin. Code R. 12-11.002 Definitions

(1) “Technical Assistance Advisements” (TAA) or “Advisements” are written statements issued to taxpayers or to industry or trade associations by the Department of Revenue, setting forth the Department’s position on the tax consequences of a specific transaction or event under applicable statutes and rules.

(2) “Internal Technical Advisements” (ITA) are written statements issued to Department personnel, in response to an internal Departmental request for technical advice which state the Department’s position on the tax consequences of a specific transaction or event under applicable statutes and rules.

(3) The “Department” shall mean the Department of Revenue of the State of Florida.

(4) “Taxpayer” shall mean a person subject to any tax, imposed under law by the Florida Statutes, which tax is subject to administration by the Department of Revenue.

(5) “Person” shall include any individual, joint venture, syndicate, partnership, corporation, association, estate and private or business trust, firm, legal representative, trustee, or receiver.

(6) “Under Audit” shall mean a taxpayer who has been given written notice of the Department’s intent to audit a specific tax for a specific time period which includes managed audits, self-audit requests, self analysis, or written approval from the Department to participate in a certified audit. Examples of such notices are: the notification of intent to audit books and records, the notification of correspondence audit, or self analysis and self audit requests. “Under Audit” shall also include a taxpayer who has been given written notification that the Department is conducting an examination of a transaction(s) or reporting period(s) for possible underpayments or overpayments.

(7) “Authorized Employee” means a person or persons who initiates, conducts, or reviews an examination of information on a transaction(s) or reporting period(s) with respect to which the TAA request is made.

(8) “Taxpayer Association” shall mean an organization that has been authorized by its members to represent the interests of the members.

(9) “Tax Information Publication” (TIP) shall mean a written, informal statement developed and issued by the Department.

History

• Rulemaking Authority 213.06(1), 213.22(3) FS. Law Implemented 213.22 FS. History–New 5-27-82, Formerly 12-11.02, Amended 10-24-96, 6-28-00, 3-25-20, 1-1-24.

Fla. Admin. Code R. 12-11.003 Requests for Technical Assistance Advisements

(1) All requests for technical assistance advisements must be in writing. No oral requests by taxpayers for technical assistance advisements will be considered or processed by the Department. Oral opinions and advice issued by representatives of the Department are not binding on the Department.

(a) A taxpayer or his or her representative may, however, inquire in writing of the Department whether it will rule on a particular question. Where such a request is made, however, the taxpayer and his or her identifying number must be disclosed.

(b) A taxpayer may, however, at all times seek informal oral or written technical assistance from the Department concerning preparation of returns and reports. Such advice, though, is advisory only and is not binding on the Department.

(2) Each written request for a technical assistance advisement (TAA) from a taxpayer or his or her representative related to the specific circumstances of an individual taxpayer must contain:

(a) A complete statement of all relevant facts relating to the transaction, including: names, addresses and taxpayer identifying numbers of all interested parties; and a carefully detailed description of the transaction. (The term “all interested parties” is not to be construed as requiring a list of all shareholders of a widely held corporation or all members of an association requesting an advisement.)

(b) In addition, true copies of all contracts, wills, deeds, agreements, instruments, and other documents involved in the transaction must be submitted with the request:

1. For prompt disposition, relevant facts reflected in documents submitted must be included in the taxpayer’s statement and not merely incorporated by reference; and,

2. Must be accompanied by an analysis of their bearing on the issue or issues, specifying the pertinent provisions.

(c) An explanation of an entire, integrated transaction when the request pertains to only a portion of that transaction.

(d) If the taxpayer asserts a particular determination of the issues, an explanation of the grounds for the determination, and a statement of relevant authorities in support of the position asserted, should be furnished. Even though the taxpayer is urging no particular determination with regard to a proposed transaction, he or she should state his or her views as to the tax consequences of the proposed action and furnish a statement of relevant authorities to support such views. In addition, the taxpayer should, for prompt disposition, inform the Department of any legislation, court decisions or regulations that the taxpayer determines to be contrary to the position advanced. If the taxpayer determines that there are no contrary authorities, a statement to this effect should be included in the advisement request.

(3) Each written request for a technical assistance advisement from a taxpayer association or the association’s representative must contain:

(a) A complete description of all relevant facts relating to the potential transaction(s).

(b) An explanation of an entire, integrated transaction when the request pertains to only a portion of that transaction.

(c) If the taxpayer association asserts a particular determination of the issues, an explanation of the grounds for the determination, and a statement of relevant authorities in support of the position asserted should be furnished. Even though the taxpayer association is urging no particular determination with regard to a proposed transaction, the association’s views as to the tax consequences of the proposed action should be stated and a statement of relevant authorities to support such views should be furnished. In addition, the taxpayer association should, for prompt disposition, inform the Department of any legislation, court decisions, or regulations that the taxpayer association determines to be contrary to the position advanced. If the taxpayer association determines that there are no contrary authorities, a statement to this effect should be included in the advisement request.

(d) A statement from the taxpayer association agreeing to disseminate the TAA to all of its members.

(e) A statement acknowledging that the provisions of Section 213.22(2), F.S., authorize the Department to publish the TAA for official purposes.

(4) An advisement request, other than a request regarding the sales and use tax exemptions granted to general groceries and medical items pursuant to Sections 212.08(1) and (2), F.S., must also contain a statement whether, to the best of knowledge of the taxpayer or his or her representative or the taxpayer association or its representative, the identical issue is involved in a return of the taxpayer or a member of the taxpayer association, and, if so, whether:

(a) The taxpayer or a member of the taxpayer association is under audit;

(b) The issue is being considered by the Department;

(c) The issue has been examined and the statutory period for assessment or refund has expired;

(d) The issue is pending in litigation in a case involving the taxpayer, a member of the taxpayer association, or a person who is a party to the transaction; or

(e) The issue, or a substantially similar issue, has been ruled on by the Department for the taxpayer or predecessor of the taxpayer, or a member of the taxpayer association, and the substance of the prior ruling or advisement.

After a request is filed, but before an advisement is issued, if a taxpayer or his or her authorized representative or the taxpayer association or its representative becomes aware that an examination of the issue by the Department has commenced, the taxpayer or his or her representative or the taxpayer association or its representative shall so notify the Department in writing.

(5) A request for an advisement must comply with the deletion requirements in Rule 12-11.005, F.A.C.

(6) A request for issuance of a technical assistance advisement by the Department should be addressed to Technical Assistance, Florida Department of Revenue, P.O. Box 7443, Tallahassee, Florida 32314-7443.

(7) Any request for an advisement that does not comply with all the provisions of this rule will be acknowledged, and the requirements that have not been met will be pointed out. If a request for an advisement lacks essential information, the taxpayer or his or her representative, or the taxpayer association or its representative, will be advised that if the information is not forthcoming within 30 days, the request will be closed. If the information is received after the request is closed, the request will be reopened and treated as a new request as of the date of the receipt of the essential information.

(8) When a taxpayer who is under audit or a taxpayer association that has a member who is under audit requests a Technical Assistance Advisement (TAA) on any tax being audited or a transaction or period being reviewed, other than a request regarding the sales and use tax exemptions granted to general groceries and medical items pursuant to Sections 212.08(1) and (2), F.S., the taxpayer or the taxpayer association shall mail or hand-deliver to the authorized employee conducting the audit or review a copy of the TAA request at the same time the request is mailed to Technical Assistance for a response. Upon receipt of the TAA request, the authorized employee will notify Technical Assistance of his or her intent to provide any factual information, documents, arguments, or authorities which he or she wants considered. The authorized employee shall have 10 working days from the date of the TAA request in which to forward any information to Technical Assistance or to request additional time to submit information regarding the TAA request. The authorized employee shall not be obligated to suspend the audit or review pending issuance of the TAA. After issuance of a Notice of Proposed Assessment or billing, no TAA will be issued to a taxpayer or taxpayer association with respect to the tax liability reflected by the proposed assessment or billing, other than a TAA request regarding the sales and use tax exemptions granted to general groceries and medical items pursuant to Sections 212.08(1) and (2), F.S.

(9) No TAA will be issued to an individual taxpayer who has received notification of the Department’s intent to audit a specific tax, other than a TAA request regarding the sales and use tax exemptions granted to general groceries and medical items pursuant to Sections 212.08(1) and (2), F.S., if a request for technical advice has been submitted by the authorized employee to the Department’s technical staff, with respect to the same taxpayer and issue, is pending. If the Department does not issue an ITA in this situation, the taxpayer may submit a request for a TAA.

History

• Rulemaking Authority 213.06(1), 213.22(3) FS. Law Implemented 213.22 FS. History–New 5-27-82, Formerly 12-11.03, Amended 10-24-96, 6-28-00, 1-22-01, 3-25-20.

Fla. Admin. Code R. 12-11.004 Requests for Conference Discussion

(1) A taxpayer or the taxpayer’s representative who, or a taxpayer association or its representative that, desires an oral discussion of the issue or issues involved should indicate such desire in writing when filing the request in order that the conference may be arranged at that stage of consideration when it will be most helpful.

(2) If a conference has been requested, the taxpayer or Taxpayer Association will be notified of the time and place of the conference. Unless specifically agreed to by the Department, all conferences will be held at the Department’s offices in Tallahassee, Florida, or by telephone conference call if requested by the taxpayer or taxpayer association. A conference is normally scheduled only when the Department agrees that it will be helpful in deciding the case, or when an adverse decision is indicated.

History

• Rulemaking Authority 213.06(1), 213.22(3) FS. Law Implemented 213.22 FS. History–New 5-27-82, Formerly 12-11.04, Amended 6-28-00.

Fla. Admin. Code R. 12-11.005 Deletion of Private or Confidential Information

(1) In order to assist the Department in making the deletions of private and confidential materials and privileged financial and commercial information from the text of advisements and supporting information provided by the requestor to the Department which are open to public inspection, there must accompany requests for advisements and the submission of supporting information either a statement of the deletions proposed by the person requesting the advisements, or a statement that no information other than names, addresses, and taxpayer identification numbers needs to be deleted.

(2) Such statement shall be made in a separate document. The statement of proposed deletions should be accompanied by a copy of the request for an advisement and supporting documents, on which should be indicated, by the use of brackets, the material which the person making such request indicates should be deleted.

(3) The statement of proposed deletions should not appear or be referred to anywhere in the request for an advisement.

(4) If the person making the request decides to request additional deletions prior to the time the advisement is issued, additional statements may be submitted.

(5) Generally, prior to issuing the advisement, the Department shall inform the person requesting such advisement, orally or in writing, of the material likely to appear in the advisement which such person proposed be deleted but which the Department determines should not be deleted. If so informed, the person requesting the advisement may submit within 10 days any further information, arguments or other material in support of the position that such material be deleted. The Department will attempt, if feasible, to resolve all disagreements with respect to proposed deletions prior to the issuance of the advisement. However, in no event shall the person requesting the advisement have the right to a conference with respect to resolution of any disagreements concerning material to be deleted from the text of the advisement, but such matters may be considered at any conference otherwise scheduled with respect to the advisement.

History

• Rulemaking Authority 213.06(1), 213.22(3) FS. Law Implemented 213.22 FS. History–New 5-27-82, Formerly 12-11.05, Amended 6-28-00.

Fla. Admin. Code R. 12-11.006 Processing Requests for, and Obtaining Copies of, Technical Assistance Advisements

(1) It is the practice of the Department to process requests for advisements in chronological order and as expeditiously as possible. Compliance with a request for consideration of a particular matter ahead of its regular order, on a priority basis or by a specified time, will only be granted, in the discretion of the Department, if a special request for such handling is made. Requests for expeditious processing should be made in writing in a separate letter submitted with the advisement request entitled “Expeditious Handling Request.” Requests for expeditious handling shall fully detail the circumstances which require expeditious handling of the request by the Department. Requests for expeditious handling will be considered by the Department as particular circumstances warrant. However, no assurance can be given that any advisement will be processed by the time requested.

(2) A taxpayer or the taxpayer’s authorized representative, or a taxpayer association or its representative, desiring to obtain information as to the status of the taxpayer’s request may do so by contacting Technical Assistance, P.O. Box 7443, Tallahassee, Florida 32314-7443.

(3)(a) An individual who accesses and prints a copy of a previously-issued TAA using the Department’s website (www.floridarevenue.com) does not have to submit the fee required by paragraph (b).

(b) A request for a copy of a previously-issued TAA or supporting information should be mailed or faxed to Technical Assistance, P.O. Box 7443, Tallahassee, Florida 32314-7443, FAX number (850)921-2983. An individual who mails or faxes a request for a paper copy of a previously-issued TAA or supporting information must first submit a check made payable to the Department of Revenue in an amount equal to 50 cents per page, with a minimum amount of $5.00 for each TAA or supporting information document requested.

History

• Rulemaking Authority 213.06(1), 213.22(3), (4) FS. Law Implemented 213.22(1) FS. History–New 5-27-82, Formerly 12-11.06, Amended 10-24-96, 6-28-00, 1-22-01.

Fla. Admin. Code R. 12-11.007 Effect of Advisements

(1) A taxpayer may not rely on an advisement issued to another taxpayer, except that an advisement issued to a taxpayer association provides guidance to those taxpayers who are members of the taxpayer association for the particular transaction(s) discussed in the TAA. An advisement will be revoked or modified at any time by the Department in the administration of the taxing statutes, if the applicable statutes, rules, case law, or policies supporting the TAA change, or if the circumstances initially described by the taxpayer in his or her request for the TAA change. If an advisement is revoked or modified, the revocation or modification shall be prospective only, and such revocation or modification shall not be applied retroactively against the taxpayer.

(2) An advisement, issued to a taxpayer or a taxpayer association, with respect to a particular transaction represents a holding of the Department on that transaction only. If the advisement is later found to be in error, or no longer in accord with the position of the Department, it will afford the taxpayer no protection with respect to a like transaction in the same or subsequent years.

(3) When a taxpayer receives an advisement prior to the filing of his or her return, with respect to any transaction that has been consummated and that is relevant to the return, he or she should attach a copy of the advisement to the return.

(4) As part of the determination of a taxpayer’s liability, it is the responsibility of the Department to ascertain whether an advisement previously issued to the taxpayer or the taxpayer association has been properly applied. It should be determined whether the representations, upon which the advisement was based, reflected an accurate statement of the material facts and whether the transaction actually was carried out substantially as proposed.

(5) Members of a taxpayer association who choose not to follow the guidance provided in a TAA will not be subject to the precedential value of the TAA, and are liable for the tax consequences of not adhering to the Department’s position expressed in the TAA.

History

• Rulemaking Authority 213.06(1), 213.22(3) FS. Law Implemented 213.22(1) FS. History–New 5-27-82, Formerly 12-11.07, Amended 6-28-00.

Fla. Admin. Code R. 12-11.008 Requests by Representatives

(1) A request, by or for a taxpayer or a taxpayer association, must be signed by the taxpayer, an officer or director of the taxpayer association, or an authorized representative of the taxpayer or the taxpayer association. If the request is signed by an authorized representative, he or she must either be:

(a) An attorney, who is a member in good standing of the Florida Bar or of the bar of the highest court of any state, possession, commonwealth, or the District of Columbia, and who files with the Department a written declaration that he or she is currently qualified as an attorney and he or she is authorized to represent the principal, or

(b) A certified public accountant, who is duly qualified to practice in any state, possession, territory, commonwealth, or the District of Columbia, and who files with the Department a written declaration that he or she is currently qualified as a certified public accountant and he or she is authorized to represent the principal, or

(c) A person, other than an attorney or certified public accountant, who files with the Department a written declaration signed by the taxpayer that he or she is authorized to represent the principal.

(2) The above requirements do not apply to an individual representing his or her full-time employer, or to a bona fide officer, administrator, trustee, etc., representing a corporation, trust, estate, association, or organized group.

History

• Rulemaking Authority 213.06(1), 213.22(3) FS. Law Implemented 213.22 FS. History–New 5-27-82, Formerly 12-11.08, Amended 6-28-00.

Fla. Admin. Code R. 12-11.009 Revocation of Request

(1) The taxpayer’s request for an advisement may be withdrawn at any time prior to the Department’s issuance of the advisement. Additionally, a taxpayer may request that one or more individual issues contained in an advisement request be withdrawn from Department considerations. The information submitted, with regard to a request or issue which is revoked, may be considered by the Department in a subsequent audit or examination of the taxpayer’s return. Even though a request is withdrawn, all correspondence and exhibits will be retained by the Department and may not be returned to the taxpayer.

(2) A taxpayer, or his or her representative, may revoke a request, or revoke Department consideration pertaining to an individual issue, only upon submission of a written statement to the Department requesting the Department suspend consideration of the entire advisement request or particular issue contained therein.

History

• Rulemaking Authority 213.06(1), 213.22(3) FS. Law Implemented 213.22(1), (3) FS. History–New 5-27-82, Formerly 12-11.09.

Fla. Admin. Code R. 12-11.010 Advisements on Newly Enacted Legislation

History

• Rulemaking Authority 120.53, 213.22(3) FS. Law Implemented 120.53, 213.22(1) FS. History–New 5-27-82, Formerly 12-11.10, Repealed 4-5-98.

Fla. Admin. Code R. 12-11.011 Requests for Technical Advice

History

• Rulemaking Authority 120.53, 213.06(1) FS. Law Implemented 120.53 FS. History–New 10-24-96, Repealed 3-25-20.

Fla. Admin. Code R. 12-11.012 Processing Requests for Technical Advice

History

• Rulemaking Authority 120.53, 213.06(1) FS. Law Implemented 120.53 FS. History–New 10-24-96, Repealed 4-5-98.

Fla. Admin. Code R. 12-11.013 Informal Technical Tax Statements

Pursuant to the provisions of Sections 213.015(1) and 213.2201, F.S., the Department is authorized to issue informal written technical statements called Tax Information Publications (TIPs).

(1) Tax Information Publications are intended to:

(a) Provide guidance to taxpayers, tax practitioners, and the public;

(b) Promote the uniform application of the tax laws;

(c) Inform taxpayers about the Department’s response to changes in:

1. United States or Florida tax laws; or,

2. Court or Division of Administrative Hearings decisions that interpret tax laws;

(d) Explain to taxpayers their rights and responsibilities under the tax laws; and,

(e) Assist taxpayers in complying with the tax laws.

(2)(a) TIPs cannot supersede, alter, or otherwise change any provision of Florida law, Department rule, or any other source of law. They are not binding on the Department or on taxpayers, except as provided in rule Chapter 12-13, F.A.C.

(b) A TIP is not a rule under the provisions of Chapter 120, F.S.

(3)(a) If there is an inconsistency between a TIP and a statute, rule, or court decision, the statute, rule, or court decision controls.

(b) Any person relying on a TIP is required to consider the effects of later statute or rule changes, or court decisions, that render the TIP inapplicable. A taxpayer who relies on the provision(s) contained in an inapplicable TIP cannot subsequently allege that he or she received inaccurate guidance from the Department.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.2201 FS. History–New 6-28-00.

Chapter 12-13 COMPROMISE AND SETTLEMENT

Fla. Admin. Code R. 12-13.001 Scope of Rules

The rules set forth in this chapter shall be used by the Executive Director or the Executive Director’s designee, as set forth hereinafter, in the exercise of the authority to settle and compromise liability for tax, interest, penalty, and service fees granted by Sections 212.07(9), 212.12(14), 213.21, 213.24(3) and 215.34(2), F.S. However, special provisions applicable to settlement and compromise of estate taxes, interest, and penalty imposed pursuant to Chapter 198, F.S., are set forth in Rule 12-13.010, F.A.C.

History

• Rulemaking Authority 212.07(9)(c), 213.06(1), 213.21(5), (9) FS. Law Implemented 212.07(9), 212.12(14), 213.21, 213.24(3), 215.34(2) FS. History–New 5-23-89, Amended 8-10-92, 10-2-01, 10-29-13.

Fla. Admin. Code R. 12-13.0015 Application of Rules

History

• Rulemaking Authority 20.05(5), 213.06(1), 213.21(5) FS. Law Implemented 213.05, 213.21(2)(a), (3), (5) FS. History–New 5-23-89, Amended 8-10-92, Repealed 4-5-98.

Fla. Admin. Code R. 12-13.002 Definitions

The meanings ascribed to the words and terms listed below shall be applicable, unless a different meaning is clearly indicated by the context in which the word or term is used.

(1) “Compromise” means a reduction of the amount of tax, interest, or penalty imposed to an amount less than the amount of tax, interest, or penalty imposed under a revenue law of this state, or a reduction in the amount of refund requested by a taxpayer. “Compromise” does not include correction of an error through cancellation of an erroneous billing, revision or withdrawal of an erroneous proposed assessment or billing, or other corrective actions taken by the Department.

(2) “Department” means the Florida Department of Revenue.

(3) “Reasonable cause” means a basis for compromise of penalty which has been shown to exist based upon the facts and circumstances of the specific case and which reflects that the taxpayer exercised ordinary care and prudence in complying with a revenue law of this state, as provided in Sections 213.21(2) and (3), F.S.

(4) “Revenue law of this state” means any statute listed in Section 72.011(1), F.S., that imposes a tax, penalty or interest, surcharge, permit, or fee collected by the Department.

(5) “Settle” means the resolution of a particular taxpayer’s liability for tax, interest, or penalty, or the resolution of a taxpayer’s refund request, by the Department under the provisions of this rule chapter.

(6) “Taxpayer” means a person subject to a revenue law of this state.

(7) In relation to an act or omission which constitutes a violation of the revenue laws of this state, “willful” means with actual knowledge or belief that such act or omission constitutes such violation and with intent nevertheless to commit or cause such act or omission.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21 FS. History–New 5-23-89, Amended 8-10-92, 10-2-01.

Fla. Admin. Code R. 12-13.003 Request for Settlement or Compromise

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.05, 213.21(2)(a), (3), (5) FS. History–New 5-23-89, Amended 8-10-92, 11-15-94, 10-2-01, Repealed 10-29-13.

Fla. Admin. Code R. 12-13.004 Delegation of Authority to Determine Settlements or Compromises

(1)(a) Authority to settle and compromise tax, interest, and penalty liabilities, and requests for refunds has, in addition to the statutory authorization in Section 213.21, F.S., been delegated to the Executive Director of the Department by the Governor and Cabinet as the head of the Department, pursuant to Rule 12-3.007, F.A.C.

(b) The Executive Director is authorized to settle and compromise tax, interest, and penalty, and refund requests in all matters in litigation, including litigation pursuant to Section 72.011, F.S.

(c) In all other instances, the Executive Director is authorized to settle and compromise tax, interest, and penalty, and refund requests where the amount of tax compromised is $500,000 or less. Any tax compromise of more than $500,000, excepting only those cases in litigation or those cases in which a taxpayer has reasonably relied on a written determination issued by the Department, must be approved by the Governor and Cabinet, as the head of the Department.

(2) When the Executive Director delegates authority to settle and compromise to specific employees or positions, as authorized by Section 213.21, F.S., the delegation will be in writing, signed by the Executive Director. Copies of written delegations of authority are maintained on file with the agency clerk in the Office of General Counsel.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(2) FS. History–New 5-23-89, Amended 8-10-92, 10-24-96, 10-2-01, 10-4-04, 9-13-10, 10-29-13, 1-19-15.

Fla. Admin. Code R. 12-13.005 Grounds for Finding Doubt as to Liability

(1) The Executive Director or the Executive Director’s designee, as enumerated in Rule 12-13.004, F.A.C., shall make a determination whether there is doubt as to liability for tax or interest based on all the facts and circumstances of the specific case. Doubt as to liability is indicated when there is reasonable doubt whether an action is required in view of conflicting rulings, decisions, or ambiguities in the law, and the taxpayer has exercised ordinary care and prudence in attempting to comply with the revenue laws of this state.

(2) Reasonable reliance upon the express terms of a written determination by the Department is one basis for doubt as to liability.

(a) For purposes of establishing doubt as to liability, a written determination shall be deemed issued by the Department under the following circumstances:

1. Audit workpapers from a prior audit of the same taxpayer clearly show that the same issue was considered in the course of the audit and that, after such consideration, the Department’s auditor determined that no assessment was appropriate in regard to that issue. Audit workpapers that fail to assess tax based on a particular issue are not a written determination in regard to that issue unless those workpapers clearly demonstrate that the auditor was aware of the issue and determined that no assessment was appropriate in regard to that issue. Failure by an auditor to recognize an issue and assess tax in the audit workpapers is not a basis for doubt as to liability based on a written determination by the Department.

a. Audit workpapers include all correspondence, notices, file memoranda, schedules, exhibits, or other documents an auditor generates, receives from the taxpayer, or reviews in the course of conducting an audit.

b. If an auditor submits a request for technical advice and an internal technical advisement is issued in response to that request, the internal technical advisement is part of the audit workpapers and will be considered a written determination of the Department as to that issue.

c. A written communication from the auditor to the taxpayer in the course of the audit that discusses an issue upon which no assessment is made will demonstrate that the issue was considered by the auditor.

d. If an auditor issues a notice of intent to make audit changes that includes an assessment on an issue and subsequently issues a revised notice of intent to make audit changes that removes the assessment on that issue, that revision and any written explanation the auditor prepares in regard to that revision establishes that the auditor determined that the taxpayer was not subject to assessment as to that issue.

e. Correspondence from the taxpayer to the auditor that discusses an issue upon which no assessment is made will demonstrate that the issue was considered by the auditor if the requirements of this sub-subparagraph are met. There must be documentation of the auditor’s receipt of the correspondence, such as the auditor’s signature on a receipt or a copy of the correspondence, if it is hand delivered, or a return receipt for registered or certified mail. Correspondence from the taxpayer will establish that the auditor considered an issue only if such correspondence is dated sufficiently prior to the auditor’s issuance of a notice of intent to make audit changes or a revised notice of intent to make audit changes to permit the auditor to investigate the issue and make a determination prior to issuing the notice. Correspondence from a taxpayer calling an issue to the auditor’s attention will not have the effect of establishing that the auditor considered the issue if that correspondence is delivered to the auditor after the auditor has substantially completed the auditor’s review of the taxpayer’s books and records, unless the taxpayer agrees to a reasonable extension of the time in which the auditor must complete the audit under the applicable statute of limitations.

2. A final notice of decision or notice of reconsideration withdrawing an assessment on the same issue during an informal protest of a proposed assessment in a prior audit of the same taxpayer was issued by the Department. Correspondence from the Department in which an issue is discussed prior to issuance of a final notice or any offer to compromise the assessment in lieu of or in conjunction with the issuance of a notice of decision or notice of reconsideration is not a written determination on the issue for purposes of establishing doubt as to liability. This subparagraph applies only to a notice of decision or a notice of reconsideration that resolves the issue in favor of the taxpayer based on a determination that the assessment was not supported by the governing legal authorities.

3. A technical assistance advisement was issued to the same taxpayer pursuant to Section 213.22, F.S., in regard to the same issue. For purposes of this paragraph, a technical assistance advisement issued to an industry association as the representative of its members in accordance with rule Chapter 12-11, F.A.C., will be considered a written determination as to any taxpayer that was a member of the association at the time the taxpayer reasonably relied upon the advisement.

(b) Only audit workpapers, notices of decision or reconsideration, and technical assistance advisements described in paragraph (a) are written determinations of the Department for purposes of Section 213.21(3), F.S. Audit workpapers, notices of decision or reconsideration, and technical assistance advisements are written determinations only as to the specific taxpayer or taxpayers to whom they were issued. For this purpose, if a taxpayer has multiple locations, the taxpayer may rely on a written determination issued as to any of the taxpayer’s locations for purposes of the taxpayer’s other locations so long as it is otherwise reasonable to do so under the criteria set forth in paragraph (c).

(c) A taxpayer must demonstrate that reliance on a written determination was reasonable. This requires that the taxpayer fully disclosed all material facts and did not misrepresent any material facts when the Department was considering the issue for purposes of issuing the written determination. Reliance on a written determination is reasonable only so long as the taxpayer continues to operate in accordance with the material facts upon which the written determination was based. Reliance by an industry association member on a technical assistance advisement issued to the association as the representative of its members is reasonable only when that member’s facts and circumstances conform in all material respects with the facts and circumstances upon which the technical assistance advisement to the industry association was based. If specific facts and circumstances change in a material manner, reliance on the written determination is no longer reasonable. Reliance on a written determination is not reasonable if the law applicable to an issue has changed so that the legal analysis on which the written determination was based is no longer valid. This would be the case if governing statutes or regulations have been materially revised or if a court of competent jurisdiction has published a final decision overruling the Department’s determination. Reliance is not reasonable if the Department notifies the taxpayer in writing that the previous written determination is no longer correct and should not be relied upon after the date of such notification.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(3) FS. History–New 5-23-89, Amended 8-10-92, 5-18-94, 10-2-01, 3-25-20.

Fla. Admin. Code R. 12-13.006 Grounds for Finding Doubt as to Collectability

Tax or interest or both will be compromised or settled on the grounds of “doubt as to collectibility” when it is determined that the financial status of the taxpayer is such that it is in the best interests of the State to settle or compromise the matter because full payment of the unpaid obligation is highly doubtful and there appears to be an advantage in having the case permanently and conclusively closed. The discretion to make this determination is delegated pursuant to the procedures in Rule 12-13.004, F.A.C.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21 FS. History–New 5-23-89, Amended 8-10-92, 10-2-01.

Fla. Admin. Code R. 12-13.0063 Grounds for Finding Department Delay in the Determination of an Amount Due

(1)(a) A taxpayer’s liability for interest associated in any of the chapters specified in Section 72.011(1), F.S., will be settled or compromised, in whole or in part, to the extent that the Department finds that the delay in the determination of an amount due is attributable to the action or inaction of the Department.

(b) Only the portion of interest due that is attributable to the Department’s delay will be compromised. The compromises of interest will be made by the Executive Director or the Executive Director’s designee, in accordance with Rule 12-13.004, F.A.C., upon a determination that sufficient grounds exist to support a compromise or settlement.

(2) The compromise authority under this rule only arises if the Department has initiated an audit or inquiry documented in writing, and only to the interest that accrues if there is undue delay by the Department in pursuing the audit or inquiry. The taxpayer is not entitled to a compromise of interest based on the fact that the Department did not initiate an audit or inquiry at an earlier date.

(3) This provision does not apply when the delay is attributable to action or inaction on the part of the taxpayer such as:

(a) Failure to produce adequate records;

(b) Requests for extensions of time for the convenience of the taxpayer; or

(c) Failure to timely respond to the Department’s requests for information.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(3)(a) FS. History–New 10-29-13.

Fla. Admin. Code R. 12-13.0064 Relief for Inadvertent Sales and Use Tax Registration Errors

(1) A vendor or purchaser will not be held liable for the tax, interest, or penalty that would otherwise be due when:

(a) The purchaser did not pay to the vendor tax due on a taxable transaction based on a good faith belief that the transaction was a nontaxable purchase for resale or the transaction was exempt as a purchase by a tax-exempt organization; and,

(b) Instead of the taxes, penalties, and interest that would otherwise be due, the purchaser pays the mandatory penalties.

(2) To qualify, the purchaser must meet all of the following conditions:

(a) At the time of purchase, the purchaser was not registered as a dealer or did not hold a valid Florida Consumer’s Certificate of Exemption issued by the Department;

(b) At the time of purchase, the purchaser was qualified to be registered with the Department as a dealer or was entitled to obtain a Florida Consumer’s Certificate of Exemption;

(c) Before requesting application of the provisions of this subsection, the purchaser has registered as a dealer or has obtained a valid Florida Consumer’s Certificate of Exemption;

(d) The transaction would otherwise qualify as a tax-exempt sale to the purchaser for resale or as a tax-exempt sale to an organization holding a valid Florida Consumer’s Certificate of Exemption, except that the purchaser was not registered as a dealer or did not hold a valid Florida Consumer’s Certificate of Exemption at the time of purchase; and,

(e) The purchaser establishes justifiable cause for failure to register as a dealer or to obtain a Florida Consumer’s Certificate of Exemption before making the purchase.

(3) The establishment of justifiable cause is demonstrated by such factors as:

(a) The complexity of the transaction;

(b) The purchaser’s business experience and history;

(c) Whether the purchaser sought advice on its tax obligations, and whether the advice was followed; or,

(d) Any remedial action taken by the purchaser.

(4) The purchaser or vendor must apply for relief:

1. Before the Department has initiated an audit or other action or inquiry; or

2. If any audit or other action or inquiry has been initiated, within seven days after being informed in writing by the Department that the purchaser was required to be registered with the Department or to obtain a Florida Consumer’s Certificate of Exemption.

(5) Instead of tax, penalties, and interest that would otherwise have been due on transactions, one of the following penalties must be paid by either the vendor or the purchaser when the purchaser or vendor:

(a) Applies for relief before an audit or other action or inquiry has been initiated by the Department, a mandatory penalty in the amount of the lesser of $1,000 or 10 percent of the total tax due on qualifying transactions; or,

(b) Applies for relief after an audit or other action or inquiry has been initiated by the Department, a mandatory penalty in the amount of the lesser of $5,000 or 20 percent of the total tax due on qualifying transactions.

(6) When tax, penalty, or interest have been waived under the provisions of this rule, any subsequent retail sale of any taxable item or service is subject to tax, plus any applicable penalties, interest, or service fees.

History

• Rulemaking Authority 212.07(c), 213.06(1),213.21(9) FS. Law Implemented 212.07(9), 213.21(9) FS. History–New 10-29-13

Fla. Admin. Code R. 12-13.007 Grounds for Reasonable Cause for Compromise of Penalties

(1) The Executive Director or the Executive Director’s designee will make a determination whether the taxpayer’s noncompliance was due to reasonable cause and not to willful negligence, willful neglect, or fraud based on the facts and circumstances of the specific case. The standard used in this determination is whether the taxpayer exercised ordinary care and prudence and was nevertheless unable to comply.

(a) When evaluating the facts and circumstances relevant to penalties assessed as a result of an audit, the Department shall consider information provided by the taxpayer in relation to the following:

1. Whether the taxpayer has been audited previously, and, if so, whether the penalties which are the subject of the compromise request result from taxpayer actions that resulted in a specific issue-related deficiency assessment during one or more of the previous audits. It is not the intent of this subparagraph to apply to infrequent occurrences of human error;

2. The materiality of the tax deficiency assessed in an audit when considered within the context of taxes correctly reported and timely remitted by the taxpayer for the same tax during the same audit period;

3. Whether the taxpayer has initiated controls or other actions that will promote proper future reporting with respect to those activities which contributed to the audit deficiency and related penalties; and,

4. Whether the tax was collected and not remitted to the state by the taxpayer.

(b) When evaluating the facts and circumstances relevant to penalties imposed pursuant to a billing not resulting from an audit, the Department shall consider:

1. The timeliness of payments made by the taxpayer during previous reporting periods;

2. The materiality of the tax deficiency to which the penalty relates within the context of the amount of the same taxes correctly reported and remitted;

3. Whether the taxpayer has initiated controls or other actions related to the errors that resulted in the billing and related penalties in order to promote better compliance in the future; and,

4. Whether the tax was collected and not remitted to the state by the taxpayer.

(2) Reasonable cause is indicated by the existence of facts and circumstances which support the exercise of ordinary care and prudence on the part of the taxpayer in complying with the revenue laws of this state. Depending upon the circumstances, reasonable cause may exist even though the circumstances indicate that slight negligence, inadvertence, mistake, or error resulted in noncompliance. Consideration will be given to the complexity of the facts and the difficulty of the tax law and the issue involved, and also to the existence or lack of clear rules or instructions covering the taxpayer’s situation.

(3) Ignorance of the law or an erroneous belief as to the need to comply with a revenue law constitutes reasonable cause when there are facts and circumstances which indicate ordinary care and prudence was exercised by the taxpayer.

(a) For example, ignorance of the law or an erroneous belief held by the taxpayer is a basis for reasonable cause when the taxpayer has a limited knowledge of business, a limited education, limited experience in Florida tax matters, or advice received from a competent advisor was relied upon in complying with the provisions of a revenue law.

(b) A good faith belief held by a taxpayer with limited business knowledge, limited education, or limited experience with Florida tax matters is a basis for reasonable cause when there is reasonable doubt as to whether compliance is required in view of conflicting rulings, decisions, or ambiguities in the law.

(4) Reliance upon the erroneous advice of an advisor is a basis for reasonable cause when the taxpayer relied in good faith upon written advice of an advisor who was competent in Florida tax matters and the advisor acted with full knowledge of all of the essential facts. Informal advice, advice based upon insufficient facts, advice received in cases where facts were deliberately concealed, or obviously erroneous advice are not grounds for reasonable cause. To establish reasonable cause based upon reliance on the advice of a competent advisor, the taxpayer shall demonstrate:

(a) That the taxpayer sought timely advice of a person who was competent in Florida tax matters;

(b) That the taxpayer provided the advisor with all of the necessary information and withheld nothing; and,

(c) That the taxpayer acted in good faith upon written advice actually received from the advisor.

(5) Reasonable reliance upon the express terms of written advice given by the Department establishes reasonable cause when the taxpayer shows that the advice was timely sought from a departmental employee and that all material facts were disclosed, and that the express terms of the advice were actually followed. “Written advice” for purposes of establishing reasonable cause as a basis for compromise of penalties includes a writing issued to the same taxpayer by the Department in response to that taxpayer’s request for advice. The determination whether the taxpayer has reasonably relied on such written advice will be made in accordance with the criteria for determining if a taxpayer has reasonably relied on a written determination for purposes of compromise of tax and interest as set forth in subsection 12-13.005(2), F.A.C.

(6) Reliance upon another person to comply with filing requirements, or to obtain information, or to properly prepare returns or reports, is a basis for reasonable cause, depending upon the circumstances. Noncompliance due to nonperformance of a ministerial-type function, inadvertent misplacement of returns, reports, or information, or the failure of the taxpayer’s agent to properly prepare or file returns or reports are each a basis for reasonable cause when the taxpayer establishes that adequate procedures or steps for complying existed; that the person responsible for performing the function ordinarily performed the task properly; or, that extenuating or unusual circumstances prevented compliance.

(7)(a) Death, illness, or incapacity of the taxpayer is a basis for reasonable cause when such circumstances directly prevented compliance or adversely affected the taxpayer’s ability to comply. An unexplained or unsupported claim of noncompliance due to death, illness, or incapacity is not a basis for reasonable cause. It must be shown that the death, illness, or incapacity directly prevented compliance, in spite of reasonable efforts to comply.

(b) Death, illness, or incapacity of a member of the taxpayer’s immediate family, or of a person solely responsible for maintaining information necessary to comply, or of a person with sole authority to prepare required returns or reports is a basis for reasonable cause when the noncompliance resulted directly from such a circumstance, in spite of reasonable efforts to comply.

(8) Circumstances beyond a taxpayer’s reasonable control, such as acts of war, natural disaster, accidental destruction by fire or other casualty, or unavoidable absence are a basis for reasonable cause when the taxpayer demonstrates such circumstances directly prevented compliance, or adversely affected the taxpayer’s ability to comply.

(9) Reasonable cause shall be presumed to exist whenever a taxpayer voluntarily self-discloses liability for tax, interest, or penalty by contacting the Department in writing to disclose and pay tax and interest due prior to any contact by the Department concerning such liability. The presumption does not apply when the taxpayer is registered with the Department or has routinely filed returns with the Department and the taxpayer’s self-disclosure relates to a delinquency or deficiency that is obvious and would routinely generate a billing if not otherwise self-disclosed.

(10) Reasonable cause shall be presumed to exist whenever a taxpayer voluntarily and timely participates in completion of forms provided to the taxpayer by the Department as part of a self-audit or self-analysis program and promptly remits tax and interest due pursuant to such self-audit or self-analysis.

(11) Reasonable cause shall be presumed to exist whenever a person who is not otherwise required to register as a dealer pursuant to Chapter 212, F.S., purchases consumer goods for personal use pursuant to a remote sale and remits Florida use tax and interest, either voluntarily or in prompt response to a proposed assessment, assessment, or use tax billing issued by the Department.

(12) Reasonable cause shall be presumed to exist whenever a person who is not otherwise required to register as a dealer pursuant to Chapter 212, F.S., purchases tangible personal property and imports same into Florida for business purposes and remits Florida use tax and interest, either voluntarily or in prompt response to a proposed assessment, assessment, or use tax billing issued by the Department.

(13) Reasonable cause shall be presumed to exist whenever the penalty at issue relates to tax or interest which is compromised on the basis of doubt as to liability or doubt as to collectibility.

(14) Subsections (3) through (13) are intended to provide examples and guidance to taxpayers and Department employees, but should not be construed to limit penalty compromises to only those circumstances described in such subsections. Penalty may be compromised whenever the facts and circumstances demonstrate reasonable cause.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21 FS. History–New 5-23-89, Amended 8-10-92, 5-18-94, 10-2-01, 10-29-13, 5-23-22.

Fla. Admin. Code R. 12-13.0075 Guidelines for Determining Amount of Compromise

(1) Tax and Interest.

(a) Doubt as to Liability. When determining the amount of a compromise of tax or interest based upon doubt as to liability, the following factors shall be considered by the Department:

1. Likelihood of prevailing on the issue in litigation;

2. Ambiguity in the applicable laws or rules, as evidenced by both the laws or rules themselves and the common interpretation and application of same among members of the taxpayer’s industry;

3. Whether doubt as to liability is based upon reasonable reliance by the taxpayer on a written determination by the Department as provided in subsection 12-13.005(2), F.A.C.; and,

4. Whether tax was collected but not remitted to the state by the taxpayer.

(b) Doubt as to Collectibility. When determining the amount of a compromise of tax or interest based upon doubt as to collectibility, the following factors shall be considered by the Department:

1. Whether the financial problems of the taxpayer can be addressed, in whole or in part, through use of a stipulated payment arrangement, in lieu of reduction of the taxpayer’s liability;

2. Whether a pattern of chronic tax delinquencies by the taxpayer exists to indicate that efforts to assist this taxpayer because of its financial problems will not ultimately serve the public interest but will simply afford this taxpayer a competitive advantage in the market; and,

3. Whether tax was collected but not remitted to the state by the taxpayer.

(2) Penalty. When determining the amount of a compromise of penalty based upon a finding of reasonable cause, the following factors shall be considered by the Department:

(a) Factors that weigh against reduction of penalty include:

1. The tax deficiency assessed as a result of an audit exceeds 5% of the total liability for the same tax for the audit period.

2. Taxpayer has been audited previously and the current tax deficiency resulted from specific issue-related error(s) identified in previous audit(s). It is not the intent that this subparagraph apply to infrequent occurrences of human error.

3. Taxpayer has been repeatedly delinquent in remitting the tax.

4. Taxpayer failed to promptly remit tax and interest upon receipt of a billing or notice.

5. Tax was collected but not remitted to the state by the taxpayer.

(b) Factors that weigh in favor of reduction of penalty include:

1. Tax assessed as a result of an audit is less than 5% of the total liability for the same tax for the audit period.

2. Tax deficiency assessed is a result of a first-time audit, or is a result of an audit conducted subsequent to an audit in which the same specific issue-related errors by the taxpayer were not present or not identified by the Department. It is not the intent that this subparagraph apply to infrequent occurrences of human error.

3. Taxpayer has not been repeatedly delinquent in remitting the tax to the Department.

4. Taxpayer demonstrated to auditor prior to conclusion of the audit that action had been taken to improve future compliance by correcting or controlling activities which gave rise to the tax deficiency and related penalty.

5. Taxpayer promptly remitted tax and interest upon receipt of a billing or notice.

(3) Penalties Specific to Sales and Use Tax and Transient Rental Taxes.

(a) For purposes of this subsection:

1. “Sales tax or transient rental tax liability” means sales and use taxes, discretionary sales surtaxes, convention development taxes, tourist development taxes, and tourist impact taxes reported on a sales and use tax return and remitted to the Department.

2. “Noncompliant filing event” means the failure to timely file a complete and accurate sales and use tax return or failure to timely pay the amount of the tax reported on a sales and use tax return. Noncompliant filing events include:

a. Sales and use tax returns that are not timely filed;

b. Sales and use tax payments that are not timely remitted in full;

c. Incomplete or inaccurate sales and use tax returns; or,

d. Any sales tax or transient rental tax liability or delinquency that remains outstanding after 30 days from the date the Department issues notification to the taxpayer.

(b) The Department will settle or compromise penalty imposed under Section 212.12(1)(a) or (2)(a), F.S., for a noncompliant filing event without an oral or written request from the taxpayer under the following conditions:

1. For taxpayers who file sales and use tax returns and remit sales tax or transient rental tax liabilities monthly, or an alternative-period basis as provided in paragraph 12A-1.056(1)(d), F.A.C., such penalties will be settled or compromised when the taxpayer has:

a. No noncompliant filing event in the immediately preceding 12-month period and no unresolved sales tax or transient rental tax liability resulting from a noncompliant filing event; or

b. One noncompliant filing event in the immediately preceding 12-month period that was resolved through payment of tax and interest and the filing of a sales and use tax return within 30 days after notification by the Department, and no unresolved sales tax or transient rental tax liability resulting from a noncompliant filing event.

2. For taxpayers who file sales and use tax returns and remit sales tax or transient rental taxes quarterly, such penalties will be settled or compromised if the taxpayer has no noncompliant filing event in the immediately preceding 12-month period and no unresolved sales tax or transient rental tax liability resulting from a noncompliant filing event.

(c)1. The penalties under Section 212.12(1)(a) or (2)(a), F.S., imposed on any taxpayer who has had two or more noncompliant filing events in the immediately preceding 12-month period will be settled or compromised by the Department when the taxpayer demonstrates that the noncompliant filing event was due to extraordinary circumstances.

2. For purposes of this subsection, “extraordinary circumstances” means the occurrence of events beyond the control of the taxpayer, such as the death of the taxpayer, acts of war or terrorism, natural disasters, fire, or other casualty, or the nonfeasance or misfeasance of the taxpayer’s employees or representatives responsible for compliance with the taxpayer’s sales tax or transient rental tax liability. To demonstrate the nonfeasance or misfeasance of an employee or representative, the taxpayer must show that the principals of the business lacked actual knowledge of the noncompliance and that the noncompliance was resolved within 30 days after actual knowledge.

(4) Penalties Specific to Failure to Collect Certain Taxes.

(a) Any penalty imposed under Section 212.12, F.S., for failure to collect sales tax, discretionary sales surtax, convention development tax, or rental car surcharge will be settled or compromised when:

1. The taxpayer’s failure to collect the tax, surtax, or surcharge was based on a good faith belief that the tax, surtax, or surcharge was not due on a transaction; and,

2. Because of the good faith belief that the transaction was not taxable, the taxpayer is now unable to charge and collect the tax, surtax, or surcharge from the purchaser.

(b) To request a compromise of penalties, the taxpayer must substantiate:

1. Why the taxpayer failed to collect the tax, surtax, or surcharge; and,

2. Why the taxpayer is unable to collect the tax, surtax, or surcharge due on the transaction from the purchaser.

(5) Administrative Collection Processing Fee.

(a) The Department will waive or reduce the administrative collection processing fee imposed under Section 213.24(3), F.S., when the taxpayer demonstrates that the failure to pay the full amount due on the initial notification of the collection event within 90 days was due to extraordinary circumstances.

(b) For purposes of this subsection, “collection event” means when a taxpayer fails to:

1. Timely file a complete return;

2. Timely pay the full amount reported on a return; or

3. Timely pay the full amount due resulting from an audit after all appeal rights have expired or the result has been finally determined.

(c) For purposes of this subsection, “extraordinary circumstances” means the occurrence of events beyond the control of the taxpayer, such as the death of the taxpayer, acts of war or terrorism, natural disasters, fire, or other casualty, or the nonfeasance or misfeasance of the taxpayer’s employees or representatives responsible for complying with the taxes and fees listed in Section 213.05, F.S., and the reemployment assistance tax. To demonstrate the nonfeasance or misfeasance of an employee or representative, the taxpayer must show that the principals of the business lacked actual knowledge of the collection event and any notification of the collection event.

(6) Service Fees for Returned Payments. When an unintentional error committed by the issuing financial institution, the taxpayer, or the Department results in a draft, order, or check being returned to the Department, and the unintentional error is substantiated by the Department, the service fee for returned payments imposed by Section 215.34(2), F.S., will be compromised by the Department. When the unintentional error is attributed to the issuing financial institution, the taxpayer will be required to submit to the Department a written statement from the financial institution, providing details of the error.

(7) Voluntary Self-Disclosure of Liability.

(a) When payment of delinquent tax and interest results from a voluntary, written self-disclosure, the Department will compromise all penalties.

(b) If the taxpayer has collected, but failed to remit tax, the Executive Director or the Executive Director’s designee has the authority to compromise penalties to no less than 5% of the delinquent tax, absent extenuating circumstances.

(8) Self Audits/Self-Analysis of Books.

(a) When a taxpayer timely responds to and complies with the Department’s request that the taxpayer participate in a self-audit or self-analysis of books and records, the Department will compromise all penalties.

(b) If the taxpayer has collected, but failed to remit tax, the Executive Director or the Executive Director’s designee has the authority to compromise penalties to no less than 5% of the delinquent tax, absent extenuating circumstances.

(9) Remote Sales. When a taxpayer who is not otherwise required to be registered pursuant to Chapter 212, F.S., purchases consumer goods for personal use pursuant to a remote sale and subsequently remits the tax and interest in response to a use tax billing issued by the Department for such goods, or voluntarily remits such tax and interest prior to any billing, the Department will compromise all penalties.

(10) Use Tax on Business Purchases. When a taxpayer who is not otherwise required to be registered pursuant to Chapter 212, F.S., purchases tangible personal property and imports same into the State of Florida for business purposes and subsequently promptly remits the tax and interest in response to a use tax billing issued by the Department for such tangible personal property, or voluntarily remits such tax and interest prior to any billing, the Department will compromise all penalties.

(11) Subsections (2) through (10) are intended to provide examples and guidance to taxpayers and Department employees but should not be construed to limit the compromise of penalties to only those circumstances described in such subsections. However, no compromise is authorized in situations involving fraud, willful negligence, or willful neglect on the part of the taxpayer.

History

• Rulemaking Authority 212.07(9)(c), 213.06(1), 213.21(5), (9) FS. Law Implemented 212.07(9), 213.21, 213.24(3) FS. History–New 8-10-92, Amended 10-2-01, 10-29-13, 5-23-22.

Fla. Admin. Code R. 12-13.008 Procedures for Compromise and Settlement of Taxes, Interest, and Penalties

(1)(a) The Department will consider compromise or settlement of the taxpayer’s liability for tax, interest, penalty, or service fees only upon receipt of the taxpayer’s request. A written request is required to be submitted to the Department when:

1. The request to settle or compromise is for an amount greater than $30,000;

2. The complexity of the issue(s) involved requires that the taxpayer submit a written request that explains the issue(s); or,

3. The taxpayer asks to submit the request in writing.

(b) The taxpayer’s request must include:

1. The taxpayer’s name, address, and taxpayer identifying number;

2. The type of tax and, if applicable, the type of penalty and service fees, and the taxable period(s) involved;

3. The amount of tax, interest, penalty, service fees involved; and,

4. A statement of the basis for settlement or compromise, including the facts and circumstances which substantiate the settlement or compromise and which indicate the absence of willful negligence, willful neglect, or fraud.

(2) A Department employee is authorized to settle or compromise tax, penalty, interest, or service fees within the employee’s authority when sufficient evidence exists to support the settlement or compromise. The authorized employee must document the facts and circumstances of the settlement or compromise in the Department’s record.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(2) FS. History–New 5-23-89, Amended 8-10-92, 5-18-94, 10-24-96, 10-2-01, 10-29-13.

Fla. Admin. Code R. 12-13.009 Closing Agreements

(1) A written closing agreement is necessary to settle or compromise tax, interest, or penalty when a tax matter relates to an assessment where the amount compromised is in excess of $30,000 or to a matter in an informal protest in Informal Dispute Resolution. Settlement or compromise of tax matters in litigation must be pursuant to a written settlement agreement, court order, or similar written document reflecting the agreement reached between the taxpayer and the Department. In all other cases of compromise or settlement, the signature and name of the person exercising the Department’s authority, the reason for the compromise or settlement, and the date the action was taken is required to be placed on the taxpayer’s written request or documented in the Department’s records of the compromise or settlement.

(2) When a written closing agreement is necessary, the Department will prepare a Closing Agreement and forward it to the taxpayer. The taxpayer must sign the agreement and return it to the Department.

(a) In the case of a corporate taxpayer, an officer of the corporation shall sign the agreement, and the corporate seal shall be affixed and attested by the secretary of the corporation.

(b) An authorized person qualified as a representative under Rule 12-6.005, F.A.C., who has duly filed a Power of Attorney and Declaration of Representative (form DR-835, incorporated by reference in Rule 12-6.0015, F.A.C.), which is signed and sworn to by the taxpayer being represented, is authorized to sign the agreement for the taxpayer which shall bind the taxpayer to the terms of the agreement.

(3) A closing agreement signed by the taxpayer and the Department settles the taxpayer’s liability for tax, interest, or penalty for the tax period specified in the agreement absent any specific provision to the contrary contained in such closing agreement. The closing agreement is binding upon the taxpayer and the Department unless there is a showing of fraud or misrepresentation of material fact, or unless the Department is required to make an adjustment of the taxpayer’s liability under Section 198.16 or 220.23, F.S. The taxpayer is not entitled to protest or institute judicial or administrative procedures to recover any tax, interest, or penalty paid pursuant to a closing agreement absent any specific provision to the contrary contained in such closing agreement.

(4) An offer for compromise or settlement which is not accepted, but is reflected in a proposed closing agreement shall not be deemed an admission by the Department or the taxpayer and will not prejudice either party’s position in litigation or in an administrative proceeding.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(2) FS. History–New 5-23-89, Amended 8-10-92, 5-18-94, 10-24-96, 10-2-01, 4-26-10, 10-29-13, 1-11-16.

Fla. Admin. Code R. 12-13.010 Special Provisions Applicable to Compromise of Estate Taxes

(1) Pursuant to Section 213.21(2)(b), F.S., the Executive Director is granted authority to compromise and settle the amount of taxes arising as a result of Chapter 198 and Section 213.21(3), F.S., authorizes the Department to compromise or settle tax, penalty, or interest in any amount.

(2) Doubt as to liability for or collectibility of estate tax and associated interest shall be evaluated based upon claims asserted by other states in which the decedent may arguably have been domiciled, in addition to whether the taxpayer has established grounds for finding doubt as to liability or collectibility in view of conflicting rulings, decisions, or ambiguities in the law, and whether the taxpayer has exercised ordinary care and prudence in attempting to comply with the revenue laws applicable to the compromise and settlement of other taxes.

(3) Reasonable cause for compromise of penalty shall be evaluated pursuant to the provisions of Rule 12-13.007, F.A.C.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(2)(b) FS. History–New 8-10-92, Amended 5-18-94, 10-2-01, 10-29-13.

Chapter 12-14 COLLECTION, REMITTANCE AND DISTRIBUTION OF COURT COSTS

Fla. Admin. Code R. 12-14.003 Remittance of Costs to the Department of Revenue

History

• Rulemaking Authority 938.01(1) FS. Law Implemented 938.01 FS. History–New 5-11-83, Formerly 12-14.03, Repealed 6-1-09.

Fla. Admin. Code R. 12-14.005 Form for Remittance of Costs to the Department of Revenue

History

• Rulemaking Authority 938.01(1) FS. Law Implemented 938.01 FS. History–New 8-4-83, Formerly 12-14.05, Amended 10-20-91, 8-10-92, Repealed 6-1-09.

Chapter 12-15 DEBT COLLECTION SERVICES

Fla. Admin. Code R. 12-15.001 Debt Collection Contracts

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.27 FS. History–New 3-2-86, Amended 12-7-92, 11-17-93, Repealed 5-9-13.

Fla. Admin. Code R. 12-15.005 Confidentiality

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.27 FS. History–New 3-2-86, Amended 11-17-93, Repealed 5-9-13.

Chapter 12-16 CONSENT AGREEMENTS

Fla. Admin. Code R. 12-16.001 Form of Consent Agreements

History

• Rulemaking Authority 20.05(5), 213.06(1) FS. Law Implemented 120.53, 213.23 FS. History–New 12-28-88, Repealed 4-5-98.

Fla. Admin. Code R. 12-16.002 Definitions

History

• Rulemaking Authority 20.05(5), 213.06(1) FS. Law Implemented 120.53(1)(b), 213.23 FS. History–New 12-28-88, Repealed 4-5-98.

Fla. Admin. Code R. 12-16.003 Form of Consent Agreements

(1) Consent agreements executed under this chapter shall specify the:

(a) Consent agreement number;

(b) Taxpayer’s name and business partner number;

(c) Type of tax or taxes, the period(s) covered, and the expiration dates for the statute of limitations for each tax type; and

(d) Service notification numbers.

(2)(a) The Department prescribes Form DR-872, Consent to Extend the Time to Issue an Assessment or to File a Claim for Refund, (January 2017, hereby incorporated by reference, effective 1/18) (http://www.flrules.org/Gateway/reference.asp?No=Ref-08952), as the form to be used for the purposes of this chapter. A sample copy of this form may be obtained, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at 1(850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(b) The Department will provide this form to the taxpayer with the information specified in subsection (1) entered on the form.

History

• Rulemaking Authority 213.06(1), 213.23(2) FS. Law Implemented 213.23 FS. History–New 12-28-88, Amended 3-16-93, 12-2-03, 1-25-12, 1-11-16, 1-17-18, 12-29-25.

Fla. Admin. Code R. 12-16.004 Delegation of Authority

(1) In addition to the statutory authority granted by Section 213.23, F.S., the Executive Director of the Department has authority to enter into consent agreements or extensions of consent agreements with taxpayers under authority granted by the Governor and Cabinet acting as the head of the Department. Cross Reference: Rule 12-3.007, F.A.C.

(2) The Executive Director of the Department is authorized to issue a delegation of authority setting forth those positions authorized to enter into consent agreements and extensions of consent agreements with taxpayers under Section 213.23, F.S. Any such delegation will be in writing, signed by the Executive Director. Copies of written delegations of authority are maintained on file with the agency clerk in the Office of General Counsel.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.23 FS. History–New 12-28-88, Amended 3-16-93, 12-2-03, 9-13-10, 10-29-13.

Fla. Admin. Code R. 12-16.005 Requirements for Consent Agreements

(1) The Department will enter into a consent agreement with a taxpayer when additional time is deemed necessary to conduct or complete an audit, examination, or review of the taxpayer’s account to determine whether a liability or overpayment exists or whether there has been compliance with a revenue law of this state, unless the provisions of paragraph (3)(b) of this rule apply.

(2) A consent agreement must be executed before the expiration of the statutory period for issuance of an assessment or the period for filing a refund claim with respect to a revenue law of this state covered by the agreement.

(3)(a) The consent agreement will extend the time for issuance of an assessment or for filing of a refund claim for a stated period which is mutually agreed upon by the Department and the taxpayer. The time for making an assessment or filing of a refund claim may be extended for additional periods, provided the Department and the taxpayer, prior to the expiration of the period previously agreed upon, execute another consent agreement reflecting the new expiration date.

(b) The Department will enter into a consent agreement or an extension of a consent agreement as authorized in paragraph (a) of this subsection, unless the Department determines, based on the taxpayer’s actions or the best information available, that: the taxpayer does not intend to provide the required documentation, books, or records; or, the taxpayer intends to delay the issuance of an assessment; or, there is significant endangerment to the revenues involved.

(4) A consent agreement or an extension of a consent agreement shall be signed and dated on behalf of the Department by a person with delegated authority to enter into a consent agreement or an extension of a consent agreement under Rule 12-16.004, F.A.C.

(5) A consent agreement or an extension of a consent agreement shall be signed and dated by the taxpayer or the taxpayer’s duly authorized representative with authority to enter into the agreement or extension of the agreement on behalf of the taxpayer.

(a) In the case of a corporate taxpayer, an officer of the corporation shall print and sign his or her name and title and print or type the name of the corporation on the consent agreement or the extension of the consent agreement unless paragraph (c) of this subsection is applicable.

(b) An officer’s signature on a consent agreement or an extension of a consent agreement made by or for a taxpayer shall be prima facie evidence that such individual was authorized to sign the agreement or the extension of the agreement on behalf of the taxpayer.

(c) A consent agreement or the extension of a consent agreement will be accepted by the Department if it is signed by a representative of the taxpayer who files with the Department a power of attorney which grants the representative authority to execute the agreement or the extension of the agreement on behalf of the taxpayer.

(6)(a) A consent agreement or an extension of a consent agreement is effective when it has been signed and dated by both the taxpayer or authorized representative and on behalf of the Department by a person with the delegated authority.

(b) The Department will use the later of the date the agreement or extension is signed and dated by the taxpayer or the Department to determine whether the agreement is timely.

(c) A consent agreement or an extension of a consent agreement will remain in effect until both parties mutually agree to nullify or extend it, or until the consent agreement period has expired.

(7) A consent agreement or an extension of a consent agreement, signed and dated by both the taxpayer or authorized representative and on behalf of the Department by a person with delegated authority, is binding and sufficient when transmitted by electronic means or facsimile.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.23 FS. History–New 12-28-88, Amended 12-2-03, 6-28-10.

Chapter 12-17 AGREEMENTS FOR SCHEDULING PAYMENTS OF LIABILITIES

Fla. Admin. Code R. 12-17.001 Scope of Rules

(1) The rules set forth in this chapter are used by the Department in exercising the authority granted by Section 213.21(4), F.S., to enter into agreements for scheduling payments of outstanding liabilities.

(2) Except for the delegations of authority provided in Rule 12-17.004, F.A.C., the rules set forth in this chapter do not apply to any stipulated time payment agreement made a part of:

(a) Any closing agreement executed pursuant to Section 213.21(2)(a), F.S., and Rule 12-13.009, F.A.C.;

(b) Any compliance agreement entered into pursuant to Section 212.18 or 213.692, F.S.;

(c) Any proceeding pursuant to Chapter 120, F.S.; or

(d) The settlement of any action filed by a taxpayer in circuit court, as provided in Section 72.011, F.S.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.015(10), 213.21(4) FS. History–New 10-4-89, Amended 4-29-03, 3-12-14, 12-29-25.

Fla. Admin. Code R. 12-17.002 Definitions

(1) “Department” means the Florida Department of Revenue.

(2) “Taxpayer” means any person, as defined in Section 1.01, F.S., required to remit any tax, surtax, surcharge, or fee listed in Section 213.05, F.S., that is administered, regulated, controlled, and collected by the Department, and any employing unit required to pay any contribution or reimbursement required under Chapter 443, F.S.

(3) “Stipulated time payment agreement” means a written agreement entered into by the Department and taxpayer which schedules payments of outstanding liabilities over a specified period of time.

(4) “Collection action” means the issuance of a delinquent notice or billing, a tax warrant or notice of lien, or any other attempt to obtain payment of an unpaid amount. The term “collection action” does not include an attempt by an auditor to collect an assessment arising from the performance of an audit by such auditor.

(5) “Outstanding liabilities” means any unpaid taxes, surtaxes, surcharges, or fees listed in Section 213.05, F.S., that are administered, regulated, controlled, and collected by the Department, or any unpaid contributions or reimbursements required under Chapter 443, F.S. Outstanding liabilities also include any associated penalties, interest, fees, or collection costs.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(4) FS. History–New 10-4-89, Amended 4-29-03, 3-12-14.

Fla. Admin. Code R. 12-17.003 Requirements for Considering Entering into Stipulated Time Payment Agreements

(1) A taxpayer requesting a stipulated time payment agreement must first:

(a) Acknowledge the taxpayer’s outstanding liabilities finally determined to be due by the Department;

(b) Demonstrate to the satisfaction of the Department that he or she is currently unable to make a single lump sum payment to fully satisfy outstanding liabilities, or that a lump sum payment of the amounts due would impose an undue economic or financial hardship on the taxpayer; and,

(c) Pay all outstanding liabilities not covered by the requested stipulated time payment agreement due to the Department.

(2) Pursuant to Section 213.24, F.S., the Department will not agree to a stipulated time payment agreement if the outstanding liabilities due from the taxpayer are less than the costs the Department will incur to administer the taxpayer’s stipulated time payment agreement.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(4), 213.24(3) FS. History–New 10-4-89, Amended 10-5-92, 4-29-03, 3-12-14.

Fla. Admin. Code R. 12-17.004 Delegation of Authority

(1) In addition to the statutory authority granted by Section 213.21(4), F.S., the Executive Director of the Department has authority to enter into agreements with taxpayers for scheduling payments for outstanding liabilities under authority granted by the Governor and Cabinet as the head of the Department.

(2) The Executive Director of the Department is authorized to issue a delegation of authority setting forth those positions authorized to enter into stipulated time payment agreements with taxpayers under Section 213.21(4), F.S. Any such delegation will be in writing, signed by the Executive Director. Copies of written delegations of authority are maintained on file with the agency clerk in the Office of General Counsel.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(4), 213.24(3) FS. History–New 10-4-89, Amended 10-5-92, 8-17-94, 4-29-03, 9-13-10, 3-12-14.

Fla. Admin. Code R. 12-17.005 Factors Considered by the Department

The Department will apply one or more of the following factors when determining whether to enter into a stipulated time payment agreement, in determining the existence of undue economic or financial hardship or the inability of a taxpayer to satisfy outstanding liabilities in a lump sum, and in determining the terms of the stipulated time payment agreements:

(1) The taxpayer’s previous payment record with the Department;

(2) The taxpayer’s ability to meet a payment schedule obligation;

(3) The payment amount and the length of time required to retire the outstanding liabilities;

(4) The future outlook of the taxpayer’s business and the industry;

(5) The financial impact on the taxpayer if required to make a lump sum payment;

(6) Whether the taxpayer collected, but did not remit, the tax addressed by the agreement;

(7) Whether the taxpayer institutes business practices to ensure the proper collection and remittance of tax in the future;

(8) Whether the state would eventually receive more of the taxes due by entering into a stipulated time payment agreement than by requiring a lump sum payment;

(9) Any recommendation submitted by a Department auditor based on an examination of the taxpayer’s records; and,

(10) Any additional written information the taxpayer presents for the Department’s consideration.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(4) FS. History–New 10-4-89, Amended 4-29-03, 3-12-14.

Fla. Admin. Code R. 12-17.006 Procedures

(1) In instances where the Department does not already have the following information and items, a taxpayer requesting a stipulated time payment agreement must provide the following to the Department:

(a) Taxpayer’s name, address, business partner number, federal employer identification number, audit identification number, and all account identification numbers requested by the Department;

(b) Any outstanding tax returns identifying any tax due, by tax type, and the taxable period(s) that apply (any outstanding liabilities due will be computed at the time the agreement is completed);

(c) An acknowledgment of the outstanding liabilities determined to be due by the Department, and that the taxpayer agrees to waive any and all rights, or purported rights, to institute any administrative or judicial proceedings to recover, compromise, defer, restructure, avoid, challenge, or reduce any outstanding liabilities paid or payable pursuant to the agreement;

(d) An oral or written explanation regarding the factual basis for the undue hardship or current inability to satisfy the outstanding liabilities in a lump sum and documentary evidence to support the taxpayer’s basis for relief; and,

(e) A proposal for satisfaction of the outstanding liabilities that indicates projected cash flow for the succeeding 12 months.

(2) After consideration of the taxpayer’s request for relief, the Department will:

(a) Accept the request by executing a stipulated time payment agreement; or

(b) Reject the request in whole or in part; or

(c) Make a counter-proposal.

(3) Excluding stipulated time payment agreements arising from audit assessments, any stipulated time payment agreement entered into by the Department does not prohibit the Department from conducting a future audit for the periods and taxes covered by the payment agreement.

(4) A request for a stipulated time payment agreement which is not accepted on behalf of the Department will not be deemed an admission of liability pursuant to Section 90.408, F.S.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(4) FS. History–New 10-4-89, Amended 10-5-92, 4-29-03, 3-12-14.

Fla. Admin. Code R. 12-17.007 Form and Execution of Stipulated Time Payment Agreements

(1) Every stipulated time payment agreement executed under this chapter will specify the name, business partner number, account identification number, and audit identification number, if applicable, of the taxpayer; the taxpayer’s current business address and the current address of the physical location of the business; the type of tax and the taxable periods covered; the date of the assessment, warrant, or notice of lien, and the terms of the agreement.

(2) Every stipulated time payment agreement must be signed on behalf of the Department by a person with delegated authority to enter into the agreement under Rule 12-17.004, F.A.C.

(3) Every stipulated time payment agreement must be signed by the taxpayer or the taxpayer’s representative with authority to enter into the agreement on behalf of the taxpayer.

(a) In the case of a corporate taxpayer, an officer of the corporation must sign the agreement unless paragraph (c) of this subsection is applicable.

(b) An officer’s or fiduciary’s signature on a stipulated time payment agreement made by or for a taxpayer is prima facie evidence that such individual was authorized to sign the agreement on behalf of the taxpayer.

(c) A stipulated time payment agreement may be signed by a representative of the taxpayer who files with the Department a Power of Attorney and Declaration of Representative (Form DR-835, incorporated by reference in Rule 12-6.0015, F.A.C.).

(4) A stipulated time payment agreement will become effective when it has been executed by all parties. Any modification of the terms of the agreement must be in writing and executed by all parties. Upon presentation of the agreement, the Department will provide the taxpayer with a detailed amortization schedule of payments required for satisfaction of the outstanding liabilities.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(4) FS. History–New 10-4-89, Amended 10-5-92, 8-17-94, 4-29-03, 3-12-14.

Fla. Admin. Code R. 12-17.008 Terms of Stipulated Time Payment Agreements

(1) Every stipulated time payment agreement will include a discussion and determination of each of the following issues:

(a) The number of payments to be made during the term of the agreement;

(b) The frequency and due date of each payment to be made during the term of the agreement;

(c) The amount of any down payment and the amount of each payment to be made during the term of the agreement;

(d) How the Department will allocate each payment to reduce the outstanding liabilities.

(2) A down payment in a stipulated time payment agreement will be based upon the taxpayer’s filing and payment history, the amount of the outstanding liabilities, and any financial information provided by the taxpayer reflecting the taxpayer’s ability to pay.

(3) Where there is risk to the state regarding collection of the amount due, additional terms will be included in a stipulated time payment agreement.

(4) Every stipulated time payment agreement will include a notification that:

(a) Interest will continue to accrue on the unpaid balance of the tax at the stated rate.

(b) The taxpayer agrees to waive any and all rights, or purported rights, to institute any judicial or administrative proceeding to recover, compromise, defer, restructure, avoid, challenge or reduce any outstanding liabilities paid or payable pursuant to the agreement.

(c) The taxpayer agrees to accurately complete and timely file all required tax returns and timely remit all taxes that become due during the term of the agreement.

(d) The taxpayer agrees to pay each stipulated time payment to the Department by electronic means on or before the due date, unless a variance or waiver is granted pursuant to Section 120.542, F.S., and rule Chapter 28-104, F.A.C.

(e) The taxpayer understands that the provisions of Section 213.732, F.S., relating to jeopardy assessments continue to apply during the terms of the agreement.

(f) The taxpayer will be held in default of the terms of the stipulated time payment agreement when the taxpayer fails to comply with all terms of the agreement.

(g) If the taxpayer is held in default of the terms of the agreement, the Department will implement one or more of the following actions:

1. Issue a warrant or notice of lien for any outstanding liability and file a judgment lien certificate;

2. Issue levy instructions to the sheriff;

3. Refer the outstanding liability to the Department of Business and Professional Regulation for license action;

4. Implement the garnishment provisions of Section 213.67, F.S.;

5. Implement the provisions of Sections 212.18 and 213.692, F.S., to revoke all certificates of registration, permits, or licenses issued by the Department to the taxpayer;

6. Implement the provisions of Section 443.141, F.S., for collection of the outstanding contributions or reimbursements;

7. Assess the responsible person a penalty pursuant to Section 213.29, F.S.; or

8. Any other action provided by law to collect all outstanding liabilities.

(h) If the taxpayer fails to comply with the terms of the agreement, the Department is entitled to recover the outstanding liabilities, including attorney’s fees.

(i) The waiver by the Department of any breach of a stipulated time payment agreement by the taxpayer does not constitute a waiver of any other breach.

(5) When a taxpayer is in compliance with the terms of a stipulated time payment agreement, the Department agrees not to commence any additional collection activities for the outstanding liabilities. However, the provisions of Sections 213.732 and 443.141, F.S., relating to jeopardy assessments continue to apply during the terms of the agreement.

(6) The amount of the outstanding liabilities identified in any stipulated time payment agreement is subject to increase when the Department discovers through audit or otherwise that the outstanding liabilities have been understated. If the Department discovers through audit or otherwise that the outstanding liabilities are understated, the taxpayer will be assessed the additional liabilites. The taxpayer may protest the additional outstanding liabilities assessed, as provided in rule Chapter 12-6, F.A.C.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(4) FS. History–New 10-4-89, Amended 10-5-92, 6-15-93, 4-29-03, 3-12-14, 9-3-26.

Fla. Admin. Code R. 12-17.009 Agreements in Default

(1) A taxpayer who fails to comply with the terms of a stipulated time payment agreement will be held in default.

(2) In the absence of jeopardy, as provided in Section 213.732, F.S., before holding a taxpayer in default of a stipulated time payment agreement, the Department will notify the taxpayer in writing of the failure to meet the terms of the agreement and provide the taxpayer the opportunity to present evidence of compliance with the current agreement.

(a) If the taxpayer fails to present evidence of compliance within 15 consecutive calendar days of the date on the notification from the Department, the taxpayer will be held in default of the terms of the agreement.

(b) If the taxpayer is held in default by the Department, the taxpayer will have an additional 15 consecutive calendar days after the date the Department notifies the taxpayer to request that the Department reconsider and to submit written proof that there are “reasonable cause” grounds for not holding the agreement in default, pursuant to the “reasonable cause” provisions in Section 213.21, F.S., and Rule 12-13.007, F.A.C.

(c) If the taxpayer does not establish “reasonable cause” within the 15 consecutive calendar day period, the Department’s decision that the taxpayer is in default of the terms of the agreement becomes final.

(3) Any outstanding liabilities that remain due at the time a taxpayer is held in default of the terms of a stipulated time payment agreement are immediately due and payable.

History

• Rulemaking Authority 213.06(1), 213.21(5) FS. Law Implemented 213.21(4) FS. History–New 10-4-89, Amended 4-29-03, 3-12-14.

Fla. Admin. Code R. 12-17.010 Public Use Forms

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.21(4) FS. History–New 4-29-03, Repealed 3-12-14.

Chapter 12-18 COMPENSATION FOR TAX INFORMATION

Fla. Admin. Code R. 12-18.001 Authorization for Compensation

(1)(a) The Executive Director of the Department of Revenue or the Executive Director’s designee is authorized to compensate persons who provide information leading to the punishment of, or collection of taxes, surtaxes, surcharges, fees, penalties, or interest from, any person with respect to the taxes enumerated in Section 213.05, F.S. The Department is not authorized to compensate persons who provide information with respect to a revenue or tax law that is not administered, regulated, controlled, and collected by the Department, as provided in Section 213.05, F.S. No person is authorized under these rules to make any offer, or promise, or otherwise to bind the Executive Director or the Executive Director’s designee with respect to the payment of any compensation or the amount thereof.

(b) The Department administers, regulates, controls, and collects the following:

1. Communications services tax;

2. Corporate income tax;

3. Estate tax;

4. Documentary stamp tax;

5. Fuel taxes on motor fuel, diesel fuel, aviation fuel, and alternative fuel, including local option taxes;

6. Government leasehold intangible personal property tax;

7. Gross receipts tax on dry-cleaning;

8. Gross receipts tax on natural gas, manufactured gas, or electricity;

9. Insurance premium taxes, fees, regulatory assessments, excise taxes, and surcharges required to be remitted to the Department;

10. Intangible personal property tax;

11. Local option convention development tax, tourist development tax, and tourist impact tax when the imposing local government has not elected to self-administer the tax;

12. Miami-Dade County lake belt mitigation and water treatment upgrade fees;

13. Motor vehicle warranty fees;

14. Pollutant taxes;

15. Registration as a secondhand dealer, secondary metals recycler, or a mail-in secondhand precious metal dealer;

16. Rental car surcharge;

17. Sales and use tax and local option discretionary sales surtaxes;

18. Severance taxes, fees, and surcharges on gas and sulfur production, oil production, and solid mineral severance; and,

19. Solid waste fees, including the new tire fee and the new or remanufactured lead-acid battery fee.

(2) A payment of $100 is also authorized for any person who provides information to the Department which results in the identification and registration of a taxpayer who is not in compliance with the registration requirements administered by the Department, and who conducts business from a permanent fixed location, is engaged in a bona fide taxable activity, and is found by the Department to have an unpaid tax liability.

History

• Rulemaking Authority 213.06(1), 213.30(1) FS. Law Implemented 213.30 FS. History–New 6-21-88, Amended 11-14-91, 9-14-93,10-19-99, 6-1-09, 1-25-12, 7-28-15.

Fla. Admin. Code R. 12-18.002 Eligibility to File Claim for Compensation

(1) A claim for compensation may be filed by an executor, administrator, or other legal representative on behalf of a deceased applicant, if, prior to death, the deceased was eligible to file a claim for such compensation.

(2) Eligibility for any compensation that may be due will be limited to the first person who provides information that results in the Department’s collection of previously uncollected taxes. The applicant’s priority as to any claim for compensation will be established according to the date and time the Department receives a completed Form DR-55, Application for Compensation for Tax Information (incorporated by reference in Rule 12-18.004, F.A.C.)

(3) No compensation will be due if the information furnished to the Department at the time of application has previously been discovered by the Department during its administration of the revenue laws pursuant to Section 213.05, F.S.

(4) No compensation will be due for information leading to the registration of a taxpayer whose registration was canceled by the Department in error, unless the taxpayer continues to collect but fails to remit tax, or when a taxpayer has relocated or reorganized its business (e.g., a proprietorship, partnership, or corporation) and is remitting tax payments under a previously issued registration number.

(5) The Executive Director, or the Executive Director’s designee, will refuse to compensate an applicant for information leading to the recovery of uncollected taxes, or the registration of a noncompliant taxpayer, if the applicant shared significant responsibility for, or was substantially at fault with regard to, or caused, the reported failure, or would be liable for the penalty imposed and described in Section 213.29, F.S.

History

• Rulemaking Authority 213.06(1), 213.30(1) FS. Law Implemented 213.30 FS. History–New 6-21-88, Amended 11-14-91, 10-19-99, 6-1-09.

Fla. Admin. Code R. 12-18.003 Amount and Payment of Compensation

(1) The Executive Director of the Department of Revenue or the Executive Director’s designee shall make the final determination whether compensation should be paid and, if so, the amount thereof. The amount will not exceed 10 percent of the total amount of delinquent taxes, penalties, and interest collected as a result of the information provided. The total amount of compensation determined to be due will be made as promptly as the circumstances permit, but not until the total amount of taxes, penalties, or interest involved has been collected. However, the applicant may elect to receive compensation at any time prior to the collection of all tax, penalty, or interest by waiving a claim to any uncollected portion of the taxes, penalties, or interest involved. If the applicant provides information concerning related taxpayers and raises similar issues, the applicant is not entitled to any compensation until final determinations resolving all issues are made as to each taxpayer.

(2) The amount of compensation due for providing information resulting in the collection of taxes, penalties, and interest, except for the collection of unpaid taxes derived from the operation of vending machines, will take into account the value of the information in relation to the facts developed in the investigation or inspection of records.

(a) The amount of compensation will be 10 percent of the taxes, penalties, and interest collected when:

1. The information is provided in the form of detailed and specific documentary or testimonial evidence;

2. The information directly caused an investigation or inspection of records;

3. The information directly resulted in the recovery of taxes, penalties, or interest due that included taxes, penalties, and interest due on a specific infraction of the revenue laws administered by the Department pursuant to Section 213.05, F.S.; and,

4. The detailed and specific documentary or testimonial evidence provided by the applicant significantly reduced the time and resources expended in establishing the facts necessary to determine that an infraction of those revenue laws existed.

(b) The amount of compensation will be 5 percent of the taxes, penalties, and interest collected when:

1. The information provided directly caused an investigation or inspection of records; and,

2. The information, although not of sufficient detail or specificity to constitute evidence, was a significant factor in establishing that an infraction occurred and in the recovery of taxes, penalties, and interest due that included taxes, penalties, and interest due on a specific infraction of the revenue laws administered by the Department pursuant to Section 213.05, F.S.

(c) The amount of compensation will be 1 percent of the taxes, penalties, and interest collected when:

1. The information caused an investigation or inspection of records; and,

2. The information provided was of no value in determining the specific liability for taxes, penalties, or interest due.

(3) Where an applicant furnishes only the name and address of a taxpayer with no additional information of a material nature, the applicant will not be entitled to compensation.

(4) In instances where the applicant provides information that leads to the registration of a noncompliant taxpayer, the applicant may also be eligible for the $100 payment authorized under Section 213.30(1)(b), F.S. Additional compensation, if any, will be based on the collection of taxes, penalties, or interest as provided in subsections (1) and (2) of this rule.

(5) Where an applicant is paid compensation for providing information which resulted in the recovery of taxes, penalties, or interest from a person, as provided in Section 213.30, F.S., and these rules, compensation will be limited to the tax liability that was initially determined and collected as a result of the information provided.

(6) The provisions of Rule 12-18.008, F.A.C., will govern the amount of compensation paid for information leading to the recovery of unpaid taxes derived from the operation of vending machines.

History

• Rulemaking Authority 213.06(1), 213.30(1) FS. Law Implemented 213.30 FS. History–New 6-21-88, Amended 11-14-91, 9-14-93, 10-19-99, 10-30-06.

Fla. Admin. Code R. 12-18.004 Submission of Information and Claims for Compensation

(1) Information relating to violations of the Florida revenue laws should be submitted to the Tax Violations and Rewards Process. Information must be submitted in writing. Correspondence should be directed to the Florida Department of Revenue, Tax Violations and Rewards – General Tax Administration, P.O. Box 6417, Tallahassee, Florida 32314-6417, or to any Department of Revenue Service Center. If the information is submitted in person, the name and official title of the Department of Revenue employee to whom it is submitted and the date on which it is submitted must be included in the formal claim for reward. (See Rule 12-18.008, F.A.C., for information on reporting violations regarding vending machines.)

(2) A person who is submitting information to the Department and intends to apply for compensation must notify the person to whom he or she submits the information of such intention and must file a formal claim, signed with his or her legal name, as soon after the submission of the information as practical. Applications for compensation under Section 213.30, F.S., must be made in writing. Applications must be complete; the Department will not process incomplete applications.

(3)(a) The Department designates Form DR-55, Application for Compensation for Tax Information, as the form to be used by claimants for this purpose. Form DR-55, Application for Compensation for Tax Information (R. 07/15, Effective 07/15 (http://www.flrules.org/Gateway/reference.asp?No=Ref-05593), is hereby incorporated, by reference, in this rule.

(b) Copies of this form may be obtained, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday, (excluding holidays) or, 3) writing the Florida Department of Revenue, Tax Violations and Rewards-General Tax Administration, P.O. Box 6417, Tallahassee, FL 32314-6417. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

History

• Rulemaking Authority 213.06(1), 213.30(1) FS. Law Implemented 213.30 FS. History–New 6-21-88, Amended 11-14-91, 10-19-99, 10-1-03, 10-30-06, 6-1-09, 6-28-10, 1-25-12, 7-28-15, 12-29-25.

Fla. Admin. Code R. 12-18.005 Confidentiality and Anonymity

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.30 FS. History–New 6-21-88, Amended 11-14-91, 9-14-93, Repealed 10-19-99.

Fla. Admin. Code R. 12-18.006 Filing Claim for Compensation

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.30 FS. History–New 6-21-88, Amended 11-14-91, 9-14-93, Repealed 10-19-99.

Fla. Admin. Code R. 12-18.008 Compensation for Vending Machine Violations

(1) The Department of Revenue is authorized to compensate persons who provide information leading to the recovery of unpaid taxes derived from the operation of vending machines within this state. This rule section will be used by the Department in the administration of this authority.

(2) Operators of vending machines must be registered with the Department of Revenue, as provided in Rule 12A-1.044, F.A.C.

(3) Any person who provides information showing that an operator of a vending machine has failed to register with the Department of Revenue may be eligible for compensation.

(a) If the reported violation leads to the recovery of unpaid taxes derived from the operation of vending machines, the applicant will be eligible for a payment of 10 percent of all taxes recovered from the operator on the operation of all vending machines of the reported violator.

(b) If the reported violation leads to the recovery of taxes unrelated to the operation of vending machines, the applicant may also be eligible for compensation under the provisions of subsection 12-18.003(2), F.A.C.

(4) Eligible persons desiring to file a claim for compensation may report violations regarding a vending machine by calling toll free number 1(800)352-9273 (in Florida only) or (850)717-6994, email (taxviolations@floridarevenue.com), or by writing the Florida Department of Revenue, Tax Violations – General Tax Administration, P.O. Box 6417, Tallahassee, Florida 32314-6417. The use of the toll free number or email is encouraged, since the applicant’s priority for the claim for compensation will be established by the date and time the Department receives the information specified under subsection (5).

(5)(a) All claims for a reward relating to an operator’s failure to register with the Department of Revenue must include the following information:

1. Name, address, social security number, and telephone number of applicant; and,

2. Type and/or description of the vending machine (e.g., brand name on machine or type of merchandise vended); and,

3. Location of the machine(s) (e.g., name of business, street address, and approximate location inside the building); and,

4. The date the violation was discovered.

5. Social security numbers are used by the Florida Department of Revenue as unique identifiers for the administration of Florida’s taxes. Social security numbers obtained for tax administration purposes are confidential under Sections 213.053 and 119.071, F.S., and are not subject to disclosure as public records. Collection of an individual’s social security number is authorized under state and federal law. Visit the Department’s website at floridarevenue.com and select “Privacy Notice” for more information regarding the state and federal law governing the collection, use, or release of social security numbers, including authorized exceptions.

(b) Reports of violations which do not provide the Department with the information required to locate and investigate the operator’s purported failure to conform to the provisions of Section 212.0515(3), F.S., will not be considered for the purpose of qualifying the applicant for compensation.

(6) The Department, upon receipt of all required information relating to a reported violation, will enter the information in an internal tracking system. A claim number will be assigned to each reported violation based on the date and time the information was received by the Department. The claim number will be used to identify the case within the tracking system and establish the informant’s priority with regard to potential compensation.

(7) The Department will prepare and issue a letter of acknowledgment to the applicant which confirms receipt of the information required for a claim and provides the applicant with the previously assigned claim number.

History

• Rulemaking Authority 212.0515(6), 213.06(1), 213.30(1) FS. Law Implemented 212.0515, 213.30 FS. History‒New 5-11-92, Amended 10-19-99, 6-1-09, 5-9-13, 7-28-15, 4-16-18.

Chapter 12-19 REPORTS OF LARGE CURRENCY TRANSACTIONS

Fla. Admin. Code R. 12-19.001 Scope of Rule

History

• Rulemaking Authority 896.102(3) FS. Law Implemented 896.102 FS. History–New 2-18-88, Repealed 5-9-13.

Fla. Admin. Code R. 12-19.002 Large Currency Transaction Reports Required

The Florida Money Laundering Act imposes a state reporting requirement with respect to large currency transactions. The Florida reporting requirement is similar to the federal reporting requirement imposed under 26 U.S.C. s.6050I with respect to these transactions.

(1) Any person engaged in a trade or business in this state, other than a financial institution, must file a report with the Department of Revenue when such person receives more than $10,000 in currency in a single transaction, or in two or more related transactions, in the course of such trade or business. For the purposes of these rules, the following definitions shall apply:

(a) “Person” means an individual, corporation, partnership, trust or estate, joint stock company, syndicate, joint venture, or other unincorporated organization or group, and all entities treated as legal personalities, including organizations which are exempt from tax.

(b) The term “engaged in a trade or business” has the same meaning as under 26 U.S.C. §162, hereby incorporated by reference, as amended and in effect 01/18 (http://www.flrules.org/Gateway/reference.asp?No=Ref-10162).

(c) “In this state” means within the exterior limits of the State of Florida.

(d) “Financial institution” has the meaning ascribed to the term in Section 655.50(3)(c), F.S. The term includes any national bank or banking association, state bank or banking association, industrial savings bank, trust company, federal savings and loan association, state savings and loan association, federal savings bank, state savings bank, federal or state credit union, Edge Act or agreement corporation, or international bank agency located in this state, whether organized under the laws of Florida, another state, or the United States.

(e) “Currency” means the coin or cash of the United States or any other country which circulate in and are customarily used and accepted as money within the country in which issued, including United States notes or silver certificates, and Federal Reserve notes. The term currency does not encompass bank checks, traveler’s checks, drafts, money orders, other cash equivalents, wire transfers, or other negotiable or monetary instruments not customarily accepted as money.

(f) “Related transactions” means any transaction conducted between a payer or its agent and a recipient of currency in a 24-hour period, and transactions conducted between a payer or its agent and a currency recipient during a period of more than 24 hours if the recipient knows, or has reason to know, that each transaction is one of a series of connected transactions.

(2) Any person required to file federal form 8300 with respect to a large currency transaction under 26 U.S.C. s.6050I and the federal regulations promulgated pursuant thereto, shall file a report of the transaction with the Department of Revenue when the permanent address of the person conducting the transaction, as reported on federal form 8300, is within this state.

(3) Any person who is not required to file federal form 8300 and any person who is required to file federal form 8300 reflecting a permanent address outside this state, is not required to file a report with the Department of Revenue with respect to a large currency transaction.

(4) A transaction involving the receipt of more than $10,000 in currency for the account of another must be reported. Likewise, a person who, in the course of a trade or business, acts as an agent or acts in a similar capacity must report currency in excess of $10,000 received from a principal, unless the provisions of subsection (3) of this section apply.

(5) For the purposes of these rules, “recipient” means the person receiving currency in a transaction which must be reported. Each store, division, branch, department, headquarters, or office comprising a portion of a person’s trade or business is a separate recipient, unless the unit receiving the currency payment would, in the ordinary course of business, have reason to know the identity of payers who deal with other units of the business.

(6) A transaction may not be subdivided into multiple parts to avoid the reporting requirements imposed under the Florida Money Laundering Act.

History

• Rulemaking Authority 896.102(3) FS. Law Implemented 896.102 FS. History–New 2-18-88, Amended 1-8-19.

Fla. Admin. Code R. 12-19.003 Reporting Requirements

Reports of large currency transactions which must be filed with the Department of Revenue under the Money Laundering Control Act shall be filed at the time and place and in the manner and form prescribed by this rule.

(1) Time of filing. The report of a large currency transaction shall be filed with the Department of Revenue no later than 15 days after the date the transaction is required to be reported to the Internal Revenue Service under 26 U.S.C. s.6050I and the federal regulation related thereto. For the purpose of determining whether a paper report is timely filed, the postmark date shall be the date the report is deemed filed. For the purpose of determining whether an electronically submitted report is timely filed, the Department will deem a report as filed on the date the electronic submission is received by the Department.

(2) Place and manner for filing. The report of a large currency transaction shall be filed by:

(a) Mailing the report to Criminal Investigations, Florida Department of Revenue, 5050 W. Tennessee Street, Tallahassee, Florida 32399-0100; or

(b) Attaching the report to an email and submitting the email to the Department at form8300@floridarevenue.com.

(3) Form of report. The report of a large currency transaction filed with the Department shall contain the information required to be reported to the Internal Revenue Service under 26 U.S.C. s.6050I. To comply with this general requirement of the Money Laundering Control Act, the recipient must report information to establish the identity of the person conducting the transaction, information to establish the identity of the person required to file the report, the amount of currency received, the date and nature of the transaction, and similar information reported to the Internal Revenue Service on federal form 8300.

(a) In lieu of a separate state report, the Department of Revenue will accept a copy of the federal form 8300 filed by the recipient with respect to the reportable transaction.

(b) If the recipient elects to file a separate state report, the report filed shall be in substantially the same format and shall contain substantially the same information as federal form 8300.

(4) Verification of identity. The recipient is responsible for verifying the identity of the person from whom the reportable currency is received. Verification of identity may be made by examination of documents normally acceptable as identification of a party cashing a check, such as a driver’s license or credit card. In the case of a person who claims to be an alien, identity may be established by examination of such person’s passport, alien identification card, or other document indicating nationality or residence. The recipient is required to report information relied upon to establish the identity of the person with whom the transaction is conducted.

History

• Rulemaking Authority 896.102(3) FS. Law Implemented 896.102 FS. History–New 2-18-88, Amended 7-28-15, Technical Change 6-8-26.

Fla. Admin. Code R. 12-19.004 Penalties for Failure to Comply

The Florida Money Laundering Act imposes a criminal penalty for willful failure to file a report of a large currency transaction. Each separate currency transaction exceeding $10,000 which the recipient willfully fails to report properly constitutes a separate, punishable offense.

History

• Rulemaking Authority 896.102(3) FS. Law Implemented 896.102 FS. History–New 2-18-88, Amended 1-8-19.

Fla. Admin. Code R. 12-19.005 Confidentiality of Reports; Disclosure of Information

(1) Reports of large currency transactions and the information contained in them are confidential and are not subject to disclosure to the public. However, the reports of large currency transactions filed with the Department, or the information contained within the reports, are subject to disclosure pursuant to subpoena, as provided in Section 213.053(9), F.S.

(2)(a) In addition, when the Department receives a written request for a report of large currency transactions filed with the Department from a federal, state or local law enforcement agency or a prosecutorial agency, the Office of Financial Regulation, or the Department of Financial Services, the Department is authorized to provide the report, or the information contained within the report, to the requesting agency. Written requests for reports of large currency transactions are to be addressed to the Florida Department of Revenue, Criminal Investigations, 5050 W. Tennessee Street, Tallahassee, Florida 32399-0100.

(b) For purposes of this rule chapter, law enforcement agency shall mean a lawfully established federal, state, or local public agency that is responsible for the prevention and detection of crime and the enforcement of penal, traffic, regulatory, game, immigration, postal, customs, or controlled substance laws.

(c) For additional information regarding reports of large currency transactions, contact Criminal Investigations at (850)717-7036.

(3) The custodian of the reports of large currency transactions which are filed with the Department of Revenue is Criminal Investigations. Subpoenas seeking disclosure of documents and information filed with the Department that do not fall under the disclosure provision of Section 896.102, F.S., should be served to the custodian of the reports.

(4) Federal tax information obtained from the Internal Revenue Service under Information Sharing Agreements shall not be disclosed under this rule chapter.

History

• Rulemaking Authority 896.102(3) FS. Law Implemented 213.053(9), 250.535(1)(e), 896.102 FS. History–New 2-18-88, Amended 12-18-88, 1-2-95, 6-28-10, Technical Change 6-8-26.

Fla. Admin. Code R. 12-19.006 Recordkeeping Requirements

A person required to file a report of a large currency transaction shall keep a copy of each report filed for five years from the date of filing. The reports, and the books and records of such persons shall be available for inspection, during normal business hours, by the Department upon request.

History

• Rulemaking Authority 896.102(3) FS. Law Implemented 896.102 FS. History–New 2-18-88.

Chapter 12-21 LEVY, SEIZURE AND SALE OF PROPERTY

Fla. Admin. Code R. 12-21.001 Scope; Delegation of Authority

(1) This chapter covers instances in which the Department issues a warrant with regard to any tax it administers. The filing of a warrant and associated judgment lien certificate establish the State of Florida’s interest and priority as a creditor. Parts I and II of this chapter indicate when the Department will take additional enforcement actions.

(2) The Executive Director of the Department is authorized to issue a delegation of authority setting forth those positions that are authorized to issue, satisfy, cancel, amend, release, in whole or in part, or withdraw warrants, and to subordinate the Department’s lien, to issue and release jeopardy assessments and related warrants, to issue an execution to a sheriff, and to freeze, levy, or sell a taxpayer’s property. Any such delegation will be in writing, signed by the Executive Director. Copies of written delegations of authority are maintained on file with the agency clerk in the Office of the General Counsel.

History

• Rulemaking Authority 198.08, 199.202, 202.26(3), 212.18(2), 213.06(1) FS. Law Implemented 55.10, 55.202, 55.204, 56.27, 198.20, 198.22, 198.33, 199.262, 201.16, 202.33, 202.36, 206.075, 206.18, 206.97, 206.9915, 211.125, 211.33, 212.14, 212.15, 213.67, 213.69, 213.73, 213.731, 213.732, 213.733, 213.74, 213.75, 213.758, 220.827, 220.829, 336.021, 336.025, 403.718(3)(a), 403.7185(3)(a), 443.1316, 538.11, 624.5092, 681.117 FS. History–New 7-1-88, Amended 3-12-14, Technical Change 6-8-26.

Fla. Admin. Code R. 12-21.0015 Definitions

For the purposes of this chapter, the following terms and phrases are defined as:

(1) “Assets” means any personal property, credits, or debts, owned by or owed to a delinquent taxpayer, excluding wages. For the purposes of Part I of this Chapter, “assets” also includes real property.

(2) “Custodian” means any person, as defined in Section 212.02(12), F.S., the Federal Government, or any agency or instrumentality of the Federal Government, having control or possession of any assets owned by, or owed to, any delinquent taxpayer.

(3) “Delinquent taxpayer” means any taxpayer that has been notified of any tax, fee, surcharge, penalty, interest, administrative fees, or costs of collection owed to the Department, and the time period for disputing the debt has expired.

(4) “Department” means the Florida Department of Revenue.

(5) “Final resolution” means that all review rights have been exhausted or expired.

(6) “Intangible personal property” means all personal property which is not in itself intrinsically valuable, but which derives its chief value from that which it represents, such as:

(a) All stocks or shares of incorporated or unincorporated companies, business trusts, and mutual funds;

(b) All notes, bonds, and other obligations for the payment of money; or,

(c) Money, including United States legal tender, certificates of deposit, cashier’s and certified checks, bills of exchange, drafts, the cash equivalent of annuities and life insurance policies, and similar instruments.

(7) “Personal property” means intangible personal property or tangible personal property.

(8) “Tangible personal property” means tangible personal property as defined in Section 212.02(19), F.S.

(9) “Wages” means all remuneration for employment paid or owed to a taxpayer (and the cash value of all remuneration paid in any medium other than cash), including salaries, hourly wages, commissions, bonuses, back pay awards, and tips or gratuities received while performing services which constitute employment.

(10) “Warrant” includes any tax warrant, notice of lien, or other warrant issued to secure payment of delinquent taxes, fees, or surcharges, together with the interest, penalties, administrative fees, and costs of collection.

History

• Rulemaking Authority 198.08, 199.202, 202.26(3), 212.18(2), 213.06(1) FS. Law Implemented 198.01(1), (3), (10), (11), 201.16, 202.11(3), (8), 202.33, 206.01(1), (10), 206.18, 206.97, 206.9915, 211.01(6), (15), (25), 212.02(5), (12), (19), 213.67, 213.69, 213.73, 213.731, 213.758, 220.03(1)(f), (g), (z), 443.1316 FS. History‒New 3-12-14, Technical Change 6-8-26.

Fla. Admin. Code R. 12-21.002 Warrants and Liens

(1) Warrants. The Department will issue a warrant:

(a) When an assessment has been made and collection efforts have been unsuccessful;

(b) When an assessment is made pursuant to the provisions of Section 202.35(3), 202.36(1), 206.18(1), (2), 212.12(5)(b), 212.14(1), 213.758 or 220.813, F.S.; or

(c) When any tax becomes delinquent and is in jeopardy. When jeopardy is asserted in or with an assessment, the Department will proceed in the manner specified for jeopardy assessment in Section 213.732, F.S., and Rule 12-21.005, F.A.C. However, when jeopardy is asserted in or with an assessment for reemployment tax imposed under the authority of Chapter 443, F.S., the Department will proceed as provided in Section 443.141(3)(g), F.S.

(2) When any tax becomes delinquent, but there is no jeopardy, the Department must provide the taxpayer 30 days notice, informing the taxpayer that a warrant will be issued or notifying the taxpayer that such action is indicated or authorized under the circumstances.

(3)(a) Each warrant will be issued for the amount of tax, fees, and surcharges due or estimated to be due, together with the interest, penalties, administrative fees, and costs of collection. The warrant will be directed to the sheriff of those counties of the state in which the delinquent taxpayer’s property or any part thereof may be situated and will be recorded with the appropriate Clerk(s) of the Circuit Court. Upon recording, the warrant becomes a lien in favor of the state upon the taxpayer’s real property in that county in the same manner as a recorded judgment and in the amount indicated by the warrant.

(b) When a warrant is issued, the Department will also file a judgment lien certificate with the Department of State, pursuant to the provisions of Chapter 55, F.S. Upon filing, the amount of the judgment lien certificate will become a lien upon the delinquent taxpayer’s personal property in this state, wherever located, which is subject to execution.

(c) The lien in favor of the state expires twenty (20) years after the date of the original filing of the warrant. However:

1. Liens for estate taxes arising under the authority of Chapter 198, F.S., are enforceable for twelve (12) years on the gross estate of the decedent, and irrespective of other laws extending such liens, in no event can such liens continue for more than twenty (20) years after the date of death of the decedent, subject to the provisions of Sections 198.22 and 198.33, F.S.;

2. Liens for reemployment assistance tax imposed under Chapter 443, F.S., expire ten (10) years after the date of the original filing of the warrant; and,

3.a. Liens for corporate income tax imposed under Chapter 220, F.S., created by an assessment pursuant to a notice of deficiency will expire unless a warrant is filed within five (5) years from the date proceedings in court for review have terminated or the time for initiating such review has expired.

b. Liens for corporate income tax imposed under Chapter 220, F.S., created by assessment pursuant to the filing of a return without payment of the tax, penalty, or interest shown to be due will expire unless a warrant is filed within five (5) years from the date such return was filed.

(d) An action to collect tax cannot be commenced after the expiration of the lien securing payment.

(4) The Department will enter into written agreements to subordinate or release a lien (in whole or in part).

(5) The personal liability of a purchaser or transferee pursuant to Sections 206.18(2), 213.758 and 220.829, F.S., does not create a lien upon such purchaser’s property. Rather, the procedures outlined in this rule chapter must be followed to create and enforce a lien in favor of the state.

History

• Rulemaking Authority 198.08, 199.202, 202.26(3), 212.18(2), 213.06(1) FS. Law Implemented 55.10, 55.202, 55.204(2), 95.091(1)(b), 198.20, 198.22, 198.33, 199.262, 201.16, 202.33(3), 202.35, 202.36, 206.075, 206.18, 206.97, 206.9915, 211.125, 211.33, 212.12, 212.14, 212.15, 213.69, 213.731, 213.732, 213.758, 220.813, 220.827, 220.829, 336.021, 336.025, 403.718(3)(a), 403.7185(3)(a), 443.131(3)(g), 443.141(3)(a), 538.11, 624.5092, 681.117 FS. History–New 7-1-88, Amended 8-10-92, 3-12-14, Technical Change 6-8-26.

Fla. Admin. Code R. 12-21.005 Seizure of Property Under Jeopardy

(1) Jeopardy Determinations. Jeopardy will be asserted in or with an assessment if at least one of the following conditions is present:

(a) The Department has cause to believe the taxpayer is about to depart from the state;

(b) The Department has cause to believe the taxpayer is about to do any act tending to prejudice or render wholly or partly ineffectual the normal procedures for collection of any amount of tax, fee, surcharge, penalty, interest, administrative fee, or cost of collection that the Department determines is due;

(c) The Department has cause to believe the taxpayer is concealing or transferring or is about to conceal or transfer its property.

(d) The Department finds that the collection of the amount determined to be due will be jeopardized by delay; or

(e) The taxpayer has ceased to make payments, and the estimated deficiency is substantial for that taxpayer.

(2) In making a determination that the collection of any amount of tax, fee, surcharge, penalty, interest, administrative fee, or cost of collection required to be collected and paid will be jeopardized by delay pursuant to paragraph (1)(d), the Department will consider the following:

(a) The prior history of the taxpayer’s compliance or noncompliance with requirements for reporting and paying any tax;

(b) The type of business, including the transient or nontransient nature of the business;

(c) The liquidity of assets;

(d) The mobility of assets;

(e) The pending sale or transfer of title to assets; or

(f) The financial status of the person or dealer owing the tax, including the existence of money judgments.

(3) A warrant will be issued and recorded simultaneously with or after the issuance of a jeopardy assessment.

(4) Notice and Taxpayer Review Rights. The Department will issue in or with a jeopardy assessment a notice or finding of the specific facts that support a determination that jeopardy to the revenue exists.

(a) This notice informs the taxpayer that:

1. To request a conference with the Department, the taxpayer must contact the office of the Department that issued the jeopardy assessment. The conference must be held within 10 days after issuance of the jeopardy assessment, at a time and place set by the Department.

2. The taxpayer has the opportunity to appear at this conference and make oral and written statements of why the delinquent taxpayer believes no jeopardy exists and why a warrant based upon the jeopardy assessment should be released, if it was recorded.

(b) The conference will be conducted informally and will not be in the nature of a formal evidentiary hearing. The taxpayer may present relevant information, orally or in writing, but discovery and cross-examination will not be allowed. The Department is not required to transcribe the proceedings, but the taxpayer may transcribe the conference at the taxpayer’s own expense.

(c) The Department will determine within twenty (20) days after receipt of a taxpayer’s statement whether the warrant based upon the jeopardy assessment should be released in whole or in part. The Department will provide written notice of this determination to the delinquent taxpayer.

(d) When the Department determines, based on the information received at the taxpayer conference, that the warrant based upon the jeopardy assessment should be released in whole or in part, the Department will release or correct the warrant accordingly.

(e) If the Department proceeds to seize or freeze the property of a taxpayer upon a determination of jeopardy:

1. The taxpayer has a right to a meeting with the Department immediately or within 24 hours after requesting such meeting. The Department will determine whether to release the seizure or freeze within 24 hours after the meeting.

2. If the Department does not release the seizure or freeze of property, the taxpayer has the right to request a hearing within five (5) days before the circuit court. The taxpayer and the Department may present evidence with respect to the issue of jeopardy at the hearing. Venue in such an action will lie in the county in which the seizure was effected or, if there are multiple seizures based upon the same assessment, venue will also lie in Leon County.

History

• Rulemaking Authority 198.08, 199.202, 202.26(3), 212.18(2), 213.06(1) FS. Law Implemented 198.20, 199.262, 201.16, 202.33(3), 202.36, 206.075, 206.97, 206.9915, 211.125, 211.33, 212.14, 212.15, 213.69, 213.73, 213.731, 213.732, 213.733, 213.74, 213.75, 213.758, 220.815(1), 220.827, 220.829, 336.021, 336.025, 403.718(3)(a), 403.7185(3)(a), 538.11, 624.5092, 681.117 FS. History–New 7-1-88, Amended 3-12-14, Technical Change 6-8-26.

Fla. Admin. Code R. 12-21.007 Seizure of Property Without Jeopardy

History

• Rulemaking Authority 72.011(2), 120.54(1), 199.202, 212.18(2), 213.06(1) FS. Law Implemented 199.262, 201.16, 206.075, 206.97, 206.9835, 207.014, 211.125, 212.14, 212.15, 213.69, 213.73, 213.732, 213.74, 213.75, 336.021, 336.025 FS. History–New 7-1-88, Repealed 3-12-14.

Fla. Admin. Code R. 12-21.010 Manner and Conditions of Sale of Property

(1) Manner and Conditions of Sale of Property. The sale of taxpayer property is authorized only after a tax, fee, surcharge, penalty, interest, administrative fee, or cost of collection assessment has been issued and all review rights under Chapter 72, F.S., have been exhausted or have expired. Notice of sale will be as provided in Chapter 56, F.S. The Department will determine a minimum price for the sale of property that is subject to levy, and the sheriff will be advised in writing of the minimum price. The Department will consider the value of the property, the extent of the liability, and the expense of making the levy and sale in determining a minimum price.

(2) Should the highest bid for the seized property not equal the minimum price established for such property, the Department will:

(a) Reschedule the sale;

(b) Declare the state to be the purchaser at the minimum price upon prior request by a state agency, which state agency will pay costs to the sheriff;

(c) Sell the property to the highest bidder; or

(d) Release the property back to the taxpayer if that action is determined to be in the best interests of the state.

(3) The manner and conditions of the sale of property seized is governed by the following:

(a) The sale will be conducted by public auction or by public sale under sealed bids. Information concerning time, place, manner, and conditions of the sale will be stated in the notice of sale.

(b) Items for sale will be offered by individual units, except where similar merchandise may be sold in lots. However, the Department will sell the seized property in aggregate when it determines that this method will yield a higher bid total than selling the items by individual units.

(c) Adjournment of sale may not exceed one month. The following reasons are sufficient for adjournment of a sale:

1. Lack of sufficient bids;

2. Inclement weather;

3. Legal challenges to the bidding process;

4. The best interest of the state; or,

5. A well-founded and good faith belief, based on articulable facts, that collusion in bidding is occurring and is preventing competition or stifling bidding in violation of public policy. If the Department believes such a violation has occurred, it will cancel all bid acceptances determined to be in violation of public policy.

(d) Payments related to seized property must be made by cash, cashier’s check, certified check, or money order.

(e) Upon purchase of seized property when the bid is for $5,000 or less, the payment must be made at the time of sale. When the highest bid exceeds $5,000, a 20 percent nonrefundable deposit must be made at time of sale, and the remaining payment must be made before 4:30 p.m. on the next business day. The nonrefundable deposit must be paid without exception to the Department after other costs are deducted.

(4) Any person whose property has been levied upon may pay the amount due, together with costs and expenses, to the sheriff at any time prior to the sale. Upon such payment, the sheriff will appropriately advise the Department, will restore the property to such person, and will cease all other proceedings in connection with the levy on the property.

History

• Rulemaking Authority 198.08, 199.202, 202.26(3), 212.18(2), 213.06(1) FS. Law Implemented 56.27, 198.20, 198.22, 199.262, 201.16, 202.33(3), 202.36, 206.075, 206.97, 206.9915, 211.125, 212.14, 212.15, 213.69, 213.73, 213.731, 213.74, 213.75, 213.758, 220.827, 336.021, 336.025, 403.718(3)(a), 403.7185(3)(a), 443.1316, 538.11, 624.5092, 681.117 FS. History–New 7-1-88, Amended 3-12-14, Technical Change 6-8-26.

Fla. Admin. Code R. 12-21.040 Satisfaction or Correction of Warrants and Liens

(1) Upon receipt of full payment for any warrant, execution, or judgment for any tax administered by the Department, the Department will issue a satisfaction of the lien of record. The Department will record a Satisfaction and Release of Tax Lien with the clerk of the circuit court in the county in which the original lien was filed and in any other public record where the original warrant or a certified copy was recorded, if different from where the original warrant was recorded. The satisfaction of a judgment lien certificate will be accomplished by recording a Judgment Lien Amendment Statement with the Department of State indicating that the Judgment Lien Amendment Statement is a termination of the lien.

(2) The Department will record a Satisfaction and Release of Tax Lien with the clerk of the court within 30 days of receipt by the Department of payment in full. When payment in full has been tendered by cash, payment will be deemed to have been made when received by the Department. When payment in full has been tendered by certified check, cashier’s check, or other guaranteed banking instrument, payment will be deemed to have been made when the instrument is received by the Department, unless cause arises for the Department to believe that the instrument may not be honored, or has not been honored. When payment in full has been tendered by personal check, payment will be deemed to have been made when the Department confirms that the check has been deposited as collected funds in the State Treasury.

(3) When the Department has filed a warrant:

(a) If the liability is subsequently satisfied, the Department will file a Satisfaction of the warrant;

(b) If no warrant should have been filed, the Department will file a Cancellation of the warrant and note therein that the original was filed in error;

(c) If a warrant was justified, but materially incorrect in some respect as filed, the Department will file an amended warrant, which will reference the original filing and the erroneous portion, and will retain the priority of the original.

History

• Rulemaking Authority 198.08, 199.202, 202.26(3), 212.18(2), 213.06(1) FS. Law Implemented 198.22, 199.262, 201.16, 202.33(3), 211.125(7), 211.33(7), 212.14, 212.15, 213.73, 213.732, 213.733, 213.758, 220.819, 220.827, 220.829, 336.021, 336.025, 403.718(3)(a), 403.7185(3)(a), 443.1316, 538.11, 624.5092, 681.117 FS. History–New 11-14-91, Amended 6-16-93, 3-12-14.

Fla. Admin. Code R. 12-21.050 Public Use Forms

PART II ADMINISTRATIVE GARNISHMENT FOR UNPAID TAXES

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 120.54(1), 213.73, 213.74, 213.75 FS. History–New 8-10-92, Amended 3-31-99, Repealed 3-12-14.

Fla. Admin. Code R. 12-21.201 Scope

This part explains the procedures that will be used by the Department to implement the authority granted in Section 213.67, F.S. These procedures enable the Department to identify and freeze the assets of any taxpayer who owes delinquent taxes, fees, surcharges, penalties, interest, administrative fees, or costs of collection. These procedures also will be used to levy upon such assets and collect the delinquent amount owed. The Department will freeze the assets of a delinquent taxpayer pursuant to Section 206.18(4), F.S., using the procedures established in this rule chapter.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 206.18(4), 213.67, 213.731, 443.1316 FS. History–New 6-16-93, Amended 3-31-99, 3-12-14.

Fla. Admin. Code R. 12-21.202 Definitions

History

• Rulemaking Authority 72.011(2), 120.54(1), 213.06(1) FS. Law Implemented 213.67 FS. History–New 6-16-93, Repealed 3-12-14.

Fla. Admin. Code R. 12-21.203 Notification to Custodians; Custodial Responsibilities

(1) To initiate a garnishment procedure, the Department will send a Notice of Freeze by registered mail, personal service, facsimile, electronic data interchange, use of the Internet, or by other electronic means to custodians exercising control or possession of a delinquent taxpayer’s assets.

(2) The Notice of Freeze will state the Department’s authority to initiate the garnishment procedure; specifically identify the delinquent taxpayer subject to garnishment; indicate the dates during which the freeze of assets is effective; specify the amount of the delinquent taxpayer’s assets that must be frozen by the custodian; and describe the custodian’s responsibilities pursuant to Section 213.67, F.S., and this rule.

(3) The Notice of Freeze informs the custodian of the following:

(a) The custodian is prohibited from transferring or otherwise disposing of the specified partial amount or the entire amount of the delinquent taxpayer’s assets in the custodian’s control or possession at the time of receipt of the Notice of Freeze, or any additional assets of which the custodian subsequently acquires control or possession, in any manner whatsoever, during the time period prescribed by the notice, unless written consent is given by the Department. The Department will notify each custodian that assets in excess of the amount stipulated in the notice, wherever held, are not subject to the freeze.

(b) The Notice of Freeze is effective as of the date of its receipt, and remains in effect until the custodian receives a subsequent notice from the Department with further instructions, or until sixty (60) days have elapsed from the date of its receipt. If the delinquent taxpayer contests the intended levy in circuit court or under Chapter 120, F.S., within the time period specified under Section 213.67, F.S., the Department will notify the custodian that the Notice of Freeze will remain in effect until a final resolution is achieved.

(c) If, during the time period prescribed by this notice, a custodian makes any transfer or disposition of the assets required to be withheld, the custodian will be liable for any indebtedness owed to the Department by the delinquent taxpayer to the extent of the value of the assets, if the state is unable to recover the indebtedness solely by reason of the transfer or disposition.

(4) The Notice of Freeze informs the custodian that each custodian who receives a Notice of Freeze issued pursuant to this rule must:

(a) Inform the Department in writing, within 5 days of the receipt of the notice, of those specific assets and their value attributable to the delinquent taxpayer that the custodian controls, possesses, or is owed;

(b) Inform the Department in writing, within 5 days after coming into subsequent possession or control of assets attributable to the delinquent taxpayer; and,

(c) Comply with the statutory prohibition against disposing, transferring, or releasing the amount of the delinquent taxpayer’s assets that the Department specified in the Notice of Freeze or that subsequently come into possession or control of the custodian.

(5) Any financial institution receiving a Notice of Freeze issued pursuant to Section 213.67, F.S., and this rule will maintain a right of set-off for any transaction involving a debit card occurring on or before the date of receipt of such notice.

(6) If, during the time period prescribed by this notice, the delinquent taxpayer satisfies the delinquent liability, the Department will issue a Notice of Release. Upon receipt of the Notice of Release, the custodian is no longer prohibited from transferring, returning, or disposing of any assets owned, controlled by, or owed to the taxpayer that are in the custodian’s possession or control.

(7) The Department will record a warrant prior to initiating a garnishment procedure pursuant to this rule.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 206.18(4), 213.67, 443.1316 FS. History–New 6-16-93, Amended 3-31-99, 6-28-00, 3-12-14, 4-16-18.

Fla. Admin. Code R. 12-21.204 Issuance of Notice of Intent to Levy; Procedures

(1) Prior to levying against the assets of a delinquent taxpayer for which a Notice of Freeze has been issued pursuant to Rule 12-21.203, F.A.C., the Department will send the delinquent taxpayer, by certified or registered mail or hand-delivery, a Notice of Intent to Levy. Thirty days or more before the Department may levy, a Notice of Intent to Levy will be given in person or sent to the delinquent taxpayer’s last known address. The notice informs the delinquent taxpayer that the Department intends to levy on the frozen assets held by custodians, as specified in the Notice of Freeze already issued to such custodians.

(2) The Notice of Intent to Levy explains to the delinquent taxpayer:

(a) The provisions of Section 213.67, F.S., and this rule chapter regarding the levy and sale of property for collection of delinquent taxes, fees, surcharges, penalties, interest, administrative fees, and costs of collection;

(b) The administrative and judicial appeals available to the delinquent taxpayer, including the procedures for pursuing such appeals; and,

(c) Any alternatives available to the delinquent taxpayer that will prevent the proposed levy.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.67, 213.731, 443.1316 FS. History–New 6-16-93, Amended 3-31-99, 3-12-14.

Fla. Admin. Code R. 12-21.205 Departmental Levy on Frozen Assets; Procedures

(1)(a) If the delinquent taxpayer does not, within 21 days after the date of receipt of the Notice of Intent to Levy, pay the delinquent taxes, fees, surcharges, penalties, interest, administrative fees, and costs of collection owed as referenced in the Notice of Intent to Levy, or bring lawful action to contest the Notice of Intent to Levy, the Department will levy upon any assets controlled or possessed by the custodians.

(b) If the delinquent taxpayer, within 21 days after the date of receipt of the Notice of Intent to Levy, files a lawful action contesting this intended levy pursuant to Chapter 120, F.S., or in circuit court, the Department will issue a Notice of Contested Intent to Levy to the custodian. The Department will not proceed to levy on such frozen assets until there is a final resolution in its favor.

(c) If the delinquent taxpayer contests the intended levy, the Notice of Freeze will remain in effect until there is a final resolution.

(2) The following procedures govern the Department’s issuance of a Notice of Levy:

(a) The Department will not issue a Notice of Levy until at least thirty days after the Department has issued a Notice of Intent to Levy to the delinquent taxpayer.

(b) A Notice of Levy will be delivered by registered mail, personal service, facsimile, electronic data interchange, use of the Internet, or by other electronic means to those custodians who are currently subject to a Notice of Freeze. The Notice of Levy will designate the specific assets to be paid or transferred to the Department, and the manner in which such transfer should occur. Payments to the Department must be made by certified or cashier’s check, made payable in U.S. funds to the Florida Department of Revenue.

(c) A Notice of Levy will apply:

1. To any credits, other personal property, or debts of the delinquent taxpayer held by a custodian as of the date the notice is received by such custodian that are not, at the time of the initial Notice of Freeze, subject to an attachment, garnishment, or execution issued through a judicial process; and,

2. To any credits, other personal property, or debts of the delinquent taxpayer of which the custodian subsequently acquires control or possession during the time period prescribed by the Notice of Freeze.

(3)(a) The assets of any delinquent taxpayer that have been garnished by the Department are subject to levy and sale in the same manner as provided in Section 213.69, F.S., and this rule chapter.

(b) The Department will return to the delinquent taxpayer any surplus sale proceeds in its possession remaining after all taxes, fees, surcharges, penalties, interest, administrative fees, and costs of collection have been deducted from such sale.

(4) The Department must bring an action in circuit court to obtain an order compelling compliance with any notice issued under the authority of Section 213.67, F.S.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.67, 213.731, 443.1316 FS. History–New 6-16-93, Amended 3-31-99, 3-12-14, 2-20-25.

Fla. Admin. Code R. 12-21.208 Withholding of Vendor Payments

(1) This rule explains the procedures used by the Department to implement the authority granted in Section 213.67(9), F.S., that requires the Department to provide the Chief Financial Officer a listing of taxpayers for which warrants are outstanding and for which the Department is authorized to levy upon certain payments.

(2) The Department will request that payments to any person, as defined in Section 212.02, F.S., who provides commodities or services to the State, leases real property to the State, or constructs a public building or public work for the State be withheld by the Chief Financial Officer when such person has an outstanding warrant.

(3) The Department will advise the Chief Financial Officer to release payment to a vendor with an outstanding warrant when the vendor is in compliance with a stipulated payment agreement with the Department.

(4) The Department will advise the Chief Financial Officer of the amount of any funds due in excess of the amount of the outstanding warrant that are not subject to withholding.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.67(9) FS. History‒New 3-12-14.

Chapter 12-22 CONFIDENTIALITY AND DISCLOSURE OF TAX INFORMATION

Fla. Admin. Code R. 12-22.001 Scope of Rules

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 192.105, 193.074, 195.027, 195.084, 196.101, 201.022, 206.27, 211.125, 211.33, 212.0305(3)(d), 213.053, 213.21, 213.22, 213.27, 220.242, 336.025(2)(a), 896.102(2) FS. History–New 12-18-88, Repealed 5-9-13.

Fla. Admin. Code R. 12-22.002 Definitions

For the purposes of this rule chapter, the terms have the meanings prescribed in this section.

(1) “Department” means the Florida Department of Revenue.

(2) “Disclosure” means making known or available to any person in any manner whatsoever, a return, return information, state tax information, or federal tax information.

(3) “Federal tax information” means any tax information furnished to the Department by the Internal Revenue Service.

(4) “Return” means any report, claim, statement, notice, application, affidavit, or other document required to be filed within a prescribed period or on or before a prescribed date under the authority of any provision of those documents, declarations, reports, schedules, amendments, or other written statements filed with the Department by a taxpayer under a revenue law of this state which the Department has the responsibility of regulating, controlling, and administering. This term includes any copy of a federal income tax return or other attachments which are designed to be supplemental to, or become a part of, a return.

(5) “Return information” means any information shown on a return which is filed with, or furnished to, the Department, by, or on behalf of, a taxpayer, including taxpayers’ names, addresses, account numbers, tax computations or payment data, and any other specific accounts details.

(6) “State tax information” means all records of the Department relating to particular taxpayers, including returns, return information, letters of advice, technical assistance advisements, large currency transaction reports, and investigative reports which are subject to the disclosure provisions of Section 213.053, F.S., and does not include federal tax information furnished to the Department by the Internal Revenue Service.

(7) “Tax information” means all records of the Department relating to particular taxpayers, including returns, return information, federal tax information, letters of advice, technical assistance advisements, large currency transaction reports, and investigative reports. This term encompasses the status and existence of an account and whether the account is active, inactive, or delinquent.

(8) “Official Purposes” as used in Section 213.053, F.S., and this rule includes the following:

(a) The use of state tax information in referring a case for criminal prosecution in instances when an agency employee attests by affidavit that there is probable cause to believe that a crime has been committed. Such attestation and affidavit must be reviewed and approved by the Criminal Investigations Process Owner, General Tax Administration, and the General Counsel, or their designees.

(b) The use of state tax information upon written approval by the Executive Director or the Executive Director’s designee in obtaining a search warrant or subpoena in the investigation of a crime under the revenue laws.

(c) The use of state tax information, if approved in writing by the Executive Director or the Executive Director’s designee, to notify state attorneys, sheriffs or other law enforcement agencies of activity in violation of state law or Department rules when such violation is beyond the legal authority or capacity of the Department to halt or prosecute.

(d) The use of state tax information in any judicial or quasi-judicial actions, including actions brought under Chapter 72, F.S., in which the Department is participating as a party and where the liability for or collectability of a tax is at issue.

(e) The use of taxpayer information by independent contract agents in the administration of the Department’s statutory duties and responsibilities. Such independent contract agents are subject to the restrictions and prohibitions contained in Section 213.053, F.S. and this rule.

(f) The use of state tax information by the Department, solely to the extent necessary to obtain information which is not otherwise available in the determination and/or collection of a specific taxpayer’s tax liability. The Department’s employee or agent must first exhaust all efforts to obtain or confirm information from the taxpayer or from internal sources before disclosing information under this subsection. The following examples are included to clearly describe the intent of this paragraph:

1. Example 1. An auditor uses state tax information in an audit of a purchaser’s use tax liability, where the information is obtained relative to the purchaser’s use tax liability during an audit of a vendor.

2. Example 2. An auditor uses state tax information obtained in an audit of a vendee to confirm the status and amount of purchases from a vendor by the vendee.

(g) The enumeration in this rule of activities of the Department as “Official Purposes” is not all inclusive, and should not be construed to deny the existence of other “Official Purposes” not here enumerated.

(9) “Official Purposes” as used in Section 213.053, F.S. and this rule does not include the publishing, disclosing or conveying of state tax information to the public by any general means, or disclosure by the Department of state tax information to other agencies or persons in conducting their official purposes except as specifically provided in Section 213.053, F.S. and these rules.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.053 FS. History–New 12-18-88, Amended 11-14-91, 6-23-92, 5-9-13, Technical Change 6-8-26.

Fla. Admin. Code R. 12-22.003 Confidentiality of Tax Information

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 125.0104, 125.0108, 192.105, 193.074, 195.027, 195.084, 196.101, 201.022, 206.27, 211.125, 211.33, 212.0305, 212.084, 213.053, 213.21, 213.22, 213.27, 220.242, 336.025, 370.07(3), 403.718, 403.7185, 403.7195, 538.11, 624.5092, 896.102(2) FS. History–New 12-18-88, Amended 2-13-91, 11-14-91, 6-23-92, Repealed 5-9-13.

Fla. Admin. Code R. 12-22.004 Access to Tax Information

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 24.108(5), 212.10(1), 213.05, 213.053, 213.0535, 213.22, 213.27, 213.28, 213.30, 896.102 FS. History–New 12-18-88, Amended 12-6-89, 2-13-91, 11-14-91, 1-5-93, 12-13-94, Repealed 5-9-13.

Fla. Admin. Code R. 12-22.005 Disclosure Procedures

(1) Taxpayer Requests for Tax Information.

(a) The Department will permit taxpayers or their authorized representatives to inspect and receive copies of the taxpayer’s tax returns and related documents filed with the Department, when lawfully requested. Department records are maintained by the Records Center Manager, Return and Revenue Processing, Florida Department of Revenue, 2450 Shumard Oak Boulevard, Tallahassee, Florida, and are available for authorized inspection Monday through Friday (excluding holidays).

1. Taxpayers seeking disclosure of their confidential tax information in person must establish proper identification, such as a valid driver’s license or personal identification card. The signature of the taxpayer will also be compared with the signature displayed on the appropriate identification instrument;

2. Taxpayer representatives requesting confidential information in person are also required to established proper identification.

3. A taxpayer may authorize his or her representatives to receive confidential state tax information by filing a completed Power of Attorney and Declaration of Representative (Form DR-835, incorporated by reference in Rule 12-6.0015, F.A.C.), signed by the taxpayer and the representative. A taxpayer’s representative must present the executed Power of Attorney and Declaration of Representative to the Department prior to the release of confidential state tax information.

(b) Taxpayers or their authorized representatives, after establishing their identity, may inspect, in person, any state tax documents filed by or on behalf of the same taxpayer. Audit reports that have previously been furnished to the taxpayer may also be inspected. However, audit workpapers, interoffice communications, investigative reports, and cover letters expressing opinions may not be inspected without prior authorization from the Executive Director or the Assistant Executive Director or their delegate.

(c) Prior to making state tax information available for inspection or copying, the custodian or employee making disclosure will disassociate all federal tax information and all other reports, documents, or information, the release of which is not authorized.

(2) Written Requests for Tax Information by a Taxpayer, Taxpayer’s Representative, or Personal Representative of an Estate.

(a)1.a. A taxpayer, a taxpayer’s authorized representative, or the personal representative of an estate may request a copy of the taxpayer’s returns by submitting a completed and signed Request for Copy of Tax Return (Form DR-841, R. 07/15, hereby incorporated by reference, effective 07/15) (http://www.flrules.org/Gateway/reference.asp?No=Ref-05599) or a written request directed to Records Management, MS #1-4364, 5050 West Tennessee Street, Tallahassee, Florida 32399-0158.

b. Copies of forms may be obtained, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

2. A written request must be submitted on the business’ letterhead and must include: the federal identification number or social security number of the owner, business mailing address, records requested, and the signature of the owner or a registered officer of the business.

3. Social security numbers are used by the Florida Department of Revenue as unique identifiers for the administration of Florida’s taxes. Social security numbers obtained for tax administration purposes are confidential under Sections 213.053 and 119.071, F.S., and are not subject to disclosure as public records. Collection of an individual’s social security number is authorized under state and federal law. Visit the Department’s website at floridarevenue.com and select “Privacy Notice” for more information regarding the state and federal law governing the collection, use, or release of social security numbers, including authorized exceptions.

(b) Included in those classes of persons who are allowed access to previously submitted state tax information upon written request are the authorized representatives of corporations, partnerships, trusts, estates, receiverships, and other artificial entities. Requests received from corporations must be signed by a principal officer and attested to by the secretary or another officer of the corporation.

(c)1. All copies of state tax returns filed by or on behalf of a taxpayer are sent directly to the taxpayer’s address of record unless the taxpayer requests that the information be:

a. Mailed to the taxpayer at a designated address;

b. Faxed to the taxpayer at a designated facsimile number;

c. Provided to an e-mail address designated by the taxpayer;

d. Mailed to the address of a duly authorized taxpayer representative, facsimile number, or email address as designated in a Power or Attorney and Declaration of Representative (Form DR-835) attached to the Request for Copy of Tax Return (Form DR-841).

2. A taxpayer’s representative must be authorized to receive copies of state tax returns and state tax information on behalf of the taxpayer. An authorized representative must attach an executed Power of Attorney and Declaration of Representative (Form DR-835) to the Request for Copy of Tax Return (Form DR-841) for such disclosure prior to the release of any returns or return information by the Department.

3. The Department will review all written requests for state tax information and determine the authenticity of the request prior to disclosing any confidential tax information.

(3) Telephone Requests for Tax Information. Department employees may disclose confidential state tax information by telephone only when the identity of the caller is established as that of the taxpayer or the taxpayer’s authorized representative.

(a) Persons who claim to be taxpayers will be advised that the requested information must be researched for a return call. The return telephone number must be verified as belonging to the taxpayer prior to the disclosure of any state tax information.

(b) A person who claims to be an authorized representative of a taxpayer must have a completed Power of Attorney and Declaration of Representative (Form DR-835) signed by the taxpayer and the representative on file with the Department. The representative will be advised that upon verification of such authorization, requested state tax information will be researched for a return call. The return telephone number must be verified as belonging to the authorized taxpayer representative prior to the disclosure of any tax information.

(c) Persons who request copies of state tax information by telephone will be advised that the requested information will be mailed to the address of the taxpayer on record.

(4) Written Requests for Tax Information by Government Agencies and Officials.

(a) The Department may provide tax information to any federal, state, or local agency or official specifically authorized by Section 213.053, F.S. Tax information provided under Section 213.053(7), F.S., will be disclosed under the terms of a written agreement executed between the Department and the requesting agency or official. All other requests for information must be in writing and directed to the Confidential Incident and Disclosure Officer, Florida Department of Revenue, P.O. Box 6668, Tallahassee, Florida 32314-6668, for review and clearance prior to disclosure.

(b) The Confidential Incident and Disclosure Officer maintains all written agreements between the Executive Director and agencies authorized to receive information and periodically reviews the procedures and the disclosure activity of the Department to ensure compliance with statutes governing the confidentiality of tax information. Any questions or requests not covered by existing procedures or agreements must be directed to the Confidential Incident and Disclosure Officer.

(5) Written Requests for Tax Information Involving the Administration of a Bankruptcy Estate. Requests for information allowed under Section 213.053(12), F.S., must be directed to the Administrator, Bankruptcy Section, Florida Department of Revenue, P.O. Box 6668, Tallahassee, Florida 32314-6668.

(6) Subpoenas under Section 213.053(9), F.S., seeking disclosure of reports of large currency transactions filed with the Department under section 896.102(1), F.S., should be addressed to the Criminal Investigations, Florida Department of Revenue, 2450 Shumard Oak Boulevard, Tallahassee, Florida 32399-0100, as custodian of the reports.

(7) Orders of a judge and criminal and RICO Act subpoenas which seek disclosure of all other tax information should be served on the Records Manager, Florida Department of Revenue, 2450 Shumard Oak Boulevard, Tallahassee, Florida 32399-0158, as the designated custodian of records for the Department.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.053 FS. History–New 12-18-88, Amended 1-25-12, 5-9-13, 7-28-15, 1-1-24, 12-29-25.

Fla. Admin. Code R. 12-22.006 Delegation of Authority

(1) The Authority to disclose state tax information is delegated to certain positions within the Department. Employees within these positions shall determine that request for disclosure of tax information meet the statutory provisions for disclosure in Section 213.053, F.S., and shall follow the procedures for disclosure in Rule 12-22.005, F.A.C.

(2) Specific responsibilities are delegated to the following positions within the Department to ensure the confidentiality of tax information and coordinate requests for authorized disclosure of tax information within the Department.

(a) Program Directors having primary custody or control of returns or tax return information will determine that the necessary safeguards are in place to prevent the unauthorized use or disclosure of state or federal tax information. They shall issue appropriate written instructions to employees under their supervision and shall adopt measures to ensure that employees remain thoroughly familiar with and strictly adhere to the rules and procedures governing confidentiality and the disclosure of tax information. They are responsible for publishing specific procedures to ensure the security of confidential tax information during emergency conditions.

(b) The Security and Disclosure Officer is responsible for the development of security directives and the periodic review of security procedures within the Department. A report of all findings is furnished to the Executive Director for action as deemed appropriate. The Security and Disclosure Officer is the Federal/State Coordinator, and is responsible for the development of information sharing agreements with appropriate federal and state agencies. This person acts as liaison with federal and state agencies and their appropriate administrators concerning the exchange of tax information. The Security and Disclosure Officer reviews all requests from counties and taxing districts requesting information in accordance with Section 213.053(10), F.S., for statutory compliance. Accordingly, the Security and Disclosure Officer is authorized to receive and request any tax information within the Department of Revenue or the above referenced entities, when such information will facilitate performance of these duties and responsibilities.

(c) The Records Center Manager, Return and Revenue Processing, is designated as the Custodian of Records for the Department. The Records Center Manager is responsible for copying and certifying tax records for use in court and the processing of requests to inspect or receive copies of returns.

(d) The Criminal Investigations Process Owner, is designated as the custodian of the reports of large currency transactions and is responsible for disclosure of documents and information filed with the Department under Section 896.102(1), F.S., pursuant to a subpoena served under Section 213.053(9), F.S.

(e) Employees of the Department of Revenue shall be required, at least annually, to review the procedures governing confidentiality and the authorized disclosure of confidential information and to certify that they are familiar with them. All new employees are required to read the policy and procedures regarding confidentiality and to certify that they have read and understand them. Employees who are terminating their employment with the Department shall certify that they are still subject to the confidentiality and penalty provisions of Section 213.053, F.S., as it pertains to their knowledge of confidential tax information maintained by the Department of Revenue.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.053 FS. History–New 12-18-88, Amended 12-13-94.

Fla. Admin. Code R. 12-22.007 Registration Information Sharing and Exchange Program

(1)(a) The Registration Information Sharing and Exchange Program, or “RISE Program”, is authorized under Section 213.0535, F.S., to allow government agencies who participate in the program to periodically exchange specified tax information with the Department. This rule provides guidelines regarding this program, the data elements to be shared, and the frequency of sharing those data elements. This exchange of registration information between the Department, other state agencies, and units of local government is designed to improve the enforcement of specific state and local taxes, licenses, and permits.

(b) General information regarding the RISE Program and specific questions regarding the status of any data supplied by the Department should be directed to the General Tax Administration RISE Coordinator, Revenue Accounting, Mail Stop 1-3600, 5050 West Tennessee Street, Tallahassee, Florida 32399-0151 or by telephone, (850)617-8586 or by visiting the Department’s Internet site at floridarevenue.com/taxes/rise.

(2) RISE Agreements and Information Subject to Sharing.

(a) Level-one Participants. To participate in the Level-one RISE Program, each government agency is required to enter into an agreement with the Department to share information with regard to the taxes, licenses, and permits enumerated in Section 213.0535(4)(a), F.S. The agreement, including attachments, specifies the data elements relating to the licensing or registration activity during each period that will be exchanged and the frequency of exchange of the information. The information subject to such exchange includes:

1. Registrant’s, licensee’s, or taxpayer’s name (name of business and owner);

2. Business mailing address, including zip code;

3. Business location address, including zip code;

4. Telephone number (business and owner);

5. Federal employer identification number or Social Security number (where authorized under the Federal Privacy and Confidentiality Act);

6. Business type code (NAICS or SIC code);

7. Business kind code (as provided by the Department);

8. County code (as provided by the Department);

9. Applicable state or local license or registration number and any other unique identifying number;

10. Business opening date; and,

11. Indication whether new or re-issuance (not renewals or address changes).

(b) Level-two Participants. To participate in the Level-two RISE Program, each government agency is required to enter into an agreement with the Department to share information with regard to the taxes enumerated in Section 213.0535(4)(b), F.S. The agreement, including attachments, specifies the data elements relating to the licensing or registration activity during each period that will be exchanged and the frequency of exchange of the information. In addition to the data shared by Level-one participants, Level-two participants shall exchange data relating to tax payment history, audit assessments, and registration cancellations of sales and use tax, tourist development tax, tourist impact tax, municipal resort tax, and/or convention development tax dealers engaging in transient rentals.

(c) The Department hereby incorporates the following agreements used in the administration of the RISE Program. Copies of these agreements may be obtained, without cost, by: 1) downloading the selected agreement from the Department’s website at floridarevenue.com/taxes/rise; or, 2) calling the General Tax Administration RISE Coordinator at (850)617-8586; or, 3) writing the General Tax Administration RISE Coordinator, Revenue Accounting, Mail Stop 1-3600, 5050 West Tennessee Street, Tallahassee, Florida 32399-0151. Persons with hearing or speech impairment may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Number

Title

Effective Date

1. GT-400210

Registration Information Sharing and Exchange (RISE) Program – Level-One Agreement (R. 01/16)

http://www.flrules.org/Gateway/reference.asp?No=Ref-06275

01/16

2. GT-400211

Registration Information Sharing and Exchange (RISE) Program – Level-Two Agreement (R. 01/16)

http://www.flrules.org/Gateway/reference.asp?No=Ref-06276

01/16

3. GT-400212

Registration Information Sharing and Exchange (RISE) Program Participant Certification for Access to Confidential State Tax Information (R. 01/16)

http://www.flrules.org/Gateway/reference.asp?No=Ref-06277

01/16

(d) Each government agency participating in the RISE Program is required to transmit its shared data to the Department within 20 days after the close of the reporting period, using the format specified in RISE Attachment B of the Level-one RISE agreement (GT-400210) or of the Level-two RISE agreement (GT-400211).

(e)1. Section 213.053(8)(j), F.S., provides that the Department may provide the information authorized under Section 213.0535, F.S., to eligible participants and certified public accountants for such participants in the RISE Program. As a part of the Level-one RISE Agreement (GT-400210), or the Level-two RISE Agreement (GT-400211), each authorized employee of the participating government agency is required to execute Form GT-400212 (Registration Information Sharing and Exchange (RISE) Program Participant Certification for Access to Confidential State Tax Information), with the confidentiality requirements of Section 213.053, F.S., and rule Chapter 12-22, F.A.C. Any person who becomes an authorized employee subsequent to January 31 must execute a separate certification. Executed certifications must be forwarded to the RISE Coordinator within 15 business days of the date of hire or the date of change in employment status.

2. Each year each authorized employee of the participating government agency is required to execute Form GT-400212 certifying his or her familiarity with the confidentiality requirements. Executed certifications must be forwarded to the RISE Coordinator by January 31 of each year.

(3)(a) Methods for Transmitting Data. The Department provides for the transmission of data between eligible participants of the RISE program. When submitting data to the Department, the participant is required to indicate the format in which the data is provided to the Department. Data is transmitted to the eligible participant by the Department in the same format as the format in which the participant provides data to the Department.

(b) Eligible participants who are required to transmit information under the RISE program and who are unable to make a timely exchange, because of system failure, incomplete data, or other reasons that are beyond the participant’s control, should contact the General Tax Administration RISE Coordinator.

(4) Frequency of Exchange.

(a) Units of state and local government that are Level-one participants are required to exchange, on a monthly or quarterly basis, the data enumerated in paragraph (2)(a) of this rule for each new registrant, new filer, or initial reporter, permittee, or licensee with respect to the taxes, licenses, or permits specified in Section 213.0535(4), F.S. Each RISE participant is required to select either a monthly or quarterly reporting period, and to notify the Department of its selection.

(b) The Department of Revenue and local officials who are Level-two participants are required to comply with the monthly or quarterly exchange requirements imposed on Level-one participants. Additionally, Level-two participants are required to exchange, on a quarterly basis, information as provided in paragraph (2)(b) of this rule. Audit assessments and registration cancellation information will be exchanged on a quarterly basis. Tax payment history information will be exchanged only upon a written request.

(c) Any requests for tax information outside the monthly or quarterly exchange provided in this rule should be addressed to the General Tax Administration RISE Coordinator.

History

• Rulemaking Authority 213.0535(4), 213.06(1) FS. Law Implemented 213.053(8)(j), 213.0535 FS. History–New 3-17-93, Amended 4-2-00, 4-16-07, 1-25-12, 1-11-16.

Fla. Admin. Code R. 12-22.008 Warrants and Liens List

(1) Scope.

(a) Section 213.053(19), F.S., authorizes the Department to publish a list of taxpayers against whom the Department has filed a warrant, notice of lien, or judgment lien certificate for the taxes, surtaxes, surcharges, or fees, listed in Section 213.05, and Chapter 443, F.S., and administered by the Department. This rule outlines the only means by which the Department will publish or provide this information.

(b) The information that Section 213.053(19), F.S., authorizes the Department to publish is available in the public records of Florida. Section 213.053(19), F.S., authorizes the Department to consolidate portions of that public information in a list and to publish that list to the public. Neither Section 213.053(19), F.S., nor this rule permits the Department or its employees to otherwise disclose confidential information.

(2) Warrants and Liens List.

(a) The Warrants and Liens List will include:

1. Two taxpayers from each of the 67 Florida counties with the highest unsatisfied warrant and lien totals when the unsatisfied warrant and liens totals for each taxpayer exceeds $1,500; and,

2. All other taxpayers who have unsatisfied warrant and lien totals of $100,000 or greater.

(b) For each taxpayer included on the Warrants and Liens List, the following information will be provided:

1. Taxpayer name, owner name based upon information provided to the Department and on file with the Department of State at the time the warrant or lien was filed, and business location address;

2. County in which the taxpayer is located;

3. Warrant or lien number(s); and,

4. Amount of each outstanding warrant or lien as recorded.

(c) The Warrants and Liens List will not include any taxpayer that has:

1. Entered into a closing agreement;

2. Entered into a stipulated payment agreement with the Department that has not been terminated pursuant to Rule 12-17.009, F.A.C.; or

3. In place any other agreement or order that provides for payment of the outstanding warrant(s) or lien(s) amount.

(d) The Warrants and Liens List will be posted to the Department’s website at floridarevenue.com/taxes.

(3) Maintenance of the Warrants and Liens List.

(a) The Warrants and Liens List will be updated monthly to include those taxpayers as provided in paragraph (2)(a).

(b) Any taxpayer included on the Warrants and Liens List who pays the outstanding warrant(s) or lien(s) amount, enters into a stipulated payment agreement for the outstanding warrant(s) or lien(s) amount, or has put in place any other agreement or order that provides for payment of the outstanding warrant(s) or lien(s) amount will be removed from the list within two business days of the date:

1. Payment of the outstanding liability is received by the Department;

2. A stipulation payment agreement is executed by the taxpayer and the Department for the amount of the outstanding liability; or

3. Any other agreement or order that provides for payment of the outstanding warrant(s) or lien(s) has been put in place.

(4) No other reports or information will be made available concerning the taxpayers included in or removed from the Warrants and Liens List.

History

• Rulemaking Authority 213.053(19)(c) FS. Law Implemented 211.33(7)(a), 213.053(19), (20) FS. History–New 5-23-11.

Chapter 12-24 PAYMENT OF TAXES AND SUBMISSION OF RETURNS BY ELECTRONIC MEANS; TAXPAYER RECORDKEEPING AND RETENTION REQUIREMENTS

Fla. Admin. Code R. 12-24.001 Scope of Rules

Part I of this rule chapter sets forth the rules to be used by the Department of Revenue in the administration of Sections 202.30, 206.485, 212.11(4)(f), 213.755, and 220.21(2), (3), F.S., authorizing the Executive Director to require taxpayers specified by statute or rule to pay taxes and fees and to file tax returns by electronic means. Part I of this rule chapter also sets forth the rules to be used by the Department in administering Section 443.163, F.S.

History

• Rulemaking Authority 202.26(3)(a), 206.485(1), 213.06(1), 213.755(8), (9), 220.21(2), (3), 443.1317, 443.163(1) FS. Law Implemented 202.30, 206.485, 212.11(4)(f), 213.755, 220.21(2), (3), 443.163 FS. History–New 12-19-89, Amended 10-24-96, 4-30-02, 10-5-03, 6-1-09, 2-17-15, 11-12-20, 5-23-22.

Fla. Admin. Code R. 12-24.002 Definitions

For the purposes of Part I of this rule chapter, the terms and phrases used in these rules have the meanings prescribed in this section.

(1) “ACH” or “Automated Clearing House” means a central distribution and settlement point for the electronic clearing of debits and credits between financial institutions rather than the physical movement of paper items.

(2) “ACH credit” means the payment of funds by electronic means by the taxpayer, cleared through the Automated Clearing House for deposit to the State Treasury.

(3) “ACH debit” means the payment of funds by electronic means from the taxpayer’s account which is generated upon the taxpayer’s instruction and cleared through the Automated Clearing House for deposit to the State Treasury.

(4) “Addenda record” means that information required by the Department in an Automated Clearing House credit transfer or wire transfer that is needed to completely identify a taxpayer or provide information concerning a payment, in approved electronic format.

(5) “Associated remittance information” means any payment information required by statute or rules adopted by agencies that administer the programs for which the funds are collected.

(6) “Submission day” means the day on which a taxpayer or reemployment tax agent communicates payment or tax return information to the Data Collection Center.

(7) “Submission period” means:

(a) For the electronic submission of a payment and return together, or just a payment, the specified time interval in each submission day during which an electronic payment or electronically-filed tax return information received by the Data Collection Center is processed for transactions occurring on the next business day, or on a date specified by the taxpayer or reemployment tax agent. Electronic payment and electronically-filed tax return information must be communicated to the Data Collection Center and completed no later than 5:00 p.m. (Eastern Time), on the submission day to clear the Automated Clearing House for deposit in the State Treasury on the next business day.

(b) For the electronic submission of a return only, any business day on or before the due date.

(8) “Data Collection Center” means the Department, or a third party vendor, who, under contract with the Department, collects and processes electronic payments and electronically-filed tax return information from taxpayers or reemployment tax agents.

(9) “Department” means Florida Department of Revenue.

(10) “Due date” means the date on or before which an electronic payment must be received or an electronically-filed tax return must be submitted by a taxpayer or reemployment tax agent under a revenue law of this state.

(11) “Electronic means” includes any one or more of the following methods of transmitting funds, information, or data: electronic data interchange, electronic funds transfer, telephone, Internet, or any other technology designated by the Department.

(12) “eServices” means all Department programs associated with the payment of taxes and fees, and the filing of tax returns, information reports, and data by electronic means.

(13) “Payment information” means the data which the Department requires of a taxpayer making an electronic payment and which must be communicated to the Data Collection Center.

(14) “Payor” means the taxpayer or an employer, or his or her designee.

(15) “Reemployment tax agent” means a person who submits a payment or an Employer’s Quarterly Report (Form RT-6, incorporated by reference in Rule 73B-10.037, F.A.C.) on behalf of an employer.

(16) “State fiscal year” means July 1 through June 30.

(17) “Tax collector” means any officer whose duties require or authorize him or her to collect public money, as provided in section 219.01, F.S., and to remit such funds to the Department for distribution, as provided in Section 219.07, F.S.

(18) “Taxpayer” means any person required to pay an amount by electronic means or file a tax return, information report, or data by electronic means. For the purpose of these rules, “person” includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit and also includes any political subdivision, municipality, state agency, bureau, or department and includes the plural as well as the singular number. For electronic payment purposes, the term “person” does not include political subdivisions, municipalities, state agencies, bureaus, or departments that remit taxes subject to electronic payment requirements through journal transfer. Solely for the purposes of these rules, a person required to electronically-pay tax or to electronically-file a tax return, information report, or data acting as a collection agent, or dealer for the state will be considered a taxpayer.

(19) “Tax return” shall have the meaning prescribed in paragraph (2)(b) of Section 213.755, F.S.

(20) “Tax type” means a tax, surtax, surcharge, or fee that is subject to remittance of payments, and the submission of tax returns, information reports, or data, by electronic means to the Department. The tax types for which taxpayers will be required to pay amounts due or submit tax returns, information reports, or data by electronic means are as follows:

(a) Communications services tax;

(b) Corporate income/franchise tax;

(c) Documentary stamp tax;

(d) Fuel taxes on motor fuel, diesel fuel, and alternative fuel, including local option taxes;

(e) Gross receipts tax on dry-cleaning;

(f) Gross receipts tax on natural gas, manufactured gas, or electricity;

(g) Insurance premium taxes, fees, regulatory assessments, excise taxes, and surcharges required to be remitted to the Department;

(h) Miami-Dade Lake Belt mitigation fee;

(i) Motor vehicle warranty fees;

(j) Pollutant taxes;

(k) Prepaid wireless fee;

(l) Reemployment tax;

(m) Rental car surcharge;

(n) Sales and use tax, discretionary sales surtaxes, and any tourist development tax, tourist impact tax, or convention development tax administered by the Department;

(o) Severance taxes and surcharges on gas and sulfur production, oil production, and solid mineral severance;

(p) Solid waste fees, including the new tire fee (waste tire fee) and the new or remanufactured battery fee.

(21) “Treasury” or “State Treasury” means the Treasury of the State of Florida.

(22) “Wire transfer” or “Fedwire” means an instantaneous electronic funds transfer generated by the taxpayer to the State Treasury.

History

• Rulemaking Authority 202.26(3)(a), 206.485(1), 213.06(1), 213.755(8), (9), 220.21(2), (3), 443.1317, 443.163(1) FS. Law Implemented 202.30, 206.485, 213.755, 220.21(2), (3), 443.163 FS. History–New 12-19-89, Amended 1-8-91, 10-24-96, 4-30-02, 10-5-03, 6-1-09, 2-17-15, 11-12-20, 1-1-23, 1-1-26.

Fla. Admin. Code R. 12-24.003 Requirements to File or to Pay Taxes by Electronic Means

(1) Any taxpayer subject to the following taxes, surtaxes, surcharges, and fees who has paid that tax, surtax, surcharge, or fee in the prior state fiscal year in an amount of $5,000 or more must pay the taxes, surtaxes, surcharges, or fees due during the succeeding calendar year by electronic means:

(a) Miami-Dade Lake Belt mitigation fee;

(b) Severance taxes and surcharges on gas and sulfur production, oil production, and solid mineral severance.

(2) The following taxpayers must pay taxes, surtaxes, surcharges, and fees and file tax returns by electronic means during the succeeding calendar year when the taxpayer:

(a) Has paid any one of the following taxes, surtaxes, surcharges, or fees in the prior state fiscal year in an amount of $5,000 or more:

1. Communications services tax;

2. Corporate income/franchise tax;

3. Documentary stamp tax (other than remittances subject to Section 213.13, F.S.);

4. Gross receipts tax on natural gas, manufactured gas, or electricity;

5. Insurance premium taxes, fees, regulatory assessments, excise taxes, and surcharges required to be remitted to the Department.

6. Pollutant taxes imposed under Section 376.75, F.S., and under Chapter 206, Part IV, F.S.;

7. Sales and use tax, discretionary sales surtaxes, any tourist development tax, tourist impact tax, or convention development tax administered by the Department, rental car surcharge, and solid waste fees in the aggregate amount of $5,000 or more for all business locations.

8. Prepaid wireless fees in the aggregate amount of $5,000 or more for all business locations.

(b) Filed an Employer’s Quarterly Report (Form RT-6, incorporated by reference in Rule 73B-10.037, F.A.C.), including a Correction to Employer’s Quarterly or Annual Domestic Report (Form RT-8A, incorporated by reference in Rule 73B-10.037, F.A.C.), for ten (10) or more employees in any calendar quarter during the preceding state fiscal year.

(3) The following taxpayers must pay taxes, surtaxes, surcharges, and fees and file tax returns by electronic means when the taxpayer:

(a) Files a consolidated sales and use tax return (forms DR-15CON and DR-7, incorporated by reference in Rule 12A-1.097, F.A.C.).

(b) Files a consolidated prepaid wireless fee return.

(4) The following dealers must timely file Florida sales and use tax returns and remit sales tax and discretionary sales surtax to the Department by electronic means.

(a) A marketplace provider that is a dealer under Chapter 212, F.S.

(b) A person who is required to collect and remit sales tax on remote sales.

(5) The following taxpayers must file tax returns by electronic means:

Any licensed fuel dealer required to report information used by the Department to track the movement of fuel products within Florida must pay taxes and file information and tax returns by electronic means as provided in Rule 12B-5.600, F.A.C.

(6) Any corporation with assets of $10 million or more and that files at least 250 federal tax returns annually with the Internal Revenue Service is required to file its federal income tax returns and its Florida corporate income tax returns using the Internal Revenue Service e-File program. Any corporation that paid $5,000 or more in corporate income tax in the prior state fiscal year must file its Florida corporate income/franchise tax return using the Internal Revenue Service e-File program.

(7) Any tax collector, as defined in Rule 12-24.002, F.A.C., who has paid the following taxes, surtaxes, fees, and interest earned in an aggregate amount of $5,000 during the prior state fiscal year, must pay the taxes, surtaxes, fees, and interest earned, and file tax returns for those revenues, due during the succeeding calendar year by electronic means:

(a) Interest earned on investment of funds under Section 219.075, F.S.;

(b) Motor vehicle warranty fees; and,

(c) Sales tax and discretionary sales surtaxes.

(8)(a) All taxpayers required to pay taxes or fees or to file tax returns by electronic means must participate for the entire calendar year. Taxpayers must continue to participate in subsequent calendar years until such time that the taxpayer no longer meets the electronic filing and reporting requirements of this rule for an entire state fiscal year.

(b) The Department will notify taxpayers who initially meet the requirements to participate at their last address of record. Once notified of this requirement, the taxpayer must transmit by electronic means all payments and returns for that tax type as provided in this rule.

History

• Rulemaking Authority 202.26(3)(a), 206.485(1), 213.06(1), 213.755(8), (9), 220.21(2), (3), 443.1317, 443.163(1) FS. Law Implemented 202.30, 206.485, 212.11(4)(f), 213.755, 220.21(2), (3), 443.163 FS. History–New 12-19-89, Amended 1-8-91, 11-17-93, 4-30-02, 10-5-03, 6-1-09, 6-28-10, 2-17-15, 11-12-20, 5-23-22, 1-1-23, 1-1-26.

Fla. Admin. Code R. 12-24.004 Enrollment

(1)(a) On or before November 1 (January 1 for taxpayers remitting only reemployment tax), the Department will notify every taxpayer required to pay a tax, surtax, surcharge, or fee, or to file a tax return by electronic means in the upcoming calendar year when:

1. The taxpayer is not currently enrolled to pay that tax, surtax, surcharge, or fee or to file that tax return by electronic means; or,

2. The taxpayer is voluntarily enrolled to pay or to file by electronic means and will be required to pay that tax, surtax, surcharge, or fee or to file that tax return by electronic means in the upcoming calendar year.

(b) The notification by the Department will include:

1. Information on how to access and complete enrollment on the Department’s website; and,

2. An explanation of the options from which the taxpayer must choose to pay taxes or fees or to file tax returns by electronic means.

(2) Enrollment for eServices Program requires the submission of the following information:

(a) The taxpayer’s or reemployment tax agent’s business entity name;

(b) The taxpayer’s or reemployment tax agent’s tax identification numbers assigned by the federal government and the Department, including tax account number if different from the tax identification numbers. Social Security Numbers are used by the Department as unique identifiers for the administration of Florida’s taxes. Social Security Numbers obtained for tax administration purposes are confidential under Sections 213.053 and 119.071, F.S., and not subject to disclosure as public records.

(c) Tax type;

(d) The name, mailing address, telephone number, fax number, and e-mail address of a contact person who is responsible for electronic payments and/or electronic filing of returns for the taxpayer’s or reemployment tax agent’s business;

(e) Whether the contact person is an employee of the business or an independent tax preparer;

(f) If completed by an independent tax preparer or a reemployment tax agent, the preparer’s taxpayer identification number or reemployment tax agent number;

(g) The tax and/or fee type(s) for which the taxpayer is enrolling;

(h) The filing and payment method the taxpayer or reemployment tax agent requests; and,

(i) The taxpayer’s banking information, including the taxpayer’s bank name, the bank routing number(s), the taxpayer’s bank account number(s), and information stating whether the account is a savings or checking account and whether the account is a business account or a personal account (this information is not required if the taxpayer is requesting the ACH-credit method).

(3) By completing and submitting the enrollment information, the taxpayer or reemployment tax agent is applying to file tax returns and reports and make tax and fee payments to the Department electronically. In addition, by completing and submitting this enrollment request, the taxpayer or reemployment tax agent and the Department agree that:

(a) The same statute and rule sections that pertain to all paper documents filed by the taxpayer or reemployment tax agent govern an electronic return, report, or payment initiated electronically.

(b) The taxpayer’s or reemployment tax agent’s electronic transmission of such reports, returns, and payments must be made in a manner compatible with the Department’s software, equipment, and facilities. Any failure to comply with this term will result in the taxpayer or reemployment tax agent being deemed to have failed to file a return or payment.

(c) Each tax return or payment or other remittance communicated electronically will be considered to be “in writing” and “written” to an extent no less than as if in paper, to be “signed,” and to be an original.

(d)1. By typing his or her name on the signature line of an electronically-submitted enrollment and authorization agreement, the taxpayer or reemployment tax agent is declaring, under penalties of perjury, that he or she is authorized to sign on behalf of the applicant entity, and that he or she has personally reviewed the information provided, and that the facts stated are true.

2. The typed name of the taxpayer or reemployment tax agent or its authorized agent(s) affixed to a completed and properly submitted enrollment and authorization agreement will be deemed to appear on electronically filed tax returns, as if actually so appearing.

(e) The taxpayer or reemployment tax agent must notify the Department of any changes by accessing and completing a change request on the Department’s website, or completing and submitting a new Form DR-600, no later than 30 consecutive calendar days before the changes are intended to take effect.

(4) Upon receipt of enrollment information, the Department will assign confidential user information directly to the enrollee.

History

• Rulemaking Authority 202.26(3)(a), 206.485(1), 213.06(1), 213.755(8), (9), 220.21(2), (3), 443.1317, 443.163(1) FS. Law Implemented 119.071(5), 202.30, 206.485, 213.755, 220.21(2), (3), 443.163 FS. History–New 12-19-89, Amended 1-8-91, 11-17-93, 4-30-02, 10-5-03, 6-1-09, 2-17-15, 11-12-20.

Fla. Admin. Code R. 12-24.005 Methods of Payment by Electronic Means

(1) Taxpayers may utilize either ACH debit or ACH credit as the method by which they shall remit taxes and fees by electronic means.

(2) The Department reserves the right to revoke the ACH credit method payment privilege of any taxpayer who does not consistently transmit error-free payments; or substantially varies from the requirements and specifications of these rules; or repeatedly fails to make timely electronic payments or timely provide payment information; or, repeatedly fails to provide the required addenda record with the electronic payment.

History

• Rulemaking Authority 202.26(3)(a), 206.485(1), 213.06(1), 213.755(8), (9), 220.21(2), (3), 443.1317, 443.163(1) FS. Law Implemented 202.30, 206.485, 213.755, 220.21(2), (3), 443.163 FS. History–New 12-19-89, Amended 1-8-91, 11-17-93, 4-30-02, 10-5-03, 6-1-09, 2-17-15.

Fla. Admin. Code R. 12-24.006 Means of Communication to Report Payment Information

History

• Rulemaking Authority 202.26(3)(a), 213.06 FS. Law Implemented 202.30, 213.755, 443.1317, 443.163 FS. History–New 12-19-89, Amended 11-17-93, 4-30-02, Repealed 10-5-03.

Fla. Admin. Code R. 12-24.007 Electronic Payment Transmission Errors

(1) If a taxpayer makes an error on an electronic payment for a particular period, the taxpayer must, on the nearest business day after the date on which the error is discovered, contact the Department, Monday through Friday (excluding holidays), at (850)488-6800 or at the Department’s website at floridarevenue.com/taxes/eservices for specific instructions. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(a) If the taxpayer error involves an overpayment of tax, the taxpayer may either elect to have the overpayment applied against the liability for the next reporting period or apply for a refund under the provisions of the applicable tax statute.

(b) If the taxpayer error involves an underpayment of tax, the taxpayer must make appropriate arrangements to initiate payment for the amount of the underpayment.

(2) In the event a taxpayer using the ACH debit method communicates electronic payment information to the Data Collection Center after 5:00 p.m. (Eastern Time), on the business day before the due date, the payment will be posted to the taxpayer’s account on the next business day following the due date and will constitute late payment.

(3) Except as provided in these rules or rule Chapter 12-13, F.A.C., a failure to make a timely electronic payment because of other circumstances under the taxpayer’s control, including but not limited to insufficiency of funds in the taxpayer’s account, will result in the loss of the taxpayer’s collection allowance and the assessment of the appropriate penalties and interest by the Department.

Cross Reference: Rule 12-24.009, F.A.C.

History

• Rulemaking Authority 202.26(3)(a), 206.485(1), 213.06(1), 213.755(8), (9), 220.21(2), (3), 443.1317, 443.163(1) FS. Law Implemented 202.30, 206.485, 213.755, 220.21(2), (3), 443.163 FS. History–New 12-19-89, Amended 1-8-91, 11-17-93, 4-30-02, 10-5-03, 6-1-09, 2-17-15

Fla. Admin. Code R. 12-24.008 Procedures for Payment

(1) ACH Debit Method.

(a) The taxpayer must report electronic payment information to the Data Collection Center by the approved means of communication, no later than 5:00 p.m. (Eastern Time), on the business day immediately preceding the due date of the payment. The Data Collection Center must be contacted during the submission period specified in the detailed instructions provided to enrolled taxpayers. The Department will bear the costs of processing electronic ACH debit payments through the Data Collection Center. Communication by the taxpayer during the submission period is mandatory to assure the timely posting of the taxpayer’s payment on the following business day.

(b) After establishing contact with the Data Collection Center, the taxpayer is allowed to communicate electronic payment information for more than one tax type or tax period. However, the taxpayer must initiate electronic payment information for each tax type and for each tax period for which an electronic payment is due. The following electronic payment information is required from the taxpayer:

1. User information;

2. Tax payment amount;

3. Tax period; and,

4. Payment type.

(c) A number will be issued at the conclusion of the communication of the electronic payment information for each payment type and tax period. This number provides a means of verifying the accuracy of the recorded tax payment and serves as a receipt for the transaction.

(d) Shortly after the expiration of the submission period, the Department will receive an electronic transmission from the Data Collection Center containing all the payment information that has been communicated by the taxpayer to the Data Collection Center during that submission period.

(e) Example. A taxpayer who uses the ACH debit method to remit the January sales tax payment will first determine the total amount of tax due with respect to the sales and use tax return (amount due with return) for the January applied period. Prior to the end of the submission period on February 19 (or the last business day prior to the 19th), the taxpayer must contact the Data Collection Center. After establishing contact, the taxpayer will identify the electronic payment account with the user information and provide the payment type (tax payment), the payment amount ($12,345), and the tax period (1/31/08). At the end of the communication, the taxpayer will receive a number that will verify the accuracy of the recorded tax payment and serve as a receipt for the transaction. Electronic payment information involving the ACH debit transfer will be electronically transmitted to the Department on February 19, shortly after the expiration of the contact period. The actual tax payment of $12,345, however, will not be posted as collected funds to the Treasurer’s account until the following day, February 20. Taxpayers must file the required return as provided by law and rule. If applicable, the taxpayer must check the box on the return to show payment by electronic payment.

(2)(a) ACH Credit Method. Taxpayers who elect to use the ACH credit method must contact their own financial institutions and make the arrangements to transfer the tax payment to the State Treasury account using an ACH credit transfer. The Department will not bear the costs for taxpayers to use the ACH credit method.

(b) To assure the timely receipt of payment of tax, a taxpayer must initiate the payment transaction with its financial institution in time for the payment to be deposited as collected funds to the State Treasury account on or before the appropriate due date.

(c) All ACH credit transfers must be accompanied by a Cash Concentration or Disbursement (CCD) + addenda record, in the format specified by the Department in Form DR-600TP, ACH-Credit Payment Method Requirements Florida e-Services. A table of tax types and the corresponding tax type code is provided in Form DR-655, Tax Type/Tax Type Code Florida e-Services. Forms DR-600TP and DR-655 are incorporated by reference in Rule 12-24.011, F.A.C.

(d) If the taxpayer fails more than three times in 12 consecutive calendar months to provide the Department with the required addenda record, the taxpayer will be required to use the ACH debit method.

(e) Example. A taxpayer who uses the ACH credit method to remit the January sales tax payment will first determine the total amount of tax due with respect to the sales and use tax return (amount due with return) for the January applied period. At a time arranged between the taxpayer and the taxpayer’s financial institution, the taxpayer will provide the taxpayer’s financial institution with the information necessary to initiate a timely transfer of the January tax payment and an accompanying CCD + addenda record. The timely initiated ACH credit transfer of $12,345 will be posted as collected funds to the State Treasurer’s account on February 20. To be timely, the ACH credit transfer of January tax must be deposited to the State Treasury account as collected funds on or before February 20. Taxpayers must file the required return as provided by law and rule. If applicable, the taxpayer must check the box on the return to show payment by electronic funds transfer.

(3) Wire transfer. Taxpayers who, due to circumstances beyond their reasonable control, are unable to initiate a timely electronic payment of tax through the ACH-debit method or the ACH credit method may request the Department’s permission, on an exception basis, to transmit a payment of tax to the State Treasurer’s account via wire transfer. The term “circumstances beyond their reasonable control” includes the failure of equipment essential to the transmission of the payment, the unavailability of the employee(s) who handles such transmissions, or a natural disaster.

(a) Prior to initiating the transmission, the taxpayer must fax a written explanation of the emergency situation that prevents timely compliance under either the ACH-debit method or ACH credit method and must request written approval to wire transfer the tax payment in question to the State Treasury account. The fax number is (850)922-5088. The written request must include the information discussed in sub-subparagraphs (3)(b)1.a. through f.

(b) Taxpayers who are granted written approval to use wire transfer will be given specific instructions regarding the payment information that must accompany the wire transfer.

1. All wire transfers must be accompanied by payment information, in addition to an addenda record, in the format specified by the Department, which includes the following information:

a. Taxpayer’s name;

b. Taxpayer’s identification number;

c. Tax type;

d. Amount/payment type;

e. Amount of payment;

f. Tax period;

g. Name and account of correspondent bank;

h. Name of receiving bank;

i. State treasury account number; and,

j. American Bank Association 9-digit number of receiving bank.

2. The Department will not bear any costs associated with the wire transfer.

(c) Wire transfers that are not received in the State Treasury account on or before the due date of the transmitted payments of tax will constitute late payment, and the applicable late filing penalties, interest, and loss of collection allowance apply.

History

• Rulemaking Authority 202.26(3)(a), 206.485(1), 213.06(1), 213.755(8), (9), 220.21(2), (3), 443.163(1) FS. Law Implemented 202.30(1), 206.485, 213.755, 220.21(2), (3), 443.163 FS. History–New 12-19-89, Amended 1-8-91, 11-17-93, 4-30-02, 10-5-03, 6-1-09, 2-17-15, 7-28-15.

Fla. Admin. Code R. 12-24.009 Due Date; General Provisions

(1)(a) Taxpayers who are required to pay taxes or fees through electronic means must initiate the transfer so that the amount due is deposited as collected funds to the State Treasurer’s account on or before the due date under the appropriate revenue law. If a tax due date falls on a Saturday, a Sunday, a legal holiday as defined in Section 683.01, F.S., or on a legal holiday of the jurisdiction in which the taxpayer’s financial institution is located, the deposit by electronic means is required on or before the first banking day thereafter. The transfer of funds will occur the following banking day. For the purposes of these rules, “banking day” has the meaning prescribed in Section 674.104(1), F.S. If the date on which the taxpayer is required to initiate either an ACH debit or an ACH credit transfer falls on a Saturday, a Sunday, or a business or banking holiday, the taxpayer must initiate the transaction on the preceding business day.

(b) To assist the taxpayer in complying with all statutory requirements for timely electronic payment of taxes, surtaxes, surcharges, and fees due and the timely filing of tax returns, the Department will provide an annual calendar of dates by which the initiation of a return with payment, or payment only, must be completed. The annual calendar of dates is posted on the Department’s website at floridarevenue.com/forms and may also be obtained by calling the Department at (850)488-6800. Persons with hearing or speech impairments may call Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(2) If the electronic payment is not timely made or the tax return required is not electronically-filed by the statutory due date, the provisions for late filing penalties, interest, and loss of collection allowance or discount apply under the provisions of the appropriate revenue law, except as provided in these rules.

(3) The provisions of Section 213.21, F.S. (Section 443.141(1), F.S., for reemployment tax), govern the compromise and settlement of any tax, interest, or penalty assessed due to the late payment of an electronically filed payment, except as provided in these rules.

(a) For electronic payment purposes, “reasonable cause” as stated in Section 213.21, F.S., and rule Chapter 12-13, F.A.C., and “good reason” as stated in Section 443.141(1), F.S., both include, for the compromise of penalty, the following:

1. The inability to access the electronic payment system on the required date because of a system failure beyond the reasonable control of the taxpayer;

2. The failure of the electronic payment system to properly apply a payment; or

3. The failure of the electronic payment system to issue proper verification of receipt of payment information.

(b)1. A taxpayer who is required to remit payments under the electronic payment program and who is unable to make a timely payment because of system failures within the banking system/ACH interface that are beyond the taxpayer’s control are not subject to penalty or interest for late payment or loss of collection allowance or discount. The taxpayer must provide a written explanation and supporting documentation concerning any system failure within the banking system/ACH interface to: Taxpayer Services, Florida Department of Revenue, 5050 W. Tennessee Street, Tallahassee, Florida 32399-0112.

2. Taxpayers must ensure that they use reasonable and prudent judgment when selecting a banking system or ACH interface to handle their electronic payment transactions.

(c) Errors made by the Data Collection Center, the State Treasury, or the Department will not subject the taxpayer to loss of collection allowance or discount, or assessment of penalty or interest for late payment.

(4) Pursuant to Section 202.28(1), F.S., dealers of communications services who fail to properly pay by electronic means the communications services taxes as required in Section 202.30(1), F.S., are not authorized to claim the collection allowance authorized by Section 202.28, F.S., for the proper remitting of taxes.

History

• Rulemaking Authority 202.26(3)(a), 206.485(1), 213.06, 213.755(8), (9), 220.21(2), (3), 443.1317, 443.163(1) FS. Law Implemented 202.28, 202.30, 206.485, 212.12, 213.755, 220.21(2), (3), 443.163 FS. History–New 12-19-89, Amended 4-30-02, 10-5-03, 6-1-09, 2-17-15.

Fla. Admin. Code R. 12-24.010 General Administrative Provisions; Voluntary Participation; Confidentiality; Granting of Waivers From Electronic Filing Requirements

(1) Taxpayers or reemployment tax agents who need general information concerning the Department’s eServices can contact the Department at (850)488-6800 or at the Department’s website at floridarevenue.com. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(2) Any taxpayer or reemployment tax agent may voluntarily participate in the Department’s eServices. See Rule 12-24.004, F.A.C., Enrollment. Taxpayers may terminate voluntary participation by filing a written notice of termination with Account Management at least 60 days prior to the due date of the last electronic payment. Termination requests must be directed to the Taxpayer Services, Florida Department of Revenue, 5050 W. Tennessee Street, Tallahassee, Florida 32399-0160.

(3) The Data Collection Center and its employees are bound by the same confidentiality requirements as the Department under Section 213.053, F.S.

(4)(a) The Department is authorized to waive the requirement that a taxpayer submit tax returns by electronic means, if the taxpayer can establish that he or she is unable to comply with e-filing requirements. To request a waiver the taxpayer must complete and submit Form DR-654, Request for Waiver From Electronic Filing (incorporated by reference in Rule 12-24.011, F.A.C.), to establish in writing the basis under which such waiver is requested. The Department will verify the information submitted on the form and will respond in writing to the taxpayer after reviewing the form.

(b) Grounds for approving a waiver include, but are not limited to:

1. Any of the circumstances specified in Section 202.30(2)(b), 213.755(9)(a), (b), 220.21(2) or 443.163(3), F.S.; or

2. The taxpayer does not have a modem; or

3. The taxpayer does not have access to the Internet.

(c) A waiver shall be valid for up to two years, and the issuance of a subsequent waiver will be contingent on the taxpayer working with the Department during the current waiver period to address the issues that originally necessitated the issuance of the waiver. The requirement to work with the Department to address the issues that necessitated a waiver means the taxpayer will: discuss existing computer capabilities with the Department; consider any assistance, recommendations, or training the Department offers; and implement any Department recommendation that enables the taxpayer to submit returns by electronic means, unless the taxpayer can establish that the circumstances or reasons as set forth in Section 202.30(2)(b), 213.755(9)(a), (b), 220.21(2) or 443.163(3), F.S., continue to apply.

History

• Rulemaking Authority 202.26(3)(a), 206.485(1), 213.06(1), 213.755(8), (9), 220.21(2), (3), 443.1317, 443.163(1) FS. Law Implemented 202.30, 206.485, 213.755, 220.21(2), (3), 443.163 FS. History–New 12-19-89, Amended 1-8-91, 11-17-93, 4-30-02, 10-5-03, 6-1-09, 2-17-15, 11-12-20.

Fla. Admin. Code R. 12-24.011 Public Use Forms

(1)(a) The following public use forms and instructions are utilized by the Department for the purposes of the Department’s eServices and are hereby incorporated by reference in this rule.

(b) Copies of the forms may be obtained, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, (800)955-8770 (Voice) and (800)955-8771 (TTY).

Form Number

Title

Effective Date

(2) DR-600

Enrollment and Authorization for eServices

https://flrules.org/Gateway/reference.asp?No=Ref-18767

01/26

(3) DR-600TP

ACH-Credit Payment Method Requirements for Making Electronic Payments

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16250)

01/24

(4) DR-654

Request for Waiver From Electronic Filing (R. 01/13)

http://www.flrules.org/Gateway/reference.asp?No=Ref-02540

05/13

(5) DR-655

Tax Type/Tax Type Code Florida e-Services (R. 01/17)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-07744)

01/17

PART II TAXPAYER RECORDKEEPING AND RETENTION REQUIREMENTS

History

• Rulemaking Authority 202.26(3)(a), 206.485(1), 213.06(1), 213.755(8), (9), 220.21(2), (3), 443.163(1) FS. Law Implemented 119.071(5), 202.30, 206.485, 213.755, 220.21(2), (3), 443.1317, 443.163 FS. History–New 6-1-09, Amended 6-28-10, 6-6-11, 5-9-13, 2-17-15, 7-28-15, 1-10-17, 1-1-24, 1-1-26, Technical Change 6-8-26.

Fla. Admin. Code R. 12-24.021 Scope

Rules 12-3.0012 and 12-24.021 through 12-24.029, F.A.C., define the requirements imposed on taxpayers for the maintenance and retention of books, records, and other sources of information under section 213.35, F.S. These rules address such requirements where all or a part of the taxpayer’s records are received, created, maintained or generated through computer, electronic, and imaging processes and systems. Unless in conflict with the specific requirements imposed by other rules of the Department, these rules shall govern the recordkeeping and retention requirements imposed by the revenue laws administered by the Department.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.35, 443.1317, 443.163 FS. History–New 10-24-96, Amended 4-30-02, 10-5-03, Technical Change 6-8-26.

Fla. Admin. Code R. 12-24.022 Definitions

For purposes of this Part, these terms shall be defined as follows:

(1) “Database Management System” means a software system that controls, relates, retrieves, and provides accessibility to data stored in a database.

(2) “Department” means the Florida Department of Revenue or its authorized representative.

(3) “Electronic data interchange” or “EDI technology” means the computer to computer exchange of business transactions in a standardized structured electronic format.

(4) “Hardcopy” means any documents, records, reports or other data printed on paper.

(5) “Machine-sensible record” means a collection of related information in an electronic format. Machine-sensible records do not include hardcopy records that are created or recorded on paper or stored in or by an imaging system such as microfilm, microfiche, or storage-only imaging systems.

(6) “Storage-only imaging systems” means a system of computer hardware and software that provides for the storage, retention and retrieval of documents originally created on paper. It does not include any system, or part of a system, that manipulates or processes any information or data contained on the document in any manner other than to reproduce the document in hardcopy or as an optical image.

(7) “Taxpayer” as used in this Part means any person, including any individual, firm, partnership, copartnership, joint adventure, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit and also includes any political subdivision, municipality, state agency, bureau, or department and includes the plural as well as the singular number.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.35 FS. History–New 10-24-96.

Fla. Admin. Code R. 12-24.023 Recordkeeping Requirements – General

(1) A taxpayer shall maintain all records that are necessary to make a determination of its correct tax liability for any tax specified in Section 72.011, F.S. All required records must be made available on request by the Department as provided in Section 213.34, F.S. Such records shall comply with the adequate records provisions discussed in Rule 12-3.0012, F.A.C., and shall include, but not be limited to: books of account, invoices, bills of lading, gross receipts from sales, resale certificates, consumer exemption certificates, and other pertinent records.

(2) If a taxpayer maintains records required to be retained under this chapter in both machine-sensible and hardcopy formats, the taxpayer shall make the records available to the Department in machine-sensible format upon request of the Department.

(3) Nothing in this Part shall be construed to prohibit a taxpayer from demonstrating tax compliance with traditional hardcopy documents or reproductions thereof, in whole or in part, whether or not such taxpayer also has retained or has the capability to retain records on electronic or other storage media in accordance with this Part. However, this subsection shall not relieve the taxpayer of the obligation to comply with subsection 12-24.023(2), F.A.C.

(4) The Department shall use Form DR-600, Enrollment and Authorization for eServices Program (incorporated by reference in Rule 12-24.011, F.A.C.) to document an agreement with a taxpayer or preparer that such taxpayer or preparer will file tax reports and returns by electronic means.

(5) Pursuant to Section 202.28(1), F.S., taxpayers who fail to properly initiate a communications services tax return by electronic data interchange as required in Section 202.30(2), F.S., are not authorized to claim the collection allowance authorized by Section 202.28, F.S., for the proper filing of tax returns.

History

• Rulemaking Authority 213.06(1), 443.1317 FS. Law Implemented 213.34, 213.35, 443.1317, 443.163 FS. History–New 10-24-96, Amended 4-30-02, 10-5-03, 1-20-14.

Fla. Admin. Code R. 12-24.024 Recordkeeping Requirements ‒ Machine-Sensible Records

(1) General Requirements.

(a) Machine-sensible records used to establish tax compliance shall contain sufficient transaction-level detail information so that the details underlying the machine-sensible records can be identified and made available to the Department upon request. A taxpayer has discretion to discard duplicated records and redundant information provided his or her responsibilities under these rules are met.

(b) At the time of an examination by the Department, the taxpayer’s retained records must be capable of being retrieved and converted to a standard record format.

(c) Taxpayers are not required to construct machine-sensible records other than those created in the ordinary course of business. A taxpayer who does not create the electronic equivalent of a traditional paper document in the ordinary course of business is not required to construct such a record for tax purposes.

(2) Electronic Data Interchange Requirements.

(a) Where a taxpayer uses electronic data interchange processes and technology, the level of record detail, in combination with other records related to the transactions, must be equivalent to that contained in an acceptable paper record. For example, the retained records should contain information including vendor name, invoice date, product description, quantity purchased, price, amount of tax, indication of tax status, and shipping detail. Codes may be used to identify some or all of the data elements, provided that the taxpayer provides a method which allows the Department to interpret the coded information.

(b) The taxpayer may capture the information necessary to satisfy these rules at any level within the accounting system and need not retain the original EDI transaction records provided the audit trail, authenticity, and integrity of the retained records can be established. For example, a taxpayer using electronic data interchange technology receives electronic invoices from its suppliers. The taxpayer decides to retain the invoice data from completed and verified EDI transactions in its accounts payable system rather than to retain the EDI transactions themselves. Since neither the EDI transaction nor the accounts payable system captures information from the invoice pertaining to product description and vendor name (i.e., they contain only codes for that information), the taxpayer must retain other records, such as his or her vendor master file and product code description lists and make them available to the Department. In this example, the taxpayer need not retain its EDI transaction for tax purposes.

(3) Electronic Data Processing Systems Requirements. The requirements for an electronic data processing accounting system should be similar to those of a manual accounting system, in that an adequately designed accounting system should incorporate methods and records that will satisfy the requirements of this chapter.

(4) Business Process Information.

(a) Upon the request of the Department, the taxpayer shall provide a description of the business process that created the retained records. Such description shall include the relationship between the records and the tax documents prepared by the taxpayer and the measures employed to ensure the integrity of the records.

(b) The taxpayer shall be capable of demonstrating:

1. The functions being performed as they relate to the flow of data through the system;

2. The internal controls used to ensure accurate and reliable processing; and,

3. The internal controls used to prevent unauthorized addition, alteration, or deletion of retained records.

(c) The following specific documentation is required for machine-sensible records retained pursuant to this rule:

1. Record formats or layouts;

2. Field definitions (including the meaning of all codes used to represent information);

3. File descriptions (e.g., data set name); and,

4. Detailed charts of accounts and account descriptions.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.34, 213.35 FS. History–New 10-24-96, Amended 4-30-02.

Fla. Admin. Code R. 12-24.025 Records Maintenance Requirements

(1) The Department recommends, but does not require, that taxpayers refer to the National Archives and Records Administration’s (NARA) standards for guidance on the maintenance and storage of electronic records, including the labeling of records, the location and security of the storage environment, the creation of back-up copies, and the use of periodic testing to confirm the continued integrity of the records. The NARA standards may be found at 36 Code of Federal Regulations, Part 1234, July 1, 2001 edition.

(2) The taxpayer’s computer hardware or software shall accommodate the extraction and conversion of retained machine-sensible records.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.35 FS. History–New 10-24-96, Amended 4-30-02.

Fla. Admin. Code R. 12-24.026 Access to Machine-Sensible Records

(1) The manner in which the Department is provided access to machine-sensible records as required in subsection 12-24.023(2), F.A.C., may be satisfied through a variety of means that shall take into account a taxpayer’s specific facts and circumstances, as determined through consultation with the taxpayer.

(2) Departmental access will be provided in one or more of the following manners:

(a) The taxpayer may arrange to provide the Department with the hardware, software and personnel resources to access the machine-sensible records;

(b) The taxpayer may arrange for a third party to provide the hardware, software and personnel resources necessary to access the machine-sensible records;

(c) The taxpayer may convert the machine-sensible records to a standard record format specified by the Department, including copies of files, on a magnetic medium that is agreed to by the Department; or

(d) The taxpayer and the Department may agree on other means of providing access to the machine-sensible records.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.34, 213.35 FS. History–New 10-24-96, Amended 4-30-02.

Fla. Admin. Code R. 12-24.027 Taxpayer Responsibility and Discretionary Authority

(1) In conjunction with meeting the requirements of Rules 12-24.024, 12-24.025 and 12-24.026, F.A.C., a taxpayer may create files solely for the use of the Department. For example, if a data base management system is used, it is consistent with the rule for the taxpayer to create and retain a file that contains the transaction-level detail from the data base management system and that meets the requirements of Rules 12-24.024, 12-24.025 and 12-24.026, F.A.C. The taxpayer should document the process that created the separate file to show the relationship between that file and the original records.

(2) A taxpayer may contract with a third party to provide custodial or management services of the records. Such a contract shall not relieve the taxpayer of its responsibilities under this chapter.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.35 FS. History–New 10-24-96, Amended 4-30-02.

Fla. Admin. Code R. 12-24.028 Alternative Storage Media

(1) For purposes of storage and retention, taxpayers may convert hardcopy documents received or produced in the normal course of business and required to be retained under this chapter to microfilm, microfiche, or other storage-only imaging systems and may discard the original hardcopy documents, provided the conditions of this rule are met. Documents which may be stored on these media include, but are not limited to general books of account, journals, voucher registers, general and subsidiary ledgers, and supporting records of details, such as sales invoices, purchase invoices, exemption certificates, and credit memoranda.

(2) Microfilm, microfiche, and other storage-only imaging systems shall meet the following requirements.

(a) Documentation establishing the procedures for converting the hardcopy documents to microfilm, microfiche, or other storage only imaging system must be maintained and made available on request. Such documentation shall, at a minimum, contain a sufficient description to allow an original document to be followed through the conversion system as well as internal procedures established for inspection and quality assurance.

(b) Procedures must be established for the effective identification, processing, storage, and preservation of the stored documents and for making them available for the period they are required to be retained under Section 213.35, F.S.

(c) Upon request by the Department, a taxpayer must provide facilities and equipment for reading, locating, and reproducing any documents maintained on microfilm, microfiche or other storage-only imaging system.

(d) When displayed on such equipment or reproduced on paper, the documents must exhibit a high degree of legibility and readability. For this purpose, legibility is defined as the quality of a letter or numeral that enables the observer to identify it positively and quickly to the exclusion of all other letters or numerals. Readability is defined as the quality of a group of letters or numerals being recognizable as words or complete numbers.

(e) All data stored on microfilm, microfiche or other storage-only imaging systems must be maintained and arranged in a manner that permits the location of any particular record.

(f) There is no substantial evidence that the microfilm, microfiche or other storage-only imaging system lacks authenticity or integrity.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.34, 213.35 FS. History–New 10-24-96, Amended 4-30-02, 5-9-13.

Fla. Admin. Code R. 12-24.029 Effect on Hardcopy Recordkeeping Requirements

(1) Except as otherwise provided in this section, the provisions of this chapter do not relieve taxpayers of the responsibility to retain hardcopy records that are created or received in the ordinary course of business as required by existing statutes and rules. Hardcopy records may be retained on a recordkeeping medium as provided in Rule 12-24.028, F.A.C.

(2) If hardcopy records are not produced or received in the ordinary course of transacting business (e.g., when the taxpayer uses electronic data interchange technology), such hardcopy records need not be created for examination by the Department.

(3) Hardcopy records generated at the time of a transaction using a credit or debit card must be retained unless all the details necessary to determine correct tax liability relating to the transaction are subsequently received and retained by the taxpayer in accordance with this chapter. Such details include those listed in Rule 12-24.024, F.A.C.

(4) Computer printouts that are created for validation, control, or other temporary purposes need not be retained.

(5) Nothing in this rule section shall prevent the Department from requesting hardcopy printouts in lieu of retained machine-sensible records at the time of examination.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.34, 213.35 FS. History–New 10-24-96, Amended 4-30-02.

Fla. Admin. Code R. 12-24.030 Records Retention ‒ Time Period

History

• Rulemaking Authority 202.26(3)(a), 213.06(1) FS. Law Implemented 202.30, 213.35 FS. History–New 10-24-96, Amended 4-30-02, Repealed 5-9-13.

Chapter 12-25 CONTRACT AUDITING

Fla. Admin. Code R. 12-25.001 Scope of Rules

This chapter implements Section 213.28, F.S., with respect to the Department’s authority to enter into contracts with certified public accountants to perform specific tax audit services. Also, this chapter sets forth the procedures to be used by the Department in the administration of Section 213.758, F.S., concerning the Department’s authority to contract with certified public accountants to conduct transferee liability audits. Finally, these rules govern the process by which the Department is authorized to enter into contracts with private brokers to secure the services of certified public accountants as provided in Section 213.28, F.S.

History

• Rulemaking Authority 213.06(1), 213.28(4), 213.758(9) FS. Law Implemented 213.28, 213.758 FS. History–New 5-11-92, Amended 3-20-94, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.002 Definitions

For the purposes of this rule chapter, the terms and phrases used in these rules shall have the meanings prescribed in this section, unless a different meaning is clearly indicated by the context in which the term or phrase is used.

(1) “Applicant” means a certified public accountant or a certified public accounting firm who submits a complete and properly prepared written response to the Department’s Request for Information for contract audit services, in accordance with the requirements stated in the Request for Information.

(2) “Applicants Ranking Committee” means a group of seven Department employees appointed by the Executive Director of the Department or the Executive Director’s designee.

(3) “Audit Services” means the performance, pursuant to a contractual agreement with the Department, of a tax compliance audit by a contract auditor, or any special audit project designated by the Department.

(4) “Certified Public Accountant” or “C.P.A.” means a person operating as a sole proprietorship or firm who holds a license to practice public accounting in any state in the United States, and who is in public practice as a practice unit.

(5) “Contract Auditor” means a certified public accountant with whom the Department has executed a contractual agreement to provide auditing services.

(6) “Department” means the Florida Department of Revenue.

(7) “Florida Revenue Law” means any tax statute administered by the Department, including those enumerated in Section 213.05, F.S.

(8) “Private Broker” means a private business entity offering contract auditor recruitment services.

(9) “Professional Staff Member” means each person employed by a contracted certified public accounting firm who works, as defined in the contract, on a contract tax compliance audit.

(10) “Request for Information” means a formal, written solicitation of a certified public accountant’s qualifications and specific fee proposal to perform auditing services for the Department.

(11) “Request for Proposal” means the competitive bid procedure defined in Section 287.012, F.S.

(12) “Single, Blended Rate” means the per hour rate developed by the applicant and submitted as the fee proposal required by Section 213.28, F.S.

(13) “Tax Compliance Audit” means an examination of the accounts, books, and records of a person subject to a revenue law for the purpose of ascertaining compliance with such laws and determining the correctness of any returns which have been filed or payments which have been made, or for the purpose of making a return when none has been made.

(14) “Taxpayer” means any person subject to a Florida revenue law. For the purpose of these rules, “person” includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit and also includes any political subdivision, municipality, state agency, bureau, or department and includes the plural as well as the singular number.

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28, 213.758 FS. History–New 5-11-92, Amended 3-20-94, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.003 Application of Rules

(1) Under the provisions of Section 213.28, F.S., the Department is granted the authority to contract with certified public accountants to conduct a tax compliance audit of any person who is subject to a Florida revenue law. Additionally, the Department has the discretionary authority to contract with a private broker to facilitate the recruitment of certified public accountants licensed to practice outside of Florida who can perform tax compliance audits of taxpayers located outside this state who are subject to Florida’s revenue laws.

(2)(a) Contracts for audit services will generally involve the performance of the following audit services:

1. Contract tax compliance audits, including transferee liability audits, of taxpayers located in and out of Florida; and,

2. Special audit projects.

(b) Contract auditors shall not be used to supplant existing departmental audit staff.

(3) All contracts executed pursuant to Section 213.28, F.S., shall be interpreted under Florida law. Any action for resolution of any dispute related to such contracts shall be brought under the laws of this state, after the applicant has exhausted the remedies offered by the dispute resolution process established in Rule 12-25.0058, F.A.C.

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28, 213.758 FS. History–New 5-11-92, Amended 3-20-94, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.004 Contract Auditor Prerequisites

An applicant and the applicant’s firm, prior to being considered for a contract or renewal of a contract to provide auditing services pursuant to Section 213.28, F.S., shall comply with the following qualifying criteria:

(1) Must be a certified public accountant in good standing under the laws of the state in which the applicant is licensed;

(2) Must be willing to certify that they have not performed accounting, auditing, management consulting, or tax services for any taxpayer or person that is a subsidiary, parent, sister, or other affiliate of the taxpayer on which they are requested to perform a tax compliance audit or special audit project pursuant to a contract with the Department during the 60-month period immediately preceding the signing of a contract to perform tax compliance audits or special audit projects;

(3) Certify that they will not perform accounting, auditing, management consulting, or tax services for any taxpayer or person that is a subsidiary, parent, sister, or other affiliate of the taxpayer on which a tax compliance audit or special audit project has been conducted pursuant to a contract with the Department, for a period of thirty-six consecutive calendar months from the date the Department’s assessment of tax due, denial of refund, issuance of a refund, or a “no change” becomes final or the special audit project is completed to the express written approval of the Department;

(4)(a) Shall not have provided private broker services to the Department, as defined in this rule; and,

(b) Shall not utilize or benefit from the provisions of Section 213.27, F.S. (Contracts with Debt Collection Agencies) or Section 213.30, F.S., (Compensation for Information Relating to a Violation of the Tax Laws) while under contract to the Department or with regard to any information obtained during the performance of a contractual obligation with the Department.

(5) Comply with contractual requirements regarding the confidentiality of tax information, which acknowledges the applicant’s legal responsibility to not disclose any taxpayer or departmental records.

(6) Timely provide the information, as specified by the Request for Information (when applicable), required by the Department for use in the applicant ranking procedure. “Timely provide” means the information must either be hand delivered to the Contract Manager’s Office or postmarked by the U.S. Postal Service by the deadline established in the Request for Information. Facsimile information will not be accepted.

(7) Shall not have any currently unpaid Florida state tax liability, and, to the best of the applicant’s knowledge, be in compliance with Florida revenue laws. This provision applies to any business entity owned or controlled by, or related to, the applicant, including a parent, subsidiary, brother or sister company, or other affiliated entity.

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28 FS. History–New 5-11-92, Amended 3-20-94, 10-30-96, 7-31-00, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.005 Selection Procedures for Contract Auditors

(1) Contract auditing services are exempted from the competitive bid selection procedures of Chapter 287, F.S. The selection processes described in this rule shall be utilized by the Department.

(2)(a)1. The Department will publish a new Request for Information and use the resulting responses to establish a ranked list of qualified applicants, when the Department identifies the need to revise or replace the group of firms under contract. Reasons to revise or replace will include, but not be limited to, the Department identifying a potential economic benefit to the state to be derived from publishing another Request for Information, the current firms not possessing or not possessing in sufficient quantity a specific professional expertise, the sum of the current firms and firms that had a contract in the immediately preceding program year that meet the renewal criteria being less than the total number of contracts the Department elects to let for a fiscal year, or there being a substantial change in the enabling statute (Section 213.28, F.S.).

2. This list represents the qualified applicants with which the Department will negotiate, in the order of their ranking, to select contract auditors. If the number of applicants exceeds 75, the Department will use statistical sampling techniques to determine which applicants will be ranked.

3. When the Department identifies the need to revise or replace the group of firms under contract, and the number of applicants exceeds 75, then the following statistical sampling techniques will be utilized to select applications to be ranked in that particular pool:

a. The population will be defined as the applications filed in a complete, timely manner (as determined by the Request for Information), for the subject contract size pool, exclusive of any applicant that has satisfactorily completed a contract at the time it submits an application and who meets all the criteria established in subsection (2) of this rule at the cut-off date established by the Contract Manager.

b. A random number generator software package will be used to select which applicants from the population will be ranked.

c. The size of this statistical sample will be of sufficient size to ensure that there are at least 2 firms competing for each available contract. The critical factor in determining the sample size will be the time available for the Applicants Ranking Committee to perform its function.

d. Any applicant that has completed a contract at the time it submits an application and who meets all the criteria established in subsection (2) of this rule at the cut-off date established by the Contract Manager will automatically be included in the ranking process.

(b) Until the Department identifies the need to revise or replace the group of firms under contract, the Contract Manager will develop a ranked list from those firms that have had contracts within the two immediate preceding program years for General Tax Administration (GTA) management approval. The approved ranked list will then be used by the Contract Manager to negotiate contracts, using the same procedures set forth in this rule section. The following method will be used to develop this ranked list, and the list discussed in paragraph (2)(a) of this rule:

1. Step A: The Contract Manager will establish a cut-off date prior to developing the ranked list. The Evaluation rating(s) and the Efficiency rating(s) for any individual audit submitted to the Department subsequent to the established cut-off date will not be considered in the current ranking process. The Contract Manager will eliminate from the list of firms any firms that, at the cut-off date:

a. No longer meet the prerequisites stated in Rule 12-25.004, F.A.C.; or,

b. Fail to comply with the requirements of Rule 12-25.0056, F.A.C.; or,

c. Have not submitted for review and approval at least 40 percent of their assigned audit hours. “Submitted” is defined as the completed audit file(s) delivered to the Department for final review on or before the cut-off date. If the applicant elects to use an overnight mail service to deliver its completed files, the delivery date is the date the service actually provides the files to the Department, not the date the completed files are provided to the overnight mail service, and not the date the overnight mail service is paid by the applicant. The U.S. Postal Service postmark date on the mailing envelope, which constitutes the mailing date, containing such completed file(s) will be used to determine if the file(s) were submitted on or before the cut-off date. The 40 percent will be calculated by dividing the sum of the budgets for the submitted audits by the sum of the total assigned hours for the subject program year. For the purposes of these rules, the term “completed” is defined as the case file being ready for final Department review – the Notice of Intent to Make Audit Changes has been issued, the taxpayer response received, necessary adjustments have been made to the file, and all required work papers have been prepared.

2. Step B: The Contract Manager will calculate at the cut-off date the overall evaluation rating provided in Rule 12-25.0056, F.A.C., for each firm remaining after Step A is completed. The Contract Manager will eliminate from the list firms that do not have an overall weighted evaluation rating, as provided in Rule 12-25.0056, F.A.C., of at least 1.50.

3. Step C: The Contract Manager will calculate at the cut-off date the overall Efficiency rating provided in Rule 12-25.0056, F.A.C., for each firm remaining after Step A is completed. The Efficiency rating will be taken to four decimal places.

4. Step D: The Contract Manager will use the ratings developed in Steps B and C, and the Fee Proposals to develop a ranked list of qualified applicants. A firm’s points resulting from its overall Evaluation rating will be weighted 33 percent, the points resulting from its overall Efficiency rating will be weighted at 17 percent, and the points resulting from its Fee Proposal will be weighted at 50 percent.

(3) When the Department identifies the need to revise or replace the group of firms under contract, the Department will publish a Request for Information (R.F.I.) in the Florida Administrative Register announcing that it is seeking contract auditors to provide tax audit services. This Request for Information will be published at least thirty days before the Department establishes the ranked list of qualified contract auditors.

(4) The R.F.I. will contain instructions and information which applicants must submit in a complete, timely application to be considered for a contract for the fiscal year.

(5)(a) Applicants must submit their written application in response to the Department’s Request for Information to the address specified in the subject Request for Information.

(b) To be timely, an application in response to the Request for Information must be postmarked by the U.S. Postal Service or hand-delivered within 30 calendar days of the issue date of the Florida Administrative Register in which the Request for Information is published. If the applicant elects to use an overnight mail service to deliver the application, the delivery date is the date the service actually provides the application to the Department, not the date the application is provided to the overnight mail service, and not the date the overnight mail service is paid by the applicant.

(6) The Department’s Request for Information will solicit information which reflects, at a minimum, the qualifications of the team identified by the applicant in its application to perform tax audit services for the Department, as follows:

(a) Experience in Florida tax law, as specified in the published Request for Information;

(b) Knowledge of Florida tax law, as specified in the published Request for Information;

(c) Experience in federal tax law;

(d) Submission of the applicant’s most recent on-site quality review report or peer report, Letter of Comments, if any, and Letter of Response, if any;

(e) Any masters or doctoral degrees in taxation possessed by members of the team identified by the applicant in its application;

(f) Whether the applicant is a certified minority business enterprise pursuant to Section 287.0943, F.S.;

(g) Other specific skills, including computer capabilities;

(h) States in which the applicant is licensed and the applicant’s license number in each state;

(i) The geographic location of the applicant’s main office, as well as any branch offices;

(j) The names of the professional staff and the engagement partner (i.e., the team) who will work on the audits. Except as discussed next, all team members listed in the response to the Request for Information must work on the contract. Once a contract is awarded, the Department will approve firm member substitutions if:

1. The original firm member cannot work on the contract due to either health reasons or because the member is no longer employed by the firm; and,

2. The substituted firm member has approximately the same number of months of professional experience, the same general educational background, and the same general position level within the firm;

(k) The results of any Board of Accountancy disciplinary actions within the last 3 calendar years; and,

(l) Any complaints filed within the last 3 calendar years with the Division of Consumer Services (Florida Department of Agriculture and Consumer Services) or a local better business bureau, or any similar agency in the applicant firm’s state of domicile.

The applicant may be asked by the Department to provide supplemental details for the information submitted pursuant to the above criteria. For example, if the applicant states a qualification of experience in Florida tax law, supplemental information may be requested concerning the nature of this experience and how this experience was obtained.

(7) After reviewing those written responses to the Department’s Request for Information that are selected for ranking, the Applicants Ranking Committee will rank the applicants in order based on requested technical criteria and their fee proposal, for negotiation purposes.

(8) The Contract Audit Section will then enter into contract negotiations with the highest ranked applicants in the order of their ranking. The negotiation process will continue until all the available contracts for the subject period are let.

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28 FS. History–New 5-11-92, Amended 3-20-94, 10-30-96, 7-31-00.

Fla. Admin. Code R. 12-25.0052 Procedures for Establishing Contract Size

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 212.10, 213.28 FS. History–New 3-20-94, Repealed 10-30-96.

Fla. Admin. Code R. 12-25.0054 Applicants Ranking Committee

(1) Composition of the Committee.

(a) The Program Director of the General Tax Administration Program (GTA) will appoint a seven-member committee, known as the “Applicants Ranking Committee”, to perform the ranking function.

(b)1. This Committee will include the Contract Manager, who will serve as chairperson, and six voting members.

2. The chairperson is authorized to recommend candidates for Committee membership to the Program Director of GTA, schedule meetings, prepare agendas and necessary materials, and chair the meetings.

3. The chairperson will not prepare any qualification ranking forms, and will not “vote” on ranking issues.

(c) Committee members will serve a term not to exceed 5 consecutive years.

(d) The Program Director of GTA will use the following criteria in making appointments to the Committee:

1. Two members will be from a program other than General Tax Administration (GTA);

2. At least four members will possess active C.P.A. certificates;

3. At least one member will be a lay person (non-C.P.A.);

4. At least one member will be a minority, as defined by Section 288.703(4), F.S.; and,

5. At least one member will be from a GTA regional service center office.

Any appointed Committee member can meet several of the guidelines listed. For example, an appointee may be a lay person from another program.

(e) Each member, including the chairperson, must complete a conflict of interest disclosure statement. The member must either state the absence of any existing business or family relationship with applicants, or must list any such relationships. If relationships do exist for a particular Committee member, then the Program Director of GTA will excuse the member from participating in ranking the particular firm(s) with which the member has a relationship. The statements will be completed at the beginning of each fiscal year, prior to the start of the ranking process.

(2) Committee Meetings.

(a) The Committee will meet to evaluate the relative qualifications of each applicant included in the ranking process. The meeting will be held within 60 business days after the application deadline. Additional meetings will be held if necessary during the fiscal year.

(b) The Contract Manager will publicly notice the date, time, and location of any meeting held by the Applicants Ranking Committee. This notification will, at a minimum, be published in the Florida Administrative Register at least 14 calendar days prior to any scheduled meeting of the Committee.

(c) Public testimony or discussion will not be accepted at meetings of the Committee. Only information previously submitted by applicants will be considered.

(d) Persons who may wish to appeal any decision made by the Committee at a public meeting should ensure that they create a verbatim record of the proceedings, which record includes the testimony and evidence upon which the appeal will be based.

(3) Committee Procedures.

(a)1. The chairperson must grant each Committee member an opportunity to review the applicants’ qualification packages prior to the scheduled meeting.

2. The Committee members can ask for any clarification of the respective applicants’ qualifications. The chairperson will obtain the requested clarification, and will provide the response to all Committee members.

3. Although the Department may request clarification of submitted information, it is the applicants’ responsibility to submit correct and complete information. The Department reserves the right to rank applicants based strictly on the information originally submitted.

(b)1. At the meeting, the Committee will conduct an open discussion on each applicants’ qualifications prior to completing their individual qualification ranking form.

2. After the open discussion, the members must independently complete their individual qualification ranking forms. The members must sign and date each ranking form.

3. When each member has completed, signed, and dated a qualification ranking form for each applicant, the forms will be given to the chairperson.

4. The chairperson or the chairperson’s designee will review the completed forms to verify that the supporting facts entered in the comments sections are consistent between members, and are accurate. The chairperson or the chairperson’s designee will resolve any discrepancies through discussion with the involved members and review of the facts documented in the subject application.

(c) The chairperson or the chairperson’s designee will enter the scores from each form into a database to determine the total of the six scores of each of the applicants evaluated by the Committee. If a Committee member is excused from ranking a particular applicant due to a potential conflict of interest, then an average of the other five members’ scores will be used as the sixth score. A Ranking Report for each pool will be prepared based on the composite scores of the applicants in the pool. The Ranking Reports will reflect, at a minimum:

1. Composite scores for each applicant in total; and,

2. A ranking of the applicants in numerical order.

(d) In the event of a tie(s) on a ranking report, the following steps will be performed, in numeric order, until the tie(s) is broken:

1. The individual numeric calculations comprising the total score for each applicant will be recalculated to ten decimal places;

2. Then, if the tie(s) is not broken, the applicants will be ranked against each other based on the scores for the criteria specified in subparagraphs (b)1., 6., 7., 9. and 10. of subsection 12-25.0056(12), F.A.C.;

3. Then, if the tie(s) is not broken, the applicants will be ranked against each other based on their scores for the criteria specified in subparagraph (b)9. of subsection 12-25.0056(12), F.A.C.

(4)(a) After approval by the Compliance Support Process Manager, the ranking reports will be used by the Contract Manager to contact the applicants in the order determined by the ranking.

(b) This ranking process only determines the order of negotiation. It does not guarantee that the applicant ranked first will receive a contract in the subject fiscal year.

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28 FS. History–New 3-20-94, Amended 10-30-96, 7-31-00.

Fla. Admin. Code R. 12-25.0056 Applicant Ranking Process

The criteria and definitions established in this rule will be used by the Applicants Ranking Committee to evaluate and rank the qualifications of applicants.

(1) Experience in Florida tax law. This term means working directly with the Florida Statutes (tax law), Department rules, and the interpretative decisions, opinions, and rulings relevant to the subject tax. The type of experience can either be:

(a) Audit – performing Department tax compliance audits; or,

(b) Preparation – assisting a taxpayer in, or preparing tax returns for, clients, or representing clients or others with respect to audit issues during the Department’s tax compliance audit process.

(c) Experience means the combined years of experience of the firm members named in the application who will work on the audits. “Working” means performing on-site tax compliance audit work, supervising audit work, reviewing audit work papers, or serving as the engagement partner. The following methodology will be used to score experience:

(d)

Audit Experience

Score

1 to 4 years

2

5 to 8 years

3

9 or more years

5

Points awarded for experience are based on the sum of the experience of individual team members. For team members who have previously worked on Section 213.28, F.S., contracts, one year of audit experience is awarded for each contract worked on.

(e)

Preparation Experience

Score

3 to 5 years

1

6 to 9 years

2

10 or more years

3

(f) If an applicant has both types of experience, the applicant will be scored on the type resulting in the highest score.

(2) Knowledge of Florida tax law. This is textbook/academic knowledge of the application, concepts and issues concerning the statutes, Department rules, and rulings and decisions in administrative and court cases relevant to the subject tax. It is the combined knowledge (i.e., courses attended) of the firm members named in the application who will work on the audits. The methods by which the applicant may have gained this knowledge are:

(a) Attended and, where applicable, successfully passed a course that is designed specifically to teach audit applications for the Florida revenue law.

(b) Successfully completed a Department course in the Florida revenue laws (each of the Department’s contract audit program and certified audit program courses meet this criterion).

(c) The methodology for determining the Knowledge score is:

Courses Attended and Passed

Score

1-2 courses

1

3-4 courses

2

5-6 courses

3

7 or more courses

4

(3) Experience in Federal tax law. This is experience in working directly with the Federal Statutes, Internal Revenue Service rules and court cases relevant to the subject tax. It is the combined experience of the firm members named in the application who will work on the audits. The type of experience can either be:

(a) Audit – performing tax compliance audits; or

(b) Preparation – assisting a taxpayer in or preparing Federal tax returns for clients or representing clients on audit issues during the I.R.S. tax compliance audit process in the practice of public accounting.

(c) The evaluation of the relative experience levels for a firm for this factor is accomplished using the definitions and the same scoring methodology used under subsection (1) above.

(d) If the applicant has both types of experience, the applicant will be scored on the type resulting in the highest score.

(4) Results of On-site Quality Review or Peer Review.

(a) The written report on an on-site quality review will indicate the scope of the review, including any limitations thereon; description of the general characteristics of a system of quality control; an opinion on whether the system of quality control for the accounting and auditing practice of the reviewed firm met the objectives of quality control standards established by the American Institute of Certified Public Accountants and was being complied with during the years reviewed, and a description of the reason(s) for any modification of the opinion.

(b) A Letter of Comments is required to be issued in connection with an on-site quality review when there are matters that resulted in modification(s) to the standard form of the report or when there are matters that the review team believes resulted in conditions being created in which there was more than a remote possibility that the firm would not conform with professional standards on accounting and auditing engagements. Such a letter should provide reasonably detailed recommendations for remedial, corrective actions by the reviewed firm.

(c) The reviewed firm has the right to prepare a Letter of Response, which then becomes part of the report.

(d) Peer review reports follow the same format as on-site quality review reports.

(e) Off-site Quality Reports. Off-site quality reports will not be considered in the ranking process.

(f) The methodology for scoring this category shall be:

Report Opinion

Score

Adverse

0

Qualified

1

Unqualified

4

(5) Advanced Degrees in Taxation.

(a) These are qualifications above those of an undergraduate accounting degree specifically, masters or doctoral degrees in taxation. Advanced business, accounting, or law degrees with a stated major in taxation will be scored as a master’s degree in taxation. Possession of a law degree without a stated concentration in taxation does not qualify for receiving advanced degree points. The score will be based on the combined number of advanced degrees, if any, of the firm members named in the application who will work on the audits.

(b) The Score for these qualifications is as follows: One point for each masters degree in taxation and two points for each doctoral degree in taxation, not to exceed five points total.

(6) Certified Minority Business Enterprises.

(a) This term means C.P.A. firms, including sole proprietorships, certified as a “minority business enterprise” under Section 288.703, F.S. Each applicant’s assertion of being a certified minority business enterprise will be verified by the Contract Manager against the certified list provided by the Purchasing Section prior to the ranking of applicants process.

(b) The score awarded to a C.P.A. firm which is a certified minority business enterprise is 5 points. A non-certified firm is awarded zero points.

(7) Performance Evaluation.

(a) The Contract Manager or his/her designee will complete a Performance Evaluation Form for each contract audit completed, excluding surveys, when the General Tax Administration program has completed the review of the subject audit. The contract C.P.A. firm will be evaluated in four areas:

1. Communication:

a. Kept the Department informed of all relevant developments on a timely basis.

b. Conducted effective entrance and exit conferences with the taxpayer.

c. Understood the nature and scope of the audit assignment and the Department’s procedures.

d. Communicated ideas and information effectively, both orally and in writing.

e. Provided the taxpayer with all the information and documentation necessary to allow the taxpayer to determine whether or not to agree to the proposed audit adjustments.

f. Responded in a timely and effective manner to all taxpayer questions regarding any Florida tax laws (taxpayer education).

2. Knowledge of Florida Tax Law:

a. Identified all potential audit issues.

b. Determined what audit adjustments, if any, were necessary for compliance with Florida tax law.

c. Performed the audit without an unusual amount of Department technical assistance. The amount considered usual will be a function of both the difficulty level of the audit and the firm’s relative experience level in performing contract audits for the tax.

d. Knew current technical developments and applied them to the audit.

3. Preparation of Audit File:

a. Prepared sufficient, competent supporting documentation for all audit adjustments made and all potential adjustments not made.

b. Complied with Department’s procedures for audit files, including content and order.

c. Properly completed all administrative paperwork: time summary, expense report, etc.

4. Professional Conduct:

a. Represented the Department in accordance with professional standards of the highest quality.

b. Provided prompt and complete answers to any taxpayer questions on Florida tax law.

c. Used good judgment in planning, conducting and reviewing the audit.

d. Complied with the contractual terms established between the firm and the Department.

e. Responded promptly and effectively to all instructions provided by the Department.

(b) Reviewer’s Memorandums received, if any, will be considered in developing the subject ratings.

(c) The Contract Manager will perform a special performance evaluation at any point, based on the contract firm’s actions as discussed in subparagraphs 1. through 3. The special performance evaluation will be weighted at 10 percent of the total hours used as the denominator in the calculation discussed in this subsection and will be included in the ranking process.

(d)1. The Contract Manager or his/her designee will rate the subject firm on each of the line items for the four criteria discussed in this subsection (Communication, Knowledge of Florida Tax Law, Preparation of Audit File, and Professional Conduct) and then determine an overall score for each evaluation completed.

2. Each individual line item in the performance evaluation will be rated as “Below Performance Standards,” “Achieves Performance Standards,” or “Exceeds Performance Standards.” The ratings will carry the following numerical ratings:

a. “Below Performance Standards” equals 0;

b. “Achieves Performance Standards” equals 3.0;

c. “Exceeds Performance Standards” equals 5.0.

The individual line item scores for each performance evaluation will be totaled and divided by the number of line items rated. The resulting average will be the overall rating for that performance evaluation.

3. The Contract Manager or his/her designee will provide supporting comments for any area rated anything other than “Achieves Performance Standards.” All evaluations require Contract Manager approval prior to becoming final.

(e) The methodology for scoring this category is determined as follows:

Performance Evaluation Overall Weighted Rating

=

Ranking Equation Points

(f)1. The performance evaluation points awarded a firm will be determined using the weighted total of the overall ratings for performance evaluations.

2. For a performance evaluation to be considered in a ranking process, the associated audit must have been:

a. Assigned and completed by the cut-off date provided in Rule 12-25.005, F.A.C. (if applicable);

b. And the Performance Evaluation must be dated no earlier than the two immediately preceding program funding years; and

c. Not included in any previous ranking process.

3. The weight assigned to each included performance evaluation will be the ratio which the incurred audit hours, up to the approved budget, in the subject audit bear to the total of the hours for all audits for all included performance evaluations.

4. An example of the calculation for any C.P.A. firm is as follows:

Step 1: For example – A firm has two Performance Evaluations eligible for the subject ranking process. The firm received two “Below Performance Standards”, 12 “Achieves Performance Standards” and four “Exceeds Performance Standards” on the Performance Evaluation for audit #1, which had a 900 hour budget. The overall rating for that Performance Evaluation would be 3.1 (56 total points divided by 18 line items). The firm received six “Achieves Performance Standards” and 12 “Exceeds Performance Standards” on the Performance Evaluation for audit #2, which had a 100 hour budget. The overall rating for the second Performance Evaluation would be 4.3 (78 total points divided by 18 line items.)

OVERALL SCORE

AUDIT HOURS

FACTOR

x

WEIGHTED OVERALL SCORE

Audit #1-3.1

900

90%

2.8

(900/1000)

Audit #2-4.3

100

10%

.4

(100/1000)

---

---

---

1000

100%

3.2

Step 2: 3.2 points for Performance Evaluations would be used in the subject weighted ranking equation.

Any points resulting from performance evaluations accrue only to the legal entity with which the Department entered into the contract.

(8) Other.

(a) Items (1)-(5) in the applicant ranking process address an applicant’s technical qualifications. Including the category “other” in the weighted equation allows the applicant to receive credit for additional qualifications that would make a significant contribution to the applicant’s performance other than the technical qualifications in items (1)-(5). One example would be the applicant’s possession of computer hardware, software, and associated proficiency on such hardware and software, which is above the normal level for C.P.A. firms.

(b) The score for this item can range from 1 to 5 points, as judged individually by the members of the Applicants Ranking Committee.

(9) Fee Proposal. Each applicant is required to submit a single, blended per hour rate as part of their application. The submitted fee proposal will be a line item in the weighted equation, and will be given a weight of 25 percent.

(a) The score for each fee proposal will be determined through an evaluative calculation, as illustrated below:

(Low Fee Proposal/Subject Fee Proposal) x 5.0 = Score

(b)1. The term “Low Fee Proposal” means the lowest per hour rate(s) submitted out of the applications selected to be ranked in the respective contract size pool.

2. The term “Subject Fee Proposal” means the specific fee proposal being evaluated during the applicant ranking process. All fee proposals for applications selected for ranking will be evaluated.

3. The term “Score” means the product of the described evaluative calculation, carried to four decimal places. The score will then be assigned a weight of 25 percent, and included in the weighted equation.

(10) Efficiency Calculation.

(a)1. The efficiency calculation will measure how C.P.A. contract firms used the resource of time in completing an audit for the contract auditing program. This calculation will be performed after the subject invoice is approved by the Contract Manager. The calculation will determine the percentage difference, if any, between total billed professional staff hours and the adjusted total audit hours budget.

2. If the adjusted budget is greater than the billed hours, then the calculated difference will be divided by the adjusted budget, and the product of that division will be the achieved efficiency percentage.

(b) The Department reserves the right to adjust the total audit hours budget for the purpose of the efficiency calculation. Such an adjustment is warranted, for example, if the original audit hours budget was based on the premise that five tax years would be audited but it was actually necessary to audit only three years. In this event, the original audit hours budget would be adjusted down for the purpose of the efficiency calculation.

(c)1. This calculation is meant to promote an efficient, cost effective completion of contract audits. In order for a C.P.A. contract firm to be eligible for the efficiency calculation, the tax compliance audit must first be completed to the Department’s express satisfaction.

2. The total efficiency calculation for a subject firm will be used to score the firm for this category. The total efficiency calculation will include all audits completed at the postmark date of the subject application, and no earlier than the two immediately preceding fiscal years.

(d)

Example: Adjusted budget

=

1000 hours

Billed hours

=

-900 hours

Difference

=

100 hours

100 hours divided by 1000 hours equals a 10 percent achieved efficiency.

(e) The methodology for scoring this category is:

Efficiency Calculation

=

Score

5% to 10% Achieved Efficiency

=

1

11% to 15% Achieved Efficiency

=

2

16% to 20% Achieved Efficiency

=

3

21% to 25% Achieved Efficiency

=

4

26% or greater Achieved Efficiency

=

5

Any points resulting from Efficiency Calculations accrue only to the legal entity with which the Department entered into the contract.

(11) Exclusion from Ranking Process. An applicant will be excluded from the ranking process for the subject fiscal year if:

(a) The applicant has been found guilty in a Board of Accountancy disciplinary action within the last three years.

(b) There are two or more disciplinary actions taken by the Division of Consumer Services, Department of Agriculture and Consumer Services, or similar agency in the applicant firm’s state of domicile.

(c) The applicant misrepresents any material fact affecting the applicant’s weighted score.

(d) The applicant has any currently unpaid Florida state tax liability or has filed to comply with Florida revenue laws.

(12) Criteria and Weighted Equation.

(a) The criteria and associated weights provided in this section, in conjunction with the provisions of subsections (1) through (9) of this rule section, will be employed in the applicant ranking process whenever a Request for Information has been published. The information used in applying the described criteria will primarily be provided by the applicants’ responses to the Request for Information. Other sources are described in this section.

(b) Weighting is accomplished by multiplying the scores for each criterion by an assigned percentage, with the sum of the percentages equaling 100 percent, as follows:

MAXIMUM

CRITERIA

POINTS

x

WEIGHT

=

SCORE

Experience in Florida tax law

5

15%

.75

Knowledge of Florida tax law

4

5%

.20

Experience in Federal tax law

5

5%

.25

Results of On-Site Quality Review or Peer Review

4

5%

.20

Advanced Degrees in Taxation

4

5%

.20

Certified Minority Business Enterprise

5

10%

.50

Performance Evaluation

5

15%

.75

Other

5

5%

.25

Fee Proposal

5

25%

1.25

Efficiency Calculation

5

10%

.50

100%

4.85

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28 FS. History–New 3-20-94, Amended 10-30-96, 7-31-00.

Fla. Admin. Code R. 12-25.0058 Dispute Resolution

(1) Once the negotiation process is completed for any given set of contracts, any applicants not receiving a contract will be notified via letter that the negotiation process for that set of contracts is completed. Applicants not receiving a contract due to the relative ranking (i.e., there were more qualified applicants than available tax compliance contract audits) may file, within 30 calendar days of the date the letter was issued as reflected by the postmark date on the applicant’s envelope, a written request for reconsideration with the Contract Manager. The request will include, at a minimum, the grounds for the request.

(a) Acceptable grounds are restricted to:

1. The Committee’s failure to comply with Section 213.28, F.S., or applicable rules in force at the date of the subject ranking process; or

2. The Committee’s failure to consider documented relevant facts that were provided in the applicant’s response to the Request for Information or in response to the questions described in Rule 12-25.0056, F.A.C. For example, if the applicant clearly indicated 14 years of experience performing tax audits for the I.R.S. and the Committee inadvertently only gave the applicant credit for 4 years experience. The burden of proof lies with the applicant.

(b) Disagreements with professional judgments exercised by the Committee in evaluating any subjective criteria are not grounds for re-evaluation. Also, the Department reserves the sole right to determine what statistical sampling techniques, if any, will be used, and how the selected techniques will be applied. These determinations will not constitute acceptable grounds for initiating the dispute resolution process provided in this rule.

(c) If the Contract Manager determines that the applicant has provided sufficient evidence to support the request, the committee members will be provided with the relevant new information. The committee members will use the new information in completing a revised qualification ranking form for the applicant. The applicant’s new ranking will be used in the order of negotiation for any other tax compliance audits or special projects contracts in the subject fiscal year.

(2)(a) As provided in subsection 12-25.0056(7), F.A.C., the Contract Manager or his/her designee will be performing evaluations on each contract C.P.A. firm after each completed tax compliance audit.

(b) A contract C.P.A. firm may file, within 30 calendar days of the date the performance evaluation was signed by the Contract Manager, a written request for reconsideration of the performance evaluation with the Process Manager, Compliance Support process.

(c) This written request must include, at a minimum, what steps have been taken to resolve the dispute with the Contract Manager, and the grounds for the request. Acceptable grounds are restricted to:

1. The Contract Manager’s failure to comply with Section 213.28, F.S., or applicable rules in force at the date the performance audit was conducted;

2. The Contract Manager’s failure to consider documented relevant facts which were provided by the contract C.P.A. firm. The burden of proof lies with the contract C.P.A. firm.

(d) Disagreements with professional judgments exercised by the Contract Manager in evaluating a firm’s performance are not grounds for reconsideration.

(e) The Process Manager, Compliance Support Process, will provide a written response within 45 calendar days of receipt of the request for reconsideration.

(f) The Process Manager, Compliance Support process, is authorized to revise the disputed evaluation if sufficient documented facts are provided to support the request for reconsideration. The Process Manager will sign any revised evaluation.

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28 FS. History–New 3-20-94, Amended 10-30-96, 7-31-00.

Fla. Admin. Code R. 12-25.006 Selection Procedures for Private Broker Services

(1) The Department is authorized to obtain the services of a private broker when it is unable to secure contract auditors to provide out-of-state audit services.

(2) To obtain the services of one or more private brokers, the Department shall issue a Request for Proposal as defined in Section 287.012(23), F.S.

(3) After receiving and reviewing the Request for Proposal responses submitted by private brokers, the Department shall use the procedures of the Consultants’ Competitive Negotiation Act provided in Section 287.055, F.S., to select a private broker. Contract auditing services are exempt from this competitive bid process, and will be awarded pursuant to the procedures provided elsewhere in these rules.

(4) To qualify as a private broker, an applicant must meet the following conditions:

(a) The applicant shall not have provided tax audit services to the Department pursuant to the provisions of this rule;

(b) The applicant shall not have any currently unpaid Florida state tax liability; and,

(c) The applicant shall not utilize the provisions of Section 213.27, F.S. (Contracts with Debt Collection Agencies) or Section 213.30, F.S. (Compensation for Information Relating to a Violation of the Tax Laws) while under contract to the Department or with regard to any information obtained during the performance of a contractual obligation with the Department.

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28, 213.758 FS. History–New 5-11-92, Amended 3-20-94, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.007 Contract Auditor Training

(1) The Department will provide additional opportunities to each contracted certified public accounting firm to gain sufficient knowledge and competence to audit each tax the firm is contracted to audit.

(2) The Department shall require each professional staff member and the engagement partner to successfully pass an examination in the tax the firm is contracted to audit. No professional staff member or engagement partner can work on a contracted audit until he or she passes the examination in the tax the firm is contracted to audit.

(3) All costs of training materials, registration fees, and associated travel expenses and per diem will be borne by the selected contract auditor.

(4) The Department will provide a contact person through whom a current contract auditor may obtain copies of public information and technical assistance for tax issues related to audits the contract auditor is assigned.

(5) The Department will require that each professional staff person and the engagement partner attend a one-day Department technical update session for each new contract year.

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28, 213.758 FS. History–New 5-11-92, Amended 3-20-94, 10-30-96, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.008 Contract Auditor Authority

(1) The contract auditor is authorized to audit and examine the accounts, books, or records of any taxpayer designated and assigned to the contract auditor for audit by the Department under the Contract Audits Program, for the purpose of ascertaining the correctness of any return which has been filed or payment which has been made, or for the purpose of making a return where none has been made.

(2) The contract auditor may inspect such books and records necessary to ascertain the designated taxpayer’s compliance with the revenue laws of this state.

(3) Limitation of authority:

(a) This authorization to inspect taxpayer accounts, books, and records will be issued in writing by the Department to the contract auditor and shall begin on the date the authorization is issued by the Department.

(b) This authorization to inspect the designated taxpayer accounts, books, and records shall cease to be effective on the earlier of one of the following dates:

1. It is rescinded in writing by the Department;

2. The audit determination becomes final; or,

3. The subject contract expires.

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28, 213.758 FS. History–New 5-11-92, Amended 3-20-94, 10-30-96, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.009 Performance of Audit Services

Except as otherwise provided in the contract executed by the Department, contract auditors shall:

(1) Conduct a tax compliance audit of taxpayers designated by the Department, in accordance with the procedures, terms, and circumstances stipulated in the contract (including any attachments thereto) executed with the Department.

(2) Use a tax compliance audit work program prepared by the contract auditor and approved by the Department for the conduct of assigned audits. After the subject audit starts, the contract auditor may make recommendations to the Department for amending the work program.

(3) Conduct an entrance conference and an exit conference.

(4)(a) Provide the Department with the original of the complete file of tax audit working papers developed during the conduct of the tax audit. The tax audit work papers must contain the revisions necessary to comply with the audit review notes prepared by the Department’s review staff.

(b) All workpapers, audit planning documents, files and other materials associated with any contract tax compliance audit maintained by a contract auditor shall be located in a restricted area of the contract auditor’s office. Access to all workpapers, audit planning documents, files and other materials shall be strictly limited to those employees whose duties and responsibilities require them to have access.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.053, 213.28, 213.758 FS. History–New 5-11-92, Amended 3-20-94, 7-1-99, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.010 Compensation

(1)(a) Contract auditors shall be compensated for completed tax compliance audits based on professional staff hours incurred to complete the audit, multiplied by an hourly rate. As established by the revisions to Section 213.28, F.S., the hourly rate for a subject certified public accounting firm will be based on the fee proposal submitted by the firm. Professional fees will be based on a single blended hourly rate multiplied by the actual professional staff hours incurred, up to each contract limit. The single blended hourly rate for a subject C.P.A. firm is that firm’s submitted fee proposal.

(b) Contract auditors will be reimbursed for travel expenses at the rate provided under Chapter 112, F.S., and as approved by the Contract Manager.

(c) The Department will award the contracted C.P.A. firm, for each tax compliance audit satisfactorily completed, an incentive payment if the firm is eligible for such payment:

1. The incentive payment is not guaranteed. The decision to award an incentive payment will be made solely by the Department.

2. The Department will perform a calculation to determine if an incentive payment will be awarded. The calculation will be performed after the subject invoice is approved by the Contract Manager.

3. The calculation will consist of determining the difference, if any, between total billed professional staff hours and the adjusted total audit hours budget. The Department reserves the right to adjust, as specified in Rule 12-25.0056, F.A.C., the total audit hours budget for the purpose of the incentive calculation. If the total billed professional staff hours for the subject audit are equal to or greater than the adjusted total audit hours budget, then the provider is not eligible for an incentive payment.

4. The amount of an awarded incentive payment will be calculated by multiplying the single blended hourly rate by 50 percent of the calculated excess of the adjusted total audit hours budget over total billed professional staff hours.

(2) Private brokers shall be eligible for compensation based on the negotiated rate established through the competitive bidding process. Private brokers shall be entitled to bill the Department for payment for facilitating the securing of contract auditors at such time as the services of the contract auditor are contractually acquired by the Department.

(3) Contracts for auditing services which exceed $50,000 in professional fees must be approved by the Governor and Cabinet.

(4) Nothing in this rule chapter shall be construed to authorize any compensation of contract auditors or private brokers which is contingent on the amount assessed, the liability revealed, or the refund denied.

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28, 213.758 FS. History–New 5-11-92, Amended 3-20-94, 10-30-96, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.011 Confidentiality

(1)(a) Contract auditors are bound by the same confidentiality requirements and subject to the same penalties for disclosure as provided in Sections 213.053 and 213.28, F.S., and Chapter 12-22, F.A.C.

(b) Each contract negotiated will specifically obligate the selected contract auditor to comply with the applicable state statutes and Department rules on confidentiality requirements. Contract auditors will not be provided any tax information on any taxpayer until the auditor signs a contract with the Department.

(c) Willful violations of the confidentiality provisions by contract auditors are punishable as provided in Section 213.28(4), F.S.

(d) Contract auditors shall in no way utilize or benefit from information of any type obtained during the course of a tax compliance audit.

(2) Private brokers under contract with the Department for the purpose of securing contract auditor services, as provided in Section 213.28(2), F.S., are subject to the provisions of Section 213.053, F.S. Taxpayer information shall not be released to private brokers.

(3) Contract auditors who, during the performance of audit services for the Department, discover tax information which may be of interest to other taxing jurisdictions shall report such tax information to the Department, but shall not report such information to the affected jurisdiction.

(4) Nothing contained in these rules authorizes the disclosure of any information prohibited by federal law from being disclosed.

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28, 213.758 FS. History–New 5-11-92, Amended 3-20-94, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.0112 Scope of Professional Services Rendered

The tax compliance audit services provided under contract will strictly consist of performing Department of Revenue tax compliance audit functions or Department-approved special audit projects, including proposing audit adjustments. Contract auditors will not perform an attestation function, and will not render an opinion of any nature. In performing these services, contract auditors will be acting solely on behalf of the Department.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.28, 213.758 FS. History–New 3-20-94, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.012 General Administrative Provisions

Requests for information regarding the Department’s contract auditing program should be directed to the Contract Manager, Post Office Box 5139, Tallahassee, Florida 32314-5139.

PART II CERTIFIED AUDIT PROGRAM

History

• Rulemaking Authority 213.06(1), 213.28(4) FS. Law Implemented 213.28, 213.758 FS. History–New 5-11-92, Amended 3-20-94, 10-30-96, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.0305 Scope of Rules

The rules in Part II of this chapter implement the certified audits project authorized by Section 213.285, F.S. The rules set forth in this part are applicable to all taxes imposed by:

(1) Sections 125.0104 and 125.0108, F.S., unless the tax is self-administered by a county, and

(2) Chapter 212, F.S.

No later than five years after the effective date of this rule, the Department will evaluate the rules in Part II of this chapter during the agency’s annual rulemaking and regulatory plan review conducted pursuant to Section 120.74, F.S, to determine whether the rules remain necessary for the proper implementation of the statutes being implemented. Rules determined to be unnecessary, or that can be implemented in a more efficient or cost-effective manner, will be proposed for repeal or amendment in accordance with the procedures set forth Section 120.54, F.S.

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Amended 1-17-21.

Fla. Admin. Code R. 12-25.031 Definitions

Terms defined in Section 213.285(1), F.S., apply to this Part in addition to the following definitions:

(1) “Audit Plan” means a detailed, comprehensive list of procedures to be used by a qualified practitioner to conduct a review of a participating taxpayer’s books and records to determine tax compliance. The Audit Plan will be customized for the participating taxpayer.

(2) “Board” means the State of Florida Board of Accountancy.

(3) “Practitioner(s)” means the individual(s) on the certified audit engagement team who are not qualified practitioners.

(4) “Qualified audit firm” means a certified public accounting firm licensed by the Board which employs a qualified practitioner.

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Amended 1-17-21.

Fla. Admin. Code R. 12-25.033 Eligibility and Qualifications

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Repealed 1-17-21.

Fla. Admin. Code R. 12-25.035 Responsibility for Program Training, Certification Procedures, and Program Availability

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Repealed 1-17-21.

Fla. Admin. Code R. 12-25.037 Request to Conduct a Certified Audit

(1) When a taxpayer wants to participate in the Certified Audit Program, the taxpayer must engage a qualified practitioner to complete a Request to Conduct a Certified Audit (Form DR-342000, effective 01/21, hereby incorporated by reference, http://www.flrules.org/Gateway/reference.asp?No=Ref-12468), and submit the request to the Department, along with any required supporting documents.

Copies of this form are available, without cost, by one of the following methods:

(a) Downloading the form from the Department’s website at floridarevenue.com/forms.

(b) Writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112.

(c) Calling the Department at (850)488-6800, Monday through Friday (excluding holidays). Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(2) The Department will issue written notification to the qualified practitioner within 10 days after receiving a Request to Conduct a Certified Audit. The notification will state the request has been approved, has been denied, or is incomplete.

(3) If the Department determines a Request to Conduct a Certified Audit is incomplete, the Department will issue a letter explaining how the materials must be revised, expanded, or clarified.

(a) The qualified practitioner will be given 30 calendar days from the date the letter is issued by the Department to submit the revised documents.

(b) If the qualified practitioner does not submit the revised documents within 30 calendar days, the Request to Conduct a Certified Audit will be denied. Both the qualified practitioner and the taxpayer will be notified in writing of the denial.

(c) A qualified practitioner may submit a written request to the Department for a 15-day extension of the 30-day time period. The Department will not accept more than two consecutive written requests for a 15-day extension for the same Request to Conduct a Certified Audit.

(4) The following constitutes grounds for denial of a Request to Conduct a Certified Audit.

(a) The taxpayer has been issued a written notice of intent to audit by the Department, which is dated before the postmark of the Request to Conduct a Certified Audit.

(b) The taxpayer is currently under investigation by the Department or the Department learns the taxpayer is currently under investigation for financial impropriety by a local, state, or federal government entity. The request will also be denied if an investigation by the Department or a local, state, or federal government entity resulted in criminal conviction of the taxpayer for financial impropriety.

(c) The taxpayer has filed for bankruptcy.

(d) There are outstanding liens, warrants, or amounts due which were issued by the Department against the taxpayer. If the Department determines that unsatisfied liens, warrants, or amounts due exist, the Request to Conduct a Certified Audit will be denied. The taxpayer can remedy the reason for denial by satisfying the lien, warrant, or amounts due.

(5) If a Request to Conduct a Certified Audit is denied, the Department’s written notification to the qualified practitioner will explain the specific reasons for such denial, unless

(a) An ongoing investigation would be jeopardized; or

(b) The confidentiality provisions of Section 213.053, F.S., prohibit such explanation.

(6)(a) If a qualified practioner remedies the reasons for denial, the practitioner may request reconsideration of the denial by submiting a written request presenting additional materials facts for review by the Department to the administrator of the Certified Audit Program. The written request must be submitted within 21 calendar days after the date the Department issued the denial of the Request to Conduct a Certified Audit. The request may be mailed or faxed to the Department as follows:

United States Postal Service:

OR

Overnight Mail:

Florida Department of Revenue

Florida Department of Revenue

Certified Audit Program MS 1-4600

Compliance Standards Certified Audit

P.O. Box 5139

2450 Shumard Oak Blvd

Tallahassee, Florida 32314-5139

Building 1-4653

Fax number: (850)921-6174

Tallahassee, Florida 32311

(b) Within 10 days after receiving the request, the Department will issue a final notice of approval or denial to both the qualified practioner and the taxpayer.

(c) If the qualified practioner has received a final notice of denial, the qualified practioner may submit a new Request to Conduct a Certified Audit.

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Amended 1-17-21.

Fla. Admin. Code R. 12-25.038 Voluntary Disclosure of Liabilities for Other Taxes

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Repealed 1-17-21.

Fla. Admin. Code R. 12-25.039 Protest Procedure; Denial of a Request to Participate in the Certified Audit Program

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Repealed 1-17-21.

Fla. Admin. Code R. 12-25.041 Suspension of a Certified Audit in Progress

(1) Approval to participate in the Certified Audit Program will be suspended or revoked by the Department based on the following criteria:

(a) Suspension.

1. The Board suspends the firm license of the qualified audit firm.

2. The Board suspends the license of the qualified practitioner, unless the qualified audit firm employs another qualified practitioner who will take responsibility for the certified audit.

3. The Department initiates an investigation or is notified by another local, state, or federal agency of an investigation for financial impropriety by the taxpayer subsequent to approval of participation but prior to Department approval of the subject certified audit report.

(b) Revocation.

1. The taxpayer files for bankruptcy subsequent to approval of participation but prior to Department approval of the subject certified audit report.

2. The investigation discussed in subparagraph (a)3. of this subsection results in a criminal conviction of the taxpayer for financial impropriety.

3. The Board revokes the firm license of the qualified audit firm.

4. The Board revokes the license of the qualified practitioner, unless the qualified audit firm employs another qualified practitioner who will take responsibility for the certified audit.

(2) A suspension implemented based on the criteria identified in paragraph (1)(a) will last for an initial period of no more than 60 calendar days. At the end of the suspension period the Department must do one of the following:

(a) Lift the suspension and authorize the qualified practitioner to continue to perform any and all certified audits.

(b) Extend the suspension an additional 30 calendar days.

(c)1. Provide written notification to the taxpayer(s) and the qualified audit firm that the qualified audit firm has had its firm license revoked by the Board and the Department is prohibiting the qualified audit firm from performing certified audits. In that circumstance, the taxpayer(s) has 60 calendar days to retain another qualified audit firm. Failure to retain a qualified audit firm within 60 calendar days will result in the application of the provisions of Rule 12-25.045, F.A.C.

2. Provide written notification to the taxpayer(s) and the qualified audit firm that the qualified practitioner has had their license revoked by the Board, and the Department is prohibiting the qualified practitioner from performing certified audits. In that circumstance, the taxpayer(s) has 60 calendar days to retain another qualified audit firm or to provide evidence the current qualified audit firm employs another qualified practitioner who will take responsibility for the certified audit. Failure to either retain a different qualified audit firm or to provide evidence of employment of a qualified practitioner by the current qualified audit firm within 60 calendar days will result in application of the provisions of Rule 12-25.045, F.A.C.

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Amended 1-17-21.

Fla. Admin. Code R. 12-25.042 Withdrawal from the Certified Audit Program

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Repealed 1-17-21.

Fla. Admin. Code R. 12-25.045 A Certified Audit is Initiated by the Taxpayer but Not Completed

(1) If, for whatever reason, the taxpayer’s designated qualified audit firm fails to submit a completed certified audit report after approval of the Audit Plan, a Department auditor will complete the audit.

(2)(a) If the taxpayer withdraws from the Certified Audit Program subsequent to Department approval of participation, but prior to Department approval of the Audit Plan, the taxpayer will again be eligible for selection through the normal case selection process and will be subject to the standard audit selection criteria and procedures.

(b) If the taxpayer withdraws from the Certified Audit Program subsequent to the Department approval of the Audit Plan, the Department will conduct an audit of the taxpayer for the same audit period and taxes addressed by the Audit Plan.

(3) If the Department completes the audit, the taxpayer will not benefit from the automatic abatement of penalty and interest granted by the Certified Audit Program.

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Amended 1-17-21.

Fla. Admin. Code R. 12-25.047 Development of the Audit Plan

(1) Within 30 calendar days after receipt of the Department’s written notification approving the Request to Conduct a Certified Audit, the qualified practitioner must submit a proposed Audit Plan and procedures for conducting the certified audit to the Department for its review and approval.

(2) The proposed Audit Plan must include the qualified practitioner’s pre-audit analysis of the participating taxpayer’s business operations using a Certified Audit Program Pre-Audit Analysis (Form DR-344000, hereby incorporated by reference, effective 01/21, http://www.flrules.org/Gateway/reference.asp?No=Ref-12469). This pre-audit analysis is the starting point for development of a customized Audit Plan to perform the tax compliance review of the participating taxpayer. The Certified Audit Program Pre-Audit Analysis form is available, without cost, by one of the following methods.

(a) Downloading the form from the Department’s website at floridarevenue.com/forms.

(b) Writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112.

(c) Calling the Department at (850)488-6800, Monday through Friday (excluding holidays). Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(3) The audit period for the Audit Plan will be a minimum of two consecutive years, unless the requesting taxpayer has been subject to Florida sales and use tax for less than two years. The audit period must begin in

(a) The month immediately after the ending month of any previous audit,

(b) The month the requesting taxpayer is subject to Florida sales and use tax if subject to the tax less than two years, or

(c) The earliest month within the statute of limitations as provided in Section 95.091, F.S.

(4) To request an extension of time to submit the proposed Audit Plan and procedures, the qualified practitioner must submit a written request to the Department containing the facts establishing reasonable cause for an extension. When the qualified practitioner has established reasonable cause for the extension, the Department will notify the qualified practitioner in writing and grant the qualified practitioner 30 additional calendar days. Reasonable cause is based on all the facts and circumstances and the verifiable showing of extraordinary circumstances as follows:

(a) Personal, family, or business crisis or emergency at a critical time or for an extended period of time that would cause a reasonable person’s attention to be diverted from compiling the proposed Audit Plan and procedures; or

(b) Any other cause beyond the control of the qualified practitioner that would prevent a reasonably prudent practitioner from timely submitting the proposed Audit Plan and procedures to the Department.

(5) The Department will approve the proposed Audit Plan and procedures if it determines that the plan and procedures are adequate to perform the tax compliance review. Once the Department approves the Audit Plan, it will become the agreed upon procedures for conducting the certified audit.

(6) Before making any additions, deletions, or revisions to the approved Audit Plan, the qualified practitioner must submit a written request to the Department and receive written approval to amend the Audit Plan.

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Amended 1-17-21, Technical Change 6-9-26.

Fla. Admin. Code R. 12-25.048 Submission of the Certified Audit Report

(1) Within 90 days after approval of the Audit Plan, the qualified practitioner must submit the Certified Audit Report to the Department for review and approval.

(2) The Certified Audit Report must meet all the requirements established by the Audit Plan.

(3) The Department is authorized to share any of the information discussed in the Certified Audit Report with any county which, pursuant to law, self-administers the taxes imposed by Section 125.0104(3), (10), 125.0108(1), or 212.0305, F.S.

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Amended 1-17-21.

Fla. Admin. Code R. 12-25.049 Review of Certified Audit Reports

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Repealed 1-17-21.

Fla. Admin. Code R. 12-25.050 Protests

A taxpayer participating in the Certified Audit Program has all the protest rights available to any taxpayer who is audited by the Department, as provided in Rule 12-6.003, F.A.C. If the taxpayer decides to file a protest, the taxpayer may elect to retain the qualified audit firm who performed the certified audit to represent them in the informal protest procedures governed by Section 213.21, F.S. In that circumstance, the qualified practitioner continues in the role as the auditor and remains responsible for providing the Department any additional information or performing any additional audit work requested by the Department to address the protested tax issues.

History

• Rulemaking Authority 213.06(1), 213.285(7) FS. Law Implemented 213.285 FS. History–New 8-23-99, Amended 1-17-21.

Chapter 12-26 REFUNDS

Fla. Admin. Code R. 12-26.001 Scope of Rules

The rules set forth in this chapter shall be used by the Department of Revenue in the exercise of authority to accept and approve or deny applications for refund of moneys paid into the State Treasury as provided by Section 215.26, F.S., for taxes enumerated in Section 72.011, F.S., or any refunds specifically authorized by the provisions of the tax statutes enumerated in Section 72.011, F.S., and shall not apply to refunds of ad valorem taxes. These rules also govern the payment of interest required pursuant to Section 213.255, F.S., for which a completed application for refund has been filed but the requested amount has not been refunded or credited as provided by statute.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 95.091(3), 213.235, 213.255, 213.34, 213.345, 215.26 FS. History–New 11-14-91, Amended 4-2-00.

Fla. Admin. Code R. 12-26.002 Application of Rules

(1) Section 215.26(1), F.S., authorizes the Chief Financial Officer, under certain conditions, to refund moneys paid into the State Treasury which constitute:

(a) An overpayment of any tax, license, or account due;

(b) A payment where no tax, license, or account is due; and,

(c) Any payment made into the State Treasury in error.

(2) Under the provisions of Section 215.26(2), F.S., and Rule 69I-44.020, F.A.C., the Comptroller has delegated to the Department of Revenue the authority to accept an application for refund of any tax, fee, surcharge, permit, license, or account due collected by the Department under the revenue laws of this state. Upon receipt of an application for refund, the Department shall make a determination of the refund amount due. If an application for refund is approved, in whole or in part, the Department will furnish the Comptroller with a properly executed voucher authorizing payment. If an application for refund is denied, in whole or in part, the Department will notify the applicant of the basis for the action and state the reasons for denial in clear language.

(3)(a) When a taxpayer has pursued administrative review under the provisions of Rule 12-6.003, F.A.C. (Protest of Notices of Proposed Assessments Issued by the Department Which Result From an Audit), or Rule 12-6.0033, F.A.C. (Protest of Assessments Issued by the Department Regarding Tax Returns, Other Required Filings, and Billings), and has failed to comply with the time limitations and conditions provided in Sections 72.011, 120.569, 120.57 and 120.80(14), F.S., the taxpayer shall not have the right to a refund or to pursue an administrative review under these rules.

(b) However, the Department will accept, pursuant to Section 215.26(5), F.S., and Rule 69I-44.020, F.A.C., claims for refund when the taxpayer demonstrates that his failure to pursue remedies under Chapter 72, F.S., was not due to neglect or for the purpose of delaying payment of lawfully imposed taxes and can demonstrate reasonable cause for such failure. For the purposes of this rule, reasonable cause means that the facts and circumstances of the specific case reflect that the taxpayer exercised ordinary care and prudence, despite the lack of compliance with the time limitations prescribed in Section 72.011, F.S.

(c) To receive interest pursuant to Section 213.255, F.S., on payments made under protest, the taxpayer must file a completed refund application.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 95.091(3), 213.235, 213.255, 213.34, 213.345, 215.26 FS. History–New 11-14-91, Amended 4-18-93, 4-2-00.

Fla. Admin. Code R. 12-26.003 Application for Refund

(1) Except as otherwise provided by Sections 213.21 and 213.345, F.S., for the tolling of the refund period, the application for refund required by Section 215.26, F.S., must be filed with the Department within three years after the date the tax was paid, or the right to the refund is barred.

(2)(a) Applications for tax refund under those revenue laws enumerated in Section 72.011(1), F.S., shall be deemed complete upon the Department’s receipt of a properly executed application for refund form which contains the information required by Sections 213.255(2) and (3) and 215.26(2), F.S., and this rule.

(b) Applications for refund must be filed with the Department by submitting the completed application to the Department:

1. Online at taxapps.floridarevenue.com/Refunds/, or

2. Mailed to the address contained within the application.

(3) Form DR-26, Application for Refund (incorporated by reference in Rule 12-26.008, F.A.C.), is the approved refund application for all taxes collected by the Department, except as follows:

(a) COMMUNICATIONS SERVICES TAX. A refund claim for communications services tax must be made directly to the dealer that collected that tax, as provided in Section 202.23, F.S. A refund claim may be made to the Department using Form DR-26, Application for Refund, only under the following circumstances:

1. The tax for which a refund is requested was self-accrued and remitted directly to the Department, or

2. The tax for which a refund is requested was paid by a dealer who subsequently resold the communications services for which the tax was paid and who collected and remitted the tax due on the services resold.

(b) CORPORATE INCOME TAX. Refunds claimed under Chapter 220, F.S., must be filed with the Department on the following forms:

1. Form F-1120, Florida Corporate Income/Franchise Tax Return, Form F-1120A, Florida Corporate Short Form Income Tax Return, or Form F-1120X, Amended Florida Corporate Income/Franchise Tax Return (all forms incorporated by reference in Rule 12C-1.051, F.A.C.).

2. Form DR-26, Application for Refund, only for refunds claimed for amounts deposited by the Department in error or for a duplicate payment of the final corporate return filed with the Department.

(c) ESTATE TAX. Application for all refunds claimed under Chapter 198, F.S., must be made with the Department on a Florida Estate Tax Return for Residents, Nonresidents and Nonresident Aliens (form F-706, incorporated by reference in Rule 12C-3.008, F.A.C.).

(d) INSURANCE PREMIUM TAXES, FEES, AND SURCHARGES. Refunds claimed under Chapter 624, F.S., must be filed with the Department on the following forms:

1. Form DR-908, Insurance Premium Taxes and Fees Tax Return (incorporated by reference in Rule 12B-8.003, F.A.C.).

2. Form DR-26, Application for Refund, only for refunds claimed for amounts deposited by the Department in error or for a duplicate payment of the final insurance premium tax return filed with the Department.

(e) MOTOR AND OTHER FUEL TAXES. For forms required for refunds of taxes imposed under Chapter 206, F.S., see rule Chapter 12B-5, F.A.C., Tax on Motor Fuels, Diesel Fuels, Alternative Fuels, Aviation Fuels, and Pollutants.

(f) SALES AND USE TAX, DISCRETIONARY SALES SURTAX, SURCHARGES, AND FEES. A refund claimed for sales and use taxes, discretionary sales surtaxes, surcharges, and fees imposed or administered under Chapter 212, F.S., must be filed with the Department on Form DR-26S, Application for Refund-Sales and Use Tax (incorporated by reference in Rule 12-26.008, F.A.C.).

(4) Applications for refund that are not properly completed will not be considered filed for the purpose of tolling the statutory provisions of Section 215.26, F.S., or for the purpose of the payment of interest under the conditions prescribed in Sections 213.235 and 213.255, F.S. The Department will notify the applicant of the incomplete application and the necessary actions, corrections, of information needed to complete it within 30 consecutive calendar days of receiving the incomplete application. For the purposes of this rule, a completed application is defined as an application which contains all of the following information:

(a) The taxpayer’s current business name, and business mailing address;

(b)1. The taxpayer’s federal taxpayer identification number, or social security number, business partner number, Florida tax registration or license number, and/or audit number, if available;

2. Social security numbers are used by the Florida Department of Revenue as unique identifiers for the administration of Florida’s taxes. Social security numbers obtained for tax administration purposes are confidential under Sections 213.053 and 119.071, F.S., and not subject to disclosure as public records. Collection of social security numbers is authorized under state and federal law. Visit the Department’s website at floridarevenue.com and select “Privacy Notice” for more information regarding the state and federal law governing the collection, use, or release of social security numbers, including authorized exceptions;

(c) The tax years or tax periods to which the refund applies;

(d) The type of tax and the specific refund amount requested;

(e) Information and documentation that will enable the Department to determine eligibility for the refund and the amount of the refund claim due.

(f) An explanation of the basis for requesting the refund;

(g) The name and business mailing address of the correct payee;

(h) The signature of either the payee, or an officer of the firm or corporation listed as payee.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 95.091(3), 198.29(1), 199.232(5), 202.23, 213.21, 213.235, 213.255, 213.34, 213.345, 215.26, 220.725, 624.5092, 624.511, 624.518 FS. History–New 11-14-91, Amended 4-18-93, 4-18-95, 4-2-00, 10-4-01, 9-28-04, 4-16-18, 1-1-21 .

Fla. Admin. Code R. 12-26.004 Refund Approval Process

(1) The Department shall review the completed application for refund, and, as provided by Sections 213.255 and 215.26(2), F.S., determine the amount due, if any, under the applicable laws and rules governing the particular tax.

(2)(a) If the completed refund application is approved and the refund paid or credited to the taxpayer’s account within 90 consecutive calendar days of receipt of the completed application, except as provided by paragraph (c) of this subsection, the Department will notify the taxpayer and:

1. Shall voucher a request for warrant for submission to the Comptroller with appropriate supporting documentation as required, or necessary, for proper audit and payment, or;

2. Apply the amount as a credit against a tax, penalty, or interest liability of the taxpayer.

(b) If a refund is not paid or credited to the taxpayer’s account within 90 consecutive calendar days of receipt of the completed application, except as provided by paragraph (c) of this subsection, the Department must pay interest pursuant to sections 213.235 and 213.255, F.S., starting with the 91st day through the day that the voucher requesting a warrant for the refund amount is submitted to the Comptroller.

(c) The 90 consecutive calendar day period and the requirement to pay interest on refund amounts not timely paid or credited to a taxpayer, as discussed in paragraphs (a) and (b), above, will be tolled if:

1. Both the taxpayer and the Department agree that an audit or other verification process is necessary to validate the taxpayer’s refund request, and;

2. Both parties complete and sign Department Form DR-370026 (Agreement to Audit Refund Claim), incorporated by reference in rule 12-26.008, F.A.C.

(3)(a) For the purpose of implementing the 90 consecutive calendar day interest provision required pursuant to section 213.255, F.S., and this rule, an application will be considered complete when all information or corrections requested from the applicant are received by the Department, based on the postmark date, fax date, email submission date, or date of hand-delivery of such requested information.

(b) The 90 consecutive calendar day period will not expire on a Saturday, Sunday or legal holiday. The term “legal holiday” shall mean a holiday observed by federal or state agencies as a legal holiday pursuant to chapter 683, F.S., and section 7503 of the Internal Revenue Code of 1986, as amended. If the 90 consecutive calendar day period ends on a Saturday, Sunday or legal holiday, such period will not expire until the next successive day that is not a Saturday, Sunday, or legal holiday.

(4) The following example is intended to help taxpayers understand how this interest rate provision applies. The Department receives a completed application for refund on 2/05/2000. The Department pays the refund on 8/01/2000. Assuming an interest rate of 8 percent for the 1/01/2000 through 6/30/2000 period, and an interest rate of 9 percent for the 7/01/2000 through 12/31/2000 period, interest would be calculated as follows [NOTE: Interest does not start to accrue until the 91st day after the Department receives the complete application for refund, which is 5/06/2000]:

NUMBER

DAYS IN

TOTAL

PERIOD

TAX DUE

OF DAYS

YEAR

RATE

INTEREST DUE

5/06/00-6/30/00

$1,000

56

366

8% per year

$12.24

7/01/00-8/01/00

$1,000

32

366

9% per year

$7.87

Total Interest Due

$20.11

History

• Rulemaking Authority 213.06(1), 213.23 FS. Law Implemented 95.091(3), 213.235, 213.255, 213.34, 213.345, 215.26 FS. History–New 11-14-91, Amended 4-2-00, 10-4-01, 4-16-18.

Fla. Admin. Code R. 12-26.005 Refund Denials

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.34, 215.26 FS. History–New 11-14-91, Amended 4-18-93, Repealed 3-13-03.

Fla. Admin. Code R. 12-26.006 Protest Procedures

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 72.011, 213.34, 215.56 FS. History–New 11-14-91, Amended 4-18-93, Repealed 3-13-03.

Fla. Admin. Code R. 12-26.007 Final Agency Action

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 72.011, 213.34, 215.56 FS. History–New 11-14-91, Amended 4-18-93, Repealed 3-13-03.

Fla. Admin. Code R. 12-26.008 Public Use Forms

(1)(a) The following public use forms are used by the Department in the processing of refunds and are hereby incorporated by reference.

(b) These forms are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800 Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2) DR-26

Application for Refund

(http://www.flrules.org/Gateway/reference.asp?No=Ref-10163)

01/19

(3) DR-26AH

Application for Refund of Sales and Use Tax on Building Materials Used in Construction of Eligible Residential Units for Affordable Housing

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16274)

01/24

(4) DR-26RP

Application for Refund of Sales and Use Tax on Building Materials Used in Florida Neighborhool Revitalization Projects

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16252)

01/24

(5) DR-26S

Application for Refund-Sales and Use Tax

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16253)

01/24

(6) DR-370026

Agreement to Audit Refund Claim (R. 04/18)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-09247)

04/18

(7) DR-26N

Instructions – Application for Refund

(http://flrules.org/Gateway/reference.asp?No=Ref-18766)

01/26

(8) DR-26SN

Instructions – Application for Refund Sales and Use Tax

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16251)

01/24

(9) RAO

Rural Areas of Opportunity Application for Certification Exempt Goods and Services Sales Tax Refund Based on Section 212.08(5)(r), F.S.

(http://www.flrules.org/Gateway/reference.asp?No=Ref-09250)

04/18

(10) DR-26A

Assignment of Rights to Refund of Tax

(http://www.flrules.org/Gateway/reference.asp?No=Ref-10798)

07/19

History

• Rulemaking Authority 212.08(5)(n)4., (o)4., (p)3.c., (v)5., 213.06(1) FS. Law Implemented 72.011, 199.218, 201.11, 202.23, 206.41, 206.64, 206.8745, 206.9875, 206.9942, 212.08(2)(j), (5)(n), (o), (p), (v), (7), 212.12(6)(a), (c), 212.13(1), (2), 212.17(1), (2), (3), 213.255(2), (3), (4), (12), 213.34, 213.37, 215.26, 220.725, 220.727, 624.5092, 681.104 FS. History–New 11-14-91, Amended 4-18-93, 10-4-01, 9-28-04, 4-16-18, 1-8-19, 7-8-19, 1-1-24, 12-29-25, 1-25-26.

Fla. Admin. Code R. 12-26.009 Refund/Offset Within an Audit

(1) Section 213.34(3), F.S., authorizes the Department to correct by credit or refund any overpayment of tax, penalty, or interest revealed in an audit and to make assessments for any deficiency of tax, penalty, or interest determined to be due. Section 213.34(4), F.S., further authorizes the Department to offset the overpayment of any tax discovered during an audit against any deficiency of tax, penalty, or interest determined to be due during the audit, notwithstanding the provisions of Section 215.26, F.S. The procedures regarding this authority as set forth in this rule shall be implemented upon the effective date of the rule.

(2) For the purposes of this rule section, the following terms shall have the meaning ascribed to them except where the context clearly indicates a different meaning:

(a) “Audit period” shall mean the period of time established by a notice of intent to conduct an audit issued by the Department during which the Department’s power to make an assessment under Section 95.091(3), F.S., or grant a refund under Section 215.26(2), F.S., has not terminated.

(b) “Filing period” shall mean the taxable period as reported on the returns under audit.

(c) “Same audit period” shall mean:

1. The period of time under audit for two or more taxes which are listed on the same notice of intent to conduct an audit.

2. The period of time under audit for two or more taxes which are listed on different notices of intent to conduct an audit when at least eighty percent (80%) of the audit period established by the second notice of intent to conduct an audit falls within the audit period established by the first notice of intent to conduct an audit. For example:

a. A notice of intent to conduct an audit dated 2/8/95 is issued for sales and use tax. This notice establishes an audit period of 1/90-12/94. Subsequently, a second notice of intent to conduct an audit dated 3/10/95 is issued for corporate income tax. This notice establishes the tax years ending 12/31/89-12/31/93 as the period under audit. Since eighty percent (80%) of the audit period established by the second notice of intent to conduct an audit falls within the audit period established by the first notice of intent to conduct an audit, the audit periods covered by these two notices would be considered the same audit period.

b. A notice of intent to conduct an audit dated 11/3/93 is issued for corporate income tax. This notice establishes the tax years ending 12/31/88-12/31/92 as the period under audit. Subsequently, a notice of intent to conduct an audit dated 2/8/95 is issued for sales and use tax. This notice establishes the audit period of 1/90-12/94. Since only sixty percent (60%) of the audit period established by the second notice of intent to conduct an audit falls within the audit period established by the first notice of intent to conduct an audit, the audit periods covered by these two notices would NOT be considered the same audit period.

(d) “Tax Category” shall mean an individual tax administered by the Department of Revenue under the authority provided in Section 72.011, F.S. For purposes of this rule, all taxes reported on the Florida Department of Revenue Insurance Premium Taxes and Fees Tax Return, Form DR-908, incorporated by reference in Rule 12B-8.003, F.A.C., are considered to be one tax category.

(3) Procedures When Auditing One Tax Category.

(a) When an overpayment(s) and an underpayment(s) are found in the filing periods under audit, the earliest period with an overpayment shall be offset against the earliest period with an underpayment of tax, interest, or penalty. Any remaining overpayment(s) shall be carried forward and applied to the next period(s) under audit where underpayments are determined to exist.

(b) Overpayments shall be applied to underpayments in the following order:

1. To any accrued tax;

2. To any accrued interest; and,

3. To any accrued penalty.

(c) If the audit results in a net overpayment, after all underpayments of tax, interest, and penalty are offset, any overpayment which is outside the time limitations provided for refund in section 215.26 or 220.727, F.S., if applicable, shall be barred from further refund or credit.

(d) Examples:

1. A sales and use tax audit covering the period July 1, 1988 through June 30, 1993 was completed and the net underpayment was paid on August 1, 1993. The audit revealed that all periods were properly filed and paid except the following:

Applied

Tax

Period

Cumulative

Period

Under Paid

Interest

Penalty

Total

Amount

10/88

$100.00

$1.00

$5.00

$106.00

$106.00

11/88

<200.00>

0.00

0.00

<200.00>

< 94.00>

12/88

150.00

30.42

14.00

194.42

100.42

Total Due

$100.42

The earliest filing period with an overpayment (11/88) is offset against the earliest filing period with an underpayment (10/88). The 11/88 overpayment of $200 is applied to the 10/88 underpayment of tax, interest, and penalty totalling $106. Interest and penalty on the 10/88 underpayment is calculated for one month. The remaining $94 overpayment, after the offset, is then applied to the $150 underpayment of tax for 12/88, leaving an outstanding tax amount of $56. Interest is calculated on the $56 underpayment through the date of payment and penalty is capped at 25% of the $56 underpayment. The net amount due on the date of payment, August 1, 1993, is $100.42.

2. A corporate income tax audit covering the period January 1, 1988 through December 31, 1992 was completed and a notice issued on March 1, 1994. The audit revealed the following:

Applied

Tax

Period

Cumulative

Period

Under Paid

Interest

Penalty

Total

Amount

12/88

$<800.00>

$0.00

$0.00

$<800.00>

$<800.00>

12/89

200.00

0.00

0.00

200.00

<600.00>

12/90

200.00

0.00

0.00

200.00

<400.00>

12/91

100.00

0.00

0.00

100.00

<300.00>

12/92

250.00

0.00

0.00

250.00

<50.00>

Net Total

$<50.00>

In this example, the earliest overpayment (12/88) is applied to the earliest underpayment (12/89) and the remaining overpayment is carried forward and applied to the next underpayment(s) until each underpayment is offset. There is no interest or penalty computed since each period results in a net overpayment. The net result of the audit is an overpayment of $50.00. Since the overpayment was made in a year which is outside the statute of limitations for refund, the $50.00 net overpayment is barred from any additional refund or credit.

(4) Procedures When Auditing Two or More Tax Categories – Same Audit Period.

(a) The net amount overpaid or underpaid during the audit period will be determined for each tax category under audit using the procedures detailed in subsection 12-26.009(3), F.A.C.

(b) The full amount of any net overpayment discovered during the audit of one tax category, whether within statute for refund purposes or not, shall be offset against any net underpayments found during the same audit in any other tax category included in the audit.

(c) The tax category with a net overpayment from the earliest filing period shall be offset against the tax category with a net underpayment from the earliest filing period. Any remaining overpayment(s) shall be applied to any tax category with later filing periods where underpayments are determined to be due during the audit period.

(d) Overpayments shall be applied to underpayments in the following order:

1. To any accrued tax;

2. To any accrued interest; and,

3. To any accrued penalty.

(e) Example: A taxpayer’s sales and use tax, insurance premium tax, and corporate income tax are included on the same audit for the tax periods January 1987 through December 1991. The notice of intent to make audit changes was issued on March 1, 1993. After all overpayments and underpayments are offset within each tax category, the following information is revealed:

Tax

Tax

Net

Category

Period

Under Paid

Interest

Penalty

Amount

Sales/Use

10/88

$1000.00

$378.08

$250.00

$1628.08

Insurance

12/88

<2500.00>

0.00

0.00

<2500.00>

Corporate

12/90

200.00

32.97

50.00

282.97

Net Result

$<588.95>

The net overpayment in insurance premium tax (from filing period 12/88) is offset against the net underpayment in sales and use tax (from filing period 10/88) and the remaining overpayment is then offset against the net underpayment in corporate income tax (from filing period 12/90). Since the final result of the audit is an overpayment and the entire amount of the overpayment is outside the statute of limitations for refund, the remaining overpayment is barred from any additional refund or credit.

(5) After all overpayments and underpayments discovered in the audit have been offset, a determination of the net result of the audit is made.

(6)(a) When the audit results in a net overpayment, the date of the overpayment is reviewed to determine whether it is within the statute of limitations for refund as provided in Section 215.26 or 220.727, F.S., if applicable.

(b) When the net overpayment is refundable, the auditor shall inform the taxpayer of the procedures, as provided in this chapter, for filing a claim for refund.

(c) Any part of the net overpayment which is outside the statute of limitations for refund is barred from any further refund. For audits where the notice of intent to conduct an audit is issued on or after the effective date of this rule, any part of the net overpayment which is outside the statute of limitations for refund is also barred from any further credit.

(7) When the audit results in a net underpayment, after the entire overpayment(s) has been used to offset the underpayment(s), any tax, interest, or penalty remaining due shall be assessed and billed.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 72.011, 95.091, 213.25, 213.34, 215.26 FS. History–New 4-18-95, Amended 4-16-18.

Chapter 12-28 REMITTANCE REQUIREMENTS FOR CLERKS OF THE COURT, MUNICIPALITIES, AND COUNTIES

Fla. Admin. Code R. 12-28.001 Scope

(1) Remittances by Clerks of the Court. This rule chapter sets forth the rules to be used in the administration of Section 213.13, F.S., which provides for the electronic remittance of all funds collected by the Clerks of the Court (“Clerk”) on behalf of the state or on behalf of the Court for distribution to the state and the electronic transmission of return/remittance detail to the Department of Revenue for further disbursement to the various trust funds and agencies as designated in the applicable statutes.

(2) Remittances by Municipalities and Counties. This rule chapter also sets forth the rules to be used in the administration of Section 316.0083, F.S., which provides for the electronic remittance of the traffic infraction detector penalties collected by municipalities or counties (“Local Government”) and the electronic transmission of return/remittance detail to the Department of Revenue for disbursement to the designated funds.

History

• Rulemaking Authority 213.06(1), 213.13 FS. Law Implemented 28.245, 213.13, 219.07, 316.0083(1)(b)2., 3., 322.20(11), 721.8561 FS. History–New 8-19-02, Amended 6-1-09, 6-6-11, Technical Change 6-8-26.

Fla. Admin. Code R. 12-28.002 Definitions

For the purposes of this rule chapter, the following terms and phrases when used in this rule chapter shall have the meanings ascribed to them in this rule, except where the context clearly indicates a different meaning:

(1) “Automated Clearing House” means a central distribution and settlement point for the electronic clearing of debits and credits between financial institutions rather than the physical movement of paper items.

(2) “ACH debit” means the electronic transfer of funds that is generated upon instruction of the Clerk or Local Government and cleared through the Automated Clearing House for deposit to the State Treasury.

(3) “Department” means the Florida Department of Revenue.

(4) “Electronic funds transfer” means an electronic transfer of funds.

(5) “Payment information” means the data that must be submitted to the Department when making an electronic remittance. Payment information includes the:

(a) Payor information, which consists of the:

1. Bank account number; and,

2. Financial routing and transit number as issued by the American Banking Association.

(b) Contact person information, which consists of:

1. Name;

2. Business telephone number and fax number;

3. Business e-mail address; and,

4. Business mailing address.

(c) Name of person authorized to sign the electronic remittance.

(6) “Return/remittance detail” means that information required by statute or rules adopted by agencies that administer the programs for which the funds are collected. This information must, at a minimum, contain detailed data regarding the specific taxes, fees, fines, penalties, reimbursements, court costs, and other court-related funds that constitute the funds being electronically remitted.

(7) “Session” means the period of time from the point the Clerk logs onto the Clerk of Court Revenue Remittance System up to the point the Clerk exits the system, or the period of time from the point the Local Government logs onto the Traffic Infraction Detector (Red Light Camera) Remittance System up to the point the Local Government exits the system. A session can be concluded by:

(a) The completion of an electronic remittance of funds and transmission of detail and receipt of a confirmation number, which is defined as a “transaction”; or,

(b) The “save and exit” feature (to return later for completion); or,

(c) The system because of inactivity or a connectivity failure.

(8) “Working day” means any calendar day other than a Saturday, Sunday, or federal or state legal holiday or legal holiday of the jurisdiction in which the Clerk’s or Local Government’s financial institution is located.

History

• Rulemaking Authority 213.06(1), 213.13 FS. Law Implemented 28.245, 213.13, 219.07, 316.0083(1)(b)2., 3., 721.8561 FS. History–New 8-19-02, Amended 6-1-09, 6-6-11, Technical Change 6-8-26.

Fla. Admin. Code R. 12-28.003 Enrollment Procedures

(1)(a) Each Clerk and each Local Government required to electronically remit funds collected and to electronically transmit return/remittance detail for such funds as provided in Section 213.13 or 316.0083, F.S., must enroll with the Department for eServices by:

1. Accessing and completing enrollment on the Department’s website at floridarevenue.com, or

2. If unable to enroll using the Department’s website, completing an Enrollment and Authorization for eServices Program (Form DR-600, incorporated by reference in Rule 12-24.011, F.A.C.)

(b) Information regarding enrollment with the Department for eServices may be obtained at floridarevenue.com or by calling the Department at (850)488-6800. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(2) Upon receipt of enrollment information, the Department will assign confidential user information directly to the Clerk or Local Government enrolling and issue an acknowledgement letter that includes the confidential user information and instructions for signing onto the Department’s Clerk of Court Revenue Remittance System or onto the Department’s Traffic Infraction Detector (Red Light Camera) Remittance System.

(3)(a) If for any reason a Clerk or his or her authorized designee is replaced or is unable to perform the activities required by Section 213.13, F.S., the successor must notify the Department within 30 consecutive calendar days of taking office or being hired. If for any reason the contact person or person authorized to sign the electronic remittance designated by the Local Government is replaced, the Local Government must notify the Department within 30 consecutive calendar days.

(b) Clerks and Local Governments may notify the Department of updates to the eServices profile by accessing and completing an update on the Department’s website at floridarevenue.com, or by completing a new Form DR-600 and submitting it to the Department.

(c) All regularly-scheduled fund remittances must continue without interruption during any transition period.

History

• Rulemaking Authority 213.06(1), 213.13 FS. Law Implemented 28.245, 213.13, 219.07, 316.0083(1)(a)2., 3., 721.8561 FS. History–New 8-19-02, Amended 6-1-09, 6-6-11, 12-29-25.

Fla. Admin. Code R. 12-28.004 Transmitting Funds and Return/Remittance Detail to the Department

(1) Means of Funds and Detail Transmission – A personal computer capable of accessing the Internet using a version of the Microsoft Internet Explorer browser that utilizes 128-bit secure socket layer (SSL) encryption is required.

(2) Procedures for Funds and Detail Transmission.

(a) After successful enrollment, the Clerk or his or her designee will access the Clerk of Court Revenue Remittance System, or the Local Government will access the Traffic Infraction Detector (Red Light Camera) Remittance System, using the confidential user information provided by the Department. This action initiates a session, as defined in Rule 12-28.002, F.A.C.

(b) During the session, the following information will be required:

1. Reporting period;

2. Return/remittance detail;

3. Payment information, as defined in Rule 12-28.002, F.A.C.

(c) The funds and detail transmission is not completed during any session until a confirmation number is issued. This number provides a means of verifying the transaction and serves as the receipt.

(3) Method for Funds Remittance. The Department uses the ACH debit transfer method for funds remittance by Clerks and by Local Governments to the Department. The Department will bear the costs of processing the funds remittance by the ACH debit transfer method.

(4) Transmission Problems, Remittance Errors, and Failed Payments.

(a) Reporting Transmission Problems – For problems experienced with transmitting return/remittance detail, contact the Department as soon as possible:

1. By telephone at (850)617-8586;

2. By fax at (850)921-1171, or

3. By email at revenueaccounting@floridarevenue.com.

(b) Correcting Remittance Errors.

1. If, before 4:00 p.m. (Eastern Time), on the day of submission, an error in the return/remittance detail is discovered, contact the Department at (850)617-6586 for assistance.

2. If, after 4:00 p.m. (Eastern Time), on the day of submission, or on any subsequent day thereafter, an error in the return/remittance detail is discovered, contact the Department’s Revenue Accounting by email at revenueaccounting@floridarevenue.com or by telephone at (850)617-8586 to report the error.

(c) Replacing failed payments – When an electronic payment has failed or will be returned by the financial institution, the payment must be resubmitted using the “Returned Item Repayment” option of the remittance system. Additional assistance may be obtained by calling the Department at (850)617-8586.

History

• Rulemaking Authority 213.06(1), 213.13 FS. Law Implemented 28.245, 213.13, 219.07, 316.0083(1)(b)2., 3., 322.20(11), 721.8561 FS. History–New 8-19-02, Amended 6-1-09, 6-6-11, Technical Change 6-8-26.

Fla. Admin. Code R. 12-28.005 Means of Communication to Report Payment Information

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.13, 213.131 FS. History–New 8-19-02, Repealed 6-1-09.

Fla. Admin. Code R. 12-28.006 Remittance or Transmission Problems

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.13, 213.131 FS. History–New 8-19-02, Repealed 6-1-09.

Fla. Admin. Code R. 12-28.007 Procedures for Payment

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.13, 213.131 FS. History–New 8-19-02, Repealed 6-1-09.

Fla. Admin. Code R. 12-28.008 Due Date; General Provisions

(1) Transactions to remit funds electronically must be completed so that the amount due is deposited as collected funds to the State Treasurer’s account on or before the remittance due date required by applicable statute or any agency rule.

(a) 5-Day Remittances. Fees imposed under Section 322.20(11)(a), F.S., for providing individual driver history transcripts or other documents, or for assisting in search for an individual’s driver history record must be remitted no later than five working days after receipt of the fee, unless a shorter period is required by law. The Clerk must complete the transaction before 5:00 p.m. (Eastern Time), on the fifth working day following the receipt of the fee.

(b) Weekly Remittances. Documentary stamp tax, nonrecurring intangible personal property tax, administrative fees for trustee deeds recorded as provided in Sections 721.855 and 721.856, F.S., collected by the Clerk, and traffic infraction detector penalties imposed under Section 316.0083, F.S., collected by the Local Government must be remitted on a weekly basis. The Clerk must complete the transaction before 5:00 p.m. (Eastern Time), on the sixth working day following the close of the week in which the funds were received, as provided in Section 219.07, F.S.

(c) Monthly Remittances. Court-related fees, services charges, court costs, and fines must be remitted on a monthly basis. The Clerk must complete the transaction before 5:00 p.m. (Eastern Time), on the last working day before the 10th day of the month immediately following the month in which the moneys were collected, as provided in Section 28.245, F.S. If the 10th day of the month falls on a Saturday, a Sunday, a legal holiday as defined in Section 683.01, F.S., or on a legal holiday of the jurisdiction in which the Clerk’s financial institution is located, the transaction must be completed on or before 5:00 p.m. (Eastern Time), on the preceding business day.

1. That portion of all court-related fees, service charges, court costs, and fines collected by the Clerk in the previous month that is in excess of one-twelfth of the Clerk’s total budget for performance of court-related functions must be remitted on a monthly basis. Additional court-related fees, service charges, court costs, and fines collected by the Clerk that are required to be disbursed to a trust fund or an agency must also be remitted on a monthly basis.

2. When notified by the Florida Clerks of Court Operations Corporation that funds are due to the Department, the funds must be remitted on or before the 10th day of the month following the month in which the Clerk was notified.

3. The Clerk must complete the transaction before 5:00 p.m. (Eastern Time), on the last working day before the 10th day of the month immediately following the month in which the moneys were collected.

(d) Annual Remittance. The cumulative excess of all court-related fees, service charges, court costs, and fines retained by the Clerk, plus any funds received by the Clerk as provided in Section 28.36(4), F.S., that exceed the amount necessary to meet the Clerk’s authorized budget amount must be remitted on an annual basis. The Clerk must complete the transaction before 5:00 p.m. (Eastern Time), on the last working day before January 25th of each year, beginning in January 2015. If the 25th day of the month falls on a Saturday, a Sunday, a legal holiday as defined in Section 683.01, F.S., or on a legal holiday of the jurisdiction in which the Clerk’s financial institution is located, the transaction must be completed on or before 5:00 p.m. (Eastern Time), on the preceding business day.

(e) Failure to remit the funds as provided in this subsection will constitute late payment.

(2) To assist in complying with all statutory requirements for timely remittance of funds, the Department will annually develop a calendar of remittance dates for use by Clerks and Local Governments. The annual calendar of remittance dates is posted on the Department’s website at floridarevenue.com/forms and may also be obtained by calling the Department at (850)488-6800. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

History

• Rulemaking Authority 213.06(1), 213.13 FS. Law Implemented 28.241(1)(a)1., 28.245, 28.37, 34.041(1)(b), 213.13, 219.07, 316.0083(1)(b)2., 3., 322.20(11), 721.8561 FS. History–New 8-19-02, Amended 6-1-09, 6-6-11, 1-20-14, 1-1-24, Technical Change 6-8-26.

Fla. Admin. Code R. 12-28.009 Distribution of Funds Received by the Department

(1) Upon receiving payment information and associated remittance information, the Department will verify that the funds for subsequent distribution reconcile with the associated remittance information submitted to the Department.

(2) Within two working days of receiving an accurate payment, the Department will make all required entries in the State accounting system. These entries will be based on the remittance detail for the appropriate trust fund or agency as designated in statute.

History

• Rulemaking Authority 213.06(1), 213.13 FS. Law Implemented 28.245, 213.13, 219.07, 316.0083(1)(b)2., 3., 322.20(11), 721.8561 FS. History–New 8-19-02, Amended 6-1-09, 6-6-11, Technical Change 6-8-26.

Chapter 12-29 MULTITAX CREDITS

Fla. Admin. Code R. 12-29.001 Scope

(1) This rule chapter sets forth the rules to be used in the administration of the following tax credits:

(a) The Florida Tax Credit Scholarship Program under Section 1002.395, F.S. That program allows taxpayers to receive a credit allocation for contributions made to nonprofit scholarship-funding organizations.

(b) The Strong Families Tax Credit program under Section 402.62, F.S. That program allows taxpayers to receive a credit allocation for contributions made to eligible charitable organizations designated by the Department of Children and Families.

(c) The New Worlds Reading Initiative program under Section 1003.485, F.S. That program allows taxpayers to receive a credit allocation for contributions made to the University of Florida Lastinger Center for Learning.

(d) The Florida Housing Finance Corporation under Section 420.50872, F.S., Live Local Program. That program allows taxpayers to receive a credit allocation for contributions made to the Florida Housing Finance Corporation.

(e) The Child Care Tax Credits program under Section 402.261, F.S. That program allows taxpayers to receive a credit allocation for establishing an eligible child care facility for employees; operating a child care facility for employees; or paying an eligible child care facility in the name and for the benefit of an employee.

(f) The Home Away From Home Tax Credit program under Section 402.63, F.S. That program allows taxpayers to receive a credit allocation for contributions made to eligible charitable organizations designated by the Department of Health.

(2) This rule chapter establishes procedures governing the approval of tax credit allocations and rescindments, procedures for transferring tax credits, and the procedures to be followed by taxpayers when claiming tax credits on tax returns.

History

• Rulemaking Authority 213.06(1), 402.261(7), 402.62(7)(b), 420.50872(5), 1002.395(12)(b), 1003.485(7)(b) FS. Law Implemented 211.0251, 211.0252, 211.0253, 211.0254, 212.1831, 212.1833, 212.1834, 212.1835, 220.1875, 220.1876, 220.1877, 220.18775, 220.1878, 220.19, 402.261, 402.62(5), 402.63, 420.50872, 561.1211, 561.1212, 561,1213, 561.12135, 561.1214, 624.51055, 624.51056, 624.51057, 624.51058, 624.5107, 1002.395(5), 1003.485(5) FS. History–New 6-6-11, Amended 7-28-15, 1-8-19, 5-23-22, 1-1-24, 2-20-25, 1-1-26.

Fla. Admin. Code R. 12-29.002 Florida Tax Credit Scholarship Program; Participation; Allocation; Carryforward; Transfer; Rescindment

(1) Definitions. For purpose of this rule, the following terms mean:

(a) “Affiliated group of corporations” is given the same meaning as the definition provided in Section 220.03(1)(b), F.S.

(b) “Contribution” means an eligible contribution, as defined in Section 1002.395(2), F.S., made to an eligible nonprofit scholarship-funding organization.

(c) “Credit allocation” means an allocation to a taxpayer of an annual tax credit cap authorized under the Florida Tax Credit Scholarship Program.

(d) “Department” means the Florida Department of Revenue.

(e) “Division” means the Division of Alcoholic Beverages and Tobacco of the Department of Business and Professional Regulation.

(f) “Eligible nonprofit scholarship funding organization” or “SFO” means a charitable organization as defined in Section 1002.395(2), F.S. A list of SFOs approved by the Department of Education, is available at http://fldoe.org/schools/school-choice/k-12-scholarship-programs/sfo/.

(g) “State fiscal year” means the annual period beginning July 1 through June 30 of the following year.

(h) “Tax credit cap” means the maximum annual tax credit amount that the Department is authorized in Section 1002.395(5), F.S., to allocate. The Department will issue a Tax Information Publication to announce increases in the maximum annual tax credit amount.

(2) Taxpayers eligible to participate in the program. Taxpayers who pay any of the following taxes may apply to the Department for a credit allocation:

(a) For the taxes administered by the Department:

1. Florida corporate income tax imposed under Chapter 220, F.S.

2. Florida insurance premium tax imposed under Section 624.509, F.S.

3. Florida state sales and use tax self-accrued and paid directly to the Department in accordance with a valid Sales and Use Tax Direct Pay Permit, issued by the Department, as provided in Section 212.183, F.S., and Rule 12A-1.0911, F.A.C.

4. Florida oil production tax imposed under Section 211.02, F.S., or Florida gas production tax imposed under Section 211.025, F.S.

(b) For excise taxes administered by the Division:

1. Excise tax on liquor beverages imposed under Section 565.12, F.S.;

2. Excise tax on wine beverages imposed under Section 564.06, F.S., except excise taxes imposed on wine produced by manufacturers in Florida from products grown in Florida; or,

3. Excise tax on malt beverages imposed under Section 563.05, F.S.

(3) Applications for credit allocations.

(a) To receive a credit allocation, taxpayers must apply online using the Department’s website at floridarevenue.com or submit Florida Tax Credit Scholarship Program – Application for Tax Credit Allocation for Contributions to Nonprofit Scholarship-Funding Organizations (Form DR-116000, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department.

1. Taxpayers required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and rule Chapter 12-24, F.A.C., must apply online using the Department’s website. When the application is completed and submitted online, a confirmation number will be provided to confirm receipt of the application.

2. The fastest and easiest way to apply for the credit is to use the online application. Taxpayers who do not meet these requirements are encouraged to apply online. However, such taxpayers may apply for a credit allocation by filing a paper application with the Department.

(b) A separate application to receive a credit allocation is required for:

1. Each SFO the taxpayer intends to support; and,

2. Each beverage license issued by the Division for which a separate return to report and pay the excise taxes on liquor, wine, and malt beverages is filed with the Division.

3. Each tax credit cap year.

(c) Taxpayers are eligible to apply during the following periods to receive a credit allocation from each annual tax credit cap for the following taxes as follows:

1. Corporate Income Tax – A taxpayer may make an application for a credit allocation on the first business day of January of each calendar year for its tax year that begins during that calendar year. The application must be submitted before the date the taxpayer is required to file its corporate income/franchise tax return for that tax year pursuant to Section 220.222, F.S., including a valid extended due date.

a. Example: A calendar year taxpayer may apply for a credit allocation for the 2025-2026 state fiscal year credit beginning on January 2, 2025. The application must be submitted before May 1, 2026; however, if the due date of the taxpayer’s corporate income/franchise tax return is validly extended, the application may be submitted before November 1, 2026.

b. Example: A taxpayer with a tax year beginning December 1, 2025, and ending November 30, 2026, may apply for a credit allocation for the 2025-2026 state fiscal year credit beginning on January 2, 2025. The application must be submitted before April 1, 2027; however, if the due date of the taxpayer’s corporate income/franchise tax return is validly extended, the application may be submitted before October 1, 2027.

2. Insurance Premium Tax – A taxpayer may make an application for a credit allocation on the first business day of January of each calendar year and before the due date of the insurance premium taxes and fees return, which is March 1 following the taxable year. Example: For the 2025-2026 state fiscal year tax credit cap, a taxpayer may submit an application for a credit allocation beginning on January 2, 2025. The application must be made on or before February 28, 2026.

3. Sales and Use Tax – Tax on Oil and Gas Production – Excise Taxes on Liquor, Wine, and Malt Beverages – A taxpayer may make an application for a credit allocation on the first business day of January of the calendar year preceding the state fiscal year beginning on July 1 of the calendar year. The application must be made by June 30 of the state fiscal year for which the taxpayer is applying. For example, for a credit allocation for the 2025-2026 state fiscal year, taxpayers may apply for a credit allocation beginning on January 2, 2025. The application must be made on or before June 30, 2026.

(d) The Department will accept applications until either the tax credit cap is reached or until the end of the state fiscal year for sales and use tax, the tax on oil and gas production, and the excise taxes on liquor, wine, and malt beverages; until on or before the day the taxpayer’s insurance premium tax return is due; or until the day before the due date of the taxpayer’s corporate income/franchise tax return for corporate income tax, whichever occurs first.

(4) Notification.

(a) The Department will approve credit allocations on a first-come, first-served basis. Following receipt of an application, the Department will send written correspondence regarding the amount of the credit allocation for each tax applied for, or the reason the credit allocation could not be approved. For excise tax on liquor, wine, and malt beverages, the Division must approve the credit allocation before the Department will issue such correspondence.

(b) When approved, the Department’s approval letter will specify the period in which the contribution to the designated SFO must be made. Contributions must be made during the period specified in the approval letter. The SFO receiving a contribution will issue the taxpayer a certificate of contribution signed by an officer or authorized representative of the SFO containing:

1. Contributor’s name;

2. Contributor’s federal identification number;

3. Contributor’s license number issued by the Division, if applicable;

4. Amount of contribution;

5. Date of contribution; and,

6. Name of SFO.

(c) The amount of tax credit claimed on a tax return is limited to the amount of contribution contained in the certificate of contribution issued by an SFO. The taxpayer must make the contribution before the credit is claimed on a tax return.

(d) No tax credit will be allowed when a taxpayer:

1. Fails to make the designated contribution;

2. Fails to make a contribution before claiming the tax credit on a tax return;

3. Claims the credit against tax due prior to the date the contribution is made;

4. Makes a contribution to an ineligible organization; or

5. Makes the contribution outside the period specified in the Department’s approval letter.

(e) When an SFO is unable to accept the taxpayer’s contribution, or a part of the contribution, because of its obligations under Section 1002.395, F.S., the taxpayer may make a contribution or partial contribution to another SFO. The organization unable to accept the taxpayer’s contribution must provide a written statement to the taxpayer declining the contribution. The taxpayer is required to keep the written statement with its books and records.

(5) Tax Credits.

(a)1. Corporate Income Tax – A tax credit of 100 percent of the contribution against any corporate income tax due for the tax year is allowed. The amount of the tax credit for a tax year:

a. Is taken in the order of the credits provided against the corporate income tax in Section 220.02(8), F.S.

b. Must be reduced by the difference in federal corporate income tax due computed with the credit and without the credit.

c. Must be added back to taxable income in determining Florida corporate income tax due. If the amount of a credit taken under Section 220.1875, F.S., is added to federal taxable income on the Florida corporate income/franchise tax return in a previous tax year and is taken as a deduction for federal tax purposes in the current tax year, the amount of the federal deduction is not required to be added to federal taxable income on the Florida corporate income/franchise tax return in the current year. This provision ensures that the amount of the credit taken under Section 220.1875, F.S., is added to federal taxable income in the applicable tax year and does not result in a duplicate addition in a subsequent tax year.

d. Is revoked and rescinded when a taxpayer applies for a credit allocation after timely requesting an extension of time in which to file its Florida corporate income/franchise tax return and fails to remit sufficient tentative tax, such that its extension is not valid under Sections 220.222 and 220.32, F.S.

2. Taxpayers must attach a copy of the certificate of contribution from each SFO to the Florida corporate income/franchise tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(b)1. Insurance Premium Tax – A tax credit of 100 percent of the contribution against any insurance premium tax due under Section 624.509(1), F.S., for the tax year is allowed. The amount of the tax credit for a tax year is limited to the insurance premium tax due after deducting:

a. Assessments made pursuant to Section 440.51, F.S. (workers’ compensation administrative assessments);

b. Credits for taxes paid under Sections 175.101 and 185.08, F.S. (firefighters’ and police officers’ pension trust funds);

c. Credits for income taxes paid under Chapter 220, F.S., and the salary credit allowed under Section 624.509(5), F.S., as these are limited by Section 624.509(6), F.S. (the 65 percent limitation);

d. The amount of the Strong Families Tax credit under Section 624.51057, F.S.;

e. The amount of the Live Local Program credit under Section 624.51058, F.S.;

f. The amount of Child Care Tax Credits under Section 624.5107, F.S.;

g. The amount of the Home Away From Home Tax Credit under Section 624.51059, F.S.; and

h. The amount of the Rural Community Investment Program credit under Section 288.062, F.S.

2. Taxpayers must attach a copy of the certificate of contribution from each SFO to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(c)1. Sales and Use Tax – A tax credit of 100 percent of the contribution is allowed against any state sales and use tax due self-accrued and paid directly to the Department in accordance with a valid Sales and Use Tax Direct Pay Permit issued by the Department.

2.a. Taxpayers must submit a copy of the certificate of contribution from each SFO to the Department by email at CreditTrackingGroup@floridarevenue.com or by mail to:

Florida Department of Revenue

Revenue Accounting

P.O. Box 6609

Tallahassee, FL 32314-6609

b. Following receipt of the copy of the certificate, the Department will send written instructions on how to claim the credit allocation as a tax credit on a sales and use tax return remitted to the Department by electronic means.

(d)1. Tax on Oil and Gas Production – A tax credit of 100 percent of the contribution is allowed against any tax due on oil or gas production in Florida imposed under Sections 211.02 and 211.025, F.S. The tax credit may not exceed 50 percent of the tax due on the return on which the tax credit is taken.

2. Taxpayers must attach a copy of the certificate of contribution from each SFO to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(e)1. Excise Tax on Liquor, Wine, and Malt Beverages – A tax credit of 100 percent of the contribution is allowed against the following taxes administered by the Division.

a. Excise tax on liquor beverages imposed under Section 565.12, F.S.;

b. Excise tax on wine beverages imposed under Section 564.06, F.S., except excise taxes imposed on wine produced by manufacturers in Florida from products grown in Florida; or

c. Excise tax on malt beverages imposed under Section 563.05, F.S.

2. The tax credit taken on a return filed with the Division is limited to 90 percent of the tax due on the return. Taxpayers must attach a copy of the certificate of contribution from each SFO to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(f) Contributions to an SFO are not payments of estimated tax or installment payments of tax. However, credits earned for contributions to an SFO for corporate income tax or insurance premium tax will be taken into account when determining the estimated payment amounts required to meet the prior year exceptions for each tax. Cross reference: Rules 12C-1.034 and 12B-8.001, F.A.C.

(6) Carryforward of unused credits.

(a) When a taxpayer is unable to use a tax credit during the period specified by the Department in the approval letter, because the taxpayer’s liability is insufficient, the taxpayer may carry forward the unused tax credit amount for a period not to exceed ten years.

(b) Examples.

1. Corporate Income Tax Example – A calendar year taxpayer applied for and was approved for a credit allocation against corporate income tax for the tax year ending December 31, 2024. Any unused carryforward from its tax year ending December 31, 2024, expires on the due date pursuant to Section 220.222, F.S., for the Florida corporate income/franchise tax return for the taxable year ending December 31, 2034.

2. Insurance Premium Tax Example – A taxpayer applied for and was approved for a credit allocation against insurance premium tax due for calendar year 2024. Any unused carryforward from its tax year ending December 31, 2024, expires on December 31, 2034.

3. Sales and Use Tax Example – A taxpayer who holds a Sales and Use Tax Direct Pay Permit applied for and was approved for a credit allocation against sales and use tax due to the Department for the state fiscal year 2024-2025. The taxpayer paid the contribution to an SFO on July 15, 2024, and submitted a copy of the certificate of contribution received from the organization to the Department. The taxpayer’s state tax liability in accordance with the Permit was insufficient to use the entire credit allocation on sales and use tax returns filed with the Department on or before June 30, 2025. Any unused carryforward from the 2024-2025 state fiscal year expires June 30, 2035.

4. Tax on Oil and Gas Production – The same application periods and credit carryforward periods that apply to a sales and use tax credit allocation apply to a credit allocation against the tax on oil and gas production.

5. Excise Taxes on Liquor, Wine, and Malt Beverages Example – A taxpayer who holds a liquor license issued by the Division applied for and was approved for a credit allocation against the liquor excise tax for returns due during the state fiscal year 2024-2025. The taxpayer’s liability was insufficient to use the entire credit allocation during that state fiscal year. Any unused carryforward from the 2024-2025 state fiscal year expires June 30, 2035.

(7) Transfers of unused Tax Credits.

(a) A taxpayer may not convey, assign, or transfer a credit allocation or tax credit to another entity unless all of the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction. However, the following credit allocations or tax credits may be transferred between members of the same affiliated group of corporations:

1. A tax credit allocation for which a contribution has not been made to an SFO by the transferring member. The receiving member must make a contribution to an SFO during the same period that the transferring member was required to make the contribution. In addition, the contribution must be made before the receiving member may claim the tax credit.

2. A tax credit allocation for which a contribution has been made to an SFO by the transferring member, but the tax credit has not been claimed on a tax return.

3. A carryforward tax credit amount that has not been claimed on a tax return.

(b) A transferred credit allocation or tax credit may only be used against the same tax as the original credit allocation or tax credit approved by the Department.

(c) A transferred tax credit may only be taken by the receiving member of the affiliated group during the same period that the transferring member was approved to take the credit.

(d) A transferred carryforward amount may only be taken as a tax credit during the same time period as the transferring member was authorized to take the carryforward tax credit amount.

(e)1. A taxpayer must notify the Department of its intent to transfer a credit allocation or tax credit to another member of its affiliated group by submitting Florida Tax Credit Scholarship Program – Notice of Intent to Transfer a Tax Credit (Form DR-116200, incorporated by reference in Rule 12-29.003, F.A.C.). A separate notice must be submitted for each member of an affiliated group of corporations receiving a transfer.

2. Taxpayers must submit an application for transfer of any unused credit allocation or tax credit to the Department by email at CreditTrackingGroup@floridarevenue.com or by mail to:

Florida Department of Revenue

Revenue Accounting

P.O. Box 6609

Tallahassee, FL 32314-6609

(f) The Department must approve the application for transfer of the unused credit allocation or tax credit before the receiving member may claim the tax credit on a tax return. For excise tax on liquor, wine, and malt beverages, the Division must also approve the transfer before the receiving member may claim the tax credit on a tax return.

(g) Following receipt of an application, the Department will send written correspondence approving the transfer or providing the reason the transfer could not be approved. If the transfer is approved, a copy of the approval letter will be sent to both the transferring member and the receiving member. The approval letter will include instructions on how the receiving member may claim the tax credit on a tax return.

(8) Rescindment of unused Tax Credits.

(a) The rescindment provision allows credit allocations that will not be used by the taxpayer to be reallocated to other taxpayers who may use the credit allocation. Taxpayers must apply online using the Department’s website at floridarevenue.com or submit Florida Tax Credit Scholarship Program – Application for Rescindment of Previous Allocation of Tax Credit (Form DR-116100, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department to rescind all or a portion of an unused credit allocation. See paragraph (3)(a) for submitting the application to the Department.

(b) An application for rescindment of the unused credit allocation by the Department will not be approved when:

1. The amount of credit allocation requested to be rescinded has been claimed as a credit on a previously filed return; or

2. The allocation year is closed for all taxpayers. The allocation period for a calendar year is closed for all taxes and all taxpayers on October 1 of the third year following the January 1 opening of the allocation period, regardless of whether the annual tax credit cap has been reached. For example, the allocation period beginning January 1, 2025, for the state fiscal year beginning July 1, 2025, closes for all taxpayers on October 1, 2027.

(c) Following receipt of an application, the Department will send written correspondence regarding the amount of the rescindment, or the reason rescindment could not be approved. For excise tax on liquor, wine, and malt beverages, the Division must approve the rescindment before the Department will issue such correspondence.

(d) When the approval of a rescindment allows the tax credit cap for a state fiscal year to be reopened and available for allocation, the Department will notify each SFO that the tax credit cap is available for allocation.

History

• Rulemaking Authority 213.06(1), 288.062, 402.261(7), 402.62(7)(b), 402.63, 420.50872(5), 1002.395(12)(b) FS. Law Implemented 211.0251, 212.1831, 213.37, 220.1875, 220.18775, 288.0001, 288.062, 402.261, 402.62(5), 402.63, 420.50872, 561.1211, 561.12135, 624.509(7), 624.51055, 1002.395(5) FS. History–New 6-6-11, Amended 1-25-12, 7-28-15, 1-8-19, 12-12-19, 5-23-22, 1-1-24, 2-20-25, 1-1-26.

Fla. Admin. Code R. 12-29.003 Public Use Forms

(1)(a) The following application forms and instructions are used by the Department in its administration of the Florida Tax Credit Scholarship program, Strong Families Tax Credit program, The New Worlds Initiative Tax Credit program, Child Care Tax Credits program, Home Away From Home Tax Credit, and Rural Community Investment Program credit. These forms are hereby incorporated by reference in this rule.

(b) Copies of the application forms and instructions are available, without cost, by one or more of the following methods: 1) downloading the application from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday, (excluding holidays); or, 3) writing the Florida Department of Revenue, 5050 West Tennessee Street, Tallahassee, Florida 32399-0100. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2)(a) DR-116000

Florida Tax Credit Scholarship Program – Application for Tax Credit Allocation for Contributions to Nonprofit Scholarship-Funding Organizations

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17759)

02/25

(b) DR-116100

Florida Tax Credit Scholarship Program – Application for Rescindment of Previous Allocation of Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17760)

02/25

(c) DR-116200

Florida Tax Credit Scholarship Program – Notice of Intent to Transfer a Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17761)

02/25

(3)(a) DR-226000

Strong Families Tax Credit – Application for Tax Credit Allocation for Contributions to Eligible Charitable Organization

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14258)

05/22

(b) DR-226100

Strong Families Tax Credit – Application for Rescindment of Previous Allocation of Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14259)

05/22

(c) DR-226200

Strong Families Tax Credit – Notice of Intent to Transfer a Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14260)

05/22

(4)(a) DR-336000

The New Worlds Reading Initiative – Application for Tax Credit Allocation for Contributions to the Administrator

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17762)

02/25

(b) DR-336100

The New Worlds Reading Initiative – Application for Rescindment of Previous Allocation of Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17763)

02/25

(c) DR-336200

The New Worlds Reading Initiative – Notice of Intent to Transfer a Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14262)

05/22

(5)(a) DR-446000

Live Local Program – Application for Tax Credit Allocation for Contributions to the Florida Housing Finance Corporation

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16254)

10/23

(b) DR-446100

Live Local Program – Application for Rescindment of Previous Allocation of Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16255)

10/23

(c) DR-446200

Live Local Program – Notice of Intent to Transfer a Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16256)

10/23

(6)(a) DR-556000

Child Care Tax Credits Program – Application for Tax Credit Allocation (http://www.flrules.org/Gateway/reference.asp?No=Ref-17764)

02/25

(b) DR-556000A

Child Care Tax Credits Program – Application for Tax Credit Allocation Eligible Child Care Facility Statement

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17765)

02/25

(c) DR-556100

Child Care Tax Credits Program – Application for Rescindment of Previous Allocation of Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17766)

02/25

(d) DR-556200

Child Care Tax Credits Program – Notice of Intent to Transfer a Tax Credit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17767)

02/25

(7)(a) DR-665000

Home Away From Home Tax Credit – Application for Tax Credit Allocation for Contributions to Eligible Charitable Organizations

(http://flrules.org/Gateway/reference.asp?No=Ref-18769)

01/26

(b) DR-665100

Home Away From Home Tax Credit – Application for Rescindment of Previous Allocation of Tax Credit

(http://flrules.org/Gateway/reference.asp?No=Ref-18770)

01/26

(c) DR-665200

Home Away From Home Tax Credit – Notice of Intent to Transfer a Tax Credit

(http://flrules.org/Gateway/reference.asp?No=Ref-18771)

01/26

(8) DR-288062

Rural Community Investment Program – Notice of Intent to Transfer a Tax Credit

(http://flrules.org/Gateway/reference.asp?No=Ref-18768)

01/26

History

• Rulemaking Authority 213.06(1), 288.062, 402.261(7), 402.62(7)(b), 402.63, 420.50872(5), 1002.395(12)(b), 1003.485(7)(b) FS. Law Implemented 211.0251, 211.0252, 211.0253, 212.1831, 212.1833, 212.1834, 213.37, 220.1875, 220.1876, 220.1877, 220.18775, 220.1878, 288.0001, 288.062, 402.261, 402.62(5), 402.63, 420.50872, 561.1211, 561.1212, 561.1213, 561.12135, 624.509(7), 624.51055, 624.51056, 624.51057, 624.51058, 624.51059, 1002.395(5), 1003.485(5) FS. History–New 6-6-11, Amended 1-25-12, 7-28-15, 1-17-18, 1-8-19, 12-12-19, 5-23-22, 1-1-24, 2-20-25, 1-1-26.

Fla. Admin. Code R. 12-29.004 Strong Families Tax Credit; Participation; Allocation; Carryforward; Transfer; Rescindment

(1) Definitions. For purpose of this rule, the following terms mean:

(a) “Affiliated group of corporations” is given the same meaning as the definition provided in Section 220.03(1)(b), F.S.

(b) “Contribution” or “eligible contribution” means a monetary contribution from a taxpayer to an eligible charitable organization.

(c) “Credit allocation” means an allocation to a taxpayer of an annual tax credit cap authorized under the Strong Families Tax Credit.

(d) “Department” means the Florida Department of Revenue.

(e) “Division” means the Division of Alcoholic Beverages and Tobacco of the Department of Business and Professional Regulation.

(f) “Eligible charitable organization” means an organization designated by the Department of Children and Families to be eligible to receive funding under Section 402.62, F.S.

(g) “State fiscal year” means the annual period beginning July 1 through June 30 of the following year.

(h) “Tax credit cap” means the maximum annual tax credit amount that the Department is authorized by Section 402.62, F.S., to allocate.

(2) Taxpayers eligible to participate in the program. Taxpayers who pay any of the following taxes may apply to the Department for a credit allocation:

(a) For the taxes administered by the Department:

1. Florida corporate income tax imposed under Chapter 220, F.S.

2. Florida insurance premium tax imposed under Section 624.509, F.S.

3. Florida state sales and use tax self-accrued and paid directly to the Department in accordance with a valid Sales and Use Tax Direct Pay Permit, issued by the Department, as provided in Section 212.183, F.S., and Rule 12A-1.0911, F.A.C.

4. Florida oil production tax imposed under Section 211.02, F.S., or Florida gas production tax imposed under Section 211.025, F.S.

(b) For excise taxes administered by the Division:

1. Excise tax on liquor beverages imposed under Section 565.12, F.S.;

2. Excise tax on wine beverages imposed under Section 564.06, F.S., except excise taxes imposed on wine produced by manufacturers in Florida from products grown in Florida; or

3. Excise tax on malt beverages imposed under Section 563.05, F.S.

(3) Applications for credit allocations.

(a) To apply for an allocation of the available program credits, a taxpayer must submit Strong Families Tax Credit – Application for Tax Credit Allocation for Contributions to Eligible Charitable Organizations (Form DR-226000, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department.

1. Taxpayers required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and Rule Chapter 12-24, F.A.C., must apply online using the Department’s website. When the application is completed and submitted online, a confirmation number will be provided with the date and time of submission.

2. The fastest and easiest way to apply for an allocation is online at floridarevenue.com/taxes/multitaxcredits. Taxpayers who are not required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and rule Chapter 12-24, F.A.C., may also apply by submitting a paper application with the Department.

(b) A separate application to receive a credit allocation is required for:

1. Each eligible charitable organization the taxpayer intends to support; and,

2. Each beverage license issued by the Division for which a separate return to report and pay the excise taxes on liquor, wine, and malt beverages is filed with the Division.

3. Each tax credit cap year.

(c) Taxpayers are eligible to apply during the following periods to receive a credit allocation from each annual tax credit cap for the following taxes as follows:

1. Corporate Income Tax – A taxpayer may make an application for a credit allocation beginning at 9 a.m. on the first day of the calendar year that is not a Saturday, Sunday, or legal holiday for its tax year that begins during that calendar year. The application must be submitted before the date the taxpayer is required to file its corporate income/franchise tax return for that tax year pursuant to Section 220.222, F.S., including a valid extended due date.

a. Example: A calendar year taxpayer may apply for a credit allocation for the 2025-2026 state fiscal year credit beginning on January 2, 2025. The application must be submitted before May 1, 2026; however, if the due date of the taxpayer’s corporate income/franchise tax return is validly extended, the application may be submitted before November 1, 2026.

b. Example: A taxpayer with a tax year beginning December 1, 2025, and ending November 30, 2026, may apply for a credit allocation for the 2025-2026 state fiscal year credit beginning on January 2, 2025. The application must be submitted before April 1, 2027; however, if the due date of the taxpayer’s corporate income/franchise tax return is validly extended, the application may be submitted before October 1, 2027.

2. Insurance Premium Tax – A taxpayer may make an application for a credit allocation beginning at 9 a.m. on the first day of the calendar year that is not a Saturday, Sunday, or legal holiday and before the due date of the insurance premium taxes and fees return, which is March 1 following the taxable year. Example: For the 2025-2026 state fiscal year tax credit cap, a taxpayer may submit an application for a credit allocation beginning on January 3, 2025. The application must be made on or before February 28, 2026.

3. Sales and Use Tax – Tax on Oil and Gas Production – Excise Taxes on Liquor, Wine, and Malt Beverages – A taxpayer may make an application for a credit allocation beginning at 9 a.m. on the first day of the calendar year that is not a Saturday, Sunday, or legal holiday preceding the state fiscal year beginning on July 1 of the calendar year. The application must be made by June 30 of the state fiscal year for which the taxpayer is applying. For example, for a credit allocation for the 2025-2026 state fiscal year, taxpayers may apply for a credit allocation beginning on January 2, 2025. The application must be made on or before June 30, 2026.

(d) The Department will accept applications until either the tax credit cap is reached or until the end of the state fiscal year for sales and use tax, the tax on oil and gas production, and the excise taxes on liquor, wine, and malt beverages; until on or before the day the taxpayer’s insurance premium tax return is due; or until the day before the due date of the taxpayer’s corporate income/franchise tax return for corporate income tax, whichever occurs first.

(4) Notification.

(a) The Department will approve credit allocations on a first-come, first-served basis. Following receipt of an application, the Department will send written correspondence regarding the amount of the credit allocation for each tax applied for, or the reason the credit allocation could not be approved. For excise tax on liquor, wine, and malt beverages, the Division must approve the credit allocation before the Department will issue such correspondence.

(b) When the Department is not able to approve an application, a letter explaining the reason for the denial will be mailed to the taxpayer. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S. The Department will reserve the denied amount of the allocation for the taxpayer during the protest period.

(c) When approved, the Department’s approval letter will specify the period in which the contribution to the designated eligible charitable organization must be made. Contributions must be made during the period specified in the approval letter. The eligible charitable organization receiving a contribution will issue the taxpayer a certificate of contribution signed by an authorized representative of the eligible charitable organization containing:

1. Contributor’s name;

2. Contributor’s federal identification number;

3. Contributor’s license number issued by the Division, if applicable;

4. Amount of contribution;

5. Date of contribution; and,

6. Name of the eligible charitable organization.

(d) The amount of tax credit claimed on a tax return is limited to the amount of contribution contained in the certificate of contribution issued by the eligible charitable organization. The taxpayer must make the contribution before the credit is claimed on a tax return.

(e) No tax credit will be allowed when a taxpayer:

1. Fails to make the designated contribution;

2. Fails to make a contribution before claiming the tax credit on a tax return;

3. Claims the credit against tax due prior to the date the contribution is made;

4. Makes a contribution to an ineligible charitable organization; or

5. Makes the contribution outside the period specified in the Department’s approval letter.

(f) When a charitable organization is unable to accept the taxpayer’s contribution, or a part of the contribution, because of its obligations under the Strong Families Tax Credit program, the taxpayer may make a contribution or partial contribution to another eligible charitable organization. The eligible charitable organization unable to accept the taxpayer’s contribution must provide a written statement to the taxpayer declining the contribution. The taxpayer is required to keep the written statement with its books and records.

(5) Tax Credits.

(a)1. Corporate Income Tax – A tax credit of 100 percent of the contribution against any corporate income tax due for the tax year is allowed. The amount of the tax credit for a tax year:

a. Is taken in the order of the credits provided against the corporate income tax in Section 220.02(8), F.S.

b. Must be reduced by the difference in federal corporate income tax due computed with the credit and without the credit.

c. Must be added back to taxable income in determining Florida corporate income tax due. If the amount of a credit taken under Section 220.1877, F.S., is added to federal taxable income on the Florida corporate income/franchise tax return in a previous tax year and is taken as a deduction for federal tax purposes in the current tax year, the amount of the federal deduction is not required to be added to federal taxable income on the Florida corporate income/franchise tax return in the current year. This provision ensures that the amount of the credit taken under Section 220.1877, F.S., is added to federal taxable income in the applicable tax year and does not result in a duplicate addition in a subsequent tax year.

d. Is revoked and rescinded when a taxpayer applies for a credit allocation after timely requesting an extension of time in which to file its Florida corporate income/franchise tax return and fails to remit sufficient tentative tax, such that its extension is not valid under Sections 220.222 and 220.32, F.S.

2. Taxpayers must attach a copy of the certificate of contribution from the eligible charitable organization to the Florida corporate income/franchise tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(b)1. Insurance Premium Tax – A tax credit of 100 percent of the contribution against any insurance premium tax due under Section 624.509(1), F.S., for the tax year is allowed. The amount of the tax credit for a tax year is limited to the insurance premium tax due after deducting:

a. Assessments made pursuant to Section 440.51, F.S. (workers’ compensation administrative assessments);

b. Credits for taxes paid under Sections 175.101 and 185.08, F.S. (firefighters’ and police officers’ pension trust funds); and,

c. Credits for income taxes paid under Chapter 220, F.S., and the salary credit allowed under Section 624.509(5), F.S., as these are limited by Section 624.509(6), F.S. (the 65 percent limitation).

2. The tax credit allowed against insurance premium tax due is taken directly after the salary tax credit under Section 624.509(5), F.S.

3. Taxpayers must attach a copy of the certificate of contribution from the eligible charitable organization to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(c)1. Sales and Use Tax – A tax credit of 100 percent of the contribution is allowed against any state sales and use tax due self-accrued and paid directly to the Department in accordance with a valid Sales and Use Tax Direct Pay Permit issued by the Department.

2.a. Taxpayers must submit a copy of the certificate of contribution from the eligible charitable organization to the Department by email at CreditTrackingGroup@floridarevenue.com or by mail to:

Florida Department of Revenue

Revenue Accounting

P.O. Box 6609

Tallahassee, FL 32314-6609

b. Following receipt of the copy of the certificate, the Department will send written instructions on how to claim the credit allocation as a tax credit on a sales and use tax return remitted to the Department by electronic means.

(d)1. Tax on Oil and Gas Production – A tax credit of 100 percent of the contribution is allowed against any tax due on oil or gas production in Florida imposed under Sections 211.02 and 211.025, F.S.

2. The tax credit may not exceed 50 percent of the tax due on the return on which the tax credit is taken. If a taxpayer has earned tax credits under Section 1002.395, F.S. (Florida Tax Credit Scholarship Program), Section 402.62, F.S. (Strong Families Tax Credit), and Section 1003.485, F.S. (The New Worlds Reading Initiative), the credit under Section 1002.395, F.S., will be applied first; the credit under Section 402.62, F.S., will be applied second; and the credit under Section 1003.485, F.S., will be applied third, as applicable, until the 50 percent limit is reached.

3. Taxpayers must attach a copy of the certificate of contribution from the eligible charitable organization to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(e)1. Excise Tax on Liquor, Wine, and Malt Beverages – A tax credit of 100 percent of the contribution is allowed against the following taxes administered by the Division.

a. Excise tax on liquor beverages imposed under Section 565.12, F.S.;

b. Excise tax on wine beverages imposed under Section 564.06, F.S., except excise taxes imposed on wine produced by manufacturers in Florida from products grown in Florida; or

c. Excise tax on malt beverages imposed under Section 563.05, F.S.

2. The tax credit taken on a return filed with the Division is limited to 90 percent of the tax due on the return. Taxpayers must attach a copy of the certificate of contribution from the eligible charitable organization to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(f) Contributions to the eligible charitable organization are not payments of estimated tax or installment payments of tax. However, credits earned for contributions to the eligible charitable organization for corporate income tax or insurance premium tax will be taken into account when determining the estimated payment amounts required to meet the prior year exceptions for each tax. Cross reference: Rules 12C-1.034 and 12B-8.001, F.A.C.

(6) Carryforward of unused credits.

(a) When a taxpayer is unable to use a tax credit during the period specified by the Department in the approval letter, because the taxpayer’s liability is insufficient, the taxpayer may carry forward the unused tax credit amount for a period not to exceed ten years.

(b) Examples.

1. Corporate Income Tax Example – A calendar year taxpayer applied for and was approved for a credit allocation against corporate income tax for the tax year ending December 31, 2022. Any unused carryforward from its tax year ending December 31, 2022, expires on the due date pursuant to Section 220.222, F.S., for the Florida corporate income/franchise tax return for the taxable year ending December 31, 2032.

2. Insurance Premium Tax Example – A taxpayer applied for and was approved for a credit allocation against insurance premium tax due for calendar year 2022. Any unused carryforward from its tax year ending December 31, 2022, expires on December 31, 2032.

3. Sales and Use Tax Example – A taxpayer who holds a Sales and Use Tax Direct Pay Permit applied for and was approved for a credit allocation against sales and use tax due to the Department for the state fiscal year 2022-2023. The taxpayer paid the contribution to the eligible charitable organization on July 13, 2022, and submitted a copy of the certificate of contribution received from the eligible charitable organization to the Department. The taxpayer’s state tax liability in accordance with the Permit was insufficient to use the entire credit allocation on sales and use tax returns filed with the Department on or before June 30, 2023. Any unused carryforward from the 2022-2023 state fiscal year expires June 30, 2033.

4. Tax on Oil and Gas Production – The same application periods and credit carryforward periods that apply to a sales and use tax credit allocation apply to a credit allocation against the tax on oil and gas production.

5. Excise Taxes on Liquor, Wine, and Malt Beverages Example – A taxpayer who holds a liquor license issued by the Division applied for and was approved for a credit allocation against the liquor excise tax for returns due during the state fiscal year 2022-2023. The taxpayer’s liability was insufficient to use the entire credit allocation during that state fiscal year. Any unused carryforward from the 2022-2023 state fiscal year expires June 30, 2033.

(7) Transfers of unused tax credits.

(a) A taxpayer may not convey, assign, or transfer a credit allocation or tax credit to another entity unless all of the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction. However, the following credit allocations or tax credits may be transferred between members of the same affiliated group of corporations:

1. A tax credit allocation for which a contribution has not been made to the eligible charitable organization by the transferring member. The receiving member must make a contribution to the eligible charitable organization during the same period that the transferring member was required to make the contribution. In addition, the contribution must be made before the receiving member may claim the tax credit.

2. A tax credit allocation for which a contribution has been made to the eligible charitable organization by the transferring member, but the tax credit has not been claimed on a tax return.

3. A carryforward tax credit amount that has not been claimed on a tax return.

(b) A transferred credit allocation or tax credit may only be used against the same tax as the original credit allocation or tax credit approved by the Department.

(c) A transferred tax credit may only be taken by the receiving member of the affiliated group during the same period that the transferring member was approved to take the credit.

(d) A transferred carryforward amount may only be taken as a tax credit during the same time period as the transferring member was authorized to take the carryforward tax credit amount.

(e)1. A taxpayer must notify the Department of its intent to transfer a credit allocation or tax credit to another member of its affiliated group by submitting Strong Families Tax Credit – Notice of Intent to Transfer a Tax Credit (Form DR-226200, incorporated by reference in Rule 12-29.003, F.A.C.). A separate notice must be submitted for each member of an affiliated group of corporations receiving a transfer.

2. Taxpayers must submit an application for transfer of any unused credit allocation or tax credit to the Department by email at CreditTrackingGroup@floridarevenue.com or by mail to:

Florida Department of Revenue

Revenue Accounting

P.O. Box 6609

Tallahassee, FL 32314-6609

(f) The Department must approve the application for transfer of the unused credit allocation or tax credit before the receiving member may claim the tax credit on a tax return. For excise tax on liquor, wine, and malt beverages, the Division must also approve the transfer before the receiving member may claim the tax credit on a tax return.

(g) Following receipt of an application, the Department will send written correspondence approving the transfer or providing the reason the transfer could not be approved. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S.

(h) If the transfer is approved, a copy of the approval letter will be sent to both the transferring member and the receiving member. The approval letter will include instructions on how the receiving member may claim the tax credit on a tax return.

(8) Rescindment of unused tax credits.

(a) The rescindment provision allows credit allocations that will not be used by the taxpayer to be reallocated to other taxpayers who may use the credit allocation. Taxpayers must apply online using the Department’s website at floridarevenue.com/taxes/multitaxcredits or submit Strong Families Tax Credit – Application for Rescindment of Previous Allocation of Tax Credit (Form DR-226100, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department to rescind all or a portion of an unused credit allocation. See paragraph (3)(a) for submitting the application to the Department.

(b) An application for rescindment of the unused credit allocation by the Department will not be approved when:

1. The amount of credit allocation requested to be rescinded has been claimed as a credit on a previously filed return; or

2. The allocation year is closed for all taxpayers. The allocation period for a calendar year is closed for all taxes and all taxpayers on October 1 of the third year following the January 1 opening of the allocation period, regardless of whether the annual tax credit cap has been reached. For example, the allocation period beginning January 1, 2022, for the state fiscal year beginning July 1, 2022, closes for all taxpayers on October 1, 2024.

(c) Following receipt of an application, the Department will send written correspondence regarding the amount of the rescindment, or the reason rescindment could not be approved. For excise tax on liquor, wine, and malt beverages, the Division must approve the rescindment before the Department will issue such correspondence. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S.

(d) When the approval of a rescindment allows the tax credit cap for a state fiscal year to be reopened and available for allocation, the Department will notify the eligible charitable organization that the tax credit cap is available for allocation.

History

• Rulemaking Authority 213.06(1), 402.62(7)(b) FS. Law Implemented 211.0253, 212.1834, 213.37, 220.1877, 402.62(5), 561.1213, 624.51057 FS. History–New 5-23-22, Amended 2-20-25.

Fla. Admin. Code R. 12-29.005 The New Worlds Reading Initiative; Participation; Allocation; Carryforward; Transfer; Rescindment

(1) Definitions. For purpose of this rule, the following terms mean:

(a) “Administrator” means the University of Florida Lastinger Center for Learning.

(b) “Affiliated group of corporations” is given the same meaning as the definition provided in Section 220.03(1)(b), F.S.

(c) “Contribution” or “eligible contribution” means a monetary contribution from a taxpayer to the administrator.

(d) “Credit allocation” means an allocation to a taxpayer of an annual tax credit cap authorized under the New Worlds Reading Initiative.

(e) “Department” means the Florida Department of Revenue.

(f) “Division” means the Division of Alcoholic Beverages and Tobacco of the Department of Business and Professional Regulation.

(g) “State fiscal year” means the annual period beginning July 1 through June 30 of the following year.

(h) “Tax credit cap” means the maximum annual tax credit amount that the Department is authorized by Section 1003.485, F.S., to allocate.

(2) Taxpayers eligible to participate in the program. Taxpayers who pay any of the following taxes may apply to the Department for a credit allocation:

(a) For the taxes administered by the Department:

1. Florida corporate income tax imposed under Chapter 220, F.S.

2. Florida insurance premium tax imposed under Section 624.509, F.S.

3. Florida state sales and use tax self-accrued and paid directly to the Department in accordance with a valid Sales and Use Tax Direct Pay Permit, issued by the Department, as provided in Section 212.183, F.S., and Rule 12A-1.0911, F.A.C.

4. Florida oil production tax imposed under Section 211.02, F.S., or Florida gas production tax imposed under Section 211.025, F.S.

(b) For excise taxes administered by the Division:

1. Excise tax on liquor beverages imposed under Section 565.12, F.S.;

2. Excise tax on wine beverages imposed under Section 564.06, F.S., except excise taxes imposed on wine produced by manufacturers in Florida from products grown in Florida; or,

3. Excise tax on malt beverages imposed under Section 563.05, F.S.

(3) Applications for credit allocations.

(a) To apply for an allocation of the available program credits, taxpayers must submit The New Worlds Reading Initiative – Application for Tax Credit Allocation for Contributions to the Administrator (Form DR-336000, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department.

1. Taxpayers required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and Rule Chapter 12-24, F.A.C., must apply online using the Department’s website. When the application is completed and submitted online, a confirmation number will be provided with the date and time of submission.

2. The fastest and easiest way to apply for an allocation is online at floridarevenue.com/taxes/multitaxcredits. Taxpayers who are not required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and rule Chapter 12-24, F.A.C., may also apply by submitting a paper application with the Department.

(b) A separate application to receive a credit allocation is required for:

1. Each beverage license issued by the Division for which a separate return to report and pay the excise taxes on liquor, wine, and malt beverages is filed with the Division.

2. Each tax credit cap year.

(c) Taxpayers are eligible to apply during the following periods to receive a credit allocation from each annual tax credit cap for the following taxes as follows:

1. Corporate Income Tax – A taxpayer may make an application for a credit allocation on the first business day of January of each calendar year for its tax year that begins during that calendar year. The application must be submitted before the date the taxpayer is required to file its corporate income/franchise tax return for that tax year pursuant to Section 220.222, F.S., including a valid extended due date.

a. Example: A calendar year taxpayer may apply for a credit allocation for the 2022-2023 state fiscal year credit beginning on January 3, 2022. The application must be submitted before May 1, 2023; however, if the due date of the taxpayer’s corporate income/franchise tax return is validly extended, the application may be submitted before November 1, 2023.

b. Example: A taxpayer with a tax year beginning December 1, 2022, and ending November 30, 2023, may apply for a credit allocation for the 2022-2023 state fiscal year credit beginning on January 3, 2022. The application must be submitted before April 1, 2024; however, if the due date of the taxpayer’s corporate income/franchise tax return is validly extended, the application may be submitted before October 1, 2024.

2. Insurance Premium Tax – A taxpayer may make an application for a credit allocation on the first business day of January of each calendar year and before the due date of the insurance premium taxes and fees return, which is March 1 following the taxable year. Example: For the 2022-2023 state fiscal year tax credit cap, a taxpayer may submit an application for a credit allocation beginning on January 3, 2022. The application must be made on or before February 28, 2023.

3. Sales and Use Tax – Tax on Oil and Gas Production – Excise Taxes on Liquor, Wine, and Malt Beverages – A taxpayer may make an application for a credit allocation on the first business day of January of the calendar year preceding the state fiscal year beginning on July 1 of the calendar year. The application must be made by June 30 of the state fiscal year for which the taxpayer is applying. For example, for a credit allocation for the 2022-2023 state fiscal year, taxpayers may apply for a credit allocation beginning on January 3, 2022. The application must be made on or before June 30, 2023.

(d) The Department will accept applications until either the tax credit cap is reached or until the end of the state fiscal year for sales and use tax, the tax on oil and gas production, and the excise taxes on liquor, wine, and malt beverages; until on or before the day the taxpayer’s insurance premium tax return is due; or until the day before the due date of the taxpayer’s corporate income/franchise tax return for corporate income tax, whichever occurs first.

(4) Notification.

(a) The Department will approve credit allocations on a first-come, first-served basis. Following receipt of an application, the Department will send written correspondence regarding the amount of the credit allocation for each tax applied for, or the reason the credit allocation could not be approved. For excise tax on liquor, wine, and malt beverages, the Division must approve the credit allocation before the Department will issue such correspondence.

(b) When the Department is not able to approve an application, a letter explaining the reason for the denial will be mailed to the taxpayer. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S. The Department will reserve the denied amount of the allocation for the taxpayer during the protest period.

(c) When approved, the Department’s approval letter will specify the period in which the contribution to the administrator must be made. Contributions must be made during the period specified in the approval letter. The administrator will issue the taxpayer a certificate of contribution signed by an authorized representative of the administrator containing:

1. Contributor’s name;

2. Contributor’s federal identification number;

3. Contributor’s license number issued by the Division, if applicable;

4. Amount of contribution;

5. Date of contribution; and,

6. Name of the administrator.

(d) The amount of tax credit claimed on a tax return is limited to the amount of contribution contained in the certificate of contribution issued by the administrator. The taxpayer must make the contribution before the credit is claimed on a tax return.

(e) No tax credit will be allowed when a taxpayer:

1. Fails to make the designated contribution;

2. Fails to make a contribution before claiming the tax credit on a tax return;

3. Claims the credit against tax due prior to the date the contribution is made; or

4. Makes the contribution outside the period specified in the Department’s approval letter.

(5) Tax Credits.

(a)1. Corporate Income Tax – A tax credit of 100 percent of the contribution against any corporate income tax due for the tax year is allowed. The amount of the tax credit for a tax year:

a. Is taken in the order of the credits provided against the corporate income tax in Section 220.02(8), F.S.

b. Must be reduced by the difference in federal corporate income tax due computed with the credit and without the credit.

c. Must be added back to taxable income in determining Florida corporate income tax due. If the amount of a credit taken under Section 220.1876, F.S., is added to federal taxable income on the Florida corporate income/franchise tax return in a previous tax year and is taken as a deduction for federal tax purposes in the current tax year, the amount of the federal deduction is not required to be added to federal taxable income on the Florida corporate income/franchise tax return in the current year. This provision ensures that the amount of the credit taken under Section 220.1876, F.S., is added to federal taxable income in the applicable tax year and does not result in a duplicate addition in a subsequent tax year.

d. Is revoked and rescinded when a taxpayer applies for a credit allocation after timely requesting an extension of time in which to file its Florida corporate income/franchise tax return and fails to remit sufficient tentative tax, such that its extension is not valid under Sections 220.222 and 220.32, F.S.

2. Taxpayers must attach a copy of the certificate of contribution from the administrator to the Florida corporate income/franchise tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(b)1. Insurance Premium Tax – A tax credit of 100 percent of the contribution against any insurance premium tax due under Section 624.509(1), F.S., for the tax year is allowed. The amount of the tax credit for a tax year is limited to the insurance premium tax due after deducting:

a. Assessments made pursuant to Section 440.51, F.S. (workers’ compensation administrative assessments);

b. Credits for taxes paid under Sections 175.101 and 185.08, F.S. (firefighters’ and police officers’ pension trust funds);

c. Credits for income taxes paid under Chapter 220, F.S., and the salary credit allowed under Section 624.509(5), F.S., as these are limited by Section 624.509(6), F.S. (the 65 percent limitation);

d. The amount of the Strong Families Tax Credit under Section 624.51057, F.S., the amount of the Live Local Program credit under Section 624.51058, F.S., the amount of the Child Care Tax Credits Program credit under Section 624.5107, F.S., the amount of the Home Away From Home Tax Credit under Section 624.51059, F.S., the amount of the Rural Community Investment Program credit under Section 288.062, F.S., and the amount of the Florida Tax Credit Scholarship Program credit under Section 624.51055, F.S.

2. Taxpayers must attach a copy of the certificate of contribution from the administrator to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(c)1. Sales and Use Tax – A tax credit of 100 percent of the contribution is allowed against any state sales and use tax due self-accrued and paid directly to the Department in accordance with a valid Sales and Use Tax Direct Pay Permit issued by the Department.

2.a. Taxpayers must submit a copy of the certificate of contribution from the administrator to the Department by email at CreditTrackingGroup@floridarevenue.com or by mail to:

Florida Department of Revenue

Revenue Accounting

P.O. Box 6609

Tallahassee, FL 32314-6609

b. Following receipt of the copy of the certificate, the Department will send written instructions on how to claim the credit allocation as a tax credit on a sales and use tax return remitted to the Department by electronic means.

(d)1. Tax on Oil and Gas Production – A tax credit of 100 percent of the contribution is allowed against any tax due on oil or gas production in Florida imposed under Sections 211.02 and 211.025, F.S.

2. The tax credit may not exceed 50 percent of the tax due on the return on which the tax credit is taken. If a taxpayer has earned tax credits under Section 1002.395, F.S. (Florida Tax Credit Scholarship Program), Section 402.62, F.S. (Strong Families Tax Credit), and Section 1003.485, F.S. (The New Worlds Reading Initiative), the credit under Section 1002.395, F.S., will be applied first; the credit under Section 402.62, F.S., will be applied second; and the credit under Section 1003.485, F.S., will be applied third, as applicable, until the 50 percent limit is reached.

3. Taxpayers must attach a copy of the certificate of contribution from the administrator to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(e)1. Excise Tax on Liquor, Wine, and Malt Beverages – A tax credit of 100 percent of the contribution is allowed against the following taxes administered by the Division.

a. Excise tax on liquor beverages imposed under Section 565.12, F.S.;

b. Excise tax on wine beverages imposed under Section 564.06, F.S., except excise taxes imposed on wine produced by manufacturers in Florida from products grown in Florida; or

c. Excise tax on malt beverages imposed under Section 563.05, F.S.

2. The tax credit taken on a return filed with the Division is limited to 90 percent of the tax due on the return. Taxpayers must attach a copy of the certificate of contribution from the administrator to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(f) Contributions to the administrator are not payments of estimated tax or installment payments of tax. However, credits earned for contributions to the administrator for corporate income tax or insurance premium tax will be taken into account when determining the estimated payment amounts required to meet the prior year exceptions for each tax. Cross reference: Rules 12C-1.034 and 12B-8.001, F.A.C.

(6) Carryforward of unused credits.

(a) When a taxpayer is unable to use a tax credit during the period specified by the Department in the approval letter, because the taxpayer’s liability is insufficient, the taxpayer may carry forward the unused tax credit amount for a period not to exceed ten years.

(b) Examples.

1. Corporate Income Tax Example – A calendar year taxpayer applied for and was approved for a credit allocation against corporate income tax for the tax year ending December 31, 2022. Any unused carryforward from its tax year ending December 31, 2022, expires on the due date pursuant to Section 220.222, F.S., for the Florida corporate income/franchise tax return for the taxable year ending December 31, 2032.

2. Insurance Premium Tax Example – A taxpayer applied for and was approved for a credit allocation against insurance premium tax due for calendar year 2022. Any unused carryforward from its tax year ending December 31, 2022, expires on December 31, 2032.

3. Sales and Use Tax Example – A taxpayer who holds a Sales and Use Tax Direct Pay Permit applied for and was approved for a credit allocation against sales and use tax due to the Department for the state fiscal year 2022-2023. The taxpayer paid the contribution to the administrator on July 13, 2022, and submitted a copy of the certificate of contribution received from the administrator to the Department. The taxpayer’s state tax liability in accordance with the Permit was insufficient to use the entire credit allocation on sales and use tax returns filed with the Department on or before June 30, 2023. Any unused carryforward from the 2022-2023 state fiscal year expires June 30, 2033.

4. Tax on Oil and Gas Production – The same application periods and credit carryforward periods that apply to a sales and use tax credit allocation apply to a credit allocation against the tax on oil and gas production.

5. Excise Taxes on Liquor, Wine, and Malt Beverages Example – A taxpayer who holds a liquor license issued by the Division applied for and was approved for a credit allocation against the liquor excise tax for returns due during the state fiscal year 2022-2023. The taxpayer’s liability was insufficient to use the entire credit allocation during that state fiscal year. Any unused carryforward from the 2022-2023 state fiscal year expires June 30, 2033.

(7) Transfers of unused tax credits.

(a) A taxpayer may not convey, assign, or transfer a credit allocation or tax credit to another entity unless all of the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction. However, the following credit allocations or tax credits may be transferred between members of the same affiliated group of corporations:

1. A tax credit allocation for which a contribution has not been made to the administrator by the transferring member. The receiving member must make a contribution to the administrator during the same period that the transferring member was required to make the contribution. In addition, the contribution must be made before the receiving member may claim the tax credit.

2. A tax credit allocation for which a contribution has been made to the administrator by the transferring member, but the tax credit has not been claimed on a tax return.

3. A carryforward tax credit amount that has not been claimed on a tax return.

(b) A transferred credit allocation or tax credit may only be used against the same tax as the original credit allocation or tax credit approved by the Department.

(c) A transferred tax credit may only be taken by the receiving member of the affiliated group during the same period that the transferring member was approved to take the credit.

(d) A transferred carryforward amount may only be taken as a tax credit during the same time period as the transferring member was authorized to take the carryforward tax credit amount.

(e)1. A taxpayer must notify the Department of its intent to transfer a credit allocation or tax credit to another member of its affiliated group by submitting The New Worlds Reading Initiative – Notice of Intent to Transfer a Tax Credit (Form DR-336200, incorporated by reference in Rule 12-29.003, F.A.C.). A separate notice must be submitted for each member of an affiliated group of corporations receiving a transfer.

2. Taxpayers must submit an application for transfer of any unused credit allocation or tax credit to the Department by email at CreditTrackingGroup@floridarevenue.com or by mail to:

Florida Department of Revenue

Revenue Accounting

P.O. Box 6609

Tallahassee, FL 32314-6609

(f) The Department must approve the application for transfer of the unused credit allocation or tax credit before the receiving member may claim the tax credit on a tax return. For excise tax on liquor, wine, and malt beverages, the Division must also approve the transfer before the receiving member may claim the tax credit on a tax return.

(g) Following receipt of an application, the Department will send written correspondence approving the transfer or providing the reason the transfer could not be approved. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S.

(h) If the transfer is approved, a copy of the approval letter will be sent to both the transferring member and the receiving member. The approval letter will include instructions on how the receiving member may claim the tax credit on a tax return.

(8) Rescindment of unused tax credits.

(a) The rescindment provision allows credit allocations that will not be used by the taxpayer to be reallocated to other taxpayers who may use the credit allocation. Taxpayers must apply online using the Department’s website at floridarevenue.com or submit The New Worlds Reading Initiative – Application for Rescindment of Previous Allocation of Tax Credit (Form DR-336100, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department to rescind all or a portion of an unused credit allocation. See paragraph (3)(a) for submitting the application to the Department.

(b) An application for rescindment of the unused credit allocation by the Department will not be approved when:

1. The amount of credit allocation requested to be rescinded has been claimed as a credit on a previously filed return; or

2. The allocation year is closed for all taxpayers. The allocation period for a calendar year is closed for all taxes and all taxpayers on October 1 of the third year following the January 1 opening of the allocation period, regardless of whether the annual tax credit cap has been reached. For example, the allocation period beginning January 1, 2022, for the state fiscal year beginning July 1, 2022, closes for all taxpayers on October 1, 2024.

(c) Following receipt of an application, the Department will send written correspondence regarding the amount of the rescindment, or the reason rescindment could not be approved. For excise tax on liquor, wine, and malt beverages, the Division must approve the rescindment before the Department will issue such correspondence. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S.

(d) When the approval of a rescindment allows the tax credit cap for a state fiscal year to be reopened and available for allocation, the Department will notify the administrator that the tax credit cap is available for allocation.

History

• Rulemaking Authority 213.06(1), 288.062, 402.261(7), 402.63, 420.50872(5), 1002.395(12)(b), 1003.485(7)(b) FS. Law Implemented 211.0252, 212.1833, 213.053, 213.37, 220.1876, 220.18775, 288.0001, 288.062, 402.261, 402.62(5), 402.63, 420.50872, 561.1212, 561.12135, 624.509(7), 624.51056, 624.51059, 1002.395(5), 1003.485(5) FS. History–New 5-23-22, Amended 1-1-24, 2-20-25, 1-1-26.

Fla. Admin. Code R. 12-29.006 Live Local Program; Participation; Allocation; Carryforward; Transfer; Rescindment

(1) Definitions. For purpose of this rule, the following terms mean:

(a) “Corporation” means the Florida Housing Finance Corporation as defined in Section 420.0004, F.S., and designated to administer the Live Local Program.

(b) “Affiliated group of corporations” is given the same meaning as the definition provided in Section 220.03(1)(b), F.S.

(c) “Contribution” or “eligible contribution” means a monetary contribution from a taxpayer to the corporation.

(d) “Credit allocation” means an allocation to a taxpayer of an annual tax credit cap authorized under the Live Local Program.

(e) “State fiscal year” means the annual period beginning July 1 through June 30 of the following year.

(f) “Tax credit cap” means the maximum annual tax credit amount that the Department is authorized by Section 420.50872, F.S., to allocate.

(2) Taxpayers eligible to participate in the program. Taxpayers who pay any of the following taxes may apply to the Department for a credit allocation:

(a) Florida corporate income tax imposed under Chapter 220, F.S.

(b) Florida insurance premium tax imposed under Section 624.509, F.S.

(3) Applications for credit allocations.

(a) To apply for an allocation of the available program credits, taxpayers must submit a Live Local Program – Application for Tax Credit Allocation for Contributions to the Florida Housing Finance Corporation (Form DR-446000, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department.

1. Taxpayers required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and Rule Chapter 12-24, F.A.C., must apply online using the Department’s website. When the application is completed and submitted online, a confirmation number will be provided with the date and time of submission.

2. The fastest and easiest way to apply for an allocation is online at floridarevenue.com/taxes/multitaxcredits. Taxpayers who are not required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and Rule Chapter 12-24, F.A.C., may also apply by submitting a paper application with the Department.

(b) A separate application to receive a credit allocation is required for each tax credit cap year.

(c) Taxpayers are eligible to apply during the following periods to receive a credit allocation from each annual tax credit cap for the following taxes as follows:

1. Corporate Income Tax – A taxpayer may make an application for a credit allocation on the first business day of January of each calendar year for its tax year that begins during that calendar year. The application must be submitted before the date the taxpayer is required to file its corporate income/franchise tax return for that tax year pursuant to Section 220.222, F.S., including a valid extended due date.

a. Example: A calendar year taxpayer may apply for a credit allocation for the 2024-2025 state fiscal year credit beginning on January 2, 2024. The application must be submitted before May 1, 2025; however, if the due date of the taxpayer’s corporate income/franchise tax return is validly extended, the application may be submitted before November 1, 2025.

b. Example: A taxpayer with a tax year beginning December 1, 2024, and ending November 30, 2025, may apply for a credit allocation for the 2024-2025 state fiscal year credit beginning on January 2, 2024. The application must be submitted before April 1, 2026; however, if the due date of the taxpayer’s corporate income/franchise tax return is validly extended, the application may be submitted before October 1, 2026.

2. Insurance Premium Tax – A taxpayer may make an application for a credit allocation on the first business day of January of each calendar year and before the due date of the insurance premium taxes and fees return, which is March 1 following the taxable year. Example: For the 2024-2025 state fiscal year tax credit cap, a taxpayer may submit an application for a credit allocation beginning on January 2, 2024. The application must be made on or before February 28, 2025.

(d) The Department will accept applications until either the tax credit cap is reached or until on or before the day the taxpayer’s insurance premium tax return is due; or until the day before the due date of the taxpayer’s corporate income/franchise tax return for corporate income tax, whichever occurs first.

(4) Notification.

(a) The Department will approve credit allocations on a first-come, first-served basis. Following receipt of an application, the Department will send written correspondence regarding the amount of the credit allocation for each tax applied for, or the reason the credit allocation could not be approved.

(b) When the Department is not able to approve an application, a letter explaining the reason for the denial will be mailed to the taxpayer. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S. The Department will reserve the denied amount of the allocation for the taxpayer during the protest period.

(c) When approved, the Department’s approval letter will specify the period in which the contribution to the corporation must be made. Contributions must be made during the period specified in the approval letter. The corporation will issue the taxpayer a certificate of contribution signed by an authorized representative of the corporation containing:

1. Contributor’s name;

2. Contributor’s federal identification number, if available;

3. Amount of contribution; and

4. Date of contribution.

(d) The amount of tax credit claimed on a tax return is limited to the amount of contribution contained in the certificate of contribution issued by the corporation. The taxpayer must make the contribution before the credit is claimed on a tax return.

(e) No tax credit will be allowed when a taxpayer:

1. Fails to make the designated contribution;

2. Fails to make a contribution before claiming the tax credit on a tax return;

3. Claims the credit against tax due prior to the date the contribution is made; or

4. Makes the contribution outside the period specified in the Department’s approval letter.

(5) Tax Credits.

(a)1. Corporate Income Tax – A tax credit of 100 percent of the contribution against any corporate income tax due for the tax year is allowed. The amount of the tax credit for a tax year:

a. Is taken in the order of the credits provided against the corporate income tax in Section 220.02(8), F.S.

b. Must be reduced by the difference in federal corporate income tax due computed with the credit and without the credit.

c. Must be added back to taxable income in determining Florida corporate income tax due. If the amount of a credit taken under Section 220.1878, F.S., is added to federal taxable income on the Florida corporate income/franchise tax return in a previous tax year and is taken as a deduction for federal tax purposes in the current tax year, the amount of the federal deduction is not required to be added to federal taxable income on the Florida corporate income/franchise tax return in the current year. This provision ensures that the amount of the credit taken under Section 220.1878, F.S., is added to federal taxable income in the applicable tax year and does not result in a duplicate addition in a subsequent tax year.

d. Is revoked and rescinded when a taxpayer applies for a credit allocation after timely requesting an extension of time in which to file its Florida corporate income/franchise tax return and fails to remit sufficient tentative tax, such that its extension is not valid under Sections 220.222 and 220.32, F.S.

2. Taxpayers must attach a copy of the certificate of contribution from the corporation to the Florida corporate income/franchise tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(b)1. Insurance Premium Tax – A tax credit of 100 percent of the contribution against any insurance premium tax due under Section 624.509(1), F.S., for the tax year is allowed. The amount of the tax credit for a tax year is limited to the insurance premium tax due after deducting:

a. Assessments made pursuant to Section 440.51, F.S. (workers’ compensation administrative assessments);

b. Credits for taxes paid under Sections 175.101 and 185.08, F.S. (firefighters’ and police officers’ pension trust funds);

c. Credits for income taxes paid under Chapter 220, F.S., and the salary credit allowed under Section 624.509(5), F.S., as these are limited by Section 624.509(6), F.S. (the 65 percent limitation); and

d. The amount of the Strong Families Tax Credit under Section 624.51057, F.S.

2. Taxpayers must attach a copy of the certificate of contribution from the corporation to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(c) Contributions to the corporation are not payments of estimated tax or installment payments of tax. However, credits earned for contributions to the corporation for corporate income tax or insurance premium tax will be taken into account when determining the estimated payment amounts required to meet the prior year exceptions for each tax. Cross reference: Rules 12C-1.034 and 12B-8.001, F.A.C.

(6) Carryforward of unused credits.

(a) When a taxpayer is unable to use a tax credit during the period specified by the Department in the approval letter, because the taxpayer’s liability is insufficient, the taxpayer may carry forward the unused tax credit amount for a period not to exceed ten years.

(b) Examples.

1. Corporate Income Tax Example – A calendar year taxpayer applied for and was approved for a credit allocation against corporate income tax for the tax year ending December 31, 2024. Any unused carryforward from its tax year ending December 31, 2024, expires on the due date pursuant to Section 220.222, F.S., for the Florida corporate income/franchise tax return for the taxable year ending December 31, 2034.

2. Insurance Premium Tax Example – A taxpayer applied for and was approved for a credit allocation against insurance premium tax due for calendar year 2024. Any unused carryforward from its tax year ending December 31, 2024, expires on December 31, 2034.

(7) Transfers of unused tax credits.

(a) A taxpayer may not convey, assign, or transfer a credit allocation or tax credit to another entity unless all of the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction. However, the following credit allocations or tax credits may be transferred between members of the same affiliated group of corporations:

1. A tax credit allocation for which a contribution has not been made to the corporation by the transferring member. The receiving member must make a contribution to the corporation during the same period that the transferring member was required to make the contribution. In addition, the contribution must be made before the receiving member may claim the tax credit.

2. A tax credit allocation for which a contribution has been made to the corporation by the transferring member, but the tax credit has not been claimed on a tax return.

3. A carryforward tax credit amount that has not been claimed on a tax return.

(b) A transferred credit allocation or tax credit may only be used against the same tax as the original credit allocation or tax credit approved by the Department.

(c) A transferred tax credit may only be taken by the receiving member of the affiliated group during the same period that the transferring member was approved to take the credit.

(d) A transferred carryforward amount may only be taken as a tax credit during the same time period as the transferring member was authorized to take the carryforward tax credit amount.

(e)1. A taxpayer must notify the Department of its intent to transfer a credit allocation or tax credit to another member of its affiliated group by submitting Live Local Program – Notice of Intent to Transfer a Tax Credit (Form DR-446200, incorporated by reference in Rule 12-29.003, F.A.C.). A separate notice must be submitted for each member of an affiliated group of corporations receiving a transfer.

2. Taxpayers must submit an application for transfer of any unused credit allocation or tax credit to the Department by email at CreditTrackingGroup@floridarevenue.com or by mail to:

Florida Department of Revenue

Revenue Accounting

P.O. Box 6609

Tallahassee, FL 32314-6609

(f) The Department must approve the application for transfer of the unused credit allocation or tax credit before the receiving member may claim the tax credit on a tax return.

(g) Following receipt of an application, the Department will send written correspondence approving the transfer or providing the reason the transfer could not be approved. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S.

(h) If the transfer is approved, a copy of the approval letter will be sent to both the transferring member and the receiving member. The approval letter will include instructions on how the receiving member may claim the tax credit on a tax return.

(8) Rescindment of unused tax credits.

(a) The rescindment provision allows credit allocations that will not be used by the taxpayer to be reallocated to other taxpayers who may use the credit allocation. Taxpayers must apply online using the Department’s website at floridarevenue.com or submit a Live Local Program – Application for Rescindment of Previous Allocation of Tax Credit (Form DR-446100, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department to rescind all or a portion of an unused credit allocation. See paragraph (3)(a) for submitting the application to the Department.

(b) An application for rescindment of the unused credit allocation by the Department will not be approved when:

1. The amount of credit allocation requested to be rescinded has been claimed as a credit on a previously filed return; or

2. The allocation year is closed for all taxpayers. The allocation period for a calendar year is closed for all taxes and all taxpayers on October 1 of the third year following the January 1 opening of the allocation period, regardless of whether the annual tax credit cap has been reached. For example, the allocation period beginning January 1, 2024, for the state fiscal year beginning July 1, 2024, closes for all taxpayers on October 1, 2026.

(c) Following receipt of an application, the Department will send written correspondence regarding the amount of the rescindment, or the reason rescindment could not be approved. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S.

(d) When the approval of a rescindment allows the tax credit cap for a state fiscal year to be reopened and available for allocation, the Department will notify the corporation that the tax credit cap is available for allocation.

History

• Rulemaking Authority 213.06(1), 420.50872 FS. Law Implemented 220.1878, 420.50872, 624.51058 FS. History–New 1-1-24, Amended 2-20-25.

Fla. Admin. Code R. 12-29.007 Child Care Tax Credits Program; Participation; Allocation; Carryforward; Transfer; Rescindment

(1) Definitions. For purpose of this rule, the following terms mean:

(a) “Affiliated group of corporations” is given the same meaning as the definition provided in Section 220.03(1)(b), F.S.

(b) “Credit allocation” means an allocation to a taxpayer of an annual tax credit cap authorized under the Child Care Tax Credits Program.

(c) “Division” means the Division of Alcoholic Beverages and Tobacco of the Department of Business and Professional Regulation.

(d) “Eligible children” means the children or grandchildren of an employee of a taxpayer, if such employee is the child or grandchild’s caregiver as defined in Section 39.01, F.S.

(e) “Eligible child care facility” means a child care facility that is licensed under Section 402.305, F.S., or is exempt from licensure under Section 402.316, F.S.

(f) “State fiscal year” means the annual period beginning July 1 through June 30 of the following year.

(g) “Tax credit cap” means the maximum annual tax credit amount that the Department is authorized by Section 402.261, F.S., to allocate.

(2) Taxpayers eligible to participate in the program. Taxpayers who pay any of the following taxes may apply to the Department for a credit allocation:

(a) For the taxes administered by the Department:

1. Florida corporate income tax imposed under Chapter 220, F.S.

2. Florida insurance premium tax imposed under Section 624.509, F.S.

3. Florida state sales and use tax self-accrued and paid directly to the Department in accordance with a valid Sales and Use Tax Direct Pay Permit, issued by the Department, as provided in Section 212.183, F.S., and Rule 12A-1.0911, F.A.C.

4. Florida oil production tax imposed under Section 211.02, F.S., or Florida gas production tax imposed under Section 211.025, F.S.

(b) For excise taxes administered by the Division:

1. Excise tax on liquor beverages imposed under Section 565.12, F.S.;

2. Excise tax on wine beverages imposed under Section 564.06, F.S., except excise taxes imposed on wine produced by manufacturers in Florida from products grown in Florida; or,

3. Excise tax on malt beverages imposed under Section 563.05, F.S.

(3) Applications for credit allocations.

(a) To apply for an allocation of the available program credits, taxpayers must submit Child Care Tax Credits Program – Application for Tax Credit Allocation (Form DR-556000, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department. Taxpayers applying for an allocation of credit for child care facility startup costs under Section 402.261(2)(a), F.S., or operation of a taxpayer’s eligible child care facility under Section 402.261(2)(b), F.S., must attach Child Care Tax Credits Program – Application for Tax Credit Allocation Eligible Child Care Facility Statement (Form DR-556000A, incorporated by reference in Rule 12-29.003, F.A.C.) to Form DR-556000.

1. Taxpayers required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and Chapter 12-24, F.A.C., must apply online using the Department’s website. When the application is completed and submitted online, a confirmation number will be provided with the date and time of submission.

2. The fastest and easiest way to apply for an allocation is online at floridarevenue.com/taxes/multitaxcredits. Taxpayers who are not required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and Chapter 12-24, F.A.C., may also apply by submitting a paper application with the Department.

3.a. Pursuant to Section 402.261(4)(c), F.S., if two or more taxpayers choose to jointly establish and operate an eligible child care facility, or cause a not-for-profit taxpayer to establish and operate an eligible child care facility, the taxpayers must jointly file Form DR-556000, or the not-for-profit taxpayer may file Form DR-556000. Notwithstanding subparagraph 1., a joint paper application must be filed.

b. A joint paper application for an allocation of credit must be submitted to the Department by email at CreditTrackingGroup@floridarevenue.com or by mail to:

Florida Department of Revenue

Revenue Accounting

P.O. Box 6609

Tallahassee, FL 32314-6609

(b) A separate application to receive a credit allocation is required for:

1. Each tax listed in subsection (2) against which the taxpayer intends to apply any allocation of credit received.

2. Each beverage license issued by the Division for which a separate return to report and pay the excise taxes on liquor, wine, and malt beverages is filed with the Division.

3. Each tax credit cap year.

(c) Taxpayers are eligible to apply during the following periods to receive a credit allocation from each annual tax credit cap for the following taxes as follows:

1. Corporate Income Tax – A taxpayer may make an application for a credit allocation on the first business day of January of each calendar year for its tax year that begins during that calendar year. The credit must be earned before the date the taxpayer is required to file its Florida corporate income/franchise tax return for that tax year pursuant to Section 220.222, F.S., including a valid extended due date.

a. Example: A calendar year taxpayer may apply for a credit allocation for the 2025-2026 state fiscal year credit beginning on January 2, 2025. The credit must be earned before May 1, 2026; however, if the due date of the taxpayer’s Florida corporate income/franchise tax return is validly extended, the credit must be earned before November 1, 2026.

b. Example: A taxpayer with a tax year beginning December 1, 2025, and ending November 30, 2026, may apply for a credit allocation for the 2025-2026 state fiscal year credit beginning on January 2, 2025. The credit must be earned before April 1, 2027; however, if the due date of the taxpayer’s Florida corporate income/franchise tax return is validly extended, the credit must be earned before October 1, 2027.

2. Insurance Premium Tax – A taxpayer may make an application for a credit allocation on the first business day of January of each calendar year and before the due date of the insurance premium taxes and fees return, which is March 1 following the taxable year. The credit must be earned during the taxpayer’s taxable year. Example: For the 2025-2026 state fiscal year tax credit cap, a taxpayer may submit an application for a credit allocation beginning on January 2, 2025. The credit must be earned on or before December 31, 2025.

3. Sales and Use Tax – Tax on Oil and Gas Production – Excise Taxes on Liquor, Wine, and Malt Beverages – A taxpayer may make an application for a credit allocation on the first business day of January of the calendar year preceding the state fiscal year beginning on July 1 of the calendar year. The credit must be earned by June 30 of the state fiscal year for which the taxpayer is applying. For example, for a credit allocation for the 2025-2026 state fiscal year, taxpayers may apply for a credit allocation beginning on January 2, 2025. The credit must be earned by June 30, 2026.

(d) The Department will accept applications until either the tax credit cap is reached or until the end of the state fiscal year for sales and use tax, the tax on oil and gas production, and the excise taxes on liquor, wine, and malt beverages; until on or before the day the taxpayer’s insurance premium tax return is due; or until the day before the due date of the taxpayer’s Florida corporate income/franchise tax return for corporate income tax, whichever occurs first.

(4) Notification.

(a) The Department will approve credit allocations on a first-come, first-served basis. Following receipt of an application, the Department will send written correspondence regarding the amount of the credit allocation for each tax applied for, or the reason the credit allocation could not be approved. For excise tax on liquor, wine, and malt beverages, the Division must approve the credit allocation before the Department will issue such correspondence.

(b) When the Department is not able to approve an application, a letter explaining the reason for the denial will be mailed to the taxpayer. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S. The Department will reserve the denied amount of the allocation for the taxpayer during the protest period.

(c)1. If the amount of credit allocation requested by a taxpayer is subsequently determined to be overstated, the taxpayer may not claim more credit on its tax return than it was allocated by the Department. For example, Taxpayer A requested an allocation of credit of $800,000, based on estimated costs of constructing an eligible child care facility. Later, it was determined Taxpayer A should have only applied for an allocation of $750,000, based on actual eligible child care facility startup costs. Taxpayer A is only entitled to claim a credit of up to $750,000 on its tax return. Taxpayer A may rescind the $50,000 in unused credit allocation so that it may be reallocated to other taxpayers, if such rescindment is made within the timeframes provided in subsection (8).

2. If the amount of credit allocation requested by a taxpayer is later determined to be understated, the taxpayer may not claim more credit on its tax return than it was allocated by the Department. For example, Taxpayer Z submitted Form DR-556000 to the Department, requesting an allocation of credit of $64,800. The request was based on Taxpayer Z making payments to an eligible child care facility in the name and for the benefit of its employees, estimating that it would be paying for child care costs for 18 eligible children. Later, Taxpayer Z determined its allocation request should have been for $72,000, because it actually made payments to an eligible child care facility for 20 eligible children. Taxpayer Z is limited to a credit of $64,800 when it files its tax return.

(5) Tax Credits.

(a)1. Corporate Income Tax – One hundred percent of the credit earned against any corporate income tax due for the tax year is allowed. The amount of the tax credit for a tax year:

a. Is taken in the order of the credits provided against the corporate income tax in Section 220.02(8), F.S.

b. Is revoked and rescinded when a taxpayer applies for a credit allocation after timely requesting an extension of time in which to file its Florida corporate income/franchise tax return and fails to remit sufficient tentative tax, such that its extension is not valid under Sections 220.222 and 220.32, F.S.

2. Taxpayers must attach a copy of the tax credit allocation letter issued by the Department to the Florida corporate income/franchise tax return on which any tax credit is taken.

(b)1. Insurance Premium Tax – One hundred percent of the credit earned against any insurance premium tax due under Section 624.509(1), F.S., for the tax year is allowed. The amount of the tax credit for a tax year is limited to the insurance premium tax due after deducting:

a. Assessments made pursuant to Section 440.51, F.S. (workers’ compensation administrative assessments);

b. Credits for taxes paid under Sections 175.101 and 185.08, F.S. (firefighters’ and police officers’ pension trust funds);

c. Credits for income taxes paid under Chapter 220, F.S., and the salary credit allowed under Section 624.509(5), F.S., as these are limited by Section 624.509(6), F.S. (the 65 percent limitation);

d. The amount of the Strong Families Tax Credit under Section 624.51057, F.S., and

e. The amount of the Live Local Program credit under Section 624.51058, F.S.

2. Taxpayers must attach a copy of the tax credit allocation letter issued by the Department to the tax return on which any tax credit is taken.

(c)1. Sales and Use Tax – One hundred percent of the credit earned is allowed against any state sales and use tax due self-accrued and paid directly to the Department in accordance with a valid Sales and Use Tax Direct Pay Permit issued by the Department.

2. The Department will send written instructions on how to claim the credit allocation as a tax credit on a sales and use tax return remitted to the Department by electronic means.

(d)1. Tax on Oil and Gas Production – One hundred percent of the credit earned is allowed against any tax due on oil or gas production in Florida imposed under Sections 211.02 and 211.025, F.S.

2. The tax credit may not exceed 50 percent of the tax due on the return on which the tax credit is taken. If a taxpayer has earned tax credits under Section 1002.395, F.S. (Florida Tax Credit Scholarship Program), Section 402.62, F.S. (Strong Families Tax Credit), and Section 1003.485, F.S. (The New Worlds Reading Initiative), the credit under Section 1002.395, F.S., will be applied first; the credit under Section 402.62, F.S., will be applied second; the credit under Section 1003.485, F.S., will be applied third; and the credit under Section 402.261, F.S., will be applied fourth, as applicable, until the 50 percent limit is reached.

3. Taxpayers must attach a copy of the tax credit allocation letter issued by the Department to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(e)1. Excise Tax on Liquor, Wine, and Malt Beverages – One hundred percent of the credit earned is allowed against the following taxes administered by the Division.

a. Excise tax on liquor beverages imposed under Section 565.12, F.S.;

b. Excise tax on wine beverages imposed under Section 564.06, F.S., except excise taxes imposed on wine produced by manufacturers in Florida from products grown in Florida; or

c. Excise tax on malt beverages imposed under Section 563.05, F.S.

2. The tax credit taken on a return filed with the Division is limited to 90 percent of the tax due on the return. Taxpayers must attach a copy of the tax credit allocation letter from the Department to the tax return on which any tax credit is taken.

(f) Credits earned for corporate income tax or insurance premium tax will be taken into account when determining the estimated payment amounts required to meet the prior year exceptions for each tax. Cross reference: Rules 12C-1.034 and 12B-8.001, F.A.C.

(6) Carryforward of unused credits.

(a) When a taxpayer is unable to use a tax credit during the period specified by the Department in the tax credit allocation letter, because the taxpayer’s liability is insufficient, the taxpayer may carry forward the unused tax credit amount for a period not to exceed five years.

(b) Examples.

1. Corporate Income Tax Example – A calendar year taxpayer applied for and was approved for a credit allocation against corporate income tax for the tax year ending December 31, 2025. Any unused carryforward from its tax year ending December 31, 2025, expires on the due date pursuant to Section 220.222, F.S., for the Florida corporate income/franchise tax return for the taxable year ending December 31, 2030.

2. Insurance Premium Tax Example – A taxpayer applied for and was approved for a credit allocation against insurance premium tax due for calendar year 2025. Any unused carryforward from its tax year ending December 31, 2025, expires on December 31, 2030.

3. Sales and Use Tax Example – A taxpayer who holds a Sales and Use Tax Direct Pay Permit applied for and was approved for a credit allocation against sales and use tax due to the Department for the state fiscal year 2025-2026. The taxpayer’s state tax liability in accordance with the Permit was insufficient to use the entire credit allocation on sales and use tax returns filed with the Department on or before June 30, 2026. Any unused carryforward from the 2025-2026 state fiscal year expires June 30, 2031.

4. Tax on Oil and Gas Production – The same application periods and credit carryforward periods that apply to a sales and use tax credit allocation apply to a credit allocation against the tax on oil and gas production.

5. Excise Taxes on Liquor, Wine, and Malt Beverages Example – A taxpayer who holds a liquor license issued by the Division applied for and was approved for a credit allocation against the liquor excise tax for returns due during the state fiscal year 2025-2026. The taxpayer’s liability was insufficient to use the entire credit allocation during that state fiscal year. Any unused carryforward from the 2025-2026 state fiscal year expires June 30, 2031.

(7) Transfers of unused tax credits.

(a) A taxpayer may not convey, assign, or transfer an approved credit allocation or a carryforward tax credit to another entity unless all of the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction. However, an approved credit allocation that has not been claimed on a tax return or a carryforward tax credit that has not been claimed on a tax return may be transferred between members of the same affiliated group of corporations.

(b) A transferred credit allocation or carryforward tax credit may only be used against the same tax as the original credit allocation approved by the Department.

(c) A transferred credit allocation or carryforward tax credit may only be taken by the receiving member of the affiliated group during the same period for which the transferring member was approved.

(d)1. A taxpayer must notify the Department of its intent to transfer any unused credit allocation or carryforward tax credit to another member of its affiliated group by submitting Child Care Tax Credits Program – Notice of Intent to Transfer a Tax Credit (Form DR-556200, incorporated by reference in Rule 12-29.003, F.A.C.). A separate notice must be submitted for each member of an affiliated group of corporations receiving a transfer.

2. Taxpayers must submit an application for transfer of any unused credit allocation or carryforward tax credit to the Department by email at CreditTrackingGroup@floridarevenue.com or by mail to:

Florida Department of Revenue

Revenue Accounting

P.O. Box 6609

Tallahassee, FL 32314-6609

(e) The Department must approve the application for transfer of the unused credit allocation or carryforward tax credit before the receiving member may claim a tax credit on a tax return. For excise tax on liquor, wine, and malt beverages, the Division must also approve the transfer before the receiving member may claim a tax credit on a tax return.

(f) Following receipt of an application, the Department will send written correspondence approving the transfer or providing the reason the transfer could not be approved. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S.

(g) If the transfer is approved, a copy of the approval letter will be sent to both the transferring member and the receiving member. The approval letter will include instructions on how the receiving member may claim a tax credit on a tax return.

(8) Rescindment of unused tax credits.

(a) The rescindment provision allows credit allocations that will not be used by the taxpayer to be reallocated to other taxpayers who may use the credit allocation. Taxpayers must apply online using the Department’s website at floridarevenue.com or submit Child Care Tax Credits Program – Application for Rescindment of Previous Allocation of Tax Credit (Form DR-556100, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department to rescind all or a portion of an unused credit allocation. See paragraph (3)(a) for submitting the application to the Department.

(b) An application for rescindment of the unused credit allocation by the Department will not be approved when:

1. The amount of credit allocation requested to be rescinded has been claimed as a credit on a previously filed return; or

2. The allocation year is closed for all taxpayers. The allocation period for a calendar year is closed for all taxes and all taxpayers on October 1 of the third year following the January 1 opening of the allocation period, regardless of whether the annual tax credit cap has been reached. For example, the allocation period beginning January 1, 2025, for the state fiscal year beginning July 1, 2025, closes for all taxpayers on October 1, 2027.

(c) Following receipt of an application, the Department will send written correspondence regarding the amount of the rescindment, or the reason rescindment could not be approved. For excise tax on liquor, wine, and malt beverages, the Division must approve the rescindment before the Department will issue such correspondence. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S.

History

• Rulemaking Authority 213.06(1), 402.261(7) FS. Law Implemented 211.0254, 212.1835, 220.19, 402.261, 561.1214, 624.509(7), 624.5107 FS. History–New 2-20-25.

Fla. Admin. Code R. 12-29.008 Home Away From Home Tax Credit; Participation; Allocation; Carryforward; Transfer; Rescindment

(1) Definitions. For purpose of this rule, the following terms mean:

(a) “Affiliated group of corporations” is given the same meaning as the definition provided in Section 220.03(1)(b), F.S.

(b) “Contribution” or “eligible contribution” means a monetary contribution from a taxpayer to an eligible charitable organization.

(c) “Credit allocation” means an allocation to a taxpayer of an annual tax credit cap authorized under the Home Away From Home Tax Credit.

(d) “Division” means the Division of Alcoholic Beverages and Tobacco of the Department of Business and Professional Regulation.

(e) “Eligible charitable organization” means an organization designated by the Department of Health to be eligible to receive funding under Section 402.63, F.S.

(f) “State fiscal year” means the annual period beginning July 1 through June 30 of the following year.

(g) “Tax credit cap” means the maximum annual tax credit amount that the Department is authorized by Section 402.63, F.S., to allocate.

(2) Taxpayers eligible to participate in the program. Taxpayers who pay any of the following taxes may apply to the Department for a credit allocation:

(a) For the taxes administered by the Department:

1. Florida corporate income tax imposed under Chapter 220, F.S.

2. Florida insurance premium tax imposed under Section 624.509, F.S.

(b) For excise taxes administered by the Division:

1. Excise tax on liquor beverages imposed under Section 565.12, F.S.;

2. Excise tax on wine beverages imposed under Section 564.06, F.S., except excise taxes imposed on wine produced by manufacturers in Florida from products grown in Florida; or

3. Excise tax on malt beverages imposed under Section 563.05, F.S.

(3) Applications for credit allocations.

(a) To apply for an allocation of the available program credits, a taxpayer must submit Home Away From Home Tax Credit – Application for Tax Credit Allocation for Contributions to Eligible Charitable Organizations (Form DR-665000, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department.

1. Taxpayers required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and rule Chapter 12-24, F.A.C., must apply online using the Department’s website. When the application is completed and submitted online, a confirmation number will be provided with the date and time of submission.

2. The fastest and easiest way to apply for an allocation is online at floridarevenue.com/taxes/multitaxcredits. Taxpayers who are not required to file returns and remit payments by electronic means pursuant to Section 213.755, F.S., and rule Chapter 12-24, F.A.C., may also apply by submitting a paper application with the Department.

(b) A separate application to receive a credit allocation is required for:

1. Each eligible charitable organization the taxpayer intends to support; and,

2. Each beverage license issued by the Division for which a separate return to report and pay the excise taxes on liquor, wine, and malt beverages is filed with the Division.

3. Each tax credit cap year.

(c) Taxpayers are eligible to apply during the following periods to receive a credit allocation from each annual tax credit cap for the following taxes as follows:

1. Corporate Income Tax – A taxpayer may make an application for a credit allocation beginning at 9 a.m. on the first day of the calendar year that is not a Saturday, Sunday, or legal holiday for its tax year that begins during that calendar year. The application must be submitted before the date the taxpayer is required to file its corporate income/franchise tax return for that tax year pursuant to Section 220.222, F.S., including a valid extended due date.

a. Example: A calendar year taxpayer may apply for a credit allocation for the 2026-2027 state fiscal year credit beginning on January 2, 2026. The application must be submitted before May 1, 2027; however, if the due date of the taxpayer’s corporate income/franchise tax return is validly extended, the application may be submitted before November 1, 2027.

b. Example: A taxpayer with a tax year beginning December 1, 2026, and ending November 30, 2027, may apply for a credit allocation for the 2026-2027 state fiscal year credit beginning on January 2, 2026. The application must be submitted before April 1, 2028; however, if the due date of the taxpayer’s corporate income/franchise tax return is validly extended, the application may be submitted before October 1, 2028.

2. Insurance Premium Tax – A taxpayer may make an application for a credit allocation beginning at 9 a.m. on the first day of the calendar year that is not a Saturday, Sunday, or legal holiday and before the due date of the insurance premium taxes and fees return, which is March 1 following the taxable year. Example: For the 2026-2027 state fiscal year tax credit cap, a taxpayer may submit an application for a credit allocation beginning on January 2, 2026. The application must be made on or before February 28, 2027.

3. Excise Taxes on Liquor, Wine, and Malt Beverages – A taxpayer may make an application for a credit allocation beginning at 9 a.m. on the first day of the calendar year that is not a Saturday, Sunday, or legal holiday preceding the state fiscal year beginning on July 1 of the calendar year. The application must be made by June 30 of the state fiscal year for which the taxpayer is applying. For example, for a credit allocation for the 2026-2027 state fiscal year, taxpayers may apply for a credit allocation beginning on January 2, 2026. The application must be made on or before June 30, 2027.

(d) The Department will accept applications until either the tax credit cap is reached or until the end of the state fiscal year for the excise taxes on liquor, wine, and malt beverages; until on or before the day the taxpayer’s insurance premium tax return is due; or until the day before the due date of the taxpayer’s corporate income/franchise tax return for corporate income tax, whichever occurs first.

(4) Notification.

(a) The Department will approve credit allocations on a first-come, first-served basis. Following receipt of an application, the Department will send written correspondence regarding the amount of the credit allocation for each tax applied for, or the reason the credit allocation could not be approved. For excise tax on liquor, wine, and malt beverages, the Division must approve the credit allocation before the Department will issue such correspondence.

(b) When the Department is not able to approve an application, a letter explaining the reason for the denial will be mailed to the taxpayer. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S. The Department will reserve the denied amount of the allocation for the taxpayer during the protest period.

(c) When approved, the Department’s approval letter will specify the period in which the contribution to the designated eligible charitable organization must be made. Contributions must be made during the period specified in the approval letter. The eligible charitable organization receiving a contribution will issue the taxpayer a certificate of contribution signed by an authorized representative of the eligible charitable organization containing:

1. Contributor’s name;

2. Contributor’s federal identification number;

3. Contributor’s license number issued by the Division, if applicable;

4. Amount of contribution;

5. Date of contribution; and,

6. Name of the eligible charitable organization.

(d) The amount of tax credit claimed on a tax return is limited to the amount of contribution contained in the certificate of contribution issued by the eligible charitable organization. The taxpayer must make the contribution before the credit is claimed on a tax return.

(e) No tax credit will be allowed when a taxpayer:

1. Fails to make the designated contribution;

2. Fails to make a contribution before claiming the tax credit on a tax return;

3. Claims the credit against tax due prior to the date the contribution is made;

4. Makes a contribution to an ineligible charitable organization; or

5. Makes the contribution outside the period specified in the Department’s approval letter.

(f) When a charitable organization is unable to accept the taxpayer’s contribution, or a part of the contribution, because of its obligations under the Home Away From Home Tax Credit program, the taxpayer may make a contribution or partial contribution to another eligible charitable organization. The eligible charitable organization unable to accept the taxpayer’s contribution must provide a written statement to the taxpayer declining the contribution. The taxpayer is required to keep the written statement with its books and records.

(5) Tax Credits.

(a)1. Corporate Income Tax – A tax credit of 100 percent of the contribution against any corporate income tax due for the tax year is allowed. The amount of the tax credit for a tax year:

a. Is taken in the order of the credits provided against the corporate income tax in Section 220.02(8), F.S.

b. Must be reduced by the difference in federal corporate income tax due computed with the credit and without the credit.

c. Is revoked and rescinded when a taxpayer applies for a credit allocation after timely requesting an extension of time in which to file its Florida corporate income/franchise tax return and fails to remit sufficient tentative tax, such that its extension is not valid under Sections 220.222 and 220.32, F.S.

2. Taxpayers must attach a copy of the certificate of contribution from the eligible charitable organization to the Florida corporate income/franchise tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(b)1. Insurance Premium Tax – A tax credit of 100 percent of the contribution against any insurance premium tax due under Section 624.509(1), F.S., for the tax year is allowed. The amount of the tax credit for a tax year is limited to the insurance premium tax due after deducting:

a. Assessments made pursuant to Section 440.51, F.S. (workers’ compensation administrative assessments);

b. Credits for taxes paid under Sections 175.101 and 185.08, F.S. (firefighters’ and police officers’ pension trust funds); and,

c. Credits for income taxes paid under Chapter 220, F.S., and the salary credit allowed under Section 624.509(5), F.S., as these are limited by Section 624.509(6), F.S. (the 65 percent limitation).

d. The amount of the Strong Families Tax Credit under Section 624.51057, F.S., the amount of the Live Local Program credit under Section 624.51058, F.S., and the amount of the Child Care Tax Credits Program credit under Section 624.5107, F.S.

2. Taxpayers must attach a copy of the certificate of contribution from the eligible charitable organization to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(c)1. Excise Tax on Liquor, Wine, and Malt Beverages – A tax credit of 100 percent of the contribution is allowed against the following taxes administered by the Division.

a. Excise tax on liquor beverages imposed under Section 565.12, F.S.;

b. Excise tax on wine beverages imposed under Section 564.06, F.S., except excise taxes imposed on wine produced by manufacturers in Florida from products grown in Florida; or

c. Excise tax on malt beverages imposed under Section 563.05, F.S.

2. The tax credit taken on a return filed with the Division is limited to 90 percent of the tax due on the return. Taxpayers must attach a copy of the certificate of contribution from the eligible charitable organization to the tax return on which the credit allocation, or a portion of the credit allocation, is taken as a tax credit.

(d) Contributions to the eligible charitable organization are not payments of estimated tax or installment payments of tax. However, credits earned for contributions to the eligible charitable organization for corporate income tax or insurance premium tax will be taken into account when determining the estimated payment amounts required to meet the prior year exceptions for each tax. Cross reference: Rules 12C-1.034 and 12B-8.001, F.A.C.

(6) Carryforward of unused credits.

(a) When a taxpayer is unable to use a tax credit during the period specified by the Department in the approval letter, because the taxpayer’s liability is insufficient, the taxpayer may carry forward the unused tax credit amount for a period not to exceed ten years.

(b) Examples.

1. Corporate Income Tax Example – A calendar year taxpayer applied for and was approved for a credit allocation against corporate income tax for the tax year ending December 31, 2026. Any unused carryforward from its tax year ending December 31, 2026, expires on the due date pursuant to Section 220.222, F.S., for the Florida corporate income/franchise tax return for the taxable year ending December 31, 2036.

2. Insurance Premium Tax Example – A taxpayer applied for and was approved for a credit allocation against insurance premium tax due for calendar year 2026. Any unused carryforward from its tax year ending December 31, 2026, expires on December 31, 2036.

3. Excise Taxes on Liquor, Wine, and Malt Beverages Example – A taxpayer who holds a liquor license issued by the Division applied for and was approved for a credit allocation against the liquor excise tax for returns due during the state fiscal year 2026-2027. The taxpayer’s liability was insufficient to use the entire credit allocation during that state fiscal year. Any unused carryforward from the 2026-2027 state fiscal year expires June 30, 2037.

(7) Transfers of unused tax credits.

(a) A taxpayer may not convey, assign, or transfer a credit allocation or tax credit to another entity unless all of the assets of the taxpayer are conveyed, assigned, or transferred in the same transaction. However, the following credit allocations or tax credits may be transferred between members of the same affiliated group of corporations:

1. A tax credit allocation for which a contribution has not been made to the eligible charitable organization by the transferring member. The receiving member must make a contribution to the eligible charitable organization during the same period that the transferring member was required to make the contribution. In addition, the contribution must be made before the receiving member may claim the tax credit.

2. A tax credit allocation for which a contribution has been made to the eligible charitable organization by the transferring member, but the tax credit has not been claimed on a tax return.

3. A carryforward tax credit amount that has not been claimed on a tax return.

(b) A transferred credit allocation or tax credit may only be used against the same tax as the original credit allocation or tax credit approved by the Department.

(c) A transferred tax credit may only be taken by the receiving member of the affiliated group during the same period that the transferring member was approved to take the credit.

(d) A transferred carryforward amount may only be taken as a tax credit during the same time period as the transferring member was authorized to take the carryforward tax credit amount.

(e)1. A taxpayer must notify the Department of its intent to transfer a credit allocation or tax credit to another member of its affiliated group by submitting Home Away From Home Tax Credit – Notice of Intent to Transfer a Tax Credit (Form DR-665200, incorporated by reference in Rule 12-29.003, F.A.C.). A separate notice must be submitted for each member of an affiliated group of corporations receiving a transfer.

2. Taxpayers must submit an application for transfer of any unused credit allocation or tax credit to the Department by email at CreditTrackingGroup@floridarevenue.com or by mail to:

Florida Department of Revenue

Revenue Accounting

P.O. Box 6609

Tallahassee, FL 32314-6609

(f) The Department must approve the application for transfer of the unused credit allocation or tax credit before the receiving member may claim the tax credit on a tax return. For excise tax on liquor, wine, and malt beverages, the Division must also approve the transfer before the receiving member may claim the tax credit on a tax return.

(g) Following receipt of an application, the Department will send written correspondence approving the transfer or providing the reason the transfer could not be approved. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S.

(h) If the transfer is approved, a copy of the approval letter will be sent to both the transferring member and the receiving member. The approval letter will include instructions on how the receiving member may claim the tax credit on a tax return.

(8) Rescindment of unused tax credits.

(a) The rescindment provision allows credit allocations that will not be used by the taxpayer to be reallocated to other taxpayers who may use the credit allocation. Taxpayers must apply online using the Department’s website at floridarevenue.com/taxes/multitaxcredits or submit Home Away From Home Tax Credit – Application for Rescindment of Previous Allocation of Tax Credit (Form DR-665100, incorporated by reference in Rule 12-29.003, F.A.C.) to the Department to rescind all or a portion of an unused credit allocation. See paragraph (3)(a) for submitting the application to the Department.

(b) An application for rescindment of the unused credit allocation by the Department will not be approved when:

1. The amount of credit allocation requested to be rescinded has been claimed as a credit on a previously filed return; or

2. The allocation year is closed for all taxpayers. The allocation period for a calendar year is closed for all taxes and all taxpayers on October 1 of the third year following the January 1 opening of the allocation period, regardless of whether the annual tax credit cap has been reached. For example, the allocation period beginning January 1, 2026, for the state fiscal year beginning July 1, 2026, closes for all taxpayers on October 1, 2028.

(c) Following receipt of an application, the Department will send written correspondence regarding the amount of the rescindment, or the reason rescindment could not be approved. For excise tax on liquor, wine, and malt beverages, the Division must approve the rescindment before the Department will issue such correspondence. The taxpayer may protest the denial pursuant to Sections 120.569 and 120.57, F.S.

(d) When the approval of a rescindment allows the tax credit cap for a state fiscal year to be reopened and available for allocation, the Department will notify the eligible charitable organization that the tax credit cap is available for allocation.

History

• Rulemaking Authority 213.06(1), 402.261(7), 402.62(7)(b), 402.63(7)(b), 420.50872(5) FS. Law Implemented 213.37, 220.18775, 402.261, 402.62(5), 402.63(5), 420.50872, 561.12135, 624.509(7), 624.51059 FS. History–New 1-1-26.

Division 12B Miscellaneous Tax

Chapter 12B-4 DOCUMENTARY STAMP TAX

Fla. Admin. Code R. 12B-4.001 Payment of Tax

(1) County Comptroller or Clerk of the Circuit Court.

(a) County Comptroller or Clerk of the Circuit Court – Each County Comptroller or Clerk of the Circuit Court of each county, (“Clerk”) must collect the tax imposed by Chapter 201, F.S., on recorded documents, and may collect the tax on unrecorded documents, keeping a journal indicating the amount of tax paid. Clerks that elect to collect the tax on unrecorded documents must meet the requirements of paragraph (b). All taxes collected on behalf of the state and associated information must be electronically submitted to the Department, as provided in Section 213.13, F.S., and Chapter 12-28, F.A.C. There will be no collection allowance allowed to the Clerk when the tax is collected and not remitted in accordance with these rules.

(b) A notation is required on each document recorded or not recorded by the Clerk that indicates the amount of tax paid and the county where payment is being made. The notation may be signed, initialed, or stamped with the name or initials of the Clerk, or designated agent.

(2) Registered Persons – Unrecorded Documents.

(a) Any person who has averaged or will average at least 5 taxable transactions per month is required to register with the Department and remit the taxes due directly to the Department for all unrecorded documents. Any person with less than 5 transactions per month has the option, but is not required, to register with the Department. The procedures provided in this subsection do not apply to documents that are to be recorded with the Clerk.

(b) A separate registration application is required for each location where taxable documents that are not recorded with the Clerk are maintained. If a registered person previously submitted the Florida Business Tax Application (form DR-1, incorporated by reference in Rule 12A-1.097, F.A.C.) to the Department and holds an active certificate of registration or reemployment tax account, the registered person may use an Application for Registered Businesses to Add a New Florida Location (form DR-1A, incorporated by reference in Rule 12A-1.097, F.A.C.) in the following circumstances:

1. To register an additional location.

2. To update a registered location that has moved from one Florida county to another.

(c) Registration with the Department for the purposes of the documentary stamp tax is available by using one of the following methods:

1. Registering through the Department’s website at floridarevenue.com using the Department’s eServices.

2. Filing form DR-1, Florida Business Tax Application with the Department, as indicated on the registration application.

(d) Each application submitted to the Department must contain sufficient information to facilitate the processing of the application.

(e) Any person registered with the Department for documentary stamp tax purposes is required to file a Documentary Stamp Tax Return for Registered Taxpayers’ Unrecorded Documents (Form DR-225, incorporated by reference in Rule 12B-4.003, F.A.C.) and remit the tax due.

(f) Any person registered must keep a journal, or other account book or record of original entry, maintaining a listing of all unrecorded documents executed and delivered. The journal must show a daily listing of each document, indicating every document transaction, the amount, and whether the document is taxable. When the document is taxable, the amount of tax due must be indicated for each document. When the document is not taxable, the journal must indicate the reason for the exemption.

(g) The following notation or similar language, along with the amount of tax and the certificate of registration number, is required to be made on each document requiring tax under this procedure: “Florida documentary stamp tax required by law in the amount of $___ has been paid or will be paid directly to the Department of Revenue. Certificate of Registration No. ___.” For persons filing returns who have less than five taxable transactions per month and have opted not to register, no registration number is required on such documents.

(3) Unregistered Persons.

(a) Any person engaged in an average of less than 5 taxable transactions per month is not required to register with the Department, but may elect to register to report documentary stamp tax due.

(b) Any person who is not required to register and has not elected to register is required to file a Documentary Stamp Tax Return For Nonregistered Taxpayers’ Unrecorded Documents (Form DR-228, incorporated by reference in Rule 12B-4.003, F.A.C.) and remit tax due.

(4) Payment and Return Due Dates.

(a) For monthly filers, payments for documentary stamp tax and the associated return certifying the amount of tax due for the preceding month must either reach the Department or be postmarked on or before the 20th day of the month following the transaction to avoid penalty and interest for late filing. When the 20th day falls on a Saturday, Sunday, or legal holiday, payments accompanied with returns will be accepted as timely if postmarked on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For purposes of this rule, a “legal holiday” means a holiday that is observed by federal or state agencies as a legal holiday as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) When quarterly, semiannual, or annual reporting is authorized by the Department pursuant to Section 201.133(8), F.S., the tax and associated return is due no later than the 20th day of the month following the authorized reporting period and becomes delinquent on the 21st day of that month.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 116.01, 201.01, 201.08, 201.09, 201.11, 201.12, 201.13, 201.132, 201.133, 201.14, 213.756, 219.07 FS. History–New 8-18-73, Formerly 12A-4.01, Amended 2-21-77, 12-3-81, Formerly 12B-4.01, Amended 12-5-89, 2-16-93, 12-30-97, 5-4-03, 3-25-20, 1-25-26.

Fla. Admin. Code R. 12B-4.002 Liability for Tax

(1)(a) Liability in general – Except as otherwise provided in paragraph (1)(b) and subsections (2) and (3) of this rule, the tax is payable by any of the parties to a taxable document. When the parties to the document agree who will pay the tax, the agreement does not relieve the remaining parties from their liability for the payment of the tax in the event the agreement is not followed. The tax remains due by the remaining parties.

(b) Cooperative Apartment – Only the purchaser is liable for the payment of the tax.

(2) United States, Its Agencies or Instrumentalities

(a) A document between nonexempt parties and the United States or its agencies is taxable unless such document has been exempted by federal or state law.

(b) Written obligations to pay money executed by the United States or its agencies as borrowers are exempt.

(c) Mortgages and notes executed by nonexempt parties to instrumentalities of the federal government are subject to the tax.

(d) Mortgages and notes between nonexempt parties and agencies or instrumentalities of the federal government exempt by Congress are not taxable. However, an instrument which is guaranteed or insured by such an agency or instrumentality is subject to tax.

(3) State, Counties, and Municipalities.

(a) The state, county, municipality, or any political subdivision is not liable for documentary stamp tax. However, the document is not exempt from tax, and any nonexempt party to the document is liable for the tax.

(b) Written obligations to pay money issued by the state, counties, municipalities or any political subdivision of the state are exempt.

(4) Documents Between Governmental Agencies.

(a) Documents that transfer real property between federal or state agencies or counties, municipalities, or any political subdivisions are not taxable.

(b) A conveyance by a master in chancery, sheriff, or clerk of circuit court for realty sold under foreclosure, execution, or court judgment to an agent of the federal government who is the mortgagee is not taxable unless there are excess funds received from the sale from which the tax may be paid.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.01, 201.02, 201.08, 201.24 FS. History–New 8-18-73, Formerly 12A-4.02, Amended 3-13-79, 11-29-79, 12-3-81, Formerly 12B-4.02, Amended 12-5-89, 2-13-91, 12-30-97, 1-25-26.

Fla. Admin. Code R. 12B-4.003 Public Use Forms

(1)(a) The following public-use forms and instructions are employed by the Department of Revenue in its administration of the documentary stamp tax, and are hereby incorporated in this rule by reference.

(b) Copies of these forms are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2) DR-225

Documentary Stamp Tax Return for Registered Taxpayers’ Unrecorded Documents (R. 01/23)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14826)

01/23

(3) DR-228

Documentary Stamp Tax Return for Nonregistered Taxpayers’ Unrecorded Documents

(R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06328)

01/16

(4) DR-229

Documentary Stamp Tax – subsection 201.02(6), F.S.,

Exemption (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06329)

01/16

History

• Rulemaking Authority 201.11, 213.06(1) FS. Law Implemented 119.071(5), 201.01, 201.02(1), (4), 201.031(1), 201.07, 201.08(1)(a), 201.133, 213.755 FS. History–New 8-18-73, Formerly 12A-4.03, Amended 9-26-77, 12-11-78, Formerly 12B-4.03, Amended 12-5-89, 2-16-93, 10-20-93, 12-30-97, 5-4-03, 6-28-05, 1-1-08, 4-14-09, 1-11-10, 6-28-10, 4-25-12, 1-11-16, 1-1-23, 1-25-26.

Fla. Admin. Code R. 12B-4.004 Refunds

Any person who has overpaid documentary stamp tax or discretionary surtax, or paid the tax or surtax that was not due, or paid the tax or surtax in error, may seek a refund by filing an Application for Refund (form DR-26, incorporated by reference in Rule 12-26.008, F.A.C.) with the Department. Form DR-26 must be filed with the Department within three years after the date the tax was remitted to the Department and must meet the requirements of Sections 213.255(2) and (3), F.S. and Rule 12-26.003, F.A.C.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 95.091, 213.255, 215.26 FS. History–New 8-18-73, Formerly 12A-4.04, Amended 12-26-77, Formerly 12B-4.04, Amended 12-30-97, 5-4-03, 1-25-26.

Fla. Admin. Code R. 12B-4.005 Penalties and Interest

(1) Failure to Pay Tax or Discretionary Surtax Required. For any document, instrument, or paper upon which the documentary stamp tax or discretionary surtax is imposed and the proper amount of tax or surtax remains unpaid, the person or persons liable for the tax upon the document, instrument, or paper is subject to a specific penalty of 10 percent of the amount of the tax or surtax unpaid for each 30 days, or fraction thereof, the tax or surtax remains unpaid, not to exceed 50 percent of the unpaid tax or surtax.

(2) Failure to Timely File a Return. When the documentary stamp tax or discretionary surtax imposed on any document, instrument, or paper is not timely reported and paid, as required by Section 201.133, F.S., and Rule 12B-4.001, F.A.C., a minumum penalty of $10 for failure to timely file the tax return required and a penalty for failure to timely pay the tax or surtax due, as provided in subsection (1), are imposed.

(3)(a) Payment of interest is due at the rate of interest established pursuant to Section 213.235, F.S., and Rule 12-3.0015, F.A.C., prorated daily.

(b) Interest accrues based upon the amount of the tax not paid from the date the tax or discretionary surtax is due until the date on which the tax or surtax is paid.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.031, 201.11, 201.133, 201.17, 213.235 FS. History–New 8-18-73, Formerly 12A-4.05, Amended 2-21-77, 4-2-78, 10-18-78, 12-30-82, Formerly 12B-4.05, Amended 12-5-89, 2-16-93, 10-20-93, 12-30-97, 4-2-00, 1-25-26.

Fla. Admin. Code R. 12B-4.006 Excise Tax on Documents; Construction

History

• Rulemaking Authority 201.11, 213.06(1) FS. Law Implemented 201 FS. History–New 8-18-73, Formerly 12A-4.06, 12B-4.06, Amended 12-5-89, 12-30-97, Repealed 1-25-26.

Fla. Admin. Code R. 12B-4.007 Recordation of Documents

The failure of the Clerk to require payment of the proper amount of tax prior to recording the document does not relieve the parties to the document from being liable for any tax due.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.01, 201.12 FS. History–New 8-18-73, Formerly 12A-4.07, 12B-4.07, Amended 12-29-86, 12-5-89, 2-16-93, 12-30-97, 4-14-09, 1-25-26.

Fla. Admin. Code R. 12B-4.008 Meter Machines

History

• Rulemaking Authority 201.11 FS. Law Implemented 201 FS. History–New 8-18-73, Formerly 12A-4.08, Amended 12-23-80, Formerly 12B-4.08, Amended 12-5-89, Repealed 12-30-97.

Fla. Admin. Code R. 12B-4.009 Uniform Commercial Code, Financing Statements

History

• Rulemaking Authority 201.11 FS. Law Implemented 201.08, 201.22 FS. History–New 8-18-73, Formerly 12A-4.09, 12B-4.09, Repealed 12-30-97.

Fla. Admin. Code R. 12B-4.011 Imposition of Tax

(1) Scope of Tax: Section 201.02, F.S., imposes a tax on deeds, instruments, or writings, whereby any lands, tenements, or other realty, or any interests therein is granted, assigned, transferred, or otherwise conveyed to, or vested in the purchaser, or any other person by his direction. The tax attaches at the time the deed or other instrument of conveyance is delivered, irrespective of the time when the sale is made. Deeds deposited in escrow become subject to the tax upon delivery to the grantee.

(2) Taxable Conveyances: Tax must be paid on all taxable conveyances regardless of where the document may be made, executed, or delivered.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.01, 201.02 FS. History–New 8-18-73, Formerly 12A-4.11, Amended 11-29-79, Formerly 12B-4.11, Amended 12-5-89, 12-30-97, 1-25-26.

Fla. Admin. Code R. 12B-4.012 Rate, Consideration

(1)(a) Documentary Stamp Tax, Rate and Computation. The tax imposed under Section 201.02, F.S., on deeds, instruments, documents, or writings whereby any lands, tenements, or other realty or any interest therein is transferred or conveyed is 70 cents on each $100 or fractional part thereof of the consideration paid, or to be paid. When the full amount of the consideration is not shown in the face of such deed, instrument, document, or writing, the tax is at the rate of 70 cents on each $100 or fractional part thereof of the consideration. The 70 cent rate does not apply to deeds, instruments, or writings relating to real property located in any county that has implemented the provisions of Section 201.031, F.S.

(b) The documentary stamp tax in Miami-Dade County, which has implemented the provisions of Section 201.031, F.S., is levied at the rate of 60 cents per $100 (or portion thereof) on documents that transfer interest in Florida real property.

(2) Definitions:

(a) “Consideration” under Section 201.02, F.S., includes, but is not limited to, money paid or to be paid, the amount of any indebtedness discharged by a transfer of any interest in real property, mortgage indebtedness and other encumbrances which the real property interest being transferred is subject to, notwithstanding the transferee may be liable for such indebtedness. Where property other than money is exchanged for interests in real property, there is the presumption that the consideration is equal to the fair market value of the real property interest being transferred.

(b) “Property other than money” includes, but is not limited to, property that is corporeal or incorporeal, tangible or intangible, visible or invisible, real or personal; everything that has an exchangeable value or which goes to make up wealth or estate.

(3) Discretionary Surtax, Rate and Computation. The documentary stamp surtax in Miami-Dade County, which has implemented the provisions of Section 201.031, F.S., is levied at the rate of 45 cents for each $100 (or portion thereof) of the consideration paid or to be paid. However, a document conveying only a single family residence, which includes a condominium unit, or a cooperative apartment unit representing a proprietary interest in a corporation owning a fee or leasehold interest initially in excess of 98 years, or a detached dwelling is not taxable. Where a document conveys more than one single-family residence, the surtax is due.

(4) Interest. Even though the parties to the transaction term the total of annual payments as the “total consideration” for the conveyance or transfer, it is only the total of the principal amounts that is taxable consideration, and the amounts set forth as interest are not taxable consideration.

(5) Minimum Tax. The minimum tax is required on all conveyances where a nominal consideration, such as “ten dollars and other valuable considerations,” is cited in the document.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.01, 201.02, 201.031 FS. History–New 8-18-73, Formerly 12A-4.12, Amended 2-21-77, 8-8-78, 11-29-79, 12-30-82, Formerly 12B-4.12, Amended 12-5-89, 2-13-91, 2-16-93, 12-30-97, 1-25-26.

Fla. Admin. Code R. 12B-4.013 Conveyances Subject to Tax

(1) Exchange of Property. In an exchange of real property by the respective owners of the property exchanged, lands are given as consideration for the transfer of other lands between the parties. The consideration has a reasonably determinable value and is property other than money. The consideration for each deed is the fair market value of the property transferred, plus any other consideration.

(2) Defaulting Mortgagor: Where a mortgagor, in full or partial satisfaction of the mortgage indebtedness or in lieu of foreclosure of a mortgage, conveys the mortgaged premises to the mortgagee, documentary stamp taxes are due on the transaction. The tax will be due on the unpaid portion of any mortgages or other encumbrances the property is subject to, plus any other consideration as defined in Section 201.02(1), F.S., including accrued interest.

(3)(a) Clerk of the Court, Master, Sheriff. A conveyance by a master in chancery, a sheriff, or a Clerk for realty sold under foreclosure or execution is subject to tax. The tax is computed on the amount of the highest and best bid received for the property at the foreclosure sale. The Clerk is required to collect the tax from the highest bidder when the Certificate of Title is recorded.

(b) The assignment of a succesful bid at a forclosure sale is taxable as an instrument transferring real property.

(4) Threat of Eminent Domain Proceedings. Conveyances of realty made to a governmental entity under threat of condemnation or as part of an out-of-court settlement of condemnation proceedings are not subject to documentary stamp tax. Threat of condemnation exists when a property owner is informed in writing by a representative of a governmental body or public official authorized to acquire property for public use, that such body or official has decided to acquire the property and the property owner has reasonable grounds to believe that the necessary steps to condemn the property will be instituted if a voluntary sale is not arranged. Conveyances to nongovernmental entities are subject to tax.

Cross Reference – subsection 12B-4.014(12), F.A.C.

(5) State, County, Municipality. Conveyance to or by the state, a county, a municipality or other public agency to or by a nonexempt party is subject to tax. The state, county, municipality or other public agency is exempt from payment of tax but the nonexempt party is not exempt.

(6) United States, Its Agencies or Instrumentalities. Conveyance to the United States, its agencies or instrumentalities from a nonexempt party, except as provided in subsection 12A-4.014(11), F.A.C., is subject to tax.

(7) Timber, Oil, Gas, and Mineral – Contracts or Assignments. Contracts, agreements, leases, and other documents conveying any interest in standing timber, pine stumps, oil or gas leases and assignments or conveyances of oil, gas, mineral rights or royalty interests affecting lands in this state are subject to tax.

(8) Cooperative Units. Instruments by which the right is granted to a tenant-stockholder to occupy a unit owned by a cooperative corporation are subject to tax.

(9) Condominium Units: Instruments conveying interest or ownership in a condominium unit are subject to tax.

(10) Cemetery Lots, Interment Rights, Sepulcher Rights. Documents conveying cemetery lots, interment rights, sepulcher rights or any other interest in realty are subject to tax.

(11) Easements. A document that conveys an easement is subject to tax

(12) Agreement or Contract for Deed. Consideration for the conveyance of an equitable interest in real property pursuant to an agreement or contract for deed includes the amount of any payments made and the unpaid balance of the agreement or contract. Tax is calculated on the full contract price and paid on the contract when made. No tax is due on the recorded deed made when the proper amount of taxes has been paid on the contract. The deed must indicate, by a notation on the contract, that the proper amount of tax has been paid.

(13) Cancellation of Contract or Agreement for Deed. A conveyance of the purchaser’s interest to the seller in satisfaction of the purchaser’s obligation under a contract or agreement for deed where the indebtedness of the purchaser is canceled, or otherwise rendered unenforceable, is subject to tax. The measure of the tax payable is determined by the amount of the indebtedness canceled or otherwise rendered unenforceable and any other consideration given by the seller.

(14) Assignment of Contract for Deed. The assignment of a prior purchaser’s interest under a contract or agreement for deed to a new purchaser is a conveyance of an equitable interest which the prior purchaser had in the real property. Consideration for the transfer includes the amount paid by the new purchaser and the unpaid balance of the contract for deed. Tax is due based on the total consideration. No tax is due on the recorded deed when the proper amount of tax has been paid on the assignment. The deed must indicate by a notation that proper tax has been paid. Tax is also due under Section 201.08, F.S., if the remaining balance of the contract is assumed by the new purchaser.

(15) Industrial Development Authority and Florida Housing Finance Corporation. Conveyances of realty by industrial development authorities and the Florida Housing Finance Corporation to private corporations are taxable.

(16) Gift Transactions; Mortgage on Property: A gift of mortgaged realty is taxable based upon the unpaid balance of the mortgage at the time of transfer.

(17) Combined Sale of Land and Improvements. Where a conveyance of realty is made by a corporation or person engaged in the business of land sales and construction of buildings and other improvements, tax is imposed on the conveyance based on the amount of consideration paid or to be paid upon delivery of the deed to the purchaser. If the deed is not delivered to the purchaser until construction is completed, tax is required on the total consideration paid for the land and improvements.

(18) “Wrap-Around” Mortgages. Where a “wrap-around” mortgage is given to secure the unpaid balance of the purchase price for the transfer of realty, tax is to be paid on the total consideration, which includes the amount of any “wrap-around” mortgage.

(19) Mortgage on Property. When computing the tax under Section 201.02, F.S., on a deed, the total consideration includes any mortgages encumbering the property being transferred.

(20) Mobile Homes.

(a) A document that transfers a mobile home classified as real property at the time of transfer is subject to tax. A mobile home is classified as real property when, prior to the transfer, the mobile home is permanently affixed to land owned by the seller of the mobile home and:

1. The mobile home and land are listed on the ad valorem property tax roll for the county in which the mobile home and land are located; or

2. The seller of the mobile home and of the land to which the mobile home is permanently affixed has filed a declaration with the county property appraiser requesting that the mobile home be assessed as real property.

(b) A mobile home is permanently affixed to land when it is tied down and connected to utilities.

(c) When a mobile home is not classified as real property at the time of the transfer, the sale of the mobile home does not constitute the transfer of an interest in real property even though the land is sold in conjunction with the mobile home.

(d) Where a member of a mobile home park has practical dominion over a designated site, the member’s interest in the site constitutes an interest in real property. Any instrument that transfers a member’s interest is subject to tax.

(21) Assignment of Lease or Other Conveyance of Leasehold Interest in Realty: All assignments of leases or other conveyances of leasehold interests in real property are taxable under Section 201.02, F.S., based upon the consideration paid, including leasehold mortgages encumbering the interest conveyed. However, mortgages encumbering the fee title are not consideration, except when assumed by the assignee.

(22) Assignment of Beneficial Interest in Trust created under Chapter 689, F.S. Any document which conveys any beneficial interest in a trust is subject to tax, and the tax is to be paid upon execution of the document. The provision in Section 689.071(6), F.S., which defines the interest of a beneficiary under a trust agreement to be personal property only, does not exempt a transfer of the beneficial interest in the trust from tax. Tax is due on any assignment of a beneficial interest in a trust created under Chapter 689, F.S., based on the consideration paid for such assignment.

(23) Construction Mortgage: When realty is conveyed subject to a construction mortgage, the deed is subject to tax based upon the unpaid balance of the mortgage debt at the time of conveyance, in addition to any other consideration given.

(24) Deeds Between Spouses.

(a) A deed that transfers any interest in Florida real property between spouses is taxable based on the consideration for the property interest transferred. When the property is encumbered, the consideration includes the mortgage balance in proportion to the interest transferred.

(b) No tax is due on a deed that transfers the marital home, or an interest therein, between spouses or former spouses pursuant to an action for dissolution of marriage when the transfer is made at the time of or following divorce. The marital home means the primary residence of the married couple. Tax is due on a deed that transfers the marital home, or an interest therein, between spouses when the transfer is made prior to the final dissolution of the marriage. Tax paid on such deed within one year prior to the final dissolution of the marriage may be refunded. To request a refund, a completed Form DR-26, Application for Refund, must be submitted with proof of payment of the tax, including a copy of the final divorce decree. Proof that the real property was the marital home is also required.

(c) No tax is due on a deed that transfers any interest in homestead property between spouses, when the only consideration for the transfer is the amount of a mortgage or other lien encumbering the homestead property at the time of the transfer. When there is consideration other than a mortgage or other lien encumbering the homestead property, tax is due on the total consideration including any mortgages or liens encumbering the property at the time of the transfer. For the purpose of this paragraph, the term “homestead property” has the same meaning as the term “homestead” as defined in Section 192.001, F.S., and s. 6(a), Art. VII of the State Constitution.

(25) Trusts Pursuant to Chapter 689, F.S. A deed to or from a trustee conveying real property is taxable to the extent that the deed transfers the beneficial ownership of the real property and to the extent that there is consideration for the transfer. The following are examples of taxable and exempt conveyances to or from a trustee.

(a) No change in Beneficial Ownership. A deed from X to a trustee is exempt to the extent of X’s beneficial ownership interest as a trust beneficiary, whether or not the real property is encumbered by a mortgage. For example, if X owns encumbered or unencumbered real property and conveys it to the trustee of a trust of which X is the sole beneficiary, the conveyance is exempt.

(b) Change in Beneficial Ownership. If persons other than X are trust beneficiaries, then a deed from X to a trustee is taxable to the extent of the consideration, if any, for the beneficial interest in the real property transferred to such other persons. The tax is based on any cash, note, release, or other consideration from the trust beneficiaries other than X, including their proportionate share of any mortgage encumbering the real property. For example, X owns unencumbered real property valued at $100, and if X conveys the property to the trustee of a trust of which X and Y are each 50% beneficiaries, and Y pays $50 cash for the conveyance to the trustee, tax is due based on a consideration of $50.

(c) Gift in Trust. A deed from X to a trustee is exempt if persons other than X are trust beneficiaries, the transfer is a gift from X to those beneficiaries, and the real property is not encumbered by any mortgage. If the real property is encumbered by any mortgage, tax is based on the other beneficiaries’ proportionate share of the mortgage indebtedness, allocated according to their respective percentage beneficial interest. For example, X owns real property valued at $100 which is encumbered by a mortgage of $50, and X conveys the property to the trustee of a trust of which X and X’s daughter are each 50% beneficiaries. If there is no consideration other than the mortgage, tax is due based on a consideration of $25 (one-half of the mortgage indebtedness).

(d) Successor or Substitute Trustee. A deed from a trustee to a successor or substitute trustee of the same trust is not subject to tax.

(e) Trustee’s Deed to Beneficiary. A deed of real property from a trustee to X is not subject to tax to the extent of X’s beneficial ownership interest as a trust beneficiary immediately before the conveyance, whether or not the real property is encumbered by a mortgage. Except as provided in paragraph (f), the tax applies to the extent that the trustee transfers to X an ownership interest in the real property greater than X’s percentage of beneficial ownership interest as a trust beneficiary immediately before the transfer. The tax is based on the consideration, if any, for the transfer of the additional interest, including the proportionate share of any mortgage indebtedness encumbering the additional percentage interest in the real property transferred to X by the trustee. For example, X and X’s spouse are each beneficiaries of a trust of which X owns 60% interest and X’s spouse owns 40% interest, and the trustee conveys to X real property valued at $100 which is encumbered by a mortgage of $50. If there is no consideration other than the mortgage, tax is due based on a consideration of $20 (40% of the mortgage indebtedness).

(f) Trustee’s Power to Apportion. When trust beneficiaries hold undivided percentage interests in the corpus of the trust rather than specific interests in each parcel of real property held in the trust, and a trust instrument grants the trustee the power to apportion and distribute the various assets of the trust among the beneficiaries, tax is due on the conveyance of real property from the trustee to a beneficiary only to the extent that the value of that real property exceeds the value of the beneficiary’s undivided percentage interest in the trust. For example, a grantor conveys Blackacre and Whiteacre to a trustee for the benefit of the grantor’s two children, X and Y, who each have an undivided 50% interest in the trust. The terms of the trust provide that when both X and Y reach 21 years of age, the trustee will liquidate the trust and distribute the assets of the trust between X and Y as the trustee determines and each beneficiary receives property of approximately equal value. Blackacre and Whiteacre are equal in value when X and Y reach 21, and the trustee conveys Blackacre to X and Whiteacre to Y. Tax is due on the initial conveyance from the grantor to the trustee to the extent of any taxable consideration, such as a mortgage on the property (see paragraph (c)), but no tax is due on the subsequent conveyances from the trustee to X and Y, whether or not a mortgage then encumbers the property.

(g) Trustee’s Deed to Non-Beneficiary. Tax is due on a trustee’s deed of real property to grantees that are not beneficial owners as trust beneficiaries immediately before the conveyance, to the extent of the consideration given, if any, for the interest in the real property transferred to the non-beneficiary grantees. The tax due is based on any cash, note, release, or other consideration from the non-beneficiary grantees, including their proportionate share of any mortgage encumbering the real property. For example, X is the sole beneficiary of a trust and the trustee conveys to X and Y, as 50% tenants-in-common, real property valued at $100 which is encumbered by a mortgage of $60. If Y pays $20 cash for Y’s 50% interest in the property, tax is due based on the consideration of $50 ($20 cash plus 50% of the mortgage indebtedness).

(h) Identity of Parties; Nature of Trust. All conveyances to or from a trustee are equally taxable or exempt as provided in this rule:

1. Whether the trustee is the same person as grantor, grantee, or beneficiary,

2. Whether the trustee or grantor or grantee or beneficiary is a natural person or an entity, and,

3. Whether a recorded instrument confers on the trustee the powers and authority specified in Section 689.073(1), F.S., or declares the interest of the beneficiaries is personal property as specified in Section 689.071(6), F.S.

(i) Revocable Trust. A deed to a trustee from a grantor who has the power to revoke the trust instrument, and a deed back to the grantor from the trustee upon revocation of the trust, are not transfers of ownership subject to tax.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.01, 201.02 FS. History–New 8-18-73, Formerly 12A-4.13, Amended 12-11-74, 2-21-77, 5-23-77, 12-26-77, 7-3-79, 9-16-79, 11-29-79, 3-27-80, 12-23-80, 12-30-82, Formerly 12B-4.13, Amended 12-5-89, 6-4-90, 2-13-91, 2-16-93, 10-18-94, 12-30-97, 7-28-98, 1-4-01, 5-4-03, 4-5-07, 7-30-13, 12-12-19, 1-25-26.

Fla. Admin. Code R. 12B-4.014 Conveyances Not Subject to Tax

(1) Security for Debt: The reconveyance of realty conveyed to secure a debt upon payment of such debt is not taxable.

(2) No Consideration:

(a) A conveyance of unencumbered realty as a gift is not taxable.

(b) A deed of conveyance reciting a consideration such as “love and affection and $1,” “desire to promote welfare and $1,” or “$1 and other valuable consideration,” requires at least the minimum tax.

(3) To Correct Error. If a deed corrects a technical deficiency in a previous deed in the nature of a scrivener’s error, and the correcting deed does not convey an interest in real property, the correcting deed is not subject to tax.

(4) Personal Representative’s Deed: A deed given by a personal representative in accordance with the terms of a will is not taxable, including any term of the will that authorizes the personal representative to allocate and convey different parcels to different devisees instead of conveying undivided interests in each parcel. However, if a devisee takes a greater share in the realty than that to which the devisee is entitled under the will, the deed given by the personal representative to convey such greater share is subject to a tax computed upon the amount of any consideration given.

(5) Agent to Principal: A deed from an agent to his principal conveying real estate purchased for and with funds of the principal is not taxable.

(6) Partition Deed. Partition deed is not taxable, unless for consideration, some of the parties take shares greater in value than their undivided interest, in which event a tax attaches to each deed conveying such greater share computed upon the consideration for the excess. Where the property being partitioned is subject to a mortgage, tax is based on the mortgage balance in proportion to the identical interest which the grantor held in the property as of the date of transfer.

(7) Leases of Real Property. Leases are not taxable when the only consideration is the lessee’s promise to pay future rent.

(8) United States to Nonexempt Party. The United States or its agencies are exempt from payment of the tax and unless the instrument is exempted by any state or federal law, the required tax is the responsibility of the nonexempt party.

(9) Mortgagee to United States; Contract of Guaranty. Conveyance from a bank, savings and loan association, or other mortgagee to a federal agency pursuant to a contract of guaranty is not taxable.

(10) Conveyances Between Governmental Agencies. Conveyances from federal or state agencies or their instrumentalities to another agency or instrumentality of the state or federal government are not taxable.

(11) Conveyances Exempted by United States Code. Conveyances to the United States or its agencies or its instrumentalities when exempted from tax by the United States Code are not taxable.

(12) Eminent Domain Proceeding. Judgments and decrees in eminent domain proceedings by which title to real property is vested in a condemner are not subject to tax. Also, a deed given to a governmental entity under threat of condemnation or as a part of an out-of-court settlement of condemnation proceedings is not subject to tax.

(13) An assignment, transfer, or other disposition of real property from a nonprofit organization, as defined in Section 201.02(6), F.S., to the Board of Trustees of the Internal Improvement Trust Fund, or to any state agency, water management district, or local government, is exempt from tax. The exempt status of the document must be indicated by affixing the statement that is provided in label format on Documentary Stamp Tax – Subsection 201.02(6), Florida Statutes, Exemption (form DR-229, incorporated by reference in Rule 12B-4.003, F.A.C.)

(14) Confirmed Bankruptcy Plan. A document that transfers an interest in Florida real property pursuant to a Chapter 11 plan that was confirmed under Section 1129 of the Bankruptcy Code (Title 11 U.S.C.) prior to the date of the transfer is not taxable. A document that transfers Florida real property prior to confirmation of the bankruptcy plan is subject to tax.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.01, 201.02 FS. History–New 8-18-73, Formerly 12A-4.14, Amended 2-21-77, 12-26-77, 12-23-80, Formerly 12B-4.14, Amended 12-5-89, 6-4-90, 2-13-91, 2-16-93, 10-18-94, 12-30-97, 1-4-01, 4-14-09, 7-30-13, 1-25-26.

Fla. Admin. Code R. 12B-4.015 Affixing of Stamps; Alternate Method

History

• Rulemaking Authority 201.11 FS. Law Implemented 201.01, 201.02, 201.12, 201.13, 201.131, 201.132 FS. History–New 8-18-73, Formerly 12A-4.15, Amended 12-3-81, Formerly 12B-4.15, Repealed 12-30-97.

Fla. Admin. Code R. 12B-4.021 Imposition of Tax and Relevant Terms

History

• Rulemaking Authority 201.11 FS. Law Implemented 201.04, 201.05 FS. History–New 8-18-73, Formerly 12A-4.21, 12B-4.21, Repealed 2-16-93.

Fla. Admin. Code R. 12B-4.022 Sales and Transfers of Stock Subject to Tax

History

• Rulemaking Authority 201.11 FS. Law Implemented 201.04 FS. History–New 8-18-73, Formerly 12A-4.22, Amended 2-21-77, 2-3-80, Formerly 12B-4.22, Repealed 2-16-93.

Fla. Admin. Code R. 12B-4.023 Sales and Transfers of Stock Not Subject to Tax

History

• Rulemaking Authority 201.11 FS. Law Implemented 201.04 FS. History–New 8-18-73, Formerly 12A-4.23, Amended 2-3-80, Formerly 12B-4.23, Repealed 2-16-93.

Fla. Admin. Code R. 12B-4.024 Affixing of Stamps

History

• Rulemaking Authority 201.11 FS. Law Implemented 201.04 FS. History–New 8-18-73, Formerly 12A-4.24, Formerly 12B-4.24, Repealed 2-16-93.

Fla. Admin. Code R. 12B-4.025 Repeal of Stock Transfer Taxes

History

• Rulemaking Authority 201.11, 213.06(1) FS. Law Implemented 201.04 FS., Section 28, Chapter 87-102, Laws of Florida. History–New 2-16-93, Repealed 6-12-95.

Fla. Admin. Code R. 12B-4.031 Imposition of Tax

History

• Rulemaking Authority 201.11, 213.06(1) FS. Law Implemented 201.05 FS. History–New 8-18-73, Formerly 12A-4.31, 12B-4.31, Amended 12-5-89, 2-13-91, 2-16-93, Repealed 5-4-03.

Fla. Admin. Code R. 12B-4.032 Issues Subject to Tax

History

• Rulemaking Authority 201.11 FS. Law Implemented 201.05 FS. History–New 8-18-73, Formerly 12A-4.32, Formerly 12B-4.32, Amended 12-5-89, Repealed 5-4-03.

Fla. Admin. Code R. 12B-4.033 Issues Not Subject to Tax

History

• Rulemaking Authority 201.11 FS. Law Implemented 201.05 FS. History–New 8-18-73, Formerly 12A-4.33, 12B-4.33, Amended 12-5-89, Repealed 5-4-03.

Fla. Admin. Code R. 12B-4.034 Affixing of Stamps

History

• Rulemaking Authority 201.11 FS. Law Implemented 201.05 FS. History–New 8-18-73, Formerly 12A-4.34, 12B-4.34, Amended 12-5-89, Repealed 12-30-97.

Fla. Admin. Code R. 12B-4.041 Imposition of Tax

(1) Scope of Tax: Section 201.07, F.S., imposes a tax on all bonds, debentures, or certificates of indebtedness issued in the state by any person, and all instruments and documents, however termed, issued by any corporation with interest coupons or in registered form.

(2) Rate and Computation. The rate of tax on bonds is 35 cents on each $100 or fraction thereof of the face value provided; however, only that part of the value of the bonds, debentures or certificates of indebtedness issued by any person, the property of which is located within the state, bear to the whole value of the property described in said instrument or obligation require tax. Tax on bonds is measured by the face value, regardless of whether the bonds are sold at discounted prices.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.07 FS. History–New 8-18-73, Formerly 12A-4.41, Amended 12-26-77, Formerly 12B-4.41, Amended 12-5-89, 2-13-91, 2-16-93, 12-30-97, 1-25-26.

Fla. Admin. Code R. 12B-4.042 Issues Subject to Tax

(1) Secured by Mortgage or Deed of Trust. A mortgage or other evidence of an indebtedness recorded in Florida securing a bond or a certificate of indebtedness, whether issued inside or outside Florida, is subject to the tax under Section 201.08(1)(b), F.S., based on the amount secured.

(2) Religious or Nonprofit Organizations. Bonds issued by religious or nonprofit organizations are subject to tax.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.07, 201.08(1)(b) FS. History–New 8-18-73, Formerly 12A-4.42, Amended 12-26-77, Formerly 12B-4.42, Amended 12-5-89, 12-30-97, 1-25-26.

Fla. Admin. Code R. 12B-4.043 Issues Not Subject to Tax

(1) Assignment of Bond: An instrument merely representing an assignment of a bond is not taxable.

(2) Surety Bonds. Indemnity, fidelity, and surety bonds are not taxable.

(3) Bond Issued in Another State. Where all steps in the issuance of a bond take place outside Florida, the bond is not taxable. However, where bonds are secured by a mortgage or trust deed recorded in Florida, the mortgage or trust deed is taxable under Section 201.08(1)(b), F.S.

(4) Governmental Bonds. All bonds issued or sold by federal or state agencies, counties, municipalities, or any political subdivisions are exempt.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.07 FS. History–New 8-18-73, Formerly 12A-4.43, Amended 12-26-77, Formerly 12B-4.43, Amended 12-5-89, 12-30-97, 1-25-26.

Fla. Admin. Code R. 12B-4.044 Affixing of Stamps

History

• Rulemaking Authority 201.11 FS. Law Implemented 201.07 FS. History–New 8-18-73, Formerly 12A-4.44, Amended 12-26-77, Formerly 12B-4.44, Repealed 12-30-97.

Fla. Admin. Code R. 12B-4.051 Imposition of Tax

(1) A tax is imposed on promissory notes, non-negotiable notes, written obligations to pay money, assignments of salaries, wages, or other compensation, which are made, executed, delivered, sold, transferred, or assigned in the state. A renewal note, as defined in Section 201.08(5), F.S., is also taxable unless it qualifies for the exemption provided for under Section 201.09(1), F.S. The rate of tax is 35 cents on each $100 or fraction thereof of the indebtedness or obligation evidenced by the document. The tax on any document described in this subsection will not exceed $2,450.

(2) Mortgages that incorporate the certificate of indebtedness, not otherwise shown in separate instruments, are taxable. Furthermore, a mortgage, trust deed, security agreement, or other evidence of indebtedness filed or recorded in this state which secures a promissory note or written obligation to pay money at the time of recordation is also taxable. A notation must be made on the promissory note or written obligation to pay money, at the time of recordation, that the proper tax, and the amount thereof, has been paid on the mortgage, trust deed, security agreement, or other evidence of indebtedness. A renewal mortgage, trust deed, security agreement, or other evidence of indebtedness, as defined in Section 201.08(5), F.S., is also taxable unless it qualifies for the exemption provided under Sections 201.09(2) and 201.091, F.S. The rate of tax is 35 cents on each $100 or fraction thereof of the indebtedness or obligation evidenced thereby. The $2,450 tax limit placed on a note or other written obligation to pay money, executed in Florida or approved and accepted in Florida, does not apply to a mortgage, security agreement, or other lien filed or recorded in Florida. A mortgage, security agreement, or other lien filed or recorded in Florida is subject to documentary stamp tax on the full amount of the obligation secured thereby. Example: A term obligation of $1,000,000 was executed in Florida on July 1. A mortgage securing the full amount of the obligation was recorded in Florida on that same date. Documentary stamp tax in the amount of $3,500 was due on the mortgage at the time of recordation.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.08 FS. History–New 8-18-73, Formerly 12A-4.51, Amended 8-8-78, 11-29-79, Formerly 12B-4.51, Amended 12-5-89, 2-13-91, 2-16-93, 12-30-97, 7-28-98, 5-4-03, 1-25-26.

Fla. Admin. Code R. 12B-4.052 Computation of Tax; Definitions

(1)(a) Notes and Written Obligations to Pay Money. The amount upon which the tax is measured, when the documents provide for a discount of unearned interest or finance charges in exchange for early payment, is the amount financed or principal indebtedness. The payment of interest or finance charges is a contingent obligation and is not taxable. Miscellaneous charges, such as credit life insurance, which are included in the amount financed or principal indebtedness are not contingent obligations at the time the note is executed and are taxable.

(b) Mortgages and Other Evidences of Indebtedness: The tax required to be paid on mortgages and other evidences of indebtedness filed or recorded in this state is calculated on the indebtedness or obligation secured by the mortgage, regardless of whether the indebtedness is contingent.

(2) Retail Installment Contract: “Retail installment contract” or “contract” means an instrument or instruments reflecting one or more retail installment transactions entered into in this state pursuant to which goods or services may be paid for in installments. It does not include a revolving account or an instrument reflecting a sale pursuant thereto.

(3) Instruments Deemed Retail Installment Contract. An instrument which is in fact a retail installment contract is taxable under Section 201.08(1)(a), F.S., even though the instrument may be designated a revolving charge account.

(4) Taxable Documents: As used in these regulations, “taxable documents” includes promissory notes, nonnegotiable notes, written obligations to pay money, assignment of salaries, wages, or other compensation, mortgages, trust deeds, security agreements, and other evidences of indebtedness filed or recorded in the state, and for each renewal of the same, unless such renewal would be exempt under Section 201.09, F.S.

(5) Written Obligation or Promise to Pay Money.

(a) The tax levied by Section 201.08(1)(a), F.S., is an excise tax on the promise to pay, regardless of the terms and certainty of payment. Where a grantee accepts a deed containing the assumption of a note, a mortgage, or both, the assumption constitutes a promise to pay and is taxable. If the holder of a contract can recover a judgment by proving the contract and nonpayment, the contract constitutes a promise to pay and is taxable.

(b) Taxability of a written obligation to pay money is determined from the form and face of the document.

1. Whether a document is taxable is determined by reference to that document and any other document or documents expressly incorporated therein.

2. A document does not expressly incorporate another document by implication or by mere reference and description of the other document.

3. Express incorporation occurs when words in a document under examination provide that another document or documents are incorporated into the document under examination.

4. Following are examples of terminology whereby a document is expressly incorporated into the document under examination.

a. [document] is incorporated herein;

b. [document] the terms of which are incorporated herein;

c. [document] is made a part hereof;

d. [document] is a part of [this document];

e. The agreement consists of [this document] and [separate document] the same as if it were fully set forth herein;

f. [document] shall become a part of [document];

g. [document] and [document] constitute a single document.

5. Following are examples of terms in a document under examination that do not expressly incorporate another document, unless the document under examination otherwise contains language that meets the criteria of subparagraphs (b)3. or (b)4. above.

a. In the attachment hereto;

b. Is subject to;

c. Is subject to the terms of;

d. Pursuant to;

e. Pursuant to the terms of;

f. As set forth in;

g. Reference is made to;

h. Governed by.

6. An integration clause or a default remedy clause, does not, by itself, expressly incorporate another document, unless the clause contains language that meets the criteria of subparagraph 12B-4.052(5)(b)3. or 4., F.A.C.

(6) Certificate of Indebtedness: Certificates of indebtedness issued by corporations are subject to tax.

(7) Interest. Where a borrower promises to pay both the amount financed and interest during the term of the note, the borrower’s only absolute obligation or indebtedness at the time he signs such note is for the amount financed and not for unearned interest.

(8) Open-end and Future Advance Mortgages. Tax is due on the mortgage when filed or recorded in the state based upon the maximum indebtedness secured, exclusive of any amount that may be covered in a future advance clause. Regardless of whether the indebtedness secured by the mortgage is contingent, the mortgage is subject to tax based upon the maximum amount of the indebtedness secured. Each future advance made under a future advance clause is taxable when such future advance is made. The mortgage will not be enforceable in any court in this state, as to the future advance, until the tax due on each advance has been paid.

(9) Adjustable Rate Mortgages: Tax is due at the time of recordation or execution on an adjustable rate mortgage based upon the principal amount of the note it secures, which may include accruing interest added to the principal if the increased amount is a stated or computable amount at the time of recordation or execution. A renewal of an adjustable rate note or mortgage is taxable only on the amount the principal is increased if all other requirements of Section 201.09(3), F.S., are met.

(10) Renewals. Each renewal, as defined in Section 201.08(5), F.S., of a written obligation to pay money, or of a mortgage or other security agreement, is taxable, unless it satisfies the requirements of Section 201.09(1), F.S.

(a) Except as provided in paragraph (f), a written agreement, such as a loan agreement, that alters or modifies the contract or obligation of an original promissory note, mortgage, trust deed, security agreement, or other evidence of indebtedness, by adding one or more obligors, increasing the principal balance, changing the interest rate, changing the maturity date, changing the payment terms, or assuming the terms of the original contract or obligation, is a renewal of the original note, mortgage, trust deed, security agreement, or other evidence of indebtedness. A renewal that does not add obligor(s) and merely changes the interest rate, the maturity date, or the payment terms is not subject to tax, provided tax was paid on the original document and the original document is attached to the renewal.

(b) A renewal of a term obligation is subject to tax on the amount of the increase of the unpaid principal balance, with a maximum tax due of $2,450 on the aggregate of the original obligation and all renewals thereof that satisfy the requirements of Section 201.09(1), F.S. A term loan with periodic disbursements, such as a construction loan, may be renewed for the undisbursed amount, together with the unpaid balance of the amount that was previously disbursed, without payment of additional tax.

(c) A renewal of a revolving obligation is subject to tax on the amount of the increase over the original face amount of the original obligation with a maximum tax due of $2,450 on the aggregate of the original obligation and all renewals thereof that satisfy the requirements of Section 201.09(1), F.S.

(d) Under paragraphs (b) and (c), a separate side note is not required. The principal balance or original face amount can be indicated by a notation on the renewal document, by reference to the document being renewed, or by other proof retained by the borrower(s) or lender.

(e) The maximum tax due on an original obligation and all renewals thereof that satisfy the requirements of Section 201.09(1), F.S., is $2,450. An obligation upon which the maximum tax due of $2,450 was paid may be renewed, so long as the requirements of Section 201.09(1), F.S., are met, without additional tax assessed. The $2,450 tax limitation does not apply to a mortgage, security agreement, or other lien filed or recorded in Florida.

1. Example: The proper amount of tax of $2,450 was paid on a term obligation of $1,000,000, that was executed in Florida on July 1, 2024, and was not secured by a mortgage, security agreement, or other lien filed or recorded in Florida. On August 1, 2024, the obligation was renewed, meeting the requirements of Section 201.09(1), F.S., and providing for a $500,000 increase of the unpaid principal balance. No additional tax was due on the renewal, since the maximum aggregate tax of $2,450 was paid on the original obligation. Each renewal thereafter is not subject to additional tax, so long as each renewal meets the requirements of Section 201.09(1), F.S.

2. Example: The proper amount of tax of $1,750 was paid on a revolving obligation of $500,000, that was executed in Florida on July 1, 2024, and was not secured by a mortgage, security agreement, or other lien filed or recorded in Florida. On August 1, 2024, the obligation was renewed, meeting the requirements of Section 201.09(1), F.S., and providing for a $500,000 increase above the original face amount of the original obligation. Additional tax of $700 was due on the renewal, bringing the total tax paid on the original obligation and all renewals thereof to the maximum aggregate amount of $2,450. Each renewal thereafter is not subject to additional tax, so long as each renewal meets the requirements of Section 201.09(1), F.S.

3. Example: The proper amount of tax of $1,750 was paid on a revolving obligation of $500,000, that was executed in Florida on July 1, 2024, and was not secured by a mortgage or other lien filed or recorded in Florida. On August 1, 2024, the obligation was renewed, meeting the requirements of Section 201.09(1), F.S., and providing for a $100,000 increase above the original face amount of the original obligation. Additional tax of $350 was due on the renewal, bringing the aggregate tax paid on the original obligation and this renewal to $2,100. Additional tax of $350 will be due on any renewal or renewals thereafter, where the amount of the increase or increases equals or exceeds $100,000 (the amount of the increase or increases required to bring the aggregate tax to $2,450).

4. Example: The proper amount of tax of $2,450 was paid on a term obligation of $700,000, that was executed in Florida on July 1, 2024, and was secured by a mortgage recorded in Florida. On August 1, 2024, the obligation was renewed, meeting the requirements of Section 201.09(1), F.S., and providing for a $500,000 increase of the unpaid principal balance. The mortgage was spread to secure the renewal. Additional tax of $1,750 was due on the mortgage spreader, since there is no limit on the amount of tax due on a mortgage.

(f) Notwithstanding paragraphs (a), (b) and (c):

1. A renewal note that adds one or more obligors is subject to tax on the full amount of the obligation. The maximum tax due on a renewal that adds one or more obligors is $2,450.

2. An assumption of an existing obligation is subject to tax on the full amount of the note assumed. The maximum tax due on an assumption of an existing obligation is $2,450.

3. A renewal note is subject to tax on the full amount of the obligation, with a maximum tax due of $2,450, if the proper tax was not paid on the instrument being renewed.

a. A renewal of a promissory note is subject to tax on the full amount of the obligation, with a maximum tax due of $2,450, if the note being renewed is not attached with cancelled stamps or an appropriate notation showing full payment of tax imposed by law.

b. A renewal mortgage or other security document must state the county’s official recording identifying information of the original mortgage or other security document being renewed which evidences prior payment in full of tax due, or must have attached to it for recording the original note or a copy thereof with evidence of proper tax paid. Unless this evidence is present, the renewal mortgage is subject to tax on the full amount of the obligation.

4. If the original note and mortgage is satisfied, an instrument that might otherwise appear to be a renewal of the original note and mortgage is taxable on the full amount of the obligation. (In this case, the instrument represents a new obligation.)

(g) A written agreement that does not modify the terms of the indebtedness evidenced by a promissory note, mortgage, trust deed, security agreement, or other evidence of indebtedness in a way described in paragraph (a) is not a renewal. Examples of modifications to documents that are not renewals include those given or recorded to:

1. Correct errors;

2. Modify covenants, conditions, or terms unrelated to the debt;

3. Sever a lien into separate liens;

4. Provide additional or substitute security for the indebtedness;

5. Consolidate indebtedness or collateral;

6. Add, change, or delete guarantors;

7. Substitute a new mortgagee or payee; or

8. Change only the interest rate, made as the result of the discontinuation of an index to which the original interest rate is referenced.

(h) When a promissory note references terms (interest rate, payments terms, or maturity date) contained in a loan agreement and neither document expressly incorporates the other, a modification or amendment of such terms contained in the loan agreement is not treated as a renewal of the promissory note. However, if the modifying document amends the promissory note itself in a way described in the definition of a renewal in paragraph (a), then the modifying document is a renewal.

(11) Line of Credit Mortgages. The tax required on a mortgage recorded to secure a revolving line of credit is calculated on the maximum amount of the secured line of credit, whether or not the obligation to repay is contingent upon the advancement of sums under the line of credit.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.08, 201.09 FS. History–New 8-18-73, Formerly 12A-4.52, Amended 8-8-78, 3-12-79, 2-3-80, 3-30-81, 8-29-84, Formerly 12B-4.52, Amended 12-5-89, 2-13-91, 10-18-94, 12-30-97, 7-28-98, 1-4-01, 5-4-03, 5-23-22, 1-25-26.

Fla. Admin. Code R. 12B-4.053 Taxable Documents

(1) Signature Required. Tax is due on a document that contains a promise to pay, and on each renewal thereof. To be taxable, the document must be signed by the maker or obligor.

(2) Purported Lease. An instrument which purports to be a lease, whereby title to tangible personal property remains vested in the seller until the total of the payment of rentals equals the value of the property leased, at which time the “lessee” becomes the unconditional owner of the property, is a “mortgage” and is subject to tax, even though payment of the rentals is not an unconditional obligation to pay money.

(3) Executed to Governmental Agencies or Instrumentalities. Instruments made payable to the United States or its agencies, or to the state, counties, municipalities, or any political subdivision of the state, are taxable to the nonexempt party unless the instrument is exempt by federal or state law.

(4) Right to Rescind. Lot purchase contracts in existence beyond a stated period of time without having been rescinded by the purchaser as provided for in the terms of the contract, constitute “written obligations to pay money” subject to tax.

(5) Chattel Mortgage. A chattel mortgage or conditional bill of sale, which contains in the body of the contract or mortgage the promise to pay not evidenced by a separate note or writing must evidence the required tax. If there is a separate promissory note evidencing the indebtedness, and a recorded chattel mortgage which is security for such note, the tax is to be paid on the recorded document at the time of recordation and a notation of the tax and the amount on the promissory note.

(6) Document Signed in Another State; Payable in Florida. Where a promissory note is signed by its maker in another state and mailed to the payee in Florida, after which it is examined, approved, and accepted, and a loan in the principal amount of the note is made to the maker, such note is subject to tax.

(7) Credit Unions. A promise to pay given to either state or federally chartered credit unions is subject to tax.

(8) Demand Loans. Demand loans that contain a written obligation to pay money are subject to tax based upon the full amount of the demand loan.

(9) Banks, Savings and Loan Associations: Notes or other written obligations to pay money executed by national or state banks and state or federal chartered savings and loan associations are subject to tax.

(10) Religious or Nonprofit Organizations. A note or other obligation to pay money executed by a religious or nonprofit organization is subject to tax.

(11) Bankers or Trade Acceptances. Bankers or trade acceptances, when payable on a date subsequent to acceptance, are written obligations for the payment of money from the date of such acceptance and are taxable.

(12) Annuity Agreements. An annuity agreement issued by a party to an individual in consideration of gifts or donations is taxable as a written obligation to pay money, and the tax is determined by the value of the annuity based upon the life expectancy of the donee.

(13) Vendor’s Lien. Where a deed of conveyance recites the retention of a vendor’s lien and contains a provision that the vendee agrees to the reservation of such lien and to pay the unpaid balance of the purchase price, tax is due based upon the unpaid balance.

(14) Assumption of Note and Mortgage. An assumption of any note, any mortgage, or both, whether incorporated in a conveyance which is accepted by the purchaser, or assumed in a separate document, is a taxable renewal under Section 201.08(1)(a), F.S., and not exempt under Section 201.09, F.S.

Cross Reference – subsections 12B-4.052(5) and (11), F.A.C.

(15) Wage Assignments: Assignments of salaries or wages are taxable.

(16) Payment in Full After Execution of Document: A document which constitutes a written obligation to pay money is taxable upon its execution even though payment may be made immediately after execution regardless of the period of time the obligation may be outstanding.

(17) Contracts which Convey an Interest in Realty. A contract which contains a written obligation to pay money and which conveys an interest in realty, such as a timber contract or a mineral contract, is taxable as a conveyance of an interest in realty under Section 201.02(1)(a), F.S., and is also taxable as a written obligation to pay money under Section 201.08(1)(a), F.S.

(18) Agreement or Contract for Deed. An agreement or contract for deed that meets the statutory definition of a “mortgage” is subject to tax when filed or recorded in Florida based upon the indebtedness secured, even if the indebtedness is contingent. An agreement or contract for the sale of land that is not recorded and contains no written obligation to pay money is not subject to tax.

(19) “Wrap-Around” Notes. Tax is due upon the face amount of a note under which a maker obligates himself to pay a sum certain, even though the payee obligates himself to use such payments to pay off a prior note.

(20) Assignment of Mortgage. The assignment of a mortgage as collateral security is taxable when recorded in Florida.

Cross Reference – subsection 12B-4.054(4), F.A.C.

(21) Note Executed and Delivered. All notes or written obligations to pay money delivered to the lender, such as master notes and notes drawn in connection with a line of credit, letter of credit, bail bond, or otherwise, executed in Florida or approved and accepted in Florida, are subject to tax. Tax is due based on the face amount of the note, with a maximum tax due of $2,450, whether or not funds are advanced at time of delivery. If the note is secured by a recorded mortgage, tax must be paid on the mortgage at time of recording and a notation made on the note that tax has been paid on the mortgage. The $2,450 tax limit placed on a note or other written obligation to pay money, executed in Florida or approved and accepted in Florida, does not apply to a mortgage, security agreement, or other lien filed or recorded in Florida. Renewals are also taxable unless exempted under Section 201.09, F.S.

(22) Student Loans. All notes executed by students for loans that are guaranteed by the federal government or the state are taxable, unless federal regulations prohibit the assessment of such taxes against the borrower.

(23) Out-of-State Notes – Secured by Florida Mortgage. A mortgage recorded in Florida encumbering Florida real or personal property which is security for an out-of-state note is subject to tax as follows:

(a) Indebtedness Secured. The tax is based upon the full amount of the indebtedness secured, whether the indebtedness is contingent or not, unless paragraphs (b) and (c) apply. See also Sections 201.08(5) and (7), F.S.

(b) Secured by Multi-State Mortgage. When a note is made in another state and is secured by a multi-state mortgage recorded in Florida which describes and pledges the Florida property and the out-of-state property, tax is due on the mortgage when filed or recorded in Florida, based upon the percentage of indebtedness which the value of the mortgaged property located in Florida bears to the total value of all the mortgaged property. However, when the mortgage limits recovery to less than the amount of the indebtedness secured, the tax is due on the amount to which recovery is limited. The mortgage is required to state the value of the property in Florida and the other state(s) and also the percentage of the Florida property in relation to the total property. When the tax due is based upon the amount to which recovery is limited on a mortgage, the mortgage is not required to state the value of the property in Florida and the other state(s), nor is the mortgage required to state the percentage of the Florida property in relation to the total property.

COMPUTATION OF TAX:

Value of Florida property/Total value of all property x Indebtedness = Amount

Example:

Value of Florida property

$100,000(1)

Value of out-of-state property

$900,000

Total Value of all property

$1,000,000(2)

Amount of Indebtedness:

$1,000,000(3)

(1) $100,000/(2) $1,000,000 x (3) $1,000,000* = $100,000*

*Tax would be calculated on $100,000.

(c) Secured by Florida Mortgage only. When a mortgage describing and pledging only the Florida property is recorded in Florida, which only partially secures an out-of-state loan, and the loan is also secured by a mortgage(s) on out-of-state property, only a pro rata portion of the indebtedness secured by the Florida mortgage is taxable. The tax will be based upon the percentage of indebtedness which the value of the mortgaged property located in Florida bears to the total value of all mortgaged property, unless the value of the Florida property exceeds this amount. In such case, the tax will be based upon the value of the Florida property. In no event will the tax be due on more than the indebtedness secured by the Florida mortgage or any other amount to which the mortgagee limits its recovery. The mortgage is required to state the value of the property in Florida and the other state(s) and also the percentage of the Florida property in relation to the total property. When the tax due is based upon the amount to which recovery is limited on a mortgage, the mortgage is not required to state the value of the property in Florida and the other state(s), nor is the mortgage required to state the percentage of the Florida property in relation to the total property.

COMPUTATION OF TAX:

Example 1:

Value of Florida property/Total value of all property x Loan = Amount*

Value of Florida property

$400,000(1)

Value of out-of-state property

$100,000

Total value of all property

$500,000(2)

Amount of loan

$550,000(3)

(1) $400,000/(2) $500,000 x (3) $550,000 = $440,000*

*Tax is calculated upon the pro rata amount of the loan in the amount $440,000, rather than the value of the Florida property, since the value of the Florida property is less than the pro rata amount of the indebtedness.

Example 2:

Value of Florida property/Total value of all property x Loan = Amount

Value of Florida property

$600,000(1)

Value of out-of-state property

$900,000

Total value of all property

$1,500,000(2)

Amount of loan

$1,200,000(3)

(1) $600,000*/(2) $1,500,000 x (3) $1,200,000 = $480,000

*Tax is calculated on value of Florida property in the amount of $600,000, rather than the pro rata amount of the loan, since the value of the Florida property is more than the pro rata amount of the indebtedness.

Example 3:

Value of Florida property/Total value of all property x Loan = Amount

Value of Florida property

$800,000(1)

Value of out-of-state property

$200,000

Total value of all property

$1,000,000(2)

Amount of Loan

$600,000(3)

(1) $800,000/(2) $1,000,000 x (3) $600,000* = $480,000

*Tax is calculated on $600,000, since the amount of indebtedness is less than the value of the Florida property but more than the pro rata amount of the loan.

(24) In-State Notes-Secured by Florida Mortgage. A mortgage recorded in Florida encumbering Florida real or personal property, which is security for an in-state note, is subject to tax as follows:

(a) Secured by Multi-State Mortgage. When a note is made in Florida and is secured by a multi-state mortgage recorded in Florida, the tax is due on the full amount of the note for notes up to $700,000. For notes larger than $700,000, the tax is due on at least $700,000, or the percentage of the indebtedness which the value of the mortgaged property located in Florida bears to the total value of all the mortgaged property, whichever is greater. However, where the mortgage limits recovery to less than the amount of the indebtedness secured, the tax is due on the full amount of the note, up to $700,000 (with a maximum tax due of $2,450), or the amount to which the mortgage limits recovery, whichever is greater. The mortgage is required to state the value of the property in Florida and the other state(s) and also the percentage of the Florida property in relation to the total property. When the tax due is based upon the amount to which recovery is limited on a mortgage, the mortgage is not required to state the value of the property in Florida and the other state(s), nor is the mortgage required to state the percentage of the Florida property in relation to the total property.

(b) Secured by Florida Mortgage only. When a note is made in Florida and is secured by a mortgage on Florida property and is also secured by an out-of-state mortgage, the tax is due on the full amount of the note for notes up to $700,000. For notes larger than $700,000, the tax is due on $700,000, or the percentage of the indebtedness which the value of the mortgaged property located in Florida bears to the total value of all the mortgaged property, or the value of the property located in Florida, whichever is greater. However, where the mortgage limits recovery to less than the amount of the indebtedness secured, the tax is due on the full amount of the note, up to $700,000 (with a maximum tax due of $2,450), or the amount to which the mortgage limits recovery, whichever is greater. The mortgage is required to state the value of the property in Florida and the other state(s) and also the percentage of the Florida property in relation to the total property. When the tax due is based upon the amount to which recovery is limited on a mortgage, the mortgage is not required to state the value of the property in Florida and the other state(s), nor is the mortgage required to state the percentage of the Florida property in relation to the total property.

(25) Recorded Evidences of Obligations: Tax is required on a mortgage, trust deed, security agreement, or other evidence of indebtedness filed or recorded in this state. The tax shall be due on the full amount of the primary obligation secured by said mortgage, trust deed, security agreement, or other evidence of indebtedness. The tax is due only on the full amount of the primary obligation, whether the primary obligation is secured by one or more mortgages from the same obligor, or by an additional or supplemental mortgage from another party. All such mortgages are deemed to secure the primary obligation. For example, a mortgage given as additional collateral, to secure a cross-collateralization agreement or guaranty agreement, or given as substitution of collateral, will not require additional tax if proper tax is paid on the full amount of the primary obligation. However, where proper tax is not paid on the full amount of the primary obligation, the tax shall be paid on any additional or supplemental mortgage. A document recorded which renews or extends an existing obligation is subject to tax, unless it meets the requirements of Section 201.09, F.S. Some examples of documents on which tax may be required, within the limitations stated in this rule, when recorded in this state are:

(a) Mortgage;

(b) Trust Deed;

(c) Indenture;

(d) Supplemental Mortgage or Indenture;

(e) Amendment to Mortgage or Indenture;

(f) Mortgage Modification or Extension Agreement;

(g) Assumption Agreement;

(h) Mortgage Securing Guaranty;

(i) Mortgage Securing Indemnification Agreement;

(j) Mortgage Securing Bail Bond;

(k) Mortgage Securing Letter of Credit; and,

(l) Mortgage Securing Line of Credit.

(26) Promissory Notes, Nonnegotiable Notes, and Written Obligations to Pay Money Made, Executed, and Delivered in Another State, and not Secured by a Florida Mortgage: Promissory notes, nonnegotiable notes, and written obligations to pay money (hereinafter, called notes) made, executed, and delivered to a Florida lender in another state are not subject to Florida’s documentary stamp tax. If the notes then are brought into Florida for collection after they have been made, executed, and delivered to the Florida lender, or its agent, in another state, no tax is due. However, if a note is made and executed in another state and delivered to the lender in Florida, the note would be subject to tax. The Department will presume that if a note is made payable to a Florida lender and the note is held by the Florida lender in Florida, then tax will be due unless the lender can establish that the note was made, executed, and delivered to the lender outside the state. Proof sufficient to establish that a note is not subject to tax includes:

(a) A sworn affidavit made before an out-of-state notary public at the time of the signing of the note by the borrower(s) and delivery of the note to the lender attesting that the signing and delivery of the note occurred in the presence of the out-of-state-notary, or

(b) The note itself could bear a notarization and acknowledgment as to where the note was executed, together with an affidavit made before an out-of-state-notary by the lender attesting that the note was delivered to the lender, or its agent out-of-state. Execution and delivery need not occur in the same jurisdiction, provided that both execution and delivery occurred outside of Florida, or

(c) Any other proof that the borrower made, executed, and delivered the note in another state to a Florida lender. Travel vouchers, airplane stubs, and hotel receipts corresponding with the signing and delivery of the note would be acceptable proof.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.01, 201.08 FS. History–New 8-18-73, Formerly 12A-4.53, Amended 2-21-77, 11-29-79, 4-11-80, 7-27-80, 12-23-80, 3-30-81, 12-30-82, 8-29-84, Formerly 12B-4.53, Amended 12-29-86, 12-5-89, 2-13-91, 10-18-94, 12-30-97, 7-28-98, 1-4-01, 5-4-03, 1-25-26.

Fla. Admin. Code R. 12B-4.054 Exempt Transactions

(1) Registered Security Dealers: Promissory notes for a duration of thirty days or less, made by a security dealer registered under the provisions of Chapter 517, F.S., shall be exempt from tax, provided these promissory notes are secured by a collateral security as defined in Section 517.021, F.S., and upon which the tax under Chapter 201, F.S., has been paid.

(2) Wholesale Warehouse Mortgage Agreements: All promissory notes, non-negotiable notes and other written obligations to pay money given pursuant to a wholesale warehouse mortgage agreement as provided under Section 201.21, F.S., shall be exempt from the tax only when the amount of tax due on or in respect to the collateral obligation(s) given as security has been paid. The exemption does not apply to the amount of the indebtedness evidenced by a note or other written obligation to pay money that is in excess of the amount of the indebtedness evidenced by such collateral obligation(s) given as security. The maximum of tax due on any excess of the indebtedness is $2,450.

(3) Contingent Obligations: A written promise to pay money which is not fixed and absolute at the time of execution is not subject to tax.

(4) Assignment of Mortgage: An assignment of a mortgage by a lender (mortgagee or owner of the asset) to a new lender who has purchased the note and mortgage and becomes the holder of the note and mortgage is not taxable.

Cross Reference – subsection 12B-4.053(20), F.A.C.

(5) Assignment of Conditional Sale Contract. An assignment of a conditional sale contract is not taxable. However, the assignment of a contract as collateral security for a new loan, when recorded in Florida, is taxable.

(6) Unsigned Documents. A note or written obligation to pay money which is not signed by a maker or obligor is not taxable.

(7) Rights to Rescind. Lot purchase contracts rescinded by purchasers within the stated time period are not subject to tax.

Cross Reference – subsection 12B-4.053(4), F.A.C.

(8) Cashier’s Check. A cashier’s check is a check, draft, or other order for the payment of money drawn by the cashier of a bank upon either his or her own bank or upon some other bank, in which funds of his or her bank are deposited, and is not a written obligation for the payment of money. No tax is due on a cashier’s check.

(9) Contract Brought into Florida for Collection. Contracts for the purchase and sale of real property located in Florida, made, executed and delivered in other states, and sent into Florida for purposes of collection only are not subject to tax.

(10) Surety Bonds. Surety bonds which are to insure the doing of certain things required by the conditions of such bonds and which contain a promise to pay a sum only in the event of the happening of the named contingency are not taxable.

(11) Travelers Checks. A travelers check issued by a bank that becomes an order for the payment of money by the bank when properly countersigned is not taxable.

(12) Military Bases – Written Obligation to Pay Money. Written obligations to pay money executed and delivered on military bases are not taxable. However, recorded documents evidencing such indebtedness are subject to tax.

(13) Credit Unions – Written Obligations to Pay Money. Written obligations to pay money executed by state or federally chartered credit unions are exempt.

(14) Obligations Executed by Governmental Entities. No tax is required on obligations executed by the United States or its agencies, or by the state, counties, municipalities, or any political subdivisions or agency of the state.

(15) Industrial Development Authorities and Florida Housing Finance Corporation. Lease purchase agreements, agreements for sale, agreements or contracts for deeds, notes and mortgages securing a promise to pay money to an industrial development authority or the Florida Housing Finance Corporation by a private entity in connection with the issuance of bonds under Chapters 159 and 420, F.S., are exempt from tax under Section 201.08, F.S.

(16) Foreign Notes.

(a) Notes and other written obligations to pay money are exempt from tax if the makers or obligors are individuals residing outside the United States or business organizations or other persons located outside the United States, at the time of making or the execution of the note or written obligation. This exemption does not apply to the following:

1. Mortgages, trust deeds, security agreements, or other evidences of indebtedness relating to the purchase or transfer of real property located in Florida and filed or recorded in Florida.

2. If the purpose of the financing is to finance all or part of the purchase of personal property for use in Florida, unless such personal property is identifiable as being directly and solely in connection with the production, preparation, storage, or transportation of tangible personal property for export or import, and the lender is a banking organization defined in Section 201.23(4)(b), F.S.

3. If at the date of the instrument, the individual obligor resides within the United States; or, if a majority of the equity securities of the maker of the document are owned by individuals residing within the United States or business organizations located within the United States.

(b) The lender will be entitled to rely upon the written certificate of each maker or obligor certifying as to the purpose of the financing and residency of the maker or obligor or, if a corporate borrower, that a majority of its equity securities are not owned by individuals residing within the United States or business organizations or other persons located within the United States.

(17) International Banking Transactions.

(a) Tax is not required on notes and evidences of indebtedness, including, but not limited to, financing statements, drafts, and bills of exchange, that are made, issued, drawn upon, accepted, delivered, shipped, received, signed, executed, assigned, transferred, or sold by or to a banking organization as defined in Section 201.23(4)(b), F.S., in the conduct of an international banking transaction, as defined in Section 201.23(4)(b), F.S. The exemption does not apply if the financing is for the purchase or transfer of real property located in Florida, or secured by a mortgage, deed of trust, or other lien upon real property located in Florida.

(b) Any financing that is only partially identifiable as being in connection with the production, preparation, storage, or transportation of tangible personal property or services for export from or import into the United States does not qualify for the exemption.

(c) The lender must prepare a statement to be placed with each loan that documentation qualifying the transaction for the exemption provided by this chapter was submitted to the lender and is in the file.

(18) Financing Statements – Chapter 679, Uniform Commercial Code. The filing or recording in Florida of a UCC Financing Statement is not taxable under Section 201.08(1), F.S., unless the note, security agreement or other obligatory document is also filed or recorded. A notation on the UCC Financing Statement must state that the stamp tax has been paid on the promissory instruments and will be paid on any additional promissory instrument, or that no tax is due.

(19) Confirmed Bankruptcy Plan: A promissory note or other written obligation to pay money, bond, mortgage, trust deed, security agreement or other evidence of indebtedness filed or recorded in Florida issued pursuant to a Chapter 11 plan which was confirmed under Section 1129 of the Bankruptcy Code (Title 11 U.S.C.), prior to the date of the issuance is not taxable. (11 U.S.C. Section 1146(a); Florida Department of Revenue v. Piccadilly Cafeterias, Inc., 554 U.S. 33 (2008))

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.01, 201.08, 201.09, 201.10, 201.11, 201.21, 201.22, 201.23, 201.24, 517.32 FS. History–New 8-18-73, Formerly 12A-4.54, Amended 2-21-77, 11-29-79, 3-5-80, 4-11-80, 7-27-80, 12-23-80, 2-12-81, Formerly 12B-4.54, Amended 3-30-81, 12-3-81, 12-29-86, 12-5-89, 2-13-91, 10-18-94, 12-30-97, 7-28-98, 1-4-01, 5-4-03, 7-30-13, 1-25-26.

Fla. Admin. Code R. 12B-4.055 Affixing of Stamps; Alternate Method

History

• Rulemaking Authority 201.11 FS. Law Implemented 201.01, 201.08, 201.12, 201.13, 201.131, 201.132, 201.133 FS. History–New 8-18-73, Formerly 12A-4.55, Amended 3-13-79, 12-3-81, Formerly 12B-4.55, Amended 12-5-89, Repealed 12-30-97.

Fla. Admin. Code R. 12B-4.060 Tax on Transfers of Ownership Interest in Legal Entities

(1)(a) Scope. This rule applies to transfers of an ownership interest in a conduit entity to which real property was transferred without tax paid on the full consideration for the property.

(b) Definitions. For purposes of this rule:

1. “Conduit entity” means a legal entity, or its successor entity, to which real property is transferred without full consideration by a grantor who owns a direct or indirect interest in the entity.

2. “Full consideration” means the consideration that would be paid in an arm’s length transaction between unrelated parties, which would be the consideration as provided in Section 201.02(1)(a), F.S., but an amount not less than the fair market value of the real property.

(2) When there is a transfer of an ownership interest in a conduit entity for consideration within 3 years after a transfer of real property to the conduit entity, the transfer of such ownership interest is subject to tax if the conduit entity continues to own property that would cause the entity to be considered a conduit entity.

(3) The tax is based on the consideration paid or given for the ownership interest in the conduit entity, which includes the amount of any mortgage attached to real property that was transferred to the conduit entity. If the conduit entity owns assets other than the real property referred to in subsection (2), tax is calculated by multiplying the consideration for the interest in the conduit entity by the tax rate and then multiplying the result by a fraction, the numerator of which is the value of the real property referred to in subsection (2) and the denominator of which is the value of all assets owned by the conduit entity.

(4) A gift of an ownership interest in a conduit entity is not subject to tax to the extent there is no consideration.

(5) The transfer of shares or similar equity interests that are dealt in or traded on public, regulated security exchanges is not subject to the tax.

(6)(a) If an instrument is filed or recorded in Florida by the 20th day of the month following the month the ownership interest is transferred, the tax must be remitted at the time of the filing or recording. If an instrument is not filed or recorded by the 20th day of the month following the month the ownership interest is transferred, the tax is due to the Department on or before the 20th day of the month following the ownership transfer. The tax must be reported on a Documentary Stamp Tax Return for Nonregistered Taxpayers’ Unrecorded Documents (Form DR-228, incorporated by reference in Rule 12B-4.003, F.A.C.).

(b) When the 20th day falls on a Saturday, Sunday, or legal holiday, payments accompanied with returns will be accepted as timely if postmarked on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For purposes of this rule, a “legal holiday” means a holiday that is observed by federal or state agencies as a legal holiday as this term is defined in Chapter 683, F.S., and section 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to section 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an Internal Revenue district.

(7) The provisions of this rule do not affect the imposition of tax on transactions described in Section 201.02(4), F.S., on documents which convey or transfer, pursuant to Section 689.071, F.S., any beneficial interest in lands, tenements, or other real property.

(8) The discretionary surtax imposed under Section 201.031, F.S., applies to taxable transfers under Section 201.02(1)(b), F.S., and this rule.

(9) Examples.

(a) Example 1: On July 2, 2009, Lloyd transferred Orange County, Florida real property (the real property), owned by him alone, to a limited liability company (LLC) he owned alone. No documentary stamp tax was paid on the document that transferred the real property to the LLC. On July 3, 2009, Lloyd transferred his interest in the LLC for $1,000,000. The LLC owned no assets other than the real property. Documentary stamp tax of $7,000 was due on the transfer of Lloyd’s ownership interest in the LLC based on the $1,000,000 consideration, since tax was not paid on the full consideration when the real property was transferred to the LLC.

(b) Example 2: On July 2, 2009, Calvin and Sally transferred Duval County, Florida real property (the real property), which they owned equally, to a limited liability company (LLC) owned equally by Calvin and Sally. The full consideration at the time of the transfer was $30,000. Documentary stamp tax of $210 was paid on the document that transferred the real property to the LLC. On July 10, 2009, Calvin and Sally sold their ownership interests in the LLC. No documentary stamp tax was due on the transfer of Calvin’s and Sally’s ownership interests in the LLC, since no “conduit entity” was created pursuant to Section 201.02(1)(b)1.a., F.S., and this rule, since tax was paid on the full consideration for the real property when it was transferred to the LLC.

(c) Example 3: On July 2, 2009, Vern and Carol transferred Miami-Dade County, Florida commercial real property (the real property), which they owned equally, to a limited liability company (LLC) owned equally by Vern and Carol. No documentary stamp tax was paid on the document that transferred the real property to the LLC. On July 10, 2009, Vern sold his interest in the LLC for $200,000. The LLC owned no assets other than the real property. Tax of $1400 and discretionary surtax of $900 were due on the transfer of Vern’s ownership interest in the LLC, since tax was not paid on the full consideration for the real property when it was transferred to the LLC.

(d) Example 4: On July 2, 2009, Pam and Mike transferred Walton County, Florida real property (the real property), which they owned equally, to a corporation. The corporation was owned equally by Mike and a limited liability company (LLC) owned by Pam alone. No documentary stamp tax was paid on the document that transferred the real property to the corporation. On July 10, 2009, Pam sold her interest in the LLC (thereby selling her indirect ownership interest in the corporation) for $45,000. The corporation owned assets in addition to the real property transferred to it on July 2, 2009. The value of the real property was $85,000, and the real property made up 95% of the value of all assets owned by the corporation. The only asset owned by the LLC was its interest in the corporation. Tax of $299.25 (450 x $.70 x 95%) was due on the transfer of Pam’s ownership interest, since tax was not paid on the full consideration for the real property when it was transferred to the corporation.

(e) Example 5: On July 2, 2009, Tom transferred Broward County, Florida real property (the real property), owned by him alone, to a limited liability company (LLC) he owned alone. No documentary stamp tax was paid on the document that transferred the real property to the LLC. On July 10, 2009, Tom sold 50% of his interest in the LLC to Imogene for $200,000. The LLC owned no assets other than the real property. Tax of $1,400 was due on the transfer of Tom’s 50% ownership interest in the LLC based on consideration of $200,000, since documentary stamp tax was not paid on the full consideration for the real property when it was transferred to the LLC. On July 25, 2009, Tom sold one-half of his remaining 50% ownership interest in the LLC for $105,000, and Imogene sold one-half of her 50% ownership interest in the LLC for $105,000. Tax of $735 was due on the transfer of Tom’s ownership interest, since tax was not paid on the full consideration for the real property when it was transferred to the LLC. No tax was due on Imogene’s transfer, since tax was due and paid on Tom’s transfer to Imogene.

(f) Example 6: On July 2, 2009, Sue transferred Polk County, Florida real property (the real property), owned by her alone, to a limited liability company (LLC) she owned alone. The real property was encumbered by a mortgage at the time of the transfer. The mortgage balance at the time of the transfer was $75,000, which was an amount less than the property’s fair market value. Documentary stamp tax of $525 was due and paid on the document that transferred the real property to the LLC based on the mortgage balance of $75,000. The LLC owned no assets other than the real property. On July 31, 2009, Sue sold her interest in the LLC for $110,000. Tax of $770 was due on the transfer of Sue’s ownership interest in the LLC based on consideration of $110,000.

History

• Rulemaking Authority 201.11(1), 213.06(1) FS. Law Implemented 201.02(1), (4), 201.0201, 201.031 FS History–New 4-25-12.

Chapter 12B-5 TAX ON MOTOR FUELS, DIESEL FUELS, POLLUTANTS, AND NATURAL GAS FUEL

Fla. Admin. Code R. 12B-5.001 Specific Exemptions

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 212.6201, 213.06(1) FS. Law Implemented 206.42, 206.425, 206.62, 206.87(2)(a), (3), (4), 206.97, 206.9815, 212.02(23), 212.08(4)(a)2., (5)(e), 212.637, 212.66, 336.025 FS. History–New 11-18-71, Amended 11-21-78, 3-12-79, 6-4-79, 7-27-80, 10-13-83, Formerly 12B-5.01, Amended 1-12-88, 12-18-88, 5-26-93, 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.0011 Definitions

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 212.6201, 213.06(1) FS. Law Implemented 206.01(13), 206.41, 206.60(1), 206.605(1), 206.63(1), 206.87(1), 212.63 FS. History–New 1-12-88, Amended 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.0012 Imposition of Tax

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 212.06 FS. Law Implemented 206.41, 206.60, 206.605, 206.87(1)(a), (b), 212.62 FS. History–New 1-12-88, Amended 12-18-88, 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.002 Exports

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 212.6201, 213.06 FS. Law Implemented 206.41(2)(b), (c), (d), 212.87(3)(d), (e), (g), (4) FS. History–New 11-18-71, Amended 4-12-76, 10-13-83, Formerly 12B-5.02, Amended 1-12-88, 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.003 Resale and Exemption Certificates

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 212.6201, 213.06 FS. Law Implemented 206.425(1), (2), 206.64 FS. History–New 11-18-71, Amended 4-12-76, 3-16-80, 10-13-83, Formerly 12B-5.03, Amended 1-12-88, 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.004 Transportation of Motor Fuel and Special Fuel

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 212.6201, 213.06 FS. Law Implemented 206.20, 206.204, 206.05 FS. History–New 11-18-71, Formerly 12B-5.04, Amended 1-12-88, 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.005 Licenses and Registration; Cab Cards; Bonding

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.97, 212.6201, 212.66, 213.06(1) FS. Law Implemented 206.02, 206.11(2), 206.021, 206.022, 206.026, 206.027, 206.028, 206.05, 206.055, 206.404, 206.86, 206.89(1), (2), 206.90, 206.92 FS. History–New 11-18-71, Amended 4-12-76, 9-6-77, 10-13-83, 12-26-83, Formerly 12B-5.05, Amended 1-12-88, 12-18-88, 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.006 Refunds and Allowances

History

• Rulemaking Authority 120.53(1)(b), 206.14(1), 206.59(1), 206.97, 212.6201, 213.67(11), 213.06 FS. Law Implemented 206.13, 206.14(1), 206.59, 206.625(1), (2), 206.64, 206.87(5), 206.92, 212.67(1), 336.025(2)(c) FS. History–New 11-18-71, Amended 4-12-76, 2-13-78, 6-3-80, 7-27-80, 10-13-83, Formerly 12B-5.06, Amended 1-12-88, 12-18-88, 11-1-93, 10-19-94, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.007 Tax Returns and Regulations

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 212.6201, 213.06 FS. Law Implemented 206.06(1), (2), 206.08(2), 206.09, 206.095, 206.10, 206.404(2), 206.43(1), 206.44, 206.48, 206.877, 206.91, 206.93, 206.94, 212.65 FS. History–New 11-18-71, Amended 12-10-74, 11-16-78, 10-13-78, 10-13-83, Formerly 12B-5.07, Amended 1-12-88, 12-4-89, 12-19-89, 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.008 Preservation and Inspection of Records; Statute of Limitations; Tracking System

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 212.6201, 213.06 FS. Law Implemented 206.12, 206.14(1), (2), 206.485, 213.06 FS. History–New 11-18-71, Amended 3-16-80, 7-8-82, Formerly 12B-5.08, Amended 1-12-88, 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.009 Discontinuance or Transfer of Business

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.96, 212.6201, 213.06 FS. Law Implemented 206.18(1), (2), (3), 206.97 FS. History–New 11-18-71, Amended 10-13-83, Formerly 12B-5.09, Amended 1-12-88, 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.010 Tax Warrant and Liens; Tax Embezzlement; Assessments

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 213.06 FS. Law Implemented 206.06(1), 206.075(1), (2), 206.15, 206.56, 206.97 FS. History–New 11-18-71, Amended 10-13-83, Formerly 12B-5.10, Amended 1-12-88, 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.011 Penalty and Interest

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 212.6201, 213.06 FS. Law Implemented 206.06(3), 206.08(3), 206.09(4), 206.095(2), 206.425, 206.44(1), (2), 206.89(1)(b), 206.94 FS. History–New 8-24-77, Amended 4-2-78, 11-16-78, 10-13-83, Formerly 12B-5.11, Amended 1-12-88, 12-4-89, 11-1-93, Repealed 4-3-96.

Fla. Admin. Code R. 12B-5.012 Forms Used by Public

History

• Rulemaking Authority 120.53(1)(b), 206.14(1), 206.59, 206.625, 206.97, 212.6201, 213.06 FS. Law Implemented 206.14(1) FS. History–New 9-26-77, Amended 10-13-83, Formerly 12B-5.12, Amended 1-12-88, 11-1-93, Repealed 7-1-96.

Fla. Admin. Code R. 12B-5.013 County Levy of Additional Voted Tax on Motor Fuel and Special Fuel; Department to Collect Tax

History

• Rulemaking Authority 206.14(1), 206.59(1), 213.06, 336.021 FS. Law Implemented 336.021 FS. History–New 2-3-80, Amended 10-13-83, Formerly 12B-5.13, Transferred to 12B-5.401.

Fla. Admin. Code R. 12B-5.014 County Levy of Additional Optional Tax on Motor Fuel and Special Fuel; Department to Collect Tax

History

• Rulemaking Authority 206.14(1), 206.59(1), 213.06 FS. Law Implemented 336.025 FS. History–New 10-13-83, Formerly 12B-5.14, Transferred to 12B-5.403.

Fla. Admin. Code R. 12B-5.015 Wholesaler Transition Tax

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 213.06 FS. Law Implemented 206.435 FS. History–New 1-12-88, Amended 11-1-93, Repealed 4-3-96.

Fla. Admin. Code R. 12B-5.020 Definitions; Specific Exemptions

(1) Definitions.

(a) “Alcohol” means completely denatured ethanol (ethyl alcohol) or methanol (wood alcohol) derived from grain, agricultural products, wood, coal, or other products, other than petroleum or natural gas, manufactured, produced, sold or purchased for the purpose of blending with gasoline, or for 100 percent alcohol fuel used in motor vehicles. Alcohol, when used in motor vehicles, is a motor fuel subject to all of the provisions of Section 206.41, F.S.

(b) “Business Purposes” means diesel fuel used in the normal course of business in stationary equipment or self-propelled equipment, other than vessels, which moves between points using a diesel powered engine and is not required to be licensed under the motor vehicle license laws under Chapter 320, F.S.

(c) “Enterer” means the importer of record with respect to fuel. However, if the importer of record is acting as an agent (e.g., the importer of record is a customs broker engaged by the owner of the fuel), the person for whom the agent is acting is the enterer. If there is no importer of record for fuel entered into Florida, the enterer is the owner of the fuel at the time the fuel is brought into Florida.

(d) “Fuel” means all fuels as defined in Chapter 206, F.S., and this rule chapter, including fuel grade ethanol, manufactured, produced, sold, or purchased for use as a gasoline blending component, or for use in a motor vehicle.

(e) “Fuel grade ethanol” means ethanol blended with at least 1.97 percent gasoline pursuant 27 C.F.R. §19.746 (4-1-22) and (hereby incorporated by reference http://www.flrules.org/Gateway/reference.asp?No=Ref-16295).

(f) “Gasohol” means a mixture of gasoline blended with ethanol, which contains not more than 91 percent gasoline by volume, and the ethanol content must not be less than nine percent by volume.

(g) “Gasoline” means any mixture used as a fuel in spark-ignition, internal combustion engines, which has an octane number not less than 75 and a lead content not greater than 0.05 grams per gallon.

(h) “Licensee” means all terminal suppliers, importers, wholesalers, exporters, carriers, terminal operators, blenders, local government users, mass transit systems, or natural gas fuel retailers.

(i) “Marinas” shall mean any facilities for the sale, repair, rental, storage, or servicing of boats.

(j) “Sales to United States Government” means the sale of motor fuel and undyed diesel fuel to the United States or the federal government, its departments or agencies, and to contract flying schools which train cadets for the United States Air Force under contract whereby the United States reimburses the school for the fuel so used.

(k) “Wholesale” means the sale of fuel at or below the loading rack of a terminal.

(2) Exemptions.

(a) Sales of Fuel to the United States Government.

1. Fuel sold to the United States Government, its departments, or its agencies, in quantities of 500 gallons or more in each delivery, for exclusive use in equipment, devices, or motors operated by the United States is exempt from tax. This exemption does not apply to sales of fuel delivered to service stations or other outlets for resale.

2.a. Unless expressly exempt Chapter 206, F.S., the sale of fuel to contractors operating under contract with the United States is taxable.

b. The sale of fuel to service organizations is taxable.

3. Terminal suppliers or wholesalers may obtain a credit for taxes paid on fuel sold to the United States government, its departments, or its agencies in quantities of 500 gallons or more, as provided in subsection (6) of Rule 12B-5.050, and subsection (6) of Rule 12B-5.060, F.A.C.

(b) Dyed Diesel Fuel. Dyed diesel fuel purchased from licensees is exempt from the taxes imposed under Chapter 206, F.S., except for dyed diesel fuel used for taxable purposes which is subject to backup tax under Section 206.873, F.S.

(c) Sale of Fuel for Agricultural Use.

1. The purchase of undyed diesel fuel used in any tractor, vehicle, or other equipment which is used exclusively on a farm for planting, cultivating, harvesting, or processing farm products for sale, is exempt from the taxes imposed under Section 206.87, F.S., when purchased from a licensed terminal supplier or wholesaler.

2.a. Persons who purchase fuel for agricultural use must provide a terminal supplier or wholesaler with the estimated number of gallons of fuel which will be used for exempt and taxable use at the time of purchase.

b. Such persons must pay tax to their supplier on gallons used for nonagricultural use.

3. When a purchaser has underestimated tax liability on the use of fuel during a month, the purchaser must notify and pay any additional tax to the supplier from which the fuel was purchased.

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.62(10), 206.87(1)(e)2., 213.06(1) FS. Law Implemented 206.41(4)(b), 206.62, 206.874, 206.97 FS. History–New 7-1-96, Amended 11-21-96, 10-27-98, 5-1-06, 6-1-09, 1-17-13, 1-20-14, 1-1-24, 1-25-26.

Fla. Admin. Code R. 12B-5.030 Importers

(1) General Information.

(a) Persons who import either gasoline, gasohol, or diesel into Florida, by common or private carrier, upon which Florida tax has not been charged or collected, and persons who import and place fuel in storage outside a terminal registered under s. 4101 of the Internal Revenue Code must obtain a license as a Importer.

(b)1. A person who exclusively causes fuel to be imported into Florida by common or private carrier upon which Florida tax has been charged or collected, is not required to be licensed as an importer.

2. A person is not required to be licensed as an importer if such person is transporting fuel from a point outside Florida, through Florida, and to a destination which is also outside this state.

3. Storage of fuel by an importer in this state must be limited to no more than 24 hours in order for the fuel to remain in stream of interstate commerce.

(c)1. To qualify for an importer’s license, a person must first be licensed as a wholesaler.

2. An importer is not authorized to sell fuel in Florida, nor is an importer authorized to store fuel in Florida. Sales and storage by an importer is reported under the wholesaler license.

(2) Licensing and Bonding.

(a) Licensing.

1. To obtain an annual license as an importer, every person must file Form DR-156, Florida Fuel or Pollutants Tax Application (incorporated by reference in Rule 12B-5.150, F.A.C.), with the required attachments, with the Department, as provided in the application, and enroll in the Department’s eServices.

2. To enroll in the eServices to make payments and submit returns electronically to the Department, the importer must:

a. Complete enrollment on the Department’s website at floridarevenue.com/taxes/eEnroll, or

b. Complete Form DR-600, Enrollment and Authorization for eServices (incorporated by reference in Rule 12-24.011, F.A.C.), as provided in Rule 12-24.004, F.A.C., and return it to the Department, if the importer is unable to use the Department’s website to enroll.

3. Importers who can establish that they are unable to comply with the electronic payment and electronic filing requirements must complete and submit Form DR-654, Request for Waiver From Electronic Filing (incorporated by reference in Rule 12-24.011, F.A.C.) to establish in writing the basis for the requested waiver, as provided in Rule 12-24.010, F.A.C.

4. Each license is required to be renewed annually by filing Form DR-156R, Renewal Application for Florida Fuel/Pollutants License (incorporated by reference in Rule 12B-5.150, F.A.C.), and the required attachments with the Department, as provided in the renewal application.

(b) Bonding.

1. Prior to conducting business in this state, an importer will file with the Department a single bond equivalent to 60 days tax liability on motor fuel and diesel fuel.

2. An importer’s bond shall be maintained in an amount sufficient to secure payment of 60 days of tax liability on motor fuel or diesel fuel transported into Florida.

3. If an importer has not provided a bond sufficient to secure 60 days tax liability prior to importing motor fuel or diesel fuel, such importer is prohibited from importing any unsecured fuel into Florida.

4. There is no maximum bond amount required for importers.

(3) Returns and Payments.

(a) Returns. Licensed importers of gasoline, gasohol, or diesel fuel are required to report all taxes imposed by Chapter 206, F.S., on a Wholesaler/Importer Fuel Tax Return (form DR-309632, incorporated by reference in Rule 12B-5.150, F.A.C.), as provided in subsection (5) of Rule 12B-5.060, F.A.C.

(b) Payments. Payments must be submitted to the Department electronically, as provided in Rule Chapter 12-24, F.A.C.

(4) Refunds and Credits. Refunds and credits to importers are authorized only under the provisions for refunds and credits authorized to wholesalers. Importers may obtain an ultimate vendor credit for tax paid in the same manner as wholesalers, as provided in subsection (6) of Rule 12B-5.060, F.A.C.

(5) Import Authorization Numbers.

(a)1. Before any fuel may be imported into Florida upon which Florida tax has not been charged or collected, an importer must first call the Department of Revenue at 1(800)360-5436, and obtain an import authorization number.

2. After receiving the required authorization number, an importer must provide such number to the carrier which will transport the fuel into Florida, and the number must be manually recorded on shipping papers in the possession of such carrier.

3. An import authorization number will be denied when an importer has not provided a bond sufficient to secure 60 days tax liability prior to the importation of motor fuel or diesel fuel into this state.

(b) Import authorization numbers are not required on fuel which is imported into Florida upon which Florida tax is either charged or collected.

History

• Rulemaking Authority 206.14(1), 206.485(1), 206.59(1), 206.87(1)(e)2., 213.06(1), 213.755(8) FS. Law Implemented 206.01(3), 206.02, 206.026, 206.027, 206.028, 206.03, 206.05, 206.051, 206.054, 206.43, 206.48(2), 206.485, 213.755 FS. History–New 7-1-96, Amended 11-21-96, 10-27-98, 5-1-06, 6-1-09, 1-25-12, 1-17-18, 1-25-26.

Fla. Admin. Code R. 12B-5.040 Carriers

(1) Licensing.

(a) Any person transporting fuel for sale or for others in vehicles capable of hauling quantities of 500 gallons or more in this State, must hold a valid license as a carrier of motor fuel or diesel fuel.

(b)1. To obtain an annual license, every person must file a Florida Fuel or Pollutants Tax Application (Form DR-156, incorporated by reference in Rule 12B-5.150, F.A.C.), with the required attachments, with the Department, as provided in the application, and enroll in the Department’s eServices.

2. To enroll in eServices to submit returns electronically to the Department, the carrier must:

a. Complete enrollment on the Department’s website at floridarevenue.com/taxes/eEnroll, or

b. Complete Form DR-600, Enrollment and Authorization for eServices (incorporated by reference in Rule 12-24.011, F.A.C.), as provided in Rule 12-24.004, F.A.C., and return it to the Department, if the carrier is unable to use the Department’s website to enroll.

3. Carriers who can establish that they are unable to comply with the electronic filing requirements must complete and submit Form DR-654, Request for Waiver From Electronic Filing (incorporated by reference in Rule 12-24.011, F.A.C.), to establish in writing the basis for the requested waiver, as provided in Rule 12-24.010, F.A.C.

(c) Each license is required to be renewed annually by filing Form DR-156R, Renewal Application for Florida Fuel/Pollutants License (incorporated by reference in Rule 12B-5.150, F.A.C.), and the required attachments with the Department, as provided in the renewal application.

(2) Information Returns.

Carriers are required to file form DR-309637, Petroleum Carrier Information Return (incorporated by reference in Rule 12B-5.150, F.A.C.), using the Department’s eServices website by manually entering data or importing comma-delimited (CSV) or fixed-length text (flat) files as provided in Motor Fuel Taxes Comma Delimited (CSV) and Flat File Specifications – Wholesaler/Importer, Exporter, Blender, and Petroleum Carrier Fuel Tax Returns (form DR-309653, incorporated by reference in Rule 12B-5.150, F.A.C.). The electronic return must be filed on or before the 20th day of each month for the activity during the previous month. To be timely, the electronic return must be received by the Department or its agent before 5:00 p.m. (Eastern Time), on or before the 20th day of each month. For carriers who are authorized to submit form DR-309637 by hard copy, the return will be accepted as timely if postmarked or delivered to the Department on or before the 20th day of each month. If the 20th day falls on a Saturday, Sunday, or legal holiday, returns will be accepted as timely if an electronic return is received by the Department or its agent on or before 5:00 p.m. (Eastern Time), or a hard copy return, when permitted, is postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For the purpose of this rule, a legal holiday means a holiday that is observed by federal or state agencies as a legal holiday as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(3) Each applicant for a license will be assigned a license number upon qualifying and a separate license card will be issued for each vehicle operated by the licensee. The license card shall be conspicuously displayed in the vehicle to which it is assigned.

History

• Rulemaking Authority 206.14(1), 206.485(1), 206.59(1), 213.06(1), 213.755(8) FS. Law Implemented 206.021, 206.09, 206.199, 206.20, 206.204, 206.205, 206.485, 213.755 FS. History–New 7-1-96, Amended 11-21-96, 5-1-06, 6-1-09, 1-25-12, 7-28-15, 1-17-18, 1-25-26.

Fla. Admin. Code R. 12B-5.050 Terminal Suppliers

(1) General Information.

(a) Persons who import either gasoline, gasohol, or diesel fuel into Florida by marine vessel, rail, or pipeline, and who place the fuel in storage at a terminal which is registered under s. 4101 of the Internal Revenue Code must obtain a terminal supplier license.

(b) Terminal suppliers may:

1. Exchange fuel above the loading rack with other terminal suppliers.

2. Sell fuel to other terminal suppliers, wholesalers, and exporters.

3. Sell fuel to licensed exporters for removal from Florida.

4. Export fuel directly from the terminal.

5. Sell fuel to resellers, retail dealers, and end-users.

6. Sell fuel to the United States Government.

7. Sell fuel to farmers and commercial fisherman.

8. Blend products at the loading rack.

(c)1. Terminal suppliers are authorized to import tax-free gasoline, gasohol, or diesel fuel, place such fuel in storage at a terminal, and to collect the state excise tax, county fuel tax, municipal fuel tax, and fuel sales taxes as the fuel is removed through the loading rack.

2. Terminal suppliers are prohibited from collecting ninth-cent fuel tax, local option fuel tax, and State Comprehensive Enhanced Transportation System Tax on gasoline or gasohol sold to other terminal suppliers and wholesalers.

3. Terminal suppliers must collect all taxes imposed under Section 206.87(1), F.S., on the sale, delivery, or consignment of taxable diesel fuel, except when such sales are specifically exempt from tax.

(d) The following persons are required to be licensed as terminal suppliers:

1. Persons who sell fuel through the loading rack of a terminal located in Florida;

2. Persons who are position holders of fuel that is located in this state for longer than 24 hours after the fuel has lost its interstate character; or

3. Persons who purchase fuel from terminal suppliers above the loading rack of a terminal located in this state.

(2) Licensing and Bonding.

(a) Licensing.

1. Before any person may engage in business as a terminal supplier within this state, such person must first obtain, and be the holder of a valid terminal supplier license issued by the Department.

2. To obtain an annual license as a terminal supplier, every person must file a Florida Fuel or Pollutants Tax Application (Form DR-156, incorporated by reference in Rule 12B-5.150, F.A.C.) with the required attachments, with the Department, as provided in the application, and enroll in the Department’s eServices.

3. To enroll in eServices to make payments and submit returns electronically to the Department, the terminal supplier must do one of the following:

a. Complete enrollment on the Department’s website at floridarevenue.com/taxes/eEnroll.

b. Complete Form DR-600, Enrollment and Authorization for eServices (incorporated by reference in Rule 12-24.011, F.A.C.), as provided in Rule 12-24.004, F.A.C., and return it to the Department, if the terminal supplier is unable to use the Department’s website to enroll.

4. Terminal suppliers who can establish that they are unable to comply with the electronic payment and electronic filing requirements must complete and submit Form DR-654, Request for Waiver From Electronic Filing (incorporated by reference in Rule 12-24.011, F.A.C.), to establish in writing the basis for the requested waiver, as provided in Rule 12-24.010, F.A.C.

5. Each license is required to be renewed annually by filing Form DR-156R, Renewal Application for Florida Fuel/Pollutants License (incorporated by reference in Rule 12B-5.150, F.A.C.), and the required attachments with the Department, as provided in the renewal application.

6. Terminal suppliers that import or export tax-paid fuel are not required to obtain an importer or exporter license.

7. Any terminal operator that owns fuel at a terminal is required to be licensed as a terminal supplier.

(b) Bonding.

1. Prior to becoming licensed, each new terminal supplier applicant must submit, to the Department, a bond which equals 3 times the estimated average monthly fuel tax levied under Chapter 206, F.S., for each type of fuel that will be sold, but such bond will not exceed a maximum of $300,000 for each product type (motor fuel and diesel fuel).

2. A terminal supplier that has filed bonds of less than $300,000 for each product type (motor fuel and diesel fuel) will be notified by the Department when its liability increases to an amount that requires an increase in its bond.

(3) Exempt Sales.

(a) Sales of Fuel to the United States Government. Terminal suppliers that sell fuel in quantities of 500 gallons or more per delivery to the United States Government, its departments, or its agencies are not required to collect tax on such sales. This exemption does not apply when fuel is delivered to retail dealers located on governmental installations.

(b) Dyed Diesel Fuel. The sale of dyed diesel fuel by terminal suppliers for any use is exempt from taxes imposed under Part II, Chapter 206, F.S.

(c) Sale of Undyed Diesel Fuel to Farmers.

1. The sale of undyed diesel fuel by a terminal supplier to a farmer for use in farm equipment on a farm is exempt from the tax imposed under Section 206.87, F.S. The terminal supplier must obtain written certification from the farmer which identifies the number of gallons purchased which will be used exclusively on a farm.

2. Terminal suppliers must collect all taxes imposed under Section 206.87, F.S., on undyed diesel sold to farmers for non-agricultural use.

3. No terminal supplier will be entitled to a credit for taxes due without first having obtained the written certification.

(4) Taxable Sales.

(a) Motor Fuel and Diesel Fuel Used for Commercial Fishing Purposes.

1. Terminal suppliers who sell motor fuel to commercial fishermen are required to collect all taxes imposed under Section 206.41, F.S., on each sale.

2. Terminal suppliers who sell taxable diesel to commercial fishermen are required to collect all taxes imposed under Section 206.87, F.S., on each sale.

(b) Sale of Fuel to Mass Transit Systems or Local Government Users. Terminal suppliers who sell motor fuel and taxable diesel to mass transit systems, counties, municipalities, or school districts must collect all taxes imposed under Sections 206.41 and 206.87, F.S.

(c) Diesel Fuel Used in Interstate Commerce. Terminal suppliers who sell diesel fuel which is used in commercial vehicles regularly engaged in interstate commerce are required to collect all taxes imposed under Section 206.87, F.S.

(d) Diesel Fuel Used in Power Take-off Units. Terminal suppliers who sell diesel fuel which is used in vehicles having power take-off units or engine exhaust for the purpose of turning a concrete mixer drum, for compacting solid waste, or for unloading bulk cargo by pumping, are required to collect all taxes imposed under Section 206.87, F.S.

(e) Sale of Fuel to Resellers, Retail Dealers, and End-users. Terminal suppliers who sell fuel to resellers, to retail dealers, or to the end-users of such fuel are required to collect all taxes imposed under Sections 206.41 and 206.87, F.S.

(f) Sale of Fuel for Business Purposes.

1. Undyed Diesel Fuel. Terminal suppliers who sell taxable diesel fuel which is used for business purposes are required to collect all taxes imposed under Section 206.87, F.S.

2. Dyed Diesel Fuel. Terminal suppliers who sell dyed diesel fuel that will be used for business purposes are not required to collect sales tax on such sales.

(5) Returns and Payments.

(a) Returns. All terminal suppliers that sell gasoline, gasohol, or diesel are required to report all taxes imposed by Chapter 206, F.S., on a Terminal Supplier Fuel Tax Return (form DR-309631, incorporated by reference in Rule 12B-5.150, F.A.C.), electronically with the Department, as provided in Rule Chapter 12-24, F.A.C. The electronic return must be submitted by Extensible Markup Language (XML), as provided in the Motor Fuel Taxes XML User Guide for eFile Developers and Transmitters (form DR-309652, incorporated by reference in Rule 12B-5.150, F.A.C.). The electronic return must be filed on or before the 20th day of each month for transactions occurring during the previous month. To be timely, the electronic return must be received by the Department or its agent before 5:00 p.m. (Eastern Time), on or before the 20th day of each month. For terminal suppliers who are authorized to submit form DR-309631 by hard copy, the return will be accepted as timely if postmarked or delivered to the Department on or before the 20th day of each month. If the 20th day falls on a Saturday, Sunday, or legal holiday, returns will be accepted as timely if an electronic return is received by the Department or its agent on or before 5:00 p.m. (Eastern Time), or a hard-copy return, when permitted, is postmarked or delivered to the Department on the next succeeding day that is not a Saturday, Sunday, or legal holiday. For the purpose of this rule, a legal holiday means a holiday which is observed by federal or state agencies as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) Payments. Payments must be submitted to the Department electronically, as provided in rule Chapter 12-24, F.A.C.

(c) Collection Allowance.

1. A .2 percent (.002) collection allowance deduction is authorized to terminal suppliers from the taxes collected under Sections 206.41(1)(a), (b), (c) and (g), F.S., on sales of motor fuel when 50 percent of the allowable deduction is granted to a purchaser with a valid wholesaler or terminal supplier license, and only when the return and payment are remitted timely.

2. A .67 percent (.0067) collection allowance deduction is authorized to terminal suppliers on the sale of diesel fuel when 50 percent of the allowable deduction is granted to a purchaser with a valid wholesaler or terminal supplier license, and only when the return and payment are remitted timely.

3. In addition to the collection allowance deduction authorized in subparagraphs 1. and 2., terminal suppliers who sell fuel to retail dealers or end-users may take a deduction of 1.1 percent of taxes collected under Sections 206.41(1)(c), (d) and (e), and 206.87(1)(b) and (c), F.S., and only when the return and payment are remitted timely.

(6) Refunds and Credits.

(a) Sales of Fuel to the United States Government.

1. Terminal suppliers that sell fuel to the United States Government, its departments, or its agencies exempt from taxes imposed under Sections 206.41 and 206.87, F.S., must accrue all such taxes and may obtain an ultimate vendor credit for the taxes accrued when their Terminal Supplier Tax Returns are filed.

2. To obtain an ultimate vendor credit, terminal suppliers must complete Schedule 12, Ultimate Vendor Credits. Schedule 12 is required to be filed with the Terminal Supplier Fuel Tax Return, as indicated on the return.

(b) Motor and Diesel Fuel Used for Agricultural Purposes.

1. Sales by terminal suppliers of taxable motor fuel to persons for agricultural uses as provided in Section 206.63, F.S., are subject to a refund pursuant to Section 206.64, F.S., and Rule 12B-5.130, F.A.C., of the municipal fuel tax, the local option fuel tax, the state comprehensive transportation system tax, and the fuel sales tax imposed by Sections 206.41(1)(c), (e), (f) and (g), F.S.

2. A terminal supplier may sell taxable diesel fuel exempt for agricultural purposes, but must accrue all taxes imposed under Section 206.87, F.S. To obtain an ultimate vendor credit for the tax accrued, terminal suppliers must complete Schedule 12, Ultimate Vendor Credits. Schedule 12 is required to be filed with the Terminal Supplier Tax Return, as indicated on the return.

History

• Rulemaking Authority 206.14(1), 206.485(1), 206.59(1), 206.87(1)(e)2., 213.06(1), 213.755(8) FS. Law Implemented 206.01, 206.02, 206.05, 206.41, 206.413, 206.414, 206.43, 206.48, 206.485, 206.62, 206.63, 206.86, 206.87, 206.872, 206.873, 206.874, 206.8745, 206.90, 206.91, 206.97, 206.9941, 206.9942, 213.755 FS. History–New 7-1-96, Amended 11-21-96, 10-27-98, 5-1-06, 6-1-09, 1-25-12, 7-28-15, 1-17-18, 3-25-20, 1-1-21, 1-25-26.

Fla. Admin. Code R. 12B-5.060 Wholesalers

(1) General Information. Wholesalers may:

(a) Sell fuel to terminal suppliers, other wholesalers, and exporters.

(b) Sell fuel to retail dealers, resellers and end-users.

(c) Sell fuel to the United States Government.

(d) Sell fuel to farmers and commercial fishermen.

(e) Sell fuel to local government users and mass transits.

(2) Licensing and Bonding.

(a)1. To obtain an annual license as a wholesaler, a person must file a Florida Fuel or Pollutants Tax Application (Form DR-156, incorporated by reference in Rule 12B-5.150, F.A.C.), with the required attachments, with the Department, as provided in the application, and enroll in the Department’s eServices.

2. To enroll in eServices to make payments and submit returns electronically to the Department, the wholesaler must:

a. Complete enrollment on the Department’s website at floridarevenue.com/taxes/eEnroll, or

b. Complete Form DR-600, Enrollment and Authorization for eServices (incorporated by reference in Rule 12-24.011, F.A.C.), as provided in Rule 12-24.004, F.A.C., and return it to the Department if the wholesaler is unable to use the Department’s website to enroll.

3. Wholesalers who can establish that they are unable to comply with the electronic payment and electronic filing requirements must complete and submit Form DR-654, Request for Waiver From Electronic Filing (incorporated by reference in Rule 12-24.011, F.A.C.), to establish in writing the basis for the requested waiver, as provided in Rule 12-24.010, F.A.C.

4. Forms DR-600 and DR-654 may be obtained from the Department by: 1) calling the Department at (850)488-6800, Monday through Friday, (excluding holidays); or, 2) visiting any local Department of Revenue Service Center. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

5. Each license is required to be renewed annually by filing Form DR-156R, Renewal Application for Florida Fuel/Pollutant License (incorporated by reference in Rule 12B-5.150, F.A.C.), and the required attachments with the Department, as provided in the renewal application.

(b)1. Each wholesaler that is licensed pursuant to Section 206.02, F.S., will be required to furnish a bond to the Department in a sum of not more than $300,000, for each product type (motor fuel and diesel fuel).

2. The tax rate for calculating the wholesaler’s bond on motor fuel will be the taxes imposed under Section 206.41, F.S. (fuel sales tax, Constitution Tax, County Tax, Municipal Tax, Ninth-cent County Fuel Tax, the maximum Local Option Fuel Tax rate, and the State Comprehensive Enhanced Transportation System Tax (SCETS) charged in this state.)

3. The tax rate for calculating the wholesaler’s bond on diesel fuel will be the taxes imposed under Section 206.87, F.S. (fuel sales tax, Excise Tax, Ninth-cent County Fuel Tax, the maximum Local Option Fuel Tax rate, and the SCETS tax charged in this state.)

4. A wholesaler who has no import or export activity and is authorized to remit the taxes imposed by Chapter 206, F.S., to its supplier by electronic funds transfer (EFT) will file a bond with the Department for each product type (motor fuel and diesel fuel) based on the estimated average monthly gallons to be purchased, multiplied by the total of the taxes imposed under Section 206.41, F.S. (for motor fuel); and Section 206.87, F.S. (for diesel fuel), and that sum multiplied by three.

5. A wholesaler who has no import or export activity and is not authorized to remit the taxes imposed by Chapter 206, F.S., to its supplier by EFT will file a bond with the Department for motor fuel only based on the estimated average monthly gallons to be purchased, multiplied by the maximum Local Option Fuel Tax rate charged in this State, and that sum multiplied by three.

6. A wholesaler who has no import or export activity, who sells only undyed diesel fuel, and who is not authorized by the Department to remit fuel tax to its supplier is not required to post a bond.

7. A wholesaler who only imports fuel into this State is required to post a bond with the Department for each product type (motor fuel and diesel fuel) based on the estimated average monthly gallons imported multiplied by the total of the taxes imposed under Sections 206.41, F.S. (for motor fuel); and 206.87, F.S. (for diesel fuel) and that sum, multiplied by two.

8. The wholesaler will file an additional bond for motor fuel based on the estimated average monthly gallons imported multiplied by the maximum Local Option Fuel Tax rate charged in this State and that sum, multiplied by three.

(c) A person who is licensed as a wholesaler and an importer will file bonds as follows:

1. The wholesaler bond will be the estimated average monthly gallons to be purchased, multiplied by the taxes imposed under Sections 206.41, F.S. (for motor fuel) and 206.87, F.S. (for diesel fuel) and that sum multiplied by three.

2. The importer bond shall be maintained in a sufficient amount to secure payment of tax on motor fuel and diesel fuel for 60 days of imports.

3. If an importer does not maintain sufficient bond prior to importation of motor fuel and diesel fuel, an import authorization number will be denied and such person will be prohibited from importing untaxed fuel into Florida.

4. If the wholesaler bond is less than $300,000, an additional bond for motor fuel will be calculated and added to the wholesale bond based on the estimated average monthly gallons to be imported, multiplied by the maximum Local Option Fuel Tax rate, charged in this State, multiplied by three.

(3) Exempt Sales.

(a) Fuel sold to the United States government, its departments, or its agencies in quantities of 500 gallons or more in each delivery, for exclusive use in equipment, devices, or motors operated by the United States is exempt.

(b) Dyed diesel fuel purchased from any licensee is exempt from taxes imposed under Chapter 206, F.S., except for dyed diesel fuel used for taxable purposes which is subject to the backup tax under Section 206.873, F.S.

(c) Dyed diesel fuel purchased for use by a trade or business is exempt from taxes imposed under Chapter 206, F.S., but may be subject to tax as provided in Section 212.0501, F.S.

(d) Sale of Undyed Diesel Fuel to Farmers.

1. The sale of undyed diesel fuel by a wholesaler to a farmer for use in farm equipment on a farm is exempt from the tax imposed under Section 206.87, F.S.

2. The wholesaler must obtain written certification from the farmer which identifies the number of gallons purchased which will be used exclusively on a farm.

3. No wholesaler will be entitled to a credit for taxes due without first having obtained the written certification.

4. Wholesalers must collect all taxes imposed under Section 206.87, F.S., on undyed diesel sold to farmers for non-agricultural use.

(4) Taxable Sales.

(a) The taxes imposed by Sections 206.41(1)(d), (e) and (f), F.S., must be collected on all sales, delivery, or consignment of motor fuel to retail dealers, resellers, and end users.

(b) Sale of Dyed Diesel Fuel for Business Purposes. Wholesalers who sell dyed diesel fuel that will be used for business purposes are not required to collect sales tax on such sales.

(5) Returns and Payments.

(a) Returns. All wholesalers who sell gasoline, gasohol, or diesel are required to report all taxes imposed by Chapter 206, F.S., on a Wholesaler/Importer Fuel Tax Return (form DR-309632, incorporated by reference in Rule 12B-5.150, F.A.C.), using the Department’s eServices website by manually entering data or importing comma-delimited (CSV) or fixed-length text (flat) files as provided in Motor Fuel Taxes Comma Delimited (CSV) and Flat File Specifications – Wholesaler/Importer, Exporter, Blender, and Petroleum Carrier Fuel Tax Returns (form DR-309653, incorporated by reference in Rule 12B-5.150, F.A.C.). The electronic return must be filed on or before the 20th day of each month for transactions occurring during the previous month. To be timely, the electronic return must be received by the Department or its agent before 5:00 p.m. (Eastern Time), on or before the 20th day of each month. For wholesalers who are authorized to submit form DR-309632 by hard copy, the return will be accepted as timely if postmarked or delivered to the Department on or before the 20th day of each month. If the 20th day falls on a Saturday, Sunday, or legal holiday, returns will be accepted as timely if an electronic return is received by the Department or its agent on or before 5:00 p.m. (Eastern Time), or a hard-copy return, when permitted, is postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For the purpose of this rule, a legal holiday means a holiday that is observed by federal or state agencies as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) Payments. Payments must be submitted to the Department electronically, as provided in rule Chapter 12-24, F.A.C.

(c) Collection Allowance.

1. A .2 percent (.002) collection allowance deduction is authorized to wholesalers from the taxes collected under Sections 206.41(1)(a), (b), (c) and (g), F.S., on sales of motor fuel when 50 percent of the allowable deduction is granted to a purchaser with a valid wholesaler or terminal supplier license, and only when the return and payment are remitted timely.

2. A .67 percent (.0067) collection allowance deduction is authorized to wholesalers on sales of diesel fuel when 50 percent of the allowable deduction is granted to a purchaser with a valid wholesaler or terminal supplier license, and only when the return and payment are remitted timely.

3. In addition to the collection allowance deduction authorized in subparagraphs 1. and 2., wholesalers who sell fuel to retail dealers or end-users may take a deduction of 1.1 percent of taxes collected under Sections 206.41(1)(d) and (e), and 206.87(1)(b) and (c), F.S., only when the return and payment are remitted timely.

(6) Refunds and Credits.

(a) Wholesalers that sell undyed diesel fuel to farmers for agricultural purposes tax exempt, as provided in Rule 12B-5.020, F.A.C., may obtain an ultimate vendor credit for the taxes paid when their Wholesaler/Importer Fuel Tax Returns (Form DR-309632) are filed.

(b) Wholesalers that sell fuel to the United States government, its departments, or its agencies in bulk lots of not less than 500 gallons in each delivery exempt from the taxes imposed under Sections 206.41 and 206.87, F.S., may obtain an ultimate vendor credit for the taxes paid when their Wholesaler/Importer Fuel Tax Returns (Form DR-309632) are filed.

(c) To obtain an ultimate vendor credit, wholesalers must complete Schedule 12, Ultimate Vendor Credits. Schedule 12 is required to be filed with the Wholesaler/Importer Fuel Tax Return, as indicated on the return.

History

• Rulemaking Authority 206.14(1), 206.485(1), 206.59(1), 213.06(1), 213.755(8) FS. Law Implemented 206.01(4), 206.02, 206.05, 206.404, 206.43, 206.48, 206.485, 206.86, 206.90, 206.91, 213.755 FS. History–New 7-1-96, Amended 11-21-96, 10-27-98, 5-1-06, 6-1-09, 1-25-12, 1-20-14, 7-28-15, 1-17-18, 1-1-21, 1-25-26.

Fla. Admin. Code R. 12B-5.070 Terminal Operators

(1) Licensing.

(a) Before any person may engage in business as a terminal operator within this state, such person must hold a valid terminal operator license. Terminal operators who own fuel sold or transferred through a terminal must also be licensed as a terminal supplier. See Rule 12B-5.050, F.A.C.

(b)1. To obtain an annual license as a terminal operator, a person must file a Florida Fuel or Pollutants Tax Application (Form DR-156, incorporated by reference in Rule 12B-5.150, F.A.C.), with the required attachments, with the Department, as provided in the application, and enroll in the Department’s eServices.

2. To enroll in the eServices to submit returns electronically to the Department, the terminal operator must do one of the following:

a. Complete enrollment on the Department’s website at floridarevenue.com/taxes/eEnroll.

b. Complete Form DR-600, Enrollment and Authorization for eServices (incorporated by reference in Rule 12-24.011, F.A.C.), as provided in Rule 12-24.004, F.A.C., and return it to the Department, if the terminal operator is unable to use the Department’s website to enroll.

3. Terminal operators who can establish that they are unable to comply with the electronic filing requirements must complete and submit Form DR-654, Request for Waiver From Electronic Filing (incorporated by reference in Rule 12-24.011, F.A.C.), to establish in writing the basis for the requested waiver, as provided in Rule 12-24.010, F.A.C.

(c) Each license is required to be renewed annually by filing Form DR-156R, Renewal Application for Florida Fuel/Pollutants License (incorporated by reference in Rule 12B-5.150, F.A.C.), and the required attachments with the Department, as provided in the renewal application.

(2) Information Returns.

All terminal operators who operate terminals in this state are required to file a Terminal Operator Information Return (Form DR-309636, incorporated by reference in Rule 12B-5.150, F.A.C.), electronically with the Department, as provided in rule Chapter 12-24, F.A.C. The electronic return must be submitted by Extensible Markup Language (XML), as provided in the Motor Fuel Taxes XML User Guide for eFile Developers and Transmitters (Form DR-309652, incorporated by reference in Rule 12B-5.150, F.A.C.). The electronic return must be filed on or before the 20th day of each month for transactions occurring during the previous month. A separate return is required for each terminal location. To be timely, the electronic return must be received by the Department or its agent before 5:00 p.m. (Eastern Time), on or before the 20th day of each month. For terminal operators who are authorized to submit Form DR-309636 by hard copy, the return will be accepted as timely if postmarked or delivered to the Department on or before the 20th day of each month. If the 20th day falls on a Saturday, Sunday, or legal holiday, returns will be accepted as timely if an electronic return is received by the Department or its agent on or before 5:00 p.m. (Eastern Time), or a hard-copy return, when permitted, is postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For the purpose of this rule, a legal holiday will mean a holiday that is observed by federal or state agencies as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

History

• Rulemaking Authority 206.14(1), 206.485(1), 206.59(1), 213.06(1), 213.755(8) FS. Law Implemented 206.01(19), 206.022, 206.095, 206.485, 206.872, 213.755 FS. History–New 7-1-96, Amended 11-21-96, 5-1-06, 6-1-09, 1-25-12, 7-28-15, 1-17-18, 3-25-20, 1-25-26.

Fla. Admin. Code R. 12B-5.080 Exporters

(1) General Information.

(a) Exporters are persons who remove fuel from Florida by common or private carrier.

(b) Persons licensed as exporters are authorized to purchase fuel in this state for export only. Storage of fuel by an exporter in this state must be limited to no more than 24 hours in order for the fuel to remain in stream of interstate commerce.

(2) Licensing and Bonding.

(a) Licensing.

1. Before any person may engage in business as an exporter, such person must hold a valid license as an exporter of motor fuel or diesel fuel.

2. Persons who buy fuel within Florida or outside Florida, and who sell the fuel to Florida customers must be licensed as wholesalers. See Rule 12B-5.060, F.A.C.

(b)1. To obtain an annual license as an exporter, a person must file a Florida Fuel or Pollutants Tax Application (Form DR-156, incorporated by reference in Rule 12B-5.150, F.A.C.), with the required attachments, with the Department, as provided in the application, and enroll in the Department’s eServices.

2. To enroll in eServices to make payments and submit returns electronically to the Department, the exporter must:

a. Complete enrollment on the Department’s website at floridarevenue.com/taxes/eEnroll, or

b. Complete Form DR-600, Enrollment and Authorization for eServices (incorporated by reference in Rule 12-24.011, F.A.C.), as provided in Rule 12-24.004, F.A.C., and return it to the Department, if the exporter is unable to use the Department’s website to enroll.

3. Exporters who can establish that they are unable to comply with the electronic payment and electronic filing requirements must complete and submit Form DR-654, Request for Waiver From Electronic Filing (incorporated by reference in Rule 12-24.011, F.A.C.) to establish in writing the basis for the requested waiver, as provided in Rule 12-24.010, F.A.C.

4. Each license is required to be renewed annually by filing Form DR-156R, Renewal Application for Florida Fuel/Pollutants License (incorporated by reference in Rule 12B-5.150, F.A.C.), and the required attachments with the Department, as provided in the renewal application.

(c) Bonding.

1. An exporter’s bond will be equal to three times the total state and local option taxes that would be due if the fuel was sold for highway use in Florida.

2. An exporter, who is also bonded as a wholesaler, will obtain a bond which will be the difference between the wholesaler bond and the $300,000 maximum bond for motor fuel and diesel fuel.

(3) Returns and Payments.

(a) Returns.

1. Licensed exporters of gasoline, gasohol, or diesel fuel are required to report all gallons of fuel exported from Florida on an Exporter Fuel Tax Return (form DR-309638, incorporated by reference in Rule 12B-5.150, F.A.C.). Licensed exporters that are also licensed as wholesalers are required to report their export sales on a Wholesaler/Importer Fuel Tax Return (form DR-309632, incorporated by reference in Rule 12B-5.150, F.A.C.).

2. Form DR-309638, Exporter Tax Return, and form DR-309632, Wholesaler/Importer Fuel Tax Return, as applicable, using the Department’s eServices website by manually entering data or importing comma-delimited (CSV) or fixed-length text (flat) files as provided in Motor Fuel Taxes Comma Delimited (CSV) and Flat File Specifications – Wholesaler/Importer, Exporter, Blender, and Petroleum Carrier Fuel Tax Returns (form DR-309653, incorporated by reference in Rule 12B-5.150, F.A.C.). The electronic returns must be filed on or before the 20th day of the month following a month in which export transactions occur. To be timely, the electronic return must be received by the Department or its agent before 5:00 p.m. (Eastern Time), on or before the 20th day of each month. For exporters who are authorized to submit form DR-309638 or form DR-309632 by hard copy, the return will be accepted as timely if postmarked or delivered to the Department on or before the 20th day of each month. If the 20th day falls on a Saturday, Sunday, or legal holiday, returns will be accepted as timely if an electronic return is received by the Department or its agent on or before 5:00 p.m. (Eastern Time), or a hard copy return, when permitted, is postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For the purpose of this rule, a legal holiday means a holiday that is observed by federal or state agencies as this term is defined in Chapter 683, F.S., and s. 7503, of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) Payments. Payments must be submitted to the Department electronically, as provided in rule Chapter 12-24, F.A.C.

(4) Taxable Purchases.

(a) Exporters must pay to terminal suppliers taxes imposed in the state of destination when terminal suppliers are licensed to collect such taxes.

(b) Purchases of fuel by exporters from terminal suppliers, who are not licensed to collect taxes in states of destination, are subject to Florida taxes imposed under Sections 206.41 and 206.87, F.S.

(5) Refunds and Credits.

(a) Exporters who export fuel to other states on which Florida tax has been paid may obtain a refund of Florida taxes paid. To receive a refund of Florida tax paid, an exporter must file an Application for Refund (Form DR-26, incorporated by reference in Rule 12-26.008, F.A.C.) with the Department. Form DR-26 must be filed in accordance with the timing provisions of Section 215.26(2), F.S., and must meet the requirements of Sections 213.255(2) and (3), F.S. Form DR-26, Application for Refund, must be filed with the Department within 3 years after the date the tax was paid.

(b) Copies of invoices for purchases and sales of fuel exported outside Florida and copies of the tax returns filed in the state of destination are required to be submitted with the application for refund.

(c) Exporters who sell fuel exempt in another state on which taxes were collected for the state of destination by terminal suppliers in Florida, must obtain refunds from the states to which the fuel was exported.

(6) Diversion Numbers.

(a)1. Before any fuel, purchased by an exporter, may be sold in Florida, such exporter must first call the Department of Revenue at 1(800)360-5436, and obtain a diversion number.

2. After receiving the required diversion number, an exporter must provide such number to the carrier transporting the fuel, and the number must be manually recorded on shipping papers maintained by such carrier.

(b) To divert fuel purchased for export from Florida back to Florida sales, the exporter must be licensed as a wholesaler.

History

• Rulemaking Authority 206.14(1), 206.485(1), 206.59(1), 206.87(1)(e)2., 213.06(1), 213.755(8) FS. Law Implemented 206.01(21), 206.02, 206.03, 206.04, 206.05, 206.051, 206.052, 206.41, 206.416, 206.43, 206.48, 206.485, 206.62, 206.87, 206.90, 206.91, 206.97, 206.9915, 213.755 FS. History–New 7-1-96, Amended 11-21-96, 10-27-98, 5-1-06, 6-1-09, 1-25-12, 1-20-14, 7-28-15, 1-17-18, 1-1-21, 1-25-26.

Fla. Admin. Code R. 12B-5.090 Local Government Users of Diesel Fuel

(1) General Information.

(a)1. Counties, municipalities, and school districts are authorized to use dyed diesel fuel in on-road vehicles.

2. Dyed diesel fuel purchased for use by counties, municipalities, and school districts is subject to a portion of the backup tax imposed under Section 206.873, F.S., when used in on-road vehicles.

3. Counties, municipalities, and school districts that manufacture biodiesel fuel solely for their own use are not required to be licensed as wholesalers.

4. Counties, municipalities, and school districts that manufacture biodiesel fuel for sale must meet all the requirements prescribed for wholesalers in Rule 12B-5.060, F.A.C.

(b) Motor fuel purchased for use by counties, municipalities, and school districts is fully taxable at the time of purchase, but a portion of the tax paid is refundable.

(2) Licensing and Bonding.

(a) Licensing.

1. All counties, municipalities, and school districts that use dyed diesel fuel in motor vehicles, and all counties, municipalities, and school districts that manufacture biodiesel fuel solely for their own use, must be licensed as Local Government Users.

2. To obtain a license as a Local Government User of diesel fuel, a county, municipality, or school district, must file a Florida Fuel or Pollutants Tax Application (Form DR-156, incorporated by reference in Rule 12B-5.150, F.A.C.) and the required attachments with the Department, as provided in the application.

3. There is no license fee or license tax for a local government user to obtain a license.

(b) Bonding. A bond is not required of persons applying for a license as a Local Government User.

(3) Returns and Payments.

(a) Returns. Local Government Users are required to file a Local Government User of Diesel Fuel Tax Return (form DR-309634, incorporated by reference in Rule 12B-5.150, F.A.C.), using the Department’s eServices website by manually entering data or importing comma-delimited (CSV) or fixed-length text (flat) files as provided in Motor Fuel Taxes Comma Delimited (CSV) and Flat File Specifications – Mass Transit System Providers and Local Government Users of Diesel Fuel Tax Returns (form DR-309654, incorporated by reference in Rule 12B-5.150, F.A.C.). The return must be filed with the Department on or before the 20th day of each month following the month in which the use of fuel occurs. The return, when filed by hard copy, will be accepted as timely if postmarked or delivered to the Department on or before the 20th day of each month. An electronic return must be received by the Department or its agent before 5:00 p.m. (Eastern Time), on or before the 20th day of each month. If the 20th day of the month falls on a Saturday, Sunday, or legal holiday, returns will be accepted as timely if an electronic return is received by the Department or its agent on or before 5:00 p.m. (Eastern Time), or a hard copy return is postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For the purpose of this rule, a legal holiday means a holiday that is observed by federal or state agencies as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) Payments. Payments must be submitted to the Department, as provided in rule Chapter 12-24, F.A.C.

(4) Refunds and Credits.

(a) When filing a Local Government User of Diesel Fuel Tax Return (Form DR-309634, incorporated by reference in Rule 12B-5.150, F.A.C.), a county, municipality, or school district will be required to pay 3 cents of the 4 cent excise tax under Section 206.87(1)(a), F.S., the ninth-cent fuel tax under Section 206.87(1)(b), F.S., the local option fuel tax under Section 206.87(1)(c), F.S., and the state comprehensive enhanced transportation system tax under Section 206.87(1)(d), F.S., on dyed diesel fuel used in vehicles owned or operated by the county, municipality, or school district. Local government users may take a credit, or obtain a refund, of taxes paid on motor fuel under Section 206.41(1)(b), F.S., and the fuel sales tax imposed under Section 206.41(1)(g)1., F.S., when filing the return.

(b)1. Any county, municipality, or school district, which is not licensed as a local government user, that uses tax-paid diesel fuel, gasoline, or gasohol in vehicles operated on the highways, may seek a refund each calendar quarter for the fuel taxes imposed under Sections 206.41(1)(b) and (g), F.S., for gasoline and gasohol, 1 cent of the tax imposed under Section 206.87(1)(a), F.S., and all of the tax imposed under Section 206.87(1)(e), F.S., on diesel fuel.

2. Prior to qualifying for a refund of taxes paid, counties, municipalities, or school districts and nonpublic schools are required to file an Application for Fuel Tax Refund Permit (Form DR-185, incorporated by reference in Rule 12B-5.150, F.A.C.) and obtain a Fuel Tax Refund Permit issued by the Department.

3. To apply for the refund, a county, municipality, or school district that holds a valid refund permit is required to file an Application for Fuel Tax Refund, Municipalities, Counties and School Districts (Form DR-189, incorporated by reference in Rule 12B-5.150, F.A.C.) with the Department. Form DR-189 must be filed for each calendar quarter no later than the last day of the month immediately following the calendar quarter for which the refund is claimed. The filing date may be extended one additional month from the date Form DR-189 is due when a written explanation that sets forth reasonable cause for delay in filing the refund application is submitted with the application and the prior quarter’s refund application was timely submitted to the Department.

4. Any nonpublic school operating school buses that holds a valid refund permit is required to file an Application for Fuel Tax Refund Non-Public Schools (Form DR-190, incorporated by reference in Rule 12B-5.150, F.A.C.) with the Department. Form DR-190 must be filed for each calendar quarter no later than the last day of the month immediately following the calendar quarter for which the refund is claimed. The filing date may be extended one additional month from the date Form DR-190 is due when a written explanation that sets forth reasonable cause for delay in filing the refund application is submitted with the application and the prior quarter’s refund application was timely submitted to the Department.

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.87(1)(e)2., 213.06(1), 213.755(8) FS. Law Implemented 206.01(9), 206.41(4), 206.86(1), (7), (9), (12), (13), 206.874(4), 213.755 FS. History–New 7-1-96, Amended 11-21-96, 10-27-98, 5-1-06, 6-1-09, 1-25-12, 5-9-13, 1-20-14, 7-28-15, 1-25-26.

Fla. Admin. Code R. 12B-5.100 Mass Transit Systems

(1) General Information.

(a)1. Mass transit systems are authorized to use dyed diesel fuel in on-road vehicles.

2. Dyed diesel fuel purchased for use by Mass Transit Systems is subject to a portion of the backup tax imposed under Section 206.873, F.S., when used in vehicles.

(b) Motor fuel purchased for use by Mass Transit Systems is fully taxable at the time of purchase, but a portion of the taxes paid is refundable.

(2) Licensing and Bonding.

(a) Licensing.

1. Mass transit systems seeking refunds from the state or partial exemption must hold a valid Mass Transit Systems License.

2. To obtain a Mass Transit Systems License, a person must file a Florida Fuel or Pollutants Tax Application (Form DR-156, incorporated by reference in Rule 12B-5.150, F.A.C.) and the required attachments with the Department, as provided in the application.

3. There is no license fee or license tax for a mass transit system to obtain a license.

(b) Bonding. A bond is not required of persons applying for a license as a Mass Transit System.

(3) Returns and Payments.

(a) Returns. Mass Transit Systems are required to file a Mass Transit System Provider Fuel Tax Return (form DR-309633, incorporated by reference in Rule 12B-5.150, F.A.C.) using the Department’s eServices website by manually entering data or importing comma-delimited (CSV) or fixed-length text (flat) files as provided in Motor Fuel Taxes Comma Delimited (CSV) and Flat File Specifications – Mass Transit System Providers and Local Government Users of Diesel Fuel Tax Returns (form DR-309654, incorporated by reference in Rule 12B-5.150, F.A.C.). The return must be filed and the tax due must be remitted on or before the 20th day of the month following the month in which the use of fuel occurs. The return, when filed by hard copy, will be accepted as timely if postmarked or delivered to the Department on or before the 20th day of each month. An electronic return must be received by the Department or its agent before 5:00 p.m. (Eastern Time), on or before the 20th day of each month. If the 20th day of the month falls on a Saturday, Sunday, or legal holiday, returns will be accepted as timely if an electronic return is received by the Department or its agent on or before 5:00 p.m. (Eastern Time), or a hard copy return, is postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For the purpose of this rule, a legal holiday means a holiday that is observed by federal or state agencies as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) Payments. Payments must be submitted to the Department, as provided by Chapter 12-24, F.A.C.

(4) Refunds and Credits.

(a)1. When filing a return, a Mass Transit System will be required to pay the excise tax under Section 206.87(1)(a), F.S., and the ninth-cent fuel tax under Section 206.87(1)(b), F.S., on dyed diesel fuel used in vehicles owned or operated by the system.

2. Any mass transit system provider, which is not licensed as a Mass Transit System, that uses undyed diesel fuel, gasoline, or gasohol in vehicles operated on the highways, may seek a refund each calendar quarter for the fuel taxes imposed under Section 206.41(1)(e), (f) and (g), or 206.87(1)(c), (d) and (e), F.S.

(b)1. Prior to qualifying for a refund of taxes paid, a Mass Transit System is required to file an Application for Fuel Tax Refund Permit (Form DR-185, incorporated by reference in Rule 12B-5.150, F.A.C.) and obtain a Fuel Tax Refund Permit issued by the Department to obtain such refunds.

2. A Mass Transit System that holds a valid refund permit is required to file an Application for Fuel Tax Refund-Mass Transit System Users (Form DR-160, incorporated by reference in Rule 12B-5.150, F.A.C.) with the Department to obtain such refunds. Form DR-160 must be filed for each calendar quarter no later than the last day of the month immediately following the calendar quarter for which the refund is claimed. The filing date may be extended one additional month from the date the DR-160 is due when a written explanation that sets forth reasonable cause for delay in filing the refund application is submitted with the application and the prior quarter’s refund application was timely submitted to the Department.

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.87(1)(e)2., 213.06(1), 213.755(8) FS. Law Implemented 206.41(4), 206.86(10), 206.874(5)(a), 213.755 FS. History–New 7-1-96, Amended 11-21-96, 10-27-98, 5-1-06, 6-1-09, 1-25-12, 5-9-13, 7-28-15, 1-25-26.

Fla. Admin. Code R. 12B-5.110 Blenders

(1) General Information.

(a) Any person who is not otherwise licensed under Chapter 206, F.S., and who is engaged in the activity of blending gasoline, gasohol, or diesel with any other product, where end products may be used to propel a vehicle or vessel, must be licensed as a blender.

(b) All persons who are licensed as terminal suppliers, wholesalers, or exporters under Chapter 206, F.S., and who are engaged in the activity of blending gasoline, gasohol, or diesel with any other product, must remit tax on all untaxed products which are blended, where end products are available for sale or use.

(2) Licensing.

(a)1. To obtain a license as a blender, every person must file a Florida Fuel or Pollutants Tax Application (Form DR-156, incorporated by reference in Rule 12B-5.150, F.A.C.), with the required attachments, with the Department, as provided in the application, and enroll in the Department’s eServices.

2. To enroll in eServices to make payments and submit returns electronically to the Department, the blender must:

a. Complete enrollment on the Department’s website at floridarevenue.com/taxes/eEnroll, or

b. Complete Form DR-600, Enrollment and Authorization for eServices (incorporated by reference in Rule 12-24.011, F.A.C.), as provided in Rule 12-24.004, F.A.C., and return it to the Department, if the blender is unable to use the Department’s website to enroll.

3. Blenders who can establish that they are unable to comply with the electronic payment and electronic filing requirements must complete and submit Form DR-654, Request for Waiver From Electronic Filing (incorporated by reference in Rule 12-24.011, F.A.C.), to establish in writing the basis for the requested waiver, as provided in Rule 12-24.010, F.A.C.

(b) A blender is a person who blends:

1. Diesel fuel with any other product to produce a product for use in a diesel engine;

2. Gasoline with alcohol to produce gasohol;

3. Kerosene with other product to produce a product suitable for use in a diesel engine;

4. Motor or diesel with any other product to extend the volume of such fuels available for sale or use.

(3) Returns and Payments.

(a) Licensees will report, and remit tax on blended products to the Department of Revenue monthly using the returns required under their licenses.

(b)1. The return when filed must indicate the gallons of taxable fuel purchased, and the total gallons of products used to blend with taxable fuel.

2. Taxes imposed under Sections 206.41 and 206.87, F.S., are owed on the gallons of the total product on which taxes were not collected at the time of purchase.

(c) Returns. Any person who is licensed as a blender is required to file a Blender Fuel Tax Return (form DR-309635, incorporated by reference in Rule 12B-5.150, F.A.C.), using the Department’s eServices website by manually entering data or importing comma-delimited (CSV) or fixed-length text (flat) files as provided in Motor Fuel Taxes Comma Delimited (CSV) and Flat File Specifications – Wholesaler/Importer, Exporter, Blender, and Petroleum Carrier Fuel Tax Returns (form DR-309653, incorporated by reference in Rule 12B-5.150, F.A.C.). The electronic return must be filed on or before the 20th day of the month following a month in which transactions occur. To be timely, the electronic return must be received by the Department or its agent before 5:00 p.m. (Eastern Time), on or before the 20th day of each month. For blenders who are authorized to submit form DR-309635 by hard copy, the return will be accepted as timely if postmarked or delivered to the Department on or before the 20th day of each month. If the 20th day falls on a Saturday, Sunday, or legal holiday, returns will be accepted as timely if an electronic return is received by the Department or its agent on or before 5:00 p.m. (Eastern Time), or a hard copy return, when permitted, is postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For the purpose of this rule, a legal holiday means a holiday that is observed by federal or state agencies as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(d) Payments. Payments must be submitted to the Department electronically, as provided in rule Chapter 12-24, F.A.C.

History

• Rulemaking Authority 206.14(1), 206.485(1), 206.59(1), 206.87(1)(e)2., 213.06(1), 213.755(8) FS. Law Implemented 206.02(3), 206.48(1), 206.485, 206.86(5), 206.87(2)(e), 213.755 FS. History–New 7-1-96, Amended 11-21-96, 10-27-98, 5-1-06, 6-1-09, 1-25-12, 7-28-15, 1-17-18, 1-25-26.

Fla. Admin. Code R. 12B-5.120 Resellers and Retail Dealers

(1) Any person desiring to engage in the business of selling motor fuel or diesel fuel at retail or reselling tax-paid fuel to retailers or end users must register with the Department and obtain a separate sales and use tax certificate of registration for each place of business.

(2)(a) Registration with the Department for purposes of sales and use tax is available by using one of the following methods:

1. Registering through the Department’s website (floridarevenue.com/taxes/eEnroll) using the Department’s eServices.

2. Filing a Florida Business Tax Application (Form DR-1, incorporated by reference in Rule 12A-1.097, F.A.C.) with the Department, as indicated on the form.

(b) A separate application is required for each place of business. If a business previously submitted Form DR-1 to the Department and holds an active certificate of registration or reemployment tax account, the business may use an Application for Registered Businesses to Add a New Florida Location (Form DR-1A, incorporated by reference in Rule 12A-1.097, F.A.C.) in the following circumstances:

1. To register an additional business location.

2. To update a registered location that has moved from one Florida county to another.

History

• Rulemaking Authority 206.14(1), 206.59(1), 213.06(1) FS. Law Implemented 206.404, 206.41(5), 206.414, 206.43, 206.44, 206.86, 212.18(3) FS. History–New 7-1-96, Amended 11-21-96, 10-27-98, 5-1-06, 1-17-18, 3-25-20.

Fla. Admin. Code R. 12B-5.121 Temporary Licenses Issued Under a Declared Emergency

(1) General Information. The Department is authorized to grant the following temporary licenses to import into, export from, or transport fuel within Florida when the Governor of Florida has declared a state of emergency pursuant to Section 252.36, F.S., or when the President of the United States has declared a major disaster in Florida, another state, territory of the United States, or the District of Columbia:

(a) A temporary license as an importer or exporter of fuel to any person who holds a valid Florida fuel license as a wholesaler or to an unlicensed dealer, or

(b) A temporary license as a carrier to any person who holds a valid Florida license as a wholesaler, importer, exporter, or blender or to an unlicensed dealer.

(2) Licensing.

(a) Temporary Importer, Exporter, or Carrier Licenses. Temporary licenses to import into, export from, or transport fuel within Florida will only be granted to:

1. A business with a physical location in Florida that holds a valid Florida Sales and Use Tax certificate of registration, or

2. Any person who holds a valid fuel license issued by another state.

(b) To obtain the temporary Florida fuel license, the person engaging temporarily in business as an importer, exporter, or carrier must file a Florida Temporary Fuel Tax Application (form DR-156T, incorporated by reference in Rule 12B-5.150, F.A.C.) with the Department, as provided in the application. A copy of the completed form DR-156T is to be scanned and emailed or faxed to the phone number indicated in the application, and the original application is to be mailed to the address indicated in the application. Form DR-156T may be obtained, without cost, from the Department’s website at floridarevenue.com/forms or by calling the Department at (850)488-6800, Monday through Friday (excluding holidays). Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(c) No licensing tax is required to obtain a temporary fuel license. No criminal background investigation of an applicant will be conducted.

(d) The effective date of the Florida temporary fuel license is the date the application is received by the Department or, when the application is not faxed or otherwise submitted electronically to the Department, the postmark date of the application. Temporary license holders are authorized to import, export, or transport fuel within Florida on the effective date of the temporary license issued by the Department.

(e) Duration of Temporary Fuel Licenses.

1. A temporary importer, temporary exporter, or temporary carrier license expires on the last day of the month following the month in which the temporary license is issued. For example, the Department issues a temporary importer license effective July 15. The temporary license expires at midnight, August 31.

2. Any person who holds a temporary importer, temporary exporter, or temporary carrier license may request that the expiration date of the temporary license be extended during the declared state of emergency or major disaster. No extension of a temporary fuel license will be granted to any temporary licensee who has failed to file the required returns or to remit fuel taxes due to the Department.

3. To obtain an extension of the expiration date of the license, the license holder must scan and email, fax, or mail a written request for a one-month extension of the expiration date of the license to the Department. The written request must be scanned and emailed, faxed, or postmarked on or before the expiration date of the current temporary license to:

Account Management – Fuel Unit

Florida Department of Revenue

P.O. Box 6480

Tallahassee FL 32314-6480.

Fax Number: (850)245-5867

Email: motor_fuel@floridarevenue.com

4. The Department will grant an extension of the expiration date of a temporary exporter, temporary importer, or temporary carrier license on a month-to-month basis. The extension of the expiration date will become effective on the first day of the next calendar month after receiving the written request and will expire at midnight on the last day of that month.

5. For example, the Governor of Florida declares a state of emergency on June 5, and a dealer who holds a valid fuel license issued by the State of Georgia wants to transport fuel into Florida. The Georgia fuel dealer faxes a completed Florida Temporary Fuel Tax Application (Form DR-156T) to the Department on June 6. On that date, the Department issues the Georgia dealer a temporary importer license authorizing the dealer to transport fuel into Florida. The Florida temporary fuel license will expire at midnight, July 31. On July 28, the declared state of emergency remains in effect, and the temporary importer faxes a written request to the Department to obtain an extension of the expiration date. The Department will grant an extension of the temporary license’s expiration date that will remain in effect until midnight, August 31.

(3) Temporary Importers, Exporters, or Carriers.

(a) Dealers who hold temporary fuel licenses must provide the assigned temporary importer or temporary exporter license number to any licensed carrier who transports fuel into Florida and record the temporary fuel license number on all shipping documents provided to the carrier.

(b) Temporary Importers.

1. Sales of Gasoline Products.

a. Florida fuel tax is due on gasoline and gasohol purchased by temporary importers from terminals located outside Florida and destined for sale in Florida.

b. Temporary importers must collect and remit to the Department the total Florida fuel tax imposed on each gallon of gasoline products sold to retail dealers and end users in Florida on fuel purchased from out-of-state fuel dealers who do not hold a Florida fuel license. Tax is due at the total tax rate imposed by the county where the gasoline product is sold when no Florida fuel tax has been collected or paid on the gasoline products sold.

c. Temporary importers must collect and remit to the Department any additional local option fuel tax due that was not collected by the terminal supplier on sales of gasoline and gasohol in Florida when the Florida statewide fuel taxes have been paid to an out-of-state terminal supplier. Only the local option tax above the minimum rate collected by terminal suppliers is required to be paid to the Department by licensed temporary importers upon each gallon of gasoline product sold in Florida.

2. Sales of Diesel Products.

a. Temporary importers must collect and remit the total statewide fuel taxes for undyed diesel fuel sold when no Florida fuel tax has been collected or paid on the undyed diesel products.

b. No additional fuel tax is due on sales of undyed diesel in Florida when the Florida fuel taxes have been paid to an out-of-state terminal supplier who holds a valid Florida fuel license.

3. Florida fuel tax rates by county may be found at the Department’s website at floridarevenue.com/taxes/rates.

(c) Temporary Exporters.

1. Temporary exporters who purchase taxable fuel in Florida during a declared emergency or disaster are required to pay the fuel taxes due to licensed terminal suppliers at the fuel tax rate imposed in the state to which the fuel is destined for sale or use. For example, a fuel distributor licensed in Georgia obtains a temporary exporter’s license in Florida during a declared emergency in Georgia. When the temporary exporter purchases taxable fuel at a Florida terminal supplier for export to Georgia, the Florida terminal supplier is required to collect and remit fuel tax due at the rate imposed on the fuel in Georgia.

2.a. Temporary exporters who purchase taxable fuel in Florida during a declared state of emergency or major disaster from any person who does not hold a valid Florida fuel license as a terminal supplier are required to pay the fuel taxes imposed by Sections 206.41, 206.87 and 206.9825, F.S., to their Florida licensed suppliers or directly to the Department when purchased from an unlicensed supplier.

b. Temporary exporters who export fuel to other states on which Florida tax has been paid may obtain a refund of Florida taxes paid. To receive a refund of Florida tax paid, an exporter must file an Application for Refund (Form DR-26, incorporated by reference in Rule 12-26.008, F.A.C.) with the Department. Form DR-26 must be filed in accordance with the timing provisions of Section 215.26(2), F.S., and must meet the requirements of Sections 213.255(2) and (3), F.S. Form DR-26 must be filed with the Department within three (3) years after the date the tax was paid.

c. Copies of invoices for purchases and sales of fuel exported outside Florida and copies of the tax returns filed in the state of destination are required to be submitted with the application for refund.

(d) Temporary Carriers.

1. Carriers who are not licensed to transport fuel in Florida, prior to a declared emergency or disaster, are required to obtain a temporary carrier license to transport fuel within Florida during a declared emergency or disaster.

2. Carriers who do not hold a valid Florida fuel license or a Florida temporary importer or temporary exporter license are prohibited from transporting fuel in Florida that is owned by the carrier.

(4) Exempt Sales.

(a) Fuel sold by a temporary importer to the United States government, its departments, or its agencies in quantities of 500 gallons or more in each delivery, for exclusive use in equipment, devices, or motors operated by the United States, is exempt from tax. This exemption does not apply to sales of fuel delivered to service stations or other outlets for resale.

(b) Dyed diesel fuel sold by a temporary importer is exempt from the fuel taxes imposed under Section 206.87(1), F.S., but is subject to sales tax imposed under Section 212.0501, F.S.

(c) Undyed diesel fuel sold by a temporary importer to a farmer for use in farm equipment on a farm is exempt from the fuel tax imposed under Section 206.87(1), F.S. To sell such fuel tax-exempt, the temporary importer must obtain a written certification from the farmer certifying that the identified number of gallons of undyed diesel fuel will be used exclusively in agricultural equipment on a farm. Temporary importers are required to collect all taxes imposed under Section 206.87(1), F.S., on undyed diesel sold to farmers for nonagricultural use.

(5) Taxable Sales. Temporary importers are required to collect the following taxes:

(a) The taxes imposed by Section 206.41(1), F.S., on all nontaxed sales, deliveries, or consignments of motor fuel to retail dealers, resellers, and end users;

(b) The taxes imposed by Section 206.87(1), F.S., on all nontaxed sales, deliveries, or consignments of undyed diesel fuel to retail dealers, resellers, and end users.

(6) Returns.

(a) Return Due Dates.

1. Returns to report taxes imposed under Chapter 206, F.S., and information returns are due to the Department on or before the 20th day of each month for transactions occurring during the previous month. If the 20th day falls on a Saturday, Sunday, or legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department on the next succeeding day that is not a Saturday, Sunday, or legal holiday.

2. For the purpose of this rule, a legal holiday means a holiday that is observed by federal or state agencies as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) Wholesaler/Importer Fuel Tax Return.

1. All temporary importers, who sell gasoline, gasohol, diesel, and undyed diesel, are required to report all taxes imposed by Chapter 206, F.S., on a Wholesaler/Importer Fuel Tax Return (form DR-309632, incorporated by reference in Rule 12B-5.150, F.A.C.) on or before the 20th day of each month for transactions occurring during the previous month.

2. A collection allowance deduction (found on the return) is authorized to temporary importers from the taxes collected under Sections 206.41(1)(a), (b), (c) and (g), F.S., on sales of motor fuel when 50 percent of the allowable deduction is granted to a purchaser with a valid wholesaler or terminal supplier license, and only when the return and payment are remitted timely.

3. A .67 percent (.0067) collection allowance deduction is authorized from taxes collected under Sections 206.87(1)(a) and (e), F.S., to temporary importers on sales of diesel fuel when 50 percent of the allowable deduction is granted to a purchaser with a valid wholesaler or terminal supplier license, and only when the return and payment are remitted timely.

(c) Exporter Fuel Tax Return. Temporary exporters of gasoline, gasohol, diesel, and undyed diesel are required to report all gallons of fuel exported from Florida on an Exporter Fuel Tax Return (form DR-309638, incorporated by reference in Rule 12B-5.150, F.A.C.).

(d) Carrier Information Return. Temporary carriers of gasoline, gasohol, diesel, and undyed diesel are required to report all gallons of fuel exported from Florida on a Petroleum Carrier Information Return (form DR-309637, incorporated by reference in Rule 12B-5.150, F.A.C.).

(7) Refunds and Credits.

(a) Temporary importers that sell fuel to the United States government or its agencies in bulk lots of not less than 500 gallons in each delivery exempt from taxes imposed under Sections 206.41 and 206.87, F.S., may obtain an ultimate vendor credit for the taxes paid when their Wholesaler/Importer Fuel Tax returns (Form DR-309632) are filed.

(b) Temporary importers that sell undyed diesel fuel to farmers for agricultural purposes tax exempt, from taxes imposed under Section 206.87, F.S., may obtain an ultimate vendor credit for the taxes paid when their Wholesaler/Importer Fuel Tax Returns (Form DR-309632) are filed.

(c)1. Instead of taking ultimate vendor credits on their fuel tax returns, temporary importers may obtain a refund of fuel taxes paid on sales of gasoline, gasohol, and undyed diesel sold for exempt purposes.

2. To receive a refund of Florida tax paid, a temporary importer must file an Application for Refund (Form DR-26, incorporated by reference in Rule 12-26.008, F.A.C.) with the Department. Form DR-26 must be filed in accordance with the timing provisions of Section 215.26(2), F.S., and must meet the requirements of Sections 213.255(2) and (3), F.S. Form DR-26 must be filed with the Department within three (3) years after the date the tax was paid.

3. Copies of invoices showing the amount of taxes paid must be submitted with the application for refund.

History

• Rulemaking Authority 206.14(1), 206.59(1) FS. Law Implemented 206.02(8), 206.021(5), 206.051(4), 206.052, 206.41(1), 206.43(1), 206.62, 206.87(1), 206.8745, 206.91, 213.255(2), (3), 215.26(2) FS. History–New 6-1-09, Amended 1-25-12, 3-25-20, 1-25-26.

Fla. Admin. Code R. 12B-5.130 Refunds

(1) Fuel used for Agricultural, Aquacultural, Commercial Fishing, and Commercial Aviation Purposes.

(a)1. Any person who purchases motor fuel used in any tractor, vehicle, or other equipment that is used exclusively on a farm for planting, cultivating, harvesting, or processing farm products for sale, may obtain a refund of local option, state comprehensive enhanced transportation system, and fuel sales taxes paid under Sections 206.41(1)(e), (f) and (g), F.S. This provision includes motor vehicles licensed as a “goat,” as provided in Section 320.08(3)(d), F.S.

2. Persons using motor fuel in the operation of boats, vessels, or equipment used exclusively for the taking of fish, crayfish, oysters, shrimp, and sponges from the salt or fresh waters of Florida for sale are entitled to a refund of municipal fuel tax and local option, state comprehensive enhanced transportation system, and fuel sales taxes paid under Sections 206.41(1)(c), (e), (f) and (g), F.S.

3. Any person who purchases motor fuel for use in the operation of aviation ground support vehicles or equipment may obtain a refund of local option, state comprehensive enhanced transportation system, and fuel sales taxes paid under Sections 206.41(1)(e), (f) and (g), F.S. Motor fuel used in aviation ground support vehicles or equipment that is driven or operated upon the public highways of this state will not qualify for the refund.

(b) Prior to qualifying for a refund of taxes paid on motor fuel used for agricultural, aquacultural, commercial fishing, and commercial aviation purposes, every person is required to file an Application for Fuel Tax Refund Permit (Form DR-185, incorporated by reference in Rule 12B-5.150, F.A.C.) with the Department and obtain a Fuel Tax Refund Permit.

(c) Persons seeking a refund of taxes paid on motor fuel for agricultural, aquacultural, commercial fishing, and commerical aviation purposes must file an Application for Fuel Tax Refund-Agricultural, Aquacultural, Commercial Fishing, and Commercial Aviation Purposes (Form DR-138, incorporated by reference in Rule 12B-5.150, F.A.C.) with the Department. Form DR-138 must be filed for each calendar quarter no later than the last day of the month immediately following the calendar quarter for which the refund is claimed. The filing date may be extended one additional month when a written explanation that sets forth reasonable cause for delay in filing the refund application is submitted with the application and the prior quarter’s refund application was timely submitted to the Department.

(2) Undyed Diesel Fuel used for Off-Road Purposes or other Exempt Purposes.

(a) When undyed diesel fuel is consumed by a power take-off unit or engine exhaust for the purpose of turning a concrete mixer drum, for compacting solid waste, or for unloading bulk cargo by pumping, and such power take-off unit or engine exhaust is mounted on a motor vehicle that has no separate fuel tank, tax paid on the diesel fuel will be subject to a refund.

1. A refund of tax paid on undyed diesel fuel will be granted on thirty-five percent of the gallons consumed by vehicles that use fuel to turn a concrete mixer drum or for compacting solid waste. Sales tax imposed under Section 212.0501, F.S., plus any applicable discretionary sales surtax, is due on the average cost per gallon that is eligible for a refund of fuel tax paid. The Department will reduce the amount of refund due on fuel tax paid by the amount of sales tax, plus any applicable discretionary sales surtax, due. The net amount of the refund will be granted to the qualified applicant.

2. A refund of tax paid on undyed diesel fuel will be granted based on a percentage of the total gallons consumed by vehicles that use undyed diesel fuel for unloading bulk cargo by pumping. Sales tax imposed under Section 212.0501, F.S., plus any applicable discretionary sales surtax, is due on the average cost per gallon, as computed in Schedule 1B, Form DR-309639, Application for Refund of Tax Paid on Undyed Diesel Used for Off-road or Other Exempt Purposes, that is eligible for a refund of fuel tax paid. The Department will reduce the amount of refund due on the fuel tax paid by the amount of sales tax, plus any applicable discretionary sales surtax, due. The net amount of the refund will be granted to the qualified applicant.

(b) A refund of fuel tax on undyed diesel fuel will be granted when the fuel is used in off-road stationary equipment or in self-propelled off-road equipment. A refund will not be granted when the fuel is used to operate equipment on the highways. Sales tax imposed under Section 212.0501, F.S., plus any applicable discretionary sales surtax, is due on the average cost per gallon of fuel that is eligible for a refund of fuel taxes paid. The Department will reduce the amount of refund due on fuel tax paid by the amount of sales tax, plus any applicable discretionary sales surtax, due. The net amount of the refund will be granted to the qualified applicant.

(c) A refund of fuel tax paid on undyed diesel fuel will be granted when the fuel is used to operate a refrigeration unit or other equipment located on a commercial motor vehicle and the fuel is placed into a separate tank that is not connected to the fuel supply system of the commercial motor vehicle. Undyed diesel fuel used to operate a refrigeration unit or other equipment on a commercial motor vehicle operated by a licensed common carrier for use in interstate or foreign commerce is subject to sales tax based on the partial exemption provided in Section 212.08(9)(b), F.S., and discretionary sales surtax as provided in Section 212.054(2)(b)4., F.S. Sales tax and surtax due is calculated based on the carrier’s mileage apportionment factor. The Department will reduce the amount of refund due on fuel tax paid by the amount of sales tax, plus any applicable discretionary sales surtax, due. The net amount of the refund will be granted to the qualified applicant. See subsection 12A-1.064(6), F.A.C.

(d)1. Persons seeking a refund of tax paid on undyed diesel for off-road or other exempt purposes must file an Application for Refund of Tax Paid on Undyed Diesel Used for Off-road or Other Exempt Purposes (Form DR-309639, incorporated by reference in Rule 12B-5.150, F.A.C.) with the Department.

2. The Department will reduce the amount of fuel tax refund due by the amount of sales tax, plus any applicable discretionary sales surtax, due. The net amount of the refund will be granted to the qualified applicant.

(e) An invoice or delivery ticket issued by the seller at the time each motor vehicle is refueled must provide accurate information as to the date, the number of gallons placed in the fuel tanks of the motor vehicle, the motor vehicle number or tag number in the event the motor vehicle is not numbered, and the seller’s license or registration number. Documentation to provide information regarding fuel consumption is required to be maintained by the purchaser until tax imposed under Chapter 206, F.S., may no longer be determined and assessed under Section 95.091, F.S.

(3) Diesel Fuel Used in Interstate Commerce.

(a) Diesel fuel used in commercial vehicles regularly engaged in interstate commerce is fully taxable at the time of purchase in this state.

(b)1. Commercial vehicles having a Gross Vehicle Weight (GVW) of 26,000 pounds or more, and commercial vehicles having three or more axles (regardless of weight) are required to register with, file Fuel Tax Returns with, and pay tax to the Department of Highway Safety and Motor Vehicles (DHSMV).

2. Florida domiciled carriers who file returns with DHSMV must seek refunds or credits allowable under Section 207.005, F.S., from that agency.

(4) Diesel Fuel Sold for Use in Vessels.

(a) Dyed Diesel Fuel

1. The sale of dyed diesel fuel for use in any vessel not engaged in interstate or foreign commerce is subject to sales tax and discretionary sales surtax, and the selling dealer is required to collect the applicable sales tax and surtax. See Rule 12A-1.059, F.A.C.

2. The sale of dyed diesel fuel for use in a vessel used to transport persons or property for hire in interstate or foreign commerce is subject to the sales tax partial exemption provided in Section 212.08(4)(a)2., F.S., and subject to discretionary sales surtax, as provided in Section 212.054(2)(b)4., F.S. Dealers who sell dyed diesel fuel for use in such vessels are required to collect the applicable sales tax and surtax due or to obtain a certificate, as provided in Rule 12A-1.0641, F.A.C., from a qualifying purchaser stating that the fuel will be used in a vessel operated by a licensed carrier in interstate or foreign commerce.

3. The sale of dyed diesel fuel that is placed into the storage supply tank of a vessel or equipment used exclusively for commercial fishing and for aquacultural purposes listed in Section 206.41(4)(c)3., F.S., is exempt from sales tax.

(b) Undyed diesel fuel sold to a purchaser for use on a noncommercial vessel is subject to the fuel taxes imposed under Section 206.87(1), F.S. The purchaser may obtain a refund of diesel fuel tax paid as follows:

1. The purchaser must purchase 2,500 gallons or more of diesel fuel for use in a noncommercial vessel per calendar year. No refund will be allowed on purchases of less than 2,500 gallons per calendar year.

2. The purchaser must file an Application for Refund (Form DR-26, incorporated by reference in Rule 12-26.008, F.A.C.), prior to April 1 of the year subsequent to each calendar year in which the diesel fuel tax was paid. The purchaser is entitled to file only one application per calendar year.

3. The purchaser is required to submit original invoices showing the amount of taxes paid with the application. Form DR-26 must meet the requirements of Sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C.

4. The purchaser is required to pay the sales tax, plus any applicable discretionary sales surtax. The Department will reduce the amount of refund due on tax-paid diesel fuel used for exempt purposes by the amount of sales tax and discretionary sales surtax due.

(c) Undyed diesel fuel sold to a purchaser for use in a commerical fishing vessel or a vessel engaged in the business of commercial transportation of persons or property is subject to the fuel taxes imposed under Section 206.87(1), F.S. The purchaser may obtain a refund of diesel fuel tax paid as follows:

1. The purchaser must file an Application for Refund of Tax Paid (Form DR-26) with the Department within three years after the right to refund has accrued.

2. The purchaser is required to submit original invoices or copies of invoices showing the amount of fuel taxes paid with the application. Form DR-26 must meet the requirements of Sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C.

3. The purchaser is required to pay the sales tax, plus any applicable discretionary sales surtax. The Department will reduce the amount of refund due on tax-paid diesel fuel used for commercial fishing purposes or for use by a vessel engaged in the business of commercial transportation of persons or property by the amount of sales tax and discretionary sales surtax due.

(5) Undyed Diesel Fuel Consumed by Certain Motor Coaches.

(a) Undyed diesel fuel sold in this state that is consumed by the engine of a qualified motor coach, as defined in Section 206.8745(8), F.S., during idle time for the purpose of running climate control systems and maintaining electrical systems is subject to a refund of fuel tax paid.

(b) The purchaser of fuel used for such purpose may obtain a refund of diesel fuel tax paid as follows:

1. The purchaser must file an Application for Refund of Tax Paid on Undyed Diesel Consumed by Motor Coaches During Idle Time in Florida (Form DR-309640, incorporated by reference in Rule 12B-5.150, F.A.C.), prior to April 1 of the year subsequent to each calendar year in which the diesel fuel tax was paid. The purchaser is entitled to file only one application per calendar year.

2. The purchaser is required to submit with the application originals or copies of invoices showing the amount of taxes paid. In lieu of invoices or copies of invoices, the purchaser may submit the Schedule of Fuel Consumed During Idle Time in Florida (Part III of Form DR-309640) and the Schedule of Undyed Diesel Fuel Purchased in Florida for Use in a Motor Coach (Part IV of Form DR-309640).

3. The purchaser is required to pay sales tax, plus any applicable discretionary sales surtax. The Department will reduce the amount of fuel tax refund by the amount of sales tax, plus any applicable discretionary sales surtax, due.

Cross Reference: Rules 12A-1.059 and 12A-1.0641, F.A.C.

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.8745(6), 212.18(2), 213.06(1) FS. Law Implemented 206.41(4), (5), 206.43(5), (6), 206.64, 206.8745, 206.97, 212.0501, 212.08(4), 213.255(2), (3), 215.26 FS. History–New 7-1-96, Amended 11-21-96, 10-27-98, 5-1-06, 1-27-09, 6-1-09, 7-20-11, 1-25-12, 1-17-13, 1-20-14.

Fla. Admin. Code R. 12B-5.140 Dyeing and Marking; Mixing

(1) Marking and Dyeing.

(a) The dyeing and marking of diesel fuel will follow the requirements of 48.4082-1, Treasury Regulations (February 26, 2002, hereby incorporated by reference in this rule), and shall conform to the Environmental Protection Agency’s high sulfur diesel fuel requirements as found in 40 C.F.R. 80.29 (January 18, 2001, hereby incorporated by reference in this rule).

(b) Persons found in violation of the marking requirements will be subject to a penalty of $2,500 for each month such failure occurs, pursuant to Section 206.8741(6), F.S.

(c) Persons found in violation of the dyeing provisions will be subject to the penalty imposed under Section 206.872(11), F.S.

(2) Mixing.

(a) A licensed terminal supplier, importer, or wholesaler that holds title to taxable diesel fuel that has been mixed with dyed diesel fuel in storage may qualify for a refund of any state and local option tax paid on the taxable diesel fuel as follows:

1. The terminal supplier, importer, or wholesaler must contact the Department at (850)617-8585 within “thirty 30 days” of the misfueling incident that caused the mixing of dyed diesel fuel with taxable diesel fuel to obtain a refund authorization number. The terminal supplier, importer, or wholesaler must report the following information:

a. The name of the licensee holding title,

b. The location of the storage,

c. The number of gallons of taxable diesel,

d. The number of gallons of dyed diesel,

e. The resulting total number of gallons of mixed diesel,

f. The date and time of the incidence of mixing,

g. The disposition of all mixed diesel fuel, and

h. The steps taken to bring the mixed fuel to proper dyed fuel specifications.

2. Prior to granting a refund authorization number, the Department will investigate the circumstances of the misfueling incident and the handling of the mixed dyed diesel fuel with taxable diesel fuel.

(b) To obtain a refund of tax paid on diesel fuel, the terminal supplier, importer, or wholesaler holding a refund authorization number must file an Application for Refund (Form DR-26, incorporated by reference in Rule 12-26.008, F.A.C.) with the Department. Form DR-26 must be filed in accordance with the timing provisions of Section 215.26(2), F.S., and must meet the requirements of Section 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C. Form DR-26, Application for Refund, must be filed with the Department within 3 years after the date the tax was paid.

(c)1. The discovery by the Department of dye in any fuel storage facility that is not properly marked for off highway or other exempt use as dyed fuel will be prima facie evidence of a violation of Section 206.8741, F.S., and subject to the penalty imposed under Section 206.8741(6), F.S.

2. Unless the misfueling incident has been previously reported, persons found in violation of the marking provisions will be subject to a penalty of $2,500 per month such failure occurs.

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.8741(1), 213.06(1) FS. Law Implemented 206.8741, 206.8745(3) FS. History–New 7-1-96, Amended 11-21-96, 5-1-06, 1-20-14, 1-1-21.

Fla. Admin. Code R. 12B-5.150 Public Use Forms

(1)(a) The following public use forms and instructions are utilized by the Department and are hereby incorporated by reference in this rule.

(b) Copies of these forms are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2)

DR-156

Florida Fuel or Pollutants Tax Application

(https://flrules.org/Gateway/reference.asp?No=Ref-18774)

01/26

(3)

DR-156R

Renewal Application for Florida Fuel or Pollutants License

(https://flrules.org/Gateway/reference.asp?No=Ref-18775)

01/26

(4)

DR-156T

Florida Temporary Fuel Tax Application

(https://www.flrules.org/Gateway/reference.asp?No=Ref-12322)

01/21

(5)

DR-157

Fuel or Pollutants Tax Surety Bond

(https://flrules.org/Gateway/reference.asp?No=Ref-18776)

01/26

(6)

DR-157A

Assignment of Time Deposit

(https://flrules.org/Gateway/reference.asp?No=Ref-18777)

01/26

(7)

DR-157B

Fuel or Pollutants Tax Cash Bond

(https://flrules.org/Gateway/reference.asp?No=Ref-18778)

01/26

(8)

DR-157W

Bond Worksheet Instructions

(https://flrules.org/Gateway/reference.asp?No=Ref-18779)

01/26

(9)

DR-160

Application for Fuel Tax Refund – Mass Transit System Users

(http://www.flrules.org/Gateway/reference.asp?No=Ref-11388)

01/20

(10)

DR-185

Application for Fuel Tax Refund Permit (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06332)

01/16

(11)

DR-189

Application for Fuel Tax Refund – Municipalities, Counties and School Districts

(http://www.flrules.org/Gateway/reference.asp?No=Ref-11389)

01/20

(12)

DR-190

Application for Fuel Tax Refund – Non-Public Schools

(http://www.flrules.org/Gateway/reference.asp?No=Ref-11390)

01/20

(13)

DR-904

Pollutants Tax Return (R. 01/23)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14829)

01/23

(14)

DR-309631

Terminal Supplier Fuel Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18780)

01/26

(15)

DR-309631N

Instructions for Filing Terminal Supplier Fuel Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18781)

01/26

(16)

DR-309632

Wholesaler/Importer Fuel Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18782)

01/26

(17)

DR-309632N

Instructions for Filing Wholesaler/Importer Fuel Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18783)

01/26

(18)

DR-309633

Mass Transit System Provider Fuel Tax Return (R. 01/13)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-02134)

01/13

(19)

DR-309633N

Instructions for Filing Mass Transit System Provider Fuel Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18784)

01/26

(20)

DR-309634

Local Government User of Diesel Fuel Tax Return (R. 01/14)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-03589)

01/14

(21)

DR-309634N

Instructions for Filing Local Government User of Diesel Fuel Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18785)

01/26

(22)

DR-309635

Blender Fuel Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18786)

01/26

(23)

DR-309635N

Instructions for Filing Blender Fuel Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18787)

01/26

(24)

DR-309636

Terminal Operator Information Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18788)

01/26

(25)

DR-309636N

Instructions for Filing Terminal Operator Information Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18789)

01/26

(26)

DR-309637

Petroleum Carrier Information Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18790)

01/26

(27)

DR-309637N

Instructions for Filing Petroleum Carrier Information Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18791)

01/26

(28)

DR-309638

Exporter Fuel Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18792)

01/26

(29)

DR-309638N

Instructions for Filing Exporter Fuel Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18793)

01/26

(30)

DR-309639

Application for Refund of Tax Paid on Undyed Diesel Used for Off-Road or Other Exempt Purposes (with instructions) (R. 01/13)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-02146)

01/13

(31)

DR-309640

Application for Refund of Tax Paid on Undyed Diesel Consumed by Motor Coaches During Idle Time in Florida (R. 01/13)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-02147)

01/13

(32)

DR-309652

Motor Fuel Taxes XML User Guide for eFile Developers and Transmitters

(http://www.flrules.org/Gateway/reference.asp?No=Ref-10801)

07/19

(33)

DR-309653

Motor Fuel Taxes Comma-Delimited (CSV) and Flat File Specifications-Wholesaler/Importer, Exporter, Blender, and Petroleum Carrier Fuel Tax Returns

(http://flrules.org/Gateway/reference.asp?No=Ref-18794)

01/26

(34)

DR-309654

Motor Fuel Taxes Comma-Delimited (CSV) and Flat File Specifications-Mass Transit System Provider and Local Government User of Diesel Fuel Tax Returns

(http://flrules.org/Gateway/reference.asp?No=Ref-18795)

01/26

(35)

DR-309660

Application for Pollutants Tax Refund

(http://flrules.org/Gateway/reference.asp?No=Ref-11391)

01/20

History

• Rulemaking Authority 206.14(1), 206.485(1), 206.59(1), 213.06(1), 213.755(8) FS. Law Implemented 119.071(5), 206.02, 206.021, 206.022, 206.025, 206.026, 206.027, 206.028, 206.05, 206.055, 206.06, 206.095, 206.11, 206.404, 206.41, 206.416, 206.43, 206.44, 206.485, 206.86, 206.874, 206.8745, 206.90, 206.91, 206.92, 206.9931, 206.9942, 206.9943, 212.0501, 213.255, 213.755 FS. History–New 11-21-96, Amended 10-27-98, 5-1-06, 4-16-07, 1-1-08, 1-27-09, 4-14-09, 6-1-09, 6-1-09(5), 1-11-10, 7-28-10, 1-12-11, 7-20-11, 1-25-12, 1-17-13, 5-9-13, 1-20-14, 1-19-15, 7-28-15, 1-11-16, 1-10-17, 1-17-18, 9-17-18, 1-8-19, 7-8-19, 12-12-19, 4-16-20, 1-1-21, 5-23-22, 1-1-23, 1-1-24, 1-25-26, Technical Change 2-25-26.

Fla. Admin. Code R. 12B-5.181 Alternative Fuel

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.877(7), 206.97, 213.06(1) FS. Law Implemented 206.877, 206.89, 206.91, 212.05(1)(g) FS. History–New 1-12-88, Amended 11-1-93, 10-19-94, 4-3-96, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.200 Retailers of Alternative Fuel

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.877, 213.06(1) FS. Law Implemented 206.485, 206.877, 206.89 FS. History–New 11-21-96, Amended 10-27-98, 5-1-06, 1-25-12, 5-9-13, Repealed 1-20-14.

Fla. Admin. Code R. 12B-5.201 Definitions

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 213.06 FS. Law Implemented 206.9825 FS. History–New 1-12-88, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.203 Imposition and Payment of Tax

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.97, 213.06(1) FS. Law Implemented 206.9825 FS. History–New 1-12-88, Amended 11-1-93, 4-3-96, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.205 Refunds and Allowances

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.97, 213.06(1) FS. Law Implemented 206.9825 FS. History–New 1-12-88, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.207 Bonded Fuel: Exempt from Tax

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 213.06 FS. Law Implemented Chapter 87-99, Laws of Florida. History–New 1-12-88, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.209 Commercial Air Carriers; Registration; Reporting

History

• Rulemaking Authority 206.14(1), 206.59(1), 213.06(1) FS. Law Implemented 206.9825(1), 206.9865 FS. History–New 1-12-88, Amended 12-4-89, 11-1-93, 4-3-96, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.2091 Commercial Air Carriers; Election Pursuant to Section 212.0598

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.97, 213.06(1) FS. Law Implemented 206.9825, 212.0598 FS. History–New 12-18-88, Amended 12-4-89, 11-1-93, 4-3-96, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.211 Public Use Forms

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.625, 206.98, 213.06 FS. Law Implemented 206.9825 FS. History–New 1-12-88, Amended 12-18-88, 11-1-93, Repealed 4-3-96.

Fla. Admin. Code R. 12B-5.300 Aviation Fuel Licensees

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.97, 213.06(1) FS. Law Implemented 206.02, 206.03, 206.05, 206.43, 206.48, 206.485, 206.90, 206.91, 206.9825, 206.9826, 206.9835, 206.9855, 206.9865, 206.9875, 213.37 FS. History–New 11-21-96, Amended 10-27-98, 5-1-06, 1-20-14, 1-11-16, 1-10-17, 1-17-18, 1-1-21, 1-1-21, Repealed 1-25-26.

Fla. Admin. Code R. 12B-5.303 Definitions

History

• Rulemaking Authority 206.14, 206.59, 206.97, 206.9915, 212.6201, 213.06(1) FS. Law Implemented 206.9925 FS. History–New 2-13-90, Amended 8-10-92, 11-1-93, 1-1-96, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.305 Imposition of Tax

History

• Rulemaking Authority 206.14, 206.59, 206.97, 206.9915, 213.06(1) FS. Law Implemented 206.9915, 206.9931, 206.9935 FS. History–New 2-13-90, Amended 8-10-92, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.307 Liability of Tax

History

• Rulemaking Authority 206.14, 206.59, 206.97, 206.9915, 213.06(1) FS. Law Implemented 206.9931, 206.9935 FS. History–New 2-13-90, Amended 8-10-92, Repealed 1-1-96.

Fla. Admin. Code R. 12B-5.309 Registration

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 206.9915, 212.9943, 212.6201, 213.06 FS. Law Implemented 206.9931, 206.9943 FS. History–New 2-13-90, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.311 Sales Documentation

History

• Rulemaking Authority 206.14, 206.59, 206.9915, 213.06 FS. Law Implemented 206.9931 FS. History–New 2-13-90, Repealed 1-1-96.

Fla. Admin. Code R. 12B-5.313 Investigations and Bonding Requirements

History

• Rulemaking Authority 206.14, 206.59, 206.97, 206.9931, 213.06(1) FS. Law Implemented 206.026, 206.028, 206.05(1), 206.9931 FS. History–New 2-13-90, Amended 8-10-92, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.315 Rate of Tax

History

• Rulemaking Authority 206.14, 206.59, 206.97, 206.9915, 213.06(1) FS. Law Implemented 206.9935 FS. History–New 2-13-90, Amended 8-10-92, 1-1-96, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.317 Taxable and Exempt Products

History

• Rulemaking Authority 206.14, 206.59, 206.97, 206.9915, 213.06(1) FS. Law Implemented 206.9925, 206.9941, 206.9942 FS. History–New 2-13-90, Amended 8-10-92, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.319 Reports and Tax Payments; Exemption Certificate

History

• Rulemaking Authority 206.14, 206.59, 206.97, 206.9915, 213.06(1) FS. Law Implemented 206.9931, 213.755 FS. History–New 2-13-90, Amended 8-10-92, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.321 Penalties and Interest

History

• Rulemaking Authority 206.07, 206.14, 206.59, 206.97, 206.9915, 213.06(1) FS. Law Implemented 206.06, 206.11, 206.44, 206.9931 FS. History–New 2-13-90, Amended 8-10-92, 1-1-96, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.323 Tax on Blended Products, Solvents and Other Products

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.97, 206.9915, 213.06(1) FS. Law Implemented 206.9931, 206.9935(2), 206.9942 FS. History–New 2-13-90, Amended 11-1-93, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.325 Refunds and Credits

History

• Rulemaking Authority 206.14, 206.59, 206.9915, 213.06 FS. Law Implemented 206.9942 FS. History–New 2-13-90, Amended 1-1-96, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.327 Record Retention

History

• Rulemaking Authority 206.14, 206.59, 206.9915, 213.06 FS. Law Implemented 206.9915 FS. History–New 2-13-90, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.329 Solid Conversions

History

• Rulemaking Authority 206.14, 206.59, 206.97, 206.9915, 213.06(1) FS. Law Implemented 206.9925, 206.9935 FS. History–New 2-13-90, Amended 8-10-92, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.331 Exports

History

• Rulemaking Authority 206.14, 206.59, 206.9915, 213.06 FS. Law Implemented 206.9941, 206.9942 FS. History–New 2-13-90, Repealed 1-1-96.

Fla. Admin. Code R. 12B-5.333 Public Use Forms

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 206.9915, 212.6201, 213.06(1) FS. Law Implemented 206.9915, 206.9931, 206.9943 FS. History–New 2-13-90, Amended 8-10-92, 11-1-93, Repealed 1-1-96.

Fla. Admin. Code R. 12B-5.375 Temporary Pollutant Importer License Issued Under a Declared Emergency

(1) General Information. When the Governor of Florida has declared a state of emergency pursuant to Section 252.36, F.S., or when the President of the United States has declared a major disaster in Florida, another state, territory of the United States, or the District of Columbia, gasoline, gasohol, and diesel fuel imported into Florida is subject to the Florida pollutant tax. Any person who imports fuels subject to the Florida pollutant tax is required to hold a valid Florida pollutant license issued by the Department.

(2) Licensing.

(a) The Department will grant a temporary pollutant license to import pollutants into Florida when the Governor of Florida has declared a state of emergency pursuant to Section 252.36, F.S., or when the President of the United States has declared a major disaster in Florida, another state, territory of the United States, or the District of Columbia to those persons who are granted a Florida temporary importer or temporary exporter license, as provided in Rule 12B-5.121, F.A.C.

(b) The application submitted to the Department to obtain a Florida temporary fuel license, as provided in Rule 12B-5.121, F.A.C., is sufficient to obtain a Florida temporary pollutant license. No additional application is required.

(c) The effective date of the Florida temporary pollutant license is the same date as the effective date of the temporary importer or temporary exporter license. The effective date of the temporary pollutant license is the date the application for a temporary fuel license is received by the Department or, when the application is not faxed or otherwise submitted electronically to the Department, the postmark date of the application.

(d) Duration of Temporary Pollutant Importer License.

1. A temporary pollutant importer license expires on the last day of the month following the month in which the temporary pollutant importer license is issued. For example, a person is issued a Florida temporary pollutant importer license effective July 15. The temporary importer license and the temporary pollutant importer license expire on August 31, at midnight.

2. A temporary pollutant importer license will be extended automatically when the temporary fuel license is extended. A temporary pollutant importer license will remain in effect for the period a temporary importer or exporter license is effective. No extension of a Florida temporary fuel or pollutant license will be granted to any temporary licensee who has failed to file required returns or to remit the fuels taxes, or the pollutant taxes, due to the Department.

(3) Temporary Pollutant Importers.

(a) The Florida pollutant tax accrues at the time of importation of motor, and diesel fuel into Florida.

(b) Dealers who hold temporary pollutant importer licenses are required to provide the assigned temporary pollutant license number to the licensed carrier that will transport fuel in Florida and record the temporary fuel license number on all shipping documents provided to the carrier.

(c) Holders of temporary pollutant importer licenses are required to pay the Florida pollutant taxes due to the Department when gasoline, gasohol, and diesel fuel is imported into Florida and the Florida pollutant taxes due have not been paid to an out-of-state dealer who holds a valid Florida pollutant license. Tax is due at the pollutant tax rates provided in subsection (5) of Rule 12B-5.400, F.A.C.

(d) When the Florida pollutant tax is paid to an out-of-state dealer who holds a valid Florida pollutant license, no additional Florida pollutant tax is due.

(4) Exempt Sales. Petroleum products bunkered into marine vessels engaged in interstate or foreign commerce by a temporary pollutants importer are exempt from the Water Quality and the Inland Protection pollutant taxes.

(5) Taxable Sales. Temporary pollutants importers are required to pay to the Department the Florida pollutant taxes imposed under Sections 206.9935(1), (2) and (3), F.S., on all taxable sales of fuel to Florida customers for which the Florida pollutant taxes were not collected at the time of purchase.

(6) Returns. A temporary pollutant importer must file a Pollutants Tax Return (Form DR-904, incorporated by reference in Rule 12B-5.150, F.A.C.) on or before the 20th day of the month following the month of sale. If the 20th day falls on a Saturday, Sunday, or legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department on the next succeeding day that is not a Saturday, Sunday, or legal holiday. For the purpose of this rule, a legal holiday means a holiday that is observed by federal or state agencies as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(7) Refunds and Credits. A temporary pollutant importer that is entitled to a refund of pollutant taxes pursuant to Section 206.9942, F.S., is required to file a quarterly Application for Pollutants Tax Refund (Form DR-309660, incorporated by reference in Rule 12B-5.150, F.A.C.), as provided in subsection (7) of Rule 12B-5.400, F.A.C.

PART III TAX ON POLLUTANTS

History

• Rulemaking Authority 206.14(1), 206.59(1) FS. Law Implemented 206.9925, 206.9931(2), 206.9942, 206.9943(4) FS. History–New 6-1-09, Amended 1-25-26.

Fla. Admin. Code R. 12B-5.400 Producers and Importers of Pollutants

(1) General Information. The pollutants tax accrues at the time of first production in or importation into this State on all pollutants other than petroleum products. The tax is imposed upon the person who owns the pollutant when it is imported into this State or the person who produces the pollutant in this State. The tax is imposed when the pollutant is first removed from storage or first sold in this State. The tax is levied under Sections 206.9935(1)(a), 206.9935(2)(a) and 206.9935(3)(a), F.S., for the Tax for Coastal Protection, Tax for Water Quality, and Tax for Inland Protection.

(2) Definitions. The following definitions are for purposes of Part III, Chapter 206, F.S., only:

(a) “Producer” means any person who manufactures, refines, blends, or compounds pollutants; who maintains a storage facility, or imports such products into this State; and who does not hold a valid fuel license.

(b) “Pesticides” means all preparations intended for use as insecticides, rodenticides, nematocides, fungicides, herbicides, amphibian and reptile poisons or repellents, fish poisons or repellents, mammal poisons or repellents, invertebrate animal poisons or repellents, plant regulators, plant defoliants, and plant desiccants. A product shall be deemed to be a pesticide regardless of whether intended for use as packaged or after dilution or mixture with other substances, such as carriers of baits.

(c) “Ammonia” means anhydrous liquid ammonia (NH3).

(d) “Chlorine” means anhydrous liquid chlorine (Cl2).

(e) “Motor oil” is a lubricant commonly known as an engine oil.

(f) “Lubricant” is a liquid with a carbon base used to prevent contact of parts in motion and reduce friction, wear, heat, and corrosion. Lubricants include gear oils and steam-turbine oils, and exclude greases.

(g) “Petrochemical feedstocks” means a chemical compound or element recovered from petroleum or natural gas, or derived in whole or part from petroleum or natural gas hydrocarbons converted by a chemical and/or physical process to materials of greater utility or value.

(h) “Liquid petrochemical” means a compound which is at least 99 percent pure that can be produced in the refinery by rearranging the hydrocarbon molecules that exist in crude oil. A typical liquid petrochemical feedstock can be classified in five specific categories of hydrocarbon where the carbon number would range from four (4) to nine (9), including normal paraffins, isoparaffins, olefins, naphthenes, and aromatics. The major compounds used as petrochemical feedstocks include, but are not limited to the following:

1. Benzene, including dodecylbenzene and ethylbenzene,

2. Butylene, including polyisobutylene and triisobutylene,

3. Cumene,

4. Naphthalene, including amyl naphthalene, or

5. Styrene.

(i) “Storage” means any keeping or retention of pollutants in this state.

(j) “Products intended for application to the human body or for use in human personal hygiene, or human ingestion” means:

1. Products that are intended to be physically applied to the body, such as after shave lotion, perfume, deodorants, skin cleaners, lotions or treatments;

2. Products intended to be used to clean, disinfect, and sanitize the human body or items in close contact with it, such as wearing apparel, linens, contact lenses, dental appliances, medical prostheses, except products which are defined as drycleaning solvents in Section 376.301, F.S.;

3. Products intended to be used to clean, disinfect, and sanitize food contact surfaces or utensils used in the preparation, preservation, storage, or eating of food or beverages;

a. “Food contact surfaces” include surfaces of equipment and utensils with which food normally comes into contact, and those surfaces from which food may drain, drip, or splash back onto surfaces normally in contact with food;

b. “Utensils” include implements such as pots, pans, ladles or food containers used in the preparation, storage, transportation or serving of food;

4. Products that are intended to be swallowed; and,

5. Medical products.

The phrase “products intended for application to the human body or for use in human personal hygiene or for human ingestion” applies only to products which are sold at retail for use in residential households. The phrase is not intended to apply to products marketed specifically for a nonqualifying use, but used for a qualifying purpose, nor to products intended to be used for commercial or industrial purposes.

(k) “Waste oil” means any oil or fuel which has been refined from crude oil or synthetic oil, and as result of use, storage, or handling, has become unsuitable for its original purpose due to the presence of impurities or loss of original properties, but which may be suitable for further use and is economically recyclable.

(3) Licensing and Bonding.

(a) Any person who does not hold a valid motor fuel or diesel fuel tax license issued pursuant to Parts I or II of Chapter 206, F.S., and who produces, imports, or causes pollutants to be imported into this state is required to obtain a pollutants tax license.

(b)1. To obtain an annual license as an importer or producer of taxable pollutants, a person must file a Florida Fuel or Pollutants Tax Application (form DR-156, incorporated by reference in Rule 12B-5.150, F.A.C.) and the required attachments with the Department, as provided in the application.

2. To renew an annual license, an applicant must file a Renewal Application for Florida Fuel/Pollutants License (Form DR-156R, incorporated by reference in Rule 12B-5.150, F.A.C.).

(c) Each terminal supplier, importer, or wholesaler, of pollutants that holds a fuel license must add to its fuel bond an amount to be three times the average monthly pollutants tax paid or due during the preceding twelve calendar months. However, the total amount of the bond must not exceed $300,000.

(d) Each producer or importer of pollutants who does not hold a valid fuel license must file with the Department, a bond in an amount to be three times the average monthly pollutants tax paid or due during the preceding twelve calendar months. The bond shall not exceed $300,000.

(e) No bond is required to obtain a pollutant tax license for the sole purpose of applying for refunds of tax paid on pollutants, as provided in Section 206.9942, F.S.

(4) Exemptions.

(a) Florida Coastal Protection Tax:

1. Liquefied petroleum gas,

2. Medicinal oils,

3. Motor oils and lubricants,

4. Waxes,

5. Solvents, or

6. A product intended for application to the human body or for use in human personal hygiene or for human ingestion.

(b) Tax for Water Quality:

1. Liquefied petroleum gas,

2. Medicinal oils,

3. Waxes,

4. Crude oil,

5. Solvents that are consumed in the manufacture or production of a product that is not a pollutant, or

6. A product intended for application to the human body or for use in human personal hygiene or for human ingestion.

(c) Tax for Inland Protection:

1. Solvents,

2. Liquefied petroleum gas,

3. Medicinal oils,

4. Motor oil and lubricants,

5. Waxes,

6. Grades no. 5 and no. 6 residual oils,

7. Petroleum products bunkered into marine vessels engaged in interstate or foreign commerce by the licensee who first imported said products,

8. Asphalt oil,

9. Petrochemical feedstocks, and all liquid petrochemicals except for, methyl alcohol, ethyl alcohol, and methyl tert-butyl ether.

10. Pesticides, ammonia, and chlorine,

11. Crude oil, or

12. A product intended for application to the human body or for use in human personal hygiene or for human ingestion.

(d) Bonded fuel is not taxable. Bonded fuel becomes subject to the pollutants tax when such fuel is withdrawn from storage for domestic use.

(e) The United States government, its departments, or its agencies which import pollutants into this State are exempt from tax and are not required to file a return with the Department. Pollutants tax licensees who sell pollutants to the United States government, its departments, or its agencies are not exempt from paying the tax due on pollutants.

(5) Taxable Products.

(a) Florida Coastal Protection Tax:

1. Any refined liquid commodity made wholly or partially from oil or gas, or blends; or mixtures of oil with one or more liquid products or byproducts derived from oil or gas, or blends; or mixtures of two or more liquid products or byproducts derived from oil or gas,

2. Motor gasoline,

3. Gasohol,

4. Aviation gasoline,

5. Naphtha-type jet fuel,

6. Kerosene,

7. Distillate fuel oil (diesel fuel),

8. Residual fuel oil,

9. Naphtha of less than 400 degrees Fahrenheit for petroleum feed,

10. Special naphthas,

11. Road oil (pavement treatment),

12. Ammonia, chlorine, and pesticides,

13. Crude oil,

14. Motor and aviation gas blending components (including methyl alcohol, petroleum-derived ethyl alcohol, and MTBE (methyl tertiary butyl ether)),

15. Petroleum based hydraulic fluid (such as transmission and brake fluid),

16. Unfinished oils,

17. Still gas,

18. Asphalt oil, or

19. Waste oil (if imported into this State; however, the act of collecting the waste produced by normal maintenance activities performed in this State, such as pumping the bilge of ships, cleaning storage tanks, and periodic changing of engine oil in vehicles, boats, and planes is not considered producing or importing a taxable pollutant).

(b) Tax for Water Quality:

1. Any refined liquid commodity made wholly or partially from oil or gas, or blends, or mixtures of oil with one or more liquid products or byproducts derived from oil or gas, or blends, or mixtures or two or more liquid products or byproducts derived from oil or gas,

2. Motor oil and lubricants,

3. Solvents,

4. Motor gasoline,

5. Gasohol,

6. Aviation gasoline,

7. Naphtha-type jet fuel,

8. Kerosene-type jet fuel,

9. Kerosene,

10. Distillate fuel oil (diesel fuel),

11. Residual fuel oil,

12. Naphtha of less than 400 degrees F for petroleum feed,

13. Special naphthas (such as certain paint thinners and cleaners),

14. Road oil (pavement treatment),

15. Ammonia, chlorine, and pesticides,

16. Motor and aviation gas blending components (including methyl alcohol, petroleum-derived ethyl alcohol, and MTBE (methyl tertiary butyl ether)),

17. Petroleum based hydraulic fluid (such as brake and transmission fluid),

18. Unfinished oil,

19. Still gas,

20. Asphalt oil, or

21. Waste oil (if imported into this State; however, the act of collecting the waste produced by normal maintenance activities performed in this State, such as pumping the bilge of ships, cleaning storage tanks, and periodic changing of engine oil in vehicles, boats, and planes is not considered producing or importing a taxable pollutant).

(c) Tax for Inland Protection:

1. Any refined liquid commodity made wholly or partially from oil or gas, or blends, or mixtures of oil with one or more liquid products or byproducts derived from oil or gas, or blends, or mixtures of two or more liquid products or byproducts derived from oil or gas,

2. Motor gasoline,

3. Gasohol,

4. Aviation gasoline,

5. Naphtha-type jet fuel,

6. Kerosene,

7. Distillate fuel oil (diesel fuel),

8. Residual fuel oil,

9. Naphtha of less than 400 degrees F for petroleum feed,

10. Special naphthas (such as certain paint thinners and cleaners),

11. Road oil (pavement treatment),

12. Unfinished oils,

13. Still gas,

14. Motor and aviation gas blending components which are used for gas blending (including methyl alcohol, petroleum-derived ethyl alcohol and MTBE (methyl tertiary butyl ether)),

15. Petroleum based hydraulic fluid (such as brake and transmission fluid), or

16. Waste oil (If imported into this state; however, the act of collecting the waste produced by normal maintenance activities performed in this State, such as pumping the bilge of ships, cleaning storage tanks, and periodic changing of engine oil in vehicles, boats, and planes is not considered producing or importing a taxable pollutant).

(d) Rate of Tax:

1. The excise tax is levied by Sections 206.9935(1)(a), 206.9935(2)(a) and 206.9935(3)(a), F.S., for the tax for coastal protection, tax for water quality, and tax for inland protection, respectively.

2. The effective tax rates for each trust fund are:

a. Coastal Protection Tax: 2 cents per barrel of pollutant.

b. Inland Protection Tax: 80 cents per barrel of pollutant.

c. Water Quality Assurance Tax:

Motor Oil and Lubricants-2.5 cents per gallon

Solvents-5.9 cents per gallon

Other Petroleum Products, Pesticides, and Chlorine-5 cents per barrel

Ammonia-2 cents per barrel

3. Solid Conversions. Pesticides are taxable pollutants in liquid and solid form, and ammonia is taxable in liquid form, under the Water Quality Assurance Tax and the Coastal Protection Tax. The taxpayer is to convert solid pesticides, and liquid ammonia, from pounds to gallons using the following equivalent measure: 5.14 pounds of ammonia at 60 degrees Fahrenheit equals one gallon; and 10 pounds of solid pesticides equals one gallon.

(6) Returns.

(a) Any person licensed as a terminal supplier, importer, wholesaler, or blender pursuant to Chapter 206, F.S., and any person licensed as an importer or producer of pollutants is required to file a Pollutants Tax Return (Form DR-904, incorporated by reference in Rule 12B-5.150, F.A.C.) on or before the 20th day of the month following the month of sale or first removal of pollutants from storage. If the 20th day falls on a Saturday, Sunday, or legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For the purpose of this rule, a legal holiday means a holiday which is observed by federal or state agencies as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) When quarterly, semi-annual, or annual reporting is authorized by the Department, pursuant to Section 206.9931(5), F.S., the tax is due on or before the 20th day of the month following the authorized reporting period and becomes delinquent on the 21st day of that month.

(c) Electronic payments must be submitted to the Department, as provided by Chapter 12-24, F.A.C.

(7) Refunds and Credits.

(a)1. Any licensee that is entitled to a refund of pollutant tax pursuant to Section 206.9942, F.S., is required to file with the Department an Application for Pollutants Tax Refund (Form DR-309660, incorporated by reference in Rule 12B-5.150, F.A.C.). The request for refund must be supported by charge tickets, sales slips, invoices, or other tangible evidence of the sale; applicable export schedules, and shipping and delivery documents. Charge tickets, sales slips, invoices, or other tangible evidence of the sale must contain the following information:

a. The name, mailing address, and location address of the purchaser;

b. The type of pollutant and the number of gallons or barrels purchased;

c. The date on which the purchase was made;

d. The price paid for the pollutants;

e. The name and place of business of the seller;

f. The pollutant tax paid per gallon or per barrel; and,

g. The Department of Environmental Protection storage tank facility identification number for the seller, if applicable.

2. In lieu of original sales invoices, the applicant applying for a refund may submit a detailed schedule of individual transactions that includes the information required under subparagraph 1. Original invoices or certified copies of invoices obtained from suppliers must be maintained by the applicant in its records until tax imposed under Chapter 206, F.S., may no longer be determined and assessed under Section 95.091, F.S.

3. Form DR-309660 must be filed for each calendar quarter no later than the last day of the first month following the quarter for which the refund is claimed. The filing date may be extended one additional month from the due date of Form DR-309660 when a written explanation that sets forth reasonable cause for delay in filing the refund application is submitted with the application and the prior quarter’s application for refund was timely submitted to the Department.

4. Amended applications for the prior calendar quarter must be received by the Department by the current calendar quarter’s deadline.

5. No refund will be authorized for a tax refund of less than $5 for a refund period.

(b) Any licensee that produces, imports, or purchases solvents on which the tax has been paid to the State or supplier under the Water Quality Assurance Trust Fund and consumes these solvents in the manufacture or production of a product which is not a pollutant, may request a refund of the tax paid on the solvent under the Water Quality Assurance Trust Fund, as provided in paragraph (a).

(c) Any licensee who has purchased petroleum products on which the tax has been paid to the State or supplier under the Water Quality Assurance Trust Fund and the Tax for Inland Protection Trust Fund, and who subsequently exports said products from the state or bunkers petroleum products into marine vessels engaged in interstate or foreign commerce, may apply for a refund of the tax paid on the petroleum product under the Water Quality Assurance Trust Fund and the Inland Protection Trust Fund, as provided in paragraph (a).

(d) Any licensee who has produced, imported, or purchased pollutants on which the tax has been paid to the State or supplier and who subsequently exports from the state said pollutants or products containing said pollutants may apply for a refund of the tax paid on the pollutant under the Water Quality Assurance Trust Fund, as provided in paragraph (a).

(e) Any person licensed pursuant to Chapter 206, F.S., that is eligible for a refund pursuant to Section 206.9942, F.S., may, in lieu of applying for a refund, take a credit on the monthly Pollutants Tax Return (Form DR-904). The credit may not exceed the tax imposed on those gallons which would otherwise be eligible for refund. Any request for a credit shall be supported by a charge ticket, sales slip, invoice, or other tangible evidence of the sale showing the tax was paid to the State or supplier; applicable export schedules, and shipping and delivery documents.

History

• Rulemaking Authority 206.14(1), 206.59(1), 213.06(1) FS. Law Implemented 206.9915, 206.9925, 206.9931, 206.9935, 206.9941, 206.9942, 206.9943, 213.755 FS. History–New 11-21-96, Amended 10-27-98, 5-1-06, 6-1-09, 1-25-12, 1-17-18, 1-1-21, 1-25-26.

Fla. Admin. Code R. 12B-5.401 County Levy of Ninth-Cent Gas Tax on Motor Fuel and Special Fuel; Collection of Tax

History

• Rulemaking Authority 206.14(1), 206.59(1), 206.97, 213.06(1), 336.021 FS. Law Implemented 336.021 FS. History–New 2-3-80, Amended 10-13-83, Formerly 12B-5.13, Amended 1-12-88, 12-19-89, 11-1-93, 4-3-96, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.403 County Levy of Local Option Gas Tax on Motor Fuel and Special Fuel; Department to Collection of Tax

History

• Rulemaking Authority 120.53(1)(b), 206.14, 206.59, 206.97, 213.06 FS. Law Implemented 336.025 FS. History–New 10-13-83, Formerly 12B-5.14, Amended 1-12-88, 12-19-89, 11-1-93, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.405 Levy of State Comprehensive Enhanced Transportation Systems (SCETS) Tax

PART IV TAX ON NATURAL GAS FUEL

History

• Rulemaking Authority 120.53(1)(b), 206.59, 206.97, 213.06 FS. Law Implemented 336.025 FS. History–New 1-12-88, Amended 11-1-93, Repealed 11-21-96.

Fla. Admin. Code R. 12B-5.500 Natural Gas Fuel Retailers

(1) General Information.

(a) A “natural gas fuel retailer” means any person who sells, produces, or refines natural gas fuel for use in a motor vehicle as defined in Section 206.01(23), F.S.

(b)1. Individuals who use residential refueling devices located at a person’s primary residence are not required to be licensed as a natural gas fuel retailer.

2. Any person who has facilities for placing natural gas fuel into the supply system of an internal combustion engine fueled by individual portable containers of 10 gallons or less is not required to be licensed as a natural gas fuel retailer.

(2) Licensing.

(a) To obtain an annual license as a natural gas fuel retailer, every person required to obtain a license must file form DR-156, Florida Fuel of Pollutants Tax Application (incorporated by reference in Rule 12B-5.150, F.A.C.), and the required attachments, with the Department, as provided in the application.

(b) Each license is required to be renewed annually by filing form DR-156R, Renewal Application for Florida Fuel/Pollutant License (incorporated by reference in Rule 12B-5.150, F.A.C.), and the required attachments with the Department, as provided in the renewal application.

History

• Rulemaking Authority 216.14(1), 213.06(1) FS. Law Implemented 206.9951, 206.9952 FS. History–New 1-20-14, Amended 1-25-26.

Fla. Admin. Code R. 12B-5.600 Tracking System Reporting Requirements

(1) Scope. This rule addresses requirements for the electronic submission of information used by the Department to track the movement of any product defined as a motor or diesel that has been received, disbursed, delivered, imported, exported, or moved in any manner within Florida by a licensed fuel dealer. This rule applies to licensed terminal suppliers, terminal operators, wholesalers, importers, petroleum carriers, exporters, and blenders.

(2) Electronic filing and data format. Returns must be filed electronically in the correct format, include all reportable transactions, and contain accurate information from source records such as bills of lading, delivery tickets, or invoices. The filing method and format for returns are dependent on the type of fuel license issued by the Department.

(a) Terminal suppliers and terminal operators must file returns using Extensible Markup Language (XML), as provided in the Motor Fuel Taxes XML User Guide for eFile Developers and Transmitters, (form DR-309652, incorporated by reference in Rule 12B-5.150, F.A.C.). Instructions for how to electronically file returns can be found in the following forms, incorporated by reference in Rule 12B-5.150, F.A.C.:

1. Form DR-309631N - Instructions for Filing Terminal Supplier Fuel Tax Return

2. Form DR-309636N - Instructions for Filing Terminal Operator Information Return

(b) Wholesalers, importers, petroleum carriers, exporters, and blenders must file returns through the Department’s eServices website by manually entering data or importing comma-delimited (CSV) or fixed-length text (flat) files as provided in the Motor Fuel Taxes Comma-Delimited (CSV) and Flat File Specifications – Wholesaler/Importer, Exporter, Blender, and Petroleum Carrier (form DR-309653, incorporated by reference in Rule 12B-5.150, F.A.C.). Instructions for how to electronically file returns can be found in the following forms, incorporated by reference in Rule 12B-5.150:

1. Form DR-309632N - Instructions for Filing Wholesaler/Importer Fuel Tax Return

2. Form DR-309635N - Instructions for Filing Blender Fuel Tax Return

3. Form DR-309637N - Instructions for Filing Petroleum Carrier Information Return

4. Form DR-309638N - Instructions for Filing Exporter Fuel Tax Return

(3) Data elements required on fuel tax returns

(a) Fuel tax returns filed with the Department must be complete and include all information within a data element. This information is provided on a schedule and is used to validate the correct amount of taxes are collected and distributed to the appropriate jurisdiction.

(b) The data elements on fuel tax return schedules must be correct and adhere to the submission requirements provided in the filing instructions for each type of fuel tax return. The information required within each data element may be found on a bill of lading, invoice, or delivery ticket.

(c) The following is a list of data elements that are included on a fuel tax return.

1. Federal employer identification number (FEIN) of the carrier transporting the product

2. FEIN of the person hiring the carrier

3. Mode of transportation

4. Point of origin or destination of the fuel

5. Delivered to address

6. Purchaser/seller/terminal supplier FEIN

7. Date shipped, received, or delivered

8. Document number

9. Net gallons

(4) Penalties for failure to meet submission requirements.

(a) Any person who fails to file electronically, fails to file a return in the proper format or who submits erroneous information within a data element will be notified by the Department in writing. Erroneous information may be identified using statistical sampling, nonstatistical sampling, or by a detailed audit.

1. Written notification for invalid federal employer identification numbers (FEINs), modes of transportation, points of origin, or points of destination will include a detailed description of the error and a separate listing of the information within each data element that was incorrect.

2. Written notification for invalid document numbers, dates, or net gallons will include an explanation of why the data is not correct and include examples.

3. The written notification for omitted transactions will include a generic statement that certain transactions were not included on the Florida tax return. A list of the missing transactions or a copy of the inventory reconciliation calculation, identifying gains or losses over tolerance, will be attached to the written notification.

(b) Each person will have three months from the date of notification to correct identified errors. After the three-month period ends, a penalty of $5,000 will be imposed each month the identified errors remain uncorrected.

History

• Rulemaking Authority 206.485(1), 213.06(1) FS. Law Implemented 206.08, 206.09, 206.095, 206.48, 206.485 FS. History–New 5-23-22, Amended 1-25-26.

Chapter 12B-6 GROSS RECEIPTS TAX

Fla. Admin. Code R. 12B-6.001 Scope; Definitions; Index Price

(1) SCOPE. This rule chapter applies to the tax imposed by Section 203.01(1)(a)1., F.S., on utility services delivered to a retail consumer in Florida.

(2) DEFINITIONS. For purposes of this rule chapter:

(a) “Cost price” means the actual cost of articles of tangible personal property without any deductions therefrom on account of the cost of materials used, labor or service costs, transportation charges, or any expenses whatsoever.

(b) “Distribution company” means any person owning or operating local electric, or natural or manufactured gas utility, distribution facilities within this state for the transmission, delivery, and sale of electricity or natural or manufactured gas. The term does not include natural gas transmission companies that are subject to the jurisdiction of the Federal Energy Regulatory Commission.

(c) “Electricity index price” means the applicable residential, industrial, or commercial price per kilowatt hour for retail consumers in Florida in the previous calendar year, as published in the United States Energy Information Administration Electric Power Monthly.

(d) “Gas index price” means the applicable residential, industrial, or commercial price per 1,000 cubic feet for retail consumers in Florida in the previous calendar year, as published in the United States Energy Information Administration Natural Gas Monthly.

(e) “Gross receipts” means the total payments received in money, goods, services, or other consideration from utility services.

(f) “Person” includes any individual, firm, copartnership, joint adventure, association, corporation, estate, trust, business trust, receiver, syndicate, or other group or combination acting as a unit and also includes any political subdivision, municipality, state agency, bureau, or department and includes the plural as well as the singular number.

(g) “Utility services” means electricity for light, heat, or power; and natural or manufactured gas for light, heat, or power, including transportation, delivery, transmission, and distribution of the electricity or natural or manufactured gas. This paragraph does not broaden the definition of utility service to include separately stated charges for tangible personal property or services which are not charges for the electricity or natural or manufactured gas or the transportation, delivery, transmission, or distribution of electricity or natural or manufactured gas. Liquefied petroleum gas is sold in liquid form and transformed into gas when released from the container to be used for fuel. The term “utility services” does not include liquefied petroleum gas.

(3) INDEX PRICE. The calculation of the tax imposed on certain utility services delivered to a retail consumer in Florida is based on an index price.

(a) The Department will announce the residential, commercial, and industrial index prices for electricity and for natural and manufactured gas on June 1 of each year through issuance of a Taxpayer Information Publication and by posting the rates on the Department’s website at floridarevenue.com/taxes/rates. The index prices announced by the Department on June 1 will be effective from the following July 1 through June 30, and will apply to any bill dated on or after July 1 in the year in which the change becomes effective.

(b) The electricity index prices only apply if the transportation of electricity is sold independent of the sale of the electricity itself. If electricity is sold to a retail consumer in Florida for a price that includes both a charge for the electricity and a charge for the transportation of the electricity, the tax imposed by Section 203.01(1)(a)1., F.S., is calculated by using the distribution company’s gross receipts multiplied by 2.5 percent, rather than through use of an index price.

(c) When the calculation of the tax imposed on utility services delivered to a retail consumer in Florida requires the use of an index price, the distribution company must use a reasonable methodology to apply the residential, commercial, and industrial classifications to their existing rate structure.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 203.01, 203.012 FS. History–New 11-13-78, Amended 6-5-85, Formerly 12B-6.01, Amended 10-4-89, 1-8-90, 5-4-03, 9-18-08, 2-17-15, 12-29-25.

Fla. Admin. Code R. 12B-6.0015 Imposition of the Gross Receipts Tax

(1) NATURAL OR MANUFACTURED GAS.

(a) A tax is imposed at the rate of 2.5 percent on distribution companies’ gross receipts from the privilege of selling or transporting natural or manufactured gas to a retail consumer in this state. The gross receipts tax on the sale or transportation of natural or manufactured gas is calculated as follows: (number of cubic feet of gas sold or transported) ÷ 1,000 × (the applicable gas index price) × (2.5 percent).

(b) The tax imposed in paragraph (1)(a) does not apply to:

1. Subject to the documentation requirements outlined in subsection (5), the sale or transportation of natural or manufactured gas to a public or private utility, including a municipal corporation or agency thereof, or rural electric cooperative association for resale.

2. The sale or transportation of natural or manufactured gas to a public or private utility, including a municipal corporation, or agency thereof, or rural electric cooperative association for use as a fuel in the generation of electricity. Distribution companies may document this exclusion from tax by obtaining a certification from public or private utilities that purchase transportation of natural or manufactured gas for use as a fuel in the generation of electricity. The following is a suggested format of a certification to be issued by a public or private utility to a natural or manufactured gas distribution company:

CERTIFICATION

NATURAL OR MANUFACTURED GAS PURCHASED

FOR USE AS FUEL TO GENERATE ELECTRICITY

This is to certify that I have purchased natural or manufactured gas for use as a fuel in the generation of electricity.

I understand that if such purchases of natural or manufactured gas do not qualify for the exclusion as indicated on this certification, I must pay the applicable tax directly to the Department of Revenue.

Under penalties of perjury, I declare that I have read the foregoing certificate and the facts stated herein are true.

---

Purchaser’s Name (Print or Type) Date

---

Signature of Authorized Person Title

---

Federal Employer Identification Number (FEI No.)

3.a. The sale or transportation to, or use of, natural or manufactured gas by any person eligible for an exemption under Section 212.08(7)(ff)2., F.S., for use as an energy source or a raw material. Possession by a seller of natural or manufactured gas or by any person providing transportation or delivery of natural or manufactured gas of a written certification by the purchaser, certifying the purchaser’s entitlement to the exclusion permitted by this subparagraph, relieves the seller or person providing transportation or delivery from the responsibility of remitting tax on the nontaxable amounts. The Department shall look solely to the purchaser for recovery of such tax if the Department determines that the purchaser was not entitled to the exclusion. The certification must include an acknowledgment by the purchaser that it will be liable for tax pursuant to Section 203.01(1)(f), F.S., if the requirements for exclusion are not met. The following is a suggested format of a certification to be issued by a manufacturer to a natural or manufactured gas distribution company:

CERTIFICATION

NATURAL OR MANUFACTURED GAS PURCHASED BY A PERSON ELIGIBLE FOR EXEMPTION UNDER INDUSTRIAL CLASSIFICATIONS IN SECTION 212.08(7)(ff)2., F.S.

This is to certify that I have purchased natural or manufactured gas for use as an energy source or raw material that is excluded from tax pursuant to Section 203.01(3)(d), F.S.

I certify that the applicable purchases were made by a company whose four-digit SIC Industry Number, as listed below, is classified under SIC Industry Major Group Number 10, 12 through 14, 20 or 22 through 39 or Group Number 212 in the Standard Industrial Classification (SIC) Manual, 1987, published by the Office of Management and Budget.

I acknowledge that I will be liable for tax pursuant to Section 203.01(1)(f), F.S., if the requirements for exclusion pursuant to Section 203.01(3)(d), F.S., are not satisfied.

I understand that if such purchases of natural or manufactured gas do not qualify for the exclusion as indicated on this certification, I must pay the applicable tax directly to the Department of Revenue.

Under penalties of perjury, I declare that I have read the foregoing certificate and the facts stated herein are true.

---

Purchaser’s Name (Print or Type) Date

---

Signature of Authorized Person Title

---

Federal Employer Identification Number (FEI No.)

b. The Standard Industrial Classification (SIC) Manual, 1987, published by the Office of Management and Budget, is provided by the U.S. Department of Labor at www.osha.gov.

(2) ELECTRICITY.

(a) A tax is imposed at the rate of 2.5 percent on a distribution company’s gross receipts from the privilege of selling electricity that is delivered to a retail consumer in this state when the charge to the consumer includes charges for both the electricity and the transportation of the electricity. Tax imposed pursuant to this paragraph is calculated by multiplying the distribution company’s gross receipts by 2.5 percent.

1. The tax imposed in paragraph (2)(a) does not apply to:

a. Receipts from customers for separately itemized charges for the connection, disconnection, suspension, or restoration of electricity;

b. Receipts from customers for separately itemized charges for returned checks or other forms of payment, late payments, or interest due on late payments; or

c. Receipts from customers for separately itemized charges for the sale, lease, rental, repair, or maintenance of customer premises equipment.

2.a. When charges for utility services are separately itemized as an amount for services based on a standard rate amount with a separate rate adjustment on the same billing, invoice, statement, or other evidence of sale for services, gross receipts tax is due on the receipts for utility services after the application of the rate adjustment.

b. Example: A customer purchases electricity from an electric utility under an energy management program. The customer is billed the standard residential rate. In addition, the customer receives load management monthly credits for allowing specified electrical equipment to be interrupted at the option of the electric utility. The charge for electric service after the load management credits are applied against the charge at the standard residential rate is the amount subject to the gross receipts tax.

c. Example: A customer purchases electricity from an electric utility at the standard residential service rate. The electric utility charges each residential customer in this rate class an additional energy cost recovery factor, called “energy charges,” on a per kilowatt hour basis. The customer is billed for electricity at the standard residential rate, plus the applicable energy charges. The amount charged to the customer at the standard residential rate, plus the amount of the energy charges, is the amount subject to the gross receipts tax.

3. Each and every fee imposed by a political subdivision of the State of Florida on the distribution company, such as a franchise fee, is included in the charge upon which the gross receipts tax is computed, when the fees are passed on to the customer and separately itemized on a customer’s bill, invoice, statement, or other evidence of sale.

4. Any municipal public service tax imposed under Section 166.231 or 166.232, F.S., or any sales tax imposed under Chapter 212, F.S., on the sale or purchase of electric power or energy is not included in the charge upon which the gross receipts tax is computed when the municipal tax or sales tax is separately itemized on a customer’s bill, invoice, statement, or other evidence of sale.

(b) Each distribution company that receives payment for the delivery of electricity to a retail consumer in this state is subject to tax on the exercise of this privilege as provided by this paragraph, unless the payment is subject to tax under paragraph (a). Under this paragraph, the gross receipts tax on the delivery of electricity is calculated as follows: (number of kilowatt hours delivered) × (the applicable electricity index price) × (2.5 percent).

(c) The tax imposed in paragraphs (2)(a) and (b) does not apply to:

1. The sale or delivery of electricity to a public or private utility, including a municipal corporation or agency thereof, or rural electric cooperative association, for resale subject to the documentation requirements outlined in subsection (5);

2. The sale or delivery of electricity to a public or private utility, including a municipal corporation or agency thereof, or rural electric cooperative association, as part of an electric interchange agreement or contract between such utilities for the purpose of transferring more economically generated power.

a. The electric utility is required to maintain a copy of the agreement or contract in its books and records and is not required to meet the provisions of this rule regarding sales for resale.

b. The internal use, including interdepartmental transfers, of the purchased power is not subject to tax.

3. Wholesale sales of electric transmission service.

4. The loss of electricity resulting from the generation, transmission, or distribution of electricity, including line losses, generation losses, and any other losses for which charges are not made to the electric utility’s customers.

(3) SEPARATELY ITEMIZED CHARGES.

(a) A distribution company may wholly or partially separately itemize the gross receipts tax on the customer’s bill, invoice, statement, or other evidence of sale. However, the gross receipts tax is imposed on the privilege of doing business, and it is an item of cost to the distribution company. The distribution company remains fully and completely liable for the payment of the tax, even when the tax is wholly or partially separately itemized on the customer’s bill, invoice, statement, or other evidence of sale. When the tax is wholly or partially separately itemized, every person, including governmental units and charitable and religious organizations, is liable for the payment of the tax to the distribution company.

(b) Example: A distribution company bills its customer for both the electricity and the transportation of the electricity. Tax is imposed at the rate of 2.5 percent of the distribution company’s gross receipts for utility services. When the distribution company separately itemizes “Florida gross receipts tax” on a customer’s billing, the amount of gross receipts tax is calculated at the rate of 2.5 percent of the total amount billed for the electric services, including the amount separately itemized as “Florida gross receipts tax.”

Customer Billing:

Electric service amount

$100.00

Florida gross receipts tax

$ 2.56*

Total amount of billing

$102.56

• Calculation of separately itemized “Florida gross receipts tax”:

Total amount of billing

$102.56

x Gross Receipts Tax Rate

2.5%

Total tax to be separately itemized

$ 2.56

(4) USE TAX.

(a) Gross receipts tax is levied upon a person’s cost price of electricity, or natural or manufactured gas, imported into this state or severed within this state for the person’s own use or consumption as a substitute for purchasing utility, transportation, or delivery services taxable under Chapter 203, F.S., and who cannot demonstrate payment of the tax imposed by Section 203.01(1)(a)1., F.S. The tax implemented pursuant to this paragraph is calculated by multiplying the cost price of the utility service by 2.5 percent.

(b) The tax implemented pursuant to paragraph (4)(a) does not apply to:

1. The use of natural gas in the production of oil or gas, or the use of natural or manufactured gas by a person transporting natural or manufactured gas, when used and consumed in providing such services;

2. The use of natural gas or manufactured gas by a person eligible for an exemption under Section 212.08(7)(ff)2., F.S., for use as an energy source or a raw material;

3. The use of natural gas or manufactured gas by a public or private utility as fuel in the generation of electricity; or

4. The loss of electricity resulting from the generation, transmission, or distribution of electricity, including line losses, generation losses, and any other losses for which charges are not made to the electric utility’s customers.

(5) SALES FOR RESALE.

(a) The sale, transportation, or delivery of utility services for resale is only exempt from the tax imposed under subparagraph 203.01(1)(a)1., F.S., if the sale, transportation, or delivery is documented in strict compliance with this rule. Distribution companies must document sales for resale by obtaining resale certificates from customers who purchase transportation, delivery, or utility services for the purposes of resale. Resale certificates submitted during the protest period will be accepted by the Department as valid proof and documentation of the resale, but will not be accepted when submitted in any proceeding under Chapter 120, F.S., or any circuit court action instituted under Chapter 72, F.S.

(b) The distribution company is only required to obtain one certificate for sales made for the purposes of resale from each customer making purchases for the purposes of resale. The certificate must contain the purchaser’s name and address, the purchaser’s gross receipts tax registration number and its effective date, a statement that the purchases are for the purpose of resale, the signature of the purchaser or an authorized representative of the purchaser, and the date of issuance. The following is a suggested format of a resale certificate:

RESALE CERTIFICATE FOR GROSS RECEIPTS TAX ON UTILITY SERVICES

This is to certify that the electricity for light, heat, or power or the natural or manufactured gas for light, heat, or power purchased after _____ (date) from _____________________ (seller’s name) is purchased for the purpose of resale.

I understand that if I fraudulently issue this certificate to evade the payment of gross receipts tax I will be liable for payment of the tax directly to the Department and subject to the penalties imposed under Section 203.03(2), F.S.

I understand that I must disclose to the seller, or remit tax on, any purchase not for resale when tax was not paid to the seller and/or distribution company.

Under penalties of perjury, I declare that I have read the foregoing certificate and the facts stated herein are true.

Purchaser’s Name __________________________________________________________________________________________

Purchaser’s Address_________________________________________________________________________________________

Name and Title of Purchaser’s Authorized Signature

---

Certificate of Registration Number ____________________________________________________________________________

Effective Date of Registration_________________________________________________________________________________

By ____________________________________________________________________________________ (authorized signature)

Date __________

(6) RECORDKEEPING REQUIREMENTS. Distribution companies that sell, transport, or deliver utility services to retail consumers in Florida and taxpayers that import utility services into Florida for their own use must maintain electrical interchange agreements or contracts, resale certificates, exemption certificates, and other documentation required under the provisions of this rule chapter in their books and records until tax imposed under Section 203.01(1)(a)1., F.S., may no longer be determined and assessed under Section 95.091, F.S. Electronic storage of required documentation through the use of imaging, microfiche, or other electric storage media will satisfy compliance with recordkeeping requirements.

History

• Rulemaking Authority 203.01(1)(f), (3)(a)2., 213.06(1) F.S. Law Implemented 203.01, 213.35, 213.37 FS. History–New 9-18-08, Amended 2-17-15.

Fla. Admin. Code R. 12B-6.002 Administration

History

• Rulemaking Authority 203.02, 213.06(1) F.S. Law Implemented 203.05 FS. History–New 11-13-78, Formerly 12B-6.02, Repealed 5-4-03.

Fla. Admin. Code R. 12B-6.0021 Registration

(1) Prior to engaging in the business of selling, transporting, delivering, or importing utility services, every person, distribution company, or other entity upon which the gross receipts tax is imposed is required to register with the Department.

(2) Registration with the Department for gross receipts tax purposes is available by using one of the following methods:

(a) Registering through the Department’s “eServices” system located on the Department’s website at floridarevenue.com/taxes/registration, or

(b) Filing a Florida Business Tax Application (Form DR-1, incorporated by reference in Rule 12A-1.097, F.A.C.), with the Department as indicated on the form.

History

• Rulemaking Authority 203.01(1)(f), 213.06(1) FS. Law Implemented 203.01 FS. History–New 6-5-85, Formerly 12B-6.021, Amended 5-4-03, 9-18-08.

Fla. Admin. Code R. 12B-6.003 Rate of Tax

History

• Rulemaking Authority 213.06(1) F.S. Law Implemented 203.01 FS. History–New 11-13-78, Formerly 12B-6.03, Amended 10-4-89, Repealed 5-4-03.

Fla. Admin. Code R. 12B-6.004 Exemptions

History

• Rulemaking Authority 203.01, 213.06(1) F.S. Law Implemented 203.01, 203.012, 203.013 FS. History–New 11-13-78, Amended 6-5-85, Formerly 12B-6.04, Repealed 5-4-03.

Fla. Admin. Code R. 12B-6.005 Payment of Tax; Reports; Public Use Forms

(1)(a) Except as provided in rule Chapter 12-24, F.A.C., and paragraph (c) below, all taxes imposed by Section 203.01(1)(a)1., F.S., on utility services are due to the Department on or before the 20th day of the month following the date of the sale or transaction. The payment and return must either reach the office of the Department or be postmarked on or before the 20th day of the month for receipts for utility services received in the preceding calendar month for a taxpayer to avoid penalty and interest for late filing. When the 20th day of the month falls on Saturday, a Sunday, or a legal holiday, payments accompanied by returns will be accepted as timely filed if postmarked or delivered to the Department on the next succeeding day that is not a Saturday, a Sunday, or a legal holiday. A tax return is required to be filed on or before the 20th day of each month even when no tax is due. The report is required to be signed by an officer or a representative duly authorized to act by the taxpayer. For this purpose, a legal holiday means a holiday that is observed by federal or state agencies as a legal holiday as this term is defined in Chapter 683, F.S., and s. 7503 of the 1986 Internal Revenue Code, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) Form DR-133, Gross Receipts Tax Return (January 2023, hereby incorporated by reference, effective 01/23) (http://www.flrules.org/Gateway/reference.asp?No=Ref-14830), is the return to be used to report the gross receipts tax imposed on utility services. Copies of this form are available, without cost, by: 1) downloading selected forms from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, (800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(c) When quarterly, semiannual, or annual reporting is authorized by the Department pursuant to Section 203.01(1)(j), F.S., the tax is due on or before the 20th day of the month following the authorized reporting period and becomes delinquent on the next succeeding day that is not a Saturday, a Sunday, or a legal holiday.

(d) Payments and returns for reporting tax must be submitted to the Department, as provided in Rule Chapter 12-24, F.A.C., when:

1. Payment of the tax is required to be made by electronic means;

2. Any return for reporting tax is required to be submitted by electronic means; or

3. No tax is due with a return for reporting tax.

(e)1. For taxes levied pursuant to paragraph (2)(a) of Rule 12B-6.0015, F.A.C., the taxpayer may elect to pay the gross receipts tax on total billings for electricity for each month or on the actual gross receipts for electricity received in that month.

2. When the taxpayer elects to pay gross receipts tax on total billings for electricity, the taxpayer may take a credit for net uncollectibles for which gross receipts tax has been previously paid to the Department. The credit must be reported on the provider’s return in accordance with the timing provisions of Section 215.26(2), F.S.

3. Instead of taking a credit for net uncollectibles, the taxpayer may seek a refund of tax previously paid by filing an Application for Refund (Form DR-26, incorporated by reference in Rule 12-26.008, F.A.C.) with the Department. The application for refund must be filed in accordance with the timing provisions of Section 215.26(2), F.S., and must meet the requirements of Section 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C.

4. Form DR-26, Application for Refund, must be filed with the Department within 3 years after the date the tax was paid. Credits for tax paid must be reported on the taxpayer’s return within 3 years after the date the tax was paid.

(2) Persons who engage in the transportation of natural or manufactured gas must provide the Department with a list of customers to whom transportation services were provided in the prior year. A person may satisfy the customer-reporting requirement by: 1) providing a written list of customers to the Department; or 2) maintaining a publicly-accessible customer list on the person’s website. The person must provide the written list of customers or the Internet address of the publicly-accessible website by January 31 of each year to GTA Miscellaneous Tax Coordinator ‒ Communications Services and Gross Receipts Taxes, Florida Department of Revenue, Mail Stop 1-1400, 5050 W. Tennessee Street, Tallahassee, Florida 32399-0100. Persons who choose to satisfy the customer-reporting requirement by posting a list of customers on a publicly-accessible website must update the list by January 31 of each year. This reporting requirement does not apply to distribution companies. Any person required to furnish such a list may elect to identify only those customers who take direct delivery without purchasing interconnection services from a distribution company.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 203.01, 213.37, 213.755, 215.26 FS. History–New 11-13-78, Amended 7-1-80, 8-26-81, Formerly 12B-6.05, Amended 10-4-89, 12-19-89, 5-4-03, 9-28-04, 9-18-08, 2-17-15, 1-11-16, 1-10-17, 1-1-23, 12-29-25.

Fla. Admin. Code R. 12B-6.0051 Public Service Tax Reporting Form

(1)(a) The public-use form provided in this rule is to be utilized by each municipality or charter county to report to the Department services taxed under Sections 166.231 and 166.232, F.S., and to report any other required information. The public-use form is employed by the Department for this purpose, and it is hereby incorporated in this rule by reference.

(b) Copies of this form are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) riting the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2) DR-700001

Municipal Public Service Tax Database Report (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06334)

01/16

History

• Rulemaking Authority 166.233(2)(a), 213.06(1) FS. Law Implemented 166.233 FS. History–New 4-5-98, Amended 5-4-03, 9-18-08, 1-11-16, 12-29-25.

Fla. Admin. Code R. 12B-6.006 Collection and Distribution

History

• Rulemaking Authority 213.06(1) F.S. Law Implemented 203.01 FS. History–New 11-13-78, Formerly 12B-6.06, Amended 10-4-89, Repealed 5-4-03.

Fla. Admin. Code R. 12B-6.007 Assessment and Collection

History

• Rulemaking Authority 213.06(1) F.S. Law Implemented 203.01 FS. History–New 11-13-78, Formerly 12B-6.07, Repealed 5-4-03.

Fla. Admin. Code R. 12B-6.008 Interest

Interest shall accrue at the rate of interest established pursuant to Section 213.235, F.S., and Rule 12-3.0015, F.A.C. (prorated daily), not to exceed one percent per month. Interest accrues from the date of the delinquency until paid.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.235 FS. History–New 11-13-78, Amended 6-5-85, Formerly 12B-6.08, Amended 10-4-89, 4-2-00, 5-4-03, 9-18-08.

Chapter 12B-7 SEVERANCE TAXES, FEES, AND SURCHARGES

Fla. Admin. Code R. 12B-7.001 Imposition of Tax

History

• Rulemaking Authority 211.125(1), 213.06(1) FS. Law Implemented 211.02, 211.025, 211.026 FS. History–New 12-28-78, Formerly 12B-7.01, Amended 12-18-94, Repealed 9-30-99.

Fla. Admin. Code R. 12B-7.002 Administration

History

• Rulemaking Authority 211.125(1), 213.06(1) FS. Law Implemented 211.07, 211.125 FS. History–New 12-28-78, Formerly 12B-7.02, Amended 12-18-94, Repealed 9-30-99.

Fla. Admin. Code R. 12B-7.003 Definitions

History

• Rulemaking Authority 211.125(1), 213.06(1) FS. Law Implemented 211.01, 211.125 FS. History–New 12-28-78, Formerly 12B-7.03, Amended 12-18-94, Repealed 5-9-13.

Fla. Admin. Code R. 12B-7.004 Rate of Tax; Oil, Gas and Sulfur

(1) Oil.

(a) The amount of tax is measured by the value of oil produced and saved. The rate for oil shall be 8 percent of the gross value thereof at the point of production.

(b) All wells capable of producing less than 100 barrels of oil per day is taxed at the rate of 5 percent of the gross value at the point of production.

(c) Oil produced by tertiary methods and mature field recovery oil is taxed at the following tiered rates on the gross value at the point of production:

1. 1 percent of the gross value of oil $60 and below;

2. 7 percent of the gross value of oil above $60 and below $80;

3. 9 percent of the gross value of oil $80 and above.

4. Example: 200 barrels of oil were produced that had a value of $90 per barrel at the time of production. Tax is calculated as follows:

First Tier:

200 barrels x $60 x 1%

=

$120

Second Tier:

200 barrels x $19.99 x 7%

=

$279.86

Third Tier:

200 barrels x $10.01 x 9%

=

$180.18

Total Tax Due:

$580.04

(d) Escaped Oil. When a regular monthly report required from a taxpayer does not disclose the actual source of any taxable oil, but does show such oil to have escaped from a well or wells and to have been recovered from streams, lakes, ravines, or other natural depressions, the tax rate is 12 1/2 percent of the gross value of such escaped oil and is in addition to the tax imposed upon oil production.

(2) Gas. The amount of tax is measured by the volume of the gas produced and sold, or used. The rate for gas for each state fiscal year (July through June) is the gas tax rate established by the Department pursuant to Section 211.025, F.S.

(3) Sulfur. The amount of tax shall be measured by the volume of the sulfur produced and sold, or used. The rate for sulfur for each state fiscal year (July through June) is the sulfur tax rate established by the Department pursuant to Section 211.026, F.S.

History

• Rulemaking Authority 211.125(1), 213.06(1) FS. Law Implemented 211.02, 211.025, 211.026, 211.04 FS. History–New 12-28-78, Formerly 12B-7.04, Amended 12-18-94, 1-11-10, 5-9-13.

Fla. Admin. Code R. 12B-7.005 Computation of Tax

The tax is levied upon the basis of the entire production in Florida, including royalty interest, and the tax accrues at the time of severance from the soil or water, and in its natural, unrefined, or unmanufactured condition.

(1) For oil measurement, the tax shall be measured or determined by tank tables compiled to show 100 percent of the full capacity of tanks without deduction for overage or losses in handling. Allowance for any reasonable and bona fide deduction for basis sediment and water, and for correction of temperature to 60 degrees Fahrenheit will be allowed. If the amount of oil produced has been measured or determined by tank tables compiled to show less than 100 percent of the full capacity of tanks, then such amount shall be raised to a basis of 100 percent of the purpose of the tax imposed by this chapter.

(2) For gas measurement, the tax shall be measured or determined by meter readings showing 100 percent of the full volume expressed in cubic feet multiplied by the tax rate for the period in which the gas was produced.

(3)(a) For the sulfur measurement, the tax is determined based on the long tons of sulfur produced multiplied by the tax rate for the period in which the sulfur is produced.

(b) The Producer Price Index for Commodity Code 061, Industrial Chemicals, is applied for calculating the tax rate for sulfur. The base rate adjustment is calculated using the monthly average for such index for the calendar year 1989.

History

• Rulemaking Authority 211.026(3)(e), 211.125(1), 213.06(1) FS. Law Implemented 211.02 211.025, 211.026 FS. History–New 12-28-78, Formerly 12B-7.05, Amended 12-18-94, 12-29-25.

Fla. Admin. Code R. 12B-7.006 Exemptions and Credits

(1) Tax Paid to United States. The value of any oil production shall not include any wellhead or other production taxes imposed by the United States on producers to the extent such tax or taxes do not provide a credit or deduction for the taxes imposed by this state.

(2) Transportation Charges. The actual freight charge prepaid by taxpayer or included in the invoice price on such products to the place of delivery shall be deducted from gross proceeds of sales used in determining the amount of tax.

(3) Lease Operations. Oil and gas used for lease operations on the lease where produced are not taxable.

(4) Where gas is returned to a horizon or horizons in the field where produced either through wells on the lease from which produced or on other leases, that portion of the gas so returned shall not be considered in arriving at the volume of the gas produced that is subject to tax.

(5) Gas vented or flared directly into the atmosphere that is not sold is not subject to tax.

(6) Tax Credits. See rule Chapter 12-29, F.A.C., for provisions on credits against the tax on oil production in Florida imposed under Section 211.02, F.S., or on gas production in Florida imposed under Section 211.025, F.S.

History

• Rulemaking Authority 211.125(1), 213.06(1) FS. Law Implemented 211.02, 211.025, 211.027 FS. History–New 12-28-78, Formerly 12B-7.06, Amended 12-18-94, 1-12-11.

Fla. Admin. Code R. 12B-7.007 Liability for Tax

History

• Rulemaking Authority 211.125(1), 213.06(1) FS. Law Implemented 211.09 FS. History–New 12-28-78, Formerly 12B-7.07, Amended 12-18-94, Repealed 9-30-99.

Fla. Admin. Code R. 12B-7.008 Public Use Forms

(1)(a) The following forms and instructions are used by the Department in its administration of the taxes imposed on the production of oil, gas, and sulfur. These forms are hereby incorporated by reference in this rule.

(b) Copies of these forms are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2)

DR-144

Gas and Sulfur Production Quarterly Tax Return

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17781)

02/25

(3)

DR-144ES

Declaration of Estimated Gas and Sulfur Production Tax

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14832)

01/23

(4)

DR-145

Oil Production Monthly Tax Return

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17782)

02/25

(5)

DR-145X

Oil Production Monthly Amended Tax Return

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17783)

02/25

History

• Rulemaking Authority 211.075(2), (3), 211.125(1), 213.06(1), 402.261(7)(a), 402.62(7)(b), 1002.395(12)(b), 1003.485(5)(b) FS. Law Implemented 211.02, 211.0251, 211.0252, 211.0253, 211.0254, 211.026, 211.075, 211.076, 211.125, 213.255, 213.755(1), 402.261, 402.62(5), 1002.395(5), 1003.485(3) FS. History–New 12-28-78, Formerly 12B-7.08, Amended 12-18-94, 5-4-03, 10-1-03, 11-6-07, 1-27-09, 1-11-10, 1-12-11, 1-25-12, 5-9-13, 1-8-19, 5-23-22, 1-1-23, 2-20-25, 12-29-25.

Fla. Admin. Code R. 12B-7.009 Payment of Tax; Interest and Penalties

History

• Rulemaking Authority 211.125(1), 213.06(1) FS. Law Implemented 211.075, 211.076 FS. History–New 12-28-78, Formerly 12B-7.09, Amended 12-18-94, Repealed 9-30-99.

Fla. Admin. Code R. 12B-7.010 Distribution of Tax

History

• Rulemaking Authority 213.06 FS. Law Implemented 211.02, 211.023 FS. History–New 12-28-78, Amended 6-3-80, Formerly 12B-7.10, Repealed 12-18-94.

Fla. Admin. Code R. 12B-7.011 Common Carriers

History

• Rulemaking Authority 213.06 FS. Law Implemented 211.08 FS. History–New 12-28-78, Formerly 12B-7.11, Repealed 12-18-94.

Fla. Admin. Code R. 12B-7.012 Assessment and Collection

History

• Rulemaking Authority 213.06 FS. Law Implemented 211.12 FS. History–New 12-28-78, Formerly 12B-7.12, Repealed 12-18-94.

Fla. Admin. Code R. 12B-7.013 Refunds and Settlements

History

• Rulemaking Authority 211.125(1), 213.06(1) FS. Law Implemented 211.125(6) FS. History–New 12-28-78, Formerly 12B-7.13, Amended 12-18-94, Repealed 6-12-95.

Fla. Admin. Code R. 12B-7.022 Definitions

History

• Rulemaking Authority 211.33(6), 213.06(1) FS. Law Implemented 211.30, 211.31, 211.3103, 211.3106 FS. History–New 9-17-80, Formerly 12B-7.22, Amended 12-18-94, Repealed 5-9-13.

Fla. Admin. Code R. 12B-7.0225 Computation of Phosphate Rock Tax Rate

History

• Rulemaking Authority 211.3103(9)(e), 213.06(1) FS. Law Implemented 211.3103 FS. History–New 6-28-00, Amended 10-30-06, Repealed 12-18-07.

Fla. Admin. Code R. 12B-7.023 Penalties and Interest

History

• Rulemaking Authority 211.33(6), 213.06(1) FS. Law Implemented 211.33 FS. History–New 12-18-94, Repealed 9-30-99.

Fla. Admin. Code R. 12B-7.025 Credits

History

• Rulemaking Authority 213.06 FS. Law Implemented 211.30, 211.31, 211.32, 213.05, 213.06 FS. History–New 9-17-80, Formerly 12B-7.25, Repealed 12-18-94.

Fla. Admin. Code R. 12B-7.026 Public Use Forms

(1)(a) The following forms and instructions are used by the Department in its administration of the taxes and surcharge imposed on the severance of solid minerals, phosphate rock, or heavy minerals from the soils and waters of this state. These forms are hereby incorporated by reference in this rule.

(b) Copies of these forms are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2) DR-142

Solid Mineral Severance Tax Return (R. 01/23)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14835)

01/23

(3) DR-142ES

Declaration/Installment Payment of Estimated Solid Mineral Severance Tax (R. 01/23)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14836)

01/23

History

• Rulemaking Authority 211.33(1), (6), 213.06(1) FS. Law Implemented 211.30, 211.31, 211.3103, 211.3106, 211.3108, 211.33, 213.755(1) FS. History–New 12-18-94, Amended 10-4-01, 5-4-03, 10-1-03, 11-6-07, 1-27-09, 1-11-10, 1-12-11, 1-25-12, 5-9-13, 1-1-23, 12-29-25.

Fla. Admin. Code R. 12B-7.030 Miami-Dade County Lake Belt Mitigation Fee

(1) The Miami-Dade County Lake Belt mitigation fee is imposed on each ton of limerock and sand extracted by any person who engages in the business of extracting limerock or sand within the areas and sections provided in Section 373.41492, F.S. The per-ton mitigation fee is at the rate provided in Section 373.41492(2), F.S.

(2) The fee is to be reported to the Department on the Miami-Dade County Lake Belt Mitigation Fees Return (Form DR-146, incorporated by reference in Rule 12B-7.031, F.A.C.).

(3)(a) Except as provided in rule Chapter 12-24, F.A.C., the payment and the Miami-Dade County Lake Belt Mitigation Fees Return must be delivered to the Department or be postmarked on or before the 20th day of the month following the month of the taxable transaction to avoid penalty and interest for late filing. If the 20th day falls on a Saturday, a Sunday, or a legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For this purpose, a legal holiday means a holiday that is observed by federal or state agencies as a legal holiday, as this term is defined in Chapter 683, F.S., and Section 7503, Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to section 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) Electronic filing of payments and returns must be submitted to the Department, as provided in rule Chapter 12-24, F.A.C., when:

1. Payment of the fee is required to be made by electronic means;

2. Any return for reporting fees is required to be submitted by electronic means; or

3. No fee is due with a return for reporting fees.

(4) Persons who are required to make a return or to pay the mitigation fee imposed under Section 373.41492, F.S., and administered under the provisions of Chapter 212, F.S., and fail to do so will be subject to penalties, as provided in Section 212.12(2), F.S., and to the interest imposed on deficiencies established under Section 213.235, F.S., and Rule 12-3.0015, F.A.C. Cross Reference: Subsection 12A-1.056(4), F.A.C.

History

• Rulemaking Authority 211.33(6), 213.06(1), 373.41492(4)(b) FS. Law Implemented 212.12(2), 213.235(2), 213.755(1), 373.41492 FS. History–New 10-1-03, Amended 9-28-04, 11-6-07, 7-19-18, 12-29-25.

Fla. Admin. Code R. 12B-7.031 Public Use Forms

(1)(a) The following form and instructions are used by the Department in its dealings with the public in the administration of the Miami-Dade County Lake Belt mitigation fee. This form and instructions are hereby incorporated by reference in this rule.

(b) Copies of this form and instructions are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2) DR-146

Miami-Dade County Lake Belt Mitigation Fees Return

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14837)

01/23

History

• Rulemaking Authority 213.06(1), 373.41492(4)(b) FS. Law Implemented 212.12(2), 213.235(2), 373.41492 FS. History–New 10-1-03, Amended 9-28-04, 6-28-05, 5-1-06, 11-6-07, 1-27-09, 1-11-16, 7-19-18, 1-8-19, 1-1-23, 12-29-25.

Chapter 12B-8 INSURANCE PREMIUM TAXES, FEES AND SURCHARGES

Fla. Admin. Code R. 12B-8.001 Premium Tax; Rate and Computation

(1) A tax is imposed on insurance premiums or assessments, including membership fees, finance charges, and policy fees and gross deposits received from subscribers to reciprocal or interinsurance agreements, and on annuity premiums or considerations, received during the preceding calendar year. Such tax is imposed no matter whether the insurer possesses a valid Florida certificate of authority, if the issuing or collecting insurer would have been required to obtain a certificate of authority prior to issuing these policies and contracts or collecting premiums on them. The administration, auditing, collection, and enforcement of the insurance premium taxes and assessments are vested in the Department of Revenue, with the exception of taxes under Chapters 175 and 185, F.S., where the Department’s only functions are collection and maintenance of a database. “Policies and premiums” respectively mean and include those policies or other contracts or agreements effecting and evidencing insurance, and premiums and other considerations for such policies as described and contemplated by the provisions of Sections 624.509 and 624.510, F.S.; or any other sections subject to the provisions of Section 624.509, F.S. Per-policy fees charged under Section 626.7451(11), F.S., by licensed managing general agents fall under the definition of “premiums” as defined in Section 627.403, F.S., and are subject to premium tax as set forth in Section 624.509, F.S.

(a) A tax at the rate of 1.75 percent of the gross amount of receipts for insurance premiums and assessments shall be applied to the following types of policies:

1. Life and health insurance policies covering Florida residents.

2. Policies and contracts covering property, subjects, or risks located, resident, or to be performed in Florida (except annuity policies and contracts).

3. Reciprocal insurance under Chapter 629, F.S.

4. Prepaid limited health services contracts issued under Chapter 636, F.S.

5. Insurance issued by a risk retention group certified in Florida under Part XIX, Chapter 627, F.S.

6. Insurance issued by a legal expense insurance corporation under Chapter 642, F.S.

7. Insurance issued by a captive or industrial captive insurer under Part V, Chapter 628, F.S.

8. Surety insurance issued by a licensed surety company.

9. Insurance issued by a joint underwriting association (JUA) or joint underwriting plan (JUP) under Part I, Chapter 627, F.S. Note: Each JUA/JUP may elect to pay premium taxes on the premiums received on its behalf or may elect to have the member insurers to whom the premiums are allocated pay the premium taxes where the member insurer had written the policy. The JUA/JUP is required to notify the member insurers and the Department of Revenue by January 15 of each year concerning how these taxes are to be treated. Notification to the Department of Revenue must be in the form of a letter stating its intentions. The letter is to be attached to the Insurance Premium Taxes and Fees Return, Form DR-908 (incorporated by reference in Rule 12B-8.003, F.A.C.). Additionally, JUA/JUP’s which elect to pay the tax must file an Insurance Premium Taxes and Fees Return, Form DR-908, by March 1 of each year to report the association’s or plan’s premium receipts and to remit the tax. These tax returns will be considered amended returns if they are the second return of the taxable year for the JUA/JUP. The first return is the January 15 notification. However, if the JUA/JUP is able to file a complete return and remit any required tax by the January 15 notification date, a subsequent return is not required.

(b) Annuity policies or contracts. A tax at the rate of 1 percent shall be applied on the gross receipts on annuity policies or contracts paid by holders thereof in Florida.

1. The premium tax authorized by this section shall not be imposed upon receipts of annuity premiums or considerations paid by holders in this state if the tax savings derived are credited to annuity holders.

2. As used in this subsection, the term “holders” shall include employers contributing to an employee’s pension, annuity, or profit sharing plan.

3. This tax is assessed and must be accrued by the insurer when the annuity premium is received, not when the annuity benefits are due and payable or when the annuity is otherwise terminated. For the purposes of this subparagraph, annuity premiums are received when consideration is remitted by one wishing to purchase an annuity contract and is subsequently accepted by an insurer as payment for the issuance of an annuity contract to a named individual annuitant. Such remittances may either be in the form of a lump sum payment or a series of payments. Each payment is subject to the tax described in this section.

(c) A tax at the rate of 1.6 percent of the gross premiums, contributions, and assessments received by the following shall be applied:

1. Commercial self-insurance fund under Section 624.475, F.S.

2. Group self-insurance fund under Section 624.4621, F.S.

(d) A tax at the rate of 1.6 percent of the gross premiums, contributions, or assessments received by the following shall be applied:

1. Medical Malpractice Self-Insurance under Section 627.357, F.S.

2. Assessable Mutual Insurers under Section 628.6015, F.S.

3. Corporation Not for Profit Self-Insurance Funds under Section 624.4625, F.S.

4. Public Housing Authorities Self-Insurance Funds under Section 624.46226, F.S.

(e) Dividends payable under insurance policies that, at the option of the holders of such policies, are applied to purchase paid-up additions, are not additional gross receipts of the insurer for purposes of the insurance premium tax contained in Section 624.509, F.S.

(2) Installments of tax. An estimated tax shall be filed on April 15, June 15, and October 15 of each year which shows the estimated amount of tax due for the preceding quarter, except the June 15 installment shall be for the period ending June 30; payment of that estimated amount shall be made at the time the report is filed. No credit for any of the allowable credits may be made against the insurer’s premium tax until the annual premium tax return is filed. Taxpayers may not credit any estimated tax payments against their estimated premium tax. Any estimated payment credits not taken when available cannot be carried forward or carried back. On or before March 1 in each year, an annual return shall be filed showing, by quarters, the gross amount of receipts taxable for the preceding year and the installment payments made during the year. A final payment of tax due for that year shall be made at the time the taxpayer files his annual return. A 10 percent penalty shall be imposed on any underpayment or late payment due and payable with the annual return. Installments of tax are applicable to taxes imposed by Sections 175.101, 185.08, 252.372, 624.4621, 624.475, 624.509, 624.510, 624.515, 627.357, 628.6015, 629.5011 and 636.066, F.S.

(a) The installment of the estimated premium tax due shall not be less than 90 percent of the amount finally shown to be due in any quarter, as evidenced by the annual report, without deductions for any credits. The 90 percent is based on the actual tax paid for that year, as evidenced by the annual return, after allowable credits. The 90 percent will be determined by computing the gross tax due for each quarter, direct premiums written times the tax rate, less 25 percent of the allowable credits as evidenced by line 2 of the first page of the annual return filed for that year times 90 percent. However, the taxpayer has the option of paying, in each installment, 27 percent of the amount of annual tax reported, after allowable credits, on his return for the previous year without penalty or interest applying. If a return was not filed for the previous year, the installments must meet the 90 percent requirement. If the tax is not paid in this manner, a 10 percent penalty shall be imposed on each underpayment or late payment of tax due and payable for that quarter. If the installment is based on 27 percent of the amount of the annual tax reported on the return for the preceding year and the installment payment is remitted to the Department after the due date, the installment shall be based on the 90 percent requirement instead of the 27 percent method. Any underpayment or delinquent payment shall be subject to a penalty of 10 percent, and interest from the due date until paid.

(b)1. Contributions to eligible nonprofit scholarship-funding organizations (SFOs) for insurance premium tax reduce the amount required to meet the prior year exception referenced in paragraph (a). For taxable years beginning before January 1, 2019, the specific prior year exception amount reduced by a contribution to an SFO is determined by the date of contribution on the certificate of contribution issued by the SFO. For taxable years beginning on or after January 1, 2019, a taxpayer may, after earning a tax credit under Section 624.51055, F.S., reduce any estimated payment in the taxable year by the amount of the credit. Cross reference: rule Chapter 12-29, F.A.C.

2. Example: An insurer remitted three estimated payments of $20,000 each on April 13, 2018; June 15, 2018; and October 15, 2018. The taxpayer also made three $10,000 contributions to an SFO and was issued three certificates of contribution on April 13, 2018; June 15, 2018; and October 15, 2018. For the prior insurance premium tax year ending December 31, 2017, tax of $100,000 was reported on the return [Form DR-908 Line 11 (Total Tax Due) less the sum of Line 9 (Filing Fees) and Line 10 (Commercial/Residential Policy Surcharge]. Taxpayer’s prior year exception computation is as follows:

Due dates of installments:

(1st)

4/15/2018

(2nd)

6/15/2018

(3rd)

10/15/2018

Current year: Total cumulative amount paid (or credited) from the beginning of the taxable year through the installment date indicated.

20,000.00

40,000.00

60,000.00

(a) Prior year exception amount.

27% of tax

27,000.00

54% of tax

54,000.00

81% of tax

81,000.00

(b) Cumulative donations made to SFOs from the beginning of the taxable year through the installment date indicated. Certificate of contribution must be issued on or before installment due date.

10,000.00

20,000.00

30,000.00

(c) The prior year exception adjusted for the credit for contributions to SFOs per Section 1002.395(5)(f), F.S., equals (a) less (b).

17,000.00

34,000.00

51,000.00

Installment meets prior year exception? To answer Yes, Current year must equal or exceed Prior year (c).

Yes

Yes

Yes

Taxpayer has met the prior year exception for all three installments through a combination of estimated payments and SFO credit so that estimated tax penalty and interest will not apply to any of the three installments.

3. Example: An insurer remitted three estimated payments of $20,000 each on April 15, 2019; June 14, 2019; and October 15, 2019. The taxpayer also made three $10,000 contributions to an SFO and was issued three certificates of contribution on April 19, 2019; October 18, 2019; and February 14, 2020. For the insurance premium tax year ending December 31, 2019, tax of $100,000 is reported on the return [Form DR-908 Line 11 (Total Tax Due) less the sum of Line 9 (Filing Fees) and Line 10 (Commercial/Residential Policy Surcharge)]. Taxpayer’s prior year exception computation is as follows:

Due dates of installments:

(1st)

4/15/2019

(2nd)

6/15/2019

(3rd)

10/15/2019

Current year: Total cumulative amount paid (or credited) from the beginning of the taxable year through the installment date indicated.

20,000.00

40,000.00

60,000.00

(a) Prior year exception amount.

27% of tax

27,000.00

54% of tax

54,000.00

81% of tax

81,000.00

(b) Cumulative donations timely made to SFOs for the taxable year. Certificate of contribution must be issued for the taxable year.

30,000.00

30,000.00

30,000.00

(c) The prior year exception adjusted for the credit for contributions to SFOs per Section 1002.395(5)(f), F.S., equals (a) less (b).

0.00

24,000.00

51,000.00

Installment meets prior year exception? To answer Yes, Current year must equal or exceed Prior year (c).

Yes

Yes

Yes

Taxpayer has met the prior year exception for all three installments through a combination of estimated payments and SFO credit so that estimated tax penalty and interest will not apply to any of the three installments.

(c) When any taxpayer fails to pay any amount due or any portion thereof, on or before the due date when the tax or installment of tax shall be required by law to be paid, interest shall be added to the amount due at the rate of interest established pursuant to Section 213.235, F.S., and Rule 12-3.0015, F.A.C. (prorated daily).

(d) Interest accrues from the due date until paid.

(3) Credits Against the Tax.

(a)1. The corporate income tax imposed under Chapter 220, F.S., which is, or should have been, filed and paid by an insurer shall discharge the liability for the insurance premium tax imposed under Section 624.509, F.S., for the annual period in which such tax payment is, or should have been made, to the extent of the maximum allowed. Any insurer issuing policies insuring against loss or damage from the risks of fire, tornado, and certain casualty lines may take a credit against gross premium receipts tax for the excise tax(es) imposed by Sections 175.101 and 185.08, F.S.

2.a. When an insurer is required to file a corporate income tax return where the due date and extended due date are in different calendar years, the due date, or the extended date when a valid extension of time is made of said Florida return, determines the annual period in which such tax payments should have been made.

b. For example, a Florida corporate income tax return for tax year ending August 31, 2013, is due, without extension, on December 1, 2013. Since the Florida corporate income tax return is due on or before December 31, 2013, the insurer should include the amount of tax due on the return in computation of the corporate income tax credit on its 2013 insurance premium tax return (Form DR-908, which is due March 1, 2014). If, however, the insurer extended the due date of the Florida corporate income tax return to June 1, 2014, and did not file and pay the return on or before December 31, 2013, the amount of tax due on the return is included in the computation of the corporate income tax credit on its 2014 insurance premium tax return (Form DR-908, which is due March 1, 2015).

3. If a taxpayer is required to amend its corporate income tax liability under Chapter 220, F.S., the taxpayer shall amend its corresponding insurance premium tax return for the tax year in which it claimed, or was entitled to claim the credit provided in Section 624.509(4), F.S., for the corporate income tax paid for that tax year. The taxpayer shall file an amended insurance premium tax return and pay additional tax due, if any, or claim a refund, if any, as provided in Section 624.50921, F.S.

(b) Salaries. Fifteen percent of the amount paid in salaries by the insurer to employees located or based in Florida may be credited against the net tax imposed by Section 624.509, F.S.

1. Salaries include only amounts paid directly to employees and do not include commissions paid to employees located or based in Florida.

2. Employees are those covered under Chapter 443, F.S., Unemployment Compensation, by the insurer taking the credit, a service representative, a supervising or managing general agent, and an adjuster or claims investigator, as defined in Section 626.015, F.S.

3. Salary credit shall be allowed only to the extent that:

a. The employees are not disqualified under Section 624.509(5), F.S.;

b. The employees are located or based in Florida; and

c. The insurer claiming the credit is the employer, as defined in Section 443.036, F.S., of the claimed employees, and said insurer satisfies the Chapter 73B-10, F.A.C., filing requirements.

4. Employees do not include independent contractors or any persons whose duties require them to have a valid insurance license issued under the Florida Insurance Code.

5. The wages paid to an individual who is employed directly by an employment agency, such as a temporary agency or a leasing company, are not included.

6. Net tax is the tax imposed under Section 624.509(1), F.S., after deductions for the corporate income tax imposed under Chapter 220, F.S., and for gross premium receipts tax payable for firefighters’ pension trust funds under Section 175.101, F.S., and police officers’ retirement funds under Section 185.08, F.S.

7. Salary Tax Credit Exceptions.

a. Section 624.509(5)(b)4., F.S., allows an affiliated group of corporations that created a service company within its affiliated group on July 30, 2002, to allocate the salary of each service company employee covered by contracts with affiliated group members to the companies for which the employees perform services. If the service company was not created within the affiliated group on the specific date, July 30, 2002, this alternative tax credit calculation cannot be used.

b. Section 624.509(5)(a)2., F.S., allowed insurers and their affiliated groups to make an irrevocable election on or before August 1, 2005, to make an alternative salary tax credit calculation based in part upon the 2002 amount of salary tax credit correctly computed under the law. If the insurer and its affiliated group did not make a timely election (on or before August 1, 2005) to use this alternative method, this alternative salary tax credit cannot be used.

c. Unless funding is specifically provided by the Legislature for a specific tax year, the alternative salary tax credit calculation in Section 624.509(5)(b)5., F.S., is not valid.

(c) Assessments Credited Against the Tax.

1.a. Payments made by an insurance carrier, group self-insurer, or commercial self-insurance fund, for assessments made pursuant to Section 440.51, F.S., shall be allowed as a deduction against the amount of any other tax levied by the state upon the premiums, assessments, or deposits for workers’ compensation insurance on contracts or policies of said insurance carrier, self-insurer, or commercial self-insurance fund.

b. If an insurance carrier, group self-insurer, or commercial self-insurance fund receives a refund of a previously paid assessment under Chapter 440, F.S., for which it claimed a credit on a previously filed insurance premium tax return, the insurance carrier, group self-insurer, or commercial self-insurance fund shall file an amended insurance premium tax return and pay the additional tax, if any, for the year in which the credit was originally claimed pursuant to Section 624.50921, F.S.

2.a. Insurers who have paid an assessment to the Florida Life and Health Insurance Guaranty Association (Association) may claim a credit for part of such assessment as provided in Section 631.72, F.S. Any credits not taken or utilized when available cannot be carried forward.

b.(I) When the Association refunds money to an insurer from a previous assessment that was paid by the insurer, and the insurer had claimed credit or partial credit against its insurance premium tax or corporate income tax for that previous payment to the Association, the insurer is required to pay part of that refund to the Department of Revenue pursuant to Section 631.72, F.S.

(II) Example. ABC Insurance Company paid a $300,000 Class B assessment to the Association in 1998. On its 1999 – 2004 insurance premium tax returns, ABC claimed credits of $15,000 ($300,000 X .05) each year for its 1998 payment to the Association. The total credit taken by ABC, based on the 1998 Association assessment, was $90,000 ($15,000 per year for 6 years). In 2005, the Association issued ABC a refund of $30,000 from the 1998 assessment. In accordance with Section 631.72(3), F.S., a $9,000 payment is due to the Department of Revenue in 2005 from that refund ($30,000 X .05 X 6 years). The $9,000 that is due to the Department of Revenue in 2005 is a repayment of the credits that the insurer had already claimed in tax years 1999 through 2004 against its insurance premium tax or corporate income tax for the $30,000 that was refunded by the Association. For tax years 2005 and thereafter, ABC should only use a payment of $270,000 to the Association for its 1998 assessment when computing its credit for payments to the Association.

c.(I) When an insurer surrenders its certificate of authority and ceases doing business in Florida, all uncredited Association assessments for the current tax year and future tax years may be credited against the insurer’s final insurance premium tax return or final corporate income tax return pursuant to Section 631.72, F.S. Florida Life and Health Insurance Guaranty Association credits do not transfer from an insurer that is merged or acquired out of existence to a surviving insurer.

(II) Example. XYZ Insurance Company paid a $100,000 Class B assessment to the Association in 2004, which results in a credit of $5,000 per year for 2005 through 2024. On its 2005 insurance premium tax return, XYZ Insurance Company only claimed a $3,000 credit for its payment to the Association in 2004 because it had very little direct written premium during calendar year 2005. In 2006, XYZ Insurance Company surrendered its certificate of authority to the Florida Office of Insurance Regulation. On its 2006 final insurance premium tax return or its final corporate income tax return, XYZ Insurance Company may claim a credit of $5,000 for the 2004 payment to the Association and an accelerated credit of $90,000 (total credit of $95,000 for the 2004 payment to the Association).

(d) Community Contribution Tax Credit.

1. Who May Claim the Credit. Any taxpayer who has received prior approval from the Florida Department of Commerce for its community contribution to any revitalization project undertaken by an eligible sponsor, shall be allowed a credit of 50 percent of the contribution. The total annual credit under this section applied against the tax due under Section 624.509 or 624.510, F.S., for a calendar year, may not exceed $200,000. The valuation of the contribution determined by the Florida Department of Commerce shall be used in the computation of the credit.

2. When to Claim the Credit. The credit shall be claimed in the taxpayer’s taxable year in which the contribution is paid or the transfer of the asset is completed, whichever is later.

3. Carryovers of Community Contribution Tax Credit.

a. If a credit granted in a tax year exceeds the tax liability for that year, the unused credit may be carried forward for a period not to exceed 5 years.

b. The community contribution tax credit carryover, which is created in a given year because of an annual contribution, may not exceed the annual $200,000 credit limitation. However, the total carryover for all years may be greater than $200,000.

4. Recordkeeping Requirements. Every corporation claiming the community contribution tax credit must retain a copy of each approved application for tax credit obtained from the issuing agency for as long as the contents are material for administrative purposes. The retention of records is generally controlled by Section 213.35, F.S., which requires records to be kept until the expiration of time for the Department of Revenue to make an assessment under Section 95.091(3), F.S.

(e) Credit for Contributions to Nonprofit Scholarship-Funding Organizations. See rule Chapter 12-29, F.A.C., for provisions on credits against the tax for contributions made to eligible nonprofit scholarship-funding organizations.

(4) The maximum allowable credit for corporate income tax and salaries cannot exceed sixty-five percent of the tax due under Section 624.509(1), F.S., after deducting the taxes paid under Sections 175.101 and 185.08, F.S., and assessments pursuant to Section 440.51, F.S.

(5) Any insurer paying assessments made under Section 440.51, F.S., shall be allowed to take such amounts as a deduction against the amount of any other tax levied by the state upon the premiums, assessments, or deposits for workers’ compensation insurance on contracts or policies of said insurance carrier, self-insurer, or commercial self-insurance fund.

(6) Credits and deductions against the tax imposed by Sections 624.509 and 624.510, F.S., shall be taken in the following order:

(a) Deductions for assessments under Section 440.51, F.S.

(b) Credits for taxes paid under Sections 175.101 and 185.08, F.S.

(c) Credits for corporate income taxes paid under Chapter 220, F.S.

(d) Salary tax credit.

(e) All other available credits and deductions.

(f) A refund will not be created by credits.

(7)(a) Changes to any of the taxes or assessments allowed as a credit to the IPT because of a refund, assessment, or voluntary disclosure, will result in amended credits to the year in which the taxpaying event occurred according to the time schedule for its occurrence in the ordinary course of events.

(b) For example, if an insurer’s 1992 Florida corporate income tax (CIT), which could be claimed as a credit against its 1993 IPT, is increased because of a Department audit conducted in 1994, the increased CIT credit is to be reflected in the insurer’s 1993 IPT.

(8) The gross amount of receipts subject to tax under the provisions of paragraph (1)(a) of this rule does not include the following:

(a) Premiums of reinsurance accepted and returned premiums or assessments.

(b) Amounts sufficient to recoup any assessments that have been paid by the insurer to defray deficits of a joint underwriting association or assigned risk plan under Sections 627.311 and 627.351, F.S., net of any earnings returned to the insurer by the association or plan. This recoupment provision is only applicable to insurers whose rates are filed with the Office of Insurance Regulation under Section 627.062, 627.0651 or 627.072, F.S.

(c) Service warranty or motor vehicle service agreement premiums or assessments received by an insurer or service agreement company under the provisions of Chapter 634, F.S.; however, such premiums or assessments are subject to Florida sales and use tax under Section 212.0506, F.S.

(d) Crop insurance premiums received in accordance with the Federal Crop Insurance Act, 7 U.S.C. §1501.

(e)1. Premiums received by an orphan insurer. However, if an orphan insurer receives a COA, such insurer would then be subject to Florida’s IPT, not only on any new policies written, but also on the current premiums received from previously issued orphan policies. Under such circumstances, the insurer would be taxed using the same rate and installment period requirements that are provided for authorized insurers.

2. For purposes of this rule, an “orphan insurer” is an insurer which does not possess a COA to write insurance in Florida but which services Florida insureds, following the issuance of an insurance policy to such insureds in another state. Also, “orphan policies” are those policies issued by an orphan insurer.

(f) No deductions shall be made for:

1. Reinsurance assigned or transferred to other insurers.

2. Monies paid upon surrender of policies or certificates for cash surrender value.

3. Discounts or refunds for direct or prompt payment of premiums or assessments.

4. Dividends of any nature or amount paid and credited or allowed to holders of insurance policies and certificates, or surety, indemnity, or reciprocal or interinsurance contracts or agreements.

History

• Rulemaking Authority 213.06(1), 220.183(4)(d), 624.5105(4)(b), 1002.395(12)(b) FS. Law Implemented 175.101, 175.1015, 175.141, 185.08(3), 185.085, 185.12, 213.235, 220.183(3), (4)(b), 252.372, 624.4621(7), 624.46226(4), 624.4625(4), 624.475, 624.509, 624.5092, 624.50921, 624.510, 624.5105, 624.51055, 624.511, 624.519, 627.311(1)(a)9., 627.357(9), 628.6015, 629.5011, 634.313(2), 634.415(2), 636.066, 647.03, 1002.395(5) FS. History–New 2-3-80, Formerly 12B-8.01, Amended 3-25-90, 4-10-91, 2-18-93, 6-16-94, 10-19-94, 1-2-96, 12-9-97, 6-2-98, 4-2-00, 10-15-01, 8-1-02, 6-20-06, 9-1-09, 4-26-10, 6-6-11, 1-25-12, 7-28-15, 1-6-20, 1-1-24.

Fla. Admin. Code R. 12B-8.0012 Insurance Policy Surcharge; Rate and Computation

(1) Every insurer must collect a surcharge of $2 and $4 from the policyholders of certain types of property insurance issued or renewed.

(2) The $2 surcharge applies to each residential dwelling fire policy, homeowner’s, mobile homeowner’s, tenant homeowner’s, condominium unit owner’s, and any other type of insurance coverage on residential property.

(3) The $4 surcharge applies to each commercial fire, commercial multiple peril, and business owner’s property insurance policy, including marine policies if the coverage includes real property.

(4) The surcharge does not apply to policies on tangible personal property, except multiple peril type policies on residential or commercial property and mobile homes.

(5) For purposes of this rule, the date of issue or renewal is the effective date of the policy.

(6) The surcharge applies to all policies issued or renewed even if they are subsequently cancelled. However, if the policy is cancelled back to the effective date, the surcharge does not apply.

(7) The surcharge must be collected by the insurer from the policyholder and must be remitted in the same manner as the insurance premium tax to the Department of Revenue on Form DR-907, Insurance Premium Installment Payment, and on Form DR-908, Insurance Premium Taxes and Fees Return (incorporated by reference in Rule 12B-8.003, F.A.C.).

(8) The surcharge is required to be remitted on the required return for the calendar quarter the policy is issued or renewed without regard to the collection of the surcharge from the policyholders.

(9) A separate line denoting the surcharge is provided on Form DR-907 and Form DR-908.

(10) The estimated payment must be based on at least 90% of the actual number of policies subject to the surcharge to avoid penalty and interest as provided in Section 624.5092, F.S.

(11) The surcharge is not considered to be a part of the premium charge, and is therefore not subject to the insurance premium tax.

(12) The surcharge is imposed on the policyholder and will not be considered for retaliatory tax purposes whether or not the surcharge is collected from the policyholder.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 252.372, 624.5092 FS. History–New 6-16-94, Amended 6-20-06, 1-25-12, 12-29-25.

Fla. Admin. Code R. 12B-8.0016 Department of Revenue Electronic Database

(1)(a)1. The Department maintains an electronic database that is for use by insurers to assign insurance policies and premiums to local taxing jurisdictions. The electronic database, referred to as Florida’s Address/Jurisdiction Database (“database”), is maintained on the Department’s website at pointmatch.floridarevenue.com. An updated database is posted to the Department’s website by November 1 of each year to be used in assigning policies and premiums to the proper local taxing jurisdictions for the insurance premium tax return due for the tax year beginning on or after the January 1 following the posting of the database; however, insurers may use the updated database when it is posted to assign policies and premiums to the proper local taxing jurisdiction for the current tax year. The database available for downloading does not include the information contained in the pending changes described in paragraph (b).

2. The database also has a single address lookup feature that permits any person to enter an address and ascertain to which local taxing jurisdiction, if any, the address is assigned.

3. Local taxing jurisdictions may register on the Department’s website at pointmatch.floridarevenue.com.

4. When the Department is notified by the Division of Retirement, Department of Management Services, that a local taxing jurisdiction is to be added or deleted, the Department will update the database based upon existing database addresses within that jurisdiction. However, for the addition of special fire control districts, as defined in Section 175.032(16), F.S., whose boundaries do not follow municipal or county lines, the special fire control district must identify the addresses within its local taxing jurisdiction.

(b) When a change to the database has been approved, the approved pending address additions and approved pending address deletions are stored in separate files maintained by the Department for the next scheduled update of the database. These pending files include corrections of any errors discovered since the last update, as well as changes in addresses or jurisdictional boundaries based on information provided by local taxing jurisdictions and counties. These pending files contain the most recent local taxing jurisdictional assignment information. The individual address lookup feature searches the current database and the pending files and may reflect information that has not yet been incorporated into the database available for downloading and use by local taxing jurisdictions and insurers. Insurers may use the information contained in the address look-up feature to assign policies and premiums to the proper local taxing jurisdictions. In such cases, the individual address lookup page carries a statement notifying the viewer that it reflects a pending change to the database.

(c) To fulfill its statutory responsibility to maintain the database, when the Department notices apparent errors, such as an address that is assigned to multiple jurisdictions, the Department will initiate an objection to the database in accordance with subsection (3) and will process the objection in the same manner as other objections.

(2)(a) Local taxing jurisdictions have a continuing obligation to provide the Department all information needed to update the database, such as changes in addresses or address ranges, annexations, incorporations, reorganizations, and any other changes to jurisdictional boundaries. Local taxing jurisdictions must inform the Department of the identity of the jurisdictions’ officers or employees who are authorized to act as contact persons with the Department on database matters. Local taxing jurisdictions are limited to two authorized contact persons; however, local taxing jurisdictions may provide updated contact person information as frequently as necessary to ensure that the appropriate contact person can be reached by the Department. The contact list of authorized local government contact persons for all local taxing jurisdictions is located on the Department’s website floridarevenue.com.

(b) Local taxing jurisdictions must submit information requesting changes to the database electronically, using instructions in Form DR-700002, User’s Guide for the Address/Jurisdiction Database (incorporated by reference in Rule 12A-19.071, F.A.C.). Authorized local jurisdiction contact persons may access the login screen for registered users at pointmatch.floridarevenue.com. Local taxing jurisdictions that do not have access to computers with Internet access should contact the Department to submit changes through alternative electronic media. The information must also be submitted on Form DR-700022, Notification of Changes to the Address/Jurisdiction Database (incorporated by reference in Rule 12A-19.100, F.A.C.), with the exception of Special Fire Control Districts, which must use Form DR-350907, Local Insurance Premium Tax Special Fire Control Districts Notification of Jurisdiction Change (R. 10/13, hereby incorporated by reference, effective 1/14) (http://www.flrules.org/Gateway/reference.asp?No=Ref-03612).

(c) The local taxing jurisdiction must specify the effective date of any information to be incorporated in the database. Information must be submitted by September 3 of each year to be included in the next updated database posted to the Department’s website by November 1 of each year. The Department will review the information provided in the requests for change and store the approved changes in the approved pending files. Local governments, including special fire districts, should not submit changes during the periods September 4 to October 3 and March 4 to April 2. The Department completes its review of pending submissions for the next database update during these time periods and is unable to process new submissions. Submissions of information initiated during these time periods will be denied, and a new submission will be necessary.

(d)1. Any requested changes or additions to the database must be supported by competent evidence. Competent evidence to support a change to the database is documentation establishing that the addresses affected by the requested change or addition are located in the local taxing jurisdiction indicated on the request. Examples of competent evidence include annexation ordinances, articles of incorporation of a new municipality, the plat filed for a newly approved subdivision, or the enhanced 911 Master Street Address Guide database information relating to local law enforcement responders issued by the local jurisdiction coordinator’s office. Competent evidence must clearly designate the addresses or address ranges that are affected.

2. If a requested change is to move an address from one local taxing jurisdiction to another, competent evidence includes the consent of the local taxing jurisdiction that did not request the change. To facilitate processing of the change, the local taxing jurisdiction requesting the change should obtain a written consent to the change signed by an authorized contact person of the nonrequesting jurisdiction. Forms DR-700022 and DR-350907 contain an authorization statement that will serve as the written consent of the nonrequesting local taxing jurisdiction when signed by that jurisdiction’s authorized contact person. The Department will consider the receipt of Form DR-700022 or Form DR-350907 containing the signatures of the authorized contact persons of both the initiating and affected jurisdictions to be sufficient competent evidence. In such instances, the Department will make the change based upon the representations on the form. A local taxing jurisdiction that objects to this change should use Form DR-700022 or Form DR-350907 to change the address information and, unless the affected local taxing jurisdiction signs the form, the Department will treat the request as one that must be resolved by the local taxing jurisdictions involved as provided in this paragraph. Identification of the case number associated with the address changes is insufficient by itself to demonstrate competent evidence establishing that the service addresses are located in the local taxing jurisdiction indicated on the request.

3. If the requesting jurisdiction has not obtained the written consent of the nonrequesting jurisdiction, the Department will contact the nonrequesting jurisdiction before making the change. Based upon the response of the nonrequesting jurisdiction, the Department will take the following action in regard to the requested change:

a. If the nonrequesting jurisdiction consents in writing, the Department will accept and process the change.

b. If the nonrequesting jurisdiction objects in writing, the Department will treat the requested change as one that must be resolved by the local taxing jurisdictions involved as provided in subsection (3).

c. If the nonrequesting jurisdiction fails to either consent or object in writing within 20 days after the date on which the Department notified that jurisdiction of the requested change, the Department will accept and process the change. This does not preclude the nonrequesting jurisdiction from subsequently objecting to the new address assignments after they have been processed.

4. If a requested change affects only the requesting local taxing jurisdiction and does not affect another local taxing jurisdiction, the Department will consider receipt of an affidavit signed by the authorized contact person for that local taxing jurisdiction that identifies the addresses or address ranges and states that the change affects only the requesting local taxing jurisdiction to be sufficient competent evidence. The use of an affidavit is not required but, at the option of the requesting local taxing jurisdiction, may be used in lieu of providing other documentation such as subdivision plats. In such instances, the Department will make the change based upon the representations on the form and the affidavit. A local taxing jurisdiction that objects to the change should use Form DR-700022 to change the address information and, unless the affected local taxing jurisdiction signs the form, the Department will treat the request as one that must be resolved by the local taxing jurisdictions involved as provided in subsection (3).

(e) Examples.

1. A local taxing jurisdiction approves the plat and grants the permits necessary for development of a new subdivision on February 1, 2007. The plat indicates street names, but no address numbers have yet been assigned. In order for the addresses to be added to the next electronic database, the local taxing jurisdiction must file Form DR-700022 or Form DR-350907, as appropriate, with a copy of the approved subdivision plat or an affidavit indicating that the change affects only the requesting local taxing jurisdiction and submit online address change information by September 3, 2007. If that deadline is not met, the address cannot be added until the following year’s database (database created by November 1, 2008). In order to meet the deadline and be certain that the actual address numbers are included, the contact person for the local taxing jurisdiction may request the addition of a range of numbers that is certain to include the actual numbers. Because the development of the subdivision affects only the requesting jurisdiction, no consent from any other jurisdiction is required.

2. A municipality annexes an area with 1500 addresses that were formerly in another incorporated area. The annexation will be effective November 1, 2006. The municipality’s database contact person timely enters address change requests for 1,525 addresses online and files a Form DR-700022 on June 15, 2006. Included with the form are a copy of the annexation ordinance and a map with the annexed area outlined with street address ranges included in the annexed area noted. The other incorporated area database contact person has not signed the Form DR-700022 or otherwise given written consent to the changes. On July 15, 2006, the Department notifies the other incorporated area of the requested changes and provides copies of the municipality’s Form DR-700022, annexation ordinance, and map. The other incorporated area does not respond with written consent or a written objection. On August 6, 2006, the Department processes the changes, and they are included in the database available by November 1, 2006. The other incorporated area’s database contact person notifies the Department on September 1, 2006, that the other incorporated area believes the database now incorrectly assigns 25 service addresses to the municipality. The other incorporated area should submit Form DR-700022 to move the 25 services addresses to its incorporated area. The Department will handle this as a change to the database.

3. A municipality annexes an area with 1,500 service addresses that was formerly in another incorporated area. The annexation will be effective November 1, 2006. The municipality’s contact person timely enters address change requests for the 1,500 addresses online and writes a letter to the other incorporated area’s contact person requesting that consent be indicated by signing the Form DR-700022 that has been prepared by the municipality and enclosed with the letter. Also enclosed with the letter is a copy of the annexation ordinance and a street map on which the annexed area is outlined. The other incorporated area’s contact person signs the Form DR-700022. The municipality submits the form to the Department on June 15, 2006. The Department will approve the changes and include them in the database available by November 1, 2006.

(3)(a)1. Any substantially affected party may object to information contained in the database by submitting Form DR-700025, Objection to Address Assignment in the Address/Jurisdiction Database (incorporated by reference in Rule 12A-19.100, F.A.C.), along with competent evidence to support the party’s objection. Only objections to the current effective database can be considered; objections that do not relate to the current effective database will be denied. Before submitting an objection, a person should check the effective database to determine whether the contemplated objection is necessary. Examples of substantially affected parties include police officers and firefighters from local taxing jurisdictions that impose the excise taxes under chapters 175 and/or 185, F.S., local taxing jurisdictions that impose the excise taxes under Chapter 175 and/or 185, F.S., insurers who are required to pay the excise taxes under Chapter 175 and/or 185, F.S., individuals whose policies are being assigned via the database, and local taxing jurisdictions.

2. Local taxing jurisdictions should use Form DR-700022, and special fire control districts should use Form DR-350907, to create addresses in the database or to request address assignment changes. The consent of any other jurisdiction affected by the requested change will be required.

3. Firefighters and police officers, including pension board members, who wish to object to information contained within the database, should do so through the appropriate official within their local taxing jurisdiction.

(b) Multiple address submissions affecting multiple jurisdictions should be segregated, based on the specific combinations of the affected jurisdictions. For example, changes from City A to City B should be segregated from changes from City B to City A.

(c) In the event that an insurer that is required to pay taxes under Chapter 175 and/or 185, F.S., elects to formally object to information contained in the database, the insurer must file Form DR-700025. This requirement is not intended to interfere with any procedures implemented by insurers to inform local taxing jurisdictions of errors in the database.

(d) Examples of competent evidence that supports an inquiry into a substantially affected party’s objection include a voter registration card indicating that the voter residing at the address is entitled to vote in municipal elections or only in county elections, the enhanced 911 Master Street Address Guide database property tax bill showing assessment by local taxing jurisdiction, or a map that includes the boundaries of a local taxing jurisdiction and clearly places the address for the property that is being insured inside or outside those boundaries. For example, if a map shows that a street is entirely within the boundaries of a municipality, that map is competent evidence that an address on that street should be assigned to that municipality in the database. The Department will notify the substantially affected party of any deficiencies in the objection or competent evidence.

(e) When the Department believes that addresses or address ranges have been assigned to an incorrect local taxing jurisdiction, the Department will initiate a change by using Form DR-700025. The Department will use any information at its disposal, including enhanced 911 Master Street Address Guide database address information and information supplied by any insurer, as a basis for initiating an objection; however, the Department will not change an address assignment without providing notice to the affected jurisdiction(s) in the manner provided in paragraph (3)(f). If the change is approved, it will be included with other approved changes for inclusion in the next update of the database.

(f) Upon receipt of an objection on a completed Form DR-700025, including competent evidence to support the objection, the Department will forward copies of the form, along with the associated documentation, to the database contact person in each affected taxing jurisdiction. The Department will provide to the affected local taxing jurisdictions Form DR-700026, Local Government Authorization for Address Changes Described on Form DR-700025 (incorporated by reference in Rule 12A-19.100, F.A.C.), to use to agree, disagree, or partially agree with the address jurisdiction changes proposed by the attached Form DR-700025. The Department will provide the affected local taxing jurisdiction a Form DR-700027, Local Government Authorization for Omission of Address or Incorrect Address Identification (incorporated by reference in Rule 12A-19.100, F.A.C.), to use to agree or disagree with the inclusion of an address or address range or with changing nonjurisdictional information about an address or address range proposed by the attached Form DR-700025. The Department will include a tracking number and date on the bottom portion of each form to identify which forms belong together. The Department will, when practicable, provide the information electronically for review by the local taxing jurisdictions. The local taxing jurisdictions should review the specific address(es) at issue, as well as the address range(s) that will be impacted by the change, to ensure that each local taxing jurisdiction retains all of the addresses that it believes are within its jurisdictional boundaries. The Department will instruct each local taxing jurisdiction to indicate its determination in regard to the objection by utilizing the provided authorization form, Form DR-700026 or Form DR-700027, as applicable. If the affected local taxing jurisdictions indicate agreement with the objection, the Department will revise the electronic database accordingly. If a local taxing jurisdiction fails to respond within a reasonable time, which shall be no less than 30 days, such jurisdiction shall be deemed to have indicated agreement with the objection. If either local taxing jurisdiction notifies the Department in writing that it does not agree with the objection, the Department will not change the address in the database. The service address will be reassigned to a local taxing jurisdiction when one of the following events occurs:

1. The Department receives written notification from the local taxing jurisdiction that did not agree with the change requested in the objection that such local taxing jurisdiction has subsequently determined that the change should be made;

2. The Department receives written notification from the party that filed the Form DR-700025 that the objection was erroneous and the assignment in the database was correct; or

3. The Department is provided with a copy of a final order, judgment, or other binding written determination resolving the jurisdictional assignment of the contested address.

(4) All forms referenced in this rule are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

History

• Rulemaking Authority 175.1015(5), 185.085(5) FS. Law Implemented 175.1015, 185.085 FS. History–New 12-20-07, Amended 6-28-10, 1-20-14, 1-20-15, 8-15-21, 12-29-25.

Fla. Admin. Code R. 12B-8.002 Tax on Wet Marine and Transportation Insurance

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 624.510 FS. History–New 2-3-80, Formerly 12B-8.02, Amended 3-25-90, 12-9-97, Repealed 1-17-13.

Fla. Admin. Code R. 12B-8.003 Tax Statement; Overpayments

(1) Tax returns and reports must be made by insurers on forms prescribed by the Department. These forms are hereby incorporated by reference in this rule.

(2) Copies of these forms are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday, (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(3) If any insurer makes an overpayment of any taxes due, a refund shall be made from the General Revenue Fund for taxes paid under Sections 624.509 and 624.510, F.S. Overpayments of taxes due under Sections 624.509 and 624.510, F.S., shall not be refunded until the first day of the state fiscal year following the date the tax was due.

Form Number

Title

Effective Date

(4)(a) DR-907

Florida Insurance Premium Installment Payment

(http://www.flrules.org/Gateway/reference.asp?No=Ref-10182)

01/19

(b) DR-907N

Instructions for Filing Insurance Premium Installment Payment (Form DR-907)

(http://flrules.org/Gateway/reference.asp?No=Ref-18797)

01/26

(5)(a) DR-908

Insurance Premium Taxes and Fees Return for Calendar Year 2025

(http://flrules.org/Gateway/reference.asp?No=Ref-18798)

01/26

(b) DR-908N

Instructions for Preparing Form DR-908 Florida Insurance Premium Taxes and Fees Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18799)

01/26

(6) DR-350900

2024 Insurance Premium Tax Information for Schedules XII and XIII, Form DR-908

(http://flrules.org/Gateway/reference.asp?No=Ref-18796)

01/26

History

• Rulemaking Authority 175.1015(5), 185.085(5), 213.06(1), 402.261(7)(a), 624.509(3), 624.511(1), , 624.518(1), 636.066(1) FS. Law Implemented 175.041, 175.101, 175.1015, 175.111, 175.121, 175.141, 175.151, 185.02, 185.03, 185.08, 185.085, 185.09, 185.10, 185.12, 185.13, 213.235, 213.37, 213.755, 220.183, 220.18775, 220.191, 252.372, 288.062, 402.261, 420.50872, 440.51, 443.1216, 624.4621(7), 624.4625(4), 624.475, 624.509, 624.5091, 624.5092, 624.50921, 624.5107, 624.5108, 624.510, 624.5105, 624.51058, 624.511, 624.515, 624.518, 624.519, 624.610, 627.311(7), 627.351, 627.357(9), 628.6015, 629.401(4), 629.5011, 634.131, 634.313(2), 634.415(2), 636.066 FS. History–New 2-3-80, Formerly 12B-8.03, Amended 3-25-90, 3-10-91, 2-18-93, 6-16-94, 12-9-97, 3-23-98, 7-1-99, 10-15-01, 8-1-02, 5-4-03, 9-28-04, 6-28-05, 6-20-06, 4-5-07, 1-1-08, 1-27-09, 1-11-10, 1-12-11, 1-25-12, 1-17-13, 1-20-14, 1-20-15, 1-11-16, 1-10-17, 1-17-18, 1-8-19, 1-6-20, 12-31-20, 5-23-22, 1-1-23, 1-1-24, 2-20-25, 1-1-26.

Fla. Admin. Code R. 12B-8.004 Domestic Insurers Exempt

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 624.409-517 FS. History–New 2-3-80, Formerly 12B-8.04, Repealed 3-25-90.

Fla. Admin. Code R. 12B-8.005 Regional Home Offices of Foreign or Alien Insurers: Credits on Premium Tax Liability; Requirements for Regional Home Office Tax Credits

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.05, 624.509-.510 FS. History–New 2-3-80, Amended 4-28-83, Formerly 12B-8.05, Repealed 3-25-90.

Fla. Admin. Code R. 12B-8.006 State Fire Marshal Regulatory Assessment and Surcharge; Levy and Amount

(1)(a)1.a. In addition to any other license or excise tax, a regulatory assessment is assessed and imposed upon every domestic, foreign, and alien insurer authorized to issue policies of fire insurance in Florida.

b. The assessment is at the rate of 1 percent of the gross amount of premiums collected by each such insurer on policies of fire insurance issued by it and insuring property in Florida, unless the regulatory assessment is amended by the Office of Insurance Regulation, as set forth in Section 624.517, F.S.

2.a. Each insurer authorized to transact insurance business in Florida is required to remit a .1 percent surcharge on all gross direct fire, allied lines, and multiperil insurance premiums written on commercial property located within Florida.

b. To calculate the surcharge to be remitted, each insurer must use the premium amounts reported on the “Exhibit of Premiums and Losses,” Statutory Page 14, of the Annual Statement required to be filed with the Florida Office of Insurance Regulation. On or before March 1, each insurer authorized to transact insurance business in Florida must file an Insurance Premium Taxes and Fees Return with the Department of Revenue showing the gross amount of premiums collected for the preceding year and the amount of assessment and surcharge imposed. A final payment for tax due for the year must be made at the time the insurer files the annual return. No credits are allowed against the tax imposed upon fire insurance assessments.

(b) The gross amount of receipts subject to tax under the provisions of paragraph (1)(a) do not include amounts sufficient to recoup any assessments that have been paid by the insurer to defray deficits of a joint underwriting association or assigned risk plan under Sections 627.311 and 627.351, F.S., net of any earnings returned to the insurer by the association or plan. This recoupment provision is only applicable to insurers whose rates are filed with the Office of Insurance Regulation under Section 627.062, 627.0651 or 627.072, F.S.

(2) “Fire insurance” includes insurance of structures or other property at fixed locations against loss or damage to such structures or other described properties from the risks of fire and lightning. “Multiperil insurance” means a combination or package policy which includes both property and casualty coverage for a single premium.

(3) For purposes of the regulatory assessment, every insurer issuing policies of insurance covering the peril of fire on properties located in Florida must determine the gross amount of premium applicable to the peril of fire by multiplying the premium amounts reported on the “Exhibit of Premiums and Losses,” Statutory Page 14, Annual Statement, as follows:

(a) Fire, Line 1 – ninety-three percent (93%).

(b) Allied Lines, Line 2.1 – five percent (5%).

(c) Multiple Peril Crop, Line 2.2 – zero percent (0%).

(d) Farmowners multiple peril, Line 3 – fifteen percent (15%).

(e) Homeowners multiple peril, Line 4 – twenty-five percent (25%).

(f) Commercial multiple peril, Lines 5.1 and 5.2 – fifteen percent (15%).

(g) Ocean Marine, Line 8 – ten percent (10%).

(h) Inland Marine, Line 9.1 – twelve percent (12%).

(i) Earthquake, Line 12 – 5 percent (5%).

(j) All other fire premiums – as supported by insurer’s verifiable documentation.

(k) Despite other provisions of this subsection, where the books and records of the insurer can clearly show without exception a lesser percentage, the insurer may apply the lesser percentage.

(4) For purposes of the surcharge, the surcharge factor of .001 should be applied to the amounts reported on the “Exhibit of Premiums and Losses,” Statutory Page 14, Annual Statement, column 1, Direct Premiums Written, for the following line items:

(a) Fire, Line 1.

(b) Allied lines, Line 2.1.

(c) Multiple peril crop, Line 2.2.

(d) Farmowners multiple peril, Line 3.

(e) Commercial multiple peril, Lines 5.1 and 5.2.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 624.509, 624.510, 624.511, 624.515, 624.516 FS. History–New 2-3-80, Formerly 12B-8.06, Amended 4-10-91, 2-18-93, 12-9-97, 7-31-03, 12-25-08, 1-25-12, 12-29-25.

Fla. Admin. Code R. 12B-8.007 Deposit of Certain Tax Receipts; Refund of Improper Payments

History

• Rulemaking Authority 20.21(5) FS. Law Implemented 624.521 FS. History–New 2-3-80, Formerly 12B-8.07, Repealed 1-25-12.

Fla. Admin. Code R. 12B-8.008 “Life Insurance”, “Life Insurer” Defined

History

• Rulemaking Authority 20.21(5) FS. Law Implemented 624.509-.515, 624.602 FS. History–New 2-3-80, Formerly 12B-8.08, Repealed 1-2-96.

Fla. Admin. Code R. 12B-8.009 “Disability Insurance” Defined

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 213.05, 624.509, 624.5092, 624.603 FS. History–New 2-3-80, Formerly 12B-8.09, Amended 3-25-90, Repealed 1-2-96.

Fla. Admin. Code R. 12B-8.010 “Property Insurance” Defined

History

• Rulemaking Authority 20.21(5) FS. Law Implemented 624.509-.515, 624.604 FS. History–New 2-3-80, Formerly 12B-8.10, Repealed 1-2-96.

Fla. Admin. Code R. 12B-8.011 “Casualty Insurance” Defined

History

• Rulemaking Authority 20.21(5) FS. Law Implemented 624.509-.515, 624.604 FS. History–New 2-3-80, Formerly 12B-8.11, Repealed 1-2-96.

Fla. Admin. Code R. 12B-8.012 “Surety Insurance” Defined

History

• Rulemaking Authority 213.06 FS. Law Implemented 213.05, 624.509, 624.5092, 624.606 FS. History–New 2-3-80, Formerly 12B-8.12, Amended 3-25-90, Repealed 1-2-96.

Fla. Admin. Code R. 12B-8.013 “Marine”, “Wet Marine” and “Transportation” Insurance Defined

History

• Rulemaking Authority 20.21(5) FS. Law Implemented 624.509-.515, 624.608 FS. History–New 2-3-80, Formerly 12B-8.13, Repealed 1-2-96.

Fla. Admin. Code R. 12B-8.014 “Title Insurance” Defined

History

• Rulemaking Authority 20.21(5) FS. Law Implemented 624.509-.515, 624.608 FS. History–New 2-3-80, Formerly 12B-8.14, Repealed 1-2-96.

Fla. Admin. Code R. 12B-8.015 Payment by Electronic Funds Transfer

History

• Rulemaking Authority 20.21(5), 213.06(1) FS. Law Implemented 213.755, 624.511, 624.518 FS. History–New 12-19-89, Amended 12-9-97, Repealed 1-1-24.

Fla. Admin. Code R. 12B-8.016 Retaliatory Provisions

(1) When by or pursuant to the laws of any other state or foreign country any taxes, licenses, and other fees, in the aggregate, and any fines, penalties, deposit requirements, or other material obligations, prohibitions, or restrictions are or would be imposed upon Florida insurers or upon the agents or representatives of such insurers which are in excess of such taxes, licenses, and other fees, in the aggregate, or which are in excess of the fines, penalties, deposit requirements, or other obligations, prohibitions, or restrictions directly imposed upon similar insurers, or upon the agents or representatives of such insurers, of such other state or country under the statutes of this state, so long as such laws of such other state or country continue in force or are so applied, the same taxes, licenses, and other fees, in the aggregate, or fines, penalties, deposit requirements, or other material obligations, prohibitions, or restrictions of whatever kind shall be imposed by the department upon the insurers, or upon the agents or representatives of such insurers, of such other state or country doing business or seeking to do business in this state.

(2) In determining the retaliatory taxes to be imposed, the net premium tax is used as a starting point. Eighty percent of the salary credit provided by Section 624.509(5), F.S., shall be added back to the State of Florida portion of the net premium tax for retaliatory calculations only.

(3)(a) Other items which shall be included in the retaliatory calculations are:

1. The excise taxes imposed under Sections 175.101 and 185.08, F.S., as well as comparable taxes in other states.

2. The State Fire Marshal Regulatory Assessment imposed under Section 624.515, F.S., as well as comparable assessments in other states.

3. The Florida corporate income tax (CIT) imposed under Chapter 220, F.S., as well as comparable taxes in other states. Insurers must use the prior year’s taxable income and resulting CIT liability when calculating Florida’s aggregate taxes. However, the insurer must use the income from the taxable year applicable for calculating any CIT in its state of incorporation. Such taxable years may vary depending upon the individual state’s taxing statutes. These taxable years may reflect the prior year’s taxable income or the current year’s taxable income.

4. Deductions from premium taxes or other taxes otherwise payable, allowed because of real estate or personal property taxes paid.

5. That portion of the Florida Insurance Guarantee Association assessment that was imposed upon the insurer’s property insurance policies, as such insurance is defined in Section 624.604, F.S. Likewise, if the state of domicile would impose a comparable assessment on a similar Florida insurer the foreign or alien insurer must include that portion of the state of domicile’s assessment that would relate to the similar insurer’s property insurance premiums.

a. For purposes of calculating a foreign or alien insurer’s includable portion of its Florida Insurance Guarantee Association assessment, such insurer should take the amount of premiums which can be classified as property insurance under Section 624.604, F.S., that are subject to the assessment and divide them by the total premiums subject to the assessment. The resulting percentage would then be multiplied by the insurer’s Florida Insurance Guarantee Association assessment to determine the portion of the assessment that may be added back for retaliatory tax purposes. This process is completed for each Florida Insurance Guarantee Association assessment.

b. The Florida Insurance Guarantee Association assessments to be used in the calculations, as well as the state of domicile’s comparable assessment retaliatory tax add backs, if any, are those assessments due and payable during the taxable year.

6. Any other taxes, licenses, fees, fines, penalties, deposit requirements, material obligations, prohibitions, or restrictions which are or would be imposed upon Florida insurers or upon the agents or representatives of such insurers doing business in the foreign insurers’ state of domicile, or upon foreign insurers or the agents or representatives of such insurers doing business in Florida, except for:

a. Personal income taxes.

b. Sales and use taxes.

c. Ad valorem taxes on real or personal property.

d. Special purpose obligations or assessments imposed in connection with particular kinds of insurance other than property insurance.

e. Reimbursement premiums paid to the Florida Hurricane Catastrophe Fund.

f. Emergency assessments paid to the Florida Hurricane Catastrophe Fund.

(b) Special purpose obligations as used in this rule means those obligations or assessments the funds from which are for the benefit of certain parties, and not for the benefit of all citizens generally. Generally, such obligations will not materially involve general tax revenues, appropriated funds or state monies.

1. Using this definition, the following Florida assessments, as they are currently described in the Florida Statutes, would be considered special purpose obligations:

a. Workers’ compensation administrative assessment.

b. Workers’ compensation special assessment.

c. Florida Life and Health Guarantee Association assessment.

d. Florida Insurance Guarantee Association assessment.

e. Florida Comprehensive Health Association assessment.

f. State Fire Marshal regulatory assessment.

g. State Fire Marshal college surcharge.

2. Since Section 624.5091(3), F.S., provides that special purpose obligations or assessments imposed in connection with particular kinds of insurance other than property insurance are to be excluded from the retaliatory tax calculation, only the State Fire Marshal regulatory assessment, the State Fire Marshal college surcharge, and the portion of the Florida Insurance Guarantee Association assessment that was imposed upon the insurer’s property insurance policies, can be included in the retaliatory tax calculation. The workers’ compensation fund’s administrative and special purpose assessments, and the Florida Life and Health Guarantee Association assessment cannot be included in the retaliatory tax calculation, since the assessments are imposed on insurance other than property insurance. NOTE: The $2 and $4 surcharge imposed under Section 252.372, F.S., is not to be included in the retaliatory tax calculation, since it is imposed on the insured.

(c) Taxes in other states shall be computed using the tax laws of those states, but shall be based on the insurer’s Florida premium volume, personnel, and property.

(4) The amount of any deduction against premium taxes granted under Section 440.51, F.S., as well as comparable deductions in other states shall be added back to net premium taxes.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 624.509, 624.5091, 624.5092 FS. History–New 3-25-90, Amended 4-10-91, 12-9-97, 3-23-98, 10-15-01, 6-1-09, 1-25-12.

Chapter 12B-11 TAX ON GROSS RECEIPTS ON DRY-CLEANING

Fla. Admin. Code R. 12B-11.001 Implementation of the Tax on Gross Receipts on Dry-Cleaning Facilities and Dry Drop-Off Facilities

(1) Scope. The purpose of this rule is to implement the provisions of Sections 376.301, 376.70 and 376.71, F.S., which impose a tax on the gross receipts of dry-cleaning facilities, hereafter referred to as the gross receipts tax or tax.

(2) For purposes of administering, collecting, and enforcing the gross receipts tax, all rules relating to Sales and Use Tax (Chapter 12A-1, F.A.C.) shall have the same effect with respect to the gross receipts tax except in those situations where rules relating to the gross receipts tax have been issued to clarify specific statutory provisions.

(3) Where any conflicting language exists between this rule and Chapter 12A-1, F.A.C., the provisions of this rule are controlling.

History

• Rulemaking Authority 213.06(1), 376.70(6)(b) FS. Law Implemented 376.301(14), (15), (16), (23), 376.70, 376.71 FS. History–New 2-19-95, Amended 6-19-96, 6-28-05.

Fla. Admin. Code R. 12B-11.0011 Gross Receipts Tax on Dry-Cleaning Facilities and Dry Drop-Off Facilities

(1)(a) A gross receipts tax is levied at a rate of 2 percent on the total receipts received by dry-cleaning facilities, as defined in Section 376.301(14), F.S., and received by dry drop-off facilities, as defined in Section 376.301(16), F.S., for the privilege of engaging in the business of dry-cleaning or laundering of clothing or other fabrics in Florida.

(b) The gross receipts tax does not apply to receipts from:

1. Coin-operated laundry machines;

2. Coin-operated dry-cleaning machines, unless operated at an establishment primarily engaged in the business of dry-cleaning clothing and other fabrics;

3. Laundering done on a wash, dry, and fold basis;

4. Uniform rental companies; or

5. Linen supply companies.

(2) Gross receipts arising from the charges for services subject to the gross receipts tax to any person who imposes charges to others for the same services are exempt. Dry-cleaning and dry drop-off facilities must document exempt sales made for the purposes of resale by obtaining a resale certificate from each dry-cleaning or dry drop-off facility that purchases services for purposes of resale of the same service. The selling facility is only required to obtain one resale certificate from each customer making purchases for the purposes of resale. The following is a suggested format of a resale certificate:

RESALE CERTIFICATE FOR GROSS RECEIPTS TAX

ON LAUNDERING AND DRYCLEANING SERVICES

This is to certify that the services purchased on or after ________ (date) from _______________ (name) are being purchased for the purposes of resale pursuant to Section 376.70(6), F.S.

NAME OF PURCHASING FACILITY:__________________________________________________________________________

PURCHASING FACILITY’S ADDRESS:________________________________________________________________________

CERTIFICATE OF REGISTRATION NUMBER: _________________________________________________________________

EFFECTIVE DATE OF CERTIFICATE: ________________________________________________________________________

I understand that if I fraudulently issue this certificate to evade the payment of gross receipts tax on dry-cleaning services I will be liable for payment of the tax directly to the Department plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

---

SIGNATURE OF PURCHASER OR PURCHASER’S AGENT

---

TITLE

---

DATE

(3) Dry-cleaning facilities and dry drop-off facilities that include in the total retail charge to a customer the cost of the tax shall separately state the tax on the customer’s bill. However, the total charged to the customer will be considered a part of the gross receipts upon which the tax is calculated. The dry-cleaning facility or dry drop-off facility remains fully and completely liable for the tax, even if the tax is separately stated as a line item or component of the total bill. When the tax is separately stated as a line item or component of the customer’s bill, the customer’s bill is required to contain a statement that the imposition of the tax was requested by the Florida Dry Cleaners Coalition.

(4)(a)1. Example: ABC dry-cleaning facility’s total receipts from a customer are $100 for dry-cleaning services. The bill received by the customer indicates that the total charge is $100. The tax rate is 2 percent. ABC dry-cleaning would remit a tax of $2.00 to the Department, 2 percent of the $100 charge to the customer.

2. Example: ABC dry-cleaning facility’s total receipts from a customer are $102.00 for dry-cleaning services. The tax rate is 2 percent. The bill received by the customer indicates a charge of $100 for dry-cleaning services and a separate line item charge of $2.00 for the gross receipts tax on dry-cleaning. The total charge to the customer is $102.00. ABC dry-cleaning would remit a tax of $2.04 to the Department, 2 percent of the $102.00 charge to the customer. The customer’s bill is required to contain a statement that the imposition of the tax was requested by the Florida Dry Cleaners Coalition.

(b) Example: ABC Cleaners operates a dry-cleaning facility that receives items for dry-cleaning and laundering at the main wet location. It also owns and operates three dry drop-off facilities (satellite locations) which also take in items for dry-cleaning and laundering at the dry-cleaning facility. ABC Cleaners must remit the tax on all the receipts received from its customers, including the receipts from the dry-cleaning facility and the three dry drop-off facilities. The three dry drop-off facilities are not required to issue a resale certificate to the dry-cleaning facility.

Calculation of the Gross Receipts Tax for ABC’s locations:

Dry-cleaning facility (wet plant) receipts

$5,000

Dry drop-off facility #1 (ABC owned) receipts

$1,000

Dry drop-off facility #2 (ABC owned) receipts

$1,200

Dry drop-off facility #3 (ABC owned) receipts

$1,500

Total Receipts Collected

$8,700

Tax Rate

 2.0%

Tax Due from ABC

$174.00

(c) Example: XYZ Cleaners operates a dry-cleaning facility that receives items for dry-cleaning and laundering at the main wet location. It also owns and operates one dry drop-off facility (satellite location) that also takes in items for dry-cleaning and laundering at the dry-cleaning facility. XYZ Cleaners also dry-cleans and launders items for two independent dry drop-off facilities. XYZ Cleaners must remit the tax on all the receipts received from its customers, including the receipts from the dry-cleaning facility and the one dry drop-off facility that it owns. The two independent dry drop-off facilities are required to be registered with the Department for the gross receipts tax and to issue a resale certificate to XYZ Cleaners. XYZ Cleaners must obtain resale certificates from the two independent dry drop-off facilities to exempt the receipts from the two independent dry drop-off facilities.

Calculation of the Gross Receipts Tax for XYZ’s locations:

Dry-cleaning facility (wet plant) receipts

$3,000

Dry drop-off facility #1 (XYZ owned) receipts

$2,000

Dry drop-off facility #1 (independent) receipts

$1,700

Dry drop-off facility #2 (independent) receipts

$1,300

Total Receipts Collected – XYZ Cleaners

$5,000

Tax Rate

 2.0%

Tax Due from XYZ Cleaners

$100.00

Total Receipts Collected - Independent #1

$1700

Tax Rate

× 2.0%

Tax Due from Independent #1

$34.00

Total Receipts Collected - Independent #2

$1300

Tax Rate

× 2.0%

Tax Due from Independent #2

$26.00

(d) Example: DEF, a dry drop-off facility pays for XYZ, a dry-cleaning facility, to dry-clean and launder clothing for its customers. DEF is required to be registered for the gross receipts tax on dry-cleaning and to issue a resale certificate to XYZ. The tax due on the transaction is on the receipts received by DEF from its customers.

Calculation of the Gross Receipts Tax for DEF (dry drop off facility) and XYZ (dry cleaning facility):

XYZ’s receipts received from charges to DEF

$1,000

XYZ’s Tax Due (Resale Certificate Received)

$0

DEF’s receipts received from customers

$1,100

Tax Rate

× 2.0%

DEF’s Tax Due

$22.00

History

• Rulemaking Authority 213.06(1), 376.70(6)(b) FS. Law Implemented 376.301(14), (15), (16), (23), 376.70, 376.71 FS. History–New 6-19-96, Amended 6-28-05.

Fla. Admin. Code R. 12B-11.002 Definitions

For purposes of this rule chapter:

(1) “Dry-cleaning” means to clean clothing or other fabrics with dry-cleaning solvents.

(2) “Dry-cleaning facility” means a commercial establishment that operates or has at some time in the past operated for the primary purpose of dry-cleaning clothing and other fabrics utilizing a process that involves any use of dry-cleaning solvents. The term “dry-cleaning facility” includes laundry facilities that use dry-cleaning solvents as part of their cleaning process. The term does not include a facility that operates or has at some time in the past operated as a uniform rental company or a linen supply company regardless of whether the facility operates as or was previously operated as a dry-cleaning facility.

(3) “Dry drop-off facility” means any commercial retail store located in this state that receives from customers clothing and other fabrics for dry-cleaning or laundering at an offsite dry-cleaning facility and that does not clean the clothing or fabrics at the store using dry-cleaning solvents.

(4) “Laundering” means to wash clothing or other fabrics using water and solvents in the cleaning process.

(5) “Laundering done on a wash, dry, and fold basis” means the service provided by the owner or operator of a coin-operated laundry to its customers whereby an employee of the coin-operated laundry accomplishes for the customer the tasks of washing, drying, and folding the customer’s clothing and other fabrics.

(6) “Linen supply service” means the furnishing to others of laundered or dry-cleaned clothing or other fabrics. Such clothing or other fabrics may belong to the person providing the service and be supplied to the user on a rental basis, or they may belong to others.

(7) “Uniform rental” means the supplying to others, on a rental basis, of laundered or dry-cleaned uniforms.

History

• Rulemaking Authority 213.06(1), 376.70(6)(b) FS. Law Implemented 376.301(14), (15), (16), (23), 376.70, 376.71 FS. History–New 2-19-95, Amended 6-19-96, 6-28-05.

Fla. Admin. Code R. 12B-11.003 Levy and Imposition of the Gross Receipts Tax

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS., Section 11, Chapter 94-355, Laws of Florida. Law Implemented 212.17(6), 212.18(2), 213.06(1) FS., Section 11, Chapter 94-355, Laws of Florida. History–New 2-19-95, Repealed 6-19-96.

Fla. Admin. Code R. 12B-11.004 Sales for Resale

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS., Section 11, Chapter 94-355, Laws of Florida. Law Implemented 212.17(6), 212.18(2), 213.756 FS., Section 11, Chapter 94-355, Laws of Florida. History–New 2-19-95, Repealed 6-19-96.

Fla. Admin. Code R. 12B-11.005 Registration

(1)(a) Every person desiring to engage in or conduct business in this state as a dry-cleaning facility or a dry drop-off facility must register with the Department and obtain a certificate of registration from the Department. Dry-cleaning facilities or dry drop-off facilities operating at more than one location are only required to obtain a single certificate from the Department.

(b)1. Example: A commercial establishment that operates a dry-cleaning facility and five dry drop-off facilities would only be required to have a single registration.

2. Example: A commercial establishment that operates seven dry drop-off facilities would only be required to have a single registration.

(2)(a) Registration with the Department for purposes of the gross receipts tax on dry-cleaning facilities is available by using one of the following methods:

1. Registering through the Department’s website at floridarevenue.com using the Department’s “eServices,” or

2. Filing a Florida Business Tax Application (Form DR-1, incorporated by reference in Rule 12A-1.097, F.A.C.) with the Department, as indicated on the form.

(b) Each application submitted to the Department must contain sufficient information to facilitate the processing of the application.

(3) Engaging in business as a dry-cleaning facility without first obtaining a certificate of registration or after such certificate has been cancelled by the Executive Director or the Executive Director’s designee is prohibited. The failure or refusal of any person to register is a misdemeanor of the first degree, punishable as provided in Section 775.082 or 775.083, F.S., or subject to injunctive proceeding as provided by law.

History

• Rulemaking Authority 213.06(1), 376.70(6)(b) FS. Law Implemented 376.70(2) FS. History–New 2-19-95, Amended 6-19-96, 4-17-03, 6-28-05, 1-17-18.

Fla. Admin. Code R. 12B-11.006 Returns and Filing Requirements

(1) Tax due on transactions:

(a) Businesses which maintain tax and accounting records on the basis of cash receipts may report this tax when payment is received. The tax is due on the first day of the month following the month that the consideration for the service is paid, if the accounting records are maintained on the basis of cash receipts.

(b) Businesses which maintain tax and accounting records on the accrual basis must report this tax in the month the receivable is recorded. The tax is due on the first day of the month following the month that the receivable for the service is recorded, if the accounting records are maintained on the accrual basis.

(c) The tax should be reported on the Solid Waste and Surcharge Return (form DR-15SW), incorporated by reference in Rule 12A-16.008, F.A.C.

(2)(a) Except as provided in rule Chapter 12-24, F.A.C., the payment and the Solid Waste and Surcharge Return (Form DR-15SW) must be delivered to the Department or be postmarked to avoid penalty and interest for late filing as follows:

1. On or before the 20th day of the month following the month in which the consideration is received, if the accounting records are maintained on the basis of cash receipts; or

2. On or before the 20th day of the month following the month in which the account receivable is posted, if the accounting records are maintained on the accrual basis.

3. If the 20th day falls on a Saturday, Sunday, or legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For the purpose of this rule, a legal holiday means a holiday that is observed by federal or state agencies as a legal holiday, as this term is defined in Chapter 683, F.S., and s. 7503, Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside of the District of Columbia but within an internal revenue district.

(b) Electronic filing of payments and returns for reporting tax must be submitted to the Department, as provided in rule Chapter 12-24, F.A.C., when:

1. Payment of the tax is required to be made by electronic means;

2. Any return for reporting tax is required to be submitted by electronic means; or

3. No tax is due with a return for reporting taxes.

(3) The failure of any dealer to secure a tax return for reporting tax due does not relieve the dealer form the requirement to file a return or remit tax due to the Department. The Department is not authorized to extend the time for any dealer to file any return or pay any tax due.

(4) Persons who are required to make a return or to pay tax on gross receipts on dry-cleaning imposed under Section 376.70, F.S., and administered under the provisions of Chapter 212, F.S., and fail to do so will be subject to penalties, as provided in Section 212.12(2), F.S., and to the interest imposed on deficiencies established under Section 213.235, F.S., and Rule 12-3.0015, F.A.C. Guidelines are provided in subsection (4) of Rule 12A-1.056, F.A.C.

History

• Rulemaking Authority 213.06(1), 376.70(6)(b) FS. Law Implemented 212.12(2), 213.235(2), 213.755, 376.70 FS. History–New 2-19-95, Amended 6-19-96, 4-17-03, 9-28-04.

Fla. Admin. Code R. 12B-11.007 Penalties, Interest

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS., Section 11, Chapter 94-355, Laws of Florida. Law Implemented 212.12(2)(a), (3) FS., Section 11, Chapter 94-355, Laws of Florida. History–New 2-19-95, Repealed 6-19-96.

Fla. Admin. Code R. 12B-11.008 Sale or Discontinuance of Business

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS., Section 11, Chapter 94-355, Laws of Florida. Law Implemented 212.10 FS., Section 11, Chapter 94-355, Laws of Florida. History–New 2-19-95, Repealed 6-19-96.

Fla. Admin. Code R. 12B-11.009 Public Use Form

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1), 376.70(6)(b) FS. Law Implemented 376.70(3) FS. History–New 2-19-95, Amended 6-19-96, Repealed 4-17-03.

Chapter 12B-12 TAX ON PERCHLOROETHYLENE

Fla. Admin. Code R. 12B-12.001 Scope of Rules

(1) The purpose of this rule is to implement the provisions of Section 376.75, F.S., which imposes a tax on the sale to or the importation by dry-cleaning facilities of perchloroethylene (tetrachloroethylene) hereafter referred as the perc tax or tax.

(2) For purposes of administering, collecting, and enforcing the tax, all rules relating to Sales and Use Tax (Chapter 12A-1, F.A.C.) shall have the same effect with respect to the perc tax except in those situations where rules relating to the perc tax have been issued to clarify specific statutory provisions.

(3) Where any conflicting language exists between this rule and Chapter 12A-1, F.A.C., the provisions of this rule are controlling.

History

• Rulemaking Authority 213.06(1), 376.75(9)(b) FS. Law Implemented 376.301(14), (15), (16), 376.75 FS. History–New 2-19-95, Amended 3-18-96.

Fla. Admin. Code R. 12B-12.002 Definitions. For purposes of this rule:

(1) “Importer” means any person who imports perc, or causes perc to be imported into Florida.

(2)(a) “Perchloroethylene” means a liquid solvent containing no less than 95 percent of the specific chemical compound designated as C12C=CC12 bearing Chemical Abstracts Service Registry Number 127-18-4 assigned by the American Chemical Society’s Chemical Abstracts Service.

(b) “Chemical Abstracts Service Registry Number 127-18-4” is the numeric designation assigned by the American Chemical Society’s Chemical Abstracts Service that uniquely identifies perchloroethylene.

(3) “Producer” means any person located in Florida who manufactures or produces perc.

History

• Rulemaking Authority 213.06(1), 376.75(9)(b) FS. Law Implemented 376.301(16), 376.75 FS. History–New 2-19-95, Amended 3-18-96.

Fla. Admin. Code R. 12B-12.003 Levy and Imposition of the Tax

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS., Section 12, Chapter 94-355, Laws of Florida. Law Implemented 212.17(6), 212.18(2), 213.06(1) FS., Section 12, Chapter 94-355, Laws of Florida. History–New 2-19-95, Repealed 3-18-96.

Fla. Admin. Code R. 12B-12.0031 Imposition of the Tax

(1) The tax is levied on perc sold to or imported by a dry-cleaning facility, as defined in Section 376.301(15), F.S., located in Florida.

(2)(a) All perc imported, produced, or sold in Florida, even if it is not sold to or imported by a dry-cleaning facility, is presumed to be subject to tax. The person importing, producing, or selling perc is required to register and become licensed with the Department.

(b)1. To demonstrate that the perc is not sold or transferred to a dry-cleaning facility for eventual use in a dry-cleaning facility located in Florida, the licensed dealer must obtain a certificate signed under penalty of perjury by a transferee of perc stating that the transferee does not own or operate a dry-cleaning facility or the transferee will not use the perc in a dry-cleaning facility in Florida.

2. The following is a suggested format of the certificate:

TRANSFER OR SALE OF PERCHLOROETHYLENE CERTIFICATE

This is to certify that the perchloroethylene transferred or sold on or after ________________ (month) (day) (year)

from ___________________________________________________ (name) is not to a dry-cleaning facility.

This certificate is to continue in force until revoked by written notice to the supplier.

Under the penalty of perjury, I declare that I have read the foregoing, and the facts alleged are true.

Purchaser __________________________________________________________________________________________________

Address ___________________________________________________________________________________________________

By _______________________________________________________________________________________________________

(Signature)

Date _________________________

(3) Any person selling or importing taxable perc and any other person who sells tax-paid perc, other than a retail dealer, must either:

(a) Separately state the amount of such tax paid on any charge ticket, sales slip, invoice, or other tangible evidence of the sale; or,

(b) Certify on the sales document that the tax has been paid.

(4) A dry-cleaning facility which separately states as a line item or component of the customer’s bill any portion of the tax is required to disclose on the customer’s receipt that the imposition of the tax was requested by the Florida Dry Cleaners Coalition.

History

• Rulemaking Authority 213.06(1), 376.75(9)(b) FS. Law Implemented 376.301(15), (16), 376.75 FS. History–New 3-18-96, Amended 1-5-00, 6-28-05.

Fla. Admin. Code R. 12B-12.004 Exemptions; Required Recordkeeping

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS., Section 12, Chapter 94-355, Laws of Florida. Law Implemented 212.17(6), 212.18(2), 213.06(1) FS., Section 12, Chapter 94-355, Laws of Florida. History–New 2-19-95, Repealed 3-18-96.

Fla. Admin. Code R. 12B-12.005 Registration

(1)(a) Every person must file a Florida Fuel or Pollutants Tax Application (Form DR-156, incorporated by reference in Rule 12B-5.150, F.A.C.), with the required attachments, with the Department for a pollutant license before producing, selling, importing, or causing perc to be imported into Florida and obtain a pollutant license from the Department.

(b) Each license is required to be renewed annually by filing form DR-156R, Renewal Application for Florida Fuel/Pollutants License (incorporated by reference in Rule 12B-5.150, F.A.C.), and the required attachments with the Department, as provided in the renewal application.

(2) Producing in, importing into, selling in, or causing perc to be imported into Florida for any purpose without first obtaining a license or after such license has been canceled by the Executive Director or the Executive Director’s designee is prohibited.

History

• Rulemaking Authority 213.06(1), 376.75(9)(b) FS. Law Implemented 376.75(2) FS. History–New 2-19-95, Amended 3-18-96, 4-17-03, 3-25-20, 12-29-25.

Fla. Admin. Code R. 12B-12.006 Returns and Filing Requirements

(1)(a) When perc is sold in Florida, the tax is due to the Department on the first day of the month following the month of sale.

(b) When a person who has purchased perc for use in a dry-cleaning facility in Florida cannot document that the tax has been paid, the tax is due to the Department on the first day of the month following the month of purchase or importation.

(c) The tax is required to be reported on the Pollutant Tax Return (form DR-904, incorporated by reference in Rule 12B-5.150, F.A.C.).

(2)(a) Except as provided in Rule Chapter 12-24, F.A.C., the payment and the Pollutant Tax Return (form DR-904, incorporated by reference in Rule 12B-5.150, F.A.C.) must be delivered to the Department or be postmarked on or before the 20th day of the month following the month of the taxable transaction to avoid penalty and interest for late filing. If the 20th day falls on a Saturday, Sunday, or legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For this purpose, a legal holiday means a holiday that is observed by federal or state agencies as a legal holiday, as this term is defined in Chapter 683, F.S., and s. 7503 Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) Electronic filing of payments and returns must be submitted to the Department, as provided in rule Chapter 12-24, F.A.C., when:

1. Payment of the tax is required to be made by electronic means;

2. Any return for reporting tax is required to be submitted by electronic means; or

3. No tax is due with a return for reporting tax.

(3) Persons who are required to make a return or to pay tax on perc imposed under Section 376.75, F.S., and administered under the provisions of Chapter 212, F.S., and fail to do so will be subject to penalties, as provided in Section 212.12(2), F.S., and to the interest imposed on deficiencies established under Section 213.235, F.S., and Rule 12-3.0015, F.A.C. Guidelines are provided in subsection (4) of Rule 12A-1.056, F.A.C.

History

• Rulemaking Authority 213.06(1), 376.75(9)(b) FS. Law Implemented 212.12(2), 213.235(1), 213.755, 376.75 FS. History–New 2-19-95, Amended 3-18-96, 4-2-00, 4-17-03, 9-28-04.

Fla. Admin. Code R. 12B-12.007 Refunds and Credits; Recordkeeping Requirements

(1) The person who paid the tax directly to the Department may apply for a refund or take a credit for such amount, on any subsequent tax return, for the tax paid:

(a) If the perc is exported from Florida; or

(b) If the perc was acquired for purposes other than use in a dry-cleaning facility in Florida.

(2)(a) Any person entitled to a refund of tax paid on perc to the Department must file an Application for Refund (Form DR-26, incorporated by reference in Rule 12-26.008, F.A.C.) with the Department within 3 years after the date the tax was paid. Form DR-26 must meet the requirements of Sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C.

(b) Any refund application submitted must be accompanied by:

1.a. Copies of original sales invoices and other signed shipping and delivery documents for a sale in interstate or foreign commerce; plus,

b. For a sale in foreign commerce, copies of certified export declarations from the United States Customs Office and the bills of lading showing that the tax being claimed for refund was paid to the Department.

2. Documentary evidence the tax has been refunded, by the applicant, to the person who incurred the burden of the tax.

(3) Any person who is entitled to a refund of tax paid on perc may, instead of applying to the Department for a refund, take a credit for such amount on any subsequent tax return. For a credit to be valid, the following records of the transaction must be maintained by the person claiming the credit.

(a)1. Copies of original sales invoices and other signed shipping and delivery documents for a sale in interstate or foreign commerce; plus,

2. For a sale in foreign commerce, copies of certified export declarations from the United States Customs Office and the bills of lading showing that the tax being claimed for a credit was paid to the Department.

(b) Documentary evidence the tax has been refunded, by the applicant, to the person who incurred the burden of the tax.

(4) Any person who has paid tax on perc when no tax is due must secure the refund from the person who paid the tax directly to the Department and not from the Department.

History

• Rulemaking Authority 213.06(1), 376.75(9)(b) FS. Law Implemented 376.75(11) FS. History–New 2-19-95, Amended 3-18-96, 4-17-03, 5-9-13.

Fla. Admin. Code R. 12B-12.008 Sale or Discontinuance of Business

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS., Section 12, Chapter 94-355, Laws of Florida. Law Implemented 212.10 FS., Section 12, Chapter 94-355, Laws of Florida. History–New 2-19-95, Repealed 3-18-96.

Fla. Admin. Code R. 12B-12.009 Public Use Forms

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1), 376.75(9)(b) FS. Law Implemented 376.75(8) FS. History–New 2-19-95, Amended 3-18-96, Repealed 4-17-03.

Division 12D Property Tax Oversight Program

Chapter 12D-1 GENERAL RULES

Fla. Admin. Code R. 12D-1.001 Reference to Statutes

History

• Rulemaking Authority 195.027 FS. Law Implemented 195.027 FS. History–New 10-12-76, Formerly 12D-1.01, Repealed 2-25-96.

Fla. Admin. Code R. 12D-1.002 Definitions

Unless otherwise stated or unless otherwise clearly indicated by the context in which a particular term is used, all terms used in this chapter shall have the same meanings as are attributed to them in the current F.S. In this connection, reference is made to the definitions contained in Sections 192.001, 196.012, and 197.102, F.S.

(1) “Assessment Roll” – A systematic listing of information for the orderly levying or imposition of a tax on property including, among other things, the name of the party assessed, the description of the property, the value as fixed by the property appraiser or other proper tribunal, the millage levied for various purposes by the proper authority, and the amount of tax. The term “tax roll” may be used interchangeably with “assessment roll.”

(2) “Just Value” – “Just Valuation”, “Actual Value” and “Value” – Means the price at which a property, if offered for sale in the open market, with a reasonable time for the seller to find a purchaser, would transfer for cash or its equivalent, under prevailing market conditions between parties who have knowledge of the uses to which the property may be put, both seeking to maximize their gains and neither being in a position to take advantage of the exigencies of the other.

(3) “Livestock” – Animals kept or raised for use or pleasure, especially farm animals kept for use and profit. Livestock is further defined as those kinds of domestic animals and fowls which are normally susceptible to confinement within boundaries without seriously impairing their utility, and the intrusion of which upon the land of others normally causes harm to land or to crops thereon.

(4) “Taxpayer” – The person or other legal entity in whose name the property is assessed. The terms “owner” and “possessor” may be used interchangeably with “taxpayer” where the context so indicates.

(5) “Tax Roll” or “Tax Rolls” – The term “tax roll” or “tax rolls” may be used interchangeably with “assessment roll” or “assessment rolls.”

(6) “Assessed value of property” – When applied to homestead property, means the assessed value as limited by Article VII, Section 4(d) of the State Constitution.

(7) “Homestead” and “Homestead Property” – Means that property described in Article VII, Section 6(a) of the State Constitution.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.001, 193.085, 193.461 FS. History–New 10-12-76, Formerly 12D-1.02, Amended 12-27-94, 2-25-96.

Fla. Admin. Code R. 12D-1.003 Situs of Personal Property for Assessment Purposes

Personal property not specifically addressed by this rule shall be assessed at its tax situs as determined pursuant to Sections 192.001(11), 192.032 and 192.042 of the F.S.

(1) Tangible personal property physically located in a county on January 1 on a temporary or transitory basis which is habitually located or typically present in another county, may be taxed by either, but not both, of such counties.

(a) If the tangible personal property is included in a tax return filed in the county where the property is habitually located or typically present, that county shall tax the property. It shall be the duty of the owner of the property to file a copy of the return in the county where the property is habitually located or typically present, with the property appraiser of the county in which, on January 1, the property is habitually located or typically present. The copy shall identify the property included in the return and shall be accompanied by a written statement by the signer of the return that the return has actually been filed with the property appraiser of the county in which the property is habitually located or typically present.

(b) If the owner of tangible personal property temporarily or transitorily located in a county on January 1, fails or refuses to file a copy of the return and a statement by the signer as provided in paragraph (a), with the property appraiser of that county, the appraiser shall place the property on the Tangible Personal Property Assessment Roll for the county.

(c) The following definitions are applicable to this rule:

1. The phrase “habitually located or typically present” shall mean the place where an object is generally kept for use or storage, the place to which an object is consistently returned by its owner for use or storage.

2. The term “temporarily and transitorily located” shall mean the place where an object is found for a short duration for limited utilization with an intention to remove the same to another place where it is usually used or stored.

(2) Inventory or other goods in interstate transit shall not be deemed to have acquired a taxable situs within a county even though the inventory or other goods are temporarily halted or stored within the state. However, when the inventory or other goods reach their ultimate destinations and become parts or property to be sold, leased, or otherwise used or processed in the state, interstate transit terminates and the property is subject to taxation in the county in which it is located. Inventory or other goods located in a warehouse or other storage facility within the state is subject to assessment and taxation at its location, unless such storage is merely temporary and an incident to transit to another state or foreign country. Goods located in a storage facility which belongs to a wholesaler, distributor, importer, or jobber that operates in this state, among others, although not necessarily selling or distributing such goods in this state, shall be deemed to have reached their ultimate destination.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.001, 192.011, 192.032, 192.042 FS. History–New 10-12-76, Formerly 12D-1.03, Amended 12-31-98.

Fla. Admin. Code R. 12D-1.004 Returns, Applications and Other Information (not Including Applications for Exemptions) Required to Be Filed with the Property Appraiser

(1) The following returns shall be filed according to the following schedule in each county which is the situs of the property, on forms and in compliance with the instructions for their use prescribed by the Department.

(a) Outdoor recreational or park lands. The owner of lands assessed as outdoor recreational or park lands, under Section 193.501, F.S., shall, on or before March 1 of each year, file with the property appraiser a written statement that the lands were utilized for such purposes on January 1.

(b) Pollution control devices. The owner of lands assessed under Section 193.621, F.S., relating to pollution control devices, shall, on or before April 1 of each year, file a return in the manner and form prescribed by the Department. The Department prescribes Form DR-492, Return of Pollution Control Devices for Ad Valorem Tax Purposes, incorporated in Rule 12D-16.002, F.A.C., by reference.

(c) Mineral, oil and gas or other subsurface rights, assessed under Section 193.481, F.S., by owner of the surface fee. The owner of real property who also owns mineral, oil, gas or other subsurface mineral rights to the same property shall, on or before April 1 of each year, file with the property appraiser a request in the manner and form prescribed by the Department of Revenue in order to have such mineral, oil, gas or other subsurface mineral rights separately assessed from the remainder of the real estate as a separate item on the tax roll. Failure to file the above request, on or before April 1 of each year, shall relieve the property appraiser of the duty to assess mineral, oil, gas or other subsurface rights separately from the remainder of the real estate owned by the owner of such mineral, oil, gas or other subsurface rights. The Department prescribes Form DR-508, Application for Separate Assessment of Mineral, Oil, and Other Subsurface Rights, incorporated in Rule 12D-16.002, F.A.C., by reference.

(d) Property subject to a conservation easement, qualified and designated as environmentally endangered by resolution of the governing board of a municipality or county, or designated as conservation land in a comprehensive plan adopted by the appropriate municipal or county governing board. The owner of property so designated may, on or before March 1 of each year, petition the property appraiser in the manner and form prescribed by the Department of Revenue, for a reclassification and reassessment of the land pursuant to Section 193.501, F.S. See Rule 12D-8.001, F.A.C. The Department prescribes Form DR-482C, Land Used for Conservation, incorporated in Rule 12D-16.002, F.A.C., by reference.

(e) Every person or organization who has the legal title to houses of public worship, the lots on which they are located, personal property located thereon or therein, every parsonage, house of public worship owned burial grounds and tombs, and all other such property not rented or hired out for other than religious or educational purposes at any time, shall, on or before April 1 of each year, file a return of such property in the manner and form prescribed by the Department with the property appraiser of the county in which the property is located.

(2) All state and governmental entities, including all departments (boards, authorities, agencies, commissions, etc.) of state governments, and all forms of local government (including county commissions, school boards, commissions, authorities, and agencies of a public or quasi-public nature), special taxing districts, multi-county districts and municipalities, shall, on or before April 1, furnish to the several property appraisers of this state a list of real property owned. Such list shall include a description sufficient to identify the same and an estimate of the value of the same. The list may include only the property which has been acquired or disposed of by the governmental entity since the filing of the previous return or list, and shall be due on or before April 1 of each year.

(3) An assessment may not be contested unless a return, as required by Section 193.052, F.S., is timely filed by the taxpayer.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.052, 193.062, 193.085, 193.481, 193.501, 193.621, 196.011, 196.193 FS. History–New 10-12-76, Formerly 12D-1.04, Amended 12-31-98, 9-19-17.

Fla. Admin. Code R. 12D-1.005 Access to Financial Records

(1) The property appraiser of each county, duly authorized representatives of the Department, and duly authorized representatives of the Auditor General shall have the right to inspect and copy financial records relating to non-homestead property which are reasonably necessary to determine the property assessment of the property in question.

(a) Access to a taxpayer’s records shall be provided only where it is determined that such records are necessary to determine the classification or value of the taxable non-homestead property.

(b) This section shall apply to all real and personal property physically located within the state, and within the county in question on January 1 of the year for which inspection is sought.

(c) The types of records which this section covers shall include, but not be limited to, the following in the case of real property:

1. Profit and loss statements;

2. Income tax returns of the person, firm or corporation operating the property;

3. Leases of tenants in possession of property, both before and after the January 1 valuation date;

4. Casualty insurance policies insuring the premises against damage from fire and other hazards;

5. Any financial statements of any person, firm or corporation having an interest in the property in which the property or an interest in it is listed as an asset;

6. Mortgage note and other instruments made in connection with mortgages placed on the property, such as loan applications;

7. Ledgers showing construction expenses of any improvements made to the property, and contracts for the construction or reconstruction of improvements made to the property, and contracts for the construction or reconstruction of improvements or additions to the property;

8. Closing statement between buyer and seller pertaining to the most recent purchase of the property in question;

9. Appraisals made on the property in connection with obtaining mortgage financing or the sale thereof.

(d) The types of records which this section covers shall include, but not be limited to, the following in the case of personal property:

1. Profit and loss statements;

2. Invoices from purchase of the property in question;

3. Inventories;

4. Federal Income Tax returns for the entity owning the property, including depreciation schedules;

5. General journal and ledgers showing date of acquisition and installed price for commercial personal property;

6. Financial statements for the business in connection with which the property is used, including balance sheets;

7. Insurance policies insuring the property in question against casualty loss;

8. Leases for leased property;

9. Records by which to determine the value of inventory, such as opening inventories, acquisitions, sales, cost of goods sold.

(2) The following procedures shall govern access to the records of a taxpayer:

(a) The property appraiser or his duly authorized representative, the duly authorized representative of the Department, or the duly authorized representative of the Auditor General shall make request, in writing, of the taxpayer and shall specify in general the records requested.

(b) The request shall state the purpose of the request, and the time and place at which the records shall be produced by the taxpayer. If the records are located without the county, the taxpayer shall have ten (10) days following the request in which to make them available for inspection and copying.

(c) All records produced under this section shall be returned to the taxpayer as expeditiously as possible under the circumstances, after examination by the requesting agency.

(d) In the event the taxpayer shall refuse, after written demand, to make production of the books and records requested, the requesting agency shall have the right to proceed with an original action in the Circuit Court for an application to the court for a subpoena duces tecum and production of the records in question.

(3) All records produced by the taxpayer under this rule shall be deemed to be confidential in the hands of the property appraiser, the Department, and the Auditor General and shall not be divulged to any person, firm or corporation.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.011, 195.027 FS. History–New 10-12-76, Formerly 12D-1.05, Amended 12-28-95.

Fla. Admin. Code R. 12D-1.006 Exchange of Information Among Appraisers, Tax Collectors, Department, Auditor General, and Other States

(1) In accordance with Section 195.084, F.S., and upon written request to the Executive Director reasonably specifying the data requested, the Auditor General, tax collector, or property appraiser may obtain data collected or generated by the Department which has to do with values of property in the counties or which pertain to levels of just valuation as required by the Constitution or statutes.

(2) Before any records of the Department, which are of a confidential nature, or which are of a confidential nature and are furnished to the Department by the United States or other states under reciprocal agreements are furnished to a property appraiser, tax collector, or the Auditor General, the Executive Director shall satisfy himself that suitable precautions have been taken by the property appraiser, tax collector, or the Auditor General to safeguard the confidential information from those not entitled to access thereto, and that within the requesting office, the confidential information will be released only to those employees within the office with a need to know the information in the performance of their official duties.

(3) Upon written request, reasonably specifying the items requested and order desired, the property appraiser or tax collector shall furnish to the Executive Director or the Auditor General all records in whatever form they may be, including, but not limited to, worksheets, property record cards, electronic data processing materials, listings, compilations or computations of recorded data. If requested, the compilations, computations, or listings of the recorded data shall be produced by electronic data processing outputs, including, but not limited to, tape, print-out, cards or disc.

(4) If exactly the same data or materials as requested have been previously provided the Department or Auditor General, the appraiser or collector shall so inform the agency presently requesting the materials of the agency that was previously provided the data or materials.

(5) Any and all data and samples developed or obtained by the Department of Revenue in the conduct of the studies pursuant to Section 195.096, F.S., shall be confidential and exempt from Section 119.07(1), F.S., during the study until a formal presentation of the findings is made. After the formal presentation of the findings, the Department of Revenue shall provide any and all data requested by a property appraiser developed or obtained in the conduct of the studies pursuant to Section 195.096, F.S.

(6) In accordance with Section 193.085(4)(d), F.S., and pursuant to a formal agreement for the mutual exchange of information with another state, returns and information from returns pertaining to railroad property may be shared by the Department.

History

• Rulemaking Authority 195.027(1), 195.084(1), 213.06(1) FS. Law Implemented 193.085, 195.022, 195.027, 195.084, 195.096 FS. History–New 10-12-76, Formerly 12D-1.06, Amended 12-26-88, 10-30-91, 12-27-94.

Fla. Admin. Code R. 12D-1.007 Legal Proceedings Involving Appraisers

(1) All property appraisers involved in any way in legal proceedings in their official capacity shall, upon receipt of process, immediately furnish a copy of the initial pleading in the case to the Department, even if the Department is named as a party to the proceedings. Each appraiser shall thereafter furnish a copy of the answer filed in response to the initial pleading, any counter or cross-claims and replies thereto, and the final judgment in the proceedings to the Department.

(2) At the same time the initial pleading is furnished to the Department, the property appraiser shall advise the Department of the assessed valuation of the property in issue if the same is not stated in the initial pleading.

(3) For purposes of subsections (1) and (2) above, “pleadings” are defined as the complaint or petition, the answer to it, an answer to it, an answer to a counterclaim stated as such, an answer to a cross-claim if the answer contains a cross-claim, a third party complaint and answer if a person who was not an original party is summoned as a third party defendant and notices of appeal to higher courts from decisions of the Circuit Courts.

(4) A property appraiser involved in any way in an appeal from the decision of a court, shall promptly notify the Department of the existence of said appeal and shall briefly inform the Department of the legal issues involved in the appeal. The property appraiser shall advise the Department as to the date set for oral argument in the cause and shall furnish the Department all rendered judgments, decisions, orders, or decrees made in such cases. Upon request by the Department, the property appraiser shall furnish all pleadings filed, served, or introduced in the appellate proceedings. Such pleadings shall include but, shall not be limited to, assignments of error, briefs, notions and petitions.

History

• Rulemaking Authority 195.027(1) 213.06(1) FS. Law Implemented 194.181, 195.027, 195.092 FS. History–New 10-12-76, Formerly 12D-1.07.

Fla. Admin. Code R. 12D-1.008 Application of Section 195.062, Florida Statutes

(1) The language of Section 195.062, F.S., concerning the prohibition of the reassessment of lands due to the mere recordation of a plat on previously unplatted lands (until such time as development has begun) should be construed as directory and read in light of the statutory and constitutional language requiring just value.

(2) The term “development” shall have the same definition applied to it as has been legislatively applied to it in Section 380.04, F.S.

History

• Rulemaking Authority 195.027, 213.06(1) FS. Law Implemented 195.062 FS. History–New 10-12-76, Formerly 12D-1.08.

Fla. Admin. Code R. 12D-1.009 Mapping Requirements

(1) Each county property appraiser shall have and maintain the following:

(a) Aerial photography suitable for the needs of his office.

(b) Property ownership maps which will reflect the following:

1. Recorded subdivisions and/or unrecorded subdivisions, if being used for assessing, in their entirety on the property ownership maps including lot and block division and dimensions if known.

2. Dimensions and acreage, where known, on all parcels over one acre in size.

3. Parcel number corresponding to that as listed on the current county tax roll.

(2) Suggested procedures for establishing and maintaining an adequate cadastral mapping program to meet these requirements are contained in the mapping guidelines of the Department of Revenue’s Manual of Instructions.

History

• Rulemaking Authority 193.085(2), 195.027(1), 213.06(1) FS. Law Implemented 195.022, 195.062 FS. History–New 10-12-76, Formerly 12D-1.09, Amended 11-1-12.

Fla. Admin. Code R. 12D-1.010 Reconciliation of Interim Tax Rolls – Form of Notification

(1) Upon approval of the final assessment roll by the Executive Director, the property appraiser shall notify all taxpayers of their final approved assessments and of the time period for filing petitions on the form provided by the Department. This form of notice shall be mailed to the property owner as shown on the most recent tax roll or the name of the most recent owner as shown on the records of the property appraiser. The form of the notice shall be substantially as follows:

(2) After certification of the final assessment roll by the value adjustment board pursuant to Section 193.122(2), F.S., the property appraiser shall, subject to the provisions of Section 193.1145, F.S., recompute each provisional millage rate of the taxing units within his jurisdiction, so that the total taxes levied within each taxing unit after recomputation and adjustment of the millage rate shall be the same as the taxes which had been levied on the interim tax roll. The property appraiser shall notify each taxing unit as to the value of the recomputed or official millage rate.

(3) After the value adjustment board has completed its hearings, or if no petitions are filed before the board, and the board has certified to the property appraiser that no petitions were filed, the property appraiser shall review the certification of the value adjustment board reflecting all changes as made by the value adjustment board and shall extend the adjusted millage placed on such roll. Provided, however, that nothing herein shall preclude the property appraiser from challenging any action of the value adjustment board as provided by law.

(4) Upon recomputation, the property appraiser shall extend the taxes against the approved tax roll and shall prepare a reconciliation between the interim roll and the final approved roll.

(5) It shall be the duty and responsibility of the tax collector to compile and furnish to the property appraiser a compilation of the interim or provisional taxes paid on each parcel of property as levied on the interim assessment roll. The interim roll as certified by the tax collector to the clerk of the circuit court, or a certified copy of such roll, shall meet the requirements of this rule. Such compilation shall be furnished to the property appraiser no later than the date the assessment roll is certified to the property appraiser by the value adjustment board, pursuant to the provisions of Section 193.122(2), F.S.

(6) The final reconciled tax roll certified by the property appraiser to the tax collector shall show, at a minimum for each parcel, the:

(a) Interim or provisional assessed value;

(b) Final assessed value;

(c) Difference between (a) & (b);

(d) Exemptions;

(e) Interim or provisional taxes paid;

(f) Final taxes due;

(g) Difference between paragraphs (e) and (f).

(7) After extension of the adjusted tax on the final tax roll, the property appraiser shall certify such reconciled final tax roll to the tax collector in a format from which tax notices or refunds may be produced for collection or refunding unless otherwise authorized pursuant to subsection 193.1145(8), F.S.

(8) The tax collector shall prepare and mail to each taxpayer either supplemental bills or refunds in the form of county warrants for each parcel except that no bill shall be issued and no refund shall be authorized if the amount thereof is less than $10.00. The supplemental billings or refunds shall be accompanied by an explanatory notice in substantially the following form:

NOTICE OF SUPPLEMENTAL BILL OR REFUND OF PROPERTY TAXES

Property taxes for ___ (year) were based upon a temporary assessment roll to allow time for a more accurate determination of property values. Reassessment work has now been completed and final tax liability for ___ (year) has been recomputed for each taxpayer. BY LAW, THE REASSESSMENT OF PROPERTY AND RECOMPUTATION OF TAXES WILL NOT INCREASE THE TOTAL AMOUNT OF TAXES COLLECTED BY EACH LOCAL GOVERNMENT. However, if your property was relatively underassessed on the temporary roll, you owe additional taxes. If your property was relatively overassessed, you will receive a partial refund of taxes. If you have questions concerning this matter, please contact your county tax collector’s office at (______).

This notice shall be printed on a separate sheet of paper and mailed with the supplemental billings or refunds. This notice shall be furnished by the tax collector at the expense of his office.

(9) Tax bills shall be mailed to the current owner of record as reflected by the most recent tax roll.

(10) Discounts for the reconciliation of an interim tax roll shall be as follows: Four (4) percent for the first 30 days, zero (0) percent for the next 30 days and delinquent at the expiration of the zero (0) percent discount period. Delinquent taxes shall be governed by the provisions of Chapter 197, F.S., to include, but not limited to interest, advertising and sale of tax certificates.

(11) The tax collector shall collect all delinquent interim taxes and interest that have accrued pursuant to Section 193.1145(10), F.S. Discounts will not be allowed on delinquent interim taxes or interest. Discounts shall be authorized on any tax that is the result of an increase in the final assessed valuation on the final approved reconciled tax roll. Final taxes that become delinquent shall be enforced pursuant to the provisions of Chapter 197, F.S.

(12) Refunds shall be made to the person who paid the tax originally. Refunds shall be processed as follows:

(a) When the final approved reconciled tax roll indicates that the owner of record is the same as the owner of record on the interim tax roll, the tax collector shall forward any refund due directly to the property owner.

(b) When the owner of record on the final approved reconciled tax roll is not the owner of record who apparently paid the interim taxes, and after a diligent search the tax collector cannot locate the interim taxpayer, the tax collector shall publish a notice at least once each week for two weeks in a newspaper selected by the Board of County Commissioners, that certain taxpayers may be entitled to a refund for the overpayment of interim taxes and that the taxpayer may file an application for refund with the tax collector.

(c) The size of the notice shall be at least 3  5 inches. The content of the notice shall be as prescribed by the tax collector. Advertising cost for the notice shall be paid by the tax collector’s office.

(d) Refunds shall be paid from money collected from the final approved reconciled tax roll. If funds are not sufficient to pay all refunds, then the tax collector shall bill each taxing authority for its proportionate share of any refund payable. The tax collector shall commence the refund process within 90 days of the opening of the reconciled tax roll.

(e) Money collected from the final approved reconciled tax roll shall not be distributed to the various taxing authorities until the tax collector shall have in his possession adequate funds to process all refundable amounts pursuant to the reconciliation. Interest earned on all amounts collected on the final approved reconciled tax roll shall be used by the tax collector to defray any and all costs incurred by his office for collecting the reconciled tax roll.

(f) One hundred and eighty (180) days after the notice was published in accordance with paragraph (b), any unclaimed refunds shall be disposed of according to the disposition of abandoned or unclaimed property as required by Sections 717.113 and 717.117, F.S., as administered by the office of the Comptroller, State of Florida.

(13) Any outstanding tax sale certificates sold by the tax collector on delinquent interim assessments may be canceled. Tax sale certificates may be canceled pursuant to Section 197.443, F.S. If tax sale certificates are canceled, refunds to tax sale certificate holders shall be processed immediately and interest shall be paid according to Section 197.432(10), F.S. See Section 193.1145(10), F.S.

(14) Delinquent interim taxes and interest shall be collected or discharged pursuant to Sections 193.1145(10) and (8), F.S.

(15) Forms, as required by this rule, shall be reproduced by the property appraiser or tax collector. However, for good cause shown as provided in subsection 12D-16.001(5), F.A.C., the Department shall approve a change in the format or content of any form required by this rule.

(16) If the reconciliation is to occur at or close to the time for budget hearings, the mailing of the bills, or the meeting of the value adjustment board in a year subsequent to the year in which an interim roll was used, the Department may authorize re-notification and re-billing to coincide with the present year’s notification and billing to reduce costs and administrative expenses, provided that no rights secured by law to property owners or taxpayers are jeopardized.

(17) Petitions to the value adjustment board after reconciliation, for appeal of valuation, or classification, or denial of exemption shall be filed within thirty (30) days from the date of mailing of the notice provided in this section.

(18) The provisions of Section 197.322, F.S., regarding the millage and tax statement shall apply to the reconciliation of interim tax rolls.

(19) In cases of demonstrated hardships, the provisions of this rule may be amended, modified or set aside by a court of competent jurisdiction.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.1145(9), 193.122, 194.011, 197.162, 197.172, 197.322, 197.333, 197.343, 197.344, 197.432, 197.443 FS. History–New 11-23-83, Amended 12-26-85, Formerly 12D-1.10, Amended 12-3-01, 11-1-12.

Fla. Admin. Code R. 12D-1.011 Notification to Property Appraiser of Land Development Restriction

(1) The applicable governmental body or agency shall notify the property appraiser in writing of any law, ordinance, regulation, or resolution it adopts imposing any limitation, regulation, or moratorium upon development or improvement of property as otherwise authorized by applicable law.

(2) The Governor shall notify the property appraiser in writing of any development limitation or restriction due to an executive order or proclamation.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.011 FS. History–New 12-27-94.

Chapter 12D-2 ASSESSMENT OF THE PROPERTY OF RAILROADS, RAILROAD TERMINAL COMPANIES, PRIVATE CAR, FREIGHT LINE AND EQUIPMENT COMPANIES BY THE DEPARTMENT OF REVENUE

Fla. Admin. Code R. 12D-2.001 Definitions

The following definitions shall apply to property assessed by the Department:

(1) Operating Property – All property owned by or leased to railroad and railroad terminal companies and directly related to the operation of railroads. Operating property shall be classified in one of the following categories:

(a) Real Property.

(b) Tangible Property.

(c) Intangible Personal Property.

(2) Rolling Stock – Railroad cars used for transporting persons or property over railroad lines, including, but not limited to, locomotives, engines, passenger, freight and equipment cars.

(3) Railroad – A permanent installation having a line of rails fixed to ties and laid on a roadbed and providing a track for rolling stock drawn by locomotives or propelled by self contained motors.

(4) Railroad Company – A common carrier engaged in the business of operating a railroad. For the purpose of these rules, any common carrier engaged in the business of transporting goods or passengers by rail, according to a predetermined schedule and route, shall be considered a railroad company.

(5) Railroad Terminal Company – Any company, other than a railroad company, engaged in the business of furnishing terminal facilities to railroads.

(6) Non-Operating Railroad Property – All real and personal property owned by a railroad or railroad terminal company but not being directly used in the operation of a railroad or railroad terminal company. That portion of office buildings held, but not used in the operation of a railroad, shall be considered non-operating.

(7) Terminal Property – A term applying to all railroad operating real estate, except operating track and roadbed.

(8) Unit Rule Method of Valuation – An appraising method used to value an entire operating property, considered as a whole with minimal consideration being given to the aggregation of the values of separate parts. The rights, franchises, and property essential to the continued business and purpose of the entire property being treated as one thing having but one value in use.

(9) Operating Railroad Company – Any company which has been franchised to operate as a railroad shall be considered operating for the purpose of ad valorem taxation in this state so long as it has not been granted permission by regulatory authorities (Surface Transportation Board) to abandon its charter prior to January 1 of the taxable year.

(10) Person – As defined in Section 1.01, F.S., and including any “company”. Unless otherwise specifically provided, the word “company” may be used interchangeably with the word “person”.

(11) Centrally Assessed Property – All railroad operating property subject to assessment according to Section 193.085(4)(a), F.S., and rolling stock of private car and freight line and equipment companies subject to assessment by the department under Section 193.085(4)(b), F.S.

History

• Rulemaking Authority 193.085(4), 195.027(1), 213.06(1) FS. Law Implemented 193.085, 195.073, 196.183 FS. History–New 11-9-76, Formerly 12D-2.01, Amended 12-31-98, 11-1-12.

Fla. Admin. Code R. 12D-2.002 Assessment of Operating Property

All operating property within this state as of January 1 of the assessment year is subject to annual assessment by the Department of Revenue in accordance with the unit rule method of valuation. Although the Department shall appraise railroad operating property as a total operating unit, it may place a value on each parcel of operating real property in this state based on its value as railroad operating property.

The Department may maintain a property record card on each parcel of railroad operating real property located in each county through which the respective railroad operates. These record cards shall reflect the legal description, county parcel number, railroad identification number, description of improvements, and any other pertinent information that might become necessary to properly identify and value the parcel.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.085 FS. History–New 11-9-76, Formerly 12D-2.02.

Fla. Admin. Code R. 12D-2.003 Assessment of Rolling Stock of Private Car and Freight Line and Equipment Companies

The rolling stock of all private car and freight line and equipment companies operating in this state is subject to assessment by the Department of Revenue based on the total value of the average number of cars which are habitually present within this state.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.085 FS. History–New 11-9-76, Formerly 12D-2.03.

Fla. Admin. Code R. 12D-2.004 Annual Returns of Railroads

(1) It shall be the duty of each railroad or railroad terminal company to return, on or before the first of April annually, a full and complete return verified by an officer or authorized representative of the company, in such form as the Department of Revenue may prescribe, showing such of the following facts as may be requested by the Department and other such information as the Department may require, in the form and at the time prescribed:

(a) Total length of such railroad everywhere.

(b) Total length and owner’s estimated value of such main track, branch, switch, spur, and side tracks. List of lots not leased or rented and terminal facilities in this state as of January 1.

(c) The total number of owner’s estimated value of all rolling stock in this state as of January 1.

(d) The value of appurtenant supplies in this state as of January 1.

(e) A stock and bond value summation, including:

1. Long term bonds.

2. Stocks.

3. Equipment obligations.

4. Publicly held leased line securities.

5. Current liabilities.

(f) A statement of cost of additions and betterments made in the previous year.

(g) A report of the following statistics for each state in which the railroad operated in the past year:

1. All track miles.

2. Railroad operating revenue.

3. Ton and passenger miles.

4. Train miles.

5. Car miles.

6. Net investment in transportation property.

(h) A return of railroad equipment leased from others, showing the following information:

1. Owner.

2. Tax liability, lessor or lessee.

3. Date of first rental payment.

4. Lease/contract date of expiration.

5. Number of units.

6. Age of unit.

7. Type of unit.

8. Original cost.

9. Annual depreciation (owner’s).

10. Accumulated depreciation (owner’s).

11. Rental payment.

12. Depreciation schedule.

(i) A return of railroad equipment leased to others (data same as requested in paragraph (h)).

(j) An inventory of non-operating property in this state as of January 1 including:

1. Either legal description of property including section, township and range or description used by property appraiser.

2. Location of property.

3. Parcel number assigned by county.

4. Railroad identification number.

5. Number of acres or fractions thereof.

6. Book value.

7. Current assessed value.

(k) A statement of location of side tracks owned by others connected to said railroads in this state as of January 1.

(l) A list of private car lines or freight line and equipment companies whose cars were transported in the previous year including:

1. Name of private car line or freight line and equipment company.

2. Company address.

3. Car identification number.

4. Type of car.

5. Miles traveled in Florida, loaded and empty.

(m) A statement of total value of locally assessed property in Florida including:

1. Assessed value (as locally assessed).

2. Book value.

(n) A notarized certificate of execution and verification signed by an officer or authorized representative of reporting company.

(o) A complete copy of the annual report to the Surface Transportation Board dated, as of the end of the fiscal year, just preceding January 1 of the taxable year.

(p) A copy of complete audited financial statements, as of the end of the fiscal year, including, at a minimum:

1. Audited balance sheet.

2. Audited income statement.

(q) A copy of the audited annual report of the railroad, as of the end of the fiscal year, to shareholders.

(r) A copy of the audited annual report of the parent company of the railroad, as of the end of the fiscal year, to shareholders.

(s) A copy of the annual 10-K report of the railroad, as of the end of the fiscal year, to the Securities and Exchange Commission, if applicable.

(t) A copy of the annual 10-K report of the parent company of the railroad, as of the end of the fiscal year, to the Securities and Exchange Commission, if applicable.

(u) A list of constitutionally-exempt property pursuant to Article VII, section 1(b), Florida Constitution, which exempts certain classes of property from ad valorem property tax, such as motor vehicles, boats, airplanes, trailers, trailer coaches and mobile homes, as defined by law, which are subject to a license tax for their operation in the amounts and for the purposes prescribed by law. The list of constitutionally-exempt property, licensed in Florida, must contain an itemized financial accounting depreciation schedule that details original cost, annual financial accounting depreciation charges, accumulated depreciation and depreciated cost. The list should be prepared as if the equipment is owned by the taxpayer and the depreciation to be reported is the financial accounting depreciation. Any agreements for the lease of “car marks” should be shown as leased from others.

(v) A list of any sales or leases of operating track to others.

(2) It shall be the duty of all railroad or railroad terminal companies owning land or any other real estate in any county in this state to submit to the Department and the county property appraiser a full and complete list showing the description of all lands or lots owned and used by them in daily operation of the railroad. Such list must reflect the following information:

(a) Either the legal description of the property including section, township and range, or the description used by the county property appraiser.

(b) Location of property.

(c) Parcel number assigned by appraiser.

(d) Actual railroad use, i.e., right-of-way, storage, office, shop, etc.

(e) Description of improvements.

(3) It shall be the duty of all railroad and railroad terminal companies owning land in this state to file with the Department of Revenue, maps of operating rights-of-way in Florida. These right-of-way maps shall be separated as to each county through which the railroad and railroad terminal company operates. Once the initial compliance to this rule has been completed, the railroad and railroad terminal companies need file annually only those maps which have been revised and corrected by the respective companies by changes in the rights-of-way.

(4) The failure to file a return or the late or incomplete filing of a return shall subject the railroad or railroad terminal company to the penalties provided in Section 193.072, F.S. The Department may waive or reduce penalties in the same manner as provided for property appraisers under Section 193.072(4), F.S.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.062, 193.072, 193.085 FS. History–New 11-9-76, Formerly 12D-2.04, Amended 12-31-98.

Fla. Admin. Code R. 12D-2.005 Annual Return of Private Car and Freight Line and Equipment Companies

(1) It shall be the duty of all private car line and freight line and equipment companies operating rolling stock in Florida to return annually for taxation, on or before April 1, the average number of their cars which are normally and usually located in this state. The return shall be in such form as the Department may prescribe, showing such of the following facts as the Department may require, in the form and at the time prescribed by it:

(a) History and corporate information,

(b) Name and address of principal officers,

(c) Car description and cost data, including:

1. Year acquired.

2. Car identification number and initials.

3. Number of cars owned or leased.

4. Type of car.

5. Original cost to present owner.

6. Cost of additions and betterments, special equipment, racks, protective equipment, or any other additions to cars since their purchase.

7. Estimate of depreciation.

8. Book value.

9. Total miles traveled everywhere, both loaded and empty, during calendar year just preceding date of filing.

10. Total miles traveled in Florida, both loaded and empty, during calendar year just preceding date of filing.

(d) A notarized certification of execution and verification signed by an officer or authorized representative of the reporting company.

(2) The failure to file a return or the late or incomplete filing of a return shall subject the private car and freight line and equipment company to the penalties provided in Section 193.072, F.S. The Department may waive or reduce penalties in the same manner as provided for property appraisers under Section 193.072(4), F.S.

History

• Rulemaking Authority 193.052(6), 195.027(1), 213.06(1) FS. Law Implemented 193.062, 193.072, 193.085 FS. History–New 11-9-76, Formerly 12D-2.05.

Fla. Admin. Code R. 12D-2.006 Determination of Assessment and Allocation of Just Value to This State

(1) With reference to railroad and railroad terminal companies:

(a) The Department shall examine the returns required by these regulations and such other information as the Department may obtain and shall determine the just value of the railroad and railroad terminal company’s entire operating system, whether located entirely within this state or partially within this state. Just value shall be determined by application of the unit rule method of valuation.

(b) In application of the unit rule method of valuation, the Department shall consider the value indications obtained from three approaches to the system value, i.e., (1) cost approach, (2) market or stock and debt approach, (3) capitalized earnings or income approach, assuming there is enough conclusive evidence within the respective approach to render it a valid indicator of value. If the Department feels that there is not enough data available to render one or more of the approaches reliable, the Department shall base its decision on that information which it determines is conclusive enough to indicate just value.

(c) The Department shall allocate that portion of the total system value of railroad and railroad terminal companies to this state based on factors which are representative of the ratio that the company’s property, activity, and productiveness in this state bears to the company’s property, activity, and productiveness everywhere. Such factors include:

1. All track miles.

2. Net investment in transportation property.

3. Ton and passenger miles.

4. Total train miles.

5. Total car miles.

6. Railway operating revenue.

(2) With reference to private car and freight line and equipment companies:

(a) The Department shall examine the returns required by these rules and such other information as the Department may obtain concerning the just value of the rolling stock belonging to a private car or freight line and equipment company operating in or through this state, and shall determine the average just value per car for each of the company’s cars operating in this state.

(b) The product of the average just value per car and the “average number of cars habitually present within Florida” shall constitute the just value of the average number of cars habitually present within Florida.

(c) The “average number of cars habitually present within Florida,” for purposes of ad valorem taxation, may be based upon the number of such cars present in this state during the twelve months preceding the year of assessment. However, if the basis for this determination is not representative of the average number of cars habitually present within Florida in the year of assessment, the Department shall rely on the best information available to it.

(d) In making its determination of the “average number of cars habitually present within Florida,” the Department shall rely on the best information available to it, and in lieu of acceptable evidence to the contrary, the determination shall be based upon the quotient of the average daily mileage traveled in Florida by all of the company’s cars divided by the average miles traveled per day in Florida by a car of that company. The “average daily mileage traveled in Florida” shall be the quotient of total mileage traveled in Florida for the year divided by 365 or such lesser period for which operations have actually existed. Unless proven otherwise by substantial evidence, the average miles traveled per day in Florida by a company’s car shall be presumed to be the average miles traveled per day by a company’s car everywhere that operations exist. The average miles traveled per day by a company’s car everywhere shall be the quotient of the company’s average daily mileage divided by the total number of cars in its fleet, including all idle cars.

(e) When reliable information is available, and it can be substantiated that a more accurate value results, the “average number of cars habitually present within Florida” may be determined by the product of the total number of cars in a company’s rolling stock, including all idle cars, and the quotient of the actual time spent by those cars within Florida as opposed to time spent elsewhere.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.085 FS. History–New 11-9-76, Formerly 12D-2.06, Amended 12-31-98.

Fla. Admin. Code R. 12D-2.007 Apportionment of Railroad Assessment

The Department shall ascertain the value of each mile of maintrack, branch, switch, spur, and side track used in the operation of the reporting railroad and shall apportion value to each county, city, town and taxing district based on actual situs. Apportionment shall be made to those cities, towns and taxing districts which were in existence on January 1 and have notified the Department of their existence prior to June 1 of the current taxable year. Cities, towns, and taxing districts, regardless of date of original charter, which are authorized and plan to levy an ad valorem tax during the current tax year must notify the Department of such intention to levy an ad valorem tax. Cities, towns and taxing districts which have once notified the Department need not notify each year. Once notified, the Department will apportion value for all subsequent years until notified to discontinue apportionment.

The value of all terminal property used in the operation of the reporting railroad companies shall be apportioned to each county, city, town and taxing district based on actual situs, as determined by the Department.

The residual unit value remaining after apportioning track value and terminal value shall be apportioned to each county, city, town, and taxing district on a prorated basis. The basis of said proration shall be the total miles of track operated by the reporting company in this state. This residual value shall represent the aggregate of all rolling stock, materials, supplies, and tangible and intangible appurtenances associated with the operating unit in this state.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.085 FS. History–New 11-9-76, Formerly 12D-2.07.

Fla. Admin. Code R. 12D-2.008 Apportionment of Private Car or Freight Line and Equipment Company Assessment

Apportionment of the assessed value of the rolling stock of private car line or freight line and equipment companies to each county, city, town, and taxing district shall be made on the basis of the number of miles and location of main line track of respective railroads over which the rolling stock has been operated during the preceding twelve months. Apportionment shall be made to those cities, towns, and taxing districts which have notified the Department of their existence prior to June 1 of the current taxable year. Cities, towns, and taxing districts, regardless of date of original charter, which plan to levy an ad valorem tax during the current tax year must notify the Department of such intention to levy an ad valorem tax. Cities, towns, and taxing districts which have notified the Department need not notify each year. Once notified, the Department will apportion value for all subsequent years until notified to discontinue apportionment. If the Department finds that any private car line or freight line and equipment company operates exclusively in specific counties, apportionment shall be made only to those specific counties and the cities, towns, and taxing districts therein.

The value apportioned to the respective county represents its prorated value of rolling stock and attachments to rolling stock operating in this state.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.085 FS. History–New 11-9-76, Formerly 12D-2.08.

Fla. Admin. Code R. 12D-2.009 Notification to Property Appraiser

History

• Rulemaking Authority 195.027, 213.06(1) FS. Law Implemented 193.085, 213.05 FS. History–New 11-9-76, Formerly 12D-2.09, Repealed 9-12-95.

Fla. Admin. Code R. 12D-2.010 Assessment When No Return or Incomplete Return is Made

Should any railroad, railroad terminal company, private car line or freight line and equipment company fail to make complete and correct returns required herein when due, or should the return not be received, the Department shall assess the same and apply penalties in the manner provided for county property appraisers in Rule 12D-8.005, F.A.C.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.072 FS. History–New 11-9-76, Formerly 12D-2.10.

Fla. Admin. Code R. 12D-2.011 Centrally Assessed Railroad and Private Carline Company Assessments

(1) Assessments.

(a) Railroad and private carline company assessments shall be certified to the property appraiser by the Department of Revenue as required by Section 193.085, F.S.

(b) Upon receipt from the Department, the property appraiser shall add such assessments to the county assessment roll.

(c) The TRIM notice required by Section 200.069, F.S., shall be prepared and mailed by the property appraiser to each centrally assessed railroad and private carline on Form DR-474. The following language appearing at the bottom of the TRIM notice should be crossed out by the appraiser:

“If you feel the assessed value of your property is inaccurate or does not reflect fair market value, contact your property appraiser at:

If the property appraiser’s office is unable to resolve the matter as to market value, you may file a petition for adjustment with the value adjustment board. Petition forms are available from the county property appraiser and must be filed on or before: ________.”

(d) Informal conferences on centrally assessed railroad and private carline company assessments under Section 193.085, F.S., shall be heard and processed by the Executive Director or the Executive Director’s designee.

(e) When the property appraiser receives the certified assessment roll from the value adjustment board, he shall extend the tax and certify the tax roll to the tax collector.

(f) The provisions of paragraphs (c) and (d) apply only to central assessments on railroads and private carline companies made by the Department of Revenue. Property owned by railroads and private carline companies which is termed “non-operating” should continue to be assessed by the county property appraiser and all TRIM notice requirements shall continue to apply to assessments of “non-operating” properties.

(2) Collections.

(a) The tax collector shall prepare the tax notices for railroad and private carline central assessments as soon as practical.

(b) The tax collector shall proceed to collect delinquent taxes as other delinquent taxes are collected.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.085, 193.1145, 193.122, 194.171, 195.096, 197.323 FS. History–New 11-23-83, Formerly 12D-2.11, Amended 12-31-98.

Chapter 12D-3 TAXATION OF INTERESTS OF NON-GOVERNMENTAL LESSEES IN PROPERTY OWNED BY GOVERNMENTAL UNITS

Fla. Admin. Code R. 12D-3.001 Introduction

These rules are adopted to implement the provisions of Section 196.199, F.S., relating to taxation of interests of non-governmental lessees in property owned by governmental units. All applicable collection, administration and enforcement provisions of Chapter 199, F.S. 2005, shall apply to those leasehold interests taxed as intangibles pursuant to Section 196.199(2)(b), F.S.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.001, 196.199, 199.023(2005), 199.032(2005) FS. History–New 12-31-80, Formerly 12D-3.01, Amended 10-2-07.

Fla. Admin. Code R. 12D-3.002 Interests of Non-governmental Lessees in Governmentally Owned Property Which Are Subject to Ad Valorem Taxation

The following described interests in property owned by the United States, of this state, or any of its political subdivisions, or of municipalities, agencies, authorities and other public bodies corporate of this state, used by non-governmental lessees, are subject to ad valorem taxation, as provided in Rule 12D-3.003, F.A.C., subject to the provisions of Section 196.199(5), F.S.

(1) Any leasehold estates or possessory interest subject to classification pursuant to §4(a), Article VII of the Constitution of the State of Florida.

(2) Property which is originally leased for 100 years or more, exclusive of renewal options.

(3) Property financed, acquired or maintained utilizing in whole or in part funds acquired through issuance of bonds pursuant to Chapter 159, Parts II, III and V, F.S.

(4) Leasehold interests and leasehold estates or any possessory interest created thereby where:

(a) The lessee does not serve or perform a governmental, municipal, or public purpose or function defined in Section 196.012(6), F.S.;

(b) The lessee does not use the property exclusively for literary, scientific, religious, or charitable purposes;

(c) The property is not property described in subsections 12D-3.002(1), 12D-3.002(2) and 12D-3.002(3), F.A.C.;

(d) The property is undeveloped or predominantly used for commercial or residential purposes.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.001, 196.199 FS. History–New 12-31-80, Formerly 12D-3.02.

Fla. Admin. Code R. 12D-3.003 Assessment and Taxation of Interests of Non-governmental Lessees in Governmentally Owned Property Which are Subject to Ad Valorem Taxation

(1) Interests described in subsection 12D-3.002(1), F.A.C., shall be assessed and taxed on the appropriate ad valorem tax rolls of the county where located.

(2) Interests described in subsections 12D-3.002(2) and (3), F.A.C., are deemed to be owned by the lessee and shall be assessed and taxed on the appropriate ad valorem tax rolls of the county where located.

(3) Interests described in subsection 12D-3.002(4), F.A.C., upon which rental payments are due pursuant to the agreement creating said interest, shall be taxed as intangible personal property pursuant to Section 199.032, F.S. (2005). Nominal payments shall be deemed rental payments for purposes of determining the method of taxation but not for determining valuation of the interest.

(4) Interests described in subsection 12D-3.002(4), F.A.C., upon which no rental payments are due pursuant to the agreement creating such interest, shall be assessed on the tax rolls of the county where located and shall be taxed as real property.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.001, 196.199, 199.023 (2005), 199.032 (2005) FS. History–New 12-31-80, Formerly 12D-3.03, Amended 10-2-07.

Fla. Admin. Code R. 12D-3.004 Method of Valuing Interests Taxed as Intangibles

Interests taxed as intangibles pursuant to subsection 12D-3.003(3), F.A.C., shall be valued in accordance with paragraph 12C-2.010(1), F.A.C.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.001, 196.199 FS. History–New 12-31-80, Formerly 12D-3.04.

Fla. Admin. Code R. 12D-3.005 Effect of Provisions of Ad Valorem Taxation of Property Owned by Lessee

Nothing in these provisions shall be deemed to exempt personal property, buildings, or other real property improvements owned by a lessee from ad valorem taxation.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.001, 196.199 FS. History–New 12-31-80, Formerly 12D-3.05.

Chapter 12D-5 AGRICULTURAL AND OUTDOOR RECREATIONAL OR PARK LANDS

Fla. Admin. Code R. 12D-5.001 Agricultural Classification, Definitions

(1) For the purposes of Section 193.461, F.S., agricultural purposes does not include the wholesaling, retailing or processing of farm products, such as by a canning factory.

(2) Good faith commercial agricultural use of property is defined as the pursuit of an agricultural activity for a reasonable profit or at least upon a reasonable expectation of meeting investment cost and realizing a reasonable profit. The profit or reasonable expectation thereof must be viewed from the standpoint of the fee owner and measured in light of his investment.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.461 FS. History–New 10-12-76, Formerly 12D-5.01.

Fla. Admin. Code R. 12D-5.002 Purchase Price Paid as a Factor in Determining Agricultural Classification

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.461, 195.032 FS. History–New 10-12-76, Amended 11-10-77, Formerly 12D-5.02, Repealed 9-19-17.

Fla. Admin. Code R. 12D-5.003 Dwellings on Agriculturally Classified Land

The property appraiser shall not deny agricultural classification solely because of the maintenance of a dwelling on a part of the lands used for agricultural purposes, nor shall the agricultural classification disqualify the land for homestead exemption. So long as the dwelling is an integral part of the entire agricultural operation, the land it occupies shall be considered agricultural in nature. However, such dwellings and other improvements on the land shall be assessed under Section 193.011, F.S., at their just value and added to the agriculturally assessed value of the land.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.461 FS. History–New 10-12-76, Formerly 12D-5.03.

Fla. Admin. Code R. 12D-5.004 Applicability of Other Factors to Classification of Agricultural Lands

(1) Other factors enumerated by the court in Greenwood v. Oates, 251 So. 2d 665 (Fla. 1971), which the property appraiser may consider, but to which he is not limited, are:

(a) Opinions of appropriate experts in the fields;

(b) Business or occupation of owner; (Note that this cannot be considered over and above, or to the exclusion of, the actual use of the property.) (See AGO 70-123.)

(c) The nature of the terrain of the property;

(d) Economic merchantability of the agricultural product; and,

(e) The reasonably attainable economic salability of the product within a reasonable future time for the particular agricultural product.

(2) Other factors that are recommended to be considered are:

(a) Zoning (other then Section 193.461, F.S.), applicable to the land;

(b) General character of the neighborhood;

(c) Use of adjacent properties;

(d) Proximity of subject properties to a metropolitan area and services;

(e) Principal domicile of the owner and family;

(f) Date of acquisition;

(g) Agricultural experience of the person conducting agricultural operations;

(h) Participation in governmental or private agricultural programs or activities;

(i) Amount of harvest for each crop;

(j) Gross sales from the agricultural operation;

(k) Months of hired labor; and,

(l) Inventory of buildings and machinery and the condition of the same.

(3) A minimum acreage cannot be required for agricultural assessment in determining whether the use of the land for agricultural purposes is bona fide.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.461, 213.05 FS. History–New 10-12-76, Amended 11-10-77, Formerly 12D-5.04, Amended 11-1-12.

Fla. Admin. Code R. 12D-5.005 Outdoor Recreational or Park Lands

The recreational use must be non-commercial. The term “non-commercial” would not prohibit the imposition of a fee or charge to use the recreational or park facility so long as the fee or charge is calculated solely to defray the reasonable expenses of maintaining the land for recreational or park purposes. Since public access is necessarily a prerequisite to classification and tax treatment under Section 193.501, F.S., and Article VII, Section 4, Florida Constitution, the Trustees of the Internal Improvement Trust Fund or the governing board of a county or delegated municipality, as the case may be, in their discretion need not accept an instrument conveying development rights or establishing a covenant under the statute. In all cases, the tax treatment provided by Section 193.501, F.S., shall continue only so long as the lands are actually used for outdoor recreational or park purposes. Since all property is assessed as of its status on January 1 of the tax year, if the instrument conveying the development rights or establishing the covenant is not accepted by the appropriately authorized body on or before January 1 of the tax year, then special treatment under Section 193.501, F.S., would not be available for that tax year. When special treatment under the statute is to be granted because of a covenant, such special treatment shall be granted only if the covenant extends for a period of ten or more years from January 1 of each year for which such special treatment assessment is made; however, recognition of the restriction and length of any covenant extending less than 10 years shall be made in assessing the just value of the land under Section 193.011, F.S.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.011, 193.501 FS. History–New 10-12-76, Amended 11-10-77, Formerly 12D-5.05, Amended 12-31-98.

Fla. Admin. Code R. 12D-5.006 Effect of Citrus Canker on Agricultural Classification

History

• Rulemaking Authority 193.461(3)(b)73, (6)(a)7. FS. Law Implemented 193.461(3)(b)7., (6)(a)7. FS. History–New 2-26-86, Repealed 9-12-95.

Fla. Admin. Code R. 12D-5.010 Definitions

Unless otherwise stated or unless otherwise clearly indicated by the context in which a particular term is used, all terms used in this chapter shall have the same meanings as are attributed to them in the current Florida Statutes. In this connection, reference is made to the definitions in Sections 192.001, 211.01 and 211.30, F.S.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.001, 193.461, 193.481, 211.01, 211.30 FS. History–New 2-10-82, Formerly 12D-5.10.

Fla. Admin. Code R. 12D-5.011 Assessment of Oil, Mineral and Other Subsurface Rights

(1) All oil, mineral, gas, and other subsurface rights in and to real property, which have been sold or otherwise transferred by the owner of the real property, or retained or acquired through reservation or otherwise, shall be appraised and taxed separately from the fee or other interest in the fee. This tax is against those who benefit from the possession of the subsurface rights. When such subsurface rights are leased, the tax burden falls on the lessee, not on the lessor who owns the rights outright in perpetuity.

(a) When the subsurface rights in land have been transferred by the fee owner, or retained or acquired by other than the surface owner, it is the duty of the property appraiser to use reasonable means to determine the name of the record title owner from the public records of the county.

(b) When subsurface rights have been separated from the fee, the property appraiser shall make a separate entry on the assessment roll indicating the assessment of the subsurface rights which have been separated from the fee. The property appraiser may describe and enter these subsurface rights on the roll in the same manner in which they were conveyed. This entry shall immediately follow, in the same section, township, and range, the entry listing the record title owner of the surface fee insofar as is practicable.

(2) At the request of a real property owner who also owns the oil, mineral, and other subsurface rights to the same property, the property appraiser shall assess the subsurface rights separately from the remainder of the real estate. Such request shall be filed with the property appraiser on or before April 1. Failure to do so relieves the appraiser of the duty to assess subsurface rights separately from the remainder of the real estate owned by the owner of such subsurface rights.

(3) All subsurface rights are to be assessed on the basis of just value. The combined value of the subsurface rights, the undisposed subsurface interests, and the remaining surface interests shall not exceed the full just value of the fee title of the land inclusive of such subsurface rights.

(a) Any fractional subsurface interest in a parcel must be assessed against the entire parcel, not against a fraction of the parcel. For example, a one-fourth interest in the subsurface rights on 40 acres is assessed as a fractional interest on the entire 40 acres, not as an interest on 10 acres.

(b) Just value, or fair market value, of subsurface rights may be determined by comparable sales. In determining the value of such subsurface rights, the property appraiser may apply the methods provided by law, including consideration of the amounts paid for mineral, oil, and other subsurface rights in the area as reflected by the public records.

(c) The cost approach to value may be used to determine the assessed value of a mineral or subsurface right. Where comparable sales or market information is unavailable, and the lease transaction is reasonably contemporary, arm’s length, and the contract rent appears to reflect market value, the property appraiser may consider the total value of the contract and discount it to present value as a means of determining just value.

(4) At such time as all mineral assets shall be deemed depleted under present technology or upon a final decree by a court or action or ruling by a quasi-judicial body of competent jurisdiction ordering that no further extraction of minerals will be permitted, the property appraiser shall reduce the assessment of such subsurface rights in accordance with existing circumstances. However, as long as such interests remain, they shall continue to be separately assessed.

(5) Insofar as they may be applied, statutes and regulations not conflicting with the provisions of this chapter pertaining to the assessment and collection of ad valorem taxes on real property, shall apply to the separate assessment and taxation of subsurface rights.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.052, 193.062, 193.114(2), 193.481 FS. History–New 2-10-82, Formerly 12D-5.11.

Fla. Admin. Code R. 12D-5.012 Liens on Subsurface Rights

(1) Tax certificates and tax liens may be acquired, purchased, transferred and enforced, and tax deeds issued encumbering subsurface rights as they are on real property. Except that in the case of a tax lien on leased subsurface rights where mineral rights are leased or otherwise transferred for a term of years, the lien shall be a personal liability of the lessee and shall be a lien against all property of the lessee.

(2) The owner of subsurface rights shall, by recording with the clerk of the circuit court his name, address and the legal description of the property in which he has a subsurface interest, be entitled to notification, by registered mail with return receipt requested, of:

(a) Non-payment of taxes by the surface owner, or the sale of tax certificates affecting the surface;

(b) Or applications for a tax deed for the surface interest;

(c) Or any foreclosure proceedings thereon.

(3) No tax deed nor foreclosure proceedings shall affect the subsurface owner’s interest if he has filed with the clerk of the circuit court and such notice as described above is not given.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.481, 211.18 FS. History–New 2-10-82, Formerly 12D-5.12.

Fla. Admin. Code R. 12D-5.013 Ad Valorem Credits on Severance Tax

History

• Rulemaking Authority 195.027 FS. Law Implemented 211.32 FS. History–New 2-10-82, Formerly 12D-5.13, Repealed 4-29-82.

Fla. Admin. Code R. 12D-5.014 Conservation Easement, Environmentally Endangered or Outdoor Recreational or Park Property Assessed Under Section 193.501, F.S

(1) To apply for the assessment of lands subject to a conservation easement, environmentally endangered lands, or lands used for outdoor recreational or park purposes when land development rights have been conveyed or conservation restrictions have been covenanted, a property owner must submit an original application to the property appraiser by March 1, as outlined in Section 193.501, F.S.

(2) The Department prescribes Form DR-482C, Land Used for Conservation, Assessment Application, and incorporated by reference in Rule 12D-16.002, F.A.C., for property owners to apply for the assessment in Section 193.501, F.S.

(3) The Department prescribes Form DR-482CR, Land Used for Conservation, Assessment Reapplication, incorporated by reference in Rule 12D-16.002, F.A.C., for property owners to reapply for the assessment after the first year a property is assessed under Section 193.501, F.S., when the property owner and use have not changed. The property owner must complete and return the reapplication to the property appraiser by March 1.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.501 FS. History–New 11-1-12.

Chapter 12D-6 MOBILE HOMES, PREFABRICATED OR MODULAR HOUSING UNITS, POLLUTION CONTROL DEVICES, AND FEE TIME-SHARE DEVELOPMENTS

Fla. Admin. Code R. 12D-6.001 Mobile Homes and Prefabricated or Modular Housing Units Defined

(1) Mobile homes are vehicles which satisfy the following:

(a) Manufactured upon a chassis or under carriage as an integral part thereof; and,

(b) Without independent motive power; and,

(c) Designed and equipped to provide living and sleeping facilities for use as a home, residence, or apartment; or designed for operation over streets and highways.

(d) The definition of “mobile home” shall be as defined under Sections 320.01(2) and 723.003(3), F.S. (1989) and under paragraph 12A-1.007(11)(a), F.A.C.

(2) A prefabricated or modular housing unit or portion thereof, is a structure not manufactured upon an integral chassis or under carriage for travel over the highways, even though transported over the highways as a complete structure or portion thereof, to a site for erection or use.

(3) “Permanently affixed.” A mobile home shall be considered “permanently affixed” if it is tied down and connected to the normal and usual utilities, and if the owner of the mobile home is also the owner of the land to which it is affixed.

(4) The “owner” of a mobile home shall be considered the same as the owner of the land for purposes of this rule chapter if all of the owners of the mobile home are also owners of the land, either jointly or as tenants in common. This definition shall apply even though other persons, either jointly or as tenants in common, also own the land but do not own the mobile home. The owners of the realty must be able, if they convey the realty, to also convey the mobile home. In this event reference shall be made to the proportions of interests in the land and in the mobile home so owned.

(a) Ownership of the land may be through a “cooperative,” which is that form of ownership of real property wherein legal title is vested in a corporation or other entity and the beneficial use is evidenced by an ownership interest in the cooperative association and a lease or other muniment of title or possession granted by the cooperative association as the owner of all the cooperative property.

(b) Ownership of the land may also be in the form of an interest in a trust conferring legal or equitable title together with a present possessory right on the holder.

(c) Where a mobile home is owned by a corporation, the owner of the mobile home shall not be considered the same as the owner of the land unless the corporation also owns the land as provided in this rule section.

(5) The owner of the mobile home shall not be considered an owner of the land if his name does not appear on an instrument of title to the land.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.001, 192.011, 193.075, 196.031 FS. History–New 10-12-76, Amended 11-10-77, Formerly 12D-6.01, Amended 2-17-93.

Fla. Admin. Code R. 12D-6.002 Assessment of Mobile Homes

(1) This rule subsection shall apply if the owner of the mobile home is also the owner of the land on which the mobile home is permanently affixed and the mobile home has a current sticker affixed, regardless of the series.

(a) The property appraiser shall assess such mobile home as realty and it shall be taxed as real property. The property appraiser should get proof of title of the mobile home and land. Section 319.21, F.S., states that no person shall sell a motor vehicle for purposes of the registration and licenses provisions without delivering a certificate of title to the purchaser. The owner may provide evidence of affixation on Form DR-402, Declaration of Mobile Home as Real Property (incorporated by reference in Rule 12D-16.002, F.A.C.), to assist the property appraiser. However, this information shall not be determinative.

(b) The mobile home shall be issued an “RP” series sticker as provided in Section 320.0815, F.S. The owner is required to purchase an “RP” sticker from the tax collector.

(c) If the owner purchases an “MH” series sticker, this shall not affect the requirements of paragraph (a) of this rule subsection.

(d) This rule subsection shall apply to permanently affixed mobile homes and appurtenances which are held for display by a licensed mobile home dealer or a licensed mobile home manufacturer. Any item of tangible personal property or any improvement to real property which is appurtenant to a mobile home and which is not held strictly for resale is subject to ad valorem tax. The mobile home and appurtenances are considered tangible personal property and inventory not subject to the property tax if the following conditions are met:

1. The mobile home and any appurtenance is being held strictly for resale as tangible personal property and is not rented, occupied, or otherwise used; and,

2. The mobile home is not used as a sales office by the mobile home dealer or mobile home manufacturer; and,

3. The mobile home does not bear an “RP” series sticker.

(2) This rule subsection shall apply to any mobile home which does not have a current license sticker affixed.

(a) It shall not be considered to be real property.

(b) It is required to have a current license plate properly affixed as required by Section 320.08(11), (12), 320.0815 or 320.015, F.S.

(c) Any mobile home without a current license sticker properly affixed shall be presumed to be tangible personal property and shall be placed on the tangible personal property tax roll.

(3) Under Section 320.055(2), F.S., a mobile home sticker is effective through the 31st day of December and is authorized to be renewed during the 31 days prior to expiration on December 31. A mobile home sticker renewed during the renewal period is effective from January 1 through December 31.

(4) Where there is no current sticker affixed on January 1, the fact that the owner purchases an “RP” or “MH” sticker after January 1, does not rebut the presumption stated in paragraph (2)(c) of this rule section. However, if in fact the mobile home was permanently affixed to realty on January 1, the property appraiser could consider this to rebut the presumption that the mobile home is tangible personal property, in the exercise of his judgment considering the factors stated within Section 193.075(1), F.S. Such a mobile home would be required to be taxed as real property and required to purchase an “RP” series sticker, as outlined in subsection (1) of this rule section.

(5) The statutory presumption that a mobile home without a current sticker or tag is tangible personal property may be rebutted only by facts in existence at the January 1 assessment date. Such facts shall be limited to the following factors:

(a) The property appraiser’s exercise of judgment in determining it to be permanently affixed to realty as of January 1, based on the criteria in Section 193.075(1), F.S., as outlined in subsection (4) of this rule section consistent with the requirement to purchase an “RP” series sticker; or

(b) Documentation of having paid the proper license tax and having properly purchased an “MH” sticker which was in fact current on the January 1 assessment date as provided in subsection (3) of this rule section.

(6) A person having documentation of having paid the tangible personal property tax for any year should seek a refund of license tax from the Department of Highway Safety and Motor Vehicles for the same period for which he later purchased an “MH” tag.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.001, 192.011, 193.075 FS. History–New 10-12-76, Formerly 12D-6.02, Amended 2-17-93, 1-11-94, 12-27-94, 12-28-95, 1-2-01.

Fla. Admin. Code R. 12D-6.003 Recreational Vehicle Type Units; Determination of Permanently Affixed

(1) This rule subsection shall apply to a recreational vehicle type unit described in Section 320.01(1), F.S., which is tied down, or when the mode of attachment or affixation is such that the recreational vehicle type unit cannot be removed without material or substantial injury to the recreational vehicle type unit. In such case, the recreational vehicle type unit shall be considered permanently affixed or attached. Except when the mode of attachment or affixation is such that the recreational vehicle type unit cannot be removed without material or substantial injury to the recreational vehicle type unit, the realty, or both, the intent of the owner is determinative of whether the recreational vehicle type unit is permanently attached. The intention of the owner to make a permanent affixation of a recreational vehicle type unit may be determined by either:

(a) The owner making the application for an “RP” series license sticker in which the owner of the recreational vehicle type unit states:

1. That the unit is affixed to the land; and,

2. That it is his intention that the unit will remain affixed to the land permanently.

(b) The property appraiser making an inspection of the recreational vehicle type unit and inferring from the facts the intention of the owner to permanently affix the unit to the land. Facts upon which the owner’s intention may be based are:

1. The structure and mode of the affixation of the unit to realty;

2. The purpose and use for which the affixation has been made,

a. Whether the affixation, annexation or attachment was made in compliance with a building code or ordinance which would diminish the indication of the intent of the owner,

b. Whether the affixation, annexation or attachment was made to obtain utility services, etc.

(2) A recreational vehicle type unit shall be assessed as real property only when the recreational vehicle type unit is permanently affixed to the real property upon which it is situated on January 1 of the year in which the assessment is made and the owner of the recreational vehicle type unit is also the owner of the real property upon which the recreational vehicle type unit is situated. This subsection shall apply regardless of the series under which the recreational vehicle type unit may be licensed pursuant to Chapter 320, F.S. However, a recreational vehicle type unit that is taxed as real property is required to be issued an “RP” series sticker as provided in Section 320.0815, F.S.

(3) A recreational vehicle type unit may be considered to be personal property when it does not have a current license plate properly affixed as provided in Section 320.08(9), (10), 320.015 or 320.0815, F.S.

(4) The removal of the axles and other running gear, tow bar and other similar equipment from a recreational vehicle type unit is not prerequisite to the assessment of recreational vehicle type unit as a part of the land to which it is permanently affixed, annexed, or attached if other physical facts of affixation, annexation, or attachment are present.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.001, 192.011, 193.075 FS. History–New 10-12-76, Formerly 12D-6.03, Amended 5-13-92.

Fla. Admin. Code R. 12D-6.004 Prefabricated or Modular Housing Units – Realty or Tangible Personal Property

Prefabricated or modular housing units or portions thereof, as defined, which are permanently affixed to realty, are taxable as real property.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.011 FS. History–New 10-12-76, Formerly 12D-6.04, Amended 12-31-98.

Fla. Admin. Code R. 12D-6.005 Pollution Control Devices

In accordance with Section 193.621, F.S., the Department of Environmental Protection has adopted rule Chapter 62-8, F.A.C., concerning the assessment of pollution control devices as a guideline for the property appraiser.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.621 FS. History–New 10-12-76, Formerly 12D-6.05.

Fla. Admin. Code R. 12D-6.006 Fee Time-Share Real Property

(1) Applicability of rule:

This rule shall apply to the valuation, assessment, listing, billing and collection for ad valorem tax purposes of all fee time-share real property, as defined in Section 192.001, F.S.

(2) Definitions – As used in this rule:

(a) “Accommodations” means any apartment, condominium or cooperative unit, cabin, lodge or hotel or motel room or any other private or commercial structure which is situated on real property and designed for occupancy by one or more individuals. (Section 721.05(1), F.S.)

(b) “Fee time-share real property” means the land and buildings and other improvements to land that are subject to time-share interests which are sold as a fee interest in real property. (Section 192.001(14), F.S.)

(c) “Managing entity” means the person responsible for operating and maintaining the time-share plan. (Section 721.05(20), F.S.)

(d) “Time-share development” means the combined individual time-share periods or time-share estates of a time-share property as contained in a single entry on the tax roll. (Section 192.037(2), F.S.)

(e) “Time-share estate” means a right to occupy a time-share unit, coupled with a freehold estate or an estate for years with a future interest in a time-share property or a specified portion thereof. (Section 721.05(28), F.S.)

(f) “Time-share instrument” means one or more documents, by whatever name denominated, creating or governing the operation of a time-share plan. (Section 721.05(29), F.S.)

(g) “Time-share period” means that period of time when a purchaser of a time-share plan is entitled to the possession and use of the accommodations or facilities, or both, of a time-share plan. (Section 721.05(31), F.S.)

(h) “Time-share period titleholder” means the purchaser of a time-share period sold as a fee interest in real property, whether organized under Chapter 718 or 721, F.S. (Section 192.001(15), F.S.)

(i) “Time-share plan” means any arrangement, plan, scheme, or similar device, other than an exchange program, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, or right-to-use agreement or by any other means, whereby a purchaser, in exchange for a consideration, receives ownership rights in, or a right to use, accommodations or facilities, or both, for a period of time less than a full year during any given year, but not necessarily for consecutive years, and which extends for a period of more than 3 years. (Section 721.05(32), F.S.)

(j) “Time-share property” means one or more time-share units subject to the same time-share instrument, together with any other property or rights to property appurtenant to those units. (Section 721.05(33), F.S.)

(k) “Time-share unit” means an accommodation of a time-share plan which is divided into time-share periods. (Section 721.05(34), F.S.)

(3) Method of Assessment and Valuation.

(a) Each fee time-share development, as defined in paragraph (2)(d) of this rule, shall be listed on the assessment roll as a single entry.

(b) The assessed value of each time-share development shall be the value of the combined individual time-share periods or time-share estates contained therein. In determining the highest and best use to which the time-share development can be expected to be put in the immediate future and the present use of the property, the property appraiser shall properly consider the terms of the time-share instrument and the use of the development as divided into time-share estates or periods. (Section 192.037(2), F.S.)

(c) Each of the eight factors set forth in Sections 193.011(1)-(8) inclusive, F.S., shall be considered by the property appraiser in arriving at assessed values in the manner prescribed in paragraph (3)(b) of this rule. In such considerations the property appraiser shall properly evaluate the relative merit and significance of each factor.

(d) Consistent with the provisions of Section 193.011(8), F.S., and when possible, resales of comparable time-share developments with ownership characteristics similar to those of the subject being appraised for ad valorem assessment purposes, and resales of time-share periods from time-share period titleholders to subsequent time-share period titleholders, shall be used as the basis for determining the extent of any deductions and allowances that may be appropriate.

(4) Listing of fee time-share real property on assessment rolls.

(a) Fee time-share real property shall be listed on the assessment rolls as a single entry for each time-share development. (Section 192.037(2), F.S.)

(b) The assessed value listed for each time-share development shall be derived by the property appraiser in the manner prescribed in subsection (3) of this rule.

(5) Billing and Collection.

(a) For the purposes of ad valorem taxation and special assessments, including billing and collections, the managing entity responsible for operating and maintaining fee time-share real property shall be considered the taxpayer as an agent of the time-share period titleholders.

(b) The property appraiser shall annually notify the managing entity of the proportions to be used by the managing entity in allocating the valuation, taxes, and special assessments on time-share property among the various time-share periods.

(c) The tax collector shall accept only full payment of the taxes and special assessments due on the time-share development and sell tax certificates as provided in paragraph 12D-13.051(2)(b), F.A.C., on the time-share development as a whole parcel, as listed on the tax roll.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.001, 192.037, 193.011, 721.05 FS. History–New 5-29-85, Formerly 12D-6.06, Amended 12-27-94.

Chapter 12D-7 EXEMPTIONS

Fla. Admin. Code R. 12D-7.001 Applications for Exemptions

(1) As used in Section 196.011, F.S., the term “file” shall mean received in the office of the county property appraiser. However, for applications filed by mail, the date of the postmark is the date of filing.

(2) The property appraiser is not authorized to accept any application that is not filed on or before March 1 of the year for which exemption is claimed except that, when the last day for filing is a Saturday, Sunday, or legal holiday, in which case the time for making an application shall be extended until the end of the next business day. The property appraiser shall accept any application timely filed even though the applicant intends or is requested to file supplemental proof or documents.

(3) Property appraisers are permitted, at their option, to grant homestead exemptions upon proper application throughout the year for the succeeding year. In those counties which have not waived the annual application requirement, the taxpayer is required to reapply on the short form as provided in Section 196.011(6), F.S. If the taxpayer received the exemption for the prior year, the property may qualify for the exemption in each succeeding year by renewal application as provided in Section 196.011(7), F.S., or by county waiver of the annual application requirement as provided in Section 196.011(10), F.S.

(4) Each new applicant for an exemption under Section 196.031, 196.081, 196.091, 196.101, 196.102, 196.173, or 196.202, F.S., must provide his or her social security number and the social security number of his or her spouse, if any, in the applicable spaces provided on the application form DR-501, Original Application for Homestead and Related Tax Exemptions (incorporated by reference in Rule 12D-16.002, F.A.C.). Failure to provide such numbers will render the application incomplete. If an applicant omits the required social security numbers and files an otherwise complete application, the property appraiser shall contact that applicant and afford the applicant the opportunity to file a complete application on or before April 1. Failure to file a completed application on or before April 1 shall constitute a waiver of the exemption for that tax year, unless the applicant can demonstrate that failure to timely file a completed application was the result of a postal error or, upon filing a timely petition to the value adjustment board, that the failure was due to extenuating circumstances as provided in Section 196.011, F.S.

(5) In those counties which permit the automatic renewal of homestead exemption, the property appraiser may request a refiling of the application in order to obtain the social security number of the applicant and the social security number of the applicant’s spouse.

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 192.047, 196.011 FS. History–New 10-12-76, Amended 11-10-77, Formerly 12D-7.01, Amended 11-21-91, 12-27-94, 12-31-98, 1-17-18, Technical Change 6-4-26.

Fla. Admin. Code R. 12D-7.002 Exemption of Household Goods and Personal Effects

Only household goods and personal effects of the taxpayer which are actually employed in the use of serving the creature comforts of the owner and not held for commercial purposes are entitled to the exemption provided by Section 196.181, F.S. “Creature comforts” are things which give bodily comfort, such as food, clothing and shelter. Commercial purposes includes owning household goods and personal effects as stock in trade or as furnishings in rental dwelling units.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.001, 196.181 FS. History–New 10-12-76, Formerly 12D-7.02, Amended 12-31-98.

Fla. Admin. Code R. 12D-7.003 Exemption of Property of Widows, Widowers, Blind Persons, and Persons Totally and Permanently Disabled; Disabled Ex-Service Members, Spouses

(1) For the purposes of the exemption provided in Section 196.202, F.S.:

(a) The provisions of this rule shall apply to widows and widowers. The terms “widow” and “widower” shall not apply to:

1. A divorced woman or man;

2. A widow or widower who remarries; or

3. A widow or widower who remarries and is subsequently divorced.

(b) The term “widow” shall apply to a woman, and the term “widower” shall apply to a man, whose subsequent remarriage is terminated by annulment.

(c) Blind persons means those persons who are currently certified by the Division of Blind Services of the Department of Education or the Federal Social Security Administration or United States Department of Veterans Affairs to be blind. As used herein “blind person” shall mean an individual having central vision acuity 20/200 or less in the better eye with correcting glasses or a disqualifying field defect in which the peripheral field has contracted to such an extent that the widest diameter or visual field subtends an angular distance no greater than twenty degrees.

(d) The exemptions provided under Section 196.202, F.S., are cumulative. An individual who properly qualifies under more than one classification will be granted more than one $5,000 exemption. However, the cumulative exemption under Section 196.202, F.S., may not exceed $15,000 for an individual.

(e) Where both husband and wife otherwise qualify for the exemption, each would, under Section 196.202, F.S., be entitled to an exemption of $5,000 applicable against the value of property owned by them as an estate by the entirety.

(2)(a) The $5,000 exemption granted by Section 196.24, F.S., to disabled ex-service members, as defined in Section 196.012, F.S., who were discharged under honorable conditions, is considered to be the same constitutional disability exemption provided for by Section 196.202, F.S. The unremarried surviving spouse of such a disabled ex-service member is allowed the exemption.

(b) The exemptions under Sections 196.202 and 196.24, F.S., are cumulative; however, the aggregate exemption may not exceed $15,000 for an individual. When the surviving spouse is also eligible to claim the $5,000 disabled ex-service member disability exemption under Section 196.24, F.S., the cumulative exemption may not exceed $20,000 for an individual.

(3) The exemptions granted by Sections 196.202 and 196.24, F.S., apply to any property owned by a bona fide resident of this state.

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 196.202, 196.24 FS. History–New 10-12-76, Formerly 12D-7.03, Amended 11-21-91, 12-31-98, 12-30-02, 1-1-04, 1-16-06, 10-2-07, 9-17-18, 1-1-23.

Fla. Admin. Code R. 12D-7.004 Exemption for Certain Permanently and Totally Disabled Veterans and Surviving Spouses of Certain Veterans

(1) This rule applies to the total exemption from taxation of the homestead property of a veteran who was honorably discharged and who has a service-connected total and permanent disability and of surviving spouses of veterans who died from service-connected causes while on active duty as a member of the United States Armed Forces as described in Section 196.081, F.S.

(2) The disabling injury of a veteran or death of a veteran while on active duty must be service-connected in order for the veteran or surviving spouse to be entitled to the exemption. The veteran, his or her spouse, or surviving spouse must have a letter from the United States Government or from the United States Department of Veterans Affairs or its predecessor certifying that the veteran has a service-connected total and permanent disability or that the death of the veteran resulted from service-connected causes while on active duty.

(3) A service-connected disability is not required to be total and permanent at the time of honorable discharge but must be total and permanent on January 1 of the year of application for the exemption or on January 1 of the year during which the veteran died.

(4)(a) This paragraph shall apply where the deceased veteran possessed the service-connected permanent and total disability exemption upon death. The exemption shall carry over to the veteran’s spouse if the following conditions are met:

1. The veteran predeceases the spouse;

2. The spouse continues to reside on the property and use it as his or her primary residence;

3. The spouse does not remarry; and,

4. The spouse holds legal or beneficial title.

(b) This paragraph shall apply where the deceased veteran was totally and permanently disabled with a service-connected disability at the time of death but did not possess the exemption upon death. The surviving spouse is entitled to the exemption if the following conditions are met:

1. The veteran predeceases the spouse;

2. The spouse continues to reside on the property and use it as his or her primary residence;

3. The spouse does not remarry;

4. The spouse holds legal or beneficial title; and,

5. The spouse produces the required letter of disability.

(c) This paragraph shall apply where the veteran died from service-connected causes while on active duty. The surviving spouse is entitled to the exemption if the following conditions are met:

1. The spouse continues to reside on the property and use it as his or her primary residence;

2. The spouse does not remarry;

3. The spouse holds legal or beneficial title; and,

4. The spouse produces the required letter attesting to the service-connected death of the veteran while on active duty.

(5) The surviving spouse is entitled to the veteran’s exemption if the surviving spouse establishes a new homestead after selling the homestead upon which the exemption was initially granted. In the event the spouse sells the property, the exemption, in the amount of the exempt value on the most recent tax roll on which the exemption was granted, may be transferred to his or her new homestead; however, the exemption cannot exceed the amount of the exempt value granted from the prior homestead.

(6) A surviving spouse is not entitled to the homestead assessment increase limitation on the homestead property unless the spouse’s residence on the property is continuous and permanent, regardless of the potential applicability of a disabled or deceased veteran’s exemption. Where the spouse transfers the exemption to a new homestead as provided in Section 196.081(3), F.S., the property must be assessed at just value as of January 1 of the year the property receives the transfer of the exempt amount from the previous homestead.

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 196.081 FS. History–New 10-12-76, Formerly 12D-7.04, Amended 12-27-94, 12-30-97, 12-31-98, 11-12-20, 6-13-22.

Fla. Admin. Code R. 12D-7.005 Exemption for Disabled Veterans Confined to Wheelchairs

(1) Although the certificate of disability referred to in Section 196.091(1), F.S., would be sufficient proof upon which the property appraiser could allow the tax exemption, this does not mean that the property appraiser could not deny such exemption if, upon his investigation, facts were disclosed which showed a lack of service-connected total disability.

(2)(a) This paragraph shall apply where the deceased veteran possessed the exemption upon death. The exemption shall carry over to the veteran’s spouse if the following conditions are met:

1. The veteran predeceases the spouse;

2. The spouse continues to reside on the property and use it as his or her domicile;

3. The spouse does not remarry; and,

4. The spouse holds legal or beneficial title and held the property with the veteran by tenancy by the entireties at the veteran’s death.

(b) Where the deceased veteran was totally and permanently disabled with a service-connected disability requiring use of a wheelchair at the time of the veteran’s death but did not possess the exemption upon death, the surviving spouse is not entitled to the exemption.

(3) The surviving spouse is not entitled to the veteran’s exemption if the spouse establishes a new homestead after selling the homestead upon which the exemption was initially granted.

(4) The surviving spouse is not entitled to the homestead assessment increase limitation on the homestead property unless the spouse’s residence on the property is continuous and permanent, regardless of the potential applicability of a disabled veteran’s exemption. In such circumstances where the spouse remarries, as provided in Section 196.091(3), F.S., the property continues to qualify for the homestead assessment increase limitation.

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 196.091 FS. History–New 10-12-76, Formerly 12D-7.05, Amended 12-27-94, 6-13-22.

Fla. Admin. Code R. 12D-7.0055 Exemption for Deployed Servicemembers

(1) This rule applies to the exemption provided in Section 196.173, F.S., for servicemembers who receive a homestead exemption and who were deployed during the previous tax year. For the purposes of this rule the following definitions will apply:

(a) “Servicemember” means a member or former member of:

1. Any branch of the United States military or military reserves,

2. The United States Coast Guard or its reserves, or

3. The Florida National Guard.

(b) “Deployed” means:

1. On active duty,

2. Outside of the continental United States, Alaska or Hawaii, and

3. In support of a designated operation.

(c) “Designated Operation” means an operation designated by the Florida Legislature. The Department will annually provide all property appraisers with a list of operations which have been designated.

(2)(a) Application for this exemption must be made by March 1 of the year following the qualifying deployment. If the servicemember fails to make a timely application for this exemption, the property appraiser may grant the exemption on a late application if they believe circumstances warrant that it be granted. The servicemember may also petition the value adjustment board to accept the late application no later than 25 days after the mailing of the notice provided under Section 194.011(1), F.S.

(b) Application for this exemption must be made on Form DR-501M, Deployed Military Exemption Application (incorporated by reference in Rule 12D-16.002, F.A.C.).

(c) In addition to the application, the servicemember must submit to the property appraiser deployment orders or other proof of the qualifying deployment which includes the dates of that deployment and other information necessary to verify eligibility for this exemption. If the servicemember fails to include this documentation with the application, the property appraiser has the authority to request the needed documentation from the servicemember before denying the exemption.

(d) Application for this exemption may be made by:

1. The servicemember,

2. The servicemember’s spouse, if the homestead is held by the entireties or jointly with right of survivorship,

3. A person holding a power of attorney or other authorization under Chapter 709, F.S., or

4. The personal representative of the servicemember’s estate.

(3) After receiving an application for this exemption, the property appraiser must consider the application within 30 days of its receipt or within 30 days of the notice of qualifying deployment, whichever is later. If the application is denied in whole or in part, the property appraiser must send a notice of disapproval to the taxpayer no later than July 1, citing the reason for the disapproval. The notice of disapproval must also advise the taxpayer of the right to appeal the decision to the value adjustment board.

(4) This exemption will apply only to the portion of the property which is the homestead of the deployed servicemember or servicemembers.

(5) The percentage exempt under this exemption will be calculated as the number of days the servicemember was deployed during the previous calendar year divided by the number of days in that year multiplied by 100.

(6) If the homestead property is owned by joint tenants with a right of survivorship or tenants by the entireties, the property may be granted multiple exemptions for deployed servicemembers. The following provisions will apply in the event that multiple servicemembers are applying for the exemption on the same homestead property:

(a) Each servicemember must make a separate application to the property appraiser listing the dates of their deployment.

(b) The property appraiser must separately calculate the exemption percentage for each servicemember.

(c) The property appraiser must then add the percentages exempt which were determined for each of the servicemembers who are joint tenants with rights of survivorship or tenants by the entirety before applying that percentage to the taxable value. In no event must the percentage exempt exceed 100%.

(7) When calculating exemptions and taxes due, the property appraiser must first apply the exemptions listed in Section 196.031(7), F.S., in the order specified, to produce school and county taxable values. The percentage exempt calculated under this exemption must then be applied to both taxable values producing final taxable values. The taxes due must then be calculated and the percentage discount for disabled veterans under Section 196.082, F.S., should then be applied.

(8) If the property is owned by either tenants in common or joint tenants without right of survivorship, the percentage discount allowed under this rule will only apply to the taxable value of the qualifying servicemembers’ interest in the property.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.001, 196.031, 196.082, 196.173 FS. History–New 11-1-12.

Fla. Admin. Code R. 12D-7.006 Exemption for Totally and Permanently Disabled Persons

(1) This rule applies to the total exemption from taxation for the homestead property of a totally and permanently disabled person.

(2) The homestead property of a quadriplegic is exempt.

(3) To provide evidence of entitlement to the exemption, a quadriplegic must furnish to the property appraiser one of the following:

(a) A Physician’s Certification of Total and Permanent Disability form DR-416, incorporated by reference in Rule 12D-16.002, F.A.C., from two doctors of this state licensed under Chapter 458 or 459, F.S.; or

(b) A certificate of disability from the United States Department of Veterans Affairs or its predecessor.

(4) Subject to the income limitations pursuant to Section 196.101, F.S., the homestead property of a paraplegic, hemiplegic, or any other totally and permanently disabled person who must use a wheelchair for mobility or who is legally blind is exempt from ad valorem taxation.

(5) To provide evidence of entitlement to the exemption, a paraplegic, hemiplegic, or other totally and permanently disabled person who must use a wheelchair, or a person who is legally blind must provide the following to the property appraiser:

(a)1. A Physician’s Certification of Total and Permanent Disability Form DR-416, from two doctors of this state licensed under Chapter 458 or 459, F.S.; or

2. A certificate of disability from the United States Department of Veterans Affairs or its predecessor; or

3. For blind persons, a Physician’s Certification of Total and Permanent Disability, Form DR-416, from one doctor of this state licensed under Chapter 458 or 459, F.S., and an Optometrist’s Certification of Total and Permanent Disability (Form DR-416B, incorporated by reference in Rule 12D-16.002, F.A.C.), from one optometrist licensed in this state under Chapter 463, F.S.; and,

(b) A Statement of Gross Income, Form DR-501A (incorporated by reference in Rule 12D-16.002, F.A.C.).

(6) Totally and permanently disabled persons must make application on Form DR-501, (incorporated by reference in Rule 12D-16.002, F.A.C.) in conjunction with the disability documentation, with the property appraiser on or before March 1 of each year.

(7) In order to qualify for the homestead exemption under this rule section, the totally and permanently disabled person must have been a permanent resident on January 1 of the year in which the exemption is claimed.

(8) The exemption documentation required of permanently and totally disabled persons is prima facie evidence of the fact of entitlement to the exemption; however, the property appraiser may deny the exemption if, upon his investigation, facts are disclosed which show absence of sufficient disability for the exemption.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.012(11), 196.101 FS. History–New 10-12-76, Formerly 12D-7.06, Amended 12-27-94, 11-1-12.

Fla. Admin. Code R. 12D-7.007 Homestead Exemptions – Residence Requirement

(1) For one to make a certain parcel of land his permanent home, he must reside thereon with a present intention of living there indefinitely and with no present intention of moving therefrom.

(2) A property owner who, in good faith, makes real property in this state his permanent home is entitled to homestead tax exemption, notwithstanding he is not a citizen of the United States or of this State (Smith v. Voight, 28 So.2d 426 (Fla. 1946)).

(3) A person in this country under a temporary visa cannot meet the requirement of permanent residence or home and, therefore, cannot claim homestead exemption.

(4) A person not residing in a taxing unit but owning real property therein may claim such property as tax exempt under Section 6, Article VII of the State Constitution by reason of residence on the property of natural or legal dependents provided he can prove to the satisfaction of the property appraiser that he claims no other homestead tax exemption in Florida for himself or for others legally or naturally dependent upon him for support. It must also be affirmatively shown that the natural or legal dependents residing on the property which is claimed to be exempt by reason of a homestead are entirely or largely dependent upon the landowner for support and maintenance.

(5) The Constitution contemplates that one person may claim only one homestead exemption without regard to the number of residences owned by him and occupied by “another or others naturally dependent upon” such owner. This being true no person residing in another county should be granted homestead exemption unless and until he presents competent evidence that he only claims homestead exemption from taxation in the county of the application.

(6) The survivor of a deceased person who is living on the property on January 1 and making same his permanent home, as provided by Section 6, Article VII of the Constitution is entitled to claim homestead exemption if the will of the deceased designates the survivor as the sole beneficiary. This is true even though the owner died before January 1 and by the terms of his will declared the sole beneficiary as the executor of his will. The application should be signed as sole beneficiary and as executor.

(7) A married woman and her husband may establish separate permanent residences without showing “impelling reasons” or “just ground” for doing so. If it is determined by the property appraiser that separate permanent residences and separate “family units” have been established by the husband and wife, and they are otherwise qualified, each may be granted homestead exemption from ad valorem taxation under Article VII, Section 6, 1968 State Constitution. The fact that both residences may be owned by both husband and wife as tenants by the entireties will not defeat the grant of homestead ad valorem tax exemption to the permanent residence of each.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.031, 196.041 FS. History–New 10-12-76, Amended 11-10-77, Formerly 12D-7.07.

Fla. Admin. Code R. 12D-7.008 Homestead Exemptions – Legal or Equitable Title

(1) The Constitution requires that the homestead claimant have the legal title or beneficial title in equity to the real property claimed as his tax-exempt homestead. Section 196.031(1), F.S., requires that the deed or other instrument to homestead property be recorded in order to qualify for homestead exemption.

(2) Vendees in possession of real estate under bona fide contracts to purchase shall be deemed to have equitable title to real estate.

(3) A recitation in a contract for the purchase and sale of real property, that the equitable title shall not pass until the full purchase price is paid, does not bar the purchaser thereof from claiming homestead exemption upon the same if he otherwise qualifies.

(4) Assignment of a contract for deed to secure a loan will not defeat a claim for homestead exemption by the vendee in possession.

(5) A forfeiture clause in a contract for deed for non-payment of installments will not prevent the vendee from claiming homestead exemption.

(6) A vendee under a contract to purchase, in order to be entitled to homestead exemption, must show that he is vested with the beneficial title in the real property by reason of said contract and that his possession is under and pursuant to such contract.

(7) A grantor may not convey property to a grantee and still claim homestead exemption even though there is a mutual agreement between the two that the deed is not to be recorded until some date in the future. The appraiser is justified in presuming that the delivery took place on the date of conveyance until such evidence is presented showing otherwise sufficient to overcome such presumption. The appraiser may back assess the property upon discovery that the exemption was granted erroneously.

(8) A person who owns a leasehold interest in either a residential or a condominium parcel pursuant to a bona fide lease having an original term of 98 years or more, shall be deemed to have legal or beneficial and equitable title to that property for the purpose of homestead exemption and no other purpose.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.031, 196.041 FS. History–New 10-12-76, Formerly 12D-7.08, Amended 12-27-94.

Fla. Admin. Code R. 12D-7.009 Homestead Exemptions – Life Estates

(1) A life estate will support a claim for homestead exemption.

(2) Where the owner of a parcel of real property conveys it to another who is a member of a separate family unit retaining a life estate in an undivided one-half interest therein, and each of such parties make their permanent homes in separate residential units located upon the said property, each would be entitled to homestead exemption on that part of the land occupied by them and upon which they make their permanent home.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.031, 196.041 FS. History–New 10-12-76, Formerly 12D-7.09.

Fla. Admin. Code R. 12D-7.010 Homestead Exemptions – Remainders

(1) A future estate, whether vested or contingent, will not support a claim for homestead exemption during the continuance of a prior estate. (Aetna Insurance Co. v. La Gassee, 223 So.2d 727 (Fla. 1969)).

(2) If the remainderman is in possession of the property during a prior estate, he must be claiming such right to possession under the prior estate and not by virtue of his own title; it must be presumed that the right granted under the life estate is something less than real property and incapable of supporting a claim for homestead exemption.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.031, 196.041 FS. History–New 10-12-76, Formerly 12D-7.10.

Fla. Admin. Code R. 12D-7.011 Homestead Exemptions – Trusts

The beneficiary of a passive or active trust has equitable title to real property if he is entitled to the use and occupancy of such property under the terms of the trust; therefore, he has sufficient title to claim homestead exemption. AGO 90-70. Homestead tax exemption may not be based upon residence of a beneficiary under a trust instrument which vests no present possessory right in such beneficiary.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.001, 196.031, 196.041 FS. History–New 10-12-76, Formerly 12D-7.11, Amended 2-25-96.

Fla. Admin. Code R. 12D-7.012 Homestead Exemptions – Joint Ownership

(1) No residential unit shall be entitled to more than one homestead tax exemption.

(2) No family unit shall be entitled to more than one homestead tax exemption.

(3) No individual shall be entitled to more than one homestead tax exemption.

(4)(a) This paragraph shall apply where property is held by the entireties or jointly with a right of survivorship.

1. Provided no other co-owner resides on the property, a resident co-owner of such an estate, if otherwise qualified, may receive the entire exemption.

2. Where another co-owner resides on the property, in the same residential unit, the resident co-owners of such an estate, if otherwise qualified, must share the exemption in proportion to their ownership interests.

(b) Where property is held jointly as a tenancy in common, and each co-owner makes their residence in a separate family unit and residential unit on such property, each resident co-owner of such an estate, if otherwise qualified, may receive the exemption in the amount of the assessed value of his or her interest, up to $25,000. No tenant in common shall receive the homestead tax exemption in excess of the assessed valuation of the proportionate interest of the person claiming the exemption.

(5) Property held jointly will support multiple claims for homestead tax exemption; however, only one exemption will be allowed each residential unit and no family unit will be entitled to more than one exemption.

(6)(a) Where a parcel of real property, upon which is located a residential unit held by “A” and “B” jointly as tenants in common or joint tenants without a right of survivorship, and “A” makes his permanent home upon the said property, but “B” resides and makes his permanent home elsewhere, “A” may not claim as exempt more than his interest in the property up to a total of $25,000 of assessed valuation on which he is residing and making the same his permanent home. The remainder of the interest of “A” and the interest of “B” would be taxed, without exemption, because “B” is not residing on the property or making the same his permanent residence.

(b) If that same parcel were held by “A” and “B” as joint tenants with a right of survivorship or tenants by the entirety under the circumstances described above, “A” would be eligible for the entire $25,000 exemption.

(7) In the situation where two or more joint owners occupy the same residential unit, a single homestead tax exemption shall be apportioned among the owners as their respective interests may appear.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.001, 196.031, 196.041 FS. History–New 10-12-76, Formerly 12D-7.12, Amended 12-27-94, 12-25-96.

Fla. Admin. Code R. 12D-7.013 Homestead Exemptions – Abandonment

(1) Temporary absence from the homestead for health, pleasure or business reasons would not deprive the property of its homestead character (Lanier v. Lanier, 116 So. 867 (Fla. 1928)).

(2) When a resident and citizen of Florida, now entitled to tax exemption under Section 6, Article VII of the State Constitution upon certain real property owned and occupied by him, obtains an appointment of employment in Federal Government services that requires him to reside in Washington, District of Columbia, he does not lose his right to homestead exemption if his absence is temporary. He may not, however, acquire another homestead at the place of his employment, nor may he rent the property during his absence as this would be considered abandonment under Section 196.061, F.S.

(3) Temporary absence, regardless of the reason for such, will not deprive the property of its homestead character, providing an abiding intention to return is always present. This abiding intention to return is not to be determined from the words of the homesteader, but is a conclusion to be drawn from all the applicable facts (City of Jacksonville v. Bailey, 30 So.2d 529 (Fla. 1947)).

(4) Commitment to an institution as an incompetent will not of itself constitute an abandonment of homestead rights.

(5) Property used as a residence and also used by the owner as a place of business does not lose its homestead character. The two uses should be separated with that portion used as a residence being granted the exemption and the remainder being taxed.

(6) Homestead property that is uninhabitable due to damage or destruction by misfortune or calamity shall not be considered abandoned in accordance with the provisions of Section 196.031(6), F.S., where:

(a) The property owner notifies the property appraiser of his or her intent to repair or rebuild the property;

(b) The property owner notifies the property appraisers of his or her intent to occupy the property after the property is repaired or rebuilt;

(c) The property owner does not claim homestead exemption elsewhere; and,

(d) The property owner commences the repair or rebuilding of the property within three (3) years after January 1 following the damage or destruction to the property.

(7) After the three (3) year period, the expiration, lapse, nonrenewal, or revocation of a building permit issued to the property owner for such repairs or rebuilding also constitutes abandonment of the property as homestead.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.001, 196.031, 196.041, 196.061, 196.071 FS. History–New 10-12-76, Formerly 12D-7.13, Amended 10-2-07, 11-1-12.

Fla. Admin. Code R. 12D-7.0135 Homestead Exemptions – Mobile Homes

(1) For purposes of qualifying for the homestead exemption, the mobile home must be determined to be permanently affixed to realty, as provided in rule Chapter 12D-6, F.A.C. Otherwise, the applicant must be found to be making his permanent residence on realty.

(2) Where a mobile home owner utilizes a mobile home as a permanent residence and owns the land on which the mobile home is located, the owner may, upon proper application, qualify for a homestead exemption.

(3) Joint tenants holding an undivided interest in residential property are each entitled to a full homestead exemption to the extent of each joint tenant’s interest, provided all requisite conditions are met. Joint tenants owning a mobile home qualify for a homestead exemption even though the property on which the mobile home is located is owned in joint tenancy by more persons than just those who own the mobile home. Each separate residential or family unit is entitled to a homestead exemption. The value of the applicant’s proportionate interest in the land shall be added to the value of the applicant’s proportionate interest in the mobile home and this value may be exempted up to the statutory limit.

(4) If a mobile home is owned as an estate by the entireties, the homestead exemptions of Section 196.031, F.S. and the additional homestead exemptions are applicable if either spouse qualifies.

(5) No homestead exemption shall be allowed by the property appraiser if there is no current license sticker on January 1, unless the property appraiser determines prior to the July 1 deadline for denial of the exemption that the mobile home was in fact permanently affixed on January 1 to real property and the owner of the mobile home is the same as the owner of the land.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.075, 196.031, 196.041, 196.091 FS. History–New 5-13-92.

Fla. Admin. Code R. 12D-7.014 Homestead Exemptions – Civil Rights

(1) Although loss of suffrage is one consequence of a felony conviction, the person so convicted is not thereby deprived of his right to obtain homestead exemption.

(2) An unmarried minor whose disabilities of non-age have not been removed may not maintain a permanent home away from his parents such as to entitle him or her to homestead exemption (Beckman v. Beckman, 43 So. 923 (Fla. 1907)).

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.031 FS. History–New 10-12-76, Formerly 12D-7.14.

Fla. Admin. Code R. 12D-7.0142 Additional Homestead Exemption

(1) A taxpayer who receives the $25,000 homestead exemption may claim the additional homestead exemption of up to $25,000 on the assessed value greater than $50,000.

(2) To apply for the additional homestead exemption, no new application form is needed. Form DR-501, (incorporated by reference in Rule 12D-16.002, F.A.C.), will be considered the application for exemption.

(3) The additional homestead exemption applies only to non-school levies.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.031 FS. History–New 11-1-12.

Fla. Admin. Code R. 12D-7.0143 Additional Homestead Exemptions for Persons 65 and Older with Limited Household Income

(1) The following procedures apply in counties and municipalities that have granted additional homestead exemptions for persons 65 and older on January 1, whose household income for the prior year does not exceed $20,000, adjusted annually on January 1, by the percentage change in the average cost-of-living index. The annual adjusted income limitation for person 65 and older is available on the Department’s website at floridarevenue.com/property/Pages/DataPortal.aspx.

(2) A taxpayer applying for an additional exemption for the first time is required to submit an Original Application for Homestead and Related Tax Exemptions (Form DR-501) and a Household Income Sworn Statement and Return (Form DR-501SC) to the property appraiser by March 1 of the current tax year. Forms DR-501 and DR-501SC are incorporated by reference in Rule 12D-16.002, F.A.C. The sworn statement and return must be supported by copies of the documents listed in Form DR-501SC required to be submitted for inspection by the property appraiser.

(3) The property appraiser may rely on information submitted with the Form DR-501SC for appropriate proof of age.

(4) The property appraiser may not grant the exemption if the required documentation including what is requested by the property appraiser is not provided.

(5) After the property appraiser has granted the exemption, the property appraiser must annually notify the taxpayer of the adjusted income limitation. The taxpayer must notify the property appraiser by May 1, if the taxpayer’s household income exceeds the adjusted income limitation. The property appraiser may use Form DR-500AR, Removal of Homestead Exemption(s) [front side of form]; Automatic Renewal for Homestead Exemption [back side of form], to exchange this information. Form DR-500AR is incorporated by reference in Rule 12D-16.002, F.A.C.

History

• Rulemaking Authority 195.027(1), 196.075(4)(d), (5) FS. Law Implemented 193.074, 196.075 FS. History–New 12-30-99, Amended 12-30-02, 11-1-12, 6-13-22.

Fla. Admin. Code R. 12D-7.015 Educational Exemption

(1) Actual membership in or a bona fide application for membership in the accreditation organizations or agencies enumerated in Section 196.012(5), F.S., shall constitute prima facie evidence that the applicant is an educational institution, the property of which may qualify for exemption.

(2) If the aforementioned application has not been made, the property appraiser, in determining whether the requirements of Section 196.198, F.S., have been satisfied, may consider information such as that considered by the accreditation organizations or agencies enumerated in Section 196.012(5), F.S., in granting membership, certification, or accreditation.

(3) A child care facility that achieves Gold Seal Quality status under Section 1002.945, F.S., and that is either licensed under Section 402.305, F.S., or exempt from licensing under Section 402.316, F.S., is considered an educational institution for the education exemption from ad valorem tax.

(4) Facilities, or portions thereof, used to house a charter school which meet the qualifications for exemption are exempt from ad valorem taxation as provided under Section 196.1983, F.S.

(5) An institution of higher education participating in the Higher Educational Facilities Financing Act, created under chapter 2001-79, Laws of Florida, is considered an educational institution for exemption from ad valorem tax. An institution of higher education, as defined, means an independent nonprofit college or university which is located in and chartered by the state; which is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools; which grants baccalaureate degrees; and which is not a state university or state community college.

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 196.012, 196.198, 196.1983 FS., Chapter 2001-79, LOF. History–New 10-12-76, Formerly 12D-7.15, Amended 12-30-97, 12-30-99, 1-2-01, 12-3-01.

Fla. Admin. Code R. 12D-7.0155 Enterprise Zone Exemption for Child Care Facilities

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.095 FS. History–New 12-30-99, Repealed 2-8-24.

Fla. Admin. Code R. 12D-7.016 Governmental Exemptions

(1) State property used for a governmental purpose shall include such property used for a purpose for the benefit of the people of this state and which is essential to the existence of the state as a governmental agency or serves a function or purpose which would otherwise be a valid allocation of public funds.

(2) Real property of a county authority utilized for a governmental purpose shall be exempt from taxation (Hillsborough Co. Aviation Authority v. Walden, 210 So.2d 193 (Fla. 1968)).

(3) Exclusive use of property for a municipal purpose shall be construed to mean a public purpose and exemption shall inure to the property itself, wherever located within the state when owned and used for municipal purposes (Gwin v. City of Tallahassee, 132 So.2d 273 (Fla. 1961); Overstreet v. Indian Creek Village, 248 So.2d 2 (Fla. 1971)).

(4) Property exempt from ad valorem taxation as property of the United States includes:

(a) Any real property received or owned by the National Park Foundation.

(b) Any real property held by the Roosevelt Campobello International Park Commission.

(c) Any real property of the United States Housing Authority.

(5) Property not exempt from ad valorem taxation as property of the United States includes:

(a) Real property of federal and joint-stock land banks, national farm loan associations and federal land bank associations.

(b) Real property of national banking associations.

(c) Real property of federal home loan banks.

(d) Real property of federal savings and loan associations.

(e) Real property of federal credit unions.

(f) Leasehold interests in certain housing projects located on property held by the federal government. (Offutt Housing Co. v. Sarpy, 351 U.S. 253, 256)

(g) Real property of federal home loan mortgage corporations.

(h) Any real property acquired by the Secretary of Housing and Urban Development as a result of reinsurance pursuant to actions of the National Insurance Development Fund.

(i) Real property of Governmental National Mortgage Association and National Mortgage Association.

(6) Leasehold interests in governmentally owned real property used in an aeronautical activity as a full-service fixed-base operation which provides goods and services to the general aviation public in the promotion of air commerce are exempt from ad valorem taxation, provided the real property is designated as an aviation area which has aircraft taxiway access to an active runway for take-off on an airport layout plan approved by the Federal Aviation Administration.

(a) A “fixed-base operator” is a commercial entity providing aeronautical services, such as fueling, maintenance, storage, and ground and flight instruction, to the public. See Federal Aviation Administration Order 5190.6B, Change 3.

(b) An “aeronautical activity” is any activity which involves, makes possible, or is required for the operation of aircraft, or that contributes to or is required for the safety of such operations. See Appendix Z, Federal Aviation Administration Order 5190.6B Change 3. The following examples are not considered aeronautical activities: ground transportation (taxis, car rentals, limousines); hotels and motels; restaurants; barber shops; travel agencies and auto parking lots.

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 196.012, 196.199 FS. History–New 10-12-76, Formerly 12D-7.16, Amended 12-27-94, 2-15-26.

Fla. Admin. Code R. 12D-7.017 Exemption of Homes for the Aged

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.197, 196.1975, 213.05 FS. History–New 10-12-76, Formerly 12D-7.17, Amended 10-11-77, 12-28-95, 12-30-99, Repealed 1-2-01.

Fla. Admin. Code R. 12D-7.018 Fraternal and Benevolent Organizations

(1) The property of non-profit fraternal and benevolent organizations is entitled to full or predominant exemption from ad valorem taxation when used exclusively or predominantly for charitable, educational, literary, scientific or religious purposes. The extent of the exemption to be granted to fraternal and benevolent organizations shall be determined in accordance with those provisions of Chapter 196, F.S., which govern the exemption of all property used for charitable, educational, literary, scientific or religious purposes.

(2) The exclusive or predominant use of property or portions of property owned by fraternal and benevolent organizations and used for organization, planning, and fund-raising activity under Section 196.193(3), F.S., for charitable purposes constitutes the use of the property for exempt purposes to the extent of the exclusive or predominant use. The incidental use of said property for social, fraternal, or similar meetings shall not deprive the property of its exempt status. It is not necessary that public funds actually be allocated for such function or service pursuant to Section 196.012(7), F.S.

(3) Any part or portion of the real or personal property of a fraternal or benevolent organization leased or rented for commercial or other non-exempt purposes, or used by such organization for commercial purposes, such as a bar, restaurant, or swimming pool, shall not be exempt from ad valorem taxes but shall be taxable to the extent specified in Sections 196.192 and 196.012(3), F.S. In determining commercial purposes, pursuant to Sections 196.195(2)(e) and 196.196(1)(b), F.S., the reasonableness of the charges in relation to the value of the services shall be considered as well as whether the excess is used to pay maintenance and operational expenses in furthering the exempt purposes or to provide services to persons unable to pay for the services.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.012, 196.192, 196.195, 196.196 FS. History–New 10-12-76, Formerly 12D-7.18, Amended 11-21-91, 12-30-99.

Fla. Admin. Code R. 12D-7.019 Tangible Personal Property Exemption

(1) The filing of a complete Form DR-405, Tangible Personal Property Tax Return, or Form DR-470A, Railroad Company Annual Report and Return to the State of Florida (forms incorporated by reference in Rule 12D-16.002, F.A.C.), shall be considered the application for exemption.

(2) Taxpayers who fail to file complete returns by April 1 or within any applicable extension period, shall not receive the $25,000 exemption. However, at the option of the property appraiser, owners of property previously assessed without a return being filed may qualify for the exemption without filing an initial return. Nothing in this rule shall preclude a property appraiser from requiring that Form DR-405 be filed. Returns not timely filed shall be subject to the penalties enumerated in Section 193.072, F.S. Claims of more exemptions than allowed under Section 196.183(1), F.S., are subject to the taxes exempted as a result of wrongfully claiming the additional exemptions plus penalties on these amounts as enumerated in Section 196.183(5), F.S.

(3) Section 196.183(1), F.S., states that a single return must be filed, and therefore a single exemption granted, for all freestanding equipment not located at the place where the owner of tangible personal property transacts business.

(4) “Site where the owner of tangible personal property transacts business.”

(a) Section 196.183(2), F.S., defines “site where the owner of tangible personal property transacts business.” A “site where the owner of tangible personal property transacts business” includes facilities where the business ships or receives goods, employees of the business are located, goods or equipment of the business are stored, or goods or services of the business are produced, manufactured, or developed, or similar facilities located in offices, stores, warehouses, plants, or other locations of the business. Sites where only the freestanding property of the owner is located shall not be considered sites where the owner of tangible personal property transacts business.

(b) Example: A business owns copying machines or other freestanding equipment for lease. The location where the copying machines are leased or where the freestanding equipment of the owner is placed does not constitute a site where the owner of the equipment transacts business. If it is not a site where one or more of the activities stated in subsection (a) occur, for purposes of the tangible personal property exemption, it is not considered a site where the owner transacts business.

(5) Property Appraiser Actions – Maintaining Assessment Roll Entry. For all freestanding equipment not located at a site where the owner of tangible personal property transacts business, and for which a single return is required, and for property assessed under Section 193.085, F.S., the property appraiser is responsible for allocating the exemption to those taxing jurisdictions in which freestanding equipment or property assessed under Section 193.085, F.S. is located. Allocation should be based on the proportionate share of the just value of such property in each jurisdiction. However, the amount of the exemption allocated to each taxing authority may not change following the extension of the tax roll under Section 193.122, F.S.

(6) By February 1 of each year, the property appraiser shall notify by mail all taxpayers whose requirement for filing an annual tangible personal property tax return was waived in the previous year. The notification shall state that a return must be filed if the value of the taxpayer’s tangible personal property exceeds the exemption and shall include notification of the penalties for failure to file such a return. Form DR-405W, Notice to Taxpayer Whose Tangible Personal Property Return was Waived in the Previous Year (incorporated by reference in Rule 12D-16.002, F.A.C.), may be used by property appraisers at their option.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.122, 196.183 FS. History–New 11-1-12.

Fla. Admin. Code R. 12D-7.020 Exemption for Real Property Dedicated in Perpetuity for Conservation

(1) To apply for the exemption in Section 196.26, F.S., a property owner must submit an original application to the property appraiser by March 1, as outlined in Section 196.011, F.S.

(2) The Department prescribes Form DR-418C, Real Property Dedicated in Perpetuity for Conservation, Exemption Application, incorporated by reference in Rule 12D-16.002, F.A.C. Property owners must use this form to apply for the exemption in Section 196.26, F.S.

(3) If the land is no longer eligible for this exemption, the owner must promptly notify the property appraiser. If the owner fails to notify the property appraiser and it is determined the land was not eligible for this exemption for any time within the last 10 years, the owner is subject to taxes exempted plus 18% interest each year and a penalty of 100% of the taxes exempted. Any property of the owner will be subject to a lien for the unpaid taxes and penalties. (Section 196.011, F.S.).

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.011, 196.26 FS. History–New 11-1-12, Amended 9-19-17.

Chapter 12D-8 ASSESSMENT ROLL PREPARATION AND APPROVAL

Fla. Admin. Code R. 12D-8.001 All Property to Be Assessed

(1) General.

(a) The property appraiser shall make a determination of the value of all property (whether such property is taxable, wholly or partially exempt, or subject to classification reflecting a value less than its just value at its present highest and best use) located within the county according to its just or fair market value on the first day of January of each year and enter the same upon the appropriate assessment roll under the heading “Just Value.” If the parcel qualifies for a classified use assessment, the classified use value shall be shown under the heading “Classified Use Value.”

(b) The following are specifically excluded from the requirements of paragraph (a) above:

1. Streets, roads, and highways. The appraiser is not required to, but may assess and include on the appropriate assessment roll streets, roads, and highways which have been dedicated to or otherwise acquired by a municipality, a county, or a state or federal agency.

a. The terms “streets,” “roads,” and “highways” include all public rights-of-way for either or both pedestrian or vehicular travel.

b. The phrase “or otherwise acquired” shall mean that title to the property is vested in the municipality, county, state, or federal agency and shall not include an easement or mere right of use.

2. Improvements or portions not substantially completed on January 1 shall have no value placed thereon.

3. Inventory is exempt.

4. Growing annual agricultural crops, nonbearing fruit trees, nursery stock.

5. Household goods and personal effects of every person residing and making his or her permanent home in this state are exempt from taxation. Title to such household goods and personal effects may be held individually, by the entireties, jointly, or in common with others. Storage in a warehouse, or other place of safekeeping, in and of itself, does not alter the status of such property. Personal effects is a category of personal property which includes such items as clothing, jewelry, tools, and hobby equipment. No return of such property or claim for exemption need be filed by an eligible owner and no entries need be shown on the assessment roll.

(2) Agricultural lands shall be assessed in accordance with the provisions of Section 193.461, F.S., and these rules and regulations.

(3) Pollution control devices shall be assessed in accordance with the provisions of Section 193.621, F.S., and these rules and regulations.

(4) Land subject to a conservation easement, environmentally endangered lands, or lands used for outdoor recreational or park purposes when land development rights have been conveyed or conservation restrictions have been covenanted shall be assessed in accordance with the provisions of Section 193.501, F.S., and these rules.

(a) Petition – On or before April 1 of each year any taxpayer claiming right of assessment for ad valorem tax purposes under this rule and Section 193.501, F.S., may file a petition with the property appraiser requesting reclassification and reassessment of the land for the upcoming tax year.

(b) In the event the property appraiser determines that land development covenants, restrictions, rules or regulations imposed upon property described in said petition render development to the highest and best use no longer possible, he or she shall reclassify and reassess the property described in the petition and enter the new assessed valuation for the property on the roll with a notation indicating that this property receives special consideration as a result of development restrictions. For the purpose of complying with Section 193.501(7)(a), F.S., the property appraiser will also maintain a record of the value of such property as if the development rights had not been conveyed and the conservation restrictions had not been covenanted.

(5) Land Subject to a Moratorium (Section 193.011(2), F.S.).

(a) The property appraiser shall consider any moratorium imposed by law, ordinance, regulation, resolution, proclamation, or motion adopted by any governmental body or agency which prohibits, restricts, or impairs the ability of a taxpayer to improve or develop his property to its highest and best use in determining the value of the property.

1. The taxpayer, whose property is so affected, may file a petition with the property appraiser on or before April 1 requesting reclassification and reassessment for the current tax year.

2. The taxpayer’s right to receive a reclassification and reassessment under this rule and Section 193.011(2), F.S., shall not be impaired by his failure to file said petition with the property appraiser.

(b) In the event the property appraiser determines that restrictions placed upon land subject to a moratorium render development to the highest and best use no longer possible, he shall reclassify and reassess the property.

(6) High-water recharge lands shall be classified in accordance with Section 193.625, F.S. The assessment of high-water recharge lands must be based upon a formula adopted by ordinance by counties choosing to have a high-water recharge protection tax assessment program.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.011, 192.042, 193.011, 193.085, 193.114, 193.1142, 193.441(1), 193.451, 193.461, 193.501, 193.621, 193.625, 195.027, 196.181, 196.185 FS. History–New 12-7-76, Formerly 12D-8.01, Amended 12-25-96, 1-31-99.

Fla. Admin. Code R. 12D-8.002 Completion and Submission of Assessment Rolls

(1) The property appraiser shall complete the valuation of all property within his or her county and shall enter the valuations on the appropriate assessment roll not later than July 1 of each year.

(2) The Executive Director may, for a good cause shown, extend beyond July 1 the time for completion of any assessment roll.

(a) In requesting an extension of time for completion of assessments, the property appraiser shall file a request for such extension on a form prescribed by the Department or in an official letter which shall include the following:

1. An indication of the assessment roll or rolls for which an extension of time is requested for completion and the property appraiser’s estimate of the time needed for completion of each such roll.

2. The specific grounds upon which the request for extension of the time of completion of the assessment roll or rolls is based.

3. A statement that “the failure to complete the assessment roll(s) not later than July 1 of the taxable year is not due to negligence, carelessness, nor dilatory action over which I exercise any power, authority, or control.”

4. Date and signature of the property appraiser making the request.

5. If the request for extension of time is for more than 10 days and the request is not received in the office of the Executive Director prior to June 10 of the year in which the request is made, a statement as to why the request was not filed prior to June 10. A request for an extension of time of 10 days or less may be made at any time provided the request is received by the Executive Director prior to July 1.

(b) The Executive Director, the Executive Director’s designee may:

1. Require such additional information from the property appraiser as he or she may deem necessary in connection with the request for extension;

2. Conduct an investigation to determine the need for the requested extension and such other information as may be pertinent;

3. Grant to each property appraiser requesting it, one extension of time for the completion of any one or more of the assessment rolls for a period of not more than 10 days beyond July 1 of any year at his or her discretion.

4. Grant one or more extensions of time to a day certain to any property appraiser for the completion of any one or more of the assessment rolls for a period exceeding 10 days upon a finding that the extension is warranted by reason of one or more of the following:

a. A total reappraisal, to be included on the assessment roll or rolls, for which a request for extension of time has been requested is in progress, and such program has been conducted in a manner to avoid causing unreasonable or undue delay in completion of the assessment rolls.

b. An act or occurrence beyond the control of man, such as, but not limited to, destruction of records or equipment needed to compile an assessment roll, fire, flood, hurricane, or other natural catastrophe, or death;

c. An occurrence or non-occurrence not beyond the control of man, when such occurrence or non-occurrence was not for the purpose of delaying the completion of the assessment roll or rolls on the date fixed by law, July 1.

(3) Each assessment roll shall be submitted to the Executive Director of the Department of Revenue for review in the manner and form prescribed by the Department on or before the first Monday in July; however, an extension granted under subsection (2) above shall likewise extend the time for submission.

(4) Accompanying the assessment roll submitted to the Executive Director shall be, on a form provided by the Department, an accurate tabular summary by property class of any adjustments made to recorded selling prices or fair market value in arriving at assessed value. Complete, clear, and accurate documentation for each adjustment under Section 193.011(8), F.S., exceeding fifteen percent shall accompany this summary detailing how that percentage adjustment was calculated. This documentation shall include individual data for all sales used and a narrative on the procedures used in the study. In addition, an accurate tabular summary of per acre land valuations used for each class of agricultural property in preparing the assessment roll shall be submitted with the assessment roll to the Executive Director.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.001(18), 193.011(8), 193.023, 193.114, 193.1142(1)(b), 193.122 FS. History–New 12-7-76, Amended 9-30-82, Formerly 12D-8.02.

Fla. Admin. Code R. 12D-8.003 Possessory Interest on the Roll

The property appraiser shall enter the assessed value of an assessable possessory interest on the appropriate assessment roll according to the nature or character of the property possessed. Stated in other terms, if the possessory interest is in real property, then the assessment shall appear on the real property assessment roll; if it is an interest in tangible personal property or inventory, then the assessment shall appear on the Tangible Personal Property Assessment Roll.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.011, 193.011, 193.085, 193.114 FS. History–New 12-7-76, Formerly 12D-8.03.

Fla. Admin. Code R. 12D-8.004 Notice of Proposed Increase of Assessment from Prior Year

The notice mailed pursuant to Section 194.011, F.S., and Rule 12D-8.005, F.A.C., shall contain a statement advising the taxpayer that:

(1) Upon request the property appraiser or a member of his or her staff shall agree to a conference regarding the correctness of the assessment; and,

(2) He or she has a right to petition to the value adjustment board, and the procedures for doing so.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 194.011 FS. History–New 12-7-76, Amended 7-10-78, Formerly 12D-8.04.

Fla. Admin. Code R. 12D-8.005 Assessing Property Not Returned as Required by Law and Penalties Thereon

(1) The due date without an extension granted pursuant to Section 193.063, F.S., is April 1.

(a) If the taxpayer has failed to file a return on or before the due date, including any extensions, then, based upon the best information available, the property appraiser shall list the appropriate property on a return, assess it, and apply the 25 percent penalty thereon. An assessment made in this manner shall be considered an increased assessment and notice must be sent thereof in accordance with the provisions of Section 194.011, F.S., and Rule 12D-8.004, F.A.C.

(b) If a return is filed before the fifth month from the due date or the extended due date of the return, the penalty shall be reduced in accordance with the penalty schedule in Section 193.072(1)(b), F.S., and the property appraiser is authorized to waive the penalty entirely upon finding that good cause has been shown.

(2) When a return is filed, the property appraiser shall ascertain whether all property required to be returned is listed. If such property is unlisted on the return, the property appraiser shall:

(a) As soon as practicable after filing the return and based upon the best information available, list the property on the return, assess it, apply the 15 percent penalty thereon and to this sum apply any penalties provided in subsection (1) of this rule as may be appropriate. Assessing the property in this manner shall be considered an increased assessment and notice must be sent thereof in accordance with the provisions of Section 194.011(2), F.S., and Rule 12D-8.004, F.A.C.

(b) If the unlisted property is properly listed by the taxpayer, the property appraiser is authorized to reduce or waive the penalty entirely upon finding that good cause has been shown.

(3) When a return has property unlisted that renders the return so deficient as to indicate an intent to evade or illegally avoid the payment of lawful taxes, it shall be deemed a failure to file a return.

(4) For the purposes of determining whether a return was filed late or property was unlisted with the intention of illegally avoiding the payment of lawful taxes, consideration shall be given as to whether the taxpayer made a late or corrective filing before he was notified of an increased assessment.

(5) The property appraiser shall briefly state, in writing on the return, those facts and circumstances constituting good cause for waiving or reducing a penalty. The property appraiser shall reduce or waive penalty only upon a proper finding of good cause shown. “Good cause” means the exercise of ordinary care and prudence in the particular circumstances in complying with the law.

(6) Penalties shall be waived only as authorized by this rule.

(7) If no return is filed for two successive years, the property appraiser shall, for the second year no return is filed, inspect the property, examine the property owner’s financial records, or otherwise in good faith attempt to ascertain the just value of the property before otherwise assessing the property as provided in subsection (1) of this rule.

(8) The property appraiser may not waive or reduce penalties levied on railroad and other property assessed by the Department of Revenue.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.063, 193.072, 193.073 FS. History–New 12-7-76, Formerly 12D-8.05, Amended 12-27-94, 12-28-95, 12-31-98, 12-30-99.

Fla. Admin. Code R. 12D-8.006 Assessment of Property for Back Taxes

(1) “Escape taxation” means to get free of tax, to avoid taxation, to be missed from being taxed, or to be forgotten for tax purposes. Improvements, changes, or additions which were not taxed because of a clerical or some other error and are a part of and encompassed by a real property parcel which has been duly assessed and certified, should be included in this definition if back taxes are due under Section 193.073, 193.092 or 193.155(8), F.S. Property under-assessed due to an error in judgment should be excluded from this definition. Korash v. Mills, 263 So.2d 579 (Fla. 1972).

(2) The property appraiser shall, in addition to the assessment for the current year:

(a) Make a separate assessment for each year (not to exceed three) that the property has been entirely omitted from the assessment roll;

(b) Determine the value of the property as it existed on January 1 of each year that the property escaped taxation;

(c) Distinctly note on the assessment roll the year for which each assessment is made; and,

(d) Apply the millage levy for the year taxation was escaped, add the penalties, if applicable, and extend the tax. This shall be done for each year the property has escaped taxation, not to exceed three years.

(e) Assessments for back taxes shall appear on the assessment roll immediately following the assessment of the property for the current year, or on a supplemental roll immediately following the current roll.

(f) Any tabulation of valuations from the current roll shall not include assessments for back taxes but shall include, immediately after tabulations of the current roll totals, the corresponding tabulations for back assessed property with a notation identifying the figure as such.

(3) Back assessments of assessable leasehold or possessory interest in property of the United States, of the state, or any political subdivision, municipality, agency, authority, or other public body corporate of the state, are enforced as a personal obligation of the lessee and shall be placed on the roll in the name of the holder of the leasehold in the year(s) taxation was escaped.

(4) Back assessments of property acquired by a bona fide purchaser that had no knowledge that the property purchased had escaped taxation shall be assessed to the previous owner in accordance with Section 193.092(1), F.S. A “bona fide purchaser” means a purchaser, for value, in good faith, before the certification of the assessment of back taxes to the tax collector for collection.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.073, 193.092 FS. History–New 12-7-76, Formerly 12D-8.06, Amended 12-27-94, 12-31-98, 12-30-02.

Fla. Admin. Code R. 12D-8.0061 Assessments; Homestead Property Assessments at Just Value

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 193.011, 193.023, 193.155 FS. History–New 12-27-94, Amended 10-2-07, 11-1-12, Repealed 6-14-22.

Fla. Admin. Code R. 12D-8.0062 Assessments; Homestead; Limitations

(1) This rule governs the determination of the assessed value of property subject to the homestead assessment limitation under Article VII, Section 4(d), Florida Constitution and Section 193.155, F.S., except as it relates to changes, additions or improvements, changes of ownership, corrections, and transfers of homestead assessment limitation difference (“portability”).

(2) Just value is the standard for assessment of homestead property, subject to the provisions of Article VII, Section 4(d), Florida Constitution. Therefore, the property appraiser is required to determine the just value of each individual homestead property on January 1 of each year as provided in Section 193.011, F.S.

(3) Unless subsection (5) or (6) of this rule require a lower assessment, the assessed value shall be equal to the just value as determined under subsection (2) of this rule.

(4) The assessed value of each individual homestead property shall change annually, but shall not exceed just value.

(5) Where the current year just value of an individual property exceeds the prior year assessed value, the property appraiser is required to increase the prior year’s assessed value by the lower of:

(a) Three percent; or

(b) The percentage change in the Consumer Price Index (CPI) for all urban consumers, U.S. City Average, all items 1967=100, or successor reports for the preceding calendar year as initially reported by the United States Department of Labor, Bureau of Labor Statistics.

(6) If the percentage change in the Consumer Price Index (CPI) referenced in paragraph (5)(b) is negative, then the assessed value shall be the prior year’s assessed value decreased by that percentage.

(7) The assessed value of an individual homestead property shall not exceed just value.

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 193.011, 193.155 FS. History–New 10-4-95, Amended 6-14-22.

Fla. Admin. Code R. 12D-8.0063 Assessment of Changes, Additions, or Improvements to a Homestead

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 192.042, 193.011, 193.023, 193.155, 193.1551 FS. History–New 12-27-94, Amended 12-25-96, 1-16-06, 11-20-07, Repealed 6-14-22.

Fla. Admin. Code R. 12D-8.0064 Assessments; Correcting Errors in Assessments of a Homestead

(1) This rule applies where any change, addition, or improvement is not considered in the assessment of a property as of the first January 1 after it is substantially completed. The property appraiser must determine the just value for such change, addition, or improvement, and adjust the assessment for the year following the substantial completion of the change, addition, or improvement, as if the assessment had been correctly made. The property appraiser must adjust the assessed value of the homestead property for all subsequent years.

(2) If an error is made in the assessment of any homestead due to a material mistake of fact concerning an essential characteristic of the property, the assessment shall be adjusted for each erroneous year. This adjustment is for prospective application only. For purposes of this subsection, the term “material mistake of fact” means any and all mistakes of fact, relating to physical characteristics of property, considered in arriving at the assessed value of a property that, if corrected, would affect the assessed value of that property.

(3) This subsection provides the procedure for calculating liens on portions of homestead property as described in Section 193.155(10), F.S., relating to the assessment increase limitation, Section 193.703(7), F.S., relating to parent or grandparent living quarters, Section 196.075(9), F.S., relating to the homestead exemption for persons 65 and older, and Sections 196.011(9), F.S., and 196.161(1)(b), F.S., relating to the homestead exemption.

(a) Clerical Mistakes and Omissions.

1. For tax years prior to 2025, if the homestead exemption or homestead property assessment increase limitation or assessment reduction was improperly granted as a result of a clerical mistake or omission, the person or entity improperly receiving the homestead exemption, limitation, or assessment reduction is subject to back taxes but may not be assessed penalties or interest.

2. For tax years beginning in 2025, if a property owner receives a homestead exemption, limitation, or assessment reduction as a result of a property appraiser’s clerical mistake or omission and voluntarily discloses the error to the property appraiser before the property appraiser notifies the property owner of the error, no back taxes are due.

3. For tax years beginning in 2025, if a property owner receives a homestead exemption, limitation, or assessment reduction as a result of a property appraiser’s clerical mistake or omission and does not voluntarily disclose the error to the property appraiser before the property appraiser notifies the property owner of the error, back taxes are due for any year or years, beginning in 2025, within 5 years before the notification of the error.

(b) Other Errors or Causes.

1. If a property owner receives a homestead exemption, limitation, or assessment reduction for a reason other than for a clerical error or omission by the property appraiser for any year or years within the prior 10 years, back taxes are due in the amount of the unpaid taxes, plus a penalty of 50 percent of the unpaid taxes per year and 15 percent interest on the unpaid taxes per year.

2. Where a person entitled to the homestead exemption inadvertently receives the homestead property assessment increase limitation pursuant to Section 193.155(10), F.S., following a change of ownership, the person is not required to pay the unpaid taxes, penalty and interest.

(4) For the homestead property assessment increase limitation, to determine the assessed value as corrected and calculate the unpaid taxes, the property appraiser must apply the following provisions, as applicable, providing for non homestead assessments:

(a) apply the assessed value as limited by Section 193.1554 or 193.1555, F.S., or

(b) apply the just value for each year

1. in a year in which the homestead was initially removed, or

2. in a year following a change of ownership under Section 193.155, F.S., or

3. in a year following a change of ownership or control under Section 193.1554 or Section 193.1555, F.S., or

4. in a year following a qualifying improvement under Section 193.1555, F.S.

(5) In the case of the homestead exemptions, including the exemption relating to persons 65 and older, the unpaid taxes are the taxes on the amount of the exemption which the person received but to which the person was not entitled.

(6) In the case of the assessment reduction for parents or grandparents, the unpaid taxes are taxes on the difference between the assessed value after the reduction was applied and the assessed value as corrected without the reduction for each year.

(7) The amounts determined under subsections (4), (5), and (6), must be added together and entered on the notice of intent and on the notice of lien.

(8) This subsection outlines the procedure for providing property owners notice, for providing property owners an opportunity to pay, and for recording the lien once the property appraiser determines a homestead exemption, homestead assessment increase limitation, or homestead assessment reduction was improperly received. The property appraiser must take the following actions:

(a) Serve upon the owner a notice of intent to record in the public records of the county a notice of tax lien against any property owned by that person in the county in the amount of the unpaid taxes, plus any applicable penalties of 50 percent of the unpaid taxes for each year and any applicable 15 percent interest on the unpaid taxes per year. The property appraiser must include with such notice information explaining why the owner is not entitled to the exemption, limitation, or assessment reduction, the years for which unpaid taxes are due, and the manner in which unpaid taxes have been calculated. The owner of the property must be given the opportunity to pay the taxes and any applicable penalties and interest within 30 days.

(b) Where the notice is served by U.S. mail or by certified mail, the 30-day period is calculated from the date the notice was postmarked.

(c) If the amounts are not paid, record in the public records of the county a notice of tax lien against any property owned by this person in the county and identify all property included in this notice of tax lien.

(d) The property appraiser must correct the rolls for any year in which the exemption, the homestead assessment increase limitation, or assessment reduction, was improperly received.

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 193.011, 193.023, 193.155, 193.1554, 193.1555, 193.703, 196.011, 196.075, 196.161 FS. History–New 12-27-94, Amended 12-28-95, 9-19-17, 6-14-22, 3-27-25.

Fla. Admin. Code R. 12D-8.0065 Transfer of Homestead Assessment Difference; “Portability”; Sworn Statement Required; Denials; Late Applications

(1) For purposes of this rule, the following definitions apply.

(a) The “previous property appraiser” means the property appraiser in the county where the taxpayer’s previous homestead property was located.

(b) The “new property appraiser” means the property appraiser in the county where the taxpayer’s new homestead is located.

(c) The “previous homestead” means the homestead which the assessment difference is being transferred from.

(d) The “new homestead” means the homestead which the assessment difference is being transferred to.

(e) “Assessment difference” means the difference between assessed value and just value attributable to Section 193.155, F.S.

(2) Section 193.155(8), F.S., provides the procedures for the transfer of the homestead assessment difference to a new homestead, within stated limits, when a previous homestead is abandoned. The amount of the assessment difference is transferred as a reduction to the just value of the interest owned by persons that qualify and receive homestead exemption on a new homestead.

(a) This rule sets limits and requirements consistent with Section 193.155(8), F.S. A person may apply for the transfer of an assessment difference from a previous homestead property to a new homestead property if:

1. The person received a homestead exemption on the previous property on January 1 of one of the last three years before establishing the new homestead; and,

2. The previous property was abandoned as a homestead after that January 1; and,

3. The previous property was, or will be, reassessed at just value or assessed under Section 193.155(8), F.S., as of January 1 of the year after the year in which the abandonment occurred subject to Subsections 193.155(8) and 193.155(3), F.S; and,

4. The person establishes a new homestead on the property by January 1 of the year they are applying for the transfer.

(b) Under Section 193.155(8), F.S., the transfer is only available from a prior homestead for which a person previously received a homestead exemption. For these rules:

1. If spouses owned and both permanently resided on a previous homestead, each is considered to have received the homestead exemption, even if only one of them applied for the homestead exemption on the previous homestead.

2. For joint tenants with rights of survivorship and for tenants in common, those who qualified for and received the exemption on a previous homestead are considered to have received the exemption.

(3)(a) To apply for portability, the person must file Form DR-501T, Transfer of Homestead Assessment Difference, (incorporated by reference in Rule 12D-16.002, F.A.C., https://www.flrules.org/Gateway/reference.asp?No=Ref-05793), including a sworn statement, by March 1. Form DR-501T is submitted as an attachment to Form DR-501, Original Application for Ad Valorem Tax Exemption, (incorporated by reference in Rule 12D-16.002, F.A.C., https://www.flrules.org/Gateway/reference.asp?No=Ref-05793).

(b) If the person meets the qualifications and wants to designate the ownership share of the assessment difference to be attributed to him or her as spouses for transfer to the new homestead, he or she must also file a copy of Form DR-501TS, Designation of Ownership Shares of Abandoned Homestead (incorporated by reference in Rule 12D-16.002, F.A.C., https://www.flrules.org/Gateway/reference.asp?No=Ref-05793) that was already filed with the previous property appraiser as described in subsection (5).

(4) Within the limitations for multiple owners in subsection (5), the total which may be transferred is limited as follows:

(a) Upsizing ‒ When the just value of the new homestead equals or is greater than the just value of the previous homestead, the maximum amount that can be transferred is $500,000.

(b) Downsizing ‒ When the just value of the new homestead is less than the just value of the previous homestead, the maximum amount that can be transferred is $500,000. Within that limit, the amount must be the same proportion of the new homestead’s just value as the proportion of the assessment difference was of the previous homestead’s just value.

(5)(a) Transferring without splitting or joining – When two or more persons jointly abandon a single previous homestead and jointly establish a new homestead, the provisions for splitting and joining below do not apply if no additional persons are part of either homestead. The maximum amount that can be transferred is $500,000.

(b) Splitting ‒ When two or more people who previously shared a homestead abandon that homestead and establish separate homesteads, the maximum total amount that can be transferred is $500,000. Within that limit, each person who received a homestead exemption and is eligible to transfer an amount is limited to a share of the previous homestead’s difference between assessed value and just value. The shares of the persons that received the homestead exemption cannot total more than 100 percent.

1. For tenants in common, this share is the difference between just value and assessed value for the tenant’s proportionate interest in the property. This is the just value of the tenant’s interest minus the assessed value of the tenant’s interest.

2. For joint tenancy with right of survivorship and for spouses, the share of the homestead assessment difference is the difference between the just value and the assessed value of the owner’s share of the homestead portion of the property. This is the difference between the just value and the assessed value of the homestead portion of the property, divided by the number of owners that received the exemption, unless another interest share is on the title. In that case, the portion of the amount that may be transferred is the difference between just value and assessed value for the owner’s stated share of the homestead portion of the property.

3. Subparagraphs (5)(b)1. and (5)(b)2., do not apply if spouses abandon jointly titled property and designate their respective ownership shares by completing and filing Form DR-501TS. When a complete and valid Form DR-501TS is filed as provided in this subparagraph, the designated ownership shares are irrevocable.

If spouses abandon jointly titled property and want to designate their respective ownership shares they must:

a. Be married to each other on the date the jointly titled property is abandoned.

b. Each execute the sworn statement designating the person’s ownership share on Form DR-501TS.

c. File a complete and valid Form DR-501TS with the previous property appraiser before either person applies for portability on Form DR-501T with the new property appraiser.

d. Include a copy of Form DR-501TS with the homestead exemption application filed with the new property appraiser as described in subsection (3).

4. Except when a complete and valid designation Form DR-501TS is filed, the shares of the assessment difference cannot be sold, transferred, or pledged to any taxpayer. For example, if spouses divorce and both abandon the homestead, they each take their share of the assessment difference with them. The property appraiser cannot accept a stipulation otherwise.

(c) Joining – When two or more people, some of whom previously owned separate homesteads and received a homestead exemption, join together to qualify for a new homestead, the maximum amount that can be transferred is $500,000. Within that limit, the amount that can be transferred is limited to the highest difference between just value and assessed value from any of the persons’ previous homesteads.

(6) Abandonment.

(a) To transfer an assessment difference, a homestead owner must abandon the homestead before January 1 of the year the new application is made.

(b) In the case of joint tenants with right of survivorship, if only one owner moved and the other stayed in the original homestead, the homestead would not be abandoned. The person who moved could not transfer any assessment difference.

(c) To receive an assessment reduction under Section 193.155(8), F.S., a person may abandon his or her homestead even though it remains his or her primary residence by providing written notification to the property appraiser of the county where the homestead is located. This notification must be delivered before or at the same time as the timely filing of a new application for homestead exemption on the property. This abandonment will result in reassessment at just value as provided in subparagraph (2)(a)3. of this rule.

(7) Only the difference between assessed value and just value attributable to Section 193.155, F.S., can be transferred.

(a) If a property has both the homestead exemption and an agricultural classification, a person cannot transfer the difference that results from an agricultural classification.

(b) If a homeowner has a homestead and is receiving a reduction in assessment for living quarters for parents or grandparents under Section 193.703, F.S., the reduction is not included in the transfer. When calculating the amount to be transferred, the amount of that reduction must be added back into the assessed value before calculating the difference.

(8) Procedures for property appraiser:

(a) If the previous homestead was in a different county than the new homestead, the new property appraiser must transmit a copy of the completed Form DR-501T with a completed Form DR-501 to the previous property appraiser. If the previous homesteads of applicants applying for transfer were in more than one county, each applicant from a different county must fill out a separate Form DR-501T.

1. The previous property appraiser must complete Form DR-501RVSH, Certificate for Transfer of Homestead Assessment Difference (incorporated by reference in Rule 12D-16.002, F.A.C., https://www.flrules.org/Gateway/reference.asp?No=Ref-05793). By April 1 or within two weeks after receiving Form DR-501T, whichever is later, the previous property appraiser must send this form to the new property appraiser. As part of the information returned on Form DR-501RVSH, the previous property appraiser must certify that the amount transferred is part of a previous homestead that has been or will be reassessed at just value as of January 1 of the year after the year in which the abandonment occurred as described in subparagraph (2)(a)3., of this rule.

2. Based on the information provided on Form DR-501RVSH from the previous property appraiser, the new property appraiser calculates the amount that may be transferred and applies this amount to the January 1 assessment of the new homestead for the year for which application is made.

(b) If the transfer is from the same county as the new homestead, the property appraiser retains Form DR-501T. Form DR-501RVSH is not required. For a person that applied on time for the transfer of assessment difference, the property appraiser updates the ownership share information using the share methodology in this rule.

(c) The new property appraiser must record the following in the assessment roll submitted to the Department according to Section 193.1142, F.S., for the year the transfer is made to the homestead parcel:

1. Flag for current year assessment difference transfer,

2. Number of owners among whom the previous assessment difference was split. Enter 1 if previous difference was not split,

3. Assessment difference value transferred,

4. County number of previous homestead,

5. Parcel ID of previous homestead,

6. Year from which assessment difference value was transferred.

(d) Property appraisers that have information sharing agreements with the Department are authorized to share confidential tax information with each other under Section 195.084, F.S., including social security numbers and linked information on Forms DR-501, DR-501T, and DR-501RVSH.

(9)(a) The transfer of an assessment difference is not final until all values on the assessment roll on which the transfer is based are final. If the values are final after the procedures in these rules are exercised, the property appraiser(s) must make appropriate corrections and send a corrected assessment notice. Any values that are in administrative or judicial review must be noticed to the tribunal or court for accelerated hearing and resolution so that the intent of Section 193.155(8), F.S., may be fulfilled.

(b) This rule does not authorize the consideration or adjustment of the just, assessed, or taxable value of the previous homestead property.

(10) Additional provisions.

(a) If the information from the previous property appraiser is provided after the procedures in this section are exercised, the new property appraiser must make appropriate corrections and send a corrected assessment notice.

(b) The new property appraiser must promptly notify a taxpayer if the information received or available is insufficient to identify the previous homestead and the transferable amount. For a timely filed application, this notice must be sent by July 1.

(c) If the previous property appraiser supplies enough information to the new property appraiser, the information is considered timely if provided in time to include it on the notice of proposed property taxes sent under Sections 194.011 and 200.065(1), F.S.

(d) If the new property appraiser has not received enough information to identify the previous homestead and the transferable amount in time to include it on the notice of proposed property taxes, the taxpayer may file a petition with the value adjustment board in the county of the new homestead.

(11) Denials.

(a) If the applicant is not qualified for transfer of any assessment difference, the new property appraiser must send Form DR-490PORT, Notice of Denial of Transfer of Homestead Assessment Difference, (incorporated by reference in Rule 12D-16.002, F.A.C.) to the applicant by July 1 and include the reasons for the denial.

(b) Any property appraiser who sent a notice of denial by July 1 because he or she did not receive sufficient information to identify the previous homestead and the amount which is transferable, must grant the transfer after receiving information from the previous property appraiser showing the taxpayer was qualified, if the new property appraiser determines the taxpayer is otherwise qualified. If a petition was filed based on a timely application for the transfer of an assessment difference, the value adjustment board shall refund the taxpayer the petition filing fee.

(c) Petitions of denials may be filed with the value adjustment board as provided in Rule 12D-9.028, F.A.C.

(12) Late applications.

(a) Any person qualified to have property assessed under Section 193.155(8), F.S., who fails to file for a new homestead on time in the first year following eligibility may file in a subsequent year. The assessment reduction must be applied to assessed value in the year the transfer is first approved. A refund may not be given for previous years.

(b) Any person who is qualified to have his or her property assessed under Section 193.155(8), F.S., who fails to file an application by March 1, may file an application for assessment under that subsection and, under Section 194.011(3), F.S., may file a petition with the value adjustment board requesting the assessment be granted. The petition may be filed at any time during the taxable year by the 25th day following the mailing of the notice by the property appraiser as provided in Section 194.011(1), F.S. In spite of Section 194.013, F.S., the person must pay a nonrefundable fee of $15 when filing the petition, as required by paragraph (j), of Section 193.155(8), F.S. After reviewing the petition, the property appraiser or the value adjustment board may grant the assessment under Section 193.155(8), F.S., if the property appraiser or value adjustment board find the person is qualified and demonstrates particular extenuating circumstances to warrant granting the assessment.

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 192.047, 193.114, 193.1142, 193.155, 193.703, 194.011, 195.084 FS. History‒New 9-10-15, Amended 11-11-21.

Fla. Admin. Code R. 12D-8.00659 Notice of Change of Ownership or Control of Non-Homestead Property

(1) Any person or entity that owns non-homestead property that is entitled to receive the 10 percent assessment increase limitation under Section 193.1554 or 193.1555, F.S., must notify the property appraiser of the county where the property is located of any change of ownership or control as defined in Sections 193.1554(5) and 193.1555(5), F.S. This notification is not required if a deed or other instrument of title has been recorded in the county where the parcel is located.

(2) As provided in Sections 193.1554(5) and 193.1555(5), F.S., a change of ownership or control means any sale, foreclosure, transfer of legal title or beneficial title in equity to any person, or the cumulative transfer of control or of more than fifty (50) percent of the ownership of the legal entity that owned the property when it was most recently assessed at just value.

(3) For purposes of a transfer of control, “controlling ownership rights” means voting capital stock or other ownership interest that legally carries voting rights or the right to participate in management and control of the legal entity’s activities. The term also includes an ownership interest in property owned by a limited liability company or limited partnership that is treated as owned by its sole member or sole general partner.

(4)(a) A cumulative transfer of control of the legal entity that owns the property happens when any of the following occur:

1. The ownership of the controlling ownership rights changes and either:

a. A shareholder or other owner that did not own more than fifty (50) percent of the controlling ownership rights becomes an owner of more than fifty (50) percent of the controlling ownership rights, or

b. A shareholder or other owner that owned more than fifty (50) percent of the controlling ownership rights becomes an owner of less than fifty (50) percent of the controlling ownership rights.

2.a. There is a change of all general partners, or

b. Among all general partners the ownership of the controlling ownership rights changes as described in subparagraph 1., above.

(b) If the articles of incorporation and bylaws or other governing organizational documents of a legal entity require a two-thirds majority or other supermajority vote of the voting shareholders or other owners to approve a decision, the supermajority shall be used instead of the fifty (50) percent for purposes of paragraph (a), above.

(5) There is no change of ownership if:

(a) The transfer of title is to correct an error;

(b) The transfer is between legal and equitable title, or

(c) For “non-homestead residential property” as defined in Section 193.1554(1), F.S., the transfer is between husband and wife, including a transfer to a surviving spouse or a transfer due to a dissolution of marriage. This paragraph does not apply to non-residential property that is subject to Section 193.1555, F.S.

(6) For a publicly traded company, there is no change of ownership or control if the cumulative transfer of more than 50 percent of the ownership of the entity that owns the property occurs through the buying and selling of shares of the company on a public exchange. This exception does not apply to a transfer made through a merger with or an acquisition by another company, including an acquisition by acquiring outstanding shares of the company.

(7)(a) For changes of ownership or control, as referenced in subsection (2), of this rule, the owner must complete and send Form DR-430, Change of Ownership or Control, Non-Homestead Property, to the property appraiser unless a deed or other instrument of title has been recorded in the county where the parcel is located. This form is adopted by the Department of Revenue and incorporated by reference in Rule 12D-16.002, F.A.C. If one owner completes and sends a Form DR-430 to the property appraiser, another owner is not required to send an additional Form DR-430.

(b) Form DR-430M, Change of Ownership or Control, Multiple Parcels, which is incorporated by reference in Rule 12D-16.002, F.A.C., may be used as an attachment to Form DR-430. A property owner may use DR-430M to list all property owned or controlled in the state for which a change of ownership or control has occurred. A copy of the form should be sent to each county property appraiser where a parcel is located.

(c) On January 1, property assessed under Sections 193.1554 and 193.1555, F.S., must be assessed at just value if the property has had a change of ownership or control since the January 1, when the property was most recently assessed at just value.

(d) The property appraiser is required to provide a notice of intent to record a tax lien on any property owned by a person or entity that was granted, but not entitled to, the property assessment limitation under Section 193.1554 or 193.1555, F.S. Before a lien is filed, the person or entity who was notified must be given 30 days to pay the taxes, applicable penalties, and interest. If the property assessment limitation was improperly granted as a result of a clerical mistake or omission, the person or entity improperly receiving the property assessment limitation may not be assessed penalties or interest.

(e) The property appraiser shall use the information provided on the Form DR-430 to assess property as provided in Sections 193.1554, 193.1555 and 193.1556, F.S. For listing ownership on the assessment rolls, the property appraiser must not use Form DR-430 as a substitute for a deed or other instrument of title in the public records.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.1554, 193.1555, 193.1556 FS. History–New 11-1-12, Amended 9-19-17.

Fla. Admin. Code R. 12D-8.0068 Reduction in Assessment for Living Quarters of Parents or Grandparents

(1)(a) In accordance with Section 193.703, F.S., and s. 4(e), Art. VII of the State Constitution, the board of county commissioners of any county may adopt an ordinance to provide for a reduction in the assessed value of homestead property equal to any increase in assessed value of the property which results from the construction or reconstruction of the property for the purpose of providing living quarters for one or more natural or adoptive parents or grandparents of the owner of the property or of the owner's spouse if at least one of the parents or grandparents for whom the living quarters are provided is at least 62 years of age. The board of county commissioners shall deliver a copy of any ordinance adopted under Section 193.703, F.S., to the property appraiser.

(b) The reduction in assessed value resulting from an ordinance adopted pursuant to Section 193.703, F.S., shall be applicable to the property tax levies of all taxing authorities levying tax within the county.

(2) A reduction may be granted under subsection (1), only to the owner of homestead property where the construction or reconstruction is consistent with local land development regulations, including, where applicable, proper application for a building permit.

(3) In order to qualify for the assessment reduction pursuant to this section, property must meet the following requirements:

(a) The construction or reconstruction for which the assessment reduction is granted must have been substantially completed on or before the January 1 on which the assessment reduction for that property will first be applied.

(b) The property to which the assessment reduction applies must qualify for a homestead exemption at the time the construction or reconstruction is substantially complete and each year thereafter.

(c) The qualified parent or grandparent must permanently reside on the property on January 1 of the year the assessment reduction first applies and each year thereafter.

(d) The construction or reconstruction must have been substantially completed after January 7, 2003, the effective date of Section 193.703, F.S.

(4)(a) The term “qualified parent or grandparent” means the parent or grandparent residing in the living quarters, as their primary residence, constructed or reconstructed on property qualifying for assessment reduction pursuant to Section 193.703, F.S., on January 1 of the year the assessment reduction first applies and each year thereafter. Such parent or grandparent must be the natural or adoptive parent or grandparent of the owner, or the owner’s spouse, of the homestead property on which the construction or reconstruction occurred.

(b) “Primary residence” shall mean that the parent or grandparent does not claim a homestead exemption elsewhere in Florida. Such parent or grandparent cannot qualify as a permanent resident for purposes of being granted a homestead exemption or tax credit on any other property, whether in Florida or in another state. If such parent or grandparent receives or claims the benefit of an ad valorem tax exemption or a tax credit elsewhere in Florida or in another state where permanent residency is required as a basis for the granting of that ad valorem tax exemption or tax credit, such parent or grandparent is not a qualified parent or grandparent under this subsection and the owner is not entitled to the reduction for living quarters provided by this section.

(c) At least one qualifying parent or grandparent must be at least 62 years of age.

(d) In determining that the parent or grandparent is the natural or adoptive parent or grandparent of the owner or the owner’s spouse and that the age requirements are met, the property appraiser shall rely on an application by the property owner and such other information as the property appraiser determines is relevant.

(5) Construction or reconstruction qualifying as providing living quarters pursuant to this section is limited to additions and renovations made for the purpose of allowing qualified parents or grandparents to permanently reside on the property. Such additions or renovations may include the construction of a separate building on the same parcel or may be an addition to or renovation of the existing structure. Construction or reconstruction shall be considered as being for the purpose of providing living quarters for parents or grandparents if it is directly related to providing the amenities necessary for the parent or grandparent to reside on the same property with their child or grandchild. In making this determination, the property appraiser shall rely on an application by the property owner and such other information as the property appraiser determines is relevant.

(6)(a) On the first January 1 on which the construction or reconstruction qualifying as providing living quarters is substantially complete, the property appraiser shall determine the increase in the just value of the property due to such construction or reconstruction. For that year and each year thereafter in which the property qualifies for the assessment reduction, the assessed value calculated pursuant to Section 193.155, F.S., shall be reduced by the amount so determined. In no year may the assessment reduction, inclusive and aggregate of all qualifying parents or grandparents, exceed twenty percent of the total assessed value of the property as improved prior to the assessment reduction being taken. If in any year the reduction as calculated pursuant to this subsection exceeds twenty percent of assessed value, the reduction shall be reduced to equal twenty percent.

(b) Construction or reconstruction can qualify under paragraph (4)(a) in a later year, as long as the owner makes an application for the January 1 on which a qualifying parent or grandparent meets the requirements of paragraph (4)(b). The owner must certify in such application as to the date the construction or reconstruction was substantially complete and that it was for the purpose of providing living quarters for one or more natural or adoptive parents or grandparents of the owner of the property or of the owner’s spouse as described in paragraph (1)(a). In such case, the property appraiser shall determine the increase in the just value of the property due to such construction or reconstruction as of the first January 1 on which it was substantially complete. However, no reduction shall be granted in any year until a qualifying parent or grandparent meets the requirements of paragraph (4)(b).

(7) Further construction or reconstruction to the same property meeting the requirements of subsection (5) for the qualified parent or grandparent residing primarily on the property may also receive an assessment reduction pursuant to this section. Construction or reconstruction for another qualified parent or grandparent may also receive an assessment reduction. The assessment reduction for such construction or reconstruction shall be calculated pursuant to this section for the first January 1 after such construction or reconstruction is substantially complete. However, in no year may the total of all applicable assessment reductions exceed twenty percent of the assessed value of the property.

(8) The assessment reduction shall apply only while the qualified parent or grandparent continues to reside primarily on the property and all other requirements of this section are met. The provisions of subsections (1), (5), (6), (7) and (8) of Section 196.011, F.S., governing applications for exemption are applicable to the granting of an assessment reduction. The property owner must apply for the assessment reduction annually.

(9) The amount of the assessment reduction under Section 193.703, F.S., shall be placed on the roll after a change in ownership, when the property is no longer homestead, or when the parent or grandparent discontinues residing on the property.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.703, 196.011 FS. History–New 1-26-04.

Fla. Admin. Code R. 12D-8.007 Preparation of Assessment Rolls

(1) Each property appraiser shall prepare the following assessment rolls:

(a) Real property assessment roll;

(b) Tangible personal property assessment roll; this roll shall include all locally assessed taxable tangible personal property; and,

(c) Centrally assessed property assessment roll.

(2) Each of the assessment rolls shall include:

(a) The owner or fiduciary responsible for payment of taxes on the property, his or her address including postal zip code, and an indication of the fiduciary capacity (such as executor, administrator, trustee, etc.,) as appropriate. The assessment roll for real property shall include the social security number of the applicant receiving an exemption under Section 196.031, 196.081, 196.091, 196.101 or 196.202, F.S., and of the applicant’s spouse, if any, when such social security number is required by Section 196.011, F.S. and subsection 12D-7.001(4), F.A.C. The social security numbers received by property appraisers on applications for property tax exemption are confidential. Copies of all documents, containing the social security numbers so received, furnished by the property appraiser to anyone, must exclude the social security numbers, except for copies furnished to the Department of Revenue.

(b) The just value of all property determined under these rules and Section 193.011, F.S., shall be entered on the assessment roll form and properly identified as such by placement under the proper column heading on the assessment roll form or by words, abbreviations, code symbols or figures set opposite.

(c) When property is wholly or partially exempt (which for the purpose of this rule shall include immune as well as exempt property) from taxation, the appraiser shall enter on the assessment roll the amount of the exemption so as to be able to determine, by category, the total amount of exempt property on the roll. The categories may be indicated by words, abbreviations, code symbols or figures. Two or more categories of exemption may be included under one entry so long as such inclusion is clearly indicated and identified, and so long as the separate dollar amounts applicable to each exemption are clearly discernable.

(d) The assessment roll shall identify the taxable value of the property being assessed. The taxable value is the value remaining and upon which the tax is actually calculated after allowance of all lawful exemptions, either from the assessed value or the classified use value, as is appropriate. The taxable value shall be entered on the assessment roll form and properly identified as such by placement under the proper column heading on the assessment roll. The taxable value may be identified by words, abbreviations, code symbols or figures placed in a properly identified column on the assessment roll. In the event that various millages applying to different taxable values are levied against a parcel, each taxable value shall be shown.

(e) The millage levied against the property shall be indicated on the roll. The individual millages levied on the property, by each taxing authority in which the property is located, may be shown or the total aggregate millage of all such taxing authorities may be shown or expressed by code or symbols provided an explanation of the code or symbols is attached to the roll and a copy thereof included in each segment or column of the roll contained in a binder, provided that each of the combined millages applies to the same taxable value.

(f) The appraiser shall extend the assessment roll by converting the millage to a decimal number (1 mill = .001 dollars) and then multiplying by the taxable value (as defined in paragraph (d) above) to determine the tax on such property. The appraiser may, in extending the roll, make such entries as to class, location, or otherwise as is appropriate or convenient for administration so long as the requirements of paragraph (g) are met.

(g) The amount of the aggregate taxes levied on the property shall be shown on the assessment roll expressed in figures representing dollars and cents. The appraiser may include on the assessment roll such other information or breakdown of the amounts of taxes levied by class, location, or otherwise as is convenient for administration.

(3) The requirements set forth in this rule are the minimum requirements only and nothing contained herein shall be construed to prohibit or restrict the appraiser in including additional information or further subdividing categories of exemptions or expressing millage levies or amounts of tax in a more detailed manner so long as the minimum requirements are met.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.114, 193.1142 FS. History–New 12-7-76, Formerly 12D-8.07, Amended 12-27-94, 12-31-98.

Fla. Admin. Code R. 12D-8.008 Additional Requirements for Preparation of the Real Property Roll

(1) In addition to the requirements of Rule 12D-8.007, F.A.C., the Real Property Roll for each county shall include a description of the property assessed or a cross-reference to the description which shall be accurate and certain enough to give to the taxpayer the necessary notice of the tax assessed against the particular piece of property; the description so cross-referenced shall afford an adequate conveyance to the purchaser at a sale of the property for satisfaction of a lien originating in the non-payment of the tax. The Official Record Book and Page number of the conveyance upon which the owner of record’s title is based shall also be shown, provided such information has been gathered pursuant to paragraph 12D-8.011(1)(m), F.A.C.

(a) All descriptions of real property shall be based upon reference to the government grid system survey (Section, Township, Range) in general use in this state, provided:

1. Where real property has been subdivided into lots according to a map or plat duly recorded in the office of the Clerk of Circuit Court of the county in which the lands are located, or is a condominium or co-operative apartment, the description of real property shall, in addition to Section, Township, Range, be based upon reference to such map or plat. (Crawford v. Rehwinkel, 163 So. 851 (Fla. 1935))

2. For Spanish Grants or donations which have not been surveyed and platted, or where if platted, the plat is not recorded in the office of the Clerk of the Circuit Court, the description of real property may also include a reference to deed of record, giving the book and page as it appears in the office of the Clerk of the Circuit Court.

(b) Metes and bounds descriptions making reference to the government survey for determination of the point of beginning and closing of such description are considered for the purposes of this rule to be based upon the government survey.

(c) Abbreviations and figures may be used in descriptions if they are of general use and acceptance, not misleading, and indicate with certainty the thing intended.

(d) For the purposes of uniformity, if and when the following abbreviations and figures are used, they shall have the following meaning.

ABBREVIATION

MEANING

Ac

Acre

Add

Addition

Et Al

And Others

Et Ux

And Wife

Beg.

Beginning

Bdy., Bdys.

Boundary, Boundaries

Blk.

Block

Cen.

Center

C. L.

Center Line

Ch.

Chain

Com.

Commence,

Commencing

Cont.

Continue

Cor., Cors.

Corner, Corners

Desc.

Description

Deg.

Degree

E, E’ly

East, Easterly

Exc.

Except

Ft.

Foot or Feet

1/4 or Qtr.

Fourth or Quarter

Frac.

Fraction

Fracl.

Fractional

Govt. Lot

Government Lot

1/2

Half

Hwy.

Highway

In.

Inch, Inches

Int.

Intersection

Lk., Lks.

Link, Links

Mer.

Meridian

Mi.

Mile

´ or M.

Minutes

M. or L., M/L

More or Less

N, N’ly

North, Northerly

NE

Northeast

NE’ly

Northeasterly

NW

Northwest

NW’ly

Northwesterly

No.

Number

P.

Page

//

Parallel

Pt.

Point

P. O. B.

Point of Beginning

Qtr. or 1/4

Quarter or Fourth

Rad.

Radius

R.R.

Railroad

Rwy.

Railway

R., Rs.

Range, Ranges

Rt.

Right

R/W or R. O. W.

Right-of-Way

Rds.

Rods

Rgn.

Running

´´ or S.

Seconds

Sec., Secs.

Section, Sections

Sq.

Square

S, Sl’y

South, Southerly

SE

Southeast

SE’ly

Southeasterly

SW

Southwest

SW’y

Southwesterly

St., Sts.

Street, Streets

S/D

Subdivision

Th.

Thence

Twp., Twps.

Township, Townships

W

West

W’ly

Westerly

(e) A unique parcel number derived from a parcel numbering system applied uniformly throughout the county.

(f) When a code or reference number system is used for describing property, an explanation of how to read the code or reference number system (referred to as a “key”) shall be made available.

(g)1. For the purpose of accounting for all real property within the county, the property appraiser shall list all centrally assessed real property in its proper place on the Real Property Roll as required by this rule with the notation “See Centrally Assessed Property Roll,” but no tax shall be extended against same, and the value of such property need not be shown. Provided, however, when the legal description for railroad right-of-way is not furnished by the Department or is not otherwise available, such property need not be listed on the real property roll. All tabulations of value, parcels, etc., for the Real Property Roll shall not include centrally assessed property. Taxes shall be extended against centrally assessed real property, centrally assessed tangible personal property, and centrally assessed inventory listed on the Centrally Assessed Tangible Personal Property Roll and inventory shall not be listed on the Tangible Personal Property Assessment Roll.

2. When property is classified (lands classified agricultural for ad valorem tax purposes; outdoor recreational and park land) so that its taxable value is determined on a basis other than under Section 193.011, F.S., the value according to its classified use, less any exemptions allowed, shall be its value for tax purposes. In addition to its value determined under Section 193.011, F.S., the value of the property according to its classified use shall be entered on the assessment roll either under the appropriate column heading (e.g., Classified Use Value) or with proper identifying words, abbreviations, code symbols, or figures set opposite it. In either case a notation shall be made identifying the classified use value as agricultural (e.g., “A”), park or outdoor recreational land (e.g., “PR.”).

(h) When more than one listing is required to be made on the same property (as in the case of a taxable possessory interest in property which is otherwise exempt or immune, and mineral, oil, gas and other subsurface rights in or to real property which have been separated from the fee) the appraiser shall, immediately following the entry listing the record title owner or the record title owner of the surface fee, as the case may be, make a separate entry or entries on the assessment roll, indicating the assessment of the taxable possessory interest or the assessment of the mineral, oil, gas and other subsurface rights in or to real property which have been separated from the fee.

(2) Classification of Property.

(a) The appraiser shall classify each parcel of real property to indicate the use of the land as arrived at by the appraiser for valuation purposes and indicate the same on the assessment roll according to the codes listed below. This use will not always be the use for which the property is zoned or the use for which the improvements were designed whenever there is, in the appraiser’s judgment, a higher and better use for the land. When more than one land use code is applicable to a parcel, the appraiser may list either multiple land use codes with an indication of the portion of total property ascribed to each use, or a single code indicating the primary and predominant use. If multiple codes are listed, the code shown first shall represent the primary and predominant use. For land classified “agricultural,” the primary and predominant use shall mean the use code representing the most acreage. For example, if the use of 100 acres contains 40 acres of cropland (code 52), 30 acres of timberland (code 54), 15 acres of grazing land (code 61), and 15 acres of citrus groves (code 66), the first two-digit code in the “land use” field in the Name – Address – Legal (N.A.L.) file should be “52”; the next part of that field could be coded “54” or “61” or “66” based upon a method consistently used by the property appraiser. Taxable possessory interests shall be classified as code 90 or 93 as appropriate.

(b) Real property shall be classified based on ten major groups. The classification “residential” shall be subclassified into two categories – homestead and non-homestead property. The major groups are:

1. Residential:

a. Homestead;

b. Non-homestead.

2. Commercial and Industrial.

3. Agricultural.

4. Exempt, wholly or partially.

5. Leasehold Interest (Government owned).

6. Other.

7. Centrally Assessed.

8. Non-Agricultural Acreage.

9. Time-share Property.

10. High-water recharge.

(c) Following is a detailed list of the classifications and subclassifications which shall be used, and the numeric code designation for each. The description beside the code number defines the category of property and illustrates the uses of property to be included. Upon request, the Department of Revenue will advise the appraiser of the classification under which specific uses not listed below should be placed. The appraiser may divide any of the 100 listed categories (except for undefined code numbers which are reserved for future definition by the Department of Revenue into finer categories as long as the definition of the herein listed categories is not expanded. The code numbers for finer categories shall consist of the four digits defined herein.

USE

CODE

PROPERTY TYPE

Residential

0000

Vacant Residential

0100

Single Family

0200

Mobile Homes

0300

Multi-family – 10 units or more

0400

Condominia

0500

Cooperatives

0600

Retirement Homes (not eligible for exemption under Section 196.192, F.S. Others shall be given an Institutional classification)

0700

Miscellaneous Residential (migrant camps, boarding homes, etc.)

0800

Multi-family – less than 10 units

0900

Undefined – Reserved for Use by Department of Revenue only

Commercial

1000

Vacant Commercial

1100

Stores, one story

1200

Mixed use – store and office or store and residential or residential combination

1300

Department Stores

1400

Supermarkets

1500

Regional Shopping Centers

1600

Community Shopping Centers

1700

Office buildings, non-professional service buildings, one story

1800

Office buildings, non-professional service buildings, multi-story

1900

Professional service buildings

2000

Airports (private or commercial), bus terminals, marine terminals, piers, marinas

2100

Restaurants, cafeterias

2200

Drive-in Restaurants

2300

Financial institutions (banks, savings and loan companies, mortgage

2400

Insurance company offices

2500

Repair service shops (excluding automotive), radio and T. V. repair, refrigeration service, electric repair, laundries, laundromats

2600

Service stations

2700

Auto sales, auto repair and storage, auto service shops, body and fender shops, commercial garages, farm and machinery sales and services, auto rental, marine equipment, trailers and related equipment, mobile home sales, motorcycles, construction vehicle sales

2800

Parking lots (commercial or patron), mobile home parks

2900

Wholesale outlets, produce houses,

3000

Florist, greenhouses

3100

Drive-in theaters, open stadiums

3200

Enclosed theaters, enclosed auditoriums

3300

Nightclubs, cocktail lounges, bars

3400

Bowling alleys, skating rinks, pool halls, enclosed arenas

3500

Tourist attractions, permanent exhibits, other entertainment facilities, fairgrounds (privately owned)

3600

Camps

3700

Race tracks; horse, auto or dog

3800

Golf courses, driving ranges

3900

Hotels, motels

Industrial

4000

Vacant Industrial

4100

Light manufacturing, small equipment manufacturing plants, small machine shops, instrument manufacturing printing plants

4200

Heavy industrial, heavy equipment

4300

Lumber yards, sawmills, planing mills

4400

Packing plants, fruit and vegetable packing plants, meat packing plants

4500

Canneries, fruit and vegetable, bottlers and brewers distilleries, wineries

4600

Other food processing, candy factories, bakeries, potato chip factories

4700

Mineral processing, phosphate processing, cement plants, refineries, clay plants, rock and gravel plants

4800

Warehousing, distribution terminals, trucking terminals, van and storage warehousing

4900

Open storage, new and used building supplies, junk yards, auto wrecking, fuel storage, equipment and material storage

Agricultural

5000

Improved agricultural

5100

Cropland soil capability Class I

5200

Cropland soil capability Class II

5300

Cropland soil capability Class III

5400

Timberland – site index 90 and above

5500

Timberland – site index 80 to 89

5600

Timberland – site index 70 to 79

5700

Timberland – site index 60 to 69

5800

Timberland – site index 50 to 59

5900

Timberland not classified by site index to Pines

6000

Grazing land soil capability Class I

6100

Grazing land soil capability Class II

6200

Grazing land soil capability Class III

6300

Grazing land soil capability Class IV

6400

Grazing land soil capability Class V

6500

Grazing land soil capability Class VI

6600

Orchard Groves, Citrus, etc.

6700

Poultry, bees, tropical fish, rabbits, etc.

6800

Dairies, feed lots

6900

Ornamentals, miscellaneous agricultural

Institutional

7000

Vacant Institutional

7100

Churches

7200

Private schools and colleges

7300

Privately owned hospitals

7400

Homes for the aged

7500

Orphanages, other non-profit or charitable services

7600

Mortuaries, cemeteries, crematoriums

7700

Clubs, lodges, union halls

7800

Sanitariums, convalescent and rest homes

7900

Cultural organizations, facilities

Government

8000

Undefined – Reserved for future use

8100

Military

8200

Forest, parks, recreational areas

8300

Public county schools – include all property of Board of Public Instruction

8400

Colleges

8500

Hospitals

8600

Counties (other than public schools, colleges, hospitals) including non-municipal governments

8700

State, other than military, forests, parks, recreational areas, colleges, hospitals

8800

Federal, other than military, forests, parks, recreational areas, hospitals, colleges

8900

Municipal, other than parks, recreational areas, colleges, hospitals

Miscellaneous

9000

Leasehold interests (government owned property leased by a non-governmental lessee)

9100

Utility, gas and electricity, telephone and telegraph, locally assessed railroads, water and sewer service, pipelines, canals, radio/television communication

9200

Mining lands, petroleum lands, or gas lands

9300

Subsurface rights

9400

Right-of-way, streets, roads, irrigation channel, ditch, etc.

9500

Rivers and lakes, submerged lands

9600

Sewage disposal, solid waste, borrow pits, drainage reservoirs, waste lands, marsh, sand dunes, swamps

9700

Outdoor recreational or parkland, or high-water recharge subject to classified use assessment.

Centrally Assessed

9800

Centrally assessed

Non-Agricultural Acreage

9900

Acreage not zoned agricultural

Special Designations

N000

This 4-digit designation shall be placed in the data processing record in the use code field for records that are printed as notes on the roll.

H000

This 4-digit designation shall be placed in the data processing record in the use code field for records that are printed as headings on the roll.

(d) Definitions:

1. Classified use assessments shall be those valuations determined pursuant to Article VII, Section 4(a), Constitution of State of Florida.

History

• Rulemaking Authority 195.027(1), 195.073(1), 213.06(1) FS. Law Implemented 195.027, 195.073, 195.084 FS. History–New 12-7-76, Formerly 12D-8.08, Amended 12-27-94, 12-25-96, Repromulgated 12-30-02.

Fla. Admin. Code R. 12D-8.009 Additional Requirements for Preparation of Tangible Personal Property Assessment Roll

(1) The appraiser shall include on the roll a code reference to the tax return showing the property, and need not give a description of such property on the roll. The account number may be adopted as the code to indicate the reference to the return, provided the property appraiser places the account number on the return.

(2) Classification of property by class type.

(a) The property appraiser shall classify tangible personal property to convey the actual current use of the property and indicate the same on the assessment roll. Where property has more than one use, it shall be classified under the category which represents its primary and predominant use. It is the primary and predominant use that will govern the classification. Possessory interests shall be classified according to the use of the property by the possessor.

(b) The classification shall be based upon six primary groupings of the major use type categories, with sub-classifications of the primary groupings of the major use type categories. The primary groupings of major uses are:

1. Retail.

2. Wholesale.

3. Manufacturing.

4. Leasing/Rental.

5. Services.

6. Special.

(c) The following is a detailed explanation of the minimum use type classifications for tangible personal property and a numeric code designation for each. The classifications are based on classification codes as set forth in the Standard Industrial Classification Manual, 1987, as published by the Office of Management and Budget, Executive Office of the President, and, as such, the code numbers may be out of sequence. It is recommended the user refer to the Standard Industrial Classification Manual, 1987, for detailed description of property use. This listing is intended to facilitate the determination of classification, particularly in special and questionable kinds of property and is not intended to list every possible use which might occur in the state. Upon request, the Department of Revenue will inform the appraiser of the classification under which specific property uses not listed below should be placed.

RETAIL

General Merchandise

5311

Department Store

5331

Discount Merchandise Store (K-Mart, etc.)

5932

Used Merchandise, Antiques, Pawn Shops

5932

Army, Navy Surplus

5961

Mail Order

7389

Stamp Redemption

5399

Miscellaneous General Merchandise

Apparel & Accessories

5651

Clothing

5661

Shoes

5699

Miscellaneous Apparel & Accessories

5944

Jewelry Stores, Watches Furniture, Fixtures, Home Furnishings

5712

Household Furniture

5021

Office Furniture

5713

Floor Covering

5714

Drapery, Upholstery

5722

Appliances

5731

Radio, Television

5734

Computers

5735

Music Records, Tapes

5736

Music Instruments

5046

Partitions, Shelving, Office and Store Fixtures

Other Merchandise

5731

Electronics

5943

Office supply, stationery

5942

Books, Magazines

5994

Newsstands

5992

Florist

5993

Tobacco, Cigars, Cigarettes

5949

Fabric

5949

Needlework, Knitting

5941

Sporting Goods, Gun Shops, Fisherman’s Supply, Bait and Tackle

5945

Arts and Crafts, Hobby, Ceramics

5946

Photographic Supplies, Cameras

7384

Film Processing

3861

Microfilm

5947

Gift and Novelty Shop

5945

Toys

5999

Miscellaneous Other Merchandise

Health Care/Cosmetics

5912

Drug Store/Pharmacy

5995

Optical Goods

5999

Hearing Aids, Orthopedic Appliances

5047

Medical and Dental Equipment and Supplies

5087

Cosmetics, Beauty and Barber Equipment and Supplies

5999

Miscellaneous Health Care/Cosmetics

Food Products

5411

Supermarket

5411

Grocery

5421

Specialty market (Meat, Fish)

5451

Dairy

5431

Fruit, Vegetable

5411

Convenience Market

5461

Bakery

5921

Package Store-Liquor and Beer

5813

Bar, Night Club, Lounge

5812

Restaurant Cafeteria

5812

Fast Food Ice Cream

5499

Miscellaneous Food Store (Health Food)

5441

Candy

Building Materials – Hardware Garden Supply

5211

Lumber and Other Building Materials

5074

Plumbing, Heating, and Water Conditioning

5075

Air Conditioning

5063

Electrical, Lighting Equipment

5231

Paint, Glass

5211

Tile

5251

Hardware

5261

Nursery

0782

Landscaping

5261

Farm and Garden Supply

5211

Pool and Patio – Utility Buildings

5211

Miscellaneous Building Materials

Machinery and Equipment

5083

Farm, Grove and Garden Machinery and Equipment

5084

Industrial Machinery and Equipment

5082

Construction and Mining Machinery and Equipment

5999

Miscellaneous Machinery and Equipment

Electrical and Electronic Machinery and Equipment

5999

Office/Business Machinery and Equipment

5734

Data Processing – Computers

5999

Copying Machines

5731

Miscellaneous Electrical and Electronic Machinery and Equipment

Transportation

5511

Automobiles and Trucks (New)

5521

Automobiles and Trucks (Used)

5531

Auto Parts, Junk Yards, Tires

5271

Mobile Homes

5551

Ships, Boats

5551

Marine Supplies

5599

Aircraft and Parts

5571

Motorcycles and Bicycles and Parts

5561

Miscellaneous Transportation Equipment – Motor Homes, R. V.’s, Bus, Taxi Miscellaneous Retail

5999

Miscellaneous Retail

WHOLESALE

General Merchandise

5099

General Merchandise

Apparel and Accessories

5136

Clothing (Men, Boys)

5137

Clothing (Women, Children, Infants)

5139

Shoes

5137

Miscellaneous Apparel and Accessories – Handbags

5094

Jewelry, Watches

5021

Household Furniture

5021

Office Furniture

5023

Floor Coverings, Drapery, Upholstery

5064

Appliances

5064

Radio, TV, Music

5046

Partitions, Shelving, Office and Store Fixtures

Other Merchandise

5064

Electronics

5111

Printing and Writing Paper

5112

Office Supply and Stationery

5113

Paper Products

5192

Books, Magazines

5193

Florist

5194

Tobacco, Cigars, Cigarettes

5131

Fabric/Textiles

5131

Needlework, Knitting, Yarn, Thread

5091

Sporting Goods

5092

Arts and Crafts, Hobby, Ceramic Supplies

5043

Photographic Supplies, Cameras, Film Processing, Microfilm

5092

Toys

5099

Miscellaneous Other Merchandise

Health Care/Cosmetics

5122

Drugs-Pharmaceutical

5047

Hearing, Orthopedic

5048

Optical

5047

Medical & Dental Equipment & Supplies

5087

Cosmetics, Barber and Beauty Equipment and Supplies

5122

Miscellaneous Health Care/Cosmetics

Food Products

5153

Farm Products (grain, citrus, etc.)

5154

Farm Products (livestock)

5141

Grocery

5144

Specialty (Poultry)

5146

Specialty (Fish and Seafood)

5147

Specialty (Meat)

5148

Fresh Fruits & Vegetables

5149

Bakery

5181

Beer

5182

Wine, Liquor

5149

Beverages

5149

Miscellaneous Food

Building Materials – Hardware Garden Supply

5031

Lumber and Other Building Materials

5074

Plumbing, Water Conditioning

5075

Heating and Air Conditioning

5063

Electrical, Lighting

5039

Glass, Tile

5198

Paint

5072

Hardware

5193

Nursery and Landscaping

5191

Farm and Garden – Feed, Seed, Fertilizer

5091

Pool and Patio – Utility Buildings

5039

Miscellaneous Building Materials

Machinery

5083

Farm, Grove and Garden Machinery and Equipment

5084

Industrial Machinery and Equipment

5082

Construction and Mining Machinery and Equipment

5083

Miscellaneous Machinery and Equipment

Electrical and Electronic Machinery and Equipment

5044

Office/Business Machines and Equipment

5045

Data Processing – Computers

5044

Copying Machines

5065

Miscellaneous Electrical Machinery, Equipment and Supplies

Transportation

5012

Automobiles and Trucks

5013

Auto Parts

5014

Tires

5015

Junk Yards

5039

Mobile Homes

5088

Ships, (non-pleasure)

5091

Boats (pleasure)

5088

Marine Products

5088

Aircraft and Parts

5092

Bicycles and Parts

5012

Motorcycles

5012

Miscellaneous Transportation Equipment – Motor Homes, R. V.’s., Bus, Taxi

Other Wholesale

5160

Chemicals

5050

Metals and Minerals

5170

Petroleum and Petroleum Products – Gasoline

5199

Miscellaneous Other Wholesale Miscellaneous Wholesale

5199

Miscellaneous Wholesale

MANUFACTURING

Textiles

2200

Fabric and Knitting Mills, Floor Covering

2290

Miscellaneous Textiles

Apparel

2300

Clothing

Furniture and Fixtures

2510

Household Furniture

2520

Office Furniture

2440

Partitions, Shelving, Office and Store Fixtures

Health Care

2830

Drugs

3827

Optical Instruments and Lenses, Glasses and Contact Lenses

3840

Medical and Dental Instruments, Equipment and Supplies

2844

Cosmetics

2834

Miscellaneous Health Care/Cosmetics

Food Products

2010

Meat

2020

Dairy

2030

Canned and Preserved Fruits and Vegetables (Orange juice concentrate)

2040

Grain (Flour, Cereal, Animal Food)

2050

Bakery

2080

Liquor and Beer

2080

Beverages

2090

Miscellaneous Food Preparation

2099

Refining Sugar, etc.

Lumber and Wood Products, Paper

2411

Logging

2421

Sawmills, Planing Mills

2490

Miscellaneous Wood Products

2610

Pulp

2620

Paper Mills

2621

Paper Products (Stationery, Tissues, Bags, Paper Plates, etc.)

2650

Paperboard Containers and Boxes

2670

Miscellaneous Paper Products (Insulation, Tar Paper)

Stone, Clay, Glass and Concrete Products

3200

Glass and Glass Products

3240

Concrete, Gypsum, Lime

3241

Cement

3251

Brick, Clay

3253

Ceramic, Tile

3261

Miscellaneous Products – (Plumbing fixtures)

3264

Porcelain, Electrical Supply

Metals

3300

Metal Industries – Foundries, Smelting, Refining

3390

Metal Products

3399

Miscellaneous Metals

Chemicals

2819

Chemicals

2813

Industrial Gas

2821

Plastics

2822

Synthetics

2840

Cleaning Preparations

2890

Miscellaneous Chemical Products – Paint and Varnish, etc.

Petroleum

2910

Petroleum Refining – Gasoline

2950

Paving and Roofing Materials – Asphalt

2990

Miscellaneous Petroleum Products

Rubber and Plastic Products

3011

Tires and Inner Tubes

3021

Rubber Products

3080

Misc. Plastic Products

Leather

3111

Tanning and Finishing

3131

Boots and Shoes

3190

Miscellaneous Leather Goods

3161

Luggage

Machinery and Equipment

3510

Engines and Turbines

3520

Farm, Grove and Garden Machinery and Equipment

3560

Industrial Machinery and Equipment

3530

Construction and Mining Machinery and Equipment

3590

Miscellaneous Machinery and Equipment

Electrical and Electronic Machinery and Equipment

3578

Office/Business Machinery and Equipment

3571

Data Processing – Computers

3579

Copying Machines

3640

Electric Lighting and Wiring

3630

Appliances

3660

Communication Equipment

3663

Radio & TV Communications Equipment

3670

Electronic Components and Accessories

3690

Miscellaneous Electrical Machinery, Equipment and Supplies

Transportation

3710

Automobiles and Trucks

3714

Auto Parts and Accessories

2451

Mobile Homes

3731

Ships

3732

Boat

3429

Marine Supplies

3720

Aircraft and Parts

3751

Motorcycles, Bicycles and Parts

3790

Miscellaneous Transportation Equipment – R. V.’s, Bus, Taxi

3716

Motor Homes

Other Manufacturing

2131

Tobacco

2121

Cigars

2111

Cigarettes

3861

Photographic Equipment and Supplies

3800

Scientific Instruments

3873

Watches, Clocks, and Parts

3911

Jewelry

3914

Silverware

3931

Musical Instruments

3951

Pens

3952

Pencils, Office and Artist Supplies

3949

Sporting Goods

3944

Toys

3990

Miscellaneous Other Manufacturing

Miscellaneous Manufacturing

3999

Miscellaneous Manufacturing

LEASING/RENTAL

General Merchandise

7359

General Merchandise – Rent All Apparel and Accessories

7299

Miscellaneous Apparel and Accessories

Furniture, Fixtures, Home Furnishings

7359

Household Furniture

7359

Office Furniture

7359

Appliances

7359

Radio, TV, Music

7394

Partitions, Shelving, Office and Store Fixtures

Other Merchandise

7359

Electronics

7999

Sporting Goods

7359

Cameras, Microfilm

7999

Miscellaneous Other Merchandise

Health Care

7352

Hearing/Optical/Orthopedic

7352

Medical and Dental

7352

Miscellaneous Health Care

Building Materials

7353

Heating, Air Conditioning, Water Conditioning

7353

Electrical, Lighting (Signs)

7359

Pool and Patio – Utility Buildings

7359

Miscellaneous Building Material

Lumber and Wood Products, Paper

7359

Sawmills, Planing Mills

Metals

7359

Miscellaneous Metals (Tank Rental)

Machinery and Equipment

7353

Engines and Turbines

7353

Farm, Grove and Garden Machinery and Equipment

7353

Industrial Machinery and Equipment

7353

Construction and Mining Machinery and Equipment

7353

Miscellaneous Machinery and Equipment

Electrical and Electronic Machinery and Equipment

7359

Office/Business Machinery and Equipment

7377

Data Processing – Computers

7359

Copying Machines

7359

Electric Lighting and Wiring (Searchlights, Construction Lighting)

7359

Miscellaneous Electrical Machinery and Equipment

Transportation

7514

Automobiles

7513

Trucks

7519

Mobile Homes

4499

Ships, Boats

7359

Aircraft

7999

Motorcycles, Bicycles

7519

Miscellaneous Transportation Equipment

Other Leasing/Rental

7359

Laundry and Dry Cleaning Equipment

7352

Medical and Dental Equipment

7359

Beauty and Barber Shop Equipment

7389

Communication Equipment – Telephone Answering

7359

Sanitary Services – Portable Toilets

Miscellaneous Leasing/Rental

7359

Miscellaneous Leasing/Rental

SERVICES

Personal Services

7210

Laundry, Cleaning and Garment Services

7215

Coin-Operated Laundries and Dry Cleaning

7231

Beauty Shops

7241

Barber Shops

7261

Funeral Service, Crematoriums, Cemeteries

7299

Miscellaneous Personal Services – Shoe Shine

Business Services

7310

Advertising

7323

Credit Bureaus

7322

Collection Agencies

7338

Secretarial Services

7331

Mailing

7334

Photocopying

7335

Commercial Art

7336

Commercial Photography

7349

Cleaning and Maintenance

7342

Disinfecting and Pest Control Services

7380

Miscellaneous Business Services

7389

Personnel Supply, Telephone Answering

Repair – Other Than Automotive

7631

Watch, Clock, Jewelry

7629

Electrical

7641

Re-Upholstery – Furniture

7690

Machinery and Equipment Repair

7620

Appliance Repair

7690

Miscellaneous Repair

Health Services

8011

Physicians

8021

Dentists

8041

Chiropractors

8042

Optometrists

8049

Other Health Care Practitioners

8060

Hospitals

8050

Skilled Nursing and Intermediate Care Facilities

8059

Nursing Homes except skilled and intermediate care facilities, Domiciliary

Care with Health Care

8082

Home Health Care Services

8070

Medical and Dental Labs

8090

Other Health Services

8093

Rehabilitation Centers

8099

Blood Banks

Legal Services

8111

Attorneys, Law Libraries

8111

Other Legal Services

Financial Service

6000

Banks, Savings & Loan, Credit Unions, and other Depository Institutions, etc.

6100

Credit Agencies, Personal Credit, Business Credit, Mortgage Bankers, Loan Brokers and Other Non-Depository Institutions

6200

Security and Commodity Brokers, Dealers, Exchanges and Services – Stocks and Bonds

Insurance and Real Estate

6411

Insurance Companies, Insurance Brokers

6300

Insurance Carriers (Companies)

6410

Insurance Agents, Brokers, and Services

6500

Real Estate Agents, Realtors, Title Abstract Offices, Developers

Miscellaneous Professional Services

8710

Engineering, Architectural, and Surveying Services

8720

Accounting, Auditing, and Bookkeeping Services

8750

Other Professional Services

Educational Services

8200

Educational Institutions per Section 196.012(4), F.S. – Exempt

8240

Other Schools and Educational Services – Beauty and Barber, Charm, Driving Schools

Social Services

8300

Job Training, Vocational Rehabilitation, Child Day Care, Residential Care

Amusement and Recreation

7800

Motion Picture Production and Distribution, Theaters

7933

Bowling Alleys, Billiards and Pool

7940

Commercial Sports, Professional Sports, Clubs, Race Tracks

7990

Tourist Attractions, Amusement Parks

8412

Museums and Art Galleries

7990

Miscellaneous Amusement and Recreation Services, Golf Courses, Country Clubs, Yacht Clubs

Membership Organizations

8600

Business, Professional, Labor Unions, Civic, Social and Fraternal, Political

8661

Religious Organizations

Public Administration

9100

General Government, Courts, Police, Fire, Safety, National Security, Public Library

4311

U.S. Postal Service

Communication

4810

Telephone and Telegraph

4830

Radio and Television Broadcasting

2700

Printing and Publishing – Newspapers, Books, Magazines; Typesetting, Photoengraving, etc.

4841

Cable and Other Pay Television Services

4899

Other Communication Services

Electric, Gas and Sanitary Services

4911

Electric Power

4920

Gas – Production and Distribution, Pipelines

4941

Water Supply

4950

Sanitary Services (Sewerage, Refuse, Mosquito Control)

4939

Alternate Energy Devices – Solar, Wind, Geothermal

Automotive Repair and Services

7530

Automotive Repair – Garages

7532

Top & Body Repair and Paint Shops

5541

Service Stations – Gasoline

7540

Automotive Services – Parking, Car Wash

Passenger Transportation

4100

Bus Line, Taxi, Ambulance, School Bus, Terminals

Trucking and Warehousing

4210

Trucking – Local and Long Distance

4220

Public Warehousing

4231

Other Trucking and Warehousing

Water and Air Transportation

4400

Water Transportation and Support Services – Docks, Yacht Basins

4500

Airlines

4580

Airports and Terminals

Railroads and Private Car Line Companies

4011

Railroads – Operating Property (Centrally Assessed)

4741

Private Car Line Companies

Transportation Services

4720

Travel Arrangement – Travel Agencies

4780

Miscellaneous Transportation Services – Inspection and Weighing, Crating and Packing, Toll Road and Bridge Operation

Miscellaneous Services

8999

Miscellaneous Service

SPECIAL

Agricultural Production – Crops

0100

Grain and Field Crops – Soybeans, Tobacco, Peanuts, etc.

0161

Vegetables, Melons

0174

Citrus

0173

Nuts

0180

Specialties – Mushrooms, Bulbs, Sod Farms

0190

General Farms – Primarily Crop

Agricultural Production – Livestock

0210

Beef, Hogs, Sheep and Goat

0240

Dairy

0250

Poultry and Egg

0272

Horses

0291

General Farms – Primarily Livestock

Agricultural Services

0711

Soil Preparation and Crop Service

0740

Veterinary Service

0750

Other Animal Services – Breeding, Boarding, Training

0760

Farm Labor and Management Services

0780

Landscaping and Agricultural Services

0782

Lawn and Garden Services

Forestry

0811

Timber Tracts

0851

Forestry Service

Fishing, Hunting, Trapping

0910

Commercial Fishing

0921

Fish Hatcheries, Game Preserves

0971

Other Fishing, Hunting, Trapping

Oil and Gas Extraction

1311

Crude Petroleum and Natural Gas

1321

Liquid Natural Gas

1380

Oil and Gas Field Services

Mining and Quarrying

1420

Crushed and Broken Stone (Lime Rock, Limestone)

1440

Sand and Gravel

1470

Chemical and Fertilizer Mining (Phosphate Rock) Construction

1500

General Building Contractors

1611

Highway and Street Construction

1620

Heavy Construction

Special Trade Contractors

1711

Plumbing, Heating and Air Conditioning

1721

Painting and Paper Hanging

1731

Electrical Work

1750

Carpentering and Flooring

1761

Roofing and Sheet Metal Work

1771

Concrete Work

1781

Water Well Drilling

1790

Miscellaneous Special Trade Contractors

Accommodation

6514

Single Family – Rental Property

6514

Duplex

6514

Triplex

6514

Condominiums

6513

Apartment – 10 or Fewer Units

6513

Apartment – More Than 10 Units

7011

Hotel, Motel

7021

Rooming and Boarding Houses

7033

Camps, Tourist Courts

6512

Building Rental

6519

Building on Leased Land

8811

Floating Structures – Residential

8811

Household Goods – Non-Florida Residents

6515

Mobile Homes

8811

Mobile Home Attachments

Miscellaneous Special

9999

Miscellaneous Special

(3)(a) Effective January 1, 2002, the property appraiser shall classify tangible personal property on the assessment roll according to the classification system set out in the 1997 North American Industry Classification System-United States Manual (NAICS), and any subsequent amendments thereto, as published by the Office of Management and Budget, Executive Office of the President, hereby incorporated by reference in this rule. The NAICS classification system will replace the 1987 Standard Industrial Classification (SIC) codes currently described within this rule. Effective January 1, 2002, the Department of Revenue will not accept assessment rolls which classify personal property using either the class code system defined in Rule 12D-8.009, F.A.C., as amended on September 30, 1982, or with SIC codes currently identified in this rule. Information on how to obtain any documents described within this rule may be obtained from the Property Tax Oversight Program, Florida Department of Revenue, (850)717-6570.

(b) The NAICS classification system, a 5-digit and/or 6-digit classification system, is to be used in Field Number 6 of the STANDARD N.A.P. File described in paragraph 12D-8.013(6)(c), F.A.C. Conversion from existing classification systems may be completed prior to the conversion deadline. Assessment rolls submitted prior to full conversion to the NAICS system may contain classification systems which use any of the three aforementioned classification systems. Upon submission of the first assessment roll containing other than the class code classification system, the Department must be notified in writing of the conversion methods used on the assessment roll. Field Number 5 should be completed with an alphabetic character indicating the coding system used for the assessment roll. If reporting by original class codes in Field Number 6, enter code “C” in Field Number 5. If reporting the SIC codes in Field Number 6, enter code “S” in Field Number 5. If reporting the NAICS code in Field Number 6, enter code “N” in Field Number 5.

(c) To facilitate Florida-specific property tax administrative needs, the Department of Revenue recommends the following special code numbers, not currently contained within the NAICS system:

CATEGORY

CODE NUMBER

CITRUS

Citrus Brokers

11137

MOBILE HOME

Mobile Home Owners

81418

Mobile Home Attachments

81419

RESTAURANTS

Franchise Ltd. Svc. Restaurants-Bar-B-Que

722214

Franchise Ltd. Svc. Restaurants-Hamburger

722215

Franchise Ltd. Svc. Restaurants-Pizza

722216

Franchise Ltd. Svc. Restaurants-Chicken/Fish

722217

Franchise Ltd. Svc. Restaurants-Mexican

722218

Franchise Ltd. Svc. Restaurants-All Others

722219

GROCERY

Supermarkets and Other Grocery except Convenience Stores (state or regional chain)

44511

Other Supermarkets and Grocery (locally owned)

445113

RAILROAD

Line-Haul Railroads

482111

Short Line Railroads

482112

Support Activities for Rail Transportation

48821

Railroads (Non-operating Property)

482119

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.114, 195.073 FS. History–New 12-7-76, Amended 9-30-82, Formerly 12D-8.09, Amended 12-30-97, 1-31-99.

Fla. Admin. Code R. 12D-8.010 Uniform Definitions for Computer Files

Each property appraiser shall maintain data in preparation of the real and personal property rolls. This data shall include information necessary and sufficient to allow computer preparation of rolls which meet all requirements of law and these regulations.

(1) The file from which the real property roll is prepared shall be known as the Name – Address – Legal File or N.A.L.

(a) For day-to-day operations the appraiser may break the data in this file down into more than one file or may combine the Name – Address – Legal File with other files.

(b) All property appraisers shall establish and maintain a Name – Address – Legal File.

(c) Data relating to real estate transfers shall be considered part of the N.A.L. file for the purpose of this definition. However, for day-to-day operations, the property appraiser may carry transfer (sales) data in other data processing files.

(d) N.A.L. file maintenance:

1. All real estate transfer (sales) data should be maintained on a monthly basis. That is, every recorded deed should be posted to the N.A.L. file no later than 30 days after being received from the clerk, provided, however, that all deeds for the prior calendar year shall be posted to the N.A.L. file no later than January 31.

2. All other information contained in the N.A.L. file shall be maintained on a regular basis which allows the property appraiser to comply with all statutory, regulatory and administrative deadlines.

(2) The file from which the personal property assessment roll is prepared shall be known as the Name – Address – Personal File or N.A.P.

(a) For day-to-day operations the appraiser may break the data in this file down into more than one file or may combine the Name – Address – Personal File with other files.

(b) All property appraisers shall establish and maintain a Name – Address – Personal File.

(c) File maintenance: All information contained in the N.A.P. file shall be maintained on a regular basis which allows the property appraiser to comply with all statutory, regulatory, and administrative deadlines.

(3) The file from which computerized property assessments are calculated shall be known as the Master Appraisal File or M.A.F.

(a) For day-to-day operations the property appraiser may break the data in this file down into more than one file or may combine the Master Appraisal File with other files.

1. That portion of the Master Appraisal File containing data used in calculating assessments by the cost approach to value shall be known as the M.A.F.-Cost.

2. That portion of the Master Appraisal File containing data used in calculating assessments by the market approach to value shall be known as the M.A.F.-Market.

3. That portion of the Master Appraisal File containing data used in calculating assessments by the income approach to value shall be known as the M.A.F.-Income.

(b) Property Appraisers are not required to calculate assessments by computer and therefore are not required to establish and maintain a Master Appraisal File. However, if the property appraiser undertakes any appraisal computations by computer, the files used shall meet the appropriate requirements of these rules and regulations.

(c) File Maintenance: All information contained in the M.A.F. shall be maintained on a regular basis which allows the property appraiser to comply with all statutory, regulatory and administrative deadlines.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.114, 193.1142, 195.027 FS. History–New 12-7-76, Formerly 12D-8.10.

Fla. Admin. Code R. 12D-8.011 Uniform Standards for Computer Operations: Minimum Data Requirements

(1) Each property appraiser shall maintain the following data in one or more of his or her data processing files regarding each parcel of real estate in his or her county.

(a) A unique parcel number based on a parcel numbering system applied uniformly throughout the county.

(b) A code indicating the taxing authorities whose jurisdiction includes this parcel.

(c) Data indicating the location of the parcel. This data may be a part of items (a) and/or (b) above. The data shall indicate:

1. Township.

2. Range.

3. Section number or grant number.

4. Subdivision code or number, if applicable.

5. Municipality code or number, if applicable.

(d) Owner’s or Fiduciary’s name.

(e) Owner’s or Fiduciary’s mailing address.

1. Address.

2. Zip Code. All address information entered in the file prior to the adoption of this rule need not show zip code as a separate field.

(f) Basic land information:

1. Land Use Code. This code shall be as defined under paragraph 12D-8.008(2)(c), F.A.C.

2. A code indicating the unit of measurement used as the basis of assessment of the land. The property appraiser may continue to use any existing codes provided they are translated to the following when submitted to the Department:

a. 1 = per acre;

b. 2 = per square foot;

c. 3 = per front foot or per effective front foot (all lots with typical depth);

d. 4 = per front foot or per effective front foot (all lots with non-typical depth);

e. 5 = per lot or tract;

f. 6 = combination of any of the above;

3. The number of units of land. One of the following items shall be shown, corresponding to subparagraph (f)2. above.

a. The number of acres;

b. The number of square feet;

c. The number of front feet or effective front feet and the depth in feet (when depth is available);

d. The number of front feet or effective front feet and the effective depth in feet (when depth is available);

e. The number of lots or tracts;

f. Break-down of the number of combined units if available.

(g) Basic building information:

1. The year built or the effective year built of the main improvement. The appraiser shall consistently maintain one or the other (or both) years for every improved parcel in the county.

2. The total living area or the total adjusted area of the main improvement on improved residential property, or the total usable area for non-residential improved property.

The appraiser shall consistently maintain total living area or total adjusted area (or both) for every improved residential parcel in the county.

3. A code indicating the principal type of construction of the exterior walls of the main improvement on each improved parcel. The property appraiser may continue to use any existing codes provided they are translated to the following when submitted to the Department:

01 – Wall Board;

02 – 8-Inch Brick;

03 – Metal;

04 – Asbestos Shingles on Frame;

05 – Stucco on Frame;

06 – Siding – No Sheathing;

07 – Concrete Block;

08 – Corrugated Asbestos;

09 – Stucco on Concrete Block (C. B. S.);

10 – Stucco on Tile;

11 – Siding – with Sheathing;

12 – Brick Veneer on Frame;

13 – Brick Veneer on Masonry;

14 – Aluminum Siding;

15 – 12-Inch Brick;

16 – Reinforced Concrete;

17 – Metal on Steel;

18 – Wood Shingles;

19 – Jumbo Brick;

20 – Tilt-up Concrete Slabs;

51 – Brick on Masonry Down-Wood Siding Up;

52 – Brick on Masonry Down-Asbestos Shingles Up;

53 – Wood Siding Down-Asbestos Shingles Up;

54 – Stone on Masonry Down-Wood Siding Up;

55 – Concrete Block Plain Down-Asbestos Shingles Up;

56 – Concrete Block Plain Down-Wood Siding Up;

57 – Brick on Frame Down-Wood Siding Up.

NOTE: If the property appraiser maintains a master appraisal system, at the time of adoption of these rules and regulations, which system utilizes “Points”, “Construction Units” or other numerical designation, in lieu of a code, to indicate principal type of exterior wall construction, then such “Points”, “Construction Units” or other numerical designation, may be submitted in lieu of the codes indicated hereinabove; provided, however, that a schedule showing the number of “Points”, “Construction Units” or numbers used for each type of exterior wall construction is also submitted to the Department.

(h) Land Value – Just Value (Section 193.011, F.S.) or classified use value, if applicable.

(i) Total just value (land just value plus building value).

(j) Total assessed value (land classified use value plus building value or total just value for non-classified use parcels).

(k) Taxable value for operating purposes.

(l) New construction value. This amount shall be included in the value shown for Items (i) through (l). Deletions shall be shown as a negative amount.

(m) The following information shall be gathered and posted for the two most recent transfers of each parcel. Only information on transfers occurring after December 31, 1976, needs to be gathered and posted.

1. Date of execution of instrument (month and year).

2. Official Record (“O.R.”) Book and Page number – These shall be recorded as entries separate from the property description so that a computer sort on this information is possible.

3. A transfer code denoting certain characteristics of the transfer. A transfer should be considered for disqualification if any of the following apply:

Corrective deed, quit claim deed, or tax deed; Deed bearing Florida Documentary Stamp at the minimum rate prescribed under Chapter 201, F.S.;

Deed bearing same family name as to Grantor and Grantee;

Deeds to or from banks, loan or mortgage companies;

Deeds conveying cemetery lots or parcels;

Deeds including unusual amounts of personal property;

Deeds containing a reservation of occupancy for more than 90 days (life estate interest);

Deeds involving a trade or exchange of land;

Deeds where the consideration is indeterminable;

Deed conveying less than a half interest;

Deeds to or executed by any of the following:

a. Administrators;

b. Benevolent Institutions;

c. Churches;

d. Clerk Commissioners;

e. Clerk of Courts;

f. Counties;

g. Educational Institutions;

h. Executors;

i. Federal Agencies;

j. Federal Government;

k. Fraternal Institutions;

l. Guardians;

m. Lodges;

n. Masters;

o. Municipalities;

p. Receivers;

q. Sheriffs;

r. State Board of Education;

s. Trustees in Bankruptcy;

t. Trustees of the Internal Improvement Trust Fund (or Board of Natural Resources);

u. Utility Companies. The property appraiser may continue to use any existing codes provided they are translated to the following when submitted to the Department:

0. Sales which are qualified;

1. Sales which are disqualified as a result of examination of the deed;

2. Deeds which include more than one parcel;

3. Other disqualified.

4. Sales prices as indicated by documentary stamps.

5. Wherever possible, a one-digit code indicating whether the parcel was improved (I) or vacant (V) at the time of sale.

(n) Property description or map number. Map number is allowable in lieu of property description if a map reference number and Official Record (“O.R.”) Book and Page number is printed on the roll for each parcel.

(o)1. Exemption type. A code indicating the type of exemption granted to the parcel and the value(s) thereof. The property appraiser may continue to use any existing codes provided they are translated to the codes prescribed when submitted to the Department. The code is as follows:

A – Senior Homestead Exemption (Section 196.075, F.S.)

B – Blind (Section 196.202, F.S.)

C – Charitable, Religious, Scientific or Literary (Sections 196.196, 196.1987, F.S.)

D – Disabled (Sections 196.081, 196.091, 196.101, F.S.)

E – Economic Development (Section 196.1995, F.S.)

G – Federal Government Property (Section 196.199(1)(a), F.S.); State Government Property (Section 196.99(1)(b), F.S.); Local Government Property (Section 196.199(1)(c), F.S.); Leasehold Interests in Government Property (Section 196.199(2), F.S.)

H –Historic Property (Section 196.1997, F.S.)

I – Historic Property Open to the Public (Section 196.1998, F.S.)

L –Labor Organization (Section 196.1985, F.S.)

M – Homes for the Aged (Section 196.1975, F.S.)

N – Nursing Homes, Hospitals, Homes for Special Services (Section 196.197, F.S.)

O – Widowers (Section 196.202, F.S.)

P – Totally and Permanently Disabled (Section 196.202, F.S.)

Q – Combination (Homestead, Disabled, Widow, Widower, Totally and Permanently Disabled, Senior Homestead Exemption ‒ Sections 196.031, 196.075, 196.202, F.S.)

R – Renewable Energy Source (Section 196.175, F.S.)

S – Sewer and Water Not-for-Profit (Section 196.2001, F.S.)

T – Community Centers (Section 196.1986, F.S.)

U – Educational Property (Section 196.198, F.S.)

V – Disabled Veteran/Spouse (Section 196.24, F.S.)

W – Widows (Section 196.202, F.S.)

X – Homestead Exemption (Section 196.031, F.S.)

Y – Combination (Homestead, Disabled, Widow, Widower, Totally and Permanently Disabled, Disabled Veteran, Senior Homestead Exemption – Sections 196.031, 196.075, 196.202 and 196.24, F.S.)

Z – Combination (Renewable Energy Source, Economic Development – Sections 196.175 and 196.1995, F.S.)

1 – Licensed Child Care Facility Operating in Enterprise Zone (Section 196.095, F.S.)

2 – Historic Property Used for Certain Commercial or Nonprofit Purposes (Section 196.1961, F.S.)

3 – Proprietary Continuing Care Facilities (Section 196.1977, F.S.)

4 – Affordable Housing Property (Section 196.1978, F.S.)

5 – Charter School (Section 196.1983, F.S.)

6 – Public Property Used Under License or Lease Agreement Entered into Prior to January 1, 1969 (Section 196.1993, F.S.)

7 – Space Laboratories and Carriers (Section 196.1999, F.S.)

8 –Water and Wastewater Systems Not-for-Profit (Section 196.2002, F.S.)

9 – Contiguous multiple parcels with a single homestead exemption or single parcels with multiple homestead exemptions

2. Personal exemption codes shall be “0” (zero) indicating the exemption does not apply or the applicable code provided in this rule subsection indicating an exemption does apply. Five of six personal exemptions may apply for each parcel, in the following order.

Exemption Type

Maximum Value

Code

Homestead

$25,000

X

Widowed

$500

W/O

Blind

$500

B

Disabled

$500

P

Veteran Disabled/Spouse

$10,000

V

Disabled (100 percent Exempt)

–

D

An individual who qualified for the $25,000 exemption may also be entitled to the $500 exemption of section 3(b), Art. VII, State Const. (for widows, widowers, or blind or totally and permanently disabled persons) and Section 196.202, F.S., and/or the $5,000 exemption under Section 196.24, F.S. (disabled veterans/spouse). In no event shall the aggregate exemption exceed $26,500 (see Rule 12D-7.003(2), F.A.C.) for individuals exempt under Section 196.202, F.S., or $36,000 (see subsection 12D-7.003(2), F.A.C.) for individuals exempt under Section 196.24, F.S., except for total exemptions under Sections 196.081, 196.091 or 196.101, F.S.

(p) A code indicating the type of special assessment applicable to the parcel. The property appraiser may continue to use any existing codes provided they are translated to the following when submitted to the Department:

0 – None;

1 – Pollution Control Device(s);

2 – Land subject to a conservation easement, environmentally endangered lands, or lands used for outdoor recreational or park purposes when land development rights have been conveyed or conservation restrictions have been convenanted;

3 – Land subject to a moratorium.

(q) In the event that the county has completely or partially changed parcel numbering since the previous roll, an “alternate key” which will allow a translation of individual parcel numbers from those used on the previous roll to those used on the current roll. This shall not be construed to apply to routine renumbering resulting from splits, deletions and combinations of parcels.

(2) Each property appraiser shall maintain the following data in one or more of his/her data processing files regarding each personal property account in his/her county.

(a) County Code. This is a number assigned to each county for identification purposes. Alachua County is assigned number 11, each successive county in alphabetical order is assigned a number increased by 1, with Washington County assigned number 77.

(b) Personal Property account number. This number may be used as the cross-reference to the return as filed.

(c) Taxing Authority Code. A code indicating the taxing authorities in whose jurisdiction the property is located. Same basic code as is used for real property.

(d) Roll Type. “P” for personal.

(e) Roll Year. The last two digits of the tax year.

(f) Class Code. A code, as defined in paragraph 12D-8.009(2)(c), F.A.C., indicating the classification of the property.

(g) Furniture, Fixtures, and Equipment; Materials and Supplies, at Just Value.

(h) Leasehold improvements at Just Value. Any improvements, including modifications and additions, to leased property.

(i) Pollution Control Devices at Just Value.

(j) The Taxable Value, (Salvage Value) of these pollution control devices.

(k) Total Just Value. The sum of the just values of: furniture, fixtures, and equipment; taxable household goods; material and supplies; leasehold improvements; and pollution control devices.

(l) Total Exemption Value. The total value of any exemption granted to the account.

(m) Exemption Type. A code indicating the type of exemption granted the account. The code is as follows:

A – Institutional (Sections 196.195, 196.196 and 196.197, F.S.);

B – Non-Governmental Educational Property other than under Section 196.1985, F.S. (Section 196.198, F.S.);

C – Federal Government Property (Section 196.199(1)(a), F.S.);

D – State Government Property (Section 196.199(1)(b), F.S.);

E – Local Government Property (Section 196.199(1)(c), F.S.);

F – Leasehold Interests in Government Property (Section 196.199(2), F.S.);

G – Economic Development (Section 196.1995, F.S.);

H – Not-for-profit Sewer and Water Companies (Section 196.2001, F.S.);

I – Blind Exemption (Section 196.202, F.S.);

J – Total and Permanent Disability Exemption (Section 196.202, F.S.);

K – Widow’s Exemption (Section 196.202, F.S.);

L – Disabled Veteran’s Exemption (Section 196.24, F.S.)

(n) Total Taxable Value. The total just values (k), above less the total exemption value (l), above.

(o) Penalty Rate as Applicable.

(p) Taxpayer Name.

(q) Mailing Address of the Taxpayer.

(r) City.

(s) State or Country (including zip code).

(t) Street Address. Where the property is physically located.

(u) City. Where the property is physically located.

(v) In the event that the county has completely or partially changed account numbering since the previous roll, an “alternate key” which will allow a translation of individual account numbers from those used on the previous roll to those used on the current roll. This shall not be construed to apply to routine renumbering resulting from attrition or addition of accounts.

(w) Tax Roll Sequence Number. A number to be assigned in the order accounts appear on the assessment roll.

(3) If the property appraiser establishes a Master Appraisal File, the M.A.F. Cost shall include, but shall not necessarily be limited to, the following information for the main improvements to each parcel. Codes may be used where applicable.

(a) Year built or effective year built.

(b) Exterior wall type.

(c) Roof type.

(d) Roof material.

(e) Floor type.

(f) Interior walls.

(g) Electrical features/quality, if available.

(h) Number of plumbing fixtures or number of baths.

(i) Heating.

(j) Air-conditioning.

(k) Base area.

(l) Adjusted area, if applicable.

(m) Overall condition or depreciation factor.

(n) An indication of each extra feature and detached subsidiary buildings and the value ascribed thereto.

NOTE: If the property appraiser maintains a Master Appraisal File, at the time of adoption of these rules and regulations, which file contains “Classes of Buildings” to indicate a combination of two or more of the construction features shown above, then such “Classes” may be submitted in lieu of those specific construction features shown above which are included in the “Class” of the building.

If the property appraiser maintains a Master Appraisal File, at the time of adoption of these rules and regulations, which file utilizes “Points” or “Construction Units” to indicate exterior wall type or combination of exterior wall types, then such “Points” or “Construction Units” may be submitted when specific exterior wall type required under paragraph (b) above is not otherwise available.

(4) When a property appraiser’s upcoming roll will be subjected to an in-depth review pursuant to Section 195.096, F.S., when requested by the Department he should maintain the following data in one or more of his data processing files or on a written list for each real property parcel which was deleted from the prior year’s roll, which was split from a parcel on the prior year’s roll, or which was combined with a parcel from the prior year’s roll.

(a) Unique parcel number of the parcel which has been deleted, split off, or combined.

(b) Land use code applicable to the parcel listed under paragraph (a).

(c) A code indicating whether the parcel was deleted (1), split from (2), or combined with another parcel (3).

(d) Values – The values shall be those shown on the previous year’s roll if deletion; the values shall be those shown on the current year’s roll if split or combination.

1. Just Value (for non-classified use parcels).

2. Classified use value (for classified use parcels).

3. Total Taxable Value.

(e) Parent Parcel Number, if entry applies to a split.

(f) Land Use Code applicable to the parcel listed under paragraph (e).

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.114, 193.1142, 195.027, 196.031, 196.075, 196.081, 196.091, 196.101, 196.195, 196.196, 196.197, 196.1975, 196.198, 196.1985, 196.1986, 196.1987, 196.199, 196.1995, 196.1997, 196.1998, 196.2001, 196.202, 196.24 FS. History–New 12-7-76, Amended 9-30-82, Formerly 12D-8.11, Amended 12-31-98, 12-30-02, 1-1-04, 10-2-07.

Fla. Admin. Code R. 12D-8.012 Schedule of Implementation of Rule 12D-8.011

History

• Rulemaking Authority 195.027 FS. Law Implemented 195.027(2) FS., Chs. 82-232, 82-388, Laws of Florida. History–New 12-7-76, Amended 9-30-82, Formerly 12D-8.12, Repealed 9-12-95.

Fla. Admin. Code R. 12D-8.013 Submission of Computer Tape Materials to the Department

(1) All submitted tapes shall meet the following technical requirements, unless written approval to do otherwise is granted by the Executive Director for good cause shown.

(a) Character set (display) – EBCDIC (Extended Binary Coded Decimal Interface Code).

(b) One-half inch standard magnetic tape, 9 track, odd parity, 800, 1600, or 6250 BPI (Bits Per Inch).

(c) No label records.

(2) For each submission of tape(s), a transmittal document showing the following information shall be enclosed:

(a) Character set.

(b) Density.

(c) Leading tapemark (yes or no).

(d) Record layout (if not specified by these rules).

(e) Record format data elements description (if not specified by these rules).

(f) The transmittal document for the Standard Name – Address – Legal (N.A.L.) file shall indicate:

1. Whether effective year built or actual year built is shown for each improved parcel, and

2. Whether adjusted area or total living area is shown for each improved residential parcel.

(3) Each property appraiser shall submit a computer tape copy of the following files to the Department on or before the dates indicated. STANDARD FILES are defined under subsection (6) of this rule.

(a) The STANDARD N.A.L. File: No later than the submission date for the initial real property assessment roll. This file shall contain information current at the time of publication of the initial real property assessment roll, including a computer tape copy of real estate transfer data current to December 31st of the previous calendar year. Upon request by the Department, another submission is required no later than 30 days following extension of the tax rolls pursuant to Rule 12D-8.015, F.A.C.

(b) The Master Appraisal File, if one exists: No later than the submission date for the initial real property assessment roll. This file shall contain information current at the time of publication of the initial real property assessment roll. The record layout shall be that used locally, provided that the requirements of subsection (1) above are met.

(c) The previous year standard N.A.L. file: No later than the submission date for the current year real property assessment roll in the event that the county has completely or partially changed parcel numbering since the previous roll other than routine splits, deletions and combinations. This file shall have coded thereon an “alternate key” to facilitate the translation of the old parcel numbers to the new parcel numbers.

(4) Each property appraiser shall submit a computer tape copy of the following file to the Department on or before the date indicated:

(a) The STANDARD N.A.P. File: No later than the submission date for the initial tangible personal property assessment roll. This file shall contain information current at the time of publication of the initial tangible personal property assessment roll. Upon request by the Department another submission is required no later than 30 days following extension of the tax rolls pursuant to Rule 12D-8.015, F.A.C.

(b) The previous year standard N.A.P. file: No later than the submission date for the current year tangible personal property assessment roll in the event that the county has completely or partially changed account numbering since the previous roll other than routine attrition or addition of accounts. This file shall have coded thereon an “alternate key” to facilitate the translation of the old account numbers to the new account numbers.

(5) In those counties subject to an in-depth review, pursuant to Section 195.096, F.S., and if requested in writing by the Executive Director, the property appraiser shall submit a computer tape copy of the following files to the Department on or before the dates indicated, provided that submission shall not be required earlier than 30 days following mailing of the request by the Executive Director.

(a) The STANDARD N.A.L. file containing real estate transfer data current to December 31, and all other data current at the time of publication of the revised (extended) real property assessment roll: No later than January 31.

(b) The STANDARD Deletions, Splits, and Combinations (D.S.C.) File, if one exists: No later than the submission date for the Initial Real Property Assessment Roll.

(6) Record Layouts for STANDARD FILES. Property appraisers are not required to keep data in the standard file layouts for day-to-day operations. However, they are required to merge and/or reformat their existing files to the standard file layout as appropriate when submitting computer tape materials to the Department.

(a) The STANDARD N.A.L. File shall be formatted as follows:

1. Record length-450 characters (fixed length).

2. Block length-3600 characters (8 records per block).

3. The following is a listing of the STANDARD N.A.L. File and is contained in an example form, Form DR-590 (incorporated by reference in Rule 12D-16.002, F.A.C.).

Name, Address, Legal (N.A.L.) File

Field

Location

Field1

No.

Field Label

First

Last

Size

Type

Comments

1

Unique

Parcel No.

1

28

28

A/N

County No.

1

2

2

N

Parcel No.

3

28

26

A/N

Show 2 digit county code, local parcel number, and space fill the remaining digits to 28

2

Roll type

29

29

1

A

“R” for real

3

Roll year

30

31

2

A/N

4

D. O. R. land use code

32

35

4

All numeric except for notes and header records

5

Special assessment code

36

36

1

N

6

Total just value

37

45

9

N

7

Total assessed value

46

54

9

N

Classified use value, including homestead property, if applicable; otherwise just value

8

Total taxable value for operating purposes

55

63

9

N

9

New construction value or deletion value

64

72

9

N

Signed field; negative value indicates deletion

10

Land value

73

81

9

N

Classified use value of land, if applicable; otherwise just value of land

11

Land units code

82

82

1

N

Use land-unit-of-value code here

12

Number of land units

83

88

6

N

Assume two decimal places for acreage

13

Square footage

89

97

9

N

Assume no decimal places for square feet

14

Improved quality

98

100

3

A/N

15

Construction class

101

101

1

N

16

Filler

102

102

1

A

Space Fill

17

Effective or actual year built of major improvement

103

106

4

N

18

Total living area (or adjusted area) or usable area if non-residential

107

113

7

N

19

Number of buildings

114

115

2

N

20

Market area

116

117

2

A/N

10 to 30 areas

MOST RECENT SALE DATA (through field 26)

21

Transfer code

118

119

2

N

22

Vacant or improved code

120

120

1

A

“V” or “I”

23

Sale price

121

129

9

N

24

Date of sale

130

135

6

N

Year

130

133

4

N

Month

134

135

2

N

01 through 12

25

O. R. Book

136

140

5

A/N

26

O. R. Page

141

144

4

A/N

SECOND MOST RECENT SALE DATA (through field 33)

27

Filler

145

146

2

A

Space Fill

28

Transfer code

147

148

2

N

29

Vacant or improved code

149

149

1

A

“V” or “I”

30

Sale price

150

158

9

N

31

Date of sale

159

164

6

N

Year

159

162

4

N

Month

163

164

2

N

01 through 12

32

O. R. Book

165

169

5

A/N

33

O. R. Page

170

173

4

A/N

34

Stratum No.

174

175

2

N

Always “00”; will be assigned by D.O.R.

35

Owner’s name

176

205

30

A

Primary owner

36

Street address line 1

206

235

30

A/N

Mailing address of primary owner

37

Street address line 2

236

265

30

A/N

38

City

266

295

30

A/N

39

State or country

296

320

25

A/N

40

U. S. mail zip code

321

325

5

N

41

Short legal description

326

355

30

A/N

1st 30 characters

SOCIAL SECURITY NUMBERS (SSN) OF APPLICANT AND OTHER OWNER (through field 45)

42

Applicant’s Status

356

356

1

A

Applicant’s marital status H=Husb. W=Wife O=Other “H”, “W”, or “O”

43

Applicant’s SSN

357

365

9

N

44

Co-Applicant’s Status

366

366

1

A

Co-Applicant’s marital status H=Husb. W=Wife O=Other “H”, “W”, or “O”

45

Co-Applicant’s SSN

367

375

9

N

46

Personal exemption flags

376

376

1

A/N

Use numeric “0” or “A” through “Z”

47

Other exemption value

377

383

7

N

48

Amount of homestead

384

388

5

N

exemption

49

Amount of widow(er)

389

393

5

N

exemption

50

Amount of disabled

394

400

7

N

exemption

51

Amount of renewable

energy exemption

401

407

7

N

52

Group Number/Confidentiality Code

408

409

2

N

First Character Always “0” will be assigned by Department of Revenue for second character “0” otherwise any confidential parcels should be indicated with code “1”

53

Neighborhood code

410

417

8

A/N

54

Public land

418

418

1

A

55

Taxing authority code

419

422

4

A/N

First two digits indicate municipality

56

Parcel location

423

431

9

A/N

Township

423

425

3

A/N

2 numeric, 1 alpha

Range

426

428

3

A/N

2 numeric, 1 alpha

Section or Grant No.

429

431

3

N

Right justify

57

Alternate key

432

444

13

A/N

58

Tax Roll Sequence No.

445

450

6

N

Numbers shall be assigned in the order parcels appear on the assessment roll

(1) Field type legend:

A

=

Alphabetic

A/N

=

Alphanumeric

N

=

Numeric

(b) The STANDARD D.S.C. File (Deletions, Splits, and Combinations) shall be formatted as follows:

1. Record Length – 86 characters (fixed length).

2. Block length – 3440 characters (40 records per block).

Field

Location

Field

Range of Values/

Number

Field Label

First

Last

Size

Type

Comments

1

Unique

1

28

28

A/N

No. of each

Parcel No.

parcel which

County No.

1

2

2

N

splits, is

Parcel No.

3

28

26

A/N

deleted or combined. Show county code in 1st two digits; then local parcel number; then spaces through digit 28.

2

DOR land use code

29

30

2

N

Use code of above parcel

3

D.S.C. code

31

31

1

N

Delete = 1; split = 2; combination = 3

4

Total Just Value

32

40

9

N

Previous roll value of deletion;

5

Total Assessed Value (classified Use Value if appl.; other-wise Just Value)

41

49

9

N

current roll value if split or

6

Total taxable value for operating purposes

50

58

9

N

combination (fields 4 through 6).

7

Parent parcel No.

59

84

26

A/N

If entry applies to splits or combinations. Otherwise, space fill.

8

Parent DOR land use code

85

86

2

N

If entry applies to splits or combinations.

A

=

Alphabetic

A/N

=

Alphanumeric

F

=

Floating Point

N

=

Numeric

(c) The standard N.A.P. file shall be formatted as follows:

1. Record length – 290 characters (fixed length).

2. Block length – 3480 characters (12 records per block).

3. The following is a listing of the STANDARD N.A.P. File and is contained in an example form, Form DR-592 (incorporated by reference in Rule 12D-16.002, F.A.C.).

Field

Location

Field

Range of Values/

Number

Field Label

First

Last

Size

Type

Comments

1

Unique

1

17

17

A/N

Show 2-digit county code, local account number, and space fill the remaining digits to 17.

Account No.

County No.

1

2

2

N

Account No.

3

17

15

A/N

2

Taxing Authority Code

18

21

4

A/N

Same code as used for real property

3

Roll Type

22

22

1

A

“P” for personal

4

Roll Year

23

24

2

N

Last two digits of year

5

CSN Code

25

25

1

A

Flag indicating use of Class (C), SIC (S) or NAICS (N) Codes

6

Class/SIC/NAICS Code

26

31

6

N

7

Furniture, Fixtures, and Equipment; Materials and Supplies – At Just Value

32

41

10

N

8

Leasehold Improvements Just Value

42

51

10

N

9

Pollution

52

71

20

N

Control Devices

Just Value

52

61

10

N

Taxable Value

62

71

10

N

10

Total Just Value

72

81

10

N

11

Total Exemption Value

82

91

10

N

12

Exemption Type

92

92

1

A

Alphabetic character to be designated by Department of Revenue

13

Total Taxable Value

93

10

10

N

14

Penalty Rate

103

10

2

N

15

Taxpayer Name

105

13

30

A/N

16

Taxpayer Mailing Address

135

16

30

A/N

17

City

165

19

30

A/N

18

State or

195

21

20

A/N

Include Zip Code

Country

19

Physical Location of Property

215

27

60

A/N

Street Address

215

24

30

A/N

City

245

27

30

A/N

20

Filler

275

27

2

A/N

Reserved for future use.

21

Alternate Key

277

28

6

N

See 12D-8.011(2)(v), F.A.C.

22

Tax Roll Sequence No.

283

29

8

N

Numbers shall be assigned in the order accounts appear on the assessment roll.

A

=

Alphabetic

A/N

=

Alphanumeric

N

=

Numeric

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.027, 195.096 FS. History–New 12-7-76, Amended 7-17-80, 9-30-82, Formerly 12D-8.13, Amended 12-27-94, 12-31-98, 1-2-01.

Fla. Admin. Code R. 12D-8.014 Levying Authorities to Certify Millage to the Appraiser

History

• Rulemaking Authority 195.027, 213.06(1) FS. Law Implemented 192.011, 193.122, 213.05 FS. History–New 12-7-76, Formerly 12D-8.14, Repealed 12-31-98.

Fla. Admin. Code R. 12D-8.015 Extension of the Assessment Rolls

Upon receipt of the certifications of the millage rates to be applied against the taxable property in the taxing jurisdiction of the several levying authorities and upon receipt of the certification of the value adjustment board that all hearings required by Florida Statutes have been held, the property appraiser shall make all required extensions on the rolls to show the tax attributable to all taxable property in the county. This does not include lands available for taxes pursuant to Section 197.502(7), F.S.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.122(2), 197.323(1) FS. History–New 12-7-76, Formerly 12D-8.15.

Fla. Admin. Code R. 12D-8.016 Certification of Assessment Rolls by the Appraiser

Upon completion of the extension of the assessment rolls and upon satisfying himself or herself that all property is properly taxed, the appraiser shall execute the certification in the manner and form provided elsewhere in these rules and attach an executed copy of the same to each copy of the assessment roll. The appraiser shall forward a copy of the certification of each of the assessment rolls prepared by him or her to the Department of Revenue.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.011, 193.12 FS. History–New 12-7-76, Formerly 12D-8.16.

Fla. Admin. Code R. 12D-8.017 Distribution of Assessment Rolls

(1) The appraiser shall prepare and distribute the preliminary and the finalized (certified) assessment rolls to the following: A copy of the preliminary roll for the property appraiser’s office, if desired, and a copy of that part of the preliminary roll pertaining to each municipality as required by Section 193.116, F.S.: the original of the finalized (certified) roll to the tax collector, a copy of the finalized (certified) roll for the property appraiser’s office, if desired, and a copy of that part of the finalized (certified) roll pertaining to each municipality as required by Section 193.116, F.S. The property appraiser shall attach to each copy of each assessment roll the certificate of the value adjustment board required under Section 193.122(1), F.S., and the certificate required under Section 193.122(2), F.S.

(2) The Executive Director may, upon written request, require the property appraiser to transmit to the Department a printed copy of any one or all of the assessment rolls prepared by him for the year in which the notice is given. The property appraiser shall provide such copy to the Department no later than 30 days following the date such copy was requested. The Department shall return such copy to the property appraiser no later than 30 days following receipt of such copy.

History

• Rulemaking Authority 193.122(5), 195.027(1), 213.06(1) FS. Law Implemented 192.011, 193.114, 193.116, 193.122 FS. History–New 12-7-76, Formerly 12D-8.17.

Fla. Admin. Code R. 12D-8.018 Recapitulations of Assessment Rolls

(1)(a) On or before the first Monday of July of each year (unless an extension has been granted for completion of the assessment roll) each property appraiser shall certify and submit to the Department a recapitulation of each assessment roll prepared by him or her and a recapitulation of those portions of such rolls upon which municipal taxes will be levied and assessed for each municipality within the county. If an extension has been granted for completion of the assessment roll, the recapitulations shall be submitted on or before the last day of the extension. The recapitulation shall be in the manner and form provided elsewhere in these rules.

(b) Within 30 days of the close of the value adjustment board hearings and extension of the rolls, each property appraiser shall certify and submit the following to the Department:

1. A revised recapitulation of each of the assessment rolls prepared by him or her incorporating all changes granted by the value adjustment board and all other changes he or she has lawfully made to the rolls subsequent to initially publishing the rolls,

2. A similarly revised recapitulation of those portions of such rolls upon which municipal taxes will be levied and assessed for each municipality within the county,

3. A recapitulation of ad valorem taxes levied by each taxing authority within the county, and

4. A reconciliation between the initial and revised assessment rolls setting forth the reasons for each change.

(c) The recapitulations and reconciliation shall be in the manner and form provided elsewhere in these rules and shall include all changes and corrections made to the assessment rolls since the rolls were extended by the property appraiser.

(d) On or before the submission date of the initial assessment rolls, the tax collector shall submit to the Department a closing recapitulation of values on the prior year’s assessment rolls. This recapitulation shall be in the manner and form provided elsewhere in these rules and shall include all changes and corrections made to the assessment rolls since the rolls were extended by the property appraiser.

(2) The property appraiser shall, at the same time that the initial recapitulation is submitted to the Department, also certify and furnish a copy of the appropriate recapitulation of the assessment rolls or portions thereof, to the governing body of the county, the county school board, and to the governing body of the each municipality to be used as an estimate for the purpose of preparing budgets for the next ensuing fiscal year.

(3) The property appraiser shall furnish a copy of the initial recapitulation of each of the assessment rolls to the value adjustment board.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 129.03, 193.023, 193.114, 193.1142, 193.116, 193.122 FS. History–New 12-7-76, Formerly 12D-8.18.

Fla. Admin. Code R. 12D-8.019 Post-audit Review

Upon receiving the initial assessment rolls and the materials required by Rule 12D-8.013, F.A.C., the Department of Revenue shall begin the post-audit review process as prescribed by Section 195.097, F.S., in a timely manner consistent with its other functions and responsibilities. This process includes the following:

(1) Verification of sales for various property classes, as appropriate.

(2) Check on the accuracy of data on the property record cards.

(3) Check on the accuracy of appraisal computations.

(4) Preparation of cost indices.

(5) Preparation of agricultural valuations per acre.

(6) Check on applications for agricultural and high-water recharge classification and other classified use of property.

(7) Appraisal of parcels within various property classes, as appropriate.

(8) Check on property appraiser’s recommendations to the value adjustment board.

(9) Check on the accuracy of the personal property assessment roll, including the existence of a cross-reference to the return.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.096 FS. History–New 12-7-76, Formerly 12D-8.19, Amended 1-23-97.

Fla. Admin. Code R. 12D-8.020 Approval of Assessment Rolls by the Department of Revenue

(1) Upon receiving the assessment rolls, the Executive Director shall review the assessment rolls to determine if the rolls are indicative of just value of the property described therein. Review will in particular cover the following:

(a) Total value of the assessment roll, the overall percentage change in the rolls from the preceding year to the present year, and a projection of the overall level of assessment for real property.

(b) Ratio of assessments to full value of a sufficient number of classes of property for the Department to make a determination that the roll, as a whole, reflects assessments in substantial compliance with law, that values in each class reflect assessments in substantial compliance with law, and that assessments are equalized both within and between classes.

(c) Compliance with administrative orders issued pursuant to Section 195.097, F.S.

(d) Whether the assessment rolls are in the form required by the statutes and rules, including such items as whether the owner’s name and address are shown for each parcel, whether the property description is adequate for purposes of location, whether market areas are included, whether the property is exempt in whole or part, whether use values for property classified as agricultural, high-water recharge, etc., are shown, and the like.

(e) Whether the exemptions granted by the property appraiser are all properly documented and made in conformance with the law.

(f) Whether the property appraiser’s practices and procedures are likely to result in a roll expressing just value with equity between properties within the class and between the classes.

(2) In addition, the Executive Director may consider any other available and relevant information in determining whether an assessment roll should be approved or disapproved.

(3) The Executive Director, upon finding that the property appraiser has failed to prepare an assessment roll in the manner and form prescribed by law and these rules, or has not complied with an administrative order issued pursuant to Section 195.097, F.S., shall disapprove the roll in whole or in part, as appropriate, and return the same to the appraiser with a statement as to the reason for disapproval and directing that the assessment roll be amended, corrected or prepared anew within a designated time.

(4) The following are examples of failures to prepare the roll in the form prescribed by law and these rules. These examples are included for illustration only and are not restrictive of others.

(a) Failure to include proper descriptions of real property parcels on a real property assessment roll;

(b) Failure to show the just value of all property on the roll;

(c) Failure to show a proper categorization of exemptions on the roll;

(d) Failure to show both the just value and classified use value of property classified so that its assessed value for tax purposes is not determined under Section 193.011, F.S.

(e) Failure to properly identify the property according to the proper use type code as required under paragraph 12D-8.008(2)(c), F.A.C., for real property and paragraph 12D-8.009(2)(c), F.A.C., for tangible personal property;

(f) Failure to include on the tangible personal property assessment roll a code reference to the tax return identifying the property; and,

(g) Failure to otherwise prepare the assessment rolls as provided by these rules and the statutes.

(5)(a) The Executive Director, or his or her designee, shall have 50 days from the date a complete submission of the roll is received by the Department in which to examine any assessment roll submitted for approval, to make a determination on the same, and mail or otherwise transmit notice to the property appraiser of the determination. Provided, however, in those counties in which a review notice is issued by the Department, the Executive Director, or his or her designee, shall have 60 days from the date of issuance of the notice to make said determination. The Department will issue a review notice only within 30 days of complete submission of the roll. A complete submission of the rolls is defined in Section 192.001(18), F.S.

(b) The Executive Director, or his or her designee, shall notify the property appraiser of incomplete submission within 10 days after receipt thereof.

(c) The review notice shall, when issued to a county property appraiser by the Department, specify the remedial requirements for roll approval and the schedule for compliance and resubmission.

(d) Any determination other than approval of an assessment roll, shall be either by personal delivery, in which case the property appraiser shall give a receipt for the same; by U.S. mail, return receipt requested; by telegram; or by facsimile transmission (FAX). Provided, however, the Executive Director, or his or her designee, shall not act upon any single assessment roll or part of an assessment roll until all information properly requested and relevant to the approval process of that roll shall be submitted by the property appraiser, and a reasonable time is allowed for its review.

(e) In no event shall a formal determination by the Department be made later than 90 days after the first complete submission of the rolls by the county property appraiser.

History

• Rulemaking Authority 195.002, 195.027(1), 213.06(1) FS. Law Implemented 192.001, 193.114, 193.1142, 193.122, 195.027, 195.052, 195.096, 195.097 FS. History–New 12-7-76, Amended 9-30-82, Formerly 12D-8.20, Amended 12-25-96, 12-31-98.

Fla. Admin. Code R. 12D-8.021 Procedure for the Correction of Errors by Property Appraisers

(1) This rule shall apply to errors made by property appraisers in the assessment of taxes on both real and personal property.

(2) For every change made to an assessment roll subsequent to certification of that roll to the tax collector pursuant to Section 193.122, F.S., the property appraiser shall complete a Form DR-409, Certificate of Correction of Tax Roll (incorporated by reference in Rule 12D-16.002, F.A.C.). No property appraiser shall issue a Certificate of Correction except for a reason permitted by this rule section.

(a) The following errors shall be subject to correction:

1. The failure to allow an exemption for which an application has been filed and timely granted pursuant to the Florida Statutes.

2. Exemptions granted in error.

3. Typographical errors or printing errors in the legal description, name and address of the owner of record.

4. Error in extending the amount of taxes due.

5. Taxes omitted from the tax roll in error.

6. Mathematical errors.

7. Errors in classification of property.

8. Clerical errors.

9. Changes in value due to clerical or administrative type errors.

10. Erroneous or incomplete personal property assessments.

11. Taxes paid in error.

12. Any error of omission or commission which results in an overpayment of taxes, including clerical error.

13. Tax certificates that have been corrected when the correction requires that the tax certificate be reduced in value due to some error of the property appraiser, tax collector, their deputies or other county officials.

14. Void tax certificates.

15. Void tax deeds.

16. Void or redeemed tax deed applications.

17. Incorrect computation or measurement of acreage or square feet resulting in payment where no tax is due or underpayment.

18. Assessed nonexistent property.

19. Double assessment or payment.

20. Government owned exempt or immune property.

21. Government obtained property after January 1, for which proration is entitled under subsections 196.295(1) and (2), F.S., and partial refund due.

22. Erroneous listing of ownership of property, including common elements.

23. Destruction or damage of residential property caused by tornado, for which application for abatement of ad valorem taxes levied for the 1998 tax year is timely filed as provided in Chapter 98-185, Laws of Florida.

24. Material mistake of fact as described in Section 197.122, F.S., which is discovered within one (1) year of the approval of the tax rolls under Section 193.1142, F.S. The one (1) year period shall expire herein, regardless of the day of the week on which the end of the period falls. A refund resulting from a correction due to a material mistake of fact corrected within the one-year period may be sent to the Department for approval. Alternatively, the property appraiser has the option to issue a refund order directly to the tax collector. The option chosen must be exercised by plainly so indicating in the space provided on Form DR-409.

25. Errors in assessment of homestead property corrected pursuant to Section 193.155(8), F.S.

26. Granting a religious exemption where the applicant has applied for, and is entitled to, the exemption but did not timely file the application and, due to a misidentification of property ownership on the tax roll, the property appraiser and tax collector had not notified the applicant of the tax obligation. This subparagraph shall apply to tax years 1992 and later.

(b) The correction of errors shall not be limited to the preceding examples, but shall apply to any errors of omission or commission that may be subsequently found.

(c) Where the property appraiser agrees with the value adjustment board, it shall not be necessary for him to file a certificate of correction for a proper final value adjustment board reduction in assessed or taxable value for that tax year. The value adjustment board may not correct assessments from previous years, however, and the property appraiser may issue a certificate of correction as provided in this rule section.

(d) The following is a list of circumstances which involve changes in the judgment of the property appraiser and which, therefore, shall not be subject to correction or revision, except for corrections made within the one-year period described in subparagraph (2)(a)24. of this rule section. The term “judgment” as used in this rule section, shall mean the opinion of value, arrived at by the property appraiser based on the presumed consideration of the factors in Section 193.011, F.S., or the conclusion arrived at with regard to exemptions and determination that property either factually qualifies or factually does not qualify for the exemption. It includes exercise of sound discretion, for which another agency or court may not legally substitute its judgment, within the bounds of that discretion, and not void, and other than a ministerial act. The following is not an all inclusive list.

1. Change in mobile home classification not in compliance with attorney general opinion 74-150.

2. Extra depreciation requested.

3. Incorrect determination of zoning, land use or environmental regulations or restrictions.

4. Incorrect determination of type of construction or materials.

5. Any error of judgment in land or improvement valuation.

6. Any other change or error in judgment, including ordinary negligence which would require the exercise of appraisal judgment to determine the effect of the change on the value of the property or improvement.

7. Granting or removing an exemption, or the amount of an exemption.

8. Reconsideration of determining that improvements are substantially complete.

9. Reconsideration of assessing an encumbrance or restriction, such as an easement.

(3)(a) Correction of the tax roll shall be made by delivering to the tax collector the following items, if applicable.

1. Copy of the Certificate of Correction of Tax Roll, Form DR-409, or in the case of non-ad valorem assessments, Certificate of Correction of Non-Ad Valorem Assessment Roll, Form DR-409A (incorporated by reference in Rule 12D-16.002, F.A.C.),

2. Copy of value adjustment board order, final and not subject to appeal,

3. Homestead, charitable, religious, widow/widower or disabled exemption, or agricultural or high-water recharge classification, application, renewal, and

a. Proof of filing on or before March 1, or

b. Proof of postal error in the form of written evidence by the U.S. Postal Service of its error, within subsections 196.011(8) and (9), F.S. Property appraisers shall provide documentation of these items.

4. Evidence of removal or permanent affixation of mobile home prior to January 1.

5. Copy of demolition permit.

6. Proof that error is a disregard for existing facts.

7. Proof of destruction of improvement or structure as provided in Section 196.295, F.S.

8. Property appraiser’s written statement of good cause for waiver of penalty as provided in subsections 12D-8.005(5) and (6), F.A.C.

(b) If the taxpayer is making a claim for refund, the property appraiser shall be responsible for subparagraphs (3)(a)1. through 8. of this rule section if applicable and any other necessary proof to establish the claim.

(4) The payment of taxes shall not be excused because of any act of omission or commission on the part of any property appraiser, tax collector, value adjustment board, board of county commissioners, clerk of the circuit court, or newspaper in which an advertisement may be published. Any error or any act of omission or commission may be corrected at any time by the party responsible. The party discovering the error shall notify the person who made the error and the person who made the error shall make such corrections immediately. If the person who made the error refuses to act, for any reason, then subject to the limitations in this rule section, the person discovering the error shall make the correction. Corrections should be considered as valid from the date of the first act or omission and shall not affect the collection of tax.

(5) Property appraisers may correct errors made by themselves or their deputies in the preparation of the tax roll, whether said roll is in their possession, in the possession of the tax collector, or in the possession of the clerk of the court.

(6) If the tax collector refuses or does not elect to correct the errors, then the property appraiser shall correct the errors. When the corrections are made by the property appraiser, he shall at the same time give to the tax collector a copy of the Certificate of Correction to be filed by the tax collector.

(7) Except when a property owner consents to an increase, as provided in paragraph (10)(a), the correction of any error that will increase the assessed valuation, and subsequently the taxes, shall be presented to the property owner with a notice of proposed property taxes mailed or delivered to the property owner, which includes notice of the right of the property owner to petition the value adjustment board. Any error that will increase the assessed valuation and taxes shall be certified by the official correcting the error.

(8) The value adjustment board shall convene at such time as is necessary to consider changes in valuation submitted by the property appraiser. The property appraiser shall prepare all Certificates of Correction for the value adjustment board. However, this shall not restrict the tax collector, clerk of the court, or any other interested party from reporting errors to the value adjustment board.

(9) The property appraiser shall notify the property owner of the increase in the assessed valuation. The notice to the property owner by the property appraiser shall state that the property owner shall have the right to present a petition to the value adjustment board relative to the correction, except when the property appraiser has served a notice of intent to record a lien when property has improperly received homestead exemption.

(10) If the value adjustment board has adjourned, the property owner shall be afforded the following options when an error has been made which, when corrected, will have the effect of increasing the assessed valuation and subsequently the taxes. The options are:

(a) The property owner by waiver may consent to the increase in assessed valuation and subsequently the taxes by stating that he does not desire to present a petition to the value adjustment board and that he desires to pay the taxes on the current tax roll. If the property owner makes such a waiver, the property appraiser shall advise the tax collector who shall proceed under subsection 12D-13.006(6), F.A.C.

(b) The property owner may refuse to waive the right to petition the value adjustment board at which time the property appraiser shall notify the proper owner and tax collector that the correction shall be placed on the current year’s tax roll and also at such time as the subsequent year’s tax roll is prepared, the property owner shall have the right to file a petition contesting the corrected assessment.

(c) If the value adjustment board has adjourned for the year or the time for filing petitions has elapsed, a back assessment shall be considered made within the calendar year if, prior to the end of the calendar year, a signed Form DR-409, Certificate of Correction of Tax Roll or a supplemental assessment roll is tendered to the tax collector and a notice of proposed property taxes with notice of the right to petition the next scheduled value adjustment board is mailed or delivered to the property owner.

(11) Double Assessments. When a tax collector informs a property appraiser pursuant to subsection 12D-13.006(10), F.A.C., that any property has been assessed more than once, the property appraiser shall search the official records of the county to determine the correct property owner and the correct assessment. The property appraiser shall then certify to the tax collector the assessment which is correct and, provided the taxes have not been paid, the proper amount of tax due and payable.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.155, 194.011(1), 196.011, 197.122, 197.123, 197.131, 197.182, 197.323, 197.443 FS. History–New 12-7-76, Formerly 12D-8.21, Amended 12-10-92, 12-27-94, 12-25-96, 12-31-98, 1-16-06.

Fla. Admin. Code R. 12D-8.022 Reporting of Fiscal Data by Fiscally Constrained Counties to the Department of Revenue

(1) This rule applies to counties that meet the fiscally constrained definition in Section 218.67(1), F.S. Under Sections 218.12 and 218.125, F.S., these counties are required to apply for a distribution of funds appropriated by the Legislature for each of the following purposes:

(a) Offsetting reductions in property tax revenues occurring as a direct result of the implementation of revisions to Article VII, Florida Constitution approved in the special election held on January 29, 2008. These reductions include the additional $25,000 homestead exemption, the $25,000 tangible personal property exemption, homestead assessment difference transferability, and the 10 percent assessment increase limitation on nonhomestead property.

(b) Offsetting reductions in property tax revenues occurring as a direct result of the implementation of revisions to ss. 3(f) and 4(b) of Art. VII, Florida Constitution, approved in the general election held in November 2008. These reductions include the exemption for real property dedicated in perpetuity for conservation purposes and classified use assessments for land used for conservation purposes.

(2) An application must be filed with the Department of Revenue on Form DR-420FC, Distribution to Fiscally Constrained Counties Application, incorporated by reference in Rule 12D-16.002, F.A.C.

(3) Each fiscally constrained county must provide the completed form to the Department of Revenue by November 15 each year. The form must be prepared by the county property appraiser. The following is a summary of the information required on the form:

(a) An estimate of the reduction in taxable value for all county government taxing jurisdictions directly attributable to revisions to Article VII, Florida Constitution approved in the special election held on January 29, 2008. This estimate must be based on values comparable to those certified on Form DR-420, incorporated by reference in Rule 12D-16.002, F.A.C.;

(b) An estimate of the reduction in taxable value for all county government taxing jurisdictions directly attributable to revisions to ss. 3(f) and 4(b) of Art. VII, Florida Constitution, approved in the general election held in November 2008. This estimate must be based on values comparable to those certified on Form DR-420;

(c) Millage rates for all county government taxing jurisdictions as included on the tax roll extended according to Section 193.122, F.S., for all these jurisdictions for both the current and prior year;

(d) Rolled-back rates, if available, for each jurisdiction determined as provided in Section 200.065, F.S., and included on Form DR-420 by each taxing jurisdiction;

(e) Maximum millage rates, if available, for each jurisdiction that could have been levied by a majority vote as included on Form DR-420MM, Maximum Millage Levy Calculation – Final Disclosure, by each taxing jurisdiction. Form DR-420MM is incorporated by reference in Rule 12D-16.002, F.A.C.

(4) The calculation of each distribution of appropriated funds must include both operating and debt service levies, including millages levied for two years or less under Section 9(b), Article VII, Florida Constitution.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 218.12, 218.125, 218.67 FS. History–New 11-1-12.

Chapter 12D-9 REQUIREMENTS FOR VALUE ADJUSTMENT BOARDS IN ADMINISTRATIVE REVIEWS; UNIFORM RULES OF PROCEDURE FOR HEARINGS BEFORE VALUE ADJUSTMENT BOARDS

Fla. Admin. Code R. 12D-9.001 Taxpayer Rights in Value Adjustment Board Proceedings

(1) Taxpayers are granted specific rights by Florida law concerning value adjustment board procedures.

(2) These rights include:

(a) The right to be notified of the assessment of each taxable item of property in accordance with the notice provisions set out in Florida Statutes for notices of proposed property taxes;

(b) The right to request an informal conference with the property appraiser regarding the correctness of the assessment or to petition for administrative or judicial review of property assessments. An informal conference with the property appraiser is not a prerequisite to filing a petition for administrative review or an action for judicial review;

(c) The right to file a petition on a form provided by the county that is substantially the same as the form prescribed by the department or to file a petition on the form provided by the department for this purpose;

(d) The right to state on the petition the approximate time anticipated by the taxpayer to present and argue his or her petition before the board;

(e) The right to authorize another person to file a board petition on the taxpayer’s property assessment;

(f) The right, regardless of whether the petitioner initiates the evidence exchange, to receive from the property appraiser a copy of the current property record card containing information relevant to the computation of the current assessment, with confidential information redacted. This includes the right to receive such property record card when the property appraiser receives the petition from the board clerk, at which time the property appraiser will either send the property record card to the petitioner or notify the petitioner how to obtain it online;

(g) The right to be sent prior notice of the date for the hearing of the taxpayer’s petition by the value adjustment board and the right to the hearing within a reasonable time of the scheduled hearing;

(h) The right to reschedule a hearing a single time for good cause, as described in this chapter;

(i) The right to appear at a hearing using electronic or other communication equipment upon written request at least 10 calendar days before the date of the hearing, in any county having a population of 75,000 or more, and in any county having a population of less than 75,000 that has not opted out as provided by law, and the right to be notified of this right on the notice of hearing;

(j) The right to be notified of the date of certification of the county’s tax rolls;

(k) The right to represent himself or herself or to be represented by another person who is authorized by the taxpayer to represent the taxpayer before the board;

(l) The right, in counties that use special magistrates, to a hearing conducted by a qualified special magistrate appointed and scheduled for hearings in a manner in which the board, board attorney, and board clerk do not consider any assessment reductions recommended by any special magistrate in the current year or in any previous year;

(m) The right to have evidence presented and considered at a public hearing or at a time when the petitioner has been given reasonable notice;

(n) The right to have witnesses sworn and to cross-examine the witnesses;

(o) The right to be issued a timely written decision within 20 calendar days of the last day the board is in session pursuant to Section 194.034, F.S., by the value adjustment board containing findings of fact and conclusions of law and reasons for upholding or overturning the determination of the property appraiser or tax collector;

(p) The right to advertised notice of all board actions, including appropriate narrative and column descriptions, in brief and nontechnical language;

(q) The right to bring an action in circuit court to appeal a value adjustment board valuation decision or decision to disapprove a classification, exemption, portability assessment difference transfer, or to deny a tax deferral or to impose a tax penalty;

(r) The right to have federal tax information, ad valorem tax returns, social security numbers, all financial records produced by the taxpayer and other confidential taxpayer information, kept confidential; and,

(s) The right to limiting the property appraiser’s access to a taxpayer’s records to only those instances in which it is determined that such records are necessary to determine either the classification or the value of taxable non-homestead property.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 192.0105, 193.074, 194.011, 194.013, 194.015, 194.032, 194.034, 194.035, 194.036, 194.301, 195.002, 195.027, 195.084, 196.151, 196.193, 196.194 FS. History–New 3-30-10, Amended 9-19-17, 8-27-26.

Fla. Admin. Code R. 12D-9.002 Informal Conference Procedures

(1) Any taxpayer who objects to the assessment placed on his or her property, including the assessment of homestead property at less than just value, shall have the right to request an informal conference with the property appraiser.

(2) The property appraiser or a member of his or her staff shall confer with the taxpayer regarding the correctness of the assessment.

(3) At the conference, the taxpayer shall present facts that he or she considers supportive of changing the assessment and the property appraiser or his or her representative shall present facts that the property appraiser considers to be supportive of the assessment.

(4) The request for an informal conference is not a prerequisite to administrative or judicial review of property assessments. Requesting or participating in an informal conference does not extend the petition filing deadline. A taxpayer may file a petition while seeking an informal conference in order to preserve his or her right to an administrative hearing.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011 FS. History–New 3-30-10, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.003 Definitions

(1) “Agent” means any person who is authorized by the taxpayer to file a petition with the board and represent the taxpayer in board proceedings on the petition. The term “agent” means the same as the term “representative.”

(2) “Board” means the local value adjustment board.

(3) “Clerk” means the clerk of the local value adjustment board.

(4) “Department,” unless otherwise designated, means the Department of Revenue.

(5) “Hearing” means any hearing relating to a petition before a value adjustment board or special magistrate, regardless of whether the parties are physically present or telephonic or other electronic media is used to conduct the hearing, but shall not include a proceeding to act upon, consider or adopt special magistrates’ recommended decisions at which no testimony or comment is taken or heard from a party.

(6) “Petition” means a written request for a hearing, filed with a board by a taxpayer or an authorized person. A petition is subject to format and content requirements, as provided in Rule 12D-9.015, F.A.C. The filing of a petition is subject to timing requirements, as provided in this rule chapter.

(7) “Petitioner” means the taxpayer or the person authorized by the taxpayer to file a petition on the taxpayer’s behalf and represent the taxpayer in board proceedings on the petition.

(8) “Representative” means any person who is authorized by the taxpayer to file a petition with the board and represent the taxpayer in board proceedings on the petition. The term “representative” means the same as the term “agent.”

(9) “Taxpayer” means the person or other legal entity in whose name property is assessed, including an agent of a timeshare period titleholder, and includes exempt owners of property, for purposes of this chapter.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 192.001, 194.011, 194.013, 194.015, 194.032, 194.034, 195.022 FS. History–New 3-30-10, Amended 9-19-17, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.004 Composition of the Value Adjustment Board

(1) Every county shall have a value adjustment board which consists of:

(a) Two members of the governing body of the county, elected by the governing body from among its members, one of whom shall be elected as the chair of the value adjustment board;

(b) One member of the school board of the county, elected by the school board from among its members; and,

(c) Two citizen members:

1. One who owns homestead property in the county appointed by the county’s governing body,

2. One who owns a business that occupies commercial space located within the school district appointed by the school board of the county. This person must, during the entire course of service, own a commercial enterprise, occupation, profession, or trade conducted from a commercial space located within the school district and need not be the sole owner.

3. Citizen members must not be:

a. A member or employee of any taxing authority in this state,

b. A person who represents property owners, property appraisers, tax collectors, or taxing authorities in any administrative or judicial review of property taxes.

4. Citizen members shall be appointed in a manner to avoid conflicts of interest or the appearance of conflicts of interest.

(2)(a) Each elected member of the value adjustment board shall serve on the board until he or she is replaced by a successor elected by his or her respective governing body or school board or is no longer a member of the governing body or school board of the county.

(b) When an elected member of the value adjustment board ceases being a member of the governing body or school board whom he or she represents, that governing body or school board must elect a replacement.

(c) When the citizen member of the value adjustment board appointed by the governing body of the county is no longer an owner of homestead property within the county, the governing body must appoint a replacement.

(d) When the citizen member appointed by the school board is no longer an owner of a business occupying commercial space located within the school district, the school board must appoint a replacement.

(3)(a) At the same time that it selects a primary member of the value adjustment board, the governing body or school board may select an alternate to serve in place of the primary member as needed. The method for selecting alternates is the same as that for selecting the primary members.

(b) At any time during the value adjustment board process the chair of the county governing body or the chair of the school board may appoint a temporary replacement for its elected member of the value adjustment board or for a citizen member it has appointed to serve on the value adjustment board.

(4)(a) To have a quorum of the value adjustment board, the members of the board who are present must include at least:

1. One member of the governing body of the county,

2. One member of the school board; and,

3. One of the two citizen members.

(b) The quorum requirements of Section 194.015, F.S., may not be waived by anyone, including the petitioner.

(5) The value adjustment board cannot hold its organizational meeting until all members of the board are appointed, even if the number and type of members appointed are sufficient to constitute a quorum. If board legal counsel has not been previously appointed for that year, such appointment must be the first order of business.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.015 FS. History–New 3-30-10, Amended 9-19-17, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.005 Duties of the Board

(1)(a) The value adjustment board shall meet not earlier than 30 days and not later than 60 days after the mailing of the notice provided in Section 194.011(1), F.S.; however, no board hearing shall be held before approval of all or any part of the county’s assessment rolls by the Department of Revenue. The board shall meet for the following purposes:

1. Hearing petitions relating to assessments filed pursuant to Section 194.011(3), F.S.,

2. Hearing complaints relating to homestead exemptions as provided for under Section 196.151, F.S.,

3. Hearing appeals from exemptions denied, or disputes arising from exemptions granted, upon the filing of exemption applications under Section 196.011, F.S.,

4. Hearing appeals concerning ad valorem tax deferrals and classifications, or

5. Hearing appeals from determinations that a change of ownership under Section 193.155(3), F.S., a change of ownership or control under Section 193.1554(5) or 193.1555(5), F.S., or a qualifying improvement under Section 193.1555(5), F.S., has occurred.

(b) The board may not meet earlier than July 1 to hear appeals pertaining to the denial of exemptions, agricultural and high-water recharge classifications, classifications as historic property used for commercial or certain nonprofit purposes, deferrals, and refunds due to catastrophic events based on the statutory criteria in Section 197.319, F.S.

(c) The board shall remain in session until its duties are completed concerning all assessment rolls or parts of assessment rolls. The board may temporarily recess, but shall reconvene when necessary to hear petitions, complaints, or appeals and disputes filed upon the roll or portion of the roll when approved. The board shall make its decisions timely so that the board clerk may observe the requirement that such decisions shall be issued within 20 calendar days of the last day the board is in session pursuant to Section 194.034, F.S.

(2)(a) Value adjustment boards may have additional internal operating procedures, not rules, that do not conflict with, change, expand, suspend, or negate the rules adopted in this rule chapter or other provisions of law, and only to the extent indispensable for the efficient operation of the value adjustment board process. The board may publish fee schedules adopted by the board.

(b) These internal operating procedures may include methods for creating the verbatim record, provisions for parking by participants, assignment of hearing rooms, compliance with the Americans with Disabilities Act, and other ministerial type procedures.

(c) The board shall not provide notices or establish a local procedure instructing petitioners to contact the property appraiser’s or tax collector’s office or any other agency with questions about board hearings or procedures. The board, board legal counsel, board clerk, special magistrate or other board representative shall not otherwise enlist the property appraiser’s or tax collector’s office to perform administrative duties for the board. Personnel performing any of the board’s duties shall be independent of the property appraiser’s and tax collector’s office. This section shall not prevent the board clerk or personnel performing board duties from referring petitioners to the property appraiser or tax collector for issues within the responsibility of the property appraiser or tax collector. This section shall not prevent the property appraiser from providing data to assist the board clerk with the notice of tax impact.

(3) The board must ensure that all board meetings are duly noticed under Section 286.011, F.S., and are held in accordance with the law.

(4) Other duties of value adjustment boards are set forth in other areas of Florida law. Value adjustment boards shall perform all duties required by law and shall abide by all limitations on their authority as provided by law.

(5) Failure on three occasions with respect to any single tax year for the board to convene at the scheduled time of meetings of the board is grounds for removal from office by the Governor for neglect of duties.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 192.0105, 194.011, 194.015, 194.032, 194.034, 194.035, 194.037, 197.319 FS. History–New 3-30-10, Amended 9-19-17, 1-1-23.

Fla. Admin. Code R. 12D-9.006 Clerk of the Value Adjustment Board

(1) The clerk of the governing body of the county shall be the clerk of the value adjustment board.

(2) The board clerk may delegate the day to day responsibilities for the board to a member of his or her staff, but is ultimately responsible for the operation of the board.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 28.12, 192.001, 194.011, 194.015, 194.032 FS. History–New 3-30-10, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.007 Role of the Clerk of the Value Adjustment Board

(1) It is the board clerk’s responsibility to verify through board legal counsel that the value adjustment board meets all of the requirements for the organizational meeting before the board or special magistrates hold hearings. If the board clerk determines that any of the requirements were not met, he or she shall contact the board legal counsel or the chair of the board regarding such deficiencies and cancel any scheduled hearings until such time as the requirements are met.

(2) The board clerk shall make petition forms available to the public upon request.

(3) The board clerk shall receive and acknowledge completed petitions and promptly furnish a copy of all completed and timely filed petitions to the property appraiser or tax collector. Alternatively, the property appraiser or the tax collector may obtain the relevant information from the board clerk electronically.

(4) The board clerk shall prepare a schedule of appearances before the board based on petitions timely filed with him or her. If the petitioner has indicated on the petition an estimate of the amount of time he or she will need to present and argue the petition, the board clerk must take this estimate into consideration when scheduling the hearing.

(5) No less than 25 calendar days prior to the day of the petitioner’s scheduled appearance before the board, the board clerk must notify the petitioner of the date and time scheduled for the appearance. The board clerk shall simultaneously notify the property appraiser or tax collector.

(6) If an incomplete petition, which includes a petition not accompanied by the required filing fee, is received within the time required, the board clerk shall notify the petitioner and give the petitioner an opportunity to complete the petition within 10 calendar days from the date notification is mailed. Such petition shall be timely if completed and filed, including payment of the fee if previously unpaid within the time frame provided in the board clerk’s notice of incomplete petition.

(7) In counties with a population of more than 75,000, the board clerk shall provide notification annually to qualified individuals or their professional associations of opportunities to serve as special magistrates.

(8) The board clerk shall ensure public notice of and access to all hearings. Such notice shall contain a general description of the locations, dates, and times hearings are being scheduled. This notice requirement may be satisfied by making such notice available on the board clerk’s website. Hearings must be conducted in facilities that are clearly identified for such purpose and are freely accessible to the public while hearings are being conducted. The board clerk shall assure proper signage to identify such facilities.

(9) The board clerk shall schedule hearings to allow sufficient time for evidence to be presented and considered and to allow for hearings to begin at their scheduled time. The board clerk shall advise the chair of the board if the board’s tentative schedule for holding hearings is insufficient to allow for proper scheduling.

(10) The board clerk shall timely notify the parties of the decisions of the board so that such decisions shall be issued within 20 calendar days of the last day the board is in session pursuant to Section 194.034, F.S., and shall otherwise notify the property appraiser or tax collector of such decision. Notification of the petitioner must be by first class mail or by electronic means as set forth in Section 194.034(2) or 192.048, F.S. In counties using special magistrates, the board clerk shall also make available to both parties as soon as practicable a copy of the recommended decision of the special magistrate by mail or electronic means. No party shall have access to decisions prior to any other party.

(11) After the value adjustment board has decided all petitions, complaints, appeals and disputes, the board clerk shall make public notice of the findings and results of the board in the manner prescribed in Section 194.037, F.S., and by the department.

(12) The board clerk is the official record keeper for the board and shall maintain a record of the proceedings which shall consist of:

(a) All filed documents;

(b) A verbatim record of any hearing;

(c) All tangible exhibits and documentary evidence presented;

(d) Any meeting minutes; and,

(e) Any other documents or materials presented on the record by the parties or by the board or special magistrate.

The record shall be maintained for four years after the final decision has been rendered by the board, if no appeal is filed in circuit court or for five years if an appeal is filed, or, if requested by one of the parties, until the final disposition of any subsequent judicial proceeding relating to the property.

(13) The board clerk shall make available to the public copies of all additional internal operating procedures and forms of the board or special magistrates described in Rule 12D-9.005, F.A.C., and shall post any such procedures and forms on the board clerk’s website, if any. Making materials available on a website is sufficient; however, provisions shall be made for persons that have hardship. Such materials shall be consistent with Department rules and forms.

(14) The board clerk shall provide notification of appeals or value adjustment board petitions taken with respect to property located within a municipality to the chief executive officer of each municipality as provided in Section 193.116, F.S. The board clerk shall also publish any notice required by Section 196.194, F.S.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 192.048, 194.011, 194.013, 194.015, 194.032, 194.034, 194.035, 194.036, 195.022 FS. History–New 3-30-10, Amended 6-14-16, 3-13-17, 9-19-17, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.008 Appointment of Legal Counsel to the Value Adjustment Board

(1) Each value adjustment board must appoint private legal counsel to assist the board.

(2) This legal counsel must be an attorney in private practice. The use of an attorney employed by government is prohibited. Counsel must have practiced law for over five years and meet the requirements of Section 194.015, F.S.

(3) An attorney may represent more than one value adjustment board.

(4) An attorney may represent a value adjustment board, even if another member of the attorney’s law firm represents one of the enumerated parties so long as the representation is not before the value adjustment board.

(5) Legal counsel should avoid conflicts of interest or the appearance of a conflict of interest in their representation.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.015 FS. History–New 3-30-10, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.009 Role of Legal Counsel to the Board

(1) The board legal counsel shall have the responsibilities listed below consistent with the provisions of law.

(a) The primary role of the board legal counsel shall be to advise the board on all aspects of the value adjustment board review process to ensure that all actions taken by the board and its appointees meet the requirements of law.

(b) Board legal counsel shall advise the board in a manner that will promote and maintain a high level of public trust and confidence in the administrative review process.

(c) The board legal counsel is not an advocate for either party in a value adjustment board proceeding, but instead ensures that the proceedings are fair and consistent with the law.

(d) Board legal counsel shall advise the board of the actions necessary for compliance with the law.

(e) Board legal counsel shall advise the board regarding:

1. Composition and quorum requirements;

2. Statutory training and qualification requirements for special magistrates and members of the board;

3. Legal requirements for recommended decisions and final decisions;

4. Public meeting and open government laws; and,

5. Any other duties, responsibilities, actions or requirements of the board consistent with the laws of this state.

(f) Board legal counsel shall review and respond to written complaints alleging noncompliance with the law by the board, special magistrates, board clerk, and the parties. The legal counsel shall send a copy of the complaint along with the response to the department. This section does not refer to routine requests for reconsideration, requests for rescheduling, and pleadings and argument in petitions.

(2) The board legal counsel shall, upon appointment, send his or her contact information, which shall include his or her name, mailing address, telephone number, fax number, and e-mail address, to the department by mail, fax or email to:

Department of Revenue

Property Tax Oversight Program

Attn.: Director

P.O. Box 3000

Tallahassee, FL 32315-3000

Fax Number: (850)488-9482

Email Address: VAB@floridarevenue.com.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.015 FS. History–New 3-30-10, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.010 Appointment of Special Magistrates to the Value Adjustment Board

(1) In counties with populations of more than 75,000, the value adjustment board shall appoint special magistrates to take testimony and make recommendations on petitions filed with the value adjustment board. Special magistrates shall be selected from a list maintained by the board clerk of qualified individuals who are willing to serve. When appointing special magistrates, the board, board attorney, and board clerk shall not consider any assessment reductions recommended by any special magistrate in the current year or in any previous year. The process for review of complaints of bias, prejudice, or conflict of interest regarding the actions of a special magistrate shall be as provided in subsection 12D-9.022(4), F.A.C.

(2) In counties with populations of 75,000 or less, the value adjustment board shall have the option of using special magistrates. The department shall make available to such counties a list of qualified special magistrates.

(3) A person does not have to be a resident of the county in which he or she serves as a special magistrate.

(4) The special magistrate must meet the following qualifications:

(a) A special magistrate must not be an elected or appointed official or employee of the county.

(b) A special magistrate must not be an elected or appointed official or employee of a taxing jurisdiction or of the State.

(c) During a tax year in which a special magistrate serves, he or she must not represent any party before the board in any administrative review of property taxes.

(d) All special magistrates must meet the qualifications specified in Section 194.035, F.S.

1. A special magistrate appointed to hear issues of exemptions, classifications, portability assessment difference transfers, changes of ownership under Section 193.155(3), F.S., changes of ownership or control under Section 193.1554(5), or 193.1555(5), F.S., or a qualifying improvement determination under Section 193.1555(5), F.S., must be a member of The Florida Bar, must have at least five years of experience in the area of ad valorem taxation, and must receive training provided by the department. Alternatively, a member of The Florida Bar with at least three years of experience in ad valorem taxation and who has completed board training provided by the department including the examination, may serve as a special magistrate.

2. A special magistrate appointed to hear issues regarding the valuation of real estate shall be a state certified real estate appraiser, must have at least five years of experience in real property valuation, and must receive training provided by the department. Alternatively, a state certified real estate appraiser with at least three years of real estate valuation experience and who has completed board training provided by the department including the examination, may serve as a special magistrate. A real property valuation special magistrate must be certified under Chapter 475, Part II, F.S.

a. A Florida certified residential appraiser appointed by the value adjustment board shall only hear petitions on the just valuation of residential real property of one to four residential units and shall not hear petitions on other types of real property.

b. A Florida certified general appraiser appointed by the value adjustment board may hear petitions on the just valuation of any type of real property.

3. A special magistrate appointed to hear issues regarding the valuation of tangible personal property shall be a designated member of a nationally recognized appraiser’s organization, must have at least five years of experience in tangible personal property valuation, and must receive training provided by the department. Alternatively, a designated member of a nationally recognized appraiser’s organization with at least three years of experience in tangible personal property valuation and who has completed board training provided by the department including the examination, may serve as a special magistrate.

4. All special magistrates shall attend or receive an annual training program provided by the department. Special magistrates substituting two years of experience must show that they have completed the training by taking a written examination provided by the department. A special magistrate must receive or complete any required training prior to holding hearings.

(5)(a) The value adjustment board or board legal counsel must verify a special magistrate’s qualifications before appointing the special magistrate.

(b) The selection of a special magistrate must be based solely on the experience and qualification of such magistrate, and must not be influenced by any party, or prospective party, to a board proceeding or by any such party with an interest in the outcome of such proceeding. Special magistrates must adhere to Rule 12D-9.022, F.A.C., relating to disqualification or recusal.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.032, 194.034, 194.035 FS. History–New 3-30-10, Amended 9-19-17, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.011 Role of Special Magistrates to the Value Adjustment Board

(1) The role of the special magistrate is to conduct hearings, take testimony and make recommendations to the board regarding petitions filed before the board. In carrying out these duties the special magistrate shall:

(a) Accurately and completely preserve all testimony, documents received, and evidence admitted for consideration;

(b) At the request of either party, administer the oath upon the property appraiser or tax collector, each petitioner and all witnesses testifying at a hearing;

(c) Conduct all hearings in accordance with the rules prescribed by the department and the laws of the state; and,

(d) Make recommendations to the board which shall include proposed findings of fact, proposed conclusions of law, and the reasons for upholding or overturning the determination of the property appraiser or tax collector, also see Rule 12D-9.030, F.A.C.

(2) The special magistrate shall perform other duties as set out in the rules of the department and other areas of Florida law, and shall abide by all limitations on the special magistrate’s authority as provided by law.

(3) When the special magistrate determines that the property appraiser did not establish a presumption of correctness, or determines that the property appraiser established a presumption of correctness that is overcome, as provided in Rule 12D-9.027, F.A.C., and the record contains competent substantial evidence for establishing value, an appraiser special magistrate is required to establish a revised value for the petitioned property. In establishing the revised value when authorized by law, the board or special magistrate is not restricted to any specific value offered by the parties.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.032, 194.034, 194.035, 195.022 FS. History–New 3-30-10, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.012 Training of Special Magistrates, Value Adjustment Board Members, and Legal Counsel

(1) The department shall provide and conduct training for special magistrates at least once each state fiscal year available in at least five locations throughout the state. Such training shall emphasize:

(a) The law that applies to the administrative review of assessments;

(b) Taxpayer rights in the administrative review process;

(c) The composition and operation of the value adjustment board;

(d) The roles of the board, board clerk, board legal counsel, special magistrates, and the property appraiser or tax collector and their staff;

(e) Procedures for conducting hearings;

(f) Administrative reviews of just valuations, classified use valuations, property classifications, exemptions, and portability assessment differences;

(g) The review, admissibility, and consideration of evidence;

(h) Requirements for written decisions; and,

(i) The department’s standard measures of value, including the guidelines for real and tangible personal property.

(2) The training shall be open to the public.

(3) Before any hearings are conducted, in those counties that do not use special magistrates, all members of the board or the board’s legal counsel must receive the training, including any updated modules, before conducting hearings, but need not complete the training examinations, and shall provide a statement acknowledging receipt of the training to the board clerk.

(4)(a) Each special magistrate that has five years of experience and, in those counties that do not use special magistrates, each board member or the board legal counsel must receive the training, including any updated modules, before conducting hearings, but need not complete the training examinations, and shall provide a statement acknowledging receipt of the training to the board clerk.

(b) Each special magistrate that has three years of experience must complete the training including any updated modules and examinations, and receive from the department a certificate of completion, before conducting hearings and shall provide a copy of the certificate of completion of the training and examinations, including any updated modules, to the board clerk.

(5) The department’s training is the official training for special magistrates regarding administrative reviews. The board clerk and board legal counsel may provide orientation to the special magistrates relating to local operating or ministerial procedures only. Such orientation meetings shall be open to the public for observation. This does not prevent board legal counsel from giving legal advice; however, to the fullest extent practicable, such legal advice should be in writing and public record. For requirements for decisions specifically based on legal advice see subsection 12D-9.030(6) and paragraph 12D-9.032(1)(b), F.A.C.

(6) Meetings or orientations for special magistrates, for any instructional purposes relating to procedures for hearings, handling or consideration of petitions, evidence, worksheets, forms, decisions or related computer files, must be open to the public for observation. Such meetings or orientations must be reasonably noticed to the public in the same manner as an organizational meeting of the board, or posted as reasonable notice on the board clerk’s website.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.032, 194.034, 194.035, 195.022, 195.084 FS. History–New 3-30-10, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.013 Organizational Meeting of the Value Adjustment Board

(1) The board shall annually hold one or more organizational meetings, at least one of which shall meet the requirements of this section. The board shall hold this organizational meeting prior to the holding of value adjustment board hearings. The board shall provide reasonable notice of each organizational meeting and such notice shall include the date, time, location, purpose of the meeting, and information required by Section 286.0105, F.S. At one organizational meeting the board shall:

(a) Introduce the members of the board and provide contact information;

(b) Introduce the board clerk or any designee of the board clerk and provide the board clerk’s contact information;

(c) Appoint or ratify the private board legal counsel. At the meeting at which board counsel is appointed, this item shall be the first order of business;

(d) Appoint or ratify special magistrates, if the board will be using them for that year;

(e) Make available to the public, special magistrates and board members, rule Chapter 12D-9, F.A.C., containing the uniform rules of procedure for hearings before value adjustment boards and special magistrates (if applicable), and the associated forms that have been adopted by the department;

(f) Make available to the public, special magistrates and board members, rule Chapter 12D-10, F.A.C., containing the rules applicable to the requirements for hearings and decisions;

(g) Make available to the public, special magistrates and board members the requirements of Florida’s Government in the Sunshine/open government laws including information on where to obtain the current Government-In-The-Sunshine manual;

(h) Discuss, take testimony on and adopt or ratify with any required revision or amendment any local administrative procedures and forms of the board. Such procedures must be ministerial in nature and not be inconsistent with governing statutes, case law, attorney general opinions or rules of the department. All local administrative procedures and forms of the board or special magistrates shall be made available to the public and shall be accessible on the board clerk’s website, if any;

(i) Discuss general information on Florida’s property tax system, respective roles within this system, taxpayer opportunities to participate in the system, and property taxpayer rights;

(j) Make available to the public, special magistrates and board members, Rules 12D-51.001, 12D-51.002 and 12D-51.003, F.A.C., and Chapters 192 through 195, F.S., as reference information containing the guidelines and statutes applicable to assessments and assessment administration;

(k) Adopt or ratify by resolution any filing fee for petitions for that year, in an amount not to exceed $15; and,

(l) For purposes of this rule, making available to the public means, in addition to having copies at the meeting, the board may refer to a website containing copies of such documents.

(2) The board shall announce the tentative schedule for the value adjustment board taking into consideration the number of petitions filed, the possibility of the need to reschedule and the requirement that the board stay in session until all petitions have been heard.

(3) The board may hold additional meetings for the purpose of addressing administrative matters.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.013, 194.015, 194.032, 194.034, 194.035, 286.011, 286.0105 FS. History–New 3-30-10.

Fla. Admin. Code R. 12D-9.014 Prehearing Checklist

(1) The board clerk shall not allow the holding of scheduled hearings until the board legal counsel has verified that all requirements in Chapter 194, F.S., and department rules, were met as follows:

(a) The composition of the board is as provided by law;

(b) Board legal counsel has been appointed as provided by law;

(c) Board legal counsel meets the requirements of Section 194.015, F.S.;

(d) No board members represent other government entities or taxpayers in any administrative or judicial review of property taxes, and citizen members are not members or employees of a taxing authority, during their membership on the board;

(e) In a county that does not use special magistrates, either all board members have received the department’s training or board legal counsel has received the department’s training;

(f) The organizational meeting, as well as any other board meetings, will be or were noticed in accordance with Section 286.011, F.S., and will be or were held in accordance with law;

(g) The department’s uniform value adjustment board procedures, consisting of this rule chapter, were made available at the organizational meeting and copies were provided to special magistrates and board members;

(h) The department’s uniform policies and procedures manual is available on the existing website of the board clerk, if the board clerk has a website;

(i) The qualifications of special magistrates were verified, including that special magistrates received the department’s training, and that special magistrates with less than five years of required experience successfully completed the department’s training including any updated modules and an examination, and were certified;

(j) The selection of special magistrates was based solely on proper experience and qualifications and neither the property appraiser nor any petitioners influenced the selection of special magistrates. This provision does not prohibit the board from considering any written complaint filed with respect to a special magistrate by any party or citizen;

(k) The appointment and scheduling of special magistrates for hearings was done in a manner in which the board, board attorney, and board clerk did not consider any assessment reductions recommended by any special magistrate in the current year or in any previous year.

(l) All procedures and forms of the board or special magistrate are in compliance with Chapter 194, F.S., and this rule chapter;

(m) The board is otherwise in compliance with Chapter 194, F.S., and this rule chapter; and,

(n) Notice has been given to the chief executive officer of each municipality as provided in Section 193.116, F.S.

(2) The board clerk shall notify the board legal counsel and the board chair of any action needed to comply with subsection (1).

PART II

PETITIONS; REPRESENTATION OF THE TAXPAYER; SCHEDULING AND NOTICE OF A HEARING; EXCHANGE OF EVIDENCE; WITHDRAWN OR SETTLED PETITIONS; HEARING PROCEDURES; DISQUALIFICATION OR RECUSAL; EX PARTE COMMUNICATION PROHIBITION; RECORD OF THE PROCEEDING; PETITIONS ON TRANSFER OF “PORTABILITY” ASSESSMENT DIFFERENCE; REMANDING ASSESSMENTS; RECOMMENDED DECISIONS; CONSIDERATION AND ADOPTION OF RECOMMENDED DECISIONS; FINAL DECISIONS; FURTHER JUDICIAL PROCEEDINGS

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1), 213.06(1) FS. Law Implemented 194.011, 194.015, 194.032, 194.034, 194.035 FS. History–New 3-30-10, Amended 9-19-17.

Fla. Admin. Code R. 12D-9.015 Petition; Form and Filing Fee

(1)(a) For the purpose of requesting a hearing before the value adjustment board, the department prescribes Form DR-486. The Form DR-486 series is adopted and incorporated by reference in Rule 12D-16.002, F.A.C.

(b) In accordance with Section 194.011(3), F.S., the department is required to prescribe petition forms. The department will not approve any local version of this form that contains substantive content that varies from the department’s prescribed form. Any requests under Section 195.022, F.S., or approval from the department to use forms for petitions that are not identical to the department’s form shall be by written board action or by written and signed request from the board chair or board legal counsel.

(2) Content of Petition. Petition forms as adopted or approved by the department shall contain the following elements so that when filed with the board clerk they shall:

(a) Describe the property by parcel number;

(b) Be sworn by the petitioner;

(c) State the approximate time anticipated by the petitioner for presenting and arguing his or her petition before the board or special magistrate to be considered by the board clerk as provided in subsection 12D-9.019(1), F.A.C., and may provide dates of nonavailability for scheduling purposes if applicable;

(d) Contain a space for the petitioner to indicate on the petition form that he or she does not wish to be present and argue the petition before the board or special magistrate but would like to have their evidence considered without an appearance;

(e) Contain a statement that the petitioner has the right, regardless of whether the petitioner initiates the evidence exchange, to receive from the property appraiser a copy of the property record card containing information relevant to the computation of the current assessment, with confidential information redacted, along with a statement that when the property appraiser receives the petition, the property appraiser will either send the property record card to the petitioner or notify the petitioner how to obtain the property record card online;

(f)1. Contain a signature field for the taxpayer to sign the petition and a checkbox for the taxpayer to indicate that she or he has authorized a representative to receive or access confidential taxpayer information related to the taxpayer,

2. Contain a checkbox for the taxpayer to indicate that he or she has authorized a compensated or uncompensated representative to act on the taxpayer’s behalf,

3. Contain a signature field for an authorized employee or representative to sign the petition, when applicable, along with the authorized employee’s or representative’s sworn certification under penalty of perjury that he or she has the taxpayer’s authorization to file the petition on the taxpayer’s behalf together with checkboxes for professional information and spaces for license numbers; and,

4. Contain a signature field for a compensated or uncompensated representative, who is not an employee of the taxpayer or of an affiliated entity, and not an attorney who is a member of The Florida Bar, a real estate appraiser licensed or certified under Chapter 475, Part II, F.S., a real estate broker licensed under Chapter 475, Part I, F.S., or a certified public accountant licensed under Chapter 473, F.S., and contain checkboxes, for a compensated representative to indicate he or she is attaching a power of attorney from the taxpayer, and for an uncompensated representative to indicate he or she is attaching a written authorization from the taxpayer.

(g) If the petition indicates that the taxpayer has authorized a compensated representative, who is not acting as a licensed or certified professional listed in paragraph 12D-9.018(3)(a), F.A.C., to act on the taxpayer’s behalf, at the time of filing, the petition must either be signed by the taxpayer or be accompanied by a power of attorney; and,

(h) If the petition indicates that the taxpayer has authorized an uncompensated representative to act on the taxpayer’s behalf, at the time of filing, the petition must either be signed by the taxpayer or be accompanied by the taxpayer’s written authorization.

(i) Contain a space for the petitioner to indicate if the property is four or less residential units; or other property type; provided the board clerk shall accept the petition even if this space is not filled in; and,

(j) Contain a statement that a tangible personal property assessment may not be contested unless a return required by Section 193.052, F.S., is timely filed.

(3) The petition form shall provide notice to the petitioner that the person signing the petition becomes the agent of the taxpayer for the purpose of serving process to obtain personal jurisdiction over the taxpayer for the entire value adjustment board proceeding, including any appeals to circuit court of a board decision by the property appraiser or tax collector.

(4) The petition form shall provide notice to the petitioner of his or her right to an informal conference with the property appraiser and that such conference is not a prerequisite to filing a petition nor does it alter the time frame for filing a timely petition.

(5) The department, the board clerk, and the property appraiser or tax collector shall make available to petitioners the blank petition form adopted or approved by the department. The department prescribes the Form DR-486 series, for this purpose, incorporated in Rule 12D-16.002, F.A.C., by reference.

(6) If the taxpayer or representative’s name, address, telephone, or similar contact information on the petition changes after filing the petition and before the hearing, the taxpayer or representative shall notify the board clerk in writing.

(7) Filing Fees. By resolution of the value adjustment board, a petition must be accompanied by a filing fee to be paid to the board clerk in an amount determined by the board not to exceed $15 for each separate parcel of property, real or personal covered by the petition and subject to appeal. The resolution may include arrangements for petitioners to pay filing fees by credit card.

(a) Other than fees required for late filed applications under Sections 193.155(8)(j) and 196.011(9), F.S., only a single filing fee may be charged to any particular parcel of real property or tangible personal property account, despite the existence of multiple issues or hearings pertaining to such units, parcels, or accounts.

(b) No filing fee shall be required with respect to an appeal from the disapproval of a timely filed application for homestead exemption or from the denial of a tax deferral.

(c) For single joint petitions filed pursuant to Section 194.011(3)(e), (f), or (g), F.S., a single filing fee is to be charged. Such fee must be calculated as the cost of the time required for the special magistrate to hear the joint petition and may not exceed $5 per unit, parcel, or account, in addition to any filing fee for the petition. Said fee is to be proportionately paid by affected property owners.

(d) The value adjustment board or its designee shall waive the filing fee with respect to a petition filed by a taxpayer who demonstrates at the time of the filing by submitting with the petition documentation issued by the Department of Children and Families that the petitioner is currently an eligible recipient of temporary assistance under Chapter 414, F.S.

(e) All filing fees shall be paid to the board clerk at the time of filing. Any petition not accompanied by the required filing fee will be deemed incomplete.

(8) An owner of contiguous, undeveloped parcels may file a single joint petition if the property appraiser determines such parcels are substantially similar in nature. A condominium association, cooperative association, or any homeowners’ association as defined in Section 723.075, F.S., with approval of its board of administration or directors, may file with the value adjustment board a single joint petition on behalf of any association members who own units or parcels of property which the property appraiser determines are substantially similar with respect to location, proximity to amenities, number of rooms, living area, and condition. An owner of multiple tangible personal property accounts may file a single joint petition if the property appraiser determines that the tangible personal property accounts are substantially similar in nature. The property appraiser must provide the petitioner with such determination upon request by the petitioner. The petitioner must obtain the determination from the property appraiser prior to filing the petition and must file the determination provided and completed by the property appraiser with the petition. An incorporated attached list of units, parcels, or accounts by parcel number or account number, with an indication on the petition form showing a joint petition, is sufficient to signify a joint petition.

(9) Persons Authorized to Sign and File Petitions. The following persons may sign and file petitions with the value adjustment board.

(a) The taxpayer may sign and file a petition.

(b) An employee of the taxpayer or of an affiliated entity or a licensed or certified professional listed in paragraph 12D-9.018(3)(a), F.A.C., who the taxpayer has authorized to file a petition and represent the taxpayer and who certifies under penalty of perjury that he or she has the taxpayer’s authorization to file a petition on the taxpayer’s behalf and represent the taxpayer, may sign and file such a petition that is not signed by the taxpayer and that is not accompanied by the taxpayer’s written authorization.

(c) A compensated person, who is not an employee of the taxpayer or of an affiliated entity and who is not acting as a licensed or certified professional listed in paragraph 12D-9.018(3)(a), F.A.C., may sign and file a petition on the taxpayer’s behalf if the taxpayer has authorized such person by power of attorney. If the petition is not signed by the taxpayer, such person must provide a copy of the power of attorney to the board clerk at the time the petition is filed. This power of attorney is valid only for representing a single taxpayer in a single assessment year, and must identify the units, parcels, or accounts for which the person is authorized to represent the taxpayer and must conform to the requirements of Chapter 709, Part II, F.S. A taxpayer may use a Department of Revenue form to grant the power of attorney or may use a different form provided it meets the requirements of Chapter 709, Part II, and Section 194.034(1), F.S. The Department has adopted Form DR-486POA, Power of Attorney for Representation Before the Value Adjustment Board, which is incorporated by reference in Rule 12D-16.002, F.A.C., as a form available to taxpayers for granting the power of attorney.

(d) An uncompensated person, who has a taxpayer’s signed written authorization to represent the taxpayer, is authorized to sign and file a petition on the taxpayer’s behalf if, at the time the petition is filed, such person provides a copy of the taxpayer’s written authorization to the board clerk with the petition or the taxpayer’s signed written authorization is contained on the petition form. This written authorization is valid only for representing a single taxpayer in a single assessment year and must identify the units, parcels, or accounts for which the person is authorized to represent the taxpayer. A taxpayer may use a Department of Revenue form to grant the authorization in writing or may use a different form provided it meets the requirements of Section 194.034(1), F.S. The Department has adopted Form DR-486A, Written Authorization for Representation Before the Value Adjustment Board, which is incorporated by reference in Rule 12D-16.002, F.A.C., as a form available to taxpayers for granting the written authorization.

(10)(a) If a taxpayer notifies the board that an unauthorized petition has been filed for the taxpayer’s property, the board may require the person who filed the petition to provide to the board, before a hearing is held on such petition, the taxpayer’s written authorization for the person to file the petition and represent the taxpayer.

(b) If the board finds that an employee or a professional listed in paragraph 12D-9.018(3)(a), F.A.C., knowingly and willfully filed a petition not authorized by the taxpayer, the board shall require such employee or professional to provide to the board clerk, before any petition filed by that employee or professional is heard, the taxpayer’s written authorization for the employee or professional to represent the taxpayer. This board requirement shall extend for one year after the board’s imposition of the requirement.

(11) If duplicate petitions are filed on the same property, the board clerk shall contact the taxpayer and all petitioners to identify whether a person has the taxpayer’s authorization to file a petition and represent the taxpayer, and resolve the issue in accordance with this rule chapter.

(12)(a) The board clerk shall accept for filing any completed petition that is timely submitted on a form approved by the department, with payment if required. If an incomplete petition is received, the board clerk shall notify the petitioner and give the petitioner an opportunity to complete the petition within 10 calendar days. Such completed petition shall be timely if completed and filed within the time frame provided in the board clerk’s notice.

(b) A “completed” petition is one that:

1. Provides information for all the required elements that are displayed on the department’s form;

2. Is accompanied by a power of attorney if required;

3. Is accompanied by written taxpayer authorization if required; and,

4. Is accompanied by the appropriate filing fee if required.

(c) In accepting a petition, the board clerk shall rely on the licensure information provided by a licensed professional representative, the power of attorney provided by an authorized, compensated person, or the written taxpayer authorization provided by an authorized, uncompensated person.

(13) Timely Filing of Petitions. Petitions related to valuation issues may be filed, and must be accepted by the board clerk, at any time during the taxable year on or before the 25th day following the mailing of the notice of proposed property taxes. Other petitions may be filed as follows:

(a) With respect to issues involving the denial of an exemption on or before the 30th day following the mailing of the written notification of the denial of the exemption on or before July 1 of the year for which the application was filed;

(b) With respect to issues involving the denial of an agricultural classification application, on or before the 30th day following the mailing of the notification in writing of the denial of the agricultural classification on or before July 1 of the year for which the application was filed;

(c) With respect to issues involving the denial of a high-water recharge classification application on or before the 30th day following the mailing of the notification in writing of the denial of the high-water recharge classification on or before July 1 of the year for which the application was filed;

(d) With respect to issues involving the denial of a historic property used for commercial or certain nonprofit purposes classification application, on or before the 30th day following the mailing of the notification in writing of the denial of the classification on or before July 1 of the year for which the application was filed;

(e) With respect to issues involving the denial of a tax deferral, on or before the 30th day following the mailing of the notification in writing of the denial of the deferral application;

(f) With respect to exemption or classification claims relating to an exemption or classification that is not reflected on the notice of property taxes, including late filed exemption claims, on or before the 25th day following the mailing of the notice of proposed property taxes, or on or before the 30th day following the mailing of the written notification of the denial of the exemption or classification, whichever date is later; and,

(g) With respect to penalties imposed for filing incorrect information relating to tax deferrals for homestead, for recreational and commercial working waterfronts or for affordable rental housing properties, within 30 days after the penalties are imposed.

(14) Late Filed Petitions.

(a) The board may not extend the time for filing a petition. The board is not authorized to set and publish a deadline for late filed petitions. However, the failure to meet the statutory deadline for filing a petition to the board does not prevent consideration of such a petition by the board or special magistrate when the board or board designee determines that the petitioner has demonstrated good cause justifying consideration and that the delay will not, in fact, be harmful to the performance of board functions in the taxing process. “Good cause” means the verifiable showing of extraordinary circumstances, as follows:

1. Personal, family, or business crisis or emergency at a critical time or for an extended period of time that would cause a reasonable person’s attention to be diverted from filing, or

2. Physical or mental illness, infirmity, or disability that would reasonably affect the petitioner’s ability to timely file, or

3. Miscommunication with, or misinformation received from, the board clerk, property appraiser, or their staff regarding the necessity or the proper procedure for filing that would cause a reasonable person’s attention to be diverted from timely filing, or

4. Any other cause beyond the control of the petitioner that would prevent a reasonably prudent petitioner from timely filing.

(b) The board clerk shall accept but not schedule for hearing a petition submitted to the board after the statutory deadline has expired, and shall submit the petition to the board or board designee for good cause consideration if the petition is accompanied by a written explanation for the delay in filing. Unless scheduled together or by the same notice, the decision regarding good cause for late filing of the petition must be made before a hearing is scheduled, and the parties shall be notified of such decision.

(c) The board clerk shall forward a copy of completed but untimely filed petitions to the property appraiser or tax collector at the time they are received or upon the determination of good cause.

(d) The board is authorized to, but need not, require good cause hearings before good cause determinations are made. The board or a board designee, which includes the board legal counsel or a special magistrate, shall determine whether the petitioner has demonstrated, in writing, good cause justifying consideration of the petition. If the board or a board designee determines that the petitioner has demonstrated good cause, the board clerk shall accept the petition for filing and so notify the petitioner and the property appraiser or the tax collector.

(e) If the board or a board designee determines that the petitioner has not demonstrated good cause, or if the petition is not accompanied by a written explanation for the delay in filing, the board clerk shall notify the petitioner and the property appraiser or tax collector.

(f) A person who files a petition may timely file an action in circuit court to preserve the right to proceed in circuit court. (Sections 193.155(8)(l), 194.036, 194.171(2) and 196.151, F.S.).

(15) Acknowledgement of Timely Filed Petitions. The board clerk shall accept all completed petitions, as defined by statute and subsection (2), of this rule. Upon receipt of a completed and filed petition, the board clerk shall provide to the petitioner an acknowledgment of receipt of such petition and shall provide to the property appraiser or tax collector a copy of the petition.

(16) When the property appraiser receives the petition from the board clerk, regardless of whether the petitioner initiates the evidence exchange, the property appraiser shall provide to the petitioner a copy of the property record card containing information relevant to the computation of the current assessment, with confidential information redacted. The property appraiser shall provide such property record card to the petitioner either by sending it to the petitioner or by notifying the petitioner how to obtain it online.

(17) The board clerk shall send the notice of hearing such that it will be received by the petitioner no less than twenty-five (25) calendar days prior to the day of such scheduled appearance. The board clerk will have prima facie complied with the requirements of this section if the notice was deposited in the U.S. mail thirty (30) days prior to the day of such scheduled appearance.

(18) Copies of the forms incorporated in Rule 12D-16.002, F.A.C., may be obtained from the Department’s website floridarevenue.com/property/forms.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 193.155, 194.011, 194.013, 194.032, 194.034, 194.036, 195.022, 196.151, 197.2425 FS. History–New 3-30-10, Amended 11-1-12, 6-14-16, 3-13-17, 9-19-17, 6-13-22, Technical Change 9-15-25.

Fla. Admin. Code R. 12D-9.016 Filing and Service

(1) In construing these rules or any order of the board, special magistrate, or a board designee, filing shall mean received by the board clerk during open hours or by the board, special magistrate, or a board designee during a meeting or hearing.

(2)(a) Any hand-delivered or mailed document received by the office of the board clerk after close of business as determined by the board clerk shall be filed the next regular business day.

(b) If the board clerk accepts documents filed by FAX or other electronic transmission, documents received on or after 11:59:59 p.m. of the day they are due shall be filed the next regular business day.

(c) Any document that is required to be filed, served, provided or made available may be filed, served, provided or made available electronically, if the board and the board clerk make such resources available, and no party is prejudiced.

(d) Local procedure may supersede provisions regarding the number of copies that must be provided.

(3) When a party files a document with the board, other than the petition, that party shall serve copies of the document to all parties in the proceeding. When a document is filed that does not clearly indicate it has been provided to the other party, the board clerk, board legal counsel, board members and special magistrates shall inform the party of the requirement to provide to every party or shall exercise care to ensure that a copy is provided to every party, and that no ex parte communication occurs.

(4) Any party who elects to file any document by FAX or other electronic transmission shall be responsible for any delay, disruption, or interruption of the electronic signals and accepts the full risk that the document may not be properly filed with the board clerk as a result.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.013, 194.015, 194.032, 194.034, 194.035, 195.022, 195.084 FS. History–New 3-30-10, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.017 Ex Parte Communication Prohibition

(1)(a) No participant, including the petitioner, the property appraiser, the board clerk, the special magistrate, a member of a value adjustment board, or other person directly or indirectly interested in the proceeding, nor anyone authorized to act on behalf of any party shall communicate with a member of the board or the special magistrate regarding the issues in the case without the other party being present or without providing a copy of any written communication to the other party.

(b) This rule shall not prohibit internal communications among the board clerk, board, special magistrates, and board legal counsel, regarding internal operations of the board and other administrative matters. The special magistrate is specifically authorized to communicate with the board’s legal counsel or board clerk on legal matters or other issues regarding a petition.

(2) Any attempt by the property appraiser, tax collector, taxpayer or taxpayer’s representative to provide information or discuss issues regarding a petition without the presence of the opposing party before or after the hearing, with a member of the board or the special magistrate shall be immediately placed on the record by the board member or special magistrate.

(3) The ex parte communication shall not be considered by the board or the special magistrate unless all parties have been notified about the ex parte communication, and no party objects, and all parties have an opportunity during the hearing to cross-examine, object, or otherwise address the communication.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.015, 194.032, 194.034, 194.035 FS. History–New 3-30-10, Amended 9-19-17, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.018 Representation of the Taxpayer

(1) A taxpayer has the right, at the taxpayer’s own expense, to be represented before the board by a person described in subsection (3), below. The taxpayer’s representative may present testimony and other evidence in support of the petition.

(2) The authorized individual, agent, or legal entity that signs the petition becomes the agent of the taxpayer for the purpose of serving process to obtain jurisdiction over the taxpayer for the entire value adjustment board proceedings, including any appeals of a board decision by the property appraiser or tax collector. However, this does not authorize the individual, agent, or legal entity to receive or access the taxpayer’s confidential information without written authorization from the taxpayer.

(3) Subject to the petition filing requirements set forth in this rule chapter, a taxpayer may be represented before the board by one of the persons described in this subsection.

(a)1. An employee of the taxpayer or of an affiliated entity may represent the taxpayer.

2. One of the following professionals may represent the taxpayer:

a. An attorney who is a member of the Florida Bar,

b. A real estate appraiser licensed or certified under Chapter 475, Part II, F.S.,

c. A real estate broker licensed under Chapter 475, Part I, F.S., or

d. A certified public accountant licensed under Chapter 473, F.S.

3. If the taxpayer has authorized an employee or professional, listed in this subsection, to file a petition and represent the taxpayer and the employee or professional certifies under penalty of perjury that he or she has the taxpayer’s authorization to file the petition on the taxpayer’s behalf and represent the taxpayer, the employee or professional may file a petition that is not signed by the taxpayer and that is not accompanied by the taxpayer’s written authorization.

(b) A person who provides to the board clerk at the time the petition is filed a power of attorney authorizing such person to act on the taxpayer’s behalf, may represent the taxpayer. The power of attorney is valid only for representing a single taxpayer in a single assessment year, and must identify the parcels or accounts for which the person is authorized to represent the taxpayer and must conform to the requirements of Chapter 709, Part II, F.S. A taxpayer may use a Department of Revenue form to grant the power of attorney or may use a different form, provided it meets the requirements of Chapter 709, Part II, and Section 194.034(1), F.S. The Department has adopted Form DR-486POA, titled Power of Attorney for Representation Before the Value Adjustment Board, which is incorporated by reference in Rule 12D-16.002, F.A.C., as a form available to taxpayers for granting the power of attorney.

(c) An uncompensated person who provides to the board clerk at the time the petition is filed, the taxpayer’s written authorization for such person to act on the taxpayer’s behalf, may represent the taxpayer. This written authorization is valid only for representing a single taxpayer in a single assessment year and must identify the parcels or accounts for which the person is authorized to represent the taxpayer. A taxpayer may use a Department of Revenue form to grant the authorization in writing or may use a different form provided it meets the requirements of Section 194.034(1), F.S. The Department has adopted Form DR-486A, titled Written Authorization for Representation Before the Value Adjustment Board, which is incorporated by reference in Rule 12D-16.002, F.A.C., as a form available to taxpayers for granting the written authorization.

(4) The board clerk may require the use of an agent or representative number to facilitate scheduling of hearings as long as such use is not inconsistent with this rule chapter.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.013, 194.032, 194.034, 195.022 FS. History–New 3-30-10, Amended 9-19-17, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.019 Scheduling and Notice of a Hearing

(1)(a) The board clerk shall prepare a schedule of appearances before the board or special magistrates based on timely filed petitions, and shall notify each petitioner of the scheduled time of appearance. The board clerk shall simultaneously notify the property appraiser or tax collector. The board clerk may electronically send this notification to the petitioner, if the petitioner indicates on his or her petition this means of communication for receiving notices, materials, and communications.

(b) When scheduling hearings, the board clerk shall consider:

1. The anticipated amount of time if indicated on the petition,

2. The experience of the petitioner,

3. The complexity of the issues or the evidence to be presented,

4. The number of petitions/parcels to be heard at a single hearing,

5. The efficiency or difficulty for the petitioner of grouping multiple hearings for a single petitioner on the same day; and,

6. The likelihood of withdrawals, cancellations of hearings or failure to appear.

(c) Upon request of a party, the board clerk shall consult with the petitioner and the property appraiser or tax collector to ensure that, within the board clerk’s judgment, an adequate amount of time is provided for presenting and considering evidence.

(d) In scheduling hearings before specific special magistrates, the board, board attorney, and board clerk shall not consider any assessment reductions recommended by any special magistrate in the current year or in any previous year.

(e) In those counties that use special magistrates, after an attorney special magistrate has produced a recommended decision on a determination that a change of ownership under Section 193.155(3), F.S., a change of ownership or control under Section 193.1554(5) or 193.1555(5), F.S., or a qualifying improvement under Section 193.1555(5), F.S., has occurred, the petition shall be scheduled for a hearing before a real property valuation special magistrate for an administrative review of the value(s), unless the petitioner waives administrative review of the value. The clerk must notify the petitioner and property appraiser of the scheduled time in the manner described in this rule. This hearing is subject to the single time reschedule for good cause as provided in this rule. In counties that do not use special magistrates the board may proceed directly to a valuation hearing where properly noticed as provided in this rule.

(2) No hearing shall be scheduled related to valuation issues prior to completion by the governing body of each taxing authority of the public hearing on the tentative budget and proposed millage rate.

(3)(a) The notice of hearing before the value adjustment board shall be in writing, and shall be delivered by regular or certified U.S. mail or personal delivery, or in the manner requested by the petitioner on Form DR-486, so that the notice shall be received by the petitioner no less than twenty-five (25) calendar days prior to the day of such scheduled appearance. The Form DR-486 series is adopted and incorporated by reference in Rule 12D-16.002, F.A.C. The notice of hearing form shall meet the requirements of this section and shall be subject to approval by the department. The department provides Form DR-481 as a format for the form of such notice. Form DR-481, Value Adjustment Board – Notice of Hearing, is adopted and incorporated by reference in Rule 12D-16.002, F.A.C.

(b) The notice shall include these elements:

1. The parcel number, account number or legal address of all properties being heard at the scheduled hearing;

2. The type of hearing scheduled;

3. The date and time of the scheduled hearing, however, if the petition has been scheduled to be heard within a block of time, the beginning and ending of that block of time shall be indicated on the notice;

4. The time reserved, or instructions on how to obtain this information;

5. The location of the hearing, including the hearing room number if known, together with board clerk contact information including office address and telephone number, for petitioners to request assistance in finding hearing rooms;

6. Instructions on how to obtain a list of the potential special magistrates for the type of petition in question;

7. A statement of the petitioner’s right to participate in the exchange of evidence with the property appraiser;

8. A statement that the petitioner has the right to reschedule the hearing a single time for good cause as defined in Section 194.032(2)(a), F.S.;

9. A statement that Section 194.032(2)(a), F.S., defines “good cause” as circumstances beyond the control of the person seeking to reschedule the hearing which reasonably prevent the party from having adequate representation at the hearing;

10. Instructions on bringing copies of evidence;

11. Any information necessary to comply with federal or state disability or accessibility acts; and,

12. Information regarding where the petitioner may obtain a copy of the uniform rules of procedure.

(4) Each party may reschedule the hearing a single time for good cause by submitting a written request to the board clerk before the scheduled appearance or as soon as practicable. As used in this subsection, the term “good cause” is defined in Section 194.032(2)(a), F.S.

(a) The board clerk shall ascertain if the opposing party has been furnished a copy of the request, and if not, shall furnish the request to the opposing party. The board clerk shall promptly forward the reschedule request to the board or a board designee to make a determination as to good cause; for this determination, the board designee includes the board clerk, board legal counsel or a special magistrate.

(b) The board or board designee shall grant the hearing reschedule for any request that qualifies under Section 194.032(2)(a), F.S. The board or board designee may act upon the request based on its face and whether it meets the provisions for good cause on its face.

(c) If the board or a board designee determines that the request does not show good cause, the request will be denied and the board may proceed with the hearing as scheduled.

(d) If the board or a board designee determines that the request demonstrates good cause, the request will be granted.

(e) Requests to reschedule shall be processed without delay and the processing shall be accelerated where necessary to ensure, if possible, that the parties are provided notice of the determination before the original hearing time.

(f) The board clerk shall give prompt notice to the parties of the determination as to good cause. Form DR-485WCN, Value Adjustment Board – Clerk’s Notice, is designated and may be used for this purpose. Form DR-485WCN is adopted and incorporated by reference in Rule 12D-16.002, F.A.C.

(g) If good cause is found, the clerk shall give immediate notice of cancellation of the hearing and shall proceed as provided in paragraph (h).

(h) The clerk must receive any notice of conflict dates submitted by a party before notice of a rescheduled hearing is sent to both parties or before expiration of any period allowed by the clerk or board to both parties for such submittal.

(i) The clerk must reschedule considering conflict dates received and should accommodate a notice of conflict dates when any associated delay will not be prejudicial to the board’s performance of its functions in the taxing process.

(j) The board clerk is responsible for notifying the parties of any rescheduling and will issue a notice of hearing with the new hearing date which shall, if possible, be the earliest date that is convenient for all parties.

(k) When rescheduling hearings under this rule, if the parties are unable to agree on an earlier date, the board clerk is authorized to schedule the hearing and send a notice of such hearing by regular or certified U.S. mail or personal delivery, or in the manner requested by the petitioner on the petition Form DR-486, so that the notice shall be received by the petitioner no less than fifteen (15) calendar days prior to the day of such scheduled appearance, unless this notice is waived by both parties.

(l) The clerk is authorized to inquire if a party wants their evidence considered in the event of their absence from the hearing.

(m) The clerk is authorized to ask the parties if they will waive the 15 days’ notice for rescheduled hearings; however, the parties are not required to do so.

(n) A party must not assume the request to reschedule has been granted until notified by the clerk.

(5) If a hearing is rescheduled by a party, the board clerk must notify the petitioner of the rescheduled time in the manner referenced in subsection (3), so that the notice shall be received no less than fifteen (15) calendar days prior to the day of such rescheduled appearance, unless this notice is waived by both parties.

(6) If a hearing is rescheduled, the deadlines for the exchange of evidence shall be computed from the new hearing date, if time permits.

(7)(a) If a petitioner’s hearing does not commence as scheduled, the board clerk is authorized to reschedule the hearing.

(b) In no event shall a petitioner be required to wait more than a reasonable time after the scheduled time to be heard or, if the petition has been scheduled to be heard within a block of time, after the beginning of the block of time. The board clerk is authorized to find that a reasonable time has elapsed based on other commitments, appointments or hearings of the petitioner, lateness in the day, and other hearings waiting to be heard earlier than the petitioner’s hearing with the board or special magistrate. If his or her petition has not been heard within a reasonable time, the petitioner may request to be heard immediately. If the board clerk finds a reasonable time has elapsed and petitioner is not heard, the board clerk shall reschedule the petitioner’s hearing. A reasonable time must not exceed two hours. After two hours, the petitioner has the right to inform the board chairperson, or the clerk as board designee, that he or she intends to leave. If the petitioner chooses to leave, the petitioner must first inform the board chairperson or clerk that he or she intends to leave. The clerk must not list the petitioner as a no show. If the hearing does not commence within two hours and the petitioner leaves, the clerk must reschedule the hearing.

(c) A rescheduling under this subsection is not a request by a party to reschedule as provided in subsection (4).

(d) A petitioner is not required to wait any length of time as a prerequisite to filing an action in circuit court.

(8) Copies of the forms incorporated in Rule 12D-16.002, F.A.C., may be obtained from the Department’s website floridarevenue.com/property/forms.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1), 213.06(1) FS. Law Implemented 194.011, 194.015, 194.032, 194.034, 195.022 FS. History–New 3-30-10, Amended 9-26-11, 6-14-16, 7-1-16, 3-13-17, 9-19-17.

Fla. Admin. Code R. 12D-9.020 Exchange of Evidence

(1)(a)1. At least 15 days before a petition hearing, the petitioner shall provide to the property appraiser a list of evidence to be presented at the hearing, a summary of evidence to be presented by witnesses, and copies of all documentation to be presented at the hearing.

2. To calculate the fifteen (15) days, the petitioner shall use calendar days and shall not include the day of the hearing in the calculation, and shall count backwards from the day of the hearing. The last day of the period shall be included unless it is a Saturday, Sunday, or legal holiday, in which event the period shall run until the end of the next previous day that is neither a Saturday, Sunday, or legal holiday.

(b) A petitioner’s noncompliance with paragraph (1)(a), does not affect the petitioner’s right to receive a copy of the current property record card from the property appraiser as described in Section 194.032(2)(a), F.S.

(c ) A petitioner’s noncompliance with paragraph (1)(a), does not authorize a value adjustment board or special magistrate to exclude the petitioner’s evidence. However, under Section 194.034(1)(h), F.S., if the property appraiser asks in writing for specific evidence before the hearing in connection with a filed petition, and the petitioner has this evidence and knowingly refuses to provide it to the property appraiser a reasonable time before the hearing, the evidence cannot be presented by the petitioner or accepted for consideration by the board or special magistrate. Reasonableness shall be determined by whether the material can be reviewed, investigated, and responded to or rebutted in the time frame remaining before the hearing. These requirements are more specifically described in subsection (8), of this rule, and in paragraphs 12D-9.025(4)(a) and (f), F.A.C.

(2)(a) If the property appraiser receives the petitioner’s documentation as described in paragraph (1)(a), and if requested in writing by the petitioner, the property appraiser shall, no later than seven (7) days before the hearing, provide to the petitioner a list of evidence to be presented at the hearing, a summary of evidence to be presented by witnesses, and copies of all documentation to be presented by the property appraiser at the hearing. The evidence list must contain the current property record card. There is no specific form or format required for the petitioner’s written request.

(b) To calculate the seven (7) days, the property appraiser shall use calendar days and shall not include the day of the hearing in the calculation, and shall count backwards from the day of the hearing. The last day of the period so computed shall be included unless it is a Saturday, Sunday, or legal holiday, in which event the period shall run until the end of the next previous day which is neither a Saturday, Sunday, or legal holiday.

(3)(a) If the petitioner does not provide the information to the property appraiser described in paragraph (1)(a), the property appraiser need not provide the information to the petitioner as described in subsection (2).

(b) If the property appraiser does not provide the information to the petitioner within the time required by paragraph (2)(b), the hearing shall be rescheduled to allow the petitioner additional time to review the property appraiser’s evidence.

(4) By agreement of the parties the evidence exchanged under this rule section shall be delivered by regular or certified U.S. mail, personal delivery, overnight mail, FAX or email. The petitioner and property appraiser may agree to a different timing and method of exchange. “Provided” means received by the party not later than the time frame provided in this rule section. If either party does not designate a desired manner for receiving information in the evidence exchange, the information shall be provided by U.S. mail. The property appraiser shall provide the information at the address listed on the petition form for the petitioner.

(5) Level of detail on evidence summaries: The summaries of evidence to be presented by witnesses for the petitioner and the property appraiser under this rule section shall be sufficiently detailed as to reasonably inform a party of the general subject matter of the witness’ testimony, and the name and address of the witness.

(6) Hearing procedures: Neither the board nor the special magistrate shall take any general action regarding compliance with this section, but any action on each petition shall be considered on a case by case basis. Any action shall be based on a consideration of whether there has been a substantial noncompliance with this section, and shall be taken at a scheduled hearing and based on evidence presented at such hearing. “General action” means a prearranged course of conduct not based on evidence received in a specific case at a scheduled hearing on a petition.

(7) A property appraiser shall not use at a hearing evidence that was not supplied to the petitioner as required. The remedy for such noncompliance shall be a rescheduling of the hearing to allow the petitioner an opportunity to review the information of the property appraiser.

(8) No petitioner may present for consideration, nor may a board or special magistrate accept for consideration, testimony or other evidentiary materials that were specifically requested of the petitioner in writing by the property appraiser in connection with a filed petition, of which the petitioner had knowledge and denied to the property appraiser. Such evidentiary materials shall be considered timely if provided to the property appraiser no later than fifteen (15) days before the hearing in accordance with the exchange of evidence rules in this section. If provided to the property appraiser less than fifteen (15) days before the hearing, such materials shall be considered timely if the board or special magistrate determines they were provided a reasonable time before the hearing, as described in paragraph 12D-9.025(4)(f), F.A.C. A petitioner’s ability to introduce the evidence, requested of the petitioner in writing by the property appraiser, is lost if not provided to the property appraiser as described in this paragraph. This provision does not preclude rebuttal evidence that was not specifically requested of the petitioner by the property appraiser.

(9) As the trier of fact, the board or special magistrate may independently rule on the admissibility and use of evidence. If the board or special magistrate has any questions relating to the admissibility and use of evidence, the board or special magistrate should consult with the board legal counsel. The basis for any ruling on admissibility of evidence must be reflected in the record.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1), 213.06(1) FS. Law Implemented 194.011, 194.015, 194.032, 194.034, 194.035, 195.022 FS. History–New 3-30-10, Amended 6-14-16, 4-10-18.

Fla. Admin. Code R. 12D-9.021 Withdrawn or Settled Petitions; Petitions Acknowledged as Correct; Non-Appearance; Summary Disposition of Petitions

(1) A petitioner may withdraw a petition prior to the scheduled hearing. Form DR-485WI is prescribed by the department for such purpose; however, other written or electronic means may be used. Form DR-485WI is adopted and incorporated by reference in Rule 12D-16.002, F.A.C. Form DR-485WI shall indicate the reason for the withdrawal as one of the following:

(a) Petitioner agrees with the determination of the property appraiser or tax collector;

(b) Petitioner and property appraiser or tax collector have reached a settlement of the issues;

(c) Petitioner does not agree with the decision or assessment of the property appraiser or tax collector but no longer wishes to pursue a remedy through the value adjustment board process; or

(d) Other specified reason.

(2) The board clerk shall cancel the hearing upon receiving a notice of withdrawal from the petitioner and there shall be no further proceeding on the matter.

(3) If a property appraiser or tax collector agrees with a petition challenging a decision to deny an exemption, classification, portability assessment difference transfer, or deferral, the property appraiser or tax collector shall issue the petitioner a notice granting said exemption, classification, portability assessment difference transfer, or deferral and shall file with the board clerk a notice that the petition was acknowledged as correct. The board clerk shall cancel the hearing upon receiving the notice of acknowledgement and there shall be no further proceeding on the matter acknowledged as correct.

(4) If parties do not file a notice of withdrawal or notice of acknowledgement but indicate the same at the hearing, the board or special magistrate shall so state on the hearing record and shall not proceed with the hearing and shall not issue a decision. If a petition is withdrawn or acknowledged as correct under subsection (1), (2) or (3), or settlement is reached and filed by the parties, at any time before a recommended decision or final board decision is issued, the board, special magistrate or clerk need not issue such decision. The board clerk shall list and report all withdrawals, settlements, acknowledgements of correctness as withdrawn or settled petitions. Settled petitions shall include those acknowledged as correct by the property appraiser or tax collector.

(5) For all withdrawn or settled petitions, a special magistrate shall not produce a recommended decision and the board shall not produce a final decision.

(6) When a petitioner does not appear by the commencement of a scheduled hearing and the petitioner has not indicated a desire to have their petition heard without their attendance and a good cause request is not pending, the board or the special magistrate shall not commence or proceed with the hearing and shall produce a decision or recommended decision as described in this section. If the petitioner makes a good cause request before the decision, if no special magistrate is used, or recommended decision, if a special magistrate is used, is issued, the board or board designee shall rule on the good cause request before determining that the decision or recommended decision should be set aside and that the hearing should be rescheduled, or that the board or special magistrate should issue the decision or recommended decision.

(7) When a petitioner does not appear by the commencement of a scheduled hearing and a good cause request is pending, the board or board designee shall rule on the good cause request before determining that the hearing should be rescheduled or that the board or special magistrate should issue a decision or recommended decision.

(a) If the board or board designee finds good cause for the petitioner’s failure to appear, the board clerk shall reschedule the hearing.

(b) If the board or board designee does not find good cause for the petitioner’s failure to appear, the board or special magistrate shall issue a decision or recommended decision.

(8) Decisions issued under subsection (6) or (7) shall not be treated as withdrawn or settled petitions and shall contain:

(a) A finding of fact that the petitioner did not appear at the hearing and did not state good cause; and,

(b) A conclusion of law that the relief is denied and the decision is being issued in order that any right the petitioner may have to bring an action in circuit court is not impaired.

(9) Copies of the forms incorporated in Rule 12D-16.002, F.A.C., may be obtained from the Department’s website floridarevenue.com/property/forms.

History

• Rulemaking Authority 194.011(5), 194.034(1), 194.034, 195.027(1) FS. Law Implemented 193.155, 194.011, 194.032, 194.037 FS. History–New 3-30-10.

Fla. Admin. Code R. 12D-9.022 Disqualification or Recusal of Special Magistrates or Board Members

(1) If either the petitioner or the property appraiser communicates a reasonable belief that a special magistrate does not possess the statutory qualifications in accordance with Sections 194.035 and 475.611(1)(h) and (i), F.S., to conduct a particular proceeding, the basis for that belief shall be included in the record of the proceeding or submitted prior to the hearing in writing to the board legal counsel.

(2)(a) Upon review, if the board or its legal counsel determines that the original special magistrate does not meet the statutory requirements and qualifications, the board or legal counsel shall enter into the record an instruction to the board clerk to reschedule the petition before a different special magistrate to hear or rehear the petition without considering actions that may have occurred during any previous hearing.

(b) Upon review, if the board or its legal counsel determines that the special magistrate does meet the statutory requirements and qualifications, such determination shall be issued in writing and placed in the record, and the special magistrate will conduct the hearing, or, if a hearing was already held, the recommended decision will be forwarded to the board in accordance with these rules.

(3) Board members and special magistrates shall recuse themselves from hearing a petition when they have a conflict of interest or an appearance of a conflict of interest.

(4)(a) If either the petitioner or the property appraiser communicates a reasonable belief that a board member or special magistrate has a bias, prejudice or conflict of interest, the basis for that belief shall be stated in the record of the proceeding or submitted prior to the hearing in writing to the board legal counsel.

(b) If the board member or special magistrate agrees with the basis stated in the record, the board member or special magistrate shall recuse himself or herself on the record. A special magistrate who recuses himself or herself shall close the hearing on the record and notify the board clerk of the recusal. Upon a board member’s recusal, the hearing shall go forward if there is a quorum. Upon a special magistrate’s recusal, or a board member’s recusal that results in a quorum not being present, the board clerk shall reschedule the hearing.

(c) If the board member or special magistrate questions the need for recusal, the board member or special magistrate shall request an immediate determination on the matter from the board’s legal counsel.

(d) Upon review, if the board legal counsel:

1. Determines that a recusal is necessary, the board member or special magistrate shall recuse himself or herself and the board clerk shall reschedule the hearing, or

2. Is uncertain whether recusal is necessary, the board member or special magistrate shall recuse himself or herself and the board clerk shall reschedule the hearing, or

3. Determines the recusal is unnecessary, the board legal counsel shall set forth the basis upon which the request was not based on sufficient facts or reasons.

(e) In a rescheduled hearing, the board or special magistrate shall not consider any actions that may have occurred during any previous hearing on the same petition.

(5) A rescheduling for disqualification or recusal shall not be treated as the one time rescheduling to which a petitioner has a right upon timely request under Section 194.032(2), F.S.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.032, 194.034, 194.035 FS. History–New 3-30-10, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.023 Hearings Before Board or Special Magistrates

(1) Hearing rooms, office space, computer systems, personnel, and other resources used for any of the board’s functions shall be controlled by the board through the board clerk of the value adjustment board. The board clerk shall perform his or her duties in a manner to avoid the appearance of a conflict of interest. The board clerk shall not use the resources of the property appraiser’s or tax collector’s office and shall not allow the property appraiser or tax collector to control or influence any part of the value adjustment board process.

(2) Boards and special magistrates shall adhere as closely as possible to the schedule of hearings established by the board clerk but must ensure that adequate time is allowed for parties to present evidence and for the board or special magistrate to consider the admitted evidence. If the board or special magistrate determines from the petition form that the hearing has been scheduled for less time than the petitioner requested on the petition, the board or special magistrate must consider whether the hearing should be extended or continued to provide additional time.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.032, 194.034, 195.022, 195.084 FS. History–New 3-30-10, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.024 Procedures for Commencement of a Hearing

(1) If all parties are present and the petition is not withdrawn or settled, a hearing on the petition shall commence.

(2) The hearing shall be open to the public.

(3) Upon the request of either party, a special magistrate shall swear in all witnesses in that proceeding on the record. Upon such request and if the witness has been sworn in during an earlier hearing, it shall be sufficient for the special magistrate to remind the witness that he or she is still under oath.

(4) Before or at the start of the hearing, the board, the board’s designee or the special magistrate shall give a short overview verbally or in writing of the rules of procedure and any administrative issues necessary to conduct the hearing.

(5) Before or at the start of the hearing, unless waived by the parties, the board or special magistrate shall make an opening statement or provide a brochure or taxpayer information sheet that:

(a) States the board or special magistrate is an independent, impartial, and unbiased hearing body or officer, as applicable;

(b) States the board or special magistrate does not work for the property appraiser or tax collector, is independent of the property appraiser or tax collector, and is not influenced by the property appraiser or tax collector;

(c) States the hearing will be conducted in an orderly, fair, and unbiased manner;

(d) States that the law does not allow the board or special magistrate to review any evidence unless it is presented on the record at the hearing or presented upon agreement of the parties while the record is open; and,

(e) States that the law requires the board or special magistrate to evaluate the relevance and credibility of the evidence in deciding the results of the petition.

(6) The board or special magistrate shall ask the parties if they have any questions regarding the verbal or written overview of the procedures for the hearing.

(7) After the opening statement, and clarification of any questions with the parties, the board or special magistrate shall proceed with the hearing. The property appraiser shall indicate for the record his or her determination of just value, classified use value, tax exemption, property classification, or “portability” assessment difference, or deferral or penalties. Under subsection 194.301(1), F.S., in a hearing on just, classified use, or assessed value, the first issue to be considered is whether the property appraiser establishes a presumption of correctness for the assessment. The property appraiser shall present evidence on this issue first.

(8) If at any point in a hearing or proceeding the petitioner withdraws the petition or the parties agree to settlement, the petition becomes a withdrawn or settled petition and the hearing or proceeding shall end. The board or special magistrate shall state or note for the record that the petition is withdrawn or settled, shall not proceed with the hearing, shall not consider the petition, and shall not produce a decision or recommended decision.

(9)(a) If the petitioner does not appear by the commencement of a scheduled hearing, the board or special magistrate shall not commence the hearing and shall proceed under the requirements set forth in subsection 12D-9.021(6), F.A.C., unless:

1. The petition is on a “portability” assessment difference transfer in which the previous homestead is the subject of the petition and is located in a county other than the county where the new homestead is located. Requirements specific to hearings on such petitions are set forth in subsection 12D-9.028(6), F.A.C., or

2. The petitioner has indicated that he or she does not wish to appear at the hearing, but would like for the board or special magistrate to consider evidence submitted by the petitioner.

(b) A petitioner who has indicated that he or she does not wish to appear at the hearing, but would like for the board or special magistrate to consider his or her evidence, shall submit his or her evidence to the board clerk and property appraiser before the hearing. The board clerk shall:

1. Keep the petitioner’s evidence as part of the petition file,

2. Notify the board or special magistrate before or at the hearing that the petitioner has indicated he or she will not appear at the hearing, but would like for the board or special magistrate to consider his or her evidence at the hearing, and

3. Give the evidence to the board or special magistrate at the beginning of the hearing.

(10) If the property appraiser or tax collector does not appear by the commencement of a scheduled hearing, except a good cause hearing, the board or special magistrate shall state on the record that the property appraiser or tax collector did not appear at the hearing. Then, the board or special magistrate shall request the petitioner to state for the record whether he or she wants to have the hearing rescheduled or wants to proceed with the hearing without the property appraiser or tax collector. If the petitioner elects to have the hearing rescheduled, the board clerk shall reschedule the hearing. If the petitioner elects to proceed with the hearing without the property appraiser or tax collector, the board or special magistrate shall proceed with the hearing and shall produce a decision or recommended decision.

(11) In any hearing conducted without one of the parties present, the board or special magistrate must take into consideration the inability of the opposing party to cross-examine the non-appearing party in determining the sufficiency of the evidence of the non-appearing party.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.032, 194.034, 195.022, 195.084 FS. History–New 3-30-10, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.025 Procedures for Conducting a Hearing; Presentation of Evidence; Testimony of Witnesses

(1) As part of administrative reviews, the board or special magistrate must:

(a) Review the evidence presented by the parties;

(b) Determine whether the evidence presented is admissible;

(c) Admit the evidence that is admissible, and identify the evidence presented to indicate that it is admitted or not admitted; and,

(d) Consider the admitted evidence.

(2)(a) In these rules, the term “admitted evidence” means evidence that has been admitted into the record for consideration by the board or special magistrate. Board and special magistrate proceedings are not controlled by strict rules of evidence and procedure. Formal rules of evidence shall not apply, but fundamental due process shall be observed and shall govern the proceedings.

(b) For administrative reviews, “relevant evidence” is evidence that is reasonably related, directly or indirectly, to the statutory criteria that apply to the issue under review. This description means the evidence meets or exceeds a minimum level of relevance necessary to be admitted for consideration, but does not necessarily mean that the evidence has sufficient relevance to legally justify a particular conclusion.

(c) Rebuttal evidence is relevant evidence used solely to disprove or contradict the original evidence presented by an opposing party.

(d) As the trier of fact, the board or special magistrate may independently rule on the admissibility and use of evidence. If the board or special magistrate has any questions relating to the admissibility and use of evidence, the board or special magistrate should consult with the board legal counsel. The basis for any ruling on admissibility of evidence must be reflected in the record. The special magistrate may delay ruling on the question during the hearing and consult with board legal counsel after the hearing.

(3)(a) In a board or special magistrate hearing, the petitioner is responsible for presenting relevant and credible evidence in support of his or her belief that the property appraiser’s determination is incorrect. The property appraiser is responsible for presenting relevant and credible evidence in support of his or her determination.

(b) Under Section 194.301, F.S., “preponderance of the evidence” is the standard of proof that applies in assessment challenges. The “clear and convincing evidence” standard of proof no longer applies, starting with 2009 assessments. A taxpayer shall never have the burden of proving that the property appraiser’s assessment is not supported by any reasonable hypothesis of a legal assessment.

(4)(a) No evidence shall be considered by the board or special magistrate except when presented and admitted during the time scheduled for the petitioner’s hearing, or at a time when the petitioner has been given reasonable notice.

(b) If a party submits evidence to the board clerk prior to the hearing, the board or special magistrate shall not review or consider such evidence prior to the hearing.

(c) In a hearing other than a remote hearing under Rule 12D-9.026, F.A.C., in order to be reviewed by the board or special magistrate, copies of any evidence filed with the board clerk shall be brought to the hearing by the party. This requirement shall not apply where:

1. A petitioner does not appear at a hearing on a “portability” assessment difference transfer petition in which the previous homestead is the subject of the petition and is located in a county other than the county where the new homestead is located. Requirements specific to hearings on such petitions are set forth in subsection 12D-9.028(6), F.A.C., or

2. A petitioner has indicated that he or she does not wish to appear at the hearing but would like for the board or special magistrate to consider evidence submitted by the petitioner.

(d) A petitioner who has indicated that he or she does not wish to appear at the hearing, but would like for the board or special magistrate to consider his or her evidence, shall submit his or her evidence to the board clerk before the hearing. The board clerk shall:

1. Keep the petitioner’s evidence as part of the petition file,

2. Notify the board or special magistrate before or at the hearing that the petitioner has indicated he or she will not appear at the hearing, but would like for the board or special magistrate to consider his or her evidence at the hearing; and,

3. Give the evidence to the board or special magistrate at the beginning of the hearing.

(e) The board clerk may provide an electronic system for the filing and retrieval of evidence for the convenience of the parties, but such evidence shall not be considered part of the record and shall not be reviewed by the board or special magistrate until presented at a hearing. Any exchange of evidence should occur between the parties and such evidence is not part of the record until presented by the offering party and deemed admissible at the hearing.

(f)1. No petitioner shall present for consideration, nor shall the board or special magistrate accept for consideration, testimony or other evidentiary materials that were specifically requested of the petitioner in writing by the property appraiser in connection with a filed petition, of which the petitioner had knowledge and denied to the property appraiser. If the property appraiser asks in writing for specific evidence before the hearing in connection with a filed petition, and the petitioner has this evidence and refuses to provide it to the property appraiser, the evidence cannot be presented by the petitioner or accepted for consideration by the board or special magistrate.

2. Such evidentiary materials shall be considered timely if provided to the property appraiser no later than fifteen (15) days before the hearing in accordance with the exchange of evidence rules in Rule 12D-9.020, F.A.C.

3. A petitioner’s ability to introduce the evidence, requested of the petitioner in writing by the property appraiser, is lost if not provided to the property appraiser as described in this paragraph.

4. This provision does not preclude rebuttal evidence that was not specifically requested of the petitioner by the property appraiser.

5. A property appraiser shall not present undisclosed evidence that was not supplied to the petitioner as required under the evidence exchange rule, Rule 12D-9.020, F.A.C. The remedy for such noncompliance shall be a rescheduling of the hearing to allow the petitioner an opportunity to review the information of the property appraiser.

(g) An appraisal report shall not be submitted as evidence in a value adjustment board proceeding in any tax year in which the person who performed the appraisal serves as a special magistrate to that county value adjustment board for the same tax year. Accordingly, in that tax year the board and any special magistrate in that county shall not admit such appraisal report into evidence and shall not consider any such appraisal report.

(5) When testimony is presented at a hearing, each party shall have the right to cross-examine any witness.

(6)(a) By agreement of the parties entered in the record, the board or special magistrate may leave the record open and postpone completion of the hearing to a date certain to allow a party to collect and provide additional relevant and credible evidence. Such postponements shall be limited to instances where, after completing original presentations of evidence, the parties agree to the collection and submittal of additional, specific factual evidence for consideration by the board or special magistrate. In lieu of completing the hearing, upon agreement of the parties the board or special magistrate is authorized to consider such evidence without further hearing.

(b) If additional hearing time is necessary, the hearing must be completed at the date, place, and time agreed upon for presenting the additional evidence to the board or special magistrate for consideration.

(c) In a petition to decrease the just value, the board or special magistrate may not revise the value above the property appraiser’s presented value. In a petition to decrease the just value, the following limitations shall apply if the property appraiser seeks to present additional evidence that was unexpectedly discovered and that would increase the assessment.

1. The board or special magistrate shall ensure that such additional evidence is limited to a correction of a factual error discovered in the physical attributes of the petitioned property; a change in the property appraiser’s judgment is not such a correction and shall not justify an increase in the assessment.

2. A notice of revised proposed assessment shall be made and provided to the petitioner in accordance with the notice provisions set out in Florida Statutes for notices of proposed property taxes.

3. Along with the notice of revised proposed assessment, the property appraiser shall provide to the petitioner a copy of the revised property record card containing information relevant to the computation of the revised proposed assessment, with confidential information redacted. The property appraiser shall provide such revised property record card to the petitioner either by sending it to the petitioner or by notifying the petitioner how to obtain it online.

4. A new hearing shall be scheduled and notice of the hearing shall be sent to the petitioner.

5. The evidence exchange procedures in Rule 12D-9.020, F.A.C., shall be available.

6. The back assessment procedure in Section 193.092, F.S., shall be used for any assessment already certified.

(d) In a petition to increase the just value, the property appraiser may provide an increased just value to the petitioner before the hearing or at the hearing. In such case, if the petitioner agrees with the property appraiser’s increased just value, the petitioner may settle or withdraw the petition. If the petitioner does not agree with the property appraiser’s increased just value, the hearing shall not be canceled on that ground. This provision applies only in petitions to increase the just value. In a petition to increase the just value, the board or special magistrate may not revise the value below the property appraiser’s presented value.

(7)(a) The board or special magistrate shall receive, identify for the record, and retain all exhibits presented during the hearing and send them to the board clerk along with the recommended decision or final decision. Upon agreement of the parties, the board clerk is authorized to make an electronic representation of evidence that is difficult to store or maintain.

(b) The board or special magistrate shall have the authority, at a hearing, to ask questions at any time of either party, the witnesses, or board staff. When asking questions, the board or special magistrate shall not show bias for or against any party or witness. The board or special magistrate shall limit the content of any question asked of a party or witness to matters reasonably related, directly or indirectly, to matters already in the record.

(c) Representatives of interested municipalities may be heard as provided in Section 193.116, F.S.

(8) Unless a board or special magistrate determines that additional time is necessary, the board or special magistrate shall conclude all hearings at the end of the time scheduled for the hearing. If a hearing is not concluded by the end of the time scheduled, the board or special magistrate shall determine the amount of additional time needed to conclude the hearing.

(a) If the board or special magistrate determines that the amount of additional time needed to conclude the hearing would not unreasonably disrupt other hearings, the board or special magistrate is authorized to proceed with conclusion of the hearing.

(b) If the board or special magistrate determines that the amount of additional time needed to conclude the hearing would unreasonably disrupt other hearings, the board or special magistrate shall so state on the record and shall notify the board clerk to reschedule the conclusion of the hearing to a time as scheduled and noticed by the board clerk.

(9) The board or special magistrate shall not be required to make, at any time during a hearing, any oral or written finding, conclusion, decision, or reason for decision. The board or special magistrate has the discretion to determine whether to make such determinations during a hearing or to consider the petition and evidence further after the hearing and then make such determinations.

(10) For purposes of reporting board action on decisions and on the notice of tax impact, the value as reflected on the initial roll shall mean the property appraiser’s determination as presented at the commencement of the hearing, or as reduced by the property appraiser during the hearing, or as increased by the property appraiser during the hearing as provided in subsection (6), but before a decision by the board or a recommended decision by the special magistrate. See Rule 12D-9.038, F.A.C.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 193.092, 194.011, 194.032, 194.034, 194.035 FS. History–New 3-30-10, Amended 6-14-16, 9-19-17, 8-17-21, 11-26-23, 8-27-26.

Fla. Admin. Code R. 12D-9.026 Procedures for Conducting a Hearing by Electronic Media

(1) Hearings conducted by electronic media shall occur only under the conditions set forth in this rule section.

(a) The board must approve and have available the necessary equipment and procedures.

(b) The special magistrate, if one is used, must agree in each case to the electronic hearing.

(c) The board must reasonably accommodate parties that have hardship or lack necessary equipment or ability to access equipment. The board must provide a physical location at which a party may appear, if requested.

(2) For any hearing conducted by electronic media, the board shall ensure that all equipment is adequate and functional for allowing clear communication among the participants and for creating the hearing records required by law. The board procedures shall specify the time period within which a party must request to appear at a hearing by electronic media.

(3) Consistent with board equipment and procedures:

(a) Any party may request to appear at a hearing before a board or special magistrate, using telephonic or other electronic media. If the board or special magistrate allows a party to appear by telephone, all members of the board in the hearing or the special magistrate must be physically present in the hearing room. Unless required by other provisions of state or federal law, the board clerk need not comply with such a request if such telephonic or electronic media are not reasonably available.

(b) The parties must also all agree on the methods for swearing witnesses, presenting evidence, and placing testimony on the record. Such methods must comply with the provisions of this rule chapter. The agreement of the parties must include which parties must appear by telephonic or other electronic media, and which parties will be present in the hearing room.

(4) Such hearings must be open to the public either by providing the ability for interested members of the public to join the hearing electronically or to monitor the hearing at the location of the board or special magistrate.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1), 213.06(1) FS. Law Implemented 194.011, 194.032, 194.034, 195.035, 195.022, 195.084 FS. History–New 3-30-10.

Fla. Admin. Code R. 12D-9.027 Process of Administrative Review

(1) This section sets forth the sequence of general procedural steps for administrative reviews. This order of steps applies to: the consideration of evidence, the development of conclusions, and the production of written decisions. The board or special magistrate shall follow this general sequence in order to fulfill the procedural requirements of Section 194.301, F.S. The following subsections set forth the steps for administrative reviews of:

(a) Just valuations in subsection (2);

(b) Classified use valuations, and assessed valuations of limited increase property, in subsection (3); and,

(c) Exemptions, classifications, and portability assessment transfers in subsection (4).

(2) In administrative reviews of the just valuation of property, the board or special magistrate shall follow this sequence of general procedural steps:

(a) Determine whether the property appraiser established a presumption of correctness for the assessment, and determine whether the property appraiser’s just valuation methodology is appropriate. The presumption of correctness is not established unless the admitted evidence proves by a preponderance of the evidence that the property appraiser’s just valuation methodology complies with Section 193.011, F.S., and professionally accepted appraisal practices, including mass appraisal standards, if appropriate.

(b)1. In administrative reviews of just valuations, if the property appraiser establishes a presumption of correctness, determine whether the admitted evidence proves by a preponderance of the evidence that:

a. The property appraiser’s just valuation does not represent just value, or

b. The property appraiser’s just valuation is arbitrarily based on appraisal practices that are different from the appraisal practices generally applied by the property appraiser to comparable property within the same county.

2. If one or both of the conditions in subparagraph (b)1., above, are determined to exist, the property appraiser’s presumption of correctness is overcome.

3. If the property appraiser does not establish a presumption of correctness, or if the presumption of correctness is overcome, the board or special magistrate shall determine whether the hearing record contains competent, substantial evidence of just value which cumulatively meets the criteria of Section 193.011, F.S., and professionally accepted appraisal practices.

a. If the hearing record contains competent, substantial evidence for establishing a revised just value, the board or an appraiser special magistrate shall establish a revised just value based only upon such evidence. In establishing a revised just value, the board or special magistrate is not restricted to any specific value offered by one of the parties.

b. If the hearing record lacks competent, substantial evidence for establishing a revised just value, the board or special magistrate shall remand the assessment to the property appraiser with appropriate directions for establishing just value.

4. If the property appraiser establishes a presumption of correctness and that presumption of correctness is not overcome as described in subparagraph (b)1., above, the assessment stands.

(3) In administrative reviews of the classified use valuation of property or administrative reviews of the assessed valuation of limited increase property, the board or special magistrate shall follow this sequence of general procedural steps:

(a) Identify the statutory criteria that apply to the classified use valuation of the property or to the assessed valuation of limited increase property, as applicable.

(b) Determine whether the property appraiser established a presumption of correctness for the assessment, and determine whether the property appraiser’s classified use or assessed valuation methodology is appropriate. The presumption of correctness is not established unless the admitted evidence proves by a preponderance of the evidence that the property appraiser’s valuation methodology complies with the statutory criteria that apply to the classified use valuation or assessed valuation, as applicable, of the petitioned property.

(c)1. In administrative reviews of classified use valuations, if the property appraiser establishes a presumption of correctness, determine whether the admitted evidence proves by a preponderance of the evidence that:

a. The property appraiser’s classified use valuation does not represent classified use value; or

b. The property appraiser’s classified use valuation is arbitrarily based on classified use valuation practices that are different from the classified use valuation practices generally applied by the property appraiser to comparable property of the same property classification within the same county.

2. If one or both of the conditions in subparagraph (c)1., above, are determined to exist, the property appraiser’s presumption of correctness is overcome.

3. If the property appraiser does not establish a presumption of correctness, or if the presumption of correctness is overcome, the board or special magistrate shall determine whether the hearing record contains competent, substantial evidence of classified use value which cumulatively meets the statutory criteria that apply to the classified use valuation of the petitioned property.

a. If the hearing record contains competent, substantial evidence for establishing a revised classified use value, the board or an appraiser special magistrate shall establish a revised classified use value based only upon such evidence. In establishing a revised classified use value, the board or special magistrate is not restricted to any specific value offered by one of the parties.

b. If the hearing record lacks competent, substantial evidence for establishing a revised classified use value, the board or special magistrate shall remand the assessment to the property appraiser with appropriate directions for establishing classified use value.

4. If the property appraiser establishes a presumption of correctness and that presumption of correctness is not overcome as described in subparagraph (c)1., above, the assessment stands.

(d)1. In administrative reviews of assessed valuations of limited increase property, if the property appraiser establishes a presumption of correctness, determine whether the admitted evidence proves by a preponderance of the evidence that:

a. The property appraiser’s assessed valuation does not represent assessed value; or

b. The property appraiser’s assessed valuation is arbitrarily based on assessed valuation practices that are different from the assessed valuation practices generally applied by the property appraiser to comparable property within the same county.

2. If one or both of the conditions in subparagraph (d)1., above, are determined to exist, the property appraiser’s presumption of correctness is overcome.

3. If the property appraiser does not establish a presumption of correctness, or if the presumption of correctness is overcome, the board or special magistrate shall determine whether the hearing record contains competent, substantial evidence of assessed value which cumulatively meets the statutory criteria that apply to the assessed valuation of the petitioned property.

a. If the hearing record contains competent, substantial evidence for establishing a revised assessed value, the board or an appraiser special magistrate shall establish a revised assessed value based only upon such evidence. In establishing a revised assessed value, the board or special magistrate is not restricted to any specific value offered by one of the parties.

b. If the hearing record lacks competent, substantial evidence for establishing a revised assessed value, the board or special magistrate shall remand the assessment to the property appraiser with appropriate directions for establishing assessed value.

4. If the property appraiser establishes a presumption of correctness and that presumption of correctness is not overcome as described in subparagraph (d)1., above, the assessment stands.

(4) In administrative reviews of exemptions, classifications, and portability assessment transfers, the board or special magistrate shall follow this sequence of general procedural steps:

(a) In the case of an exemption, the board or special magistrate shall consider whether the denial was valid or invalid and shall:

1. Review the exemption denial, and compare it to the applicable statutory criteria in Section 196.193(5), F.S.,

2. Determine whether the denial was valid under Section 196.193, F.S.; and,

3. If the denial is found to be invalid, not give weight to the exemption denial or to any evidence supporting the basis for such denial, but shall instead proceed to dispose of the matter without further consideration in compliance with Section 194.301, F.S.,

4. If the denial is found to be valid, proceed with steps in paragraphs (b) through (g), below.

(b) Consider the admitted evidence presented by the parties.

(c) Identify the particular exemption, property classification, or portability assessment transfer issue that is the subject of the petition.

(d) Identify the statutory criteria that apply to the particular exemption, property classification, or portability assessment difference transfer that was identified as the issue under administrative review.

(e) Identify and consider the essential characteristics of the petitioned property or the property owner, as applicable, based on the statutory criteria that apply to the issue under administrative review.

(f) Identify and consider the basis used by the property appraiser in issuing the denial for the petitioned property.

(g) Determine whether the admitted evidence proves by a preponderance of the evidence that the property appraiser’s denial is incorrect and the exemption, classification, or portability assessment transfer should be granted because all of the applicable statutory criteria are satisfied. Where necessary and where the context will permit in these rules, the term “statutory criteria” includes any constitutional criteria that do not require implementation by legislation.

(5) “Standard of proof” means the level of proof needed by the board or special magistrate to reach a particular conclusion. The standard of proof that applies in administrative reviews is called “preponderance of the evidence,” which means “greater weight of the evidence.”

(6) When applied to evidence, the term “sufficient” is a test of adequacy. Sufficient evidence is admitted evidence that has enough overall weight, in terms of relevance and credibility, to legally justify a particular conclusion. A particular conclusion is justified when the overall weight of the admitted evidence meets the standard of proof that applies to the issue under consideration. The board or special magistrate must determine whether the admitted evidence is sufficiently relevant and credible to reach the standard of proof that applies to the issue under consideration. In determining whether the admitted evidence is sufficient for a particular issue under consideration, the board or special magistrate shall:

(a) Consider the relevance and credibility of the admitted evidence as a whole, regardless of which party presented the evidence;

(b) Determine the relevance and credibility, or overall weight, of the evidence;

(c) Compare the overall weight of the evidence to the standard of proof;

(d) Determine whether the overall weight of the evidence is sufficient to reach the standard of proof; and,

(e) Produce a conclusion of law based on the determination of whether the overall weight of the evidence has reached the standard of proof.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 193.122, 194.011, 194.015, 194.032, 194.034, 194.036, 194.037, 194.301, 195.002, 195.084, 195.096, 196.011, 196.151, 196.193, 197.122 FS. History–New 3-30-10, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.028 Petitions on Transfer of “Portability” Assessment Difference

(1) This rule section applies to the review of denials of assessment limitation difference transfers or of the amount of an assessment limitation difference transfer. No adjustment to the just, assessed or taxable value of the previous homestead parcel may be made pursuant to a petition under this rule.

(2) A petitioner may file a petition with the value adjustment board, in the county where the new homestead is located, to petition either a denial of a transfer or the amount of the transfer, on Form DR-486PORT. Form DR-486PORT is adopted and incorporated by reference in Rule 12D-16.002, F.A.C. Such petition must be filed at any time during the taxable year on or before the 25th day following the mailing of the notice of proposed property taxes as provided in Section 194.011, F.S. If only a part of a transfer of assessment increase differential is granted, the notice of proposed property taxes shall function as notice of the taxpayer’s right to appeal to the board.

(3) The petitioner may petition to the board the decision of the property appraiser refusing to allow the transfer of an assessment difference, and the board shall review the application and evidence presented to the property appraiser upon which the petitioner based the claim and shall hear the petitioner on behalf of his or her right to such assessment. Such petition shall be heard by an attorney special magistrate if the board uses special magistrates.

(4) This subsection will apply to value adjustment board proceedings in a county in which the previous homestead is located. Any petitioner desiring to appeal the action of a property appraiser in a county in which the previous homestead is located must so designate on Form DR-486PORT.

(5) If the petitioner does not agree with the amount of the assessment limitation difference for which the petitioner qualifies as stated by the property appraiser in the county where the previous homestead property was located, or if the property appraiser in that county has not stated that the petitioner qualifies to transfer any assessment limitation difference, upon the petitioner filing a petition to the value adjustment board in the county where the new homestead property is located, the board clerk in that county shall, upon receiving the petition, send a notice using Form DR-486XCO, to the board clerk in the county where the previous homestead was located, which shall reconvene if it has already adjourned. Form DR-486XCO is adopted, and incorporated by reference, in Rule 12D-16.002, F.A.C.

(6)(a) If a cross county petition is filed as described in subsection (5), such notice operates as a timely petition and creates an appeal to the value adjustment board in the county where the previous homestead was located on all issues surrounding the previous assessment differential for the taxpayer involved. However, the petitioner may not petition to have the just, assessed, or taxable value of the previous homestead changed.

(b) The board clerk in the county where the previous homestead was located shall set the petition for hearing and notify the petitioner, the property appraiser in the county where the previous homestead was located, the property appraiser in the county where the new homestead is located, and the value adjustment board in that county, and shall hear the petition.

(c) The board clerk in the county in which the previous homestead was located must note and file the petition from the county in which the new homestead is located. No filing fee is required. The board clerk shall notify each petitioner of the scheduled time of appearance. The notice shall be in writing and delivered by regular or certified U.S. mail, or personal delivery, or delivered in the manner requested by the petitioner on Form DR-486PORT, so that the notice shall be received by the petitioner no less than twenty-five (25) calendar days prior to the day of such scheduled appearance. The board clerk will have prima facie complied with the requirements of this section if the notice was deposited in the U.S. mail thirty (30) days prior to the day of such scheduled appearance.

(d) Such petition shall be heard by an attorney special magistrate if the value adjustment board in the county where the previous homestead was located uses special magistrates. The petitioner may attend such hearing and present evidence, but need not do so. If the petitioner does not appear at the hearing, the hearing shall go forward. The board or special magistrate shall obtain the petition file from the board clerk. The board or special magistrate shall consider deeds, property appraiser records that do not violate confidentiality requirements, and other documents that are admissible evidence. The petitioner may submit a written statement for review and consideration by the board or special magistrate explaining why the “portability” assessment difference should be granted based on applications and other documents and records submitted by the petitioner.

(e) The value adjustment board in the county where the previous homestead was located shall issue a decision and the board clerk shall send a copy of the decision to the board clerk in the county where the new homestead is located.

(f) In hearing the petition in the county where the new homestead is located, that value adjustment board shall consider the decision of the value adjustment board in the county where the previous homestead was located on the issues pertaining to the previous homestead and on the amount of any assessment reduction for which the petitioner qualifies. The value adjustment board in the county where the new homestead is located may not hold its hearing until it has received the decision from the value adjustment board in the county where the previous homestead was located.

(7) This rule does not authorize the consideration or adjustment of the just, assessed, or taxable value of the previous homestead property.

(8) Copies of the forms incorporated in Rule 12D-16.002, F.A.C., may be obtained from the Department’s website floridarevenue.com/property/forms.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 193.155, 194.011, 195.084 FS. History–New 3-30-10.

Fla. Admin. Code R. 12D-9.029 Procedures for Remanding Value Assessments to the Property Appraiser

(1) The board or appraiser special magistrate shall remand a value assessment to the property appraiser when the board or special magistrate has concluded that:

(a) The property appraiser did not establish a presumption of correctness, or has concluded that the property appraiser established a presumption of correctness that is overcome, as provided in Rule 12D-9.027, F.A.C.; and,

(b) The record does not contain the competent substantial evidence necessary for the board or special magistrate to establish a revised just value, classified use value, or assessed value, as applicable.

(2) An attorney special magistrate shall remand an assessment to the property appraiser for a classified use valuation when the special magistrate has concluded that a property classification will be granted.

(3) The board shall remand an assessment to the property appraiser for a classified use valuation when the board:

(a) Has concluded that a property classification will be granted; and,

(b) Has concluded that the record does not contain the competent substantial evidence necessary for the board to establish classified use value.

(4) The board or special magistrate shall, on the appropriate decision form from the Form DR-485 series, produce written findings of fact and conclusions of law necessary to determine that a remand is required, but shall not render a recommended or final decision until after a continuation hearing is held or waived as provided in subsection (9). The Form DR-485 series is adopted, and incorporated by reference, in Rule 12D-16.002, F.A.C.

(5) When an attorney special magistrate remands an assessment to the property appraiser for classified use valuation, an appraiser special magistrate retains authority to produce a recommended decision in accordance with law. When an appraiser special magistrate remands an assessment to the property appraiser, the special magistrate retains authority to produce a recommended decision in accordance with law. When the value adjustment board remands an assessment to the property appraiser, the board retains authority to make a final decision on the petition in accordance with law.

(6) For remanding an assessment to the property appraiser, the board or special magistrate shall produce a written remand decision which shall include appropriate directions to the property appraiser.

(7) The board clerk shall concurrently provide, to the petitioner and the property appraiser, a copy of the written remand decision from the board or special magistrate. The petitioner’s copy of the written remand decision shall be sent by regular or certified U.S. mail, or by personal delivery, or in the manner requested by the taxpayer on Form DR-486, Petition to the Value Adjustment Board Request for Hearing. Form DR-486 is adopted and incorporated by reference in Rule 12D-16.002, F.A.C.

(8)(a) After receiving a board or special magistrate’s remand decision from the board clerk, the property appraiser shall follow the appropriate directions from the board or special magistrate and shall produce a written remand review.

(b) The property appraiser or his or her staff shall not have, directly or indirectly, any ex parte communication with the board or special magistrate regarding the remanded assessment.

(9)(a) Immediately after receipt of the written remand review from the property appraiser, the board clerk shall send a copy of the written remand review to the petitioner by regular or certified U.S. mail or by personal delivery, or in the manner requested by the taxpayer on Form DR-486, and shall send a copy to the board or special magistrate. The board clerk shall retain, as part of the petition file, the property appraiser’s written remand review. Together with the petitioner’s copy of the written remand review, the board clerk shall send to the petitioner a copy of this rule subsection.

(b) The board clerk shall schedule a continuation hearing if the petitioner notifies the board clerk, within 25 days of the date the board clerk sends the written remand review, that the results of the property appraiser’s written remand review are unacceptable to the petitioner and that the petitioner requests a further hearing on the petition. The board clerk shall send the notice of hearing so that it will be received by the petitioner no less than twenty-five (25) calendar days prior to the day of such scheduled appearance, as described in subsection 12D-9.019(3), F.A.C. When a petitioner does not notify the board clerk that the results of the property appraiser’s written remand review are unacceptable to the petitioner and does not request a continuation hearing, or if the petitioner waives a continuation hearing, the board or special magistrate shall issue a decision or recommended decision. Such decision shall contain:

1. A finding of fact that the petitioner did not request a continuation hearing or waived such hearing; and,

2. A conclusion of law that the decision is being issued in order that any right the petitioner may have to bring an action in circuit court is not impaired.

The petition shall be treated and listed as board action for purposes of the notice required by Rule 12D-9.038, F.A.C.

(c) At a continuation hearing, the board or special magistrate shall receive and consider the property appraiser’s written remand review and additional relevant and credible evidence, if any, from the parties. Also, the board or special magistrate may consider evidence admitted at the original hearing.

(10) In those counties that use special magistrates, if an attorney special magistrate has granted a property classification before the remand decision and the property appraiser has produced a remand classified use value, a real property valuation special magistrate shall conduct the continuation hearing.

(11) In no case shall a board or special magistrate remand to the property appraiser an exemption, “portability” assessment difference transfer, or property classification determination.

(12) Copies of all evidence shall remain with the board clerk and be available during the remand process.

(13) In lieu of remand, the board or special magistrate may postpone conclusion of the hearing upon agreement of the parties if the requirements of subsection 12D-9.025(6), F.A.C., are met.

(14) Copies of the forms incorporated in Rule 12D-16.002, F.A.C., may be obtained from the Department’s website floridarevenue.com/property/forms.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.032, 194.034, 194.035, 194.301 FS. History–New 3-30-10, Amended 9-19-17, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.030 Recommended Decisions

(1) For each petition not withdrawn or settled, special magistrates shall produce a written recommended decision that contains findings of fact, conclusions of law, and reasons for upholding or overturning the property appraiser’s determination. Conclusions of law must be based on findings of fact. For each of the statutory criteria for the issue under administrative review, findings of fact must identify the corresponding admitted evidence, or lack thereof. Each recommended decision shall contain sufficient factual and legal information and reasoning to enable the parties to understand the basis for the decision, and shall otherwise meet the requirements of law. The special magistrate and board clerk shall observe the petitioner’s right to be sent a timely written recommended decision containing proposed findings of fact and proposed conclusions of law and reasons for upholding or overturning the determination of the property appraiser. After producing a recommended decision, the special magistrate shall provide it to the board clerk.

(2) The board clerk shall provide copies of the special magistrate’s recommended decision to the petitioner and the property appraiser as soon as practicable after receiving the recommended decision, and if the board clerk:

(a) Knows the date, time, and place at which the recommended decision will be considered by the board, the board clerk shall include such information when he or she sends the recommended decision to the petitioner and the property appraiser; or

(b) Does not yet know the date, time, and place at which the recommended decision will be considered by the board, the board clerk shall include information on how to find the date, time, and place of the meeting at which the recommended decision will be considered by the board.

(3) Any board or special magistrate workpapers, worksheets, notes, or other materials that are made available to a party shall immediately be sent to the other party. Any workpapers, worksheets, notes, or other materials created by the board or special magistrates during the course of hearings or during consideration of petitions and evidence, that contain any material prepared in connection with official business, shall be transferred to the board clerk and retained as public records. Value adjustment boards or special magistrates using standardized workpapers, worksheets, or notes, whether in electronic format or otherwise, must receive prior department approval to ensure that such standardized documents comply with the law.

(4) For the purpose of producing the recommended decisions of special magistrates, the department prescribes the Form DR-485 series, and any electronic equivalent forms approved by the department under Section 195.022, F.S. The Form DR-485 series is adopted, and incorporated by reference, in Rule 12D-16.002, F.A.C. All recommended decisions of special magistrates, and all forms used for the recommended decisions, must contain the following required elements:

(a) Findings of fact;

(b) Conclusions of law; and,

(c) Reasons for upholding or overturning the determination of the property appraiser.

(5) As used in this section, the terms “findings of fact” and “conclusions of law” include proposed findings of fact and proposed conclusions of law produced by special magistrates in their recommended decisions.

(6) Legal advice from the board legal counsel relating to the facts of a petition or to the specific outcome of a decision, if in writing, shall be included in the record and referenced within the findings of fact and conclusions of law. If not in writing, such advice shall be documented within the findings of fact and conclusions of law.

(7) Copies of the forms incorporated in Rule 12D-16.002, F.A.C., may be obtained from the Department’s website floridarevenue.com/property/forms.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 193.155, 194.011, 194.035, 195.022 FS. History–New 3-30-10, Amended 9-19-17.

Fla. Admin. Code R. 12D-9.031 Consideration and Adoption of Recommended Decisions of Special Magistrates by Value Adjustment Boards in Administrative Reviews

(1) All recommended decisions shall comply with Sections 194.301, 194.034(2) and 194.035(1), F.S. A special magistrate shall not submit to the board, and the board shall not adopt, any recommended decision that is not in compliance with Sections 194.301, 194.034(2) and 194.035(1), F.S.

(2) As provided in Sections 194.034(2) and 194.035(1), F.S., the board shall consider the recommended decisions of special magistrates and may act upon the recommended decisions without further hearing. If the board holds further hearing for such consideration, the board clerk shall send notice of the hearing to the parties. Any notice of hearing shall be in the same form as specified in subsection 12D-9.019(3), F.A.C., but need not include items specified in subparagraphs 6. through 9., of that subsection. The board shall consider whether the recommended decisions meet the requirements of subsection (1), and may rely on board legal counsel for such determination. Adoption of recommended decisions need not include a review of the underlying record.

(3) If the board determines that a recommended decision meets the requirements of subsection (1), the board shall adopt the recommended decision. When a recommended decision is adopted and rendered by the board, it becomes final.

(4) If the board determines that a recommended decision does not comply with the requirements of subsection (1), the board shall proceed as follows:

(a) The board shall request the advice of board legal counsel to evaluate further action and shall take the steps necessary for producing a final decision in compliance with subsection (1).

(b) The board may direct a special magistrate to produce a recommended decision that complies with subsection (1) based on, if necessary, a review of the entire record.

(c) The board shall retain any recommended decisions and all other records of actions under this rule section.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 193.122, 194.011, 194.032, 194.034, 194.035, 194.301 FS. History–New 3-30-10, Amended 6-14-16, Technical Change 1-29-26.

Fla. Admin. Code R. 12D-9.032 Final Decisions

(1)(a) For each petition not withdrawn or settled, the board shall produce a written final decision that contains findings of fact, conclusions of law, and reasons for upholding or overturning the property appraiser’s determination. Conclusions of law must be based on findings of fact. For each of the statutory criteria for the issue under administrative review, findings of fact must identify the corresponding admitted evidence, or lack thereof. Each final decision shall contain sufficient factual and legal information and reasoning to enable the parties to understand the basis for the decision, and shall otherwise meet the requirements of law. The board may fulfill the requirement to produce a written final decision by adopting a recommended decision of the special magistrate containing the required elements and providing notice that it has done so. The board may adopt the special magistrate’s recommended decision as the decision of the board incorporating the recommended decision, using a postcard or similar notice. The board shall ensure regular and timely approval of recommended decisions.

(b) Legal advice from the board legal counsel relating to the facts of a petition or to the specific outcome of a decision, if in writing, shall be included in the record and referenced within the findings of fact and conclusions of law. If not in writing, such advice shall be documented within the findings of fact and conclusions of law.

(2) A final decision of the board shall state the just, assessed, taxable, and exempt value, for the county both before and after board action. Board action shall not include changes made as a result of action by the property appraiser. If the property appraiser has reduced his or her value or granted an exemption, property classification, or “portability” assessment difference transfer, whether before or during the hearing but before board action, the values in the “before” column shall reflect the adjusted figure before board action.

(3) The board’s final decision shall advise the taxpayer and property appraiser that further proceedings in circuit court shall be as provided in Section 194.036, F.S.

(4) Upon issuance of a final decision by the board, the board shall provide it to the board clerk and the board clerk shall promptly provide notice of the final decision to the parties. Notice of the final decision may be made by providing a copy of the decision. The board shall issue all final decisions within 20 calendar days of the last day the board is in session pursuant to Section 194.034, F.S.

(5) For the purpose of producing the final decisions of the board, the department prescribes the Form DR-485 series, and any electronic equivalent forms approved by the department under Section 195.022, F.S. The Form DR-485 series is adopted, and incorporated by reference, in Rule 12D-16.002, F.A.C. The Form DR-485 series, or approved electronic equivalent forms, are the only forms that shall be used for producing a final decision of the board. Before using any form to notify petitioners of the final decision, the board shall submit the proposed form to the department for approval. The board shall not use a form to notify the petitioner unless the department has approved the form. All decisions of the board, and all forms used to produce final decisions on petitions heard by the board, must contain the following required elements:

(a) Findings of fact;

(b) Conclusions of law; and,

(c) Reasons for upholding or overturning the determination of the property appraiser.

(6)(a) If, prior to a final decision, any communication is received from a party concerning a board process on a petition or concerning a recommended decision, a copy of the communication shall promptly be furnished to all parties, the board clerk, and the board legal counsel. No such communication shall be furnished to the board or a special magistrate unless a copy is immediately furnished to all parties. A party may waive notification or furnishing of copies under this subsection.

(b) The board legal counsel shall respond to such communication and may advise the board concerning any action the board should take concerning the communication.

(c) No reconsideration of a recommended decision shall take place until all parties have been furnished all communications, and have been afforded adequate opportunity to respond.

(d) The board clerk shall provide to the parties:

1. Notification before the presentation of the matter to the board, and

2. Notification of any action taken by the board.

(7) Copies of the forms incorporated in Rule 12D-16.002, F.A.C., may be obtained from the Department’s website floridarevenue.com/property/forms.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.032, 194.034, 195.022 FS. History–New 3-30-10, Amended 9-19-17, Technical Change 2-6-26.

Fla. Admin. Code R. 12D-9.033 Further Judicial Proceedings

After the board issues its final decision, further proceedings and the timing thereof are as provided in Sections 194.036 and 194.171, F.S.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.013, 194.015, 194.032, 194.034, 194.035, 194.036, 195.022 FS. History–New 3-30-10, Technical Change 2-6-26.

Fla. Admin. Code R. 12D-9.034 Record of the Proceeding

(1) The board clerk shall maintain a record of the proceeding. The record shall consist of:

(a) The petition;

(b) All filed documents, including all tangible exhibits and documentary evidence presented, whether or not admitted into evidence; and,

(c) Meeting minutes and a verbatim record of the hearing.

(2) The verbatim record of the hearing may be kept by any electronic means which is easily retrieved and copied. In counties that use special magistrates, the special magistrate shall accurately and completely preserve the verbatim record during the hearing, and may be assisted by the board clerk. In counties that do not use special magistrates, the board clerk shall accurately and completely preserve the verbatim record during the hearing. At the conclusion of each hearing, the board clerk shall retain the verbatim record as part of the petition file.

(3) The record shall be maintained for four years after the final decision has been rendered by the board if no appeal is filed in circuit court, or for five years if an appeal is filed.

(4) If requested by the taxpayer, the taxpayer’s representative, or the property appraiser, the board clerk shall retain these records until the final disposition of any subsequent judicial proceeding related to the same property.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.011, 194.032, 194.034, 194.035 FS. History–New 3-30-10, Amended 9-19-17, Technical Change 2-6-26.

Fla. Admin. Code R. 12D-9.035 Duty of Clerk to Prepare and Transmit Record

(1) When a change in the tax roll made by the board becomes subject to review by the Circuit Court pursuant to Section 194.036(1)(c), F.S., it shall be the duty of the board clerk, when requested, to prepare the record for review. The record shall consist of a copy of each paper, including the petition and each exhibit in the proceeding together with a copy of the board’s decision and written findings of fact and conclusions of law. The board clerk shall transmit to the Court this record, and the board clerk’s certification of the record which shall be in the following form:

CERTIFICATION OF RECORD

I hereby certify that the attached record, consisting of sequentially numbered pages one through _____, consists of true copies of all papers, exhibits, and the Board’s findings of fact and conclusions of law, in the proceeding before the _____________ County Value Adjustment Board upon petition numbered __________ filed by _____________.

---

Clerk of Value Adjustment Board

By: ________________________

Deputy Clerk

Should the verbatim transcript be prepared other than by a court reporter, the board clerk shall also make the following certification:

CERTIFICATION OF VERBATIM TRANSCRIPT

I hereby certify that the attached verbatim transcript consisting of sequentially numbered pages _____ through _____ is an accurate and true transcript of the hearing held on ________ in the proceeding before the County Value Adjustment Board petition numbered _________ filed by:

---

Clerk of Value Adjustment Board

By: ________________________

Deputy Clerk

(2) The board clerk shall provide the petitioner and property appraiser, upon their request, a copy of the record at no more than actual cost.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.032, 194.036 FS. History–New 3-30-10, Technical Change 2-6-26.

Fla. Admin. Code R. 12D-9.036 Procedures for Petitions on Denials of Tax Deferrals

(1) The references in these rules to the tax collector are for the handling of petitions of denials of tax deferrals under Section 197.2425, F.S., and petitions of penalties imposed under Section 197.301, F.S.

(2) To the extent possible where the context will permit, such petitions shall be handled procedurally under this rule chapter in the same manner as denials of exemptions.

PART III

UNIFORM CERTIFICATION OF ASSESSMENT ROLLS

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.032, 194.036, 197.2425, 197.301 FS. History–New 3-30-10, Amended 11-1-12, Technical Change 2-6-26.

Fla. Admin. Code R. 12D-9.037 Certification of Assessment Rolls

(1)(a) When the tax rolls have been extended pursuant to Section 197.323, F.S., the initial certification of the value adjustment board shall be made on Form DR-488P. Form DR-488P is adopted, and incorporated by reference, in Rule 12D-16.002, F.A.C.

(b) After all hearings have been held, the board shall certify an assessment roll or part of an assessment roll that has been finally approved pursuant to Section 193.1142, F.S. The certification shall be on the form prescribed by the department referenced in subsection (2) of this rule. A sufficient number of copies of the board’s certification shall be delivered to the property appraiser who shall attach the same to each copy of each assessment roll prepared by the property appraiser.

(2) The form shall include a certification signed by the board chair, on behalf of the entire board, on Form DR-488, adopted, and incorporated by reference, in Rule 12D-16.002, F.A.C., designated for this purpose, that all requirements in Chapter 194, F.S., and department rules, were met as follows:

(a) The prehearing checklist pursuant to Rule 12D-9.014, F.A.C., was followed and all necessary actions reported by the board clerk were taken to comply with Rule 12D-9.014, F.A.C.;

(b) The qualifications of special magistrates were verified, including whether special magistrates completed the department’s training;

(c) The selection of special magistrates was based solely on proper qualifications and the property appraiser and parties did not influence the selection of special magistrates;

(d) All petitions considered were either timely filed, or good cause was found for late filing after proper review by the board or its designee;

(e) All board meetings were duly noticed pursuant to Section 286.011, F.S., and were held in accordance with law;

(f) No ex parte communications were considered unless all parties were notified and allowed to rebut;

(g) All petitions were reviewed and considered as required by law unless withdrawn or settled as defined in this rule chapter;

(h) All decisions contain required findings of fact and conclusions of law in compliance with Chapter 194, F.S., and this rule chapter;

(i) The board allowed opportunity for public comment at the meeting at which special magistrate recommended decisions were considered and adopted;

(j) All board members and the board’s legal counsel have read this certification and a copy of the statement in subsection (1) is attached; and,

(k) All complaints of noncompliance with Part I, Chapter 194, F.S., or this rule chapter called to the board’s attention have been appropriately addressed to conform with the provisions of Part I, Chapter 194, F.S., and this rule chapter.

(3) The board shall provide a signed original of the certification required under this rule section to the department before publication of the notice of the findings and results of the board required by Section 194.037, F.S. See Form DR-529, Notice Tax Impact of Value Adjustment Board.

(4) Copies of the forms incorporated in Rule 12D-16.002, F.A.C., may be obtained from the Department’s website floridarevenue.com/property/forms.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 193.122, 194.011, 195.022, 195.084 FS. History–New 3-30-10, Technical Change 2-6-26.

Fla. Admin. Code R. 12D-9.038 Public Notice of Findings and Results of Value Adjustment Board

(1) After all hearings have been completed, the board clerk shall publish a public notice advising all taxpayers of the findings and results of the board decisions, which shall include changes made by the board to the property appraiser’s initial roll. Such notice shall be published to permit filing within the timeframe in subsections 12D-17.004(1) and (2), F.A.C., where provided. For petitioned parcels, the property appraiser’s initial roll shall be the property appraiser’s determinations as presented at the commencement of the hearing or as reduced by the property appraiser during the hearing but before a decision by the board or a recommended decision by a special magistrate. This section shall not prevent the property appraiser from providing data to assist the board clerk with the notice of tax impact. The public notice shall be in the form of a newspaper advertisement and shall be referred to as the “tax impact notice.” The format of the tax impact notice shall be substantially as prescribed in Form DR-529, Notice Tax Impact of Value Adjustment Board, incorporated by reference in Rule 12D-16.002, F.A.C.

(2) If published in the print edition of a newspaper, the size of the notice shall be at least a quarter page size advertisement of a standard or tabloid size newspaper, the headline must be set in a type no smaller than 18 point, and the notice must be published in a part of the paper where legal notices and classified advertisements are not published. The notice must include all the above information and no change shall be made in the format or content without department approval.

(3) The notice of the findings and results of the value adjustment board shall be published as provided by Chapter 50, F.S. It shall be the specific intent of the publication of notice to reach the largest segment of the total county population.

(4) The headline of the notice shall read “TAX IMPACT OF VALUE ADJUSTMENT BOARD.”

(5) It shall be the duty of the board clerk to ensure publication of the notice after the board has heard all petitions, complaints, appeals, and disputes.

(6) Copies of the forms incorporated in Rule 12D-16.002, F.A.C., may be obtained from the Department’s website floridarevenue.com/property/forms.

History

• Rulemaking Authority 194.011(5), 194.034(1), 195.027(1) FS. Law Implemented 194.032, 194.034, 194.037 FS. History–New 3-30-10, Amended 6-13-22.

Chapter 12D-10 VALUE ADJUSTMENT BOARD

Fla. Admin. Code R. 12D-10.001 Composition of Value Adjustment Board

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 194.015, 213.05 FS. History–New 10-12-76, Formerly 12D-10.01, Amended 12-31-98, Repealed 3-30-10.

Fla. Admin. Code R. 12D-10.002 Appointment and Employment of Special Magistrates

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 194.032, 194.034, 194.035, 213.05 FS. History–New 10-12-76, Formerly 12D-10.02, Repealed 3-30-10.

Fla. Admin. Code R. 12D-10.003 Powers, Authority, Duties and Functions of Value Adjustment Board

(1) The board has no power to fix the original valuation of property for ad valorem tax purposes or to grant an exemption not authorized by law and the board is bound by the same standards as the county property appraiser in determining values and the granting of exemptions. The board has no power to grant relief either by adjustment of the value of a property or by the granting of an exemption on the basis of hardship of a particular taxpayer. The board, in determining the valuation of a specific property, shall not consider the ultimate amount of tax required.

(2) The powers, authority, duties and functions of the board, insofar as they are appropriate, apply equally to real property and tangible personal property (including taxable household goods).

(3) Every decision of the board must contain specific and detailed findings of fact which shall include both ultimate findings of fact and basic and underlying findings of fact. Each basic and underlying finding must be properly annotated to its supporting evidence. For purposes of these rules, the following are defined to mean:

(a) An ultimate finding is a determination of fact. An ultimate finding is usually expressed in the language of a statutory standard and must be supported by and flow rationally from adequate basic and underlying findings.

(b) Basic and underlying findings are those findings on which the ultimate findings rest and which are supported by evidence. Basic and underlying findings are more detailed than the ultimate findings but less detailed than a summary of the evidence.

(c) Reasons are those clearly stated grounds upon which the board or property appraiser acted.

History

• Rulemaking Authority 194.034(1), 195.027(1) FS. Law Implemented 193.122, 194.011, 194.015, 194.032, 194.034, 194.036, 194.037, 194.301, 195.002, 195.096, 196.011, 197.122 FS. History–New 10-12-76, Amended 11-10-77, 9-30-82, Formerly 12D-10.03, Amended 12-31-98, 3-30-10, Technical Change 2-6-26.

Fla. Admin. Code R. 12D-10.004 Receipt of Taxpayer’s Petition to Be Acknowledged

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 194.011, 194.015, 194.032, 195.022, 200.069, 213.05 FS. History–New 10-12-76, Formerly 12D-10.04, Amended 1-11-94, 12-28-95, 12-31-98, 1-20-03, 12-30-04, Repealed 3-30-10.

Fla. Admin. Code R. 12D-10.0044 Uniform Procedures for Hearings; Procedures for Information and Evidence Exchange Between the Petitioner and Property Appraiser, Consistent with Section 194.032, F.S.; Organizational Meeting; Uniform Procedures to be Available to Petitioners

History

• Rulemaking Authority 194.011(5), 195.027(1), 213.06(1) FS. Law Implemented 194.011, 194.015, 194.032, 194.034, 194.035, 195.022, 200.069, 213.05 FS. History–New 4-4-04, Amended 12-30-04, Repealed 3-30-10.

Fla. Admin. Code R. 12D-10.005 Duty of Clerk to Prepare and Transmit Record

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 194.032, 194.036, 213.05 FS. History–New 10-12-76, Amended 11-10-77, Formerly 12D-10.05, Repealed 3-30-10.

Fla. Admin. Code R. 12D-10.006 Public Notice of Findings and Results of Value Adjustment Board

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 50, 194.032, 194.034, 194.037, 213.05 FS. History–New 2-12-81, Formerly 12D-10.06, Repealed 3-30-10.

Chapter 12D-11 BUDGETS

Fla. Admin. Code R. 12D-11.001 Submission of Budgets

(1) In accordance with Section 195.087(1), F.S., every property appraiser, regardless of the form of county government, shall submit to the Department of Revenue a budget for the operation of the property appraiser’s office on or before June 1 of each year.

(2) In accordance with Section 195.087(2), F.S., each tax collector shall submit a budget to the Department of Revenue for the operation of the collector’s office on or before August 1 of each year.

Exceptions to the above are as follows:

(a) Tax collectors who, through written resolutions with boards of county commission, have changed from a fee officer to a budget officer with the county. The resolution must be in writing, signed by the collector, the Chairman of the Board of County Commissioners and the Clerk of the Court. Once a resolution is entered into by the county official and the board of county commission, neither that county official nor the board of county commission may revoke or rescind such resolution. A copy of such resolution must be filed with the Department of Financial Services and the Auditor General. A copy of the resolution should also be furnished to the Department of Revenue in order for the Department to determine which tax collectors are not required to file a budget with the Department of Revenue.

(b) Tax collectors who, by special acts, are changed from a fee officer to a budget officer.

(c) Chartered counties (e.g., Broward, Volusia, Dade, Duval and Sarasota) are to be guided by the provisions of their county charter.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.087, 213.05 FS. History–New 10-12-76, Formerly 12D-11.01.

Fla. Admin. Code R. 12D-11.002 Forms for Budget Submission by Tax Collectors

History

• Rulemaking Authority 195.027 FS. Law Implemented 195.087 FS. History–New 10-12-76, Amended 4-29-82, Formerly 12D-11.02, Repealed 9-12-95.

Fla. Admin. Code R. 12D-11.003 Forms for Budget Submission by Property Appraiser

History

• Rulemaking Authority 195.027 FS. Law Implemented 195.087 FS. History–New 10-12-76, Amended 4-29-82, Formerly 12D-11.03, Repealed 9-12-95.

Fla. Admin. Code R. 12D-11.004 Approval of Tax Collectors’ Budgets

(1) The budgets of tax collectors, when appropriate, will be reviewed in accordance with the procedures set forth in Section 195.087(2), F.S.

(2) Budget requests will be evaluated by object code, using historical data and justification provided.

(3) Approval will be made for the total amount of each appropriation category.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.087, 213.05 FS. History–New 10-12-76, Amended 4-29-82, Formerly 12D-11.04.

Fla. Admin. Code R. 12D-11.005 Approval of Property Appraisers’ Budgets

(1) The budgets of property appraisers will be reviewed according to the procedures in Section 195.087(1), F.S.

(2) Budget requests will be evaluated by object code, using historical data and justification provided.

(3) Approval will be made for the total amount of each appropriation category.

(4) The Department of Revenue (Department) will issue a preliminary recommendation, after which the county commission or property appraiser may offer written testimony to the Department concerning the whole or any part of the budget, along with justification included for any and all items being questioned.

(5) The Department will review the written testimony, and if necessary, set conferences requesting the attendance of all parties concerned, to negotiate agreement on the final budget. After the conference is concluded, the Department will issue a final ruling on the budget.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.087, 213.05 FS. History–New 10-12-76, Amended 4-29-82, Formerly 12D-11.05.

Fla. Admin. Code R. 12D-11.006 Budget Amendments and Budget Transfers – Collectors

(1) Budget amendments are defined as line-item changes which either increase or decrease the total budget. Copies of approvals are provided to the official.

(2) Budget transfers are defined as line-item changes between appropriation categories which do not change the total budget appropriation. Copies of approvals are provided to the official.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.087 213.05 FS. History–New 10-12-76, Amended 4-29-82, Formerly 12D-11.06.

Fla. Admin. Code R. 12D-11.007 Budget Amendments and Budget Transfers – Property Appraisers

(1) Budget amendments are defined as line-item changes which either increase or decrease the total budget. Copies, as approved, are furnished to the official, and Board of County Commissioners. (Section 195.087(1)(a), F.S.)

(2) Budget transfers are defined as line-item changes between appropriation categories which do not change the total budget appropriation. Copies of approval are provided to the official.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.087, 213.05 FS. History–New 10-12-76, Amended 4-29-82, Formerly 12D-11.07.

Fla. Admin. Code R. 12D-11.008 Distribution of Excess Funds – Tax Collectors

The distribution of excess fees for each governmental unit shall be that portion of the excess fees that its fee payment represents to the officer’s total fee income. In calculating this ratio, extend to five significant decimals. This will result in a percentage followed by three decimals; for example:

$15,769

= 0.02725 = 2.725%

$578,639

All taxing authorities share in this distribution. In some instances, such a proration will not equal the total excess fees on hand. This is the result of miscellaneous income to the office from sources other than those who were originally billed, such as state agencies paying some portion of the total fees, and sale of RP tags. In such cases, this balance, after the division and distribution pursuant to statutory provisions, shall be paid to the County General Fund. An example is given, assuming the following facts:

(1) Total fee income was $100,000.

(2) Excess fees were $10,000.

(3) The county and special districts A, B and C are the governmental units concerned.

% of Total

Dollar Amount

Fee Income

of Fees Paid

County

65.000%

$65,000

Special District A

5.000%

5,000

Special District B

5.000%

5,000

Special District C

5.000%

5,000

State Agencies

20.000%

20,000

Total

$100,000

Distribution of excess fees to governmental units.

County

65.000%

$6,500

Special District A

5.000%

500

Special District B

5.000%

500

Special District C

5.000%

500

Total amount distributed based on % of fees paid in proportion

to total fee income

$8,000

Amount of Excess Fees

$10,000

Amount of Excess Fees distributed

$8,000

Difference

$2,000

The difference of $2,000 would be paid to County General Fund.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.087, 213.05, 218.36 FS. History–New 10-12-76, Formerly 12D-11.08.

Fla. Admin. Code R. 12D-11.009 Distribution of Excess Funds – Property Appraisers

The distribution of excess funds shall be distributed to each governmental unit in proportion to amounts billed and paid. In calculating this ratio, extend to five significant decimals. This will result in a percentage followed by three decimals; for example:

$15,769

$578,639

= 0.02725 = 2.725%

(A)

(C)

Billed for Budget

Total Billed

Paid

Refund

Due

(D)

Distribution

A/R

A/P

CC

$85,000

$85,000

$85,000

$13,632

$10,099

$_____

$3,533

(80.189%)

(84.158%)

A

7,000

7,000

7,000

1,123

832

---

291

(6.604%)

(6.931%)

B

8,000

8,000

3,000

1,283

356

5,000

927

(7.547%)

(2.970%)

Spec. C

– 0 –

(B) 6,000

6,000

962

713

---

249

(5.660%)

(5.941%)

---

---

---

---

---

---

---

$100,000

(B) $106,000

$101,000

$17,000

$12,000

$5,000

$5,000

Upon collection of Accounts Receivable, clear Accounts Receivable, Accounts Payable, and credit any remaining balances to subsequent billings, if applicable.

(a) Billed per Section 192.091(1), F.S.

(b) Billings other than under Section 192.091(1), F.S.

(c) Prorated on basis of “Total Billed.”

(d) Prorated on basis of “Paid.” Credit these amounts to subsequent period billings if the district is subject to billing for the following fiscal period.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.087, 213.05, 218.36 FS. History–New 10-12-76, Formerly 12D-11.09.

Chapter 12D-13 TAX COLLECTORS RULES AND REGULATIONS

Fla. Admin. Code R. 12D-13.001 Definitions

As used in this chapter, these definitions apply, unless the context clearly requires otherwise:

(1) “Calculated monthly” means monthly interest accrues as of the first day of the month, calculated by dividing the annual rate by twelve. For example, if the rate of interest is 18 percent per year, and a tax certificate is purchased on June 15, a full one and one-half percent is earned by the purchaser on July 1.

(2) “Clerk” means the Clerk of the Circuit Court.

(3) “Department” means the Department of Revenue.

(4) “Designated collection office” means any tax collector office location at which payments are accepted for property taxes.

(5) “Designated system” means an electronic payment system, provided by the tax collector or a vendor authorized by the tax collector, which allows payments to be made via the Internet.

(6) “Electronic means” includes any one or more methods of transmitting funds, information, or data: electronic data interchange, electronic funds transfer, telephone, Internet, or any other technology designated by a tax collector.

(7) “Express consent” means an affirmative action (written documentation or attestation by electronic signature) taken by or on behalf of a taxpayer to indicate agreement to receive bills or notices by electronic means (eBills and eNotices). After a taxpayer establishes “express consent,” the consent is valid until the taxpayer requests that eNotices or eBills be discontinued.

(8) “Payment” is any form of remittance required by the tax collector or clerk.

(9) “Struck off to the county” means that the tax collector issued an unsold tax certificate to the county commission.

(10) A “tax certificate” as defined in Section 197.102(1)(f), F.S.

(11) “Tax notice” as defined in Section 197.102(1)(g), F.S.

(12) “Tax receipt” as defined in Section 197.102(1)(h), F.S.

(13) “Taxes” are the total of ad valorem taxes and non-ad valorem assessments, including special assessments.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.027, 197.102, 197.172 FS. History–New 6-18-85, Formerly 12D-13.01, Amended 5-23-91, 2-25-96, 4-5-16.

Fla. Admin. Code R. 12D-13.002 When Taxes Are Due; Notice of Publication; Discount Payment Periods

(1) Taxes are due and payable November 1 of the year they are assessed, or as soon after November 1, as the tax collector receives the certified tax rolls. Taxes are delinquent on April 1 of the year following the year of assessment, or after 60 days have expired from the date the original tax notice is sent, whichever is later.

(a) The date of tax payment, the applicable discount if any, and whether the taxes were paid before the delinquency date is determined by:

1. The postmark for mailed tax payments,

2. The date the tax payment is submitted to the tax collector’s designated system for electronic payments.

(b) Tax payments received after the date of delinquency but postmarked or electronically submitted to the tax collector’s designated system before the date of delinquency are not delinquent.

(c) When the postmark or electronic submission date indicates that taxes are delinquent, the tax collector’s office must use the date the tax payment is received to determine if the tax payment was received before the tax certificate sale date and to determine penalties, advertising, and other costs.

(2) The tax collector must not accept partial tax payments or installment payments of taxes other than those authorized by statutes and these rules.

(3) The tax collector is required to collect the total amount due, including real and personal property taxes, non-ad valorem assessments, interest, penalties, fees, advertising and other costs, even when the total amount due exceeds the amount listed on the tax notice.

(4)(a) Tax payments made before delinquency are entitled to a discount at these rates:

1. Four percent in November,

2. Three percent in December,

3. Two percent in January,

4. One percent in February, and

5. Zero percent in March.

(b) Discounts must be allowed on tax payments for:

1. The current year, and

2. Back taxes and non-ad valorem assessments as provided in Section 193.092, F.S.

(c) If a discount period ends on a Saturday, Sunday or legal holiday, the discount period, including the zero discount period, is extended through the next working day for tax payments delivered to a tax collector’s designated collection office. This extension does not operate to extend any other discount period. Legal holiday means any day which, by the laws of Florida or the United States, is designated or recognized as a legal or public holiday.

1.a. If the tax notices are sent on or after November 2nd in any year so that a full 30-day four-percent discount period cannot be granted during November, the four-percent discount period extends into the following month of December to allow a full 30 days.

b. Example: Tax notices are sent on November 6. Taxpayers are granted a four-percent discount through December 5. The three-percent discount applies for the remainder of the month of December (December 6 through 31).

2.a. When the four-percent discount period begins after any of the monthly discount periods have expired, then any expired discount must not be allowed.

b. Example: Tax notices are sent on January 6. Taxpayers are granted a four-percent discount for 30 days which ends on February 4. For the remaining days in February, the one-percent discount authorized by law for February is granted. The three-percent discount normally granted for December, and the two-percent discount normally granted in January, do not apply.

3. If the tax notices are sent in March or later, the four-percent discount must extend for 30 days and the zero percent discount must be allowed for 30 days. Regardless of how late the tax notices are sent, there must be at least 60 days in which to pay taxes before delinquency: a four-percent discount period applies to the first 30 days and the applicable discount applies to the remaining time.

(d) The tax collector must begin accepting tax payments as soon as the tax notices are sent, even if sent before November 1. The four-percent discount applies to these early tax payments and extends through the month of November.

(5)(a) When a correction is made to a tax notice based on a taxpayer’s request or as a result of a petition to the value adjustment board (VAB), the discount rate that was valid at the time of the taxpayer’s request applies for 30 days after the corrected tax notice is sent.

(b) It is the property owner’s responsibility to make a timely request, but this does not prevent the tax collector or property appraiser from making corrections and sending corrected tax notices.

(6)(a) The published notice required by Section 197.322, F.S., must be large enough to be easily seen, i.e. at least 3 by 6 inches.

(b) This notice must be published on November 1, or as soon as the tax roll is open for collection. The tax collector may publish this notice in more than one publication of the same paper or in more than one newspaper.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.162, 197.322, 197.332, 197.333, 197.374 FS. History–New 6-18-85, Formerly 12D-13.02, Amended 12-13-92, 12-25-96, 12-30-99, 4-5-16.

Fla. Admin. Code R. 12D-13.003 Time of Final Settlement

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.413, 197.492, 213.05 FS. History–New 6-18-85, Formerly 12D-13.03, Repealed 12-31-98.

Fla. Admin. Code R. 12D-13.004 Interest on Delinquent Taxes

(1) Unpaid taxes on real and personal property are delinquent on April 1 of the year following the year of assessment, except when the tax roll certifications required by Section 193.122, F.S., are late and the tax notices are sent less than 60 days before April 1, following the year in which the taxes are assessed. In these cases, the delinquency date is the day after 60 days have expired from the date tax notices were sent.

(2) Delinquent real property taxes and non-ad valorem assessments are subject to interest at the rate required by Section 197.172, F.S., calculated monthly from the date of delinquency until the tax and non-ad valorem assessment is collected or a tax certificate is awarded. A minimum charge of three percent must be charged on delinquent real property taxes and non-ad valorem assessments.

(3) Delinquent personal property taxes are subject to interest at the rate required by Section 197.172, F.S., calculated monthly from the date of delinquency until paid or barred under Chapter 95, F.S.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.122, 197.172, 197.374 FS. History–New 6-18-85, Formerly 12D-13.04, Amended 4-5-16.

Fla. Admin. Code R. 12D-13.005 Discounts and Interest on Taxes When Parcel is Subject to Value Adjustment Board Review

(1) Taxpayers whose tax liability was altered as a result of a value adjustment board (VAB) action must have at least 60 days from the mailing of a corrected tax notice to pay unpaid taxes due before delinquency. During the first 30 days after a corrected tax notice is sent, a four-percent discount will apply. Thereafter, the regular discount periods will apply, if any. Taxes are delinquent on April 1 of the year following the year of assessment, or after 60 days have expired after the date the corrected tax notice is sent, whichever is later.

(2)(a) If the tax liability was not altered by the VAB, and the taxpayer owes ad valorem taxes in excess of the amount paid under Section 194.014, F.S., the unpaid amount is entitled to the discounts according to Section 197.162, F.S. If the taxes are delinquent, they accrue interest at the rate of 12 percent per year from the date of delinquency until the unpaid amount is paid. The three percent minimum interest for delinquent taxes assessed in Section 197.172, F.S., will not apply.

(b) If the VAB determines that a refund is due on all or a portion of the amount paid under Section 194.014, F.S., the overpaid amount accrues interest at the rate of 12 percent per year from the date taxes would have become delinquent until the refund is paid.

History

• Rulemaking Authority 194.034(1), 195.027(1), 213.06(1) FS. Law Implemented 194.014, 194.034, 197.162, 197.172 FS. History–New 6-18-85, Formerly 12D-13.05, Amended 4-5-16.

Fla. Admin. Code R. 12D-13.0055 Distribution to Taxing Authorities of Proceeds from the Sale of Seized Tangible Personal Property, the Sale or Redemption of Tax Certificates, or Tax Deed Sales

(1) SALE OF SEIZED TANGIBLE PERSONAL PROPERTY. After the sale of personal property, the tax collector must distribute the proceeds in this order:

(a) All expenses, fees and costs of selling the property must be paid.

(b)1. If the remaining funds are sufficient to pay the delinquent taxes and interest, the tax collector must distribute the appropriate proportion of the taxes and interest collected to each taxing authority.

2. If the remaining funds are not sufficient to pay the delinquent taxes and interest in full, the tax collector must distribute the appropriate proportion of the taxes and interest collected to each taxing authority and the deficit will be a general lien against all other personal property owned by the taxpayer.

(c) Any surplus proceeds from the sale must be returned to the property owner or the person who had possession at the time the property was seized.

(2) SALE OR REDEMPTION OF TAX CERTIFICATES; PROCEEDS FROM TAX DEED SALES.

(a)1.a. When a tax certificate not held by the county has been redeemed, in whole or in part, the tax collector must pay the certificate holder the whole or proportional amount of the certificate face amount plus accrued interest at the bid rate from the date of issuance to the date of redemption. If the accrued interest is less than five percent of the face amount of the certificate, the tax collector must pay the certificate holder a mandatory minimum interest of five percent of the face amount of the certificate.

b. Unclaimed redemption funds must be remitted to the state as provided in Sections 197.473, 717.113, and 717.117, F.S.

2.a. When tax certificates held by the county are purchased by an individual or redeemed in whole or in part, the tax collector must distribute the tax and interest to the various taxing authorities.

b. When a taxing authority has been abolished, the share it would have received should pass as directed by law. If the law contains no direction, the tax collector must distribute the abolished taxing authority’s share on a pro rata basis to the taxing authorities in existence at the time of purchase or redemption.

c. Taxing authorities not in existence when the taxes were levied are not entitled to share in the proceeds.

(b) Proceeds from tax deed sales must be distributed as provided in Section 197.582, F.S.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.374, 197.383, 197.472, 197.473, 197.582 FS. History‒New 4-5-16.

Fla. Admin. Code R. 12D-13.006 Procedure for the Correction of Errors by the Tax Collector; Correcting Erroneous or Incomplete Personal Property Assessments; Tax Certificate Corrections

(1) This rule applies to errors made by tax collectors in the collection of taxes on real and personal property. A tax collector may correct any error of omission or commission made by him or her, including those described in Rule 12D-8.021, F.A.C.

(2) The payment of taxes, interest, fees and costs will not be excused because of an error on the part of a property appraiser, tax collector, value adjustment board, board of county commissioners, clerk of the circuit court or newspaper in which an advertisement may be published. An error may be corrected at any time by the party responsible. The party who discovers the error must notify the party responsible for the error. Subject to the limitations in this rule section, the error must be corrected.

(3) The tax collector and the clerk must notify the property appraiser of the discovery of any errors on the prior year’s tax rolls when the property appraiser has not certified the current tax roll to the tax collector for collection.

(4) The tax collector shall correct errors on all tax rolls in his or her possession when the corrections are certified by the property appraiser, taxing districts or non-ad valorem districts, or approved by the value adjustment board.

(5) The tax collector must prepare and send an original tax notice as provided in Section 197.322, F.S., and send a duplicate tax notice, as provided in Section 197.344, F.S.

(6) When the correction of any error will increase the assessed valuation and subsequently the taxes, the property appraiser must notify the property owner of the owner’s right to petition the value adjustment board, except when a property owner consents to an increase, as provided in subsection (7) of this rule section and rule subsection 12D-8.021(10), F.A.C., or when the property appraiser has served a notice of intent to record a lien when the property has improperly received homestead exemption. However, this must not restrict the tax collector, clerk of the court, or any other interested party from reporting errors to the value adjustment board.

(7) If the value adjustment board has adjourned, the property owner must be granted these options when the correction of an error will increase the assessed valuation and subsequently the taxes. The options are:

(a) The property owner may consent to the increase in assessed valuation and subsequently the taxes by waiver, stating that he or she does not want to petition the value adjustment board and that he or she wants to pay the taxes on the current tax roll. If the property owner makes this waiver, the tax collector must proceed under Rule 12D-13.002, F.A.C.; or

(b) If the property owner decides to petition the value adjustment board, the property appraiser must notify the property owner and tax collector that the correction must appear on the subsequent year’s tax roll. The property owner will have the right to file a petition contesting the corrected assessment.

(8) When the property owner waives the right to petition the value adjustment board, the tax collector must prepare a corrected notice immediately and send it to the property owner.

(9) Correction of Erroneous or Incomplete Tangible Personal Property Assessments.

(a) If the property appraiser does not correct an erroneous or incomplete personal property assessment, the tax collector must report the assessment as an error or insolvency on the final report to the Board of County Commissioners.

(b) When personal property being levied on cannot be identified, it is the responsibility of the property appraiser to provide necessary information to identify the property. This applies to all assessments.

(c) Tax returns on file in the property appraiser’s office may be used to identify property. The return may be used to identify property at risk of being removed from the county before payment of taxes.

(10) Double Assessments. When a tax collector discovers property that has been assessed more than once for the same year’s taxes, he or she must collect only the tax due. The tax collector must notify the property appraiser that a double assessment exists and furnish the information as shown on the tax roll to substantiate the double assessment. After receiving notification from the tax collector, the property appraiser must proceed under rule subsection 12D-8.021(11), F.A.C.

(11) Tax Certificate Corrections and Collections.

(a) When a correction in assessment, or any other error that can be corrected, is certified to the tax collector on property on which a tax certificate has been sold, the tax collector must submit a request to correct or cancel the tax certificate to the Department. If the Department approves the request to correct or cancel the tax certificate, according to Section 197.443, F.S., the tax collector must notify the certificate holder and any affected taxing jurisdictions.

(b) If the tax collector issues a tax certificate against a parcel of real property which is subject to the protection of a United States Bankruptcy Court, the Department must approve the cancellation of the certificate when requested by the tax collector.

(c) When a tax certificate has been canceled or corrected, the tax collector must correct the tax certificate records and notify the certificate holder it has been corrected or canceled.

(d) When the correction results in a reduction in the face amount of the tax certificate, the holder of the certificate is entitled to a refund of the amount of the reduction plus interest at the rate bid, not to exceed eight percent annually. Interest must be calculated monthly from the date the certificate was purchased to the date the refund is issued.

(e) This subsection applies to all tax certificates even if a tax deed application has been filed with the tax collector and advertised by the clerk.

(f) When a void tax certificate or tax deed must be cancelled as provided by law, the tax collector must complete and send Form DR-510, Cancellation or Correction of Tax Certificate, incorporated by reference in Rule 12D-16.002, F.A.C., to the Department and add a memorandum of error to the list of tax certificates sold.

(12) Corrections to a non-ad valorem assessment must be prepared by the local governing board that prepared and certified the roll for collection, consistent with Rule 12D-18.006, F.A.C.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.122, 197.123, 197.131, 197.322, 197.323, 197.344, 197.432, 197.442, 197.443, 197.444, 197.492, 197.593 FS. History–New 6-18-85, Formerly 12D-13.06, Amended 5-23-91, 12-10-92, 12-25-96, 12-31-98, 4-5-16.

Fla. Admin. Code R. 12D-13.007 Cutouts, Time for Requesting and Procedure

(1) When property has been properly assessed in the name of the owner as of January 1 of the tax year, the property appraiser may not cancel the tax assessment because of a sale of the whole or a part of the property. The tax assessment is against the property, not the owner.

(2) When the new owner or the original owner or a designated representative of either party requests to pay taxes on his or her share of the property, the property appraiser must calculate the amount of the tax assessment on that portion. The request for a cutout must be submitted to the tax collector on Form DR-518, Cutout Request, incorporated by reference in Rule 12D-16.002, F.A.C. A cutout may be requested from November 1, or as soon as the tax collector receives the certified tax roll, until 45 days before the tax certificate sale.

(3) The party requesting the cutout is required to furnish proof to substantiate the claim. Proof is established through legally competent evidence, such as a recorded instrument that clearly reflects an ownership or possessory interest in the real property involved.

(4) The tax collector must forward the completed DR-518 to the property appraiser, who must return it within ten days.

(5) If taxes remain unpaid on any portion of the original or cutout property and become delinquent, the tax collector must advertise and sell tax certificates.

(6) If the request for cutout occurs after the property has been advertised for delinquent taxes, but 45 days or more before the tax certificate sale, then the tax collector must prorate the interest and advertising cost.

(7) If the request for a cutout is less than 45 days before the tax certificate sale and the taxes are unpaid, the tax collector may sell a tax certificate. If a tax certificate is sold, the property owner can redeem a portion of the tax certificate when the completed DR-518 is returned by the property appraiser. The partial redemption is made by paying the taxes, interest and fees for the cutout.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.343, 197.373, 197.432, 197.472 FS. History–New 10-12-76, Formerly 12D-12.46, 12D-12.046, Amended 4-5-16.

Fla. Admin. Code R. 12D-13.008 Discounts, Errors, Double Assessments, and Insolvencies Report

(1) By the 60th day after the tax certificate sale is completed, the tax collector must provide a report to the Board of County Commissioners on Discounts, Errors, Double Assessments, and Insolvencies, Form DR-505, Report of Discounts, Errors, Double Assessments, and Insolvencies, incorporated by reference in Rule 12D-16.002, F.A.C. For each tax roll, the report must show the name to whom credit was allowed, the property identification number, amount of taxes reduced from the roll, and the reason for the reduction. This detailed information is not required for payment discounts that were allowed. The report may be submitted in an electronic format.

(2) It is not necessary for the tax collector to have a certificate of correction from the property appraiser on each item that appears on the report.

(3) When the tax collector has proof an error has occurred, the tax collector must place this error or correction on the report. A certificate of correction is only one method of offering proof to the tax collector that an error has occurred. (See Rule 12D-13.006, F.A.C.)

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.492 FS. History–New 6-18-85, Formerly 12D-13.08, Amended 4-5-16.

Fla. Admin. Code R. 12D-13.009 Refunds

(1) DEFINITIONS.

(a) “Claim,” “application,” or “request” for refund is the submission of a completed Form DR-462, Application for Refund of Ad Valorem Taxes, incorporated by reference in Rule 12D-16.002, F.A.C., when required, to the tax collector.

(b) “Certificate of correction” is Form DR-409, Certificate of Correction of Tax Roll, incorporated by reference in Rule 12D-16.002, F.A.C. A letter from the property appraiser will not substitute for this form.

(c) “Overpayment” is:

1. A tax payment made in excess of the amount owed, due to an error. Examples include a mathematical error by a taxpayer or failure to take the applicable discount.

2. A tax payment determined to be in excess of the amount owed as determined due by a final order of a value adjustment board (VAB) or court, and not subject to an assertion. A refund request for these overpayments does not need to be accompanied by a certificate of correction from the property appraiser for that tax year. See Section 197.323(1), F.S.

(d) “Payment made in error” or “taxes paid in error” is any payment made by a taxpayer on the wrong parcel.

(e) “Payment when no tax was due” is:

1. A payment on a property not subject to taxes for that year, either because the property was not taxable on January 1 or an exemption should have been properly and timely applied.

2. A payment on property which was immune or exempt under federal or other controlling law. If a tax certificate has been sold, it is unenforceable and must be cancelled.

3. Examples include:

a. Payment on a state right of way or other exempt or immune governmental property.

b. Payment on an exempt property which had a timely exemption application but was not granted on the tax roll. This includes a postal/delivery error certified by the U.S. Postal Service or mailing service.

c. Illegal or unconstitutional levies with a court ordered refund of the taxes paid.

(f) “Taxpayer” is the person who paid the taxes or redeemed the tax certificate or tax deed.

(2) REQUIRED PRE-APPLICATION PROCEDURES FOR TAXES PAID IN ERROR.

(a) As provided in Sections 197.182(1)(a)4. and 5., F.S., if the taxpayer’s attempt to receive reimbursement from the property owner is not successful, the taxpayer may submit a refund request to the tax collector.

(b) After determining the refund is due, the tax collector must:

1. Cancel the payment,

2. Issue a full refund to the taxpayer from undistributed funds being held for distribution to the taxing authorities. If these funds are not sufficient, the tax collector must bill the appropriate taxing authorities for their proportionate share.

(c) The tax collector must proceed with collection of the unpaid taxes:

1. If the taxes are not delinquent, the tax collector must send a bill to the property owner. If taxes are paid before delinquency, the property owner is entitled to the appropriate discounts.

2. If taxes are delinquent, the tax collector must proceed with collection as described in Section 197.182(3), F.S. Interest accrues on these delinquent taxes as prescribed by Chapter 197, F.S.

(3) TIME LIMITATIONS AND REQUIRED FORM FOR REQUESTING A REFUND; RESTRICTIONS ON APPLICATIONS FOR REFUND; GENERAL APPLICATION PROCEDURES.

(a)1. A completed and signed application Form DR-462 is required for a refund, except when the tax collector and property appraiser have jointly established procedures for corrections based on current year’s taxes that are not initiated by a property owner.

2. A completed and signed Form DR-462 must be provided within the time limits in Section 197.182(1)(e), F.S., except for a payment made in error, defined in Sections 197.182(1)(a)4. and 5., F.S.

(b) The time limit to submit a claim for refund in Section 197.182(1)(e), F.S., does not apply to or bar refunds resulting from cancellation of void or corrected tax certificates and release of tax deeds. Refunds may be granted for void and corrected tax certificates when a completed and signed application for refund is submitted during the seven-year life of the certificate, as specified in Section 197.482, F.S.

(c) A tax collector must accept and review all completed and signed applications for refund.

(4) REQUESTS FOR REFUND TO BE DETERMINED BY THE TAX COLLECTOR; PROCEDURES.

The tax collector must approve or deny refunds:

(a) Described in Sections 197.182(1)(b), (c), and (d), F.S., without an order from the Department or regard to the amount of the refund claimed; or

(b) Based on a correction which results in a refund of less than $2,500 for each tax year, as provided by Section 197.182(1)(k), F.S.

(5) REQUESTS FOR REFUND THAT MUST BE SUBMITTED TO THE DEPARTMENT FOR DETERMINATION; PROCEDURES. The tax collector must forward completed and signed refund applications described in Sections 197.182(1)(a)1. through 6. and paragraph (1)(k), F.S., with all application documentation to the Department.

(6) DENIAL OF A REQUEST FOR REFUND; NOTICE TO APPLICANT; CONTESTING A DENIAL.

(a) An applicant must be notified when a refund request has been denied as provided in Sections 197.182(1)(f) and (m), F.S.

(b) The notification must include the procedures for contesting the denial, as provided in Sections 194.171 and 197.182(1)(m), F.S.

(7) PROCEDURES FOR PAYING AN APPROVED REFUND APPLICATION. After a refund application is approved by the tax collector or the Department, the refund amount must be paid to the applicant as provided in Sections 197.182(1)(d), (g), and (k), F.S., and in Rule 12D-13.0055, F.A.C.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 194.171, 197.122, 197.123, 197.131, 197.182, 197.2301, 197.323, 197.332, 197.343, 197.432, 197.443, 197.473, 197.482, 197.492, 197.502, 197.582 FS. History–New 6-18-85, Formerly 12D-13.09, Amended 12-10-92, 12-31-98, 12-30-99, 12-30-02, 4-5-16.

Fla. Admin. Code R. 12D-13.010 Destruction of Twenty-Year-Old Tax Receipts

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 119.041, 119.09 FS. History–New 6-18-85, Formerly 12D-13.10, Amended 12-13-92, 1-2-01, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.011 Lien of Taxes

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 192.053, 193.092, 197.122, 197.332, 197.432 FS. History–New 6-18-85, Formerly 12D-13.11, Amended 12-13-92, 12-31-98, 12-30-02, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.012 Payment of Taxes Before Platting

Land must not be subdivided or any plat filed until all taxes due and payable have been paid. At the request of the property appraiser, the tax collector must determine if there are any delinquent taxes, outstanding tax certificates or omitted years’ taxes due by searching the property tax payment records for a period of twenty years. When necessary, the tax collector must certify that all taxes have been paid.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 95.281, 197.192 FS. History–New 6-18-85, Formerly 12D-13.12, Amended 4-5-16.

Fla. Admin. Code R. 12D-13.013 Unpaid Taxes, Litigation, Sale of Tax Certificates or Issuance of Tax Warrants

(1) This rule applies when a taxpayer contests a tax assessment in circuit court. It does not apply when contesting an assessment before a value adjustment board (see Rule 12D-13.005, F.A.C.).

(2) As provided in Section 194.171(3), F.S., a taxpayer must pay the amount he or she admits is owed to the tax collector before he or she can bring an action to contest a tax assessment. The tax collector must issue a receipt that contains the name of the person appearing on the tax roll, the year of assessment, legal description, the date and amount paid.

(3) When the assessed value of several parcels is being contested according to Section 194.171, F.S., the taxpayer must make a written statement as to the amount he or she admits is owed on each parcel. If there are several parcels of property assessed and included on one tax notice, the property owner must prepare a statement admitting the amount owed on each parcel. The tax collector’s receipt must show each parcel and the taxpayer’s payment for each parcel. The tax collector must not issue a receipt without a written statement by the taxpayer.

(4)(a) A partial payment of taxes as required by Section 194.171(3), F.S., and the timely filing of a complaint according to Section 194.171(2), F.S., suspends all procedures for the collection of taxes for the contested year until a final disposition of the action is rendered by the court. On the recapitulation of the tax roll, the tax collector must show the unpaid portion as currently in litigation.

(b) A partial payment of taxes as required by Section 194.171(3), F.S., without the timely filing of a complaint for the contested year according to Section 194.171(2), F.S., does not suspend the procedures for the collection of any unpaid amounts.

(5)(a) If the termination of litigation or the non-filing of a timely court action occurs during the delinquent period for all other parcels, the tax collector must:

1. Collect the taxes due within 30 days. No discount, interest, penalties, or fees will apply during this time.

2. If taxes remain unpaid, they will be delinquent and all applicable fees and interest will be due. Procedures for advertising, tax certificate sale and issuance of tax warrants as described in Chapter 197, F.S. and this rule must be followed.

(b) When the court awards interest or penalties on the unpaid portion of taxes in litigation, the interest or penalties must be distributed to the taxing authorities in their pro rata share.

(6) When assessments on the current tax roll are involved in bankruptcy proceedings and the court has ordered the tax collector not to collect the taxes due, the tax collector may accept full payment of the taxes due if offered.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 194.171, 194.192, 194.211, 197.333, 197.383 FS. History–New 6-18-85, Formerly 12D-13.13, Amended 12-27-94, 4-5-16.

Fla. Admin. Code R. 12D-13.014 Penalties or Interest, Collection on Roll

(1)(a) When a property appraiser is required by law to impose penalties, he or she must list the penalties on the tax roll for collection by the tax collector.

(b) When a tax collector is required by law to levy penalties, he or she must collect the penalties.

(c) When either official makes an error levying or collecting penalties, the official responsible for the error must correct it.

(2) The tax collector must collect the entire penalty and interest. If the tax and non-ad valorem assessments are collected within the period of time for receiving a discount, the tax collector must only allow the discounts on the taxes and non-ad valorem assessments.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.072, 193.122, 197.162 FS. History–New 6-18-85, Formerly 12D-13.14, Amended 12-31-98, 12-3-01, 4-5-16.

Fla. Admin. Code R. 12D-13.015 Posting of Tax Roll, Delivery of Tax Roll to Tax Collector and Clerk, and Destruction of Tax Rolls

(1) The property appraiser must certify the tax roll to the tax collector, value adjustment board, Board of County Commissioners, any taxing district, and any municipality. For taxing districts and municipalities, it is only necessary to certify that part of the roll that applies to each. The clerk must accept the copy of the tax roll that the property appraiser certifies to the tax collector.

(2) The tax collector must deliver the original tax roll to the clerk after completing the collection of taxes, selling certificates for non-payment of taxes and balancing the rolls to account for all taxes. The final posted copy of the roll is considered to be the original and may be in electronic format. The certificates of the value adjustment board and the property appraiser must be provided to the clerk with the certified tax roll and may be in electronic format.

(3) Any time after the tax collector delivers a copy of the original tax roll to the clerk, the clerk may destroy copies of the tax rolls that were previously delivered to his or her office. (See Rule 12D-8.017, F.A.C.) The original tax roll may not be destroyed by the clerk or any other officer or person until written permission has been obtained from the Florida Department of State.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.114, 193.116, 193.122, 197.322, 197.323, 197.332 FS. History–New 6-18-85, Formerly 12D-13.15, Amended 1-16-06, 4-5-16.

Fla. Admin. Code R. 12D-13.016 Procedure, Property Acquired by a Governmental Unit, Payment of Taxes, Escrow Account

(1)(a) When any governmental unit purchases or acquires property for government purposes by any means except condemnation, the person who is transferring the property must pay all unpaid taxes, including the current year’s taxes prorated to the date of transfer of title. This amount is held in escrow by the tax collector of the county where the property is located.

(b) When there is no current assessment, the property appraiser must provide an estimate of the value to be placed on the current tax roll to the tax collector.

(c) If the current year ad valorem millage or non-ad valorem assessment is not available, the millage or assessment used in the calculation for the previous tax year must be used to compute the prorated taxes.

(2) If the procedure for acquiring the property does not require a determination by a court of law, then it is the purchaser’s responsibility to ensure that the deposit of the current year’s tax prorated to the date of transfer of title is made to the tax collector.

(3)(a) Immediately after receiving the tax roll, the tax collector must prorate the taxes from January 1 until the day of taking or transfer based on the number of days the property was in possession of the seller. Unless stated otherwise, the date shown on the deed is the day of transfer and the last day of ownership by the seller.

(b) After determining the tax liability, overpayments must be refunded according to Section 197.182, F.S. When the amount paid by the owner does not cover the amount of taxes due from January 1 until transfer, the unpaid taxes are considered canceled on the tax roll and the List of Errors, Insolvencies and Double Assessments. The Board of County Commissioners may cancel the unpaid portion of taxes due according to Section 196.28 or 196.29, F.S.

(4) The tax collector must deposit all funds received under this section in an escrow account. The tax collector must always furnish a receipt for the amount paid to the person making the payment.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.28, 196.29, 196.295, 197.182, 197.492 FS. History–New 6-18-85, Formerly 12D-13.16, Amended 4-5-16.

Fla. Admin. Code R. 12D-13.017 Distribution of Fractions of One Cent on Real and Personal Property Taxes Collected

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.383, 213.05 FS. History–New 6-18-85, Formerly 12D-13.17, Repealed 12-31-98.

Fla. Admin. Code R. 12D-13.019 Collection of Interest or Penalties on Back Assessments

The tax collector must collect back assessments as provided in Section 193.092, F.S., together with taxes for the current year. If the back assessments are unpaid as of the date of delinquency, they will be subject to the same procedures as the current year’s taxes. As with the current year’s taxes, discounts and interest apply to taxes and non-ad valorem assessments only.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.092, 197.152, 197.172 FS. History–New 6-18-85, Formerly 12D-13.19, Amended 12-3-01, 4-5-16.

Fla. Admin. Code R. 12D-13.020 Dishonored Checks Received for Payment of Taxes and Tax Certificates, Procedure

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.162, 197.332, 197.333, 197.383, 197.432, 197.4325 FS. History–New 6-18-85, Formerly 12D-13.20, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.021 Computerized Mass Payment of Real Estate Taxes

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.162, 197.322, 197.332, 197.333, 197.344 FS. History–New 6-18-85, Formerly 12D-13.21, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.022 Installment Taxes: Filing of Applications, Preparation and Sending of Tax Notices, Delinquencies, Termination of Installment Plan

(1) The tax collector must notify taxpayers of their right to pre-pay taxes and non-ad valorem assessments by installment, as provided in Section 197.222(5), F.S.

(2)(a) Any taxpayer who chooses to pay taxes by the installment method must file an application with the tax collector by the statutory deadline for each tax notice. Taxpayers must use application Form DR-534, Application for Installment Payment of Property Taxes, incorporated by reference in Rule 12D-16.002, F.A.C.

(b) The postmark, electronic submission or delivery date of each application determines whether the application was filed on time. A taxpayer who does not file on time cannot participate in the installment payment plan for that year.

(3) After receiving a timely application, the tax collector must prepare and send quarterly installment tax notices with the discount rates provided by Section 197.222, F.S. Tax notices for installment payments may be sent early, but must be sent so the taxpayer has at least 30 days to pay and receive the appropriate discount.

(4) Estimated taxes for installment payments must be divided into four payments to be made in June, September, December, and March. The December and March installment payments must be adjusted to reflect the increase or decrease of the current year’s taxes.

(5) A taxpayer who applies to make installment payments and makes the first payment on time is required to pay by installments for that year. The taxpayer may pay installments before they are due if the current year’s tax roll is open for collection. When paid early, the taxpayer is only entitled to the discounts applicable to the installment payments and not to the discounts applicable to annual payments under Section 197.162, F.S.

(6) When an application to pay taxes by installment has been filed on time and the property is then transferred in whole or part by any method, the new owner(s) must continue the installment payment plan for that tax year. The taxpayer may pay installments before they are due if the current year’s tax roll is open for collection. When paid early, the taxpayer is only entitled to the discounts applicable to the installment payments and not to the discounts applicable to annual payments under Section 197.162, F.S.

(7) When the property has been divided, the owner(s) must file a request for cutout with the tax collector. Cutouts may be processed at any time in the payment schedule. Each cutout will continue to be paid by installment for that tax year and is subject to the same discounts and deadlines as the original tax bill.

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 192.048, 195.022, 197.162, 197.222, 197.3632 FS. History–New 6-18-85, Formerly 12D-13.22, Amended 12-13-92, 4-5-16.

Fla. Admin. Code R. 12D-13.023 Installment Taxes: Distribution of Taxes and Interest, Schedule

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.222, 197.383, 219.075 FS. History–New 6-18-85, Formerly 12D-13.23, Amended 12-30-97, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.024 Installment Taxes: Tax Collector to Mail Applications

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.222, 197.322, 197.3632 FS. History–New 6-18-85, Formerly 12D-13.24, Amended 12-13-92, 12-30-02, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.025 Installment Taxes: Who May File an Application; Minimum Tax Bill

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.222, 197.3632 FS. History–New 6-18-85, Formerly 12D-13.25, Amended 5-23-91, 12-13-92, 12-25-96, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.026 Installment Taxes: Preparation and Mailing of Tax Notices

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.222 FS. History–New 6-18-85, Formerly 12D-13.26, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.027 Installment Taxes: Filing of Applications, Payment Schedules, Delinquencies, Termination of Installment Plan

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.222, 197.3632, 197.432 FS. History–New 6-18-85, Formerly 12D-13.27, Amended 5-23-91, 12-13-92, 12-30-97, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.028 Homestead Tax Deferral ‒ Definitions

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.243, 197.252, 197.2524, 197.263 FS. History–New 6-18-85, Formerly 12D-13.28, Amended 12-20-01, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.0283 Property Tax Deferral – Application; Tax Collector Responsibilities for Notification of Approval or Denial; Procedures for Taxes, Assessments, and Interests Not Deferred

(1) To participate in the tax deferral program, a property owner must submit an annual application to the tax collector by March 31 following the year in which the taxes and non-ad valorem assessments are assessed. A taxpayer must use Form DR-570, Application for Homestead Tax Deferral; Form DR-570AH, Application for Affordable Housing Property Tax Deferrral; or Form DR-570WF, Application for Recreational and Commercial Working Waterfronts Property Tax Deferral, which are all incorporated by reference in Rule 12D-16.002, F.A.C. Each application for tax deferral must be signed and dated by the applicant, and, if mailed, must be postmarked by March 31.

(2) The tax collector must send notification of approval or disapproval to each taxpayer who files an application for tax deferral. Form DR-571A, Disapproval of Application For Tax Deferral, incorporated by reference in Rule 12D-16.002, F.A.C., must be used to notify the applicant that the application was disapproved.

(a) If the tax collector approves an application for tax deferral, he or she must include the amount of any taxes, non-ad valorem assessments, and interest not deferred with the notification of approval.

(b) Any taxes, non-ad valorem assessments, and interest not deferred are eligible for the discount rate applicable to early payments as of the date the application was submitted, provided that the amount not deferred is paid within 30 days of the approval date.

(3) Outstanding taxes, non-ad valorem assessments, or tax certificates not deferred must be collected as provided in this rule chapter and are unaffected by the deferral of taxes for any other year.

(4) The tax collector must send a current bill for each year.

(5) If the application for tax deferral is denied, the tax must be paid at the discount or interest rate provided in Section 197.162 or 197.172, F.S.

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.162, 197.172, 197.2421, 197.2423, 197.252 FS. History‒New 4-5-16.

Fla. Admin. Code R. 12D-13.0285 Property Tax Deferral – Procedures for Reporting the Current Value of All Outstanding Liens

(1) By November 1 of each year, the tax collector must notify each owner of homestead property on which taxes have been deferred to report the current value of all outstanding liens on the property. Within 30 days of notification, the owner must submit a list of all outstanding liens with the current value of all liens.

(2) The “current value of all outstanding liens” means the amount necessary to retire all unpaid principal debts, accrued interest and penalties for which a lien acts as security. The current value must be computed on the date that the property owner responds to the tax collector’s notification according to Section 197.263(4), F.S. The current value is presumed to remain unchanged until the next annual determination, unless the tax collector receives actual notice of a change in the current value.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.263 FS. History–New 4-5-16.

Fla. Admin. Code R. 12D-13.0287 Property Tax Deferral – Appeal of Denied Tax Deferral and Imposed Penalties

(1) Any applicant denied a property tax deferral may appeal the tax collector’s decision to the value adjustment board (VAB). The petition must be filed with the VAB within 30 days after the tax collector sends the notice of denial.

(2) Any tax deferral applicant or recipient may appeal any penalties imposed on them to the VAB. The petition must be filed with the VAB within 30 days after the penalties are imposed.

(3) The petition must be filed using Form DR-486DP, Petition to The Value Adjustment Board ‒ Tax Deferral or Penalties ‒ Request for Hearing, incorporated by reference in Rule 12D-16.002, F.A.C.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.2425, 197.301(2) FS. History–New 4-5-16.

Fla. Admin. Code R. 12D-13.029 Property Tax Deferral ‒ Sale of Deferred Payment Tax Certificates; Collection of Delinquent Undeferred and Deferred Taxes

Deferred payment tax certificates will be issued for all deferred taxes, but these tax certificates are exempt from the advertisement and public sale provisions of Section 197.432 or 197.4725, F.S. The tax collector must strike off each deferred payment tax certificate to the county.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.262 FS. History–New 6-18-85, Formerly 12D-13.29, Amended 5-23-91, 12-13-92, 4-5-16.

Fla. Admin. Code R. 12D-13.030 Homestead Tax Deferral ‒ Adjustment of Current Year’s Income

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.252, 197.3632 FS. History–New 6-18-85, Formerly 12D-13.30, Amended 12-13-92, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.031 Homestead Tax Deferral – Application; Approval; Income and Age Requirements; Outstanding Liens and Primary Mortgage

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 196.031, 196.075, 197.2423, 197.243, 197.252, 197.3632 FS. History–New 6-18-85, Formerly 12D-13.31, Amended 12-13-92, 10-2-07, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.032 Homestead Tax Deferral – Payment of Tax

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.162, 197.172, 197.253, 197.3632 FS. History–New 6-18-85, Formerly 12D-13.32, Amended 12-13-92, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.033 Homestead Tax Deferral – Notification to Tax Deferral Recipients

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.253, 197.263 FS. History–New 6-18-85, Formerly 12D-13.33, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.034 Homestead Tax Deferral – Proof of Insurance

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.2423, 197.263 FS. History–New 6-18-85, Formerly 12D-13.34, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.035 Homestead Tax Deferral – Property Appraiser to Notify Tax Collector of Denial of Homestead Application

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.252, 197.263 FS. History–New 6-18-85, Formerly 12D-13.35, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.0355 Deferred Tax on Lands Subject to Development Right Conveyances and Conservation Restriction Covenants

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.501, 704.06 FS. History–New 4-18-94, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.036 Advertisement of Property with Delinquent Taxes

(1) The advertisement must include:

(a) A distinctive title (e.g., “Notice of Tax Certificate Sale”);

(b) The date and time the sale will begin;

(c) The location of the sale, including city and county, or the website on which the sale will be conducted (if by electronic means);

(d) A statement explaining the sale, specifying the amount due, and explaining that the amount due on each parcel includes costs, interest and prorated advertising costs, as well as taxes and non-ad valorem assessments;

(e) The person in whose name the property is assessed; and,

(f)1. The legal description as shown on the tax roll, or the parcel identification number or other information which identifies the property on the current tax roll.

2. If the parcel identification number is used, this language must be included in the newspaper notice of sale:

See Current Tax Roll for

Complete Legal Description.

(2)(a) The tax collector may list all lots to be sold that are owned by the same taxpayer in a subdivision under one subdivision heading. For example: Wild Subdivision, Lot 1, Block A, Lot 6, Block R.

(b) To apportion the advertising costs among the parcels of property, the costs of the subdivision heading will be prorated to all parcels advertised in that particular subdivision. The cost of advertising legal descriptions may be computed on a flat rate basis, regardless of the length of the description.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.402, 197.413 FS. History–New 6-18-85, Formerly 12D-13.36, Amended 3-15-94, 12-27-94, 12-31-98, 4-5-16.

Fla. Admin. Code R. 12D-13.037 Collection of Taxes Before Certified Roll

The tax collector must not accept payment of taxes until the tax roll has been certified according to Section 193.122(2), F.S., except when:

(1) A taxpayer files a complaint before certification and makes payment according to Section 194.171(3), F.S.

(2) The tax collector must collect payment of prorated taxes on land acquired by a governmental unit after January 1, but before November 1 of the tax year, as provided in Section 196.295, F.S. (For the procedure to determine proration, see Rule 12D-13.016, F.A.C.)

(3) Collection under an interim assessment roll has been approved according to Section 193.1145, F.S.

(4) Collection of installment taxes are made according to Section 197.222, F.S.

(5) Collection of estimated taxes are made according to Section 197.2301, F.S.

History

• Rulemaking Authority 193.1145(9), 195.022, 195.027(1), 213.06(1) FS. Law Implemented 193.1145, 193.122, 194.171, 196.295, 197.222, 197.2301 FS. History–New 6-18-85, Formerly 12D-13.37, Amended 5-23-91, 12-13-92, 12-25-96, 12-3-01, 4-5-16.

Fla. Admin. Code R. 12D-13.038 Notice of Ad Valorem Taxes and Non-Ad Valorem Assessments

(1) Form DR-528, Notice of Ad Valorem Taxes and Non-Ad Valorem Assessments (example only), incorporated by reference in Rule 12D-16.002, F.A.C, must comply with Section 197.3635, F.S.

(2) The tax collector may include an additional statement with the notice of ad valorem taxes and non-ad valorem assessments offering an explanation of any item on the notice.

History

• Rulemaking Authority 195.022, 195.027(1), 197.3635, 213.06(1) FS. Law Implemented 197.3635 FS. History–New 6-18-85, Formerly 12D-13.38, Amended 5-23-91, 1-11-94, 4-5-16.

Fla. Admin. Code R. 12D-13.039 Tax Certificate Notice

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.322, 197.343, 197.3632, 197.3635 FS. History–New 6-18-85, Formerly 12D-13.39, Repromulgated 5-23-91, Amended 12-13-92, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.040 Notice to Mortgagee of Real and Personal Property Taxes

It is the responsibility of the mortgagee, lienholder or vendee requesting information under Section 197.344, F.S., to provide his or her most current address to the tax collector so that the notice is sent to the proper address.

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.344 FS. History–New 6-18-85, Formerly 12D-13.40, Amended 4-5-16.

Fla. Admin. Code R. 12D-13.041 Notice of Delinquent Real Property Taxes to Owners of Subsurface Rights

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 193.481, 197.343, 197.502 FS. History–New 6-18-85, Formerly 12D-13.41, Amended 1-11-94, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.042 Delinquent Personal Property Taxes, Warrants, Seizure, Fees of Tax Collectors

(1)(a) A petition filed under Section 197.413(2), F.S., must request the court to authorize the collection of all costs and fees that any public official may expend or charge in their official duty of levying on, seizing, and selling personal property.

(b) Costs and fees which may be authorized include, but are not limited to:

1. A pro rata portion of the filing fee,

2. The fee charged by the clerk for taxpayer notification that a petition was filed,

3. A pro rata portion of the advertising fees or charges,

4. A pro rata portion of the attorney’s fees incurred in the filing of the petition,

5. Statutory fees of the tax collector, sheriff and clerk,

6. Storage fees,

7. Transportation costs, and

8. Insurance fees.

(2) The tax collector may include all delinquent personal property accounts on one petition, or may file several petitions which include any number of delinquent taxpayers the tax collector determines to be necessary.

(3) When the tax collector determines that the property appraiser has assessed personal property with an incomplete or improper identification, and the tax collector cannot proceed under Section 197.413, F.S., the tax collector must notify the property appraiser that the property is not properly described or identified.

(4)(a) Form DR-517, Tax Collector’s Warrant, incorporated by reference in Rule 12D-16.002, F.A.C., may be used to notify the sheriff in the county where the tangible personal property is located, that the court has validated a warrant authorizing the seizure and sale of the tangible personal property to collect delinquent taxes as provided in Section 197.413, F.S.

(b) Form DR-517L, Execution and Warrant for Collection of Delinquent Ad Valorem Leasehold Taxes, incorporated by reference in Rule 12D-16.002, F.A.C., must be used to notify a lessee that the court has validated a warrant authorizing the seizure and sale of real property or tangible personal property or both to collect delinquent taxes as provided in Sections 197.413 and 197.417, F.S.

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.332, 197.412, 197.413, 197.417 FS. History–New 6-18-85, Formerly 12D-13.42, Amended 5-23-91, 12-13-92, 12-27-94, 4-5-16.

Fla. Admin. Code R. 12D-13.044 Sale of Personal Property After Seizure

(1)(a) Personal property which is seized for delinquent taxes must be sold at public auction as authorized by Section 197.417, F.S. The tax collector is entitled to the same fees and charges allowed to sheriffs for execution sales according to Section 30.231, F.S.

(b) Form DR-514, Notice of Sale of Tangible Personal Property for Delinquent Taxes, incorporated by reference in Rule 12D-16.002, F.A.C., must be used to notify the owner of a scheduled public auction to sell the seized tangible personal property.

(2) In addition to the advertisement required by Section 197.417, F.S. the tax collector may also advertise in other publications, such as trade journals and newspapers.

(3)(a) When multiple items are seized, the tax collector must sell each item separately except when separate sale of the items would reduce the sale price of the whole, or when the items of property would be damaged or otherwise not bring the highest possible prices.

(b) If there are no bids, the tax collector may terminate the sale, readvertise, and sell the property at a later date.

(4) When the tax collector sells multiple items of property and the sale satisfies the tax lien and all costs and fees, but additional levied property exists, the tax collector may:

(a) Turn the remaining property over to the owner or last possessor of the property;

(b) Return excess property to the location where it was seized.

(5) If the property is sold for more than the total amount due, the surplus shall be returned to either the owner of the property or to the person who had possession of the property at the time of seizure.

(6) A sale or conveyance of personal property for taxes is valid, except on proof that the:

(a) Property was not subject to taxation; or

(b) Taxes were paid before the sale of personal property; or

(c) Tax warrant for the collection of delinquent personal property taxes has been barred by the statute of limitation provided in Section 197.416, F.S.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 30.231, 197.122, 197.416, 197.417, 197.443 FS. History–New 6-18-85, Formerly 12D-13.44, Amended 5-23-91, 12-13-92, 4-5-16.

Fla. Admin. Code R. 12D-13.045 Sale of Tax Certificates for Unpaid Taxes

(1) The tax certificate sale must begin by June 1 or the 60th day after the date of delinquency, whichever is later.

(2) At the tax collector’s discretion, the tax certificate sale may be conducted over multiple days. The tax collector may not conclude the tax certificate sale until all tax certificates are sold or struck off to the county.

(3) The face amount of the tax certificate must include:

(a) Delinquent taxes;

(b) Interest which has accrued between the date of delinquency and the date of sale calculated monthly, at a rate of 18 percent per year;

(c) Costs and any other charges, including advertising charges; and,

(d) The tax collector’s commission.

(4)(a) All delinquent property taxes and non-ad valorem assessments included on the tax notice due on a parcel in any one year must be combined into one tax certificate.

(b) When the property appraiser has back assessed property and has placed the assessment or assessments on the tax roll according to Rule 12D-8.006, F.A.C., and the taxes become delinquent, the tax collector must advertise and sell a tax certificate for each assessment for back taxes that is delinquent.

(5)(a) Form DR-509, Tax Certificate, incorporated by reference in Rule 12D-16.002, F.A.C., is the suggested form for issuing a tax certificate to a purchaser.

(b) Form DR-509D, Deferred Payment Tax Certificate, incorporated by reference in Rule 12D-16.002, F.A.C., is the suggested form for issuing a deferred payment tax certificate to a county.

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.122, 197.402, 197.432 FS. History–New 6-18-85, Formerly 12D-13.45, Amended 5-23-91, 12-13-92, 12-28-95, 1-26-04, 4-5-16.

Fla. Admin. Code R. 12D-13.0455 Electronic Issuance of Tax Certificates

Tax Collectors having the ability to issue tax certificates electronically may, in lieu of issuing individual document tax certificates for each tax certificate sold, issue a listing of tax certificates sold to each purchaser or county. An entry on the list constitutes the tax certificate document and must contain the name of the purchaser, the amount of each tax certificate purchased, the property identification number and interest percentage bid.

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.432 FS. History–New 5-23-91, Amended 4-5-16.

Fla. Admin. Code R. 12D-13.046 Taxation of Governmental Property Under Lease to Non-Governmental Lessee

(1) When property owned by a governmental unit is leased to a non-governmental lessee and is not exempt from taxation, the tax must be assessed to the lessee.

(2) If no rental payments are due pursuant to the agreement creating the leasehold estate, or if the property meets the requirements of Section 196.199(7), F.S., the leasehold estate must be taxed as real property.

(3) Taxes relating to government property, levied on a leasehold that is taxed as real property under Section 196.199(2)(b), F.S., must be paid by the lessee. If such taxes are not paid, the delinquent taxes become a lien on the leasehold and may be collected and enforced under the provisions of Sections 197.412 and 197.413, F.S.

(4) If rental payments are due, the leasehold estate shall be taxed as intangible personal property under Chapter 199, F.S., and delinquencies shall be processed as in the case of other intangible personal property.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.199, 197.412, 197.413 FS. History–New 6-18-85, Formerly 12D-13.46, Amended 1-11-94, 4-5-16.

Fla. Admin. Code R. 12D-13.047 Tax Certificates on Certain Homestead Property

(1) In deciding if a tax certificate can be sold at public sale, the tax collector must determine the homestead exemption status of the property for each year delinquent taxes are assessed. The issuance of a tax certificate in any previous year does not affect this determination.

(2) The county may sell any certificates issued to it under Section 197.432(4), F.S., if the person who received the homestead exemption for the year the delinquent taxes were assessed no longer has homestead exemption on the property.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.432 FS. History–New 6-18-85, Formerly 12D-13.47, Amended 5-23-91. 4-5-16.

Fla. Admin. Code R. 12D-13.048 Interest Rate on Tax Certificates

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.432 FS. History–New 6-18-85, Formerly 12D-13.48, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.049 Disposition of Real and Tangible Personal Property Taxes When Bankruptcy Is Filed

History

• Rulemaking Authority 195.027 FS. Law Implemented 197.404, 197.412, 197.413, 197.414, 197.416, 197.417, 197.432, 197.502 FS. History–New 6-18-85, Formerly 12D-13.49, Repealed 12-31-98.

Fla. Admin. Code R. 12D-13.050 Validity of Tax Certificates Sold on “Improvements Only” on Real Property Tax Rolls

(1) Tax certificates must not be sold on assessments of “improvements” which have been conveyed to personal property by deed, contract, or other written instrument.

(2) The property classification must determine the tax roll on which the property should appear and the method of collecting the tax should it become delinquent.

(3) When it is determined that property on which a tax certificate has been issued should have been on the personal property tax roll, the tax certificate must be canceled by the Department when requested by the tax collector.

(4) When personal property was assessed on the real property tax roll and a tax certificate issued, the assessment against the property owner may be enforced within the same time and manner as other personal property taxes.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 196.199, 197.432, 197.443 FS. History–New 6-18-85, Formerly 12D-13.50, Amended 4-5-16.

Fla. Admin. Code R. 12D-13.051 General Rules Governing Redemption, Purchase, or Transfer of Tax Certificates

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.3632, 197.432, 197.433, 197.462, 197.472, 197.473 FS. History–New 6-18-85, Formerly 12D-13.51, Amended 5-23-91, 12-13-92, 12-27-94, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.052 Redemption or Purchase of Tax Certificates Belonging to the County

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.172, 197.3632, 197.432, 197.446, 197.472 FS. History–New 6-18-85, Formerly 12D-13.52, Amended 5-23-91, 12-13-92, 12-31-98, 12-30-02, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.053 Redemption of Tax Certificates Sold to Purchaser Other than County

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.3632, 197.472 FS. History–New 6-18-85, Formerly 12D-13.53, Amended 5-23-91, 12-13-92, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.054 Transfer of Tax Certificates Sold to Purchaser Other than County

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.462, 197.472 FS. History–New 6-18-85, Formerly 12D-13.54, Amended 5-23-91, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.055 Redemption of Property After the Clerk Receives the Tax Collector’s Certification

(1) Anyone who wants to redeem property as authorized in Section 197.472(1), F.S., must pay the following costs, which accrue until the clerk issues a tax deed to the purchaser:

(a) All costs, charges, amounts paid for all tax certificates and delinquent taxes, interest, and fees that the applicant has paid.

(b) All other costs that the tax collector incurred to process the tax deed application or that the clerk incurred to schedule or conduct a tax deed sale.

(2) To process a redemption request, the clerk must:

(a) Direct the person who wants to redeem the property to the tax collector.

(b) Return to the tax collector:

1. The tax deed application, and

2. A statement of all costs and fees paid to or incurred by the clerk and sheriff in connection with the tax deed application.

(3)(a) After receiving the required information from the clerk, the tax collector must allow the redemption of the tax deed application.

(b) The redemption amount is the total of the:

1. Original amount certified by the tax collector to the clerk,

2. Costs and fees of the clerk and the sheriff,

3. Tax deed applicant’s statutory interest according to Section 197.542, F.S., and

4. Redemption fee as authorized by Section 197.472 (3), F.S.

(c) When all other tax certificates on the property involved in the tax deed application have been redeemed or canceled in connection with the tax deed application, only the tax certificate on which the tax deed application is based is outstanding.

(4)(a) After payment of all taxes, costs, fees and interest, the tax collector must record the payment and redemption of the tax deed application.

(b) Within 15 business days after receiving the redemption, the tax collector must pay the applicant all funds received for the redemption of the tax deed application as provided in Section 197.472(5), F.S.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.472, 197.502, 197.542 FS. History–New 6-18-85, Formerly 12D-13.55, Amended 12-31-98, 4-5-16.

Fla. Admin. Code R. 12D-13.056 Record of Tax Certificates Sold

The following information must be recorded:

(1) The information required in Section 197.432(9), F.S.

(2) The cancellation of tax certificates, including date of cancellation.

(3) The date a certificate, or portion of a certificate, expired or was redeemed, purchased or transferred, and the name of the transferee or person redeeming or purchasing it, including the amount paid.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.432, 197.472 FS. History–New 6-18-85, Formerly 12D-13.56, Amended 4-5-16.

Fla. Admin. Code R. 12D-13.057 Cancellation of Void Tax Certificates and Tax Deeds; Procedure

When a void tax certificate or tax deed must be cancelled as provided by law, the tax collector must complete and send Form DR-510, Cancellation or Correction of Tax Certificate, incorporated by reference in Rule 12D-16.002, F.A.C., to the Department and add a memorandum of error to the list of tax certificates sold.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.182, 197.443, 197.444, 197.447 FS. History–New 6-18-85, Formerly 12D-13.57, Amended 5-23-91, 12-31-98, 7-1-99, 4-5-16.

Fla. Admin. Code R. 12D-13.058 Cancellation of Tax Certificates, Suit by Holder

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.182, 197.432, 197.443, 197.444 FS. History–New 6-18-85, Formerly 12D-13.58, Amended 5-23-91, 12-31-98, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.059 Statute of Limitations on Tax Certificates and Tax Warrants

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 95.051, 194.171, 197.3632, 197.416, 197.482 FS. History–New 6-18-85, Formerly 12D-13.59, Amended 12-13-92, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.060 Application for Obtaining Tax Deed by Certificate Holder; Fees

(1) PROCEDURE: APPLICATION FOR TAX DEED BY COUNTY. Each year, the tax collector must notify the board of county commissioners or the governing board of the county of all county held tax certificates for which a tax deed can be applied under Section 197.502(3), F.S.

(2) PROCEDURE: APPLICATION FOR TAX DEED BY CERTIFICATE HOLDERS OTHER THAN THE COUNTY.

(a) The tax deed application, Form DR-512 (Notice to Tax Collector of Application for Tax Deed, incorporated by reference in Rule 12D-16.002, F.A.C.), is not considered complete until all required taxes, interest, costs and fees have been paid as required by Section 197.502(2), F.S.

(b) If the application is not completed by the applicant, the tax collector may cancel the application and no payments made by the applicant will be refunded.

(c) If the applicant is the only tax certificate holder of record on the property included in the application, then it is not necessary for the applicant to redeem certificates he or she owns in connection with the application for tax deed. However, the certificates must be surrendered and the face value of all surrendered certificates must be included in the opening bid.

(d)1. Consolidated applications may be accepted, at the tax collector’s discretion, using a single Form DR-512.

2. The tax collector may collect a $75 fee for each separate tax deed application.

3. For each parcel included in a consolidated application, there must be separate:

a. Certifications on Form DR-513 (Tax Collector’s Certification, incorporated by reference in Rule 12D-16.002, F.A.C.), issued by the tax collector according to Section 197.502, F.S.;

b. Statements as provided by Section 197.502(4), F.S.; and,

c. Tax deeds issued according to Section 197.502(9), F.S.

(3) PROCEDURE AFTER APPLICATION IS MADE – ALL CERTIFICATES.

(a) After receiving the property information report, the tax collector must prepare and deliver a certification to the clerk on Form DR-513, and attach a certification of the names and addresses of those persons who must be notified, as required by Section 197.502(4), F.S.

(b) The tax collector must calculate and enter the interest accrued, from the month after the date of application through the month in which the Form DR-513 is certified to the clerk.

(c)1. The clerk must advertise and administer the tax deed sale and must receive fees as provided in Section 28.24, F.S. All fees must be paid to the clerk before the tax deed is issued.

2. A resale is subject to the requirements of Sections 197.502 and 197.542, F.S. As provided in these statutes, the clerk is only required to attempt to hold one tax deed resale. If a resale cannot be conducted as provided in these statutes, the clerk must put the land on the list of “lands available for taxes.”

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.502, 197.542, 197.582 FS. History–New 6-18-85, Formerly 12D-13.60, Amended 5-23-91, 12-13-92, 1-11-94, 12-25-96, 12-31-98, 1-26-04, 12-30-04, 4-5-16, 1-8-19.

Fla. Admin. Code R. 12D-13.061 Minimum Standards for Property Information Reports Made in Connection with Tax Deed Applications

(1) Property information reports must cover a minimum of 20 years before the tax deed application.

(2) The tax collector may choose to accept the property information report in paper or electronic form.

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.502 FS. History–New 6-18-85, Formerly 12D-13.61, Amended 12-3-01, 12-30-04, 4-5-16, 1-8-19.

Fla. Admin. Code R. 12D-13.062 Notices; Advertising, Mailing, Delivering and Posting of Notice of Tax Deed Sale

(1)(a) After receiving the tax collector’s certification and the tax deed application, the clerk must publish a notice of the pending sale once each week for four consecutive weeks in a local newspaper.

(b)1. Proof of publication may be copies of all four advertisements showing the date the advertisements were published. The four advertisements must remain intact with the date line of the paper shown.

2. Proof of advertisement may also be in the form of a publisher’s affidavit with one copy of the advertisement attached.

(c)1. The form of the notice and the information it contains must be substantially as follows:

NOTICE OF APPLICATION FOR TAX DEED

The holder of the following tax certificates has filed the certificates for a tax deed to be issued. The certificate numbers and years of issuance, the description of the property, and the names in which it was assessed are:

___ Certificate No./Year of Issuance/Description of Property/Name in which assessed

All of the property is in _________ County, Florida.

Unless the certificate or certificates are redeemed according to law, the property described in the certificate or certificates will be sold to the highest bidder on _______ (date and time).

Clerk of Circuit Court, ___________ County, Florida Ad No. ___

2. The notice must be single column and the size of the print must be the same as any other legal advertisement. The clerk must not consolidate legal advertisements of tax deed applications with different legal descriptions.

(2) Clerk’s Responsibilities for Delivery to the Sheriff.

(a) If the owner resides in the same county where the property is located, the clerk must deliver an original plus sufficient copies of the notice to the sheriff of that county.

(b) If the owner resides in Florida outside the county where the property is located, the clerk must deliver an original plus sufficient copies of the notice to the sheriff of the county in which the property is located, unless the property is assessed as non-agricultural acreage or vacant land.

(c) If the owner resides outside the State of Florida, the clerk must send notice to the sheriff of the county where the property is located, unless the property is assessed as non-agricultural acreage or vacant land.

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 197.502, 197.512, 197.522, 197.542 FS. History–New 6-18-85, Formerly 12D-13.62, Amended 12-3-01, 1-26-04, 4-5-16, 1-8-19.

Fla. Admin. Code R. 12D-13.0625 Priority for Fee Owners of Subsurface Rights

When a tax certificate on subsurface rights is purchased by the fee owner and an application for a tax deed is started under Section 197.502, F.S., the fee owner is in the same position as other bidders at the clerk’s sale. Priority extends only to the purchase of a tax certificate by the fee owner and does not extend to the purchase of any tax deed.

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 193.481, 197.343, 197.502 FS. History–New 4-5-16.

Fla. Admin. Code R. 12D-13.063 Tax Deed Sale at Public Auction

(1)(a) The statutory (opening) bid required by the clerk at the sale must be the sum of:

1. Current taxes, if due,

2. All outstanding tax certificates redeemed or surrendered,

3. Any delinquent taxes and non-ad valorem assessments,

4. The amount of the tax certificate on which the application for tax deed is based,

5. The tax collector’s fees and costs as specified,

6. The sheriff’s fees for delivering and posting notices,

7. The clerk’s fees and costs according to Section 28.24, F.S.,

8. Interest on the total, computed at 1.5 percent per month, beginning the month after the date of application and continuing through the month of the sale, and

9. All tax certificates that were sold.

(b) If the property is assessed on the latest tax roll as homestead, the opening bid shall be increased to include an amount equal to one-half of the assessed value of the property as listed on the current year’s tax roll.

(2)(a) A tax deed must have only one legal description on the deed.

(b) Consolidated sales are prohibited.

(c) The clerk must sell the land in each tax deed application separately.

(3) If there are no bids higher than the statutory opening bid, the property must be sold to the certificate holder. The certificate holder is required to pay to the clerk all amounts included in the statutory bid, applicable documentary stamp tax and recording fees.

(4) The clerk must use the form prescribed by the Department of Revenue, Form DR-506, Tax Deed, incorporated by reference in Rule 12D-16.002, F.A.C.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 28.24, 197.502, 197.542, 197.552 FS. History–New 6-18-85, Formerly 12D-13.63, Amended 5-23-91, 12-13-92, 1-2-01, 12-3-01, 4-5-16, 1-8-19.

Fla. Admin. Code R. 12D-13.064 Lands Available for Taxes

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 125.411, 197.447, 197.502, 197.542 FS. History–New 6-18-85, Formerly 12D-13.64, Amended 12-30-99, 1-26-04, 12-30-04, Repealed 4-5-16.

Fla. Admin. Code R. 12D-13.065 Disbursement of Sale Proceeds

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 195.022, 197.473, 197.502, 197.522, 197.532, 197.542, 197.582, 298.36, 298.365, 298.366, 298.465, 298.54 FS. History–New 6-18-85, Formerly 12D-13.65, Amended 1-26-04, 4-5-16, Repealed 1-8-19.

Fla. Admin. Code R. 12D-13.066 Procedure, Tax Deed Corrections and Cancellations

(1) Tax deeds already issued may only be canceled, set aside or determined to be void by a judicial decree.

(2)(a) When a tax deed has been issued incorrectly and the tax deed holder agrees to transfer the tax deed to the county the clerk must refund to the tax deed holder the amount paid for the tax deed plus any subsequent taxes paid as provided by Section 197.542, F.S.

(b) If the tax deed is voluntarily surrendered, it is not necessary for the clerk to obtain a judicial determination of the validity of the tax deed.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 197.443, 197.542 FS. History–New 6-18-85, Formerly 12D-13.66, Amended 4-5-16.

Fla. Admin. Code R. 12D-13.067 Tax Collector’s Certification, Murphy Act Lands

History

• Rulemaking Authority 195.022, 195.027(1), 213.06(1) FS. Law Implemented 195.002, 195.022, 253.82 FS. History–New 6-18-85, Formerly 12D-13.67, Amended 12-31-98, Repealed 4-5-16.

Chapter 12D-15 APPROVED BIDDERS AND THE MINIMUM STANDARDS CONTRACT

Fla. Admin. Code R. 12D-15.001 Certification for Approved Bidder’s List

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.095, 213.05 FS. History–New 11-9-76, Formerly 12D-15.01, Amended 11-21-91, 4-18-94, Repealed 1-11-11.

Fla. Admin. Code R. 12D-15.004 General Provisions of Minimum Standards Contract

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.095, 213.05 FS. History–New 11-9-76, Formerly 12D-15.04, Repealed 1-11-11.

Fla. Admin. Code R. 12D-15.005 Minimum Standards Contract Provisions for Mass Data Reappraisals

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.095, 213.05 FS. History–New 11-9-76, Formerly 12D-15.05, Repealed 1-11-11.

Fla. Admin. Code R. 12D-15.006 Minimum Standards Contract Provisions for Computer Software Development

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.095, 213.05 FS. History–New 11-9-76, Formerly 12D-15.06, Repealed 1-11-11.

Fla. Admin. Code R. 12D-15.007 Minimum Standards Contract Provisions for Procurement of Electronic Data Processing Equipment

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.095, 213.05 FS. History–New 11-9-76, Formerly 12D-15.07, Repealed 1-11-11.

Fla. Admin. Code R. 12D-15.008 Minimum Standards Contract Provisions for Data Processing Services

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.095, 213.05 FS. History–New 11-9-76, Formerly 12D-15.08, Repealed 1-11-11.

Fla. Admin. Code R. 12D-15.009 Supplemental Agreement to Minimum Standards Contract

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 195.095, 213.05 FS. History–New 11-9-76, Formerly 12D-15.09, Repealed 1-11-11.

Chapter 12D-16 ADMINISTRATION OF FORMS

Fla. Admin. Code R. 12D-16.001 Administration of Forms

(1) The Department shall prescribe all forms and instructions relating to their use, which shall be uniform throughout the state, to be used by county property appraisers, county tax collectors, clerks of the circuit court, and value adjustment boards in administering and collecting ad valorem taxes.

(2) Counties shall reproduce forms for distribution at the county officer’s expense.

(3) The Department shall prescribe one form for each purpose. Each form shall be uniform throughout the state as to size, content, layout dimensions and construction.

(4) The Executive Director may redesign any form as to size, shape, arrangement of content and number of copies for the more efficient and economical use of such form and for the inclusion of any additional statement or data specifically authorized by statute, and revise the instructions for use of such form without the formal approval of the head of the Department.

(5) A county officer may use a substitute form other than the form prescribed by the Department at the expense of his or her office and upon obtaining written permission from the Executive Director or the Executive Director’s designee. If the Executive Director, or the Executive Director’s designee, finds good cause to grant such permission, the county officer may continue to use the approved substitute form until any law that authorizes or affects the form is amended, repealed, or a letter of disapproval is issued by the Executive Director or the Executive Director’s designee.

(a) Should the Department promulgate an amendment to a current Department form, such approval for the local official substitute form will be rendered invalid and the local officials and their employees shall use the forms and follow the instructions of the forms furnished to them by the Department until such time as an amended substitute form is approved by the Executive Director or the Executive Director’s designee.

(b) The Executive Director, or his or her designee, shall find good cause to grant permission to use a substitute form when all of the following requirements have been met:

1. A substitute form request has been made in writing on official stationery by the county officer, or his or her designee, from the office using the form,

2. A camera ready copy or facsimile of the substitute form accompanies the request,

3. The substantive content of the substitute form is “materially identical” to the content and intended purpose or use of the form prescribed by the Department,

4. The substitute form is authorized by applicable law and rules,

5. There is no pending legislation or rule amendment which will affect the usage of the form,

6. The official sets forth justification of the need for the substitute form, including reasons for additions, deletions or other changes that alter the content of the Department’s prescribed form; and,

7. The official has certified that the form is necessary, beneficial, and will not create any delay or impairment to the production of a lawful tax roll or the collection of tax, and the Executive Director, or his or her designee, so finds.

(6) Individual officers may use supplemental forms, produced at their own expense, which they deem expedient for the purpose of administering and collecting ad valorem taxes within their own jurisdictions. Such supplemental forms may be used in conjunction with and not be substituted for, nor used in lieu of, the forms prescribed by the Department.

History

• Rulemaking Authority 195.027(1), 213.06(1) FS. Law Implemented 193.052, 195.002, 195.022 FS. History–New 10-12-76, Amended 4-11-80, Formerly 12D-16.01, Amended 1-11-94, 12-27-94, 12-30-04, 11-1-12.

Fla. Admin. Code R. 12D-16.002 Index to Forms

(1) The following paragraphs list the forms adopted by the Department of Revenue. A copy of these forms may be obtained at floridarevenue.com/property/forms, or by writing to: Property Tax Oversight Program, Department of Revenue, Post Office Box 3000, Tallahassee, Florida 32315-3000. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY). The Department of Revenue adopts, and incorporates by reference in this rule, the following forms and instructions:

Form Number

Form Title

Effective Date

(2)

DR-401

Private Car and Freight Line Equipment Companies Annual Report and Return to the State of Florida (r. 12/11)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01733

11/12

(3)(a)

DR-402

Declaration of Mobile Home as Real Property

6/83

(b)

DR-403

Tax Roll Certification (r. 6/11)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01734

11/12

(4)

DR-403BM

Recapitulation of Taxes as Extended on the ____ Tax Rolls; Municipalities (r. 6/11)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01735

11/12

(5)(a)

DR-403CC

Recapitulation of Taxes as Extended on the ____ Tax Rolls; County Commission School Board, and Taxing Districts (r. 6/11)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01736

11/12

(b)

DR-403EB

The 20XX Ad Valorem Assessment Rolls Exemption Breakdown of ____ County, Florida (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19029

02/26

(6)(a)

DR-403PC

The Value and Number of Parcels on the Real Property Countywide Assessment Roll by Category (r. 6/11)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01738

11/12

(b)

DR-403V

The 20XX Revised Recapitulation of the Ad Valorem Assessment Roll Value Data (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19030

02/26

(7)(a)

DR-404PA

Property Appraiser Budget Amendment/Transfer (r. 3/08)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01740

11/12

(b)

DR-404TC

Tax Collector Budget Amendment/Transfer (r. 3/08)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01741

11/12

(c)

DR-405

Tangible Personal Property Tax Return (r. 1/18)

https://www.flrules.org/Gateway/reference.asp?No=Ref-09019

1/18

(d)

DR-405W

Notice to Taxpayer Whose Tangible Personal Property Return was Waived in the Previous Year (n. 12/08)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01744

11/12

(8)(a)

DR-408

Certificate to Roll (r. 6/91)

6/91

(b)

DR-408A

Certificate to Non-Ad Valorem Assessment Roll (n. 2/91)

2/91

(9)(a)

DR-409

Certificate of Correction of Tax Roll (r. 4/16)

https://www.flrules.org/Gateway/reference.asp?No=Ref-06493

4/16

(b)

DR-409A

Certificate of Correction of Non-Ad Valorem Assessment Roll (r. 12/96)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01815

1/04

(10)

DR-412

Notice of Intent (r. 12/92)

12/92

(11)(a)

DR-416

Physician’s Certification of Total and Permanent Disability (r. 01/25)

https://www.flrules.org/Gateway/reference.asp?No=Ref-18022

04/25

(b)

DR-416B

Optometrist’s Certification of Total and Permanent Disability (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01748

11/12

(12)(a)

DR-418

Economic Development Ad Valorem Property Tax Exemption (r. 12/99)

1/00

(b)

DR-418C

Real Property Dedicated in Perpetuity for Conservation, Exemption Application (r. 09/17)

https://www.flrules.org/Gateway/reference.asp?No=Ref-08604

09/17

(13)(a)

DR-420

Certification of Taxable Value (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19031

02/26

(b)

DR-420DEBT

Certification of Voted Debt Millage (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19032

02/26

(c)

DR-420FC

Distribution to Fiscally Constrained Counties Application (r. 08/25)

https://www.flrules.org/Gateway/reference.asp?No=Ref-18432

08/25

(d)

DR-420MM

Maximum Millage Levy Calculation, Final Disclosure (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19033

02/26

(e)

DR-420MM-P

Maximum Millage Levy Calculation, Preliminary Disclosure (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19034

02/26

(f)

DR-420S

Certification of School Taxable Value (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19035

02/26

(g)

DR-420TIF

Tax Increment Adjustment Worksheet (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19036

02/26

(14)(a)

DR-421

Certification for Taxing Authorities That Do Not Levy Ad Valorem Taxes

(r. 01/26) https://www.flrules.org/Gateway/reference.asp?No=Ref-19037

02/26

(b)

DR-422

Certification of Final Taxable Value (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19038

02/26

(c)

DR-422DEBT

Certification of Final Voted Debt Millage (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19039

02/26

(d)

DR-430

Change of Ownership or Control Non-Homestead Property (n. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01762

11/12

(e)

DR-430M

Change of Ownership or Control, Multiple Parcels (n. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01763

11/12

(f)

DR-431

Voluntary Disclosure of Property (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01764

11/12

(15)

DR-452

Return of Real Property in Attempt to Establish Adverse Possession Without Color of Title (r. 12/20)

https://www.flrules.org/Gateway/reference.asp?No=Ref-12414

12/20

(16)(a)

DR-453

Notice of Tax Lien for Exemptions and Assessment Limitations (r. 01/25)

https://www.flrules.org/Gateway/reference.asp?No=Ref-18023

04/25

(b)

DR-453B

Notice of Tax Lien for Assessment of Escaped Taxes (r. 4/16)

https://www.flrules.org/Gateway/reference.asp?No=Ref-06509

4/16

(17)(a)

DR-462

Application for Refund of Ad Valorem Taxes (r. 08/25)

https://www.flrules.org/Gateway/reference.asp?No=Ref-18433

08/25

(b)

DR-465

Application for Catastrophic Event Tax Refund (r. 11/23)

https://www.flrules.org/Gateway/reference.asp?No=Ref-16055

11/23

(18)

DR-470A

Railroad Company Annual Report and Return to the State of Florida (r. 12/11)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01767

11/12

(19)(a)

DR-471

Railroad Distribution Sheet (r. 1/95)

11/12

(b)

DR-474

Notice of Proposed Property Taxes (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01768

11/12

(c)

DR-474M

Amended Notice of Proposed Property Taxes (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01769

11/12

(d)

DR-474N

Notice of Proposed Property Taxes and Proposed or Adopted Non-Ad Valorem Assessments (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01770

11/12

(20)

DR-481

Value Adjustment Board – Notice of Hearing (r. 01/17)

https://www.flrules.org/Gateway/reference.asp?No=Ref-07705

01/17

(21)(a)

DR-482

Application and Return for Agricultural Classification of Lands (r. 01/23)

https://www.flrules.org/Gateway/reference.asp?No=Ref-14889

1/23

(b)

DR-482C

Land Used for Conservation, Assessment Application (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01771

11/12

(c)

DR-482CR

Land Used for Conservation, Assessment Reapplication (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01772

11/12

(d)

DR-482HW

Application and Return for High-Water Recharge Classification of Lands

(n. 12/99)

1/00

(e)

DR-482HP

Application and Return for Classification/Exemption of Property as Historic Property Used for Commercial or Certain Nonprofit Purposes (r. 12/04)

12/04

(f)

DR-483

Request for Extension of the Time for Completion of Assessment Roll(s)

8/89

(22)

DR-484

Budget Form for Property Appraisers (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01773

11/12

(23)

485 Series:

(a)

DR-485C

Decision of the Value Adjustment Board – Catastrophic Event Tax Refund (r. 11/23)

https://www.flrules.org/Gateway/reference.asp?No=Ref-16057

11/23

(b)

DR-485D

Decision of the Value Adjustment Board – Denial for Non-Payment (n. 11/23)

https://www.flrules.org/Gateway/reference.asp?No=Ref-16058

11/23

(c)

DR-485M

Notice of Decision of the Value Adjustment Board (r. 11/23)

https://www.flrules.org/Gateway/reference.asp?No=Ref-16063

11/23

(d)

DR-485R

Value Adjustment Board – Remand to Property Appraiser (n. 12/09)

3/10

(e)

DR-485V

Decision of The Value Adjustment Board – Value Petition (r. 11/23)

https://www.flrules.org/Gateway/reference.asp?No=Ref-16059

11/23

(f)

DR-485WCN

Value Adjustment Board – Clerk’s Notice (r. 01/17)

https://www.flrules.org/Gateway/reference.asp?No=Ref-07707

01/17

(g)

DR-485WI

Value Adjustment Board – Withdrawal of Petition

(r. 01/17) https://www.flrules.org/Gateway/reference.asp?No=Ref-07708

01/17

(h)

DR-485XC

Decision of the Value Adjustment Board – Exemption, Classification, Assessment Difference Transfer, Change of Ownership or Control, or Qualifying Improvement Petition (r. 11/23)

https://www.flrules.org/Gateway/reference.asp?No=Ref-16062

11/23

(24)(a)

DR-486

Petition to The Value Adjustment Board – Request for Hearing (r. 11/23)

http://www.flrules.org/Gateway/reference.asp?No=Ref-16061

11/23

(b)

DR-486A

Written Authorization for Representation Before the Value Adjustment Board (n. 01/17)

https://www.flrules.org/Gateway/reference.asp?No=Ref-07711

01/17

(c)

DR-486DP

Petition to The Value Adjustment Board – Tax Deferral or Penalties – Request for Hearing (r. 01/17)

https://www.flrules.org/Gateway/reference.asp?No=Ref-07712

01/17

(d)

DR-486POA

Power of Attorney for Representation Before the Value Adjustment Board (r. 12/20)

https://www.flrules.org/Gateway/reference.asp?No=Ref-12415

12/20

(e)

DR-486PORT

Petition to The Value Adjustment Board – Transfer of Homestead Assessment Difference – Request for Hearing (r. 04/18)

https://www.flrules.org/Gateway/reference.asp?No=Ref-09242

04/18

(f)

DR-486XCO

Cross-County Notice of Appeal and Petition – Transfer of Homestead

Assessment Difference (r. 12/09)

3/10

(25)(a)

DR-487

Certification of Compliance (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19040

02/26

(b)

DR-487V

Vote Record for Final Adoption of Millage Levy (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19041

02/26

(26)(a)

DR-488

Certification of The Value Adjustment Board (r. 12/09)

3/10

(b)

DR-488P

Initial Certification of the Value Adjustment Board (n. 12/09)

3/10

(27)

DR-489

Tax Roll Certification (r. 6/11)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01781

11/12

(28)(a)

DR-489EB

The 20XX Ad Valorem Assessment Rolls Exemption Breakdown of ____ County, Florida (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19042

02/26

(b)

DR-489PC

The Value and Number of Parcels on the Real Property Countywide Assessment Roll by Category (r. 6/11)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01783

11/12

(c)

DR-489V

The 20XX Preliminary Recapitulation of the Ad Valorem Assessment Roll, Value Data (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19043

02/26

(29)(a)

DR-490

Notice of Disapproval of Application for Property Tax Exemption or Classification by The County Property Appraiser (r. 08/25)

https://www.flrules.org/Gateway/reference.asp?No=Ref-18434

08/25

(b)

DR-490PORT

Notice of Denial of Transfer of Homestead Assessment Difference (r. 11/23)

https://www.flrules.org/Gateway/reference.asp?No=Ref-16060

11/23

(30)(a)

DR-492

Return of Pollution Control Devices for Ad Valorem Tax Purposes (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01786

11/12

(b)

DR-493

Adjustments Made to Recorded Selling prices or Fair Market Value in Arriving at Assessed Value (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01787

11/12

(31)

DR-498

Renewal Application for Total or Partial Property Tax Exemption (r. 1/93)

1/93

(32)

DR-498AR

Removal of Total or Partial Exemption [front side of form]; Automatic Renewal of Total or Partial Exemption [back side of form] (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01788

11/12

(33)(a)

DR-498R

Renewal Application for Total or Partial Property Tax Exemption – Receipt

(r. 6/91)

6/91

(b)

DR-499

Renewal Application for Agricultural or High-Water Recharge Classification

of Lands (r. 12/96)

12/96

(c)

DR-499AR

Removal of Agricultural or High-Water Recharge Classification [front side of form]; Automatic Renewal of Agricultural or High-Water Recharge Classification [back side of form] (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01789

11/12

(d)

DR-499C

Renewal and Certification of Agricultural Classification of Lands (r. 12/03)

1/04

(34)

DR-499R

Renewal Application for Agricultural Classification of Lands – Receipt (r. 6/91)

6/91

(35)

DR-500

Renewal Application for Homestead and Related Tax Exemptions (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01790

11/12

(36)

DR-500AR

Removal of Homestead Exemption(s) [front side of form]; Automatic Renewal for Homestead Exemption [back side of form] (r. 01/22)

https://flrules.org/gateway/reference.asp?No=Ref-14390

01/22

(37)

DR-500R

Renewal Application for Homestead and Related Tax Exemptions – Receipt

(r. 6/91)

6/91

(38)(a)

DR-501

Original Application for Homestead and Related Tax Exemptions (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19044

02/26

(b)

DR-501A

Statement of Gross Income (r. 12/20)

https://www.flrules.org/Gateway/reference.asp?No=Ref-12416

12/20

(c)

DR-501CC

Ad Valorem Tax Exemption Application and Return for Proprietary Continuing Care Facility (r. 11/21)

https://www.flrules.org/Gateway/reference.asp?No=Ref-13836

11/21

(d)

DR-501DV

Application and Return for Homestead Tax Discount, Veterans Age 65 and Older with a Combat-Related Disability and Surviving Spouse (r. 11/21)

https://www.flrules.org/Gateway/reference.asp?No=Ref-13833

11/21

(e)

DR-501M

Deployed Military Exemption Application (r. 09/17)

https://www.flrules.org/Gateway/reference.asp?No=Ref-08605

09/17

(f)

DR-501PGP

Application for Assessment Reduction for Living Quarters of Parents or Grandparents (r. 08/25)

https://www.flrules.org/Gateway/reference.asp?No=Ref-18436

08/25

(g)

DR-501RVSH

Certificate for Transfer of Homestead Assessment Difference (r. 11/21)

https://www.flrules.org/Gateway/reference.asp?No=Ref-13834

11/21

(h)

DR-501SC

Household Income Sworn Statement and Return (r. 01/22)

https://flrules.org/gateway/reference.asp?No=Ref-14391

01/22

(i)

DR-501T

Transfer of Homestead Assessment Difference, Attachment to Original Application for Homestead Tax Exemption (r. 12/08)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01800

11/12

(j)

DR-501TS

Designation of Ownership Shares of Abandoned Homestead (r. 12/20)

https://www.flrules.org/Gateway/reference.asp?No=Ref-12417

12/20

(k)

DR-501V

Tentative Eligiblity Verification for Certain Exemptions (n. 01/25)

https://www.flrules.org/Gateway/reference.asp?No=Ref-18027

04/25

(39)(a)

DR-502

Tax Collector’s Recapitulation of the Tax Roll (r. 6/85)

6/85

(b)

DR-503

Tax Collector’s Recapitulation of the Non-Ad Valorem Assessment Levy

(r. 12/05)

1/06

(c)

DR-503NA

Tax Collector’s Report on Non-Ad Valorem Assessments Collected on the Notice of Taxes (r. 6/09)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01801

11/12

(40)(a)

DR-504

Ad Valorem Tax Exemption Application and Return for Charitable, Religious, Scientific, Literary Organizations, Hospitals, Nursing Homes, and Homes for Special Services (r. 11/21)

https://www.flrules.org/Gateway/reference.asp?No=Ref-13835

11/21

(b)

DR-504AFH

Ad Valorem Tax Exemption Application and Return for Affordable Housing Property (r. 01/26)

https://www.flrules.org/Gateway/reference.asp?No=Ref-19045

02/26

(c)

DR-504CS

Ad Valorem Tax Exemption Application and Return for Charter School Facilities (r. 01/25)

https://www.flrules.org/Gateway/reference.asp?No=Ref-18028

04/25

(d)

DR-504ED

Ad Valorem Tax Exemption Application and Return for Educational Property (n. 11/21)

https://www.flrules.org/Gateway/reference.asp?No=Ref-13837

11/21

(e)

DR-504HA

Ad Valorem Tax Exemption Application and Return for Nonprofit Homes for the Aged (r. 11/21)

https://www.flrules.org/Gateway/reference.asp?No=Ref-13838

11/21

(f)

DR-504S

Individual Affidavit for Ad Valorem tax Exemption-Homes for the Aged (r. 11/21)

https://www.flrules.org/Gateway/reference.asp?No=Ref-13839

11/21

(g)

DR-504W

Ad Valorem Tax Exemption Application and Return for Not-for-Profit Sewer and Water Company and Not-for-Profit Water and Wastewater Systems (n. 11/21)

https://www.flrules.org/Gateway/reference.asp?No=Ref-13840

11/21

(41)

DR-505

Report of Errors and Insolvencies (r. 01/25)

https://www.flrules.org/Gateway/reference.asp?No=Ref-18029

04/25

(42)(a)

DR-506

Tax Deed (r. 4/16)

https://www.flrules.org/Gateway/reference.asp?No=Ref-06511

4/16

(b)

DR-506E

Escheatment Tax Deed (r. 4/16)

https://www.flrules.org/Gateway/reference.asp?No=Ref-06512

4/16

(43)

DR-508

Application for Separate Assessment of Mineral, Oil and Other

Sub-Surface Rights (r. 12/94)

12/94

(44)(a)

DR-509

Tax Certificate (r. 4/16)

https://www.flrules.org/Gateway/reference.asp?No=Ref-06513

4/16

(b)

DR-509D

Deferred Payment Tax Certificate (r. 4/16)

https://www.flrules.org/Gateway/reference.asp?No=Ref-06514

4/16

(45)(a)

DR-510

Cancellation or Correction of Tax Certificate (r. 08/25)

https://www.flrules.org/Gateway/reference.asp?No=Ref-18438

08/25

(b)

DR-511

Interest Table for Tax Sale Certificates (r. 6/89)

6/89

(46)(a)

DR-512

Application for Tax Deed (r. 4/16)

https://www.flrules.org/Gateway/reference.asp?No=Ref-06515

4/16

(b)

DR-513

Certification of Tax Deed Application

https://www.flrules.org/Gateway/reference.asp?No=Ref-10758

07/19

(c)

DR-514

Notice of Sale of Tangible Personal Property for Delinquent Taxes (r. 4/16)

https://www.flrules.org/Gateway/reference.asp?No=Ref-06517

4/16

(47)(a)

DR-515

Receipt of Deposit of County Funds (r. 3/77)

3/77

(b)

DR-515C

Receipt of Deposit of County Funds (continuous) (r. 3/93)

3/93

(c)

DR-517

Tax Collector’s Warrant

https://www.flrules.org/Gateway/reference.asp?No=Ref-10759

07/19

(48)

DR-517L

Execution and Warrant for Collection of Delinquent Ad Valorem Leasehold Taxes (r. 4/16)

https://www.flrules.org/Gateway/reference.asp?No=Ref-06519

4/16

(49)(a)

DR-518

Cutout Request (r. 4/16)

https://www.flrules.org/Gateway/reference.asp?No=Ref-06520

4/16

(b)

DR-520A

Tax Roll Sheet

10/91

(50)(a)

DR-521

Index Tax Roll Sheet

10/91

(b)

DR-522

Report of Total Reductions in Taxes from Catastrophic Events (n. 01/23) https://www.flrules.org/Gateway/reference.asp?No=Ref-14894

01/23

(c)

DR-528

Notice of Ad Valorem Taxes and Non-Ad Valorem Assessments (example only) (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01806

11/12

(d)

DR-529

Notice Tax Impact of Value Adjustment Board (r. 12/09)

3/10

(51)(a)

DR-533

Warrant Notice (r. 5/89)

5/89

(b)

DR-534

Application for Installment Payment of Property Taxes (r. 06/22)

https://www.flrules.org/Gateway/reference.asp?No=Ref-14392

06/22

(52)

DR-535

Notice to Property Appraiser of Name and/or Address Change (r. 5/92)

12/94

(53)

DR-545

Income Data Verification Sheet

1/93

(54)

DR-546

Agricultural Income and Information

https://www.flrules.org/Gateway/reference.asp?No=Ref-10760

07/19

(55)(a)

DR-570

Application for Homestead Tax Deferral (r. 10/11)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01809

11/12

(b)

DR-570AH

Application for Affordable Housing Property Tax Deferral (n. 10/11)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01810

11/12

(c)

DR-570WF

Application for Recreational and Commercial Working Waterfronts Property Tax Deferral (r. 10/11)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01811

11/12

(56)(a)

DR-571A

Disapproval of Application for Tax Deferral-Homestead, Affordable Rental Housing, or Working Waterfront (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01812

11/12

(b)

DR-584

Budget Form for Tax Collectors (r. 11/12)

https://www.flrules.org/Gateway/reference.asp?No=Ref-01813

11/12

(57)

DR-590

Standard Record Layout for Rule 12D-8 Name, Address and Legal (N.A.L.) File (required format) (r. 12/00)

1/01

(58)

DR-592

N.A.P. file Record Layout (n. 3/98)

12/98

(59)(a)

DR-593

Application for Section 218.66, F.S., Special Distributions for Contested Property Taxes (n. 6/98)

12/98

(b)

DR-593A

Application for Section 194.035, F.S., Reimbursement of Special Master Payments by Small Counties (n. 12/02)

1/03

(60)(a)

DR-4001

Application for Florida Professional Certification (n. 10/21)

https://www.flrules.org/Gateway/reference.asp?No=Ref-13632

10/21

(b)

DR-4002

Application for Approval of a Course or Continuing Education Credit Hours (n. 10/21)

https://www.flrules.org/Gateway/reference.asp?No=Ref-13633

10/21

History

• Rulemaking Authority 95.18(3), 192.001(18), 193.085(4)(a), (b), 193.091(3)(b), 193.114(1), (6), 193.1142(1), 193.122(1), (2), 193.155(8)(f), (h), 193.1556(2), 193.461(3)(a), (e), 193.501(8), (9), 193.625(3)(a), 194.011(3), 194.014, 194.034(1)(b), (c), (2), 194.037(3), 195.002(2), 195.027(1), (4), 195.087(1)(a), (2), 196.011(1), (5), (6), 196.075(4)(d), (5), 196.101(4)(c), 196.121(1), 196.173(6)(a), 196.1975(4)(c), 196.1978, 197.1979, 196.198, 196.1983, 196.1995(8), 197.2423(3), 197.2425, 197.319, 197.323, 197.3632(5)(b), 197.3635, 197.552, 200.065(1), (5), 200.069, 218.12(12), 218.125(2), 218.135(2), 218.26(1) FS. Law Implemented 95.18, 136.03, 145.10(2), 145.11(2), 189.012, 192.001(18), 193.011(8), 193.023, 193.052, 193.075, 193.085, 193.092, 193.114, 193.1142, 193.122, 193.155, 193.1554, 193.1555, 193.1556, 193.461, 193.481, 193.501, 193.503, 193.621, 193.625, 193.703, 194.011, 194.014, 194.032, 194.034, 194.035, 194.037, 194.171, 194.181, 194.301(2)(b), 195.002, 195.022, 195.027(4), 195.073, 195.087, 196.011, 196.012(13), 196.015, 196.031, 196.075, 196.082, 196.092, 196.095, 196.101, 196.121, 196.131, 196.141, 196.151, 196.161(1)(a), 196.173, 196.183, 196.193, 196.195, 196.196, 196.1961, 196.197, 196.1975, 196.1977, 196.1978, 196.19781, 196.19782, 196.1979, 196.198, 196.1983, 196.199, 196.1995, 196.2001, 196.2002, 196.202, 196.24, 196.26, 197.182, 197.222, 197.2423, 197.2425, 197.252, 197.2524, 197.262, 197.319, 197.322(1), 197.323, 197.3632, 197.3635, 197.373, 197.412, 197.413, 197.417(1), 197.432, 197.443, 197.492, 197.502, 197.542, 197.552, 200.065, 200.068, 200.069, 200.071, 200.081, 218.12, 218.125, 218.135, 218.23, 218.63, 218.66(2), 218.67 FS.,ss. 9(b), 12 of Article VII of Florida Constitution. History–New 10-12-76, Amended 4-11-80, 9-17-80, 5-17-81, 1-18-82, 4-29-82, Formerly 12D-16.02, Amended 12-26-88, 1-9-92, 12-10-92, 1-11-94, 12-27-94, 12-28-95, 12-25-96, 12-30-97, 12-31-98, 2-3-00, 1-9-01, 12-27-01, 1-20-03, 1-26-04, 12-30-04, 1-16-06, 10-2-07, 3-30-10, 11-1-12, 9-10-15, 4-5-16, 6-14-16, 1-9-17, 9-19-17, 1-17-18, 4-10-18, 9-17-18, 7-9-19, 12-7-20, 10-26-21, 11-11-21, 6-13-22, 10-30-22, 11-20-22, 7-18-23, 11-26-23, 2-8-24, 4-27-25, 8-28-25, 2-26-26.

Chapter 12D-17 TRUTH IN MILLAGE ("TRIM") COMPLIANCE

Fla. Admin. Code R. 12D-17.001 Scope

(1) This chapter applies to determinations by the Department of compliance with the Truth in Millage (“TRIM”) laws by taxing authorities. In order to be eligible to participate in revenue sharing beyond the minimum entitlement for any fiscal year, Chapters 200 and 218, F.S., provide that taxing authorities must levy revenue in the form required by Section 218.23(1), F.S., of 3 mills on the dollar of ad valorem taxes, or the equivalent from ad valorem taxes, occupational license taxes, and utility taxes, and must file with the Department a certification that such taxing authority is in compliance with Section 200.065, F.S. Additionally, Sections 218.23(1) and 218.63(2), F.S., provide that to receive its share of revenue sharing funds, a unit of local government not levying a property tax must file with the Department a certification not later than November 1 that the requirements of Section 200.065, F.S., if applicable, were met.

(2) In the event the taxing authority does not fulfill these requirements, under the provisions of Sections 200.065(13), 218.23(1) and 218.63(2), F.S., the taxing authority will not receive its share of state revenue sharing funds and will be subject to forfeiture of such funds.

(3) It is the intent of this rule chapter to serve as a supplement to interpret and to explain the administration of the relevant statutes and not to restate or substitute for them. The applicable statutes should be read in concert with these rules.

(4) The Executive Director, or the Executive Director’s designee, must make determinations of compliance with the Truth in Millage (“TRIM”) laws and must otherwise administer the provisions of Chapters 200 and 218, F.S.

(5) Nothing contained in this rule chapter will serve to authorize or extend any millage in excess of the maximum millage authorized by law. See, for example, Sections 125.01(1)(q), 200.071, 200.081 and 200.091, F.S., and Article VII, section 9(b), Florida Constitution.

History

• Rulemaking Authority 195.027(1), 218.26(1) FS. Law Implemented 195.002, 200.065, 200.068, 218.21, 218.23, 218.63 FS. History–New 6-20-91, Amended 10-30-91, 2-26-26.

Fla. Admin. Code R. 12D-17.002 Definitions

(1) The definitions applicable under this rule chapter are given the same meanings as the definitions provided in Sections 192.001, 197.102, 200.001(8) and 218.21, Florida Statutes.

(2) In addition, the following definitions apply:

(a)1. “Adjacent to,” when used in reference to newspaper advertisements, means next to, touching or contiguous either at the sides or at the corners. This term includes advertisements placed adjacent either on the same page or adjoining pages with a crease separating them, so that the advertisements may be seen to be adjacent with the newspaper laid open upon a flat surface. The term does not include advertisements placed on opposite sides of the same page with the edge of a page separating them.

2. When used in reference to an online advertisement, adjacent to means the advertisements must appear on one webpage, next to, touching or continguous either at the sides or at the corners. If advertisements are posted using weblinks, the advertisements should appear adjacent to one another, visible on one page. Separate links leading to separate advertisements should not be used.

(b) “Certification date” means the date of certification by the property appraiser to each taxing authority within the county of the taxable value within each taxing authority on the Certification of Taxable Value (form DR-420) or Certification of School Taxable Value (form DR-420S) (form DR-420 or DR-420S, incorporated by reference in Rule 12D-16.002, F.A.C.), or July 1, whichever is later. The certification date is day 1, the day from which other significant dates regarding TRIM compliance are calculated.

(c) “Current year millage” means the millage for current year operating purposes exclusive of debt service and other voted millage, and inclusive of surplus debt service used for operations and maintenance.

(d) “Debt service millage” means millage revenues to be allocated to debt service and not operating purposes.

(e) “Filing,” “filed,” or “file” means submission of the TRIM Compliance Package through the Department’s Oversight and Assistance System (OASYS) electronic portal using the Truth in Millage (eTRIM) application at https://eportal.oasys.floridarevenue.com/.

(f) “Final millage” means the millage finally adopted by a taxing authority pursuant to Section 200.065(2)(d), F.S.

(g) “Final budget” means the budget finally adopted by a taxing authority pursuant to Section 200.065(2)(d), F.S.

(h) “Fiscal year” means the 12-month period for local governments which begins October 1 and ends September 30.

(i) “Operating expenditures” means all moneys of the taxing authority, including dependent special districts, which were or could be either expended during the applicable fiscal year, or retained as a balance for future spending in the fiscal year. The term does not include those moneys held in or used in trust, agency, or internal service funds, or expenditures of bond proceeds for capital outlay or for advanced refunded debt principal.

(j) “Operating millage” means millage revenues to be allocated to operating expenditures and not debt service purposes or other voted millage.

(k) “Proof of publication” means proof, provided by a newspaper in the form provided in Sections 50.041 and 50.051, F.S., showing the dates that the information or notice was published. School districts that publish its intent to adopt a tentative budget on a publicly accessible website, including a district school board's official website, pursuant to Section 50.0311, F.S., must provide proof including screenshots of the homepage showing the link to the advertisement; the advertisement; the dates that the information or notice was published; and website address.

(l) “Proposed millage” means the millage considered by a taxing authority pursuant to Sections 200.065(2)(a)1. and (2)(b), F.S., to fulfill the tentative budget.

(m) “Rolled-back rate” means that millage rate which, exclusive of new construction, additions to structures, deletions, rehabilitative improvements increasing assessed value of the improvements by at least 100 percent, and property added due to geographic boundary changes, will provide the same ad valorem tax revenue for each taxing authority as was levied during the prior year. “Rehabilitative improvements” are any improvements which rebuild, renovate, or replace a structure.

(n) “Taxable value” means the taxable value of all property subject to taxation by the taxing authority.

(o) “Taxing authority” includes, but is not limited to, any county, municipality, authority, special district as defined in Section 165.031(7), F.S., or other public body of the state, any school district, library district, neighborhood improvement district created pursuant to the Safe Neighborhoods Act, metropolitan transportation authority, municipal service taxing or benefit unit (MSTU or MSBU), or water management district created under Section 373.069, F.S.

(p) “Tentative budget” means the budget used to determine the proposed millage for placement on the TRIM notice, and the budget adopted pursuant to Section 200.065(2)(c), F.S.

(q) “Tentative millage,” “recomputed proposed millage,” or “tentatively adopted millage” means the millage adopted at the tentative millage and budget hearing pursuant to Section 200.065(2)(c), F.S. It also includes proposed millage referred to in Section 129.03(3)(b), F.S.

(r) “TRIM notice” means the Notice of Proposed Property Taxes, (form DR-474, incorporated by reference in Rule 12D-16.002, F.A.C.), required by Sections 200.069 and 200.065(2)(b), F.S., required to be sent by a property appraiser within 55 days of the certification date or 10 days after the tax roll is approved or the interim roll procedures under Section 193.1145, F.S., are instituted, whichever is later.

(s) “TRIM Compliance Package” means the set of documents that each taxing authority must submit to the Department to certify that they followed the TRIM requirements under Chapter 200, F.S.

(t) “Unit of local government” means a county or municipal government, but does not include any special districts as defined by Section 165.031(7) or Chapters 189 and 218, F.S.

History

• Rulemaking Authority 195.027(1), 218.26(1) FS. Law Implemented 192.048(1)(a), 195.002, 200.001(8), 200.065, 200.068, 218.21, 218.23, 218.33, 218.63 FS. History–New 6-20-91, Amended 12-27-94, 12-25-96, 6-13-22, 3-27-25, 2-26-26, Technical Change 2-26-26.

Fla. Admin. Code R. 12D-17.003 Truth in Millage (“TRIM”) Compliance

(1) It is the responsibility of the taxing authority to notify the Department of its name, email address, mailing address, and the name of the person or official who is to receive all Truth in Millage (“TRIM”) correspondence using the OASYS eTRIM system to add or update information. The Department will use the information on file by May 1 of each year to send out any forms and associated correspondence by June 1 of that year.

(2) Compliance with this rule chapter by a taxing authority is necessary to be considered in compliance with Section 200.065, F.S. For purposes of this rule chapter, day 1 is the certification date or July 1, whichever is later.

(3) A taxing authority other than a school district must:

(a) Compute a proposed millage rate using not less than 95 percent of the taxable value certified to it pursuant to Section 200.065(1), F.S. For purposes of the calculation of the proposed millage rate by a special district, the determination by the Department of Commerce pursuant to Chapter 189, F.S., of the dependent or independent status of the district is prima facie evidence of such status. Principal taxing authorities (counties and cities) must use 95 percent of the taxable value in each district or unit in which a millage is levied. Multicounty taxing authorities must use 95 percent of the taxable value within their jurisdiction in each county in which the millage is levied.

(b) Advise the property appraiser, on form DR-420, of its proposed millage rate, of its rolled-back rate computed pursuant to Section 200.065(1), F.S., and of the date, time and place at which a public hearing will be held to consider the proposed millage rate and the tentative budget. This advisement must be made within 35 days of the certification date. If the taxing authority fails to timely provide such information, as required by Section 200.065(2)(b), F.S., it will be prohibited from levying a millage rate greater than the rolled-back rate. One form DR-420 must be prepared for operating millage for each county, each special district, each municipality, and each taxing authority subordinate to a county or municipality. For each multicounty taxing authority, one form DR-420 must be prepared for each county in which the operating millage is levied. The property appraiser is required to send the TRIM notice within 55 days after the certification date. This notice serves as the notice of the tentative millage and budget hearing.

(c) Hold a public hearing on the tentative millage rate and budget, on or after 10 days after sending the TRIM notice and within 80 days but not earlier than 65 days after the certification date, scheduled as required by Section 200.065(2)(c)., F.S.

(d) Advertise whenever possible, in a newspaper published in the county at least weekly unless the only newspaper in the county is published less than weekly or in a geographically limited insert of the newspaper published at least twice weekly and the circulation of such insert includes the geographic boundaries of the taxing authority. Instead of the published notice, the taxing authority may send by mail to each elector residing in the jurisdiction of the taxing authority, in the form provided in Section 200.065(3), F.S., notice of its intent to adopt a final millage and budget. The advertisement must appear within 15 days of the hearing adopting the tentative millage and budget. The form generally provides that the notice must consist of a notice of tax increase or notice of proposed tax increase advertisement or notice of budget hearing advertisement and an adjacent budget summary advertisement. If published in the print edition of the newspaper as provided in Section 200.065(3), F.S., the hearing advertisement must not be placed in the legal notices or classified advertisements section of the newspaper. Otherwise, the advertisement must be published as provided in Chapter 50, F.S.

(e) Hold the final budget hearing on or after 2 days and within 5 days from the day the advertisements are first published, scheduled as required by Section 200.065(2)(e)2., F.S. In the event that this hearing is rescheduled or recessed, the taxing authority must publish a notice of the rescheduled date of the hearing as required by Section 200.065(2)(e)2., F.S. If published in the print edition of the newspaper as provided in Section 200.065(3), F.S., the recessed hearing advertisement must not be placed in the legal notices or classified advertisements section of the newspaper. Otherwise, the advertisement must be published as provided in Chapter 50, F.S.

(f) Certify the adopted millage to the property appraiser and the tax collector, submitting copies of the resolutions or ordinances. These submissions must be made within 3 days from the date of the final budget hearing and thus within 101 days of the certification date.

(g) Execute the Certification of Final Taxable Value, (form DR-422, incorporated by reference in Rule 12D-16.002, F.A.C.), showing the adopted millage rate and return it to the property appraiser, tax collector, and the Department within 3 days from receipt of the certification from the property appraiser. In the event variance in taxable value so certified for municipalities, counties, and water management districts is more than 1 percent from that initially certified by the property appraiser on the Certification of Taxable Value, form DR-420, then as provided by Section 200.065(6), F.S., the municipality, county or water management district may administratively adjust its adopted millage rate without a public hearing. Any other taxing authority, except a school district, may administratively adjust its millage if the taxable value is at variance by more than 3 percent. The adjustment must be such that the taxes computed by applying the adopted rate against the certified taxable value are equal to the taxes computed by applying the adjusted adopted rate to taxable value on the roll to be extended. No adjustment can be made to levies required by law to be a specific millage amount.

(h) Certify compliance with Chapter 200, F.S., to the Department, on the Certification of Compliance (form DR-487, incorporated by reference in Rule 12D-16.002, F.A.C.), within 30 days after adoption of the ordinance or resolution establishing a property tax millage levy, as provided elsewhere in this rule chapter.

(4) A school district must

(a) Compute a proposed millage rate using not less than 95 per cent of the taxable value certified to it pursuant to Section 200.065(1), F.S.

(b) Prepare, through the superintendent, and submit the tentative budget to the school board, and the school board must approve or amend the tentative budget for advertising, within 24 days after the certification date, in accordance with Section 200.065(2)(a)3. and Chapter 1011, F.S.

(c) Advertise the tentative millage and budget hearing on a publicly accessible website pursuant to Section 50.0311, F.S., or in a newspaper of general circulation pursuant to Chapter 50, F.S. Instead of the published notice, the taxing authority may send by mail to each elector residing in the jurisdiction of the taxing authority, in the form provided in Section 200.065(3), F.S., within 29 days after the certification date notice of its intent to tentatively adopt a millage and budget. The form generally provides that the notice must consist of a notice of proposed tax increase advertisement or notice of budget hearing advertisement and an adjacent budget summary advertisement as provided in Section 200.065(3), F.S. If published in the print edition of the newspaper as provided in Section 200.065(3), F.S., the advertisement must not be placed in the legal notices or classified advertisements section of the newspaper. The school district must also publish a Notice of Tax for School Capital Outlay advertisement, as required by Section 200.065(10)(a), F.S., if applicable. Otherwise, the advertisement must be published as provided in Chapter 50, F.S.

(d) Hold the tentative budget hearing on or after 2 days and within 5 days from the day the advertisement is first published, scheduled as required by Section 200.065(2)(f)1., F.S. Therefore, the tentative budget hearing must be held within 34 days from the certification date.

(e) Advise the property appraiser, on the Certification of School Taxable Value (form DR-420S, incorporated by reference in Rule 12D-16.002, F.A.C.), of its proposed millage rate within 35 days of the certification date. The property appraiser is required to send the notice of proposed property taxes, the TRIM notice, within 55 days of the certification date. This notice serves as the notice of the final millage and budget hearing.

(f) Hold a public hearing on the final millage rate and budget on or after 10 days after the mailing and within 80 days of the certification date, scheduled as required by Section 200.065(2)(e)2., F.S. In the event that this hearing is rescheduled or recessed, the taxing authority must publish a notice of the rescheduled date of the hearing as required by Section 200.065(2)(e)2., F.S. If published in the print edition of the newspaper, as provided by Section 200.065(3), F.S., the recessed hearing advertisement must not be placed in the legal notices or classified advertisements section of the newspaper.

(g) Certify the adopted millage to the property appraiser and the tax collector. These submissions must be made within 3 days from the date of the hearing, and within 101 days of the certification date.

(h) Execute the Certification of Final Taxable Value, form DR-422, showing the adopted millage rate and return it to the property appraiser, tax collector, and the Department within 3 days from receipt of the certification from the property appraiser. In the event variance in taxable value so certified is more than 1 percent from that initially certified by the property appraiser on the Certification of Taxable Value, form DR-420, then as provided by Section 200.065(6), F.S., the school district may administratively adjust its adopted millage rate without a public hearing. The adjustment must be such that the taxes computed by applying the adopted rate against the certified taxable value are equal to the taxes computed by applying the adjusted adopted rate to taxable value on the roll to be extended. No adjustment can be made to levies required by law to be a specific millage amount.

(i) Certify compliance with Chapter 200, F.S., to the Department, on form DR-487, within 30 days following adoption of the ordinance or resolution establishing a property tax millage levy, as provided in this rule chapter.

History

• Rulemaking Authority 195.027(1), 218.26(1) FS. Law Implemented 129.03, 195.002, 200.065, 200.068, 218.21, 218.23, 218.63, 1011.62 FS. History–New 6-20-91, Amended 1-11-94, 4-18-94, 12-27-94, 12-25-96, 12-31-98, 6-13-22, 3-27-25, 2-26-26.

Fla. Admin. Code R. 12D-17.0035 Instructions and Calculations

(1) Rolled-back rate. Specific instructions for calculating the rolled-back rate are contained in the Truth in Millage (TRIM) compliance instructions for completing a Certification of Taxable Value (form DR-420, incorporated by reference in Rule 12D-16.002, F.A.C.). The calculation of the rolled-back rate must include all millages exclusive of voted debt service levies and millages in excess of the 10 mill cap pursuant to Section 200.071, F.S.

(2)(a) Percent increase over the current year rolled-back rate of tentative millage. The calculation is: current year aggregate tentative millage divided by the current year aggregate rolled-back rate, minus 1.00, times 100, equals the percent to publish in the Notice of Tax Increase advertisement. The actual calculation is:

(current year aggregate tentative millage/current year aggregate rolled-back rate) - 1.00 x 100

=

percent to publish in the Notice of Tax Increase advertisement.

(b) Percent increase over the rolled-back rate of final millage. The calculation is: current year final millage divided by the current year rolled-back rate, minus 1.00, times 100 equals the percent to state in the ordinance or resolution as required by Section 200.065(2)(d), F.S. The actual calculation is:

((current year final millage/rolled-back rate) - 1.00) x 100

=

percent to state in resolution or ordinance

(3) Taxing Authorities and School Districts: Calculation of proposed, tentative, and final budgets, proposed and final millage rates, and ad valorem proceeds. In calculating these figures, Section 200.065(2)(a)1., F.S., requires each taxing authority to use not less than 95 percent of the taxable value certified to it by the property appraiser. This is at least 95 percent of the gross taxable value appearing on line 4 of the form DR-420 or a Certification of School Taxable Value (form DR-420S, incorporated by reference in Rule 12D-16.002, F.A.C.).

(a) The calculation of the tentative budget or ad valorem proceeds is:

Line 4 of form DR-420 or form DR-420S x .95 x tentative millage rate

=

the absolute minimum of ad valorem proceeds to use for tentative budget purposes

(b) The calculation of the final budget or ad valorem proceeds is:

Line 4 of form DR-420 or form DR-420S x .95 x final millage rate

=

the absolute minimum of ad valorem proceeds to use for final budget purposes

(4) Budget summary advertisement. The advertised budget must remain in balance. The tentative millages stated in the budget summary advertisement must be the millages the taxing authority is proposing to levy, and must be tied to the anticipated ad valorem proceeds resulting from each millage. Each tentative millage must be displayed in the budget summary advertisement. However, each millage may be divided and allocated to one or more funds or budgets, provided it is readily apparent in the advertisement that the sum of the millages is less than or equal to the respective proposed millage. The proceeds must be displayed in the appropriate fund or budget to which they are to be deposited.

History

• Rulemaking Authority 195.027(1), 218.26(1) FS. Law Implemented 195.002, 200.065, 200.068, 218.21, 218.23, 218.63, 1011.62(4) FS. History–New 6-20-91, Amended 2-26-26.

Fla. Admin. Code R. 12D-17.004 Taxing Authority’s Certification of Compliance; Notification by Department

(1) If an ordinance or resolution establishing a property tax millage levy is adopted, the taxing authority must file the TRIM Compliance Package including a Certification of Compliance (form DR-487, incorporated by reference in Rule 12D-16.002, F.A.C.), with the Department within 30 days following the adoption of the levy.

(2)(a) For taxing authorities other than school districts, the certification of compliance must be made by filing the following items with the Department:

1. A copy of the Certification of Taxable Value (form DR-420, incorporated by reference in Rule 12D-16.002, F.A.C.).

2. A copy of the ordinance or resolution adopting the millage rate.

3. A copy of the ordinance or resolution adopting the budget.

4. Proof of publication of the entire page of the final budget hearing advertisement, which is the notice of proposed tax increase advertisement required by Sections 200.065(2)(d) and (3)(a), F.S., or the notice of budget hearing advertisement required by Sections 200.065(2)(d) and (3)(b), F.S., whichever is appropriate, and which is required to be adjacent to the budget summary advertisement. For multicounty taxing authorities, proof of publication of the notice of proposed tax increase advertisement or notice of tax increase advertisement required by Sections 200.065(2)(d), (3)(a), (3)(g) and (9), F.S., or the notice of budget hearing advertisement required by Sections 200.065(2)(d), (3)(b), (3)(e) and (8), F.S., and which is required to be adjacent to the budget summary advertisement.

5. Proof of publication of the budget summary advertisement required by Sections 200.065(3)(l) and 129.03(3)(b), F.S., adjacent to the advertisement required by subparagraph 4. of this paragraph.

6. Proof of publication of the notice of tax increase or notice of proposed tax increase advertisement or notice of budget hearing advertisement, and the adjacent budget summary advertisement. In the event notice is not published but is mailed according to Section 200.065(3)(f), F.S., a taxing authority must submit a certification of mailing from the post office with a copy of the notices.

7. For counties only, a copy of the Notice of Tax Impact of the Value Adjustment Board advertisement described in Section 194.037, F.S., and Rule 12D-9.038, F.A.C.

8. For counties only, proof of publication of the notice of tax impact of the value adjustment board advertisement. If the value adjustment board completes its hearings after the deadline for certification under Section 200.068, F.S., the county must submit this item to the Department within 30 days from the completion of the hearings.

9. A copy of the Certification of Final Taxable Value, form DR-422, if the property appraiser has issued one as of this date. If the taxing authority has not received this certification, the taxing authority must file the remainder of the certification package with the Department within the deadline and file the certification form DR-422 as soon as it is received.

10. Form DR-420TIF, Tax Increment Adjustment Worksheet.

11. Form DR-420DEBT, Certification of Voted Debt Millage, if used.

12. Form DR-420MM, Maximum Millage Levy Calculation – Final Disclosure, including the maximum millage rates calculated pursuant to Section 200.065(5), F.S., together with values and calculations on which the maximum millage rates are based.

13. Form DR-487V, Vote Record for Final Adoption of Millage Levy.

14. Form DR-422DEBT, Certification of Final Voted Debt Millage, if used.

15. Certification of Compliance, form DR-487.

The forms listed above are incorporated by reference in Rule 12D-16.002, F.A.C.

(b) For school districts, the certification of compliance must be made by filing the following items with the Department:

1. A copy of the Certification of School Taxable Value, form DR-420S.

2. A copy of Department of Education form ESE-524.

3. The entire page from the print edition of the newspaper or the entire webpage from an Internet-only publication containing the tentative budget hearing advertisement, which is the notice of proposed tax increase advertisement required by Sections 200.065(2)(f) and (3)(c) or (3)(d), F.S., or the notice of budget hearing advertisement required by Sections 200.065(2)(f) and (3)(e), F.S., whichever is appropriate, and which is required to be adjacent to the budget summary advertisement.

4. Proof of publication of the tentative budget hearing advertisement.

5. The entire page from the print edition of the newspaper or the entire webpage from an Internet-only publication containing the budget summary advertisement, required by Sections 200.065(3)(l) and 129.03(3)(b), F.S., adjacent to the advertisement required by subparagraph 4. of this paragraph.

6. Proof(s) of publication from the newspaper of the notice of proposed tax increase advertisement or notice of budget hearing advertisement, and the budget summary advertisement. In the event notice is not published but is mailed according to Section 200.065(3)(f), F.S., a school district must submit a certification of mailing from the post office with a copy of the notices.

7. The entire page from the print edition of the newspaper or the entire webpage from an Internet-only publication containing the Notice of Tax for School Capital Outlay advertisement, required by Section 200.069(10)(a), F.S.

8. Proof of publication from the newspaper of the Notice of Tax for School Capital Outlay advertisement.

9. Copy of the Certification of Final Taxable Value, form DR-422, if the property appraiser has issued one as of this date. If the school district has not received this certification, the remainder of the certification package must be filed with the Department within the deadline and file form DR-422 as soon as it is received.

10. A copy of Certification of Voted Debt Millage, form DR-420DEBT, if used.

11. The entire page from the print edition of the newspaper or the entire webpage from an Internet-only publication containing an Amended Notice of Tax for School Capital Outlay advertisement, required by Section 200.065(10)(b), F.S.

12. Proof of publication from the newspaper of the Amended Notice of Tax for School Capital Outlay advertisement.

13. Copy of the Certification of Final Voted Debt Millage, form DR-422DEBT, if used.

14. Certification of Compliance, form DR-487.

The forms listed above are incorporated by reference in Rule 12D-16.002, F.A.C.

(3) The Department provides an internet-based system, OASYS eTRIM (electronic Truth in Millage) at https://eportal.oasys.floridarevenue.com/, for taxing authorities, including school districts, to complete and submit the forms and documents required for certification of compliance with Chapter 200, F.S., Determination of Millage, and for conforming to the maximum millage limitation requirements in Section 200.065(5), F.S. Using OASYS eTRIM, property appraisers will be able to electronically certify value data to municipalities and independent special districts in their counties. Counties, municipalities, and independent special districts, including water management districts, will be able to complete and return forms to the property appraiser containing information for inclusion in the Notice of Proposed Property Taxes, form DR-474, incorporated by reference in Rule 12D-16.002, F.A.C., and will be able to submit information and documentation to the Department. For more information about OASYS eTRIM, contact the TRIM section at TRIM@floridarevenue.com.

(4) If no ordinance or resolution establishing a property tax millage levy is adopted, then on or before November 1, a unit of local government must file a certification with the Department that the requirements of Section 200.065, F.S., if applicable, were met. The certification must be filed on a Certification for Taxing Authorities that Do Not Levy Ad Valorem Taxes, (form DR-421, incorporated by reference in Rule 12D-16.002, F.A.C.)

(5) The Department will notify each taxing authority which has made a complete filing and which is in compliance with this rule section and Section 200.065, F.S.

History

• Rulemaking Authority 195.027(1), 218.26(1) FS. Law Implemented 195.002, 200.001, 200.065, 200.068, 218.21, 218.23, 218.63 FS. History–New 6-20-91, Amended 12-25-96, 12-31-98, 11-1-12, 6-13-22, 3-27-25, 2-26-26.

Fla. Admin. Code R. 12D-17.005 Taxing Authorities in Violation of Section 200.065, Florida Statutes

(1) The Department must review the TRIM Compliance Package including the Certification of Compliance, (form DR-487, incorporated by reference in Rule 12D-16.002, F.A.C.), made by the taxing authority, if filed, in the respects set forth elsewhere in this rule chapter. If the taxing authority or school district has made an incomplete filing or is otherwise found to be in violation of any of the statutory elements, the Department must make such a determination and notify the taxing authority or school district.

(2)(a) The Department must regard as major any violation or combination of violations of Section 200.065 or 200.068, F.S., which tend to misinform taxpayers whether or not such violation is specifically identified in the following guidelines.

(b) Where a violation is specified or found to be major, the taxing authority must be required to readvertise and rehold hearing(s). The specification of a violation as minor in the guidelines must not preclude the Department from considering it to be major where the surrounding circumstances indicate it to be major.

(c) The guidelines in this paragraph are used by the Department based on the impact of the violation on the Truth in Millage (“TRIM”) process.

1. Failure to State Tentative Millage in Budget Summary Advertisement – Sections 200.065(3)(h), (j) and (l), 129.03(3)(b), F.S.

Major. The taxing authority is required to readvertise and rehold hearing(s).

2. Advertisement Too Small (Notice of Tax Increase, Notice of Proposed Tax Increase, Notice of Tax for School Capital Outlay, Amended Notice of Tax For School Capital Outlay, etc.) – Section 200.065(3), F.S.

Major, unless the taxing authority made an attempt to comply and the error was not the fault of the taxing authority but of the newspaper that printed the advertisement. The taxing authority will be required to readvertise and rehold hearing(s).

3. Less Than 95 Percent of Ad Valorem Proceeds Shown in Budget Summary Advertisement – Sections 200.065(2)(a)1., (3)(l), F.S.

Major. The proceeds are understated. The taxing authority is required to readvertise and rehold hearing(s).

4. Reserved.

5. Late Certification of Compliance Package – Section 200.068, F.S.

Minor, if all required documents are filed within 30 days of date due. Taxing authority will be advised of the violation. Major, if filed beyond 30 days. No revenue sharing funds will be disbursed, and all local millage in excess of the rolled-back rate will be directed to be placed in escrow, until the certification is filed.

6. Property Tax Levy – Notice of Proposed Tax Increase – Section 200.065(3)(a), F.S.

Major. If initially proposed tax levy, reductions due to the value adjustment board, actual tax levy for last year, or this year’s proposed tax levy is misstated. The taxing authority is required to readvertise and rehold hearings.

7. Advertisements Not Adjacent – Section 200.065(3)(l), F.S.

Major, unless taxing authority made an attempt to comply by instructing the newspaper in writing to place the advertisements in compliance with this rule. Severity of this violation depends on whether or not the violation is the fault of the taxing authority or the newspaper that printed the ad. If major, the taxing authority is required to readvertise and rehold hearing(s). Those taxing authorities who were notified of this same violation within the past two years are required to readvertise and rehold hearing(s). If minor, the taxing authority will be made aware of the violation.

8. Percent Increase Over the Rolled-Back Rate Incorrect in Notice of Tax Increase Advertisement (for multicounty taxing authorities) or Incorrect Difference Between Taxes Levied Last Year and Proposed Taxes This Year in Notice of Proposed Tax Increase (for all other taxing authorities and schools and first year levies) – Sections 200.065(3)(a), (c), (g) and (j), F.S.

Major. If understated, the taxing authority is required to readvertise and rehold hearing(s).

9. Incorrect Use of “Other Voted Millage” – Sections 200.065(3)(j), 200.001(1) and (8), F.S.

Major, if the effect is to tend to misinform the taxpayers. If minor, the Department will emphasize education of the taxing authorities in the proper use rather than requiring the taxing authority to readvertise.

10. Ad Valorem Proceeds Not Shown in Budget Summary Advertisement – Sections 200.065(2)(a)1. and (3)(l), 129.03(3)(b), F.S.

Major, if the effect is to tend to misinform the taxpayers. Severity depends on whether or not the other required components are shown pursuant to Section 129.03(3)(b), F.S.

11. Hearing Recessed or Continued Without Proper Readvertisement – Sections 200.065(2)(e)2. and (3), F.S.

Major. Taxing authority is required to readvertise and rehold hearing(s) if taxpayers have not been given proper notification of the final adoption of the millage and budget.

12. Failure to State Percent Increase Over Rolled-Back Rate in Resolution or Ordinance – Sections 200.065(2)(d), (3)(j), F.S.

Minor. The taxing authority will be notified of the violation. However, if both the percentage increase over the rolled-back rate is understated in the notice of tax increase advertisement (violation #8), or the amounts required in the notice of proposed tax increase are misstated, or if the advertisements are otherwise misleading, and the same factors in the ordinance or resolution are understated or missing, the taxing authority must readvertise and rehold hearing(s).

13. Failure to Adopt Millage and Budget Separately – Sections 200.065(2)(d) and (2)(e)2., F.S.

Minor. The taxing authority will be notified of the violation and must furnish documentation that millage and budget were adopted by separate vote. If no such documentation is furnished, those taxing authorities who have been notified of this violation within the past two years are required to readvertise and rehold hearing(s).

14. Failure to Show Categories in Notice of Tax for School Capital Outlay – Section 200.065(10)(a), F.S.

Minor. Those taxing authorities who have been notified of this violation within the past two years are required to readvertise and rehold hearing(s).

15. Reserved.

16. Failure to Follow Statutory Verbiage – Section 200.065(3)(h), F.S.

Major, if deviation tends to misinform the taxpayers. Taxing authority is required to readvertise and rehold hearing(s). Minor, if deviation did not modify the substantive content or misinform taxpayers. Taxing authority will be notified of the violation. If the violation occurs for two consecutive years the taxing authority is required to readvertise and rehold hearing(s).

17. Budget Summary Advertisement Selection or Additional Verbiage – Section 200.065(3)(h), F.S.

Major, if deviation tends to misinform the taxpayers. Taxing authority is required to readvertise and rehold hearing(s). Minor, if the violation does not misinform the taxpayers.

18. Too Much Time Between Tentative Millage and Budget Hearing and Final Millage and Budget Hearing – Section 200.065(2)(d), F.S.

Minor. Taxing authority will be advised of the violation. If the taxing authority is notified of the same violation for two consecutive years, then it must readvertise and rehold hearing(s).

19. Hearing Held Less Than 2 or More Than 5 Days Following Advertisement – Section 200.065(2)(d), F.S.

Minor. Taxing authority will be advised of the violation. If the taxing authority is notified of the same violation for two consecutive years, then it must readvertise and rehold hearing(s).

20. Publication of Both Notice of Tax Increase Advertisement or Notice of Proposed Tax Increase and Notice of Budget Hearing – Section 200.065(3), F.S.

Minor, if deviation does not tend to misinform the taxpayers. Taxing authority will be notified as to the correct selection of the advertisements.

21. Publication of Advertisements Combined – Section 200.065(3)(l), F.S.

Minor, unless the violation is the fault of the taxing authority. This is not a severe violation as long as all the information necessary is contained in the advertisement(s). However, the taxing authority will be made aware of the violation.

22. Improper Inclusion of Reference to “Verbatim Record of Proceedings” – Sections 286.0105, 200.065(3)(h), F.S.

Minor. Taxing authority will be notified of the violation.

23. Publication of Different Percent Millage Increase in Budget Summary Advertisement from That Based on Tentative Millage Adopted at First Budget Hearing – Sections 200.065(3)(1), (3)(j), F.S.

Major, if percentage is understated. If so, the taxing authority is required to readvertise and rehold hearing(s). Taxing authority will be notified as to the correct method of calculating the percent of increase.

24. Publishing a Notice of Tax Increase Advertisement or a Notice of Proposed Tax Increase, Rather Than Notice of Budget Hearing Advertisement – Section 200.065(3), F.S.

Minor. This is not a severe violation since it provides more information than is needed. However, the taxing authority will be notified of the violation.

25. Adoption of Budget Before Millage – Section 200.065(2)(e)1., F.S.

Minor, provided there is no apparent prejudice to the taxpayers and the violation appears unintentional. The taxing authority will be notified of the violation.

26. Any Other Violation Which Tends to Misinform the Taxpayers Concerning Millage or Ad Valorem Proceeds – Sections 200.065(1)-(12), F.S.

Major. Taxing authority is required to readvertise and rehold hearing(s).

(3) If any county or municipality, dependent special district of the county or municipality, or municipal service taxing unit of the county is in violation of Section 200.065(5), F.S., because total county or municipal ad valorem taxes exceeded the maximum total county or municipal ad valorem taxes, respectively, that county or municipality, and any municipal service taxing unit and/or dependent district, must remedy the violation. If not remedied, the county or municipality will be subject to forfeiture of the half-cent sales tax revenues as described in Section 200.065(13), F.S., and this rule chapter.

History

• Rulemaking Authority 195.027(1), 218.26(1) FS. Law Implemented 195.002, 200.001, 200.065, 200.068, 218.21, 218.23, 218.63 FS. History–New 6-20-91, Amended 4-18-94, 12-25-96, 12-31-98, 11-1-12, 2-26-26.

Fla. Admin. Code R. 12D-17.006 Notification of Noncompliance; Withholding and Escrow of State Revenue Sharing Funds

(1) If a taxing authority files a certification of compliance which violates Section 200.065, F.S., but which is permitted to be cured by the process specified in Section 200.065(13)(c), F.S., then the Department will notify the taxing authority, as provided in subsection (2) of this rule section, using its last known address, that it is in violation of Section 200.065, F.S., and is subject to Section 200.065(13)(c), F.S.

(2)(a) The Department’s notice will specify the steps necessary to bring the taxing authority into compliance. These steps may include, but not be limited to, readvertisement, reholding hearing(s), adoption of new millage and adoption of new budget.

(b) The Department will notify the taxing authority to repeat the hearing and notice process required by Section 200.065(2)(d), F.S., and that the advertisement must appear within 15 days of the date the notice was issued from the Department, and shall contain the statement in boldface required by Section 200.065(13)(c)2., F.S.

(c) The Department must notify the taxing authority that it must be required to file a new certification after completion of the readvertisement and the reholding of the hearing(s), containing the following items:

1. Copy of advertisements (entire page from the print edition of a newspaper or the entire webpage of an Internet-only publication).

2. Proof of publication of these advertisements.

3. Copy of the resolution or ordinance adopting millage.

4. Copy of the resolution or ordinance adopting the budget.

5. Copy of the resolution or ordinance to hold any excess moneys collected in reserve until the subsequent fiscal year, if the newly adopted millage rate is less than the amount previously adopted at the final millage and budget hearing and forwarded to the property appraiser pursuant to Section 200.065(4), F.S.

6. Certification of Compliance, (form DR-487, incorporated by reference in Rule 12D-16.002, F.A.C.).

(d) The Department will direct the tax collector to hold in escrow all ad valorem revenues for the taxing authority collected in violation of Section 200.065, F.S., which normally will be those revenues in excess of the rolled-back rate, except those revenues from voted levies or levies imposed pursuant to Section 1011.60(6), F.S. The funds will be held in escrow until the completion, and approval by the Department, of the process required by Section 200.065(13)(c), F.S., and this rule section.

(e) The Department of Revenue, Property Tax Oversight Program will immediately notify in writing the Department of Revenue, General Tax Administration, Refunds and Revenue Accounting Process, of the noncompliance. That program will proceed consistently with Sections 218.23(1) and 218.63(2), F.S., to withhold revenue sharing funds, and to hold the funds in escrow until the noncompliance is cured, or if not cured, to transfer the funds to the General Revenue Fund for the 12 months following the determination of noncompliance by the Department.

(f) The Department’s notification to the taxing authority will be issued within 30 days of the taxing authority’s deadline for filing the Certification of Compliance, form DR-487, or within 60 days of the taxing authority’s resolution or ordinance adopting the levy. The Department’s notice will be sent electronically, by overnight delivery, regular or certified mail to the last known address and person identified by the taxing authority as provided in this rule chapter.

(g) The Department’s determination of non-compliance will be deemed made on the date of the initial notification of the violation(s) to the taxing authority.

(3) The taxing authority must hold a new hearing and adopt a new millage and a new budget. If the newly approved millage is less than the amount previously forwarded by the taxing authority to the property appraiser pursuant to Section 200.065(4), F.S., then the taxing authority must hold any excess moneys collected in reserve until the subsequent fiscal year, and must enact a resolution or ordinance to do so. Any millage newly adopted at a hearing required under this rule section will not be forwarded to the property appraiser or tax collector and must not exceed the rate previously adopted.

(4) If the taxing authority cures the violation under Section 200.065(13)(c), F.S., and this rule section, then the Department of Revenue will:

(a) Notify the taxing authority that it is in compliance;

(b) Notify the tax collector, who will disburse to the taxing authority, as provided by law, any funds held in escrow pursuant to this rule section; and,

(c) Disburse all funds held in escrow beginning with the next scheduled disbursement.

(5) If any county or municipality, dependent special district of the county or municipality, or municipal service taxing unit of the county is in violation of Section 200.065(5), F.S., because total county or municipal ad valorem taxes exceeded the maximum total county or municipal ad valorem taxes, respectively, that county or municipality, and any municipal service taxing unit and/or dependent district, is subject to notification.

(6)(a) One or more taxing authorities whose taxes are included in the maximum total taxes levied must reduce their millage sufficiently so that the maximum total taxes levied is not exceeded if any county or municipality, dependent special district of the county or municipality, or municipal service taxing unit of the county is in violation of Section 200.065(5), F.S., because total county or municipal ad valorem taxes exceeded the maximum total county or municipal ad valorem taxes. This is an alternative to the county or municipality forfeiting the half-cent sales tax revenues, as provided in Section 200.065(5), F.S.

(b) The county or municipality will forfeit the distribution of local government half-cent sales tax revenues during the 12 months following a determination of noncompliance, as described in Sections 218.63(2) and (3), 200.065(13), F.S., if a taxing authority does not reduce its millage so that the maximum total taxes levied is not exceeded, or if any county or municipality, dependent special district of the county or municipality, or municipal service taxing unit of the county has not remedied the noncompliance or recertified compliance with Chapter 200, F.S., as provided in Section 200.065(13)(e), F.S.

History

• Rulemaking Authority 195.027(1), 218.26(1) FS. Law Implemented 195.002, 200.001, 200.065, 200.068, 218.21, 218.23, 218.63 FS. History–New 6-20-91, Amended 12-25-96, 11-1-12, 6-13-22, 2-26-26.

Fla. Admin. Code R. 12D-17.007 Taxing Authorities Failing to Timely File Certification; Forfeiture of State Revenue Sharing Funds

(1) Any taxing authority which has not certified compliance on a Certification of Compliance, (form DR-487, incorporated by reference in Rule 12D-16.002, F.A.C.), and provided all documentation as required in Section 200.065, F.S., or this rule chapter, will be subject to forfeiture of state funds otherwise available to it for the 12 months following a determination of noncompliance by the Department.

(2) The Department will notify the taxing authority, using its last known address, that it is in violation of Section 200.065, F.S., and is subject to forfeiture of state revenue sharing funds otherwise available to it. The Department’s determination of non-compliance will be deemed made on the date of the initial notification of the violation(s) to the taxing authority.

(a) The Department will direct the tax collector to hold all ad valorem revenues for the taxing authority collected in violation of Section 200.065, F.S., which will normally be those revenues in excess of the rolled-back rate, in escrow, except those revenues from voted levies or levies imposed pursuant to Section 1011.60(6), F.S. The funds will be held in escrow until the completion and approval by the Department of the process required by Section 200.065(13)(c), F.S.

(b) The Department of Revenue, Property Tax Oversight Program will immediately notify in writing the General Tax Administration of the noncompliance. That program will proceed consistently with Sections 218.23(1) and 218.63(2), F.S., and Chapter 12-10, F.A.C., to withhold revenue sharing funds, and to hold such funds in escrow until the noncompliance is cured, or if not cured, to transfer such funds to the General Revenue Fund for the 12 months following the determination of noncompliance by the Department.

(3) In the event the taxing authority files a Certification of Compliance (form DR-487) after the deadline for filing, the taxing authority will be subject to withholding of state funds and funds levied in violation of Section 200.065, F.S., until such certification is properly filed and approved in accordance with this rule chapter.

(4) The portion of revenue sharing funds which would otherwise be distributed to a taxing authority which has not certified compliance on a Certification of Compliance (form DR-487) as required in this rule chapter, or has otherwise failed to meet the requirements of Section 200.065, F.S., will be deposited in the General Revenue Fund for the 12 months following a determination of noncompliance by the Department.

History

• Rulemaking Authority 195.027(1), 218.26(1) FS. Law Implemented 200.065 FS. History–New 6-20-91, Amended 2-26-26.

Fla. Admin. Code R. 12D-17.008 Computation of Time

(1) The time periods specified in this rule chapter must be determined by using the date of certification of value by the property appraiser pursuant to Section 200.065(1), F.S., or July 1, whichever is later. This date must be the certification date, and it is immaterial whether it falls on a Saturday, Sunday, or legal holiday.

(2) In computing any period of time prescribed or allowed by this rule chapter or by Section 200.065, F.S., the day of the act from which the designated period of time begins must not be included, except for the certification date, which will always be day 1 and must be included. Where the term “within” is used in this rule chapter, and in Section 200.065, F.S., in reference to a period of days, it must be construed to mean “not later than” that number of days, and vice versa. The last day of the period must be included even if it is a Saturday, Sunday, or legal holiday. That event will not operate to extend or to change the day of the act from which any other periods begin to run.

(3) As used in this rule, legal holiday means those days designated in Section 110.117, F.S., and any other day the taxing authority’s offices are closed.

(4) The time periods in this rule chapter may be shortened by coordinating with the property appraiser subject to the requirements of Section 200.065(12), F.S.

History

• Rulemaking Authority 195.027(1), 218.26(1) FS. Law Implemented 200.065 FS. History–New 6-20-91, Amended 2-26-26.

Fla. Admin. Code R. 12D-17.009 Tax Roll Approval; Extended Time Frames; Method of Adjustment of Millage

(1) In the event that a review notice is issued by the Department in reviewing a tax roll pursuant to Section 193.1142(4) or (5), F.S., and Rule 12D-8.020, F.A.C., the following provisions must apply:

(a) The property appraiser must make any necessary adjustment required by Section 200.065(11), F.S., to the proposed millage rates provided by the taxing authority prior to issuing the notice of proposed property taxes, the TRIM notice, required by Section 200.065(2)(b), F.S. These adjustments must include all millages which are applicable to the taxable value on the approved tax roll at variance with the value certified by the property appraiser pursuant to Section 200.065(1), F.S, on the certification date. The property appraiser must provide written notice of the amount of the millage adjustment to all taxing authorities affected by the adjustment within 5 days of the date the tax roll is approved.

(b) If, as a result of the review notice and the remedial steps by the property appraiser, the TRIM notice, as required by Section 200.065(2)(b), F.S., is issued after the deadline (55 days after the certification date), all subsequent deadlines provided in this rule chapter must be extended a like number of days. In this event, the deadline date for the TRIM notice (the 55th day after the certification date) must not be included in calculating the number of extended days. Beginning with the day after the deadline date for the TRIM notice, the number of extended days must be counted until the day the tax roll was approved by the Department. That latter day must be included.

(2) If, as a result of the tax roll approval process provided in Section 193.1142, F.S., the roll is not approved and interim roll procedures have not commenced within 45 days of the certification date, then the deadline for sending the notice of proposed property taxes, the TRIM notice, is 10 days beyond the date the tax roll is approved or interim roll procedures have begun. In such event, all other deadlines in this rule chapter or under Section 200.065, F.S., must be extended by the same number of days by which the deadline for sending the notice is extended beyond 55 days from the certification date. The deadline for sending the notice is therefore the later of 55 days after the certification date, or 10 days after either the tax roll is approved or interim roll procedures have begun.

History

• Rulemaking Authority 195.027(1), 218.26(1) FS. Law Implemented 192.048, 193.1142, 195.002, 200.065, 200.068, 218.21, 218.23, 218.63 FS. History–New 6-20-91, Amended 10-30-91, 2-26-26.

Fla. Admin. Code R. 12D-17.010 Certification of Compliance and Application

Each year prior to November 1, or within 30 days of an ordinance or resolution adopting a millage levy, the taxing authority must file a Certification of Compliance, (form DR-487, incorporated by reference in Rule 12D-16.002, F.A.C.), with the Department. It is the duty of each taxing authority required to submit certified information to the Department, pursuant to this rule chapter, to file timely information. Any taxing authority failing to provide timely information required by this rule chapter must, by such action or noncompliance, authorize the Department to use the best information available. If no such information is available, the Department may take any necessary action, including disqualification from revenue sharing, either partial or entire. Further, by such action or noncompliance the taxing authority will waive any right to challenge the determination of the Department as to its portion, if any, pursuant to the privilege of receiving shared revenues under this rule chapter.

History

• Rulemaking Authority 195.027(1), 218.26(1) FS. Law Implemented 195.002, 200.065, 200.068, 218.21, 218.23, 218.26(4), 218.63 FS. History–New 6-20-91, Amended 2-26-26.

Chapter 12D-18 NON-AD VALOREM ASSESSMENTS AND SPECIAL ASSESSMENTS

Fla. Admin. Code R. 12D-18.001 Scope

This chapter applies to non-ad valorem assessments including special assessments, which are, or have been, qualified to be liens on homestead real property. This rule chapter applies to property appraisers, tax collectors, and local governing boards which elect to implement the levy, collection and enforcement provisions of Sections 197.363 through 197.3635, F.S., for non-ad valorem assessments or special assessments. A local government may elect to prepare a non-ad valorem assessment roll and certify it to the tax collector for collection in accordance with this rule chapter. A local government and property appraiser may elect to have special assessments certified to the tax collector on the tax roll of the property appraiser regardless of whether such has been done prior to January 1, 1990, and if certain conditions are met in accordance with this rule chapter. The provisions of this rule chapter are, therefore, in part, an option for property appraisers, and local governing boards which comply with this rule chapter. The provisions of this rule chapter are also available for existing non-ad valorem assessments, including existing special assessments, which are collectible as liens, and were imposed and collected prior to January 1, 1990. Nothing contained in this rule chapter shall be construed to authorize the levy, collection and enforcement of a non-ad valorem assessment, including special assessments, unless such authority is provided for in applicable constitutional and statutory provisions. It is the duty of the local government to determine, under law, whether an assessment levy is constitutional and may be collected as a lien. The duties of the property appraisers and tax collectors under Section 197.3632, F.S., are ministerial and shall not be construed to authorize any levy. The election to comply with this rule chapter and Sections 197.363 through 197.3635, F.S., shall be made only in accordance with this rule chapter.

History

• Rulemaking Authority 195.027(1), 197.3632(11), 197.3635, 213.06(1) FS. Law Implemented 197.322, 197.363, 197.3631, 197.3632, 197.3635 FS. History–New 2-21-91, Amended 12-30-97.

Fla. Admin. Code R. 12D-18.002 Definitions

(1) The definitions applicable under this rule chapter shall be those set forth in Sections 189.012, 197.102 and 197.3632, F.S., and Rules 12D-1.002 and 12D-13.001, F.A.C.

(2) In addition, the following definitions shall apply:

(a) “Ad valorem method of collection” means placement of any non-ad valorem assessment, including any special assessment, on the tax notice for use of the collection provisions in rule Chapter 12D-13, F.A.C., and Chapter 197, F.S.

(b) “Capital project assessment” means a non-ad valorem assessment which is levied to fund a capital project, and which may be payable in annual payments with interest over a number of years. The name of any particular levy is immaterial if the levy meets this definition and otherwise qualifies for the provisions of this rule chapter.

(c) “Change in the use of assessment revenue” means allocation of assessment revenue for general purposes or to benefit lands which are not identified in the assessment-authorizing statute or judicial decree or the ordinance, resolution or other act of the local government imposing the assessment.

(d) “Existing levy” means an assessment which has been imposed, placed on a roll and collected for the first time prior to January 1, 1990.

(e) “Levied for the first time” means imposed for the first time by county or municipal ordinance or special district resolution after January 1, 1990.

(f) “New non-ad valorem assessment” or “new special assessment” means an authorized assessment that was imposed for the first time by ordinance or resolution effective on or after January 1, 1990, and which is sought to be collected pursuant to Sections 197.3632 and 197.3635, F.S.

(g) “Non-ad valorem assessment,” for purposes of this rule chapter, means only those assessments which are not based upon millage and which can become a lien against a homestead as permitted in Article X, Section 4 of the Florida Constitution.

(h) “Non-ad valorem assessment roll” or “special assessment roll,” means a roll containing non-ad valorem assessments, which may include special assessments, and which can properly be collected using the collection provisions for an ad valorem tax.

(i) “Uniform method” of levy, collection, and enforcement of a non-ad valorem assessment means the ad valorem method provided in Section 197.3632, F.S., under which assessments are included on an assessment roll and certified, in a compatible electronic medium tied to the property identification number, by a local government to the tax collector for merging with the ad valorem tax roll, for collection by utilizing the tax notice described in Section 197.3635, F.S., and for sale of tax certificates and tax deeds under the nonpayment provisions of the ad valorem tax laws.

History

• Rulemaking Authority 195.027(1), 197.3632(11), 197.3635, 213.06(1) FS. Law Implemented 197.102, 197.322, 197.363, 197.3631, 197.3632, 197.3635, 213.05 FS. History–New 2-21-91.

Fla. Admin. Code R. 12D-18.003 Non-Ad Valorem Assessments; Method for Election to Use Section 197.3632, Florida Statutes

(1) By complying with the provisions of this rule section, a local government may elect to use the ad valorem method of collection for any non-ad valorem assessments, including special assessments, which may have been in existence prior to the election to use the uniform method. A local government which is authorized to impose a non-ad valorem assessment and which elects to use the uniform method of collecting such assessment authorized in Section 197.3632, F.S., must satisfy the requirements in this rule section.

(a) The local governing board shall enter into a written agreement with the property appraiser and the tax collector to provide for reimbursement of necessary administrative costs.

(b) The local government must publish notice of its intent to use the uniform method for collecting such assessment weekly in a newspaper of general circulation within each county contained in the boundaries of the local government for four consecutive weeks preceding a public hearing to adopt a resolution of its intent to use the uniform method of collection. This period is computed as follows: The four week period is the four weeks immediately preceding the date of the hearing. Each week is comprised of the immediately preceding seven days. One such notice must appear in the newspaper during each one of these four weeks.

(c) The following shall be a suggested sufficient form for the notice:

NOTICE BY (NAME OF LOCAL

GOVERNMENT) OF INTENT TO USE

THE UNIFORM AD VALOREM METHOD

OF COLLECTION OF A NON-AD

VALOREM ASSESSMENT

Notice is hereby given to all owners of lands located within the boundaries of the (name of local government) that the (name of local government) intends to use the uniform ad valorem method for collecting the non-ad valorem assessments levied by the (name of local government) as set forth in Section 197.3632, F.S., and that the Board of Supervisors (or other name of governing board) will hold a public hearing on (date), at (time) at the (address for hearing).

The purpose of the public hearing is to consider the adoption of a Resolution authorizing the (name of local government) to use the uniform ad valorem method of collecting non-ad valorem assessments levied by the (name of local government) as provided in Section 197.3632, F.S.

The (name of local government) has (adopted before January 1, 1990), (adopted a new non-ad valorem assessment), (or) (is considering adopting) a non-ad valorem assessment for (year, or years if applicable) for (purpose).

This non-ad valorem assessment is: (list one or more of the following)

1. (levied for the first time) or (existing and levied on (date) and previously placed on a roll and collected).

2. Increased beyond the maximum rate authorized by law at the time of its initial imposition.

3. Related to a change in boundaries of the (name of local government).

4. Related to a change in purpose for an existing assessment or in the use of the revenue from such assessment.

Interested parties may appear at the public hearing to be heard regarding the use of the uniform ad valorem method of collecting such non-ad valorem assessments.

If any person decides to appeal any decision made with respect to any matter considered at this public hearing such person will need a record of proceedings and for such purpose such person may need to ensure that a verbatim record of the proceedings is made at their own expense and which record includes the testimony and evidence on which the appeal is based.

Dated this _____ day of ____, 20.

(name of local government)

by: _______________ (appropriate officer)

PUBLISH: (name of newspaper)

Publication dates:

(2) The local government must enact a resolution at a public hearing prior to January 1 or, if the property appraiser, tax collector, and local government agree, March 1. The resolution shall state the local government’s intent to use the uniform ad valorem method of collection, the need for the levy and shall include a legal description of the real property subject to the levy.

(3) The local government must send the resolution to the property appraiser, tax collector and the department by January 10 or, if the property appraiser, tax collector, and local government agree, by March 10. The postmark date shall be considered the date sent. The local government must include with the resolution the following:

(a) A certified copy of adopted resolution.

(b) A copy of newspaper advertisement (entire page from the print edition newspaper or, for advertisements published online only, the entire webpage publishing the advertisements from the newspaper’s website).

(c) A proof of publication showing the dates of publication in the form described in Sections 50.041 and 50.051, F.S.

(4) For non-ad valorem assessments levied for more than one year, if both the advertisement and the resolution express the intent to use the uniform method of collection, for more than one year, for specific years, or for each year until discontinued for a year, the local government need not adopt a resolution or advertise each year.

(5) These rules cannot validate an improper non-ad valorem assessment levy. If the department considers that there is a question whether the non-ad valorem assessment meets the definition set forth in this rule chapter, the Department shall notify the local government promptly.

(6) For capital project assessments, any notice or hearing required by these rules may be combined with any other notice required by these rules or by the general or special law or municipal or county ordinance pursuant to which a capital project assessment is levied.

History

• Rulemaking Authority 195.027(1), 197.3632(11), 197.3635 FS. Law Implemented 197.322, 197.363, 197.3631, 197.3632, 197.3635 FS. History–New 2-21-91, Amended 10-30-91, 6-13-22.

Fla. Admin. Code R. 12D-18.004 Tax Roll; Collection Services; Agreement

(1) If the local government elects to use the procedures of Sections 197.363 through 197.3635, F.S., for non-ad valorem assessment collection, the property appraiser, tax collector, and local government shall establish agreements for data assembly and for the legal requirement of information from the property appraiser for name, address, and legal description.

(a) The local government shall prepare, or establish an agreement or agreements with the property appraiser or any other person for the preparation of, the non-ad valorem assessment roll in a compatible electronic medium tied to the property identification number.

(b) The local government shall establish an agreement or agreements with the tax collector for merger of the non-ad valorem assessment roll or rolls with the ad valorem roll to produce one collection roll.

(c) An agreement or agreements between the local government levying the assessment, the property appraiser, and the tax collector, covering the collection of an assessment, must be executed for each assessment roll. Such agreement(s) shall contain provisions to comply with this rule section.

(2) The agreement(s) shall provide for reimbursement of administrative costs, as provided in Sections 197.3632(2), (7) and (8)(c), F.S., incurred by the property appraiser and tax collector in complying with Sections 197.3632 and 197.3635, F.S., and this rule chapter. These administrative costs include, but are not limited to, costs associated with personnel, forms, supplies, data processing, computer equipment, postage, pro rata insurance premiums, and programming. In any agreement with the local governing board, the tax collector or the property appraiser shall be responsible for the performance of duties specified, or permitted by Section 197.3632, F.S., for that party, and shall be entitled to reimbursement of administrative costs.

(3)(a) The agreement(s), if the election is made to use the uniform method provided by Section 197.3632, F.S., shall provide that annually, by June 1, the property appraiser shall supply each local government using the uniform method with the following information:

1. Legal description of the property affected by the levy, and

2. Names and addresses of the owners of each parcel.

(b) In the event further information is needed beyond these items or that which is available in conjunction with it, then the local government and the property appraiser may provide in the written agreement for the property appraiser to provide additional information as needed upon reimbursement of administrative costs. Such information shall reference the property identification number and otherwise conform in format to that contained on the ad valorem tax roll submitted by the property appraiser each year to the Department.

1. If the local government determines that the information supplied by the property appraiser is insufficient for the local government’s purpose, the local government shall make provision, by establishing agreements or otherwise, to obtain additional information from another source.

2. It is the responsibility of the local government to determine, and it is recommended the local government identify before the January 10 submission to the Department described in this rule chapter, the particular information that it requires and the source of the information.

History

• Rulemaking Authority 195.027(1), 197.3632(11), 197.3635, 213.06(1) FS. Law Implemented 197.322, 197.363, 197.3631, 197.3632, 197.3635 FS. History–New 2-21-91.

Fla. Admin. Code R. 12D-18.005 Adoption of Non-Ad Valorem Assessment Roll

(1) The provisions of this rule section are applicable to non-ad valorem assessments levied for the first time, other than a non-ad valorem assessment levied under Section 163.08, F.S.

(a) The public notice and hearing provisions of this rule section are not applicable to assessments which are:

1. On an existing tax roll, and which have gone through public hearing and adoption processes specified by Section 197.363, F.S., for collection on the tax notice using the ad valorem tax method, or

2. On any existing assessment roll under other authority of law, for which the tax notice and ad valorem method are not used and which are, therefore, not considered to be levied for the first time under Section 197.3632(4)(a)1., F.S.

(b) For a new non-ad valorem assessment, a local government shall adopt a non-ad valorem assessment roll at a public hearing held between January 1 and September 15, or between January 1 and September 25 for any county defined in Section 125.011(1), F.S., if one or more of the following circumstances exist regarding the assessment:

1. It is levied for the first time,

2. It is increased beyond the maximum rate authorized by law or judicial decree at the time of its initial imposition,

3. It is related to a change in boundaries of (name of local government), unless all newly affected property owners have provided written consent for such assessment to the local governing board, or

4. It is related to a change in purpose for an existing assessment or in the use of the revenue from such assessment.

(c) A local government may hold its public hearing and adopt or reaffirm a capital project assessment roll at any time prior to certification of the roll to the tax collector, and is not required to hold the public hearing between January 1 and September 15. For capital project assessments, any notice or hearing required by this rule chapter may be combined with any other notice required by this rule chapter, by the general or special law, or by municipal or county ordinance, pursuant to which the capital project assessment is levied.

(2) A local government must notify persons subject to the assessment of the public hearing in the following manner:

(a) At least 20 days prior to the date of the public hearing, the local government shall send notice by U.S. Mail to each person owning property subject to the assessment. The notice shall include the following information:

1. The purpose for which the assessment was adopted,

2. The total amount to be levied against each parcel,

3. The unit of measurement to be applied against each parcel to determine the assessment,

4. The number of such units contained within each parcel,

5. The total revenue the local government will collect by the assessment,

6. A statement that failure to pay the assessment will cause a tax certificate to be issued against the property which may result in a loss of title,

7. A statement that all affected property owners have a right to appear at the hearing and to file written objections with the local governing board within 20 days of the notice; and,

8. The date, time, and place of the hearing.

Such notice by mail, under this rule section, shall not be required if notice by mail is otherwise required by general or special law and such notice is served at least 30 days prior to the authority’s public hearing on the adoption of a new or amended assessment roll.

(b) At least 20 days prior to the date of the public hearing, the local government must publish notice in a newspaper generally circulated within each county contained in the boundaries of the local government. This published notice shall include at least the following information:

1. The name of the local governing board,

2. The geographic depiction of the property subject to the assessment,

3. The proposed schedule of the assessment,

4. The fact that the assessment will be collected by the tax collector; and,

5. A statement that all affected property owners have the right to appear at the public hearing and the right to file written objections with the local governing board within 20 days of the publication of the notice.

In the event there is no one such newspaper, the local government must use enough newspapers to accomplish this publication requirement.

(3) At the public hearing, the local governing board shall receive the written objections to roll adoption, hear testimony from all interested persons, and may adjourn or recess the hearing from time to time. If the board adopts the non-ad valorem assessment roll, it shall specify the unit of measurement of the assessment and the amount of the assessment as provided in the ordinance or resolution which levied or imposed the non-ad valorem assessment.

(4) The local governing board may increase or decrease the amount of the assessment or the application of the assessment to any affected property based on the benefit which the board will provide, or has provided, to the property with the revenue generated by the assessment, even though the notices required in paragraphs (2)(a) and (b) of this rule section may not give notice of the power of the local governing board to make adjustments.

History

• Rulemaking Authority 195.027(1), 197.3632(11), 197.3635 FS. Law Implemented 163.08, 197.322, 197.363, 197.3631, 197.3632, 197.3635 FS. History–New 2-21-91, Amended 4-18-94, 1-1-04, 9-19-17, 6-13-22.

Fla. Admin. Code R. 12D-18.006 Certification of Assessment Roll

(1) The chairman of the local governing board, or his designee, must certify the non-ad valorem assessment roll, on a compatible electronic medium tied to the property identification number, to the tax collector by September 15 of each year, or by September 25 for any county defined in Section 125.011(1), F.S. The local government must first post the non-ad valorem assessment for each parcel on the roll in a compatible electronic medium. The certification shall be made on Form DR-408A. The tax collector shall not accept any roll which is not so certified and which is not so posted in such compatible electronic medium. The local governing board is responsible for making sure that the roll is free of errors and omissions.

(2) The chairman of the local governing board, or his designee, may make alterations to the roll up to 10 days before certification. If the tax collector discovers errors or omissions on the roll, he may request the local governing board to file a corrected roll or a correction of the amount of any assessment. After the roll has been certified to the tax collector, the local government may make corrections to it by filing Form DR-409A, Certificate of Correction of Non-Ad Valorem Assessment Roll, with the tax collector. Form DR-409A is adopted and incorporated by reference in Rule 12D-16.002, F.A.C. Such form must be in lieu of the form specified in subsection 12D-13.065(1), F.A.C., but must be processed in the same manner under the provisions of that rule section. One copy of the form must be sent to the tax collector and one copy to the property appraiser.

(3) If the non-ad valorem assessment roll is to be collected for a period of more than one year or to be amortized over a number of years, the local governing board must state the collection period or amortization. The board must inform the property appraiser, tax collector and Department on Form DR-412, Notice of Intent, by January 10 if it intends to discontinue using the uniform method of collecting such assessment. Form DR-412 is adopted and incorporated by reference in Rule 12D-16.002, F.A.C. Copies of these forms can be found online at floridarevenue.com/property/forms.

History

• Rulemaking Authority 195.027(1), 197.3632(11), 197.3635, 213.06(1) FS. Law Implemented 197.322, 197.363, 197.3631, 197.3632, 197.3635 FS. History–New 2-21-91, Amended 10-30-91, 9-19-17.

Fla. Admin. Code R. 12D-18.007 Non-Ad Valorem Assessments; Uniform Tax Notice; Merger

(1) Any non-ad valorem assessment, including a special assessment, collected pursuant to this rule chapter shall be included in the combined notice for ad valorem taxes and non-ad valorem assessment pursuant to Section 197.3635, F.S.

(2)(a) One acceptable example format for the form of such combined notice is provided in Form DR-528, Notice of Ad Valorem Taxes and Non-Ad Valorem Assessments (incorporated by reference in Rule 12D-16.002, F.A.C.).

(b) Any assessment not within the definition of a non-ad valorem assessment stated in Section 197.3632(1)(d), F.S., and this rule chapter, and not an ad valorem tax, shall not be properly includable on the tax notice provided in Sections 197.3632(7) and 197.3635, F.S. Any assessment which is a non-ad valorem assessment within the stated definition shall be properly placed below the line in the “non-ad valorem assessment” section of the tax notice, unless it is based upon millage, in which case it shall be placed above the line in the “ad valorem” section of the tax notice.

(3) If, in the most exigent factual circumstances, it is impossible to merge the non-ad valorem assessment roll with any other non-ad valorem assessment rolls, and the tax roll, the tax collector shall mail a separate notice of the non-ad valorem assessments which the tax collector could not merge, or he shall direct the local government to mail such a separate notice.

(a) For a roll certified in the appropriate compatible electronic format, in determining whether exigent factual circumstances exist, the tax collector shall be guided by the following considerations:

1. Whether the local government provided a trial roll at least 30 days prior to the certification date,

2. Whether the proportion of the roll which cannot be merged is substantial,

3. If there are problem parcels regarding splitouts or cutouts, which should be handled through the errors and omissions process stated in Rules 12D-13.006 and 12D-13.007, F.A.C., and

4. If as a result of the problem parcels, the remainder of the roll cannot be merged.

It is recommended that local governments not restrict themselves to the time limits stated in this rule chapter, but expedite the roll to the tax collector.

(b) Such separate notice shall be in a format approved by the Department such as Form DR-528. In deciding whether a separate mailing is necessary, the tax collector shall consider all costs to the local government and taxpayers of such a separate mailing and the adverse effects to the taxpayers of delayed and multiple notices. The local government whose roll could not be merged shall bear all costs associated with the separate notice.

History

• Rulemaking Authority 195.027(1), 197.3632(11), 197.3635, 213.06(1) FS. Law Implemented 197.322, 197.363, 197.3631, 197.3632, 197.3635, 213.05 FS. History–New 2-21-91.

Fla. Admin. Code R. 12D-18.008 Special Assessments Collected Pursuant to Other Law or Before January 1, 1990 Pursuant to Section 197.363, Florida Statutes

(1)(a) A property appraiser may elect, if asked by a local government, to include special assessments on a tax roll pursuant to Section 197.363, F.S., after January 1, 1990, provided such assessments were included on a tax roll pursuant to a written agreement and were collected pursuant to that section prior to that date. The option under this rule chapter to return to the method of collection provided in Section 197.363, F.S., shall remain available even though the special assessments may have been collected by the uniform method or some other method for a period of time. A property appraiser may enter into a written agreement with the local governing board for compliance with Section 197.363(2), F.S., relating to services, including listing assessments on an assessment roll and preparing notices of proposed property taxes.

(b) Effective January 1, 1990, no new non-ad valorem assessments, including special assessments, may be included on the tax roll and certified to the tax collector for collection pursuant to Section 197.363, F.S. Effective January 1, 1990, any alternative method authorized by law under which non-ad valorem assessments are collected shall not require the tax collector or the property appraiser to perform any service as set forth in Sections 197.3632 and 197.3635, F.S. Under such an alternative method, the property appraiser or tax collector may contract with a local government to supply information and services necessary for any such alternative method. Only those assessments levied and collected consistently with Sections 197.363 and 197.3632, F.S., and consistently with sale of tax certificates and tax deeds shall be placed on the tax notice provided in Section 197.3635, F.S.

(2) A local governing board levying special assessments for inclusion on the tax roll pursuant to Section 197.363, F.S., may elect to adopt and certify to the tax collector a non-ad valorem assessment roll to include such special assessments pursuant to Section 197.3632, F.S., after January 1, 1990. To make such election, the local governing board shall:

(a) Notify the property appraiser and tax collector in writing;

(b) Comply with Section 197.3632(2), F.S., as implemented by this rule chapter, by establishing agreements with the property appraiser and tax collector;

(c) Comply with applicable certification provisions of Section 197.3632(5), F.S., as implemented by this rule chapter, relating to certification of the assessment roll to the tax collector; and,

(d) If the certified non-ad valorem assessment roll is amended after certification, comply with all applicable provisions of Section 197.3631, F.S., relating to authorized alternative methods for collection of non-ad valorem assessments, for those assessments amended onto the roll after certification.

(3) A local governing board may also elect to use the uniform method of collection to collect assessments regardless of whether such assessment was levied before or after January 1, 1990, collected in an alternative manner authorized by law, or collected pursuant to Section 197.363, F.S.

History

• Rulemaking Authority 195.027(1), 197.3632(11), 197.3635, 213.06(1) FS. Law Implemented 197.363, 197.3631, 197.3632, 197.3635 FS. History–New 2-21-91, Amended 12-30-97.

Fla. Admin. Code R. 12D-18.009 Non-Ad Valorem Assessments Imposed After January 1, 1990

(1) Effective January 1, 1990, no new non-ad valorem assessments, including new special assessments, may be collected pursuant to Section 197.363, F.S. New non-ad valorem assessments, new special assessments and non-ad valorem assessments for which an election has been made by a local governing board pursuant to Section 197.363(1), F.S., to be collected pursuant to Chapter 197, F.S., shall be collected after January 1, 1990, as provided in Sections 197.3631, 197.3632, 197.3635, F.S.

(2) Effective January 1, 1990, any alternative method authorized by law under which non-ad valorem assessments are levied, certified, and collected shall not require the tax collector or the property appraiser to perform any service as set forth in Sections 197.3632 and 197.3635, F.S. Under such an alternative method, the property appraiser or tax collector may contract with a local government to supply information and services necessary for any such alternative method.

(3) Effective January 1, 1990, a county operating under a charter adopted pursuant to Article VIII, section 11, Florida Constitution (1885), referred to in Article VIII, section 6(e), Florida Constitution (1968), may use any alternative method authorized by law under which non-ad valorem assessments are imposed and collected, but may not use the method in Section 197.363, F.S.

History

• Rulemaking Authority 195.027(1), 197.3632(11), 197.3635, 213.06(1) FS. Law Implemented 197.322, 197.363, 197.3631, 197.3632, 197.3635 FS. History–New 2-21-91.

Fla. Admin. Code R. 12D-18.010 Uniform Method for Collection and Enforcement; Incorporation of Other Provisions; Miscellaneous; Rules of Construction

(1) Non-ad valorem assessments certified and collected pursuant to Section 197.3632, F.S., and special assessments certified and collected pursuant to Section 197.363, F.S., are made subject to all collection provisions of Chapter 197, F.S., including provisions relating to discount for early payment, prepayment by installment method, deferred payment, penalty for delinquent payment, and issuance and sale of tax certificates and tax deeds for non payment. For capital project assessments, a local government may choose not to allow prepayment of capital project assessments. However, if prepayments are allowed, the errors and insolvency procedures described in Section 197.492, F.S., shall be followed.

(2) Therefore, all collection provisions contained in Chapter 12D-13, F.A.C., are incorporated in this rule chapter and made a part of this rule chapter as if fully set forth. For purposes of this rule chapter only, and for purposes of applying the collection provisions of Chapter 12D-13, F.A.C., special assessments and non-ad valorem assessments shall be treated and administered as ad valorem taxes or real property taxes to the extent necessary to apply this rule chapter. In the event of any conflict or inconsistency between Chapter 12D-13, F.A.C., and this rule chapter, the provisions of this rule chapter shall control over the provisions of Chapter 12D-13, F.A.C., to the extent of such conflict or inconsistency.

(3) The collection and enforcement provisions of Chapter 12D-13, F.A.C., shall be expressly applicable to special assessments and non-ad valorem assessments, where the context will permit and, as far as lawfully practicable, shall be applicable to the levy and collection of special assessments and non-ad valorem assessments imposed pursuant to this rule chapter.

(4) In the event that any part of this rule chapter is invalidated by a decision of a court or other tribunal, then the remainder shall remain in effect to the extent possible consistent with such decision.

(5) The provisions of this rule chapter shall not be construed to apply retroactively or to defeat or impair any right under any contract existing on its effective date, or any of the following matters, if validly completed or begun prior to the effective date of this rule chapter:

(a) Rule 12D-18.003, F.A.C., regarding four consecutive weeks advertising notice of intent;

(b) Rule 12D-18.003, F.A.C., regarding passage of a resolution of intent;

(c) Subsection 12D-18.005(2), F.A.C., regarding notice by advertising or first class mail of roll adoption hearing; or

(d) Rule 12D-18.005, F.A.C., regarding levy adopted consistent with Sections 197.3632(4)(a) and (6), F.S., for a term of years.

History

• Rulemaking Authority 195.027(1), 197.3632(11), 197.3635, 213.06(1) FS. Law Implemented 197.322, 197.363, 197.3631, 197.3632, 197.3635 FS. History–New 2-21-91.

Fla. Admin. Code R. 12D-18.011 Incorporation of Forms

History

• Rulemaking Authority 195.027(1), 197.3632(11), 197.3635 FS. Law Implemented 197.322, 197.363, 197.3631, 197.3632, 197.3635 FS. History–New 2-21-91, Amended 12-31-98, Repealed 6-13-22.

Fla. Admin. Code R. 12D-18.012 Tax Collector Non-Ad Valorem Assessment Roll Reports

(1) Each county tax collector must provide a report to the Department of Revenue which includes information about each non-ad valorem assessment collected using the notice of taxes and referenced in Section 197.3632(5)(b), F.S. The following information must be included in the report:

(a) The name of the local government levying the non-ad valorem assessment and a code indicating whether the local government is a county, municipality or independent special district.

(b) The name of the non-ad valorem levy as included on the tax notice.

(c) A short description of the function of the non-ad valorem levy and a code indicating the nature of the function.

(d) The basis of the levy, the unit of measurement against which the rate is applied to determine the non-ad valorem assessment, and a code indicating type of basis.

(e) The rate for each unit or basis of the non-ad valorem levy.

(f) The number of parcels the non-ad valorem assessment is levied on.

(g) The total dollar amount of the non-ad valorem assessment levied.

(h) An indication of whether or not the local government levying the non-ad valorem assessment also levies an ad valorem tax.

(2) The tax collector must file the report with the Department of Revenue by December 15 each year. The report must be filed on Form DR-503NA (incorporated by reference in Rule 12D-16.002, F.A.C.) The tax collector must mail the report to the Florida Department of Revenue, Property Tax Oversight: Non-Ad Valorem Assessments, Post Office Box 3000, Tallahassee, Florida 32315-3000.

History

• Rulemaking Authority 195.027(1), 197.3632(11), 213.06(1) FS. Law Implemented 197.322, 197.363, 197.3631, 197.3632, 197.3635, 213.05 FS. History–New 11-1-12.

Chapter 12D-19 CERTIFIED FLORIDA PROPERTY APPRAISER AND CERTIFIED FLORIDA TAX COLLECTOR PROGRAM

Fla. Admin. Code R. 12D-19.001 Definitions

The following definitions apply to this chapter:

(1) Official or officials: Individuals who are elected or appointed to the offices of county tax collector or county property appraiser in the State of Florida.

(2) Applicant: Individuals who apply for certification as a Certified Florida Appraiser, Certified Florida Evaluator, Certified Florida Collector, Certified Florida Collector Assistant, or Certified Cadastralist of Florida.

(3) Department: The Florida Department of Revenue.

(4) Chairperson: The individual who conducts the admissions and certifications committee meetings, and is a member of said committees.

(5) Professional designee: An elected or appointed official, or an employee of such official or an employee of the Department who has met the requirements for certification as set forth in these rules.

(6) Executive Director: The Executive Director of the Department.

(7) State Associations: The Property Appraisers’ Association of Florida, Inc., Florida Association of Property Appraisers, Inc., and Florida Tax Collectors, Inc.

(8) Committees: The Admissions and Certifications Committees for Certified Florida Appraisers, Certified Florida Evaluators, Certified Cadastralists of Florida, Certified Florida Collectors and Certified Florida Collector Assistants.

(9) Committee Members: Officials who serve on either Admissions and Certifications Committee. Committee members who are property appraisers or tax collectors shall hold the designation of Certified Florida Appraiser or Certified Florida Collector.

(10) Approved Course: Any course, seminar, or workshop approved by the Department for credit towards certification, recertification, or reinstatement. Any course approved under the criteria and procedures described in Rule 12D-19.004, F.A.C., is an approved course.

(11) Governmental Employment: Employment with a Florida county property appraiser, Florida county tax collector, or the Department.

(12) Department Sponsored: In reference to an approved course, a course for which the Department sets the agenda, arranges presenters or space, or collects tuition.

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 4-2-81, Formerly 12-9.01, Amended 4-11-89, 12-30-97, 10-26-21, Formerly 12-9.001.

Fla. Admin. Code R. 12D-19.002 Certified Florida Appraiser, Certified Florida Evaluator, Certified Cadastralist of Florida, Certified Florida Collector, and Certified Florida Collector Assistant Program

(1) A Certified Florida Appraiser, Certified Florida Evaluator, Certified Cadastralist of Florida, Certified Florida Collector, and Certified Florida Collector Assistant program is established and administratered by the Department.

(2) The five certifications are:

(a) Certified Florida Appraiser (CFA).

(b) Certified Florida Evaluator (CFE).

(c) Certified Cadastralist of Florida (CCF).

(d) Certified Florida Collector (CFC).

(e) Certified Florida Collector Assistant (CFCA).

(3)(a) The CFA certification is reserved solely for elected or appointed Florida property appraisers.

(b) The CFE certification is available to employees of Florida county property appraisers and the Department.

(c) The CCF certification is available to property appraisers and employees of Florida county property appraisers and the Department.

(d) The CFC certification is reserved solely for elected or appointed Florida tax collectors.

(e) The CFCA certification is available to employees of Florida county tax collectors and the Department.

(4) The Department will publish an informational booklet or guide about the program presenting these rules, applicable forms, and registration and payment process. This guide is available on the Department’s Certification and Training webpage https://floridarevenue.com/property/Pages/Cofficial_Training.aspx.

(5) The Executive Director, or the Executive Director’s designee, shall appoint two Admissions and Certifications Committees. One committee will administer the certification of property appraisers and employees of Florida county property appraisers as “Certified Florida Appraisers,” “Certified Florida Evaluators,” and “Certified Cadastralists of Florida.” Another committee will administer the certification of tax collectors and employees of Florida county tax collectors as “Certified Florida Collectors” and “Certified Florida Collector Assistants.” The Executive Director, or the Executive Director’s designee, shall serve as permanent chairperson. The Executive Director, or the Executive Director’s designee, shall appoint nine members to each committee, one of whom shall be the president of the members’ state association. In the event the president of the state association does not hold a professional designation as specified in subsection 12D-19.001(9), F.A.C., the president will appoint a designee who does hold such certification. Members of the committees will be appointed for 3 year terms, except for the presidents of the state associations, who shall serve a 1 year term concurrent with their term as president. All members shall serve at the pleasure of the Executive Director, or the Executive Director’s designee.

(6) Five members shall constitute a quorum. No official action shall be taken without a quorum. The committees shall meet at the call of the chairperson. The chairperson shall appoint a permanent secretary to maintain records of actions of the committees and to keep other official records pertaining to the certification program.

(7) The duties of the committees are:

(a) To screen all applicants for certification, and

(b) To recommend to the Department applicants who qualify for the professional designations.

(8) The duties of the chairperson are:

(a) To set an agenda for each committee meeting,

(b) To call meetings based on need; notify members; and give any public notice of date, time and location,

(c) To call all meetings to order and maintain proper parliamentary procedures,

(d) To distribute minutes of prior meetings,

(e) To prepare applicant files with summaries, and

(f) To perform any other duties for the administration and operation of the educational programs.

(9) The Executive Director, or the Executive Director’s designee, will administer the certification of Department employees who meet the qualifications for professional designation as provided in Rule 12D-19.003, F.A.C.

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 4-2-81, Formerly 12-9.02, Amended 4-11-89, 12-19-89, 12-30-97, 4-5-16, 10-26-21, Formerly 12-9.002.

Fla. Admin. Code R. 12D-19.003 Qualifications

(1) To qualify for any of the certifications, an applicant must have at least 2 years experience in a Florida property appraiser’s office, a Florida tax collector’s office, or with the Department. To qualify for the special qualification salary, officials must meet all certification requirements set forth in these rules within 4 years after taking office. A person who is a Certified Florida Evaluator or a Certified Florida Collector Assistant upon being appointed or elected to office will be recognized as a Certified Florida Appraiser or Certified Florida Collector upon taking office.

(2) Applicants for a certification as a Certified Florida Appraiser, Certified Florida Evaluator, Certified Florida Collector, or Certified Florida Collector Assistant must attend a minimum of 120 hours of approved courses and pass monitored examinations. Applicants for a certification as a Certified Cadastralist of Florida must attend a minimum of 150 hours of approved courses and pass monitored examinations.

(3) The approved courses for certification as a Certified Florida Collector or a Certified Florida Collector Assistant must include the following courses:

(a) A minimum of 30 hours of approved courses which include instruction and examination on the duties and responsibilities of a Florida Tax Collector.

(b) A minimum of 90 hours of approved elective courses which include instruction and examination designed to impact expertise in the areas of tax administration, assessment, or collection in Florida.

(4) The approved courses for certification as a Certified Florida Appraiser or a Certified Florida Evaluator must include the following courses:

(a) A minimum of 30 hours of approved courses which include instruction and examination on basic appraisal principles, types of value, and economic principles pertaining to the valuation of real property. A Certified Residential Appraiser license or Certified General Appaiser license issued by the Florida Real Estate Appraisal Board may be substituted for this course requirement.

(b) A minimum of 30 hours of approved courses which include instruction and examination on procedures and methods regarding the income approach to estimating the value of real property. A Certified General Appraiser license issued by the Florida Real Estate Appraisal Board may be substituted for this course requirement.

(c) A minimum of 60 hours of approved elective courses which include instruction and examination related to the professional designation.

(5) The approved courses for a Certified Cadastralist of Florida certification must include the following courses:

(a) A minimum of 30 hours of approved courses which include instruction and examination on mathematic principles for cadastral mappers.

(b) A minimum of 30 hours of approved courses which include instruction and examination on the Public Land Survey System for the Cadastral Mapper.

(c) A minimum of 30 hours of approved courses which include instruction and examination on real property descriptions.

(d) A minimum of 30 hours of approved courses which include instruction and examination on basic map compilation.

(e) A minimum of 30 hours of approved elective courses which include instruction and examination on principles, techniques, or applications of cadastral mapping.

(6) To receive credit for the education requirements, applicants must be present in the classroom during all instructional hours and pass the required examination. Attendance in an online course qualifies as presence in the classroom.

(a) An applicant who wishes to qualify for an initial certification may challenge an examination and receive credit for the instructional course hours without taking the course provided the applicant passes the examination as determined by the course provider. A passing grade on course examinations provided by the Department is a grade of 70% or better. All questions are weighed equally. The applicant must provide documentation of passing the examination in the form of a certificate of completion or other documentation from the course provider.

(b) An applicant who wishes to challenge an examination must contact the course provider to arrange scheduling. An applicant who wishes to challenge an examination for a course provided by the Department must submit a written request to PTOTraining@floridarevenue.com at least 30 days prior to the start of the course.

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 4-2-81, Formerly 12-9.03, Amended 4-11-89, 12-19-89, 12-30-97, 1-2-01, 10-26-21, Formerly 12-9.003.

Fla. Admin. Code R. 12D-19.004 Approval of Courses

(1) Any course approved for credit towards certification, recertification, or reinstatement must be approved by the Department through one of the two methods provided in paragraphs (a) and (b) before the course is taken for credit. The courses must impart expertise in one of the following areas, as it relates to the professional designation of the requesting individual: professionally accepted appraisal practices, appropriate appraisal methodologies, cadastral mapping, tax administration, assessment, or collection in Florida. To be approved as a course for initial certification, the course must contain a monitored examination.

(a) Any course that meets the requirements of the applicable program and is approved by the Department for credit towards certification, recertification, or reinstatment is published on the Department’s Certification and Training webpage https://floridarevenue.com/property/Pages/Cofficial_Training.aspx.

(b) Any course not found in the Department’s list of approved courses will be approved for certification, recertification or reinstatement on a case-by-case basis by the Department’s training staff. Approval is contingent upon documentation showing the proposed course imparts expertise as it relates to the professional designation of the requesting individual in one of the areas in subsection (1).

1. For CFA certifications, continuing education courses must address topics within the following areas as they relate specifically to the functions of property appraisers:

a. Duties and role of property appraisers.

b. Duties and role of the Department.

c. State or federal appraisal law, including professionally accepted appraisal practices and appropriate appraisal methodologies.

d. Management of technology information systems.

e. Office management and personnel training as it relates to property appraiser offices.

f. Public administration.

g. Ethics training required by Section 112.3142, F.S.

2. For CFC certifications, continuing education courses must address topics within the following areas as they relate specifically to the functions of tax collectors:

a. Duties and role of tax collectors.

b. Duties and role of the Department.

c. Duties and roles of state agencies for which tax collectors serve as an agent.

d. State or federal tax law.

e. Management of technology information systems.

f. Office management and personnel training as it relates to tax collector offices.

g. Public administration.

h. Ethics training required by Section 112.3142, F.S.

(2)(a) To obtain approval for a course, a completed Application for Approval of a Course or Continuing Education Credit Hours (Form DR-4002, incorporated by reference in Rule 12D-16.002, F.A.C.) must be submitted to the Department at least 20 days before the course start date. The application must include a detailed written description of the proposed course including course content, an agenda if available, number of hours of instruction and instructor’s qualifications.

(b) The agenda or course description submitted must show quantifiable subject matter. Starting and ending times must be listed for each topic to be assigned hours, and include break and meal times. To be approved as a course for initial certification, the course must contain a monitored examination. Continuing education hours are awarded based on an hour per 50 minutes of classroom time.

(c) The Department will notify the requestor in writing of the approved course, the Department’s course number, and the number of credit hours. This information will also be posted on the Department’s Certification and Training webpage https://floridarevenue.com/property/Pages/Cofficial_Training.aspx.

(d) The Department will consider and approve qualifying substitutions of course presentations and instructors when unavoidable circumstances arise that prevent the course presentation. Before the substitute course presentation, the course provider must submit a detailed written description of the circumstances and the proposed substitution which demonstrates the substitute presentation and instructor meets the criteria of subsection (1).

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 10-26-21, Formerly 12-9.0031.

Fla. Admin. Code R. 12D-19.005 Department Sponsored Courses

(1) Department sponsored courses will be announced at least 60 days before the course start date on the Department’s Certification and Training webpage https://floridarevenue.com/property/Pages/Cofficial_Training.aspx. The continuing education courses include 4 hours of ethics training to meet the requirement of Section 112.3142, F.S., and continuing education hours for recertification or reinstatement.

(2)(a) After the Department announces a course, registration is open as space is available. The registration deadline will be included in the announcement. The registration period closes 15 business days before the course start date for courses in which course materials must be ordered in advance by the Department. The registration period closes 5 business days before the course start date for all other Department sponsored courses. Registrations are timely if made online or received by the Department on or before the close date. Course registrations cannot be accepted after the date the registration period closes.

(b) Participants may register and pay tuition using the Property Tax Oversight Certification and Training Online Registration at https://taxapps.floridarevenue.com/ptoregpublic/. Participants who are unable to register online may contact Property Tax Oversight Program Certification and Training for assistance by email at PTOTraining@floridarevenue.com or by calling (850)717-6570.

(c) Participants are encouraged to register as early as possible. Classes are filled on a first come, first serve basis, once the registration and payment are received. Participants registering less than two weeks before the course start date may inquire whether space is available by contacting Property Tax Oversight Program Certification and Training by email at PTOTraining@floridarevenue.com or by calling (850)717-6570. Student substitutions requested in writing will be accepted up to one week before the class.

(d) Registration is open to all interested parties on a space available basis. The registration process for external individuals is the same as those working for the property appraiser or tax collector.

(3) To cancel attendance at any Department sponsored course, a registrant must email the Department at PTOTraining@floridarevenue.com.

(4) Portions of application, certification, and registration fees will be refunded upon a determination by the Department that the State is not entitled to the fees, or that only a portion of the resources have been expended in the processing of the application, certification, or registration. The Department will not issue a credit instead of a refund. To apply for a refund, the registrant must submit a completed Form DFS-AA-4, State of Florida, Department of Financial Services, Application for Refund (incorporated by reference in Rule 69I-44.020, F.A.C.), and proof of payment to:

PTOTraining@floridarevenue.com or Florida Department of Revenue

Property Tax Oversight

Certification and Training

PO Box 3294

Tallahassee, Florida 32315-3294.

Form DFS-AA-4 is available at https://floridarevenue.com/property/Pages/Cofficial_Training.aspx.

(5) When the number of students enrolled in a Department sponsored course is insufficient to adequately cover the costs of course administration, or the Department cannot secure an instructor, the course will be cancelled. The Department will notify students affected by a course cancellation by email at least ten business days before the scheduled course start date. Affected students may apply for a refund or opt to transfer course registration to another course in that program.

History

• Rulemaking Authority 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 10-26-21, Formerly 12-9.0032.

Fla. Admin. Code R. 12D-19.006 Application for Certification

(1) An applicant for certification shall provide the Department the following:

(a) A completed Application for Florida Professional Certification (Form DR-4001, incorporated by reference in Rule 12D-16.002, F.A.C.). Form DR-4001 is available on the Department’s Certification and Training webpage https://floridarevenue.com/property/Pages/Cofficial_Training.aspx.

(b) The originals or copies of certificates or other documents, course transcripts and current related professional licenses showing completion of the required courses as set forth in these rules.

(c) Certification fee in an amount set as referenced in Rule 12D-19.007, F.A.C.

(2) Upon the committee’s review of an application for certification, a majority vote of the members present is required to approve an application. The chairperson shall cast the deciding vote in the case of a tie.

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002, 195.087(4) FS. History–New 4-2-81, Formerly 12-9.04, Amended 4-11-89, 12-30-97, 10-26-21, Formerly 12-9.004.

Fla. Admin. Code R. 12D-19.007 Fees and Tuition

(1) An applicant for certification will not be eligible for consideration by a committee until the certification fee is paid. Recertification fees are due January 1 of each year and are delinquent April 1. Certification and recertification fees shall be set as follows:

(a) All applicants shall pay an initial certification fee of $25.00.

(b) All Certified Florida Appraisers, Certified Florida Collectors, Certified Florida Collector Assistants, Certified Florida Evaluators, and Certified Cadastralists of Florida shall pay an annual recertification fee of $5.00.

(c) All persons seeking reinstatement of a certification must pay a reinstatement fee of $5.00.

(2) The Department will determine the cost of course tuition annually to ensure the Certification Program Trust Fund has sufficient funds to pay for program expenses. The Department will provide course tuition information by March 1 for the next county fiscal year (October 1 through September 30) on the Department’s Certification and Training webpage https://floridarevenue.com/property/Pages/Cofficial_Training.aspx.

(3) All fees and course tuition payments must be submitted to the Department by:

(a) Using Property Tax Oversight Certification and Training Online Registration at https://taxapps.floridarevenue.com/ptoregpublic/, or

(b) Mailing a check or money order made payable to the Florida Department of Revenue to:

Florida Department of Revenue

Property Tax Oversight

Certification and Training

PO Box 3294

Tallahassee, Florida 32315-3294.

(4) The Department shall select a treasurer for each committee who shall be a Department employee and who shall be responsible for the collection and deposit of monies and for the custody of the tangible assets accruing from the program. Such monies shall be deposited into and disbursed from the Certification Program Trust Fund in the State Treasury which shall contain such separate school accounts and program accounts as are required by Section 195.002(2), F.S. The Department may incur expenses enumerated in Section 195.002(2), F.S., and shall authorize disbursals from the trust fund in the manner provided by law.

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002, 195.087(4) FS. History–New 4-11-89, Amended 12-19-89, 10-30-91, 12-30-97, 10-26-21, Formerly 12-9.0055.

Fla. Admin. Code R. 12D-19.008 Certification

(1) No certification shall be issued by the Department until the provisions of Rule 12D-19.006, F.A.C., are satisfied and the appropriate committee has recommended certification. The minutes of the meeting of the appropriate committee wherein a majority of the members present approved an application for certification or signatures of a majority of the members of a committee shall serve as evidence of approval.

(2) To prorate the special qualification salary for property appraisers and tax collectors, the certification date shall begin the first day of the month following the date the last educational or other requirement for certification was met. Employees are qualified for certification as of the first day of the month following the date the last educational or other requirement for certification was met. Any person who is a Certified Florida Evaluator or Certified Florida Collector Assistant that is elected or appointed as a property appraiser or a tax collector will be recognized as a Certified Florida Appraiser or Certified Florida Collector as of the first day of the month following the date the official took office.

(3) After a committee approves a certification of an applicant, the Department will mail such person a certificate of accomplishment and membership card in a format prescribed by the Department. In addition, each professional designee will be issued a pin composed of the Great Seal of the State of Florida, with certification wording and the initials of the designation on the periphery of the state seal.

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 4-2-81, Formerly 12-9.06, Amended 4-11-89, 12-30-97, 10-26-21, Formerly 12-9.006.

Fla. Admin. Code R. 12D-19.009 Recertification

(1)(a) To be recertified, Certified Florida Appraisers and Certified Florida Collectors must complete a minimum of 24 hours of approved courses that meet the criteria of subsection 12D-19.004(1), F.A.C., each calendar year and pay a recertification fee, as specified in paragraph 12D-19.007(1)(b), F.A.C.

(b) To be recertified, Certified Florida Evaluators, Certified Cadastralists of Florida, and Certified Florida Collector Assistants must certify their governmental employment each calendar year and pay a recertification fee, as specified in paragraph 12D-19.007(1)(b), F.A.C. At the discretion of each official, professional designees employed by such official may be required to maintain recertification by completing a designated number of continuing education hours.

(c) Professional designees applying for recertification must submit a completed Application for Florida Professional Certification (Form DR-4001, incorporated by reference in Rule 12D-16.002, F.A.C.) to the Department. Certification automatically expires if recertification as set forth in this rule is not maintained timely.

(2) Professional designees are exempted from the recertification requirement and recertification fee for the calendar year in which the requirements for certification are met.

(3) An applicant for recertification may not challenge a course examination.

(4) If a professional designee fails to meet recertification requirements set forth in this rule, within the prescribed time, that professional designee’s certification shall expire. Officials whose certifications expire shall be ineligible to receive the special qualifications salary provided in Sections 145.10 and 145.11, F.S. Such ineligibility shall continue until the official is reinstated as provided in these rules.

(5) When a certified official has become ineligible to receive the special qualifications salary by failure to meet recertification requirements, the Department shall notify the official by sending a written notice of the reason for such ineligibility. The Department shall notify the appropriate disbursement office of such ineligibility. That office shall withhold the prorated portion of the annual $2,000 salary supplement until certification is reinstated as provided in Rule 12D-19.010, F.A.C.

(6) Where a certified official has become ineligible to receive the special qualifications salary and continues to draw such compensation, the official shall be liable for full restitution and subject to appropriate legal action.

(7) Certification shall be conditional upon a professional designee’s governmental employment, and certification shall expire automatically without notice to the holder when a professional designee leaves governmental employment. A person who leaves governmental employment and fails to meet annual recertification requirements must, upon returning to governmental employment, follow the reinstatement procedures to become certified. If a person returns to governmental employment and timely meets the annual recertification requirements, that person remains certified and does not need to meet the reinstatement requirements. Each property appraiser and tax collector shall notify the Department when a professional designee within the office leaves governmental employment.

(8) Upon written application and proof that the property appraiser has 20 years of service, the Executive Director may grant an annual waiver of the recertification requirements for any property appraiser who has reached 60 years of age.

(9) The Department shall maintain records of approved courses, attendance, approval dates, hours of courses, and all other information for the purpose of maintaining current records on all professional designees’ continuing education status.

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 4-2-81, Formerly 12-9.07, Amended 4-11-89, 12-30-97, 10-26-21, Formerly 12-9.007.

Fla. Admin. Code R. 12D-19.010 Reinstatement

(1) Once a professional designee’s certification has expired, that person may apply to the Department for reinstatement. Such applicant must meet the reinstatement requirements in subsection (2), and receive approval for reinstatement from the Department and the committee. Applications for reinstatement will be considered by the committee at its next meeting.

(2) The requirements for reinstatement are:

(a) For the professional designation for property appraisers and tax collectors, the professional must complete a minimum of 24 hours of approved continuing education courses which relate to their professional designation.

(b) For all previously certified professional designees seeking reinstatement, the professional must submit a completed Application for Florida Professional Certification (Form DR-4001, incorporated by reference in Rule 12D-16.002, F.A.C.) certifying their governmental employment and reporting any continuing education courses required for reinstatement.

(c) For all previously certified professional designees, pay the reinstatement fee set forth in Rule 12D-19.007(1)(c), F.A.C.

(3) Reinstatement is effective the first day of the month after the requirements of this rule have been met.

History

• Rulemaking Authority 195.002(2), 195.027(1) FS. Law Implemented 145.10, 145.11, 195.002 FS. History–New 10-26-21, Formerly 12-9.0077.

Chapter 12D-51 STANDARD ASSESSMENT PROCEDURES AND STANDARD MEASURES OF VALUE; GUIDELINES

Fla. Admin. Code R. 12D-51.001 Florida Agricultural Classified Use Real Property Appraisal Guidelines

Pursuant to Section 195.062, F.S., these guidelines are adopted in general conformity with the procedures set forth in Section 120.54, F.S., but do not have the force and effect of rules and are to be used only to assist property appraisers in the assessment of agricultural property as provided by Section 195.002, F.S. These guidelines are titled Florida Agricultural Classified Use Real Property Appraisal Guidelines (June 2024). Copies of these guidelines may be obtained from the Department’s website at floridarevenue.com/property/Pages/Cofficial_MOI.aspx.

History

• Rulemaking Authority 195.027(1), 195.032 FS. Law Implemented 193.461, 195.032, 195.062 FS. History–New 12-30-82, Formerly 12D-51.01, Amended 6-18-24.

Fla. Admin. Code R. 12D-51.002 Standard Measures of Value: Tangible Personal Property Appraisal Guidelines

Pursuant to Section 195.062, F.S., these guidelines are adopted in general conformity with the procedures set forth in Section 120.54, F.S., but shall not have the force and effect of rules. These guidelines are to be used only to assist property appraisers in the assessment of tangible personal property as provided by Section 195.002, F.S. These guidelines supersede any previous tangible personal property appraisal guidelines and are entitled:

Standard Measures of Value:

Tangible Personal Property

Appraisal Guidelines Rev. 12/97

Copies of these guidelines may be obtained from the Department of Revenue, Property Tax Oversight Program, P.O. Box 3000, Tallahassee, Florida 32315-3000 and may be found on the Internet at http://dor.myflorida.com/dor/property/.

History

• Rulemaking Authority 195.027(1), 195.032, 213.06(1) FS. Law Implemented 195.032, 195.062, 213.05 FS. History–New 12-30-97.

Fla. Admin. Code R. 12D-51.003 Florida Real Property Appraisal Guidelines

Pursuant to Section 195.062, F.S., this rule shall give notice that these guidelines are available from the address given below. These guidelines do not have the force and effect of rules. These guidelines are entitled:

Florida Real Property Appraisal Guidelines Rev. 11/26/02.

Copies of these guidelines may be obtained from the Department of Revenue, Property Tax Oversight Program, P.O. Box 3000, Tallahassee, Florida 32315-3000 and may be found on the Internet at http://dor.myflorida.com/dor/property/.

History

• Rulemaking Authority 195.027(1), 195.032, 213.06(1) FS. Law Implemented 195.032, 195.062, 213.05 FS. History–New 12-30-02.

Division 12A Sales and Use Tax, Surtax, Surcharge, and Fees; Communications Services Tax

Chapter 12A-1 SALES AND USE TAX

Fla. Admin. Code R. 12A-1.001 Specific Exemptions

(1) Art sold to or used by an educational institution.

(a) A “work of art,” as defined in Section 212.08(7)(cc)8., F.S., is exempt from sales and use tax if the work of art is sold to or used by an educational institution, as defined in Section 212.08(7)(cc)8., F.S., or if it is purchased in Florida or imported into Florida within six months from the date of purchase by any person exclusively for the purpose of being donated to, or being loaned to and made available for display by, an educational institution. A work of art is presumed to have been purchased in or imported into this state exclusively for loan to an educational institution if it is so loaned or placed in storage in preparation for such a loan within 90 days after purchase or importation, whichever is later. A work of art will not be deemed to be “in storage” for purposes of this subsection if it is displayed at any place other than an educational institution.

(b) The purchaser or his authorized agent must: (1) complete an affidavit documenting entitlement to the exemption provided in Section 212.08(7)(cc), F.S., (2) present the affidavit to the seller of the work of art, and (3) forward a copy of the affidavit to the Department of Revenue when it is presented to the vendor. A purchaser may authorize his or her agent to execute such affidavit by a documented Power of Attorney and Declaration of Representative filed with the Department. The Department prescribes Form DR-835, Power of Attorney and Declaration of Representative (incorporated by reference in Rule 12-6.0015, F.A.C.), as the form to be used for such purposes.

(c) The following is a suggested format of the affidavit to be provided by the purchaser or the authorized agent to the vendor of the work of art:

AFFIDAVIT FOR EXEMPTION OF A WORK

OF ART TO BE DONATED OR LOANED TO

AN EDUCATIONAL INSTITUTION

I, the undersigned, claim exemption under Section 212.08(7)(cc), F.S., from Florida sales and use tax on the work(s) of art, described below, purchased in Florida or imported into Florida exclusively for the purpose of being (check one)

___ donated to _________________, an educational institution as defined in Section 212.08(7)(cc)8., F.S.

___ loaned to ___________________, an educational institution as defined in Section 212.08(7)(cc)8., F.S.

If a donation, title to the work(s) of art is being or will be transferred to the educational institution, and at the time of transfer, I will submit to the Department an affidavit evidencing the transfer of title.

If a loan:

• The work(s) of art will be loaned to the educational institution or placed in storage in preparation for loan within 90 days after it was purchased in or imported into Florida. If placed in storage, it will not be displayed until such time as it is delivered to an educational institution.

• I have entered into a written agreement with the educational institution providing for a loan of the work(s) of art and making the work(s) of art available to the educational institution for display for a term of not less than 10 years, or will do so before the transfer of possession of the work(s) of art to the educational institution occurs. A copy of the loan agreement will be provided to the Florida Department of Revenue at the time that the agreement is executed.

• I understand that the exemption provided in Section 212.08(7)(cc), F.S., is allowed during the period of time in which the work(s) of art is in the possession of the educational institution.

• I understand that tax based upon the sales price as stated below will become due and payable at the time the provisions of Section 212.08(7)(cc), F.S., are no longer met, and the statute of limitations as provided in Section 95.091, F.S., will begin to run at that time. However, if I donate the work(s) of art to an educational institution after the loan ceases, no tax be due.

• A signed copy of this affidavit is being forwarded to the Florida Department of Revenue at the time the original is given to the seller of the work(s) of art.

Name of Purchaser __________________________________________________________________________________________

Purchaser’s Permanent Address _________________________________________________________________________ (Street)

____________________________________________ (City) __________________________________________________ (State)

Name of Seller _____________________________________________________________________________________________

Seller’s Permanent Address ____________________________________________________________________________ (Street)

____________________________________________ (City) __________________________________________________ (State)

DESCRIPTION OF WORK(S) OF ART _________________________________________________________________________

---

---

---

---

Sales Price _____________________ Date of Sale _________________________________________________________________

Name of Educational Institution _______________________________________________________________________________

Institution’s Address __________________________________________________________________________________ (Street)

_______________________________________________ (City) _______________________________________________ (State)

Educational Institution’s Florida Consumer’s Certificate of Exemption Number ________________________________________

Under penalties of perjury, I declare that I have read the foregoing affidavit, and the facts stated in it are true to the best of my knowledge and belief.

---

(Signature of Purchaser or Authorized Agent)

Original to be retained by the seller and made part of the seller’s records.

1st Copy to be submitted to the Florida Department of Revenue, General Tax Administration MS 1-2800, P.O. Box 6417, Tallahassee, Florida 32314-6417.

2nd copy: Purchaser’s copy.

(d) The following is a suggested format of an affidavit of transfer of title to be provided by the purchaser or the authorized agent to the educational institution, as defined in Section 212.08(7)(cc)8., F.S., upon donation of a work of art to that institution:

AFFIDAVIT TRANSFERRING TITLE OF A WORK

OF ART TO AN EDUCATIONAL INSTITUTION

I, the undersigned, claim exemption under Section 212.08(7)(cc), F.S., from Florida sales and use tax on the work(s) of art, described below, purchased in Florida or imported into Florida for the exclusive purpose of being donated to ___________________________, an educational institution as defined in Section 212.08(7)(cc)8., F.S. A copy of the affidavit provided to the vendor of the work(s) of art at the time of purchase is attached.

Title to the work(s) of art has been, or is being, transferred to the educational institution, effective ________________ (date; no later than the date of this affidavit). Copies of any other documents evidencing the transfer of title to the educational institution are attached to this affidavit and are being forwarded to the Florida Department of Revenue with the affidavit.

A signed copy of this affidavit is being forwarded to the Florida Department of Revenue at the time the original is given to the educational institution.

Name of Transferor __________________________________________________________________________________________

Transferor’s Permanent Address _________________________________________________________________________ (Street)

________________________________________________ (City) _______________________________________________(State)

DESCRIPTION OF WORK(S) OF ART _________________________________________________________________________

---

---

Date Purchased _____________________________________________________________________________________________

Name and Address of Person from Whom Purchased ________________________________________________________________

---

Name of Educational Institution ________________________________________________________________________________

Institution’s Address ___________________________________________________________________________________(Street)

___________________________________________________________________ (City) ____________________________(State)

Educational Institution’s Florida Consumer’s Certificate of Exemption Number __________________________________________

Under penalties of perjury, I declare that I have read the foregoing affidavit, including all attachments, and the facts stated in it are true to the best of my knowledge and belief.

---

(Signature of Transferor)

Original to be retained by the educational institution and made part of that institution’s records.

1st Copy to be submitted to the Florida Department of Revenue, General Tax Administration MS 1-2800, P.O. Box 6417, Tallahassee, Florida 32314-6417.

2nd copy: Donor’s copy.

(e) The exemption provided to the purchaser of a work of art loaned to an educational institution is not terminated if the educational institution, loans the work of art to another educational institution(s) and the physical custody of such work of art is returned to the lending educational institution at the termination of the loan agreement(s). Any educational institution which transfers possession of a work of art that is exempt under this subsection to other educational institutions is required to notify the Department within 60 days of such transfers. The notification must include a description of the work of art, the name and address of the purchaser who loaned it, the names and addresses of each of the educational institutions receiving the work of art for display, and the time periods that the work of art will be displayed at each identified educational institution.

(f) Any educational institution in this state that has received from a purchaser a work of art that is exempt under this subsection is required to notify the Department within 60 days that it has received the work of art. The notification to the Department must include a description of the work of art, the name and address of the purchaser who loaned it, and the date on which the transfer of possession occurred.

(g) Any educational institution which displays a work of art received on loan that is exempt under Section 212.08(7)(cc), F.S., is required to maintain any written agreements, notifications, affidavits, and any other documentation which substantiates the educational institution’s right to display the work of art until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S., and such documentation shall be made available to the Department upon request.

(h) Any educational institution that transfers from its possession a work of art received on loan that is exempt under Section 212.08(7)(cc), F.S., is required to notify the Department within 60 days after the transfer, except for transfers which do not terminate the exemption provided in Section 212.08(7)(cc), F.S., for purposes such as storage, repairs, conservation and restoration, authentication, insurance examination, valuation, appraisal, research, photography and reproduction, or fumigation during which the work of art is not displayed and the educational institution maintains documentation to substantiate that such transfers do not constitute a transfer of possession for purposes of display of such work of art. The notification to the Department must include a description of the work of art, the name and address of the purchaser who loaned it, the name and address of to whom the work of art is transferred, and the date on which the transfer of possession occurred.

(i) Documents and notifications required to be provided to the Department should be mailed to the following address:

Florida Department of Revenue

General Tax Administration MS 1-2800

P.O. Box 6417

Tallahassee, Florida 32314-6417

(2) Service transactions.

(a)1. An interior decorator’s so-called fee is taxable as a part of the selling price under Section 212.02(16), F.S., or as a part of the cost price under Section 212.02(4), F.S., and cannot be exempted as a professional or personal service charge when the transaction involves the sale of tangible personal property. This is true when the so-called fee is paid in the form of a trade discount, as is the case when a supplier grants the decorator a trade discount and the decorator in turn bills the client for the full list price. The decorator fee is also taxable when it appears as an amount added to the decorator’s cost when billed to the client for tangible personal property on a cost plus basis.

2. If the decorator’s fee is solely for designing the interior and exterior decorative scheme or for advising his clients and recommending colors, paints, wallpaper, fabrics, brands, sources of supply, etc., and there is no sale of tangible personal property involved, then such fee would be exempt as a professional or personal service transaction.

3. In some instances, the decorator may receive a fixed sum, which is not in any way contingent upon the sale of tangible personal property, as a so-called decorator fee. Then, in other completely unrelated transactions, he may sell tangible personal property to the same client. In such cases the decorator’s fee cannot be considered as a part of the selling price of the property sold because there is no connection between the transactions.

4. If the decorator’s client reimburses the decorator for the payroll cost of personnel on the decorator’s payroll assigned to a specific project, the duties performed by such employees will determine whether or not this item is taxable. For example, if these employees were engaged in painting murals on walls, etc., the charge made for their services is exempt, whereas, if these employees fabricate tangible personal property such as making bedspreads or draperies then the charge for their labor is taxable.

(b) When an architect or engineer furnishes his client or customer with a scale, working, or other model, the total amount he charges his customer therefor is taxable. This constitutes the sale of tangible personal property and is not exempt as an inconsequential element of a personal service transaction.

(c) The taking of dictation or the video recording by a public stenographer are exempt as professional services. Charges for attendance and the stenographic or videotape recordings of proceedings at a trial, hearing, conference, or similar function by a court reporter are exempt as professional services. Charges made by court reporters for transcripts or videotapes of proceedings are exempt as professional services when furnished to parties to the proceedings. Charges for transcripts or videotapes to third persons who are not parties to the proceedings for which the reporter was engaged are taxable.

(3) Guide dogs for the blind.

(a) A partially sighted or blind person who holds a Consumer’s Certificate of Exemption for the Blind (Form DR-152) issued by the Department may purchase or rent a guide dog and purchase food or other items for the guide dog without payment of the tax at the time of purchase. The holder of the certificate is required to provide the certificate to the selling dealer at the time of purchase or lease. The selling dealer is required to record the name, address, and identification card number of the certificate holder on the invoice or other written evidence of the sale.

(b) Any partially sighted or blind person who holds an identification card, as provided in Section 413.091, F.S., issued by the Department of Education may apply to the Department to obtain a Consumer’s Certificate of Exemption for the Blind (Form DR-152). The application submitted to the Department must be signed by the applicant and contain the applicant’s name, address, and number of the identification card issued pursuant to Section 413.091, F.S. This information may be submitted to the Department on Form DR-151, Blind Person’s Application for Certificate of Exemption.

(4) FLAGS. The sale of the United States flag or the official state flag of Florida is exempt. The sale of a kit as a unit which includes the flag of the United States or the official flag of Florida and related accessories, such as a mounting bracket, a standard, a halyard, and instructions on the display of the flag is also exempt. The sale of any accessories, when not sold as a part of a kit containing a flag, is taxable.

(5) Resource recovery equipment or machinery.

(a) Resource recovery equipment or machinery used in a facility owned and operated exclusively by or on behalf of any county or municipality is exempt. To qualify for exemption, the resource recovery equipment or machinery must:

1. Be certified as resource recovery equipment or machinery by the Department of Environmental Protection under Section 403.715, F.S., and Rule Chapter 62-704, F.A.C., Certification of Resource Recovery Equipment; and,

2. Be owned or operated exclusively by or on behalf of a county or municipality.

(b) To obtain certification of the resource recovery equipment or machinery, application must be made to the Department of Environmental Protection. The Department of Environmental Protection will issue a final examination and certification for qualifying resource recovery equipment or machinery after the equipment or machinery is installed and operational. Prior to the purchase and installation of qualifying resource recovery equipment or machinery, a preliminary examination report may be obtained from the Department of Environmental Protection. Persons who obtain a preliminary examination report must also obtain a final examination and certification after the equipment or machinery is installed and operational. Copies of preliminary examination reports and final examination and certifications issued by the Department of Environmental Protection are provided to the Department of Revenue.

(c)1. Preliminary examination reports. A temporary exemption applies to the resource recovery equipment or machinery specified in the preliminary examination report issued by the Department of Environmental Protection. The temporary exemption is contingent upon final examination and certification of the resource recovery equipment or machinery by the Department of Environmental Protection.

2. Applicants who have received a preliminary examination report may purchase the resource recovery equipment or machinery identified in the preliminary report tax-exempt. A county or municipality that has received a preliminary examination report may issue a copy of its Florida Consumer’s Certificate of Exemption to make tax-exempt purchases of the identified resource recovery equipment or machinery. Prime contractors and subcontractors who have entered into a contractual agreement with a county or municipality to purchase the identified resource recovery equipment or machinery may purchase the equipment or machinery tax-exempt by issuing a written certification to the selling dealer. The prime contractor or subcontractor must certify that the equipment or machinery qualifies as resource recovery equipment or machinery that will be used exclusively by or on behalf of a county or municipality, as provided in Section 212.08(7)(q), F.S. The following is a suggested format of a written certification:

CERTIFICATION FOR RESOURCE RECOVERY EQUIPMENT OR MACHINERY

This is to certify that the resource recovery equipment or machinery, as described below, purchased on or after ________ (DATE) from ___________ (VENDOR) is purchased for use as qualifying resource recovery equipment or machinery, pursuant to Section 212.08(7)(q), Florida Statutes, and will be used exclusively by or on behalf of a county or municipality.

Resource Recovery Equipment or Machinery:

---

---

---

I understand that if I use the equipment or machinery for any other purpose, I must pay tax on the purchase price of the taxable property directly to the Department of Revenue.

I understand that it is a criminal offense to fraudulently issue this certificate to evade the payment of sales tax and that I will be liable for payment of the sales tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Purchaser’s Name ____________________________________________________

Purchaser’s Address __________________________________________________

Name and Title of Authorized Representative ______________________________

By ________________________________________________________________

(Signature of Purchaser)

---

(Date)

3. The purchaser is required to pay tax at the time of purchase on any item identified in the preliminary examination report by the Department of Environmental Protection that does not qualify as possible resource recovery equipment or machinery.

(d) Final examination and certification. Resource recovery equipment or machinery identified in a final examination and certification issued by the Department of Environmental Protection is exempt. Applicants, prime contractors, and subcontractors who obtained a preliminary examination report are entitled to an exemption for the resource recovery equipment or machinery identified in the final examination and certification. If it is determined by the Department of Environmental Protection that an item identified in the final examination and certification does not qualify as resource recovery equipment or machinery, tax, plus the applicable penalty and interest computed from the date of purchase, is due to the Department immediately.

(e) Refunds.

1. If an applicant, prime contractor, or subcontractor did not obtain a temporary exemption from the Department to purchase resource recovery equipment or machinery identified in the final examination and certification tax-exempt, the exemption may be obtained through a refund of previously paid taxes. Refunds will not be allowed until information has been provided to the satisfaction of the Executive Director or the Executive Director’s designee that the resource recovery equipment or machinery meets the requirements of Section 212.08(7)(q), F.S. and this rule. The purchaser of the qualified resource recovery equipment or machinery is entitled to a refund of Florida tax paid on the qualifying resource recovery equipment or machinery. The purchaser must obtain a certified statement from its supplier(s) certifying that the supplier(s) has remitted the tax to the Department. If the purchaser paid tax directly to the Department, the purchaser is required to provide documentation that the tax was remitted directly to the Department.

2. The following is a suggested format for a certified statement to be issued by the supplier that tax has been remitted to the Department:

______(COMPANY), its undersigned officer who is duly authorized, hereby certifies to __________(CONTRACTOR OR SUBCONTRACTOR) it has paid sales tax to the Florida Department of Revenue totaling the sum of $. The taxes were collected by (COMPANY) upon the sales of equipment or machinery as evidenced by the attached invoice(s).

The company further certifies the sales tax for the attached invoice(s) was paid to the Department of Revenue in the month following the date of sale under sales tax certificate number ________________.

---

SIGNATURE OF AUTHORIZED OFFICER OF COMPANY

BY: ________________________________

TITLE: _____________________________

DATE: _____________________________

3. An Application for Refund-Sales and Use Tax (Form DR-26S, incorporated by reference in Rule 12-26.008, F.A.C.) must be filed within 3 years after the date the tax was paid in accordance with the timing provisions of Section 215.26(2), F.S. A copy of the final examination and certification issued by the Department of Environmental Protection, the documentation to evidence the payment of Florida tax, and the certified statement(s) from the supplier(s) that tax has been remitted to the Department must accompany the application for refund. An application for refund will not be considered complete pursuant to Sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C., and a refund will not be approved until the applicant can demonstrate that the resource recovery equipment or machinery has been certified by the Department of Environmental Protection and that tax on the purchase of the equipment or machinery has been remitted to the Department.

(6) SPORTING EQUIPMENT. Sporting equipment brought into Florida, for a period of not more than 4 months in any calendar year, used by an athletic team or an individual athlete in a sporting event or series of sporting events is exempt from the use tax if such equipment is removed from the state within 7 days after the completion of the sporting event or a series of sporting events.

(a) Example: A major league professional baseball team brings sporting equipment into Florida early in a calendar year for spring training and exhibition games, and keeps the equipment in the state for two and one-half months, and removes it from the state within 7 days after the last of the series of exhibition games. The sporting equipment is exempt from use tax, since it was in the state less than 4 months during the year, and was removed within 7 days after the last of a series of sporting events.

(b) Example: A race car is brought into Florida for racing purposes. It is in the state for less than 4 months in a calendar year. The race car is exempt from use tax if the race car is removed from the state within 7 days after completion of the racing event.

History

• Rulemaking Authority 212.08(7)(h)2., (cc)3., 5., 212.18(2), 213.06(1) FS. Law Implemented 212.05, 212.08(7)(f), (h), (q), (v), (x), (cc), 212.085, 213.255(2), (3), 213.37, 215.26 FS. History–New 1-7-68, Amended 1-7-70, 1-17-71, 6-16-72, 7-19-72, 12-11-74, 5-27-75, 10-21-75, 9-7-78, 9-28-78, 10-18-78, 9-16-79, 2-3-80, 6-3-80, 7-7-80, 10-29-81, 12-3-81, 12-31-81, 7-20-82, 11-15-82, 10-13-83, 4-12-84, Formerly 12A-1.01, Amended 7-9-86, 1-2-89, 12-1-89, 7-7-92, 9-14-93, 5-18-94, 12-13-94, 3-20-96, 4-2-00, 6-28-00, 6-19-01, 10-2-01(1), (2), 10-2-01(2)-(7), 10-2-01(3)-(7), 8-1-02, 6-4-08, 12-31-20, 1-1-24, 12-29-25.

Fla. Admin. Code R. 12A-1.0011 Schools Offering Grades K through 12; Parent-Teacher Associations; and Parent-Teacher Organizations

(1)(a) For purposes of this rule, “schools offering grades K through 12” means state tax-supported, or parochial, church, and nonprofit private schools operated for and attended by pupils of grades K through 12.

(b) For purposes of this rule, “Parent-Teacher Organizations (PTOs)” and “Parent-Teacher Associations (PTAs)” mean those nonprofit organizations associated with schools whose purpose is to raise funds for schools teaching grades K through 12.

(2) Purchases by school districts.

(a) School districts may purchase taxable goods and services necessary for parent-teacher associations or parent-teacher organizations tax exempt, as provided in Section 212.0821, F.S.

(b) The purchases made by the school district must be made with funds provided by the parent-teacher association or parent-teacher organization to the school district. The school district may extend a copy of its Consumer’s Certificate of Exemption to the selling dealer at the time of the purchase to make such tax exempt purchases.

(3) Sales of school materials and supplies and fundraising items.

(a) The sale of schoolbooks used in regularly prescribed courses of study in schools offering grades K through 12 is exempt. Schoolbooks include printed textbooks and workbooks containing printed instructional material, such as questions and answers, that are used in regularly prescribed courses of study in schools offering grades K through 12.

(b) The sale of yearbooks, magazines, newspapers, directories, bulletins, and similar publications distributed by schools offering grades K through 12 is exempt.

(c)1. Schools offering grades K through 12 and parent-teacher associations or parent-teacher organizations whose primary purpose is to raise funds for such schools may pay tax to their suppliers on the cost price of items in lieu of registering as a dealer, obtaining a Consumer’s Certificate of Exemption, or collecting tax on their sales of the following taxable items:

a. School materials and supplies purchased, rented, or leased for resale or rental to students attending grades K through 12;

b. Items sold for fundraising purposes, such as candy, photographs, greeting cards, wrapping paper, and similar fundraising items;

c. Items sold through vending machines located on the school premises;

d. Food and beverages sold through vending machines located on school premises in locations other than the student lunchroom, student dining room, or other area specifically designated for student dining. See subsection (4).

2. Example: A parent-teacher association operates a book store selling school supplies, such as pencils, paper, and notebooks, to elementary school students. The parent-teacher association is not registered as a dealer. The parent-teacher association must pay tax to its suppliers on items sold to students in the book store, but is not required to collect sales tax from the students purchasing items from the book store.

(d)1. Schools offering grades K through 12, parent-teacher associations, and parent-teacher organizations that do not elect to pay tax to their suppliers on the purchase of items, as provided in paragraph (c), must register in the same manner as other dealers and collect and remit tax on taxable transactions. (See Rule 12A-1.060, F.A.C.) As registered dealers, schools offering grades K through 12, parent-teacher associations, and parent-teacher organizations may issue a copy of their Annual Resale Certificate (Form DR-13) in lieu of paying tax on the purchased items for the purposes of resale.

2. Example: A parent-teacher organization holds a fund raising event to purchase additional computers for the school library. The students and faculty will obtain orders for a variety of gift items that will be purchased from a company engaged in the business of assisting schools with fund raising events. The parent-teacher organization collects the orders, determines the gift items that have been ordered in total, and places its order with the company. Payment to the company is made directly by the parent-teacher organization. If the parent-teacher organization does not pay sales tax to the company for its purchases of gift items, the parent-teacher organization must register as a dealer and collect and remit sales tax on its sales of the gift items. The parent-teacher organization may extend a copy of its Annual Resale Certificate to purchase the gift items tax exempt for the purposes of resale.

(4) Sales of food and beverages.

(a) Food and beverages sold or served in the student lunchroom, student dining room, or other area designated for student dining in schools offering grades K through 12, as part of a school lunch to students, teachers, school employees, or school guests are exempt.

(b) Food and beverages sold or dispensed through vending machines or other dispensing devices located in the student lunchroom, student dining room, or other area designated for student dining in schools offering grades K through 12 are exempt.

(c) Food and beverages sold through vending machines or other dispensing devices located in a gymnasium, shop, teachers’ lounge, corridor, or other area accessible to the general public and not specifically designated for student dining are subject to tax at the rates established in Section 212.0515(2), F.S.

(5) Admission charges.

(a) When only student or faculty talent is used in an athletic or other event sponsored by a school, admission charges are exempt.

(b) When a student is required to participate in a sport or recreation pursuant to a program or activity sponsored by, and under the jurisdiction of, the student’s school, admission charges for participation imposed by the place of sport or recreation are exempt. The student’s school will issue a certificate for the student to present to the organization charging the admission. If the student attends such place as a spectator, admission charges are taxable.

(c) When a state tax-supported school or other governmental entity sponsors, administers, plans, supervises, directs, and controls an athletic or recreational program, participation or sponsorship fees are exempt. The athletic or recreational program may be run in conjunction with a not-for-profit entity under s. 501(c)(3) of the Internal Revenue Code of 1986, as amended.

(d) When state tax-supported schools sponsor an athletic or other event and the talent to provide the event is not limited to students or faculty, admission charges to the event are exempt when:

1. The risk of success or failure for the event lies completely with the school sponsoring the event;

2. The funds at risk for the event must belong completely to the school sponsoring the event; and,

3. The event is held in a convention hall, exhibition hall, auditorium, stadium, theater, arena, civic center, performing arts center, or publicly owned recreational facility.

(e) Admission charges, dues, and membership fees to an event or program sponsored by a school, parent-teacher association, or parent-teacher organization that qualifies as a not-for-profit entity under the provisions of s. 501(c)(3) of the Internal Revenue Code of 1986, as amended, are exempt.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.04(2)(a), 212.0515(2), 212.08(7)(o), (p), (r), (ll), 212.0821 FS. History–New 6-19-01.

Fla. Admin. Code R. 12A-1.0015 Sales for Export; Sales to Nonresident Dealers and Foreign Diplomats

(1) Scope.

(a) Tangible personal property imported, produced, or manufactured in this state for export, as provided in Section 212.06(5)(a)1., F.S., is not subject to Florida sales tax when the importer, producer, or manufacturer delivers the property to a forwarding agent for export or to a common carrier for shipment outside Florida, or mails the property by United States mail to a destination outside Florida.

(b) The provisions of this rule do not apply to sales of aircraft, boats, mobile homes, motor vehicles, or other vehicles. For guidelines on the export of these items from Florida, see Rule 12A-1.007, F.A.C.

(2) Sales of property irrevocably committed to exportation.

(a) A dealer is required to collect tax on sales of tangible personal property when the property is delivered to the purchaser or the purchaser’s representative in Florida, whether the disclosed or undisclosed intention of the purchaser is to transport the property to a location outside Florida, or whether the property is actually so transported. Every sale of tangible personal property to a person physically present at the time of sale is presumed to have been delivered in Florida.

(b) When a dealer sells tangible personal property, commits the property to the exportation process at the time of sale, and the exportation process remains continuous and unbroken until the property is exported from Florida, the dealer is not required to collect tax. The intent of the seller and the purchaser to export the property is not sufficient to establish that the property is not subject to tax in Florida. The delivery of the property to a location in Florida for subsequent export from Florida is insufficient to establish documentary evidence that the property sold was irrevocably committed to the exportation process. The following are examples of methods to commit the property to the exportation process at the time of sale:

1. The dealer is required by the terms of the sale contract to deliver the property outside Florida using the dealer’s own mode of transportation;

2. The dealer is required by the terms of the sale contract to mail the property by United States mail to a destination located outside Florida; or

3. The dealer is required by the terms of the sale contract to deliver the property to a carrier, licensed customs broker, or forwarding agent for final and certain movement of the property to a destination located outside Florida.

a. The term “carrier” means a person regularly engaged in the business of transporting tangible personal property owned by other persons for compensation. The term “carrier” includes common carriers and contract carriers.

b. The term “licensed customs broker” means a person licensed by the United States customs service to act as a custom house broker.

c. The term “forwarding agent” means a person or business whose principal business activity is facilitating for compensation the export of property owned by other persons.

d. Any person not engaged in the business of receiving tangible personal property owned by other persons and shipping or arranging for shipping for compensation does not become a carrier or forwarding agent by being designated by the purchaser to receive and ship goods to a point outside Florida.

(c) Any dealer who makes tax-exempt sales of tangible personal property for export outside Florida is required to maintain records to document that the property is committed to the exportation process at the time of sale and that the exportation process is continuous and unbroken until the property is exported from Florida. The dealer is required to maintain records that identify the tangible personal property sold and the delivery destination of the property. The documentation must clearly establish that the property was not commingled with the mass of property within Florida. If the purchaser exercises any act of dominion or control that would constitute “use” of the property by the purchaser in Florida within the meaning of that term set forth in Section 212.02(20), F.S., the property was not irrevocably committed to the exportation process. Examples of records to document sales for export to points outside Florida are:

1. Internal delivery orders identifying the property sold and the destination and date of delivery that are supported by receipts of expenses incurred in delivering the property, such as trip tickets or truck logs signed by the person who delivers the property;

2. United States Postal Service parcel post receipts with supporting documentation identifying the property and the destination;

3. Common carriers’ receipts, bills of lading, or similar documentation that evidences the delivery destination;

4. Export declaration;

5. Receipts from a licensed customs broker; or

6. Proof of export signed by a customs officer.

(d)1. Any dealer who makes tax exempt sales of tangible personal property and, in good faith, accepts a valid copy of a Florida Certificate of Forwarding Agent Address or relies on the list of designated forwarding agent addresses on the Department’s website, or relies on the Department’s Address/Jurisdiction Database, and then ships the property to the designated address on the certificate for export outside of the United States may not collect any tax on sales made during the effective dates of the certificate. The dealer is not liable for any tax due on such sales. The dealer must maintain documentation that the property was shipped or delivered by the dealer directly to the forwarding agent address.

2. If tax was not collected by a dealer on tangible personal property shipped to a designated forwarding agent address and the tangible personal property remained in Florida or if delivery to the purchaser or purchaser’s agent occurred in Florida, then the forwarding agent must remit applicable tax on the tangible personal property. This subparagraph does not prohibit the forwarding agent from collecting such tax from the consumer of the tangible personal property.

(e) A dealer who imports taxable tangible personal property into Florida for exportation from Florida is required to maintain documentation that the imported property was irrevocably committed to the exportation process at the time of importation and that the exportation process was continuous and unbroken while such property was within Florida.

(f) Regardless of the evidence maintained by the dealer to document delivery of the property to a common carrier, forwarding agent, or a licensed customs broker for shipment to a location outside Florida, or the mailing of the property by the United States mail to a location outside Florida, tax is due when the property is diverted in transit to the purchaser or the purchaser’s agent or representative in Florida and such person takes possession in Florida, or when for any other reason the property is not delivered outside Florida.

(3) Sales to nonresident dealers.

(a) The sale of taxable tangible personal property to a nonresident dealer is exempt when the selling dealer obtains a statement from the nonresident dealer declaring that the tangible personal property will be transported outside Florida by the nonresident dealer for resale and for no other purpose. The statement executed by the nonresident dealer must include the declaration and all of the following information:

1. The nonresident dealer’s name and address;

2. Evidence of authority to do business in the dealer’s home state or country, such as the nonresident’s business name and address, sales tax registration number, occupational license number, or any other evidence of transacting business in that state or country;

3. For nonresident dealers who are not residents of the United States, the dealer’s passport or visa number and arrival-departure card number;

4. The following provision: “Under penalties of perjury, I declare that I have read the foregoing, and the facts alleged are true to the best of my knowledge and belief”; and,

5. The signature of the purchaser executing the statement.

(b) For purposes of this rule, a “nonresident dealer” is any person who does not hold a valid Florida sales tax certificate of registration and who is authorized in another state or country to make sales of tangible personal property in that state or country.

(c) A selling dealer who makes a sale of taxable tangible personal property to a nonresident dealer is required to obtain the required statement or collect the applicable tax on the sale.

(d) The following is a suggested format of the statement to be completed by the purchaser and presented to the selling dealer:

TANGIBLE PERSONAL PROPERTY

FOR RESALE BY A NONRESIDENT DEALER

This is to certify that the tangible personal property described below will be transported outside Florida for resale and for no other purpose.

NAME OF SELLING DEALER: _______________________________________________________________________________

DEALER’S ADDRESS: ______________________________________________________________________________________

DEALER’S SALES TAX NO.: ________________________________________________________________________________

NAME OF NONRESIDENT DEALER: _________________________________________________________________________

ADDRESS OF NONRESIDENT DEALER: ______________________________________________________________________

HOME STATE’S SALES TAX NO.: ___________________________________________________________________________

PASSPORT OR VISA NO.: __________________________________________________________________________________

ARRIVAL-DEPARTURE CARD NO.: _________________________________________________________________________

PURCHASER’S EVIDENCE OF AUTHORITY TO DO BUSINESS IN HOME STATE:

---

The tangible personal property purchased in Florida on INVOICE NUMBER(S) ______, or described as follows, is solely for resale outside Florida.

Description of Property: ______________________________________________________________________________________

Under penalties of perjury, I declare that I have read the foregoing, and the facts alleged are true to the best of my knowledge and belief.

---

Signature of Purchasing Nonresident Dealer Date

(4) Florida Certificate of Forwarding Agent Address; Application; Eligibility.

(a) To apply for a Florida Certificate of Forwarding Agent Address, an applicant must submit a complete Application for a Florida Certificate of Forwarding Agent Address (form DR-1FA, incorporated by reference in Rule 12A-1.097, F.A.C.), a Florida Business Tax Application (form DR-1, incorporated by reference in Rule 12A-1.097, F.A.C.), and documentation sufficient to substantiate the applicant’s eligibility for the certificate, including the applicant’s most recently filed federal income tax return. An application for a certificate is complete when all information required to be submitted by Section 212.06(5)(b), F.S., the application, and this rule is provided to the Department. An applicant that applied for and has been granted a Certificate of Registration is not required to submit a Florida Business Tax Application when applying for a new or renewal of a Florida Certificate of Forwarding Agent Address.

(b) To receive a certificate, an applicant is required to demonstrate that:

1. The applicant’s principal business activity is facilitating for compensation the export of property owned by other persons;

2. The applicant is engaged in international export; and

3. The designated address for which certification is sought is used exclusively by the applicant for receiving tangible personal property originating with a United States vendor for export out of the United States through a continuous and unbroken exportation process.

(c) Each applicant is required to provide the following to demonstrate the business is engaged in the export of property owned by others and supported by the following information:

1.a. A copy of the applicant’s federal income tax return for the preceding taxable year with NAICS code 488510; or

b. A copy of the applicant’s federal income tax return for the preceding taxable year with a NAICS code consistent with the principal business activity of a forwarding agent and an explanation why the NAICS code demonstrates the applicant is a forwarding agent; or

c. An explanation as to why the business did not file a federal income tax return for the preceding taxable year and the NAICS code under which the applicant intends to file a federal income tax return.

2. A description of all business activity that occurs at each designated address submitted on the Application for a Florida Certificate of Forwarding Agent Address.

3.a. Applicants who include a copy of their federal income tax return are required to include a statement of total revenues, a statement of revenues associated with facilitating for compensation the export of property owned by other persons, and a statement of revenues associated with international export. These statements must be from the year preceding the date of application.

b. Applicants who do not include a copy of their federal income tax return are required to include a statement of total estimated revenues, a statement of estimated revenues associated with facilitating for compensation the export of property owned by other persons, and a statement of estimated revenues associated with international export.

4. Certification that

a. The tangible personal property delivered to the designated address for export originates with a United States vendor; and

b. The tangible personal property delivered to the designated address for export is irrevocably committed to export out of the United States through a continuous and unbroken exportation process; and

c. The designated address is used exclusively by the forwarding agent for such export; and

d. The principal business activity is that of a forwarding agent; and

e. The applicant is engaged in international export.

5. An applicant that desires that its certified address be reported in the Department’s Address/Jurisdiction Database with a tax rate of zero must include documentation issued by the United States Postal Service confirming the assignment of a special five-digit zip code. A business that has already been granted a Florida Certificate of Forwarding Agent Address may submit the required documentation issued by the United States Postal Service to Account Management as provided in subparagraph (4)(i)2. A certified address with a special five-digit zip code provided by the United States Postal Service will not be reported in the Department’s Address/Jurisdiction Database with a tax rate of zero if that address includes a suite address or secondary address.

(d) When an application is approved, the applicant will be issued a Florida Certificate of Forwarding Agent Address (Form DR-14FAA), which is valid from the “Issue Date” through the “Expiration Date” as indicated on the certificate unless revoked or surrendered prior to the expiration date. After a certificate is issued, the following information will be published on the Department’s website:

1. The name of the forwarding agent’s business.

2. The designated address of the forwarding agent.

3. The issue date and the expiration date provided on the certificate.

(e) When an application is incomplete, the Department will issue a letter notifying the applicant of the documentation or information that is to be provided to the Department within 30 days following the date of the notification. If an applicant fails to provide the required documentation or information and the application remains incomplete or the Department is not able to approve an application, a notice explaining the reason for the denial will be mailed to the applicant. The applicant may protest the denial pursuant to Sections 120.569 and 120.57, F.S., within 21 days after the date of the notice.

(f) Beginning July 1, 2023, each business holding a Florida Certificate of Forwarding Agent Address must submit Form DR-1FA to verify the designated address used by the forwarding agent no later than July 1 each year. The submission of Form DR-1FA for annual verification is not due in the same calendar year in which an initial Florida Certificate of Forwarding Agent Address is issued or the calendar year in which a certificate is renewed.

(g) Within 30 days of any material change, business holding a Florida Certificate of Forwarding Agent Address must submit an updated Form DR-1FA documenting the material change.

1. A change is considered material if the change affects the following information previously submitted by the certificate holder:

a. Florida Business Partner Number

b. Federal Employer Identification Number (FEIN)

c. Legal Name of Business

d. Contact Person, including changes to their contact information

e. Mailing Address

f. Business Website

g. Designated Address(es)

h. Description of all business activity conducted at the designated address(es)

i. Federal Income Tax Return (if one was not included with the initial application)

2. A change is not considered material if it relates to a new federal income tax return if one was provided with the initial application; new documentation demonstrating the applicant remains engaged in international export; or changes in revenues or estimated revenues, unless the changes demonstrate that the principal business activity is no longer the facilitation for compensation the export of property owned by others.

3. The Department will notify the applicant when a material change requires submission of an updated Form DR-1.

(h) At least 30 days before the expiration date on a Certificate of Forwarding Agent Address, an application for renewal must be submitted using Form DR-1FA, along with documentation sufficient to substantiate the applicant’s eligibility for the certificate. Form DR-1 is not required to be submitted with a renewal application, unless the Department notifies the applicant. The Department will review the renewal application in the same manner as the initial application.

(i) Certificate holders must immediately notify the Department, in writing, and must surrender the certificate, in cases where the certificate holder ceases doing business, changes its address, no longer uses the certified address for export, or should the business otherwise no longer meet the eligibility requirements provided in paragraph (b), for a Florida Certificate of Forwarding Agent Address.

1. The written notification must include the Florida business partner number, federal employer identification number (FEIN), legal name of business, a statement as to why the business no longer meets the requirements of a forwarding agent as provided in Section 212.06(5)(b), F.S., and the business is surrendering its Florida Certificate of Forwarding Agent Address.

2. The written notification is to be submitted to the Department by email at Exemptions@floridarevenue.com, by fax to (850)488-5997, or by mail to:

Account Management MS 1-5730

Florida Department of Revenue

5050 W. Tennessee St.

Tallahassee FL 32399-0160

(j) If at any time the Department has reason to believe that a business holding a Florida Certificate of Forwarding Agent Address is not eligible for a certificate or is otherwise not in compliance with Section 212.06(5)(b), F.S., or this rule, the certificate holder will be sent a written notice of intent to revoke the certificate stating the reasons for such revocation.

1. The Department may request information from the certificate holder regarding its business operations to demonstrate its eligibility for a certificate or its compliance with all provisions of Section 212.06(5)(b), F.S., and this rule. Failure to provide the requested information within thirty (30) days of request is grounds for revocation of the certificate.

2. The certificate holder has the right to request an administrative hearing, to be conducted in accordance with Sections 120.569 and 120.57, F.S. and rule Chapter 28-106, F.A.C., to dispute the notice of intent to revoke the certificate. The request must be received by the Department within 30 consecutive calendar days after the date of the notice. The Department’s notice of intent to revoke the certificate will become final if no timely request for a hearing is received or if, following an administrative hearing, the Department issues a final order revoking the certificate.

(k) An entity whose Florida Certificate of Forwarding Agent Address has expired, been surrendered, or revoked by the Department is prohibited from extending a copy of its certificate to a selling dealer. Upon surrender, revocation, or expiration of a certificate without renewal, the forwarding agent’s information will be removed from the Department’s online list of forwarding agents holding a valid Florida Certificate of Forwarding Agent Address.

(5) Sales to foreign diplomats, consular employees, and members of their families.

(a) Sales to foreign diplomats, consular officers, consular employees, and members of their families are entitled to certain sales tax exemptions or limitations determined by the United States Department of State when the United States Department of State has determined that the foreign nation represented has a treaty with the United States that exempts United States diplomats, consular officers, consular employees, and members of their families from the foreign country’s similar state and local sales taxes. Foreign diplomats and consular personnel seeking an exemption from Florida sales tax must personally present to the vendor at the time of purchase a tax exemption card issued to the individual by the United States Department of State. The tax exemption card will set forth the terms of the sales tax exemption to which the individual is entitled and will serve as the seller’s authority to allow the specific sales tax exemption as provided on the card to the named person whose photograph appears on the card.

(b) To document qualified tax-exempt sales to foreign diplomats and consular personnel, the selling dealer must maintain:

1. A copy of both sides of the tax exemption card; or

2. The following information as shown on the tax exemption card issued to the purchaser: mission name, name of purchaser, date of sale, amount of sale, stripe color code or other indication of the level of exemption, expiration date, the tax exemption number, and the United States Department of State card number.

(c) Questions regarding the diplomatic exemption should be directed in writing to the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112 or by telephone to Taxpayer Services at (850)488-6800.

(6) Recordkeeping requirements.

(a)1. Selling dealers must maintain copies of internal delivery orders and supporting documentation, trip tickets, truck log records, United States Postal Service parcel post receipts, bills of lading, receipts from common carriers, export declarations, customs documents, receipts from licensed customs brokers, statements signed by a customs officer, declarations by nonresident dealers, copies of tax-exemption cards issued by the United States Department of State, exemption certificates, and other documentation required under the provisions of this rule until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

2. Electronic storage by the selling dealer of the required certificates and other documentation will be sufficient compliance with the provisions of this subsection.

(b)1. Forwarding agents must maintain copies of sales invoices or receipts between the vendor and the consumer when provided by the vendor or export documentation evidencing the value of the purchase consistent with the federal Export Administration Regulations, 15 C.F.R. parts 730-774; copies of federal income tax returns evidencing the forwarding agent’s NAICS principal business activity code; copies of invoices or other documentation evidencing shipment to the forwarding agent; invoices between the forwarding agent and the consumer or other documentation evidencing the ship-to destination outside the United States; invoices for foreign postal or transportation services; bills of lading; and any other export documentation.

2. These records must be kept in an electronic format and made available to the Department at reasonable times and by reasonable means.

History

• Rulemaking Authority 212.06(5)(b)13., 212.18(2), 213.06(1) FS. Law Implemented 212.02(20), 212.05(1), 212.06(1), (2), (5), 212.12(9), 212.13(1), (2), (3), (4), 212.21(3), 213.37 FS. History–New 6-12-03, Amended 6-14-22, 1-1-26.

Fla. Admin. Code R. 12A-1.002 Practitioners of the Healing Arts

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(14), (19), 212.05(1), 212.08(2), (7) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.02, Repealed 7-12-10.

Fla. Admin. Code R. 12A-1.003 Sales of Several Items to the Same Purchaser at the Same Time

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.12(9) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.03, Repealed 5-9-13.

Fla. Admin. Code R. 12A-1.004 Sales Tax Brackets

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.03(1), (3), (6), 212.031(1)(c), (d), 212.04(1), 212.05(1), 212.08(3), 212.12(9), (10), (11) FS. History–New 10-7-68, Amended 6-16-72, 9-24-81, 7-20-82, Formerly 12A-1.04, Amended 12-13-88, 8-10-92, 3-17-93, 12-13-94, 6-19-01, 11-1-05, 9-1-09, 1-17-18, Repealed 6-14-22.

Fla. Admin. Code R. 12A-1.005 Admissions

(1)(a) Every person is exercising a taxable privilege when such person sells or receives anything of value by way of admissions, as defined in Section 212.02(1), F.S., except those admissions that are specifically exempt. Such seller is required to collect tax on the sales price or actual value of such admissions pursuant to Section 212.04(1)(b), F.S. Tax due must be calculated using the rounding algorithm as provided in Section 212.12(10), F.S. The seller may apply the rounding algorithm to the aggregate tax amount computed on all taxable admissions on an invoice or to the taxable amount of each individual admission on the invoice.

(b) It is required that either:

1. The seller collecting the charge for an admission prominently display, at the box office or other place where the admission charge is collected, a sign or other easily read notice disclosing the price of the admission; or

2. The face of each ticket sold reflect the actual sales price of the admission.

(c)1. The tax is due at the moment of the transaction, except when the tax is collected for admission to an event at a convention hall, exhibition hall, auditorium, stadium, theater, arena, civic center, performing arts center, or publicly owned recreational facility. Tax collected on such events is due to the Department on the first day of the month following the actual date of the event for which the admission is sold and becomes delinquent on the 21st day of that month. Therefore, tax collected on season and series tickets for events held in such facilities should be apportioned to each event in the season or series and remitted to the Department accordingly.

2. An agent who collects admissions on behalf of a principal may forward the collected tax funds to the principal to be remitted by the principal to the Department. Both the principal and agent can be held liable for any failure to timely remit such tax funds to the Department. An agent shall not, however, be liable for its principal’s failure to timely remit tax funds to the Department if the agent has obtained the principal’s active Florida sales tax number and has disclosed in writing to the principal that when such agent remits proceeds from the sale of an admission to the principal the proceeds may include amounts that represent admissions tax and that it is the principal’s obligation to timely remit any taxes due and owing to the Department or other taxing authority.

3. When tickets or admissions are sold and not used but are instead returned to the seller, the seller shall credit or refund the sales tax to the purchaser. See Rule 12A-1.014, F.A.C., for the methods the seller is to use to obtain a credit or refund.

4. A refundable deposit that is paid to reserve the right to purchase season tickets, box seats, or other admissions, that is recorded on the books of the seller as a liability, and that does not entitle the payer to the right to be admitted to the event or events, is not subject to tax. If the refundable deposit is applied to the purchase of the season tickets, box seats, or other admissions, tax is due to the Department as provided in this paragraph.

(d) Operators of traveling shows, exhibitions, amusements, circuses, carnivals, rodeos, and similar traveling events shall, upon request of an agent of the Department of Revenue, produce a cash receipt or similar documentation evidencing payment to the State of admission taxes due on any or all previous engagements in Florida during their current tour and an itinerary of future engagements in this State during the current year. The operator must document any performance in Florida that is sponsored by a not-for-profit entity that qualifies under the provisions of s. 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, for which the admission charges are exempt from tax.

(2) Exempt admissions. The following admissions are exempt from the tax imposed under Section 212.04, F.S.:

(a) Admissions to athletic or other events held by schools, as provided in Section 212.04(2)(a)1., F.S., are exempt.

(b) Admissions for students who are required to participate in a sport or recreation, provided the program or activity is sponsored by and under the jurisdiction of the educational institution and attendance is as a participant and not as a spectator are exempt. The institution will issue a certificate for the student to present to the person charging the admission in order to provide for this exemption.

(c) Admissions to agricultural fairs are exempt, as provided in Sections 212.08(7)(gg) and 616.260, F.S.

(d) Admissions to the following professional or collegiate sporting events are exempt, as provided in Sections 212.04(2)(a)5. and 10., F.S.;

1. National Football League championship game or Pro Bowl;

2. Major League Baseball, Major League Soccer, National Basketball Association, or National Hockey League all-star game and Major League Baseball Home Run Derby held before the Major League Baseball all-star games;

3. National Basketball Association all-star events produced by the National Basketball Association and held at a facility such as an arena, convention center, or municipal facility;

4. Any semifinal or championship game of a national collegiate tournament or any postseason collegiate football game sanctioned by the National Collegiate Athletic Association;

5. Any FIFA World Cup match sanctioned by the Fédération Internationale de Football Association (FIFA), including any qualifying match held up to 12 months before the FIFA World Cup matches;

6. Any Formula One Grand Prix race sanctioned by Fédération Internationale de l'Automobile, including any qualifying or support races held at the circuit up to 72 hours before the grand prix race; and

7. The Daytona 500 and the NASCAR Cup Series Championship Race when held at the Homestead-Miami Speedway, sanctioned by the National Association for Stock Car Auto Racing, including any qualifying or support races held at the same track up to 72 hours before the race.

(e) Participation fees or sponsorship fees to athletic or recreational structured programs imposed by governmental entities as described in Section 212.08(6), F.S., when such governmental entities sponsor, administer, plan, supervise, direct, and control such athletic or recreational programs are exempt. An organization qualified under s. 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, may work in conjunction with the governmental entity to sponsor, administer, plan, supervise, direct, and control the athletic or recreational structured program without affecting the exemption.

1. Example: A city or county park and recreation department sponsors, administers, plans, supervises, directs, and controls its adult softball, little league, and other team recreation programs. The park and recreation department charges $100.00 for each team participating, or it may charge $10.00 per person for each person to participate. At the end of league play, a tournament is held to determine the championship. The participation fees charged for league and tournament play are exempt from tax as an athletic structured program.

2. Example: A city operates a swimming pool. It charges an admission price of $2.00 for each adult and $1.00 for each child to enter the pool. The admission charges are taxable since this is not a structured athletic or recreational program.

3. Example: A city or county park and recreation department sponsors, administers, plans, supervises, directs, and controls pottery and ceramics classes. The park and recreation department charges each person $20.00 to participate. The participation charges are exempt as a recreational structured program.

4. Example: A not-for-profit organization that is not qualified under s. 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, sponsors a softball tournament and charges each team $250 to participate. The organization rents the softball field from the city. The $250 participation fee is subject to tax. If the organization is not registered to collect and remit sales tax, the organization must contact the local taxpayer service center to obtain a special events sales tax remittance number. The rental of the ball field by the city to the organization is taxable, unless the not-for-profit organization holds a Consumer’s Certificate of Exemption and issues a copy of its certificate to the city.

(f) Dues, membership fees, and admission charges imposed by not-for-profit sponsoring organizations are exempt. To receive this exemption, the organization making any such charges must qualify as a not-for-profit entity under the provisions of s. 501(c)(3) of the United States Internal Revenue Code of 1986, as amended.

(g) Admission charges to an event held in a convention hall, exhibition hall, auditorium, stadium, theater, arena, civic center, performing arts center, or publicly owned recreational facility are exempt when:

1. The event is sponsored by a sports authority or commission, exempt from federal income tax under the provisions of s. 501(c)(3) of the Internal Revenue Code, as amended, that is contracted with a county or municipal government for the purpose of promoting and attracting sports-tourism events to the community or is sponsored by a governmental entity;

2. 100 percent of the funds at risk belong to the sponsoring entity;

3. 100 percent of the risk of success or failure lies with the sponsoring entity; and,

4. The talent for the event is not derived exclusively from students or faculty.

(h) Entry fees for participation in fresh water fishing tournaments, as provided in Section 212.04(2)(a)8., F.S., are exempt.

(i) Participation or entry fees charged to participants in a game, race, or other sport or recreational event when spectators are charged a taxable admission to such event, as provided in Section 212.04(2)(a)9., F.S., are exempt.

(j) Admissions charged by physical fitness facilities owned or operated by any hospital licensed under Chapter 395, F.S., as provided in Section 212.02(1), F.S., are exempt.

(k) Admissions to live theater, live opera, or live ballet productions, as provided in Section 212.04(2)(a)7., F.S., are exempt. The application required in Section 212.04(2)(a)6., F.S., should be addressed to:

Account Management

Florida Department of Revenue

P.O. Box 6480

Tallahassee, Florida 32314-6480.

(l) Admissions to state parks, including annual entrance passes.

(3) Taxable admissions and participation fees. The following paragraphs contain examples of admission charges that are subject to tax, unless such admissions are specifically exempt under the provisions of Section 212.04(2), F.S. This list is not intended to be an exhaustive list.

(a) Admissions to any place of amusement, sport, or recreation are subject to tax.

(b) Admissions to places of amusement, operated under the supervision of the State Racing Commission and any admissions to such place for events not under the supervision of the State Racing Commission, are subject to tax.

(c) Admissions to attractions, shows, carnivals, exhibitions, and to fairgrounds that do not qualify for exemption under the provisions of Sections 212.08(7)(gg) and 616.260, F.S., are subject to tax. Fairgrounds shall be deemed to mean any area for which a charge is made to view exhibits or entries.

(d) Charges to attend consumer trade shows and exhibitions are subject to tax.

(e) Charges made at carnivals, fairs, amusement parks, and similar locations for rides, such as on merry-go-rounds, roller coasters, ferris wheels, and similar rides, are admissions subject to tax.

(f) Charges for live pony rides are admissions subject to tax.

(g) Charges made for the privilege of bowling, golfing, swimming, using trampolines, for playing billiards, ping pong, tennis, squash, badminton, slot racing, go-kart racing, and similar sports are admissions subject to tax.

(h) Admissions to theatres, mini-theatres, outdoor theatres, and shows are subject to tax.

(i) Charges made for participation in saltwater fishing tournaments are subject to tax.

(j) Charges made for the privilege of entering or engaging in any kind of activity for which no admission charge is made to spectators are subject to tax. When spectators are charged a taxable admission to a game, race, or other sport or recreational event, the participation or entrance fees are exempt. The purchase of taxable items used by the sponsoring entity are subject to tax, even though receipts from charges for the participation or entrance fees are used to make such purchases.

1. Example: A private golf club hosts a local tournament and charges $100.00 entry fee from all participants with no admission charge made to spectators. The entry fee covers the greens fees, cart rental, and a meal for each participant, with the excess being used to purchase gifts, gift certificates, and trophies to be given to the winners. The entry fee is subject to tax, even if the charge for each item is separately itemized. The purchase of gifts, trophies, and other promotional items by the club is subject to tax. If the club is donating a gift that it has in its inventory for sale, the club is required to accrue and remit the tax on the cost of the gift at the time it is removed from inventory. When the winning participants are given gift certificates to be used to purchase merchandise from the club, the club is deemed to be selling the merchandise, and it shall collect the tax from the gift certificate holders at the time the merchandise is sold.

2. Example: A sponsoring golf association enrolls participants to participate in a tournament for a fee of $100.00 with $20.00 of the fee attributable to organizational services provided by the sponsor and $80.00 attributable to the club’s charges for an unlimited number of rounds and the use of a golf cart, with the excess being used to purchase gifts, gift certificates, and trophies to be given to the winners. No tax is due on the $100.00 fee paid by the participant to the sponsoring organization. The $80.00 entry fee paid by the sponsoring organization to the club is taxable, even if the charge for each item is separately itemized. The purchase of gifts, trophies, and other promotional items by the club is subject to tax. When participants are given gift certificates to be redeemed for merchandise from the club’s pro shop, the club is deemed to be selling the merchandise and shall collect tax from the gift certificate holders at the time the holder redeems the certificate for merchandise.

(k)1. When the owner of a boat or vessel operated as a “head-boat” or “party boat” supplies the crew, which remains under the control and direction of the owner, and makes a charge measured on an admission or entrance or length of stay aboard the vessel for the privilege of participating in sightseeing, dinner cruises, sport, recreation, or similar activities including fishing, the charge is taxable as an admission.

2. The charge made by an owner or operator for chartering any boat or vessel, with a crew furnished, solely for the purpose of fishing is exempt.

3. Charges made by foreign registered vessels carrying passengers to international waters where passengers cannot disembark from the vessel at points other than the origination point (cruises to nowhere) are taxable. If the vessel docks, and passengers can disembark, the charge is considered to be for transportation and is exempt from tax.

(l) Charges measured on an admission or entrance or length of stay for rides on sightseeing trolley cars, sightseeing buses or trains, or any sightseeing or amusement ride where the participant is normally returned to the origination point are taxable. This does not apply to:

1. Charter or regularly scheduled aircraft, bus, taxi, trolley, or train travel where the passengers may disembark for shopping, dining, or other activities at points other than the origination point; or

2. Individuals traveling in air commerce, such as skydiving, helicopter, or untethered hot air balloon rides, pursuant to 49 U.S.C. s.40116.

(m) Charges made for tethered hot air balloon rides are taxable.

(4) Dues and initiation fees, equity and nonequity memberships, capital contributions and assessments, refundable deposits, and user fees.

(a)1. Dues and user fees paid to any organization, including athletic clubs, health spas, civic, fraternal, and religious clubs, that provide physical fitness facilities or recreational facilities, such as golf courses, tennis courts, swimming pools, yachting, boating, athletic, exercise, and fitness facilities, are subject to tax. Dues and user fees do not include:

a. Charges for initiation into, or for joining, an organization that are paid by persons to obtain an equitable ownership interest in the organization. The equitable ownership interest may be transferrable, with or without consideration, directly to another party or to the organization.

b. Additional charges paid by an equity member when joining an organization that are used by the organization solely for capital expenditures, capital improvements to the organization’s facilities, or for debt servicing such expenditures and improvements by the organization. Examples of these types of payments and the use of such amounts include amounts expended for rebuilding and/or replacing the grass on greens or fairways; rebuilding and/or replacing bunkers; planting of additional trees; resurfacing and/or construction of tennis courts; resurfacing and/or construction of swimming pools; amounts expended for new furniture, fixtures and equipment; amounts expended for clubhouse renovations; amounts expended for kitchen equipment and utensils; amounts expended to improve the irrigation system; amounts expended to acquire assets to enable the club to comply with environmental laws; amounts expended for acquiring maintenance equipment; amounts expended for new golf carts; and amounts expended for the installation of equipment on golf carts. Repairs to, or maintenance of, existing capital assets that do not materially add to the value or appreciably prolong the useful life of a capital asset are not deemed to be capital expenditures or capital improvements by the organization.

c. Capital assessments levied by an organization against persons who are, or seek to become, members of the organization.

d. Capital contributions or additional paid-in capital paid to an organization by individuals who have an equitable ownership interest in the organization.

2. Recurring or nonrecurring capital contributions or additional paid-in capital, or capital assessments, paid to an organization in a lump sum or by installments, are not subject to tax when such payments are:

a. Separately accounted for and not recorded in an operating revenue account by the organization.

b. Not paid for the right to use the organization’s recreational, physical fitness, or other facilities or equipment without subsequent periodic payments;

c. Not used to effect a decrease in user fees or periodic membership dues; and,

d. Not used to pay for the operating expenses of the organization.

(b) For purposes of this rule:

1. The phrase, “equitable ownership interest,” means an interest that entitles a person to receive from the organization evidence or indicia of such ownership, the right to vote on decisions of the organization that are subject to determination by the organization’s members or owners, and the right to receive a proportionate share of the organization’s assets upon its dissolution, unless all such net assets are distributable upon dissolution to an organization exempt from federal income taxation or to a qualifying common interest realty association. The ownership interest must be reflected by the issuance of stock, a membership certificate, or similar instrument evidencing an ownership interest in the organization.

2.a. The phrases “capital contributions” or “additional paid-in capital” mean equity payments that by themselves do not entitle an individual to use the facilities or equipment of an organization and that are intended as an investment to maintain or enhance members’ and owners’ interests in the organization.

b. The phrase “capital assessments” means payments made by members of an organization that by themselves do not entitle an individual to use the facilities or equipment of an organization and that are used solely for capital expenditures, for capital improvements to the organization’s facilities, or for direct allocation to debt servicing such expenditures and improvements by the organization.

(c) Fees paid to private clubs or membership clubs as a condition precedent to, in conjunction with, or for the use of the club’s recreational or physical fitness facilities are subject to tax. Examples of such fees are:

1. User fees paid by members or nonmembers to an organization that entitle the payor to use the organization’s recreational or physical fitness facilities or equipment.

2. Dining room minimum fees.

3. Social membership fees when such payments are required of members who hold no equitable interest in, or ownership of, the club.

4. Periodic payments required to be paid by members or any payment required of a nonmember in order to use the club’s facilities.

(d) Fees paid to private clubs or membership clubs that do not entitle the payor to the use of the club’s recreational or physical fitness facilities are not subject to tax. Examples of such fees are:

1. Charges to members or nonmembers to establish or maintain a handicap, ranking, or average.

2. Charges for professional instructions in any sport conducted at the club, so long as such charges are exclusively for the instructions and include the use of the facility only during the period of time the instructions are taking place. It is not the intention of this rule to allow a club to exempt what is in effect a dues or membership fee by labeling such charges as instruction fees.

3. Mandatory dues and fees paid to a condominium association, homeowners’ association, or cooperative association when they are required to be paid as a condition of ownership or occupancy of real property and the club facilities are part of the common elements or common areas of the real property.

(e) Refundable deposits advanced to an organization when the organization is obligated to repay the deposit and the deposit is reflected as a liability in the organization’s books and records are not subject to tax. The organization’s obligation to repay refundable deposits must be evidenced by a promissory note, a bond, or other written documentation.

(f) Dues and fees paid by persons for membership in clubs that do not entitle the members to use recreational or physical fitness facilities are not subject to tax. Examples of such clubs are sewing clubs, bowling clubs, square dancing clubs, bridge clubs, and gun clubs where the dues or fees entitle the payor to be a member of the club, but do not entitle the payor to use recreational or physical fitness facilities.

(5) Resale of admissions.

(a) There is no tax exempt sale for resale of an admission. If a purchaser of an admission resells the admission for more than he paid for the admission, he shall collect tax on his sales price, take a credit for the amount of tax previously paid on the admission, and remit the balance to the Department of Revenue.

(b) When the purchaser of an admission resells the admission for the same amount or less, tax shall not be collected, and no credit is allowed for tax previously paid.

(c)1. When an admission is resold to an entity exempt from sales tax, the selling dealer may claim a credit or seek a refund from the Department for the amount of tax it paid on its purchase of the admission. This provision does not apply to sales of admissions to an exempt entity for resale. To receive a refund of tax paid on an admission that is resold to an entity exempt from sales tax, the selling dealer must file an Application for Refund-Sales and Use Tax (Form DR-26S, incorporated by reference in Rule 12-26.008, F.A.C.) with the Department within 3 years after the date the tax was paid. The applicant shall include the exempt entity’s Consumer’s Certificate of Exemption, or other applicable proof of the entity’s exempt status, as well as a copy of the documentation that provides evidence of the tax the applicant paid for the admission that was subsequently resold, such as a ticket or invoice. In lieu of filing an application for refund for tax paid on an admission that is resold to an entity exempt from sales tax, the selling dealer may claim a lawful deduction on its sales and use tax return. The selling dealer must retain copies of the supporting documentation necessary to substantiate its entitlement to a refund or credit of tax paid until tax imposed under Chapter 212, F.S., may no longer be determined and assessed under Section 95.091, F.S.

2. The purchaser of an admission that is resold to an entity exempt from sales tax may seek a refund of the tax paid on the admission directly from the selling dealer when the purchaser and selling dealer are members of the same controlled group of corporations for federal income tax purposes. If the related selling dealer has remitted the tax collected from the related purchaser to the Department it may claim a credit or seek a refund from the Department for the sales tax that it refunded to the related purchaser by obtaining the supporting documentation and following the procedures provided in paragraph (5)(c). If the related selling dealer has not remitted the tax collected from the related purchaser, the selling dealer should retain copies of the supporting documentation necessary to substantiate its entitlement to a refund or credit in lieu of remitting the tax to the Department. The documentation must be retained until tax imposed under Chapter 212, F.S., may no longer be determined and assessed under Section 95.091, F.S.

(6) Sales of vacation packages.

(a) For purposes of this subsection, a “vacation package” means a bundle consisting of two or more components, such as admissions, transient rentals, transportation, or meals. Coupon books, maps, or other incidental items, that are provided free of charge as part of a vacation package are not considered “components” for purposes of this subsection.

(b) Tax is due on the purchase of taxable components of a vacation package at the time of purchase. No additional tax is due on the components that are incorporated into a vacation package and sold by a travel agent, when all of the following conditions are met:

1. The vacation package sold by the travel agent includes two or more components;

2. There is no separate itemization of the sales price of the package for the admission, transient rental, transportation, meal, or any other component of the vacation package; and,

3. All components of the vacation package were purchased by the travel agent from other parties and any sales tax due on such purchases was paid at the time of purchase.

(c) A travel agent who itemizes the sales price of the taxable components of a vacation package must register with the Department as a dealer. (See Rule 12A-1.060, F.A.C., Registration). Travel agents who itemize the sales price of the taxable components of a vacation package are required to collect tax from the purchaser as follows:

1. When the itemized components are sold for the same amount or less than was paid for each of them, the travel agent is not required to collect any additional tax. No credit is allowed for tax paid on the purchase of the taxable components.

2. When the itemized components are sold for more than the purchase price of each component, the travel agent is required to collect tax on the sales price of the taxable components. The travel agent may take a credit of tax previously paid for the taxable components that are separately itemized at a sales price greater than the purchase price of the component.

(d) When the seller of components of a vacation package and the purchasing travel agent are members of the same controlled group of corporations for federal income tax purposes and the amount charged for the component is an amount less than the price charged to unrelated travel agents under normal industry practices, the related travel agent is required to itemize the sales price of the components to the purchaser and collect tax on the itemized taxable components. The travel agent may take a credit of tax previously paid for the taxable components.

History

• Rulemaking Authority 212.17(8), 212.18(2), 213.06(1) FS. Law Implemented 212.02(1), 212.04, 212.08(6), (7)(gg), 212.17(1), 616.260 FS. History–New 10-7-68, Amended 1-7-70, 6-16-72, 7-19-72, 12-11-74, 9-28-78, 7-3-79, 12-3-81, 7-20-82, Formerly 12A-1.05, Amended 1-2-89, 12-16-91, 10-17-94, 3-20-96, 3-4-01, 10-2-01, 4-17-03, 6-28-05, 4-26-10, 1-12-11, 1-17-13, 1-19-15, 1-17-18, 6-14-22, 10-26-22, 12-29-25, Technical Change 6-8-26.

Fla. Admin. Code R. 12A-1.006 Charges by Dealers Who Adjust, Apply, Alter, Install, Maintain, Remodel, or Repair Tangible Personal Property

(1)(a) Where parts are furnished by the repairer, the entire charge the repairer makes to a customer for adjusting, applying, installing, maintaining, remodeling, or repairing tangible personal property is taxable.

(b) Materials which are actually incorporated into and become a part of the tangible personal property repaired, remodeled, or maintained, such as welding rods, solder, body solder, or other surfacing materials, paint, thinner, bolts, nuts, etc., are not taxable when purchased by the repairer. Materials and supplies used by the repairer in making such repairs, etc., but which do not become a part of the property repaired are taxable to the repairer as overhead items. For example: Tools, sandpaper, steel wool, flux, detergents, and the like are not incorporated into the repair or remodeling job and are taxable.

(2) The charges for cleaning or regulating any item of tangible personal property where lubrication occurs are taxable.

(3) The provisions of this rule do not apply to contracts covering a combination of work on both real and personal property. Such contracts are governed by the provisions of Rule 12A-1.051, F.A.C.

(4) Charges for repairs of tangible personal property which require labor or service only are taxable unless the repairer (dealer) can establish by evidence in the dealer’s records that the dealer furnished no tangible personal property which was incorporated into or attached to the repaired item. It is immaterial that the cost of the material furnished is insignificant when compared to the cost of the labor involved. For maintenance contracts covering tangible personal property, refer to Rule 12A-1.105, F.A.C.

(5) Labor, parts, and materials used and actually incorporated into and becoming a component part of tangible personal property in rebuilding, repairing, or reconditioning same for resale or exclusively for leasing are exempt.

(6) Materials and supplies used in the performance of a factory or manufacturer’s warranty are exempt when the contract is furnished with the new equipment guaranteed thereunder at no extra charge and such materials and supplies are paid for by the factory or manufacturer.

(7)(a) The charge for altering, repairing, or remodeling clothing is taxable. See Rule 12A-1.076, F.A.C.

(b) The charge for refinishing, restoring, or upholstering furniture is taxable.

(c) The charge for renovating mattresses is taxable.

(d) The charge for lubrication service, including grease jobs, oil changes, and the like, is taxable.

(e) The charge for repairing flat tires is taxable.

(f) The charge for sharpening bits, chains, and blades, including, but not limited to, drill bits, chain saw chains, saws, knives, and mower blades, is exempt when no carbide or any other material or substance is incorporated into or attached to the object sharpened. If any tangible product is furnished and incorporated into or attached to the object sharpened by the dealer, the total charge is taxable.

(g) The charge for wheel balancing or tire mounting is exempt when no parts, or other materials are furnished by the dealer. If any tangible product is furnished by the dealer, the total charge is taxable.

(h) The charge for sandblasting articles is exempt as cleaning service when no protective coating or covering of any substance is applied to restore, refinish, or recondition such property. If any coating or covering of any tangible product is furnished and applied by the dealer, the total charge is taxable. Cross Reference – subsection 12A-1.063(40), F.A.C.

(8) When tangible personal property is shipped into this state, repaired, and shipped back to its owner in another state by common carrier or mail, the amount charged for the repair is exempt. If tangible personal property is sent out of the state to be repaired and returned, the transaction is taxable. Taxable components of the transaction include materials, labor, handling, and packaging charges, and any other charges which are considered part of the sale. Also, see Rule 12A-1.045, F.A.C., to determine whether transportation charges are considered a part of the sale, and included as a component of the transaction.

(9) The charge for silver plating or chrome plating an article is taxable.

(10) Charges made by a taxidermist for mounting fish, fowl, or animals are taxable.

(11) Charges by an interior decorator are exempt when no materials or supplies are used.

(12) The charge for creosoting new railroad cross-ties, transmission line poles and other items is taxable.

(13) The charge for refilling a fire extinguisher is taxable.

(14) The total charges for repairing tangible personal property requiring welding or soldering are taxable.

(15)(a) The charge for a plain wash job, in which only detergent or water softener is added to the water, is exempt. The purchase of detergents or water softeners for use in the performance of the wash job is taxable to the dealer.

(b) The entire charge for a wash job, in which wax, silicones, or any other substance is added that forms a protective film or coating, is taxable. The purchase of materials such as wax, silicones, and the like, which form a protective film or coating, is exempt to the dealer. The dealer shall extend a resale certificate to his supplier in lieu of paying tax.

(c) The purchase of machinery and equipment, parts and accessories, soaps, brushes, or other supplies for operation of a car wash facility is taxable to the dealer.

(d) Dealers who operate car wash facilities which provide both taxable and exempt wash jobs must maintain documentation to distinguish the taxable status of each transaction. In all instances where a dealer is unable to differentiate and document the taxable status of each transaction, it is presumed that all wash jobs performed at such facility are taxable.

(e)1. Dealers who operate coin-operated car wash facilities must calculate the tax at an effective rate of 6.59 percent on each taxable transaction. It is presumed that the amount charged for each taxable transaction is adjusted to include tax. To compute the correct amount of tax due, the dealer should divide the total receipts from taxable transactions by 1.0659 to compute the gross taxable sales and then subtract the gross taxable sales from the total taxable receipts to arrive at the amount of sales tax due. If the dealer is unable to distinguish between the taxable and exempt transactions, it is presumed that all wash jobs performed at such facility are taxable.

2. When a dealer who operates coin-operated car wash facilities can demonstrate to the satisfaction of the Department through its books and records that a lower rate than that which is provided in the preceding subparagraph of this rule is applicable, the tax due on a coin-operated car wash sale shall be at that rate.

3. The local option surtax effective rates for the sale of other items through vending machines in paragraph 12A-15.011(2)(b), F.A.C., are also applicable to a coin-operated car wash.

(16) Wrecker or towing charges are not subject to tax if the charge is separately stated on the customer’s invoice.

(17) Repairs, alterations, or improvements to mobile homes which are not classified as real property constitute repairs, alterations, or improvements to tangible personal property and the total charge is taxable.

Cross Reference – subsection 12A-1.007(11), F.A.C.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(16), 212.05(1), 212.06(1), (2), (5)(a)1. FS. History–New 10-7-68, Amended 6-16-72, 12-11-74, 12-31-81, Formerly 12A-1.06, Amended 7-7-92, 10-17-94, 8-15-21.

Fla. Admin. Code R. 12A-1.007 Aircraft, Boats, Mobile Homes, and Motor Vehicles

(1)(a) The sale, including occasional or isolated sales, the use, consumption, or storage for use in this state of any aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government is taxable on the full sales price without any deduction for freight, handling, delivery, commission, repossessions, advertising, future free service, or any other expense or cost whatsoever. Separately stated fees or charges as a requisite to the titling, licensing, registration, transfer of ownership, or recording of lien, or operation of any automobile in this state, mandated by the state, its subdivisions, or any state or licensed tag agency or office, shall not be included in the sales price, and as a result are not subject to tax.

(b)1. Any trade-in allowance for tangible personal property, if the sale and trade-in are one transaction, accepted by any person registered with the Department of Revenue as a dealer to engage in the business of selling aircraft, boats, mobile homes, motor vehicles, or other vehicles of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government and intended for resale by such dealer shall be excluded (deducted) from the gross sales price, and only the net sales price shall be subject to tax.

2. A separate or independent sale of an aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government by either the buyer or seller of another aircraft, boat, mobile home, motor vehicle, or other vehicle is not a trade-in, even if the proceeds from the sale are immediately applied by the seller to a purchase of another aircraft, boat, mobile home, motor vehicle, or other vehicle.

3.a. When any person who is not registered with the Department of Revenue as a dealer to engage in the business of selling aircraft, boats, mobile homes, motor vehicles, or other vehicles sells an aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government and accepts in part payment or full payment as trade-in or exchange an aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government, the trade-in or exchange may be deducted from the sales price.

b. When any person who is not registered with the Department of Revenue as a dealer to engage in the business of selling aircraft, boats, mobile homes, motor vehicles, or other vehicles of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government, sells an aircraft, boat, mobile home, motor vehicle, or other vehicle and accepts in part payment or full payment as trade-in or exchange tangible personal property other than an aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government, the trade-in or exchange may not be deducted from the sales price. The tax shall be computed on the total selling price of each aircraft, boat, mobile home, or motor vehicle.

(c) No title certificate may be issued on any aircraft, boat, mobile home, motor vehicle, or any other vehicle, or if no title certificate is required by law, no license or registration shall be issued by any state agency for any aircraft, boat, mobile home, motor vehicle, or other vehicle unless there is filed with the application for title certificate, license, or registration a receipt issued by an authorized aircraft, boat, mobile home, or motor vehicle dealer, or by the Department of Revenue or its designated agent, evidencing the payment of such tax where the same is payable.

(2) Purchases Outside Florida.

(a) There shall be a presumption that any aircraft, boat, mobile home, motor vehicle, or other vehicle purchased in another state, territory of the United States, or the District of Columbia but titled, registered, or licensed in this state is taxable except as otherwise provided in subsection (26) of this rule. This presumption may be rebutted only by documentary evidence that the person owning the aircraft, boat, mobile home, or motor vehicle purchased the aircraft, boat, mobile home, or motor vehicle in another state, territory of the United States, or the District of Columbia six (6) months or more prior to the time it is brought into this state. In order for such property to be presumed exempt as purchased for use outside Florida, the person owning the aircraft, boat, mobile home, motor vehicle, or other vehicle must provide documentary proof that such property was used in other states, territories of the United States, or the District of Columbia for six months or longer under conditions which would lawfully give rise to the taxing jurisdiction of another state, territory, or District of Columbia and any lawfully imposed tax was paid to such state, territory, or District of Columbia before being imported into this state. However, the rental or lease of any aircraft, boat, mobile home, or motor vehicle which is used or stored in this state is taxable without regard to its prior use or tax paid on the purchase outside this state.

(b) Tax shall apply and be due on any aircraft, boat, mobile home, motor vehicle, or other vehicle imported or caused to be imported from a foreign country into this state for use, consumption, distribution, or storage to be used or consumed in this state. It is immaterial whether such aircraft, boat, mobile home, motor vehicle, or other vehicle was used in another country for a period of six months or more prior to the time it is brought into Florida. Furthermore, tax paid in another country will not be recognized by the State of Florida in arriving at the tax due.

(3) Tax Credit for Purchases Outside Florida.

(a) A credit is allowed to a person who as purchaser provides documentary evidence that a lawfully imposed sales or use tax has been paid to another state, territory of the United States, or the District of Columbia on any aircraft, boat, mobile home, motor vehicle, or other vehicle which later becomes subject to Florida tax. The credit shall be the amount of legally imposed sales and use tax paid to another state, territory of the United States, or the District of Columbia.

(b) A credit shall not be allowed for any taxes paid to a foreign country.

(4) When a veteran purchases an aircraft, boat, mobile home, motor vehicle, or other vehicle from a dealer pursuant to the provisions of s. 1902(a), Title 38, United States Code, the amount billed by the dealer to the Veterans Administration and which is paid directly to the dealer by the Veterans Administration is not taxable. However, any portion of the purchase price which is paid directly to the dealer by the veteran is taxable.

(5) When an aircraft, boat, mobile home, motor vehicle, or other vehicle dealer sells an aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government to a junk dealer, the junk dealer, who is required to be a registered dealer, shall furnish the aircraft, boat, mobile home, motor vehicle, or other vehicle dealer with a resale certificate as provided in Rule 12A-1.038, F.A.C. In the absence of such resale certificate or when the aircraft, boat, mobile home, motor vehicle or other vehicle dealer sells the aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government to an unregistered individual, the sale is taxable based upon the selling price of such aircraft, boat, mobile home, motor vehicle, or other vehicle.

(6) Sales of Aircraft, Boats, Mobile Homes, Motor Vehicles, or Other Vehicles to a Nonresident Dealer for Resale Outside Florida.

(a) If delivery of any aircraft, boat, mobile home, motor vehicle, or other vehicle is made in Florida to a nonresident aircraft, boat, mobile home, motor vehicle, or other vehicle dealer who does not hold a Florida certificate of registration as an aircraft, boat, mobile home, motor vehicle, or other vehicle dealer, it is taxable unless the nonresident aircraft, boat, mobile home, motor vehicle, or other vehicle dealer furnishes the seller an exemption certificate that the aircraft, boat, mobile home, motor vehicle, or other vehicle will be transported outside of Florida by the dealer for resale and no other purpose. The burden of obtaining this evidential matter rests with the seller, who must retain the documentation to support the exempt sale.

(b) The following is a suggested statement to be used by nonresident aircraft, boat, mobile home, motor vehicle, or other vehicle dealers when purchasing any aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government which will be transported outside of Florida for resale and no other purpose.

SUGGESTED EXEMPTION CERTIFICATE:

PURCHASE OF AIRCRAFT, BOAT, MOBILE HOME, MOTOR VEHICLE, OR OTHER VEHICLE BY

NONRESIDENT DEALER FOR RESALE OUTSIDE FLORIDA

DATE ______Florida Dealer: ____________

Address: _______ (Street) _______ (City) _______ (State)

Sales Tax No. _____

Nonresident Dealer-buyer: _____

Address: _____ (Street) _____ (City) _____ (State)

Sales Tax No. _____

License No. _____

Passport or Visa Number: _____

Description of each aircraft, boat, mobile home, motor vehicle, or other vehicle sold, including make, model, identification number, and selling price, sold for purposes of resale to the nonresident dealer indicated below:

---

The aircraft, boat, mobile home, motor vehicle, or other vehicle identified above will be transported outside Florida for resale and for no other purpose. I am licensed and registered as an aircraft, boat, mobile home, motor vehicle, or other vehicle dealer in the state or country and at the address shown above.

Under penalties of perjury, I declare that I have read the foregoing certificate and the facts stated are true to the best of my knowledge and belief.

Signature of Nonresident Dealer _______________________________________________________________________________

Address of Nonresident Dealer _________________________________________________________________________ (Street)

_____________________________________ (City) ________________________________________________________ (State)

---

(7) Aircraft, Boats, Mobile Homes, Motor Vehicles, or Other Vehicles Delivered to Purchaser Outside Florida.

(a) An aircraft, boat, mobile home, motor vehicle, or other vehicle may be sold tax exempt to a purchaser if delivery is accepted outside the State of Florida and an exemption certificate is executed by and buyer. The burden of obtaining this evidential matter rests with the seller, who must retain the proper documentation to support the exempt sale.

(b) The following is a suggested statement to be used by a Florida dealer when making sales of aircraft, boats, mobile homes, motor vehicles, or other vehicles which are delivered outside this state.

SUGGESTED EXEMPTION CERTIFICATE FOR ACCEPTANCE OF DELIVERY OF

AIRCRAFT, BOAT, MOBILE HOME, MOTOR VEHICLE, OR OTHER VEHICLE OUTSIDE FLORIDA

Date ________

Dealer or Seller:

Name _______

Address ________ (Street) ______ (City) ________ (State)

Purchaser:

Name ____________

Address ______ (Street) _______ (City) ________ (State)

Description of each aircraft, boat, mobile home, or motor vehicle sold, including make, model, identification number, and purchase price: ____________

The delivery of the aircraft, boat, mobile home, motor vehicle, or other vehicle identified above was accepted outside Florida and will not be used in Florida under conditions which will subject said aircraft, boat, mobile home, motor vehicle, or other vehicle to Florida sales and use tax.

Under penalties of perjury, I declare that I have read the foregoing certificate and the facts stated are true to the best of my knowledge and belief.

Signature of Purchase ______________________________________________________

(8) Motor Vehicles.

(a) The sale in this state by a motor vehicle dealer of a new or used motor vehicle to a resident of another state of the United States is taxable in an amount equal to the sales tax which would be imposed on such sale in the purchaser’s state of residence. A list of the sales tax rates applicable in other states and the District of Columbia is available, without cost, by one or more of the following methods: 1) writing Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112; or, 2) calling the Forms Request Line during regular office hours at (850)488-6800; or, 3) downloading selected forms from the Department’s website at floridarevenue.com/forms. However, such tax shall not exceed the tax that would otherwise be imposed by Chapter 212, F.S. At the time of the sale the purchaser shall execute a notarized statement of his or her intent to license the vehicle in his or her state of residence within 10 days from the date of purchase and:

1. Pay Florida sales tax to the dealer making the sale in an amount equivalent to the sales tax in the purchaser’s state of residence;

2. Furnish the dealer making the sale with a signed copy of the notarized statement which the dealer shall retain in his records; and,

3. Submit the notarized statement to the appropriate sales tax collection agency in his state of residence.

4. The Department prescribes Form DR-123, Affidavit for Partial Exemption of Motor Vehicle Sold to a Resident of Another State, incorporated by reference in Rule 12A-1.097, F.A.C., to be completed by the purchaser and furnished to the selling dealer or appropriate sales tax collection agency.

(b) Each motor vehicle dealer who is required by Section 320.08(12), F.S., to purchase one or more dealer license plates shall pay an annual use tax of $27 for each dealer license plate purchased and such tax shall be for the year for which the dealer license plate was purchased. Dealers’ tags authorized pursuant to Section 320.13, F.S., shall be valid for use on motor vehicles owned by dealers to whom issued while the motor vehicle is being held in inventory for sale in the regular course of business, or while the motor vehicle is being operated in connection with such dealers’ business and shall not be valid for use for hire.

(c) When a motor vehicle dealer assigns a motor vehicle to a person other than an employee or officer (such as relatives or business associates), it will be presumed that the motor vehicle is not in inventory for sale in the regular course of business or for operation in connection with the dealer’s business. Tax must be paid, measured by the purchase price of the motor vehicle.

(d) If a motor vehicle dealer purchases under a resale certificate a new motor vehicle of a type which he is not franchised to sell, or does not ordinarily sell as a new vehicle, and uses the vehicle for any purpose other than, or in addition to, solely demonstration or display, it shall be presumed that he is not holding the vehicle in inventory for sale in the regular course of business or for operation in connection with his business, and tax shall be due measured by the cost price of the vehicle.

(e) Except for motor vehicles held exclusively for leasing, motor vehicles which are capitalized in a fixed asset account and depreciated for income tax purposes are not held for resale. Tax must be paid measured by the cost price of such motor vehicles.

(f) If a motor vehicle manufacturer, distributor, dealer, or lessor registers a motor vehicle purchased for resale in a name other than that of the manufacturer, distributor, dealer, or lessor, and retains title to the motor vehicle, the vehicle is not being held for sale in the regular course of business, and the manufacturer, distributor, dealer, or lessor shall pay tax measured on the cost price of the motor vehicle.

(g) An automobile which is exclusively used by the dealer for loan to a high school in its driver education and safety program may be titled in the dealer’s name without payment of tax, provided that the dealer furnishes the Department of Highway Safety and Motor Vehicles, Division of Motor Vehicles, with an affidavit to that effect when applying for title.

(h) The sale of a motor vehicle by a rental car agency to a customer is taxable. The rental car agency shall collect and remit the tax to the Department of Revenue and shall furnish the customer with a receipt therefore which he can attach to his application for certificate of title as proof that tax has been paid.

(i) A motor vehicle dealer or a licensed export-import dealer registered under the sales and use tax law must obtain and provide an ocean bill of lading from a regularly operated transportation company engaged in foreign commerce to prove export and exemption from Florida tax, except as otherwise provided in subsection (6) above. Claimed shipment abroad in privately operated vessels or vehicles where no bill of lading is issued as proof of export of specific items cannot be allowed without tax. Such claimed shipment is construed to be acceptance of delivery in Florida by purchaser and is taxable.

(j)1. The occasional or isolated sale of a motor vehicle of a class or type which is required to be registered, licensed, titled, or documented in this state or by the United States Government is taxable based upon the total selling price of the motor vehicle.

2. If any party to the occasional or isolated sale of any motorcycle, moped, motorized bicycle, automobile for private use, truck with a net weight of 5,000 pounds or less, antique truck, travel trailer, camping trailer, or motor home reports to the tax collector a sales price which is less than 80 percent of the average loan price for the specified model and year of such vehicle as listed by Maclean Hunter Market Reporters, Inc. (hereby incorporated by reference), the tax shall be computed by the Executive Director or the Executive Director’s designee in the responsible program on the average loan price for the specified model and year of such vehicle as listed in the most recent price list published by Maclean Hunter Market Reporters, Inc. This is applicable unless the parties to the occasional or isolated sale have provided to the tax collector an affidavit (Form DR-99A), signed by each party, or other substantial proof as may be required by the Executive Director or the Executive Director’s designee in the responsible program, stating the actual sales price of such vehicle. Form DR-99A, Affidavit for Private or Casual Sale of a Motor Vehicle, is incorporated by reference in Rule 12A-1.097, F.A.C.

3. The value of optional equipment, high mileage, low mileage, or reconditioning are excluded for purposes of determining the average loan price of any used vehicle as listed by Maclean Hunter Market Reporters, Inc.

4. The compiled price list is updated at intervals dependent upon the class of vehicle by Maclean Hunter Market Reporters, Inc., and the most recent version is applicable. For information regarding the compiled price list, contact the Florida Department of Revenue, Compliance Determination-Campaigns, at (850)617-8594 and, for the hearing or speech impaired, TDD at 1(800)367-8331. A written request may be mailed to the following address:

Florida Department of Revenue

General Tax Administration MS 1-2800

P.O. Box 6417

Tallahassee, Florida 32314-6417.

(k) Well drilling, excavation, construction, spraying, and like extra equipment and devices mounted on motor vehicles which are not necessary for the operation of the vehicle as a motor vehicle upon the highway may be considered separate and apart from the vehicle for the purpose of determining tax application. When such a vehicle is sold, the total sales price is taxable unless the vehicle was a used vehicle and was sold by a person who is not a dealer in such vehicles. When a person who is not a dealer in such vehicles sells a used vehicle of this type, the tax must be paid by the purchaser upon the total sales price when application is made for transfer of title to the vehicle unless the value of the extra equipment which is not necessary for the operation of the vehicle on the highways is separately stated. When the value of such extra equipment is separately stated on the customer’s billing and appears to be reasonable, only the value of the vehicle is subject to the tax.

(l) The occasional or isolated sale of trailers or other vehicles including, but not limited to, mopeds of a class or type required to be registered, licensed, tagged, titled, or documented in this state or by the United States Government is taxable.

(m) The act of registering any motor vehicle in this state constitutes constructive importation for use of such motor vehicle in this state and shall subject such motor vehicle to Florida use tax.

(9) Boats.

(a)1. No sales or use tax is due on the sale in Florida of a new or used boat by or through a registered dealer to a purchaser that is not a resident of Florida at the time of taking delivery of the boat when the conditions of subparagraph 212.05(1)(a)2., F.S., are met. Where there is a listing broker for the seller and a broker for the nonresident purchaser, the purchaser’s broker is considered the selling dealer for purposes of this paragraph.

2. To claim the exemption, the nonresident purchaser must provide an affidavit to the selling dealer in which the nonresident purchaser affirms qualification for the exemption provided in subparagraph 212.05(1)(a)2., F.S., and attests the required documents will be timely provided to the Department.

3.a. The nonresident purchaser of a boat of five net tons of admeasurement or larger may apply to the selling dealer for a decal set to allow the boat to remain in Florida for 90 days after the date of purchase as a qualifying boat. Boat dealers registered with the Department may purchase decal sets by submitting an Application/Order Form for Boat Decal Sets (Form DR-42, incorporated by reference in Rule 12A-1.097, F.A.C.) with payment of $20 per decal set to the Department.

b. The nonresident purchaser of a qualifying boat may also apply to the selling dealer within 60 days after the date of purchase for an extension decal set for $425.00, to allow the qualifying boat to remain in Florida for an additional 90 days. To obtain the extension decal set, the nonresident purchaser and the selling dealer must submit an Application for Extension of 90-Day Decal to 180 days (Form DR-42E, incorporated by reference in Rule 12A-1.097, F.A.C.) with payment to the Department. A qualifying boat displaying an extension decal before the original 90-day decal expires allows the qualifying boat to remain in Florida for a total of 180 days after the date of purchase.

4. The selling dealer must provide to the Department within 30 days after the date of sale a copy of the sales invoice, bill of sale, closing statement, and the original affidavit signed by the purchaser. The selling dealer must maintain the sales invoice, bill of sale, or closing statement, and a copy of the affidavit signed by the purchaser for a period of at least five years or until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

5. The following is a suggested format for an affidavit to be completed by the purchaser and furnished to the selling dealer:

AFFIDAVIT FOR EXEMPTION OF BOAT SOLD FOR REMOVAL

FROM THE STATE OF FLORIDA BY A NONRESIDENT PURCHASER

I, the undersigned, hereby affirm that:

I am not a resident of the State of Florida and did not make my permanent place of abode in Florida at the time of taking delivery of the boat identified below and (mark which of the following applies):

( ) I am not engaged in Florida in any employment, trade, business, or profession for which the identified boat will be used in Florida.

( ) I represent a corporation which has no officer or director who is a resident of Florida or makes his or her permanent place of abode in Florida.

( ) I represent an artificial entity other than a corporation which has no individual vested with authority to participate in the management, direction, or control of the affairs of the entity who is a resident of Florida or makes his or her permanent place of abode in Florida.

I qualify for the exemption under subparagraph 212.05(1)(a)2., F.S., from Florida sales and use tax on the purchase of the boat identified below for the following reason (mark which of the following applies):

( ) Boat will be removed by me or by my designated agent from Florida within 10 days after the date of purchase.

( ) Boat is to be repaired or altered and will be removed from Florida by me or by my designated agent within 20 days after completion of the repairs or alterations.

( ) Boat is five net tons of admeasurement or larger and I plan to have the boat in Florida for a period up to 90 days after the date of purchase. The selling dealer has affixed a decal set issued by the Florida Department of Revenue authorizing the boat to remain in Florida up to 90 days after the date of purchase. I understand that the boat must be removed from Florida within the 90-day period authorized by the decal set. I understand that I may apply to the selling dealer for an extension decal that authorizes the boat to remain in Florida for an additional 90 days, but not more than a total of 180 days after the date of purchase. I understand the application for an extension decal must be submitted to the selling dealer within 60 days after the date of purchase of the boat and that the extension decal set cost $425.

I attest that I will provide the following to the Florida Department of Revenue:

( ) Within 30 days after the date of removal of the identified boat from Florida, invoices for fuel, dockage charges, or repairs issued by out-of-state vendors or suppliers or other documentary evidence which specifically identifies the boat, including the hull identification number, and its timely removal from Florida.

( ) Within 90 days after the date of removal of the identified boat from Florida, written proof that the boat was licensed, titled, registered, or documented outside Florida. If written proof is unavailable within 90 days after the date of purchase, proof that I have applied for the license, title, registration, or documentation of the boat outside Florida, and, upon receipt, proof of license, title, registration, or documentation outside Florida.

Name of Purchaser _______________________

Purchaser’s Permanent Address ____________ (Street) _________ (City) __________ (State/Country)

Purchaser’s Telephone Number ( ) _____________

Name of Selling Dealer __________

Address of Selling Dealer _________ (Street) ___________ (City) ___________ (State)

Selling Dealer’s Florida Sales and Use Tax Registration Number __________________

Selling Dealer’s Telephone Number ( ) ___________

Date of Sale ________ (Month) __________ (Day) __________ (Year)

DESCRIPTION OF BOAT

Make ________ Model _________ Year ______ Hull Identification No. __________ ( ) New ( ) Used

Department of Revenue Decal Number (if issued) __________________ Expiration Date __________________

Department of Revenue Extension Decal Expiration Date (if issued) __________________

Under penalties of perjury, I declare that I have read the foregoing affidavit, and the facts stated are true to the best of my knowledge and belief.

---

(Signature of Purchaser)

Selling dealers must:

Provide the original affidavit signed by the nonresident purchaser, a copy of the sales invoice, closing statement, and bill of sale to the Florida Department of Revenue, General Tax Administration MS 1-2800, P.O. Box 6417, Tallahassee, Florida 32314-6417 within 30 days after the date of sale.

Retain a copy of the signed affidavit for their records.

Provide the nonresident purchaser a copy of the signed affidavit.

6.a. In the event the nonresident purchaser fails to provide to the Department the documents required under subparagraph 212.05(1)(a)2., F.S., and included in the affidavit provided in subparagraph (9)(a)5., the Department will proceed against the purchaser for payment of the tax, penalty, and interest due on the purchase of the boat.

b. In the event the selling dealer fails to maintain the records required under subparagraph 212.05(1)(a)2., F.S., and listed in subparagraph (9)(a)4., the Department will proceed against the seller for payment of the tax, penalty, and interest due on the sale of the boat.

7. For purposes of this paragraph, any individual who maintains a place of abode in Florida is a Florida resident. A place of abode is a dwelling place maintained by a person, or by another for the person, whether or not owned by such person, on other than a temporary or transient basis. The dwelling may be a house, apartment, mobile home, motor home, boat, a room, including a room in a hotel, motel or boarding house, or any other structure. Any individual qualifying for homestead exemption or voting rights in Florida is considered a Florida resident. Other factors which are used to establish Florida residency or domicile, but alone are not conclusive, are ownership of a Florida residence, having Florida licenses (driver’s license or other forms of licenses), or declaration of Florida residency on federal or state tax returns.

8. Documents, as required in this paragraph to be provided to the Department, are to be mailed to:

Florida Department of Revenue

General Tax Administration MS 1-2800

P.O. Box 6417

Tallahassee, Florida 32314-6417.

(b)1.a. A boat, purchased by its current owner outside this state, using the waters of this state and required to be registered and numbered in this state within 20 days after purchase by the owner, pursuant to Section 327.10, F.S., is subject to tax on the sales price of the boat within 20 days after purchase by the owner.

b. A boat, purchased by its current owner outside this state, operating on the waters of this state in excess of 90 days, which is solely documented under operative federal law, or which is registered, licensed, or titled pursuant to a federally approved numbering system of another state as described in Section 327.16, F.S., is subject to tax on the sales price of the boat at the time the requirements of Section 327.16, F.S., have been met.

2. Effective September 1, 1992, any boat which remains in this state for more than an aggregate of 183 days in any 1-year period shall be presumed to be commingled with the general mass of property of this state, and tax shall be due on the sales price of the boat, except under the following circumstances:

a. A boat used in other states or territories of the United States, or the District of Columbia for six months or longer under conditions which lawfully give rise to the taxing jurisdiction of another state, territory, or District of Columbia and any lawfully imposed tax was paid to such state, territory, or District of Columbia before being imported into Florida; or

b. A boat which is physically in the care, custody, and control of a facility registered with the Department for the purpose of repairs, alterations, refitting, or modifications, and such activities have been properly documented in accordance with Rule 12A-1.0071, F.A.C.

3. Refer to subsection (2) of this rule for purchases made outside Florida and to subsection (3) of this rule for tax credit for tax lawfully imposed and paid to another state, territory of the United States, or District of Columbia.

(c) The occasional or isolated sale of a boat of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government is taxable based upon the total selling price of the complete boat rig, which includes the boat and its motor, trailer, and accessories, if any. However, the tax applies only to the boat and trailer, if the seller separately describes each of the other components and separately itemizes the sales price of each component on the sales invoice. Inboard machinery used to propel or power a boat and accessories attached to a boat or trailer are taxable. Sales of components of a boat rig by a person registered or required to be registered as a dealer are taxable.

(d) The sale of a boat by any “person,” as defined in Section 212.02, F.S., who does not hold a valid dealer’s certificate of registration issued by the Florida Department of Revenue is taxable, and the Department may proceed against the purchaser for the collection of the tax.

(e)1. The presumption that tangible personal property used in another state, territory of the United States, or the District of Columbia for six months or longer before being imported into Florida was not purchased for use in Florida, does not apply to any boat imported into Florida for which a saltwater fishing license fee is required. Any boat imported into Florida for which a saltwater fishing license fee is required to be paid pursuant to Section 372.57(7), F.S., for either the boat or the captain, for the purpose of taking, attempting to take, or possessing any marine fish for noncommercial purposes, such as sport or pleasure fishing, is subject to use tax, due and payable as follows:

a. A boat that is first licensed within 1 year after purchase is subject to use tax on the full amount of the purchase price;

b. A boat that is first licensed in the second year after purchase is subject to use tax on 90 percent of the purchase price;

c. A boat that is first licensed in the third year after purchase is subject to use tax on 80 percent of the purchase price;

d. A boat that is first licensed in the fourth year after purchase is subject to use tax on 70 percent of the purchase price;

e. A boat that is first licensed in the fifth year after purchase is subject to use tax on 60 percent of the purchase price;

f. A boat that is first licensed in the sixth year after purchase is subject to use tax on 50 percent of the purchase price;

g. If the purchaser fails to provide the purchaser’s invoice for the boat, tax shall be computed on the fair market value of the boat at the time the boat is imported into Florida.

2. The purchaser is required to present proof of payment of the tax prior to the issuance of the first saltwater fishing license issued under the provisions of Section 372.57(7), F.S.

3. When an individual, possessing a license under the provisions of Section 372.57, F.S., is hired to captain a boat, use tax shall be due as provided in this paragraph when the boat is used for the purpose of taking, attempting to take, or possessing any saltwater fish for noncommercial purposes, such as sport or pleasure fishing.

(10) Aircraft.

(a)1. No sales or use tax is due on the sale in Florida of new or used aircraft by or through a registered dealer to a purchaser that is not a resident of Florida at the time of taking delivery of the aircraft when the conditions of subparagraph 212.05(1)(a)2., F.S., are met. Where there is a listing broker for the seller and a broker for the nonresident purchaser, the purchaser’s broker is considered the selling dealer for purposes of this subsection.

2. To claim the exemption, the nonresident purchaser must provide an affidavit to the selling dealer in which the nonresident purchaser affirms qualification for the exemption provided in subparagraph 212.05(1)(a)2., F.S., and attests the required documents will be timely provided to the Department.

3. The selling dealer must provide to the Department within 30 days after the date of sale a copy of the sales invoice, bill of sale, closing statement, and the original affidavit signed by the purchaser.

4. The following is a suggested format for an affidavit to be completed by the purchaser and furnished to the selling dealer:

AFFIDAVIT FOR EXEMPTION OF AIRCRAFT SOLD FOR REMOVAL FROM

THE STATE OF FLORIDA BY A NONRESIDENT PURCHASER

I, the undersigned, hereby affirm that:

I am not a resident of the State of Florida and did not make my permanent place of abode in Florida at the time of taking delivery of the aircraft identified below and (mark which of the following applies);

( ) I am not engaged in Florida in any employment, trade, business, or profession for which the identified aircraft will be used in Florida.

( ) I represent a corporation which has no officer or director who is a resident of Florida or makes his or her permanent place of abode in Florida.

( ) I represent an artificial entity other than a corporation which has no individual vested with authority to participate in the management, direction, or control of the affairs of the entity who is a resident of Florida or makes his or her permanent place of abode in Florida.

I qualify for the exemption under subparagraph 212.05(1)(a)2., F.S., from Florida sales and use tax on the purchase of the aircraft identified below for the following reason (mark which of the following applies):

( ) Aircraft will be removed by me or by my designated agent from Florida to a jurisdiction within the United States or one of its territories within 10 days after the date of purchase.

( ) Aircraft is to be repaired or altered and will be removed from Florida by me or by my designated agent within 20 days after completion of the repairs or alterations.

( ) Aircraft will be registered in a foreign jurisdiction (any jurisdiction outside of the United States or any of its territories). The application for the aircraft's registration will be properly filed with a civil airworthiness authority of a foreign jurisdiction within 10 days after the date of purchase. Aircraft will be removed from Florida to a foreign jurisdiction within 10 days after the date the aircraft is registered by the applicable foreign airworthiness authority. Aircraft will be operated in Florida solely to remove the aircraft from Florida to a foreign jurisdiction.

I attest that I will provide the following to the Florida Department of Revenue:

( ) Within 30 days after the date of removal of the identified aircraft from Florida, invoices for fuel, tie-down or hangar charges, repairs, or other similar documentation issued by an out-of-state vendor or supplier which identifies the aircraft, including the Federal Aviation Administration (FAA) registration number or identification number issued by the civil airworthiness authority of a foreign jurisdiction, and its timely removal from Florida; and

( ) Within 90 days after the date of removal of the identified aircraft from Florida, written proof that the aircraft was licensed, titled, or registered outside Florida. If written proof is unavailable within 90 days after the date of purchase, proof that I have applied for the license, title, or registration of the aircraft outside Florida, and, upon receipt, proof of license, title, or registration outside Florida.

Name of Purchaser _______________________

Purchaser’s Permanent Address _________ (Street) _________ (City) _________ (State/Country)

Purchaser’s Telephone Number ( ) _________

Name of Selling Dealer _________

Address of Selling Dealer __________ (Street) ___________ (City) _________ (State)

Selling Dealer’s Florida Sales and Use Tax Registration Number ___

Selling Dealer’s Telephone No. ( ) __________

Date of Sale ________ (Month) ________ (Day) ______ (Year)

DESCRIPTION OF AIRCRAFT

Make ______ Model _______ Year _______ Serial No. ________ ( ) New ( ) Used

Tail Number(s) _________

Under penalties of perjury, I declare that I have read the foregoing affidavit, and the facts stated are true to the best of my knowledge and belief.

---

(Signature of Purchaser)

Selling dealers must:

Provide the original affidavit signed by the nonresident purchaser, a copy of the sales invoice, closing statement, and bill of sale to the Florida Department of Revenue, General Tax Administration MS 1-2800, P.O. Box 6417, Tallahassee, Florida 32314-6417 within 30 days after the date of sale.

Retain a copy of the signed affidavit for their records.

Provide the nonresident purchaser a copy of the signed affidavit.

5.a. In the event the nonresident purchaser fails to provide to the Department the documents required under subparagraph 212.05(1)(a)2., F.S., and included in the affidavit provided in subparagraph (1)(a)4., the Department will proceed against the purchaser for payment of the tax, penalty, and interest due to the purchase of the aircraft.

b. In the event the selling dealer fails to maintain the records required under subparagraph 212.05(1)(a)2., F.S., and listed in subparagraph (1)(a)3., the Department will proceed against the seller for payment of the tax, penalty, and interest due on the purchase of the aircraft.

6. For purposes of this paragraph, any individual who maintains a place of abode in Florida is a Florida resident. A place of abode is a dwelling place maintained by a person, or by another for the person, whether or not owned by such person, on other than a temporary or transient basis. The dwelling may be a house, apartment, mobile home, motor home, boat, a room, including a room in a hotel, motel or boarding house, or any other structure. Any individual qualifying for homestead exemption or voting rights in Florida is considered a Florida resident. Other factors which are used to establish Florida residency or domicile, but alone are not conclusive, are ownership of a Florida residence, having Florida licenses (driver’s license or other forms of licenses), or declaration of Florida residency on federal or state tax returns.

7. Documents, as required in this paragraph to be provided to the Department, are to be mailed to:

Florida Department of Revenue

General Tax Administration MS 1-2800

P.O. Box 6417

Tallahassee, Florida 32314-6417

(b)1. When the sale of flyable aircraft is made by a manufacturer of flyable aircraft who manufactures the aircraft, which sale may include necessary equipment and modifications placed on such flyable aircraft prior to delivery by the manufacturer, the tax imposed on the sale shall be an amount equal to the sales tax which would be imposed on such sale under the laws of the state in which the aircraft will be domiciled. However, such tax shall not exceed 6 percent of the sales price of such aircraft and no tax shall be imposed on the sale of the aircraft if the state in which the aircraft will be domiciled does not allow credit against its sales or use tax for sales or use tax paid in Florida. Furthermore, the tax shall not be imposed on the sale of such aircraft if the state in which the aircraft will be domiciled has enacted a sales or use tax exemption for flyable aircraft or if the aircraft will be domiciled outside the United States.

2. The partial exemption provided in this paragraph applies only if the purchaser is a resident of another state who will not use the aircraft in this state, or if the purchaser is a resident of another state and uses the aircraft in interstate or foreign commerce, or if the purchaser is a resident of a foreign country. At the time of sale the purchaser shall execute a notarized statement attesting he or she is not a resident of this state and stating where the aircraft will be domiciled.

3. Notwithstanding the above provisions of this paragraph, the owner of an aircraft may permit the aircraft to be returned to this state for repairs within 6 months from the date of sale without incurring liability for payment of tax or penalty on the purchase of the aircraft so long as the aircraft is removed from this state within 20 days of the completion of the repairs.

4. Notwithstanding the provisions of this paragraph, the purchaser of an aircraft may purchase such aircraft pursuant to the provisions of paragraph (b), above, in which case the provisions of paragraph (b) shall prevail.

(c)1. Aircraft being exported under their own power to a destination outside the continental limits of the United States are subject to tax, unless the purchaser furnishes the dealer a duly signed and validated United States Customs declaration, showing the departure of the aircraft from the continental United States and the canceled United States registry of said aircraft. The burden of obtaining the evidential matter to establish the exemption rests with the selling dealer, who must retain the proper documentation to support the exemption.

2. Equipment and parts installed on aircraft of foreign registry are subject to tax, unless the owner, owner’s agent, or operator of the aircraft furnishes the dealer with an exemption certificate stating the aircraft was brought to the United States for the purpose of having equipment and parts installed and that upon completion of such installation, the aircraft will depart under its own power from the continental United States. The burden of obtaining this evidential matter rests with the dealer installing the equipment and parts, who must retain the proper documentation to support the exemption.

3. The following is a suggested exemption certificate to be used by a Florida dealer when installing parts and equipment on any aircraft of foreign registry which aircraft will depart under its own power from the continental United States upon completion of such installation.

EXEMPTION CERTIFICATE FOR

PARTS AND EQUIPMENT INSTALLED ON AIRCRAFT OF FOREIGN REGISTRY

________ (date)

To: _______________________________________ (dealer)

Make: ___________________________________________

Model: __________________________________________

Serial Number: ___________________________________

Registration Number: ______________________________

Country of Registration ____________________________

I, ___________, as owner, owner’s agent, or operator of the above named aircraft certify said aircraft has been brought to the United States for the purpose of having repairs or maintenance performed and that upon completion of such repairs or maintenance, the aircraft will depart under its own power from the continental United States.

Owner: _____________

Address: ____________

Accepted by: __________ (Name of Dealer) for repair order(s)

No.(s) _____________________ by: _______________________

---

---

---

Under penalties of perjury, I declare that I have read the foregoing certificate, and the facts stated are true to the best of my knowledge and belief.

---

Signature and Title of Owner, Owner’s Agent, or Operator of the above named aircraft

Note: This exemption certificate is valid for one entry/departure only.

(d) The sale of an aircraft by any “person,” as defined in Section 212.02, F.S., who does not hold a valid dealer’s certificate of registration which is issued by the Florida Department of Revenue and authorizes such person to sell aircraft is not exempt from the tax.

(e)1. All charges for aircraft modification services, including parts, equipment, and labor furnished or installed in connection therewith, performed under authority of a supplemental type certificate issued by the Federal Aviation Administration, as provided in 14 C.F.R. Part 21, Subpart E – Supplemental Type Certificates, are exempt.

a. The aircraft modifications subject to this exemption are those which introduce a major change in type of design not great enough to require a new application for a type certificate, as provided by Aeronautics and Space, 14 C.F.R. §21.113 (March 5, 2018), effective January 1, 2020, and hereby incorporated by reference (http://www.flrules.org/Gateway/reference.asp?No=Ref-13419).

b. The term “supplemental type certificate” is that certificate described in 14 C.F.R., §21.113 (2018).

2. To document this exemption, the purchaser of the qualifying modification and the business that performed the modification must maintain, in its books and records, copies of the FAA supplemental type certificate and FAA Form 337 containing a description of the major change, signed by a holder of an FAA inspection authorization.

(f)1. Registered aircraft dealers who purchase aircraft exclusively for resale are exempt from the payment of tax on the purchase price at the time of purchase but shall pay a use tax computed on 1 percent of the value of the aircraft each calendar month that the aircraft is used by the dealer.

2. The payment of such use tax shall commence in the month during which the aircraft is first used for any purpose for which income is received by the dealer for its use, including charter, rental, flight training, and demonstration where a charge is made.

3. A dealer may pay the sales tax on the purchase of the aircraft in lieu of the monthly use tax.

4. The value of the aircraft shall be determined by adding to acquisition cost the cost of reconditioning, if any, and shall generally be the value reflected upon the books of the dealer in accordance with generally accepted accounting principles.

5.a. Routine maintenance and repairs, including the replacement of parts, which do not materially enhance the value of the aircraft, shall not constitute reconditioning of the aircraft for the purpose of computing the use tax each month. Where such routine repairs and maintenance are performed by the dealer or his employees, tax shall be paid on the parts used in such routine repairs and maintenance. However, where such routine repairs and maintenance are performed by any person other than the dealer or his employees, the total charge for the repairs and maintenance, including the charge for parts or labor, is taxable.

b. The determination whether an expenditure constitutes maintenance and repairs on which a tax is to be paid but which does not cause a change in the value of the aircraft for use tax purposes, or whether an expense constitutes a reconditioning of the aircraft on which a tax is not to be paid but which will cause a change in the basis upon which the use tax is computed, shall be made in accordance with generally accepted accounting principles. The guidelines of the Internal Revenue Service as to whether the expense is immediately deductible, or whether the expense is a capital investment which may be depreciated, shall be used in making such determination.

(g) Notwithstanding the payment by the dealer of tax computed on 1 percent of the value of any aircraft, if the aircraft is leased or rented, the dealer shall collect from the customer and remit to the State the tax which is due on the lease or rental of the aircraft, and such payments shall not diminish or offset any use tax due by the dealer.

(h) The occasional or isolated sale of an aircraft of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government is taxable. See Rule 12A-1.071, F.A.C., for the application of tax to the rental of aircraft, charges made by an air taxi (charter), charges for flight instruction, and charges for solo flights by students.

(i) Labor charges for the repair and maintenance of aircraft with a maximum certified take-off weight that exceeds 2,000 pounds, including rotary wing aircraft, and charges for replacement engines, parts, or equipment used and installed on such aircraft being repaired or maintained in Florida are exempt. Dealers must document tax-exempt repairs or maintenance by including the maximum certified take-off weight of the aircraft on the bill of sale, invoice, or other tangible evidence of sale.

(11) Mobile Homes.

(a) For purposes of this subsection the term “mobile home” means and includes a structure, transportable in one or more sections, which is 8 body feet or more in width and which is built on an integral chassis and designed to be used as a dwelling when connected to the required utilities and includes the plumbing, heating, air-conditioning, and electrical systems contained therein.

(b)1. The sale or use of a mobile home which is not classified as real property is considered a sale or use of tangible personal property and is taxable. A mobile home is tangible personal property if it is located in a mobile home park or other place where the land on which the mobile home is located is not owned by the mobile home owner.

2. If a mobile home is classified as tangible personal property, the sale, including the occasional or isolated sale, the use, consumption, or storage for use in this state is taxable on the full sales price.

3. The sale of a mobile home independent of the realty to which it is affixed at the time of sale constitutes a legal severance of the mobile home from the realty and the sale of the mobile home is taxable as the sale of tangible personal property even though the mobile home may have an “RP” decal affixed thereto at the time of sale.

4. The sales price of a mobile home which is considered tangible personal property is the total sales price of the mobile home which shall include, if applicable, the sales price of any tangible personal property included within or which becomes a part of, or is attached to the mobile home at the time of the sale of the mobile home. Such tangible personal property may include but is not limited to: interior equipment and furnishings; skylights; carport roof; or storage structures.

(c) A mobile home park developer (owner) who is also in the business of selling mobile homes and who enters into an agreement with a purchaser for the sale of the mobile home, the placing of the mobile home on the developer’s mobile home lot, and for making certain improvements to the developer’s mobile home lot as requested by the purchaser, shall charge or pay tax as follows:

1. If the sale of the mobile home, the placing of the mobile home on the developer’s lot, and making improvements to the mobile home lot are for a single lump sum amount, sales tax is due on the total amount. The sales tax is to be separately stated as Florida sales tax in the agreement and on the invoice and is to be collected by the developer from the purchaser. In this instance, the developer may extend his resale certificate for the purchase of the mobile home and for the items used in making improvements to the mobile home lot. Examples of these improvements include mobile home skirting or blocking, screen porches or other attached rooms, central heating and air conditioning units, shrubbery and other plants, lawn grass, and driveways.

2. If the sale of the mobile home, the placing of the mobile home on the developer’s lot, and the making of improvements to the mobile home lot are separately stated in the agreement and on the invoice, sales tax is due on the selling price of the mobile home and the placing of the mobile home on the developer’s lot. If the agreement provides that the purchaser has an option of having a third party place the mobile home on the developer’s lot, only the sale of the mobile home is subject to tax. The sales tax is to be separately stated as Florida sales tax in the agreement and on the invoice and is to be collected by the developer from the purchaser. Under this subparagraph, the developer is liable for the tax on its purchases of tangible personal property used in making the improvements to the realty, unless the requirements of paragraph 12A-1.051(3)(d), F.A.C., are met. If the developer contracts with a third party to make improvements to realty, the third party is liable for the tax on the purchase of tangible personal property used in making improvements to the real property.

(d)1. The sale of a mobile home in conjunction with the sale of land at a time when the mobile home is not real property, either by its not bearing an “RP” decal or at the time of the sale the conditions of paragraph (g) not being satisfied, is a sale of tangible personal property and is taxable. The sales price of the mobile home at such sale, if not separately stated, shall be based upon the larger of:

a. The fair market value; or

b. The balance of any outstanding liens on the mobile home.

2. When a person owns real property upon which he permanently affixes a mobile home, such person may request the county property appraiser to assess it as realty. Upon assessment as realty by the property appraiser, the owner may obtain an “RP” decal from the county tax collector. Any repairs, alterations, or improvements of any mobile home that bears an “RP” decal will be treated as the repair, alteration, or improvement to real property. Repairs, alterations, or improvements to mobile homes which do not bear an “RP” decal constitute repairs, alterations, or improvements to tangible personal property.

(e)1. The sale of land and a mobile home which is classified as real property as a packaged deal is not taxable. The person converting the mobile home into realty is deemed a contractor engaged in improving realty. A mobile home is presumed to be real property when such mobile home bears a valid “RP” decal. A mobile home which does not bear a valid “RP” decal is classified as real property only if:

a. The mobile home is permanently affixed to land owned by the owner of the mobile home. A mobile home is permanently affixed to land for sales tax purposes if the mobile home sits on a foundation with its wheels either removed or off the ground and if the mobile home is connected to utility services; and,

b. Prior to the sale, and not simultaneously thereto, the owner of the mobile home and of the realty to which it is affixed files with the county property appraiser a declaration requesting the mobile home be assessed as real property.

2. The provisions of Rule 12A-1.051, F.A.C. (Sales to or by Contractors Who Repair, Alter, Improve, and Construct Real Property), shall not be construed to apply to any instance where a contractor is considered as improving realty by incorporating a mobile home therein nor to any sale of a mobile home to the extent that Rule 12A-1.051, F.A.C., refers to the sale of a mobile home as a sale of tangible personal property.

(f)1. The rental of a mobile home as tangible personal property is taxable. A mobile home purchased tax exempt for exclusive rental as tangible personal property is subject to use tax if the mobile home ceases to be used for the purpose for which it was purchased. The owner shall accrue and pay to the Department of Revenue use tax computed on the fair market value of the mobile home at the time it is used for any purpose other than exclusively for rental as tangible personal property.

2. Notwithstanding the fact that a mobile home is subject to a license tax under the Motor Vehicle License Law, it is nevertheless a “rooming house” within the meaning of Chapter 212, F.S., when it has a fixed location and is used or held out to the public to be a place where living quarters, sleeping, or housekeeping accommodations are supplied for pay to transient or permanent guests or tenants. The purchase of a mobile home to be used as living accommodations within the purview of Section 212.03, F.S., is taxable at the time of purchase even though the mobile home may be untagged or have affixed thereto a motor vehicle license tag or an “RP” decal.

(g)1. Any prefabricated or modular housing unit or portion thereof which is not manufactured upon a chassis or undercarriage as an integral part thereof is not a mobile home. Any such unit not affixed to realty is subject to the tax as tangible personal property when sold or repaired. When affixed to realty, the sale, repair, alteration, or improvement of any such unit is governed by Rule 12A-1.051, F.A.C.

2. In the instances of a modular home or prefabricated housing unit or manufactured building, the term “affixed to realty” shall mean a condition whereby the unit or building is either served by utility service other than electricity or is in place on land or on a foundation, or is on, attached to, or incorporated in another structure by any means other than by its own weight.

3. The sale, use, or rental of a modular home, prefabricated building, or manufactured building before such unit is affixed to realty is taxable as tangible personal property.

4.a. The terms “modular home” or “prefabricated housing unit” mean and include structures which are designed to be used as dwellings when connected to the required utilities including the plumbing, heating, air-conditioning, and electrical systems contained therein, but which are not built on an integral chassis and which are not designed to be transported on their own wheeled assembly.

b. The term “manufactured building” means and includes a closed structure, building assembly, or system of assemblies, which may include structural, electrical, plumbing, heating, ventilating, or other service systems manufactured in manufacturing facilities for installation or erection, with or without other specified components, as a finished building or as part of a finished building, which shall include, but not be limited to commercial, institutional, storage, and industrial structures.

(h) The occasional or isolated sale of a mobile home, when such mobile home is tangible personal property within the meaning of this subsection, is taxable. The internal plumbing, heating, air conditioning, electrical systems, and attached fixtures, such as built-in ovens, built-in dishwashers, hot water heaters, and built-in furniture, are considered a part of the mobile home and are taxable when sold with the mobile home. However, tax does not apply to the occasional or isolated sale of carports, utility sheds, furniture, freezers, refrigerators, drapes, air conditioner compressor/condenser units located outside the mobile home, or other appurtenances which are sold in conjunction with the mobile home, provided the selling party to the occasional or isolated sale separately describes each appurtenance and separately itemizes the sales price of each appurtenance on the sales invoice. If the appurtenances are not separately described and the sales price of each appurtenance is not separately itemized, the total selling price is taxable. Sales of appurtenances by a person registered or required to be registered as a dealer are taxable.

(12) Insurance.

(a) The transfer of title to any aircraft, boat, mobile home, or motor vehicle from the insured to an insurance company in conjunction with the settlement of a claim is exempt.

(b) The purchase of parts by an insurance company to repair a vehicle for sale is exempt.

(c) The use by an insurance company of any aircraft, boat, mobile home or motor vehicle which has been transferred to the company in conjunction with the settlement of a claim is taxable. The tax is to be computed upon its fair market value at the time title is acquired by the insurance company.

(d) The sale of any aircraft, boat, mobile home, or motor vehicle, including those sold for junk, by an insurance company is taxable unless the purchaser extends to the insurance company a resale certificate.

(e) All repairs of any aircraft, boat, mobile home, or motor vehicle, paid for by an insurance company in settlement of claims arising under the owner’s liability, collision, or comprehensive policy are fully taxable.

(f) The purchase of a replacement aircraft, boat, mobile home, or motor vehicle by an insurance company in settlement of a claim is taxable.

Cross Reference: See Rule 12A-1.105, F.A.C., for Application of Tax to Motor Vehicle Service Agreements.

(13) Lease or Rental.

(a)1. The rental or lease of an aircraft, boat, mobile home, or motor vehicle, which is used or stored in this state, is subject to tax. The lessor is required to be registered as a dealer and to collect tax on the total amount of the lease or rental charges.

2. The purchase by a registered dealer of an aircraft, boat, mobile home, or motor vehicle exclusively for lease or rental purposes is exempt. The purchasing dealer is required to issue the selling dealer a copy of the purchasing dealer’s Annual Resale Certificate at the time of purchase in lieu of paying tax, as provided in Rule 12A-1.039, F.A.C.

(b) Commercial Motor Vehicles and Motor Vehicles Used by Businesses That Lease or Rent Motor Vehicles.

1. For purposes of this paragraph, the term “commercial motor vehicle,” as defined in Section 316.003(14)(a), F.S., means any self-propelled or towed vehicle used on the public highways in commerce to transport passengers or cargo, if such vehicle has a gross vehicle weight rating of 10,000 pounds or more.

2. For purposes of this paragraph, the term “motor vehicle,” as defined in Section 316.003, F.S., means a self-propelled vehicle not operated upon rails or guideway. The term does not include bicycles, electric bicycles, motorized scooters, electric personal assistive mobility devices, mobile carriers, personal delivery devices, swamp buggies, or mopeds.

3. The lease or rental of a motor vehicle used primarily in the trade or established business of the lessee or renter, or a commercial motor vehicle, and any renewals of such lease or rental, is exempt when:

a. The lease or rental is to one lessee or renter for a period of 12 months or longer;

b. Sales or use tax is paid on the purchase price of the commercial motor vehicle or motor vehicle by the lessor; and,

c. The lease or rental of the commercial motor vehicle or motor vehicle is an established business or part of an established business, or incidental or germane to such business.

4. A credit against any Florida use tax and discretionary sales surtax due when the commercial motor vehicle or motor vehicle is registered, licensed, or titled in Florida will be allowed to any purchaser who provides documentary evidence that a like tax has been lawfully imposed on the purchase of the commercial motor vehicle or motor vehicle and has been paid to another state, territory of the United States, or District of Columbia. The credit allowed shall be the amount of legally imposed like tax paid to the other state, territory of the United States, or District of Columbia. When the applicable tax credit is equal to or greater than the amount of Florida use tax and discretionary sales surtax due, no additional use tax or discretionary sales surtax is due. When the tax paid to another state, territory of the United States, or District of Columbia is greater than the Florida use tax and discretionary sales surtax due, no refund is due from the State of Florida.

5. The lease or rental of the same commercial motor vehicle or motor vehicle to any other lessee or renter is subject to tax.

(c) Motor Vehicle Leased or Rented for Less Than 12 Months.

1. The entire charge for the lease or rental of a motor vehicle for a period of less than 12 months is subject to tax when the contract to lease or rent a motor vehicle is entered into in Florida or the motor vehicle is delivered or picked up in Florida at the commencement of the lease or rental term. Florida sales tax is due during the entire lease period even when the vehicle is used in another state or dropped off in another state or the payment for the lease or rental is made in another state.

2. The entire charge for the lease or rental of a motor vehicle for a period of less than 12 months is exempt when the contract to lease or rent a motor vehicle is entered into in another state and the motor vehicle is not delivered or picked up in Florida at the commencement of the lease or rental term. This exemption applies even when the leased or rented motor vehicle is used in Florida or dropped off in Florida or the payment for the lease or rental is made in Florida.

(d) Motor Vehicle Leased or Rented for 12 Months or Longer.

1. Except for commercial motor vehicles and motor vehicles, as provided in paragraph (b), the lease or rental of a motor vehicle registered in Florida for a period of 12 months or longer is subject to tax.

2. When the taxpayer documents that a vehicle registered in Florida is being used outside Florida and that tax is being paid on the lease or rental payments to another state, no tax is due on the lease or rental of the motor vehicle. The taxpayer must maintain copies of invoices or similar documents evidencing that the lessor is collecting another state’s sales tax from the lessee or copies of cancelled checks evidencing that the taxpayer has self-accrued and paid another state’s sales tax directly to that state.

3. When a motor vehicle that is leased or rented outside Florida is imported into Florida and registered or licensed in Florida, tax is due on the amount of the monthly lease payments. A credit against the Florida tax and discretionary sales surtax due will be allowed for any lawfully imposed sales or use tax paid to another state, territory of the United States, or District of Columbia when all the following conditions are met:

a. The other state, territory of the United States, or District of Columbia requires the lawfully imposed sales or use tax to be paid at the time of lease or rental on the total lease or rental payments due under the terms of the lease or rental agreement;

b. The tax must be lawfully imposed on the lessee. A credit will not be allowed for tax paid to another state, territory of the United States, or District of Columbia when the sales or use tax is lawfully imposed on the lessor, even though the lessee may be contractually obligated to reimburse the lessor;

c. The other state, territory of the United States, or District of Columbia does not allow a refund of the sales or use tax paid at the inception of the lease or rental agreement if the motor vehicle is removed from that state, territory of the United States, or District of Columbia; and,

d. The lessee provides documentary evidence that the like tax lawfully imposed on the sale or use of the motor vehicle has been paid to another state, territory of the United States, or District of Columbia.

4. The credit allowed against any Florida use tax and discretionary sales surtax due when the motor vehicle is licensed or registered in Florida is the amount of legally imposed like tax paid to the other state, territory of the United States, or District of Columbia. When the applicable tax credit is equal to or greater than the amount of Florida use tax and discretionary sales surtax due, no additional use tax or discretionary sales surtax is due. When the tax paid to another state, territory of the United States, or District of Columbia is greater than the Florida use tax and discretionary sales surtax due, no refund is due from the State of Florida.

(e) Charges for the Lease or Rental of Motor Vehicles.

1. Charges for Insurance. Any separately itemized charge or fee for insurance coverage required to be paid by the lessee or renter is subject to tax. When the lessee or renter has the option to elect insurance coverage, any separately itemized charge or fee for the optional insurance coverage is not subject to tax. For example, a separately itemized charge for a “collision damage waiver fee” that is optional to the lessee or renter for the lessor’s waiver of all claims against the lessee or renter for damage to the motor vehicle is not subject to tax. A separately itemized charge for a “personal accident insurance fee” that is optional to the lessee or renter for personal injury coverage is not subject to tax.

2. Charges for Fuel. Any separately itemized charge for fuel upon which the fuel taxes imposed under Chapter 206, F.S., have been paid is not subject to tax. However, when a separately itemized charge for a fuel purchase option (e.g., “FPO – Fuel Purchase Option”) is required and no allowance is made for the amount of fuel remaining in the tank, the charge is not a charge for the price of fuel upon which the fuel taxes have been paid. Such separately itemized charges required to be paid for fuel purchase options are a part of the total lease or rental charges subject to tax.

(f) When a taxicab company, limousine company, or any other transportation for hire company rents, leases, or grants a license to use a taxicab, limousine, other vehicle, dispatch equipment, or any other tangible personal property to an independent operator, the rental, lease, or license to use such property, as well as the dispatch and all other related services which are a part of the rental, lease, or license to use, the vehicle, dispatch equipment, or other tangible personal property, are not subject to sales tax. However, the exemptions provided under this paragraph only apply if the applicable Florida sales or use tax has been paid on the acquisition of the taxicab, limousine, other vehicle, dispatch equipment, or other tangible personal property.

(14) United States and Foreign Military Personnel Stationed in Florida.

(a) United States military personnel.

1. A member of the United States military residing in Florida on military orders seeking to register or title any aircraft, boat, mobile home, motor vehicle, or other vehicle in the State of Florida which was purchased outside Florida and brought into Florida, regardless of whether the member is a Florida resident or non-Florida resident, is subject to tax. The tax applies to aircraft, boats, mobile homes, motor vehicles, and other vehicles brought into Florida upon initial entry and to those brought in on subsequent re-entry while already stationed in Florida. (Refer to subsection (2) of this rule for purchases made outside this state six (6) months or more prior to the time a vehicle is brought into Florida, and to subsection (3) for tax credit for tax legally imposed and paid outside of Florida.)

2. A member of the United States military residing in Florida on military orders is subject to tax on any aircraft, boat, mobile home, motor vehicle, or other vehicle which is purchased in Florida.

3. A member of the United States military who is a permanent resident of the State of Florida with a permanent address in the State of Florida seeking to register or title any aircraft, boat, mobile home, or motor vehicle in Florida which was purchased outside the State of Florida is subject to tax. Refer to subsection (2) of this rule for purchases made outside Florida and to subsection (3) of this rule for tax credit for tax lawfully imposed and paid to another state, territory of the United States, or District of Columbia.

(b) Foreign military personnel.

1. Foreign military personnel, their dependents, and military-employed foreign civilians, if attached to a member of the North Atlantic Treaty Organization and stationed in Florida, are exempt from use tax on any aircraft, boat, mobile home, or motor vehicle purchased outside Florida and brought into Florida, either upon initial entry or upon subsequent re-entry while already stationed in Florida. Non-U.S. members of the North Atlantic Treaty Organization are: Belgium, Canada, Denmark, France, Federal Republic of Germany, Greece, Iceland, Luxembourg, Netherlands, Norway, Portugal, Spain, Turkey, and United Kingdom.

2. All foreign military personnel other than the NATO personnel referred to above are subject to tax on any aircraft, boat, mobile home, motor vehicle, or other vehicle purchased outside of Florida and subsequently brought into the state.

3. All foreign military personnel are subject to tax on any aircraft, boat, mobile home, motor vehicle, or other vehicle purchased in Florida.

(15)(a) The repossession of an aircraft, boat, mobile home, motor vehicle, or other vehicle by a seller or lienholder is not a sale subject to tax.

(b) For credit or refund of tax paid on repossessed aircraft, boats, mobile homes, motor vehicles, or other vehicles or bad debts, see Rule 12A-1.012, F.A.C.

(16) Parts and materials used by aircraft, boat, mobile home, or motor vehicle dealers in repairing, rebuilding, and reconditioning aircraft, boats, mobile homes except mobile homes which bear a “RP decal”, motor vehicles, or other vehicles for sale are exempt from tax.

(17)(a) Lubricating oils and greases, automatic transmission fluids, brake fluids, motor additives, friction proofing oils, solvents, driers, and all other lubricants are taxable. The tax is due on the total selling price paid by the purchaser, including any other state and federal charges which are a part thereof.

(b) The entire lump sum charges made by a service station for grease jobs, wheel packs, and the like are taxable and are payable by the customer to the service station.

(18) All detergents and cleaners purchased by dealers and rental agencies are taxable. Vehicle polishes purchased by such dealers for use in conditioning vehicles for sale are exempt. Polishes are exempt when purchased and used by the lessor in conditioning vehicles for rental when the rental is taxable.

(19) Lubrication and grease jobs, including motor oils, performed on new and used aircraft, boats, mobile homes, motor vehicles, or other vehicles being held by the dealer for sale are exempt. In instances where the dealer services his own aircraft, boat, mobile home, or motor vehicle, tax is due on his cost of all greases and other lubricants so used and the tax due thereon shall be remitted with his regular monthly sales tax report.

(20) The purchase of flares is taxable. (See Rule 12A-1.064, F.A.C., for proration of tax where applicable.)

(21) When a new aircraft, boat, mobile home, motor vehicle, or other vehicle part proves defective and the dealer repairs it free of charge to the customer, such part, if paid for by the manufacturer or dealer under a warranty contract is exempt.

(22) A so-called land and water cruiser or trailer constructed so that it may be used as an automobile trailer and/or as a boat in navigable waters and which has living facilities and equipment usually found in ordinary mobile homes is taxable. Such a cruiser or trailer used as a boat and never as a motor vehicle or mobile home is also subject to tax.

(23) Motor Vehicle Warranty Repurchases or Replacements (Lemon Law).

(a) The following provisions shall apply when a manufacturer pursuant to the provisions of Section 681.104, F.S., replaces or repurchases a motor vehicle:

1. When the manufacturer replaces the motor vehicle, tax is due on the amount of the reasonable offset for use paid by the consumer to the manufacturer. The dealer shall note on the sales invoice, bill of sale, or other proper document representative of the transaction that the motor vehicle is a replacement motor vehicle under provisions of Section 681.104, F.S., and shall collect the tax from the consumer on the amount of the reasonable offset for use.

2.a. When the manufacturer repurchases the motor vehicle, the Department of Revenue shall refund to the manufacturer any Florida sales tax that the manufacturer refunded to the consumer, lienholder, or lessor under the provisions of Section 681.104, F.S. To receive the refund, an Application for Refund-Sales and Use Tax (Form DR-26S, incorporated by reference in Rule 12-26.008, F.A.C.) must be filed by the manufacturer. An application for refund shall not be considered complete pursuant to sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C., and a refund shall not be approved before the manufacturer provides the required documentation listed in Form DR-26S regarding the reimbursement of tax previously paid on a vehicle purchased in Florida by a motor vehicle manufacturer when the manufacturer agrees to replace or repurchase the vehicle.

b. Form DR-26S, Application for Refund-Sales and Use Tax, must be filed with the Department for tax paid on or after October 1, 1994, and prior to July 1, 1999, within 5 years after the date the tax was paid.

c. Form DR-26S, Application for Refund-Sales and Use Tax, must be filed with the Department for tax paid on or after July 1, 1999, within 3 years after the date the tax was paid.

(b) For purposes of this subsection the terms “manufacturer,” “motor vehicle,” and “reasonable offset for use” are given the same meanings as the definitions provided in Sections 681.102(13), (14) and (18), F.S.

(24) The taxable sales or lease price of a new motor vehicle when such sale or lease by a dealer occurs on or after January 1, 1989, shall not include the two ($2) dollar fee collected from the purchaser or lessee under Chapter 681, F.S. All such fees collected by a dealer shall be remitted to the county tax collector or private tag agency acting as agent for the Department of Revenue.

(25)(a) The following transfers of ownership of any aircraft, boat, mobile home, motor vehicles, or other vehicles of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government are exempt from tax, provided that a certificate setting forth the facts and signed under penalty of perjury accompanies the application for title transfer, or if no title certificate is required by law, the application for transfer of license or registration:

1. The transfer of title as a gift. The application for title or, if no title certificate is required, the transfer of license or registration, must be accompanied by a sworn statement which contains a description of the aircraft, boat, mobile home, motor vehicle, or other vehicle, the name and address of the donor and a statement that the title of the vehicle passed without any consideration valued in money, whether paid in money or otherwise, and that no outstanding lien on the described aircraft, boat, mobile home, motor vehicle, or other vehicle is being assumed by applicant, to be tax exempt. In lieu thereof, the Executive Director or the Executive Director’s designee in the responsible division shall estimate the value of the aircraft, boat, mobile home, motor vehicle, or other vehicle and assess tax thereon accordingly. If applicant assumes outstanding lien only, the amount of such outstanding lien is the basis for the tax.

2. The transfer of title from a partnership to one of the partners as part of a complete or partial liquidation of the partnership. The transfer of title which is not in the nature of a distribution of earnings or profits of a partnership as part of the complete or partial liquidation of the partnership is subject to tax.

3. The transfer of title by a dissolved corporation to one of its stockholders as part of the stockholder’s ratable portion of the assets of the corporation does not constitute a sale by the dissolved corporation to the stockholder and such transfer is exempt.

4. The transfer of title into the name of the surviving corporation by reason of a corporate consolidation or merger in accordance with Chapter 607 or 617, F.S., or a reorganization as defined in s. 368(a)(1) of the Internal Revenue Code solely in exchange for stock.

5. The distribution to the heir(s) of an estate, including the distribution to the beneficiaries of a revocable or irrevocable trust following the death of the grantor. However, the sale of an aircraft, boat, mobile home, motor vehicle, or other vehicles of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government by a personal representative of an estate is subject to the tax. See subparagraph (b)3. of this subsection.

6. The transfer of title between husband and wife of marital property.

7. The transfer of title between persons formerly married to each other if the transfer is part of the property settlement or court ordered division of marital property in a divorce decree.

8. The even trade or trade down of an aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government for another aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government, even though there may be a lien. The application for title, or if no title certificate is required the license or registration, must be accompanied by a sworn statement which contains a description of the aircraft, boat, mobile home, motor vehicle, or other vehicle and the name and address of the person with which the aircraft, boat, mobile home, motor vehicle, or other vehicle was traded, to be tax exempt. In lieu thereof, the Department of Revenue shall estimate the value of the aircraft, boat, mobile home, motor vehicle, or other vehicle and assess the tax thereon accordingly.

(b) The transfer of title to an aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government to or from any revocable or irrevocable trust is taxable in the following manner:

1. The transfer of title into a revocable or irrevocable trust is taxable, irrespective of whether such transfer involves married persons. The tax shall be computed on the cash or its equivalent paid for the equity transferred plus the amount of any outstanding lien(s) which is assumed by the trust.

2. The transfer of title as a gift into a revocable or irrevocable trust is not taxable. A transfer subject to a lien(s) will not qualify as a gift when any outstanding lien(s) is assumed by the trust.

3. The transfer of title from a revocable or irrevocable trust to a beneficiary of the trust, including a beneficiary who was a minor at the formation of the trust, or to any other transferee is taxable. However, if the transfer to the beneficiary occurs upon the death of the grantor as a distribution to the heirs of the grantor, such transfer is not subject to tax. The tax shall be computed on the cash or its equivalent paid for the equity transferred plus the amount of any outstanding lien(s) which is assumed by the beneficiary for which the beneficiary was not already fully liable as a co-maker on the note or other obligation evidencing the debt or lien.

(c) When title to an aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government is transferred from a partnership to one of the individual partners, or from one of the individual partners to a partnership, or from one partnership to another partnership, it is taxable based upon the actual consideration, or if the consideration is not stated, on the fair market value of the vehicle.

(d) When title to an aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government is transferred from an individual, who may or may not be a stockholder, to a corporation, or from a corporation to an individual who may or may not be a stockholder, or from one corporation to another, or from a partnership to a corporation, or from a corporation to a partnership, it is presumed that a consideration flows from the transferee to the transferor, and if no consideration is stated, then it shall be presumed to be the fair market value of the vehicle. This is true even when the two corporations are owned by the same stockholders.

(e)1. When a co-owner transfers an interest in any aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government to any co-owner, tax shall apply on the transfer of such interest. The measure of tax shall be the cash or its equivalent paid for the equity transferred plus the selling co-owner’s share of the liabilities assumed by the buying co-owner.

2. Notwithstanding the provisions of subparagraph 1., when a person adds or removes his or her spouse to or from the title of any aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled or documented in this state or by the United States Government, owned by the husband or wife, the transfer does not constitute a taxable transfer of ownership interest, even though the transfer of ownership accompanied by the spouse’s addition to or release from an underlying note or obligation is secured by the aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government.

(f) An aircraft, boat, mobile home, motor vehicle, or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government transferred as a gift or as a prize in a contest or drawing is taxable when registered or titled in this state by the recipient or prize winner, based on the retail value of the aircraft, boat, mobile home, motor vehicle, or other vehicle, unless the donor of the gift or prize had paid the tax on the sales price or cost price thereof.

(g)1. The transfer of title of a commercial motor vehicle is not taxable, when all of the following conditions are met:

a. The transfer of title occurs between two commonly owned and controlled corporations;

b. Such vehicle was titled and registered in this state at the time of the transfer of title; and,

c. Florida sales tax was paid at the prevailing tax rate on the acquisition of such vehicle by the transferor either on the full purchase price of such vehicle, or if the vehicle is licensed as a common carrier, to the extent provided in Section 212.08(9)(b), F.S., which is based on the ratio of intrastate mileage to interstate mileage. See Rule 12A-1.064, F.A.C., for proration of tax for vehicles used in interstate or foreign commerce.

2. The lease or rental of a commercial motor vehicle is not taxable, when all of the following conditions are met:

a. The lease or rental occurs between two commonly owned and controlled corporations;

b. Such vehicle was titled and registered in this state at the time of the lease or rental; and,

c. Florida sales tax was paid at the prevailing tax rate, either on the full purchase price of such vehicle, or if the lessor is a common carrier and the vehicle is licensed by the Interstate Commerce Commission to transport persons or property in interstate or foreign commerce to the extent provided in Section 212.08(9)(b), F.S., which is based on the ratio of intrastate mileage to interstate mileage.

See Rule 12A-1.064, F.A.C., for proration of tax for vehicles used in interstate or foreign commerce.

3.a. The term “commercial motor vehicle” for the purposes of this paragraph means any vehicle that is not owned or operated by a governmental entity; which uses special fuel or motor fuel on the public highways; and which has a gross vehicle weight in excess of 26,000 pounds, or has three (3) or more axles regardless of weight, or is used in combination when the weight of such combination exceeds 26,000 pounds gross vehicle weight.

b. The term “commercial motor vehicle” excludes any vehicle owned or operated by a coordinated community transportation provider as defined in Section 427.011, F.S., or a private operator that provides public transit services under contract with such a provider.

4. The term “commonly owned and controlled corporations” for purposes of this paragraph means a parent corporation and its wholly-owned (100%) subsidiaries.

(26)(a) The purchase or surrender of a co-ownership interest in any aircraft, boat, mobile home, motor vehicle or other vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government, or the substitution of one co-owner for another, is taxable based upon the actual consideration paid, or the fair market value, if the consideration paid is not an adequate indication of the true value of the property transferred. Example: A and B each own one-half interest in a pleasure boat. C purchases B’s one-half interest in the pleasure boat. This is a taxable sale; co-ownership without the carrying on of a business for a profit is not a partnership.

(b) For purposes of this rule, a partnership is an association of two or more persons to carry on, as co-owners, a business for profit. Limited partnerships and joint ventures are included as partnerships.

(27) Any presumption established by this rule may be rebutted only by clear and convincing evidence to the contrary.

(28) The taxability of retail sales of any aircraft, boat, mobile home, or motor vehicle will not be affected by the fact that tax has been paid previously on the sales price, cost price, rental receipts, or fair market value, because of the use or rental of the aircraft, boat, mobile home, or motor vehicle.

Cross-Reference: Rules 12A-1.037, 12A-1.064, and 12A-1.066, F.A.C.

History

• Rulemaking Authority 212.05(1)(a)2.f., 212.18(2), 213.06(1) FS. Law Implemented 212.03, 212.05(1), 212.06(1), (2), (4), (5), (7), (8), (10), (12), 212.0601, 212.07(2), (8), 212.08(5)(i), (7)(t), (aa), (ee), (rr), (10), (11), 212.12(2), 213.255(2), (3), 213.35, 215.26(2), 681.104 FS. History–New 10-7-68, Amended 1-7-70, 1-17-71, 6-16-72, 8-18-73, 12-11-74, 6-9-76, 2-21-77, 5-10-77, 9-26-77, 9-28-78, 3-16-80, 12-31-81, 7-20-82, 10-13-83, Formerly 12A-1.07, Amended 1-2-89, 12-11-89, 3-17-93, 10-17-94, 3-20-96, 4-2-00, 6-19-01, 8-1-02, 4-17-03, 9-28-04, 1-11-16, 1-8-19, 12-31-20, 8-15-21, 2-20-25.

Fla. Admin. Code R. 12A-1.0071 Boats Temporarily Docked in Florida

(1)(a) Notwithstanding the provisions of Chapter 328, F.S., pertaining to the registration of vessels, a boat upon which sales or use tax has not been paid is exempt from the use tax if it enters and remains in Florida for a period not to exceed a total of 20 days in any calendar year, calculated from the date of first dockage or slippage at a facility registered with the Department.

(b)1. When a boat brought into Florida is placed in a facility that is registered as a dealer with the Department, for repairs, alterations, refitting, or modifications and such repairs, alterations, refitting, or modifications are supported by written documentation, the 20-day period is tolled during the time the boat is physically in the care, custody, and control of the repair facility.

2. The 20-day time period may be tolled only once within a calendar year when a boat is placed for the first time that year in the physical care, custody, and control of a registered repair facility, including the time spent on sea trials conducted by the facility; however, the owner may request and the Department is authorized to grant an additional tolling of the 20-day period for purposes of repairs that arise from a written guarantee given by the registered repair facility, when the guarantee covers only those repairs or modifications made during the first tolled period. All requests for additional tolling must be addressed to the Florida Department of Revenue, General Tax Administration MS 1-2800, P.O. Box 6417, Tallahassee, Florida 32314-6417. All requests for the additional tolling period must be in writing, setting out the boat owner’s name; the boat’s description, which includes the name, make, model, year, serial number, and hull identification number of the boat; the trade name and mailing address of the registered repair facility; and the registered repair facility’s dealer’s certificate of registration number assigned by the Department. The Department will notify the dealer in writing of its determination of the request for the additional tolling period, and will grant the additional tolling, if the documentation provided is complete and guarantees to cover only the repairs or modifications made during the first tolled period. Additionally, a copy of the written guarantee required in this subsection shall be maintained as a part of the repair facility’s records for at least 5 years or until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(c)1. Upon completion of the repairs, alterations, refitting, or modifications, the registered repair facility must have in its possession, within 72 hours after the date of release, a copy of the release form which shows the date of release and a copy of the certification of any necessary sea trials performed by the repair facility, including the dates and time of the sea trial necessary to test the designated repairs, alterations, modifications, or seaworthiness of the boat, and the release of the boat. In addition, the repair facility shall maintain a log that documents all alterations, additions, repairs, and sea trials during the time the boat is under the care, custody, and control of the facility. The records required in this subsection shall be maintained as a part of the repair facility’s records until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

2. The following is a suggested format for an affidavit to be retained by the dealer and made a part of the dealer’s records when a boat is placed by a nonresident owner in a facility, registered with the Department of Revenue, for repairs, alterations, refitting, or modifications:

AFFIDAVIT FOR BOATS PLACED IN A REGISTERED REPAIR FACILITY

I, the undersigned, affirm that the hereinafter described boat is under the below repair facility’s care, custody, and control for repairs, alterations, refitting, or modifications, and that the owner does not use the boat while in this facility.

NAME OF REPAIR FACILITY: _______________________________________________________________________________

ADDRESS OF REPAIR FACILITY: _____________________________________________________________________ (Street)

__________________________________________________ (City) ____________________________________________ (State)

REPAIR FACILITY’S SALES & USE TAX REGISTRATION NUMBER: _____________________________________________

DATE BOAT PLACED IN REPAIR FACILITY FOR REPAIRS, ALTERATIONS, REFITTING, OR

MODIFICATIONS: _______________________________ (Month) (Day) (Year)

NAME OF BOAT OWNER: __________________________________________________________________________________

BOAT OWNER’S PERMANENT ADDRESS: __________________________________ (Street)

__________________________________________________ (City) ____________________________________________ (State)

DESCRIPTION OF BOAT

Name of Boat ____________________________ Make ___________ Model _________ Year _____

Serial Number ____________ Hull I.D. Number _______________________________

DESCRIPTION OF REPAIRS, ALTERATIONS, REFITTING, OR MODIFICATIONS TO BE MADE

---

Under penalties of perjury, I declare that I have read the foregoing affidavid and the facts stated are true to the best of my knowledge and belief.

Signature of Dealer: _________________________________________________________________________________________

Under penalties of perjury, I declare that I have not used the above described boat while it was in the care, custody, and control of the repair facility.

---

Signature of Boat Owner Date

The repairs, alterations, refitting, or modifications to the above described boat are completed and the boat was released:

---

(Month) (Day) (Year)

---

Signature of Dealer Date

3. The following is a suggested format for a certification to be retained by the dealer and made a part of the dealer’s records when a sea trial is conducted by the facility on a boat, placed by a nonresident owner in a facility, registered with the Department of Revenue, for repairs, alterations, refitting, or modifications:

SEA TRIALS OF BOATS PLACED IN A REGISTERED REPAIR FACILITY

NAME OF THE REPAIR FACILITY:___________________________________________________________________________

ADDRESS OF REPAIR FACILITY: __________________________________________ (Street)

__________________________________________________ (City) ____________________________________________ (State)

REPAIR FACILITY’S SALES & USE TAX REGISTRATION NUMBER: _____________________________________________

DATE BOAT PLACED IN REPAIR FACILITY FOR REPAIRS, ALTERATIONS, REFITTING, OR

MODIFICATIONS: ______________________________ (Month) (Day) (Year)

NAME OF BOAT OWNER: __________________________________________________________________________________

BOAT OWNER’S PERMANENT ADDRESS: ____________________________________ (Street)

__________________________________________________ (City) ____________________________________________ (State)

DESCRIPTION OF BOAT

Name of Boat __________________________________ Make ______ Model _____ Year ______

Serial Number ______________ Hull I.D. Number _______________________

DESCRIPTION OF REPAIRS, ALTERATIONS, REFITTING, MODIFICATIONS, OR SEAWORTHINESS TO BE TESTED, INCLUDING THE TIME REQUIRED TO PERFORM SEA TRIAL:

---

Under penalties of perjury, I declare that the sea trial, as specified above, is necessary to test the repairs, alterations, refitting, modifications, or seaworthiness of the vessel specified, and that I have not used or permitted any use of the above described vessel for purposes other than those specified above.

---

(Signature of Boat Owner) (Title) (Date)

---

(Signature of Dealer) (Title) (Date)

The testing of the repairs, alterations, refitting, modifications, or seaworthiness of the above described vessel was performed during the following time period and we affirm the length and scope of the voyage were reasonably necessary to test the repairs or modifications:

Beginning: ___________________________ / ______________

(Month) (Day)

___________________________ / ______________

(Year) (Time)

Ending: ___________________________ / ______________

(Month) (Day)

___________________________ / ______________

(Year) (Time)

---

(Signature of Boat Owner) (Date)

---

(Signature of Dealer) (Date)

(d) When, within 6 months after the date of its purchase, a boat is brought into Florida and placed into a facility registered with the Department for repairs, alterations, refitting, or modifications as provided in the rule, the 6-month period provided in Section 212.05(1)(a)2. or 212.06(8), F.S., is tolled.

(e) During the period of repairs, alterations, refitting, or modifications and during the 20-day period the boat may be listed for sale, contracted for sale, or sold exclusively by a broker or dealer registered with the Department without incurring a use tax. The sale of the boat is subject to tax.

(f) The mere storage of a boat at a registered repair facility does not qualify as a tax-exempt use in Florida.

(2) As used in this section, “registered repair facility” means:

(a) A full-service facility that:

1. Registered as a dealer with the Department of Revenue;

2. Is located on a navigable body of water;

3. Has haulout capability such as a dry dock, travel lift, railway, or similar equipment to service craft under the care, custody, and control of the facility;

4. Has adequate piers and storage facilities to provide safe berthing of vessels in its care, custody, and control; and,

5. Has necessary shops and equipment to provide repair or warranty work on vessels under the care, custody, and control of the facility;

(b) A marina that:

1. Registered as a dealer with the Department of Revenue;

2. Is located on a navigable body of water;

3. Has adequate piers and storage facilities to provide safe berthing of vessels in its care, custody, and control; and,

4. Has necessary shops and equipment to provide repairs or warranty work on vessels; or

(c) A shoreside facility that:

1. Registered as a dealer with the Department of Revenue;

2. Is located on a navigable body of water;

3. Has adequate piers and storage facilities to provide safe berthing of vessels in its care, custody, and control; and,

4. Has necessary shops and equipment to provide repairs or warranty work.

(3) A “sea trial” means a voyage for the purpose of testing repair or modification work, which is in length and scope reasonably necessary to test repairs or modifications, or a voyage for the purpose of ascertaining the seaworthiness of a vessel.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(25), 212.05(1), 212.06(8), (12), 212.08(7)(t), 213.37 FS. History–New 12-8-87, Amended 8-10-92, 3-17-93, 5-18-94, 3-20-96, 3-25-20, 12-31-20.

Fla. Admin. Code R. 12A-1.008 Newspapers, Community Newspapers, Shoppers, Magazines and Other Periodicals

(1) Newspapers, Community newpapers, shoppers, magazines, and other periodicals.

(a) For purposes of this rule, the term “periodicals” includes newspapers, community newspapers, shoppers, newsletters, magazines, and other periodicals, but excludes books, whether published in serial form or otherwise.

(b)1. The sale of copies of periodicals is subject to tax. The sale of subscriptions to periodicals that are delivered to a subscriber in this state by a carrier or means other than by mail, such as home delivery, is subject to tax. When the designation of delivery is in this state by means other than by mail at the beginning of the subscription period, and it is later changed to outside this state or to be delivered by mail, the sale of the subscription is subject to tax.

2. The sale of subscriptions to periodicals that are delivered to the subscriber by mail are exempt whether delivered to a customer in this state or outside this state. When the destination of delivery at the beginning of the subscription period is by mail, but it is changed during the subscription period to be delivered in this state by a carrier or by means other than by mail, the sale of the subscription is exempt.

(c) When a publisher bills or invoices the consumer directly for copies of or subscriptions to periodicals for delivery other than by mail, the publisher is required to register as a dealer and collect and remit tax. (See Rule 12A-1.060, F.A.C.)

(d)1.a. When a publisher sells newspapers to its carriers and the carriers bill their customers and collect the payments, the publisher may elect to remit the applicable tax due for the carriers. The Department will authorize a publisher that uses carriers to sell its newspapers to remit tax on the retail sales price charged to the ultimate consumer in lieu of having the carrier register as a dealer and remit the tax, if the publisher properly complies with the provisions of Rule 12A-1.0911, F.A.C., Self-Accrual Authorization.

b. A publisher that has elected to remit the tax due for its carriers may take a credit for the amount of tax paid on the uncollected charges for periodicals credited to the carrier’s account. The publisher should obtain for its records a signed statement from the carrier indicating the uncollected amount of the retail sales price charged to its customers. (See Rule 12A-1.012, F.A.C.)

c. For purposes of this rule, “carrier” means any independent contractor, agent, street news vendor, or other person distributing periodicals on their own account and not as an employee of the publisher.

2. Any person who purchases newspapers from a publisher that has not elected to remit the tax due as provided in subparagraph 1., is required to register as a dealer and collect and remit tax on the retail sales price of the newspaper. Dealers registered with the Department may extend a copy of their Annual Resale Certificate (Form DR-13) to the publisher to purchase newspapers for resale tax exempt.

(2) Periodicals sold through rack machines.

(a) The sale of periodicals through rack machines is a sale of tangible personal property through vending machines, as defined in Section 212.0515(1), F.S., subject to tax at the rate established in Section 212.0515(2), F.S. A notice must be conspicuously displayed on the face of the rack machine that the purchase price of a copy includes sales tax.

1. If a rack machine is owned by a publisher and serviced by the publisher’s employees, the publisher is required to remit tax on sales made through such machine.

2. If a rack machine is owned by a retail establishment and is serviced by the employees of that establishment, the retail establishment is required to remit tax on sales made through such machine.

3. If a rack machine is owned and serviced by a carrier of a publisher who has elected to remit tax for its carriers, as provided in paragraph (1)(d), the publisher is required to remit tax on sales made through such machine.

4. If a rack machine is owned and serviced by a carrier of a publisher that has not elected to remit tax for its independent carriers, the carrier is required to remit tax on sales made through such machine.

(b) Owners or operators of rack machines through which sales are made must obtain a separate Sales and Use Tax Certificate of Registration (Form DR-11) for each county in which such machines are located. One Sales and Use Tax Certificate of Registration is sufficient for all the rack machines and devices within a single county. (See Rule 12A-1.060, F.A.C.)

(c) For guidelines on the purchase or repair of rack machines, see Rule 12A-1.044, F.A.C.

(d) When a rack machine is placed on location by the owner of the machine under a written agreement, the terms of the agreement will govern whether the lease is a lease or license to use tangible personal property or a lease or license to use real property. For the tax due on the purchase or lease of rack machines, see Rule 12A-1.044, F.A.C.

(3) Periodicals exempt from tax.

(a) Periodicals that meet the following requirements are exempt from tax:

1. The periodical is published on a regular basis;

2. The periodical is distributed free of charge to the recipient by mail, home delivery, rack machines, newsstands, or similar method; and,

3. The content of the periodical is primarily advertising.

(b) The sale of subscriptions to periodicals that are delivered to the subscriber by mail are exempt.

(c) Distributors of tax exempt periodicals may issue an exemption certificate to their vendors in lieu of paying tax on the publishing or printing costs of, or for the purchase of items, such as paper and ink, that are incorporated into and become a component part of, the publication.

(4) Inserts distributed with periodicals.

(a) Inserts, such as magazines, handbills, circulars, flyers, advertising supplements, and other printed materials distributed with a newspaper, community newspaper, shopper, or magazine are a component part of the newspaper, community newspaper, shopper, or magazine.

(b) Inserts are exempt from tax when:

1. The inserts are either printed by the publisher of the newspaper, community newspaper, shopper, or magazine or delivered directly to the publisher by any other printer for inclusion in a distributed newspaper, community newspaper, shopper, or magazine; and

2. The inserts are labeled as part of the designated newspaper, community newspaper, shopper, or magazine in the masthead, logo, gang logo, or supplement line of the newspaper, community newspaper, shopper, or magazine to which they are inserted; and,

3. If the purchaser of the insert acquires the insert from a dealer other than the publisher of the periodical, the purchaser must present to the selling dealer a copy of the purchaser’s Annual Resale Certificate (Form DR-13) or an exemption certificate, as provided in Rule 12A-1.038, F.A.C., stating that the publication is exempt from tax pursuant to Section 212.08(7)(w), F.S.

(5) Advertising materials distributed free of charge.

(a) Certain advertising materials are exempt from sales and use tax only if the materials:

1. Consist exclusively of advertisements, such as individual coupons or other individual cards, sheets, or pages of printed advertising; and,

2. Are distributed free of charge by mail in an envelope; and,

3. The envelope contains advertisements from 10 or more persons (advertisers).

(b) Sales and use tax is not due on the purchase of materials, such as paper, ink, envelopes, glue, or replenisher, that are incorporated into and become a component part of the exempt advertising materials. No use tax is imposed on the cost of manufacturing, producing, processing, or fabricating the exempt advertising materials. Dealers registered with the Department may extend a copy of their Annual Resale Certificate at the time of purchase, as provided in Rule 12A-1.039, F.A.C., to purchase materials that will be incorporated into and become a component part of the tax-exempt advertising materials.

(6) Periodicals sold or distributed by associations.

(a) Periodicals that are provided by an association to its members for a charge that is separate and apart from the payment of membership dues are considered to be sold by the association. If an association indicates on it dues invoices, membership billing statements, dues notices, or membership applications that a specified portion of the dues payment by the member is attributed to a periodical subscription, the amount specified for the subscription constitutes a sale of a subscription to the specified periodical.

(b) The charge for copies of periodicals, and subscriptions to periodicals that are not delivered to the purchaser by mail, are subject to tax. However, charges for subscriptions to periodicals that are delivered by mail to the member are exempt, whether the charge for such subscription is separately stated or included in the members’ dues.

(c) Associations that make taxable sales of copies of periodicals and of subscriptions to periodicals are required to register with the Department, and collect and remit the applicable tax on such sales. (See Rule 12A-1.060, F.A.C.) Associations may issue a copy of their Annual Resale Certificate to their vendors in lieu of paying tax on the publishing or printing costs of, or for the purchase of items, such as paper and ink, that are incorporated into and become a component part of, a periodical that is sold to its members.

(d)1. An association that publishes a periodical for distribution to its members is not selling such publications when:

a. Each member is entitled to receive the periodical in return for payment of dues; and,

b. There is no charge made for the periodical separate and apart from the payment of, or designated as a component part of, membership dues.

2. The purchase of printing or the cost of producing such periodicals by the association is subject to tax. If the association prints or otherwise produces the periodical itself, it is required to pay tax on such publications, as provided in Section 212.06(16), F.S.

(7) Materials, supplies, and services used in periodicals.

(a) The purchase of materials and supplies, which become a component part of a periodical for resale, or for distribution free of charge as provided in subsection (3), is exempt from sales and use tax. Examples of such items are: paper stock, including newsprint; printer’s ink; and dry spray powder that is used to speed the drying of ink on printed matter. Publishers whose business activity is limited to the tax exempt distribution of periodicals, as provided in subsection (3), are not required to register with the Department as a dealer and may issue an exemption certificate, as provided in Rule 12A-1.038, F.A.C., to the selling dealer to purchase such supplies and materials tax exempt. Dealers registered with the Department may present a copy of the dealer’s Annual Resale Certificate (Form DR-13) to the selling dealer to purchase such supplies and materials tax exempt.

(b) If a newspaper company employs another company or a printer to print its newspapers, the charge for printing is exempt when the purchaser presents a copy of the purchaser’s Annual Resale Certificate (Form DR-13) to the selling printer or newspaper company. Publishers whose business activity is limited to the tax exempt distribution of periodicals, as provided in subsection (3), may issue an exemption certificate, as provided in Rule 12A-1.038, F.A.C., stating that the publication is exempt from tax pursuant to Section 212.08(7)(w), F.S., to the selling printer or publishing company.

(c) The purchase of items and materials used one time only for packaging periodicals, without which the delivery of the periodical would be impractical, or for the convenience of the customer, is exempt. Examples of such packaging materials are: boxes, cans, mailing and wrapping paper, wax and plastic bags, twine, wire and steel band material, and shipping tags.

(d) The charge for information services, such as news research services, including photo and news services, furnished to newspapers is exempt. The charge for press clipping services is exempt. See Rule 12A-1.062, F.A.C.

(e) The purchase of expendable materials, supplies, and other items that do not become a component part of, or accompany, the periodical for sale is subject to tax. Examples of such items are: rosin paste, gummed paste, flash bulbs, felt packing, art supplies, photographs, engravings, cuts, mats, mat services, chemicals and additives used for processing printed materials, chemicals used as cleaning agents or detergents, blankets, rollers, matrix, wire machines, and other production and packaging equipment.

(f) The purchase, production, or creation of film, photographic paper, dyes used for embossing and engraving, artwork, typography, lithographic plates, and negatives used in producing periodicals for sale is subject to tax. When such items are manufactured, produced, compounded, processed, fabricated, or created by the publisher for his or her own use, the publisher shall pay tax on the cost price of such items. See Rule 12A-1.043, F.A.C. For the tax exemption provided for the purchase, production, or creation of these items to printers whose business is classified in the Standard Industrial Classification (SIC) Manual, 1987, as published by the Office of Management and Budget, Executive Office of the President, as SIC Industry Numbers 275, 276, 277, 278, or 279, see Rule 12A-1.027, F.A.C.

(g) The use by the publisher of copies of a periodical that does not meet the exemption requirements provided in subsection (3), through consumption of copies for use by the publisher or copies that are to be given away by the publisher, is taxable at the usual retail price thereof, if any, or at the cost price, as defined in Section 212.06(16), F.S.

History

• Rulemaking Authority 212.07(1)(b), 212.18(2), 213.06(1) FS. Law Implemented 212.02(4), 212.05(1)(a), (b), (g), 212.0515(1), (2), 212.06(1)(a), (b), (16), 212.07(1), (2), 212.08(7)(o), (v), (w), (yy), (ccc), 212.18(3)(a) FS. History–New 10-7-68, Amended 1-7-70, 6-16-72, Formerly 12A-1.08, Amended 4-22-86, 12-13-88, 1-30-91, 3-17-94, 3-20-96, 6-19-01, 1-28-08, 12-29-25.

Fla. Admin. Code R. 12A-1.009 Receipts from Services Rendered for Exterminating and Pest Control

(1)(a) Nonresidential pest control services enumerated in NAICS National Number 561710 of the North American Industry Classification System, published 2007, are subject to tax. Nonresidential pest control services are those services (not involving repair) rendered to minimize or eliminate any infestation of nonresidential buildings by vermin, insects, and other pests that do not include services provided for tangible personal property. Illustrative examples of taxable services are:

1. Bird control or bird proofing;

2. Exterminating services;

3. Fumigating services;

4. Pest control services; and,

5. Termite control.

(b) Residential pest control services are not taxable. Charges for pest control services provided at residential facilities used as living accommodations for persons, such as detached or single family dwellings, apartments, duplexes, triplexes, quadraplexes, residential condominiums, residential cooperatives, residential time-share units, beach cottages, nursing homes, and mobile home parks, and the common areas of those residential facilities, are not subject to tax. Residential facilities include multiple unit structures where each unit or accommodation is intended for use as a private temporary or permanent residence, but do not include a facility that is intended for commercial or industrial purposes. Charges for pest control services provided at residential facilities that provide temporary or permanent residences are not subject to tax, even though the rental, lease, letting, or licensing of such living accommodations may be subject to the tax imposed under Section 212.03, F.S.

(c) The services described in this rule are not taxable when provided by employees to their employers. See subsection 12A-1.0161(3), F.A.C.

(2) The charge for soil treatment for termites or other pests before a nonresidential building can be erected on the property is taxable.

(3) The charge for annual or periodic pest inspections is considered to be for pest control services and is taxable if provided to a nonresidential building.

(4) Where a person is providing pest control services to a residential building and a utility shed is located on the same property as the residential building, the spraying of the utility shed will be considered a part of the service to the residential building, provided no commercial activity is carried on at the utility shed.

(5) The charge to a lessor of a nonresidential building for pest control services is taxable, even if the tenant or lessee is a tax exempt entity.

(6) The spraying of lawns, whether residential or nonresidential, is not subject to tax.

(7) Pest control services provided for agricultural purposes or for forestry production are not taxable.

(8) Aircraft, boats, motor vehicles and other transportation vehicles are not considered to be nonresidential buildings. Therefore, the charge for pest control services provided to such vehicles is not taxable.

(9) Pest control service providers are considered the ultimate users or consumers of the tangible personal property sold to them and used in connection with their service and are required to pay the tax imposed upon such sales of tangible personal property to their dealers.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(b), (i) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.09, Amended 5-13-93, 3-20-96, 4-2-00, 6-19-01, 1-12-11.

Fla. Admin. Code R. 12A-1.0091 Cleaning Services

(1)(a) Nonresidential cleaning services as enumerated in NAICS National Number 561720 of the North American Industry Classification System, published 2007, are subject to tax. Nonresidential cleaning services are those services (not involving repair) rendered to maintain the clean and sanitary appearance and operating condition of a nonresidential building interiors, but they do not include cleaning services provided for tangible personal property. Illustrative examples of taxable services are:

1. Acoustical tile cleaning services;

2. Building cleaning services, interior;

3. Custodial services;

4. Deodorant servicing of restrooms;

5. Disinfecting services;

6. Floor waxing services;

7. Housekeeping (cleaning services);

8. Janitorial services;

9. Maid services;

10. Maintenance of buildings (except repairs);

11. Office cleaning services;

12. Restroom cleaning services;

13. Service station cleaning and degreasing services;

14. Venetian blind cleaning;

15. Washroom sanitation service; and,

16. Window cleaning (interior or exterior).

(b) Residential cleaning services are not taxable. Charges for cleaning residential facilities used as living accommodations for persons, such as detached or single family dwellings, apartments, duplexes, triplexes, quadraplexes, residential condominiums, residential cooperatives, residential time-share units, beach cottages, nursing homes, and mobile home parks, and the common areas of those residential facilities, are not subject to tax. Residential facilities include multiple unit structures where each unit or accommodation is intended for use as a private temporary or permanent residence, but do not include a facility that is intended for commercial or industrial purposes. Charges to clean residential facilities that provide temporary or permanent residences are not subject to tax, even though the rental, lease, letting, or licensing of such living accommodations may be subject to the tax imposed under Section 212.03, F.S.

(c) The cleaning of tangible personal property is subject to the provisions of Rule 12A-1.006, F.A.C.

(d) The services in this rule are not taxable when provided by employees to their employers. See Rule 12A-1.0161, F.A.C.

(2) The charge to a lessor of a nonresidential building for cleaning services is taxable, even if the tenant or lessee is a tax exempt entity.

(3) Aircraft, boats, motor vehicles, and other transportation vehicles are not considered to be nonresidential buildings. For the taxability of cleaning aircraft, boats, motor vehicles, and other vehicles, see Rule 12A-1.006, F.A.C.

(4) Pressure cleaning (power washing) of the exterior of a building, or of parking lots or parking structures, is not taxable as a cleaning service.

(5) Cleaning service providers are considered the ultimate users or consumers of the tangible personal property sold to them and used in connection with their service and are required to pay the tax imposed upon such sales of tangible personal property to their dealers.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(b), (i), 212.07(2) FS. History–New 5-13-93, Amended 3-20-96, 7-1-99, 4-2-00, 3-4-01, 6-19-01, 1-12-11.

Fla. Admin. Code R. 12A-1.0092 Detective, Burglar Protection, and Other Protection Services

(1)(a) Persons who provide any of the services enumerated in NAICS National Numbers 561611, 561612, 561613 and 561621 of the North American Industry Classification System, published 2007, except as provided in paragraph (b), are dealers in a taxable service and are required to charge sales tax on the total taxable sales price of the service.

(b) The sale of private investigation services by a small private investigative agency to a client is exempt. The exemption does not apply during the first calendar year a small private investigative agency makes sales of private investigative services.

1. “Private investigation services” has the same meaning as “private investigation,” as defined in s. 493.6101(17), F.S.

2. “Small private investigative agency” means a private investigator licensed with the Department of Agriculture and Consumer Services under s. 493.6201, F.S., which:

a. Employs three or fewer full-time or part-time employees, including those performing services pursuant to an employee leasing arrangement as defined in s. 468.520(4), F.S., in total; and

b. During the prevous calendar year, performed private investigation services otherwise taxable in which the charges for the services performed were less than $150,000 for all its businesses related through common ownership.

(2)(a) Detective, burglar protection, and other protection services are those services which are rendered to minimize or prevent loss or damage to life, limb, or property and are of a kind typically performed by security or alarm system companies, or are those investigative services which are rendered to obtain evidence or other information for legal, business, employment, or personal purposes of a kind typically performed by detective or investigative agencies. Illustrative examples of taxable services are:

1. Armored car service;

2. Bodyguard (personal protection) services;

3. Burglar or fire alarm or other security system devices monitoring and maintenance;

a. The installation of alarm or security systems that remain tangible personal property is governed by the provisions of Rule 12A-1.016, F.A.C.

b. The installation of alarm or security systems that become a part of real property is governed by the provisions of Rule 12A-1.051, F.A.C.

c. The monitoring or maintenance of alarm or security systems is a taxable service whether such systems are considered to be tangible personal property or a part of real property. The term maintenance includes any inspection of an alarm or security system to confirm its proper working order. The term maintenance does not include the expansion or upgrade of an existing system, but it does include the replacement of defective components.

4. Detective agency services;

5. Fingerprint service;

6. Guard dogs, detection dogs, and other dogs for protection or investigative services (not including training), with or without a handler;

7. Guard, patrol, and parking or other facility security services;

8. Investigation services (except credit);

9. Lie detector or polygraph services;

10. Missing person tracing services;

11. Passenger screening services; and,

12. Skip tracing services.

(b) The services in paragraph (a) above are taxable for all persons, businesses, residences, or nonresidential properties.

(c) The following services, when performed by detectives, private investigators, or others are not subject to tax when freestanding, or when separately stated on an invoice given to a purchaser which includes taxable services:

1. Credit reporting services.

2. Any report of public information or compiled social, business, or medical information, where the information has not been independently verified or confirmed by the investigator, by such methods as surveillance, interviews, or physical contact.

3. Insurance services as classified under NAICS National Number 524298, such as insurance investigation services, insurance loss prevention services, or insurance reporting services. The name of the insurance carrier must be included in the billing for the investigative services.

4. Process serving services.

5. Courthouse records retrieval.

6. Repossession services.

(d) Security Services Provided to Housing Facilities.

1. Security services, such as vehicle or foot patrols; gate, lobby, or entrance guard service; or personnel which may be dispatched from any other site upon request, are taxable. The following businesses or persons who charge for these services must also charge, collect, and remit tax on those services.

a. Developers, owners, or lessors of residential developments who charge property owners or residents of such developments.

b. Homeowner’s, condominium, cooperative, or community associations who charge their members.

c. Operators of apartments, roominghouses, hotels, motels, and mobile home parks who charge the residents or guests of such facilities.

2. A charge for the transactions enumerated in subparagraph 1. is considered to be made when:

a. A charge for security services is expressly noted on an invoice given to the purchaser; or

b. A charge is made for a package of services which, by agreement, includes security services. See paragraph 12A-1.0161(6)(a), F.A.C.

(e) The services in this rule are not taxable when provided by employees to their employers. See subsection 12A-1.0161(3), F.A.C.

(f) The services which are subject to tax in this rule are taxable when performed within or outside this state and used within this state by the purchaser or when the purchaser’s primary benefit of the services is within this state. The services which are subject to tax in this rule are exempt when performed within this state but used outside this state by the purchaser or when the purchaser’s primary benefit of the services is outside this state. The seller must maintain a log pursuant to paragraph 12A-1.0161(2)(c), F.A.C., documenting any transaction where services are performed in this state but used by a purchaser outside this state.

1. Example: Company E is located in Georgia and Florida. Company E suspects that its Georgia warehouse manager is stealing merchandise from the company and hires a Florida detective agency to investigate. Irrespective of where the investigative services are performed, since the services do not directly relate to real or tangible personal property located in Florida, nor do they directly relate to the Florida activities of Company E, it is presumed that the primary benefit or use of the detective services is enjoyed in Georgia. Therefore, the investigative services are not taxable.

2. Example: Company N is a manufacturer located only in Florida. Company N has suffered losses of tangible personal property that it consigned to a location in Illinois. Company N hires a local Illinois detective agency to investigate. All field work is performed in Illinois and a report is directly submitted to Company N in Florida. Although the services were performed outside of Florida, the detective services directly relate to tangible personal property that is still owned by a Florida company and directly related to the Florida company’s activities. Therefore, the primary benefit or use of the services is in Florida, and the services are subject to tax. If the Illinois detective agency is not registered with the State of Florida for sales and use tax purposes, it cannot charge Florida sales tax to Company N, thereby requiring Company N to report and remit use tax on the cost of the investigative services to the State of Florida.

3. Example: A California art gallery has loaned an important work of art to a Florida art gallery. Security services must be hired to protect this work of art. If the California art gallery is invoiced for the security services, it will be presumed that the primary benefit of the services is to protect the California art gallery’s tangible personal property. Since the services are used by a purchaser who is located outside this state, the security services will not be taxable. If the Florida art gallery is invoiced for the security services, it will be presumed that the primary benefit of the services is to protect the activities of the Florida art gallery, and the charges will be subject to tax.

(3)(a) If a transaction involves both the sale or use of a service which is taxable and the sale or use of a service which is not taxable, the charges for the taxable portion of the transaction must be separately stated from the charges for the nontaxable portion or the entire transaction will be presumed taxable.

1. Example: An armored car company makes daily pick-ups of currency and coins from a discount store for transport to a local bank. For an increased single monthly fee, the armored car company will count and wrap the currency and coins prior to transporting the cash to the bank. Since the currency and coin wrapping service is included in the taxable armored car service, the entire charge made by the armored car company to the discount store is subject to tax.

2. Example: Company A is a defense industry contractor. Company A hires an investigative firm to perform a full background check, including psychological and drug testing, on employment applicants. The investigative firm engages the services of a psychologist and a medical lab to perform the necessary testing procedures. The professional services of the psychologist and the medical lab do not fall within the taxable services enumerated in subsection (1). However, the charge that the investigative firm makes to Company A for the psychological and drug testing must be separately stated or the entire transaction will be subject to tax.

3. Example: A security company has a contract to provide monthly security services for Company C’s physical facility. Company C has requested the security company to provide personal security classes to Company C’s employees. The personal security classes are separate from and not included in the security services for the physical facility. The personal security instruction classes will not be subject to tax, provided the security company separately states or itemizes the instruction charges on the monthly service billing to Company C.

(b) Investigative services provided to private attorneys are not exempt, unless such services are those which are enumerated in paragraph (2)(c) above.

(c) Investigative or security services provided directly to a governmental entity that is exempt from sales and use taxes under Section 212.08(6), F.S., are exempt if payment is made directly by the governmental entity. Such services are not exempt when provided to a contractor for a governmental entity.

(d) There can be no deduction from the taxable sales price of a service for expenses incurred in activities necessary for the performance of the service or for any taxes paid on those expenses.

1. Example: A security company provides security to a client for $125,000 a year. That contract incurs $85,500 in direct wages for several security guards. The security service pays $6,541 in Social Security (FICA) taxes on the wages paid to the security guards. Neither the $85,500 in wages nor the $6,541 in FICA tax can be deducted from the $125,000 charge for this taxable service when computing the sales tax.

2. Example: A private investigator, in performing a taxable service for a client, stays in a hotel room, for which he pays $100 plus $6 tax. He bills the client $500 for his service, plus reimbursement of the $106 expenses incurred in performing the service. The tax on the investigator’s service will be six percent of the $606 total charged, or $36.36.

(e)1. A deduction is not allowed from the taxable sales price of a service for the service provider’s overhead or administrative costs incurred to support the services provided.

2. Example: A security company provides security to a client under a contract that provides for thirty percent of the total charge to be for services incurred in support of providing security, but not in the actual provision of security, such as administrative, personnel, training, and other support activities. In computing the tax on the service there can be no deduction of such expenses from the total charge for the service.

(f) In the event of an audit by the Department of Revenue, pursuant to Section 212.13, F.S., a service provider will not be required to divulge any information that it is prohibited from divulging under Section 493.6119, F.S.

1. Example: A detective agency performs a taxable service for a client and it discovers certain information. If the agency is audited, the agency is required to provide access to its records indicating that it provided the service and the amount charged for the service, but the agency cannot be required to provide access to records divulging any information it is prohibited from divulging under Section 493.6119, F.S.

2. Example: During an audit of a detective agency, a Department of Revenue auditor asks for records on transactions for the audit period. A number of pages of the agency’s records contain both information pertinent to the taxability of services and information that cannot be divulged without violating Section 493.6119, F.S. The agency is required to provide the auditor with photocopies of those pages on which the confidential information has been blocked out.

(4) A shopping mall providing security services for its tenants is required to charge and collect tax on the security service.

(5)(a)1. Any law enforcement officer, as defined in Section 943.10, F.S., who is performing approved duties as determined by his law enforcement agency, in his capacity as a law enforcement officer subject to the direct and immediate command of his law enforcement officer subject to the direct and immediate command of his law enforcement agency, and in the uniform of his law enforcement agency, is performing law enforcement and public safety services and is not performing detective, burglar protection, or other protective services, if the law enforcement officer is performing his approved duties in a geographical area in which the law enforcement officer has arrest jurisdiction. Such law enforcement and public safety services are not subject to tax irrespective of whether the duty is characterized as “extra duty,” “off-duty,” or “secondary employment,” and irrespective of whether the officer is paid directly or through his agency by an outside source. The term “law enforcement officer” includes full-time or part-time law enforcement officers, and any auxiliary law enforcement officer, when such auxiliary law enforcement officer is working under the direct supervision of a full-time or part-time law enforcement officer.

2. Example: A deputy sheriff is a full-time employee of county “A”. During his off-duty hours, he is employed on a contract basis as a security guard by a department store in county “B”. The deputy sheriff is not an employee of the department store. Since the sheriff’s department in county “A” does not have law enforcement jurisdiction in county “B”, the charge the deputy makes to the department store for providing security guard service is subject to tax.

(b)1. The consideration paid solely for directing the control of vehicular traffic not associated with protection services provided to particular persons or properties is not taxable. However, the consideration paid for protection services provided to particular persons or properties, which may include some traffic control, is fully taxable.

2. Example: A major celebrity will be appearing at the grand opening of a department store. The department store engages a security company to provide security officers for the protection of the celebrity. Since the celebrity will be appearing outside the main entrance to the department store, some of the security officers will be used to direct the extra anticipated vehicle traffic in the parking lot in front of the department store’s main entrance. The total charge made by the security company to the department store for the protection services is taxable.

3. Example: A shopping mall engages a security company to provide security officers solely to assist in directing an anticipated heavy amount of vehicle traffic during the holiday shopping season, while the mall’s own security force provides protection to the stores against shoplifters. The charge that the security company makes to the shopping mall is not subject to tax.

(6) Detective, burglar protection, and other protection service providers are considered the ultimate users or consumers of the tangible personal property sold to them and used in connection with their service and are required to pay the tax imposed upon such sales of tangible personal property to their dealers.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(b), (i), 212.06(1)(a), (2)(k), 212.08(7)(ttt) FS. History–New 5-13-93, Amended 10-17-94, 3-20-96, 7-29-98, 1-12-11, 1-1-24, Technical Change 6-8-26.

Fla. Admin. Code R. 12A-1.010 Receipts from Sales by Barber Shops and Beauty Shops

(1) Barber and beauty shops are not required to collect the tax on the receipts from their services. They are the consumers of the tangible personal property they use in rendering such services.

(2) All barber and beauty shops which sell items of tangible personal property are required to register as sales and use tax dealers and collect sales tax on any cosmetics, hair products, nail kits, polishes, ornamental nails, and other items of tangible personal property they sell.

(3)(a) As a registered dealer, the owner or operator of the barber or beauty shop may provide a copy of the dealer’s Annual Resale Certificate to purchase products and other items for resale in lieu of paying tax to the selling dealer. The operator or owner is required to pay use tax on any products or other items that are used or consumed in providing services.

(b) An owner or operator of a barber or beauty shop who has paid tax on the purchase of materials and supplies may take a credit, or obtain a refund, as provided in Rule 12A-1.014, F.A.C., for the amount of tax paid on materials and supplies that are resold. The owner or operator must collect tax on the sale of the materials and supplies.

History

• Rulemaking Authority 212.07(1)(b), 212.18(2), 213.06(1) FS. Law Implemented 212.02(10)(g), (14), (15), (16), (19), (20), 212.05(1), 212.07(1), 212.08(7)(v), 212.17(1), 212.18(3) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.10, Amended 12-16-91, 3-20-96, 6-19-01, 12-29-25.

Fla. Admin. Code R. 12A-1.011 Sales of Food Products for Human Consumption by Grocery Stores, Convenience Stores, and Supermarkets; Sales of Bakery Products by Bakeries, Pastry Shops, or Like Establishments; Drinking Water; Ice

(1) SCOPE.

(a) The purpose of this rule is to clarify the application of tax on the sale of food products generally sold in or by grocery stores, convenience stores, supermarkets, bakeries, fish markets, produce markets, and other like places of business. This rule is also intended to clarify the application of tax on the sale of bakery products by bakeries, pastry shops, or like establishments and on the sale of drinking water or ice.

(b) Rule 12A-1.0115, F.A.C., is intended to clarify the application of tax on food products generally served, prepared, or sold in or by restaurants, lunch counters, cafeterias, caterers, hotels, taverns, or other like places of business.

(2) Tax-exempt food products.

(a) Food products for human consumption, whether processed, cooked, raw, canned, or in any other form that is generally regarded as food, are exempt. The following is a nonexhaustive list of exempt food products:

1. Baby foods and baby formulas;

2. Baked goods and baking mixes, including ready-to-eat and ready-to-bake products;

3. Baking and cooking items advertised and normally sold for use in cooking or baking, such as chocolate morsels, flavored frostings, glazed or candied fruits, marshmallows, powdered sugar, or food items intended for decorating baked goods;

4. Cereals and cereal products, including ready-to-eat, instant, and regular hot cereals;

5. Cheeses, including cured and whey cheese, cream, natural, grating, processed, spread, dip, and other miscellaneous cheeses;

6. Cocoa;

7. Coffee and coffee substitutes;

8. Condiments and relishes, including seasoning sauces and spreads, such as mayonnaise, ketchup, or mustard;

9. Cookies, including chocolate-coated or cream-filled;

10. Dairy products;

11. Dairy substitutes;

12. Dietary supplements (including herbal supplements) and meal replacements, including liquid food supplements and nutrition bars, including those that are candy-coated or chocolate-coated;

13. Eggs and egg products, including liquid, frozen, or dried eggs;

14. Fish, shellfish, and other seafood products, whether fresh or frozen;

15. Food coloring;

16. Frozen dinners and other frozen food products;

17. Fruit (including fruit sliced, chunked, or otherwise cut by the retailer), fruit snacks, fruit roll-ups, and dried fruit, including those sweetened with sugar or other sweeteners;

18. Gelatins, puddings, and fillings, including flavored gelatin desserts, puddings, custards, parfaits, pie fillings, and gelatin base salads;

19. Grain products and pastas, including macaroni and noodle products, and rice and rice dishes;

20. Honey;

21. Ice cream, frozen yogurt, sherbet, and similar frozen dairy or nondairy products sold in units larger than one pint;

22. Jams and jellies;

23. Marshmallows;

24. Meat and meat products;

25. Meat substitutes;

26. Milk, including natural fluid milk, homogenized milk, pasteurized milk, whole milk, chocolate milk, buttermilk, half and half, whipping cream, condensed milk, evaporated milk, powdered milk, or similar milk products, and products intended to be mixed with milk;

27. Natural fruit or vegetable juices or their concentrates or reconstituted natural concentrated fruit juices in any form, whether frozen or unfrozen, aerated, dehydrated, powdered, granulated, sweetened or unsweetened, seasoned with salt or spice, or unseasoned. Only those juices that are permitted by federal law and regulation to be labeled “100 percent juice” or “100 percent juice with added-” “ingredient(s),” “preservative,” or “sweetener” will be considered natural fruit or vegetable juices. [Title 21 (Food and Drug), Chapter 9 (Federal Food, Drug, and Cosmetic Act), Subchapter IV (Food) 21 U.S.C. ss. 341; 343 (January 24, 2002), hereby incorporated by reference]; [21 C.F.R. Ch. 1, ss. 101.30; 102.5; 102.33, 146.114-146.187; 156.3; 156.145 (4-1-06), hereby incorporated by reference];

28. Peanut butter;

29. Poultry and poultry products;

30. Salad dressings and dressing mixes;

31. Salt, salt tablets, pepper, spices, seeds, herbs, seasonings, blends, extracts, and flavorings, whether natural or artificial;

32. Sandwich spreads;

33. Sauces and gravies;

34. Snack foods, including chips, corn chips, potato chips, cheese puffs and curls, cereal bars, cracker jacks, granola bars, nuts and edible seeds, pork rinds, and pretzels, whether such products are chocolate-coated, honey-coated, or candy-coated;

35. Soups and soup mixes;

36. Sugar, sugar products, and sugar substitutes;

37. Tea (including herbal tea), unless sold in a liquid form;

38. Vegetables and vegetable products;

39. Vegetable oils, lard, olive oil, shortenings, and oleomargarine.

(b) Food products prepared off the seller’s premises are exempt when:

1. Sold in the original sealed container;

2. Sliced into smaller portions; or

3. The product is sold frozen and then heated on the seller’s premises by the customer.

(c) Taxpayers who have a question regarding the taxable status or exempt status of a food product may submit a written description of the food product and a copy of the food product label to the Department to obtain a determination of the taxability of the product. This request should be addressed to the Florida Department of Revenue, Technical Assistance, P.O. Box 7443, Tallahassee, Florida 32314-7443.

(3) Bakery products sold by bakeries, pastry shops, or like establishments.

(a) Bakery products sold by bakeries, pastry shops, or like establishments as hot prepared food products are taxable.

1. Bakery products that are kept warm by a heat source used to maintain them in a heated state, or to reheat them, are hot prepared food products.

2. Bakery products that are sold while still warm from the initial baking are not hot prepared food products.

3. Example: A bakery establishment toasts a bagel for a customer. The sale of the bagel is subject to tax, whether the bakery establishment has eating facilities or does not have eating facilities.

(b)1. Bakery products, excluding bakery products sold for consumption off the premises, sold by bakeries, pastry shops, or like establishments that have eating facilities are subject to tax.

2. For purposes of this subsection, “eating facility” is a place that facilitates the consumption of the bakery products on the seller’s premises on items such as benches, chairs, stools, tables, and counters. For example, a pastry shop that has bar stools and a counter where the bakery products and drinks are served to patrons will be considered a pastry shop with eating facilities. A bakery located within the food court of a mall where tables and chairs are located in the common areas of the food court for patrons to consume food products will be considered a bakery with eating facilities.

(c)1. Bakery products, excluding items sold as hot prepared food products, sold for consumption off the premises are exempt.

2. For the purpose of this paragraph, there shall be a rebuttable presumption that the sale of bakery products by bakeries, pastry shops, or like establishments that have eating facilities are taxable when:

a. Such bakery products are sold in quantities of five (5) or fewer items; or

b. The bakery products sold, regardless of the quantity, are not packaged in a manner consistent with an intention by the customer to consume the products off the seller’s premises.

3. Bakery products that are sold, regardless of the quantity, in packaging that is glued, stapled, wrapped, or sealed are examples of packaging consistent with an intention by the customer to consume products off the seller’s premises.

4. Bakeries, pastry shops, or like establishments that have eating facilities and make tax-exempt sales of bakery products that are for consumption off the premises are required to separately account for the tax-exempt sales of bakery products for consumption off the premises.

a. Examples of methods to separately account for tax-exempt sales of bakery products for consumption off the premises are: using sales invoices which contain documentation that the sale of the bakery product is for consumption off the premises; using a separate key on a cash register to record tax-exempt sales of bakery products; or using a separate cash register to record tax-exempt sales of bakery products.

b. Example. A bakery operates an establishment with eating facilities. The bakery sells donuts, toasted bagels, and other pastries, as well as coffee and other drinks. The bakery sells bakery products to patrons who take the products home for consumption in sealed containers. Products sold for consumption on the premises are served to the customers on trays. The bakery uses separate keys on its cash registers to account for the sales of tax-exempt bakery products to patrons who purchase the products for consumption off the premises in sealed containers separately from the accounting for taxable sales of toasted bagels, coffee, other drinks, and bakery products for consumption on the premises. The bakery products sold for consumption off the premises are exempt, because the bakery’s packaging and accounting methods overcome the rebuttable presumption that the products are sold for consumption on the premises.

(d) Bakery products, excluding items sold as a hot prepared food products, that are sold by bakeries, pastry shops, or like establishments that do not have eating facilities are exempt.

(4) Taxable food products. The exemption for food products for human consumption does not apply to any of the items specified in this subsection.

(a) Candy, chewing gum, bubble gum, breath mints, and any similar product regarded as candy or confection, based on its normal use as indicated on the label or advertising, is subject to tax. The term “candy and similar products” does not include snack foods not regarded as candy or confection, as indicated on the label or advertising of the product.

(b) Food prepared, whether on or off the seller’s premises, and sold for immediate consumption is subject to tax. This does not apply to food prepared off the seller’s premises and sold in the original sealed container, or to the slicing of products into smaller portions.

1. Food prepared for immediate consumption is food prepared to a point generally accepted as ready to be eaten without further preparation and that is sold in a manner that suggests readiness for immediate consumption. In determining whether an item of food is sold for immediate consumption, the customary consumption practices prevailing at the selling facility shall be considered.

2. Examples:

a. Potato salad is prepared and delivered to a dealer in bulk. The dealer repackages the potato salad into smaller containers. Because the potato salad is not sold in the original sealed container, the sale of the repackaged smaller containers of potato salad is subject to tax.

b. A grocery store buys cold cuts in five-pound packages. The grocery store slices cold cuts for the customer according to the thickness and the amount the customer desires. The food is then packaged for sale to the customer. Because the cold cuts are sliced into smaller portions, the sale of the cold cuts is exempt from tax.

c. A supermarket offers freshly popped popcorn for shoppers for sale. The sale of the popcorn is subject to tax.

d. A supermarket prepares seafood products, such as smoked fish or steamed shrimp, for sale. The sale of the smoked fish or steamed shrimp is subject to tax.

e. A supermarket prepares fruit and vegetable products into various fresh salads for sale. When packaged without eating utensils and sold as a grocery item, the sale of the prepared fresh fruit or vegetable salad is exempt. When the prepared fresh salads are packaged with eating utensils, such as with a fork and a napkin, the salad is a food product prepared and sold for immediate consumption and is subject to tax.

(c)1. Hot prepared food products, whether sold separately or in combination with other food items, when the food is heated by the seller rather than by the customer, is subject to tax.

2. Hot prepared food products are those products, items, or components that have been prepared for sale in a heated condition and sold at any temperature that is higher than the air temperature of the room or place where the products are sold. Preparation of a “hot prepared food product” includes cooking, microwaving, warming, toasting, or any other method of heating the food. Food products, including bakery products, are considered “hot prepared food products” when a heat source is used to maintain the food product in a heated state or is used to reheat the food product. Bakery products that are sold while still warm from the initial baking are not “hot prepared food products.” Their temperature is a result of the timing of the customer’s purchase rather than an indication of preparation to be sold in a heated condition.

3. When a single price is charged for a combination of hot prepared food products and cold food items or other components, the single price charged for the combination is subject to tax.

4. Examples:

a. A supermarket sells barbecued chicken that is kept hot by a rotisserie to be taken home and eaten. The sale of the chicken is subject to tax.

b. A grocery store bakes bread in an oven. The bread is packaged for sale while it is still warm. A customer purchases a package of the bread while it is still warm. The sale of the warm bread is not subject to tax.

c. A single price is charged for a combination of a hot meal, hot pizza, hot specialty dish, or hot sandwich, with cold components, such as a salad or fruit or other side items, by a convenience store. The single price charged for the combination is subject to tax.

(d) Sandwiches sold ready for immediate consumption, whether refrigerated or heated by the customer or by the retailer, are subject to tax. An example of a sandwich not sold ready for immediate consumption would be a frozen sandwich or a sandwich with a frozen or partially frozen filling.

(e) Meals sold for consumption on or off the seller's premises are subject to tax.

(f) Ice cream, frozen yogurt, and similar frozen dairy or nondairy products in cones, small cups, or pints, and popsicles, frozen fruit bars, or other novelty items, whether sold separately or in multiple units, are subject to tax.

(5) Taxable soft drinks. The exemption for food products for human consumption does not apply to soft drinks. The following sales of soft drinks are subject to tax:

(a) Nonalcoholic beverages, whether carbonated or noncarbonated.

(b) Any noncarbonated beverage made from milk derivatives, such as ice cream sodas, milkshakes, or malts.

(c) Any beverages and preparations commonly referred to as a “soft drink,” such as sodas, soda water, ginger ale, colas, root beer, tonic, fizzes, or cocktail mixes.

(d) Any beverage containing fruit or vegetable juice labeled with the word(s) “ade,” “beverage,” “cocktail,” “drink,” or “fruit or vegetable flavor, flavored, or flavorings.” Federal law and regulations require that any beverage containing more than 0 percent juice, but less than 100 percent fruit or vegetable juice, which represents or suggests by its physical characteristics, name, labeling, ingredient statement, or advertising that it contains fruit or vegetable juice, be labeled in a manner that is appropriate to advise the consumer that the product is less than 100 percent juice. [Title 21 (Food and Drug), Chapter 9 (Federal Food, Drug, and Cosmetic Act), Subchapter IV (Food) 21 U.S.C. ss. 341; 343 (January 24, 2002)]; [21 C.F.R. Ch. 1, ss. 101.30; 102.5; 102.33, 146.114-146.187; 156.3; 156.145 (4-1-06)]. Examples of taxable beverages include: apple blend, cranberry juice cocktail, grape juice beverage, lemonade, limeade, orangeade, raspberry and cranberry flavored drink, fruit drink, fruit punch, diluted fruit juices, and diluted vegetable juices.

(e) Tea sold in a liquid form.

(6) Vending machines and mobile vendors. Food products sold through a vending machine, push cart, motor vehicle, or any other form of vehicle are subject to tax. Drinking water in bottles, cans, or other containers sold through a vending machine, push cart, motor vehicle, or any other form of vehicle is exempt. See rule 12A-1.044, F.A.C., for sales through vending machines.

(7) Water and ice.

(a) Drinking water, including water enhanced by the addition of minerals, sold in bottles, cans, or other containers is exempt, except when carbonation or flavorings have been added to the water in the manufacturing process. When carbonation or flavorings are added to drinking water at a water treatment facility, the sale of the drinking water in bottles, cans, or other containers remains exempt.

(b) The sale of ice, including dry ice, is subject to tax, except when the ice is purchased for use as a packaging material to package food products for sale. See Rule 12A-1.040, F.A.C., for provisions for packaging materials.

(c) Fluoride used in the treatment of drinking water is exempt.

(d) Germicides (such as chlorine), sodium silicate, activated charcoal, and similar purification agents used in the treatment of drinking water or sewage are exempt.

(e) The charge for water conditioning (water softening) is not subject to tax. The sale of salt for use in water softeners to regenerate the minerals required for softening water is not the sale of a purification agent used in the treatment of drinking water and is subject to tax. Dealers must pay tax on items used to provide water conditioning to their customers, such as minerals, tanks, equipment, and other materials.

(8) Complimentary and donated food products.

(a)1. Dealers that primarily sell food products at retail are not subject to sales or use tax on any food or drink provided without charge as a sample or for the convenience of customers, even when cooked or prepared on the dealer’s premises. For example, hot coffee provided in a grocery store for shoppers is not subject to sales or use tax.

2. Dealers that primarily sell food products at retail are not subject to sales or use tax on any item given to a customer as part of a price guarantee plan related to point-of-sale errors.

3. The exemption, as provided in this paragraph, does not apply to businesses whose primary activity is to serve prepared meals or alcoholic beverages for immediate consumption.

(b) Dealers that sell food products at retail are not subject to sales or use tax on any food product donated to a food bank or to an organization determined to be currently exempt from federal income tax pursuant to s. 501(c) of the Internal Revenue Code of 1986, as amended.

(9) Food stamps and vouchers.

(a) Food products are exempt when purchased with food stamps issued by the United States Department of Agriculture, or with Special Supplemental Food Program for Women, Infants, and Children (WIC) vouchers issued under authority of federal law.

(b) When a purchase of food products is made partly with food stamps or vouchers and partly with cash or manufacturer’s coupons, the food stamps or vouchers will first be used to defray the cost of the taxable food and drinks, less the value of any manufacturer’s coupons, that can be purchased with the food stamps or vouchers. When the food stamps or vouchers are insufficient to purchase the taxable items, tax is due on the remaining sales price of taxable food and drinks.

(10) Multiple items packages.

(a) When a package contains both exempt food products and taxable tangible personal property (e.g., a basket of food and candy, a basket of nuts, or decorated cans or glasses filled with food items) and the tax-exempt food products are separately itemized and priced from the taxable tangible personal property, no tax is due on the tax-exempt food products.

(b) When the total charge for a package containing both exempt food products and taxable tangible personal property is a single charge, the application of tax depends upon the essential character of the complete package, as follows:

1. When the taxable tangible personal property represents more than twenty-five (25) percent of the value of the package, the total charge is subject to tax.

2. When the taxable tangible personal property represents twenty-five (25) percent or less of the value of the package, the total sale is exempt. The seller is required to pay tax on any taxable items included in the package that were purchased tax-exempt for the purposes of resale. The cost price of any promotional items included in the package is subject to tax.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(a)1.a., 212.06(1)(a), 212.07(2), 212.08(1), (4)(a)1., (7)(oo), (pp) FS. History–New 10-7-68, Amended 6-16-72, 9-28-78, 10-29-81, Formerly 12A-1.11, Amended 12-8-87, 1-2-89, 8-10-92, 6-19-01, 4-17-03, 11-3-09, 1-12-11, 6-6-11.

Fla. Admin. Code R. 12A-1.0115 Sales of Food Products Served, Prepared, or Sold in or by Restaurants, Lunch Counters, Cafeterias, Hotels, Taverns, or Other Like Places of Business and by Transportation Companies

(1) SCOPE.

(a) The purpose of this rule is to clarify the application of tax on food products generally served, prepared, or sold in or by restaurants, lunch counters, cafeterias, caterers, hotels, taverns, or other like places of business where food products are sold for immediate consumption on the seller’s premises or packaged or wrapped and taken away from the seller’s premises.

(b) Rule 12A-1.011, F.A.C., is intended to clarify the application of tax to the sale of food products generally sold by grocery stores, convenience stores, supermarkets, bakeries, fish markets, produce markets, and other like places of business, the sale of bakery products by bakeries, pastry shops, and like establishments, and the sale of drinking water or ice.

(2) Food products served, prepared, or sold in or by restaurants or similar places of business.

(a) Food products served, prepared, or sold in or by restaurants, lunch counters, cafeterias, hotels, taverns, or other similar places of business are subject to tax.

(b) Food products that are furnished, prepared, or served for consumption at tables, chairs, or counters or from trays, glasses, dishes, or other tableware are subject to tax. The food products are subject to tax, even though the tables, chairs, or counters and the trays, glasses, dishes, and other tableware may be provided by a person with whom the dealer contracts to furnish, prepare, or serve the food products to others.

(c) Food products that are ordinarily sold for immediate consumption on the seller’s premises or near a location at which parking facilities are provided primarily for the use of patrons in consuming the products purchased at the location are subject to tax. The food products remain subject to tax even when the product is sold on a “take out” or “to go” basis and are packaged or wrapped and taken away from the dealer’s facility. The customary practices prevailing at the dealer’s facility will be used to determine whether a food product is sold for immediate consumption at the selling facility. The premises of a caterer, with respect to catered meals or beverages, is the place where such meals or beverages are served.

(d) Restaurants, lunch counters, cafeterias, hotels, taverns, or other like places of business that also maintain a separate department that includes groceries are not required to collect tax on tax-exempt sales of food products, as provided in Rule 12A-1.011, F.A.C., when separate records are maintained for the separate department; however, food products that are sold as prepared food through a separate department are subject to tax.

(3) Vending machines and mobile vendors. Food products sold through a vending machine, push cart, motor vehicle, or any other form of vehicle are subject to tax. Drinking water in bottles, cans, or other containers sold through a vending machine, push cart, motor vehicle, or any other form of vehicle is exempt. See Rule 12A-1.044, F.A.C., for sales through vending machines.

(4) Coupons, discounts, and donated food products.

(a) When a dealer sells two meals for the price of one meal, the dealer is required to collect tax on the total amount charged. No tax is due on the second meal.

(b) The sale of a meal ticket or coupon book to be redeemed for the purchase of taxable food products is not subject to tax at the time of sale. When the ticket or coupon is redeemed by a customer, the seller is required to collect the tax on the total consideration received, including the value of the ticket or coupon redeemed and any additional compensation received by the seller.

(c) When the seller provides a customer taxable food products without charge after purchasing a designated number of taxable food products, tax is due on the sales price of the taxable food products sold. No tax is due on the item provided to the customer without charge. For example, a sandwich shop offers customers a coupon that will entitle the customer to receive a free sandwich after purchasing five sandwiches. When the customer’s coupon indicates that the customer has purchased five sandwiches, the customer redeems the coupon for the free sandwich. The sandwich shop is required to collect tax on the sale of the first five sandwiches. No tax is due on the sandwich provided, without charge, to the customer, who has purchased the required five sandwiches.

(d) Dealers that sell food products at retail are not subject to tax on any food or beverage donated to a food bank or to an organization determined to be currently exempt from federal income tax pursuant to s. 501(c) of the Internal Revenue Code of 1986, as amended.

(5) Food products sold or furnished by restaurants or similar places of business to employees.

(a) Food products furnished by an employer to its employees are not subject to tax, provided no cash changes hands as payment for the food products furnished and the assigned value of the food products is not required to be reported as income to the employee for federal income tax purposes.

(b) Food products sold by a restaurant to its employees are subject to tax.

(c) Food products consumed by the owner and his family are not subject to sales tax.

(6) Transportation companies.

(a) Food products sold ready for immediate consumption by airlines, railroads (except Amtrak), vessels, or other transportation companies to their passengers, while within Florida, are subject to tax. A transportation company may extend a copy of its Annual Resale Certificate to the selling dealer instead of paying tax on the purchase of food products ready for immediate consumption for purposes of resale to its passengers.

(b)1. Transportation companies, except Amtrak, are required to pay tax on their purchases of meals and food products ready for immediate consumption when:

a. The food products are delivered to the transportation company in this state, whether consumed in this state or outside this state;

b. The food products are furnished to the passengers; and,

c. There is no separately itemized charge to the passenger for the food product.

2. For the partial exemption available to airlines, see Section 212.0598, F.S. For the partial exemption available to vessels engaged in interstate or foreign commerce under Section 212.08(8), F.S., see Rule 12A-1.0641, F.A.C.

(c) The purchase or sale of food products ready for immediate consumption by Amtrak, an instrumentality of the United States government, is not subject to tax.

(7) Gratuities.

(a) Any charge made by a dealer to a customer for gratuities, tips, or similar charges is a part of the taxable sales price of the food or drinks except when:

1. The charge is separately stated as a gratuity, tip, or other charge on the customer’s receipt or other tangible evidence of sale; and,

2. The dealer receives no monetary benefit from the gratuity. Money withheld by the dealer for purposes of payment of the employee’s share of social security or federal income tax or any fee imposed by a credit card company on the amount of the gratuity, or money withheld pursuant to judicial or administrative orders, is not a monetary benefit for purposes of this rule.

(b) The charge for room service made by hotels for serving meals in guests’ rooms is included in the total price of the meal and is subject to tax.

(c) Service charges, minimum charges, corkage fees, setup fees, or similar charges imposed by a restaurant, tavern, nightclub, or other like place of business as part of the charge for furnishing, serving, or preparing food products are subject to tax.

(d) The charge for the preparation of food products furnished by the customer to the preparer is subject to tax, whether prepared for immediate consumption on the preparer’s premises or for consumption off the premises.

(8) Food or drinks furnished with living or sleeping accommodations.

(a) Food or drinks served or sold at community colleges, junior colleges, and other institutions of higher learning, or at fraternities and sororities, are subject to tax. If a lump sum amount is charged by the institution for living or sleeping accommodations and meals, a portion of the lump sum amount must be allocated to the sale of food or drinks to reasonably reflect the value of the food or drinks. Tax is due on the portion that is reasonably allocated to the sale of the food or drinks.

(b)1. Public lodging establishments that advertise that they provide complimentary food and drinks are not required to pay sales or use tax on food or drinks when:

a. The food or drinks are furnished as part of a packaged room rate;

b. No separate charge or specific amount is stated to the guest for such food or drinks;

c. The public lodging establishment is licensed with the Division of Hotels and Restaurants of the Department of Business and Professional Regulation; and,

d. The public lodging establishment rents or leases transient accommodations that are subject to sales and use tax.

2. The public lodging establishment may extend a copy of its Annual Resale Certificate to the selling dealer to purchase food and drinks used for this purpose tax-exempt, as provided in Rule 12A-1.039, F.A.C.

(9) Day nurseries and custodial camps. Day care facilities, nurseries, kindergartens, day camps, and custodial camps that primarily provide professional and personal supervisory and instructional services are not required to collect tax on their charges to the students or campers for providing food or drinks as part of their services. However, when the charges for furnishing food or drinks are separately itemized and separately priced to the student or camper, tax is required to be collected on the sales price of food or drinks.

(10) Meals served at labor camps.

(a) Labor camps and commercially operated public housing quarters are operated to house and feed workers on a contract basis. The provisions of this subsection are intended to provide the taxability of the housing and meals provided to workers under such contracts.

(b) When the contract provides for meals, and no housing is furnished under the contract, the charge for the meals is subject to tax.

(c)1. When the contract provides for housing and meals for the workers, the charge for meals is subject to tax.

2. When the contract provides for housing for the workers, but the workers buy groceries and prepare their own meals, no tax is due on the prepared meals.

(d) Workers residing in public housing quarters or labor camps may enter into agreements under which one worker is appointed to purchase groceries and prepare all meals. The worker may be selected and directed by the group of workers or may be designated and directed by the employer. The employer may deduct from each employee’s wages the pro rata share of the groceries purchased for the group or a contracted charge for the meals prepared and served by the employer’s designated cook.

1. When the employees select the designated worker to purchase groceries and prepare meals, no tax is due on the amount deducted by the employer for each employee’s pro rata share of the cost of the groceries purchased by the designated worker.

2. When the employer selects the worker to be the designated cook who prepares all meals, tax is due on the amount deducted from the employee’s wages by the employer for the meals.

(11) Hospitals and homes for the aged.

(a) Meals furnished to residents of homes for the aged, as defined in section 212.08(7)(i), F.S., are exempt.

(b) Meals furnished to patients and inmates of any hospital or other institution designed and operated primarily for the care of persons who are ill, aged, infirm, mentally or physically incapacitated, or for any reason dependent upon special care or attention are exempt.

(c) Meals sold and delivered as a charitable function by a nonprofit volunteer organization to handicapped, elderly, or indigent persons at their residences are exempt.

(12) Nonprofit organizations; social or civic clubs.

(a) Food or drinks sold at fundraisers and similar types of events are subject to tax, unless such sales qualify as occasional sales, as provided in Rule 12A-1.037, F.A.C.

(b) Organizations that hold a valid Florida Consumer’s Certificate of Exemption may extend a copy of their certificate to purchase meals and beverages used in the normal nonprofit activities of the organization tax-exempt.

(c) Food or drinks sold by a religious institution that holds a valid Florida Consumer’s Certificate of Exemption and has an established physical place for worship at which nonprofit religious services and activities are regularly conducted and carried on are exempt.

(d) Food or drinks served or sold to or by social, civic, and similar organizations are subject to tax.

(e) Unless specifically exempt, when charges for meals and beverages to members of an organization are separately itemized and priced from the dues for membership, the charges for meals and beverages are subject to tax. If the organization indicates on its dues invoices, membership billing statements, dues notices, or membership applications that a specified portion of the dues payment is attributed to the furnishing of meals and beverages, the specified portion attributed to the furnishing of the meals and beverages is subject to tax.

(f)1. Sales of food or drink by qualified veterans’ organizations in connection with customary veterans’ organization activities to members of qualified veterans’ organizations are exempt. This exemption includes all food, as well as alcoholic and nonalcoholic beverages. Qualifed veterans’ organizations are nationally chartered or recognized veterans’ organizations which hold current exemptions from federal income tax under s. 501(c)(4) or (19) of the Internal Revenue Code.

2. Qualified veterans’ organizations must hold a Consumer’s Certificate of Exemption (Form DR-14) to qualify for this exemption. For more information about Consumer’s Certificates of Exemption, including the application process, please see Rule 12A-1.038, F.A.C.

3. A qualified veterans’ organization that is registered as a sales and use tax dealer may cancel its Sales and Use Tax Certificate of Registration (Form DR-11) if the only reason for holding the certificate is for the sole purpose of collecting and remitting sales tax on sales of food or drink to members of veterans’ organizations. If the organization collects sales tax on any other type or types of transactions, then they must be registered as a sales and use tax dealer.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(a)1.a., 212.06(1)(a), 212.07(1)(b), (2), 212.08(1), (4)(a)1., (6), (7), (7)(i), (k), (m), (n), (oo), (pp), 212.18(3)(c) FS. History–New 11-3-09, Amended 1-10-17.

Fla. Admin. Code R. 12A-1.012 Repossessed Merchandise and Bad Debts

(1) Repossessions:

(a) The repossession of tangible personal property by the seller or the lienholder is not subject to tax.

(b) The redemption of repossessed tangible personal property by the debtor prior to the sale of the repossessed property is not subject to tax.

(c) The subsequent sale of repossessed tangible personal property is subject to tax.

(d) A dealer who collected and remitted sales tax to the Department on the selling price of tangible personal property sold under a retail installment, title loan, retain title, conditional sale, or similar contract in which the dealer retains a security interest in the property may, upon repossession of the property, take credit on a subsequent tax return for, or obtain a refund of, that portion of the tax that is applicable to the unpaid balance of the contract. The credit or refund is based on the ratio that the total tax bears to the unpaid balance of the sales price, excluding finance or other nontaxable charges. A credit or refund must be claimed within 12 months following the month in which the property was repossessed.

(e) When a dealer claims a tax credit or a refund of tax paid on tangible personal property sold and repossessed, the dealer must complete a Schedule of Tax Credits Claimed on Repossessed Tangible Personal Property (Form DR-95B, incorporated by reference in Rule 12A-1.097, F.A.C.).

(f) The dealer may claim a tax credit or refund on tangible personal property, including any aircraft, boat, mobile home, motor vehicle, or any other titled property sold by the dealer for which the dealer holds a security interest in the property under the terms of a retail installment, title loan, retain title, conditional sale, or similar contract when:

1. The dealer sold the property and remitted Florida sales tax to the Department;

2. The dealer financed the property, or the property was financed by a financing institution with recourse;

3. The property was subsequently repossessed upon default of the terms of the contract by the purchaser of the property; and,

4. The dealer acquired ownership of the repossessed property (e.g., certificate of title or other evidence establishing possession and ownership of the repossessed property).

(g) When claiming a tax credit or refund, the dealer must complete a Schedule of Tax Credits Claimed on Repossessed Tangible Personal Property (Form DR-95B, incorporated by reference in Rule 12A-1.097, F.A.C.). When claiming a tax credit, the completed Form DR-95B must be retained with the dealer’s applicable sales and use tax return. When claiming a tax refund, a Sales and Use Tax Application for Refund (Form DR-26S, incorporated by reference in Rule 12-26.008, F.A.C.), the completed Form DR-95B, and the information and documentation required to be included with Form DR-26S must be filed with the Department.

(h) Dealers must retain documentation required to establish the right to a credit or refund, including the retail installment, title loan, retain title, conditional sale, or similar contract, and documents establishing ownership or title to the property after repossession. The records required in this subsection must be maintained by the dealer until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S., and must be made available to the Department upon request.

(2) Bad Debts.

(a)1. A dealer, who reported and paid the tax imposed by Chapter 212, F.S., on an account later determined to be a bad debt, may take a credit or obtain a refund for any tax paid by him on the unpaid balance due on worthless accounts within 12 months following the month in which the bad debt has been charged off for federal income tax purposes or, if the dealer is not required to file federal income tax returns, within 12 months following the month in which the bad debt has been charged off in accordance with generally accepted accounting principles. Any refund applied for, or credit taken from the amount of tax to be reported on the dealer’s sales and use tax return, shall be within 12 months following the period in which the account is found to be worthless. That period is defined as any time within the dealer’s fiscal year in which the account is charged off for federal income tax purposes or, if the dealer is not required to file federal income tax returns, any time within the dealer’s fiscal year in which the account is charged off in accordance with generally accepted accounting principles.

2.a. If the amount of an account found to be worthless and charged off is comprised in part of nontaxable receipts, such as interest, insurance, and other charges exempt from sales or use tax, and in part of taxable receipts upon which tax has been paid, a bad debt deduction may be claimed only with respect to the unpaid amount upon which tax has been paid. In determining that amount, all payments and credits to the account shall be applied in proportion against the various elements comprising the amount the purchaser contracted to pay.

b. No deduction is allowable for expenses incurred by the dealer in attempting to enforce collection of any account receivable, or for that portion of a debt recovered that is retained by or paid to a third party as compensation for services rendered in collecting the account.

c. If the tax rate in effect at the time of the sale is different from the rate in effect at the time that the bad debt is charged off, the amount of the credit or refund shall be adjusted to reflect the rate that was in effect when the sale was made.

d. If the dealer maintains a reserve for bad debts, only actual charges against the reserve account representing uncollectible debts or accounts may be deducted for sales tax bad debt purposes. Contributions to the reserve account are not deductible as a sales tax bad debt.

(b) If a dealer recovers in whole, or in part, amounts previously claimed as bad debt credits or refunds, the amount so collected shall be included in the first sales and use tax return filed after such collection occurred.

(c)1. A dealer claiming a bad debt credit or refund must be able to substantiate the validity of such credit or refund by maintaining records of the following:

a. The name of the purchaser;

b. The original date of sale or sales giving rise to the bad debt;

c. The original taxable amount of the transaction;

d. The amount of tax remitted to the Florida Department of Revenue on the original transaction;

e. The amount of interest, finance or service charges incorporated in the debt;

f. All payments or other credits applied to the account of the purchaser;

g. The portion of the debt or account representing a charge that was not subject to tax on the original transaction;

h. The date the bad debt was charged off for federal income tax purposes or, if the dealer is not required to file federal income tax returns, the date the bad debt was charged off in accordance with generally accepted accounting principles;

i. The taxable amount charged off for federal income tax purposes or, if the dealer is not required to file federal income tax returns, the taxable amount charged off in accordance with generally accepted accounting principles;

j. The amount of tax credit or refund claimed for the bad debt;

k. Evidence that the uncollectible portion on which tax was paid has been charged off as a bad debt for federal income tax purposes or, if the dealer is not required to file federal income tax returns, evidence that the uncollectible portion on which tax was paid has been charged off in accordance with generally accepted accounting principles.

2. These records must be maintained until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S., and shall be made available to the Department upon request.

History

• Rulemaking Authority 212.17(8), 212.18(2), 213.06(1) FS. Law Implemented 212.06(1), 212.13(2), 212.17, (2), (3), 212.18(2), 213.35, 215.26(2) FS. History–New 10-7-68, Amended 1-17-71, 6-16-72, 2-21-77, 9-28-78, 7-20-82, Formerly 12A-1.12, Amended 12-13-88, 2-16-93, 4-16-18.

Fla. Admin. Code R. 12A-1.013 Credit for Taxes Paid in Error

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(14)(a), 212.06(1), (2), 212.17(1), 215.26(2) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.13, Repealed 6-19-01.

Fla. Admin. Code R. 12A-1.014 Refunds and Credits for Sales Tax Erroneously Paid

(1) When a dealer refunds the sales, lease, or rental price of admissions, tangible personal property, transient rentals, real property, or services upon which tax has been paid by the purchaser or lessee to the dealer and remitted by the dealer to the state, the dealer shall also refund the tax paid by the purchaser. If, in lieu of a refund of the sale price, the dealer credits such amount on the purchaser’s account, a corresponding credit for sales tax previously paid by the customer shall be made.

(2) A dealer who has paid tax on property acquired for use may take a credit, or obtain a refund, for the amount of tax paid on the acquired property if:

(a) The dealer sells the property within 3 years from the date of payment of the tax; and,

(b) The dealer did not use the property prior to the date of sale.

(3) Whenever a dealer credits a customer with tax on returned merchandise or for tax erroneously collected, the dealer must refund such tax to the customer before the dealer’s claim to the State for credit or refund will be approved.

(4) A taxpayer who has overpaid tax to a dealer, or who has paid tax to a dealer when no tax is due, must secure a refund of the tax from the dealer and not from the Department of Revenue.

(5)(a) Any dealer entitled to a refund of tax paid to the Department of Revenue may seek a refund by filing an Application for Refund-Sales and Use Tax (Form DR-26S, incorporated by reference in Rule 12-26.008, F.A.C.) with the Department within 3 years after the date the tax was paid. Form DR-26S must meet the requirements of Sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C.

(b) In lieu of a refund to which the dealer is entitled, the dealer may take a credit on the dealer’s sales and use tax return within 3 years after the date the tax was paid in accordance with the timing provisions of Section 215.26(2), F.S.

(6) Any dealer who takes a credit, or applies for a refund, for tax paid to the state is required to keep and preserve all information and documentation necessary to substantiate the dealer’s entitlement to a refund or credit of tax paid until tax imposed under chapter 212, F.S., may no longer be determined and assessed under Section 95.091, F.S.

Cross Reference – Rules 12A-1.007, 12A-1.034 and 12A-1.096, and rule Chapter 12-26, F.A.C.

History

• Rulemaking Authority 212.17(8), 212.18(2), 213.06(1) FS. Law Implemented 95.091(3), 212.12(6), 212.17(1), 213.255(1), (2), (3), 213.35, 213.255(1), (2), (3), 215.26(2) FS. History–New 10-7-68, Amended 1-17-71, 6-16-72, 10-21-75, 9-28-78, 11-15-82, 10-13-83, Formerly 12A-1.14, Amended 6-10-87, 1-2-89, 8-10-92, 3-17-93, 1-3-96, 3-20-96, 6-19-01, 4-17-03, 5-9-13.

Fla. Admin. Code R. 12A-1.0141 Equipment Used to Deploy Internet Related Broadband Technologies in a Florida Network Access Point; Refund Procedures

History

• Rulemaking Authority 212.08(5)(p), 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.08(5)(p), 212.085, 213.255(1), (2), (3), 215.26(2) FS. History‒New 6-19-01, Amended 4-17-03, Repealed 12-18-07.

Fla. Admin. Code R. 12A-1.0142 Refund of Tax Paid on Purchases of Equipment, Machinery, and Other Materials for Renewable Energy Technologies

History

• Rulemaking Authority 212.08(7)(ccc), 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.08(7)(ccc), 213.255, 215.26, 377.801-.806 FS. History–New 6-4-08, Repealed 1-25-12.

Fla. Admin. Code R. 12A-1.0143 Manufacturing and Spaceport Investment Incentive Program Tax Refunds

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 213.255, 215.26, 288.1083 FS. History–New 6-6-11, Repealed 1-8-19.

Fla. Admin. Code R. 12A-1.0144 Refund of Tax Paid on Purchases of Equipment, Machinery, and Other Materials for Renewable Energy Technologies

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.08(7)(hhh), 213.255 FS. History–New 1-17-13, Repealed 4-16-18.

Fla. Admin. Code R. 12A-1.015 Industrial Gases

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(14)(c), 212.05, 212.08(2), (6), (7)(o) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.15, Repealed 7-12-10.

Fla. Admin. Code R. 12A-1.016 Sales; Installation Charges

(1) “Sale” means any transfer of title or possession or both, exchange, barter, license, lease or rental, conditional or otherwise, in any manner or by any means whatsoever of tangible personal property for a consideration.

(2) “Sales price” means the total amount paid for tangible personal property, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser by the seller, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest charged, losses or any other expense whatsoever. Sales price also includes the consideration for a transaction which requires both labor and material to alter, remodel, maintain, adjust or repair tangible personal property. Trade-ins or discounts allowed and taken at the time of sale shall not be included within the purview of this subsection.

(3)(a) The total consideration received for labor or services used in installing tangible personal property which is sold and does not become a part of realty, is taxable even though such charge may be separately stated.

(b) Contractors and manufacturers who furnish and install the following items are considered to be retail dealers and are required to charge sales tax on the full price, including installation and any other charges:

1. Carpets, except those that become real property (See Rule 12A-1.051, F.A.C.);

2. Drapes, slipcovers, bedspreads, curtains, blinds, shades, etc.;

3. Garbage can receptacles;

4. Household appliances;

5. Lawn markers;

6. Mail boxes;

7. Mirrors, except those that become real property (See Rule 12A-1.051, F.A.C.);

8. Portable ice machines;

9. Precast clothesline poles;

10. Radio and television antennas;

11. Rugs;

12. Stepping stones;

13. Window air conditioning units; and,

14. Equipment used to provide communications services, as defined in Section 202.11(1), F.S., that is installed on a customer’s premises.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(15)(a), (16), 212.05, 212.06 FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.16, Amended 12-13-88, 10-2-01.

Fla. Admin. Code R. 12A-1.0161 Sales and Use Tax on Services; Sale for Resale

(1)(a) A tax is imposed on the sale at retail or use in this state of nonresidential pest control services described in Rule 12A-1.009, F.A.C., nonresidential cleaning services described in Rule 12A-1.0091, F.A.C., and detective burglar protection, and other protection services described in Rule 12A-1.0092, F.A.C. The tax is imposed at the rate of 6 percent of the total sales price or cost price of such service. The tax shall be computed on each taxable sale or use of a service for the purpose of remitting the amount of tax due the state, and shall include each and every such retail sale or use of a service. The charge for services performed within this state but used or consumed outside this state by the purchaser is exempt from tax.

(b) For the purposes of this rule, a service shall mean those services enumerated in paragraph (a) above.

(2)(a) The use tax on services shall apply to the use of a taxable service purchased within or outside this state when the primary benefit of the service is used or consumed in this state and at the time of purchase the sales tax could not be or was not imposed. The primary benefit of the service is presumed to be used or consumed in Florida and subject to use tax when:

1. The real property is located in Florida, if the service is applied to or otherwise directly relates to the real property; or

2. The situs or permanent location of tangible personal property is in Florida, if the service is applied to or otherwise directly relates to the tangible personal property; or

3. The direct result of the service applies to activities of the purchaser in Florida, if the service is unrelated to real property or tangible personal property; or

4. The service is performed for or primarily benefits the estate of a decedent whose last established residency was in Florida.

(b) For the purposes of subparagraph (a)3. above, a purchaser shall be considered a purchaser in Florida if the purchaser is an individual acting in a nonbusiness capacity and resides in this state, on a permanent or temporary basis, at the time the purchase is made; or if the purchaser is a business with Florida nexus.

(c) For the purposes of paragraph (a) above, if the purchaser can demonstrate to the satisfaction of the Department that the benefit of the service was used or consumed outside this state, the service shall be deemed to be used or consumed outside this state. In determining whether the benefit of a service is used or consumed in this state the Department shall consider: all of the facts and circumstances surrounding the transaction; and whether the result of the service could give rise to a cause of action in Florida under Section 48.193, F.S. The seller of services subject to tax shall maintain a monthly log for each transaction involving the charge for services performed in this state but used or consumed outside this state. The log must identify the purchaser’s:

1. Name, location, and mailing address;

2. Federal employer identification number, if a business, or social security number, if an individual;

3. Identify the service sold, the price of that service, and the date of sale;

4. The reason for the exemption; and,

5. The sales invoice number.

(3) Services by employees to their employers are exempt.

(a) In determining whether a person is an employee, the Department will consider the following indicia:

1. Whether the person is paid a wage or salary;

2. Whether the “employer” is required to withhold income tax from the person’s wage or salary;

3. Whether F.I.C.A. is required to be paid by the “employer”; or

4. Whether the “employer” is required to make unemployment insurance contributions on behalf of the person.

(b)1. However, if all of the indicia mentioned above are present, the person is nevertheless not an employee if he is acting in the capacity of an independent contractor. A person may be an employee even if one or more of the indicia are not present and he is not acting as an independent contractor.

2. Example: D is a detective who works for Agency A. Agency A pays him $30.00 per hour. Agency A withholds income tax from the money paid to D. Agency A treats D as an employee and controls the details of his work. D is covered by Agency A’s workers’ compensation insurance. D is an employee working for wage or salary. His service rendered to Agency A are not subject to sales tax.

(c)1. A person who provides services for a company on a fee basis is not an employee of the company where the company exercises no direct control over the details of performance of that person’s duties beyond general statements about the scope and nature of that person’s obligations under the contract between that person and the company. In addition, where fees paid to that person are not subject to withholding taxes or social security taxes, that person is not considered an employee of the company. Therefore, that person’s taxable services are subject to sales tax.

2. Example: B and Company X are cleaning service contractors. B provides cleaning services for Company X’s customers, all of which are located in Florida. Company X does not control the details of B’s work, pays B a fee, and is not required by applicable law to make unemployment insurance contributions on behalf of B. B is not an employee. B is an independent contractor in business for himself. B’s cleaning services are subject to tax. B would be required to register as a dealer, to collect the tax from Company X, and to remit the same to the state, unless Company X is purchasing B’s services for resale. See subsection (5) below.

(d) Advisory services provided by corporate directors and board members to their respective corporation(s) are exempt.

(4) A sale of a service is a sale for resale and is exempt from sales tax when the service is later sold under the following conditions:

(a) The service provides a direct and identifiable benefit to a single client or customer of the purchaser; and,

(b) The purchaser of the service buys the service pursuant to a written contract (or other evidence sufficient for audit purposes) with the seller which specifically designates the client or customer on whose behalf the purchaser is buying the service; and,

(c) The purchaser of the service separately states the value of the service in the charge for the service when it is subsequently sold to the purchaser’s client or customer; and,

(d) The selling dealer complies with the provisions of Rule 12A-1.039, F.A.C., with regard to documenting sales for resale.

(5) Service providers are considered the ultimate consumers of any tangible personal property used in providing their services. As such, the service provider is liable for the sales and use tax on any purchases of tangible personal property used in providing the services.

(6) If a transaction involves both the sale of a taxable service as provided in subsection (1) above, and the sale of a service that is not taxable, or if it involves both the sale of a taxable service and the sale or use of property that is not subject to sales or use tax, the charges shall be separately identified and stated with respect to the taxable and nontaxable portions of the transaction. The tax shall apply to the transaction to the extent that the consideration paid in connection with the transaction is payment for the sale of taxable services. Failure to separately state the charges shall create a presumption that the entire transaction is a taxable service. The burden shall be on the seller of the service or the purchaser of the service, whichever is applicable, to overcome this presumption by providing documentary evidence (i.e., time sheets, schedules, receipts, or other documents which support activities) as to the amount of the transaction that is exempt from tax. If the Department determines that the taxable and exempt portions of a transaction are inaccurately stated, the Department is authorized to adjust such portions with support by substantial competent evidence.

(7) The exemption from tax in Section 212.08(7)(v), F.S., of service transactions that involve sales of tangible personal property as inconsequential elements does not apply to services taxable as provided in this rule, but if the sale of such a service is taxed, it cannot also be taxed as a sale of tangible personal property.

(8) Any person, whether registered or unregistered, who has purchased services either in this state or from out-of-state for use in this state without having paid sales tax on such services if subject to tax, is required to remit use tax on the cost price of such service. If such person is registered, use tax is to be remitted with the dealer’s sales and use tax return. If such person is unregistered, use tax is to be remitted on Form DR-15MO, Out-of-State Purchase Return (incorporated by reference in Rule 12A-1.097, F.A.C.).

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(b), (i), 212.06(1)(a), (2)(k), 212.07(1)(b), 212.08(7)(v) FS. History–New 5-13-93, Amended 1-4-94, 10-17-94, 3-20-96, 4-2-00, 10-2-01, 4-17-03, 1-12-11.

Fla. Admin. Code R. 12A-1.017 Finance and Interest Charges and Carrying Charges on Installment Sales

The amount paid by any purchaser as interest or as a finance charge is taxable unless such interest or finance charge is separately stated from the consideration received for the tangible personal property transferred in a retail sale. For example, where articles are sold in a taxable transaction under an installment payment arrangement, retail title contract or purchase money mortgage for a stated amount payable in installments at intervals over a period of time, the entire amount is taxable. If, on the other hand, a cash selling price is stated and interest and carrying charges are added thereto as separate and distinct items, only the cash selling price is taxable.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(2), 212.06(1)(a), 212.07(2), 212.12(9) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.17, Amended 4-2-00.

Fla. Admin. Code R. 12A-1.018 Trade and Cash Discounts

(1) The tax is imposed upon the total selling price of tangible personal property sold at retail. Where a dealer quotes the purchaser a list price with a deduction as a trade discount, the tax is to be computed on the list price less the trade discount. A trade discount is an expedient for adjusting list prices and is to be deducted in arriving at the true selling price of the property.

(2) Discounts allowed and taken at the time of sale are deducted from the selling price, and the tax is due on the net amount paid at the time of sale. Discounts granted for payment within a specified period or upon a specified later date are not deemed discounts at the time of sale, and may not be deducted from the selling price for purposes of computing the tax.

(3) A coupon or refund issued directly by the manufacturer is not to be construed as a reduction in selling price by the dealer. In this case, as illustrated by the following examples, the full selling price of the product is taxable.

(a) Example A: An automobile is sold to a customer for $5,000 with a $500 “factory rebate.” The customer pays the dealer $5,000 for the automobile. The buyer in turn receives the $500 refund directly from the manufacturer. The dealer receives $5,000. Tax is due on $5,000.

(b) Example B: A box of soap powder retails for $1.50. The customer applies a “manufacturer’s coupon” worth $.50 toward the purchase of the box of powder. The dealer would collect $1.00 and the full tax due on the $1.50 sale from the customer. The manufacturer would redeem the coupon from the dealer for $.50.

(4) A dealer’s discount is a reduction in selling price if taken at the moment of sale or purchase of a product as illustrated by the following examples.

(a) Example A: An automobile is sold to a customer for $5,000 with a $500 “dealer’s discount.” The customer pays $5,000 less the $500 discount. The dealer receives $4,500. Tax due on $4,500.

(b) Example B: A customer has a coupon issued by the dealer which allows $.50 off the sales price of a box of soap powder which retails for $1.50. The dealer collects $1.00 from the customer along with the coupon. Tax is due on $1.00, since the redemption of the coupon reduces the sales price of the product to that amount.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(16), 212.07(2), 212.12(9) FS. History–New 10-7-68, Amended 6-16-72, 6-3-80, Formerly 12A-1.18, Amended 6-19-01, 7-20-11.

Fla. Admin. Code R. 12A-1.020 Licensed Practitioners; Drugs, Medical Products and Supplies

(1) Scope.

(a) Section 212.08(2), F.S., provides an exemption for certain items used in the practice of medicine by hospitals and healthcare entities or by physicians, dentists, and other licensed practitioners. This rule is intended to clarify the application of tax to items sold to hospitals and healthcare entities or to physicians, dentists, and other licensed practitioners for use in their practice of medicine. This rule is also intended to clarify the exemption for chemical compounds and test kits, common household remedies, drugs, eyeglasses and lenses, medical gases, and medical products, supplies, and devices.

(b) Rule 12A-1.021, F.A.C. (Prosthetic and Orthopedic Appliances), is intended to clarify the exemption provided in Section 212.08(2), F.S., for prosthetic and orthopedic appliances.

(c) Rule 12A-1.0215, F.A.C. (Veterinary Sales and Services), is intended to clarify the application of tax to items used in the practice of veterinary medicine, for the exemptions provided for substances possessing curative or remedial properties, and for medical products, supplies, and devices used in the treatment of animals.

(2) Licensed practitioners.

(a) For purposes of this rule, a “licensed practitioner” is any person who is duly licensed and authorized by laws of the State of Florida to administer, prescribe, or dispense, as appropriate, a drug or device for medical purposes.

(b) Hospitals, healthcare entities, and licensed practitioners are required to pay tax at the time of purchase on taxable items or services used or consumed in providing medical services. See Rule 12A-1.038, F.A.C., for purchases by hospitals or healthcare entities that hold a valid Consumer’s Certificate of Exemption issued by the Department.

(3) Drugs.

(a) Drugs and medicinal drugs used in connection with medical treatment are exempt. The term “drug” or “medicinal drug” means those substances or preparations commonly known as “prescription” or “legend” drugs that are required by federal or state law to be dispensed only by a prescription.

(b) Opaque drugs, including X-ray opaques, and radiopaque, such as the various opaque dyes and barium sulphate, that are used in connection with medical X-rays for the treatment of human bodies are exempt.

(4) Medical gases.

(a) Compressed medical gases and medical oxygen in compliance with the provisions of Rule 61N-1.007, F.A.C., are exempt.

(b) The charge for filling or refilling tanks containing compressed air or nitrox to be used for scuba diving is subject to tax.

(5) Common household remedies; cosmetics; toilet articles; hygiene products.

(a)1. Common household remedies recommended and generally sold for internal or external use in the cure, mitigation, treatment, or prevention of illness or disease in human beings, according to a list prescribed and approved by the Department of Business and Professional Regulation and certified to the Department of Revenue, are exempt. This list is contained in Form DR-46NT, Nontaxable Medical Items and General Grocery List (incorporated by reference in Rule 12A-1.097, F.A.C.).

2. Common household items that are not intended to cure, mitigate, treat, or prevent illness or disease in human beings are subject to tax. For example, disinfectants used for the sterilization of glass, containers, utensils, or equipment are subject to tax; products used for the purification of air or for deodorants are subject to tax; chlorine used for the treatment of water in swimming pools is subject to tax.

(b) The exemption provided for common household remedies does not include cosmetics or toilet articles, even when the cosmetic or toilet article contains medicinal ingredients. Cosmetics and toilet articles, including those that contain medicinal ingredients, are subject to tax, except when dispensed pursuant to a prescription written by a licensed practitioner.

1. For purposes of this rule, “cosmetics” means any article intended to be rubbed, poured, sprinkled, sprayed on, introduced into, or otherwise applied to the human body for cleansing, beautifying, promoting attractiveness, or altering the appearance. The term includes articles intended for use as a compound of any such articles, such as cold creams, suntan products, makeup, and body lotions.

2. For purposes of this rule, “toilet articles” means any article advertised or held out for sale for grooming purposes and those articles which are customarily used for grooming purposes, regardless of the name by which they may be known, such as soaps, hair sprays, shaving products, colognes, perfumes, shampoos, and deodorants.

(c) Personal hygiene products, excluding the oral hygiene products listed in (d) and hygiene products dispensed pursuant to a prescription written by a licensed practitioner, are subject to tax.

(d) The following products are exempt from sales tax and do not require a prescription written by a licensed practitioner: electric and manual toothbrushes, toothpaste, dental floss, dental picks, oral irrigators, and mouthwash.

(e) Contraceptive products, except when dispensed pursuant to a prescription written by a licensed practitioner, are subject to tax.

(f) Taxpayers who have a question regarding the taxable status of a product may submit a written description of the product, including the product name, ingredients, and recommended uses, to the Department. This request should be addressed to the Florida Department of Revenue, Technical Assistance, Post Office Box 7443, Tallahassee, Florida 32314-7443.

(6) Medical products, supplies, or devices.

(a) “Medical products, supplies, or devices” are any products, supplies, or devices that are intended or designed to be used for a medical purpose to treat, prevent, or diagnose human disease, illness, or injury. The purpose is assigned to a product, supply, or device by its label or its general instructions for use.

(b) Unless specifically exempt, products, supplies, or devices sold to hospitals and healthcare entities or to licensed practitioners are subject to tax. Examples of items that do not qualify for exemption are: absorbent cotton; gloves, gowns, uniforms, masks, drapes, or towels; infusion pumps; reusable knives, needles, or scissors; scales; ear syringes; tongue depressors; specimen bags; instruments, equipment, and machines and their parts and accessories; microscopes; examination tables; hospital beds; X-ray machines; X-ray films and developing solutions; computerized axial tomography (CAT) machines; and magnetic resonance imaging (MRI) machines. This is not intended to be an exhaustive list.

(c)1. Medical products, supplies, or devices sold to hospitals, healthcare entities, or licensed practitioners are exempt when:

a. The medical product, supply, or device must be dispensed under federal or state law only by the prescription or order of a licensed practitioner; and,

b. The medical product, supply, or device is intended for use on a single patient and is not intended to be reusable.

2. Medical trays and surgical or procedure kits containing medical products, supplies, or devices that are labeled to be dispensed only by the prescription or order of a licensed practitioner and are intended for use on a single patient are exempt, even when the medical tray or kit contains one or more items that, when sold separately, would be subject to tax.

3. No exemption certificate or Annual Resale Certificate is required to be obtained by the selling dealer from the purchasing hospital, healthcare entity, or licensed practitioner to document exempt sales of medical products, supplies, or devices that are labeled to be dispensed only by the prescription or order of a licensed practitioner. However, selling dealers are required to maintain documents in their records evidencing that the medical product, supply, or device sold to a hospital, healthcare entity, or licensed practitioner is labeled to be dispensed only by the prescription or order of a licensed practitioner.

(d)1. Medical products, supplies, and devices used in the cure, mitigation, alleviation, prevention, or treatment of injury, disease or incapacity of a patient(s) that are temporarily or permanently incorporated into a patient(s) by a licensed practitioner are exempt.

2. A licensed practitioner, or an authorized representative of the licensed practitioner, may extend an exemption certificate to the selling dealer certifying that the purchased medical products, supplies, or devices will be temporarily or permanently incorporated into a patient(s) for the cure, mitigation, alleviation, prevention, or treatment of injury, disease, or incapacity of a patient(s). For example, a licensed dentist may purchase gold, silver, amalgam, or other dental restorative materials used for dental fillings exempt from tax by extending an exemption certificate to the supplier when those materials are not labeled “Rx only.” A suggested exemption certificate is provided in subsection (11).

3. Any person that is not a licensed practitioner must register with the Department as a dealer, as provided in Rule 12A-1.060, F.A.C., to sell medical products, supplies, or devices in Florida. Registered dealers may purchase products, supplies, or devices for the purposes of resale, or materials to manufacture, compound, process, or fabricate such items for sale, by extending a copy of its Annual Resale Certificate to the selling dealer, as provided in Rule 12A-1.039, F.A.C.

4. No exemption certificate or Annual Resale Certificate is required to make purchases of medical products, supplies, or devices exempt from tax when:

a. The item is listed as an item exempt from tax in Form DR-46NT, Nontaxable Medical Items and General Grocery List; or,

b. The label of the medical product, supply, or device indicates that it must be dispensed under federal or state law by the prescription or order of a licensed practitioner and that it is intended for use on a single patient.

(e) Medical products, supplies, and devices are exempt when dispensed to a patient according to an individual prescription written by a licensed practitioner.

(7) Chemical compounds and test kits.

(a) The sale of chemical compounds and test kits used for the diagnosis or treatment of human disease, illness, or injury is exempt. The following is a nonexhaustive list of chemical compounds and test kits that are not subject to tax:

1. Allergy test kits that use human blood to test for the most common allergens;

2. Anemia meters and test kits;

3. Antibodies to Hepatitis C test kits;

4. Bilirubin test kits (blood or urine);

5. Blood analyzers, blood collection tubes, lancets, capillaries, test strips, tubes containing chemical compounds, and test kits to test human blood for levels of albumin, cholesterol, HDL, LDL, triglycerides, glucose, ketones, or other detectors of illness, disease, or injury;

6. Blood sugar (glucose) test kits, reagent strips, test tapes, and other test kit refills;

7. Blood pressure monitors, kits, and parts;

8. Breast self-exam kit;

9. Fecal occult blood tests (colorectal tests);

10. Hemoglobin test kits;

11. Human Immunodeficiency Virus (HIV) test kits and systems;

12. Influenza AB test kits;

13. Middle ear monitor;

14. Prostate Specific Antigen (PSA) test kits;

15. Prothrombin (clotting factor) test kits;

16. Thermometers, for human use;

17. Thyroid Stimulating Hormone (TSH) test kits;

18. Urinalysis test kits, reagent strips, tablets, and test tapes to test levels, such as albumin, blood, glucose, leukocytes, nitrite, pH, or protein levels, in human urine as detectors of illness, disease, or injury;

19. Urinary tract infection test kits; and,

20. Vaginal acidity (pH) test kits.

(b) Chemical compounds and test kits that are not used to diagnose or treat human disease, illness, or injury are subject to tax. The following is a nonexhaustive list of chemical compounds and test kits that do not test for human illness, disease, or injury and are subject to tax:

1. Blood typing test kits for home use;

2. DNA tests (such as maternity tests, paternity tests, sibling ship tests, twin zygosity tests, ancestry testing, avuncular (grandparent, aunt, and uncle) tests, male lineage tests, or article tests);

3. Drug and alcohol (including nicotine) test kits;

4. Ethanol breathalyzer tests (alcohol intoxication);

5. Follicle stimulating hormone (FSH) test kits;

6. Hazard chemicals detection kits:

7. Male fertility (semen analysis) test kits;

8. Menopause monitors and test kits;

9. Ovulation/leutinizing hormone (LH) test kits;

10. Personal wellness or body balance check test kits, such as those to measure hormone levels, cortisol levels, melatonin levels, mineral levels, or antioxidant levels; and,

11. Pregnancy test kits.

(8) Prescribed parts and attachments.

(a) Parts, special attachments, special lettering, and other like items that are added to or attached to tangible personal property to assist a person with special needs are exempt when purchased pursuant to an individual prescription. When purchased without an individual prescription, these items are subject to tax. For example, items installed on motor vehicles to make them adaptable for use by persons with special needs, such as special controls, purchased pursuant to a written prescription are exempt; however, the motor vehicle and the standard or optional equipment available on the motor vehicle are subject to tax.

(b) If tangible personal property is sold with special controls, lettering, or devices, and the additional charge for the added features is separately stated on the sales invoice for the tangible personal property, that charge for the added features is exempt when purchased pursuant to an individual prescription.

(9) Orthopedic, therapeutic, or corrective shoes.

(a) Orthopedic shoes made to specifications prescribed by a podiatrist, orthopedist, or other licensed practitioner for the purpose of treating or preventing illness or disease, or to correct physical incapacity are exempt. Therapeutic shoes and inserts prescribed by a licensed practitioner for purposes of treating diabetic foot disease and provided by a podiatrist, orthotist, prosthetist, or pedorthist are exempt.

(b) Shoes made to order for special fitting problems, such as narrow or large feet, are subject to tax.

(c) When a shoe is modified to specifications prescribed by a podiatrist, orthopedist, or other physician by the insertion of a lift, a wedge, or an arch support for the purpose of treating or preventing illness or disease, or to correct physical incapacity, the charge for the shoe is subject to tax. However, any reasonable separately stated charge for the modification is exempt. If no separate charge is made for the modification, the entire charge is subject to tax.

(d) When a shoe is modified for a more comfortable fit (e.g., heel pad inserted or insole added), for improving the style, or for similar purposes, the total charge for the modification and the shoe is subject to tax.

(10) Eyeglasses and lenses.

(a) Prescription eyeglasses, incidental items, and items that become a part of prescription eyeglasses are exempt. Prescription eyeglasses include lenses, including contact lenses, prescribed for the correction of a patient’s refractive effort, for the improvement of a patient’s vision, or for protective purposes. Incidental items include frames, component parts, carrying cases, contact lens cases, and other similar items.

(b) The sale of eyeglass lens cleaning solutions, contact lens cleaning solutions, and contact lens disinfectants are subject to tax.

(c) The sale of standard or stock eyeglasses, incidental items, or items that become a part of standard or stock eyeglasses, without a prescription, is subject to tax. Some examples are: frames and component parts, carrying cases, safety glasses, sunglasses, field glasses, opera glasses, and magnifying glasses.

(d) When the purchaser of one-time items that transfer essential optical characteristics to contact lenses has paid at least $100,000 in tax (sales tax, plus discretionary sales surtax) in any calendar year on such purchases, the purchaser is exempt from tax on purchases of such items for the remainder of that calendar year. Purchasers who hold a valid Sales and Use Tax Direct Pay Permit issued by the Department may make purchases of these items exempt from tax when:

1. The purchaser extends a copy of a valid Sales and Use Tax Direct Pay Permit (Form DR-16P, incorporated by reference in Rule 12A-1.097, F.A.C.), as provided in Rule 12A-1.0911, F.A.C., to the selling dealer at the time of purchase; and,

2. The purchaser pays to the Department each calendar year $100,000 in tax due on purchases of one-time items that transfer essential optical characteristics to contact lenses during the calendar year.

(11) Items that assist in independent living. The following items, when purchased for noncommercial home or personal use, are exempt from tax:

(a) A bed transfer handle selling for $60 or less.

(b) A bed rail selling for $110 or less.

(c) A grab bar selling for $100 or less.

(d) A shower seat selling for $100 or less

(12) Suggested exemption certificate; recordkeeping requirements.

(a) The following is a suggested exemption certificate to be issued to purchase qualified medical products, supplies, or devices exempt from tax at the time of purchase:

EXEMPTION CERTIFICATE

MEDICAL PRODUCTS, SUPPLIES, DEVICES, OR MATERIALS

I, the undersigned individual, as a practitioner licensed in the State of Florida, or an authorized representative of a licensed practitioner, certify that the medical products, supplies, devices, or other materials purchased on or after________(date) from _________________(Selling Dealer’s Business Name): ____________________________________________________________

(Check the use that qualifies the product, supply, device, or material for exemption)

( ) Meet the definition of a medical product, supply, or device and will be dispensed by a licensed practitioner.

( ) Will be used in the cure, mitigation, alleviation, prevention, or treatment of injury, disease, or incapacity of a patient and will be temporarily or permanently incorporated into a patient(s) by a licensed practitioner.

I understand that if I use the medical product, supply, device, or other materials for any nonexempt purpose, I must pay tax on the purchase price of the item directly to the Department of Revenue.

I understand that if I fraudulently issue this certificate to evade the payment of sales tax, I will be liable for payment of the sales tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Under the penalties of perjury, I declare that I have read the foregoing Certificate and that the facts stated herein are true.

Name of Licensed Practitioner: _____________________________________________

Florida License Number:_____________________________________________________________ Address: _________________

---

Name of Authorized Representative: ____________________________________________________________________________

(Signature of Licensed Practitioner or Authorized Representative)

---

Title

---

Date

(b) The selling dealer is only required to obtain one certificate for sales made for the purposes indicated on the certificate and is not required to obtain an exemption certificate for subsequent sales made to the same licensed practitioner or authorized representative. The selling dealer must maintain the required exemption certificates in its books and records until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(c) Dealers must maintain copies of exemption certificates, Annual Resale Certificates, prescriptions, and any other documentation required under the provisions of this rule until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(d) Electronic storage by the selling dealer of the required certificates, prescriptions, and other documentation will be sufficient compliance with the provisions of this subsection.

History

• Rulemaking Authority 212.08(2)(a), 212.18(2), 213.06(1) FS. Law Implemented 212.08(2), (5)(t), (7)(rrr), 212.085, 212.12(6)(a), 213.37 FS. History–New 10-7-68, Amended 1-17-71, 6-16-72, 5-27-75, 5-10-77, 6-26-78, 2-26-79, 6-3-80, 12-31-81, 8-28-84, Formerly 12A-1.20, Amended 12-8-87, 7-12-10, 6-14-22, 1-1-24, Technical Change 6-8-26.

Fla. Admin. Code R. 12A-1.021 Prosthetic and Orthopedic Appliances

(1)(a) Prosthetic and orthopedic appliances are exempt. The term “prosthetic and orthopedic appliances” means any apparatus, instrument, device, or equipment used to replace or substitute for any missing part of the body, used to alleviate the malfunction of any part of the body, or used to assist any disabled person in leading a normal life by facilitating such person’s mobility. Such apparatus, instrument, device, or equipment is exempt according to an individual prescription or prescriptions written by a duly licensed practitioner, or according to a list prescribed and approved by the Department of Health and certified to the Department of Revenue. For purposes of this rule, a “licensed practitioner” includes a physician, osteopathic physician, chiropractic physician, podiatric physician, or dentist duly licensed under Florida law. The list of tax-exempt prosthetic and orthopedic appliances is contained in Form DR-46NT, Nontaxable Medical Items and General Grocery List (incorporated by reference in Rule 12A-1.097, F.A.C.).

(b) The prosthetic and orthopedic appliances listed below are specifically exempt:

Arch, foot, and heel supports, gels, insoles, and cushions, excluding shoe reliners and pads

Artificial Limbs

Artificial Eyes

Artificial Noses and Ears

Abdominal Belts

Back Braces

Batteries, for use in Prosthetic and Orthopedic Appliances

Braces and Supports Worn on the Body to Correct or Alleviate a Physical Incapacity or Injury

Canes (all)

Crutches, Crutch Tips, and Pads

Dentures, Denture Repair Kits and Cushions

Dialysis Machines and Artificial Kidney Machines, Parts and Accessories

Fluidic Breathing Assistor

Hearing Aids (repair parts, batteries, wires, and condensers)

Heart Stimulators – External Defibrillators

Mastectomy Pads

Ostomy pouch and accessories

Patient Safety Vests

Portable Resuscitators

Rupture belts

Suspensories

Trusses

Urine collectors and accessories

Walking Bars

Walkers, including walker chairs

Wheelchairs, including powered models, their parts and repairs

(2) Taxpayers who have a question concerning the taxable or exempt status of a prosthetic or orthopedic appliance may submit a written request to the Department, containing the name and a description of the appliance and its recommended use, for a determination of taxability of the appliance. The written request should be addressed to the Florida Department of Revenue, Technical Assistance, P.O. Box 7443, Tallahassee, Florida 32314-7443.

(3)(a) Materials and supplies that are incorporated into and become a component part of a prosthetic or orthopedic appliance or device that will be dispensed by a prosthetist or an orthotist licensed in the State of Florida to a patient pursuant to a prescription written by a licensed practitioner are not subject to sales or use tax. Examples of such items are: sheets of plastic, liquid resins, and fiberglass.

(b) A licensed prosthetist or orthotist, or its authorized representative, may extend an exemption certificate to the selling dealer certifying that materials and supplies purchased will be incorporated into and become a component part of a prosthetic or orthopedic appliance or device that will be dispensed to a patient pursuant to a prescription written by a licensed practitioner. No exemption certificate is required when:

1. The item is listed as an item exempt from tax in Form DR-46NT, Nontaxable Medical Items and General Grocery List; or

2. The label of the material or supply indicates that it must be dispensed under federal or state law by the prescription or order of a licensed practitioner and that it is intended for use on a single patient.

(c) Expendable materials, supplies, and other items that do not become a component part of, or accompany, a prosthetic or orthopedic appliance dispensed to a patient are subject to tax. Examples of such items are: sandpaper, molds used on more than one patient, and tools used by a prosthetist or an orthotist.

(d) The following is a suggested exemption certificate to be issued to purchase materials and supplies purchased that will be incorporated into and become a component part of a prosthetic or orthopedic appliance or device at the time of purchase exempt from tax:

EXEMPTION CERTIFICATE

MATERIALS AND SUPPLIES THAT BECOME A

COMPONENT PART OF A PRESCRIBED PROSTHETIC OR ORTHOPEDIC APPLIANCE

I, the undersigned individual, as a practitioner licensed in the State of Florida, or an authorized representative of a licensed prosthetist or a licensed orthotist, certify that the materials and supplies purchased on or after_______ (date) from ________ (Selling Dealer’s Business Name) will be incorporated into and become a component part of a prosthetic or orthopedic appliance or device that will be dispensed pursuant to a prescription written by a licensed practitioner.

I understand that if I use the materials or supplies for any nonexempt purpose, I must pay tax on the purchase price of the item directly to the Department of Revenue.

I understand that if I fraudulently issue this certificate to evade the payment of sales tax, I will be liable for payment of the sales tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Under the penalties of perjury, I declare that I have read the foregoing Certificate and that the facts stated herein are true.

Name of Licensed Prosthetist or Orthotist: _______________________________________________________________________

Florida License Number: ____Address:

---

Name of Authorized Representative: ____________________________________________________________________________

---

(Signature of Licensed Prosthetist or Orthotist or Authorized Representative)

---

Title

---

Date

(e) The selling dealer is only required to obtain one certificate for sales made for the purposes indicated on the certificate and is not required to obtain an exemption certificate for subsequent sales made to the same licensed prosthetist or orthotist or authorized representative. The selling dealer must maintain the required exemption certificates in its books and records until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(f) Dealers must maintain copies of exemption certificates required under the provisions of this rule until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S. Electronic storage of the required certificates will be sufficient compliance with the provisions of this rule.

History

• Rulemaking Authority 212.08(2)(a), (b), 212.18(2), 213.06(1) FS. Law Implemented 212.06(1), 212.07(1), 212.08(2), 212.12(6)(a), 213.37 FS. History–New 10-7-68, Amended 1-7-70, 1-17-71, 6-16-72, 6-9-76, 6-26-78, 12-31-81, Formerly 12A-1.21, Amended 12-8-87, 7-12-10.

Fla. Admin. Code R. 12A-1.0215 Veterinary Sales and Services

(1) Veterinary services.

(a) Services, such as examinations, treatment, or vaccinations of animals rendered by veterinarians are not subject to tax.

(b) Charges for hospitalization as part of the veterinarian’s treatment for a diagnosed health disorder are not subject to tax.

(2) Boarding and grooming.

(a) Charges for boarding animals or for grooming animals are not subject to tax.

(b) Items purchased for use in providing boarding or grooming are subject to tax. For example, cat food, dog food, nail care items, clippers, shears, brushes, combs, soaps, detergents, deodorizers, and colognes are subject to tax. Disinfectants used to clean kennels, cages, equipment, or other items used for boarding or grooming animals are subject to tax.

(3) Drugs and medical gases.

(a) Drugs, medicinal drugs, and veterinary prescription drugs used in connection with medical treatment of animals are exempt. The term “drug” or “medicinal drug” means those substances or preparations commonly known as “prescription” or “legend” drugs that are required by federal or state law to be dispensed only by a prescription. The term “veterinary prescription drugs” means those drugs intended solely for veterinary use for which the label of the drug bears the statement: “Caution: Federal law restricts this drug to sale by or on the order of a licensed veterinarian.”

(b) Opaque drugs, including X-ray opaques, and radiopaque, such as the various opaque dyes and barium sulphate, that are used in connection with medical X-rays for the treatment of animals are exempt.

(c) Compressed medical gases or medical oxygen in compliance with the provisions of Rule 61N-1.007, F.A.C., are exempt.

(4) Items purchased for treatment.

(a) Veterinarians are required to pay tax at the time of purchase on taxable items and services used or consumed in rendering veterinary services. Some examples of taxable items used or consumed by veterinarians in their practice are: gloves, gowns, uniforms, masks, drapes, or towels; infusion pumps; reusable knives, needles, or scissors; scales; ear syringes; specimen bags; instruments, equipment, and machines, and their parts and accessories; microscopes; examination tables; X-ray machines; X-ray films and developing solutions; computerized axial tomography (CAT) machines; magnetic resonance imaging (MRI) machines; tags; identification chips; disposable medical restraint collars and muzzles; and chemical compounds and test kits used for the diagnosis or treatment of animals’ disease, illness, or injury. This is not intended to be an exhaustive list.

(b) The following items sold to veterinary clinics or hospitals or licensed veterinarians are exempt:

1. Antiseptics;

2. Absorbent cotton;

3. Gauze for bandages;

4. Hypodermic needles and syringes;

5. Lotions;

6. Vitamins; and,

7. Worm remedies.

(c)1. Medical products, supplies, or devices sold to veterinary clinics or hospitals or licensed veterinarians are exempt when:

a. The medical product, supply, or device must be dispensed under federal or state law only by the prescription or order of a licensed practitioner; and,

b. The medical product, supply, or device is intended for single use and is not intended to be reusable.

2. Medical trays and surgical or procedure kits containing medical products, supplies, or devices that are labeled to be dispensed only by the prescription or order of a licensed practitioner and are intended for a single use are exempt, even when the medical tray or kit contains one or more items that, when sold separately, would be subject to tax.

3. No exemption certificate is required to be obtained by the selling dealer from the purchasing veterinary clinic or hospital or licensed veterinarian to document tax-exempt sales of medical products, supplies, or devices that are labeled to be dispensed only by the prescription or order of a licensed practitioner. However, selling dealers are required to maintain documents in their records evidencing that the medical product, supply, or device sold to a veterinary clinic or hospital or licensed veterinarian is labeled to be dispensed only by the prescription or order of a licensed practitioner.

(d) Medical products, supplies, and devices used in the cure, mitigation, alleviation, prevention, or treatment of injury, disease, or incapacity of an animal(s) that are temporarily or permanently incorporated into an animal(s) are exempt. Such medical products, supplies, and devices may be purchased tax-exempt when the licensed veterinarian, or an authorized representative of the licensed veterinarian, extends an exemption certificate to the selling dealer certifying that the purchased medical products, supplies, or devices will be temporarily or permanently incorporated into an animal(s) for the cure, mitigation, alleviation, prevention, or treatment of injury, disease, or incapacity of an animal(s). A suggested exemption certificate is provided in paragraph (4)(f).

(e)1. Commonly recognized substances possessing curative or remedial properties are exempt when:

a. Purchased by a licensed veterinarian who orders and dispenses the substance as treatment for a diagnosed health disorder of an animal; and,

b. The substance is applied to, or consumed by, animals for the alleviation of pain or the cure or prevention of sickness, disease, or suffering.

2. Charges to a client by a veterinarian for substances possessing curative or remedial properties that are not required by federal or state law to be dispensed only by a prescription, other than therapeutic veterinary diets, are subject to tax.

3. Examples: Transdermal medications, sprays, or powders designed to prevent or treat flea or tick infestation are exempt when they are purchased by and ordered and dispensed by a licensed veterinarian as part of treatment of a diagnosed health disorder of an animal.

4. Commonly recognized substances possessing curative or remedial properties may be purchased exempt from tax when the licensed veterinarian, or an authorized representative of the licensed veterinarian, extends an exemption certificate to the selling dealer certifying that the purchased substance possessing curative or remedial properties will be ordered and dispensed and applied to, or consumed by, an animal(s) for the alleviation of pain or the cure or prevention of sickness, disease, or suffering of an animal(s). A suggested exemption certificate is provided in paragraph (4)(f).

(f) The following is a suggested exemption certificate:

EXEMPTION CERTIFICATE

MEDICAL PRODUCTS, SUPPLIES, AND DEVICES

SUBSTANCES POSSESSING CURATIVE OR REMEDIAL PROPERTIES

I, the undersigned individual, as a veterinarian licensed in the State of Florida, or an authorized representative of a licensed veterinarian, certify that the items indicated below, purchased on or after ________ (date) from ________ (Selling Dealer’s Business Name), are for the exempt purpose indicated below. The option checked below applies to this purchase:

( ) Medical products, supplies, or devices that will be temporarily or permanently incorporated into an animal for use in the cure, mitigation, alleviation, prevention, or treatment of injury, disease, or incapacity of an animal(s).

( ) Substances possessing curative or remedial properties that will be ordered and dispensed and applied to, or consumed by, an animal as treatment for the alleviation of pain or the cure or prevention of sickness, disease, or suffering of an animal(s).

I understand that if I use the medical product or supply or substance for any nonexempt purpose, I must pay tax on the purchase price of the item directly to the Department of Revenue.

I understand that if I fraudulently issue this certificate to evade the payment of sales tax, I will be liable for payment of the sales tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Under the penalties of perjury, I declare that I have read the foregoing Certificate and that the facts stated herein are true.

Licensed Veterinarian’s Name: _____________________________________________________________ Veterinarian’s Address: __________________________________________________________________________________________________________

Veterinarian’s Florida License No.: ______________________________________________________ Name of Veterinarian’s Authorized Representative: ___________________________________________________________________________________

(Signature of Veterinarian or Authorized Representative)

---

Title

Date _____________________________________________________________________________________________________

(5) Items purchases for resale.

(a) Veterinarians who sell, lease, or rent items of tangible personal property, such as pet carriers, crates, kennels, houses, cages, clothing, bedding, toys, collars, leashes, leads, tie-outs, feeders, bowls, dishes, gates, or doors, are required to register as a dealer and collect and remit the applicable tax to the Department. This is not intended to be an exhaustive list.

(b) As a registered dealer, the veterinarian may provide a copy of the dealer’s Annual Resale Certificate to purchase taxable items of tangible personal property for resale in lieu of paying tax to the selling vendor, as provided in Rule 12A-1.039, F.A.C.

(6) Animal food sold to consumers.

(a) Animal foods that are required by federal or state law to be dispensed only by a prescription are exempt from tax.

(b) Animal foods which are therapeutic veterinary diets are exempt from tax. For the purpose of this rule, “therapeutic veterinary diets” means those animal foods that are specifically formulated to aid in the management of illness and disease of a diagnosed health disorder in an animal and which are only available from a licensed veterinarian.

(c) Even when sold by a veterinarian, animal foods which are not required by federal or state law to be dispensed only by a prescription and animal foods that are not therapeutic veterinary diets are subject to tax.

(7) Recordkeeping requirements.

(a) Veterinarians must maintain copies of records indicating the prescription or orders for and the dispensing of drugs, medicines, medical products, supplies, and devices, and substances possessing curative or remedial properties in their records until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(b) Electronic storage by the veterinarian of the orders or prescriptions will be sufficient compliance with the provisions of this subsection.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05, 212.07(1), 212.08(2), 212.12(6)(a), 465.187 FS. History–New 7-12-10, Amended 2-17-15.

Fla. Admin. Code R. 12A-1.022 Federal Excise Taxes, Gross Receipts Tax, and Other Fees

(1) Federal excise taxes.

(a) The federal manufacturers excise tax imposed on the manufacturer of certain items is included in the sales price upon which sales and use tax is computed when the federal manufacturers tax is separately itemized on a customer’s bill, invoice, statement, or other evidence of sale. Examples of the federal manufacturers excise tax are the gas guzzler tax and the taxes on sporting goods, firearms, tires, gasoline, gasohol, kerosene, fuel, and coal.

(b) The federal retail excise taxes levied upon the retail sale of certain items are NOT included in the sales price upon which sales and use tax is computed when the federal tax is separately itemized on a customer’s bill, invoice, statement, or other evidence of sale. Examples of the federal retail excise tax are the luxury automobile tax and the heavy truck and trailer tax.

(2) Taxes and fees imposed by the state of Florida.

(a)1. The gross receipts tax imposed under the provisions of Section 203.01(1)(a)1., F.S., on the provider of electricity or natural or manufactured gas is included in the charge upon which sales and use tax is computed when the gross receipts tax is passed on to the customer and wholly or partially separately itemized on a customer’s bill, invoice, statement, or other tangible evidence of sale.

2. The gross receipts tax imposed under the provisions of Section 203.01(1)(a)3., F.S., is administered in the same manner as sales and use tax and is not included in the charge upon which sales and use tax is computed.

(b) The following fees levied by the State of Florida are included in the sales price upon which sales and use tax is computed when the fee is separately itemized on the customer’s bill, invoice, statement, or other evidence of sale:

1. New tire fee levied under Section 403.718, F.S.;

2. Lead-acid battery fee levied under Section 403.7185, F.S.; and,

3. Rental car surcharge levied under Section 212.0606, F.S.

(c) The motor vehicle warranty fee levied under Section 681.117, F.S., is not included in the sales price upon which sales and use tax is computed when the fee is separately itemized on the customer’s bill, invoice, statement, or other evidence of sale.

(3) Taxes and fees imposed by political subdivisions of the state.

(a) Any municipal public service tax imposed under Section 166.231 or 166.232, F.S., by a municipality or a charter county on the purchase of electric power or energy, natural gas, liquefied petroleum gas, fuel oil, or kerosene is NOT included in the sales price upon which sales and use tax is computed when the municipal public service tax is separately itemized on a customer’s bill, invoice, statement, or other evidence of sale.

(b) Each and every fee imposed by a municipality or other political subdivision of the State of Florida on the provider of utility services, such as a franchise fee, is included in the sales price upon which sales and use tax is computed when the fee is passed on to the customer and separately itemized on the customer’s bill, invoice, statement, or other tangible evidence of sale.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 203.01(1)(a)1., 3., (4), 212.02(16), 212.05(1)(a)1.a., (e)1.c., (3), 212.0606, 403.718, 403.7185, 681.117(2) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.22, Amended 4-17-03, 2-17-15.

Fla. Admin. Code R. 12A-1.023 Linen Supply

(1) Persons engaged in the business of renting tangible personal property such as coats, caps, aprons, dresses, towels, linen and articles of a similar nature to barber shops, beauty parlors and other establishments or to individuals under an agreement which provides for a continuous service to be rendered in the periodic cleaning or laundering of such articles are required to collect the tax upon the rentals therefrom. Such items are exempt upon purchases when used exclusively for rental purposes. All other purchases of tangible personal property for use in connection with such rentals are taxable.

(2) Diaper service is taxable.

(3) The charge made by a linen supply company for the replacement of towels and similar items lost by a customer to whom it has rented them is exempt.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(c) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.23.

Fla. Admin. Code R. 12A-1.024 Fabrication of Tangible Personal Property for Others

(1) The producing, fabricating, processing, printing or imprinting of tangible personal property is taxable.

(2) The total charge for manufacturing a part in the shop from stock is fully taxable.

(3) Material which is cut, threaded, shaped, bent, polished, welded, sheared, punched, drilled, machined or in some way has work performed on it which changed its original state is considered to have been fabricated and is taxable.

(4) Charges for labor, replacement parts, materials and supplies used by dealers to adjust, apply, alter, install, maintain, remodel or repair tangible personal property belonging to others are fully taxable.

Cross Reference – Rules 12A-1.006, 12A-1.043 and 12A-1.063, F.A.C.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(15)(c), (16), 212.06(1)(b), (2)(a) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.24.

Fla. Admin. Code R. 12A-1.025 Receipts from Sales of Tangible Personal Property Sold to Building Operators, Business Establishments, Offices

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(14)(a), 212.05(1), 212.06(1)(a) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.25, Repealed 3-25-20.

Fla. Admin. Code R. 12A-1.027 Printing of Tangible Personal Property

(1) “Printing” is the transfer of an image or images by the use of ink, paint, dyes, or similar substrate from an original image to the final substrate through the process of letterpress, offset lithography, gravure, screen printing, or engraving. “Printing” includes the process of and the materials used in binding. “Printing” also includes reproducing an image or images from an original substrate through the electrophotographic, xerographic, laser, or offset process, or a combination of these processes, by which an operator can make more than one copy without handling the original, such as that used to reproduce publications.

(2)(a) The sale of printed tangible personal property or graphic matter is subject to tax. All charges to the consumer for materials, for the production or fabrication of items used, and for binding and finishing the printed property or graphic matter for distribution are subject to tax, even when such charges are separately stated on an invoice, customer bill, or other tangible evidence of sale.

(b) Charges for postage paid to the United States Postal Service that are separately stated on a customer’s invoice, bill, or other tangible evidence of sale are not subject to tax.

(3) The charge for printing or imprinting items provided by the customer to the printer is subject to tax.

(4)(a) When a printer located in Florida delivers printed materials to the United States Postal Service for mailing, it is presumed that all materials printed at the Florida facility are mailed to persons located within Florida, and the printer must collect tax on the sale of printed materials.

(b)1. A printer is relieved of the responsibility of collecting tax on the sale of printed materials when the purchaser provides the printer a signed certificate which certifies that:

a. The printer is to deliver the printed materials to the United States Postal Service for mailing, at least in part, to an agreed list of persons, other than the purchaser, located outside Florida; and,

b. The purchaser understands that, as a result of the issuance of the certificate, the purchaser must pay sales or use tax directly to the Department for all printed materials in the stated order that are mailed to persons located within Florida.

2. The purchaser is obligated to pay use tax directly to the Department of Revenue when, based on the order provided to the printer, more than an unsubstantial part of the printed matter is delivered by the printer to the United States Postal Service to be mailed to persons located inside Florida. If the purchaser is a registered dealer, the tax due may be reported and paid on the dealer’s sales and use tax return. If the purchaser is not required to register as a dealer under the provisions of Rule 12A-1.060, F.A.C., the use tax may be reported and paid on an Out-of-State Purchase Return (Form DR-15MO, incorporated by reference in Rule 12A-1.097, F.A.C.).

(c) The following is a suggested format of an exemption certificate to be completed by the purchaser and presented to the selling printer (dealer) at the time of sale:

EXEMPTION CERTIFICATE

PRINTED MATERIALS TO BE MAILED PARTLY OUTSIDE FLORIDA

______________________________ (Name of Purchaser of Printed Materials) certifies that he or she has placed an order, dated or numbered or otherwise described as follows:

__________________________________________________with _______________________________ (Name of Printing Facility) for the printing of certain materials, and as a part of that order the Printing Facility has agreed to deliver the printed materials to the United States Postal Service for mailing to an agreed list of persons.

The above-named Purchaser further certifies that, based on the mailing list, more than an unsubstantial part of the printed materials will be mailed to persons located outside Florida.

The Purchaser understands that, as a result of this certification, the Printing Facility has no obligation to collect any sales or use tax for the printed materials from the Purchaser, and that the Purchaser must pay sales or use tax directly to the Department of Revenue for all printed materials in the above order that are mailed to persons located within Florida. Such tax is due on the first day of the month following the sale of the materials and is delinquent on the 21st day of that month.

Under the penalties of perjury, I declare that I have read the foregoing Exemption Certificate for Printed Material to be Mailed Partly Outside Florida, and the facts stated in it are true.

---

---

Purchaser’s Name (Print or Type)

Florida Sales Tax Number (if registered)

---

---

Signature and Title

Date

---

---

Federal Employer Identification Number

Telephone Number

(F.E.I.) or Social Security Number

(Form to be retained in Printing Facility’s records)

(5)(a) Sales to a nonresident print purchaser for printing of tangible personal property are not subject to tax. A “nonresident print purchaser” is an out-of-state purchaser who is not required to be registered with the Department as a dealer under the provisions of Section 212.0596(2), F.S., and is purchasing printing of tangible personal property in this state. The nonresident print purchaser is required to furnish to the selling printer (dealer), at the time of sale, a certificate stating that the printed material purchased will be resold by the nonresident print purchaser and that the nonresident print purchaser is not required to register as a dealer with the Department under the provisions of Section 212.0596(2), F.S.

(b) The following is a suggested format of an exemption certificate to be completed by the nonresident print purchaser and presented to the selling printer (dealer) at the time of sale:

EXEMPTION CERTIFICATE

PRINTED MATERIAL PURCHASED BY A NONRESIDENT PURCHASER

Name of Printer: ____________________________________________________________________________________________

Address of Printer: ____________________________________________________________________________________ (Street)

_________________________________(City) ______________________________________________________________ (State)

This is to certify that all tangible personal property purchased after __________ (date) by the undersigned purchaser of printed material, who is not a dealer required to obtain a certificate of registration with the Florida Department of Revenue under the provisions of Section 212.0596(2), F.S., from the above named Florida printer, is printed material purchased for resale by the undersigned print purchaser and for no other purpose.

Under the penalties of perjury, I declare that I have read the foregoing Printed Material Exemption Certificate, and the facts stated in it are true.

Name of Nonresident Print Purchaser: __________________________________________________________________________

Address of Purchaser: _________________________________________________________________________________ (Street)

______________________________ (City) ________________________________________________________________ (State)

Federal Identification Number: ________________________________________________________________________________

---

---

---

---

(Signature of Authorized Representative)

Date

This certificate shall be considered a part of each order the Print Purchaser gives to the printer named above.

(6)(a) The purchase of materials and supplies that become a component part of printed matter for resale is exempt from the tax. Examples of such items are: paper stock, including newsprint; printer’s ink; and dry spray powder that is used to speed the drying of ink on printed matter.

(b)1. The purchase, production, or creation of film, photographic paper, dyes used for embossing and engraving, artwork, typography, lithographic plates, and negatives used in producing graphic matter for sale by printers is exempt if the printer’s business is classified in the Standard Industrial Classification (SIC) Manual, 1987, as published by the Office of Management and Budget, Executive Office of the President, by one of the following classifications:

a. SIC Industry Number 275, Commercial Printing;

b. SIC Industry Number 276, Manifold Business Forms;

c. SIC Industry Number 277, Greeting Cards;

d. SIC Industry Number 278, Blankbooks, Looseleaf Binders, and Bookbinding and Related Work;

e. SIC Industry Number 279, Service Industries for the Printing Trade.

2. The purchaser must extend an exemption certificate to the selling dealer to purchase tax exempt the items provided in paragraph (a). The following is a suggested exemption certificate:

EXEMPTION CERTIFICATE

PURCHASES OF FILM AND OTHER PRINTING SUPPLIES

______________________ (Purchaser’s Name) certifies that the film, photographic paper, dyes used for embossing and engraving, artwork, typography, lithographic plates, and/or negatives purchased on or after ________ (date) will be used to produce graphic matter for sale.

______________________ (Purchaser’s Name) further certifies that its four-digit SIC Industry Number is classified under SIC Industry Group Number 275, 276, 277, 278 or 279, as contained in the Standard Industrial Classification Manual, 1987, as published by the Office of Management and Budget, Executive Office of the President.

The undersigned understands that if such film, photographic paper, dyes used for embossing and engraving, artwork, typography, lithographic plates, and/or negatives do not qualify for exemption, the undersigned will be subject to sales and use tax, interest, and penalties. The undersigned further understands that when any person fraudulently, for the purpose of evading tax, issues to a vendor or to any agent of the state a certificate or statement in writing in which he or she claims exemption from the sales tax, such person, in addition to being liable for payment of the tax plus a mandatory penalty of 200% of the tax, shall be liable for fine and punishment provided by law for conviction of a felony of the third degree, as provided in Section 775.082, 775.083 or 775.084, F.S.

---

---

Purchaser’s Name (Print or Type)

Florida Sales Tax Number

---

---

Signature and Title

Date

---

---

Federal Employer Identification Number

Telephone Number

(F.E.I.) or Social Security Number

3. Any person who prints or publishes tangible personal property that does not meet the requirements of this paragraph must pay tax on such items.

(c) The purchase of items and materials used one time only for packaging printed matter, without which the delivery of the matter would be impractical, or for the convenience of the customer, is exempt. Examples of such packaging materials are: boxes, cans, mailing and wrapping paper, wax and plastic bags, twine, wire and steel band material, and shipping tags.

(d) The purchase of expendable materials, supplies, and other items that do not become a component part of, or accompany, the printed matter for sale is subject to tax. Examples of such items are: rosin paste, gummed paste, flash bulbs, felt packing, art supplies, photographs, engravings, cuts, mats, mat services, chemicals and additives used for processing printed materials, chemicals used as cleaning agents or detergents, blankets, rollers, matrix, wire machines, and other production and packaging equipment.

(7)(a) Selling printers (dealers) who accept in good faith the certificates required to be obtained from the purchaser will not be assessed tax on their sales of printed materials to that purchaser. The Department will look solely to the purchaser for any additional tax due.

(b) The selling printer (dealer) is required to maintain the certificates required to be obtained by the seller from the purchaser until tax imposed under Chapter 212, F.S., may no longer be determined and assessed under Section 95.091, F.S.

History

• Rulemaking Authority 212.06(3)(b), 212.18(2), 213.06(1) FS. Law Implemented 212.02(15)(c), 212.0596(2)(j), 212.06(2), (3)(b), (5)(a), 212.08(7)(yy), 212.085, 212.12(6), 213.37 FS. History–New 10-7-68, Amended 6-16-72, 5-18-74, Formerly 12A-1.27, Amended 5-18-94, 6-19-01.

Fla. Admin. Code R. 12A-1.029 Labels and Other Printed Matter Sold to Manufacturers

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(14), 212.05(1) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.29, Amended 4-2-00, Repealed 6-1-09.

Fla. Admin. Code R. 12A-1.031 The Printing of Lawyers’ Briefs and Accounts’ Reports

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(15) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.31, Repealed 6-19-01.

Fla. Admin. Code R. 12A-1.032 Computer Software

The charge for a customized software package is construed to be a service and is not subject to tax. Retail sales of prepackaged software sold in a tangible form, where the programs are fully useable by the customer without modifications, are taxable as sales of tangible personal property. However, where the vendor, at the customer’s request, modifies or alters a prepackaged program to the customer’s specification and charges the customer for a single transaction, the charge is for a customized software package and is not subject to tax.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(a), 212.08(7)(v) FS. History–New 12-11-74, Amended 5-10-77, 6-29-80, Formerly 12A-1.32, Amended 8-15-21.

Fla. Admin. Code R. 12A-1.033 Sales of Manuscripts

The sale by the owner of a unique manuscript or work of art or of his general property right in and to such manuscript or work of art, as distinguished from a sale of a special property right to reproduce a manuscript or work of art, is taxable.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(15), 212.05(1)(a) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.33.

Fla. Admin. Code R. 12A-1.034 Promotional Materials Exported from this State

(1) Promotional materials as defined in Section 212.06(11)(b), F.S., which are sold, purchased, imported, used, manufactured, fabricated, processed, printed, imprinted, assembled, distributed, or stored in this state and are subsequently exported outside this state are exempt from sales tax.

(2) Any dealer who has incurred use tax on the use in this state of promotional materials, as defined in Section 212.06(11)(b), F.S., may apply for a refund of tax paid on the promotional materials which are subsequently exported outside this state only when the seller of the promoted subscriptions to publications sold in this state is a registered dealer and is remitting sales tax to the Department on publications sold in this state. The dealer purchasing and distributing the promotional materials for promoted subscriptions and the seller of the promoted subscriptions to publications are not required to be the same person.

(3) Any dealer who is unable to determine at the time of purchase of promotional materials whether the promotional materials will be used in this state or exported from this state may also make a request in writing to the Department to obtain written consent from the Department to assume the obligation of self-accruing and remitting directly to the state the tax due on taxable purchases of promotional materials, as defined in Section 212.06(11)(b), F.S., only when the seller of the promoted subscriptions to publications sold in this state is a registered dealer and is remitting sales tax to the Department on publications sold in this state. (See Rule 12A-1.0911, F.A.C.)

(4) For purposes of this rule, “promotional materials,” as defined in Section 212.06(11)(b), F.S., includes tangible personal property that is given away or otherwise distributed to promote the sale of a subscription; written or printed advertising material, direct-mail literature, correspondence, written solicitations, renewal notices, and billings for sales connected with or to promote the sale of a subscription to a publication; and the component parts of each of these types of promotional materials.

(5) A claim for exemption as provided in this rule shall not be denied on the basis that the exportation process was not continuous and unbroken, that a separate consideration was not charged for the promotional materials so exported, or that the taxpayer kept, retained, or exercised any right, power, dominion, or control over the promotional materials before transporting them from the state or for the purpose of subsequently doing so.

(6)(a) To receive a refund of tax paid to the Department for promotional materials, the dealer must file an Application for Refund-Sales and Use Tax (Form DR-26S, incorporated by reference in Rule 12-26.008, F.A.C.) with the Department within 3 years after the date the tax was paid. Form DR-26S must meet the requirements of Sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C., and a refund shall not be approved, before the date the promotional materials are exported from this state.

(b) When the dealer’s claim for refund has been approved, the amount refunded will be the amount of use tax paid by the dealer on promotional materials that were subsequently exported from this state.

(c) Such use tax shall be refunded whether or not the dealer who paid the tax has been granted self-accrual authorization. See Rule 12A-1.0911, F.A.C.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 95.091, 212.06(11), 212.183(6), 213.255(1), (2), (3), 215.26(2) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.34, Amended 5-19-93, 11-16-93, 6-19-01, 4-17-03, 5-9-13.

Fla. Admin. Code R. 12A-1.035 Funerals; Related Merchandise and Services

(1) As used in this rule:

(a) “Consumer” means any person legally authorized to make financial arrangements for the purchase of a funeral or burial service or funeral or burial merchandise.

(b) “Funeral service” or “burial service” means any observance, ceremony, or service in connection with the final disposition, memorialization, interment, entombment, or inurnment of human remains.

(c) “Funeral merchandise” or “burial merchandise” means any tangible personal property commonly sold or used in connection with the final disposition, memorialization, interment, entombment, or inurnment of human remains. Examples of such items are caskets, burial containers, vaults, alternative containers, cremation containers, urns, monuments, private mausoleums, clothing, flowers, shrubs, benches, vases, memory folders, acknowledgment cards, prayer cards, and register books. This list is not intended to be an exhaustive list.

(2)(a)1. The following at-need sales to consumers by any person licensed under the provisions of Chapter 497, F.S., are not subject to tax:

a. The sale of funeral or burial services;

b. The sale of funeral or burial merchandise sold in conjunction with the sale of a funeral or burial service; and,

c. The sale of funeral or burial merchandise that is installed at the consumer’s designated location.

2. The sale of funeral or burial merchandise is presumed to be made in conjunction with the sale of funeral or burial services when the seller of the merchandise is required to deliver the merchandise to any person licensed to provide funeral or burial services.

3. The purchase of funeral or burial merchandise by any person licensed under the provisions of Chapter 497, F.S., for use in providing funeral or burial services or for installation at the consumer’s designated location is subject to tax at the time of purchase.

(b) Charges to a consumer for funeral or burial merchandise sold under the provisions of a preneed contract authorized by Chapter 497, F.S., are not subject to tax. When merchandise is purchased by any person licensed under Chapter 497, F.S., to be provided at the time of death of the individual for whom the contract was purchased, tax is due at the time of purchase.

(3)(a) Monuments, monument services, and related monument products for the purposes of memorializing human remains are not subject to tax when:

1. The merchandise is sold in conjunction with the sale of a funeral or burial service; or

2. The merchandise is installed at the consumer’s designated location.

(b) The following sales of monuments, monument services, and related monument products sold for the memorialization of animal remains are not subject to tax:

1. The sale of services for the final disposition of animal remains;

2. The sale of merchandise sold in conjunction with services for the final disposition of animal remains; and,

3. The sale of monuments, monument services, and related monument products sold for the memorialization of animal remains that are installed at the purchaser’s designated location.

(c) The following are examples of sales of monuments, monument services, and related monument products to consumers for the memorialization of human remains, or for the memorialization of animal remains, that are not subject to sales tax. This list is not intended to be an exhaustive list.

1. The sale of monuments, copings, or bases that are installed with or without a foundation or base;

2. The sale of a marker installed at the grave site or affixed to real property improvements, such as niches, crypts, benches, mausoleums, and other cemetery improvements;

3. The building of a mausoleum, columbarium, or below ground crypt;

4. The construction of foundations for monuments;

5. The sale of lettering installed or affixed to real property improvements, such as niches, crypts, benches, mausoleums, and other cemetery improvements;

6. Charges for the inscription of a monument, marker, crypt, or niche;

7. Charges for the repair of monuments when the repair is made at the site of installation;

8. Charges for cleaning monuments.

(4) The sale of funeral or burial merchandise that does not meet the requirements of subsection (2) or (3) is subject to tax. Any person who makes such sales is required to register with the Department as a dealer and collect the tax from the consumer. (See Rule 12A-1.060, F.A.C.) Tax previously paid by the dealer on the purchase of merchandise may be taken as a credit against the sales tax collected at the time of sale. The dealer should remit to the Department the difference between the amount of tax collected and the amount of tax paid on the purchase of the merchandise.

(5) Any person who separately itemizes and collects sales tax on any contract for the sale of funeral or burial merchandise must remit the tax to the Department at the time of execution of the contract. (See Rule 12A-1.056, F.A.C.)

(6) An Annual Resale Certificate (Form DR-13) may be extended to the selling dealer to purchase funeral or burial merchandise tax exempt for the purposes of resale when:

(a) The applicable tax is collected from the consumer at the time of sale;

(b) The merchandise is not purchased for use by any person licensed under Chapter 497, F.S., to provide funeral or burial services to a consumer; and,

(c) The merchandise is not installed at the consumer’s designated location.

(7) The purchase of tools, supplies, and other tangible personal property used in providing funeral or burial services, or in preparing funeral or burial merchandise for sale or for installation, is subject to tax.

(8) Any cemetery that holds a Consumer’s Certificate of Exemption (Form DR-14) issued by the Department may extend a copy of its certificate to the selling dealer to purchase funeral or burial merchandise, tools, supplies, and other tangible personal property for its own use tax exempt.

History

• Rulemaking Authority 212.07(1)(b), 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(a), (c), 212.06(1), 212.08(2), (7)(v) FS. History‒New 10-7-68, Amended 6-16-72, Formerly 12A-1.35, Amended 6-19-01, 5-9-13.

Fla. Admin. Code R. 12A-1.036 Furniture and Storage Warehousemen

(1) Charges by warehousemen solely for moving, storing, packing, or shipping tangible personal property belonging to other persons are not subject to tax.

(2) Warehousemen who sell tangible personal property, such as boxes, crates, tape, and other packaging or shipping materials, are required to register with the Department as dealers and collect tax on their sales of taxable items. See Rule 12A-1.060, F.A.C., Registration.

(3) Boxes, crates, shipping containers, packaging, pallets, dunnage (blocks, timber, and bracers used to hold in place or protect cargo during shipment), and other packaging or shipping materials purchased, used, or consumed by warehousemen when moving, storing, packing, and shipping tangible personal property belonging to other persons are subject to tax.

(4)(a) The payment of a damage claim by a warehousemen for damage suffered by merchandise in transit or in storage is not a sale of tangible personal property and is not subject to tax, even when the warehouseman retains the damaged property under settlement of the claim. Charges to warehousemen for repairs to damaged merchandise are subject to tax.

(b) Any warehouseman who maintains and operates a business location, such as a salvage depot, to sell merchandise, damaged merchandise, or merchandise acquired in settlement of a claim is required to collect tax on sales of such merchandise.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(b), 212.08(7)(v) FS. History‒New 10-7-68, Amended 6-16-72, Formerly 12A-1.36, Amended 6-1-09.

Fla. Admin. Code R. 12A-1.037 Occasional or Isolated Sales or Transactions Involving Tangible Personal Property or Services

(1) Occasional or isolated sales or transactions involving tangible personal property or taxable services are exempt, provided the sales or series of sales meet the requirements set forth in this rule, regarding: the intent of the parties; the frequency and duration of the sales; the type of tangible personal property or services offered for sale; the location where the sales take place; and the status of the parties, as it relates to the tangible personal property or taxable services being sold.

(2) An exempt isolated sale or transaction occurs when an entity, which for purposes of this rule is a “person,” as defined in Section 212.02(12), F.S., required to be registered as a dealer, either distributes tangible personal property in exchange for the surrender of a proportionate interest in an entity, or transfers all, or substantially all, of the property of a person’s business, or a division thereof. Also, the transfer of property to an entity in exchange for an interest therein in proportion to the tangible personal property contributed is exempt as an isolated sale.

(a) The isolated sales exemption does not apply to:

1. Sales of aircraft, boats, mobile homes, or motor vehicles in this state of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government; however, such sales may be exempt if they meet the criteria in subparagraph 12A-1.007(25)(a)3., 4. or 5., F.A.C.

2. The distribution or sale of inventory.

3. The distribution or sale of tangible personal property used in the business, such as salvage, surplus, or obsolete property, will not qualify as an isolated sale or transaction, unless the transaction is described in paragraph (2)(b) or (c), below; but such sale qualifies as an occasional sale or transaction if it complies with the requirements set forth in subsection (3), below, and provided none of the elements set forth in subsection (5), below, are present.

4. Transactions where the transferor has not paid any applicable sales or use tax on the tangible personal property, unless at the time of transfer the statute of limitations for assessment of sales and use tax on the property had expired, as provided in Section 95.091(3), F.S.

5. Sales made by or through an auctioneer, agent, broker, factor, or any other person required to be registered and to collect tax on such sales, as provided in Rule 12A-1.066, F.A.C.

6. Transactions which are not completed within 60 days from the date of the first distribution of assets of an entity.

(b) A transfer, distribution, exchange or sale of tangible personal property to or by an entity is an exempt isolated sale when:

1. The transfer of tangible personal property to an entity is in exchange for the stock (or an increase in the value of the transferor’s stock), or an interest (or an increase in the value of the transferor’s interest) therein, or in an entity which controls such entity, in proportion to the value of the property contributed.

a. Example: X Corp and Y Corp will each transfer $500,000 worth of tangible personal property to form XY Corp in exchange for X Corp and Y Corp each owning 50 percent of XY Corp stock. That transfer of tangible personal property to XY Corp is exempt as an isolated sale.

b. Example: X Corp transfers all or substantially all of the tangible personal property of one of its divisions to Y Corp, a newly formed corporation, in exchange for all of the stock of Y Corp. The transfer of the tangible personal property is a contribution to the capital of Y Corp and therefore is an exempt isolated sale.

c. Example: Z transfers tangible personal property to Y Corp as a contribution to the capital of Y Corp and either increases the value of its presently held stock in Y Corp in proportion to the value of the property contributed or receives additional stock in proportion to the value of the property contributed. The transfer of the tangible personal property from Z to Y Corp is a contribution to capital and therefore is an exempt isolated sale.

2. The transfer of property to an acquiring corporation is pursuant to a consolidation or merger of the corporation, and in exchange solely for issuance of the acquiring corporation’s stock, or stock of the acquiring corporation’s parent. Example: X Corp merges into Y Corp, in compliance with the statutory merger requirements set forth in Chapters 607 and 617, F.S. X Corp would not be required to collect sales tax from Y Corp on the transfer of the tangible personal property to Y Corp, since such transfer is not in the normal course of business; instead, the transfer is for the merger or consolidation of X Corp and Y Corp in the formation of XY Corp.

3. The distribution or sale by an entity in complete liquidation of non-inventory tangible personal property is made pursuant to the dissolution of that entity or a division thereof.

4. There is a transfer of tangible personal property to an acquiring corporation, where the acquiring corporation, in addition to exchanging its stock, either assumes a liability or pays boot in exchange for tangible personal property, provided that the fair market value of the stock exchanged for the tangible personal property represents at least 80% of the fair market value of the total consideration given for the tangible personal property.

(c) An exempt isolated sale or transaction may also occur when the transfer of non-inventory tangible personal property by an entity is in exchange for the surrender of a proportionate interest in the entity held by the transferee. Example: A, B, and C each hold one-third interest in Partnership. C’s interest in Partnership will be extinguished when the non-inventory tangible personal property of Partnership proportionate to C’s interest is transferred to C. This transfer of non-inventory tangible personal property from Partnership to C is exempt as an isolated sale.

(d) The sale of business assets in conjunction with the sale of the business as provided in paragraph 12A-1.055(6)(b), F.A.C., other than inventory and aircraft, boats, mobile homes, and motor vehicles, qualifies as an isolated sale provided the sale and the transfer of the assets of the business is completed within 30 days from the date of the agreement for the sale of the business. If the sale of the business is not completed within the 30 day period, the sale may nevertheless qualify as an occasional sale provided the sale complies with the requirements in subsection (3), below, and provided none of the elements set forth in subsection (5), below, are present.

(3)(a) An exempt occasional sale or series of sales occurs when there is a sale by the owner of tangible personal property, which meets the requirements set forth below, regarding the frequency and duration of the sales, the type of tangible personal property sold, the location of the sales, and the status of the parties as it relates to the property being sold.

(b) An exempt occasional sale or series of sales by the owner of tangible personal property must occur under the following circumstances:

1. The seller must have paid any applicable sales or use tax on such property unless at the time of sale the statute of limitations for assessment of sales and use tax on the property had expired, as provided in Section 95.091(3), F.S.

2. Such sales or series of sales occur no more frequently than two times during any 12-month period.

a. The third sale or series of sales in this State of such property during any 12-month period makes that person engaged in the business, and that person is required to register as a dealer and required to collect and remit tax on such third sale or series of sales and on all subsequent sales until such sales or series of sales occur no more than two times within any 12-month period. A dealer that is no longer required to be registered must cancel its sales tax registration. Once the registration is canceled, the seller cannot make more than two sales or series of sales within any 12-month period without being required to register again as a dealer.

b. The term “series of sales,” for purposes of this rule, means any multiple sales of tangible personal property, for a limited duration not to exceed 30 consecutive days, which as to any single sale within the series of sales would not be taxable under the requirements set forth in this rule for each such single sale. Each series of sales shall be considered a single sale. Example: A carpet retailer conducts a two day sale to dispose of its used office equipment. The multiple sales made by the dealer during those two days constitute a single sale, for purposes of the occasional sales tax exemption, since the sales took place within the limited duration which did not exceed 30 consecutive days; therefore, the sale is exempt from tax.

c. For purposes of determining whether a sale qualifies as an occasional sale, an entity with more than one place of operation in the State of Florida shall be considered a single entity. Example: X Corp wishes to sell its used office furniture and equipment; it operates from A, B, C, and D locations. The A location holds a sale on January 1st; the B location holds a sale on January 15th; the C location holds a sale in May; and the D location holds a sale in August. The sales made by the A and B locations constitute a single sale, since the same entity, X Corp, sold the tangible personal property within 30 consecutive days; therefore, the sales made at the A and B locations may qualify as occasional sales. The sales made by the C location constitute a second sale by X Corp, and may qualify as the second occasional sale, because such sale did not occur within 30 days from the January 1st sale. However, the sales made by the D location constitute a third sale by X Corp, and shall not qualify as an occasional sale.

3. Sales by a dealer of tangible personal property that was used in the business, which is not inventory and which was not originally purchased for resale, may qualify as an occasional sale, regardless of the items’ similarity to any items sold in the regular course of the dealer’s trade or business, provided the items are not specifically excluded, as set forth in subsection (5) of this rule, from the occasional sales exemption, and provided all other requirements set forth herein are met.

a. Example: Sales by a farmer of his farm machinery or equipment, or by a grocery store of its cash registers and other equipment, or by an office supply company of its (fixed assets) office furniture are exempt if:

(I) Such sales or series of sales do not occur more than two times within any 12-month period;

(II) Such tangible personal property was not inventory; and,

(III) Such tangible personal property was not originally purchased or acquired for resale.

b. Example: X Corp is in the business of manufacturing baseball equipment, including baseballs, gloves, and bats. X Corp has decided to discontinue the production of gloves and will sell all the manufacturing equipment used for the production of gloves. The sale of the glove production equipment may qualify as an isolated sale of a division, as provided in subsection (2) above, or it may otherwise qualify as an occasional sale. However, the sale of gloves in inventory that were originally manufactured for resale does not qualify as an occasional sale.

(4) An occasional sale of taxable services occurs when the seller does not hold himself out as engaged in the business of selling such services and the sale of the services occurs no more than two times during any 12-month period.

(5) The sale of tangible personal property, or the sale of services, under any one of the following circumstances, is taxable and is not an occasional sale if:

(a) Such sale or series of sales occurs more than two times within any 12-month period (tax shall apply only to the third and subsequent sale(s)).

(b) Such property was originally purchased or acquired for resale.

(c) Such sale or series of sales are made on the same commercial premises or from a location, which is not its fixed and permanent business location, and which is in competition with other persons required to collect tax, regardless of whether such sales may otherwise qualify as occasional sales, and regardless of the similarity of the tangible personal property to that of the other dealers’ tangible personal property.

(d)1. Example: A non-profit civic organization selling T-shirts purchased for resale on the premises of any commercial establishment where the vendors are required to be registered as dealers, to charge, collect, and remit sales tax, must also register as a dealer even if that is the organization’s first sale during that 12-month period because:

a. The location where that organization is selling the T-shirts is considered to be in competition with other dealers required to collect tax; or

b. The T-shirts were purchased for resale.

2. Example: A city holds a parade which attracts sellers of tangible personal property, including, but not limited to, arts and crafts vendors. The city designates a specific area where the arts and crafts and other vendors’ items are to be sold. The sale of the arts and crafts is taxable, even if the arts and crafts are sold by non-profit organizations, and even if the sale would otherwise qualify as an occasional sale, because the sellers of the arts and crafts are selling at a location which is in competition with other vendors that are required to be registered. Therefore, the sale of the arts and crafts is not an occasional sale, and the sellers of arts and crafts must register as dealers.

(e) Such sale is made by or through an auctioneer, agent, broker, factor, or any other person required to be registered as a dealer to collect and remit tax on such sales, as provided in Rule 12A-1.066, F.A.C.

(f) Such sale involves an aircraft, boat, mobile home, or motor vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government. See Rule 12A-1.007, F.A.C.

(g) Such sale involves admissions; or taxable rentals, leases, or licenses of transient rental accommodations, parking lots, garages, docking, tie down spaces, or storage spaces for motor vehicles, boats or aircraft.

(6) The rental of tangible personal property, pursuant to an operating lease (as defined in Rule 12A-1.071, F.A.C.), qualifies as an exempt occasional sale, provided it complies with the requirements in subsection (3) above, and provided none of the elements set forth in subsection (5) above, are present.

(a) For purposes of this subsection, there shall be no series of sales of tangible personal property as set forth in sub-subparagraph (3)(b)2.b., above; therefore, all single rentals of tangible personal property shall constitute a sale.

(b) Any single rental transaction of tangible personal property, pursuant to an operating lease, covering a period of 30 days or less, will be treated as a single rental, and shall constitute one sale. If a rental transaction of tangible personal property covers a period in excess of 30 days, each 30 day increment, or portion thereof, will be considered a single rental transaction and shall constitute one sale.

(c) If a rental transaction exceeds the frequency requirement set forth in subsection (3), above, as modified by paragraphs (6)(a) and (b) above, no portion of that rental transaction shall be exempt as an occasional rental.

1. Example: Contractor X owns and operates bulldozers and other equipment (other than vehicles described in subparagraph (2)(a)1.) used in land clearing. Contractor X paid the applicable tax on the purchase of the equipment, and generally does not lease any of its equipment. However, in a 12-month period, Contractor X entered into three separate 30-day term operating leases, for the lease of a bulldozer to Contractor Y (without an operator). The first two 30-day leases qualify as occasional operating leases and are exempt from tax. However, Contractor X is required to register and collect tax on the third, and subsequent leases, until Contractor X has no more than two leases within any 12-month period.

2. Example: The rental of an automobile, pursuant to an operating lease, on which sales tax was paid when purchased is taxable, regardless of whether such rental would otherwise qualify as an occasional sale, because an automobile is a vehicle of a class required to be registered in this state.

3. Example: An individual, who was not previously in the business of renting computers, rents a computer for a term of six months in exchange for $300. The rental of the computer is not an occasional rental, and the entire amount paid for the full term of the rental is taxable, because each 30 day period is treated as a sale so that a six month rental constitutes six sales.

(7) The sales of second hand goods in a second hand store are not occasional sales, because second hand stores are in the business of selling such goods, and such items were purchased or acquired for resale.

(8)(a) A sale or series of sales of tangible personal property consisting of household goods or personal effects is an occasional sale if such sales comply with the requirements in subsection (3) above, and provided none of the elements set forth in subsection (5) above, are present.

(b) Such sale or series of sales must be by an individual(s) at his or her residence or at some other site, which is not on the same premises in competition with other persons required to collect tax.

1. Example: A garage sale of household goods and personal effects is held at a residence for several hours during a weekend. The sale or series of sales made by the owner of the tangible personal property qualifies as a single sale for purposes of the occasional sales tax exemption, provided this is the first or second such sale or series of sales within the immediately preceding 12-month period, and that such items were not purchased for resale.

2. Example: An individual holds three garage sales. One is on the second weekend of April, another is on the second weekend of June, and the final sale is on the second weekend of August. The April garage sale constitutes one sale or series of sales and may qualify as an occasional sale or series of sales. The June garage sale constitutes a second sale or series of sales, since it did not take place within 30 consecutive days from the April sale, and may also qualify as an occasional sale or series of sales. However, the August sale constitutes a third garage sale, since it did not take place within 30 consecutive days from the June sale; therefore, it may not qualify as an occasional sale of series or sales. Accordingly, for the August and future garage sales, the individual is required to register with the Department as a dealer, and is required to collect and remit sales tax on all taxable items of tangible personal property sold, until the individual makes no more than two garage sales or series of sales within any 12-month period.

(9) The sale by the Federal Government, including sales made by U.S. Marshals, of surplus government property or confiscated property is not subject to tax. However, no title certificate may be issued on any boat, mobile home, or motor vehicle or, if no title is required by law, no license or registration may be issued for any aircraft, boat, mobile home, motor vehicle, or other vehicle unless the purchaser files with the application for title certificate, license, or registration certificate a receipt issued by the Department of Revenue, its designated agent, or a county tax collector, evidencing payment of the tax where the same is payable.

(10)(a) The sale of tangible personal property, except unclaimed property pursuant to Section 717.122, F.S., by an agency of the state, or any county, municipality, or political subdivision of this state is taxable, provided the sale does not otherwise qualify as an occasional sale.

(b) In the case of aircraft, boats, mobile homes, motor vehicles, or other vehicles, such governmental unit shall collect and remit the tax and shall furnish the purchaser with a receipt thereof evidencing payment of the tax where the same is payable. The receipt evidencing payment of tax shall be attached to application for title or, if no title is required by law, to the license or registration certificate as proof that the tax has been paid.

(11) Sales of unclaimed tangible personal property by an agency of the state pursuant to Section 717.122, F.S., are not subject to tax. However, no title certificate may be issued on any boat, mobile home, or motor vehicle or, if no title is required by law, no license or registration may be issued for any aircraft, boat, mobile home, motor vehicle, or other vehicle unless the purchaser files with the application for title certificate, license, or registration certificate a receipt issued by the Department of Revenue, its designated agent, or a county tax collector, evidencing payment of the tax where the same is payable.

(12) Sales made by officers of a court pursuant to court orders are considered occasional sales, with the exception of:

(a) Sales made by trustees in bankruptcy or sales made by third parties at the direction of or by appointment of such trustees, sales made by receivers, and sales made by assignees under the provisions of Chapter 727, F.S., which are taxable. Trustees and such third parties, receivers, and assignees are required to register as dealers and collect the applicable tax on all taxable sales of tangible personal property made during the trusteeship, receivership, or assignment for the benefit of creditors, including sales from inventory and all tangible personal property of any business or estate, excluding sales of tangible personal property to the debtor in any bankruptcy proceedings, receiverships, or assignments;

(b) Sales made by or through an auctioneer, agent, broker, factor, or any other person required to be registered as a dealer to collect and remit tax on such sales, as provided in Rule 12A-1.066, F.A.C.;

(c) Aircraft, boats, mobile homes, or motor vehicles of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government; and,

(d) In the case of any aircraft, boat, mobile home, or motor vehicle of a class or type required to be registered, licensed, titled, or documented in this state or by the United States Government sold by an officer of the court, no title certificate may be issued, or, if no title is required by law, no license or registration may be issued unless there is filed with such application for title certificate, license, or registration certificate a receipt issued by the Department of Revenue, its designated agent, or a county tax collector, evidencing payment of tax where the same is payable.

(13) Manufacturers, processors, refiners, and miners in the business of producing and wholesalers engaged in distributing tangible personal property who sell primarily other than at retail are not deemed to be making occasional sales and must collect and remit tax when they sell such taxable tangible personal property to purchasers for use or consumption, notwithstanding that sales at retail may comprise a small fraction of their total sales.

(14) The sale of damaged or rejected freight by a common carrier may be exempt as an occasional sale, provided such sale complies with the requirements in subsection (3) above, and provided none of the elements set forth in subsection (5) above, are present.

(15) The sale, by a dealer, of cancelled stamps as collector’s items is taxable. Rare, uncancelled stamps sold by dealers are also taxable.

(16) The sale of new or used rails, cross-ties, and other tangible personal property by a railroad is taxable and does not qualify for exemption as an occasional sale, unless such sale or series of sales complies with the criteria set forth in subsection (3) above, and provided none of the elements set forth in subsection (5) above, are met.

(17) The sale by a contractor of equipment, on which sales tax was paid when purchased, is taxable, unless it qualifies as an occasional sale, as provided in subsection (3) above, and provided none of the elements set forth in subsection (5) above, are met. (For rental of equipment, see subsection (6) above.)

(18) House wreckers and movers who sell tangible materials or conduct other transactions are required to register as dealers and collect tax where applicable as follows:

(a) Sales of lumber, timber, brick, plumbing fixtures, and any other tangible personal property to a user or consumer are taxable.

(b) An assembled dwelling or other structure acquired by a house mover and sold as an entity to an individual to be placed on the individual’s own lot or property is taxable. The house becomes tangible personal property when removed from its original site.

(c) If a house mover acquires a building and moves it onto a lot owned by the mover and later sells the building and lot together, the sale is exempt because this constitutes a sale of realty.

(d) If an individual not engaged in the business of wrecking or moving houses acquires a house from another who is not engaged in the business of wrecking or moving houses, the transaction is exempt as an occasional sale. Where a house mover contracts to move and relocate such house to the purchaser’s lot, all materials, supplies, machinery, or equipment used in performing this service are taxable to the mover-contractor.

(e) Any temporary conveyance of title or ownership or other device designed to evade the application of the sales tax will not prevent the imposition of the proper sales tax.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(2), 212.05(1)(c), (f), (i), 212.06(1)(a), (2), (3), (8), (10), 212.07(1), 212.08(7)(ww), 212.11(2), (3), 212.18(2), 213.35 FS. History‒New 10-7-68, Amended 6-16-72, 10-18-78, 5-8-79, 12-23-80, 12-3-81, 7-20-82, Formerly 12A-1.37, Amended 1-2-89, 8-15-94, 6-19-01, 8-1-02, 12-29-25, Technical Change 6-8-26.

Fla. Admin. Code R. 12A-1.0371 Sales of Coins, Currency, or Bullion

(1)(a) The sale, use, consumption, or storage for use in this state of any coin or currency, whether in circulation or not, is subject to tax unless:

1. The coin or currency is legal tender of the United States; or

2. The coin or currency is legal tender of a country other than the United States, and the coin or currency is sold at its face value.

(b) For purposes of this rule, “legal tender” means coins or currency that, at the time of the sale transaction, a creditor would be required to accept in payment of a debt.

(c) Examples:

1. United States Olympic Coin Sets and United States Double Eagles are legal tender of the United States, and their sale is not taxable.

2. Ancient Roman coins, medieval English coins, and Confederate money are no longer legal tender in any country, and their sale is taxable.

3. A coin dealer sells a 1983 British pound, composed of nickel and brass, for a price in U.S. currency that exceeds the current exchange rate. The sale is taxable.

4. A retail sale of a gold Krugerrand is taxable, even though it may be legal tender in the Republic of South Africa, because it has no face value and is sold based upon its precious metal content.

(2) The sale, use, consumption, or storage for use in this state of gold, silver, or platinum bullion, or any combination thereof, in a single transaction, is exempt. For purposes of this rule, “bullion” means gold, silver, or platinum in the form of bars, ingots, or plates, normally sold by weight. Finished goods, such as coins and jewelry, are not bullion. Sales of commodity contracts of bullion are not subject to tax.

(3)(a) The sale of coins or currency, in a single transaction, is exempt when the sales price charged for coins or currency that are not legal tender of the United States or legal tender of another country sold at its face value exceeds $500.

(b) Example: In one transaction, an investor purchases one United States $20 coin, called a gold double eagle, for $295, one Krugerrand for $295, and one one-ounce gold ingot for $295. Because the gold double eagle is United States legal tender, its sale is not subject to tax. The sale of the gold ingot is an exempt sale of bullion. The sale of the Krugerrand is a taxable sale of coins or currency. Because the portion of the sales price charged for taxable coins or currency is $295, the transaction does not qualify for exemption and the sale of the Krugerrand is taxable.

(4) Jewelry or other objects made or fabricated by incorporating or using coins, currency, or bullion are subject to tax. Tax is due on the total sales price of the jewelry or other objects, without deduction or credit for the price or value of the coins, currency, or bullion.

(5) When coins or currency that are in circulation in, and the legal tender of, a nation are exchanged for coins or currency in circulation in, and legal tender of, another nation, no tax is due when the coins or currency are exchanged solely for use as legal tender and the rate of the exchange is based on the value of each nation’s coins or currency as a medium of exchange.

(6) The dealer must maintain proper documentation to exempt, in whole or in part, the sale of coins, currency, or bullion until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S. Failure to maintain and preserve proper documentation will subject the entire transaction to tax. Proper documentation, in the case of a transaction involving coins or currency, will describe the country, issue, grade, denomination, face value, and sales price of each item of coin or currency and additional information to clearly identify each coin or currency. In the case of a transaction involving bullion, proper documentation will describe the metal, quantity, form (such as bars or ingots), and sales price of each item of bullion.

History

• Rulemaking Authority 212.05(1)(j), 212.18(2), 213.06(1) FS. Law Implemented 212.02(19), 212.05(1)(j), 212.08(7)(ww) FS. History–New 3-17-93, Amended 10-17-94, 6-28-00, 5-9-13, 1-1-24, 12-29-25.

Fla. Admin. Code R. 12A-1.038 Consumer’s Certificate of Exemption; Exemption Certificates

(1) It is the specific legislative intent that each and every sale, admission, use, storage, consumption, or rental is taxable, unless such sale, admission, use, storage, consumption, or rental is specifically exempt. The exempt nature of the transaction must be established by the selling dealer. Unless the selling dealer shall have taken from the purchaser the required documentation as provided in subsection (3), (4) or (5) of this rule, the sale shall be deemed to be taxable. Subsection (3) of this rule governs sales made to exempt entities (other than governmental units) that hold a Consumer’s Certificate of Exemption. Subsection (4) of this rule governs sales made directly to governmental units. Subsection (5) of this rule governs sales exempt based on the use of the property or services.

(2) How to obtain a Consumer’s Certificate of Exemption (Form DR-14).

(a)1. Any organization determined by the Internal Revenue Service to be currently exempt from federal income tax pursuant to s. 501(c)(3) of the Internal Revenue Code of 1986, as amended, any state, county, municipality, or other political subdivision of a state, qualifying for the exemption provided in Section 212.08(6), F.S., any state chartered credit union qualifying for exemption under Section 213.12(2), F.S., and any other organization qualifying for exemption under Section 212.08(7), F.S., desiring to qualify for these exemptions must obtain a Consumer’s Certificate of Exemption. Any limited liability company determined by the Internal Revenue Service to be currently exempt from federal income tax pursuant to s. 501(c)(3) of the Internal Revenue Code of 1986, as amended, must obtain a separate Consumer’s Certificate of Exemption, even though its parent corporation may currently hold a Consumer’s Certificate of Exemption. The United States Government or any of its federal agencies is not required to obtain a Consumer’s Certificate of Exemption.

2. To obtain a Consumer’s Certificate of Exemption, the organization must file an Application for a Consumer’s Certificate of Exemption (Form DR-5, incorporated by reference in Rule 12A-1.097, F.A.C.) and documentation sufficient to substantiate the applicant’s claim for exemption with the Department. The Department will issue a Consumer’s Certificate of Exemption (Form DR-14) to each applicant qualifying for exemption under Section 212.08(6) or (7) or 213.12(2), F.S.

(b) A Consumer’s Certificate of Exemption will be valid from its “Issue Date” through its “Expiration Date,” as indicated on the certificate (Form DR-14). Any dealer selling taxable property, services, or admissions to an exempt entity prior to the date of issue, or after the date of expiration, indicated on the exempt entity’s Consumer’s Certificate of Exemption, is required to collect tax. An entity whose Consumer’s Certificate of Exemption has been revoked by the Department is prohibited from extending a copy of its certificate to purchase taxable property, services, or admissions exempt from tax. However, a selling dealer who accepts in good faith a copy of a Consumer’s Certificate of Exemption that appears valid and current on its face will not be liable for any applicable tax due on sales to the entity or subject to other punitive actions.

(3) Sales made to exempt entities other than governmental units.

(a) An entity that holds a valid Consumer’s Certificate of Exemption (Form DR-14) issued by the Florida Department of Revenue may extend a copy of its certificate to the selling dealer to purchase or rent taxable property, admissions, or services used for its authorized tax-exempt purpose in lieu of paying sales tax. Purchases of property, admissions, or services used for the entity’s authorized tax-exempt purposes must be made with the purchasing entity’s funds and may not be made with personal funds of the purchasing entity’s authorized representative. When the payment for taxable property, admissions, or services is made with an authorized representative’s personal funds, the purchase is subject to tax, even if the representative is subsequently reimbursed with the entity’s funds.

(b) To make purchases or rentals for the purposes of resale, the entity must be registered as a sales tax dealer and issue the selling dealer an Annual Resale Certificate (Form DR-13), as provided in Rule 12A-1.039, F.A.C.

(c) It is the exempt entity’s responsibility to determine whether the purchase or rental will be used for its authorized tax-exempt purpose or for the purposes of resale and to provide the proper documentation to the selling dealer. In lieu of obtaining a copy of the entity’s valid Consumer’s Certificate of Exemption, the selling dealer may obtain a transaction authorization number or a vendor authorization number from the Department when making a tax-exempt sale to the entity. A selling dealer who accepts in good faith a copy of an entity’s valid Consumer’s Certificate of Exemption, or a transaction authorization number or a vendor authorization number issued by the Department will not be held liable for any tax due on sales made to the entity during the effective dates indicated on the certificate or the effective dates of the authorization number. The selling dealer must maintain the required authorization numbers and certificates in its books and records for the time period provided in subsection (6) of this rule.

(d) An exemption certificate granted by any other state, District of Columbia, or territory of the United States to the selling dealer is not sufficient to make tax-exempt purchases or rentals in Florida. The fact that an entity holds an exemption from federal income tax pursuant to s. 501(c)(3) of the Internal Revenue Code of 1986, as amended, is not sufficient to make tax exempt purchases or rentals in Florida.

(e) An entity holding a valid Consumer’s Certificate of Exemption may not extend a copy of its certificate to a contractor to be applied to contracts for the construction or improvement of real property. See Rule 12A-1.094, F.A.C., for guidance on direct purchases by governmental entities of construction materials in real property projects.

(f) The validity of a Florida Consumer’s Certificate of Exemption may be verified by using the Department’s online Certificate Verification System at floridarevenue.com/taxes/certificates, by using the Department’s FL Tax-Verify mobile application, or by calling the Department’s automated nationwide toll-free verification system at 1(877)357-3725. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(g)1. Transaction authorization number issued prior to or at the point-of-sale – valid for a single transaction only. In lieu of obtaining a copy of the exempt entity’s valid Consumer’s Certificate of Exemption for each sale, the selling dealer may obtain a transaction authorization number or a vendor authorization number from the Department when making a tax-exempt sale to the exempt entity or its authorized representative.

2. The selling dealer may obtain a transaction authorization number prior to or at the point-of-sale by using the Department’s online Certificate Verification System at floridarevenue.com/taxes/certificates, by using the Department’s FL Tax-Verify mobile application, or by calling the Department’s automated nationwide toll-free verification system at 1(877)357-3725. When using the Department’s online Certificate Verification System, the dealer may key up to five Florida Consumer’s Certificate of Exemption numbers into the system. When using the Department’s FL Tax-Verify mobile application or the Department’s automated nationwide toll-free verification system, the selling dealer is prompted to key in a single Florida Consumer’s Certificate of Exemption number. Each verification system will issue a transaction authorization number or alert the selling dealer that the purchaser does not have a valid Florida Consumer’s Certificate of Exemption. Selling dealers using the automated telephone verification system who do not have a touch-tone telephone will be connected to a live operator Monday through Friday (excluding holidays) 8:00 a.m. to 5:00 p.m. (Eastern Time). Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

3. The selling dealer must document the transaction authorization number on the sales invoice, purchase order, or other document that is prepared by the purchaser or the selling dealer to document the tax exempt purchase by the exempt entity.

4. A transaction authorization number is valid for a single sales transaction and is not valid to properly document subsequent sales made to the same entity. The selling dealer must obtain a new vendor authorization number for subsequent tax exempt transactions.

(h)1. Vendor authorization number for regular customers – valid for calendar year issue. In lieu of obtaining a copy of the exempt entity’s valid Florida Consumer’s Certificate of Exemption or a transaction authorization number from the Department for each sale to the entity, the selling dealer may obtain a vendor authorization number for that entity. This option is available to selling dealers throughout the calendar year without limitation.

2. The “vendor authorization number” is a customer-specific authorization number that will be valid for all sales made to an exempt entity during the calendar year.

3. To obtain vendor authorization numbers, the selling dealer may use the Department’s online Certificate Verification System at floridarevenue.com/taxes/certificates or send a written request to the Department. Dealers obtaining authorization numbers by submitting a written request to the Department may obtain the electronic format for sending the customer data from the Department’s web site at floridarevenue.com or call the Department at (850)488-3516 to obtain the electronic format.

a. The written request should be forwarded to the Florida Department of Revenue, Account Management MS 1-5730, Florida Department of Revenue, 5050 W Tennessee Street, Tallahassee, Florida 32399-0160, along with an electronic file containing a list of the dealer’s regular customers for which the dealer has a Florida Consumer’s Certificate of Exemption number on file. In response to the request, the Department will issue to the selling dealer, using the same electronic medium, a list containing a unique vendor authorization number for each exempt entity who is a holder of a valid Florida Consumer’s Certificate of Exemption.

b. The Department’s online Certificate Verification System allows the user to verify up to five Florida Consumer’s Certificate numbers and to obtain a transaction authorization number for single sales made to each exempt entity at once. The system also allows the user to upload a batch file of up to 50,000 accounts for verification of a Florida Consumer’s Certificate of Exemption and, 24 hours later, retrieve the file containing the vendor authorization numbers for all sales made to an exempt entity during the calendar year.

4. The selling dealer may make tax-exempt sales to the exempt entity during the period in which the vendor authorization number for that entity is valid. Vendor authorization numbers are valid for the remainder of the calendar year during which they are issued. However, vendor authorization numbers issued by the Department in November or December are valid for the remainder of that calendar year and the next calendar year.

(4) Sales made directly to governmental units.

(a) Any state, or any county, municipality, or political subdivision of a state that holds a valid Consumer’s Certificate of Exemption (Form DR-14) issued by the Florida Department of Revenue may issue a copy of its certificate to the selling dealer to purchase or rent taxable items or services tax-exempt in lieu of paying sales tax. The United States Government is not required to hold a Consumer’s Certificate of Exemption to make tax-exempt purchases and rentals.

(b) Payment for tax-exempt purchases or rentals of property or services must be made directly to the selling dealer by the governmental unit of a state, or any county, municipality, or political subdivision of a state. Payments made with an authorized P-Card are considered to be made directly by the governmental unit. When the payment for taxable property or services is made with the personal funds of an authorized representative of the governmental unit, the purchase is subject to tax, even if the representative is subsequently reimbursed with the governmental unit’s funds. The authorized representative of any state, county, municipality, or political subdivision of a state, must choose one of the following methods to make tax-exempt purchases or rentals:

1. Use an authorized Purchasing or Procurement Card (“P-Card”) which indicates on its face that it is a Florida government purchasing card for official business only. Information printed on the front of the card will include the agency’s name, the agency’s Consumer’s Certificate of Exemption number, the account number, the name of the cardholder (employee), and the expiration date. The selling dealer who accepts the “P-Card” should retain a copy of the face of the “P-Card” to note the Consumer’s Certificate of Exemption number, account number, and cardholder name for its books and records to properly document the exempt sale. When the selling dealer cannot copy the “P-Card,” the dealer must retain the Consumer’s Certificate of Exemption number, the account number, cardholder’s name, and the expiration date of the “P-Card.”

2. Issue a certificate containing the governmental unit’s name, address, the Consumer’s Certificate of Exemption number, the effective date and expiration date of the Consumer’s Certificate of Exemption, and the signature of an authorized representative of the governmental unit. The following is a suggested format of the certificate:

EMPLOYER’S AUTHORIZATION TO MAKE

PURCHASES ON BEHALF OF AN EXEMPT GOVERNMENTAL UNIT

---

DATE

TO: ________________________

SELLING DEALER’S NAME

---

SELLING DEALER’S ADDRESS

I, the undersigned, am a representative of the exempt governmental unit identified below. The purchase or lease of tangible personal property or services or the rental of living quarters or sleeping accommodations made on or after _________ (DATE[S]) from the business identified above is for use by the exempt governmental unit identified below.

The charges for the purchase or lease of tangible personal property or services or the rental of living quarters or sleeping accommodations from the dealer identified above will be billed to and paid directly by the exempt governmental unit.

Under penalties of perjury, I declare that I have read the foregoing and that the facts stated in it are true.

---

AUTHORIZED SIGNATURE ON BEHALF OF EXEMPT GOVERNMENTAL UNIT

---

NAME OF EXEMPT GOVERNMENTAL UNIT

---

ADDRESS OF EXEMPT GOVERNMENTAL UNIT

---

CONSUMER’S CERTIFICATE OF EXEMPTION NUMBER

THIS CERTIFICATE MAY NOT BE USED TO MAKE PURCHASES OR LEASES OF TANGIBLE PERSONAL PROPERTY OR SERVICES OR RENTAL OF LIVING ACCOMMODATIONS FOR THE PERSONAL USE OF ANY INDIVIDUAL REPRESENTING THE EXEMPT ENTITY IDENTIFIED ABOVE.

(c) The purchase or rental of property or services by employees authorized on behalf of a federal agency is exempt, even though the employee is subsequently reimbursed by the federal agency. The following is a suggested certificate format to be issued by federal employees to the selling dealer to make tax-exempt purchases or rentals:

EXEMPTION CERTIFICATE

TO BE USED BY FEDERAL EMPLOYEES

---

DATE

---

SELLING DEALER’S NAME

---

SELLING DEALER’S ADDRESS

I, the undersigned am an employee of the federal agency identified below. The purchase or lease of tangible personal property or services or the rental of living quarters or sleeping accommodations on or after __________ (DATE[S]) from the business identified above is in pursuit of my employer’s affairs. The Government of the United States either will pay the seller directly or will provide reimbursement to the employee for the actual cost of the purchase or lease of tangible personal property, services, or living quarters or sleeping accommodations made on this date(s).

Under penalties of perjury, I declare that I have read the foregoing and the facts stated in it are true.

---

SIGNATURE OF EMPLOYEE

---

NAME OF FEDERAL AGENCY

---

ADDRESS OF FEDERAL AGENCY

THIS CERTIFICATE MAY NOT BE USED TO MAKE EXEMPT PURCHASES OR LEASES OF TANGIBLE PERSONAL PROPERTY OR SERVICES OR RENTAL OF LIVING ACCOMMODATIONS FOR THE PERSONAL USE OF ANY INDIVIDUAL EMPLOYED BY A UNITED STATES GOVERNMENTAL AGENCY. PROPER IDENTIFICATION IS REQUIRED BEFORE THIS CERTIFICATE MAY BE ACCEPTED BY THE SELLER.

(d) To make purchases or rentals for the purpose of resale, the state, county, municipality, or political subdivision of a state must be registered as a sales tax dealer and extend to the selling dealer a copy of its Annual Resale Certificate (Form DR-13), as provided in Rule 12A-1.039, F.A.C.

(e) It is the responsibility of the authorized representative of any state, county, municipality, or political subdivision of the state to determine whether the purchase is for use by the governmental unit and to provide the documentation required in this subsection to the selling dealer. A selling dealer who accepts in good faith the required documentation will not be held liable for any tax due on sales made to the governmental unit during the effective time period indicated on the certificate obtained from the purchaser. The selling dealer must maintain the required documentation in its books and records for the time period provided in subsection (6) of this rule.

(f) Payments made for the purchase or lease of items used for the operation or maintenance of a municipally owned golf course by an entity under contract with a municipality to maintain or operate a municipally-owned golf course are considered to be made directly by the municipality and are exempt when the following requirements are met:

1. Payment is made from golf course revenues or other funds provided by the municipality for use by the operator under contract,

2. The municipally-owned golf course is located in a county with a minimum population of 2 million residents,

3. Youth education programs are conducted on an ongoing basis at the municipally-owned golf course by a nonprofit organization exempt from federal income tax under s. 501(c)(3) of the Internal Revenue Code; and,

4. The municipally-owned golf course operator provides a copy of the municipality’s Florida Consumer’s Certificate of Exemption and a signed copy of the certificate provided in paragraph (4)(g). A selling dealer may verify the government entity’s certificate exemption number by obtaining a transaction authorization number through the Department’s online Certificate Verification System, as provided in paragraph (3)(f).

(g) The following is the certificate to be issued by a qualifying entity under contract with a municipality to maintain or operate a municipally-owned golf course to the selling dealer to make tax-exempt purchases or rentals:

EXEMPTION CERTIFICATE TO BE USED BY QUALIFYING

MUNICIPALLY-OWNED GOLF COURSE OPERATOR TO MAKE TAX EXEMPT PURCHASES

_______________________________ (Purchaser’s Name) certifies that the tangible personal property purchased or leased on or after _______________ is exempt from sales tax, because the property will be used for the operation or maintenance of __________________________

(a municipally owned golf course), and that the following requirements have been met:

• Payment is made from golf course revenues or other funds provided by __________ (the municipality) for use by the purchaser;

• The municipally-owned golf course is located in a county with a minimum population of 2 million residents; and,

• Youth education programs are conducted on an ongoing basis at the municipally-owned golf course by a nonprofit organization exempt from federal income tax under s. 501(c)(3) of the Internal Revenue Code.

The undersigned understands that if the items purchased or leased do not qualify for exemption, or if the payment requirements listed above are not met, the undersigned will be subject to sales and use tax, interest, and penalties. Purchaser further understands that when any person shall fraudulently, for the purpose of evading tax, issue to a vendor or to any agent of the state a certificate or statement in writing in which he or she claims exemption from the sales tax, such person, in addition to being liable for payment of the tax plus a mandatory penalty of 200% of the tax, shall be liable for fine and punishment provided by law for conviction of a felony of the third degree, as provided in Section 775.082, 775.083, or 775.084, F.S.

---

Purchaser’s Name (Print or Type) Date

---

Signature Title

---

Name and address of Municipally-Owned Golf Course

---

Municipality’s Consumer’s Certificate of Exemption Number

---

Transaction Authorization Number (Not necessary when selling dealer retains a copy of the municipality’s consumer’s certificate of exemption)

(5) Sales exempt based on the use of the property or services.

(a)1. The provisions of this subsection apply only to persons (other than the United States Government or any federal agency) who do not hold a Consumer’s Certificate of Exemption (Form DR-14) that purchase, lease, license, or rent tangible personal property or purchase services exempt from tax imposed under Chapter 212, F.S., based on the use of the property or service.

2. The provisions of this subsection do not apply to exemption affidavits required under the provisions of Chapter 212, F.S., and rule Chapter 12A-1, F.A.C.; suggested certificates provided in other rule sections in rule Chapter 12A-1, F.A.C.; or suggested certificates provided in Taxpayer Information Publications issued by the Department. The provisions of Chapter 212, F.S., Rule Chapter 12A-1, F.A.C., and Taxpayer Information Publications are available on the Department’s website at floridarevenue.com/taxes/tips. Dealers are required to maintain the exemption affidavits and exemption certificates, as well as the certificates and documentation required in this rule section, in their books and records for the time periods provided in subsection (6) of this rule.

3. The provisions of this subsection do not apply to the tax-exempt sale of utilities that are used by the purchaser for residential household purposes. Guidelines regarding the sale of utilities are provided in Rules 12A-1.053 and 12A-1.059, F.A.C.

4. The provisions of this subsection do not apply to purchases or rentals that are for resale. A person who desires to make purchases or rentals for resale must comply with the provisions of Rule 12A-1.039, F.A.C.

(b) Any person who is purchasing, renting, leasing, or licensing tangible personal property or services that qualify for an exemption from tax imposed under Chapter 212, F.S., based on the use of the property or service, must extend an exemption certificate to the selling dealer in lieu of paying tax. The exemption certificate must contain the purchaser’s name, address, the reason for which the use of the property or service qualifies for exemption based on its use, and the signature of the purchaser or an authorized representative of the purchaser. The selling dealer is only required to obtain one certificate for sales made for the purposes indicated on the certificate and is not required to obtain an exemption certificate for subsequent sales made for the exempt purpose indicated on the exemption certificate. The selling dealer must maintain the required exemption certificates in its books and records for the time period provided in subsection (6) of this rule.

(c) Selling dealers may contact the Department at 1(850)488-6800, Monday through Friday (excluding holidays), to verify the specific exemption specified by the purchaser. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(d)1. The following is a suggested format of an exemption certificate to be issued by a purchaser who does not hold a Consumer’s Certificate of Exemption, but who claims that the purchase, rental, lease, or license of the property, or the purchase of the services is for an exempt purpose. Exemption purposes listed on the suggested format that are not relevant to the purchaser may be eliminated from the certificate.

EXEMPTION CERTIFICATE

FOR EXEMPTIONS BASED ON THE PROPERTY’S USE

This is to certify that the tangible personal property purchased, leased, licensed, or rented, or services purchased, on or after ________ (date) from _____________________ (Selling Dealer’s Business Name) is purchased, leased, licensed, or rented for the following purpose as checked in the space provided. This is not intended to be an exhaustive list:

( ) Materials, containers, labels, sacks, bags, or similar items intended to accompany a product for sale at other than retail, as provided in Section 212.02(14)(c), F.S., by persons who are not required to be registered under Section 212.18(3), F.S.

( ) Incorporation into items of tangible personal property manufactured, produced, compounded, processed, or fabricated for one’s own use, as provided in Rule 12A-1.043, F.A.C.

( ) Printing of a publication exempt under the provisions of Section 212.08(7)(w), F.S.

( ) Items, such as paper and ink, that will be incorporated into and become a component part of a publication exempt under the provisions of Section 212.08(7)(w), F.S.

( ) Educational materials, such as glue, paper, paints, crayons, unique craft items, scissors, books, and educational toys, purchased by child care facilities outlined in Section 402.305, F.S., that hold a current license under Section 402.308, F.S., hold a current Gold Seal Quality Care designation as provided in Section 1002.945, F.S., and provide all employees with basic health insurance as defined in Section 627.6699(12), F.S., as provided in Section 212.08(5)(m), F.S.

( ) Motor vehicle rented or leased by a dealer who will provide the motor vehicle at no charge to a person whose motor vehicle is being repaired, adjusted, or serviced by the dealer, as provided in Section 212.0601(4), F.S.

( ) Other (include description and statutory citation): ___________________________________________________________

I understand that if I use the property or service for any nonexempt purpose, I must pay tax on the purchase or lease price of the taxable property or service directly to the Department of Revenue.

I understand that if I fraudulently issue this certificate to evade the payment of sales tax I will be liable for payment of the sales tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

The exemption specified by the purchaser may be verified by calling (850)488-6800.

Purchaser’s Name___________________________________________________________________________________________

Purchaser’s Address_________________________________________________________________________________________

Name and Title of Purchaser’s Authorized Representative ___________________________________________________________

Sales and Use Tax Certificate of Registration No. (if applicable) ______________________________________________________

By_________________________________________

(Signature of Purchaser or Authorized Representative)

Title _____________________________________________________________

(Title – only if purchased by an authorized representative of a business entity)

Date ________

2. As provided in subparagraph (a)2. of this subsection, there are other suggested formats for exemption certificates based on the use of the property or services that are provided in other sections of rule Chapter 12A-1, F.A.C., and in Taxpayer Information Publications (TIPs) issued by the Department. The following is a list of these suggested formats of exemption and the applicable rule section or TIP number that suggests the exemption certificate format. This list is not intended to be an exhaustive list:

a. Printed Materials to be Mailed Partly Outside Florida. See Rule 12A-1.027, F.A.C.

b. Printed Materials Purchased by a Nonresident Dealer. See Rule 12A-1.027, F.A.C.

c. Purchases of Film and Other Printing Supplies. See Rule 12A-1.027, F.A.C.

d. Boiler Fuels Used to produce Tangible Personal Property for Sale. See Rule 12A-1.059, F.A.C.

e. Export of Tangible Personal Property Irrevocably Committed to the Exportation Process Outside Florida. Rule 12A-1.0015, F.A.C., provides the documentation required to establish that tangible personal property has been committed to the exportation process.

f. Items Sold to Advertising Agencies. See Rule 12A-1.072, F.A.C.

g. Items for Agricultural Use or for Agricultural Purposes and Certain Farm Equipment. Rule 12A-1.087, F.A.C.

h. Items Sold or Leased; or Real Property Licensed or Leased to Motion Picture Educational Entities. See TIP 99A01-32, dated August 31, 1999.

i. “Qualifying Property” and/or “Overhead Materials” Sold to or Purchased by Government Contractors. See TIP 99A01-21, dated July 2, 1999.

j. People Mover Systems and Parts. See rule 12A-1.094, F.A.C.

k. Railroad Roadway Materials. See TIP 00A01-19, dated July 11, 2000.

(6) Records required. Selling dealers must maintain exemption affidavits, exemption certificates, copies of Consumer’s Certificates of Exemption, transaction authorization number, vendor authorization number, and other documentation required under the provisions of this rule, other rule sections of rule Chapter 12A-1, F.A.C., or suggested in Taxpayer Information Publications, until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S. Electronic storage by the selling dealer of the required affidavits, certificates, or other documentation through use of imaging, microfiche, or other electronic storage media will be sufficient compliance with the provisions of this subsection.

History

• Rulemaking Authority 212.08(7), 212.18(2), 213.06(1) FS. Law Implemented 95.091(3), 212.07(1), 212.08(6), (7), 212.085, 213.12(2) FS. History‒New 10-7-68, Amended 6-16-72, 9-28-78, 7-20-82, 4-29-85, Formerly 12A-1.38, Amended 8-10-92, 3-17-93, 9-14-93, 12-13-94, 10-2-01, 6-12-03, 7-31-03, 6-28-04, 11-6-07, 9-1-09, 5-9-13, 2-17-15, 1-11-16, 1-17-18, 12-29-25.

Fla. Admin. Code R. 12A-1.039 Sales for Resale

(1)(a) It is the specific legislative intent that each and every sale, use, storage, consumption, or rental is taxable, unless such sale, use, storage, consumption, or rental is specifically exempt. The exempt nature of the transaction must be established by the selling dealer.

(b) A sale for resale is exempt from the tax imposed by Chapter 212, F.S., only when the sale for resale is in strict compliance with the provisions of this rule. For purposes of this rule, a “sale for resale” includes the following sales, leases, or rentals when made to a person who is an active registered dealer. This is not intended to be an exhaustive list.

1. The sale of tangible personal property to a dealer when such property will be resold to the dealer’s customers.

2. The sale, lease, or rental of tangible personal property to a dealer when such property will be held exclusively for leasing or rental purposes, pursuant to paragraph 12A-1.071(2)(a), F.A.C.

3. The sale of taxable services identified in subsection 12A-1.0161(1), F.A.C., to a dealer when such services are being resold to the dealer’s customers under the conditions stated in subsection 12A-1.0161(4), F.A.C.

4. The lease or rental of real property to a dealer when such property will subsequently be leased, rented, or licensed as transient accommodations by the dealer’s tenants.

5. The sale of tangible personal property to a dealer when such property will be incorporated as a material, ingredient, or component part of tangible personal property that is being produced for sale by manufacturing, processing, or compounding.

6. The sale of inserts of printed materials that are distributed as a component part of a newspaper or magazine, as provided in Section 212.05(1)(g), F.S.

7. The sale of tangible personal property to a repair dealer, when such property will be incorporated into and sold as part of a repair of tangible personal property by such dealer.

8. The alteration, remodeling, maintenance, adjustment, or repair of tangible personal property (when labor and materials are provided) that is held in inventory for resale or exclusively for leasing purposes by a dealer.

(c) For purposes of this rule, “active registered dealer” means a person who is registered with the Department as a dealer for sales tax purposes and who is required to file a sales and use tax return during each applicable reporting period, as provided in Section 212.11(1), F.S.

(2) Annual resale certificates issued by the Department of Revenue.

(a) For each calendar year, the Department of Revenue will issue to each active registered dealer an Annual Resale Certificate (Form DR-13). A newly registered dealer will receive a Sales and Use Tax Certificate of Registration (Form DR-11) and an annual resale certificate. The business name and location address, the registration effective date, and the certificate number will be indicated on the Certificate of Registration.

(b) Dealers may obtain a copy of their Annual Resale Certificate through a secure link on the Department’s website at floridarevenue.com or may request a replacement by contacting the Department at (850)488-6800 Monday through Friday (excluding holidays). Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY). Address written requests to Account Management, Mail Stop 1-5730, Florida Department of Revenue, 5050 West Tennessee Street, Tallahassee, Florida 32399-0160.

(3) Except as provided in subsection (4), a dealer making a sale for resale is required to document the exempt sale by choosing one of the following three methods:

(a) Copies of annual resale certificates obtained by the selling dealer. The selling dealer who makes a tax exempt sale for the purposes of resale must obtain a copy of the purchaser’s current Annual Resale Certificate, or a transaction authorization number or a vendor authorization number issued by the Department.

1. A selling dealer may make sales for resale to a purchaser whose current Annual Resale Certificate is on file without seeking a new annual resale certificate for each subsequent transaction during that calendar year. A new annual resale certificate must be obtained each calendar year. Except for sales made to purchasers who purchase on account from the dealer on a continual basis, a selling dealer may only make exempt sales for resale to purchasers during the calendar year for which the purchaser’s Annual Resale Certificate appears valid on its face.

2. For sales made to purchasers who purchase on account from a dealer on a continual basis, the selling dealer may rely upon the Annual Resale Certificate beyond the expiration date of the certificate and is not required to obtain a new annual resale certificate each calendar year. For purposes of this paragraph, the phrase “purchase on account from a dealer on a continual basis” means that the selling dealer has a continuing business relationship with a purchaser and makes recurring sales on account to that purchaser in the normal course of business. For purposes of this paragraph, a sale “on account” refers to a sale where the dealer extends credit to the purchaser and records the debt as an account receivable, or where the dealer sells to a purchaser who has an established cash or C.O.D. account, similar to an “open credit account.” For purposes of this paragraph, purchases are made from a selling dealer on a “continual basis” if the selling dealer makes sales to the purchaser no less frequently than once in every twelve month period in the normal course of business.

(b) Transaction resale authorization number issued prior to or at the point-of-sale – valid for single transaction only. In lieu of obtaining a copy of the purchaser’s Annual Resale Certificate for each tax-exempt sale made for the purposes of resale, the selling dealer may obtain a transaction authorization number or a vendor authorization number from the Department.

1. A “transaction resale authorization number” must be obtained by the selling dealer prior to or at the point-of-sale:

a. By using the Department’s online Certificate Verification System at floridarevenue.com/taxes/certificates;

b. By using the Department’s FL Tax-Verify mobile application; or

c. By calling the Department’s automated nationwide toll-free telephone verification system at 1(877)357-3725.

2. When using the Department’s online Certificate Verification System, the dealer may key up to five (5) purchaser’s sales tax certificate of registration numbers into the system. When using the Department’s FL Tax-Verify mobile application or the Department’s automated nationwide toll-free verification system, the selling dealer is prompted to key in a single purchaser’s sales tax certificate of registration number. Each system will either issue a transaction resale authorization number or alert the selling dealer that the purchaser does not have a valid resale certificate. Selling dealers using the automated telephone verification system who do not have a touch-tone phone will be connected to a live operator Monday through Friday (excluding holidays) 8:00 a.m. to 5:00 p.m. (Eastern Time). Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

3. A transaction resale authorization number is not valid to exempt subsequent resale purchases or rentals made by the same purchaser. A selling dealer must obtain a new transaction resale authorization number for each and every resale transaction.

4. The selling dealer must document the transaction resale authorization number on the sales invoice, purchase order, or a separate form that is prepared by either the purchaser or the selling dealer.

5. Alternatively, in lieu of meeting the requirements of subparagraph 4., the transaction resale authorization number may be documented on a properly completed Uniform Sales and Use Tax Certificate-Multijurisdiction, as provided in subsection (8) of this rule.

(c) Vendor resale authorization number for regular customers who have previously submitted documentation to the selling dealer – valid for calendar year issued. In lieu of obtaining a transaction authorization number or a copy of the purchaser’s valid Annual Resale Certificate for each tax-exempt sale made for the purposes of resale, the selling dealer may obtain a vendor resale authorization number from the Department. This option is available to selling dealers throughout the calendar year without limitation.

1. The “vendor resale authorization number” is a customer-specific authorization number that will be valid for all sales for resale made to a particular customer during the calendar year.

2. To obtain vendor resale authorization numbers, the selling dealer may use the Department’s online Certificate Verification System at floridarevenue.com/taxes/certificates or send a written request to the Department.

a. The written request may be forwarded to the Department or may be submitted on Form DR-600013, Request for Verification that Customers are Authorized to Purchase for Resale (incorporated by reference in Rule 12A-1.097, F.A.C.), or by providing the following information: date of request; name of the dealer’s business; return address; name and telephone number of a contact person. The written request, or completed Form DR-600013, should be forwarded to: Florida Department of Revenue, Production Management, 5040 West Tharpe Street, Suite 202, Tallahassee, Florida 32303-7836, along with a list of the dealer’s regular customers for which the dealer has a valid Annual Resale Certificate on file or an outdated annual resale certificate on file. The electronic format for sending the customer data is provided in Form DR-600013 and may be obtained from the Department’s website at floridarevenue.com/forms or by calling the Department at (850)488-3516. In response to this request, the Department will issue to the selling dealer, using the same electronic medium, a list containing a unique vendor resale authorization number for each customer who is an active registered dealer.

b. The Department’s online Certificate Verification System allows the user to verify up to five purchasers’ sales tax certificate of registration numbers and to obtain a transaction authorization number for single sales made to each purchaser at once. The system also allows the user to upload a batch file of up to 50,000 accounts for verification of an annual resale certificate number and, 24 hours later, retrieve the file containing the vendor authorization numbers for sales made for the purposes of resale to each purchaser during the calendar year.

3. The selling dealer may make exempt sales for resale to a customer during the period in which the vendor resale authorization number for that customer is valid. Vendor resale authorization numbers are valid for the remainder of the calendar year during which they are issued. However, vendor resale authorization numbers issued by the Department in November or December shall be valid for the remainder of the current calendar year and the next calendar year.

(4) Sales of alcoholic beverages and certain motor vehicles; sales to out-of-state dealers.

(a) The sale of alcoholic beverages by distributors licensed by the Division of Alcoholic Beverage and Tobacco, Department of Business and Professional Regulation, to others who are also licensed by the Division of Alcoholic Beverage and Tobacco, Department of Business and Professional Regulation, are deemed to be sales for resale. The distributors are not required to meet the documentation requirements provided in subsection (3) of this rule.

(b) The sale of motor vehicles or recreational vehicles through a motor vehicle auction licensed by the Department of Highway Safety and Motor Vehicles, pursuant to Section 320.27(1)(c)4., F.S., to other motor vehicle dealers licensed by the Department of Highway Safety and Motor Vehicles under Section 320.27(2), F.S., are deemed to be sales for resale. The motor vehicle auction is not required to meet the documentation requirements provided in subsection (3) of this rule.

(c) Guidelines for sales of tangible personal property, except aircraft, boats, mobile homes, motor vehicles, and other vehicles to nonresident dealers who are not required to be registered in this state for resale outside Florida are provided in Rule 12A-1.0015, F.A.C.

(d) For sales of aircraft, boats, mobile homes, motor vehicles, and other vehicles, blanket resale affidavits from out-of-state motor vehicle dealers are acceptable in lieu of individual affidavits required under subsection 12A-1.007(6), F.A.C., for each sale of each motor vehicle to such out-of-state motor vehicle dealers.

(5) Burden of establishing exempt nature of sales for resale.

(a) A selling dealer who makes a sale for resale in good faith, and who complies with the requirements of subsections (3) and (4) of this rule, has met the burden of proof for establishing the exempt nature of the sale, and is relieved from any liability for tax due on that sale. Submission of copies of Annual Resale Certificates (Form DR-13) to the Department that are obtained after the sale from purchasers who were active registered dealers at the time of the sale will be considered sufficient compliance with subsection (3) when submitted during audit or protest, but will not be acceptable if submitted during any proceeding under Chapter 120, F.S., or in any circuit court action under Chapter 72, F.S.

(b)1. A sale that is not in compliance with the requirements of subsections (3) and (4) of this rule is presumed to be a retail sale, and the selling dealer will be liable for any applicable sales tax not collected and remitted on that sale.

2. For a sale that is not in compliance with the requirements of subsections (3) and (4), but that is made to a person who was an active registered dealer at the time of the sale, and it would be reasonable to assume, based on the nature of the purchaser’s business, that the sale was for the purposes of resale, the presumption that the sale is a retail sale can be overcome during an audit or protest.

3. A sale made to a person who was not an active registered dealer, other than a nonresident dealer, at the time of the transaction is a retail sale, and can never be considered a sale for resale. However, a selling dealer who accepts an Annual Resale Certificate that appears valid and current on its face at the time of sale will not be held liable for any tax due on this transaction, if it is later determined that the purchaser was not an active registered dealer at the time of the transaction.

(6) Records required. The selling dealer must maintain copies of receipts, invoices, billing statements, or other tangible evidence of sales, copies of Annual Resale Certificates (Form DR-13) and other certificates, and vendor resale authorization and transaction authorization numbers until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S. Electronic storage by the selling dealer of the copy of the annual resale certificate or other required documentation through use of imaging, microfiche, or other electronic storage media will be sufficient compliance with the provisions of this subsection.

(7) Provisions applicable to persons who claim the resale exemption.

(a) Annual Resale Certificates (Form DR-13) may only be used by purchasers who hold a valid Sales and Use Tax Certificate of Registration (Form DR-11) issued by the Department, and whose registration status is currently active. For dealers who have been in business for less than the full calendar year, the effective date of the Annual Resale Certificate will be the postmark or hand delivered date of the Sales and Use Tax Application for Certificate of Registration. The effective date is the same as that found on the Sales and Use Tax Certificate of Registration.

(b) A dealer whose Sales and Use Tax Certificate of Registration has been revoked or whose registration status has been inactivated or canceled by the Department is prohibited from purchasing, leasing, or renting taxable property or services for the purposes of resale exempt from tax. However, a selling dealer who accepts an Annual Resale Certificate that appears valid and current on its face at the time of sale will not be held liable for tax on this transaction, if it is later determined that the purchaser was not an active registered dealer at the time of the transaction.

(c) A purchaser who files returns on a consolidated basis (80 code) may extend, and the selling dealer may accept, a copy of the Annual Resale Certificate bearing the purchaser’s consolidated sales tax registration number (80 code number), in lieu of extending a copy of the annual resale certificate for each active location that is reported under the consolidated sales tax registration number (80 code number).

(d) For dealers who report sales tax using a county-control number, the Annual Resale Certificate will only be issued to the active reporting number(s) within each county. Dealers who report using a county-control number must use the annual resale certificate issued to the active reporting number(s) to make purchases for resale, except dealers who file returns under a consolidated sales and use tax registration number (80 code). Sales tax numbers issued to the individual locations within a county are inactive, and will not be issued an annual resale certificate.

(e) Wholesalers and certain other sales tax dealers who are currently on an inactive reporting status will need to contact the Department at (850)488-6800 to have their sales tax registration number activated in order to obtain the Annual Resale Certificate and make exempt purchases for resale. By activating the sales tax registration number, the dealer will then be required to file a sales tax return during each applicable reporting period, as provided in Section 212.11(1), F.S.

(f) Purchasers who are holders of a Direct Pay Permit, Temporary Tax Exemption Permit, or other permits or exemption certificates issued pursuant to Chapter 212, F.S., are not required to extend or provide copies of their Annual Resale Certificate to the selling dealer to make tax exempt purchases authorized under the Direct Pay Permit, Temporary Tax Exemption Permit, or other exemption certificates or permits issued pursuant to Chapter 212, F.S.

(g) A person who complied with the provisions of this rule when making a purchase or rental of tangible personal property that is intended for resale, but then uses, consumes, distributes, or stores for use or consumption in this state, the tangible personal property in a manner inconsistent with the purposes described in paragraph (1)(b) of this rule, is required to pay use tax as provided in Section 212.05(1)(b), F.S.

(h) Any person who, for the purpose of evading tax, uses an Annual Resale Certificate or signs a written statement claiming an exemption from sales tax knowing that tax is due on the property or services at the time of purchase or rental, is subject to the civil and criminal penalties provided in Section 212.085, F.S.

(i) The resale exemption shall also apply to the importation of tangible personal property into this state for resale in this state. A dealer who imports tangible personal property into this state for resale must be an active registered dealer at the time the property is imported into this state to meet the resale exemption requirements. The determination whether a particular item of tangible personal property imported into this state is for resale is based on the same criteria described in paragraph (1)(b) of this rule.

(8) Use of uniform sales and use tax certificate ‒ multijurisdiction. The Department will allow purchasers to use the Multistate Tax Commission’s Uniform Sales and Use Tax Certificate-Multijurisdiction. However, the use of this uniform certificate must be in conjunction with the telephonic or electronic authorization number method described in paragraph (3)(b) or (c) of this rule.

History

• Rulemaking Authority 212.07(1)(b), 212.18(2), 213.06(1) FS. Law Implemented 95.091(3), 212.02(14), 212.05(1)(b), (i), 212.07(1), 212.085, 212.13(5)(c), (d), 212.18(2), (3), 212.186, 212.21(2), 213.053(10) FS. History–New 10-7-68, Amended 1-7-70, 6-16-72, 9-26-77, 7-20-82, 4-12-84, Formerly 12A-1.39, Amended 1-2-89, 9-14-93, 12-13-94, 10-2-01, 6-12-03, 11-6-07, 9-1-09, 5-9-13, 2-17-15, 1-11-16, 12-29-25.

Fla. Admin. Code R. 12A-1.040 Containers and Other Packaging Materials; Gift Wrapping

(1) SCOPE. This rule provides when items intended to accompany a product for sale are not subject to tax. Materials, containers, labels, sacks, bags, or similar items intended to accompany a product for sale are not subject to tax under the requirements provided in Section 212.02(14)(c), F.S., as outlined below.

(2) Materials used for packaging property for sale.

(a) The sale, use, storage, or consumption of materials, containers, labels, sacks, bags, or similar items that are intended to accompany a product sold to a customer and to be used one time only for packaging tangible personal property for sale is not subject to tax when:

1. Delivery of the product would be impracticable because of the character of the contents; or

2. Such items are used for the convenience of the customer.

(b) The sale, use, storage, or consumption of materials, containers, labels, sacks, bags, or similar items used for packaging in the process of providing a service subject to tax under Chapter 212, F.S., is not subject to tax.

(c) Dealers who are registered with the Department may purchase materials, containers, labels, sacks, bags, or similar items intended to be used in the manner provided in paragraph (a) or (b) tax-exempt by issuing a copy of the dealer’s Annual Resale Certificate to the selling dealer at the time of purchase, as provided in Rule 12A-1.039, F.A.C. Persons who are not required to register with the Department as a dealer under Section 212.18(3), F.S., must extend an exemption certificate to purchase such items tax-exempt. A suggested exemption certificate is provided in subsection (5) of Rule 12A-1.038, F.A.C.

(d) The following is a nonexhaustive list of materials that, when used as provided in paragraph (a) or (b), are not subject to tax:

1. Containers, such as bags, barrels, baskets, bottles, boxes, cans, carboys, cartons, cases, crates, cylinders, drums, kegs, pallets, racks, reels, sacks, skids, or spools.

2. Items used inside containers and packages to shape, stabilize, and protect the contents of the packaged tangible personal property, such as bubble wrap, excelsior, preservative materials, wax paper, wrapping papers, or wastepaper.

3. Materials used to close or otherwise secure the containers, such as binding materials, carboys, cartons, cellophane, coating materials, cores, crates, glue, gummed tape, staples, strapping, string, tape, twine, wrapping paper, wire, or wire bands.

4. Materials used to provide instructions regarding the shipping of the container, such as gummed labels or tags.

(e) The sale, purchase, use, storage, or consumption of dunnage is subject to tax at the time of purchase. Dunnage is not delivered to the purchaser with the package and its contents, and it is retained by the transporter or shipper. “Dunnage” includes items that are used by the transporter or shipper under, outside, and between packages to protect the packages and their contents from damage, motion, shock, or breakage while being transported or delivered to the purchaser. Examples of dunnage are blocks, lumber, and other materials used for bracing, blocking, skidding, shoring, holding, or protecting cargo during transport.

(f) Examples:

1. Toothpaste may be sold at retail in a tube enclosed in a box. The tube of toothpaste is placed in a box that will accompany the toothpaste when sold to the consumer. Multiple units of boxes are placed in shipping containers by the manufacturer. Labels are placed on the shipping containers identifying the product and providing shipping instructions. The manufacturer then places the labeled boxes on a pallet and covers them with shrink-wrap for shipment. The pallets are not returnable to the manufacturer when the toothpaste arrives at its destination. The toothpaste manufacturer may purchase the tubing materials, boxes, shipping containers, labels, pallets, and shrink-wrap tax-exempt.

2. Coat hangers and garment covers that are delivered with the clothing to the purchaser are packaging materials that accompany the product sold to the customer. However, coat hangers and garment covers used on display racks in stores that are retained by the store do not accompany the clothing to the customer are subject to tax.

(3) Packaging materials used when no tangible personal property is sold. The purchase of materials, containers, labels, sacks, bags, or similar items is subject to tax when purchased by any person who does not sell tangible personal property to its customers. For example, bags, boxes, hangers, wrapping paper, and twine purchased for use by a laundry, dry cleaner, or any other person not selling tangible personal property are subject to tax.

(4) Materials used for furnishing or serving food products or beverages.

(a) Materials, containers, labels, sacks, bags, or similar items that accompany a food product or drink sold to a customer and are used one time only for packaging the food product or for the convenience of the customer are not subject to tax. The following is a nonexhaustive list of such items:

1. Bags for bread or produce; bag ties; egg cartons or crates; cardboard 6-pack and 12-pack lift cartons; skewers; ice, dry ice, and salt placed directly into the packaging container of perishable food; oil used to line the inside of meat packaging containers;

2. Paper, plastic, plastic-coated, styrofoam bags, boxes, bowls, cups, dividers, liners, lids, plates, platters, trays, and other similar food and beverage containers;

3. Aluminum foil served with food products; butter chips; single-use baking dishes; steak markers, toothpicks, toothpick frills, film wrap; disposable utensils, straws, stirrers, napkins, leftover bags, boxes, or other containers.

(b) Cups, straws, plastic stirrers, and similar items used to provide beverages or other food products free to customers are subject to tax. Such items are not used for furnishing or service food products or beverages for sale.

(5) Labels, tags, and instructional materials.

(a)1. Labels, tags, and name plates, including the printing of these items, are not subject to tax when they remain affixed to tangible personal property offered for sale or affixed to the container containing tangible personal property prepared for shipment or delivery and:

a. Furnishes information as to the nature, quantity, maker, price, size, operation, or maintenance of the tangible personal property for sale; or

b. Furnishes information as to the destination or the carrying instructions for the package during shipment.

2. For example, shipping labels used on packages of tangible personal property purchased by customers containing a customer’s name and address or carrying instructions, such as “Do Not Crush,” “This Side Up,” or “Fragile,” are exempt.

(b) Bar codes and labels containing bar codes that are placed on packages by, or on behalf of, the transporter or shipper for purposes of tracking the movement of the package in transit are subject to tax.

(c) Labels, tags, and name plates that do not accompany tangible personal property for sale are subject to tax. For example, labels sold to businesses to be placed on their shelves or display racks are subject to tax.

(d) Price tags that accompany tangible personal property when sold to the retail consumer are exempt. Price tags retained by a retail merchant are subject to tax. Price tags attached to merchandise offered for sale that are removed from the merchandise and retained by the seller at the time of sale are subject to tax.

(e) Direction sheets, instruction books, pamphlets, or manuals that accompany a product to the final consumer and provide instructions on how to assemble, use, or care for the product are exempt. Technical manuals that do not accompany the product to the final consumer are subject to tax.

(f) Brochures, catalogs, price lists, point-of-sale advertising that accompany products being sold to advertise other products for sale, and displays and display containers used to display items for sale are not materials used for packaging tangible personal property for sale and are subject to tax.

(6) Deposits for reuseable containers.

(a)1. Deposits charged for reusable containers, such as barrels, drums, kegs, pallets, or spools, that are to be returned by the purchaser to the selling dealer upon removal of the contents from the container are not subject to tax when:

a. The amount of the deposit is separately itemized on the purchaser’s bill, invoice, or other tangible evidence of sale;

b. The total amount of the deposit is refunded to the purchaser when the container is returned to the selling dealer;

c. Title to the container is retained by the selling dealer;

d. The container is used only to contain the tangible personal property sold to the purchaser while in the process of delivery or conveyance to the purchaser; and,

e. The selling dealer retains records to identify which customers are holding the containers and which customers have returned the containers.

2. Example: A manufacturer ships its products to purchasers on pallets. The contents of the shipment are secured to the pallets by wire banding. The pallets are designed by the manufacturer to be used for more than one shipment, bear the name of the manufacturer, and are assigned an inventory number. When the manufacturer ships merchandise to a customer, a deposit is separately itemized on the customer’s invoice to assure the return of the identified pallets. The separately itemized deposit is not subject to tax. The purchase or fabrication of the pallets by the manufacturer is subject to tax.

(b) See Rule 12A-1.087, F.A.C., for tax-exempt portable containers, or moveable receptacles in which portable containers are placed, when used for harvesting or processing farm products.

(7) Charges for packaging materials. When charges for packaging materials are separately itemized from the sales price of tangible personal property on the customer’s bill, invoice, or other tangible evidence of sale, the charge for packaging materials is a part of the sales price of the tangible personal property.

(8) Gift wrapping.

(a) The total charge for gift wrapping merchandise is subject to tax, whether charged by the seller of the merchandise or by any other person. Materials, such as paper, ribbon, bows, or tape, used in gift wrapping merchandise may be purchased tax-exempt by a dealer registered with the Department. The purchasing dealer is required to issue a copy of the dealer’s Annual Resale Certificate to the selling dealer at the time of purchase, as provided in Rule 12A-1.039, F.A.C.

(b) Tax is due on the materials used by the dealer in gift wrapping merchandise at no charge to the customer.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(14)(b), (c), 212.05(1)(b), 212.07(1)(b) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.40, Amended 6-1-09.

Fla. Admin. Code R. 12A-1.041 Photographers and Photo Finishers; Sales by Public Officials of Public Records

(1) Photographers are engaged in the sale of tangible personal property when developing or printing pictures for sale, or selling completed photographs or photostats or other tangible personal property. Such persons are required to collect and remit tax on the total amount charged to the customer for the sale of such tangible personal property.

(2) The charge for retouching, tinting, or coloring photographs is subject to tax.

(3) Chemicals used to clean tanks, equipment, and similar items are taxable. Chemicals which are not incorporated into and do not become a component of the finished product are taxable when purchased by photograph finishers for use in developing film and printing pictures for sale. Chemicals which are incorporated into and become a component of the finished product are exempt when purchased by photograph finishers for use in developing film and printing pictures for sale.

(4) Sitting fees charged by photographers are taxable as part of the sales price when the transaction is in conjunction with a sale of tangible personal property. The charge for sitting fees that are not in conjunction with the sale of tangible personal property is not subject to tax.

(5)(a) The fee prescribed by law, or the actual cost of duplication, for providing copies of public records by public officers or public employees under Chapter 119, F.S., is exempt from sales tax.

(b) Actual cost of duplication means:

1. The cost of the materials and supplies used to duplicate the record, but does not include the labor cost or overhead cost associated with such duplication; unless

2. The nature or volume of records is such as to require extensive personnel assistance or resources, in which case a special service charge, based on the additional cost incurred, may be added to the actual cost of duplication; however

3. The charge for copies of county maps or aerial photographs supplied by county constitutional officers may also include a reasonable charge for the labor and overhead associated with its duplication; and,

4. The fee charged by custodians of public records for remote electronic means, granted under a contractual arrangement with a user, which fee shall include the direct and indirect costs of providing such access.

(c) The charge for copying documents and other papers which are not public records and which can be copied by a dealer engaged in such business represents the sale of tangible personal property and is taxable.

Cross Reference – Rule 12A-1.072, F.A.C.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 119.07, 212.02(15)(c), 212.08(7)(v) FS. History–New 10-7-68, Amended 12-8-68, 1-17-71, 6-16-72, 12-11-74, 5-27-75, Formerly 12A-1.41, Amended 7-30-91, 8-10-92, 6-19-01, 8-1-02, 1-11-16.

Fla. Admin. Code R. 12A-1.042 Dry Cleaners and Laundries

(1) Persons operating dry cleaning establishments and laundries are not required to collect the tax on the charge they make to the customer for dry cleaning and laundry services. They are purchasers for use or consumption of tangible personal property used or consumed in the rendering of such services and are required to pay the tax to their dealers on all such purchases, including soap, soap powders, naphtha and detergents.

(2) Dry cleaners and laundries shall register as dealers and charge tax to the customer on charges for altering, repairing, dyeing, waterproofing, mothproofing and similar services. Such dealers shall furnish their suppliers with resale certificates and shall not pay tax on the purchase of materials and supplies used in performing such work.

(3) Self-service laundries providing their customers the privilege of using washing machines for a fixed charge shall not charge tax on the use of these machines.

Cross Reference – Rule 12A-1.040, F.A.C.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(14)(a), (c), (16) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.42.

Fla. Admin. Code R. 12A-1.043 Manufacturing

(1)(a) Any person who manufactures, produces, compounds, processes, or fabricates in any manner an article of tangible personal property for his own use shall pay a tax upon the cost of the property manufactured, produced, compounded, processed, or fabricated without any deduction therefrom on account of the cost of material used, labor or service costs, or transportation charges.

(b) Elements of cost will include the following materials, labor, service, or transportation costs that are attributable to manufacturing, producing, compounding, processing, or fabricating an article of tangible personal property for one’s own use and which are properly chargeable to the cost of the product under generally accepted cost accounting standards.

1. Material costs include the following:

a. All direct materials and related freight costs that are physically observable as being identified to the finished tangible personal property, that are consumed in producing the property, or that become a component or ingredient of the finished property. See paragraphs (c) and (d) below, for calculating the tax on the cost of the finished product when sales tax has or has not been paid on direct materials.

b. Material handling and warehousing of direct materials and goods in process.

c. Manufacturer’s excise taxes on materials.

2. Labor costs include the following:

a. The total direct labor costs for employees or contract labor that are allocable to the production of the finished property, including the entire amount of payroll burden, which includes but is not limited to overtime premium, vacation and holiday pay, sick leave pay, shift differential, payroll taxes, payments to a supplemental unemployment benefit plan, and employee fringe benefits.

b. Compensation of officers, to the extent it is allocated to production and not administrative functions.

c. Costs of service, engineering, design or other support employees allocated to production.

3. Service costs include the costs of non-employee services that are allocated to the production of the tangible personal property, such as engineering, design or similar consulting or professional services.

(c) Direct materials on which the tax has been paid shall not be included when computing the tax on the cost of items of tangible personal property manufactured, produced, compounded, processed, or fabricated.

(d) Persons who manufacture, produce, compound, process, or fabricate items of tangible personal property for resale or for their own use or consumption may purchase direct materials tax exempt but shall include the cost of the direct materials when computing tax on the cost of the items so manufactured, produced, compounded, processed, or fabricated for such persons’ own use or consumption. If tax has been paid on the direct materials, the method described in paragraph (c) should be used when computing the tax on the cost of the items so manufactured, produced, compounded, processed, or fabricated.

(e)1. To purchase direct materials tax exempt, dealers registered with the Department to sell tangible personal property may extend a copy of their Annual Resale Certificate (Form DR-13) to the selling dealer in lieu of paying tax at the time of purchase. The cost of such materials is subject to tax on the cost of the items so manufactured, produced, compounded, processed, or fabricated, as provided in paragraph (d).

2. Persons who do not sell tangible personal property are not required to register with the Department as a dealer. However, to purchase direct materials tax exempt, such persons may extend an Exemption Certificate, as provided in Rule 12A-1.038, F.A.C., to the selling dealer in lieu of paying tax at the time of purchase. The cost of such materials is subject to tax on the cost of the items so manufactured, produced, compounded, processed, or fabricated, as provided in paragraph (d).

(f) The tax is due at the time the article of tangible personal property is manufactured, produced, compounded, processed, or fabricated for use or consumption, and such tax shall be remitted to the Department of Revenue in accordance with Rule 12A-1.056, F.A.C.

(2) Fabrication labor shall not be taxable where a person is using his own equipment and his own personnel, for his own account, as a producer, subproducer, or coproducer of a qualified motion picture. “Qualified motion picture” means all or any part of a series of related images, either on film, tape, or other embodiment, including but not limited to, all items comprising part of the original work and film-related products derived therefrom as well as duplicates and prints and all sound recordings created to accompany a motion picture, which is produced, adapted, or altered for exploitation in, on, or through any medium or device and at any location primarily for entertainment, commercial, industrial, or educational purposes.

(3)(a) Any person who manufactures factory-built buildings for his own use in the performance of contracts for the construction or improvement of real property shall pay a tax only upon the person’s cost price of items used in the manufacture of such buildings.

(b) For the purpose of this exemption, “factory-built building” means a structure manufactured in a manufacturing facility for installation or erection as a finished building; “factory-built building” includes, but is not limited to, residential, commercial, institutional, storage, and industrial structures.

(4) Any person who manufactures asphalt for his own use shall calculate and remit the use tax on such asphalt, as provided in subsection 12A-1.051(12), F.A.C.

(5)(a)1. No tax shall be imposed upon any person who manufactures or produces electrical power or energy, steam energy, or other energy, when such power or energy is used directly and exclusively in the operation of machinery or equipment that is used to manufacture, process, compound, produce, fabricate, or prepare for shipment tangible personal property for sale or to operate pollution control equipment, maintenance equipment, or monitoring or control equipment, used in such operations.

2.a. Tax is not imposed upon electrical power or energy, steam energy, or other energy manufactured or produced for a person’s own use at a single location, when such power or energy is used directly and exclusively at such location, or at other locations if the energy is transferred through facilities of the owner, in the operation of machinery or equipment that is used to manufacture, process, compound, produce, fabricate, or prepare for shipment tangible personal property for sale or to operate pollution control equipment, maintenance equipment, or monitoring or control equipment used in such operations.

b. Electrical power or energy manufactured or produced for a person’s own use transmitted and distributed by a public utility to such person’s facility at another location is taxable based upon the cost price of such power or energy without any deduction therefrom on account of the cost of material used, labor or service costs, or transportation charges.

3. Electrical power or energy manufactured or produced for a person’s own use that is used for space heating, lighting, office equipment, air conditioning, or any other nonmanufacturing, nonprocessing, noncompounding, nonproducing, or nonfabricating activity is taxable based upon the cost price of such power or energy without any deduction therefrom on account of the cost of material used, labor or service costs, or transportation charges.

(b) Tax is not imposed upon the manufacture or production of electrical power or energy when such electrical power or energy is consumed or dissipated in the transmission or distribution of electrical power or energy for resale.

(6)(a) Tangible personal property manufactured, produced, compounded, processed, or fabricated for use directly and solely in research or development, and machinery and equipment used predominantly for research or development purposes are exempt when the research or development has one of the following as its ultimate goal:

1. Basic research or the advancement of knowledge or technology in a scientific or technical field of endeavor.

2. The development of a new product, the improvement of an existing product, or the development of new uses of an existing product, whether or not the product is offered for sale.

3. The design and development of prototypes, whether or not a resulting product is offered for sale.

(b) For the purpose of this subsection:

1. “Machinery and equipment” includes, but is not limited to, molds, dies, machine tooling, and other appurtenances or accessories for machinery and equipment, testing and measuring equipment, test beds, and computers and software. Such machinery and equipment may be purchased, leased, or self-fabricated. If self-fabricated, the machinery and equipment includes the materials and labor for the design, fabrication, and assembly of such items.

2. “Predominantly” means at least 50 percent of the time.

3. “Product” means any item, device, technique, prototype, invention, or process, which is, was, or may become, commercially exploitable.

(c) Research or development does not include ordinary testing or inspection of materials or products used for quality control, market research, efficiency surveys, consumer surveys, advertising and promotions, management studies, or research in connection with literature, history, social science, psychology, or other similar nontechnical activities.

(d)1. Materials and labor may be purchased tax-exempt when the purchaser extends an exemption certificate to the vendor or supplier certifying that the materials and labor will be used directly and solely for research or development purposes, as provided in Section 212.052, F.S.

2. The following is a suggested format for an exemption certificate for purchases of materials and labor:

EXEMPTION CERTIFICATE

ITEMS OF TANGIBLE PERSONAL PROPERTY AND LABOR

USED IN RESEARCH OR DEVELOPMENT

This is to certify that purchases of tangible personal property or labor on or after ________ (date) from ________ (Selling Dealer’s Business Name) will be directly and solely used in research or development activities, as provided in Section 212.052, F.S. These research or development activities are located at:

---

(Street)

---

(City and State)

I understand that if I fraudulently issue this certificate to evade the payment of tax, I will be liable for payment of the tax plus a penalty of 200% of the tax and be liable for fine and punishment provided by law for conviction of a felony of the third degree, as provided in Section 775.082, 775.083 or 775.084, F.S.

Under penalties of perjury, I declare that I have read the foregoing document and that the facts stated in it are true to the best of my knowledge and belief.

---

Purchaser’s Name (Print or Type) Purchaser’s Address

---

Signature and Title Florida Sales and Use Tax Number (if applicable)

---

Date Federal Employer’s Identification Number

(if applicable)

(e)1. Machinery and equipment, including materials and labor used in the self-fabrication of machinery and equipment, may be purchased or leased tax-exempt when the purchaser extends an affidavit to the vendor or supplier stating that the item(s) will be used predominantly for research or development purposes, as provided in Section 212.08(18), F.S.

2. The following is a suggested format of an affidavit to be provided to the selling dealer or lessor:

AFFIDAVIT

MACHINERY AND EQUIPMENT USED IN RESEARCH OR DEVELOPMENT

I, the undersigned individual, hereby declare that the purchase(s) or lease(s) of machinery and equipment, including materials and labor used in the self-fabrication of machinery and equipment, on or after ________ (date) from ________ (Selling Dealer’s Business Name), will be used predominantly in research or development activities, as provided in Section 212.08(18), F.S.

These research or development activities are located at:

---

(Street)

---

(City and State)

I understand that if I fraudulently issue this affidavit to evade the payment of Florida sales tax, I will be liable for payment of the tax plus a penalty of 200% of the tax and be subject to conviction of a third degree felony.

Under penalties of perjury, I declare that I have read the foregoing affidavit and that the facts stated in it are true to the best of my knowledge and belief.

---

Purchaser’s Name (Print or Type)

---

Signature and Title

---

Date

(f) Instead of furnishing an exemption certificate, as provided in paragraph (d), or an affidavit, as provided in paragraph (e), any purchaser who holds a valid Sales and Use Tax Direct Pay Permit, as provided in Rule 12A-1.0911, F.A.C., may extend a copy of the permit to the selling dealer to make purchases tax-exempt under this subsection.

(g) When a prototype or product of research or development is used by the developer for any purpose other than research or development, including being offered for sale, it is subject to tax.

History

• Rulemaking Authority 212.052(5), 212.08(18)(c), 212.18(2), 213.06(1) FS. Law Implemented 212.02(4), (7), 212.052, 212.06(1), 212.08(18), 212.085, 212.12(12), 366.051 FS. History–New 10-7-68, Amended 1-7-70, 6-16-72, 1-19-74, 12-26-83, Formerly 12A-1.43, Amended 1-2-89, 2-28-90, 3-20-96, 7-27-99, 10-2-01, 9-15-08, 12-31-20.

Fla. Admin. Code R. 12A-1.044 Vending Machines

(1)(a) For purposes of this rule, the terms “vending machine” and “vending machine operator” shall have the meaning ascribed to them in Section 212.0515(1), F.S.:

(b) For the purpose of this rule, possession of a vending machine means either actual or constructive possession and control. To determine if a person has constructive possession and control the following indicia shall be considered: right of access to the machine; duty to repair; title to the machine; risk of loss from damages to the machine; and the party possessing the keys to the money box. If, based on the indicia set out above, the owner of the machine has constructive possession and control, but the location owner has physical possession of the machine, then the operator shall be determined by who has the key to the money box and is responsible for removing the receipts. If both the owner of the machine and the location owner have the keys to the money box and are responsible for removing the receipts, then they shall designate in writing who shall be considered the operator. Absent such written designation, the owner of the machine shall be deemed to be the operator.

(2) All sales made through vending machines of food, beverages, or other items are taxed in the manner provided in Section 212.0515(2), F.S., except as provided in paragraphs (a) and (b). See subsection (2) of Rule 12A-15.011, F.A.C., for the effective tax rates for sales made through vending machines in counties imposing a discretionary sales surtax.

(a) Receipts from vending machines owned and operated by churches or synagogues are exempt.

(b) Food and drinks sold for human consumption for 25 cents or less through a coin-operated vending machine sponsored by a nonprofit corporation under s. 501(c)(3) or (4) of the Internal Revenue Code of 1986, as amended, are exempt.

(c) Food and beverages sold or dispensed through vending machines or other dispensing devices located in the student lunchroom, student dining room, or other area designated for student dining in state-supported or parochial, church, and nonprofit private schools operated for and attended by pupils of grades K through 12 are exempt. See Rule 12A-1.0011, F.A.C.

(3) Registration. Owners or operators of vending machines must obtain a separate Sales and Use Tax Certificate of Registration (Form DR-11) for each county in which the machines are located. One Sales and Use Tax Certificate of Registration is sufficient for all the owner’s or operator’s machines within a single county. See Rule 12A-1.060, F.A.C. Registration violations may be reported by calling 1(800)352-9273.

(4) Purchases or leases of vending machines.

(a) The purchase or repair of a vending machine is subject to tax.

(b) The purchase of machines, machine parts and repairs, and replacements thereof that are a component part of the machine, by the machine owner or lessor for exclusive rental is exempt. The machine owner or lessor must register with the Department and must issue a copy of the dealer’s Annual Resale Certificate to the selling dealer to purchase these items tax exempt for the purposes of leasing or renting the machine.

(c) The lease or license to use a vending machine to an operator is taxable. The tax is to be collected by the machine owner or lessor from the operator. When there is an oral or written agreement for the lease or license to use a vending machine with a location owner (where the machines are located), the location owner (lessee) is required to be the operator of the machine. Sales tax shall be collected by the machine owner or lessor from the operator based on the amount the machine owner receives for the lease or license to use the machine.

(d) The purchase of machines, machine parts and repairs, and replacements thereof that become a component part of the machine, by the machine owner is taxable.

(5) The following examples are intended to provide further clarification of the provisions of this section:

(a) Example: When a bottler removes a drink vending machine from inventory to be placed at a location on a “fill service basis” and collects a “service charge” from the location operator for keeping the machine stocked with drinks it sells the location operator, the bottler must remit to the Department of Revenue a use tax on the value of such vending machine of 6 percent when title to the vending machine remains with the bottler and the service charge collected covers stocking the machine, making necessary repairs, repainting, and maintenance. The service charge is not taxable. All parts used in repairing the machines are taxed at 6 percent as use tax. The tax on all merchandise sold through the machine at 10 cents per bottle or more must be reported to the Department by the location operator.

(b) Example: A bottler who removes from inventory a drink vending machine to be placed at a location on a “full service basis” and pays the location owner consideration for the right to place the machine at the location must remit to the Department of Revenue a use tax on the value of the vending machine when it is removed from inventory. All parts used in repairing the machine are taxed at 6 percent as use tax. The bottler is considered to be the operator of the machine. The tax due on all merchandise sold through the machine at 10 cents per bottle or more must be reported by the bottler.

(c) Example: When a bottler removes from inventory a drink vending machine to be placed at a location under an agreement where the location owner is the operator, the bottler, as a registered dealer, may extend a copy of the dealer’ Annual Resale Certificate (Form DR-13) to purchase vending machines or component parts for exclusive rental. The rental of the vending machine may either be on a per case basis or a flat monthly rate. In such instances, the tax must be collected by the bottler and remitted at the rate of 6 percent of the amount received as rental. Also, tax is due on all merchandise sold through the machine by the location owner (operator).

(6) If any vending machine used on a full service basis or for exclusive rental is later sold as a “used” machine, the sale to the purchasing customer is subject to tax.

History

• Rulemaking Authority 212.0515, 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(h), 212.0515, 212.054(1), (2), (3)(l), 212.055, 212.07(1), (2), 212.08(1), (7), (8), 212.11(1), 212.12(2), (3), (4), (9), 212.18(2), (3) FS. History‒New 10-7-68, Amended 6-16-72, 1-10-78, 7-20-82, Formerly 12A-1.44, Amended 12-13-88, 5-11-92, 3-17-93, 9-14-93, 12-13-94, 3-20-96, 7-1-99, 6-19-01, 11-1-05, 1-12-11, 5-9-13, 1-17-18, 8-15-21, 1-1-24, 12-29-25.

Fla. Admin. Code R. 12A-1.045 Transportation Charges

(1) “Transportation charges” include carrying, delivery, freight, handling, pickup, shipping, and other similar charges or fees.

(2) Transportation charges which are not separately stated on an invoice or bill of sale, but are included in the sales price of taxable tangible personal property, are subject to tax.

(3)(a) Where the seller agrees to deliver tangible personal property to some designated place and the purchaser cannot elect to avoid the charge for transportation services, the charge for the transportation service is subject to tax, even if separately stated on an invoice or bill of sale.

(b)1. Example: X is in the business of selling liquefied petroleum (L.P.) gas, gas tanks, and other related equipment. Y agrees to purchase a 500 gallon above ground tank from X to be placed at Y’s place of business and to make future purchases of L.P. gas from X. X requires a delivery fee of $25 for each L.P. gas tank that it sells and will not allow the customer to pick up the tank nor make arrangements with any other transportation company to deliver the tank to the designated place. Since the $25 delivery fee is required by the seller and is not an option to the buyer, the invoice correctly includes the $25 delivery charge in the amount subject to tax as follows:

500 Gallon L.P. Gas Tank $500.00

Delivery Fee $25.00

Total Taxable Amount $525.00

2. Example: X places an order to purchase a jacket for $100 with a mail order company. The mail order company’s policy is that all items are shipped F.O.B. destination through the U.S. mail or by common carrier as the method of shipping its merchandise to its customers. The mail order company makes a separate charge to all of its customers for transportation based on the weight of the item sold and the distance required to deliver the item to the desired place. Since the method of shipping is mandated by the mail order company, the transportation charge becomes a part of the sales price. The invoice correctly includes the transportation charge in the amount subject to tax as follows:

Jacket #5054 $100.00

Shipping and Handling Charges $8.75

Total Taxable Amount $108.75

(4)(a) The charge for transportation services is not subject to tax when both of the following conditions have been met:

1. The charge is separately stated on an invoice or bill of sale; and,

2. The charge can be avoided by a decision or action solely on the part of the purchaser. (See subsection (5) for shipping of tangible personal property F.O.B. origin.)

(b)1. Example: B is in the business of renting furniture and appliances. B rents a refrigerator to Customer C. B’s policy is to allow customers to elect whether to pick up the rental property at B’s place of business or to agree to a $25 delivery fee which B separately states on the customer’s invoice. Since the separately stated $25 delivery fee could be avoided by a decision or action on the part of C, the $25 delivery fee is not subject to tax.

2. Example: D is in the business of selling appliance repair parts. E desires to purchase a hot water heater element from D. D must order the hot water heater element for E from a wholesaler. D requires E to pay the transportation charges only if E elects to have the item shipped directly from the wholesaler to E’s residence. E requests that D instruct the wholesaler to ship the hot water heater element directly to E’s residence. Since the transportation charge is incurred at the election of E and could have been avoided by E, the invoice correctly excludes the transportation charge from the amount subject to tax as follows:

Water Heater Element $25.00

Total Taxable Amount $25.00

Shipping and Handling Charges $3.25

3. Example: X places an order for a piece of equipment for $300 with a mail order company. The mail order company allows X to choose a method of shipping or will allow X to pick up the piece of equipment at the mail order company’s place of business. Since X can make an election to avoid the charge for transportation services, the invoice correctly excludes the transportation charges as follows:

Equipment $300.00

Total Taxable Amount $300.00

Shipping and Handling Charges $8.75

(5) If the seller contracts to sell tangible personal property F.O.B. origin, the title to the property passes at the point of origin. Since the title to the property passes at the point of origin, transportation services arranged by the seller and rendered to the buyer are not a part of the taxable selling price, provided the transportation charges are separately stated. Where the transportation charges are billed by the seller to the buyer, but documentation is inadequate to establish the point at which title passes to the buyer, it is presumed that the tangible personal property was sold F.O.B. origin and the title to the property passes at the point of origin. In such instances, the transportation charges are not considered a part of the selling price of the property, if separately stated.

(a) Example: Company B is in the business of selling large industrial type generators. Company B is located out-of-state. Due to the size and cost of the generators and the cost of delivery of the generators, Company B only sells the generators F.O.B. origin. Company C purchases a generator for $1 million for its own use and requests that the generator be shipped to Company C’s location in Florida. Since the title to the equipment passes to Company C at Company B’s location, no tax is due on any separately stated transportation charge.

(b) Example: Company X is in the business of selling widgets at retail. Company X’s customers may order the widgets to be shipped F.O.B. origin or F.O.B. destination. Customer Z places his order for a dozen widgets of various sizes to be shipped F.O.B. destination to his business location in Florida. Since Customer Z could have requested the widgets to be shipped F.O.B. origin or destination, the separately stated transportation charge is not considered a part of the sales price of the widgets and is not subject to tax.

(6) When the purchaser of taxable tangible personal property contracts with a third party carrier at the purchaser’s option and pays transportation charges thereon directly to the third party carrier, such transportation charges are not subject to tax.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(4), (15), (16), (19), 212.06(1), 672.319, 672.401 FS. History–New 10-7-68, Amended 6-16-72, 7-3-79, Formerly 12A-1.45, Amended 10-17-94.

Fla. Admin. Code R. 12A-1.047 Florists

(1) Florists are engaged in the business of selling tangible personal property at retail and their sales of flowers, wreaths, bouquets, potted plants and other such items of tangible personal property are taxable.

(2) Where florists conduct transactions through a florists’ delivery association, the following rules will apply in the computation of the tax, which will be on the entire amount paid by the customer without any deductions whatsoever:

(a) On all orders taken by a Florida florist and transmitted to a second florist in Florida for delivery in the state, the sending florist is held liable for the tax.

(b) In cases where a Florida florist receives an order pursuant to which he gives instructions to a second florist located outside Florida for delivery of flowers to a point outside Florida, tax will likewise be owing with respect to the total receipts of the sending florist from the customer who places the order.

(c) In cases where Florida florists receive instructions from other florists located either within or outside of Florida for delivery of flowers, the receiving florist will not be held liable for tax with respect to any receipts which he may realize from the transaction. In this instance, if the order originated in Florida, the tax will be due from and payable by the Florida florist who first received the order and gave instructions to the second florist.

(3) All retail sales of cut flowers and potted plants by florists are taxable.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(l), 212.06(1) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.47, Amended 1-1-24.

Fla. Admin. Code R. 12A-1.048 Sale of Agricultural Products

(1)(a) The sale of agricultural products direct from the farm when made directly by the producer is exempt. The producer is not required to obtain an exemption certificate from the purchaser to make tax exempt sales of agricultural products. This exemption does not apply to the sale of ornamental nursery stock.

(b) Agricultural products that are produced by the farmer and used by the farmer or the farmer’s family or employees on the farm are not subject to tax.

(c) The sale of agricultural products by persons who do not produce agricultural products to any person who does not directly consume the product, but acquires the raw product for resale to the ultimate retail customer, or for use in the process of preparing, finishing, or manufacturing agricultural products for the ultimate retail consumer trade, is exempt. No certificate is required to be issued by the purchaser or obtained by the seller.

(d) The sale of agricultural products by any person, other than the producer, as a marketable or finished product to the ultimate consumer, except in the form of food or food products, is subject to tax. Example: Marketable products, such as nursery stock, and finished products, such as hides, bones, hooves, and feathers, are subject to tax.

(2)(a) The sale of ornamental nursery stock by any person, including producers of agricultural products, is subject to tax. The term “ornamental nursery stock” applies to all plants, shrubs and trees customarily sold by nurseries for landscaping purposes, regardless of the state of growth or maturity, but does not include plants used to produce food for human consumption. Sod and ferns are examples of ornamental nursery stock.

(b) The rental of ornamental nursery stock, such as plants, shrubs, or trees, is subject to tax, including the rental by the producer of the ornamental nursery stock.

(c) A landscape contractor who purchases ornamental nursery stock to fulfill a lump sum, cost plus, fixed fee, or guaranteed price contract for the improvement of realty is construed to be the consumer of such nursery stock and is liable for the sales tax at the time of purchase. A person who fulfills a contract as above described should not collect the tax from his or her customers, because the tax should be paid by the landscaper on all materials used in fulfilling the contract. A landscaper who produces his or her own ornamental nursery stock or who obtains stock that was acquired without cost, such as by digging up wild plants in the woods, is not liable for the tax on such stock which he or she uses in fulfilling the aforesaid types of contracts.

(d) A person who agrees by contract to sell specifically described and itemized materials and supplies at an agreed price or at the regular retail price and to complete the work either for an additional agreed price or on the basis of time consumed is deemed to be selling tangible personal property (ornamental nursery stock) at an agreed retail price. The contractor is required to collect sales tax from the purchaser based on the price of the materials and supplies, excluding any separately stated installation charges. Sales tax applies even though all or part of the ornamental nursery stock is grown or obtained from its natural habitat for no consideration by the person completing the contract.

(e) Plants, shrubs, trees, and other items of tangible personal property that a nurseryman donates in the course of business to any person or organization is taxed based on the cost price. No tax is due on any item donated that the nurseryman produces or acquires from its natural habitat without cost.

(3) The sale of topsoil, peat moss, sand used for erooting purposes, compost, and manure is exempt as agricultural products when sold by the producer but is taxable when sold by anyone other than the producer.

(4) The sale of fill dirt is not the sale of an agricultural product and is subject to tax.

(5) The sales of certain items for agricultural use and items for agricultural purposes, as provided in Sections 212.08(5)(a) and (e), F.S., are exempt. The exemption will not be allowed unless the purchaser furnishes the seller a written certificate stating that the purchased items qualify for exemption under Section 212.08(5)(a) or (e), F.S. The format of a suggested certificate is contained in subsection 12A-1.087(11), F.A.C.

(6) The sale of ornamental nursery stock for the purposes of resale, or for the purposes of producing for resale, is exempt. The seller must obtain a copy of the purchaser’s Annual Resale Certificate (Form DR-13) to make tax exempt sales for the purposes of resale.

(7) Nursery stock, plants, shrubs, and trees, purchased by one nurseryman from another for stock are exempt. Nursery stock purchased for direct resale and sold at retail is required to be purchased with a resale certificate and is subject to tax when sold to the ultimate consumer.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.07(5), (6), (7), 212.08(5)(a), (e), 212.18(2) FS. History–New 10-7-68, Amended 6-16-72, 12-11-74, 7-20-82, Formerly 12A-1.48, Amended 3-1-00, 6-19-01.

Fla. Admin. Code R. 12A-1.049 Sales of Animals

(1) Sales of livestock and poultry to consumers by any person other than a producer are taxable. However, gross proceeds derived from the sale in this state of livestock and poultry direct from the farm are exempt, provided that such sales are made directly by the producers. The producers shall be entitled to such exemptions although said livestock so sold in this state may have been registered with a breeders or registry association prior to such sale and although such sale takes place at a livestock show or race meeting, so long as the sale is made within this state by the original producer.

(2) For purposes of this rule, livestock includes all animals of the equine, bovine, or swine class, including goats, sheep, mules, horses, hogs, cattle, ostriches and other ratite species, and other grazing animals raised for commercial purposes. The term “livestock” also includes fish raised for commercial purposes.

(3) The sale of a race horse or a racing dog by its owner is exempt if the owner is also the breeder of the animal, even if the owner does not reside in this state. When the owner is not the breeder, such sales are subject to tax and the owner is required to register as a dealer and collect the applicable tax.

(4) The sale of race horses in this State is subject to tax. Tax is due on the claiming price of any horse that is claimed at any racing meet held in this State.

(5) Sales tax is required to be collected on the maximum amount for which a horse is sold at a claiming race one time only during the entire racing season that extends from the opening of the first track in this State in the fall through the closing of the last track in this State in the spring. To avoid a duplication of tax, officials of the various race tracks collect tax as required on such sales and furnish other tracks with accurate, detailed lists of the sales. The following example is intended to show how this works out in practice. A horse is sold in a claiming race for $5,000 and later is sold in a claiming race for $6,000. The tax would be collected on the first sale of $5,000 and on the $1,000, difference between the first and second sale. This track would forward a detailed list showing these sales to the next track. At another track, during the same racing season, the same horse is sold for $6,000 at a claiming race and then at still another claiming race it is sold for $7,000. No tax would be collected on the latter $6,000, because tax had already been collected on that amount during the current season. However, tax is due on the additional $1,000 realized from the sale at $7,000.

(6) The sale of livestock for breeding purposes is exempt.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(29), 212.07(5)(a), (b), (6), (7), 212.08(7)(qq) FS. History– New 10-7-68, Amended 6-16-72, 9-28-78, 7-20-82, Formerly 12A-1.49, Amended 3-1-00.

Fla. Admin. Code R. 12A-1.051 Sales to or by Contractors Who Repair, Alter, Improve and Construct Real Property

(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 other than public works contracts performed for governmental entities, which are governed by the provisions of Rule 12A-1.094, F.A.C. If a real property project involves multiple subcontractors, each subcontractor is responsible for paying, accruing, collecting, and remitting tax on his subcontract in accordance with this rule.

(2) Definitions. For purposes of this rule, the following terms have the following meanings:

(a) “Fabricated cost” means the cost to a real property contractor of fabricated items, as defined in the following paragraph. The elements of cost included in fabricated cost are set forth in Rule 12A-1.043, F.A.C. Fabricated cost does not include the cost of transporting fabricated items from the contractor’s plant to the job site or the cost of labor at the job site where the fabricated items are incorporated into the real property improvement.

(b) “Fabricated items” means items contractors manufacture, produce, process, compound, or fabricate for their own use in performing contracts for improvements to real property. The term applies only to items the contractor manufactures, produces, processes, compounds, or fabricates at a plant or shop maintained by the contractor. For this purpose, a temporary facility established at a job site that is used exclusively in connection with performing a contract for a real property improvement at that job site is not considered to be a plant or shop maintained by the contractor.

(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. Fixtures include such items as wired lighting, kitchen or bathroom sinks, furnaces, central air conditioning units, elevators or escalators, or built-in cabinets, counters, or lockers.

2. In order for an item to be considered a fixture, it is not necessary that the owner of the item also own the real property to which the item is attached. A retained title provision in a sales contract or in an agreement that is designated as a lease but is in substance a conditional sales contract is not determinative of whether the item involved is or is not a fixture. Similarly, the fact that a lessee or licensee of real property rather than the lessor/owner enters into a contract for an item to be permanently attached to the real property does not prevent that item from being classified as a fixture.

3. The determination whether an item is a fixture depends upon review of all the facts and circumstances of each situation. Among the relevant factors that determine whether a particular item is a fixture are the following:

a. The method of attachment. Items that are screwed or bolted in place, buried underground, installed behind walls, or joined directly to a structure’s plumbing or 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.

b. Intent of the property holder in having the item attached. 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 time, that item is more likely to be a fixture. That intent may be determined by reviewing all of the property holder’s actions in regard to the item, including how the item is treated for purposes of ad valorem and income tax purposes. For example, if a property owner reports the value of the item for purposes of ad valorem taxation of the realty and depreciates the item for tax and financial accounting purposes as real property, that indicates an intent that the property is permanently attached as a fixture.

c. Real property law. 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. For example, if the seller of real property would be expected to leave an item behind when vacating the premises for a new owner without the contract specifically requiring that it be left, that item is likely to be classified as a fixture.

d. Customization. If items are custom designed or custom assembled to be attached in a particular space, they are more likely to be classified as fixtures. Customization indicates intent that the items are to remain in place following installation.

e. Permits and licensing. If installation of an item requires a construction permit or licensing of the contractor under statutes or regulations governing the building trades, that item is more likely to be regarded as a fixture.

f. Legal agreements. The terms of any purchase agreement, deed, lease, or other legal document pertaining specifically to an item may be relevant in determining whether that item is a fixture of real property.

The foregoing list of factors relevant to determining whether an item is a fixture is intended to be illustrative only. Additional factors may exist in any particular case, and the weight to be given to the factors will also vary in each case.

4. The term “fixture” does not include the following items, whether or not such items are attached to real property in a permanent manner:

a. Titled property.

b. Machinery or equipment.

(d) “Improvement to real property” or “real property improvement” includes the activities of building, erecting, constructing, altering, improving, repairing, or maintaining real property.

(e)1. “Machinery or equipment” means and includes property that:

a. Is intended to be used in manufacturing, producing, compounding, processing, fabricating, packaging, moving, or otherwise handling personal property for sale or other commercial use, in the performance of commercial services, or for other purposes not related to a building or other fixed real property improvement; and,

b. May, on account of its nature, be attached to the real property but which does not lose its identity as a particular piece of machinery or equipment.

2. “Machinery or equipment” generally does not include junction boxes, switches, conduits, wiring, valves, pipes, and tubing incorporated into the electrical, cabling, plumbing, or other structural systems of fixed works, buildings, or other structures, whether or not such items are used solely or partially in connection with the operation of machinery and equipment.

3. “Machinery or equipment” serves a particular commercial activity that is carried on at a location rather than serving general uses of land or a structure. Examples of machinery or equipment include conveyor systems, printing presses, drill presses, or lathes. Examples of items that are not machinery or equipment because they are integrated into the structure or realty and retain their usefulness no matter what activity is carried on at the site include heating and air conditioning system components or water heaters. Any property that would be classified as machinery or equipment under Section 212.08(5), F.S., or any other provision of Chapter 212, F.S., is considered to be machinery or equipment for purposes of this rule. In the case of property used in the production of electrical or steam energy, any item that would qualify as exempt machinery or equipment under Section 212.08(5)(c), F.S., is considered to be machinery or equipment for purposes of this rule.

(f) “Manufacture, produce, compound, process, or fabricate” means:

1. To convert or condition tangible personal property by changing the form, composition, quality, or character of the property;

2. To make, build, create, produce, or assemble components or items of tangible personal property in a new or different manner;

3. To physically apply materials and labor necessary to modify or change the characteristics of tangible personal property.

The terms do not include activities that do not result in any change in the character or quality of tangible personal property. For example, a repair or restoration of property to return it to its original state and level of functionality is not included within the defined activities.

(g) “Real property” means land, improvements to land, and fixtures. It is synonymous with the terms “realty” and “real estate.”

(h)1. “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, other structure, road, project, development, or other real property improvement;

b. Excavate, grade, or perform site preparation for a building, other structure, road, project, development, or other real property improvement; or

c. Furnish and install tangible personal property that becomes a part of or is directly wired or plumbed into the central heating system, central air conditioning system, electrical system, plumbing system, or other structural system that requires installation of wires, ducts, conduits, pipes, vents, or similar components that are embedded in or securely affixed to the land or a structure thereon.

2. The term “real property contract” does not include:

a. A contract for the sale or for the sale and installation of tangible personal property such as machinery and equipment; or

b. A contract to furnish tangible personal property that will be installed or affixed in such a way as to become a fixture or improvement to real property if the person furnishing the property has not also contracted to affix or install it.

3. A contract is a real property contract if described in subparagraph 1. above, whether or not such agreement also involves providing property or services that would not be considered improvements to real property. See subsection (8) of this rule for discussion of such contracts.

4. A contract contains the terms of the agreement between the contractor and the owner (or other interest holder) of the real property and is entered into in advance of any work being undertaken. A proposal prepared by a contractor prior to entering an agreement is not a contract. Statements, invoices, or other billings submitted after work has begun are not contracts. For example, a developer solicits bids on the plumbing work for a project. A contractor prepares a proposal that lists all the materials anticipated to be necessary, with unit pricing, labor costs, and a markup based on a percentage of the total material and labor costs. The developer accepts the proposal. The parties enter into an agreement that requires the contractor to provide all the materials and labor necessary to supply the plumbing system for the project for a single lump sum price. When the work is completed, the contractor sends an invoice for the lump sum amount that shows a breakdown into materials and labor. Neither the proposal nor the invoice is a contract under which the developer agrees to pay separately for materials and labor. They are documents prepared by the contractor to explain or justify the price. The contract is the agreement between the parties that an entire installed plumbing system will be provided for a single lump sum.

(i) “Titled property” means property that must be registered, licensed, titled, or documented by this state or by the United States, such as airplanes, boats, and motor vehicles. A houseboat, even if permanently docked and used as a primary residence, is not real property. Mobile homes are titled property unless they are assessed for ad valorem tax purposes as real property. Owners may report mobile homes as real property and have them assessed as such for ad valorem tax purposes. These mobile homes are issued special decals. Classification of a mobile home as personal property by a seller or a lender does not prohibit the owner of the mobile home from having the property assessed as real property. A mobile home that is issued a real property decal is treated as real property for purposes of this rule.

(3) 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 one of the following categories:

(a) Lump sum contracts. These are contracts in which a contractor or subcontractor agrees to furnish materials and supplies and necessary services for a single stated lump sum price.

(b) Cost plus or fixed fee contracts. These are contracts in which the contractor or subcontractor agrees to furnish the materials and supplies and necessary services in exchange for reimbursement of costs plus a fee that is fixed in advance or calculated as a percentage of the costs.

(c) Upset or guaranteed price contracts. These are contracts in which the contractor or subcontractor agrees to furnish materials and supplies and necessary services based on costs plus fees but with an upset or guaranteed maximum price which may not be exceeded.

(d) Retail sale plus installation contracts. These are contracts for improvements to real property in which the contractor or subcontractor agrees to sell specifically described and itemized materials and supplies at an agreed price or at the regular retail price and to complete the work either for an additional agreed price or on the basis of time consumed. In order for a contract to fit in this category, all the materials that will be incorporated into the work must be itemized and priced in the contract before work begins. If a contract itemizes some materials but does not itemize other materials that will be incorporated into the work, the contract is not included in this category. Because the sale of the materials is a separable transaction from the installation, the purchaser must assume title to and risk of loss of the materials and supplies as they are delivered, rather than accepting title only to the completed work. The contractor may remain liable for negligence in handling and installing the items.

(e) Time and materials contracts. These are contracts in which the contractor or subcontractor agrees to furnish materials and supplies and necessary services for a price that will be calculated as the sum of the contractor’s cost or a marked up cost for materials to be used plus an amount for services to be based on the time spent performing the contract. These contracts are similar to cost plus or fixed fee contracts, because the final price to the property holder will be determined based on the cost of performance. A time and materials contract may or may not also have a guaranteed or upset price clause. Time and materials contracts differ from contracts described in paragraph (d), because the materials are not completely identified, itemized, and priced in the contract in advance and because the property owner is contracting for a finished job rather than the purchase of materials.

(4) General rule of taxability of real property contractors. 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, unless the contractor has entered a retail sale plus installation contract. Contractors performing only contracts described in paragraph (3)(a), (b), (c) or (e) do not resell the tangible personal property used to the real property owner but instead use the property themselves to provide the completed real property improvement. Such contractors should pay tax to their suppliers on all purchases. They should also pay tax on all materials they fabricate for their own use in performing such contracts, as discussed in subsection (10). They should charge no tax to their customers, regardless of whether they itemize charges for materials and labor in their proposals or invoices, because they are not engaged in selling tangible personal property. Such contractors should not register as dealers unless they are required to remit tax on the fabricated cost of items they fabricate to use in performing contracts.

(5) Rule for paragraph (3)(d) contractors. Contractors who perform retail sale plus installation contracts described in paragraph (3)(d) do sell tangible personal property. They should register as dealers and provide a copy of their Annual Resale Certificate (Form DR-13) to the selling dealer to purchase tax exempt materials that are itemized and resold under paragraph (3)(d) contracts. They should not provide the certificate to purchase tax exempt items that they use themselves rather than reselling, such as hand tools, shop equipment, or office supplies. They must charge their customers’ tax on the price paid for tangible personal property but not on the charges for installation labor. See Rule 12A-1.038, F.A.C., for tax exempt sales made to entities that hold a valid Consumer’s Certificate of Exemption.

(6) Sales of tangible personal property. Contractors, manufacturers, or dealers who sell and install items of tangible personal property, including those enumerated in Rule 12A-1.016, F.A.C., must collect tax on the full selling price, including any installation or other charges, even though such charges may be separately stated. The items listed in Rule 12A-1.016, F.A.C., are tangible personal property even after installation, and their sale with installation is not classified as a real property contract. Contractors, manufacturers, or dealers who sell property over-the-counter without performing installation services must collect tax on the full sales price of such items, even though those items will become improvements to real property upon installation by the purchaser. At the point at which they are sold in over-the-counter transactions, those items are tangible personal property.

(7) Repairs to machinery and equipment. Any owner or lessee that engages another to make repairs to or perform maintenance services on machinery and equipment that, because of its size, configuration, method of attachment, or other characteristics, has the appearance of real property, must inform the service provider that the machinery or equipment is tangible personal property. Unless the repair is exempt from taxation under Chapter 212, F.S., the owner or lessee should pay sales tax on the full price of the repair or maintenance to any service provider that is a registered dealer. If the service provider ordinarily operates as a real property contractor and is not a registered dealer, the owner or lessee must remit tax on the full price of the repair or maintenance directly to the state.

(8) Mixed contracts. A real property contract may also include materials and labor that are not real property improvements. A contract that includes both real property work and tangible personal property is referred to in this subsection as a mixed contract. A mixed contract is not the same as a contract described in paragraph (3)(d) of this rule. Paragraph (3)(d) deals with a real property contract in which the contractor separately itemizes and prices all the materials that will be incorporated as part of the real property. A mixed contract is one that involves a real property improvement, maintenance, or repair and also involves providing tangible personal property that remains tangible personal property and does not become part of the real property. In the case of a mixed contract, taxability depends upon the predominant nature of the work performed under the contract and upon the contract terms.

(a) If the predominant nature of a mixed contract is a contract for real property improvements, taxability will be determined as if the contract were entirely for real property. For example, a residential developer routinely provides some items of tangible personal property, such as free standing appliances, with new homes sold under cost-plus contracts. The predominant nature of the contract is for a dwelling. The developer should pay sales or use tax on the appliances. A contractor constructs a factory under a turnkey contract that includes providing and installing machinery and equipment that is not exempt from sales and use tax. The contract is predominantly for a factory, a real property improvement, and the contractor should pay use tax on the cost of the machinery and equipment. No tax is collected from the property owner in either case, even though some tangible personal property is included in the project.

(b) If the predominant nature of a mixed contract is a contract for tangible personal property, taxability of the contract will be determined as if the contract were entirely for tangible personal property. For example, a vendor of a mechanical conveyor system for a warehouse provides reinforced concrete foundations and embeds steel plates in the concrete to permit installation of the equipment by bolting it to the plates. The contract is predominantly for the sale of equipment. The contractor should buy the equipment, concrete, and steel plates tax exempt by extending a copy of the contactor’s Annual Resale Certificate (Form DR-13) to the selling dealer and charge tax on the full price charged to the customer.

(c) The determination of the predominant nature of a contract will depend upon the facts and circumstances of each case. Consideration will be given to the description of the project and the responsibilities of the contractor as set forth in the contract. Consideration will also be given to the relative cost of performance of the real property and tangible personal property components of the contract.

(d) If a mixed contract clearly allocates the contract price among the various elements of the contract, and such allocation is bona fide and reasonable in terms of the costs of materials and nature of the work to be performed, taxation will be in accordance with the allocation. For example, a residential developer builds and sells a home on a cost-plus basis, but the contract provides separately stated prices for the sale and installation of certain optional free-standing appliances that are tangible personal property and are not classified as real property fixtures. The contractor may purchase those appliances by issuing a copy of the contractor’s Annual Resale Certificate (Form DR-13) to the selling dealer and charge sales tax on the price paid for the appliances, including installation, by the home buyer. The contractor is responsible for paying tax on all the materials that are included in the cost-plus price of the home, other than the separately itemized appliances. Similarly, a manufacturer who sells and installs a mechanical conveyor system in a warehouse could state a separate charge in the contract for providing reinforced concrete with embedded steel plates in the warehouse floor to support the conveyor. The conveyor system is machinery or equipment and is therefore tangible personal property. The concrete and plates would be considered a real property improvement. The contractor should pay tax on the materials used for the real property part of the contract and not charge tax to the customer on the related charge. The customer should pay tax on the rest of the contract price allocable to the conveyor machinery itself.

(e) This subsection does not affect any exemption provided in Chapter 212, F.S., for machinery or equipment that may be claimed by a contractor based on a temporary tax exemption permit, affidavit, or other authorized certification by the owner of real property. For example, purchases of certain equipment for generating electrical power or of certain machinery for manufacturing tangible personal property for sale are exempt from sales and use taxes. In order for the property owner to receive the benefit of these exemptions, it has been specifically provided that contractors who purchase and install the exempt items may claim the exemption based on the property owner’s providing the required documentation of entitlement. The guidelines on mixed contracts are not intended to impact these exemptions. In the case of a mixed contract that is treated as a real property contract, the contractor is still entitled to purchase the qualified equipment or machinery tax-exempt. In the case of a mixed contract treated as a sale of tangible personal property, the contractor would purchase the equipment or machinery by issuing a copy of the contractor’s Annual Resale Certificate (Form DR-13) to the selling dealer and accept the property owner’s authorized documentation of exemption in lieu of charging tax on the subsequent sale of the equipment or machinery to the property owner. See Rule 12A-1.038, F.A.C., for tax exempt sales made to entities that hold a valid Consumer’s Certificate of Exemption.

(9) Dual operators. Some contractors both use materials themselves in the performance of contracts and resell materials either in over-the-counter sales or under contracts described in paragraph (3)(d). Those contractors should register as dealers. When they purchase materials that they may either use themselves or that they may resell, they may issue a copy of the contractor’s Annual Resale Certificate (Form DR-13) to the selling dealer. Florida tax should be remitted when a subsequent event determines the appropriate taxation of the materials. If the materials are subsequently resold, tax should be collected from the buyer and remitted to the state. If the materials are used by the contractor, use tax should be paid to the state instead.

(10) Use tax on fabrication costs. Contractors may maintain shops, plants, or similar facilities where they manufacture, produce, compound, process, or fabricate items for their own use in performing contracts. Contractors are required to pay use tax on the fabricated cost of those items. The elements that must be included in the taxable cost of such items are set forth in Rule 12A-1.043, F.A.C. In the case of real property contractors, the taxable cost of an item manufactured, produced, compounded, processed, or fabricated for use in performing a contract does not include labor that occurs at the job site where the item will be incorporated into a real property improvement or transportation from the plant where an item was fabricated to the job site. Examples of real property contractors who are subject to tax under this subsection include cabinet contractors who build custom cabinets in their shops, roofing contractors who operate tile plants, or heating/air conditioning/ventilation contractors who maintain sheet metal shops for making ductwork. Real property contractors that are required to remit use tax on fabricated items must register as dealers for purposes of remitting such tax if they are not already registered as dual operators.

(11) Percent of contract price method.

(a) The Department is authorized to adopt rules that establish an elective percent of contract price method for calculating use tax obligations of real property contractors that manufacture, produce, compound, process, or fabricate tangible personal property for their own use in performing contracts. For example, a rule could be adopted to provide that cabinet makers that build cabinets at their own shops and install them could elect to pay use tax on a certain percentage of the contract price paid by the real property holder, rather than keeping track of the elements of taxable cost of the fabricated cabinets.

(b) In order to initiate a rulemaking project to adopt the percent of contract price method for an industry group, the Department must receive a petition from the majority of the members of the group or from a statewide association representing the group. The petition must be accompanied by a proposal setting forth the percent of contract price the group believes should be adopted in the rule and by sufficient information and documentation to establish that the proposed percentage is based on the taxable costs incurred by members of the petitioning group. The industry group may propose alternative percentages for members of the group who are registered dealers and do not pay tax on purchases of direct materials that are incorporated into fabricated items and for members of the group who pay sales tax on those purchases. The Department will consider the information supplied with the petition, as well as any other relevant information that is available. Petitions should be submitted to Department of Revenue, Agency Clerk, Post Office Box 6668, Tallahassee, Florida 32314-6668.

(c) The Department will review rules adopted at the petition of industry groups and amend them to adjust the percentage to insure it continues to reflect the taxable costs for that industry group. The percentage of contract price established in a rule described in this subsection can not be amended during the first five years after its adoption. After that time, the Department will review and, if the taxable costs of the industry group are no longer accurately reflected by the percentage provided, amend the rule. All such reviews must be at least five years apart. In conducting a review, the Department will consider any information submitted by the industry group affected, as well as any other available information.

(d) If the Department adopts a percent of contract price rule for an industry group, members of that group may elect to apply the method on a contract-by-contract basis or to apply it to all contracts in any period by timely accruing and remitting tax using the method. Timely accrual and remittance means accrual as of the time invoices are issued based on applying the established percentage to the amount invoiced to calculate the taxable cost and remittance with a timely filed return filed in the reporting period immediately after the accrual (i.e., in the month following the issuance of the invoice and accrual of the tax for a contractor who is required to file on the regular monthly schedule). The contractor must maintain records to document the timely accrual and payment of the tax on each contract for which the method is used.

(e) Application of the established percentage to the contract price is intended to capture the taxable cost of fabricated items used in performing the contract. If the contractor pays sales tax on purchases of materials incorporated into the fabricated items, the use tax due on the fabricated cost under the percent of contract method should be reduced to reflect the tax already paid on those materials. For example, a real property contractor who fabricates some of the items used in performing contracts is entitled by rule to use a 50% of contract price method to compute use tax on fabricated cost. The contractor agrees to fabricate and install items for a lump sum price of $10,000. The contractor pays sales tax on all purchases of materials and supplies. The cost of materials incorporated into the fabricated items for the contract is $3,000, on which the contractor has already paid $180 ($3,000 x 6%) in sales tax to the supplier. Those materials costs on which tax has already been paid are subtracted from the taxable percentage of the contract price before calculating the use tax due on the finished item. The use tax to be accrued and remitted under the percent of contract method is $120 (50% of $10,000 = $5,000 - $3,000 = $2,000 x 6% = $120).

(f) Use of the percent of contract price method applies only to the use tax owed on fabricated items. Other taxes may also be owed in connection with performance of a contract. For example, a real property contractor who fabricates some of the items used in performing contracts is entitled by rule to use a 50% of contract price method to compute use tax on fabricated cost. The contractor agrees to fabricate items, install those items, and supply materials and labor for onsite work that does not require shop fabrication. The contract is for a lump sum price of $10,000. The contractor also makes over-the-counter sales. He is therefore a registered dealer and buys all the materials involved using a resale certificate. The cost of materials used for the on-site work is $1,000. Use tax must be remitted on 50% of the contract price for the fabricated items and on $1,000 for the onsite materials. The total tax owed is $360 ($5,000 + $1,000 = $6,000 x 6% = $360).

(g) The percent of contract price method involves an alternative way to calculate the use tax owed and alternative timing for accrual and payment of tax. It does not change the nature of the tax liability. The tax involved is still a use tax on fabricated cost. It is not a tax on the income earned from contracts. Election of the method, therefore, does not affect the jurisdiction where the tax is owed.

(12) Asphalt contractors. Contractors that manufacture asphalt for their own use in the performance of improving real property must calculate the tax on that asphalt based on the sum of the following:

(a) The cost of materials that become a component part or that are an ingredient of the finished asphalt multiplied by 6%; plus,

(b) The costs of transportation of such components and ingredients to the plant site multiplied by 6%; plus,

(c) An indexed tax per ton representing all other costs associated with the manufacture of the asphalt.

If sales tax has been paid on the purchase of materials or transportation in paragraph (a) or (b) above, the cost of such materials or transportation is not included in computing the total use tax due. The indexed tax is computed based on the “materials and components for construction” series of the producer price index, as calculated and published by the United States Department of Labor, Bureau of Statistics. The indexed tax is revised annually, effective each July 1. The Department is responsible for publishing the new rate each year in time to permit timely accruals and payment of use tax by asphalt contractors.

(13) Use tax on rock, shell, fill dirt, or similar materials. A real property contractor is taxable on the cost of rock, shell, fill dirt, or similar materials the contractor uses to perform a real property contract for another person.

(a) If the contractor acquires the materials from a location the contractor owns or leases, the contractor must remit use tax based on one of the following methods:

1. The fair retail market value, which means either the price the contractor would have to pay on the open market or the price at which the contractor would sell the materials to third parties; or

2. The cost of the land plus all costs of clearing, excavating, and loading the materials, including labor, power, blasting, and similar costs.

(b) If the contractor purchases the materials and as part of the agreement excavates and removes them from the seller’s land (including state-owned submerged land), the taxable cost is the purchase price paid to the seller plus all the costs incurred by the contractor in clearing, excavating, and removing the materials, including labor.

(c) When rock, shell, fill dirt, or similar materials are secured from a location owned by the contractor for use on his or her own property, the contractor does not owe tax on these materials. For purposes of this paragraph, a contractor that is a corporation is considered to own any location that is owned by any corporation in the same affiliated group as the contractor. “Affiliated group” shall have the meaning provided in Section 220.03(1), F.S.

(d) A contractor on a road project owes no tax on borrow materials that are provided at no charge by the Department of Transportation, including materials extracted from pits that are provided at no charge by that department.

(14) Mobile homes. A contractor who makes improvements or repairs to a mobile home is required to ascertain the status of that home as real property or as tangible personal property to determine how tax should be paid. If the mobile home has a real property decal, the contract should be treated as a real property contract. In that case, the contractor generally will be subject to tax on the materials used, and the customer will pay no tax. If the mobile home does not have a real property decal, improvements or repairs are generally treated as contracts to improve or repair tangible personal property. The contractor should charge tax on the full price paid by the customer, including charges for labor. In that case, the contractor is not subject to tax on the materials that are incorporated into and become a part of the improvement or repair of the mobile home. Upon initial installation of a mobile home, classification is dependent on the method of installation and whether title to the land and the mobile home are held by the same person. See Rule 12A-1.007, F.A.C., for further discussion on the taxation of contracts involving mobile homes.

(15) Contracts performed for nongovernmental tax-exempt entities. Contractors who perform lump sum, cost-plus, guaranteed price, or time and materials contracts for nongovernmental entities that are exempt from sales taxes, such as private schools, hospitals, or churches, are taxable on materials the contractor purchases for use in performing those contracts. Such contractors are not permitted to use the consumer’s certificate of exemption issued to the exempt entity in order to purchase materials for the contract exempt from taxes. The entity’s exempt status is not relevant, because it applies only to sales of tangible personal property to the entity, not to the contractor. The contractor, not the exempt entity, is the taxable consumer of the materials the contractor purchases to use in performing that contract. The fact that an exempt entity will bear the economic burden of the taxes paid by the contractor in the form of a higher contract price does not change the contractor’s tax liabilities.

(16) Subdivision and similar improvements.

(a) Subdivision owners and developers or their contractors are subject to tax on purchases of materials for use in the construction of streets, roadways, water distribution systems, sewers, and similar improvements that the owner or developer subsequently transfers to a municipality or other governmental unit. These transfers are not donations or sales of tangible personal property to a governmental unit.

(b) If a municipality or other governmental unit purchases and installs water mains and distribution pipes for a property owner, including a subdivision developer, under an arrangement whereby the municipality retains ownership, possession, and control of the mains and pipes, but recovers all or part of its cost from the property owner through the collection of an installation charge, such installation charge is equivalent to an assessment for benefits. It is not taxable.

(17) Specific activities classified as real property contracts. Contractors who are engaged in the following activities are generally considered to be real property contractors, although any particular job may be determined not to involve an improvement to real property:

(a) Awning installation;

(b) Block, brick, and stone masonry;

(c) Bridge construction;

(d) Burglar and fire alarm system installation;

(e) Cabinetry (built-in only);

(f) Carpentry;

(g) Carpeting installed with tacks, glue, or other permanent means and serving as the finished floor;

(h) Cement and concrete work;

(i) Closet system installation;

(j) Dock, pier, seawall, and similar construction, maintenance, or repair;

(k) Door and window installation or on-site repair;

(l) Driveway installation or repair;

(m) Electrical system installation and repairs, including structural wiring and cabling, meter boxes, switches, receptacles, wall plates, and similar items;

(n) Elevator and escalator installation and maintenance;

(o) Fencing and gates installation intended for permanent use;

(p) Flooring;

(q) Foundations;

(r) Glass and mirror installation if installed in a permanent manner;

(s) Heating, ventilating, and air conditioning system work;

(t) Insulation of structures or structural components;

(u) Iron work, such as railings, banisters, and stairs, incorporated into buildings;

(v) Landscaping work, including walls, walkways, permanent structures such as greenhouses, arbors, or gazebos, and permanent plantings such as trees, perennial shrubs, and lawns;

(w) Lathing;

(x) Painting of buildings, decks, and other real property structures;

(y) Paving and surfacing work, including driveways, parking lots, patios, roadwork, and sidewalks;

(z) Plastering;

(aa) Plumbing work;

(bb) Radio and telephone transmission towers;

(cc) Roofing work;

(dd) Septic tank installation or maintenance;

(ee) Sheet metal/ductwork;

(ff) Siding installation;

(gg) Site work, including clearing, grading, demolition, and excavation;

(hh) Signs that are permanently attached to realty;

(ii) Solar systems;

(jj) Sprinkler system installation for lawn and garden irrigation or for fire prevention;

(kk) Stucco;

(ll) Structural steel and concrete installation;

(mm) Swimming pool installation, including accessories and parts that are permanently attached or are plumbed or wired into plumbing or electrical systems;

(nn) Tile work;

(oo) Utility poles and lines installation and maintenance;

(pp) Wallpaper installation;

(qq) Water, sewer, and drainage systems;

(rr) Waterproofing of structures, decks, driveways, and other real property components; and,

(ss) Well drilling and installation.

The determination whether any particular job involves a contract for an improvement to real property will be based on the criteria set forth in paragraphs (c), (d), (e), (g), (h), (i) and (j) of subsection (2).

(18) Specific activities not classified as real property contracts. The sale, installation, maintenance, or repair of the following items is not considered to be a real property contract.

(a) Area rugs and carpets;

(b) Art work (paintings, statuary);

(c) Cabinets and shelving (freestanding);

(d) Computer system components;

(e) Drapes, curtains, blinds, shades, etc.;

(f) Entertainment system (e.g., stereo systems, home theater systems) components;

(g) Furniture;

(h) Household appliances (unless built in and directly wired);

(i) Lawn markers;

(j) Mail boxes;

(k) Mirrors (freestanding);

(l) Radio and television antennas;

(m) Sprinkler systems for lawns or gardens if made up of unburied hoses or tubing and movable sprinkler heads;

(n) Stepping stones;

(o) Equipment used to provide communications services, as defined in Section 202.11(2), F.S., that is installed on a customer’s premises;

(p) Temporary fencing and gates (e.g., for construction sites); and,

(q) Window air conditioning units.

(19) Cross references.

(a) For partial exemption of tax on the cost of asphalt manufactured for one’s own use in performing contracts for governmental entities, see Section 212.06(1)(c), F.S.

(b) For exemption of charges for repairs of industrial machinery and equipment, see Section 212.08(7)(xx), F.S.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.06(1), (14), (15), 212.07(1), (8), 212.08(6), 212.14(5) FS. History–New 10-7-68, Amended 1-7-70, 6-16-72, 2-3-80, 3-27-80, 6-3-80, 8-26-81, 11-15-82, 6-11-85, Formerly 12A-1.51, Amended 1-2-89, 8-10-92, 7-27-99, 3-30-00, 10-2-01(18), 10-2-01(5), (8), (9), (13), 4-17-03.

Fla. Admin. Code R. 12A-1.053 Electric Power and Energy

(1)(a) The 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 Section 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 enumerated in Chapters 400 and 429, F.S., and in other residential facilities. However, if any part of the electric power or energy is used for a non-exempt purpose, the entire sale is subject to tax.

(b) An electric utility is not obligated to collect and remit tax on any sale of electric power or energy when:

1. 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; or

2. The utility has on file a writing or document evidencing a representation of the utility’s customer that the electric power or energy is being purchased for residential household use, including licensed family day care homes and other facilities identified in paragraph (a). The writing or document may be a customer application or a certificate that identifies the customer as purchasing the electric power or energy for a residential purpose. A “customer application” includes a record of information obtained electronically or orally from the customer in the ordinary course of business. The electric utility must have acted in good faith in accepting the representation of the customer.

(c) Tax is due on electric power or energy purchased by a customer tax exempt for the claimed purposes of residential household use that does not qualify for such exemption. In such instances, if the electric utility complies with the requirements of paragraph (b), the Department will look to the customer for any applicable tax, penalty, or interest due. The Department will look to the utility for any applicable tax, penalty, or interest due when the electric utility’s books and records indicate a failure to comply with the requirements of paragraph (b).

(2) All fuels used by public or private utilities, including municipal corporations and rural cooperative associations in the generation of electric power or energy for sale are exempt.

(3) Private or public utilities or rural electric cooperative associations are required to pay use tax based on the cost of electric power or energy used by them.

Cross Reference: Rule 12A-1.022, F.A.C., for guidelines on federal excise taxes, gross receipts tax, and other fees.

(4) See Rule 12A-1.087, F.A.C., for requirements to claim the exemption for electricity used for the production or processing of agricultural farm products on a farm.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02, (19), 212.05(1)(e), 212.06(1)(a), (b), 212.08(4)(a)2., (7)(j), 212.18(2) FS. History–New 10-7-68, Amended 6-16-72, 12-11-74, 10-18-78, 6-3-80, 12-23-80, 7-20-82, Formerly 12A-1.53, Amended 10-2-01, 4-17-03, 9-15-08, 2-17-15.

Fla. Admin. Code R. 12A-1.055 Sale or Discontinuation of Business

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(2), (14)(a), 212.04(6), 212.06(1), 212.07(1)(b), 212.10(1), (2), (4), 212.18(3), 213.053 FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.55, Amended 2-16-93, 1-4-94, Repealed 1-17-13.

Fla. Admin. Code R. 12A-1.056 Tax Due at Time of Sale; Tax Returns and Regulations

(1) Due dates for payments and tax returns.

(a) The total amount of tax on cash sales, credit sales, installment sales, or sales made on any kind of deferred payment plan shall be due at the moment of the transaction. Except as provided in Chapter 12-24, and Rule 12A-1.005, F.A.C., and this rule, all taxes required under Chapter 212, F.S., to be collected or paid in any month, are due to the Department on the first day of the month following the date of sale or transaction. The payment and return must be delivered to the Department or be postmarked on or before the 20th day of the month following the date of sale or transaction for a dealer to be entitled to the collection allowance and to avoid penalty and interest for late filing. If the 20th day falls on a Saturday, Sunday, or legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For purposes of this rule, a legal holiday means a holiday that is observed by federal or state agencies as a legal holiday as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) When quarterly, semiannual, or annual reporting is authorized by the Department pursuant to Section 212.11(1)(c) or (d), F.S., the tax is due the first day of the month following the authorized reporting period and becomes delinquent on the 21st day of that month.

(c) Quarterly, semiannual, or annual filers that remit an excessive tax payment for the period July 1 through June 30 which represents a nonrecurring business activity can request to continue to file their returns quarterly, semiannual, or annually by submitting a written request to the Florida Department of Revenue, Account Management, P.O. Box 6480, Tallahassee, Florida 32314-6480. When a dealer makes a written request to continue on the same filing frequency, the Executive Director or the Executive Director’s designee will determine whether the dealer’s request is based on a nonrecurring business activity, based upon the facts of each case, using the following guidelines:

1. The type of activity. The type of activity, as opposed to the level of activity, that makes that dealer’s remittance unusual for its particular business.

2. The focus of the dealer’s business. A change in the dealer’s business focus will not be considered nonrecurring business activity.

3. The number of occurrences. When the dealer’s remittance amount continues to exceed the maximum amount allowed for a quarterly, semiannual, or annual filing frequency, the remittance will not be considered nonrecurring.

4. Regularity. If the events are so regular that the amounts exceeding the maximum remittance amounts allowed for a quarterly, semi-annual, or annual frequency can be predicted, the remittance will not be considered nonrecurring.

(d)1. If a dealer cannot reasonably compile the information required for an accurate return on a calendar month basis, the dealer may request to file returns and pay tax on an alternative-period basis. The dealer’s request must be in writing and must be submitted to Account Management MS 1-5730, Florida Department of Revenue, 5050 West Tennessee Street, Tallahassee, Florida 32399-0160. The written request must contain:

a. The name of the business;

b. The business mailing address;

c. The business partner number;

d. The dealer’s certificate of registration number;

e. A detailed explanation why the dealer cannot reasonably file returns on a calendar month basis; and,

f. The beginning and ending month and day of each requested alternative-reporting period for the current calendar year.

2. When the Department determines that the dealer cannot reasonably compile the information required for an accurate return on a calendar month basis, the Department will notify the dealer in writing that the dealer may report as an alternative-period filer. Alternative-period returns and payments are due on the first day after the end of the alternative-reporting period and become delinquent on the twenty-first day after the end of the alternative-reporting period.

3. Each year, dealers who have been authorized to file on an alternative-reporting basis must provide a calendar of alternative-reporting dates for the upcoming year. The dealer must provide the calendar by December 15, and the calendar must include all alternative-reporting periods for the following calendar year. The annual calendars may be submitted to the Department by any one of the following means:

a. Emailing the calendar to consolidatedSUT@floridarevenue.com;

b. Faxing the calendar to Returns Reconciliation/Sales Tax Unit at (850)245-5883;

c. Mailing the calendar to Account Management MS 1-5730, Florida Department of Revenue, 5050 West Tennessee Street, Tallahassee, Florida 32399-0160.

(e) Any dealer who operates two or more places of business in a single county for which returns are required to be filed with the Department may file a single return using a county control reporting number for all places of business located within a single county in lieu of separate returns for each place of business. The dealer may also use this method to file returns in more than one county. A dealer who wishes to report the amounts collected within each county in a single return may obtain a county control reporting number for each county in which returns are required to be filed. An Application for Sales and Use Tax County Control Reporting Number (Form DR-1CCN, incorporated by reference in Rule 12A-1.097, F.A.C.) is provided for qualifying dealers who wish to file using a county control reporting number.

(f) Any dealer who operates two or more places of business for which returns are required to be filed with the Department and maintains records for such places of business in a central office or place may file a consolidated return for all places of business in lieu of separate returns for each place of business. The consolidated return must clearly indicate the amounts collected within each county. An Application for Sales and Use Tax Consolidated Filing Number (Form DR-1CON, incorporated by reference in Rule 12A-1.097, F.A.C.) is provided for qualifying dealers who wish to file consolidated returns. The Department will issue a consolidated account number to qualified dealers.

(g) Each dealer is required to file a return for each tax reporting period even when no tax is due for that reporting period.

(h) The failure of any dealer to secure a tax return for reporting tax due does not relieve the dealer from the requirement to file a return or to remit tax due to the Department. The Department is not authorized to extend the time for any dealer to file any return or pay any tax due.

(i) Payments and returns for reporting tax must be submitted to the Department, as provided in rule Chapter 12-24, F.A.C., when:

1. Payment of the tax is required to be made by electronic means;

2. Any return for reporting taxes is required to be submitted by electronic means; or

3. No tax is due with a return for reporting taxes.

(2) Collection allowance.

(a) A collection allowance is authorized as compensation for the prescribed record keeping, accounting for, and for the timely reporting and remitting of sales and use tax and discretionary sales surtax by electronic means.

(b)1. The collection allowance is computed at the rate of 2.5 percent on the first $1,200 of tax due. No collection allowance is authorized for tax collected in excess of $1,200. The maximum amount of collection allowance authorized for any filing period for any electronic sales and use tax return is $30.

2. Dealers reporting and remitting tax by electronic means on the following returns are entitled to the collection allowance only when the electronic return is timely submitted and the amount due on the return is timely paid by electronic means:

a. Form DR-15EZ, Sales and Use Tax Return;

b. Form DR-15, Sales and Use Tax Return; or

c. Form DR-15CON, Consolidated Summary-Sales and Use Tax Return, and Form(s) DR-7, Consolidated Sales and Use Tax Return.

3. A collection allowance is not authorized for use tax reported on Form DR-15MO, Out-of-State Purchase Return.

4. Forms DR-7, DR-15, DR-15CON, DR-15EZ, and DR-15MO are incorporated by reference in Rule 12A-1.097, F.A.C.

(c) Dealers operating more than one place of business and filing a consolidated tax return by electronic means, where the consolidated return provides the monthly business activity for each location, are allowed the collection allowance for each reporting and registered location. Dealers who report tax collected within each county by electronic means using a county-control number are entitled to the collection allowance based upon the total amount reported on the county-control reporting number.

(d) The collection allowance will not be allowed when:

1. The tax reported on an electronic return is not timely paid by electronic means or is delinquent at the time of payment;

2. The required tax return is not submitted by electronic means or is delinquent; or

3. The required electronic tax return filed is incomplete. An “incomplete return” is a return that lacks such uniformity, completeness, and arrangement that the physical handling, verification, or review of the return, or determination of other taxes and fees reported on the return, may not be readily accomplished.

(e)1. Any dealer who files a timely return by electronic means and timely pays the amount due on the return by electronic means may elect to donate the amount of collection allowance that is allowed on that return to the Educational Enhancement Trust Fund. The revenues deposited into this trust fund will go to school districts that have adopted resolutions stating that the funds from this trust fund will be used to ensure that up-to-date technology is purchased for the classrooms in those districts and that teachers are trained in the use of the technology. Dealers who are located outside Florida or whose business is located in a county where the school district has not adopted the required resolution may also elect to donate the amount of collection allowance that is allowed on their return to the trust fund. Funds received from these dealers will be equally distributed to school districts that have adopted the required resolutions.

2. Dealers who elect to donate their collection allowance must make an election on each electronic original return that is timely filed with the Department. The electronic payment required with the return must include the amount of collection allowance to be donated and must be timely paid. Dealers making the election on their electronic return should not enter the amount of collection allowance on the return. Dealers who operate two or more places of business and file an electronic consolidated return, must make the election on the consolidated return (Form DR-15CON, Consolidated Summary-Sales and Use Tax Return) and should not enter the amount of collection allowance on the location returns (Form DR-7, Consolidated Sales and Use Tax Return). The amount of the collection allowance will not be transferred to the Educational Enhancement Trust Fund when a dealer makes an election to donate the amount of its allowed collection allowance but does not include that amount with its payment.

3. When a dealer files an electronic return and timely pays the amount due with the return by electronic means, the election to donate the amount of the collection allowance to the Educational Enhancement Trust Fund may not be rescinded for that return. Dealers are not permitted to file an amended return to make an election to donate the amount of the collection allowance to the trust fund when the election was not made on the original return as filed.

4. When a dealer elects to transfer the collection allowance to the Educational Enhancement Trust Fund, the amount transferred will be the amount remaining after resolution of any tax, interest, or penalty due.

(3) Estimated tax.

(a) Each dealer who paid sales and use tax for the preceding state fiscal year (July 1 through June 30) in an amount greater than $200,000 is required to remit estimated tax, as provided in Section 212.11(4), F.S. The methods to calculate the dealer’s estimated tax liability are provided in Section 212.11(1)(a), F.S.

(b) Any dealer who files a consolidated return to report the business activity of multiple places of business must calculate the estimated tax under one of the methods provided in Section 212.11(1)(a), F.S., for each county or each reporting location, and use the same method to calculate the estimated tax liability on the consolidated return as a whole.

(c) The following are not required to be included in computing the estimated tax liability:

1. Any local option sales tax, such as the tourist development tax levied under authority of Section 125.0104, F.S.; the tourist impact tax levied under the authority of Section 125.0108, F.S.; the convention development tax levied under authority of Section 212.0305, F.S.; or the discretionary sales surtaxes levied under authority of Section 212.055, F.S.

2. The rental car surcharge levied under the authority of Section 212.0606, F.S.

3. Any solid waste fee, such as the new tire fee levied under the authority of Section 403.718, F.S., or the lead-acid battery fee levied under authority of Section 403.7185, F.S.

4. The motor vehicle warranty fee levied under the authority of Section 681.117, F.S.

5. The Miami-Dade County Lake Belt mitigation fee or water treatment plant upgrade fee imposed under Section 373.41492, F.S.

(d) A dealer engaged in the business of selling boats, motor vehicles, or aircraft that made at least one sale of a boat, motor vehicle, or aircraft with a sales price of $200,000 or greater in the previous state fiscal year may qualify for the payment of estimated tax pursuant to Section 212.11(4)(d), F.S. To qualify, such dealer must apply annually to the Department, using a Boat, Motor Vehicle, or Aircraft Dealer Application for Special Estimation of Taxes (Form DR-300400, incorporated by reference in Rule 12A-1.097, F.A.C.). The application must be delivered to the Department or be postmarked on or before October 1 of each year. The Department will grant to all qualified dealers the authority to pay estimated tax pursuant to Section 212.11(4)(d), F.S., for the following calendar year.

(e) Penalties – Failure to Pay Estimated Tax.

1. Any person who fails to timely remit the amount of estimated tax due under Section 212.11(4), F.S., is subject to a specific penalty of 10 percent of any unpaid estimated tax.

2. Any dealer who files a consolidated tax return and fails to timely remit the amount of estimated tax due based on the consolidated return as a whole, without regard to each business location, is subject to the specific penalty of 10 percent of any unpaid estimated tax. The specific penalty will be calculated based on any unpaid estimated tax due for each reporting business location.

(4) Penalties and interest.

(a) The penalties and interest provided in this subsection apply to the following sales and use taxes, discretionary sales surtax, surcharges, or fees imposed by or administered under Chapter 212, F.S.:

1. Convention development tax;

2. Discretionary sales surtax;

3. Lead-acid battery fee;

4. Miami-Dade County Lake Belt mitigation fee;

5. Motor vehicle warranty fee (lemon law fee);

6. Rental car surcharge;

7. Sales and use tax;

8. Tax on gross receipts on dry-cleaning;

9. Tax on perchloroethylene;

10. Tourist development tax;

11. Tourist impact tax; and,

12. Waste tire fee.

(b) Failure to Timely File a Return. Any person who fails to timely file any return that is required to report any tax, surtax, surcharge, or fee imposed by or administered under Chapter 212, F.S., is subject to a specific penalty of 10 percent of the amount of tax, surtax, surcharge, or fee shown on the return. This specific penalty may not be less than $50 for each reporting business location.

(c) Failure to Timely Pay. Any person who fails to timely pay any tax, surtax, surcharge, or fee imposed by or administered under Chapter 212, F.S., shown due on a return is subject to a specific penalty of 10 percent of the amount of the tax, surtax, surcharge, or fee shown due on the return. This specific penalty may not be less than $50 for each reporting business location.

(d) Failure to Timely File a Return and to Timely Pay. Any person who files a required return with the Department, but fails to file such return on or before the due date, and fails to timely pay the tax, surtax, surcharge, or fee shown due on the return, is subject to only one specific penalty of 10 percent of the tax, surtax, surcharge, or fee shown due on the return. This specific penalty may not be less than $50 for each reporting business location.

(e) Consolidated Returns and Reporting by County-Control Numbers. The specific penalty for failure to timely file a tax, surtax, surcharge, or fee return, or for failure to timely pay the tax, surcharge, surtax, or fee shown due on a return, is calculated based on each reporting business location. The $50 minimum applies to each reporting business location.

(f) Failure to Disclose. Any person required to make a return or to pay any tax, surtax, surcharge, or fee imposed by or administered under Chapter 212, F.S., who fails to disclose the tax, surtax, surcharge, or fee on a return, is subject to a specific penalty in the amount of 10 percent of the unpaid tax, surtax, surcharge, or fee for each 30 days, or fraction thereof, while the failure to disclose the tax, surtax, surcharge, or fee due continues. This specific penalty may not exceed a total of 50 percent of any such unpaid tax, surtax, surcharge, or fee.

(g) Interest shall accrue on any delinquent tax, surtax, surcharge, or fee imposed by or administered under Chapter 212, F.S., at the rate of interest established pursuant to Section 213.235, F.S., and Rule 12-3.0015, F.A.C. (prorated daily). Interest accrues on the amount due from the date of delinquency until the date on which the tax is paid.

History

• Rulemaking Authority 212.12(1)(d), 212.18(2), 213.06(1) FS. Law Implemented 125.0104(3)(g), 125.0108(2)(a), 212.03(2), 212.0305(3)(c), 212.04(3), (4), 212.0506(4), (11), 212.055, 212.06(1)(a), 212.0606, 212.11, 212.12(1), (2), (3), (4), (5), 212.14(2), 212.15(1), 213.235, 213.755, 373.41492, 376.70, 376.75, 403.718, 403.7185, 681.117(2) FS. History–New 10-7-68, Amended 6-16-72, 10-21-75, 6-9-76, 11-8-76, 2-21-77, 4-2-78, 10-18-78, 12-23-80, 8-26-81, 9-24-81, 11-23-83, 5-28-85, Formerly 12A-1.56, Amended 3-12-86, 1-2-89, 12-19-89, 12-7-92, 10-20-93, 10-17-94, 3-20-96, 4-2-00, 6-19-01, 8-1-02, 4-17-03, 9-28-04, 11-6-07, 9-15-08, 1-17-13, 5-9-13, 6-14-22, 1-1-24, 12-29-25.

Fla. Admin. Code R. 12A-1.057 Alcoholic and Malt Beverages

(1)(a) Alcoholic beverages, including beer, ale, and wine are taxable.

(b) Except as provided in Section 212.04(4), F.S., a deader will add the tax to the sale price (including any other state and federal taxes) of each sale and may not advertise or hold out to the public in any manner that the dealer will pay all or any part of the tax or will relieve the purchaser from the payment thereof.

(c) However, nothing herein contained shall be construed as prohibiting a dealer from setting his prices on the sale of alcoholic beverages in such a manner as to avoid the handling of pennies, provided each and every one of the dealer’s price lists shows the price of the beverage and the amount of tax due as separate items.

(2) Any person desiring to sell such beverages at retail must first qualify as a dealer under Chapter 212, F.S., before applying to the Division of Alcoholic Beverages and Tobacco, Department of Business and Professional Regulation, for a license.

(3) In some instances, it may be impractical for a dealer to separately record the sales price of the beverage and the tax thereon. In such cases, for the privilege of deviating from the requirement of subsection (1) above, a dealer shall remit tax in accordance with one of the methods outlined below, and the dealer’s records must substantiate the method so elected.

(a) When the public has not been put on notice through the posting of price lists or signs prominently displayed throughout the establishment that the tax is included in the total charge, package stores which sell no mixed drinks shall remit tax at rate of 6.35 percent of their total receipts. Dealers who sell mixed drinks or a combination of mixed drinks and package goods shall remit the tax at the rate of 6.59 percent of their total receipts.

1. Example: A package store which sells no mixed drinks and whose total receipts are $2,000 would multiply $2,000 by 6.35 percent to compute tax due of $127.00.

2. Example: A dealer who sells drinks or a combination of drinks and package goods and whose total receipts are $2,000 would multiply $2,000 by 6.59 percent to compute tax due of $131.80.

(b) Where it can be demonstrated that the public has been put on notice by means of price lists or signs posted prominently throughout the establishment that the total charge includes tax, the dealer shall report the tax collected by deducting the tax from the total receipts using the methods shown below:

1. Example: A package store which sells no mixed drinks and whose total receipts are $2,000 would divide $2,000 by 1.0635 to compute gross sales of $1,880.58 and tax collected of $119.42.

2. Example: A dealer who sells drinks or a combination of drinks and package goods and whose total receipts are $2,000 would divide $2,000 by 1.0659 to compute gross sales of $1,876.35 and tax collected of $123.65.

(c) Notwithstanding other provisions of this subsection, where the books and records of a dealer can clearly demonstrate without exception a lesser tax rate, the dealer shall apply the lesser tax rate in a manner consistent with paragraphs (a) and (b) of this subsection.

(4)(a) Wine or fortified wine and liquor or distilled spirits provided by distributors or vendors for the purpose of “wine tasting” and “spirituous beverage tasting” as contemplated under the provisions of Chapters 564 and 565, F.S., is exempt from the tax imposed by Chapter 212, F.S.; however, any charge imposed upon the general public for “wine tasting” and “spirituous beverage tasting” is subject to tax.

(b) Except as otherwise provided in paragraph (a), above, beverages or drinks, subject to taxation under Chapter 212, F.S., provided by distributors, vendors, or any other person for the purpose of tasting or promoting any such product are taxable.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(a)1.a., (2), (3), (4), 212.06, 212.07(2), (4), 212.08(4)(b), (7)(s), 212.19 FS. History–New 10-7-68, Amended 6-16-72, 1-10-78, 7-16-79, 7-20-82, Formerly 12A-1.57, Amended 12-13-88, 6-4-08, 6-14-22.

Fla. Admin. Code R. 12A-1.059 Fuels

(1)(a) The sale of fuel, including crude oil, fuel oil, kerosene, sterno, diesel oil, natural and manufactured gas, coke, charcoal briquets, cord wood, and other fuel products is taxable. Natural and manufactured gas is exempt when separately metered and sold for use in residential households (including trailer lots) directly to the actual consumer by utilities who are required to pay the gross receipts tax imposed by Section 203.01, F.S. The exemption for residential households (including trailer lots) also includes L. P. gas, crude oil, fuel oil, kerosene, diesel oil, coke, charcoal briquets, cord wood, and other household fuels. Such sales of utilities and fuels are exempt regardless of whether such sales are billed to the landlord; provided, however, that if any part of the utility or fuel is used for a non-exempt purpose, the entire sale is taxable. Landlords shall provide separate meters for any non-exempt consumption of utilities or fuels. This exemption shall also apply to the sale of utilities and fuels used in residential model homes or common areas of apartments, cooperatives, and condominiums provided that none of the utilities or fuels are used in residential model homes which are used as sales offices or for other non-exempt purposes. No exemption certificate or affidavit is required to be obtained by a dealer of special fuel or a dealer of liquefied petroleum gases when the fuel is sold and delivered into the customer’s storage facility located on the customer’s residential premises, when the fuel is for the purposes of home cooking or home heating. Hotels and motels cater primarily to transient guests and are not considered to be residential households. Therefore, this exemption shall not apply to utilities or fuels sold for use in hotels and motels.

(b) The charge for the filling of liquefied petroleum (L.P.) gas tanks, including tanks used in recreational vehicles, is exempt when the L.P. gas will be used by the purchaser for the purposes of residential heating, cooking, lighting, or refrigeration. The dealer must document on the customer’s invoice or other written evidence of sale that the charge is for filling a L.P. tank with the gas sold for the purposes of residential household cooking, heating, lighting, or refrigeration.

(2)(a) “Boiler” fuels. When purchased as a combustible fuel, purchases of natural gas, residual oil, recycled oil, waste oil, solid waste as defined in Section 403.703(35), F.S., coal, sulfur, hydrogen, wood, wood residues, or wood bark used in an industrial manufacturing, processing, compounding, or production process at a fixed location in this state is exempt. For the purpose of this exemption, the term “residual oil” means ASTM Grades No. 5 and No. 6, heavy diesel, and bunker C. This exemption does not apply to any type of liquefied petroleum gases, naphtha, kerosene, or distillate fuel oil, such as diesel fuels, No. 1 and No. 2 heating oils, and No. 4 fuel oil. The term “fixed location” means being permanently affixed to one location or plant site, or any portable plant which may be set up for a period of not less than six months in a stationary manner so as to perform the same industrial manufacturing, processing, compounding, or production process that could be performed at a permanent location or plant site. To be entitled to this exemption at the time of purchase, the purchaser must issue the seller a certificate stating that the combustible fuel is used in an industrial manufacturing, processing, compounding, or production process. The following is a suggested format of a certificate to be used for this purpose:

SUGGESTED PURCHASER’S EXEMPTION CERTIFICATE

BOILER FUELS USED TO PRODUCE TANGIBLE PERSONAL PROPERTY FOR SALE

I, the undersigned individual, hereby certify that I am the purchaser or the purchaser’s agent or representative authorized to act for ________________________ (PURCHASER) in the purchase of boiler fuels. The purchases of natural gas, residual oil, recycled oil, waste oil, solid waste as defined in Section 403.703(35), Florida Statutes, coal, sulfur, hydrogen, wood, wood residues, or wood bark from _______________________________ (SELLER) under account number __________ will be exclusively used as a combustible fuel in the manufacturing, processing, compounding, or production of tangible personal property for sale. This industrial process is located at ____________________________ (ADDRESS) in _______________, Florida.

I further certify that_____________________ (PURCHASER) is not subject to regulation by the Division of Hotels and Restaurants, Department of Business and Professional Regulation, and the purchase of combustible fuel as identified in this certificate is exempt from sales and use tax as provided in Section 212.08(7)(b), Florida Statutes.

I understand that if I fraudulently issue this certificate to evade the payment of sales and use tax, I will be liable for payment of the tax plus a penalty of 200% of the tax and may be subject to conviction of a third-degree felony.

Under penalties of perjury, I declare that I have read the foregoing certificate and that the facts stated in it are true.

---

Signature of Purchaser or Purchaser’s Agent or Representative

---

Title

---

Date

(b) The sale of boiler fuels that are not used in manufacturing, processing, compounding, or producing items of tangible personal property for sale is subject to tax. The sale of boiler fuels used by any firm subject to regulation by the Division of Hotels and Restaurants of the Department of Business and Professional Regulation is subject to tax.

Cross Reference: Rule 12A-1.022, F.A.C., for guidelines on federal excise taxes, gross receipts tax, and other fees; Rules 12A-1.087 and 12B-5.130, F.A.C.

(3)(a) Natural gas used to generate electricity in a non-combustion fuel cell used in stationary equipment is exempt. To purchase natural gas used for this purpose tax-exempt, the purchaser is required to provide an exemption certificate to the selling dealer declaring that the natural gas will be used to generate electricity in a non-combustion fuel cell used in stationary equipment. The following is a suggested format of a certificate:

EXEMPTION CERTIFICATE

NATURAL GAS USED TO GENERATE ELECTRICITY

IN A NON-COMBUSTION FUEL CELL USED IN STATIONARY EQUIPMENT

I certify that natural gas purchased on or after _____________________________________ (Date) from ________________________ (Selling Vendor’s Name) will be used to generate electricity in a non-combustion fuel cell used in stationary equipment.

I understand that if I use the purchased natural gas for any nonexempt purpose, I must pay tax on the purchase price of the natural gas directly to the Florida Department of Revenue.

I understand that if I fraudulently issue this Certificate to evade the payment of Florida sales tax, I will be liable for payment of the tax, plus a penalty of 200% of the tax, and may be subject to conviction of a third degree felony.

Under the penalties of perjury, I declare that I have read the foregoing Certificate and the facts stated herein are true.

---

SIGNATURE OF PURCHASER OR AUTHORIZED AGENT

---

TITLE OR DESIGNATION

---

DATE

(4)(a) Dyed diesel fuel used in a trade or business is subject to use tax. Every person who uses dyed diesel fuel in a trade or business is required to register as a dealer to remit use tax due on the total cost price of the fuel consumed, unless:

1. The diesel fuel is specifically exempt from sales tax; or

2. The dealer selling diesel fuel has elected to collect sales tax on sales to persons who use or consume the diesel fuel in a trade or business.

(b) The following sales or purchases of diesel fuel are exempt from sales and use tax:

1. Fuel upon which the fuel taxes imposed under Chapter 206, F.S., have been paid;

2. Fuel used for certain agricultural purposes, as provided in Rule 12A-1.087, F.A.C.; and,

3. Fuel purchased or stored for purposes of resale.

(5) Dyed diesel fuel used by a licensed common carrier to operate railroad locomotives or vessels used to transport persons or property for hire in interstate or foreign commerce is subject to the partial exemption provided in Section 212.08(4)(a)2., F.S. Tax is based on the mileage apportionment factor of the licensed carrier or vessel owner or operators. Dyed diesel fuel used exclusively for commercial fishing and aquacultural purposes is exempt. See Rules 12A-1.064 and 12A-1.0641, F.A.C.

(6) Natural gas fuel as defined in Section 206.9951(2), F.S., natural gas, compressed natural gas, and liquefied natural gas are exempt from sales tax when placed into the fuel supply system of a motor vehicle.

Cross Reference: Rule 12A-1.022, F.A.C., for guidelines on federal excise taxes, gross receipts tax, and other fees; and Rule 12B-5.130, F.A.C.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(k), 212.06(3), 212.08(4)(a)2., (7)(b), (j) FS. History–New 10-7-68, Amended 6-16-72, 7-19-72, 12-11-74, 10-18-78, 7-3-79, 6-3-80, 12-23-80, 8-26-81, 12-31-81, 7-20-82, 10-13-83, Formerly 12A-1.59, Amended 12-13-88, 5-19-93, 9-14-93, 3-20-96, 10-2-01, 4-17-03, 6-12-03, 5-9-13, 1-20-14, 10-26-22.

Fla. Admin. Code R. 12A-1.060 Registration

(1) Persons required to register as dealers.

(a) Every person desiring to engage in or conduct any one of the following businesses in this state as a “dealer” must register with the Department of Revenue and obtain a separate certificate of registration for each place of business:

1. Sale of admissions or making of any charge for admission to any place of amusement, sport, or recreation or where there is any exhibition or entertainment subject to tax under Section 212.04, F.S.;

2. Sale, lease, let, rental, or granting a license to use tangible personal property subject to tax under Chapter 212, F.S.;

3. Repairs or alterations of tangible personal property subject to tax under Chapter 212, F.S.;

4. Sales of electrical power or energy subject to tax under Section 212.05(1)(e), F.S.;

5. Sales of services subject to tax under Section 212.05(1)(i), F.S.;

6. Sales of prepaid calling arrangements subject to tax under Section 212.05(1)(e), F.S.;

7. Operation of coin-operated amusement machines subject to tax under Section 212.05(1)(h), F.S.;

8. Operation of vending machines subject to tax under Section 212.0515, F.S.;

9. Lease, let, rental, or granting licenses to use any living quarters or sleeping or housekeeping accommodations subject to the transient rental tax imposed under Section 212.03, F.S.

10. Lease or rental of parking or storage space for motor vehicles in parking lots or garages;

11. Lease or rental of docking or storage space in boat docks or marinas;

12. Lease or rental of tie-down or storage space for aircraft;

13. Soliciting, offering, providing, entering into, issuing, or delivering any service warranty subject to tax under Section 212.0506, F.S.;

14. Purchasing diesel fuel for consumption, use, or storage by a trade or business, as provided in Section 212.0501, F.S.;

15. Engaging in any business for which a person desires to obtain self-accrual authorization, as provided in Section 212.183, F.S., or authority to remit sales tax on behalf of its independent distributors or independent sellers, as provided in Section 212.18(3), F.S. See Rule 12A-1.0911, F.A.C.;

16. An air carrier electing to remit tax under the provisions of Section 212.0598, F.S.; or

17. Any person electing to obtain self-accrual authorization in order to pay tax based on the partial exemptions provided in Sections 212.08(8) and (9), F.S.

(b)1. For purposes of this rule, a “dealer” means a dealer, as defined in Section 212.06(2), F.S.

2. The term “dealer” does not include a “nonresident print purchaser.” A “nonresident print purchaser” is any person whose only owned or leased property in this state, including property owned or leased by an affiliate, is located at the premises of a printer with which the purchaser has contracted for printing. The property for which the purchaser has contracted for printing must be the final printed product or property from which the printed product is produced. Nonresident print purchasers are not required to register as dealers. For guidelines regarding sales made to nonresident print purchasers, see subsection (5) of Rule 12A-1.027, F.A.C.

(c) The term “dealer” includes a retailer who transacts a substantial number of remote sales or a marketplace provider that has a physical presence in Florida or that makes or facilitates through its marketplace a substantial number of remote sales.

(d) The Department will NOT issue a Certificate of Registration for the purpose of sales and use tax to any out-of-state applicant who requests a certificate for the sole purpose of making tax-exempt purchases of items for resale outside this state when:

1. The applicant has no permanent, licensed place of business in this state; and,

2. The applicant does not make retail sales within this state.

(e) For purposes of this rule, a “place of business” is a location where a dealer engages in an activity or activities described in this subsection. A place of business includes the entire contiguous area in which the dealer carries on an activity or activities that require registration. A dealer that engages in more than one activity requiring registration within a contiguous area generally is required to obtain only one registration certificate for that location. The Department will, however, treat areas within a single contiguous location as separate places of business and require a dealer to obtain separate registration certificates if the activities carried on in those areas are subject to taxation under different provisions of Chapter 212, F.S., the activities are not functionally related, and the efficient administration of the taxes imposed by Chapter 212, F.S., is facilitated by multiple registrations. The Department will permit a dealer to obtain separate registrations for activities carried on at a single contiguous location at the dealer’s request if the dealer keeps separate financial records for the activities and the activities are not functionally related. Under no circumstances will a dealer be subject to more than one penalty for failure or refusal to obtain a registration certificate for a single contiguous location, even if the dealer could be required or permitted to obtain separate registration certificates for multiple activities carried on at the location. The following examples illustrate the application of this rule in determining whether more than one place of business exists at a single contiguous location.

1. A taxpayer owns a parcel of land with a building and a parking area. The building is divided into three areas. In one area, the taxpayer operates a retail building supply store. In the second area, which has a separate customer entrance, the taxpayer operates a retail store where custom furniture is made and sold. The third area in the building is used as warehouse and office space serving both stores. When ordering inventory, taxpayer combines orders of lumber, hardware, paints, and stains from suppliers for the building supply store and for the furniture store. All inventory is purchased for resale and no records are maintained of whether materials are sold in the building supply store or incorporated into furniture for sale in the furniture store. The taxpayer records sales for both activities in the same accounting records. The parcel of land and the building are a single place of business for registration purposes. Separate registration cannot be required because both the sale of the building supplies and the sale of furniture are taxable under Section 212.05(1), F.S. In addition, because of shared inventory and sales records, the two activities are functionally related. Because the activities are functionally related and separate records are not kept, the taxpayer would not be permitted to treat them as separate places of business for registration purposes.

2. A taxpayer owns a parcel of land with a building and a parking area. The building is divided into three areas. In one area, the taxpayer operates a retail building supply store. In the second area, which has a separate customer entrance, the taxpayer operates a retail store where custom clothing is made and sold. The third area in the building is used as warehouse and office space serving both stores. Separate sales and other accounting records are maintained for the two stores. Unless the taxpayer applies for separate registration certificates, the parcel of land and the buildings are a single place of business for registration purposes. Separate registration cannot be required because both the sale of the building supplies and the sale of clothing are taxable under Section 212.05(1), F.S. If the taxpayer applies for separate certificates of registration for the two activities, the Department then would treat the building supply store and the clothing store as separate places of business because they are not functionally related and separate accounting is done for each.

3. A taxpayer owns a large tract of land. The taxpayer operates an amusement park on part of the land. The taxpayer charges admission for entrance to the park. In addition to amusement rides, the park facilities include restaurants and a gift shop operated by the taxpayer and concession stands throughout the park where concessionaires sell snacks and beverages. The taxpayer also operates a resort hotel adjacent to the amusement park on the same tract of land. Because of its proximity to the park, the hotel caters primarily to park visitors. The hotel contains several restaurants and a gift shop operated by the taxpayer as well as retail stores that taxpayer leases to other merchants. The hotel also contains offices from which the taxpayer manages the entire amusement park and hotel complex and centralized storage areas serving the entire complex. The taxpayer orders food for all its restaurants and other materials and supplies on combined purchase orders, regardless of where in the park and hotel complex the food, materials, or supplies will be used. Employees may be assigned to work anywhere throughout the entire park and hotel complex as needed. The taxpayer treats the entire complex as a single business for purposes of financial accounting. The taxpayer would be entitled to treat the entire tract of land with amusement park and hotel facility as a single place of business for registration purposes. Even though the taxpayer’s activities are taxable pursuant to several different sections of Chapter 212, F.S., all of the activities are functionally related parts of a single tourism/resort business under the taxpayer’s operational methods and accounting practices.

4. A taxpayer owns a large tract of land. The taxpayer operates an amusement park on part of the land. The taxpayer charges admission for entrance to the park. In addition to amusement rides, the park facilities include restaurants and a gift shop operated by the taxpayer and concession stands throughout the park where concessionaires sell snacks and beverages. The taxpayer also operates a resort hotel adjacent to the amusement park on the same tract of land. Because of its proximity to the park, the hotel caters primarily to park visitors. The hotel contains several restaurants and a gift shop operated by the taxpayer as well as retail stores that taxpayer leases to other merchants. The hotel also contains offices from which the taxpayer manages the entire amusement park and hotel complex and centralized storage areas serving the entire complex. The taxpayer orders food for amusement park restaurants and other materials and supplies for the amusement park separately from food, materials, and supplies for the hotel complex. Employees may be assigned to work anywhere in the entire amusement park or anywhere in the hotel complex but no employee is assigned to work in both areas. The taxpayer treats the amusement park as one business and the hotel complex as a separate business for purposes of financial accounting. The taxpayer would be entitled to treat the entire tract of land with amusement park and hotel facility as a single place of business for registration purposes. Even though the taxpayer’s activities are taxable pursuant to several different sections of Chapter 212, F.S., and the amusement park and hotel are not operated as functionally related activities, requiring two registration certificates would not facilitate efficient administration of Chapter 212, F.S. If the taxpayer applied for two registration certificates, the Department then would treat the amusement park and the hotel complex as separate places of business because they are not functionally related and separate accounting is done for each.

5. A taxpayer owns a large tract of land. The taxpayer operates an amusement park on part of the land. The taxpayer charges admission for entrance to the park. In addition to amusement rides, the park facilities include restaurants and a gift shop operated by the taxpayer, concession stands throughout the park where concessionaires sell snacks and beverages, and maintenance and storage buildings. The taxpayer manages the amusement park activities, including purchasing and payroll functions from taxpayer’s corporate headquarters in another city. The taxpayer also owns a resort hotel adjacent to the amusement park on the same tract of land. The hotel contains several restaurants and retail stores that are leased to other merchants. Because of its proximity to the park, the hotel caters primarily to park visitors. The taxpayer has entered into a management agreement with a third party management company. The management company is responsible, under its contract with the taxpayer, for all aspects of operating the hotel, including purchasing, paying suppliers, personnel, leasing retail stores to merchants, financial record keeping, and tax matters. The management company collects sales taxes in regard to the hotel operations and remits those taxes on taxpayer’s behalf to the state. All records in regard to the hotel operations are maintained by the management company at the hotel premises. The taxpayer will be required to treat the amusement park and the hotel as separate places of business. The two activities are not functionally related in terms of operations or accounting. In addition, because a separate return will be prepared and filed for the hotel operations, it will facilitate administration of Chapter 212, F.S., if a separate registration and reporting number is assigned.

6. A taxpayer operates a manufacturing facility and a retail outlet on the same tract of land. Statutes have been enacted to provide sales and use tax exemptions to businesses manufacturing the type of product the taxpayer manufactures. Those statutes require the department to make annual reports to the legislature and the office of the governor on the volume of sales made by manufacturers claiming the exemption. The department will require separate registration of the manufacturing business to facilitate compiling the required annual report.

(2) How to register as a dealer.

(a) Registration with the Department for the purposes of sales and use tax is available by using one of the following methods:

1. Registering through the Department’s website at floridarevenue.com using the Department’s eServices.

2. Filing a Florida Business Tax Application (Form DR-1, incorporated by reference in Rule 12A-1.097, F.A.C.), with the Department, as indicated on the registration form.

(b) A separate application is required for each place of business. If a business previously submitted Form DR-1 to the Department and holds an active certificate of registration or reemployment tax account, the business may use an Application for Registered Businesses to Add a New Florida Location (Form DR-1A, incorporated by reference in Rule 12A-1.097, F.A.C.) in the following circumstances:

1. To register an additional business location or Florida rental property, or

2. To update a registered location that has moved from one Florida county to another.

(c) Each application submitted to the Department must contain sufficient information to facilitate the processing of the application.

(3) Registration of marketplace providers and remote sellers.

(a) Marketplace providers and remote sellers, as defined in Rule 12A-1.103, F.A.C., must register electronically with the Department to collect and remit sales tax and discretionary sales surtax and obtain a separate certificate of registration for each marketplace and each place of business in Florida. A marketplace is deemed a separate place of business. A separate application is required for each place of business located within Florida. Out-of-state businesses can submit one application for all out-of-state locations.

(b) Electronic registration can be completed by going to floridarevenue.com/taxes/registration. This applies to persons required to register pursuant to subparagraphs 1. and 2. below.

1. The following persons who have a physical presence in Florida must register using the Department’s electronic Florida Business Tax Application (Form DR-1, incorporated by reference in Rule 12A-1.097, F.A.C.).

a. Marketplace providers.

b. Marketplace sellers who make sales outside of the marketplace.

2. The following persons who do not have a physical presence in Florida must register electronically using the Department’s electronic registration application for marketplace providers and marketplace sellers. The information required in this electronic application is provided in the Florida Business Tax Application for Marketplace Providers and Remote Sales (Form DR-1MP, effective 01/22, hereby incorporated by reference, http://www.flrules.org/Gateway/reference.asp?No=Ref-14233) and available on the Department’s website at floridarevenue.com/taxes/sut. This form is provided for informational purposes only.

a. Marketplace providers who make or facilitate a substantial number of remote sales.

b. Marketplace sellers who make a substantial number of remote sales outside of the marketplace.

c. Remote sellers, as defined in Rule 12A-1.103, F.A.C.

(4) Registration of transient accommodations.

(a) For purpose of this rule, a “transient accommodation” shall have the same meaning as that term is defined in paragraph (3)(f) of Rule 12A-1.061, F.A.C.

(b)1. Any person exercising a taxable privilege of engaging in the business of renting, leasing, letting, or granting licenses to others to use transient accommodations is required to register as a dealer and obtain a separate dealer’s certificate of registration for each place of business where transient accommodations are provided.

2. The agent, representative, or management company for a time-share resort which rents, leases, lets, or grants licenses to others to use time-share periods under written agreement(s) with time-share period owners is presumed to be the dealer who is required to be registered. The agent, representative, or management company may collectively register the time-share units, even if the agent, representative, or management company may not rent, lease, let, or grant licenses to use to the transient public for each and every time-share period at such resort.

(c)1. Any person who exclusively enters into a bona fide written lease, as provided in subsection (17) of Rule 12A-1.061, F.A.C., for continuous residence for periods longer than six months to lease, let, rent, or grant a license to others to use, occupy, or enter upon any transient accommodation is NOT required to register with the Department.

2. Any transient accommodation that is leased under the terms of a bona fide written agreement for continuous residence for longer than six months in duration is NOT required to be registered with the Department by the owner or the owner’s representative.

(d) Any agent, representative, or management company may collectively register transient accommodations, including timeshare units, under the following conditions:

1. The agent, representative, or management company holds a valid dealer’s certificate of registration for each place of business;

2. The agent, representative, or management company is authorized by means of a written agreement with the property owner to collect rental charges or room rates due on any transient accommodations; and,

3. The written agreement contains the following provisions acknowledged by the property owner:

a. The property owner is ultimately liable for any sales tax due the State of Florida on rentals, leases, lets, or licenses to use the owner’s property; and,

b. In the event that the State is unable to collect any taxes, penalties, and interest due from the rental, lease, let, or license to use the owner’s property, a warrant for such uncollected amount will be issued and will become a lien against the owner’s property until satisfied.

(e)1. To collectively register transient accommodations that are located in a single county, the agent, representative, or management company holding a dealer’s certificate of registration may file an Application for Collective Registration of Living or Sleeping Accommodations (Form DR-1C, incorporated by reference in Rule 12A-1.097, F.A.C.). A separate Form DR-1C is required for each county.

2. The agent or management company must provide the following information for each property, other than a time-share unit, which is to be collectively registered:

a. Property owner’s name;

b. Property owner’s federal identification number, social security number, or individual taxpayer identification number;

c. Property owner’s mailing address;

d. Location address of each property; and,

e. An indication of whether the property is located within a city’s limits.

3. The agent or management company must provide the following information for each time-share unit, which is to be collectively registered:

a. Designation of the time-share unit;

b. Time-share unit’s location address; and,

c. An indication of whether the time-share unit is located within a city’s limits.

4. In lieu of completing all required information on Form DR-1C for each unregistered property or time-share unit, all information required for each property or time-share unit may be submitted to the Department in a schedule attached to the completed “Agent/Representative/Management Company Sales and Use Tax Registration Information” section of Form DR-1C.

5. A certificate of registration will be issued to the property owner for each property that is not a time-share unit and mailed to the agent’s address. For time-share units, a certificate of registration will be issued and mailed to the agent or management company.

6. Social security numbers are used by the Florida Department of Revenue as unique identifiers for the administration of Florida’s taxes. Social security numbers obtained for tax administration purposes are confidential under Sections 213.053 and 119.071, F.S., and are not subject to disclosure as public records. Collection of an individual’s social security number is authorized under state and federal law. Visit the Department’s website at floridarevenue.com and select “Privacy Notice” for more information regarding the state and federal law governing the collection, use, or release of social security numbers, including authorized exceptions.

(5) Registration of exhibitors.

(a) For purposes of this rule, the following definitions are provided:

1. An “exhibitor” means a person who enters into a written agreement authorizing the display by that person of tangible personal property or services at a convention or trade show.

2. A “trade show or convention” is a meeting of limited duration of individuals with organizational ties or similar interests, one of the purposes of which is the displaying of products or services or sharing information on them, without a major purpose of making retail sales of tangible personal property.

3. A “sale” is as defined in Section 212.02(15), F.S.

4. A “retail sale” is as defined in Section 212.02(14), F.S.

(b) Any exhibitor who displays tangible personal property or services at a convention or trade show is required to register as a dealer and collect and remit tax on sales of taxable property or services subject to Florida sales tax when:

1. The written agreement authorizes an exhibitor to make retail sales in this state of taxable tangible personal property or services;

2. The written agreement authorizes an exhibitor to make remote sales, pursuant to Section 212.0596, F.S.; or

(c) An exhibitor who does not carry on any other activity in Florida that requires registration is NOT required to register as a dealer to collect sales tax when:

1. The written agreement prohibits the sale of taxable tangible personal property or taxable services; or

2. The written agreement provides that the exhibitor shall only make sales for the purposes of resale and the exhibitor obtains a copy of the purchaser’s Annual Resale Certificate, as provided in Rule 12A-1.039, F.A.C.

(6) Cash deposits, surety bonds, or letters of credit. The Department will utilize the criteria in this subsection when it requires a cash deposit, surety bond, or irrevocable letter of credit as a condition to any person obtaining or retaining a dealer’s certificate of registration. Nothing in this subsection prohibits the Department from pursuing any other authorized means to collect a tax or fee liability. Nothing in this subsection requires the Department to permit the posting of a cash deposit, surety bond, or irrevocable letter of credit instead of revoking or refusing to issue a dealer’s certificate of registration. This subsection does not apply to a person currently in compliance with a written agreement with the Department regarding its tax or fee liabilities and obligations.

(a) Definitions. For the purposes of this subsection:

1. The word “security” means cash deposits, surety bonds, or irrevocable letters of credit. Bonds required under this subsection must be issued by a surety company authorized to do business in this state as a surety. Irrevocable letters of credit must be issued by a bank authorized to do business in the state as a bank and must be engaged by a bank as an agreement to honor demands for payment.

2. “Tax or fee liability” means any liability for any of the following taxes or fees, penalty, or interest:

a. Any sales or use tax, discretionary sales surtax, or local option tax imposed under Chapter 212, F.S.;

b. Any tourist development tax levied under Section 125.0104, F.S., or tourist impact tax levied under Section 125.0108, F.S.;

c. The rental car surcharge levied under Section 212.0606, F.S.;

d. Any solid waste fee, such as the new tire fee levied under Section 403.718, F.S., or the lead-acid battery fee levied under Section 403.7185, F.S.;

e. The motor vehicle warranty fee levied under Section 681.117, F.S.;

f. Any penalty or interest imposed under Section 212.12(2) or 213.235, F.S.;

(b) Qualifying Events. Security will be required when the Department determines that any of the following qualifying events apply:

1. The person owns or manages a business that has no permanent business location in Florida and there is evidence that the person will fail to remit taxes to the state;

2. The person operates from a temporary location in Florida for less than six months in any consecutive twelve-month period, and there is evidence that the person will fail to remit taxes to the state;

3. The person has had a previous certificate of registration revoked;

4. The person failed to comply with the provisions of a judgment, settlement agreement, closing agreement, stipulated payment agreement, or consent agreement entered into with the Department;

5. A warrant is currently unsatisfied in whole or in part; or

6. The person is seeking an additional registration and has an outstanding liability of $2,500 or more.

(c) Security Amount Determination.

1. When the Department requires a person with an existing certificate of registration to post security, the required security will be equal to the person’s total estimated tax or fee liability, as determined by the Department, for the preceding twelve calendar months, plus the person’s outstanding tax or fee liability.

2. When the Department requires a person applying for a new certificate of registration to post security, the following criteria will be used to determine the amount required, unless the specific facts and circumstances warrant a higher amount not to exceed the sum of the person’s total estimated tax or fee liability, as determined by the Department, for twelve calendar months, plus the person’s outstanding tax or fee liability:

a. If the person is or will be:

(I) A monthly filer, security equal to six months’ estimated tax or fee liability will be required.

(II) A quarterly filer, security equal to nine months’ estimated tax or fee liability will be required.

(III) A semiannual or annual filer, security equal to one year of the estimated tax or fee liability will be required.

b. When considering specific facts and circumstances to determine if additional security will be required under this subparagraph, the Department will consider:

(I) The value of the person’s real property holdings in Florida;

(II) The value of the person’s assets in Florida, including the liquidity or mobility of the assets; or

(III) Outstanding money judgments against the person.

(d) Procedural Issues Regarding the Security Requirement.

1. When the Department determines that security is required as a condition to obtaining a dealer’s certificate of registration, it will send written notice of intent to deny registration to the person at the person’s last known address as it appears in the Department’s records. When the Department determines that security is required as a condition to retaining a dealer’s certificate of registration, it will send a notice of intent to revoke registration to the person at the person’s last known address as it appears in the Department’s records. The person must either post security or send a written request for a conference to the Department. The security or written request for a conference must be received by the Department within 30 consecutive calendar days after the date of the notice.

2.a. A request for a conference must be made directly to the office designated in the notice and must:

(I) State the reasons for objecting to the requirement to post security;

(II) Request an informal conference with the Department regarding the requirement to post security;

(III) Include a copy of the notice informing the person of the requirement to post security; and,

(IV) Be mailed, hand delivered, or faxed to the office address or fax number provided in the notice of the requirement to post security.

b. Requests postmarked, hand delivered, or faxed more than 30 consecutive calendar days after the date of issuance of the notice will be deemed late filed and shall result in the forfeiture of the person’s right to such conference, unless the person has timely secured a written extension of time within which to file a request for a conference.

c. An extension of time in which to request a conference may be secured by mailing, hand delivering, or faxing a written request to the office designated in the notice. Each extension of time will be for 30 consecutive calendar days. Within a 30 consecutive calendar day extension period, the person may submit a request in writing to the office designated in the notice for an additional 30 consecutive calendar day extension within which to request a conference.

d. Failure to mail, hand deliver, or fax a written request for a conference or a written request for an additional 30 consecutive calendar day extension within a pending extension period shall result in forfeiture of the right to such conference.

e. If a conference is requested, it will be held at the earliest convenience of both the person and the Department, but it will not be held more than 60 consecutive calendar days after the notice, unless specifically agreed to in writing by the Department.

f. If a request for a conference is not timely made, the right to seek a conference is waived.

g. The 30 consecutive calendar days provided for requesting a conference may be waived by the person to expedite resolution of the issue.

h. The person has the right to request an administrative hearing, to be conducted in accordance with Section 120.57, F.S. and rule Chapter 28-106, F.A.C., if the notice of the requirement to post security becomes final. For this purpose, the Department’s notice will become final if:

(I) An agreement is not reached after the informal conference;

(II) A written request for a conference or a written request for an extension of time for requesting a conference is not timely filed; or

(III) The right to an informal conference is waived.

3. If the person fails to post security or to secure review of the requirement to post security, the Department will deny the application for a certificate of registration, will revoke any existing certificate, and request that the Department of Legal Affairs proceed by injunction to prevent such person from doing business in the state until the appropriate security is posted.

4. Any security posted under this subsection must solely benefit the Florida Department of Revenue, and must be conditioned upon the timely compliance with the person’s tax or fee liability and the terms and conditions of any compliance agreement entered into between the person and the Department.

5. Any person posting security in the form of a cash deposit must complete a Certificate of Cash Deposit or Cash Bond (Form DR-17A, incorporated by reference in Rule 12A-1.097, F.A.C.). Suggested formats for the irrevocable letter of credit and the surety bond are available on the Department’s website at floridarevenue.com.

6. An irrevocable letter of credit must contain an expiration date that is at least eighteen months after the stated date of issuance.

7. An irrevocable letter of credit or surety bond must contain a provision that requires the issuing bank or surety company to notify the Department of the expiration or termination of the irrevocable letter of credit or surety bond by certified mail at least 60 days prior to the expiration or termination.

8. If security is still required under this subsection and an irrevocable letter of credit or surety bond expires or is terminated without substitution, the Department will revoke the applicable person’s existing certificate and request that the Department of Legal Affairs proceed by injunction to prevent such person from doing business in the state until substitute security is posted.

9. No interest will be paid by the state to any person for the deposit of any security under this subsection.

(e) Insufficiency of Security. If the Department determines that the amount of any existing security is insufficient to ensure payment of the amount of the tax or fee liability, penalties, and interest for which the person is or may become liable, or if the amount of the security is reduced or released whether by judgment rendered or by use of the security to pay the delinquent tax or fee liability, penalties, or interest, the Department will provide written notification to the person of the revised amount of security required. The person is required to file an additional security in the amount required by the Department, or request a conference within 30 consecutive calendar days, failing which the Department will revoke any existing registration. If a new security is furnished, the Department, as appropriate, will cancel, surrender, or discharge the previous security, for which the new security is substituted.

(f) Security Duration. If the person complies with its tax or fee liability for a period of twelve consecutive months, upon written request, the Department will release the surety bond or irrevocable letter of credit. A person requesting the return of a cash deposit must file Form DR-29, Application for Release or Refund of Security (incorporated by reference in Rule 12A-1.097, F.A.C.). If the person ceases operation of the business during the time the security is being held by the Department, a written request must be made within 90 days of ceasing operations, requesting the return of the deposit or release of the surety bond or irrevocable letter of credit. The Department will offset any reimbursements of security under this subsection against any outstanding tax or fee liability of the person.

(g) Delinquent Payments. If any person is delinquent more than 30 days in the payment of its tax or fee liability, the Department will initiate an action to seek release of moneys from the security held by the Department.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 119.071(5), 212.03(1), (2), 212.04(4), 212.0596, 212.05965, 212.06(2), 212.14(4), 212.16(1), (2), 212.18(3) FS. History–New 10-7-68, Amended 1-7-70, 6-16-72, 3-21-77, 5-10-77, 10-18-78, Formerly 12A-1.60, Amended 6-10-87, 1-2-89, 11-12-90, 3-17-94, 1-2-95, 3-20-96, 11-30-97, 4-2-00, 6-19-01, 10-2-01(1), 10-2-01(1), 8-1-02, 4-17-03, 6-12-03, 6-4-08, 9-1-09, 6-14-10, 6-28-10 (6), 6-28-10 (3), 7-28-15, 1-17-18, 3-25-20, 6-14-22, 12-29-25.

Fla. Admin. Code R. 12A-1.061 Rentals, Leases, and Licenses to Use Transient Accommodations

(1) The provisions of this rule govern the administration of the taxes imposed on transient accommodations including sales tax imposed under Section 212.03, F.S., any locally-imposed discretionary sales surtax, any convention development tax imposed under Section 212.0305, F.S., any tourist development tax imposed under Section 125.0104, F.S., or any tourist impact tax imposed under Section 125.0108, F.S.

(2) Except as provided in paragraphs (a) through (d), every person is exercising a taxable privilege when engaging in the business of renting, leasing, letting, or granting licenses to others to use transient accommodations, unless the rental charges or room rates are specifically exempt.

(a) Owners or operators of migrant labor camps, as defined in Section 212.03(7)(d), F.S., and housing authorities that are specifically exempt under Section 423.02, F.S., are not exercising a taxable privilege when in the business of renting, leasing, letting, or granting licenses to others to use, occupy, or enter upon such facilities and are not required to register with the Department.

(b) Any person who exclusively enters into a bona fide written lease, as provided in subsection (17), for continuous residence for periods longer than six months to lease, let, rent, or grant a license to others to use, occupy, or enter upon any transient accommodation is not required to register with the Department.

(c) Institutions designed and operated primarily for the care of persons who are ill, aged, infirm, mentally or physically incapacitated or for any reason dependent upon special care or attention are not providing transient accommodations to the patient, as provided in Section 212.03, F.S., and are not required to register with the Department. Charges made for living accommodations to the patients in such facilities are not subject to the tax imposed under Section 212.03, F.S. Charges made for transient accommodations to any person other than the patient by the institution are subject to tax under the provisions of this rule and any institution that makes such charges is required to register with the Department.

(d) Day nurseries, kindergartens, and church-operated or other custodial camps that primarily provide professional and personal supervisory and instructional services are not required to register with the Department or collect tax on their charges for lodging to the students or campers.

(3) Definitions. For the purposes of this rule, the following terms are defined:

(a) “Bedding” means a mattress, box spring, bed frame, pillows and bed linens, as well as sleeper type couches, futons, and day beds. “Bedding” also includes roll-a-way beds, baby cribs, and portable baby cribs. This list is not intended to be an exhaustive list.

(b) “Consumables” means tangible personal property that is used, consumed, or expended by guests or tenants when occupying transient accommodations, such as soap, toilet paper, tissues, shower caps, shaving kits, shoe mitts, shampoo, lotions, mouthwash, matches, laundry bags, swimming suit wrappers, pens, stationery, calendars, toothpaste, toothbrushes, newspapers, postcards, guides for guests, books, mints, travel packets, and sewing kits. This list is not intended to be an exhaustive list.

(c) “Fixtures” means and includes items that are an accessory to a building, other structures, or land and that do not lose their identity as accessories when installed, but that do become permanently attached to realty. An example of a “fixture” is an in-room safe that is installed within a transient accommodation, whether in the wall or bolted to the floor.

(d) “Furnishings” means and includes any moveable article or piece of equipment that is provided as a normal accessory to a particular transient accommodation. Some examples of items that would constitute a “furnishing,” if the item was a normal accessory to a particular transient accommodation, are furniture, ironing boards, irons, hair dryers, televisions, video cassette recorders (VCRs), remote controls for televisions or VCRs, microwave ovens, toasters, or coffee makers. This list is not intended to be an exhaustive list.

(e) “Rental charges or room rates” means the total consideration received solely for the use or possession, or the right to the use or possession, of any transient accommodation. See subsection (4) of this rule.

(f) “Transient accommodation” means each living quarter or sleeping or housekeeping accommodation in any hotel, motel, apartment house, multiple unit structure (e.g., duplex, triplex, quadraplex, condominium), roominghouse, tourist or mobile home court (e.g., trailer court, motor court, recreational vehicle camp, fish camp), single family dwelling, garage apartment, beach house or cottage, cooperatively owned apartment, condominium parcel, timeshare resort, mobile home, or any other house, boat that has a permanent, fixed location at a dock and is not operated on the water away from the dock by the tenant (e.g., houseboat permanently moored at a dock, but not including cruise liners used in their normal course of business), vehicle, or other structure, place, or location held out to the public to be a place where living quarters or sleeping or housekeeping accommodations are provided to transient guests for consideration. Each room or unit within a multiple unit structure is an accommodation.

(4) Rental charges or room rates.

(a) Rental charges or room rates for the use or possession, or the right to the use or possession, of transient accommodations are subject to tax, whether received in cash, credits, property, goods, wares, merchandise, services, or other things of value.

(b)1. Rental charges or room rates include any charge or surcharge to guests or tenants for the use of items or services that is required to be paid by the guest or tenant as a condition of the use or possession, or the right to the use or possession, of any transient accommodation. Such charges or surcharges are included even when the charges to the transient guest are:

a. Separately itemized on a guest’s or tenant’s bill, invoice, or other tangible evidence of sale; or

b. Made by the owner or the owner’s representative to the guest or tenant for items or services provided by a third party.

2. Rental charges or room rates do not include charges or surcharges to guests or tenants for the use of items or services for transient accommodations when:

a. The charges or surcharges are separately itemized on a guest’s or tenant’s bill, invoice, or other tangible evidence of sale; and,

b. The items or services are withheld when a guest or tenant refuses to pay the charge or surcharge.

3. Rental charges or room rates include charges or surcharges for the use of items or services when all guests or tenants receive the use of such items or services. Such charges or surcharges are subject to tax even though the charges to an individual guest or tenant may be adjusted to waive the charge or surcharge or the charges are separately itemized on a guest’s or tenant’s bill, invoice, or other tangible evidence of sale. Any waiver of a charge or surcharge to an individual guest or tenant is considered an adjustment to the rental charges or room rates for transient accommodations.

4.a. Example: A guest rents a room in a resort hotel that charges each guest a $5 resort fee to receive daily newspapers and use of its health club facilities. When a guest objects to the fee, the hotel will waive the fee for that individual guest. All guests receive the newspaper and may use the health club facilities, whether or not the guest pays the fee. The $5 resort fee charged by the resort hotel to its guests is included in the room rates subject to tax. When the resort hotel waives the fee for an individual guest, the waiver of the fee is considered an adjustment to the room rate.

b. Example: A guest rents a beach cottage for three months. The owner of the cottage requires the cottage to be cleaned by Company X and separately itemizes the cleaning services on the guest’s bill. Because the charges for the cleaning services provided by Company X are required to be paid as a condition for the right to use the beach cottage, the charges are included in the rental charges and are subject to tax. The charges are subject to tax even though the cleaning services are provided by a third party and the charges are separately stated on the guest’s bill.

c. Example: A guest rents a condominium unit from the unit owner for two weeks. If a guest wants daily cleaning services, the owner will arrange for these services, but does not require the guest to purchase the additional services. The unit owner separately itemizes the additional maid services on the guest’s bill. Because the additional maid services are not a requirement for the right to use the condominium unit and the guest does not receive the services without payment for the services, the charges are not included in the amount of taxable rental charges.

(c)1. Rental charges or room rates include any charge or surcharge to a guest or tenant for gratuities, tips, or similar charges except when:

a. The charge is separately stated as a gratuity, tip, or similar charge on a guest’s or tenant’s bill, invoice, or other tangible evidence of sale; and,

b. The owner or owner’s representative does not receive, either directly or indirectly, any monetary benefit from any such gratuity, tip, or similar charge.

2. Any fee imposed by a credit card company on the owner or owner’s representative is not construed as the retention of such monies by the owner or owner’s representative.

(d) Charges or fees for the processing of a registration application or other application for approval to rent, lease, let, or license a particular transient accommodation are not subject to tax, unless the charges are used to offset or reduce rental charges or room rates that are charged to a guest or tenant who has been approved to rent, lease, let, or license that accommodation.

(e) Rental charges or room rates include assessments required to be paid by a guest or tenant to the owner, the owner’s representative, or the owner’s designated payor, under the terms of an agreement for the use or possession, or the right to the use or possession, of transient accommodations. Such assessments may include charges for maintenance fees, membership dues, or similar charges.

(f) Owners or owners’ representatives of transient accommodations who provide transient accommodations to guests or tenants for no consideration, as provided in paragraph (a), are not required to collect tax from the guest or tenant or pay tax on the value of the accommodation.

(g) Separately itemized charges or surcharges, as provided in this section, to guests or tenants for tangible personal property or services that must be included in the taxable rental charges or room rates under the provisions of this rule are not also subject to tax as the sale, rental, lease, or license to use tangible personal property or the sale of taxable services when sold to a guest or tenant. See subsection (5) for use tax due on such taxable tangible personal property or services.

(h) The following is a non-inclusive list of charges separately itemized on a guest’s or tenant’s bill, invoice, or other tangible evidence of sale that are NOT rental charges or room rates for transient accommodations:

1. Charges for communications services. See rule Chapter 12A-19, F.A.C.

2. Meals and beverages, whether served in the guest’s or tenant’s accommodation or served at a restaurant, and charged to the guest’s accommodation bill. See Rule 12A-1.0115, F.A.C.

3. Food, drinks, and other items, such as combs, shampoo, playing cards, aspirin, or similar items purchased through a device (refrigerator) located within a guest’s or tenant’s accommodation. See Rule 12A-1.044, F.A.C.

4. Charges for the use of safes or safety deposit boxes located at an establishment’s registration desk.

5. Charges, fines, or damage fees for lost or damaged items, such as room keys, towels, linens, dishes, silverware, or other similar items.

6. Charges for admissions, such as golf, tennis, or cultural events, billed to a guest’s or tenant’s accommodation bill. See Rule 12A-1.005, F.A.C.

7. Charges for transportation services. See Rule 12A-1.045, F.A.C.

8. Laundry services charged to a guest’s or tenant’s accommodation bill. See Rule 12A-1.023, F.A.C.

9. Valet service charged to a guest’s or tenant’s accommodation bill.

10. Merchandise packaging or delivery service charged to a guest’s or tenant’s accommodation bill, such as flower delivery services or charges for packaging and delivering items for shipment under the direction of the guest or tenant. See Rule 12A-1.047, F.A.C.

11. Charges for areas that are not used as transient accommodations, such as sample and display rooms, auditoriums, office space, or garage space. See Rule 12A-1.073, F.A.C.

12. Charges for the storage of mobile homes, travel trailers, motor homes, or recreational vehicles.

13. Assessments for maintenance and other expenses of the property charged by a corporation to a stockholder who resides in an apartment house.

14. Service charges paid by owners of apartments or units in a condominium or cooperatively owned apartment house.

(5) Purchases by owners or owners’ representatives of transient accommodations.

(a) The purchase of beddings, furnishings, fixtures, toiletries, consumables, taxable maid and cleaning services, and similar items or other taxable services by owners or owners’ representatives of transient accommodations is subject to tax, except as provided in paragraph (b). The purchase of these items and services is not subject to the tourist development tax, as provided in Section 125.0104, F.S., the tourist impact tax, as provided in Section 125.0108, F.S., or the convention development taxes, as provided in Section 212.0305, F.S.

(b) Owners or owners’ representatives may purchase or lease tangible personal property without paying tax only when the taxable property is:

1. Purchased exclusively for resale or re-rental as provided in subsection 12A-1.071(2), F.A.C.; and,

2. Charges to the guest or tenant for the purchased or leased property are not required under the provisions of this rule to be included in the taxable amount of rental charges or room rates. See subsection 12A-1.071(2), F.A.C.

(6) Deposits, prepayments, and reservation vouchers.

(a) The following deposits or prepayments paid by guests or tenants to the owner or owner’s representative of transient accommodations are not rental charges or room rates and are not subject to tax:

1.a. Deposits or prepayments that are required to be paid to secure a potential guest or tenant the right to rent, lease, let, or license a transient accommodation by a time certain. Such deposits do not guarantee the transient guest or tenant the use or possession, or the right to the use or possession, of transient accommodations.

b. Example: A potential tenant reserves a beach house for a specific week from a management company. The management company requires a $100 reservation deposit to hold the beach house until a time certain, such as 6:00 p.m., the first night of the reserved week. The tenant is unable to use the beach house for the reserved week, but fails to cancel the reservation with the management company. The management company retains the $100 deposit. Because the $100 charge does not provide the tenant the right to the use of the beach house, the $100 deposit is not subject to tax.

c. Example: A potential guest makes reservations at a hotel for a designated night. The hotel requires a deposit equal to the room rate to hold a room until a time certain, such as 6:00 p.m., on the designated night. The guest does not arrive at the hotel and fails to cancel the reservation. The hotel retains the deposit. Because payment of the deposit did not provide the potential guest the right to the use of the room and the hotel did not collect any tax from the potential guest, the room deposit is not subject to tax.

2.a. Security deposits that are refundable at the expiration of any agreement for the use or possession, or the right to the use or possession, of a transient accommodation, unless the security deposits are withheld by the owner or owner’s representative and applied to unpaid rental charges or room rates at the expiration of the agreement.

b. “Security Deposits,” for purposes of this rule, means any refundable deposit by any guest or tenant with the owner or owner’s representative of transient accommodations as security for full and faithful performance by the guest or tenant of the terms of any agreement for the use or possession, or the right to the use or possession, of a transient accommodation, including damages to the accommodation. Security deposits are refundable, unless the guest or tenant has caused damage or injury to the property or has breached the terms of the agreement.

c. Example: To lease an apartment for three months, the owner requires the tenant to pay a security deposit equal to one month’s rental charge. The apartment is damaged during the lease period, and the security deposit is retained by the owner at the end of the rental period. The security deposit is not subject to tax when collected, or when retained at the end of the rental period, by the owner.

(b) Rental charges or room rates include deposits or prepayments that guarantee the guest or tenant the use or possession, or the right to the use or possession, of transient accommodations during a specified rental period under the provisions of an agreement with the owner or owner’s representative of transient accommodations. The owner or owner’s representative is required to provide transient accommodations to any guest or tenant that enters into such an agreement and pays the required prepayment or deposit, even when the guest or tenant does not occupy the accommodation.

1. Example: A potential tenant enters into an agreement with the owner of a condominium unit to reserve the unit for a specified week. In exchange for the required deposit, the tenant is guaranteed that the unit will be available for use during the specified week. The tenant is permitted to cancel the reservations and receive a full refund of the required deposit provided that the cancellation is received 48 hours prior to the scheduled arrival date. The tenant makes the required prepayment by issuing a credit card authorization for the amount of the weekly rental charges. Even though the tenant is unable to use the unit during the specified week, the tenant fails to cancel the reservation. The condominium owner charges the tenant’s credit card for the unit. The weekly rental charges paid by the tenant for the condominium unit is subject to tax, even though the tenant does not use the unit.

2. Example: A hotel guarantees that it will provide room accommodations on a designated date to potential guests that make reservations and pay a required room deposit. To receive a refund of the required room deposit, the potential guest must cancel his or her reservations by 4:00 p.m. of the designated date. A potential guest that has made reservations and has paid the required room deposit fails to cancel the reservations and fails to arrive at the hotel on the designated date to use the reserved room accommodations. Because the potential guest fails to cancel the reservations, the guest forfeits the room deposit. Even though the guest did not occupy a room at the hotel, the forfeited room deposit is subject to tax.

(c) Deposits or prepayments that are held by the owner or owner’s representative and subsequently used to offset or reduce a guest’s or tenant’s rental charges or room rates are subject to tax when the transient accommodations are provided to the guest or tenant.

(d)1. Deposits or prepayments applied to rental charges or room rates are deemed to include the applicable taxes when a guest or tenant has been put on notice that the amount of any deposit or prepayment includes any applicable taxes. See subsection (20) of this rule.

2. Example: A potential guest reserves a hotel room for a designated night by issuing a credit card authorization for the amount of the room rate, plus applicable taxes, to the hotel. The guest does not arrive at the hotel to occupy the room, but fails to cancel the reservation. The hotel charges the guest’s credit card for the room, plus applicable taxes. The hotel is required to remit the applicable taxes to the proper taxing authority.

(e)1. “Reservation voucher” means a voucher which entitles the purchaser to rent transient accommodations that are reserved by the seller for the purchaser at a designated location for a specified rental period and at a specified room rate or rental charge. The voucher may contain the following information: the designated transient accommodation; the room rate or rental charge for the accommodation; the reservation deposit, prepayment, or fee paid to the seller of the voucher; the balance of the room rate or rental charge due to the owner or owner’s representative of the accommodation; and a statement regarding the applicable tax due on the room rate or rental charge. The voucher is required to be presented to the owner or owner’s representative of the transient accommodations. When the voucher is presented to the owner or owner’s representative, the amount of the reservation deposit, prepayment, or fee paid to the seller of the voucher is a part of the room rate or rental charge paid for the right to use the accommodation. The owner or owner’s representative of the transient accommodation is required to collect and remit the applicable taxes due to the proper taxing authority on the total room rate or rental charge, including any amounts separately stated on the redeemed voucher as a reservation deposit, prepayment, or fee.

2. The owner or owner’s representative may execute a written agreement to designate the seller of the reservation voucher as the party responsible to collect and remit the applicable transient rental taxes on the portion of the room rate or rental charge for the transient accommodation collected by the seller of the voucher. Sellers of reservation vouchers who have entered into such agreements with owners or owners’ representatives of transient accommodations are required to collect and remit the applicable taxes due to the proper taxing authority on the portion of the room rate or rental charge collected by such seller. The applicable taxes are to be collected at the rates imposed by the county where the transient accommodation is located. The amount of the rental charge or room rate collected by the seller of the voucher must be indicated, and the tax must be separately stated, on the reservation voucher.

(7) Recreational resort membership agreements.

(a) The sale of memberships in this State for the right to be a member of a recreational resort providing transient accommodations and other recreational facilities in this State is a taxable lease of transient accommodations.

(b) Rental charges made pursuant to an agreement by which the owner or the owner’s representative offers for lease the right to reserve and occupy either a general or specific type of unit or transient accommodation, usually for 1 or 2 weeks during a year for a specific number of years, are subject to tax. Tax is due on the rental charges when the charges are due, whether the charges are paid in full at the time of agreement or financed over a period of time. When the rental charges are financed over a period of time as an installment sale or deferred payment plan, tax is due when the agreement is executed. All charges required to be paid by the lessee to the owner, lessor, or the lessor’s represenative under the terms of the agreement, such as maintenance fees, membership dues, or similar charges, are subject to tax at the time payment is due.

(c)1. A typical membership agreement grants the member the right to use certain resort facilities located in Florida and the right to use certain resort facilities located outside Florida for a nominal amount or free of any charge. The agreement provides that the member has the right to stay at a resort facility for a limited number of consecutive days (usually 7 to 30 days) within any year for a designated number of years during the life of the membership. The agreement further provides that the membership fee is to be paid in full at the time of entering into the agreement, or that a partial payment be made with the remaining amount to be financed over a period of time. In addition to the initial membership fee, the agreement requires that periodic payments of maintenance fees, dues, or similar charges be made to use the facilities and to retain membership in the resort.

2. The membership agreement in subparagraph 1. is subject to tax because the agreement allows the member to use certain resort facilities located in this State, even though the agreement may also allow the member to use a resort’s facility located outside the State of Florida, for a nominal charge, or free of any charge. The tax is to be collected by the person selling the membership on the total initial membership fee at the time the membership agreement is entered into, whether the membership is paid in full or financed over a period of time. Tax is due on all charges for maintenance fees, membership dues, or similar charges when such charges are billed to the member.

3. Membership agreements entered into with resort facilities located outside this State that also allow a member to use resort facilities located in Florida for a nominal charge or free of charge are not subject to tax, unless the out-of-state seller of the membership allocates or distributes a portion of the proceeds to the Florida resort. Any proceeds allocated or distributed to the Florida resort are taxable. In addition, any charge made by the owner or lessor of a Florida resort to an out-of-state membership holder for the right to use its Florida resort is subject to tax.

(d) Agreements that convey a fee interest in real property are not membership agreements as contemplated by this subsection and are not subject to sales tax.

(8) Timeshares.

(a) Purchase of a timeshare interest.

1. Consideration paid for the purchase of a timeshare estate, as defined in Section 721.05, F.S., is not rent and is not subject to tax.

2. Consideration paid for the purchase of a timeshare license, as defined in Section 721.05, F.S., is rent and is subject to tax.

(b) Rental of a timeshare accommodation. Consideration paid for the use or occupancy of an accommodation in a timeshare property is rent and is subject to tax. Consideration paid for a regulated short-term product or a timeshare exchange is addressed below.

(c) Regulated short-term products. Consideration paid for occupancy pursuant to a regulated short-term product, as defined in Section 721.05, F.S., is rent and is subject to tax, unless the consideration paid is applied to the purchase of a timeshare estate. Tax is due on the last day of occupancy pursuant to the regulated short-term product.

(d) Timeshare exchange programs.

1. A typical timeshare exchange program allows timeshare owners the right to deposit their timeshares into the exchange program pool. After depositing his or her timeshare into the exchange program pool, an owner may request the use of a different timeshare. An owner making a request will specify the type of unit desired (e.g., one-bedroom, oceanfront) and the location at which he or she would like to stay (e.g., Honolulu, Cancun, Miami), but will generally not request the use of a specific timeshare unit. A timeshare owner who joins an exchange program pays a membership fee to be a part of the exchange program. An owner also pays an exchange fee to request an exchange of a timeshare under the program. The requesting owner may also pay an upgrade fee if the exchange program determines that the requesting owner’s timeshare is of a lesser value than the timeshare being requested.

2.a. Consideration paid for the use or occupancy of an accommodation in a timeshare property by a timeshare owner to an exchange program is not subject to tax.

b. Example: Mr. Smith purchases a two-bedroom timeshare in Orlando and becomes a member of an exchange program. Mr. Smith pays an annual membership fee of $500 to be a member of the exchange program, which must be paid whether or not Mr. Smith requests the use of another timeshare from the exchange program pool. Mr. Smith decides to vacation in Miami, and he submits an exchange request to the exchange program. As part of his exchange request, Mr. Smith specifically requests a four-bedroom timeshare unit. Mr. Smith pays a $99 exchange fee and a $250 upgrade fee to the exchange program for the four-bedroom unit. No tax is due on the membership fee, the exchange fee, or the upgrade fee paid by Mr. Smith.

(9) Registration.

(a) Except as provided in subsection (2), every person that rents, leases, lets, or grants a license to others to use any transient accommodation is required to register with the Department. Agents, representatives, or management companies that collect and receive rent as the owner’s representative are required to register as a dealer and collect and remit the applicable tax due on such rentals to the proper taxing authority. If the agent, representative, or management company has no role in collecting or receiving the rental charges or room rates, the person receiving such rent is required to register as a dealer and collect and remit the applicable tax due on such rentals to the proper taxing authority.

(b)1. Transient accommodations, including timeshare units, that are rented, leased, let, or for which a license to use has been granted to others for periods six months or less may be collectively registered by an agent, representative, or management company under the provisions of subsection (3) of Rule 12A-1.060, F.A.C.

2. Even though a written agreement exists between the agent, representative, or management company and the property owner, the property owner remains responsible for the tax obligation in the event the agent, representative, or management company fails to collect or remit the tax due to the proper taxing authority and the taxing authority is unable to collect the applicable tax from the agent, representative, or management company.

3. The following is a suggested format of the written agreement executed after July 1, 1994, between an agent, representative, or management company and the owner of any transient accommodations that are offered for rent, lease, let, or for which a license to use is granted to others for periods of six months or less:

I, _____ (Name of Property or Timeshare Period Owner), hereby authorize _____ (Name of Agent, Representative, or Management Company) to act as my representative to rent, lease, let, or grant a license to others to use my described property (properties) or timeshare period (timeshare periods) located at _____ (use additional paper if necessary) and to charge, collect, and remit sales tax levied under Chapter 212, F.S., to the Department of Revenue. I acknowledge that, by renting, leasing, letting, or offering a license to others to use any transient accommodations, as defined in subsection (3) of Rule 12A-1.061, F.A.C., I am exercising a taxable privilege under Chapter 212, F.S., and as such acknowledge that I am ultimately liable for any sales tax due the State of Florida on such rentals, leases, lets, or licenses to use. I fully understand that should the State be unable to collect any taxes, penalties, and interest due from the rental, lease, let, or license to use my property, a warrant for such uncollected amount will be issued and will become a lien against my property until satisfied.

---

(Signature of Property Owner/Lessor)

---

(Signature of Agent, Representative, or Management Company).

4. The agent, representative, or management company and the property owner must maintain a copy of the written agreement in their records until the tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S. Upon request, a copy of the agreement must be made available to the Department.

5. The agent, representative, or management company must notify the Department of Revenue when it receives affirmative, written notice that it ceases to manage any transient accommodation for which it has collectively registered under the provisions of subsection (3), of Rule 12A-1.060, F.A.C. The agent, representative, or management company may contact any taxpayer service center or Account Management at (850)488-6800. A written notification that includes the sales tax registration number of the property or timeshare unit; the name, address, and federal identification number, social security number, or individual taxpayer identification number of the property owner; and the name, location address, federal identification number, social security number, or individual taxpayer identification number, and sales tax registration number of the agent, representative, or management company may be provided to the Department at the following address:

Florida Department of Revenue

Account Management

P.O. Box 6480

Tallahassee, Florida 32314-6480.

6. Social security numbers are used by the Florida Department of Revenue as unique identifiers for the administration of Florida’s taxes. Social security numbers obtained for tax administration purposes are confidential under Sections 213.053 and 119.071, F.S., and not subject to disclosure as public records. Collection of an individual’s social security number is authorized under state and federal law. Visit the Department’s website at floridarevenue.com and select “Privacy Notice” for more information regarding the state and federal law governing the collection, use, or release of social security numbers, including authorized exceptions.

(10) Subleases or assignments.

(a) Any person who has the right to the use or possession of any transient accommodation and who subrents, subleases, sublets, or licenses a portion of the accommodation is required to register as a dealer and collect and remit the applicable tax due on all such subrents, subleases, sublets, or licenses to the proper taxing authority, except as provided in subsection (2) of this rule.

(b) The dealer may elect to issue a resale certificate to the property owner or the property owner’s representative to purchase transient accommodations exempt from tax or take a credit for the tax that was paid to the owner or owner’s representative for transient accommodations when:

1. The transient accommodations are subrented, subleased, sublet, or licensed by the dealer to other guests or tenants; and,

2. The dealer collects the applicable tax from the guest or tenant.

(c) Dealers must remit the applicable tax due to the proper taxing authority on the portion of the rental charges pertaining to any transient accommodation that was purchased tax exempt but is used by the dealer.

(11) Mobile homes, recreational vehicles, and parks.

(a)1. Mobile homes, travel trailers, motor homes, recreational vehicles, or any other vehicle are transient accommodations, even though the mobile home or vehicle may be subject to other Florida taxes when both of the following conditions are met (See subsection 12A-1.007(11), F.A.C.):

a. The mobile home or vehicle must be a place where living quarters or sleeping or housekeeping accommodations are provided to guests or tenants for consideration; and,

b. The mobile home or vehicle must have a fixed location and may not be operated over the roads of this State. See paragraphs (c) and (d) of this subsection.

2. Rental charges or room rates for mobile homes or vehicles rented, leased, let, or licensed as transient accommodations as provided in subparagraph 1., are subject to tax.

(b)1. Rental charges for the rental or lease of space in trailer camps, mobile home parks, and recreational vehicle parks (e.g., trailer court, motor court, R.V. camp, fish camp, or other similar camps and parks) are subject to tax, except as provided in paragraph (d).

2. If any person rents or leases space in a trailer camp, mobile home park, or recreational vehicle park, except as provided in paragraph (d), that person is exempt from tax on rental charges due after the first six months of the rental period, even if the mobile home or vehicle is temporarily removed from the rented or leased space, when:

a. That person has paid the applicable tax due on the rental charges for the first six months;

b. That person continues to have the right to occupy the mobile home or vehicle located at that rented or leased space; and,

c. The provisions of subparagraph 3. do not apply.

3. The rental or lease of space for the storage of any vehicle described in paragraph (a) is subject to tax as provided in Section 212.03(6), F.S., and is not subject to the tourist development tax, as provided in Section 125.0104, F.S., the tourist impact tax, as provided in Section 125.0108, F.S., or the convention development taxes, as provided in Section 212.0305, F.S.

(c) When any vehicle described in paragraph (a) is moved from a space in one trailer camp, mobile home park, or recreational vehicle park, to a space in another camp or park, the rental charges for space at the new camp or park are subject to tax, except as provided in paragraph (d).

(d)1. Rental charges for transient accommodations at new trailer camps, new mobile home parks (except mobile home lots regulated under Chapter 723, F.S.), and new recreational vehicle parks are subject to tax until more than 50 percent of the total rental units available are occupied by tenants who have continuously resided there for more than three months. When more than 50 percent of the total rental units available are occupied by tenants who have continuously resided there for more than three months, the owner or owner’s representative of the camp or park is required to declare to the Department that the rental of transient accommodations at the new camp or park is no longer subject to tax. All rental charges for transient accommodations at a camp or park are presumed taxable until the owner or owner’s representative has declared to the Department that the charges for transient accommodations at the park qualify for exemption.

2. Once the owner or owner’s representative has declared to the Department that the rental charges for transient accommodations at the camp or park are exempt, the owner or owner’s representative is required to make a redetermination of the taxable status of the camp or park at the end of the owner’s accounting year. To make this determination, the owner must use a consecutive three month period with at least one month in the accounting year. In the event that charges for transient accommodations at an exempt camp or park no longer qualify for exemption, the owner or owner’s representative must notify the Department no later than the 20th day of the first month of the owner’s next succeeding accounting year that the rental charges for transient accommodations at the camp or park have become taxable. The rental charges for transient accommodations at that camp or park will become taxable on the first day of the owner’s next succeeding accounting year.

3. The Department prescribes Form DR-72-2, Declaration of Taxable Status-Trailer Camps, Mobile Home Parks, and Recreational Vehicle Parks, incorporated by reference in Rule 12A-1.097, F.A.C., as the form to be used for the purposes of declaring the rental charges for transient accommodations at a trailer camp, mobile home park (except mobile home lots regulated under Chapter 723, F.S.), or recreational vehicle park exempt and notifying the Department at the time of annual redetermination that the rental charges for transient accommodations at an exempt camp or park have become taxable. This form is not required to be filed with the Department when the owner or owner’s representative of an exempt camp or park determines at the time of annual review that the rental charges for transient accommodations continue to qualify for exemption.

4. Mobile home lots regulated under Chapter 723, F.S., are exempt from tax on the lot rental amount. Owners and owners’ representatives of mobile home lots regulated under Chapter 723, F.S., are not required to file Form DR-72-2 with the Department to declare the mobile home lot exempt or required to make an annual redetermination of the taxable status of the lot.

5. Any person who rents or leases transient accommodations at an exempt camp or park is not required to pay tax on rental charges for transient accommodations as long as the park or camp remains exempt, even when the transient accommodations are rented or leased for periods of six months or less.

(12) Full-time students.

(a) Full-time students enrolled in an institution offering postsecondary education who reside in transient accommodations are exempt from the taxes imposed on transient accommodations. For the purpose of this rule, a “full-time student” is one taking that number of hours or courses considered by his or her educational institution to constitute full-time enrollment. This exemption applies if either husband or wife is a full-time student.

(b) A written declaration of an appropriate official of the student’s institution reflecting that the student named in the declaration is a full-time student of the institution is proof of the student’s full-time enrollment. The owner or owner’s representative is required to maintain the written declaration in its records.

(c) The following is a suggested written declaration to be completed and presented by the full-time student to the owner or the owner’s representative of the transient accommodation.

The undersigned hereby declares that __________________ (Student’s name) is currently enrolled as a full-time student at ________________________ (Name of educational institution), a postsecondary educational institution.

Dated this ________ day of ______, 19

---

(Name of educational institution)

By __________________________________

(Signature of appropriate official)

As __________________________________

(Title of appropriate official________________

(13) Military personnel on active duty.

(a) Rental charges or room rates paid by military personnel currently on active duty and present in the community under official orders are exempt. This includes rental charges or room rates for transient accommodations paid by military personnel while traveling to a destination designated by their official orders. The exemption does not include rental charges or room rates for transient accommodations paid by military personnel that are in the community, but are not under official orders to be present in the community.

(b) To qualify for this exemption, military personnel must present either of the following documents to the owner or owner’s representative of the transient accommodation:

1. A copy of the official orders supporting the active duty status of the military personnel and making it necessary to occupy the transient accommodation; or

2. A copy of an overflow certificate issued to military personnel on active duty status by any unit of the U.S. Armed Services.

(14) Rentals by governmental units.

(a) Any city, county, municipality, or other political subdivision of the State that rents, leases, lets, or grants license to others to use transient accommodations is required to collect the applicable tax due on the rental charges or room rates for such accommodations.

(b) Any person who rents, leases, lets, or grants license to others to use transient accommodations on land leased from the federal government is required to collect the applicable tax due on the rental charges or room rates for such accommodations.

(c) Any person who contracts with the federal government to rent, lease, let, or grant licenses to others to use transient accommodations, such as at private flying schools or for detained aliens pending entry proceedings, is required to collect the applicable tax due on the rental charges or room rates for such accommodations.

(15) Governmental employees and representatives of exempt organizations.

(a) Employees of the federal government or its agencies are exempt from tax on rental charges or room rates for transient accommodations, even though the employee may be reimbursed by the federal government or its agencies, only when:

1. The federal government or its agencies pays the rental charges or room rates directly to the owner or the owner’s representative of the transient accommodations or reimburses the employee for the actual rental charges or room rates;

2. The employee does not use the transient accommodations for personal purposes; and,

3. The employee provides the owner or the owner’s representative of the transient accommodations with the proper documentation. See subsection 12A-1.038(4), F.A.C., for the proper documentation to be provided by the employee.

(b)1. Employees of governmental units other than the federal government or its agencies (i.e., state, county, city, or any other political subdivision of the State) and authorized representatives of organizations that hold a Consumer’s Certificate of Exemption issued by the Department are exempt from tax on rental charges or room rates for transient accommodations only when:

a. The rental charges or room rates are billed directly to and paid directly by the governmental unit or the exempt organization;

b. The employee or representative does not use the transient accommodations for personal purposes; and,

c. The employee or representative provides the owner or the owner’s representative of the transient accommodations with proper documentation. See subsections 12A-1.038(3) and (4), F.A.C., for the proper documentation to be provided by the employee or representative.

2. Rental charges or room rates paid with personal funds of any individual representing an exempt organization or of any employee of a governmental unit, other than the federal government or its agencies, are subject to tax, even though the representative may receive an advance or reimbursement from the exempt organization or governmental unit.

(16) Exemption for continuous residence.

(a) When any person has continuously resided at any transient accommodation for a period of longer than six months and has paid the applicable tax due on the rental charges or room rates for the first six months, that person is exempt from tax on the rental charges or room rates due for that transient accommodation after the first six months of the continuous rental period. When that person ceases to rent that transient accommodation, the exemption for continuous residence for that person at that accommodation no longer applies.

(b)1.a. When a number of transient accommodations within a multiple unit structure are rented to any one person or entity for its own use for periods longer than six months, the rental charges or room rates for the lowest number of transient accommodations continuously rented at that structure for periods longer than six months are exempt from tax, effective for those rental charges or room rates due for such accommodations after the first six months of the continuous rental period. To qualify for this exemption, the person or entity must pay the applicable tax due on the rental charges or room rates for the first six months of the continuous rental period and must rent the accommodations for periods longer than six continuous months.

b. Example: Company A provides hotel rooms to house its employees at a hotel. Because the number of employees needing a room varies each night, the number of rooms rented by Company A varies each night. However, Company A rents and pays the applicable tax due on at least 10 hotel rooms each night for a consecutive six month period. Beginning the seventh month of the continuous rental period, Company A is exempt from tax due on the rental charges or room rates for 10 rooms at that hotel as long as it pays the room rates for at least 10 rooms at that hotel. Any rental charges or room rates for additional rooms paid by Company A are subject to tax, until the rental charges or room rates for those rooms qualify for exemption.

2.a. Any person who enters into a bona fide written lease, as provided in subsection (17), to lease a specified number of transient accommodations at a multiple unit structure each night during the lease period for its own use, is exempt from tax due on the rental charges or room rates applicable to the specified minimum number of accommodations. If that person rents more than the specified number of accommodations stated in the lease, the provisions of subparagraph 1. apply.

b. Example: Company B enters into a bona fide written lease for one year with a hotel to lease at least 10 hotel rooms each night to house its employees. The lease requires that Company B pay the room rates for 10 rooms for the entire year, even when the rooms are not occupied. On several nights during the year, Company B rents more than 10 rooms at the hotel. Company B is exempt from tax on the room rates for 10 rooms during the entire one year lease period. The additional hotel rooms rented by Company B are subject to tax, until the rental charges or room rates for those rooms qualify for exemption.

3. There is no requirement to lease or rent the same room or unit within a multiple unit structure each night or to occupy the rented or leased room or unit to qualify for the exemption described in this paragraph.

4. The provisions of this paragraph do not apply to transient accommodations that are rented or leased for the purpose of subleasing, subrenting, subletting, or licensing the accommodations to other persons.

(17) Bona fide written leases.

(a) Transient accommodations that are leased under the terms of a bona fide written lease for periods longer than six months for continuous residence by the individual or entity leasing the transient accommodations to which the written lease applies are exempt. The exemption will not be allowed or disallowed based on the number of days in the rental period, but will be disallowed if the rental period is not longer than six “months,” as defined in paragraph (b).

(b)1. For the purposes of this subsection, a “month” is defined as follows:

a. For leases commencing on the first day of a month, the term “month” means a calendar month.

b. For leases commencing on a day other than the first day of a month, the term “month” means the time period from any day of any month to the corresponding day of the next succeeding month, or if there is no corresponding day in the next succeeding month, the last day of the succeeding month.

2. To be considered a lease for periods longer than six months, a bona fide written lease agreement effective the first day of a month must run through the first day of the seventh consecutive month. For example, a lease agreement that is effective July 1, 1997 through January 1, 1998, will qualify as a lease for periods longer than six months.

3. To be considered a lease for periods longer than six months, a bona fide written lease agreement effective at some other date than the first day of a month must be in effect through the day after the corresponding day of the seventh consecutive month. For example, a lease agreement that is effective July 28, 1997 through January 29, 1998, will qualify as a lease for periods longer than six months.

(c) For the purposes of this subsection, a “bona fide written lease” is a written document that clearly demonstrates that the parties’ intent is that the lessee will have the exclusive use or possession, or the right to the exclusive use or possession, of the transient accommodations to which the lease applies.

(d) The written lease must contain:

1. The length of time for which the transient accommodations are being occupied, including both the exact commencement and exact termination dates; and,

2. A statement that the lessor is giving the lessee the right to complete and exclusive use or possession of the transient accommodations for the entire duration of the lease period.

(e) A “bona fide written lease” is executed in or with good faith, without deceit or fraud. The Department will examine the lease document, as well as all surrounding facts and circumstances, to determine the parties’ objective intent at the time of execution of the lease. In examining the lease document, the Department will consider and be guided by the following lease contents:

1. Language that indicates the written document is a lease;

2. A sufficient description of the leased transient accommodations;

3. A statement that the lease contains the complete and sole agreement between the parties for occupying the transient accommodations;

4. A provision that the lessee will pay an agreed amount of rental charge or room rate;

5. A statement containing the due date, the frequency, and the remittance address for payment of each rental charge or room rate;

6. A statement specifying what conditions or acts will result in early termination of the lease, the rights and obligations of the parties upon the occurrence of the terminating conditions or acts, and any penalties that will result from early termination; and,

7. The signatures of the named parties, or in the case of corporate parties, the signature of the authorized corporate representatives.

(f)1. A lease does not cease to be a bona fide written lease when the lessor or lessee has experienced a significant change in circumstances and the lessor releases the lessee, with or without penalty, from the obligations under the lease.

2. A lease does not cease to be a bona fide written lease when the lessor has evicted the lessee for violation of the lease agreement.

3. A lease does not cease to be a bona fide written lease if the lessor is in violation of a fire or safety code such that the lessee is forced to move to another location.

4. For the purposes of this paragraph, the term “significant change in circumstances” means the occurrence of an event, not contemplated at the time of the signing of the lease, such as an illness, death, bankruptcy, significant change in business circumstances (e.g., long-term strike or the ceasing of doing business in the locality), loss of job, or job transfer, that would cause the lessor or lessee to suffer a hardship if the lessor or lessee were forced to honor the lease until its stated termination date.

(g) A “bona fide written lease” for periods longer than six months for continuous residence by the individual or entity leasing the transient accommodations to which the written lease applies will not be constituted when:

1. The lease contains a provision that would entitle the lessor of the leased transient accommodations to lease the accommodations back from the lessee during the lease period for the purpose of leasing the same accommodations to other lessees;

2. The lease contains a provision that would entitle the lessor of the leased transient accommodations to sublease, subrent, sublet, or license the accommodations to other persons for periods of six months or less;

3. The lease does not provide the lessee with the right to occupy the transient accommodations for the entire duration of the lease period;

4. The lease contains a provision that allows the lessee to cancel the lease, without penalty, at any time when the lessee has had no significant changes in circumstances; or

5. The lease contains a provision that would allow the lessee to avoid full payment of the stated amount of the rental charge or room rate.

(h)1. The Department will presume that the parties to the lease did not in fact intend to enter into a bona fide written lease for a period of more than six months for continuous residence when:

a. The leased transient accommodations are leased more than two times in a calendar year with each lease issued during that calendar year containing statements indicating that the lease period is for longer than six months; and,

b. No lessee leased the transient accommodations for more than six months.

2. This presumption can be rebutted by documentary evidence (i.e., notarized statements, eviction documents, etc.) that provides, for each lease terminated prior to its stated termination date, that:

a. A significant change in circumstances of the lessee existed; or

b. The lessor evicted the lessee for cause.

(18) Rental charges or room rates will be considered by the Department as applying to the period in which they are required to be paid by the terms of the rental or lease agreement.

(19) When rental charges or room rates are collected in other than equal daily, weekly, or monthly amounts during the first six months of lease or rental period, the Department is authorized to reform for tax purposes a lease or rental contract/agreement so that equal consideration applies to each rental period during the first six months.

(20) Any taxes collected from a guest or tenant must be remitted to the proper taxing authority, regardless of how the taxes are collected or recorded by the entity providing the transient accommodations.

(21) Records required. Any person who collects rental charges or room rates for transient accommodations must maintain adequate records, including copies of all lease or rental agreements, duplicate copies of receipts issued for the payment of rental charges or room rates, and any exemption certificates until the tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S. Upon request, records must be made available to the Department.

History

• Rulemaking Authority 125.0104(3)(k), 125.0108(2)(e), 212.0305(3)(f), 212.18(2), 213.06(1) FS. Law Implemented 92.525(1)(b), 119.071(5), 212.02(2), (10)(a)-(g), (16), 212.03(1), (2), (3), (4), (5), (7), 212.054(3)(h), 212.055, 212.08(6), (7)(i), (m), 212.11(1), (2), 212.12(7), (9), (12), 212.13(2), 212.18(3), 213.37, 213.756 FS. History–New 10-7-68, Amended 1-7-70, 1-17-71, 6-16-72, 7-19-72, 4-19-74, 12-11-74, 5-27-75, 10-18-78, 4-11-80, 7-20-82, 1-29-83, 6-11-85, Formerly 12A-1.61, Amended 10-16-89, 3-17-94, 1-2-95, 3-20-96, 11-30-97, 7-1-99, 3-4-01(4), 3-4-01(2), (5), (14), 10-2-01, 8-1-02, 9-1-09, 6-28-10, 7-20-11, 5-9-13, 12-29-25.

Fla. Admin. Code R. 12A-1.0615 Hotel Reward Points Programs

(1) Scope.

(a) The provisions of this rule govern the taxation of transactions between program administrators of hotel reward points programs and hotels providing transient lodging accommodations that participate in these programs.

(b) For purposes of this rule, the term “transient rental tax” means the state sales tax imposed on transient rentals under Section 212.03, F.S., the discretionary sales surtax as authorized in Section 212.055, F.S., the locally-imposed tourist development tax provided for in Section 125.0104, F.S., the tourist impact tax provided for in Section 125.0108, F.S., the convention development tax in Section 212.0305, F.S., or any municipal resort tax in Chapter 67-930, L.O.F.

(2) Transactions between a hotel and a guest using reward points.

(a) When a member of a hotel reward points program uses a certificate or confirmation number entitling the member to transient accommodations at a participating hotel at no charge, the hotel is not required to collect transient rental tax from the member.

(b) When a member of a hotel reward points program uses a certificate or confirmation number entitling the member to transient accommodations and pays the hotel any room rate or rental charges using any form of payment other than reward points, the member is required to pay the hotel transient rental tax on the amount of the room rate or rental charges paid using any form of payment other than reward points.

(3) Transactions between a hotel and a reward points program.

(a) For the purposes of this subsection, the following words are defined:

1. “Hotel” is used in the singular and is meant to describe a single operation, at one specific location, that provides transient accommodations as described in Section 212.03, F.S. The term “hotel” does not mean a group of affiliated hotels or a group of hotels operated by one franchisee.

2. “Reimbursements” mean money or credits received by a hotel from a reward points program fund.

3. “Contributions” mean money or credits paid by a hotel to a reward points program fund.

(b) Transient rental tax is due on a hotel’s reimbursements when the hotel receives more in reimbursements than it paid in contributions in the prior calendar year.

(c) Calculation of Taxable Reimbursements for Periods Other than a Hotel’s Initial Year of Participation.

1. Each January, a hotel must determine the percentage to be applied to reimbursements received during the subsequent calendar year using the following calculation:

Total Reimbursements Received in Prior Calendar Year ‒ Total Contributions Paid in Prior Calendar Year

÷ Total Reimbursements Received in Prior Calendar Year

= Percentage to be Applied to Reimbursements Received in Current Calendar Year

If the resulting percentage is zero or less, then no transient rental tax is due on reimbursements received in the current calendar year.

2. The full amount of reimbursements received by the hotel in the current reporting period must be multiplied by the percentage to determine the amount of reimbursements subject to transient rental tax for that reporting period.

3. Example: A hotel’s total reimbursements and contributions in the preceding calendar year are $10,000 and $7,500, respectively. The hotel’s percentage for the current calendar year will be calculated in January as ($10,000 ‒ $7,500)/$10,000 or 25%. If the current reporting period’s reimbursements are $1,000, the amount of reimbursements subject to tax in the current reporting period is $250.

(d) Calculation of Taxable Reimbursements for a Hotel’s Initial Twelve Months of Participation in a Reward Points Program.

1. At the end of a hotel’s initial twelve months of participation in a reward points program, the hotel must determine the percentage to be applied to reimbursements received during the initial twelve months of participation using the following calculation:

Total Reimbursements Received During the Initial Twelve Months ‒ Total Annual Contributions Paid During the Initial Twelve Months

÷ Total Reimbursements Received During the Initial Twelve Months

= Percentage to be Applied to Reimbursements Received in the Initial Twelve Months

If the resulting percentage is zero or less, then no transient rental tax is due on reimbursements received in the initial twelve months of participation.

2. The full amount of reimbursements received by the hotel in the initial twelve months of participation must be multiplied by the percentage to determine the amount of reimbursements subject to transient rental tax for the initial twelve months. The full amount of any tax due must be remitted with the hotel’s first tax return due following the end of the initial twelve months of participation. The hotel must keep a supplemental schedule allocating the remittance to the appropriate reporting periods of the initial twelve months of participation in the hotel’s books and records kept in the normal course of business. This schedule must be made available to the proper taxing authority upon request.

3. The percentage calculated for the initial twelve months of participation must also be used to calculate taxable reimbursements for all remaining reporting periods in the calendar year in which the calculation is made.

4. Example: A hotel begins participating in a reward points program in June 2010. In June 2011, the hotel must calculate the percentage using the total reimbursement and contribution amounts for June 2010 through May 2011. The resulting percentage must be applied to all reimbursements received from June 1, 2010, through May 31, 2011, to determine the amount of reimbursements subject to transient rental tax for that period. The hotel must report any taxable reimbursements for June 2010 through May 2011 on the hotel’s first tax return due following May 2011. The hotel must also apply the June 2010 through May 2011 percentage to all reimbursements received each reporting period for the remainder of calendar year 2011. In January 2012, the hotel must recalculate the annual percentage using the total reimbursement and contribution amounts for January through December, 2011.

5. If a hotel ceases to participate in a reward points program before the completion of a full twelve month period, then the hotel must determine the percentage to be applied to reimbursements received by using the period of time that the hotel participated in the reward points program. Any tax due must be reported on the hotel’s first tax return due following the date on which the hotel ceases to participate in the reward points program.

(e) Tax must be reported and remitted as provided in Rule 12A-1.056, F.A.C.

(4) Recordkeeping.

(a) A hotel must maintain records received from or sent to the program administrators indicating reimbursements and contributions, and records indicating the calculations required under this rule to determine the amount of transient rentals tax due, until tax imposed or administered by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(b) Electronic storage of the required records will be sufficient compliance with the provisions of this subsection.

History

• Rulemaking Authority 125.0104(3)(k), 125.0108(2)(e), 212.0305(3)(f), 212.12(12), 212.18(2), 213.06(1) FS., Ch. 67-930, L.O.F. Law Implemented 125.0104(1)-(4), (8), (10), 125.0108, 212.03(1)-(5), (7), 212.0305, 212.054 FS., Chapter 67-930, L.O.F. History–New 5-23-11.

Fla. Admin. Code R. 12A-1.062 Information Services

(1) The sale of information services involving the furnishing of printed, mimeographed, multigraphed matter, or matter duplicating written or printed matter, other than professional services and services of employees, agents or other persons acting in a representative or fiduciary capacity, are taxable.

(2) The charge for information services furnished to newspapers, such as news research services, including photo and news services, and radio and television stations is exempt.

(3)(a) “Information services” means and includes the services of collecting, compiling or analyzing information of any kind of nature, or furnishing reports thereof to other persons. The charge for furnishing information services, such as newsletters, tax guides, research publications, and other written reports of compiled information, which are not produced for and provided exclusively to a single customer, is taxable.

(b) The term “information services” does not include the furnishing of information, including a written report to a person of a personal or individual nature, that is not or may not be substantially incorporated in reports furnished to other persons.

(4) The charge for news research and information services, such as press clipping services, is exempt, even though the charge may be based on the number of clippings provided and the per clipping charge may be separately stated from the charge for providing the research and information service.

(5) The charge for furnishing information by way of electronic images which appear on the subscriber’s video display screen does not constitute a sale of tangible personal property nor does it constitute the sale of a taxable information service.

(6)(a) Providers of information services are considered the ultimate consumers of tangible personal property, such as display terminals, central processing units, and other equipment that is used in providing information services and are required to pay tax on the acquisition of tangible personal property used in providing such service.

(b) When providers of information services make a separate charge to subscribers for the use, rental, lease, or license to use tangible personal property the charge is subject to tax. For the purchase of tangible personal property for which a separate rental charge is made see Rule 12A-1.071, F.A.C.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1), 212.06(1), 212.08(7)(v) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.62, Amended 9-14-93, 6-19-01.

Fla. Admin. Code R. 12A-1.063 Tangible Personal Property Consumed in Manufacturing, Processing, Assembling and Refining

(1)(a) The terms “retail sale,” “sale at retail,” “use,” “storage,” and “consumption” shall not include the sale, use, storage, or consumption of industrial materials, including chemicals and fuels, for future processing, manufacturing, or conversion into articles of tangible personal property for resale where such industrial materials, including chemicals and fuels, become a component part of the finished product nor shall such term include materials, containers, labels, sacks, or bags intended to be used one time only for packaging tangible personal property for sale or for packaging in the process of providing a service taxable under Chapter 212, F.S.

(b) The sale, use, storage, or consumption of tangible personal property, including machinery and equipment or parts thereof, purchased electric power, fuels (except those exempted under paragraph 12A-1.059(2)(a) F.A.C.), or any other kind of energy used to power machinery, when said items are used and dissipated in fabricating, processing, or converting materials into tangible personal property for resale are taxable even though they may become ingredients or components of the tangible personal property for sale through accident, wear, tear, erosion, corrosion, or similar means. Example: Grinding balls and chains used to crush cement in a concrete manufacturing plant are taxable.

(2) Sandpaper, grinding wheels, saw blades, drills, files and tools of similar types, as well as detergents used for removing grease and oil from parts, etc., are taxable.

(3) Detergents, industrial chemicals and boiler compounds which are used and exhausted in caring for, cleansing and preserving the machinery and tools used in the manufacturing process are taxable.

(4) Cutting oil used by machine shops in the manufacture of tangible personal property for sale is taxable.

(5) Calcium carbide used for generating acetylene for sale is exempt.

(6) Silicate of soda used one time only for the purpose of cleaning and reclaiming fuel oil for sale is taxable.

(7) Cutters, tools, jigs, hobs, etc., even though especially designed for a particular job and not reusable except on a job of exactly the same specifications are taxable.

(8) Chemicals such as calcium chloride, which are used in making brine which is used as a refrigerant are taxable.

(9) Anhydrous ammonia used in the manufacture of ice does not become a component part of the finished product and is taxable.

(10) Lime used in the manufacture of ice for the purpose of softening, purifying and preventing discoloration of the water used, becomes a component part of the finished product and is exempt.

(11) When NoKrack pellets go into and become a part of the ice block sold for commercial purposes, they are exempt.

(12) Carbon dioxide gas used to carbonate soft drinks and beer becomes a component part of the finished product and is exempt.

(13) Chlorine is taxable when used in cooling systems.

(14) Gases used by citrus packing houses for coloring fruit are exempt.

(15) Soaps, soap powders and detergents used by packing houses, citrus concentrate plants and canneries to clean fruits and vegetables are taxable.

(16) Preparations applied directly to citrus fruits in a packing house to retard the growth of mold and bacteria are taxable.

(17) Polyethylene plastic bags used for drum liners and rings used to seal drums and/or storage cans by the citrus concentrate and processing industry are considered to be immediately consumed in interim processing of tangible personal property for resale and are taxable.

(18) Carbofrax or checker brick used in the manufacture of artificial gas for commercial use and sale is in the nature of a part of the plant’s machinery and is taxable.

(19) Purchases of regulators by public utility gas companies to be attached to consumption meters, acting as a device to adjust the pressure of gas from the main to a usable consumption level for commercial appliances are taxable to the utility company. Gas meters and parts pertaining thereto are also taxable. Odorants added by public utility gas companies as a safety factor are exempt when purchased by the utility.

(20) Distribution transformers and the equipment parts pertaining thereto, and meter boxes and metering equipment and parts pertaining thereto, when purchased and used by power companies are taxable.

(21) The inspection fee charged and invoiced by the seller on telephone and power line poles is taxable. Such charge, when made by an independent inspector, is exempt.

(22) Iron oxide shavings, fatchemco, ag-el-40, soda ash and lime and disodium phosphate are industrial materials and are used directly and are immediately dissipated in the manufacturing process and are taxable.

(23) Industrial shells which consist of lead slugs with powder charges and are fired into rotary kilns to prevent the product from solidifying, as in the manufacture of defluorinated phosphate for sale are taxable.

(24) Core paste or core oil used by foundries to facilitate the removal of castings from molds is taxable.

(25) Bentonite (volclay), pitch, sea-coal and parting, which are mixed with sand in making foundry molds, are considered to be immediately dissipated in manufacturing castings for sale and are taxable.

(26) Molding sand and flour used in making foundry molds and cores are taxable.

(27) Plumbago or similar mold release products that are applied to the face of a mold are taxable even though small traces of the material may become an ingredient of the finished product through accident, wear, tear, erosion, corrosion, adhesion, or other similar means.

(28) Limestone and Purite charged into the furnace along with coke, pig iron and scrap iron to free the iron of impurities in the manufacture of castings are taxable.

(29) Firebricks, fire clay and ganister used in foundry furnaces are taxable.

(30) Chill-nails and chaplets, used respectively to retard shrinkage and to hold cores in place, become component parts of the finished castings and are exempt.

(31) Welding rods which become a component part of tangible personal property produced for resale are exempt. Welding flux, although immediately dissipated in fabricating tangible personal property for resale, is taxable.

(32) Concrete curing compounds used by concrete block manufacturers in producing tangible personal property for resale are exempt. They are taxable when used by contractors in the performance of contracts under Rule 12A-1.051, F.A.C.

(33) When Icascocide and Cre-O-Tox are sold to a producer or wholesaler to be placed on lumber which is to be resold, they are exempt. When sold to a consumer to be placed on lumber for his own use, they are taxable.

(34) White oil, purchased by bakeries as a dough divider or through grease to prevent the dough from adhering to mixing machinery is exempt.

(35) Rough used by manufacturers for imparting a lustre to plastic eyeglass frames becomes a component part of the finished product and is exempt.

(36) Commercial salt used in curing hides for resale is exempt.

(37) Dynamite used as an explosive in quarrying or mining tangible personal property for sale is taxable.

(38) Ink used for stamping the tax on cigarettes or in postage metering machines is taxable.

(39) Rubber covers used as stencils in the process of sand blasting the faces of tombstones, although immediately dissipated, are taxable.

(40) Sand used in sandblasting, even though immediately dissipated in the processing, manufacture or fabrication of tangible personal property for sale is taxable. Sand used in repairing or remodeling tangible personal property or real property is taxable to the contractor or user as an overhead cost item.

(41) Fuel (except those fuels exempted under paragraph 12A-1.059(2)(a), F.A.C.), used in reconditioning open-head drums for resale by fire blasting process that burns paint and residue of prior content from the drums is taxable as an industrial material, even though it is immediately dissipated in processing tangible personal property for sale.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(14)(a), (c), (15), (21), 212.05(1)(f), 212.08(7)(b) FS. History–New 10-7-68, Amended 1-17-71, 6-16-72, 12-23-80, 7-20-82, Formerly 12A-1.63, Amended 12-16-91.

Fla. Admin. Code R. 12A-1.064 Sales to Licensed Common Carriers Operating Motor Vehicles or Railroad Rolling Stock in Interstate and Foreign Commerce

(1) Scope. This rule is intended to provide guidelines for the partial exemption for railroad rolling stock and parts and motor vehicles and parts provided in Section 212.08(9), F.S., to carriers who transport persons or property for hire in interstate or foreign commerce.

(2) Motor vehicles.

(a) Motor vehicles used to transport persons or property for hire in interstate or foreign commerce that are operated by any common carrier licensed by the United States Department of Transportation, and parts for such motor vehicles, are subject to the partial exemption provided in Section 212.08(9)(b), F.S. Tax imposed is based on the ratio of Florida highway mileage to total highway mileage traveled by the carrier’s motor vehicles that were used in interstate or foreign commerce and that had at least some Florida mileage during the previous fiscal year of the carrier.

(b) A motor vehicle is used by a common carrier in interstate and foreign commerce if it carries persons or property that are moving in interstate or foreign commerce, whether the vehicle travels outside Florida or only within Florida.

(c) Motor vehicles that are purchased by common carriers outside Florida, and put into service in interstate commerce outside Florida prior to entering Florida, as evidenced by the registration of the motor vehicles in another state, are not subject to Florida sales or use tax.

(d) Charges for the installation of parts that are installed in Florida on motor vehicles used by a licensed common carrier in interstate or foreign commerce are subject to the partial exemption. Repairs and installation of parts on such vehicles performed outside Florida are not subject to tax.

(e) Motor vehicles, and parts thereof, used exclusively in intrastate commerce do not qualify for the partial exemption.

(f)1. Trucking companies or other companies that transport products between Florida and other states that do not operate as licensed common carriers are not entitled to the partial exemption.

2. Vehicles, and parts thereof, used by contract carriers or private carriers do not qualify for the partial exemption.

(g) Tools and materials and supplies, such as sandpaper, blasting sand, sanding discs, masking tape, rags, and mineral spirits, used in the repair and maintenance of motor vehicles while they are in Florida are subject to tax at the rate imposed by Section 212.05(1), F.S.

(h) Tangible personal property used in the construction, improvement, and repair of a common carrier’s real property is subject to tax at the rate imposed by Section 212.05(1), F.S.

(3) Railroads.

(a) Railroads that are licensed as common carriers by the United States Surface Transportation Board are subject to tax on rolling stock, and parts thereof, used to transport persons or property for hire in interstate or foreign commerce, as provided in Section 212.08(9)(a), F.S. The tax is based on the ratio of Florida mileage to total mileage traveled by the carrier during the previous fiscal year of the carrier.

(b) The lease or rental of railroad cars by a railroad company for use on its tracks is exempt if the charges are subject to the jurisdiction of the United States Surface Transportation Board and based on hourly, daily, or mileage charges for the presence of a railroad car on the tracks of the railroad company paying the rental charge.

(c) Charges made pursuant to railroad car service agreements are exempt from tax.

(d) Railroad rolling stock, and parts thereof, used by persons are not licensed by the United States Surface Transportation Board as common carriers do not qualify for the partial exemption.

(e) Tools and materials and supplies, such as sandpaper, blasting sand, sanding discs, masking tape, rags, and mineral spirits, used in the repair and maintenance of railroad rolling stock while the rolling stock is in Florida are subject to tax at the rate imposed by Section 212.05(1), F.S.

(f) Tangible personal property used in the construction, improvement, and repair of a railroad company’s real property is subject to tax at the rate imposed by Section 212.05(1), F.S.

(4) Partial exemption at the time of purchase.

(a) To obtain the partial exemption provided in Section 212.08(9)(a) or (b), F.S., at the time of purchase, the licensed common carrier purchasing a motor vehicle, or parts thereof, or the licensed railroad carrier purchasing rolling stock, or parts thereof, for use to transport persons or property for hire in interstate or foreign commerce, is required to:

1. Hold a valid sales and use tax certificate of registration; and,

2. Hold a valid Sales and Use Tax Direct Pay Permit (Form DR-16P, incorporated by reference in Rule 12A-1.097, F.A.C.) issued by the Department. To obtain a direct pay permit, the carrier is required to file an Application for Self-Accrual Authority/Direct Pay Permit-Sales and Use Tax (Form DR-16A, incorporated by reference in Rule 12A-1.097, F.A.C.) with the Department, as provided in Rule 12A-1.0911, F.A.C.

(b) Any licensed common carrier or licensed railroad carrier that holds a valid direct pay permit may extend a copy of its direct pay permit to the selling dealer at the time of purchase or lease in lieu of paying tax to the selling dealer. Licensed common carriers and licensed railroad carriers are not authorized to extend a copy of an Annual Resale Certificate to make such purchases tax-exempt. Any licensed common carrier or licensed railroad carrier that extends a copy of its direct pay permit to a selling dealer in lieu of paying tax on property subject to the partial exemption under Section 212.08(9)(a) or (b), F.S., is required to accrue and remit the tax due based on the carrier’s mileage apportionment factor directly to the Department.

(5) Computation of mileage apportionment factor and tax due.

(a)1. Licensed common carriers are required, at the end of each fiscal year of operation, to determine the ratio of Florida highway mileage to total highway mileage traveled by the carrier’s motor vehicles used in interstate or foreign commerce that had at least some Florida highway mileage during the fiscal year. The ratio computed is the carrier’s mileage apportionment factor to be applied to purchases during the following fiscal year.

2. Licensed railroad carriers are required, at the end of each fiscal year of operation, to determine the ratio of Florida mileage to total mileage traveled by the carrier’s rolling stock during the fiscal year. The ratio computed is the carrier’s mileage apportionment factor to be applied to purchases during the following fiscal year.

(b)1. Licensed common carriers operating motor vehicles to transport persons or property for hire in interstate or foreign commerce are required to apply their mileage apportionment factor calculated at the end of the prior fiscal year to the total monthly purchases and leases in Florida of qualified motor vehicles, and parts thereof, during the current fiscal year. Carriers are required to calculate and report tax to the Department on a monthly basis.

2. Licensed railroad carriers operating rolling stock to transport persons or property for hire in interstate or foreign commerce are required to apply their mileage apportionment factor calculated at the end of the prior fiscal year to the total monthly purchases in Florida of qualified rolling stock, and parts thereof, during the current fiscal year. Carriers are required to calculate and report tax to the Department on a monthly basis.

(c) During a licensed common carrier’s or a licensed railroad carrier’s initial year of operation in Florida, the carrier may estimate the mileage apportionment factor on the basis of the ratio of anticipated Florida mileage to anticipated total miles for that year for motor vehicles or railroad rolling stock that are anticipated to have at least some Florida mileage. At the end of the initial year of operation, the carrier is required to determine the mileage apportionment factor based on the actual Florida mileage and the actual total mileage for the initial year of operation. The carrier is required to pay any additional tax due based on the actual mileage apportionment factor. The tax is due with the carrier’s return due for the first month of the carrier’s second year of operation in this state. The carrier may take a credit or apply to the Department for a refund of tax paid, as provided in Rule 12A-1.014, F.A.C., when the tax paid based on the estimated mileage apportionment factor exceeds the tax due based on the actual factor for the initial year of operation.

(6) Fuel used in interstate or foreign commerce.

(a) Diesel fuel used in vehicles for off-road purposes is subject to the partial exemption provided in Section 212.08(4)(a)2., F.S. Tax is based on the licensed carrier’s mileage apportionment factor when:

1. The fuel is placed into a separate tank that is not connected to the fuel supply system of a motor vehicle operated by a licensed common carrier to transport persons or property for hire in interstate or foreign commerce, and the fuel is used to operate a refrigeration unit or other equipment located on the motor vehicle; or

2. Used during idle time for the purpose of running climate control systems and maintaining electrical systems in motor coaches that meet the criteria specified in Section 206.8745(8), F.S., and that are operated by licensed common carriers to transport persons or property for hire in interstate or foreign commerce.

(b) Diesel fuel used in locomotives operated by licensed railroad carriers to transport persons or property for hire in interstate or foreign commerce is subject to the partial exemption provided in Section 212.08(4)(a)2., F.S. Tax is based on the carrier’s mileage apportionment factor.

(c)1. Licensed common carriers or licensed railroad carriers who purchase dyed diesel fuel subject to sales tax at the time of purchase may extend a copy of the carrier’s Sales and Use Tax Direct Pay Permit to the selling dealer to claim the partial exemption at the time of purchase. Any carrier that extends a permit to purchase the fuel exempt from sales tax is required to remit the sales tax due on the diesel fuel based on the carrier’s mileage apportionment factor directly to the Department.

2. Licensed railroad carriers that hold a valid Sales and Use Tax Direct Pay Permit may extend a copy of the permit to the selling dealer to claim the partial exemption at the time of purchase. The carrier is required to remit the tax due on the diesel fuel based on the carrier’s mileage apportionment factor directly to the Department.

(7) Refunds to claim the partial exemption.

(a) Licensed common carriers and licensed railroad carriers who do not hold a valid Sales and Use Tax Direct Pay Permit are required to pay tax to the selling dealer at the time of purchase or lease. Carriers entitled to the partial exemption provided in Section 212.08(9), F.S., may obtain a refund of tax paid at the time of purchase or lease, less the amount of tax due under the partial exemption, directly from the Department.

(b) Any licensed common carrier or licensed railroad carrier seeking a refund of tax paid in excess of the tax due under the partial exemption must:

1. Obtain a certified statement from the selling dealer that the tax paid to the dealer has been remitted to the Department. The certified statement is to be submitted to the Department with an Application for Refund-Sales and Use Tax-Sales and Use Tax. A suggested format of a certificate is provided in paragraph (c);

2. File with the Department an Application for Refund-Sales and Use Tax (Form DR-26S, incorporated by reference in Rule 12-26.008, F.A.C.), including the required statement, that meets the requirements of Sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C., within 3 years after the date the tax was paid.

(c) The following is a suggested format for a certified statement to be executed by the selling dealer to evidence that tax paid to the selling dealer has been remitted to the Department of Revenue:

CERTIFICATE

TAX PAID TO THE DEPARTMENT OF REVENUE

The undersigned officer who is duly authorized by _________________________________________________________________,

SELLING DEALER, hereby certifies to __________________________, PURCHASER, it has paid sales tax to the Florida Department of Revenue, totaling the sum of $_______.

The company further certifies the sales tax for the attached invoice(s) was paid to the State of Florida in the month(s) of under sales tax number _____________________.

---

SIGNATURE OF AUTHORIZED OFFICER

---

TITLE

(8) Damage claims and demurrage charges by carriers.

(a) The payment of a damage claim by a carrier to any person for damage suffered by merchandise in transit is not a sale of tangible personal property and is not subject to tax, even when the carrier retains the damaged property under settlement of the claim.

(b) The charge for repairs of the damaged property to the carrier is subject to tax.

(c) Any carrier who maintains and operates a salvage depot to sell merchandise damaged in transit and acquired by the carrier in settlement of a damage claim is required to collect sales tax on sales of the damaged property.

(d) Demurrage charges for delays due to loading or unloading cargo beyond the stipulated time are not for the rental or lease of property and are not subject to tax. Example: The charge made to a shipper by a carrier for the retention of a railroad car, trailer, or semi-trailer beyond the scheduled time allowed, due to the delay of loading or unloading goods, is not taxable, irrespective of how the charge is designated.

(9) Recordkeeping requirements.

(a) Dealers must maintain copies of direct pay permits, certificates, and any other documentation required under the provisions of this rule until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(b) Electronic storage by the selling dealer of the required certificates and other documentation through use of imaging, microfiche, or other electronic storage media will be sufficient compliance with the provisions of this subsection.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(10)(g), 212.05(1), 212.06(1), 212.08(4)(a), (9), 212.13(1), 212.21(3), 213.255(1), (2), (3), 215.26(2) FS. History–New 10-7-68, Amended 1-7-70, 6-16-72, 12-11-74, 5-23-77, 9-26-77, 10-18-78, 3-30-79, 4-10-79, 3-27-80, 7-20-82, 10-13-83, 8-28-84, Formerly 12A-1.64, Amended 1-2-89, 10-16-89, 7-30-91, 3-20-96, 11-30-97, 7-1-99, 6-19-01, 10-2-01, 6-12-03, 5-9-13.

Fla. Admin. Code R. 12A-1.0641 Sales of Vessels Used in Interstate or Foreign Commerce or for Commercial Fishing Purposes

(1) Scope. This rule is intended to provide guidelines for the partial exemption for vessels and vessel parts provided in Section 212.08(8), F.S., to persons who transport persons or property for hire in interstate or foreign commerce or who operate commercial fishing vessels.

(2) Vessels.

(a) Vessels that are used to transport persons or property for hire in interstate or foreign commerce and commercial fishing vessels are subject to the partial exemption provided in Section 212.08(8), F.S. Tax imposed is based on the ratio of Florida mileage to total mileage traveled by the carrier’s vessels that were used in interstate or foreign commerce or for commercial fishing purposes and that had at least some Florida mileage during the previous fiscal year of the carrier.

(b) The mileage of vessels from the territorial limit to port dockside and return into international waters, foreign or coastwise, in the continuous movement of persons or property in interstate or foreign commerce is not considered to be mileage in Florida.

(c) “Commercial fishing vessels” include vessels designed, constructed, and used exclusively for the taking of fish, crayfish, oysters, shrimp, and sponges from the salt and fresh waters for sale. Vessels used for sports or pleasure fishing, such as pleasure fishing boats, charter boats, or party boats, are not commercial fishing vessels.

(d) Vessels used in intrastate commerce exclusively within the territorial waters of Florida do not qualify for the partial exemption.

(e) Vessels that are not operated to transport persons or property for hire in interstate or foreign commerce, even though such vessels may move persons or property across the Florida state line, do not qualify for the partial exemption. For example, a dredge is operated by a company to transport its workmen and equipment between two states. The dredge is not operated to transport persons or property for hire in interstate or foreign commerce, because the company is not receiving compensation for transporting its own workmen. The purchase of the dredge does not qualify for the partial exemption.

(f) Vessels that are not engaged in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes are subject to tax, as provided in Section 212.05, F.S.

(3) Computation of mileage apportionment factor and tax due.

(a) Vessel owners are required, at the end of each fiscal year of operation, to determine the ratio of Florida mileage to total mileage traveled by the owner’s vessels operated to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes that had at least some Florida mileage during the fiscal year. The ratio computed is the owner’s mileage apportionment factor to be applied to purchases, leases, and rentals of vessels, and parts thereof, subject to the partial exemption under Section 212.08(8), F.S., during the following fiscal year.

(b) Vessel owners are required to apply their mileage apportionment factor calculated at the end of the prior fiscal year to purchases and leases of vessels, and parts thereof, that will be operated exclusively to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes during the current fiscal year. Vessel owners are required to calculate and report tax to the Department on a monthly basis.

(c) During the owner’s initial year of operation in Florida, the owner’s mileage apportionment factor may be determined on the basis of the ratio of anticipated Florida mileage to anticipated total mileage for that year for the owner’s vessels used to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes that are anticipated to have at least some Florida mileage. At the end of the initial year of operation, the owner is required to determine the mileage apportionment factor based on the actual Florida mileage and the actual total mileage for the initial year of operation. The owner is required to pay any additional tax due based on the actual mileage ratio. The tax is due with the owner’s return due for the first month of the owner’s second year of operation in this state. The owner may take a credit or apply to the Department for a refund of tax paid, as provided in Rule 12A-1.014, F.A.C., when the tax paid based on the estimated mileage ratio exceeds the tax due based on the actual mileage ratio for the initial year of operation.

(4) Claiming the exemption at the time of purchase of a vessel.

(a) To claim the exemption at the time of purchase of a vessel that will be used exclusively in non-Florida waters to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes, the vessel owner, or the owner’s agent or representative purchasing the vessel, is required to issue an affidavit to the selling dealer. The purchaser executing the affidavit must affirm that the vessel is for the exclusive use designated in Section 212.08(8), F.S., the vessel will be used exclusively in non-Florida waters, and the vessel will not be used for sport or pleasure fishing purposes. Purchasers who purchase vessels solely for this purpose require no registration with the Department. A suggested format of an affidavit is provided in paragraph (d).

(b)1. To claim the partial exemption at the time of purchase, the person purchasing a vessel used in interstate or foreign commerce in both Florida and non-Florida waters or purchasing a commercial fishing vessel is required to:

a. Hold a valid sales and use tax certificate of registration;

b. Hold a valid Sales and Use Tax Direct Pay Permit (Form DR-16P) issued by the Department. To obtain a direct pay permit, the purchaser of the vessel is required to file an Application for Self-Accrual Authority/Direct Pay Permit (Form DR-16A) with the Department, as provided in Rule 12A-1.0911, F.A.C. Forms DR-16A and DR-16P are incorporated by reference in Rule 12A-1.097, F.A.C.; and,

c. Execute an affidavit to the selling dealer affirming that the vessel is for the exclusive use designated in Section 212.08(8), F.S., the vessel will not be used for sport or pleasure fishing purposes, and the basis of the tax due on the purchase of the vessel. A suggested affidavit is provided in paragraph (d).

(c) Any owner who executes an affidavit to purchase a vessel used in both Florida and non-Florida waters for use in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes is required to remit the tax based on the owner’s mileage apportionment factor to the Department. The owner is required to remit such tax when the owner’s agent or representative has executed an affidavit.

(d) The following is a suggested format of an affidavit to be executed at the time of purchase by the owner or the owner’s agent or representative to the dealer selling or leasing the vessel:

AFFIDAVIT

VESSELS USED TO TRANSPORT PERSONS OR PROPERTY

FOR HIRE IN INTERSTATE OR FOREIGN COMMERCE

OR FOR COMMERCIAL FISHING PURPOSES

I, the undersigned individual, hereby declare that I am the purchaser or the purchaser’s agent or representative authorized to act for the purchaser in the purchase of the vessel described below. The option checked below applies to this purchase:

( ) The vessel will be used exclusively to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in non-Florida waters, including the mileage from the territorial limit to port dockside and return into international waters. The vessel will not operate in or on the canals or waterways, or within the territorial waters, of Florida and is not subject to Florida sales tax.

( ) The vessel will be used in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in both non-Florida waters and in Florida territorial waters. The purchaser holds a valid Sales and Use Tax Direct Pay Permit issued by the Florida Department of Revenue and must pay tax imposed under Section 212.08(8), F.S., at the rate of ___% of the sales price of the vessel directly to the Florida Department of Revenue. The tax is due on the 1st day of the month following the date of purchase of the designated vessel and is delinquent on the 21st day of that month.

DESCRIPTION OF VESSEL: _________________________________________________________________________________

NAME OF VESSEL: ________________________________________________________________________________________

STATE REGISTRATION NUMBER: ___________________________________________________________________________

COAST GUARD DOCUMENTATION NUMBER: ________________________________________________________________

MAKE: __________________________________ MODEL: ___________________________________

YEAR: ___________________________________ SERIAL NUMBER: __________________________

SALES PRICE OF DESIGNATED VESSEL: _____________________________________________________________________

NAME OF SELLING DEALER: _______________________________________________________________________________

SELLING DEALER’S ADDRESS: _____________________________________________________________________________

SELLING DEALER’S SALES TAX NO.: _______________________________________________________________________

NAME OF VESSEL OWNER: ________________________________________________________________________________

NAME OF PURCHASER: ____________________________________________________________________________________

PURCHASER’S TITLE OR DESIGNATION: ____________________________________________________________________

VESSEL OWNER’S SALES TAX NO.: _________________________________________________________________________

I understand that if I fraudulently issue this affidavit to evade the payment of Florida sales tax, I will be liable for payment of the tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Under penalties of perjury, I declare that I have read the foregoing affidavit and that the facts stated in it are true to the best of my knowledge and belief.

---

SIGNATURE OF PURCHASER OR PURCHASER’S AGENT OR REPRESENTATIVE

---

TITLE OR DESIGNATION

---

DATE

(5) Parts and other items used on vessels.

(a) Vessel parts and other items purchased or leased in Florida that are appropriate to perform the purposes for which a vessel operated to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes is designed or equipped are subject to the partial exemption provided in Section 212.08(8), F.S. Tax is based on the owner’s mileage apportionment factor. Examples of these items are: ice, bait, charts, foul weather gear, ropes, fishing tackle, logs, cooking utensils, and paper supplies.

(b) Charges for repairs or the maintenance of vessels to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes that are performed in Florida are subject to the partial exemption. The tax is based on the owner’s mileage apportionment factor.

(c)1. Items purchased or leased in Florida that are not appropriate to perform the purposes for which a vessel is operated, designed, or equipped are subject to tax at the rate imposed by Section 212.05(1), F.S.

2. Tools and materials and supplies, such as sandpaper, blasting sand, sanding discs, masking tape, rags, and mineral spirits, used in the repair and maintenance of a vessel while the vessel is within Florida are subject to tax at the rate imposed by Section 212.05(1), F.S.

(d) Nets, and parts used in the repair of nets, are exempt when used exclusively by commercial fisheries. To claim the exemption, the fishery is required to issue an exemption certificate to the seller. A suggested format of an exemption certificate is provided in Rule 12A-1.087, F.A.C.

(e) The vessel owner, operator, or the owner’s agent or representative is required to execute an affidavit to the selling dealer to purchase, lease, or rent vessel parts and other items subject to the partial exemption tax-exempt at the time of purchase. The owner is required to pay tax on vessel parts and other qualified items based on the owner’s mileage apportionment factor directly to the Department. The following is a suggested format of the affidavit:

AFFIDAVIT

VESSEL PARTS AND ITEMS APPROPRIATE TO CARRY OUT THE PURPOSE FOR WHICH A VESSEL IS

DESIGNED, EQUIPPED, AND USED IN INTERSTATE OR FOREIGN COMMERCE OR FOR COMMERCIAL

FISHING PURPOSES

I, the undersigned individual, hereby declare that I am the owner, operator, or the owner’s agent or representative authorized to act for the owner in the purchase of the items used on the vessel, ____________________________, Home Port of ____________________________________.

I hereby declare that the named vessel is used to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes and the items purchased from the seller listed on INVOICE NO(S). _________________ will be used exclusively on the named vessel and are appropriate to carry out the purpose for which the vessel is designed, equipped, and used.

I hereby declare that: (The option checked below applies to this purchase.)

( ) The items purchased will be used exclusively on the named vessel in non-Florida waters, including the mileage from the territorial limit to port dockside and return into international waters. The vessel will not be operated in or on the canals or waterways, or within the territorial waters, of Florida. The items purchased are not subject to Florida sales tax.

( ) The items purchased will be used exclusively on the named vessel in both non-Florida waters and in Florida territorial waters. The owner holds a valid Sales and Use Tax Direct Pay Permit issued by the Florida Department of Revenue and must pay tax imposed under Section 212.08(8), F.S., at the rate of __________% of the sales price of the vessel parts and items directly to the Florida Department of Revenue. The tax is due on the 1st day of the month following the date of purchase of the designated vessel parts and items and is delinquent on the 21st day of that month.

I understand that if I fraudulently issue this affidavit to evade the payment of Florida sales tax, I will be liable for payment of the tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Under penalties of perjury, I declare that I have read the foregoing affidavit and that the facts stated in it are true to the best of my knowledge and belief.

---

SIGNATURE OF VESSEL OWNER, OPERATOR, OR OWNER’S AGENT OR REPRESENTATIVE

---

TITLE OR DESIGNATION

---

DATE

(6) Dyed diesel fuel used in interstate or foreign commerce or for commercial fishing purposes.

(a)1. The sale of dyed diesel fuel placed into the storage tank of a vessel or equipment used exclusively for commercial fishing and aquacultural purposes is exempt. “Commercial fishing and aquacultural purposes” means fuel used in the operation of boats, vessels, or equipment used exclusively for the taking of food fish, freshwater fish, marine fish, saltwater fish, and shellfish as defined in Section 379.101, F.S., from any Florida waters for resale to the public.

2. This exemption does not include fuel used for sport or pleasure fishing or fuel used in any vehicle or equipment driven or operated upon the highways of Florida.

3. To purchase dyed diesel fuel exempt from sales tax at the time of purchase, the purchaser is required to provide an exemption certificate to the selling dealer declaring that the fuel will be used exclusively in equipment or a vessel for commercial fishing or aquacultural purposes. The following is a suggested format of a certificate:

EXEMPTION CERTIFICATE

DYED DIESEL FUEL USED EXCLUSIVELY FOR

COMMERCIAL FISHING OR AQUACULTURAL PURPOSES

I certify that dyed diesel fuel placed in the storage tank of a vessel or equipment on or after _________________________ (Date) from ___________________________ (Selling Vendor’s Name) will be used exclusively in equipment or a vessel for commercial fishing or aquacultural purposes.

I understand that if I use the purchased dyed diesel fuel for any nonexempt purpose, I must pay tax on the purchase price of the dyed diesel fuel directly to the Florida Department of Revenue.

I understand that if I fraudulently issue this exemption certificate to evade the payment of Florida sales tax, I will be liable for payment of the tax, plus a penalty of 200% of the tax, and may be subject to conviction of a third degree felony.

Under penalties of perjury, I declare that I have read the foregoing exemption certificate and the facts stated in it are true.

---

SIGNATURE OF PURCHASER OR AUTHORIZED AGENT

---

TITLE OR DESIGNATION

---

DATE

(b)1. The sale of dyed diesel fuel to the owner, operator, or the owner’s agent or representative of vessels operated to transport persons or property for hire in interstate or foreign commerce is subject to the partial exemption provided in section 212.08(4)(a)2., F.S. Tax imposed is based on the vessel owner’s mileage apportionment factor.

2. To purchase dyed diesel fuel exempt from sales tax at the time of purchase, the owner, operator, or the owner’s agent or representative is required to execute an exemption certificate to the selling dealer declaring that the fuel will be used in a vessel operated to transport persons or property for hire in interstate or foreign commerce. The following is a suggested format of an exemption certificate:

SUGGESTED EXEMPTION CERTIFICATE

DYED DIESEL FUEL FOR USE IN A VESSEL OPERATED

IN INTERSTATE OR FOREIGN COMMERCE

I, the undersigned individual, as the owner, operator, or the owner’s agent or representative of the vessel, _______________, Home Port of _________________________, certify the following. The option checked below applies to this purchase:

( ) The named vessel is used to transport persons or property for hire in interstate or foreign commerce in non-Florida waters, including the mileage from the territorial limit to port dockside and return into international waters. The fuel will not be used to operate the vessel in or on the canals or waterways, or within the territorial waters, of Florida and is not subject to Florida sales tax.

( ) The named vessel is used to transport persons or property for hire in interstate or foreign commerce in non-Florida waters and in Florida territorial waters. The fuel will be used to operate vessels in interstate or foreign commerce and is subject to the partial exemption provided in Section 212.08(4)(a)2., F.S. The owner holds a valid sales and use tax certificate of registration issued by the Florida Department of Revenue and must pay tax due on the fuel directly to the Florida Department of Revenue. The tax is due on the 1st day of the month following the date of purchase of the fuel and is delinquent on the 21st day of that month.

I understand that if I fraudulently issue this exemption certificate to evade the payment of Florida sales tax, I will be liable for payment of the tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Under penalties of perjury, I declare that I have read the foregoing exemption certificate and the facts stated in it are true and correct to the best of my knowledge and belief.

---

SIGNATURE OF OWNER, OPERATOR, OR OWNER’S AGENT OR REPRESENTATIVE

---

TITLE OR DESIGNATION

---

DATE

(7) Refunds to claim the partial exemption.

(a) Persons who are entitled to the partial exemption provided in Section 212.08(4)(a)2. or 212.08(8), F.S., may obtain a refund of tax paid at the time of purchase or lease, less the amount of tax due under the partial exemption, directly from the Department.

(b) Persons seeking a refund of tax paid in excess of the tax due under the partial exemption must:

1. Obtain a certified statement from the selling dealer that the tax paid to the dealer has been remitted to the Department. The certified statement is to be submitted to the Department with an Application for Refund-Sales and Use Tax. A suggested format of a certificate is provided in paragraph (c).

2. When seeking a refund of tax paid in excess of the tax due on vessels in excess of the tax due under the partial exemption, execute an affidavit affirming that the designated vessel or designated vessel parts are subject to the partial exemption and the extent of that partial exemption. The affidavit is to be submitted to the Department with an Application for Refund-Sales and Use Tax. Suggested formats of the affidavits are provided in paragraphs (d) and (e).

3. When seeking a refund of sales tax paid on diesel fuel purchased in excess of the tax due under the partial exemption, execute a statement that the fuel purchased qualified for the exemption. The statement is to be submitted to the Department with an Application for Refund-Sales and Use Tax. A suggested format of a certificate is provided in paragraph (f).

4. File with the Department an Application for Refund-Sales and Use Tax (Form DR-26S, incorporated by reference in Rule 12-26.008, F.A.C.), including any required statement or affidavit, that meets the requirements of Sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C., within 3 years after the date the tax was paid.

(c) The following is a suggested format for a certified statement to be executed by the selling dealer to evidence that tax paid to the selling dealer has been remitted to the Department of Revenue:

CERTIFICATE

TAX PAID TO THE DEPARTMENT OF REVENUE

The undersigned officer who is duly authorized by ______________________________________________________,

SELLING DEALER, hereby certifies to __________________________________, PURCHASER, it has paid sales tax to the Florida Department of Revenue, totaling the sum of $___________.

The company further certifies the sales tax for the attached invoice(s) was paid to the State of Florida in the month(s) of under sales tax number _______________________________.

---

SIGNATURE OF AUTHORIZED OFFICER

---

TITLE

(d) The following is a suggested format of an affidavit to be provided to the Department to obtain a refund of tax paid to the selling dealer in excess of the tax due on vessels operated in interstate or foreign commerce or for commercial fishing purposes:

AFFIDAVIT

SALES TAX PAID TO THE SELLING DEALER FOR

A VESSEL USED IN INTERSTATE OR FOREIGN COMMERCE OR

FOR COMMERCIAL FISHING PURPOSES

I, the undersigned individual, hereby declare that I am the owner, operator, or the owner’s agent or representative authorized to act for the owner or operator in the purchase of the vessel described below. The option checked below applies to this purchase:

( ) The vessel is used exclusively to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in non-Florida waters, including the mileage from the territorial limit to port dockside and return into international waters. The vessel is not operated in or on the canals or waterways, or within the territorial waters, of Florida and is not subject to Florida sales tax. I have paid Florida sales tax to the seller and am applying directly to the Florida Department of Revenue to obtain a refund of tax paid in the amount of $______ directly from the Florida Department of Revenue.

( ) The vessel is used in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in both non-Florida waters and in Florida territorial waters. I have paid Florida sales tax to the seller and am applying directly to the Florida Department of Revenue to obtain a refund of tax paid in excess of the tax due pursuant to Section 212.08(8), F.S. I understand that, as the purchaser, I must pay tax imposed under Section 212.08(8), F.S., at the rate of __________ % of the sales price of the vessel and am requesting a refund of tax paid in the amount of $______ directly from the Florida Department of Revenue.

DESCRIPTION OF VESSEL USED IN INTERSTATE OR FOREIGN COMMERCE OR FOR COMMERCIAL FISHING PURPOSES:

NAME OF VESSEL: ________________________________________________________________________________________

STATE REGISTRATION NUMBER: ___________________________________________________________________________

COAST GUARD DOCUMENTATION NUMBER: ________________________________________________________________

MAKE: ________________________________________ MODEL: _______________________________________________

YEAR: _________________________________________ SERIAL NUMBER: ______________________________________

SALES PRICE OF DESIGNATED VESSEL: ____________________________________________________________________

NAME OF SELLING DEALER: _______________________________________________________________________________

SELLING DEALER’S ADDRESS: _____________________________________________________________________________

SELLING DEALER’S SALES TAX NO.: _______________________________________________________________________

VESSEL OWNER OR OWNER’S AGENT OR REPRESENTATIVE: ________________________________________________

TITLE OR DESIGNATION: __________________________________________________________________________________

I understand that if I fraudulently issue this affidavit to evade the payment of Florida sales tax, I will be liable for payment of the tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Under penalties of perjury, I declare that I have read the foregoing affidavit and that the facts stated in it are true to the best of my knowledge and belief.

---

SIGNATURE OF OWNER, OPERATOR, OR OWNER’S AGENT OR REPRESENTATIVE

---

TITLE OR DESIGNATION

---

DATE

(e) The following is a suggested format of an affidavit to be provided to the Department to obtain a refund of tax paid to the selling dealer on items appropriate to carry out the purpose for which a vessel is designed, equipped, and used in interstate or foreign commerce or for commercial fishing purposes:

AFFIDAVIT

ITEMS APPROPRIATE TO CARRY OUT THE PURPOSE FOR WHICH A VESSEL IS DESIGNED,

EQUIPPED, AND USED IN INTERSTATE OR FOREIGN COMMERCE

OR FOR COMMERCIAL FISHING PURPOSES

I, the undersigned individual, as the owner, operator, or the owner’s agent or representative of the vessel, ____________________, Home Port of _____________________, hereby declare that the items purchased from the seller listed on INVOICE NO(S). __________ are used exclusively on the named vessel and are appropriate to carry out the purpose for which the vessel is designed, equipped, and used to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes. The option checked below applies to the items purchased:

( ) The items purchased are used on the named vessel that is used exclusively to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in non-Florida waters, including the mileage from the territorial limit to port dockside and return into international waters. The vessel is not operated in or on the canals or waterways, or within the territorial waters, of Florida and is not subject to Florida sales tax. I have paid Florida sales tax to the seller and am applying directly to the Florida Department of Revenue to obtain a refund of sales tax paid to the seller.

( ) The items purchased are used on the named vessel that is used in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in both non-Florida waters and in Florida territorial waters. I have paid Florida sales tax to the seller and am applying directly to the Florida Department of Revenue to obtain a refund of tax paid in excess of the tax due under Section 212.08(8), F.S. I understand, that as the owner or operator of the vessel, that I must pay tax imposed under Section 212.08(8), F.S., at the rate of _____ % of the sales price of the vessel parts and items and am requesting a refund of tax paid in the amount of $ ________ directly from the Florida Department of Revenue.

I understand that if I fraudulently issue this affidavit to evade the payment of Florida sales tax, I will be liable for payment of the tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Under penalties of perjury, I declare that I have read the foregoing affidavit and that the facts stated in it are true to the best of my knowledge and belief.

---

SIGNATURE OF THE VESSEL OWNER, OPERATOR, OR THE OWNER’S AGENT OR REPRESENTATIVE

---

TITLE OR DESIGNATION

---

DATE

(f) The following is a suggested format of a certificate to be provided to the Department to obtain a refund of tax paid to the selling dealer on fuel in excess of the partial exemption provided in Section 212.08(4)(a)2., F.S.:

CERTIFICATE

TAX PAID ON FUEL USED IN A VESSEL OPERATED IN INTERSTATE OR FOREIGN COMMERCE OR

FOR COMMERCIAL FISHING PURPOSES

I, the undersigned individual, as the owner, operator, or the owner’s agent or representative of the vessel, _______________________, Home Port of __________________, hereby certify that the fuel purchased from the seller listed on INVOICE NO(S). _______________ is used on the named vessel engaged in transporting persons or property for hire in interstate or foreign commerce or engaged in commercial fishing. The option checked below applies to this purchase of fuel.

( ) The fuel was used in the named vessel used exclusively to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in non-Florida waters, including the mileage from the territorial limit to port dockside and return into international waters. The fuel was not used to operate the named vessel in or on the canals or waterways, or within territorial waters, of Florida and is not subject to Florida sales tax. I am requesting a refund of tax paid in the amount of $__________ directly from the Florida Department of Revenue.

( ) The fuel was used in the named vessel used in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in both non-Florida waters and in Florida territorial waters. I have paid Florida sales tax to the seller and am applying directly to the Florida Department of Revenue to obtain a refund of tax paid in excess of the tax due pursuant to Section 212.08(4)(a)2., F.S. I understand that, as the purchaser, I must pay tax imposed under Section 212.08(4)(a)2., F.S., at the rate of _______ % of the sales price of the fuel and am requesting a refund of tax paid in the amount of $ ________ directly from the Florida Department of Revenue.

I understand that if I fraudulently issue this certificate to evade the payment of Florida sales tax, I will be liable for payment of the tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Under penalties of perjury, I declare that I have read the foregoing certificate and that the facts stated in it are true to the best of my knowledge and belief.

---

SIGNATURE OF OWNER, OPERATOR, OR OWNER’S AGENT OR REPRESENTATIVE

---

TITLE OR DESIGNATION

---

DATE

(8) Damage claims and demurrage charges by carriers.

(a) The payment of a damage claim by a vessel owner or operator to any person for damage suffered by merchandise in transit is not a sale of tangible personal property and is not subject to tax, even when the carrier retains the damaged property under settlement of the claim.

(b) The charge for repairs of the damaged property to the vessel owner or operator is subject to tax.

(c) Any person who maintains and operates a salvage depot to sell merchandise damaged in transit and acquired in settlement of a damage claim is required to collect sales tax on sales of the damaged property.

(d) Demurrage charges for delays due to loading or unloading cargo beyond the stipulated time are not for the rental or lease of property and are not subject to tax. Example: The charge made to a shipper for the retention of a marine-cargo container beyond the scheduled time allowed, due to the delay of loading or unloading goods, is not taxable, irrespective of how the charge is designated.

(9) Recordkeeping requirements.

(a) Dealers must maintain copies of affidavits, direct pay permits, certificates, and any other documentation required under the provisions of this rule until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(b) Electronic storage by the selling dealer of the required affidavits, certificates, and other documentation through use of imaging, microfiche, or other electronic storage media will be sufficient compliance with the provisions of this subsection.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1), 212.0501(4), 212.06(1), 212.08(4)(a)2., 4., (8), 212.085, 213.37 FS. History–New 6-12-03, Amended 5-9-13, 5-9-13, 1-20-14, 12-31-20.

Fla. Admin. Code R. 12A-1.065 Sales to Banks

(1) Sales and rentals of tangible personal property to state and national banks are taxable.

(2) Motor vehicles purchased or rented by a state or national bank for the use of its officers and employees are taxable.

(3) The sale of repossessed tangible personal property by a bank to a consumer is taxable. The bank shall collect and remit sales tax on all such sales and, in the case of a motor vehicle, shall provide the purchaser with a receipt therefor which can be attached to the application for certificate of title as proof that tax has been paid on the purchase price. A bank is not liable for the collection of sales tax when it sells a repossessed automobile to a dealer for resale.

(4) The rental charge made by a bank on safety deposit boxes is exempt.

(5) The charge made by a bank for the use of depository bags is a service charge and is exempt.

(6) Imprinted (personalized) checks sold by a bank to its customers are taxable. When such bank issues five or ten checks a month to customers for a fixed charge which represents a service charge on their accounts, such charge is exempt.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1), 212.08(7)(v), 212.081(3) FS. History–New 10-7-68, Amended 2-8-69, 4-11-70, 6-16-72, Formerly 12A-1.65.

Fla. Admin. Code R. 12A-1.066 Auctioneers, Agents, Brokers and Factors

(1)(a) Every agent, auctioneer, broker, or other person who is engaged in any business activity of making sales of tangible personal property with the object of private or public gain, benefit, or advantage, either direct or indirect, who sells at retail, or who offers for sale at retail, or who has in his possession for sale at retail, is required to register as a dealer under Chapter 212, F.S., and collect and remit any applicable tax on the total retail sales price of any taxable item of tangible personal property without any deduction for any expense, such as storage, commission, or repairs. It is immaterial that:

1. The auctioneer, broker, factor, or other person may not have possession of the tangible personal property;

2. The title to the tangible personal property cannot be transferred to the purchaser without further action on the part of the principal; or

3. The purchaser has disclosed the identity of the principal.

(b) An agent, auctioneer, broker, or other person selling tangible personal property shall collect and remit the tax when title or possession of the property is transferred within this state notwithstanding the fact that the tangible personal property belongs to an out-of-state principal.

(c) The following words and terms, when used in this section, shall have the following meaning, unless the context clearly indicates otherwise:

1. “Agent” is a person appointed by a principal or authorized to act for a principal in a transaction involving the sale of an item of tangible personal property.

2. “Auctioneer” is a person subject to the licensing requirements of Chapter 468, F.S., who either owns an item of tangible personal property, or to whom an item of tangible personal property has been consigned or delivered, and who offers the item of tangible personal property for sale by competitive bid.

3. “Broker” is a person who brings other people together to bargain the sale or purchase of an item of tangible personal property.

4. “Factor” is a person who sells on consignment an item of tangible personal property belonging to a principal.

5. “Principal” is a person who employs an agent, auctioneer, broker, factor, or other person to act in his or her behalf in negotiating with a purchaser for the sale of tangible personal property.

(2)(a) Auctioneers who conduct auctions exempt under Section 468.383, F.S., are not required to collect and remit tax on sales made at such auctions.

(b) An auctioneer who receives no compensation for conducting an auction for a religious, charitable, educational, or civic organization as a fund raising event is not required to collect tax on sales of tangible personal property made by the organization at the auction. For guidelines on the taxability of occasional sales made by such organizations, see Rule 12A-1.037, F.A.C.

(3) Every representative, agent, or solicitor who solicits, receives, and/or accepts orders from consumers in the State of Florida for an out-of-state principal refusing to register as a dealer, shall be deemed to be the owner of the property for sale and shall collect and remit any tax applicable to its sale.

(4) Antique dealers operating from established places of business or through organized antique exhibits are required to collect sales tax on their retail sales.

(5) Every retail sale made to a person physically present at the time of sale shall be presumed to have been delivered in this state.

(6) Sales of tangible personal property consigned, delivered, or entrusted to a person registered or required to be registered as a dealer under Chapter 212, F.S., for the purpose of sale are taxable on the total retail sale price without deduction for any expense such as storage, rental, commission, or repairs.

(7)(a) Every barter exchange which maintains a facility for the purpose of bartering items subject to sales tax imposed on sales, use, rentals, admissions, and other transactions as provided in Chapter 212, F.S., is required to register as a dealer and collect and remit any applicable tax on the total sales price of the taxable transaction even though trade units are accepted by the seller in lieu of money.

1. “Barter” means to exchange taxable items without using money.

2. “Barter exchange” means any person maintaining facilities for the purpose of bringing purchasers and sellers together for the purpose of bartering.

3. “Trade units” is the medium of exchange which is debited and credited to members’ accounts when bartering.

(b) Dues and service fees charged by barter exchanges to members for the purpose of becoming members of a barter exchange and for maintaining records on barter transactions are not subject to tax.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(14),(16), 212.05(1), 212.06(1)(a), (2)(b), (h), (3) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.66, Amended 1-2-89, 8-1-02, 1-1-24.

Fla. Admin. Code R. 12A-1.067 Pawnbrokers

Pawnbrokers are primarily engaged in the business of lending money and accepting tangible personal property as security. When unredeemed articles are sold at retail by the pawnbrokers, such sales are taxable, and the pawnbroker must collect and remit the tax thereon.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(2), 212.05(1)(a)1.a. FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.67.

Fla. Admin. Code R. 12A-1.068 Tire Recapping

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(2), (15)(a), (16), 212.05(1) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.68, Repealed 5-9-13.

Fla. Admin. Code R. 12A-1.070 Leases and Licenses of Real Property; Storage of Boats and Aircraft

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.03(6), 212.031 FS. History‒New 10-7-68, Amended 2-8-69, 10-7-69, 6-16-72, 9-26-77, 10-18-78, 12-31-81, 7-20-82, Formerly 12A-1.70, Amended 1-2-89, 3-27-95, 7-17-95, 1-17-18, 1-8-19, 12-12-19, 6-14-22, 12-1-23, 8-6-24, Repealed 12-29-25.

Fla. Admin. Code R. 12A-1.071 Rentals, Leases, or License to Use Tangible Personal Property

(1)(a) For the purpose of this rule, the term “lease” includes any rental or license to use tangible personal property, unless a different meaning is clearly indicated by the context in which it is used. The term refers to all transactions that are not bailments in which there is a transfer of possession of tangible personal property, without regard to limitations upon the use, for a consideration, without a transfer of title to the property. It is not essential for a transfer of possession of tangible personal property to include the right to move the tangible personal property. It includes a transaction under which a person secures for a consideration the temporary use of tangible personal property which, although not on his premises, is operated by or under the direction or control of the person or his employees. All leases of tangible personal property other than conditional-sale type leases as described in paragraph (1)(d) of this rule, are operating leases. Whether a transaction is a “sale” or a “rental, lease, or license to use” shall be determined in accordance with the provisions of the agreement.

(b) Transfer of possession with respect to an operating lease means that one of the following attributes of tangible personal property ownership has been transferred:

1. Custody or possession of the property, actual or constructive;

2. The right to custody or possession of the property; or

3. The right to use and control or direct the use of the property.

(c) For an operating lease, tax applies to the gross proceeds derived from the lease of tangible personal property for the entire term of the lease when the lessor of such property is an established business, part of an established business, or leasing tangible personal property is incidental or germane to the lessor’s business.

1. The “gross proceeds derived” means the total consideration agreed by the parties for the lease of the tangible personal property. Sales tax is due and payable by the lessee to the lessor when the lessee’s obligation arises to pay to the lessor each agreed payment, irrespective of whether the lessee has complied with the obligation to pay the agreed payment(s) to the lessor.

2. Gross proceeds for purposes of this rule include, in addition to the amount attributable to the rental of tangible personal property:

a. Any interest charges whether or not separately stated, unless the interest charges are clearly imposed for late payment or other defaults under the lease.

b. Ad valorem taxes due by the lessee or other person actually using, or entitled to use the tangible personal property to the lessor or any other person on behalf of the lessor, including transactions between affiliated entities.

c. Any portion of an insurance premium due by the lessee or other person actually using, or entitled to use the tangible personal property to the lessor or any other person on behalf of the lessor which names the lessor or his assigns as the beneficiary thereof and which is separately stated or itemized. However, when a lessee or other person pays insurance for his own protection, the premium is not regarded as gross proceeds subject to tax, even though the lessor or other person granting the right to use the tangible personal property is also protected by the coverage.

d. Freight charges incurred as part of the lease transaction. See Rule 12A-1.045, F.A.C.

(d) Where a contract designated as a lease transfers substantially all the benefits, including depreciation, and risks inherent in the ownership of tangible personal property to the lessee, and ownership of the property transfers to the lessee at the end of the lease term, or the contract contains a purchase option for a nominal amount, the contract shall be regarded as a sale of tangible personal property under a security agreement commonly referred to as a conditional-sale type lease, from its inception. The purchase option shall be regarded as a nominal amount if it does not exceed $100 or 1 percent of the total contract price, whichever is the lesser amount.

(e) Whether a lease is a conditional-sale type lease or an operating lease shall be determined in accordance with the provisions of the agreement, read in light of the facts and circumstances existing at the time the agreement was executed. Taxpayers who calculated and paid taxes on leases, entered into after January 2, 1989, pursuant to any amendments to paragraph (1)(d) of this rule adopted after January 2, 1989, shall be deemed to be in compliance with the requirements of this rule.

(f) In the case of a conditional-sale type lease executed on or after the effective date of this rule, the Executive Director or the Executive Director’s designee in the responsible program will consider these to be sales and purchases from their inception with tax due and payable at the moment the contractual agreement is entered into or when the property comes to rest in this state if at a later date. Charges for interest or financing are taxable unless the rate of interest or the actual amount of interest charged is separately stated on the customer’s contract.

(2)(a) Tangible personal property purchased exclusively for leasing purposes by a dealer registered with the Department at the time of purchase may be purchased tax-exempt. The purchasing dealer is required to issue a copy of the dealer’s Annual Resale Certificate to the selling dealer at the time of purchase in lieu of paying tax, as provided in Rule 12A-1.039, F.A.C.

(b)1. Any person who purchases tangible personal property for the dual purpose of leasing it to others and also for his own use, or who purchases tangible personal property with the intention only of leasing it but in fact also uses the property itself, shall pay the tax on the cost price of such property and shall also collect and remit the tax on all leases of such property.

2. The subsequent conversion to one’s own use, of tangible personal property which has been purchased tax exempt for exclusive lease, will be subject to use tax at the time of conversion. The basis of the use tax will be “fair market value” at the time of conversion. If the fair market value of the tangible personal property cannot be determined, then the use tax due at the time of conversion should be based on the acquisition cost of the tangible personal property. Under no circumstances will the aggregate amount of sales tax, from leasing and the use tax at the time of conversion, be less than the total sales tax that would have been due on the original acquisition cost paid by the lessor.

(3) An out-of-state owner or lessor of equipment is doing business in Florida when his tangible personal property is located in Florida in the possession of a lessee, and the owner or lessor shall register and comply with the provision of Chapter 212, F.S. The lease of tangible personal property which is used or stored in this state shall be taxable without regard to its prior use or tax paid on purchase outside this state.

(4) If the lessee of tangible personal property removes the property from the State of Florida, the consideration contracted to be paid subsequent to such removal is not taxable, provided the lessee furnishes the lessor with a signed certificate identifying the property, and the date the property was or will be removed from this state. If the lessee has obtained self-accrual authority from the Department of Revenue, as provided in Rule 12A-1.0911, F.A.C., then the lessee’s records must substantiate when the property was removed from this state. Rental amounts charged or paid while the property is in Florida are taxable, even though the property is moved from the state immediately after the lessee takes possession of it. This does not apply to motor vehicles. See Rule 12A-1.007, F.A.C., for application of tax to rental of motor vehicles.

(5)(a) Rental receipts from motion picture films, when an admission is charged for viewing such films, are exempt.

(b) Tax applies to leases of video cassettes, videotapes, and videodiscs for private use when the lessee does not obtain or acquire the right to license, broadcast, exhibit, or reproduce the video cassettes, videotapes, or videodiscs.

(c) Film and license fees and direct charges for films, videotapes, transcriptions, program syndication, and network syndication used by television stations, radio stations, or networks are exempt.

(6) The lease payments on tangible personal property which is leased solely for the purpose of leasing it to a third party are exempt. The prime lessee is required to register with the Department as a dealer and issue the prime lessor a resale certificate in lieu of tax.

(7) Each operating lease payment due under a lease purchase or similar agreement which also grants the lessee an option to purchase the tangible personal property is taxable. When the option is exercised and title to the property passes to the lessee-purchaser, no tax is due on that part of the purchase price upon which lease tax has been paid. Only the balance of the purchase price required to be paid by the purchaser upon the exercise of the option is taxable.

(8) Repair parts purchased for use in the maintenance of tangible personal property used exclusively for leasing purposes are exempt when purchased by the lessor. When purchased by the lessee, they are taxable. Charges by the lessor to a lessee for repairing property which is not a part of the lease contract are taxable. Charges to the lessee by a third party for repairing the leased property are taxable.

(9)(a) A transaction involving the use of equipment with an operator supplied by the owner of the equipment is a lease if control or direction over the use of the equipment passes to the customer.

(b) When the operator of the equipment is on the payroll of the lessee, the contract constitutes a rental of tangible personal property and is subject to the tax.

(c) A transaction is not a lease if it is for the performance of a specific job in a manner to be determined by the owner or his operator.

(d) When the owner of equipment furnishes the operator and all operating supplies, and contracts for their use to perform certain work under his direction and according to his customer’s specifications, and the customer does not take possession or have any direction or control over the physical operation, the contract constitutes a service transaction and not the rental of tangible personal property, and no tax is due on the transaction.

(10) The tax on leases of machinery, such as cigar machinery, etc., must include not only the basic rental charge for each machine, but also the rentals or royalties assessed on the gross output of each machine.

(11) If equipment is purchased primarily for use by a contractor and is subsequently leased, it is taxable at the time of purchase and also upon its subsequent lease, unless the lease qualifies as an occasional lease. See subsection 12A-1.037(6), F.A.C., for occasional rental of tangible personal property.

(12) The charges under contracts between separate legal entities, such as two corporations, or between a corporation and an individual or between a corporation and a partnership covering the lease of tangible personal property are taxable, even though the stock of the corporation is owned by the same stockholders or by the other contracting parties. Charges under a lease between a partnership and one or more of the individual partners are taxable.

(13) A corporation must charge tax on the gross proceeds derived, from leases of equipment to an individual or to individuals owning 100 percent of its stock.

(14)(a) Tax is due and payable on the charge by a dealer to a customer for the retention of tangible personal property beyond a stipulated time. Such “charges” shall constitute part of the total consideration for the continued possession of tangible personal property when the lessor records such charges as rental income in its books and records. However, if such charges are specifically designated and itemized in the contract, charge ticket, sales slip, invoice, or other tangible evidence of the lease as a penalty or late fee, then such charges or fees are only incidental to the sale, and do not constitute part of the sales price; therefore, such charges are not subject to tax.

(b)1. The amount charged by a lessor to a lessee to cancel or terminate a lease agreement is subject to tax if the lessor records such charge as rental income in its books and records. If such charge is not recorded as rental income by the lessor, then such charge is not considered a payment for the lease of the tangible personal property but as a payment to cancel or terminate the lease agreement.

2. Notwithstanding the provisions of subparagraph (b)1. above, if the amount paid by a lessee to a lessor to cancel or terminate a lease agreement is recorded as a rental expense in the lessee’s books and records, then such payment is subject to tax. However, if the lessee does not record that payment as a rental expense, then such payment is not considered a payment for the lease of the tangible personal property but as a payment to cancel or terminate the agreement, and is not subject to tax. If the lessee records the payment as a rental expense but does not remit tax to the lessor on such payment, then the lessee is required to remit the tax on such charge directly to the Department. The lessee is required to remit the tax on Form DR-15, Sales and Use Tax Return, if a registered dealer, or if unregistered, the lessee is required to remit the tax on Form DR-15MO, Out-of-State Purchase. Forms DR-15 and DR-15MO are incorporated by reference in Rule 12A-1.097, F.A.C.

3. Should the lessee record the payment as a rental expense but provide documentation, such as a lease or other tangible evidence, to establish that the payment is for other than the use of tangible personal property, then such payment is not subject to tax.

4. Should the lessor or lessee record the payment as other than rental income or rental expense, but documentation exists, such as a lease or other tangible evidence, to establish that the payment was additional payment for the use of tangible personal property, then such payment is subject to tax.

(15) When a boat or vessel is chartered with crew furnished, for the carriage or transportation of persons or property from one point to another and the charterer does not have any direction or control over its operation, the contract constitutes a service transaction and not the rental of tangible personal property and is exempt. See paragraph (17)(c) for charter fishing vessels.

(16) When a boat or vessel is leased or rented on a “bare boat” basis, the sales tax applies to the gross proceeds derived from the lease or rental. The lease or rental is considered to be on a “bare boat” basis when:

(a) The lessor does not provide a crew;

(b) The lessor does provide a crew but it is hired by the lessee under a separate employment contract. (Under such circumstances the employment contract cost is not a part of the gross proceeds derived from the lease or rental and is not taxable.)

(17)(a) When the owner of a boat or vessel operated as a “head-boat” or “party boat” supplies the crew, which remains under the control and direction of the owner, and makes a charge measured on an admission or entrance or length of stay aboard the vessel for the privilege of participating in sightseeing, dinner cruises, sport, recreation, or similar activities including fishing, the charge is taxable as an admission.

(b) Example: A vessel having a capacity for 6 persons operates as a “party” or “head-boat” with a charge of $50 per person for a day fishing trip whether 1 or 6 persons are carried on the trip. The charge made is considered a charge for admission and is subject to sales tax.

(c) The charge made for chartering any boat or vessel with a crew furnished, solely for the purpose of fishing, is exempt from the tax on admissions and from the tax on leases or rentals of tangible personal property.

(d) Example: A vessel similar to that in the example in paragraph (b) above is available for a day fishing trip for a charge of $300 per day, with crew furnished, without any reduction for the number of persons participating in the trip. This transaction qualifies as a charter fishing trip and the charge is not subject to sales tax.

(18) Unless a boat or vessel is purchased exclusively for rental on a bare boat basis as described in subsection (16), the purchase of the boat or vessel and parts thereof is taxable. See Rule 12A-1.0641, F.A.C., for vessels engaged in interstate and foreign commerce.

(19) The rental charges on water recreation or transportation devices, including but not limited to boats, sailboats, sailboards, surfboards, pedal boats, skis, jet skis, and canoes are taxable as rentals of tangible personal property.

(20) The rental of aircraft is taxable.

(21) The charge made by an air taxi (charter) to transport a passenger to a certain destination (the passenger does not pilot or take possession of the aircraft) is a charge for transportation service rather than a rental and is exempt from tax.

(22) A charge for flight instruction, which includes supervised solo flights, is exempt. The purchase of an aircraft for this use is taxable.

(23) The charge for any solo flights made by the student after completing his flight course, even though he may be logging hours for a rating or license, is a rental and is taxable. For additional tax information on aircraft, see subsection 12A-1.007(10), F.A.C.

(24) Life preservers, cushions, oars, oar locks, anchors, anchor ropes, and similar equipment purchased for boats which are to be used exclusively for rental purposes are exempt.

(25) The rentals of batteries, life vests, and other survival equipment are taxable.

(26) The rentals of beach umbrellas, beach chairs, dugouts, portable canvas cabanas, and similar equipment are taxable.

(27) The rentals of riding horses by riding stables are taxable.

(28) Rentals of golf carts, clubs, etc., by private and public (municipal) golf courses and by golf professionals are taxable.

(29) Skating rink charges for admission to the premises are taxable. Charges for the privilege of skating are taxable. If the customer rents skates from the rink, the rental charge is taxable.

(30) When the owner of a float contracts with a second party to furnish the driver and float in a parade for the benefit of the second party, the charge made is considered a charge for service and is exempt. The owner is liable for tax on the materials he uses in the construction of the float. If the owner of a float leases it to a second party and surrenders possession to such party, the rental charge is taxable.

(31) The rental of stoves, ice boxes, counter, etc., in connection with an established business is taxable.

(32) Meat saws, chopper knives, and replacement parts therefor furnished to meat markets for a charge are exempt to the dealer at the time of acquisition, and the charges to the meat market are taxable. Such equipment, when furnished to meat markets at no charge, is taxable to the dealer at the time of acquisition.

(33) Caterers are required to pay tax on the purchases or rentals of all dishes, tables, chairs, silver, linens, kitchen utensils, artificial palms, and other items used by them in the conduct of their business. The caterer should pay tax to his supplier and should not furnish the supplier with a resale certificate, except in those instances where he is purchasing or renting such items exclusively for rental and for which he makes a separate charge to his customer.

(34) The rental or lease of a United States flag or the official flag of Florida is exempt. The rental or lease as a unit of a kit that includes the United States flag or the official flag of Florida and related accessories, such as a mounting bracket, a standard, a halyard, and instructions for the display of the flag is also exempt. The lease or rental of any accessory, when not leased or rented as a part of a kit containing the United States flag or the official flag of Florida, is taxable. See Rule 12A-1.001, F.A.C., for the exemption provided for sales of flags and flag kits.

(35) The charges made for rentals of air conditioning equipment which remains tangible personal property are taxable.

(36) The revenue derived from coin operated lockers in hotels, depots, etc., is taxable.

(37) Tanks, drums, pipe, etc., sold or rented by the dealer to persons using liquefied petroleum gas are taxable. The rental charge shall be the fair market price and not a token monthly charge for the use of the equipment. LP gas dealers should pay tax to their suppliers on such items unless purchased for rental or resale.

(38) The rental of well point equipment is taxable.

(39) The rental of small roadside signs, warning lights, and barricades, which are not a part of real property, is taxable.

(40) The entire charge for the lease or license for use of chemical toilet units is taxable, including the cleaning services, since the cleaning services are required to be provided or performed by the lessor or licensor.

(41) Charges made by buses, taxicabs, etc., for advertising space thereon are exempt.

(42) The total amount charged for the rental of a mobile home is taxable, unless rented as a permanent residence. See Rule 12A-1.061, F.A.C.

(43) The receipts from coin operated washing machines provided to tenants by apartment building owners are exempt.

(44) The rental of books is taxable when the total charge exceeds 9¢, even when the lessor is a public or municipally owned library.

(45) The charge made for the use of a tanning device is not taxable as a license to use tangible personal property but is a service which is exempt from tax. Purchases of tanning devices and related supplies used in the performance of the exempt service are subject to tax. See paragraph (2)(b) of this rule.

(46)(a) Assignment of leases. When an “operating lease” is assigned, whether or not title to the leased or rented property is transferred, the rental or lease payments are subject to tax. If title is transferred, tax applies based on the sales price. The situations described below involve assignments of existing “operating leases” subject to tax measured by rental payments:

(b) Assignment of a right and creation of a security interest. This type of assignment is an assignment by the lessor of the right to receive the lease payments together with the creation of a security interest in the leased property which is designated as such. The assignee has recourse against the assignor. The assignee does not have the rights of a lessor and is not obligated to collect or remit tax on the rental payments. The lessor is subject to the obligation of collecting and remitting the tax even though the lessor does not receive the rental payments directly from the lessee. The assignee, however, is required to remit any amounts paid to him by the lessee as tax. If the assignee enforces the security agreement and takes title to the property, the assignee as lessor becomes responsible for collecting and remitting the tax.

(c) Assignment of contract with transfer of right, title, and interst for security purposes. This type of assignment is an assignment by the lessor of the lease contract together with the transfer of the right, title, and interest in the leased property for security purposes. The assignee has recourse against the assignor. After the termination of the lease, the property usually reverts to the original lessor. The assignee, in this situation, has assumed the position of a lessor. The assignee is required to hold a Dealer’s Certificate of Registration and is obligated to collect and remit the tax. The assignor is required to obtain a resale certificate from the assignee in lieu of tax.

(d) Assignment of contract and all rights, title, and interest. This type of assignment is an assignment by the lessor of the lease contract together with the transfer of all rights, title, and interest in the leased property. The assignee has no recourse against the assignor. The assignment is not for security purposes, and the assignor does not retain any ownership rights in the contract or the property. The assignee, in this situation, has assumed the position of a lessor. The assignee is required to hold a Dealer’s Certificate of Registration and is obligated to collect and remit the tax. The assignor is required to obtain a resale certificate from the assignee in lieu of tax.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(1), (4), (10)(g), (12), (14)(a), (15)(a), (16), (19), 212.04, 212.05(1)(c), (d), (f), (h), (i), 212.06(1)(a), (2)(e), (8), 212.08(7)(e), (f), (v), (y), 212.11(2), (3), 212.12(9), 212.18(2), 402.61 FS. History‒New 10-7-68, Amended 1-7-70, 6-16-72, 12-11-74, 12-31-81, 7-20-82, Formerly 12A-1.71, Amended 1-2-89, 10-5-92, 11-16-93, 8-15-94, 10-17-94, 3-20-96, 8-1-02, 6-12-03, 9-28-04, 11-3-09.

Fla. Admin. Code R. 12A-1.072 Advertising Agencies

(1) Definitions. The following terms and phrases when used in this rule shall have the meaning ascribed to them in this subsection, except where the context clearly indicates a different meaning.

(a) “Advertising” is the expression of an idea created and produced for reproduction and distribution through means such as television, radio, Internet, newspapers, newsletters, periodicals, trade journals, publications, books, magazines, standardized outdoor billboards, direct mail, point-of-sale displays, leaflets, brochures, fliers, or package design, and which is designed to promote sales of a particular product or service or to enhance the image of the advertiser. Advertising includes public service messages that are designed to affect the behavior of the public and messages that are political in nature.

(b)1. “Advertising agency” means any firm that is primarily engaged in the business of providing advertising materials and services to clients.

2. Examples.

a. Firms that are primarily engaged in consulting with their clients about marketing and advertising products or services, formulating a marketing plan intended to improve their image or increase their market share, and executing those plans, are considered to be advertising agencies.

b. Firms that are primarily engaged in the business of printing, imprinting, or reproducing tangible personal property and firms that are primarily engaged in the business of photography or broadcasting are not advertising agencies.

c. Firms that primarily specialize in providing pre-press service(s), such as graphic art, color separations, or velox providers are not advertising agencies.

d. Firms that primarily provide audio/visual production or recording services are not advertising agencies.

(c) “Firm” means corporation, sole proprietorship, partnership, or limited liability company.

(d)1. “Primarily engaged in the business of providing advertising materials and services” means more than 50 percent of its gross receipts in the firm’s previous tax year were, or in the first tax year are budgeted to be, from receipts for the sale of advertising materials and services to clients. For purposes of determining whether the firm qualifies under this definition, there shall be deducted from gross receipts amounts paid by the agency on behalf of its client to a third party for charges such as printing, imprinting, reproduction, publishing of tangible personal property, broadcasting advertisements, media placement, or other out-sourced activities before applying the 50 percent test.

2. Example.

Gross Receipts

$2,754,217.00

Deduct Outsourced Costs

Printing Costs

$726,785.00

Media Costs

$779,613.00

Photography

$33,950.00

Total Outsourced Costs

$1,540,348.00

Difference to apply 50% test

$1,213,869.00

50%

$606,934.50

If more than $606.934.50 is from advertising services, this company qualifies as an advertising agency.

3. Example.

Gross Receipts

$2,754,217.00

Receipts from In-House Printing

(Cannot be deducted because not outsourced)

$1,540,348.00

Difference

$1,213,869.00

Amount to apply 50% test

$2,754,217.00

50%

$1,377,108.50

If even the entire $1,213,869.00 is from the provision of advertising services, it is less than 50% of gross receipts. Therefore, this company does not qualify as an advertising agency.

(e) “Advertising materials” means tangible personal property sold to an advertising agency, created by an advertising agency, or sold by an advertising agency during the course of providing advertising services. Examples of advertising materials include: photographs, videos containing images, films containing images, veloxes, galleys, mechanicals, artwork, illustrations, digital audio tapes, analog tapes, compact discs, sketches, layouts, engravings, mats, models, mockups, and digital equipment. “Advertising materials” does not include “raw materials.”

(f) “Raw materials” means materials or media used to create advertising materials. “Raw materials” includes items such as: blank film; blank videotapes; art supplies, such as poster board, paper products, inks, letters, and paints; stock art; stock photography; prerecorded music and sound; stock props; stock costumes; and stock backdrops.

(g) “Advertising services” means services rendered by an advertising agency when designing and/or implementing an advertising campaign to promote a product, service, idea, concept, issue, or the image of a person. This includes services rendered to design and produce advertising materials such as: research; design, layout, preliminary and final art preparation; placing or arranging for advertising: creative consultation, coordination, direction, and supervision; script writing and copywriting; editing; and account management services. However, if an advertising campaign is planned and prepared, but the client elects not to proceed with the production or placement of the advertising, or the client elects to do its own placement of the advertising with the media, the agency will still be considered to have provided advertising services.

(h) “Promotional goods” means tangible personal property used for promotional purposes. Examples of promotional goods include displays, display containers, exhibits, newspaper inserts, brochures, catalogues, direct mail letters or flats, shirts, hats, pens, pencils, key chains, audio tapes, videotapes, compact discs, business cards, or other printed goods or materials.

(i)1. “Acting as agent for its clients pursuant to a contract.” In order to purchase advertising materials exempt from tax, the advertising agency must make purchases on behalf of clients pursuant to a contract. A common law principal/agent relationship is not required. The existence of a contract to act as agent for a client may be evidenced in the advertising agency’s book and records by:

a. A written contract clearly stating that the advertising agency will act on behalf of a client as agent; or

b. Documents, such as invoices and purchase orders, by which the agency discloses to its suppliers that it is acting on behalf of a client, regardless of whether the specific client(s) is identified; or

c. Proof of a course of dealing that would establish an agency relationship, such as being on a retainer paid by the client.

2. When the advertising agency is acting on behalf of its clients pursuant to contract, it may purchase advertising materials tax exempt. When tangible personal property purchased by the advertising agency is depreciated or capitalized for accounting or income tax purposes by the agency, or the advertising agency makes use of the property for its own account, the tangible personal property is subject to tax.

(2) Sales of Services. The sale of advertising services by an advertising agency is exempt from tax. The professional service fee charged by an advertising agency for services is exempt from tax. An advertising agency’s professional fee includes agency time or hourly charges, retainer fees, agency mark-up on exempt advertising materials, and media commissions.

(3) Sales of Advertising Materials.

(a)1. The charge by an advertising agency to clients for advertising materials is exempt from sales tax. The exemption applies regardless of the advertising agency’s method of billing, whether the contract reflects a lump sum or separately states the costs of exempt advertising materials and other services and professional fees.

2. When an advertising agency sells promotional goods along with exempt items or services, the taxable items must be separately stated in order for the exempt items to receive the exemption.

(b) Example: The advertising agency prepares and prints a brochure for its client. The preparation of the brochure includes the concept development, design and layout, preparation of advertising materials, including photographs, artwork, and mechanicals, and the printing of the copies of the brochure. The advertising agency pays sales tax on all raw materials used in creating advertising materials. The following are examples of the proper tax treatment for each method of contracting with the charges to the client:

1. The advertising agency contract separately itemizes the components of the brochure as: design, advertising materials, and printing. Sales tax is due only on the charge for printing, including any mark-up. The sales tax must be separately stated.

2. The advertising agency contract combines the charges for the design services and advertising materials into a single charge, but separately states the printing charge, including the mark-up. Sales tax is due only on the charge for printing, including the mark-up. The sales tax must be separately stated.

3. The advertising agency contract combines the charges for the design services, advertising materials, and printing in a single charge. Sales tax is due on the lump sum charge to the client. The sales tax must be separately stated.

(4) Purchases of Advertising Materials by the Advertising Agency.

(a) If an advertising agency is under contract to act on behalf of its clients, the advertising agency may purchase advertising materials or advertising services exempt from tax by extending an exemption certificate to the vendor. The exemption certificate does not entitle the advertising agency to purchase raw materials exempt from tax, even when those raw materials are used to produce advertising materials in-house. A suggested format of the exemption certificate to be issued to the vendor is provided in subsection (10).

(b) Any vendor providing advertising materials to an advertising agency pursuant to this exemption is relieved of the responsibility of collecting tax on the sale of any advertising materials if:

1. The advertising agency presents an exemption certificate certifying the agency’s entitlement to the exemption to the vendor; and

2. The vendor retains a copy of a purchaser’s exemption certificate from the advertising agency in its records until tax imposed under Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(c) If it is determined that the advertising agency was not entitled to the exemption, the department shall look only to the advertising agency for any sales tax due on the purchase of advertising materials.

(5) Creation of Advertising Materials by the Advertising Agency. If an advertising agency produces, fabricates, manufactures, or otherwise creates advertising materials in-house for its clients, the sale of such advertising materials to its clients is exempt from sales tax. Further, the advertising agency does not pay use tax on the production, fabrication, or manufacture of such advertising materials used in the performance of advertising services for its clients.

(6) Raw Materials Used in Advertising.

(a) The purchase of raw materials, whether purchased by an advertising agency or by a person who creates advertising materials for sale to an advertising agency, is taxable.

(b) Example: When a photographer purchases film, the film is taxable when purchased by the photographer. However, when the photographer alters the film to create an image and sells or licenses the image to an advertising agency, the photographer does not collect tax if the advertising agency issues an exemption certificate to the photographer.

(7) Promotional Goods.

(a) When promotional goods are created by an advertising agency, the charge for development of sample promotional goods is exempt from sales tax, whether produced in-house or purchased from a vendor.

(b)1. When promotional goods are produced or reproduced for distribution, the charge for production or reproduction of the promotional goods is subject to sales tax whether or not the client takes physical possession of the promotional goods produced or reproduced for distribution. The advertising agency must register with the Department of Revenue, and collect and remit tax on the transaction. See Rule 12A-1.060, F.A.C.

2. Example: If an advertising agency uses a printer to produce or reproduce a promotional good, such as a brochure, the advertising agency would extend an annual resale certificate (Form DR-13) to the printer, who would not charge sales tax on the invoice to the advertising agency. However, the advertising agency would be required to charge sales tax to a client for the production or reproduction costs of the promotional good, including the advertising agency’s mark-up for printing. The advertising agency would remit the tax to the Department of Revenue.

(c) For newspaper inserts, see Section 212.05(1)(g)2., F.S. For publications exempt from tax, see Section 212.08(7)(w), F.S.

(8) Billboards. The advertising materials and services used in the creation of billboard concepts and mock-ups by an advertising agency are exempt under these provisions. However, the charge for the production of displays is taxable.

(9) Sales of tangible personal property by an advertising agency to persons other than its clients are taxable, unless specifically exempted by other sections of Chapter 212, F.S.

(10) The following is the suggested format of the exemption certificate to be issued to the vendor by the advertising agency when purchasing exempt advertising materials:

SUGGESTED PURCHASER’S EXEMPTION CERTIFICATE

ITEMS SOLD TO ADVERTISING AGENCIES

____________________ (Purchaser’s Name) certifies that the advertising materials, meaning materials created for the purpose of providing advertising services including, but not limited to, photographs, videos containing images, films containing images, veloxes, galleys, mechanicals, artwork, illustrations, digital audio tapes, analog tapes, compact discs, sketches, layouts, engravings, mats, models, mockups, and digital equipment services, purchased on or after ________ (date) are purchased by the advertising agency pursuant to a contract to act on behalf of a client or clients, and that the items are created to provide advertising services.

Purchaser further certifies that the items are not raw materials, and the items are not being purchased to produce advertising materials in-house by the advertising agency. “Raw materials” means materials or media used to create advertising materials. “Raw materials” includes items such as: blank film; blank videotapes; art supplies, such as poster board, paper products, inks, letters, and paints; stock art; stock photography; prerecorded music and sound; stock props; stock costumes; and stock backdrops.

The undersigned understands that if such items do not qualify for exemption, the undersigned will be subject to sales and use tax, interest, and penalties. The undersigned further understands that when any person fraudulently, for the purpose of evading tax, issues to a vendor or to any agent of the state a certificate or statement in writing in which he or she claims exemption from the sales tax, such person, in addition to being liable for payment of the tax plus a mandatory penalty of 200% of the tax, shall be liable for fine and punishment provided by law for conviction of a felony of the third degree, as provided in Section 775.082, 775.083, or 775.084, F.S.

---

---

(Purchaser’s Name – Print or Type)

Florida Sales Tax Number

(if applicable)

---

---

Signature and Title

Date

---

---

Federal Employer Identification Number

Telephone Number

(F.E.I.) or Social Security Number

(Form to be retained in vendor’s records)

History

• Rulemaking Authority 212.08(7)(vv), 212.18(2), 213.06(1) FS. Law Implemented 212.05(1), 212.06(1), 212.08(7)(v), (vv) FS. History–New 10-7-68, Amended 1-7-70, 6-16-72, 7-20-82, Formerly 12A-1.72, Amended 3-4-01, 12-29-25.

Fla. Admin. Code R. 12A-1.073 Motor Vehicle Parking Lots and Garages, Boat Docks and Marinas, and Aircraft Tie-down or Storage

(1)(a) The lease or rental of parking or storage spaces for motor vehicles in parking lots or garages is taxable.

(b) The lease or rental of docking or storage spaces for boats in boat docks or marinas is taxable.

(c) The lease or rental of tie-down or storage space for aircraft at airports is taxable.

(2) Tax applies to the rental charge for parking, storing, tie-down or docking paid to the operator of the facility by the one who parks, stores, ties-down or docks. The prime lease of the parking, storing, tie-down or docking facility to the operator is not taxable.

(3) Any person who has leased space or spaces in parking lots or garages for motor vehicles or docking or storage space or spaces for boats in boat docks or marinas, or tie-down or storage space for aircraft at airports, and cannot prove that the tax levied by Chapter 212, F.S., has been paid to his vendor or lessee shall be directly liable to the State for any tax, interest, or penalty due on any such taxable transaction.

(4) Off-Street Metered Parking: Where it is impractical to collect tax from the consumer, the following guidelines will be used as a basis for reporting tax.

(a) Off-street metered lots, garages, or docks which provide for less than 10¢ for a unit of time are exempt. This exemption would apply only where the insertion of two or more nickels or one or more dimes is not allowed.

(b) Off-street metered lots, garages, or docks which require coins in denominations of 10¢ or larger shall be taxed at 6 percent of gross receipts.

(c) Off-street metered lots, garages, or docks which have time units of occupancy costing less than 10¢, but which allow multiple insertions, with or without accepting larger coins, so as to accumulate more time, constitute a combination of taxable and nontaxable transactions. In such instances, the Department of Revenue will accept tax computed on 6 percent of 50 percent of gross receipts as compliance with the law.

(5) The parking, docking, tie-down or storage of motor vehicles, boats, or aircraft arising from a lawful impoundment by a local, state, or federal law enforcement agency or an authorized towing service does not constitute a contract for such parking, docking, tie-down or storage, and charges for such parking, docking, tie-down or storage are not taxable.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(2), 212.03(6), 212.06(2)(j), 212.07(2) FS. History–New 10-7-68, Amended 11-9-68, 1-7-70, 6-16-72, 10-18-78, 7-20-82, Formerly 12A-1.73, Amended 1-2-89, 7-7-92, 12-29-25.

Fla. Admin. Code R. 12A-1.074 Trade-Ins

(1) Where used articles of tangible personal property, accepted and intended for resale, are taken in trade, or a series of trades, as a credit or part payment on the sale of new articles of tangible personal property, the tax levied by Chapter 212, F.S., shall be paid on the sales price of the new article of tangible personal property, less credit for the used article of tangible personal property taken in trade. A separate or independent sale of tangible personal property is not a trade-in, even if the proceeds from the sale are immediately applied by the seller to a purchase of new articles of tangible personal property.

(2) Where used articles of tangible personal property, accepted and intended for resale, are taken in trade, or a series of trades, as a credit or part payment on the sale of used articles, the tax levied by Chapter 212, F.S., shall be paid on the sales price of the used article of tangible personal property, less credit for the used articles of tangible personal property taken in trade. A separate or independent sale of tangible personal property is not a trade-in, even if the proceeds from the sale are immediately applied by the seller to a purchase of new articles of tangible personal property.

(3) When title or possession of tangible personal property is transferred for a consideration other than cash, the property transferred is taxable at its full retail value. See Section 212.02(16), F.S. For example, a lumber dealer who trades some lumber for real property must collect tax from the former owner of the real property. If he fails to do so, he is liable for payment of the tax himself under Section 212.07(2), F.S.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(15), (16), 212.07(2), (3), 212.09 FS. History–New 10-7-68, Amended 6-16-72, 12-11-74, Formerly 12A-1.74, Amended 1-2-89, 7-20-11.

Fla. Admin. Code R. 12A-1.075 Deposits

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(15), (16), 212.06(1)(a) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.75, Repealed 6-1-09.

Fla. Admin. Code R. 12A-1.076 Sales of Articles of Clothing, Clothing Accessories, and Jewelry

(1)(a) The sale, rental, repair, or alteration of articles of clothing or clothing accessories is taxable. Any person engaged in the business of selling, renting, repairing, or altering clothing or clothing accessories must register as a dealer with the Department.

(b) The sale of military insignia and uniforms is subject to tax.

(c)1. The total charge for repairing shoes is subject to tax.

2. The total charge for dyeing clothes or shoes is subject to tax.

(d) The tailor’s charge for making a suit from the customer’s goods is subject to tax.

(2) The sale of jewelry, such as earrings, bar pins, cuff links, tie clasps, collar stays, and other similar items, is subject to tax. Jewelry and personal ornaments which have a religious theme or significance are not exempt as church service and ceremonial raiment and equipment and are subject to tax.

(3)(a) Charges for engraving jewelry and other tangible personal property are subject to tax, whether included as part of the sales price or separately stated.

(b) Charges for cutting and polishing stones, minerals, and other similar jewelry articles are subject to tax. See Rule 12A-1.024, F.A.C.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1), 212.06(1) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.76, Amended 3-20-96.

Fla. Admin. Code R. 12A-1.077 Free Merchandise

(1) Donations of taxable tangible personal property made to any person, to a federal or state governmental unit, or to any religious, educational or charitable institution are exempt; however, the donor is required to pay tax on the acquisition cost of the tangible personal property since the donor is the consumer thereof, unless the donor is an exempt entity under Chapter 212, F.S.

(2)(a) Merchandise exchanged for radio or TV advertising time is taxable. Where the regular rates for the radio or TV time exceeds the retail selling price of the merchandise contributed, the tax is due on the retail value of the merchandise, and is collectible by the merchant purchasing the advertising time.

(b) Where the regular rate for advertising time is less than the selling price of the merchandise, but is equal to or greater than the merchant’s cost, tax shall be computed on the value of the advertising time, and in no instance shall the tax be an amount less than the merchant’s cost of such merchandise.

(3) Tangible personal property purchased by banks or other financial institutions to be given away or discounted to a customer based upon the amount of his deposits is taxable at the time of purchase by the bank or institution. No tax should be collected on any consideration received from the depositor.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(14)(a), (15)(a), (16), (20), 212.05(1), 212.06(1)(a), 212.07(8) FS. History–New 10-7-68, Amended 6-16-72, 12-11-74, 10-18-78, Formerly 12A-1.77.

Fla. Admin. Code R. 12A-1.080 Concession Prizes; The Sale of Food, Drink, and Tangible Personal Property at Concession Stands

(1) Operators of game concessions and other concessionaires who customarily award tangible personal property as prizes are the ultimate consumers of such property. Operators may pay tax on the cost price of such property or pay tax on 25 percent of the gross receipts from all such concession activity.

(2)(a) Concessionaires at arenas, auditoriums, carnivals, fairs, stadiums, theaters, and similar places of business where it is impracticable to separately state Florida tax on any charge ticket, sales slip, invoice, or other tangible evidence of sale, may calculate tax due by using a divisor of 1.0659 in counties that do not impose a discretionary sales surtax. To calculate the tax due, divide the total gross receipts by 1.0659 to compute taxable sales. Subtract taxable sales from the total gross receipts to compute the tax due. See Rule 12A-15.010, F.A.C., for divisors in counties imposing a discretionary sales surtax.

(b) Concessionaires at carnivals, fairs, and similar events that separately state Florida sales tax on their charge tickets, sales slips, invoices, or other tangible evidence of sale must remit to the state the amount of tax collected and due on their sales.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(a)1.a., (m), (2), (4), 212.07(2) FS. History–New 10-7-68, Amended 6-16-72, 7-20-82, Formerly 12A-1.80, Amended 12-13-88, 6-19-01.

Fla. Admin. Code R. 12A-1.081 Consignment Sales

Where merchandise is delivered to a dealer on a consignment basis, the tax shall be collected and remitted by the consignee, not the consignor.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.81.

Fla. Admin. Code R. 12A-1.085 Exemption for Qualified Production Companies

(1) For purposes of this rule, a “qualified production company” means any company engaged in this state in the production of motion pictures, made-for-TV motion pictures, television series, commercial advertising, music videos, or sound recordings that has been approved by the Office of Film and Entertainment and has obtained a Certificate of Exemption for Entertainment Industry Qualified Production Company (Form DR-231, incorporated by reference in Rule 12A-1.097, F.A.C.) from the Department.

(2)(a) Any production company conducting motion picture, television or sound recording business in this state desiring to obtain a Certificate of Exemption for Entertainment Industry Qualified Production Company from the Department must:

1. Complete the Entertainment Industry Tax Exemption Application at filminflorida.com; and,

2. Provide documentation sufficient to substantiate the applicant’s claim for qualification as a production company pursuant to Section 288.1258, F.S.

(b)1. The Department will issue a single Certificate of Exemption for Entertainment Industry Qualified Production Company for a period of 90 consecutive days to a qualified production company, as provided in Section 288.1258(3)(b), F.S. The certificate will expire 90 days after the effective date indicated on the certificate.

2. The Department will issue a Certificate of Exemption for Entertainment Industry Qualified Production Company for a period of 12 consecutive months to a qualified production company that has operated a business in Florida at a permanent address for a period of 12 consecutive months, as provided in Section 288.1258(3)(a), F.S.

(c) Qualified production companies that hold a Certificate of Exemption for Entertainment Industry Qualified Production Company issued for a period of 90 consecutive days may request an extension of their certificates. Qualified production companies that hold a certificate of exemption issued for 12 consecutive months may renew their certificates annually for up to five years. To request an extension or a renewal of a certificate, qualified production companies must complete the Entertainment Industry Tax Exemption Application at filminflorida.com. Upon approval by the Office of Film and Entertainment, an extension to the 90-day certificate or a renewal of the 12-month certificate will be issued by the Department.

(3)(a) A qualified production company that holds a valid Certificate of Exemption for Entertainment Industry Qualified Production Company may issue a copy of its certificate to the selling dealer or lessor to:

1. Purchase or lease motion picture or video equipment and sound recording equipment, as provided in Section 212.08(5)(f), F.S., tax exempt; or

2. Purchase or lease master tapes, master records, master films, or master video tapes, as provided in Section 212.08(12), F.S., tax exempt.

(b) The selling dealer or lessor is only required to obtain one copy of the qualified production company’s Certificate of Exemption for Entertainment Industry Qualified Production Company to make tax exempt sales, as indicated on the certificate, to the company during the effective period indicated on the certificate. A selling dealer or lessor who accepts in good faith the required certificate will not be held liable for any tax due on sales made to a qualified production company during the effective period indicated on the certificate. The selling dealer or lessor must maintain the required exemption certificates in its books and records until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(c) In lieu of maintaining a copy of the exemption certificate as provided in paragraph (b), a selling dealer or lessor may document the exempt sale by requesting a transaction authorization number issued by the Department. A transaction authorization number is valid for a single transaction only.

1. A “transaction authorization number” must be obtained by the selling dealer prior to or at the point-of-sale:

a. By using the Department’s online Certificate Verification System at floridarevenue.com/taxes/certificates;

b. By using the Department’s FL Tax-Verify mobile application; or

c. By calling the Department’s automated nationwide toll-free telephone verification system at 1(877)357-3725.

2. When using the Department’s online Certificate Verification System, the dealer may key up to five (5) purchaser’s certificate numbers into the system. When using the Department’s FL Tax-Verify mobile application or the Department’s automated nationwide toll-free verification system, the selling dealer is prompted to key in a single purchaser’s certificate number. Each system will either issue a transaction authorization number or alert the selling dealer that the purchaser does not have a valid certificate. Selling dealers using the automated telephone verification system who do not have a touch-tone phone will be connected to a live operator Monday through Friday (excluding holidays) 8:00 a.m. to 5:00 p.m. (Eastern Time). Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

3. A transaction authorization number is not valid to exempt subsequent purchases or rentals made by the same purchaser. A selling dealer must obtain a new transaction authorization number for each and every transaction.

4. The selling dealer must document the transaction authorization number on the sales invoice, purchase order, or a separate form that is prepared by either the purchaser or the selling dealer.

(4) A qualified production company that holds a valid Certificate of Exemption for Entertainment Industry Qualified Production Company is not required to pay use tax on fabrication labor associated with the production of a qualified motion picture, as provided in Section 212.06(1)(b), F.S.

(5) Upon expiration of a Certificate of Exemption for Entertainment Industry Qualified Production Company, all certificate holders are required to return their expired certificates to the Department. All certificate holders that cease to do business are required to return their certificates to the Department. Certificates are to be returned to:

Florida Department of Revenue

Account Management

P.O. Box 6480

Tallahassee, Florida 32314-6480.

History

• Rulemaking Authority 212.18(2), 213.06(1), 288.1258(4)(c) FS. Law Implemented 212.06(1)(b), 212.08(5)(f), (12), 288.1258(4) FS. History‒New 2-21-77, Amended 5-28-85, Formerly 12A-1.85, Amended 3-12-86, 12-13-88, 10-21-01, 4-26-10, 1-11-16, 12-29-25.

Fla. Admin. Code R. 12A-1.087 Exemption for Power Farm Equipment; Electricity Used for Certain Agricultural Purposes; Suggested Exemption Certificate for Items Used for Agricultural Purposes

(1)(a) The sale, rental, lease, use, consumption, repair, including the sale of replacement parts and accessories, or storage for use of power farm equipment or irrigation equipment is exempt. To qualify for this exemption, the power farm equipment or irrigation equipment must be used exclusively on a farm or in a forest in the agricultural production of crops or products as produced by those agricultural industries included in Sections 570.02(1) and 581.217, F.S., or for fire prevention and suppression work with respect to such crops or products. Power farm equipment that is not purchased, leased, or rented for exclusive use in the agricultural production of agricultural products, or for fire prevention or suppression work with respect to such crops or products, does not qualify for exemption. This exemption is not forfeited by moving qualifying power farm equipment between farms or forests.

(b) The exemption will not be allowed unless the purchaser furnishes the seller a written certificate that the purchased items qualify for the exemption under Section 212.08(3), F.S. The format of a suggested certificate is contained in subsection (10) of this rule.

(2) For purposes of this rule, the following definitions will apply:

(a) Agricultural industries, as defined in Sections 570.02(1) and 581.217, F.S., include aquaculture, horticulture, floriculture, viticulture, forestry, dairy, livestock, poultry, bees, and any and all forms of farm products and farm production.

(b) Agricultural production, as defined in Section 212.02(32), F.S., means the production of plants and animals useful to humans, including the preparation, planting, cultivating, or harvesting of these products or any other practices necessary to accomplish production through the harvest phase, including storage of raw products on a farm, and includes aquaculture, horticulture, floriculture, viticulture, forestry, dairy, livestock, poultry, bees, and any and all forms of farm products and farm production.

(c) Aquaculture products, as defined in Section 597.0015(3), F.S., means aquatic organisms and any product derived from aquatic organisms that are owned and propagated, grown, or produced under controlled conditions. Such products do not include organisms harvested from the wild for depuration, wet storage, or relay for purification.

(d) Cultivating means the nurturing or the fostering of growth of an agricultural crop or product, including the elimination of weeds. Examples of cultivating include, but are not limited to: feeding, fertilizing, plowing, pruning, and spraying agriculture crops or products.

(e) Forest, as defined in Section 212.02(31), F.S., means the land stocked by trees of any size used in the production of forest products, or formerly having such tree cover, and not currently developed for nonforest use.

(f) Harvesting means the act or process of cutting, reaping, digging up, or gathering an agricultural product or crop from a place where grown. Harvesting does not include the processing of crops or products beyond any processing necessary for storage of raw products on the farm.

(g) Processing means the act of changing or converting the nature of a product after it has been harvested.

(3) The following is a nonexhaustive list of tax-exempt power farm equipment, as defined in Section 212.02(30), F.S.

(a) Aerators.

(b) All-terrain vehicles.

(c) Augers.

(d) Automated potting, transplanting, seeding, soil mixing, and flat filling equipment.

(e) Bale shedders.

(f) Backhoes.

(g) Boats and boat motors, purchased together or separately, for use in the agricultural production of aquaculture products on a farm.

(h) Bulldozers.

(i) Chainsaws.

(j) Combines.

(k) Conveyers.

(l) Corn, cotton, grain, and bean heads for use on combines.

(m) Cultivators.

(n) Disks.

(o) Drying equipment.

(p) Electric Fans.

(q) Feed mills (portable).

(r) Feeding stations.

(s) Feeding systems.

(t) Feller bunchers.

(u) Fertilizer spreaders.

(v) Field trailers and wagons.

(w) Forklifts, excluding forklifts used for processing farm products.

(x) Front-end loaders.

(y) Gassing equipment.

(z) Goats, as defined in section 320.08(3)(d), F.S.

(aa) Harrows.

(bb) Harvesters.

(cc) Hay balers, hay cutters, hay rakes, and tedders.

(dd) Traveling “gun-type” and center pivot irrigation systems.

(ee) Livestock feeders.

(ff) Log loaders.

(gg) Milking machines.

(hh) Motorized pumps.

(ii) Mowers.

(jj) Planters.

(kk) Plows.

(ll) Power units, including electric-powered, fuel-powered, or solar-powered motors or engines.

(mm) Refrigeration equipment.

(nn) Scalpers.

(oo) Scrapers, graders, and grade boxes.

(pp) Skid steer loaders.

(qq) Skidders.

(rr) Sod cutters.

(ss) Sod harvesters.

(tt) Sorting equipment.

(uu) Sprayers.

(vv) Spreaders.

(ww) Tractors.

(xx) Tree bedders.

(yy) Washing equipment.

(zz) Wood chippers (field type).

(4)(a) The sales price for a trailer purchased by a farmer for exclusive use in agricultural production, or to transport farm products from the farm to the place where the farmer transfers ownership of the farm products, is exempt from tax. This exemption is allowed regardless of whether the trailer is required to be or is licensed as a motor vehicle under Chapter 320, F.S. This exemption does not apply to leases or rentals of trailers. The exemption for trailers under this paragraph will not be allowed unless the purchaser furnishes the seller a written certificate that the purchased items qualify for the exemption under Section 212.08(3), F.S. The format of a suggested certificate is contained in subsection (10).

(b) The exemption granted for trailers does not apply to non-farmers such as haulers, contractors, loggers, and providers of crop services.

(c) Repairs, replacement parts, and accessories used for trailers licensed under Chapter 320, F.S., are taxable.

(5)(a) Persons engaged in the agricultural production of aquaculture products qualify for the exemption on their purchase or lease of a boat or boat motor to be used exclusively for aquacultural purposes. To qualify for exemption, such person must be registered with the Department of Agriculture and Consumer Services under Section 597.004, F.S., as a person engaged in aquaculture. For purposes of this rule, a farm includes submerged sites leased from the state under the authority of Section 253.68, F.S., by a person engaged in aquaculture activities.

(b) Example: A clam farmer leases a submerged site from the state pursuant to Section 253.68, F.S., and is certified under Section 597.004, F.S., with the Department of Agriculture and Consumer Services. The clam farmer qualifies for the exemption on the purchase or lease of a boat used exclusively in the agricultural production of clams on the leased site. The exemption is not forfeited by moving boats between farms.

(6)(a) Power farm equipment does not include vehicles (including vehicles without power, such as cattle trailers and log trailers) that are required to be licensed as a motor vehicle under Chapter 320, F.S. However, a motor vehicle licensed as a “goat” under Section 320.08(3)(d), F.S., is exempt.

(b) Power farm equipment does not include equipment used for processing agricultural crops or products.

(7)(a) Generators, motors, and similar types of equipment used exclusively as a power source on a farm or in a forest, as provided in paragraph (1)(a), are exempt from tax. For example: a diesel-powered generator used to supply power to an irrigation pump qualifies for the exemption. A generator used to power equipment used in agricultural production also qualifies for the exemption.

(b) Generators purchased, rented, or leased for use on a poultry farm are exempt from sales tax under Section 212.08(5)(a), F.S. The exemption will not be allowed unless the purchaser or lessee issues to the seller a signed certificate stating the generator is purchased or leased for exclusive use on a poultry farm.

(8)(a) The following sales and uses of liquefied petroleum gas, diesel, and kerosene are exempt when:

1. Sold for use in any tractor, vehicle, or other farm equipment that is used exclusively on a farm for farming purposes.

2. Consumed in transporting farm vehicles and farm equipment between farms.

3. Sold for use to heat a structure in which started pullets or broilers are raised.

4. Sold for use to transport bees by water and in the operation of equipment used in the apiary of a beekeeper.

5. Sold for use in any tractor, vehicle, or other farm equipment that is used directly or indirectly for the production, packing, or processing of aquacultural products, whether on or off the farm.

(b) Liquefied petroleum gas, diesel, and kerosene sold for use in any tractor or vehicle driven or operated upon the public highways of the state is subject to tax.

(9)(a) Electricity used for the production, packing, or processing of agricultural products on a farm or in a packinghouse is exempt. The exemption does not apply to electricity used in buildings or structures where agricultural products are sold at retail. “Packinghouse” means any building or structure where fruits, vegetables, or meat from cattle or hogs or fish are packed or otherwise prepared for market or shipment in fresh form for wholesale distribution. The exemption only applies if the electricity is separately metered from the electricity used for nonexempt purposes. If the electricity is centrally metered and is used for both tax-exempt and taxable purposes, the purchase of the electricity is subject to tax. The indirect use of electricity, such as in employee break rooms or restrooms, repair facilities, or administrative offices located on a farm or in a packinghouse, qualified for the exemption. However, when a retail establishment is located on a farm and the electricity is not separately metered from the electricity used elsewhere on the farm, the electricity is subject to tax.

(b) For purposes of this subsection, a farm means the land, buildings, support facilities, machinery, and other appurtenances used in the production of farm or aquaculture products.

(c) The exemption will not be allowed unless the purchaser furnishes its utility a written certificate stating that the electricity is used on a farm for the production, packing, or processing of agricultural products, or in a packinghouse, and qualifies for the exemption under Section 212.08(5)(e)2., F.S. The following is a suggested format of an exemption certificate to be issued to a utility company to make tax-exempt purchases of electricity used for this purpose:

SUGGESTED EXEMPTION CERTIFICATE

ELECTRICITY USED FOR THE PRODUCTION, PACKING,

OR PROCESSING OF AGRICULTURAL PRODUCTS ON A FARM

OR USED IN A PACKINGHOUSE

I certify that the electricity used on or after________ (DATE) from ________________ (UTILITY COMPANY) consumed through the following meter(s) is exempt from sales tax pursuant to Section 212.08(5)(e)2., Florida Statutes (F.S.), and will be:

(Check the appropriate box)

( Used in the production, packing, or processing of agricultural products on a farm.

( Used in a packinghouse for packing or otherwise preparing for market, or for shipment in fresh form, for wholesale distribution fruits and vegetables, or meat from cattle or hogs or fish.

I certify that the electricity will not be used in a building or structure where agricultural products are sold at retail.

Meter Number(s):

---

---

I understand that if the electricity purchased does not qualify for exemption under Section 212.08(5)(e)2., F.S., then I must pay the tax on the purchase directly to the Department of Revenue.

I understand that if I fraudulently issue this certificate to evade the payment of sales tax, I will be liable for payment of the sales tax, plus a mandatory penalty of 200% of the tax, and will be liable for fine and punishment provided by law for conviction of a felony of the third degree, as provided in Section 775.082, 775.083, or 775.084, F.S.

Under penalties of perjury, I declare that I have read the foregoing document and that the facts stated in it are true.

---

Purchaser’s Name and Title (Print or Type)

---

Purchaser’s Address

---

Signature

---

Date

(10) Suggested Exemption Certificate for Items Used for Agricultural Purposes.

(a) Any person who purchases items that qualify for the exemption under Section 212.08(3), F.S., must issue an exemption certificate to the selling dealer to purchase qualifying power farm equipment tax-exempt. Any purchaser who purchases items for agricultural purposes must also issue an exemption certificate to the selling dealer in lieu of paying tax. The exemption certificate must contain the purchaser’s name and address, the reason for which the use of the item qualifies for exemption based on its use, and the signature of the purchaser or an authorized representative of the purchaser.

(b) Seeds, including field, garden, and flower seeds are exempt. The purchaser is not required to issue an exemption certificate to the selling dealer to purchase seeds tax-exempt.

(c) The selling dealer is only required to obtain one certificate for sales made for the purposes indicated on the certificate and is not required to obtain an exemption certificate for subsequent sales made to the same purchaser for the exempt purpose indicated on the exemption certificate. The selling dealer must maintain the required exemption certificates in its books and records until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(d) Dealers who accept in good faith the required certificate from the purchaser or lessee will not be assessed sales tax on sales of power farm equipment or items for agricultural use or for agricultural purposes. In such instances, the Department will look solely to the purchaser or lessee for any additional sales or use tax due.

(e) Selling dealers may contact the Department at 1(850)488-6800, Monday through Friday (excluding holidays) to verify the specific exemption specified by the purchaser or lessee. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(f) The following is a suggested format of an exemption certificate to be issued by any person purchasing or leasing power farm equipment qualifying for exemption under Section 212.08(3), F.S., or items that qualify for exemption as items for agricultural use or items for agricultural purposes. Exemption purposes listed on the suggested format that are not relevant to the purchaser or lessee may be eliminated from the certificate. The Department does not furnish the printed exemption certificate to be executed by purchasers or lessees when purchasing tax-exempt power farm equipment or items for agricultural use or for agricultural purposes. For an aquaculture health product, the purchaser may use the suggested purchaser’s exemption certificate below or provide a copy of the aquaculture producer’s Aquaculture Certification from the Florida Department of Agriculture and Consumer Services to the selling dealer.

SUGGESTED PURCHASER’S EXEMPTION CERTIFICATE

ITEMS FOR AGRICULTURAL USE OR FOR

AGRICULTURAL PURPOSES AND POWER FARM EQUIPMENT

This is to certify that the items identified below, purchased on or after ___________ (date) from ______________________ (Selling Dealer’s Business Name) are purchased, leased, licensed, or rented for the following purpose as checked in the space provided. This is not intended to be an exhaustive list.

( ) Cloth, plastic, or similar material used for shade, mulch, or protection from frost or insects on a farm.

( ) Fertilizers (including peat, topsoil, sand used for rooting purposes, peatmoss, compost, and manure, but not fill dirt), insecticides, fungicides, pesticides, and weed killers used for application on or in the cultivation of crops, groves, home vegetable gardens, and commercial nurseries.

( ) Generators purchased, rented, or leased for exclusive use on a poultry farm. See the exemption category provided for power farm equipment, as defined in Section 212.02(30), F.S., which includes generators, motors, and similar types of equipment.

( ) Insecticides and fungicides, including disinfectants, used in dairy barns or on poultry farms for the purpose of protecting cows or poultry or used directly on animals, as provided in Section 212.08(5)(a), F.S.

( ) Animal health products that are administered to, applied to, or consumed by livestock or poultry to alleviate pain or cure or prevent sickness, disease, or suffering, as provided in Section 212.08(5)(a), F.S.

( ) Aquaculture health products to prevent or treat fungi, bacteria, and parasitic diseases, as provided in Section 212.08(5)(a), F.S. I certify that I am engaged in the production of aquaculture products and certified under Section 597.004, F.S.

( ) Nets, and parts used in the repair of nets, purchased by commercial fisheries.

( ) Nursery stock, seedlings, cuttings, or other propagative material for growing stock.

( ) Portable containers, or moveable receptacles in which portable containers are placed, that are used for harvesting or processing farm products.

( ) Seedlings, cuttings, and plants used to produce food for human consumption.

( ) Stakes used to support plants during agricultural production.

( ) Hog wire and barbed wire fencing, including gates and materials used to construct or repair such fencing, used in agricultural production on lands classified as agricultural lands under Section 193.461, F.S. Materials used to construct or repair hog wire and barbed wire fencing means those materials that are incorporated into and become a component part of the constructed or repaired fencing, such as: welded or barbed wire; hog or barbed wire fence rolls; lumber or steel for posts or rails; nails, screws, hinges; and concrete consisting of premixed dry mortar or other components.

( ) Materials used to construct or repair permanent or temporary fencing used to contain, confine, or process cattle, including gates and energized fencing systems, used in agricultural operations on lands classified as agricultural lands under s. 193.461, F.S. Materials used to construct or repair permanent or temporary cattle fencing means those materials that are incorporated into and become a component part of the constructed or repaired fencing, such as: fencing; lumber or steel for posts or rails; fence wire, panels, and gates; energizers and chargers; electric fence wire braid, tape, and rope; electric fence end strainers, earth stakes, and signs; ground rods; electric fence connector clamps, connection bolts, wire bolts, wire joiners; insulators; nails, screws, staples, hinges; and concrete consisting of premixed dry mortar or other components.

( ) Items that are used by a farmer to contain, produce, or process an agricultural commodity, such as: glue for tin and glass for use by apiarists; containers, labels, and mailing cases for honey; wax moth control with paradichlorobenzene; cellophane wrappers; shipping cases; labels, containers, clay pots and receptacles, sacks or bags, burlap, cans, nails, and other materials used in packaging plants for sale; window cartons; baling wire and twine used for baling hay; and other packaging materials for one time use in preparing an agricultural commodity for sale.

( ) Liquefied petroleum gas or other fuel used to heat a structure in which started pullets or broilers are raised.

( ) Liquefied petroleum gas, diesel, or kerosene used to transport bees by water and in the operation of equipment used in the apiary of a beekeeper.

( ) Liquefied petroleum gas, diesel, or kerosene used for agricultural purposes in any tractor, vehicle, or other farm equipment that is used exclusively on a farm for farming purposes.

( ) Butane gas, propane gas, natural gas, or other form of liquefied petroleum gas used in a tractor, vehicle, or other farm equipment used directly or indirectly for the production, packing, or processing of aquacultural products, whether on or off the farm.

( ) Power farm equipment or irrigation equipment for exclusive use in the agricultural production of crops or products, as produced by those agricultural industries included in Sections 570.02(1) and 581.217, F.S., or

( ) Power farm equipment or irrigation equipment for exclusive use in fire prevention and suppression work for such crops or products, as produced by those agricultural industries included in Sections 570.02(1) and 581.217, F.S., or

( ) Repairs to, or parts and accessories for, qualifying power farm equipment or irrigation equipment for exclusive use in the agricultural production of crops or products, as produced by those agricultural industries included in Sections 570.02(1) and 581.217, F.S., or

( ) Repairs to, or parts and accessories for, qualifying power farm equipment or irrigation equipment for exclusive use in fire prevention and suppression work for such crops or products, as produced by those agricultural industries included in Sections 570.02(1) and 581.217, F.S.

( ) A trailer purchased by a farmer that is used exclusively in an agricultural production or to transport farm products from the farmer’s farm to the place where the farmer transfers ownership of the farm products to another. This exemption does not apply to the lease or rental of a trailer. The exemption is not forfeited by using the trailer to transport the farmer’s equipment.

( ) Other (include description and statutory citation):

---

---

I understand that if I use the item for any purpose other than the one I stated, I must pay tax on the purchase or lease price of the taxable item directly to the Department of Revenue.

I understand that if I fraudulently issue this certificate to evade the payment of sales tax I will be liable for payment of the sales tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

The exemption specified by the purchaser may be verified by calling (850)488-6800, Monday through Friday (excluding holidays).

Under penalties of perjury, I declare that I have read the foregoing document and that the facts stated in it are true.

Purchaser’s Name

---

Purchaser’s Address

---

Name and Title of Purchaser’s Authorized Representative

---

Sales and Use Tax Certificate No. (if applicable)

---

By

---

(Signature of Purchaser or Authorized Representative)

Title

---

(Title – only if purchased by an authorized representative of a business entity)

Date

---

(11) Postharvest Machinery and Equipment.

(a) For purposes of this rule, the following definitions will apply:

1. “Postharvest activities” means services performed on crops after their harvest with the intent of preparing them for market or further processing. Postharvest activities include, but are not limited to, crop cleaning, sun drying, shelling, fumigating, curing, sorting, grading, packing, and cooling. Examples of qualifying postharvest activities are: Banana ripening, bean cleaning, corn drying and shelling, delinting cotton seed (not including cotton ginning), grain cleaning and drying, grain grinding (not including custom grinding for animal feed), nut drying, hulling and shelling, seed cleaning and processing for postharvest propagation, sorting, grading, cleaning and packing fruits and vegetables, sun drying fruits and vegetables, tobacco grading (not including stemming and redrying), and waxing fruits and vegetables.

2.a. “Postharvest machinery and equipment” means tangible personal property or other property with a depreciable life of 3 years or more which is used primarily for postharvest activities. A building and its structural components are not postharvest machinery and equipment unless the building or structural component is so closely related to the postharvest machinery and equipment that it houses or supports that the building or structural component can be expected to be replaced when the postharvest machinery and equipment is replaced.

b. Heating and air conditioning systems are not postharvest machinery and equipment unless the sole justification for their installation is to meet the requirements of the postharvest activities process, even though the system may provide incidental comfort to employees or serve, to an insubstantial degree, nonpostharvest activities.

3. “Primary business activity” means an activity representing more than 50 percent of the activities conducted at the location where the industrial machinery and equipment or postharvest machinery and equipment is located.

4. “Qualifying business” means a business classified under code 115114 of the NAICS (2007) whose primary business activity is one or more postharvest activities. “NAICS” means those classifications contained in the North American Industry Classification System, as published in 2007 by the Office of Management and Budget, Executive Office of the President.

(b) The sale and repair, including charges for labor, parts and materials, of postharvest machinery and equipment to a qualifying business is exempt. The exemption applies to the postharvest machinery and equipment at the business location where the postharvest activity occurs.

(c) Suggested Exemption Certificate for Postharvest Machinery and Equipment.

1. Any person who purchases items that qualify for the postharvest machinery and equipment exemption must issue an exemption certificate to the selling dealer to purchase such machinery or equipment tax-exempt. The exemption certificate must contain the purchaser’s name and address, the reason for the exemption, and the signature of the purchaser or an authorized representative of the purchaser.

2. The selling dealer is only required to obtain one certificate for sales made for the purposes indicated on the certificate and is not required to obtain an exemption certificate for subsequent sales made to the same purchaser for the exempt purpose indicated on the exemption certificate. The selling dealer must maintain the required exemption certificates in its books and records until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

3. Dealers who accept in good faith the required certificate from the purchaser or lessee will not be assessed sales tax on sales of postharvest machinery and equipment. In such instances, the Department will look solely to the purchaser or lessee for any additional sales or use tax due.

4. Selling dealers may contact the Department at (850)488-6800, Monday through Friday (excluding holidays) to verify the specific exemption specified by the purchaser or lessee. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

5. The following is a suggested format of an exemption certificate to be issued by any person purchasing or leasing postharvest machinery or equipment qualifying for exemption under Section 212.08(7)(iii), F.S. The Department does not furnish the printed exemption certificate to be executed by purchasers or lessees when purchasing tax-exempt machinery or equipment.

SUGGESTED PURCHASER’S EXEMPTION CERTIFICATE

FOR POSTHARVEST MACHINERY OR EQUIPMENT

This is to certify that the items identified below, purchased on or after ___________ (date) from ______________________ (Selling Dealer’s Business Name) are purchased, leased, licensed, or rented for the following category of use:

( ) Postharvest machinery or equipment.

( ) Repairs to, or parts and accessories for, postharvest machinery or equipment.

I further certify that I qualify for an exemption from sales tax under Section 212.08(7)(iii), F.S., for all eligible purchases made from this day forward and that:

( ) I am a qualifying business.

( ) The postharvest machinery and equipment being purchased will be used at a fixed location in Florida to perform postharvest activities, which are services performed on crops, after their harvest, with the intent of preparing them for market or further processing. Examples include crop cleaning, sun drying, shelling, fumigating, curing, sorting, grading, packing, and cooling.

( ) Any parts and materials being purchased will be used to repair, and will be incorporated into, the machinery and equipment.

I understand that if I use the item for any purpose other than the one I stated, I must pay tax on the purchase or lease price of the taxable item directly to the Department of Revenue.

I understand that if I fraudulently issue this certificate to evade the payment of sales tax I will be liable for payment of the sales tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Under penalties of perjury, I declare that I have read the foregoing document and that the facts stated in it are true.

Purchaser’s Name __________________________________________________________________________________________

Purchaser’s Address ________________________________________________________________________________________

Name and Title of Purchaser’s Authorized Representative __________________________________________________________

Sales and Use Tax Certificate No. (if applicable) __________________________________________________________________

By ______________________________________________________________________________________________________

(Signature of Purchaser or Authorized Representative)

Title _____________________________________________________________________________________________________

(Title – only if purchased by an authorized representative of a business entity)

Date _______________________

(12) Industrial Machinery and Equipment Used in Aquaculture.

(a) Industrial machinery and equipment, including parts and accessories, purchased for use in aquacultural activities at fixed locations is exempt. For the purposes of this rule, the following definitions apply:

1. “Industrial machinery and equipment” means tangible personal property or other property that has a depreciable life of 3 years or more and that is used as an integral part in the manufacturing, processing, compounding, or production of tangible personal property for sale. A building and its structural components, including heating and air-conditioning equipment are included. The term also includes parts and accessories only to the extent that the exemption is consistent with this subparagraph.

2. “Aquacultural activities” means the business of cultivating aquatic organisms. Such businesses must be certified by the Department of Agriculture and Consumer Services. Aquacultural activities must produce an aquaculture product, defined as “aquatic organisms and any product derived from aquatic organisms that are owned and propagated, grown, or produced under controlled conditions. Such products do not include organisms harvested from the wild for depuration, wet storage, or relay for purification.”

(b) Suggested Exemption Certificate for Industrial Machinery and Equipment Used in Aquaculture.

1. Any person who purchases items that qualify for the exemption must issue an exemption certificate to the selling dealer to purchase such machinery or equipment tax-exempt. The exemption certificate must contain the purchaser’s name and address, the reason for the exemption, and the signature of the purchaser or an authorized representative of the purchaser.

2. The selling dealer is only required to obtain one certificate for sales made for the purposes indicated on the certificate and is not required to obtain an exemption certificate for subsequent sales made to the same purchaser for the exempt purpose indicated on the exemption certificate. The selling dealer must maintain the required exemption certificates in its books and records until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

3. Dealers who accept in good faith the required certificate from the purchaser or lessee will not be assessed sales tax on sales of qualifying machinery and equipment. In such instances, the Department will look solely to the purchaser or lessee for any additional sales or use tax due.

4. Selling dealers may contact the Department at (850)488-6800, Monday through Friday (excluding holidays) to verify the specific exemption specified by the purchaser or lessee. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

5. The following is a suggested format of an exemption certificate to be issued by any person purchasing or leasing industrial machinery or equipment qualifying for exemption under Section 212.08(5)(s), F.S. The Department does not furnish the printed exemption certificate to be executed by purchasers or lessees when purchasing tax-exempt machinery or equipment.

SUGGESTED EXEMPTION CERTIFICATE

EXEMPTION FOR INDUSTRIAL MACHINERY AND EQUIPMENT FOR USE IN AQUACULTURAL ACTIVITIES

I certify that the machinery and equipment purchased on or after________ (DATE) from ________________ (SELLER) is exempt from sales tax pursuant to Section 212.08(5)(t), Florida Statutes (F.S.), and will be used as an integral part in aquacultural activities in manufacturing, processing, compounding, or production of tangible personal property for sale. I understand that I must produce an aquaculture product as defined as “aquatic organisms and any product derived from aquatic organisms that are owned and propagated, grown, or produced under controlled conditions and that such products do not include organisms harvested from the wild for depuration, wet storage, or relay for purification.”

I understand that if the machinery and equipment purchased does not qualify for exemption under Section 212.08(5)(s), F.S., I will be liable for sales and use tax, interest, and penalties due on the purchase price of the items.

I further understand that when any person fraudulently issues, for the purpose of evading tax, a certificate or statement in writing to a vendor or to any agent of the state in which he or she claims exemption from the sales tax, such person, in addition to being liable for payment of the tax plus a mandatory penalty of 200% of the tax, will be liable for fine and punishment provided by law for conviction of a felony of the third degree, as provided in Section 775.082, 775.083, or 775.084, F.S.

Under penalties of perjury, I declare that I have read the foregoing certificate and that the facts stated in it are true.

---

Purchaser’s Name and Title (Print or Type)

---

Purchaser’s Address

---

Signature

---

Date

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(14)(c), (30), (31), (32), 212.05(1), 212.0501, 212.06(1), 212.08(3), (5)(a), (e), (7)(iii) FS. History–New 10-7-68, Amended 1-7-70, 6-16-72, 10-18-78, 7-20-82, 4-12-84, Formerly 12A-1.87, Amended 12-13-88, 3-1-00, 6-19-01, 9-15-08, 1-17-13, 1-11-16, 1-10-17, 1-17-18, 1-8-19, 12-12-19, 10-26-22, 1-1-24, Technical Change 6-8-26.

Fla. Admin. Code R. 12A-1.089 Gift Certificates

The sale of a gift certificate is not taxable. When the owner of a gift certificate redeems it for tangible personal property, or a part thereof, the transaction is taxable as a sale. For example, if the owner of a gift certificate valued at $25 purchases a $15 pair of shoes, tax of 90 cents must be collected by the dealer and remitted to the Department of Revenue.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1), 212.06(1), 212.21(2) FS. History–New 10-7-68, Amended 6-16-72, 7-20-82, Formerly 12A-1.89, Amended 12-13-88.

Fla. Admin. Code R. 12A-1.090 Tax Liens, Garnishment and Jeopardy Assessments

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 95.091, 212.04(4), (6), (7), 212.07(3), 212.10(3), 212.14(1), (6), 212.15(1), (2), (3), (4), 212.151, 213.67(2), 213.756 FS. History–New 10-7-68, Amended 6-16-72, 8-23-77, 6-3-80, 4-29-85, Formerly 12A-1.90, Repealed 3-12-14.

Fla. Admin. Code R. 12A-1.091 Use Tax

(1) The Florida Sales and Use Tax Act imposes a tax on the use, consumption, distribution, and storage for use or consumption in this state of tangible personal property purchased in such manner that the sales tax would not be applicable at the time of purchase.

(2)(a) The use tax applies to the use in this state of tangible personal property purchased outside Florida which would have been subject to the sales tax if purchased from a Florida dealer; provided, however, that it shall be presumed that tangible personal property used in other states, territories of the United States, or the District of Columbia for six (6) months or longer under conditions which would lawfully give rise to the taxing jurisdiction of another state, territory of the United States, or District of Columbia before being imported into this state was not purchased for use in this state. For purposes of the presumption set forth herein, it shall be necessary only that the tangible personal property was used under conditions which would allow such other state, territory of the United States, or District of Columbia to impose a sales or use tax on the sale or use of that property regardless of whether any such tax was actually imposed or paid.

(b) The rental or lease of tangible personal property which is used or stored in this state shall be taxable without regard to its prior use or tax paid on purchase outside this state.

(3) The provisions of the Florida Sales and Use Tax shall not apply to the use or consumption, or distribution or storage of tangible personal property for use or consumption in this state upon which a like tax equal to or greater than the amount due this state has been lawfully imposed and paid in another state, territory of the United States, or the District of Columbia before use tax payable to this state would otherwise have become due. If the amount of tax so lawfully imposed and paid in another state, territory of the United States, or the District of Columbia is not equal to or greater than the amount of tax imposed by Chapter 212, F.S., then the person from whom the use tax is due shall pay to the Department of Revenue an amount sufficient to make the tax paid in the other state, territory of the United States, or the District of Columbia and in this state equal to the amount imposed by that chapter.

(4) The use tax does not apply to any property of which the retail sale is specifically exempt from payment of the Florida sales tax. The two taxes, sales and use, stand as complements to each other, and taken together provide a uniform tax upon either the sale at retail or the use of all tangible personal property irrespective of where it may have been purchased.

(5) Every dealer who solicits business, either by direct representatives, indirect representatives or manufacturers’ agents and by reason thereof receives orders for tangible personal property from consumers for use, consumption, distribution or storage for use or consumption in the state, shall collect the tax from the purchaser, and no action either in law or in equity on a sale or transaction as provided by terms of Chapter 212, F.S., may be had in this state by any such dealer unless it is affirmatively shown that the provisions of the law have been fully complied with.

(6) For self-accrual authorization, see Rule 12A-1.0911, F.A.C.

(7) Under Section 212.06(1), F.S., use tax is imposed upon the cost of tangible personal property imported into this state for use, consumption, distribution, or storage for use or consumption in this state, after it has come to rest and has become a part of the general mass of property in this state, subject to the provisions contained in Rule 12A-1.045, F.A.C.

(8) If tangible personal property is sent out of the state to be repaired and returned, the transaction is taxable. When tangible personal property is shipped into this state, repaired and shipped back to its owner in another state by common carrier or mail, the amount charged for the repair is exempt.

(9) If items are purchased from a sales office in Florida and shipped direct to a Florida customer by a factory in another state, the transaction is taxable, whether the invoicing is handled by the factory or the Florida office.

(10) If a Florida manufacturer sells taxable merchandise to an unregistered out-of-state dealer, but delivers it to the out-of-state dealer’s customer in Florida, he shall collect tax from the out-of-state dealer, who, being unregistered, is unable to furnish a resale certificate.

(11) Law and medical books, accounting manuals, tax service books with currently issued inserts and similar publications are taxable when purchased from out-of-state suppliers for delivery in Florida.

(12)(a) Any person who manufactures factory-built buildings out-of-state for his own use in the performance of a contract for the construction or improvement of real property in Florida shall pay tax at the time such building is imported into Florida. The tax shall only be computed on the cost price of the items used in the manufacture of the building.

(b) For the purpose of this subsection, “factory-built building” means a structure manufactured in a manufacturing facility for installation or erection as a finished building; “factory-built building” includes, but is not limited to, residential, commercial, institutional, storage, and industrial structures.

(13) Any person who has purchased at retail, used, consumed, distributed or stored for use or consumption in this state tangible personal property, admissions, communication services, or leased tangible personal property, or who has leased space or spaces in parking lots or garages for motor vehicles, hangar storage or tie down for aircraft, or docking or storage space or spaces for boats in boat docks or marinas, and cannot prove that the tax levied by Chapter 212, F.S., has been paid to his or her vendor or lessor is directly liable to the state for any tax, interest, or penalty due on any such taxable transactions.

(14)(a) Any person, whether registered or unregistered, who has purchased or leased tangible personal property either in this state or from out-of-state for use, consumption, or distribution, or for storage to be used or consumed in this state without having paid sales tax on such property if subject to tax, is required to remit use tax on the cost price and on the lease of such property. If such person is registered, use tax is to be remitted with the dealer’s sales and use tax return. If such person is unregistered, use tax is to be remitted on Form DR-15MO, Out-of-State Purchase Return (incorporated by reference in Rule 12A-1.097, F.A.C.), on or before the 20th day of the first month after the end of the calendar quarter during which any such property first came to rest and became a part of the general mass of property in this state. When the 20th day falls on Saturday, Sunday, or a legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department of Revenue on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For purposes of this rule, a legal holiday means a holiday that is observed by federal or state agencies as a legal holiday as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code. A “legal holiday” pursuant to s. 7503 of the 1986 Internal Revenue Code, as amended, means a legal holiday in the District of Columbia or a Statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) Any person required to file and remit use tax on Form DR-15MO is not considered, by virtue of that fact alone, as “engaged in or conducting business in this state as a dealer,” within the meaning of Section 212.18(3), F.S., and is not required to file an application for a certificate of registration.

(c) Any person required to file and remit use tax on Form DR-15MO is not entitled to a collection allowance on account of keeping required records and accounting and remitting taxes as required.

(d) Any person required to file and remit use tax on Form DR-15MO is not required to remit local option surtaxes on property purchased through a remote sale.

(15) For use tax on services taxable under Chapter 212, F.S., see Rule 12A-1.0161, F.A.C.

History

• Rulemaking Authority 212.0596(3), 212.18(2), 213.06(1) FS. Law Implemented 212.05(1), 212.0596, 212.06(1)(a), (b), (4), 212.07(8) FS. History–New 10-7-68, Amended 1-7-70, 6-16-72, 11-6-85, Formerly 12A-1.91, Amended 7-7-92, 6-2-93, 11-16-93, 1-4-94, 5-18-94, 6-19-01, 6-14-22, 12-29-25.

Fla. Admin. Code R. 12A-1.0911 Self-Accrual Authorization; Direct Remittance on Behalf of Independent Distributors

(1) Scope of Rule. This rule is intended to provide guidelines regarding the authority to self-accrue sales and use tax, as provided in Section 212.183, F.S. This rule is also intended to provide guidelines regarding the authority granted by Section 212.18(3)(a), F.S., to dealers that use independent sellers or distributors regarding procedures for remitting tax directly to the Department on the retail sales price charged to the ultimate consumer.

(2) Self-accrual authorization.

(a) The Department will authorize dealers to assume the obligation of self-accruing and remitting tax directly to the Department for the following purposes:

1. The apportionment of sales tax by eligible air carriers provided in Section 212.0598, F.S.

2. The partial exemption provided in Section 212.08(9)(a), F.S., for railroad rolling stock, and parts thereof, used to transport persons or property for hire in interstate or foreign commerce and the partial exemption provided in Section 212.08(4)(a)2., F.S., for fuel used in railroad locomotives. See Rule 12A-1.064, F.A.C.

3. The partial exemption provided in Section 212.08(9)(b), F.S., for motor vehicles, and parts thereof, used to transport persons or property for hire in interstate or foreign commerce. See Rule 12A-1.064, F.A.C.

4. The partial exemption provided in Section 212.08(8), F.S., for vessels, and parts thereof, used to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes and the partial exemption provided in Section 212.08(4)(a)2., F.S., for fuel used in such vessels. See Rule 12A-1.0641, F.A.C.

5. The purchase of tangible personal property by dealers who annually purchase in excess of $10 million of taxable tangible personal property in any county for the dealer’s own use.

6. The purchase of tangible personal property by dealers who annually purchase at least $100,000 of taxable tangible personal property, including maintenance and repairs for the dealer’s own use, and the taxable status of the property will be known only when the dealer uses the property. For example, dealers whose normal trade or business characteristics require them to purchase property, maintenance, or repairs that will either become a component part of a product manufactured for sale or will be used and consumed by the dealer will know the taxable status of the property only when the property is used.

7. The purchase of promotional materials, as defined in Section 212.06(11)(b), F.S., by dealers who are unable to determine at the time of purchase whether the promotional materials used to promote subscriptions to publications will be used in Florida or exported from Florida. The seller of subscriptions to publications promoted by the promotional materials must be a registered dealer who is remitting sales tax to the Department on publications sold in Florida. The dealer purchasing and distributing the promotional materials and the seller of the promoted subscriptions to publications sold in Florida are not required to be the same entity.

(b) Any person requesting authority from the Department to self-accrue and remit tax directly to the Department must:

1. File an Application for Self-Accrual Authority/Direct Pay Permit-Sales and Use Tax (Form DR-16A, incorporated by reference in Rule 12A-1.097, F.A.C.) with the Department, in the manner provided on the application; and,

2. Hold a valid certificate of registration for purposes of reporting sales and use tax. See Rule 12A-1.060, F.A.C.

(c) The Department will issue a Sales and Use Tax Direct Pay Permit to qualified applicants. The effective date of the permit is the postmark date of the application or, when the application is delivered by means other than the United States Postal Service, the date the application is received by the Department.

(d) The Department will specify on each permit the circumstances for which the dealer is authorized to self-accrue and remit sales and use tax directly to the Department. The authorized dealer is required to remit the tax directly to the Department.

(e) Any dealer that holds a valid Sales and Use Tax Direct Pay Permit may extend a copy of its permit to the selling dealer in lieu of paying tax for authorized purchases to the selling dealer.

(f) The validity of a Sales and Use Tax Direct Pay Permit may be verified by using the Department’s online Certificate Verification System at floridarevenue.com/taxes/certificates, by using the Department’s FL Tax-Verify mobile application, or by calling the Department’s automated nationwide toll-free verification system at 1(877)357-3725. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(g) Transaction authorization number issued prior to or at the point-of-sale – valid for a single transaction only. In lieu of obtaining a copy of the purchaser’s Sales and Use Tax Direct Pay Permit, the selling dealer may document the sale by requesting a transaction authorization number issued by the Department. A transaction authorization number is valid for single transaction only.

1. A “transaction authorization number” must be obtained by the selling dealer prior to or at the point-of-sale:

a. By using the Department’s online Certificate Verification System at floridarevenue.com/taxes/certificates;

b. By using the Department’s FL Tax-Verify mobile application; or

c. By calling the Department’s automated nationwide toll-free telephone verification system at 1(877)357-3725.

2. When using the Department’s online Certificate Verification System, the dealer may key up to five (5) Sales and Use Tax Direct Pay Permit numbers into the system. When using the Department’s FL Tax-Verify mobile application or the Department’s automated nationwide toll-free verification system, the selling dealer is prompted to key in a single Sales and Use Tax Direct Pay Permit number. Each system will either issue a transaction authorization number or alert the selling dealer that the purchaser does not have a valid permit. Selling dealers using the automated telephone verification system who do not have a touch-tone phone will be connected to a live operator Monday through Friday (excluding holidays) 8:00 a.m. to 5:00 p.m. (Eastern Time). Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

3. A transaction authorization number is not valid to exempt subsequent purchases or rentals made by the same purchaser. A selling dealer must obtain a new transaction authorization number for each and every transaction.

4. The selling dealer must document the transaction authorization number on the sales invoice, purchase order, or a separate form that is prepared by either the purchaser or the selling dealer.

(h)1. Vendor authorization number for regular customers – valid for calendar year issued. In lieu of obtaining a copy of the purchaser’s Sales and Use Tax Direct Pay Permit or a transaction authorization number from the Department for each sale to the permit holder, the selling dealer may obtain a vendor authorization number for that permit holder. This option is available to selling dealers throughout the calendar year without limitation.

2. The “vendor authorization number” is a customer-specific authorization number that will be valid for all sales made to a permit holder during the calendar year.

3. To obtain vendor authorization numbers, the selling dealer may use the Department’s online Certificate Verification System at floridarevenue.com/taxes/certificates or send a written request to the Department. Dealers obtaining authorization numbers by submitting a written request to the Department may obtain the electronic format for sending the customer data from the Department’s website at floridarevenue.com or call the Department at (850)488-3516 to obtain the electronic format.

a. The written request should be forwarded to the Florida Department of Revenue, Account Management MS – 1-5730, Florida Department of Revenue, 5050 W Tennessee Street, Tallahassee, Florida 32399-0160, along with an electronic file containing a list of the dealer’s regular customers for which the dealer has a Sales and Use Tax Direct Pay Permit number on file. In response to the request, the Department will issue to the selling dealer, using the same electronic medium, a list containing a unique vendor authorization number for each permit holder.

b. The Department’s online Certificate Verification System allows the user to verify up to five Sales and Use Tax Direct Pay Permit numbers and to obtain a transaction authorization number for single sales made to each permit holder at once. The system also allows the user to upload a batch file of up to 50,000 accounts for verification and, 24 hours later, retrieve the file containing the vendor authorization numbers for all sales made to the permit holders during the calendar year.

4. The selling dealer may make tax-exempt sales to the permit holder during the period in which the vendor authorization number for that permit holder is valid. Vendor authorization numbers are valid for the remainder of the calendar year during which they are issued. However, vendor authorization numbers issued by the Department in November or December are valid for the remainder of that calendar year and the next calendar year.

(i) The expiration date of Sales and Use Tax Direct Pay Permit shall be the end of the month preceding five years from the effective date, if the effective date is on or before the 15th of the month. The expiration date shall be the end of the month that is five years from the effective date, if the effective date is after the 15th of the month. The Department will provide a renewal notice to a permit holder 60 days prior to the expiration date of a permit. Persons that fail to receive a renewal notice or that need more information regarding the notice may contact the Department at:

Account Management MS – 1-5730

Florida Department of Revenue

5050 W. Tennessee St.

Tallahassee, Florida 32399-0160.

(j) Holders of Sales and Use Tax Direct Pay Permits must notify the Department within 30 days of any change of circumstances that may affect the dealer’s qualification to hold the permit.

(k) Selling dealers are required to collect tax from customers whose Sales and Use Tax Direct Pay Permit has expired.

(3) Dealers using independent sellers or distributors.

(a) The Department will authorize a dealer that uses independent sellers or independent distributors to sell its merchandise to remit tax on the retail sales price charged to the ultimate consumer in lieu of having the independent seller or independent distributor register as a dealer and remit the tax. To request authorization from the Department, the dealer is required to:

1. Provide documentation of the dealer’s financial resources, including certified financial statements;

2. Provide a detailed description of the dealer’s information processing system to be used for the tax liabilities assumed and the allocation of discretionary sales surtaxes;

3. Provide a description of the property being sold by the independent sellers or independent distributors; and,

4. Agree to report and pay directly to the Department all sales tax liabilities that are transferred from the independent sellers or independent distributors to the dealer and to comply with the provisions of Chapter 212, F.S., and this rule.

(b) A dealer who is authorized by the Department to remit tax for its independent sellers or independent distributors must report and remit the amount of sales tax and surtax due at the rate imposed by the county where delivery of the property to the independent seller or independent distributor occurs.

(c) A dealer authorized to remit tax on behalf of its independent sellers or independent distributors will not be authorized to make tax-exempt purchases under the permit. Such a dealer may use its Annual Resale Certificate (Form DR-13) to make tax-exempt purchases for the purposes of resale, as provided in Rule 12A-1.039, F.A.C.

(d) When a dealer’s authorization to remit tax on behalf of its independent sellers or independent distributors is canceled by the Department or voluntarily terminated by the dealer, that dealer is required to immediately provide written notification to each independent seller or distributor that it is no longer authorized to remit tax on behalf of its independent sellers or independent distributors.

History

• Rulemaking Authority 212.18(2), (3), 212.183, 213.06(1) FS. Law Implemented 212.054(3)(a)1., 212.0598, 212.06(11), 212.08(4)(a)2., (8), (9), 212.18(3), 212.183 FS. History–New 4-7-92, Amended 5-19-93, 9-14-93, 11-16-93, 9-30-99, 10-2-01, 6-12-03, 9-1-09, 5-9-13, 1-11-16, 12-29-25.

Fla. Admin. Code R. 12A-1.094 Public Works Contracts

(1) This rule shall govern the taxability of transactions in which contractors manufacture or purchase supplies and materials for use in public works contracts, as that term is referred to in Section 212.08(6), F.S. This rule shall not apply to non-public works contracts for the repair, alteration, improvement, or construction of real property, as those contracts are governed under the provisions of Rule 12A-1.051, F.A.C. In applying this rule, the following definitions are used.

(a)1. “Contractor” is one that supplies and installs tangible personal property that is incorporated into or becomes a part of a public facility pursuant to a public works contract with a governmental entity exercising its authority in regard to the public property or facility. Contractors include, but are not limited to, persons engaged in building, electrical, plumbing, heating, painting, decorating, ventilating, paperhanging, sheet metal, roofing, bridge, road, waterworks, landscape, pier, or billboard work. This definition includes subcontractors.

2. “Contractor” does not include a person that furnishes tangible personal property that is not affixed or appended in such a manner that it is incorporated into or becomes a part of the public property or public facility to which a public works contract relates. A person that provides and installs tangible personal property that is freestanding and can be relocated with no tools, equipment, or need for adaptation for use elsewhere is not a contractor within the scope of this rule.

3. “Contractor” does not include a person that provides tangible personal property that will be incorporated into or become part of a public facility if such property will be installed by another party.

4. Examples.

a. A vendor sells a desk, sofas, chairs, tables, lamps, and art prints for the reception area in a new public building. The sales agreement requires the vendor to place the furniture according to a floor plan, set up the lamps, and hang the art prints. The vendor is not a contractor within the scope of this rule, because the vendor is not installing the property being sold in such a way that it is attached or affixed to the facility.

b. A security system vendor furnishes and installs low voltage wiring behind the walls, motion detectors, smoke alarms, other sensors, control pads, alarm sirens, and other components of a security system for a new county courthouse. The components are direct wired, fit into recesses cut into the walls or other structural elements of the building, and are held in place by screws. The vendor is a contractor within the scope of this rule. The security system is installed and affixed in such a manner that it has been incorporated into the courthouse.

c. A vendor enters an agreement to provide and install the shelving system for a new public library. The shelves are built to bear the weight of books. The shelf configuration in each unit maximizes the number of books the shelves can hold. The number and size of the units ordered is based on the design for the library space. The units will run floor to ceiling and will be anchored in place by bolts or screws. The vendor is a contractor within the scope of this rule. The shelving system will be affixed in such a manner that it becomes a part of the public library.

d. A vendor agrees to provide and install the computer terminals, monitors, keyboards, servers, and related equipment for a county tax collector’s office in central Florida. The job includes connecting the equipment to the structural cabling system that has been installed by an electrical contractor. The cables running to the computer terminals are held in place by screws that fit into the back of the terminal units. The vendor is not a contractor within the scope of this rule. The computer equipment has not been affixed in such a way as to become a part of the facility. The equipment has not been attached to any structural element of the building.

e. A manufacturer agrees to provide the prestressed concrete forms for a public parking garage. A construction company is awarded the bid to install those forms and build the garage. The manufacturer is not a contractor within the scope of this rule, because the manufacturer will not install any tangible personal property that becomes a part of the garage. The construction company is a contractor within the scope of this rule.

(b) “Governmental entity” includes any agency or branch of the United States government, a state, or any county, municipality, or political subdivision of a state. The term includes authorities created by statute to operate public facilities using public funds, such as public port authorities or public-use airport authorities.

(c) “Public works” are defined as projects for public use or enjoyment, financed and owned by the government, in which private persons undertake the obligation to do a specific piece of work that involves installing tangible personal property in such a manner that it becomes a part of a public facility. For purposes of this rule, a public facility includes any land, improvement to land, building, structure, or other fixed site and related infrastructure thereon owned or operated by a governmental entity where governmental or public activities are conducted. The term “public works” is not restricted to the repair, alteration, improvement, or construction of real property and fixed works, although such projects are included within the term.

(d) “Real property” within the meaning of this rule includes all fixtures and improvements to real property. The status of a project as an improvement or fixture to real property will be determined by reference to the definitions contained in subsection 12A-1.051(2), F.A.C.

(2) The purchase or manufacture of supplies or materials by a public works contractor, when such supplies or materials are purchased for the purpose of going into or becoming part of public works, whether the purchase or manufacture occurs inside or outside Florida, is taxable to the public works contractor if the public works contractor also installs such supplies or materials, since the public works contractor is the ultimate consumer of such supplies or materials. Public works contractors that purchase or manufacture such supplies and materials in Florida are liable for sales tax or use tax on such purchases and manufacturing costs. A public works contractor that purchases supplies or materials that may be sold as tangible personal property or may be incorporated into a public works project may purchase such supplies or materials without tax by issuing a copy of the contractor’s Annual Resale Certificate and accrue and remit tax upon withdrawing such supplies or materials from inventory to go into or become a part of public works. Public works contractors that purchase or manufacture such materials outside the State of Florida are liable for use tax, subject to credit for any sales or use tax lawfully imposed and paid in the state of purchase or manufacture.

(3) The purchase or manufacture of tangible personal property for resale to a governmental entity is exempt from tax, provided this exemption shall not include sales of tangible personal property made to, or the manufacture of tangible personal property by, public works contractors when such tangible personal property goes into or becomes a part of public works.

(4)(a) The exemption in Section 212.08(6), F.S., is a general exemption for sales made directly to the government. A determination whether a particular transaction is properly characterized as an exempt sale to a governmental entity or a taxable sale to or use by a contractor shall be based on the substance of the transaction, rather than the form in which the transaction is cast. The Executive Director or the Executive Director’s designee in the responsible program will determine whether the substance of a particular transaction is a taxable sale to or use by a contractor or an exempt direct sale to a governmental entity based on all of the facts and circumstances surrounding the transaction as a whole.

(b) The following criteria that govern the status of the tangible personal property prior to its affixation to real property will be considered in determining whether a governmental entity rather than a contractor is the purchaser of materials:

1. Direct Purchase Order. The governmental entity must issue its purchase order directly to the vendor supplying the materials the contractor will use and provide the vendor with a copy of the governmental entity’s Florida Consumer’s Certification of Exemption.

2. Direct Invoice. The vendor’s invoice must be issued to the governmental entity, rather than to the contractor.

3. Direct Payment. The governmental entity must make payment directly to the vendor from public funds.

4. Passage of Title. The governmental entity must take title to the tangible personal property from the vendor at the time of purchase or delivery by the vendor.

5. Assumption of the Risk of Loss. Assumption of the risk of damage or loss by the governmental entity at the time of purchase is a paramount consideration. A governmental entity will be deemed to have assumed the risk of loss if the governmental entity bears the economic burden of obtaining insurance covering damage or loss or directly enjoys the economic benefit of the proceeds of such insurance.

(c)1. To be entitled to purchase materials tax exempt for a public works project, a governmental entity is required to issue a Certificate of Entitlement to each vendor and to the governmental entity’s contractor to affirm that the tangible personal property purchased from that vendor will go into or become a part of a public work. This requirement does not apply to any agency or branch of the United States government.

2. The governmental entity’s purchase order for tangible personal property to be incorporated into the public works project must be attached to the Certificate of Entitlement. The governmental entity must issue a separate Certificate of Entitlement for each purchase order. Copies of the Certificate may be issued.

3. The governmental entity will also affirm that if the Department determines that tangible personal property sold by a vendor tax-exempt pursuant to a Certificate of Entitlement does not qualify for the exemption under Section 212.08(6), F.S. and this rule, the governmental entity will be liable for any tax, penalty, and interest determined to be due.

4. The following is the format of the Certificate of Entitlement to be issued by the governmental entity:

CERTIFICATE OF ENTITLEMENT

The undersigned authorized representative of_________________ (hereinafter “Governmental Entity”), Florida Consumer’s Certificate of Exemption Number____________________, affirms that the tangible personal property purchased pursuant to Purchase Order Number______ from ___________ (Vendor) on or after _______ (date) will be incorporated into or become a part of a public facility as part of a public works contract pursuant to contract # ___________ with ______________ (Name of Contractor) for the construction of _____________________________.

Governmental Entity affirms that the purchase of the tangible personal property contained in the attached Purchase Order meets the following exemption requirements contained in Section 212.08(6), F.S., and Rule 12A-1.094, F.A.C.:

You must initial each of the following requirements.

____ 1. The attached Purchase Order is issued directly to the vendor supplying the tangible personal property the Contractor will use in the identified public works.

____ 2. The vendor’s invoice will be issued directly to Governmental Entity.

____ 3. Payment of the vendor’s invoice will be made directly by Governmental Entity to the vendor from public funds.

____ 4. Governmental Entity will take title to the tangible personal property from the vendor at the time of purchase or of delivery by the vendor.

____ 5. Governmental Entity assumes the risk of damage or loss at the time of purchase or delivery by the vendor.

Governmental Entity affirms that if the tangible personal property identified in the attached Purchase Order does not qualify for the exemption provided in Section 212.08(6), F.S. and Rule 12A-1.094, F.A.C., Governmental Entity will be subject to the tax, interest, and penalties due on the tangible personal property purchased. If the Florida Department of Revenue determines that the tangible personal property purchased tax-exempt by issuing this Certificate does not qualify for the exemption, Governmental Entity will be liable for any tax, penalty, and interest determined to be due.

I understand that if I fraudulently issue this certificate to evade the payment of sales tax I will be liable for payment of the sales tax plus a penalty of 200% of the tax and may be subject to conviction of a third degree felony.

Under the penalties of perjury, I declare that I have read the foregoing Certificate of Entitlement and the facts stated in it are true.

---

Signature of Authorized Representative Title

---

Purchaser’s Name (Print or Type) Date

Federal Employer Identification Number:

Telephone Number:________________________

You must attach a copy of the Purchase Order to this Certificate of Entitlement.

Do not send to the Florida Department of Revenue. This Certificate of Entitlement must be retained in the vendor’s and the contractor’s books and records.

(d) Sales to contractors, including subcontractors, are subject to tax.

(e) The governmental entity may not transfer liability for such tax, penalty, and interest to another party by contract or agreement.

(f) In the case of contracts with any agency or branch of the United States government in which the federal governmental agency or branch is not required to produce a Certificate of Entitlement, the purchase must comply with the five criteria provided in paragraph (b), for the purchase of tangible personal property to be exempt from sales and use tax. If the criteria in paragraph (b) are not met, the contractor is the ultimate consumer of such tangible personal property and is liable for sales or use tax on such purchases and manufacturing costs.

(5) Contractors, including subcontractors, that manufacture, fabricate, or furnish tangible personal property that the contractor incorporates into public works are liable for tax in the manner provided in subsection (10) of Rule 12A-1.051, F.A.C. The contractor and subcontractors, not the governmental entity, are deemed to be the ultimate consumers of the articles of tangible personal property they manufacture, fabricate, or furnish to perform their contracts and may not accept a Certificate of Entitlement for these articles.

(6) Contractors that supply raw materials such as rock, shell, fill dirt, and similar materials for incorporation into public works shall be liable for tax in the manner provided in subsection (10) of Rule 12A-1.051, F.A.C.

(7) Contractors that manufacture and incorporate asphalt into public works projects are liable for tax on their costs, as provided in subsection (12) of Rule 12A-1.051, F.A.C., subject to a partial exemption, as provided in Section 212.06(1)(c), F.S.

(8) Contractors that install people mover systems in public works projects are exempt from sales and use tax on their purchases of such systems or components of such systems and on any other costs incurred in the manufacture of such systems that would be taxable under the provisions of subsection (10) of Rule 12A-1.051, F.A.C.

(a) A “people mover system” includes wheeled passenger vehicles and related control and power distribution systems that form a transportation system owned by a public entity and used by the general public. The vehicles may be operator-controlled, driverless, self-propelled, or externally powered. They may run on roads, rails, guidebeams, or other permanent structures that are an integral part of the system. “Related control and power distribution systems” includes electrical or electronic control or signaling equipment that distributes power or signals from the control center or centers or from the power source throughout the system. Embedded wiring, conduits, or cabling and the roads, rails, guidebeams, or other permanent structures on which the vehicles run are not included within the term “people mover system.” A contractor that installs such embedded wiring, conduits, or cabling or that builds such a road, rail, guidebeam, or permanent structure is taxable on the purchase or use of tangible personal property incorporated into the project.

(b) A people mover system contractor should claim the exemption by providing a vendor with a certificate of entitlement to the exemption. The vendor must maintain copies of certificates until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091, F.S. Possession by a vendor of such a certificate from the purchaser relieves the vendor from the responsibility of collecting tax on the sale, and the Department shall look solely to the purchaser for recovery of tax if it determines that the purchaser was not entitled to the exemption. A suggested form of certificate follows:

SUGGESTED PURCHASER’S EXEMPTION CERTIFICATE

PEOPLE MOVER SYSTEMS AND PARTS

_________________ (Purchaser’s Name) certifies that the tangible personal property purchased on or after _______ (date) will be used as part of a people mover system that will become a part of a publicly owned facility pursuant to a contract with the United States, a state, a county, a municipality, a political subdivision of a state, or the public operator of a public-use airport as defined in Section 332.004, F.S. Such contract requires Purchaser to purchase the tangible personal property for use in manufacturing, installing, manufacturing and installing, repairing, or maintaining, all or part of a people mover system operated by the governmental entity as a public facility.

_______________ (Purchaser’s Name) further certifies: a) that all of the tangible personal property purchased pursuant to this certificate is or will be part of a wheeled passenger vehicle or of related control or power distribution systems that are part of a transportation system for use by the general public; and b) none of the tangible personal property purchased pursuant to this certificate will be used as embedded wiring, conduits, or cabling to transmit signals among the vehicles, control equipment, power distribution equipment, and signaling equipment that make up the people mover system.

The undersigned understands that if such tangible personal property does not qualify for this exemption, the undersigned will be subject to sales and use tax, interest, and penalties. The undersigned further understands that when any person fraudulently, for the purpose of evading tax, issues to a vendor or to any agent of the state a certificate or statement in writing in which he or she claims exemption from the sales tax, such person, in addition to being liable for payment of the tax plus a mandatory penalty of 200% of the tax, shall be liable for fine and punishment provided by law for conviction of a felony of the third degree, as provided in Section 775.082, 775.083 or 775.084, F.S.

---

Purchaser’s Name (Print or Type)

---

Signature and Title Date Florida Sales Tax Number

---

Federal Employer Identification Telephone Number

Number or Social Security Number

Retain in vendor’s records. Do not send to the Department of Revenue.

(c) Contractors that maintain an inventory of parts that may be incorporated into people mover system components that are sold as tangible personal property, may be used in performing real property contracts, and may be incorporated into exempt people mover systems pursuant to a public works contract may purchase such inventory parts by issuing a copy of the contractor’s Annual Resale Certificate in lieu of providing a certification of specific eligibility under the people mover system exemption. If appropriate, tax should be remitted upon subsequent taxable sale or use of such parts.

History

• Rulemaking Authority 212.08(6), 212.18(2), 212.183, 213.06(1) FS. Law Implemented 92.525(1), 212.02(4), (14), (15), (16), (19), (20), (21), 212.06(1), (2), (14) 212.07(1), 212.08(6), (7)(zz), 212.085, 212.18(2), 212.183, 213.37 FS. History–New 6-3-80, Amended 11-15-82, Formerly 12A-1.94, Amended 1-2-89, 8-10-92, 6-28-04, 1-12-11.

Fla. Admin. Code R. 12A-1.096 Industrial Machinery and Equipment for Use in a New or Expanding Business

(1) Definitions – The following terms and phrases when used in this rule have the meaning ascribed to them except where the context clearly indicates a different meaning:

(a) “Fixed location” means a location or plant site that is used, or intended to be used, for an extended or indefinite period of time for spaceport activities or for manufacturing, processing, compounding, or producing items of tangible personal property for sale. The term also includes a location where a portable plant is set up for a period of not less than six months in a stationary manner so as to perform the same industrial manufacturing, processing, compounding or production process that could be performed at a permanent location or plant site. The geographical limits of the fixed location for purposes of this rule are limited to the immediate permanent location or plant site. Facilities or plant units that are within the same building, or that are on the same parcel of land if not contained in a building, are considered to be one fixed location.

(b) “Industrial machinery and equipment” means tangible personal property or other property with a depreciable life of 3 years or more that is used as an integral part in the manufacturing, processing, compounding, or production of tangible personal property for sale or is exclusively used in spaceport activities. Buildings and their structural components are not industrial machinery and equipment unless the building or structural component is so closely related to the industrial machinery and equipment that it houses or supports that the building or structural component can be expected to be replaced when the machinery and equipment itself is replaced. Heating and air conditioning systems are not considered industrial machinery and equipment, unless the sole justification for their installation is to meet the requirements of the production process, even though the system may provide incidental comfort to employees, or serves, to an insubstantial degree, nonproduction activities. For example, a dehumidifier installed for the sole purpose of conditioning air in a factory, where the manufacturing of electronic components requires a controlled-humidity environment, will be considered industrial machinery and equipment. (See subsection (8) of this rule.)

(c) “Integral to” means that the machinery and equipment provides a significant function within the production process, such that the production process could not be complete without that machinery and equipment.

(d) “Manufacture, process, compound, or produce for sale” means the various industrial operations of a business where raw materials will be put through a series of steps to make an item of tangible personal property that will be sold. The industrial operations must bring about a change in the composition or physical nature of the raw materials. Where materials are merely repackaged or redistributed, those operations are not manufacturing, processing, compounding, or producing for sale. The item of tangible personal property may be sold to another manufacturer for further processing or for inclusion as a part in another item of tangible personal property that will be sold, or the item may be sold as a finished product to a wholesaler or an end consumer. The business performing the manufacturing, processing, compounding, or production process may or may not own the raw materials. However, the phrase “manufacture, process, compound, or produce for sale” does not include fabrication, alteration, modification, cleaning, or repair services performed on items of tangible personal property belonging to others where such items of tangible personal property are not for sale.

(e) “Physically comparable” means the similarity or equivalency of the characteristics of the items of tangible personal property being manufactured, processed, compounded or produced. Physical comparability applies to the units used to measure the increase in productive output of an expanding business.

1. Example: All models of microwave ovens made by a manufacturer, regardless of specific features, would be physically comparable. However, if the manufacturer also made coffee makers, the coffee makers would not be physically comparable to microwave ovens, even though both items are generally considered small kitchen appliances.

2. Example: A beverage manufacturer produces a variety of soft drinks in various sized cans and bottles. The production of the various sized cans and bottles of soft drinks is not physically comparable. However, production is physically comparable when converted to a common physical unit, such as gallons of product.

(f) “Production process” or “production line” means those industrial activities beginning when raw materials are delivered to the new or expanding business’ fixed location and generally ending when the items of tangible personal property have been packaged for sale, or are in saleable form if packaging is not done. However, the production process may include quality control activities after the items have been packaged (or are in salable form if packaging is normally not done), such as good manufacturing practices as mandated by the Federal Food and Drug Administration to detect adulterated food or food that has been prepared, packaged, or held under unsanitary conditions.

1. The production process may encompass more than one fixed location if the business transfers work-in-process from one fixed location to a second fixed location for further manufacturing, processing, compounding, or production. For example, a company purchases machinery and equipment to produce raw orange juice at one fixed location, and this raw orange juice is transferred as work-in-process to a second fixed location where the company will use the raw orange juice to make five different products.

2. A production process does not include natural processes occurring before raw material is delivered to the receiving operation or after the packaging operation. For example, the natural transformation of grass or feed into raw milk by dairy cows is not part of the production process. In this case, the production process begins with the milking parlor. The planting, growing, or harvesting of crops, and the raising of livestock or poultry are not part of the production process. The natural aging or fermentation of alcoholic beverages or other food products, after they have been packaged, is also not part of the production process. The production process ends when the alcoholic beverage or other food product has been packaged for sale.

3. The production process does not include product design activities. For example, the computer aided design of a product where the final design program or computer file for that product will be sent to or downloaded to industrial machinery and equipment for the physical creation of the product is not a part of the production process. Similarly, the production process for printed materials does not include the initial conception or creation of the written matter. For example, the writing of a story by a reporter for subsequent printing in a newspaper is not a part of the production process. (See subsection (8) of this rule regarding machinery and equipment and the production process.)

(g) “Productive output” ordinarily means the number of units actually produced by a single plant or operation in a single continuous 12-month period. The increase in productive output shall be measured by the output for 12 continuous months, as selected by the expanding business, following the completion of the installation of machinery and equipment for the expansion project as compared to the productive output of 12 continuous months immediately preceding the beginning of the installation of machinery and equipment for the expansion project. However, the 12 continuous months post installation measurement period, as selected by the expanding business, must begin within 24 months following the completion of installation of qualifying machinery and equipment. Productive output may not be measured by sales dollars or by production labor hours for the purposes of this exemption.

(h) “Purchase,” “purchases,” or “purchasing” means the transfer of title or possession, or both, of industrial machinery and equipment for a consideration. The terms also include the acquisition of industrial machinery and equipment under a lease or rental agreement.

(i) “Purchase agreement” means a document, in the form of a purchase order issued by the purchaser, a contract for purchase with a seller or vendor, a memorandum of understanding, or a lease or rental agreement with a lessor.

(j) “Spaceport activities” means those activities as defined in Section 212.02, F.S.

(2) New Business.

(a) The purchase of industrial machinery and equipment, parts and accessories, and the installation labor thereof, is exempt from tax when purchased by a new business which uses such machinery and equipment at a fixed location in this state for exclusive use in spaceport activities, or to manufacture, process, compound, or produce items of tangible personal property for sale.

(b) Machinery and equipment must be purchased, or purchase agreement made, before the new business begins spaceport activities or starts production, and delivery of the purchased items must be made within 12 months from the beginning of spaceport activities or the start of production.

(c) The date of purchase of the machinery and equipment is established by the date of the purchase agreement. If no purchase agreement was made, or in the absence of proof that a purchase agreement was made prior to the determined beginning of spaceport activities or the start of production, the machinery and equipment vendor’s sales invoice will be the controlling document for determining whether the machinery and equipment qualifies for the exemption. No exemption will be allowed even though delivery of machinery and equipment is made within 12 months from the beginning of spaceport activities or the start of production if the machinery and equipment was ordered after the beginning of spaceport activities or the start of production. If a purchase agreement that was made prior to the start of production is amended or changed after the start of production, any amendments or changes that increase the quantity of an item of machinery or equipment will not qualify for the exemption. Any amendments or change orders to that purchase agreement that provide for the substitution of a like kind item of machinery or equipment will qualify for the exemption.

(d)1. The start of production is the date that a product is manufactured, processed, compounded, or produced where such product will be inventoried for sale or will be immediately sold. However, if this date does not reflect the actual start of production, the date of the start of production will be determined by the Executive Director or the Executive Director’s designee on a-case-by case basis. In such cases, the business is required to maintain sufficient records to enable the Executive Director or the Executive Director’s designee to make a proper determination as to the initial production activities of the new facility. (See subsection (6) of this rule for record keeping requirements.)

a. Initial test or trial runs necessary to calibrate or evaluate the operation of machinery and equipment, where the products made are scrapped or sold for salvage value, are not considered to be the start of production. The operation of machinery and equipment at less than full capacity, where the products made are inventoried or immediately sold, is considered to be the start of production.

b. Production is considered to have started even though the production line may not be complete, if any part(s) of the production process is subcontracted to others and a finished product can be inventoried or immediately sold.

2. The beginning of spaceport activities is the date that industrial machinery and equipment is first exclusively used for that purpose. However, if this does not reflect the actual beginning of spaceport activities, the date will be determined by the Executive Director or the Executive Director’s designee on a case-by-case basis. In such cases, the business is required to maintain sufficient records to enable the Executive Director or the Executive Director’s designee to make a proper determination as to the beginning of spaceport activities of the new facility. (See subsection (6) of this rule for record keeping requirements.)

(e) The Executive Director or the Executive Director’s designee will determine if a business qualifies for exemption as a new business, based on the facts in each particular case.

1. A new business means a newly-formed company that opens a facility or plant, at a fixed location in this state, to manufacture, process, compound, or produce items of tangible personal property for sale, or to exclusively use industrial machinery and equipment in spaceport activities.

2. A new business means an addition to, or the enlargement of, an existing facility or plant, or the installation of additional machinery and equipment, for the purpose of manufacturing, processing, compounding, or producing items of tangible personal property for sale that represent a distinct and separate economic activity from other items that have been or are being produced at that same fixed location, or to exclusively use industrial machinery and equipment in distinct and separate spaceport activities. For example, a company that currently manufactures washing machines would be considered a new business for the purpose of installing a dedicated assembly line for the manufacturing of refrigerators. A new business does not mean an addition to, or the enlargement of, an existing facility or plant, or the installation of additional machinery and equipment at an existing facility or plant, for the purpose of manufacturing, processing, compounding, or producing component parts that were previously purchased from, or fabricated by, outside sources for inclusion in that business’ finished items of tangible personal property for sale. (See subsection (4) of this rule regarding manufacturing business classification factors.)

3. A new business means opening a new facility or plant, at a fixed location in this state, to manufacture, process, compound, or produce an item of tangible personal property for sale, or to exclusively use industrial machinery and equipment in spaceport activities, provided no other facility or plant in this state that manufactured, processed, compounded, or produced the same or a similar item of tangible personal property, or performed the same or a similar spaceport activity, at a fixed location in this state, was closed to open the new facility or plant, or will be closed within 12 months. However, this limitation concerning the closure of a facility or plant is not applicable to a mining activity when a mine is closed due to the exhaustion or depletion of the mined resource such that mining is no longer economically feasible at that location.

4. A new business does not mean the change of ownership of an existing facility or plant, at a fixed location in this state, that manufactures, processes, compounds, or produces items of tangible personal property for sale, or exclusively uses industrial machinery and equipment in spaceport activities, by a purchase arrangement, merger, or some other similar means, unless such facility or plant ceased doing productive operations for a period of not less than 12 months.

(3) Expanding Business.

(a) The purchase of industrial machinery and equipment, parts and accessories, and the installation thereof, is exempt from tax when purchased by an expanding business that uses such machinery and equipment at a fixed location in this state to increase the productive output of tangible personal property that is manufactured, processed, compounded, or produced for sale by not less than 5 percent, or for exclusive use in spaceport activities.

(b) The Executive Director or the Executive Director’s designee will determine whether a business qualifies for exemption as an expanding business, based upon the facts of each case using the following guidelines:

1.a. An expanding business means an addition to, or the modernization or enlargement of, an existing facility or the installation of additional machinery and equipment to manufacture, process, compound, or produce an item of tangible personal property that is already being produced at that fixed location in this state or is similar to an item of tangible personal property that is already being produced at that fixed location.

b. An expanding business means an addition to, or the modernization or enlargement of, an existing facility or the installation of additional machinery and equipment to begin manufacturing, processing, compounding, or producing a component item of tangible personal property that will be incorporated into a finished item of tangible personal property for sale that is already being produced at that fixed location. When the component item of tangible personal property is manufactured, processed, compounded, or produced, the completion of the first component item meets the required productive output increase. When the business manufactures, processes, compounds, or produces that component for sale to others and incorporates that component in other items of tangible personal property for sale, the business would be classified as a new business.

c. For example, a washing machine manufacturer that previously purchased water pumps from an outside supplier as component parts for the washing machines would be considered an expanding business, rather than a new business, when it purchases machinery and equipment to begin manufacturing its own component water pumps and does not offer the water pumps for sale to others. When the first component water pump is produced, the manufacturer, as an expanding business, meets the required productive output increase.

d. An expanding business means an addition to, or the modernization or enlargement of, an existing facility or the installation of additional machinery and equipment to perform a spaceport activity that is already being performed, or is similar to an activity that is already being performed, at that fixed location.

2. An expanding business means closing an existing plant or an operation in a plant in this state and moving it to a new location in this state within 12 months of the closing.

3. An expanding business means the purchase of an existing facility to manufacture, process, compound, or produce an item of tangible personal property that is already being produced at that facility or is similar to an item of tangible personal property that is already being produced at that facility.

(c)1. To qualify for exemption as an expanding business, the taxpayer is required to provide information to the satisfaction of the Executive Director or the Executive Director’s designee that the items purchased will be or have been used to increase the productive output of the existing facility or specific product line(s) by not less than 5 percent. An expanding business is allowed to specify whether the 5 percent increase in productive output is for the entire plant or for specific product line(s). However, where the increase in productive output applies to a product or component that becomes part of different product lines, the increase in productive output will be determined by measuring the increase in the combined output of the different product lines. Similarly, if the additional machinery and equipment affects the productive output of more than one product line, the increase in productive output must be measured by all of the product lines that have been affected.

a. Example: If a company purchases machinery and equipment that increases its production of raw orange juice by 25 percent, and this raw orange juice is used by the company to make five different products, the increase in productive output would be determined by measuring the volume increase in the combined output of all five different products.

b. Example: A beverage manufacturer that currently produces a variety of soft drinks in 12-ounce cans purchases machinery and equipment to begin making plastic bottles and also purchases additional mixing machinery and equipment to make more syrup for overall beverage production. Effectively, there are two separate expansion projects for this manufacturer. The plastic bottle expansion project will meet the required productive output increase requirement upon production of the first bottle. However, the productive output increase requirement for the additional mixing machinery and equipment must be measured by the amount of beverages produced at the plant.

c. Example: A manufacturer of coffeemakers, toasters, and microwave ovens purchases replacement machinery and equipment that is only used to make components for the coffeemakers. The productive output increase may be measured just on the production of coffeemakers.

2. The physical productive output measurement must be based on physical production data, which is directly relevant to the business and/or the product(s) being produced. A physical productive output measurement based on indirect or minor, variable components is not a relevant measurement. For example, a relevant measurement for a furniture manufacturer would be the number of pieces of furniture manufactured, not the amount of glue, paint, stain, or varnish used in the manufacturing of furniture.

3. Expanding spaceport activities are not subject to the increase in productive output requirement.

(4) Manufacturing Business Classification Factors.

(a) When an additional product is made at an existing fixed location, the determination whether that business is classified for the exemption as a new business or as an expanding business will depend upon whether the additional product represents an economic activity that is distinct and separate from a product, or a group of products, that is already being manufactured, processed, compounded, or produced at that fixed location.

(b) The Executive Director or the Executive Director’s designee will make a determination regarding the classification of a business’ application for exemption on a case-by-case basis. The Department will be guided by the following factors when making a determination:

1. The general nature of the applicant’s predominant existing business;

2. The Standard Industrial Classification (SIC) or North American Industry Classification System (NAICS) industry number of the existing product(s) versus the additional product;

3. The raw materials or components used to make the existing product(s) versus the additional product;

4. Whether the additional product is an alternative to, or represents a replacement for, the existing product(s);

5. The differences in machinery and equipment needed to make the existing product(s) versus the additional product; and

6. The units used to measure production of the existing product(s) versus the additional product.

(c) No single factor within paragraph (b) will decide whether the additional product represents a distinct and separate economic activity.

(d) Additional products that merely differ in size, color, flavor, style, packaging, or model line, or existing products that merely incorporate newer technology, are not considered to be a distinct and separate economic activity. For example, the manufacturing of electronic products based on digital technology is not a distinct and separate economic activity from the manufacturing of electronic products based on analog technology.

(e) The business claiming an exemption as a new business has the burden of demonstrating that the additional product represents a distinct and separate economic activity from a product, or group of products, that is already being manufactured, processed, compounded, or produced at the fixed location.

(5) Temporary Tax Exemption Permit – Refund or Credit.

(a) To receive the exemption provided under subsection (2) or (3), a qualifying business entity must apply to the Florida Department of Revenue, Technical Assistance, Post Office Box 7443, Tallahassee, Florida 32314-7443, for a temporary tax exemption permit. The business entity seeking a temporary tax exemption must file an Application for Temporary Tax Exemption Permit (Form DR-1214) with the Department prior to receiving a permit or refund for the new or expanded business. Upon a tentative affirmative determination of the business’s qualification for exemption by the Executive Director or the Executive Director’s designee, a temporary tax exemption permit will be issued to, or a refund authorized for, the business entity.

(b)1. A temporary tax exemption permit may be issued only to the qualified business entity which will use the qualifying machinery and equipment at a fixed location in this state in manufacturing, processing, compounding, or producing tangible personal property for sale, or for exclusive use in spaceport activities. Such permit may be extended by the business entity to its vendor(s) or to its authorized contractor(s) operating under lump sum, cost plus, fixed fee, guaranteed price, or any other type of contract executed for the purpose of constructing a new or expanded business. The authorized contractor(s) may, likewise, extend the temporary tax exemption permit to its vendor(s) for use in purchasing qualifying machinery and equipment tax exempt. The business entity that extends the temporary tax exemption permit to a contractor or subcontractor for the purpose of authorizing that contractor or subcontractor to purchase qualifying machinery and equipment tax exempt will be responsible for paying the sales and use tax on any nonqualified items purchased tax exempt by the contractor or subcontractor.

2. Upon completion of purchases of qualifying machinery and equipment, the temporary tax exemption permit is required to be delivered to the Department or returned by certified or registered mail. If the permit is returned by mail, the permit should be mailed to the Florida Department of Revenue, Technical Assistance, P.O. Box 7443, Tallahassee, Florida 32314-7443.

(c)1. If a qualifying business entity fails to apply for a temporary tax exemption permit before purchasing qualifying machinery and equipment for a new or expanded business, or if the initial determination by the Executive Director or the Executive Director’s designee is negative, the exemptions provided by subsections (2) and (3) above may be obtained only by a refund to the business entity of previously paid taxes. Refunds will not be allowed until information has been provided to the satisfaction of the Executive Director or the Executive Director’s designee that such machinery and equipment meets the requirements of this rule and is used as designated herein. Only the qualified business entity that will use the qualifying machinery and equipment at a fixed location in this state in manufacturing, processing, compounding, or producing tangible personal property for sale, or for exclusive use in spaceport activities is entitled to request a refund of sales or use taxes paid on qualifying industrial machinery and equipment, or installation thereof.

2. Before the owners of a qualifying new or expanded business under subsection (2) or (3) may request a refund of sales or use taxes paid by their contractors on qualifying industrial machinery and equipment, or installation thereof, the following certified statement(s) must be executed:

a. If a subcontractor was involved, the subcontractor must obtain a certified statement from its supplier(s) or other subcontractor(s) certifying that the supplier or other subcontractor has remitted the tax to the State, or certifying that the subcontractor has remitted use tax directly to the State. The subcontractor must then extend the statement(s) it has executed or obtained from suppliers or other subcontractors to the prime contractor; and

b. The prime contractor must obtain a certified statement from its supplier(s) and subcontractor(s) certifying that the supplier or subcontractor has remitted the tax to the State, or certifying that the prime contractor has remitted use tax directly to the State. The prime contractor must then extend the statement(s) it has executed or obtained from its supplier(s) or subcontractor(s) to the qualifying new or expanded business entity to support the refund claim.

(d)1. The following is a suggested format for a certified statement that tax has been remitted to the State of Florida:

COMPANY, incorporated in the state of STATE, its undersigned officer who is duly authorized, hereby certifies to QUALIFYING NEW OR EXPANDING BUSINESS, OR CONTRACTOR, OR SUBCONTRACTOR it has paid sales tax to the Department of Revenue, State of Florida, totaling the sum of $_________. Said taxes were collected by COMPANY upon the sales of tangible personal property as evidenced by the attached invoice(s).

The company further certifies the sales tax for the attached invoice(s) was paid to the State of Florida in the month following the date of sale under sales tax number _________.

Dated at ________ County ____, Florida, this ___ day of ___ 20.

AUTHORIZED OFFICER OF COMPANY

BY: _______________________________

TITLE: ____________________________

2. The above certified statement will not be necessary where the business entity claiming the refund has self-accrued and remitted the tax directly to the State of Florida. However, documentation that the tax has been remitted to the State of Florida in a timely manner is required.

(e) The right to a refund of, or credit for, sales or use taxes.

l. An application for refund by a new business must be filed within 3 years after the date the tax was paid in accordance with the timing provisions of Section 215.26(2), F.S. However, an application for refund will not be considered complete pursuant to Sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C., and a refund will not be approved, before the date the new business first places a product in inventory or immediately sells a product, or before the date a new business engaged in spaceport activities begins those activities.

2. An application for refund by an expanding business must be filed within 3 years after the date the tax was paid in accordance with the timing provisions of Section 215.26(2), F.S. However, an application for refund will not be considered complete pursuant to Sections 213.255(2) and (3), F.S., and Rule 12-26.003, F.A.C., and a refund will not be approved, before the date an expanding business can substantiate that the business expansion has increased the productive output at the existing facility by not less than 5 percent, or for an expanding business engaged in spaceport activities, before the date of completion of the installation of the machinery and equipment.

(6) Record Keeping Requirements. The applicant is required to maintain all necessary books and records to support the exemption. All such books, invoices, certified statements, and other records must be open for inspection by the Department at all reasonable hours at the qualifying business entity’s location in this state. Any qualifying business entity that maintains such books and records at a point outside this state is required to make such books and records available for inspection by the Department where the general records are kept.

(7) Exclusions.

(a) The exemptions provided by subsections (2) and (3) do not apply to machinery and equipment purchased or used by electric utility companies; communication companies; oil or gas exploration or production operations; publishing firms that do not export at least 50 percent of their finished product out of the state; any firm subject to regulation by the Division of Hotels and Restaurants of the Department of Business and Professional Regulation; or any firm which does not manufacture, process, compound, or produce items of tangible personal property for sale, or exclusively use machinery and equipment in spaceport activities.

(b) If a publishing firm is also the printer of the finished product, the Department will consider the business to be a printer for the purpose of the exemption. Therefore, the above indicated 50 percent requirement would not apply to such a business.

(8) Types of industrial machinery and equipment that will or will not qualify for the exemption.

(a) For the purpose of this exemption, industrial machinery and equipment includes:

1. Special foundations required for the support of such qualifying machinery and equipment;

2. Electrical wiring from the nearest power panel or disconnect box to the qualifying machinery and equipment; and,

3. Plumbing connections necessary to connect the machinery and equipment to the nearest water supply or drain line.

(b) The exemption for industrial machinery and equipment ends at that stage of the production process where the product produced is placed in a package (or is in salable form if packaging is normally not done) to be sold to the wholesaler, retailer, or other purchaser. Machinery and equipment for the refrigerated, frozen, heated, or otherwise temperature-controlled storage or warehousing of packaged finished goods inventory, solely for preservation purposes, prior to shipment or delivery to customers, is not a part of the production process.

1. Example: A manufacturer’s cold storage facility that is used solely for the warehousing of processed and packaged foods is not a part of the production process regardless of the fact that custom palletized orders may be assembled within the cold storage facility for customers.

2. Example: A manufacturer produces a product that must be frozen to be in a salable condition. The facility that performs the freezing function also stores the product prior to shipment. The freezing facility will qualify as a part of the production process.

3. Example: Customer accessible refrigerated cases containing prepackaged meats in a butcher shop are not a part of the production process, regardless of the fact that a customer may request that a package of meat be recut, trimmed, or ground.

4. Example: Refrigerated cases containing meats or seafood that are only accessible by employees, where such meats or seafood may be further processed by packaging, cutting, grinding, or steaming or otherwise cooked, are a part of the production process.

5. Example: Bakery display cases where the baked goods are only accessible by bakery shop personnel for slicing or packaging are a part of the production process.

6. Example: Refrigerated or heated display cases or preparation units for deli items that are only accessible by deli personnel are a part of the production process.

7. Example: A citrus juice manufacturer is prohibited by federal regulations from selling its inventory of processed juice before required post-production microbial tests are performed. Accordingly, the refrigerated or frozen storage of processed juice is a part of the manufacturing process.

(c) Quality control equipment installed within the production line and required to perform quality checks on each item, article, or batch produced before the item, article, or batch can be sold qualifies for the exemption.

(d) Preproduction, random, or postproduction quality control equipment qualifies as industrial machinery and equipment, if it is an integral part of the production process.

(e) Industrial machinery and equipment that is an integral part of the production process, as well as in postproduction, such as a forklift, will qualify for the exemption.

(f) Pollution control equipment, or sanitizing and sterilizing equipment, that is an integral part of the production process qualifies for exemption.

(g) Monitoring machinery and equipment, such as computers, video, or other sensing systems or devices that are essential to the production process, qualifies for exemption.

(h) Machinery and equipment used to remove waste materials away from industrial machinery and equipment, where the removal is required to maintain the operation of the production process, will qualify for exemption. For example, equipment used to remove wood chips and sawdust from around a qualified industrial wood lathe will qualify for exemption.

(i) Parts and accessories for industrial machinery and equipment purchased for replacement, maintenance, or repair purposes do not qualify for this exemption unless purchased by:

1. A new business before production or spaceport activities begin, and delivery is made within 12 months from the start of production or spaceport activities; or

2. An expanding business before the completion of the expansion project.

3. Parts and accessories purchased for replacement, maintenance, or repair that have already received an exemption pursuant to Section 212.08(7)(xx), F.S., are not entitled to an exemption as provided in this rule.

(j) Conveyers or related equipment used to transport raw materials from the storage area located at the fixed location to the production line, or to transport work-in-process within the production line at the fixed location, will qualify for exemption.

(k) Computers and computer equipment.

1. Computers and computer equipment, such as computer aided manufacturing (CAM) systems used to direct and control the functions of exempt industrial machinery and equipment will qualify for exemption.

2. Computers and computer equipment, such as computer aided design (CAD) systems used in the conception or design of a product and computers and computer equipment used to input original images or data into a publishing system are not a part of the production process and will not qualify for exemption.

3. Computers and computer equipment used in an ancillary function, such as data storage or backup, are not a part of the production process and will not qualify for exemption.

4. Portable computers, such as laptops and similar portable devices, including digital cameras, will not qualify for exemption unless such items are exclusively used at the fixed location.

5. The initial purchase of software for qualifying computers and computer equipment will qualify for exemption. However, software license renewals will not qualify for exemption.

(l) Masks, molds, jigs, or templates, where such property is integral to the production process, will qualify for exemption. The machinery and equipment that is integral to the creation or maintenance of those masks, molds, jigs, or templates will also qualify for exemption, even though such machinery and equipment is not a direct part of the production process.

(m) Machinery and equipment used in the general repair or maintenance of the plant or production machinery and equipment, such as welders, gear-pullers, or bench grinders, does not qualify for the exemption. However, specialized machinery and equipment that is continuously required to keep production machinery and equipment calibrated or in optimum condition, such as a sharpening machine in a sawmill, will qualify for the exemption.

(n) Scales at the start of, or within, the production process that are necessary to weigh raw materials or ingredients, or finished goods at the time of packaging, will qualify for the exemption.

(o) Office equipment, such as copy machines, typewriters, fax machines, desktop printers, or calculators, will not qualify for the exemption.

(p) Equipment used for communications purposes, such as telephones, radios, intercom systems, video or television equipment, or public address systems, will not qualify for exemption.

(q) Security systems for surveillance or to prevent or restrict access to the fixed location or areas within the fixed location will not qualify for exemption.

(r) Furniture items for office or production personnel will not qualify for the exemption.

(s) General or task lighting fixtures will not qualify for the exemption.

(t) Installation labor charges qualify for exemption. However, other installation costs, such as equipment rental or expendable supplies, which do not become a physical part of qualifying machinery and equipment, will not qualify for exemption.

(u) Motor vehicles, as defined in Section 320.01, F.S., do not qualify for exemption.

(v) Locomotives or railroad cars that do not remain at the fixed location will not qualify for exemption.

(9) Leases of Machinery and Equipment.

(a) When a qualifying new or expanding business entity leases industrial machinery, equipment, or parts thereof, the exemption from tax only applies to the original term of the lease agreement. Any subsequent renewal or extensions of the original term of the lease agreement are subject to tax.

(b) The exercise of a purchase option in an operating lease is considered to be a purchase made after the start of production for a new business, or a purchase made outside the expansion project period for an expanding business, and is subject to tax.

(c) In the case of a capital lease, sales-type lease, or direct financing lease, such leases will be considered to be sales and purchases at their inception.

History

• Rulemaking Authority 212.08(5)(b)4., 212.18(2), 213.06(1) FS. Law Implemented 212.02, (10)(g), (14)(c), 212.05, 212.06, 212.08(5)(b), (7)(xx), 212.13(2), 213.255(2), (3), 215.26(2) FS. History–New 5-11-92, Amended 7-1-99, 6-28-00, 6-19-01, 3-6-02, 4-1-08, 1-12-11, 1-17-13.

Fla. Admin. Code R. 12A-1.097 Public Use Forms

(1) The following public use forms and instructions are employed by the Department in its dealings with the public related to the administration of Chapter 212, F.S. These forms are hereby incorporated by reference in this rule.

(a) Copies of these forms, except those denoted by an asterisk (*), are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday, (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

(b) Forms (certifications) specifically denoted by an asterisk (*) are issued by the Department upon final approval of the appropriate application. Defaced copies of certifications, for purposes of example, may be obtained by written request directed to:

Florida Department of Revenue

Taxpayer Services

Mail Stop 3-2000

5050 West Tennessee Street

Tallahassee, Florida 32399-0112.

Form Number

Title

Effective Date

(2)(a) DR-1

Florida Business Tax Application

(http://flrules.org/Gateway/reference.asp?No=Ref-18760)

01/26

(b) DR-1N

Registering Your Business

(http://flrules.org/Gateway/reference.asp?No=Ref-18763)

01/26

(c) DR-1CON

Application for Consolidated Sales and Use Tax Filing Number (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06358)

01/16

(d) DR-1A

Application for Registered Businesses to Add a New Florida Location

(http://flrules.org/Gateway/reference.asp?No=Ref-18761)

01/26

(e) DR-1C

Application for Collective Registered of Living or Sleeping Accommodations

(http://flrules.org/Gateway/reference.asp?No=Ref-18749)

12/25

(f) DR-1CCN

Application for Sales and Use Tax County Control Reporting Number

(http://www.flrules.org/Gateway/reference.asp?No=Ref-11784)

03/20

(g) DR-1FA

Application for a Florida Certificate of Forwarding Agent Address

(http://flrules.org/Gateway/reference.asp?No=Ref-18762)

01/26

(h) DR-1 TEAM

Application for a Florida Farm Tax Exempt Agricultural Materials (TEAM) Card (http://www.flrules.org/Gateway/reference.asp?No=Ref-16349)

01/24

(3) DR-5

Application for a Consumer’s Certificate of Exemption with Instructions

(http://flrules.org/Gateway/reference.asp?No=Ref-18750)

12/25

(4)(a) DR-7

Consolidated Sales and Use Tax Return

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17768)

02/25

(b) DR-7N

Instructions for Consolidated Sales and Use Tax Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18751)

12/25

(c) DR-15CON

Consolidated Summary – Sales and Use Tax Return

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17771)

02/25

(5)(a) DR-15

Sales and Use Tax Return

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17770)

02/25

(b) DR-15N

Instructions for DR-15 Sales and Use Tax Returns

(http://flrules.org/Gateway/reference.asp?No=Ref-18754)

12/25

(c) DR-15AIR

Sales and Use Tax Return for Aircraft (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06361)

01/16

(d) DR-15EZ

Sales and Use Tax Return

(http://www.flrules.org/Gateway/reference.asp?No=Ref-11382)

01/20

(e) DR-15EZN

Instructions for DR-15EZ Sales and Use Tax Returns

(http://flrules.org/Gateway/reference.asp?No=Ref-18752)

12/25

(f) DR-15MO

Out-of-State Purchase Return

(http://flrules.org/Gateway/reference.asp?No=Ref-18753)

12/25

(6)(a) DR-16A

Application for Self-Accrual Authority and Direct Pay Permit

(http://flrules.org/Gateway/reference.asp?No=Ref-18755)

12/25

(b) DR-16P*

Sales and Use Tax Direct Pay Permit

(http://flrules.org/Gateway/reference.asp?No=Ref-18756)

12/25

(c) DR-16R

Renewal Notice and Application for Sales and Use Tax Direct Pay Permit

(http://flrules.org/Gateway/reference.asp?No=Ref-18757)

12/25

(7) DR-17A

Certificate of Cash Deposit or Cash Bond (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06365)

01/16

(8)(a) DR-18

Application for Amusement Machine Certificate (R. 09/26)

(https://flrules.org/Gateway/reference.asp?No=Ref-19658)

09/26

(b) DR-18N

Application for Amusement Machine Certificate General Information and Instructions

(https://flrules.org/Gateway/reference.asp?No=Ref-19659)

09/26

(c) DR-18R

Amusement Machine Certificate Renewal Application (R. 09/26)

(https://flrules.org/Gateway/reference.asp?No=Ref-19660)

09/26

(d) DR-18RS

Amusement Machine Certificate Renewal Application Second Notice (R. 09/26)

(https://flrules.org/Gateway/reference.asp?No=Ref-19661)

09/26

(9) DR-29

Application for Release or Refund of Security (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06367)

01/16

(10)(a) DR-42

Application/Order Form for Boat Decal Sets

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17773)

02/25

(b) DR-42E

Application for Extension of 90-Day Decal to 180 Days

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17774)

02/25

(11) DR-46NT

Nontaxable Medical Items and General Grocery List

(http://flrules.org/Gateway/reference.asp?No=Ref-18758)

12/25

(12) DR-72-2

Declaration of Taxable Status – Trailer Camps, Mobile Home Parks, and Recreational Vehicle Parks (R. 01/17)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-07749)

01/17

(13) DR-95B

Schedule of Tax Credits Claimed on Repossessed Tangible Personal Property

(http://www.flrules.org/Gateway/reference.asp?No=Ref-10175)

01/19

(14) DR-99A

Affidavit for Occasional or Isolated Sale of a Motor Vehicle (R. 01/17)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-07750)

01/17

(15) DR-123

Partial Exemption for Motor Vehicle Sold to Resident of Another State: Affidavit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-12313)

01/21

(16) DR-231*

Certificate of Exemption for Entertainment Industry Qualified Production Company

(http://flrules.org/Gateway/reference.asp?No=Ref-18759)

12/25

(17) DR-1214

Application for Temporary Tax Exemption Permit

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17775)

02/25

(18) DR-300400

Boat, Motor Vehicle, or Aircraft Dealer Application for Special Estimation of Taxes

(R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06372)

01/16

(19) DR-600013

Request for Verification that Customers are Authorized to Purchase for Resale (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06373)

01/16

(20) DR-1214DCP

Application for Data Center Property Temporary Tax Exemption Certificate (http://www.flrules.org/Gateway/reference.asp?No=Ref-17795)

02/25

(21) DR-5DCP

Application for Data Center Property Certificate of Exemption (http://www.flrules.org/Gateway/reference.asp?No=Ref-09255)

04/18

(22)(a) DR-HS1

Florida Tax Credit Scholarship Program – Motor Vehicle Sales Tax Credit – Contribution Election

(https://flrules.org/Gateway/reference.asp?No=Ref-19662)

09/26

(b) DR-HS2

Florida Tax Credit Scholarship Program – Motor Vehicle Sales Tax Credit – Dealer Contribution Collection Report

(https://flrules.org/Gateway/reference.asp?No=Ref-19663)

09/26

(c) DR-HS3

Florida Tax Credit Scholarship Program – Motor Vehicle Sales Tax Credit – Contributions Received by an Eligible Nonprofit Scholarship-Funding Organization

(http://www.flrules.org/Gateway/reference.asp?No=Ref-17778)

02/25

History

• Rulemaking Authority 201.11, 202.17(3)(a), 202.22(6), 202.26(3), 212.05(1)(a)2.f., (h), 212.0515(7), 212.06(5)(b)13., 212.0596(3), 212.07(1)(b), 212.08(7), 212.11(5)(b), 212.12(1)(a)2., 212.18(2), (3), 212.183, 213.06(1), 288.1258(4)(c), 376.70(6)(b), 376.75(9)(b), 403.718(3)(b), 403.7185(3)(b) FS. Law Implemented 125.0104, 125.0108, 201.01, 201.08(1)(a), 201.133, 202.11(2), (3), (6), (16), (24), 202.22(3)-(6), 202.28(1), 203.01, 212.03, 212.0305, 212.04, 212.05, 212.0501, 212.0515, 212.054, 212.055, 212.0596, 212.05965, 212.06, 212.0606, 212.07(1), (8), 212.08, 212.084(3), 212.085, 212.09, 212.096, 212.11(1), (4), (5), 212.12(1), (2), (9), (13), 212.14(2), (4), (5), 212.18(2), (3), 212.183, 212.1832, 213.235(1), (2), 213.29, 213.37, 213.755, 215.26(6), 219.07, 288.1258, 290.00677, 365.172(9), 376.70(2), 376.75(2), 403.718, 403.7185(3), 443.131, 443.1315, 443.1316, 443.171(2) FS. History–New 4-12-84, Formerly 12A-1.97, Amended 8-10-92, 11-30-97, 7-1-99, 4-2-00, 6-28-00, 6-19-01, 10-2-01, 10-21-01, 8-1-02, 4-17-03, 5-4-03, 6-12-03, 10-1-03, 9-28-04, 6-28-05, 5-1-06, 4-5-07, 1-1-08, 4-1-08, 6-4-08, 1-27-09, 9-1-09, 11-3-09, 1-11-10, 4-26-10, 6-28-10, 7-12-10, 1-12-11, 1-25-12, 1-17-13, 5-9-13, 1-20-14, 1-19-15, 1-11-16, 4-5-16, 1-10-17, 2-9-17, 1-17-18, 4-16-18, 1-8-19, 10-28-19, 12-12-19, 3-25-20, 12-31-20, 6-14-22, 1-1-23, 1-1-24, 2-11-24, 8-6-24, 2-20-25, 12-29-25, 1-1-26, Technical Change 2-4-26, 5-26-26, Amended 9-3-26(8), 9-3-26(22)(a), (b), Technical Change 9-8-26.

Fla. Admin. Code R. 12A-1.102 Electrical Energy Used in an Enterprise Zone

History

• Rulemaking Authority 212.08(15)(d), 212.17(6), 213.18(2), 213.06(1) FS. Law Implemented 120.55(1)(a)4., 166.231, 212.02(5), 212.05(1), 212.08(5)(h), (15), 212.12(2)(a), (3), 212.15(2), 213.29, 290.0055, 290.0065 FS. History–New 6-10-87, Amended 1-2-89, 8-10-92, 10-19-94, Repealed 1-3-96.

Fla. Admin. Code R. 12A-1.103 Remote Sales; Marketplaces

(1) Definitions.

(a) A “marketplace” means any physical place or electronic medium through which tangible personal property is offered for sale.

(b) A “marketplace provider” means a person who facilitates a retail sale by a marketplace seller by listing or advertising for sale by the marketplace seller tangible personal property in a marketplace and who directly, or indirectly through agreements or arrangements with third parties, collects payment from the customer and transmits all or part of the payment to the marketplace seller, regardless of whether the marketplace provider receives compensation or other consideration in exchange for its services.

(c) A “marketplace seller” means a person who has an agreement with a marketplace provider that is a Florida dealer and who makes retail sales of tangible personal property through a marketplace owned, operated, or controlled by the marketplace provider.

(d) A “remote sale” means a retail sale of tangible personal property ordered by mail, telephone, the Internet, or other means of communication from a person who receives the order outside of this state and transports the property or causes the property to be transported from any jurisdiction, including this state, to a location in this state. For purposes of this paragraph, tangible personal property delivered to a location within this state is presumed to be used, consumed, distributed, or stored to be used or consumed in this state.

(e) A “remote seller” means a person who makes a substantial number of remote sales outside of a marketplace. Marketplace providers and marketplace sellers who make a substantial number of remote sales outside of a marketplace are considered remote sellers.

(f) A “substantial number of remote sales” means any number of taxable remote sales in the previous calendar year in which the sum of the sales prices, as defined in Section 212.02(16), F.S., exceeded $100,000.

(2) Marketplace providers and remote sellers required to collect and remit sales tax and discretionary sales surtax due on retail sales to persons in Florida must register with the Department electronically as provided in Rule 12A-1.060, F.A.C.

(3)(a) A marketplace provider must certify to its marketplace sellers that it will collect and remit any Florida sales tax, plus applicable discretionary sales surtax, due on retail sales made through the marketplace to persons in Florida. This certification may be included in the agreement between a marketplace seller and a marketplace provider.

(b) A marketplace seller who makes sales outside a marketplace must collect and remit Florida sales tax, plus applicable discretionary sales surtax, on retail sales made outside the marketplace to persons in Florida if they made a substantial number of remote sales in the previous calendar year. When determining whether a marketplace seller made a substantial number of remote sales, only those sales made outside of the marketplace are included in the total amount of taxable remote sales.

(4)(a) The following dealers must timely file Florida sales and use tax returns and remit sales tax and discretionary sales surtax to the Department by electronic means.

1. A marketplace provider that is a dealer under Chapter 212, F.S.

2. A person who is required to collect and remit sales tax on remote sales.

(b) Returns and payments must be submitted to the Department by electronic means as provided in Rule 12A-1.056, F.A.C., and rule Chapter 12-24, F.A.C.

Cross Reference: Rule 12A-15.003, F.A.C.

(5) Marketplace Seller notification to collect sales tax.

(a) Effective April 1, 2022, a marketplace seller may collect and remit all applicable taxes and fees on its sales made through a marketplace provider when all of the following conditions are met:

1. The marketplace seller and the marketplace provider have contractually agreed that the marketplace seller will collect and remit all applicable taxes and fees on its sales made through the marketplace.

2. The marketplace seller has registered with the Department as a dealer under Section 212.18, F.S., and has provided evidence of registration to the marketplace provider.

3. The marketplace seller has annual United States gross sales of more than $1 billion, including the gross sales of any related entities or the combined sales of all franchisees of a single franchisor.

4. The marketplace seller has sent written notification to the Department as provided in paragraph (b).

(b) The notice must be on the marketplace seller’s business letterhead, state that the marketplace seller meets all conditions stated in Section 212.05965(11), F.S., and has chosen to collect and remit all applicable taxes and fees for its sales made through a marketplace provider. The notice must be signed by an individual authorized to sign on behalf of the marketplace seller. The notice may be delivered in one of three ways:

1. A letter can be mailed to the following mailing address:

Account Management MS 1-5730

Florida Department of Revenue

5050 W. Tennessee St.

Tallahassee, FL 32399-0160

2. A scanned letter can be emailed to registration@floridarevenue.com.

3. A letter can be faxed to (850)922-0859.

(c) Sample Notice.

1. The notice may take any form as long as it clearly states that the marketplace seller is electing to collect all applicable taxes and fees for its sales made through a marketplace provider.

2. The notice must be signed by an authorized individual of the marketplace seller.

3. An example of notice language is as follows: “In accordance with Section 212.05965(11), F.S., (Name of Marketplace Seller, sales and use tax certificate number) has met the statutory requirements that allow it to collect and remit all applicable taxes and fees for its sales made through (name of Marketplace Provider) and that it is liable for failure to collect or remit those taxes and fees. For questions, please contact (name of Marketplace Seller contact person) at (contact telephone number or email address).”

History

• Rulemaking Authority 212.0596(3), 212.18(2), 213.06(1) FS. Law Implemented 212.05, 212.0596, 212.05965, 212.06(2), 212.18(3), 213.37 FS. History–New 12-8-87, Amended 8-10-92, 4-17-03, 6-14-22.

Fla. Admin. Code R. 12A-1.104 Sales of Property to be Transported to a Cooperating State

History

• Rulemaking Authority 212.06(3)(b)2., 212.18(2), 213.06(1) FS. Law Implemented 212.06(3) FS. History–New 12-8-87, Amended 12-31-20, Repealed 6-14-22.

Fla. Admin. Code R. 12A-1.105 Service Warranties

(1)(a) Every person who solicits, offers, provides, enters into, issues, or delivers any service warranty, or who receives, on behalf of another person, any consideration from a service warranty holder is exercising a taxable privilege and shall register as a dealer with the Department of Revenue before such person may engage in or conduct business in this state. See Rule 12A-1.060, F.A.C.

(b)1. The term “service warranty” means any contract or agreement which indemnifies the holder of the contract or agreement for the cost of maintaining, repairing, or replacing tangible personal property, whether or not the contract provides for the furnishing of parts. The term “service warranty” includes motor vehicle warranties issued under Part I of Chapter 634, F.S., and service warranties issued under Part III of Chapter 634, F.S.

a. Example: A service contract covering an appliance, such as a refrigerator, is a service warranty.

b. Example: A service contract (motor vehicle service agreement) covering the repair of a component part of a motor vehicle is a service warranty.

c. Example: A warranty agreement which indemnifies the agreement holder for the cost of repair or replacement of a television is a service warranty.

d. Example: A maintenance contract covering the cost of labor only to repair or maintain computer hardware is a service warranty.

e. Example: A service agreement covering the cost of labor, and which provides for the furnishing of parts at an additional charge, to repair a washing machine is a service warranty.

2. The term “service warranty” does not include contracts or agreements to repair, maintain, or replace tangible personal property if such property when sold at retail in this state would not be subject to sales tax or if the parts and labor to repair tangible personal property qualify for an exemption under Chapter 212, F.S.

a. Example: The sale of a wheelchair in Florida is not taxable. A service contract covering the cost of maintaining, repairing, or replacing a wheelchair is not a service warranty.

b. Example: The purchase of a hearing aid in Florida is not taxable. The purchase of a service agreement covering the cost of repairing or replacing a hearing aid is not a service warranty.

c. Example: A maintenance contract covering the cost of parts and labor that are exempt when used to repair industrial machinery and equipment, as provided in Section 212.08(7)(xx), F.S., is not considered a service warranty contract.

3. The term “service warranty” does not include contracts or agreements covering tangible personal property which becomes a part of real property.

a. Example: A central air conditioning system is considered to be part of real property. A service contract covering the cost of repairing a central air conditioning system is not a service warranty.

b. Example: An elevator or escalator is considered to be part of real property. A maintenance contract covering the cost of repair or maintenance of an elevator or an escalator is not a service warranty.

(c)1. If a transaction involves both the issuance of a service warranty subject to tax and the issuance of a warranty, guaranty, extended warranty or extended guaranty, contract, agreement, or other written promise which is not subject to tax, the consideration shall be separately identified and stated with respect to the taxable and nontaxable portions of the transaction. If the consideration for such a transaction is not separately identified and stated, the entire transaction is taxable.

2. If a reasonable, good faith apportionment of the actual consideration for the taxable portion is not evident, that is, if only a nominal amount of the consideration is attached to the taxable portion, the Department shall have the power to reform the contract; such reformation by the Department shall be considered prima facie correct; and the burden to show the contrary shall rest upon the dealer. Sales tax shall apply to the transaction to the extent that the consideration is for a service warranty subject to tax.

3.a. Example: A service contract covers the cost of repairing a central air conditioning system and a refrigerator. The cost of the contract covering the repair of the central air conditioning system and repair of the refrigerator are separately identified and stated on the service contract. The separately identified and stated amount of the contract for the cost of coverage for repair of the central air conditioning system is $500. The separately identified and stated amount of the contract for the cost of coverage for repair of the refrigerator is $100. The portion of the contract covering the refrigerator ($100) is taxable, while that portion covering the central air conditioning system ($500) is not subject to tax.

b. Example: A service contract covers the cost of repairing a central air conditioning system and a refrigerator. The costs of the contract covering the repair of the central air conditioning system and repair of the refrigerator are separately identified and stated on the service contract. The separately identified and stated amount of the contract for the cost of coverage for repair of the central air conditioning system is $599. The separately identified and stated amount of the contract for the cost of coverage for repair of the refrigerator is $1. Evidence provided to the Department fails to show the apportionment between the taxable and nontaxable portion of the contract was made on a good faith basis, and the Department determines $500 represents the fair amount of the contract which represents coverage for the repair of the central air conditioning system and $100 represents the fair amount of the contract which represents coverage for the repair of the refrigerator. The portion of the contract covering the refrigerator ($100) is taxable, while that portion covering the central air conditioning system ($500) is not subject to tax.

4. Example: A service contract covers the cost of repairing a central air conditioning system and a refrigerator. A single charge is made for the contract, and items covered under the contract are not separately stated. The entire charge for the contract is taxable.

(d) The partial exemption for the sale of new or used motor vehicles to a resident of another state authorized pursuant to Section 212.08(10), F.S., does not apply to the sale of service warranty contracts.

(2)(a) The tax shall be due at the rate of 6% on the total consideration received or to be received by any person for the privilege of engaging in the business of soliciting, offering, providing, entering into, issuing, or delivering any service warranty.

(b) The tax shall be due and payable by the person receiving the consideration from the service warranty agreement holder at the time such consideration is received. The person receiving the consideration from the service warranty agreement holder shall collect the tax and remit it to the Department at the times and in the manner provided in Rule 12A-1.056, F.A.C.

(c) Any dealer registered with the Department who performs repairs or maintenance of tangible personal property indemnified under a service warranty may purchase repair parts, materials, and labor incorporated into the repair or maintenance of indemnified property tax-exempt for the purposes of resale. The repair dealer is required to issue a copy of the dealer’s Annual Resale Certificate to the selling dealer at the time of purchase in lieu of paying tax, as provided in Rule 12A-1.039, F.A.C.

(d) If the person receiving consideration from the service warranty agreement holder is not the person issuing such warranty, then the issuer of the service warranty shall take from that person, in lieu of sales tax, a copy of that person’s Annual Resale Certificate (Form DR-13).

(e) When a service agreement is sold in conjunction with the lease of tangible personal property, including the lease of a motor vehicle, tax is due at the time of the sale of the service agreement. If the amount of such premium and assessment, on which sales tax has been collected, is prorated over the term of the lease, the prorated amount of the cost of the service agreement in each lease payment is exempt if separately stated in the lease agreement.

(f) When a service warranty contract, including a motor vehicle service agreement, is assigned to a subsequent purchaser of the property covered by such contract, the total consideration received from such assignment by any person engaged in the business of soliciting, offering, providing, entering into, issuing, or delivering service warranties is taxable.

1. Example: A motor vehicle service agreement is assigned to a subsequent purchaser of a motor vehicle covered by such agreement for a $50 assignment fee. Tax is due on the assignment fee in the amount of $3 ($50  .06 = $3).

2. Example: A manufacturer’s warranty is assigned to a subsequent purchaser of a motor vehicle covered by such warranty for a $100 assignment fee. Tax is due on the assignment fee in the amount of $6 ($100  .06 = $6).

(g) The tax does not apply to any portion of the consideration received in connection with the issuance of any service warranty contract upon which the person issuing such contract is required to pay any premium tax imposed under the Florida Insurance Code or the premium tax imposed on home warranty associations pursuant to Section 634.313(1), F.S.

(h) The purchase of insurance by persons issuing service warranty contracts to underwrite or protect themselves from liabilities incurred from the payment of claims arising from the issuance of service warranty contracts is not subject to sales tax.

(3)(a) When a service warranty is cancelled and the consideration paid is refunded to the warranty holder, the person who remitted the tax to the Department shall also refund to the warranty holder the tax paid by the warranty holder for the purchase of the service warranty.

(b) When a service warranty is cancelled and the amount of consideration from the sale of the service warranty is refunded to the warranty holder on a prorated basis, the person who remitted the tax to the Department shall also refund to the warranty holder the tax paid by the warranty holder based on the same proration.

(c) When refunds are paid under the conditions stated in paragraphs (a) and (b), the dealer may then apply directly to the Department of Revenue for a refund or take an equivalent credit on its sales and use tax return. See Rule 12A-1.014, F.A.C.

(4)(a) The payment of any claim arising under a taxable service warranty by the person issuing the service warranty made to a person performing repairs or maintenance of a product listed under the taxable service warranty, or made directly to a lessor of the product listed under a taxable service warranty, is not subject to sales tax.

(b) When such a claim is paid, the person performing repairs or maintenance shall note the following elements on the repair invoice:

1. The name of the person issuing the service warranty;

2. The identification number of the service warranty;

3. The date of issuance of the service warranty;

4. The Florida Sales Tax Certificate of Registration number of the service warranty issuer; and,

5. The amount of the claim to be paid by the service warranty issuer.

(c) Any dealer registered with the Department who performs repairs or maintenance of tangible personal property indemnified under a service warranty may purchase repair parts, materials, and labor incorporated into the repair or maintenance of indemnified property tax-exempt for the purposes of resale. The repair dealer is required to issue a copy of the dealer’s Annual Resale Certificate to the selling dealer at the time of purchase in lieu of paying tax, as provided in Rule 12A-1.039, F.A.C.

(5) The payment of all, or any portion, of a claim arising under a taxable service warranty which is not paid directly to the person performing repairs or maintenance or directly to a lessor of the product listed in the service warranty by the issuer of the service warranty is subject to sales tax. The following amounts are subject to tax:

(a) Any deductible paid by the service warranty holder;

(b) Any amount paid by the service warranty holder directly to the person performing repairs or maintenance of the product for which the warranty holder may be subsequently reimbursed by the issuer of the service warranty; and,

(c) Payment by the warranty holder for repairs or maintenance that are not covered by the service warranty.

Cross Reference: Subsection (6) of Rule 12A-15.003, F.A.C.

History

• Rulemaking Authority 212.17(8), 212.18(2), 213.06(1) FS. Law Implemented 212.0506, 212.06, 212.08(7)(v), 212.17, 212.18(3), 634.131, 634.415(2) FS. History–New 1-2-89, Amended 12-11-89, 8-10-92, 1-4-94, 3-20-96, 4-2-00, 6-19-01, 5-1-06, 9-15-08, Technical Change 2-25-26..

Fla. Admin. Code R. 12A-1.106 Space Activities

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 206.42(4), 212.02(23), (24), 212.08(16) FS. History–New 2-28-90, Repealed 3-20-96.

Fla. Admin. Code R. 12A-1.107 Community Contribution Tax Credit

(1) Who May Claim the Community Contribution Tax Credit.

(a) Any taxpayer who received prior approval from the Florida Department of Commerce, for a community contribution to any revitalization project undertaken by an eligible sponsor will be allowed a credit of 50 percent of the value of the contribution. The total annual credit for each taxpayer, applied against state sales and use tax is limited to $200,000. Taxpayers who elect to claim the credit against state sales and use tax are ineligible to claim the credit against corporate income tax or insurance premium tax.

(b) Valuation of the Credit.

1. The valuation of the contribution determined by the Florida Department of Commerce will be used in the computation of the credit.

2. A contribution of more than $400,000 may be made in a tax year. However, the credit received for any contribution may not exceed the $200,000 annual credit limitation.

(c) When to Claim the Credit. The credit must be claimed as a refund of sales and use tax reported on returns and remitted to the Department within the 12 months preceding the date of the application for refund. If a taxpayer is unable to fully utilize the amount of credit granted in a year due to insufficient tax payments during the 12-month period preceding the granting of the credit, the unused amount may be carried forward for a period not to exceed 3 years and may be included in an application for refund filed during those years.

(2) Forms Required. Taxpayers claiming the credit must file an Application for Refund-Sales and Use Tax (Form DR-26S) with a copy of the letter issued to the taxpayer by the Florida Department of Commerce authorizing the taxpayer to claim the credit. The applicant is responsible for submitting to the Department of Revenue an Application for Refund-Sales and Use Tax (Form DR-26S) and a copy of the donation approval letter issued by the Florida Department of Commerce. Only one application may be submitted in any 12-month period.

History

• Rulemaking Authority 212.11(5)(b), 212.18(2), 213.06(1) FS. Law Implemented 212.08(5)(p), 212.11(5) FS. History–New 1-3-96, Amended 6-19-01, 8-1-02, 5-4-03, 5-1-06, 1-25-12, 1-1-24.

Fla. Admin. Code R. 12A-1.108 Exemption for Data Center Property

(1) The sale of “data center property,” as defined in Section 212.08(5)(s)1.d., F.S., is exempt from sales tax when the following requirements will be met:

(a) The facility meets the definition of “data center,” as provided in Section 212.08(5)(s)1.c., F.S.;

(b) The data center’s owners and tenants have made a cumulative, minimum capital investment, after July 1, 2017, of $150 million for the data center, excluding any expenses incurred in the acquisition of property operating as a data center in the six months prior to the acquisition.

(c) The data center must have a critical IT load of 15 megawatts or higher; and,

(d) Each individual owner or tenant within the data center must have a dedicated critical IT load of 1 megawatt or higher; and,

(e) Each of the above requirements is met within 5 years after the commencement of the construction of the data center.

(2) Application process.

(a) To qualify for the exemption for data center property, the data center owner must complete an Application for Data Center Property Temporary Tax Exemption Certificate (form DR-1214DCP, incorporated by reference in Rule 12A-1.097, F.A.C.). The application must state that a qualifying data center designation is being sought and must be accompanied by information that indicates the exemption requirements of subsection (1), will be met.

(b) The Department will issue a Data Center Property Temporary Tax Exemption Certificate (DR-14TDCP) upon a tentative determination by the Department that the exemption requirements provided in subsection (1), will be met.

(c) The data center owner must complete an Application for Data Center Property Certificate of Exemption (form DR-5DCP, incorporated by reference in Rule 12A-1.097, F.A.C.) once the exemption requirements have been met. The applicant must deliver to the Department its Data Center Property Temporary Tax Exemption Certificate, along with the following documentation sufficient to support that the exemption requirements have been satisfied:

1. Certification from a professional engineer, licensed pursuant to Chapter 471, F.S., whose services are contracted solely to certify that the data center has met the critical IT load requirement;

2. Certification from a Florida certified public accountant, as defined in Section 473.302, F.S., whose services are contracted solely to certify that the data center owners and tenants have made the required cumulative capital investment.

(d) The Department will issue a Data Center Property Certificate of Exemption (DR-14DCP) to the data center owner once it has determined that the documentation provided certifies that the exemption requirements have been met.

(3) Documenting the exemption.

(a) Data center owners making tax-exempt purchases of data center property are required to present the Data Center Property Temporary Tax Exemption Certificate (DR-14TDCP) or the Data Center Property Certificate of Exemption (DR-14DCP), once issued by the Department, to the selling dealer.

(b) Tenants and contractors making tax-exempt purchases of data center property are required to present a copy of the Data Center Property Temporary Tax Exemption Certificate (DR-14TDCP) or the Data Center Property Certificate of Exemption (DR-14DCP), issued to the data center owner by the Department, along with a Certificate of Entitlement to each vendor to affirm that the purchaser qualifies for the exemption. The vendor must maintain copies of the certificates until tax imposed by Chapter 212, F.S., may no longer be determined and assessed pursuant to Section 212.08(5)(s)3.c., F.S. Possession by a vendor of the certificate from the purchaser relieves the vendor from the responsibility of collecting tax on the sale, and the Department shall look solely to the purchaser for recovery of tax if it determines that the purchaser was not entitled to the exemption.

(c) The following is the format of the Certificate of Entitlement to be issued by the data center tenant or data center contractor when making exempt purchases of data center property:

CERTIFICATE OF ENTITLEMENT

The undersigned _____________________ (the Purchaser) affirms that it is a tenant or contractor of _______________________ (the Data Center), located at

________________________ (Data Center Address), and is eligible to extend the Data Center Property Temporary Tax Exemption Certificate/Data Center Property Certificate of Exemption to lease or purchase data center property exempt from sales tax.

The Purchaser affirms that the items purchased or rented from _______________ (Vendor) will be used exclusively at the data center to construct, outfit, operate, support, power, cool, dehumidify, secure, or protect a data center and any contiguous dedicated substations.

The Purchaser acknowledges that if the subject purchased or leased data center property does not qualify for the exemption provided in Section 212.08(5)(s), F.S., and Rule 12A-1.108, F.A.C., the Purchaser will be subject to the tax, interest, and penalties due on the purchased or leased property.

I understand that if I fraudulently issue this certificate to evade the payment of sales tax, I will be liable for payment of the sales tax plus a penalty of 200% of the tax and may be subject to conviction for a third-degree felony.

Under the penalties of perjury, I declare that I have read the foregoing Certificate of Entitlement, and the facts stated in it are true.

Signature of Purchaser _____________________ Title _______________________

Purchaser’s Name (Print or Type) __________________________ Date

---

Purchaser’s Federal Employer Identification Number: __________________________

Data Center Owner Certificate Number: ______________________

Telephone Number: ______________________

Do not send to the Florida Department of Revenue. This Certificate of Entitlement must be retained in the vendor’s and the tenant’s or contractor’s books and records.

(4)(a) The exemption for purchases and leases of data center property does not include rental consideration made for the lease or license to use real property subject to tax under Section 212.031. F.S. Rental consideration includes all considerations due and payable by the tenant to its landlord for the privilege of use, occupancy, or the right to use or occupy any real property for any purpose, including pass-through charges for common area maintenance and utilities, except certain electricity charges provided in paragraph (4)(b), below. See subsection 12A-1.070(4), F.A.C.

(b) The following charges for electricity are exempt as charges for “data center property”:

1. Charges billed by the utility provider directly to a data center tenant.

2. Charges billed by the utility provider directly to a data center owner.

3. Charges billed to a data center tenant by a data center owner that are separately stated on the owner’s invoice at the same or lower price as that billed by the utility provider to the owner.

(c) To document the tax-exempt purchase of electricity as provided in paragraph (4)(b), above, the purchaser shall comply with the documentation requirements set out in subsection (3), above.

(d) Data center property includes areas, infrastructure, fixtures and furnishings to be used exclusively at the data center by persons employed at the data center provided that the employees using the areas, infrastructure, furniture and fixtures are directly responsible for the operation, monitoring, security or support of data center property.

(5) The Department will conduct a review of registered data centers every 5 years to ensure that the data center exemption requirements provided in Section 212.08(5)(s), F.S., continue to be met. The first 5-year period will begin with the date the Data Center Property Certificate of Exemption (DR-14DCP) is issued to the data center. Within 3 months before the end of any 5-year period, data center owners are required to submit a written declaration, under penalties of perjury, that the required critical IT load requirements of paragraph (1)(a), are met and that the data center continues to operate in compliance with Section 212.08(5)(s)1., F.S. The declaration should be sent to Florida Department of Revenue, Technical Assistance, P.O. Box 7443, Tallahassee, FL 32314-7443.

(6)(a) If the Department determines that the data center or any owners, tenants, contractors, or other purchasers have not met the requirements found in Section 212.08(5)(s), F.S., with respect to any purchase, then such purchaser is liable to pay the tax that was avoided at the time of purchase, as well as penalty and interest from the date of purchase.

(b) If the Department determines that the data center is no longer in compliance with the provisions of Section 212.08(5)(s), F.S., then the Data Center Property Certificate of Exemption (DR-14DCP) will be revoked; any person who made tax exempt purchases under that certificate will liable to pay any tax that was avoided since the date the data center fell out of compliance with statutory requirements, as well as penalty and interest from the date of such purchases; and no further purchases will be exempt.

(7) Except as provided in paragraph (5)(b), the exemption provided for data center property is a permanent exemption for qualifying data centers that apply for and receive a Data Center Property Temporary Tax Exemption Certificate during the period from July 1, 2017, through June 30, 2027, and then meet all requirements for the Data Center Property Certificate of Exemption within five years. The Department will not process applications for Data Center Property Temporary Tax Exemption Certificate after June 30, 2027.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.08(5)(s) FS. History–New 4-16-18, 6-14-22.

Fla. Admin. Code R. 12A-1.109 Florida Tax Credit Scholarship Program for Commercial Rental Property

History

• Rulemaking Authority 212.099(10), 213.06(1) FS. Law Implemented 212.099 FS. History–New 10-28-19, Repealed 12-29-25.

Fla. Admin. Code R. 12A-1.110 Florida Tax Credit Scholarship Program Motor Vehicle Sales Tax Credit

(1) Definitions. For purpose of this rule, the following terms mean:

(a) “Eligible contribution” or “contribution” means a monetary contribution, as defined in Section 212.1832, F.S., from a person purchasing a motor vehicle from a dealer, or registering a motor vehicle purchased from someone other than a dealer, to an eligible nonprofit scholarship-funding organization to be used under the Florida Tax Credit Scholarship Program established under Section 1002.395, F.S.

(b) “Eligible nonprofit scholarship-funding organization” or “organization” has the same meaning as provided in Section 1002.395(2), F.S.

(c) “Motor vehicle” has the same meaning as provided in Section 320.01(1)(a), F.S., but does not include a heavy truck, truck tractor, trailer, or motorcycle.

(d) “Program” means the Florida Tax Credit Scholarship Program elated to the motor vehicles sales tax credit under Section 212.1832, F.S.

(2) Contributing to the Program.

(a) Any person, including persons who are not Florida residents, purchasing a motor vehicle from a dealer or registering a motor vehicle purchased from someone other than a dealer may designate the lesser of $105 or the amount of state sales tax due to the Program. An eligible contribution must be accompanied by Florida Tax Credit Scholarship Program Motor Vehicle Sales Tax Credit – Contribution Election (Form DR-HS1, incorporated by reference in Rule 12A-1.097, F.A.C.).

(b) Dealers, designated agents, and private tag agents are required to provide the purchaser with the opportunity to make a contribution and with a copy of the contribution election form (Form DR-HS1) at the time of purchase of a motor vehicle or at the time of registration of a motor vehicle that was not purchased from a Florida dealer. Vehicle purchasers and registrants are not required to complete Form DR-HS1, and dealers, designated agents, and private tag agents are not required to retain Form DR-HS1, if the purchaser or registrant chooses not to make a contribution.

(c) Dealers, designated agents, and private tag agents may, but are not required to, separately state a contribution on a sales invoice or other evidence of the motor vehicle sale, purchase, or registration.

(d) A contribution may not be made for any of the following:

1. Any tax other than the state sales tax imposed by Section 212.05, F.S.

2. Any tax due on a warranty or other taxable item sold in conjunction with a motor vehicle.

3. Any tax due on the lease or rental of a motor vehicle.

(3) Reporting contributions.

(a) Dealers, designated agents, and private tag agents who receive contributions must remit those contributions to the applicable organization. Contributions must be reported to both the organization and the Department using Florida Tax Credit Scholarship Program Motor Vehicle Sales Tax Credit – Dealer Contribution Collection Report (Form DR-HS2, incorporated by reference in Rule 12A-1.097, F.A.C.) no later than the date returns filed under Section 212.11, F.S., are due for the period in which the contributions are received. The fastest and easiest way to submit the Florida Tax Credit Scholarship Program Motor Vehicle Sales Tax Credit – Dealer Contribution Collection Report to the Department is online at floridarevenue.com/taxes/sfo. Dealers, designated agents, and private tag agents may also report by using a paper report made available on the Department’s website.

(b) If an organization has a web application used for collecting contributions, dealers, designated agents, and private tag agents may use the web application instead of submitting Form DR-HS2. The organization must collect, at a minimum, the same information required on Form DR-HS2.

(c) Any dealer, designated agent, or private tag agent required to file Form DR-HS2 who fails to do so may be subject to penalty as prescribed by Section 212.1832(3)(f), F.S. A dealer, designated agent, or private tag agent may also be subject to penalty if it is later discovered that contributions were received but not reported, even if such contributions were paid over to an organization.

(d) Dealers, designated agents, and private tag agents who receive contributions must separately report them on their sales and use tax returns. The total amount of sales tax that would otherwise be due must be included in the amount of tax reported on the tax return. Contributions must be reported both in total deductions claimed and separately as program credit on the appropriate line of the return. Contributions may not be netted against the tax otherwise due on the return.

(4) Reporting of contributions by participating eligible nonprofit scholarship-funding organizations.

(a) Each organization is required to report to the Department the contributions received during each calendar month using Florida Tax Credit Scholarship Program Motor Vehicle Sales Tax Credit – Contributions Received by an Eligible Nonprofit Scholarship-Funding Organization (Form DR-HS3, incorporated by reference in Rule 12A-1.097, F.A.C.). The report is due to the Department on or before the 20th day of the month following the month of collection. If the 20th falls on a Saturday, Sunday, or state or federal holiday, the report must be received on the first business day following the 20th.

(b) The fastest and easiest way to complete the Florida Tax Credit Scholarship Program Motor Vehicle Sales Tax Credit – Contributions Received by an Eligible Nonprofit Scholarship-Funding Organization is online at floridarevenue.com/taxes/sfo. Organizations may also report by using a paper report made available on the Department’s website.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 212.05, 212.1832 FS. History–New 10-28-19, Amended 2-20-25.

Fla. Admin. Code R. 12A-1.111 Department of Revenue Electronic Database

(1) Florida’s Address/Jurisdiction Database.

(a) The Department maintains an electronic database that assigns addresses to counties in a format that satisfies the requirements of Section 212.181, F.S. The electronic database, referred to as Florida’s Address/Jurisdiction Database, is maintained on the Department’s website at pointmatch.floridarevenue.com.

1. For each certificate of registration issued by the Department, the place of business will be assigned to a county based on the location address provided by the business at the time of registration or when the Department is notified of a change in a business location address.

2. Submissions made by counties that impose a tourist development tax in a subcounty special district, which is then remitted to the Department, must identify the subcounty special district addresses to which the tourist development tax applies.

(b) An updated Address/Jurisdiction Database is posted to the Department’s website 90 days prior to adoption of the Address/Jurisdiction Database. The updated Address/Jurisdiction Database is adopted and becomes effective every January 1 or July 1. References to the effective Address/Jurisdiction Database refer to the official database that is available on the website, which was adopted the previous January 1 or July 1. The effective Address/Jurisdiction Database is available for downloading and does not include the information contained in the pending files described in subparagraph (1)(b)1.

1. When a change to the Address/Jurisdiction Database has been approved, the approved pending address additions and approved pending address deletions are stored in separate files until they are included in the next scheduled update of the database. These pending files include all changes since the most recent update, including changes to jurisdictional boundaries.

2. The single address lookup feature permits any person to enter an address to identify the county to which it is assigned. The individual address lookup feature in the electronic database searches within the current database, as well as the pending files, and may reflect information not yet incorporated into the database available for download. In such cases, the individual address lookup page displays a statement indicating the page reflects a pending change to the database.

3. Each update of the Address/Jurisdiction Database is posted on the Department’s website at least 90 days prior to publication and is also available for download. The updated Address/Jurisdiction Database incorporates the corrections of any errors discovered since the previous update, as well as changes in addresses or county assignments based on information provided by counties.

(c) To fulfill its statutory responsibility to maintain the database, when the Department notices apparent errors, the Department will initiate an objection to the database in accordance with the provisions of subsection (4) and will process the objection in the same manner in which other objections are processed.

(2) Updating Florida’s Address/Jurisdiction Database.

(a) Counties contribute to maintaining the Address/Jurisdiction Database by providing the Department with updated information, such as changes in addresses or address ranges along with the county assignment and any other changes, using Form DR-700022, Notification of Changes to the Address/Jurisdiction Database (incorporated by reference in Rule 12A-19.100, F.A.C.). Counties must provide to the Department the names of the county officers or employees authorized to act as contact persons regarding database matters. Counties may provide updated contact information as frequently as necessary to ensure that the appropriate contact person can be reached regarding database matters.

(b) Counties may submit a change request to the Address/Jurisdiction Database electronically, using instructions in Form DR-700002, User’s Guide for the Address/Jurisdiction Database (incorporated by reference in Rule 12A-19.071, F.A.C.), available at pointmatch.floridarevenue.com. Any requested changes or additions to the Address/Jurisdiction Database must be supported by competent evidence as outlined in subsection (3).

(c) If a county does not have address updates, the county may indicate no changes by submitting Form DR-700023, Notification of No Change to the Address/Jurisdiction Database for Sales and Use Tax, effective 8/20; hereby incorporated by reference (http://www.flrules.org/Gateway/reference.asp?No=Ref-13413); copies of this form can be downloaded from the Department’s website at floridarevenue.com/forms.

(d)1. The county must specify the effective date, either January 1 or July 1, of any information to be incorporated in the Address/Jurisdiction Database. For a January 1 effective date, changes must be submitted no later than September 3, and for a July 1 effective date, changes must be submitted no later than March 3.

2. Counties may not submit changes between September 4 to October 3 and March 4 to April 2. The Department completes its review of pending submissions for the next database update during these periods and is unable to process new submissions. Submissions of new information during these time periods will be denied and must be submitted after the review period.

3. The Department will review the information provided in the requests for change and store the approved changes in the approved pending files.

(3) Competent Evidence.

(a) Competent evidence to support a change to the Address/Jurisdiction Database is documentation establishing that the addresses affected by the requested change or addition are located in the county indicated. Examples of competent evidence include articles of incorporation of a new municipality, the plat filed for a newly approved subdivision, or the enhanced 911 Master Street Address Guide (MSAG) database information relating to local law enforcement responders. Competent evidence must clearly identify the affected addresses or address ranges.

(b) If a requested change is to move an address from one county or jurisdiction to another county or jurisdiction, competent evidence includes the consent of the county or jurisdiction that did not request the change.

1. To facilitate processing the change, the county requesting the change should attempt to obtain written consent from an authorized contact person of the nonrequesting county or jurisdiction. Form DR-700022 contains an authorization statement that will serve as the written consent of the nonrequesting county or jurisdiction when signed by that county’s or jurisdiction’s authorized contact person. The Department will consider the receipt of Form DR-700022, containing the signatures of both authorized contact persons of the requesting and nonrequesting county or jurisdiction, to be sufficient competent evidence. In such instances, the Department will make the change based upon the submitted form.

2. If the requesting county or jurisdiction has not obtained the written consent of the nonrequesting county or jurisdiction, the Department will contact the nonrequesting county or jurisdiction before making the change. Based upon the response of the nonrequesting county or jurisdiction, the Department will take one of the following actions in regard to the requested change:

a. If the nonrequesting county or jurisdiction provides written consent to the Department, then the Department will process the change.

b. If the nonrequesting county or jurisdiction objects in writing, the Department will treat the requested change as one that must be resolved by the counties and jurisdictions involved as provided in paragraph (4)(d).

c. If the nonrequesting county or jurisdiction fails to either consent or object in writing within 20 days after the date on which the Department notified that county or jurisdiction of the requested change, the Department will accept and process the change. This will not prevent the nonrequesting county or jurisdiction from subsequently submitting requests to change the new address assignments after they have been processed.

3. A county or jurisdiction that objects to proposed changes should use Form DR-700022 to change the address information and, unless the affected county or jurisdiction signs the form, the Department will treat the request as one that must be resolved by the counties involved as provided in paragraph (4)(d).

(c) If a requested change affects only the requesting county and does not affect another county or jurisdiction, the Department will consider receipt of an affidavit signed by the authorized contact person, identifying the addresses or address ranges and stating that the change affects only the requesting county, to be sufficient competent evidence. The use of an affidavit is not required but, at the option of the requesting county or jurisdiction, may be used instead of providing other documentation. In such instances, the Department will make the change based upon the representations on the form and the affidavit.

(d) Example. A county approves the plat and grants the permits necessary for development of a new outdoor mall on February 1, 2021. The plat indicates street names, but address numbers have not yet been assigned. In order for the addresses to be added to the electronic database effective the following July 1, the county must file Form DR-700022 with a copy of the approved outdoor mall plat or an affidavit indicating that the change affects only the requesting county and submit online address change information by March 3, 2021. If that deadline is not met, the earliest date on which the new service addresses can be added to the database is January 1, 2022. In order to meet the deadline and be certain that the actual address numbers are included, the contact person for the county may request the addition of a range of numbers that is certain to include the actual numbers. Because the development of the outdoor mall affects only the requesting county, no consent from any other county is required.

(4) Objection to Address Assignment in Florida’s Address/Jurisdiction Database.

(a) Any substantially affected party, may object to information contained in the Address/Jurisdiction Database by submitting Form DR-700025, Objection to Address Assignment in the Address/Jurisdiction Database (incorporated by reference in Rule 12A-19.100, F.A.C.), along with competent evidence to support the party’s objection. Examples of substantially affected parties include individuals who purchase taxable items and pay local discretionary sales surtax, dealers who are required to collect sales tax and surtax, dealers who are required to collect tourist development taxes, and the Department of Revenue.

1. Only objections to the effective Address/Jurisdiction Database will be considered; objections to the pending Address/Jurisdiction Database will be denied.

2. Before submitting an objection, a person should check the effective Address/Jurisdiction Database to determine whether the contemplated objection is necessary.

(b) Examples of competent evidence are stated in paragraph (3)(a). The Department will notify the substantially affected party of any deficiencies in the objection or competent evidence.

(c) When the Department believes that addresses or address ranges have been assigned to an incorrect county or jurisdiction, the Department will initiate the change by using Form DR-700025. The Department will use any information at its disposal, including enhanced 911 MSAG database address information and information supplied by any dealer, as a basis for initiating an objection; however, in no event will the Department change any address assignment without providing notice to the affected counties and jurisdictions in the manner provided in paragraph (3)(b). If the change is approved, it will be included in the pending files with other approved changes for inclusion in the next update of the database.

(d) Upon receipt of a completed Form DR-700025, including competent evidence to support the objection, the Department will forward copies of the form, along with the associated documentation, to the database contact person in each affected county or jurisdiction.

1. The Department will provide Form DR-700026, Local Government Authorization for Address Changes Described on Form DR-700025 (incorporated by reference in Rule 12A-19.100, F.A.C.), so the affected counties or jurisdictions may agree, disagree, or partially agree with the address county changes proposed by the completed Form DR-700025.

2. The Department will provide Form DR-700027, Local Government Authorization for Omission of Address or Incorrect Address Identification (incorporated by reference in Rule 12A-19.100, F.A.C.), so the affected counties or jurisdictions may agree or disagree with the inclusion of an address or address range or with changing nonjurisdictional information about an address or address range proposed by the completed Form DR-700025.

3. In case the forms become separated, the Department will include on the bottom portion of each form the same tracking number and date to identify which forms belong together. The Department will, when practicable, provide the information electronically for review by the counties or jurisdictions. These forms will not be sent to the counties or jurisdictions between February 1 and April 2 or between August 4 and October 3 due to the inability of counties or jurisdictions to make online changes during the updating and posting of the next effective Address/Jurisdiction Database.

4. The counties or jurisdictions should review the specific address(es) at issue as well as the address range(s) that will be impacted by the change to ensure that each county or jurisdiction retains all of the addresses it believes are within its county or jurisdictional boundaries.

5. The Department will instruct each county or jurisdiction to indicate, in writing, its determination in regard to the objection by completing the provided authorization form (either Form DR-700026 or Form DR-700027) and filing the form with the Department. If the affected counties or jurisdictions both indicate agreement with the objection, the Department will revise the electronic database accordingly.

6. If a county or jurisdiction fails to respond within a reasonable time, which shall be no less than 30 days, such county or jurisdiction shall be deemed to have indicated agreement with the objection. If either the affected county or jurisdiction notifies the Department in writing that it does not agree with the objection, the Department will not change the address in the database.

7. The address will be reassigned to a county or jurisdiction when one of the following events occurs:

a. The Department receives written notification from the county or jurisdiction that did not agree with the change requested in the objection that such county or jurisdiction has subsequently determined that the change should be made.

b. The Department receives written notification from the party that filed the Form DR-700025 that the objection was erroneous and the assignment in the database was correct.

c. The Department is provided with a copy of a final order, judgment, or other binding written determination resolving the county or jurisdictional assignment of the contested address.

History

• Rulemaking Authority 212.181(4), 213.06(1) FS. Law Implemented 202.22(2), 212.181 FS. History‒New 8-15-21.

Fla. Admin. Code R. 12A-1.116 Florida Farm Tax Exempt Agricultural Materials Card

(1) For purposes of this rule, a “qualified farmer” means a farmer, as defined in section 212.02(28), F.S., whose property has been classified as agricultural pursuant to section 193.461, F.S., or who has implemented agricultural best management practices adopted by the Department of Agriculture and Consumer Services pursuant to section 403.067(7)(c)2., F.S., on property the farmer owns or leases.

(2)(a) Any qualified farmer in Florida desiring to obtain a Florida Farm Tax Exempt Agricultural Materials (TEAM) Card, hereafter referred to as “TEAM Card,” must complete the Application for Florida Farm Tax Exempt Agricultural Materials (TEAM) Card (Form DR-1 TEAM, incorporated by reference in Rule 12A-1.097, F.A.C.). The applicant farmer must indicate whether they qualify as a farmer who owns real property classified as agricultural pursuant to section 193.461, F.S., or they qualify as a farmer who has enrolled in and implemented best management practices adopted by the Department of Agriculture and Consumer Services pursuant to section 403.067(7)(c)2., F.S., on land owned or leased by the farmer.

(b) The Department of Agriculture and Consumer Services will issue a TEAM Card to applicants approved by the Department of Revenue.

(c) The TEAM Card will be valid for five years from the date of issuance.

(3)(a) A farmer that holds a valid TEAM card may present the card to a selling dealer to purchase items exempt from sales tax pursuant to applicable sales tax exemptions provided in section 212.08, F.S. A farmer may present the TEAM Card to a selling dealer instead of a certificate or affidavit otherwise required by Chapter 212, F.S.

(b) The selling dealer or lessor is only required to obtain one copy of the farmer’s TEAM Card to make tax exempt sales to the farmer during the effective period indicated on the TEAM Card. A selling dealer or lessor who accepts the TEAM Card in good faith will not be held liable for any tax due on sales made to the farmer during the effective period indicated on the TEAM Card. The selling dealer or lessor must maintain a copy of the TEAM Card in its books and records until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(c) Instead of maintaining a copy of the TEAM Card as provided in paragraph (b), a selling dealer or lessor may document the exempt sale by requesting a transaction authorization number issued by the Department. A transaction authorization number is valid for a single transaction only.

1. A “transaction authorization number” must be obtained by the selling dealer prior to or at the point-of-sale:

a. By using the Department’s online Certificate Verification System at floridarevenue.com/taxes/certificates; or

b. By calling the Department’s automated nationwide toll-free telephone verification system at 1(877)357-3725.

2. When using the Department’s online Certificate Verification System, the dealer may key up to five (5) purchaser’s TEAM Card numbers into the system. When using the Department’s automated nationwide toll-free verification system, the selling dealer is prompted to key in a single purchaser’s TEAM Card number. Each system will either issue a transaction authorization number or alert the selling dealer that the purchaser does not have a valid TEAM Card. Persons with hearing or speech impairments may call the Florida Relay Service by dialing 711, 1(800)955-8770 (Voice), or 1(800)955-8771 (TTY).

3. A transaction authorization number is not valid to exempt subsequent purchases or rentals made by the same purchaser. A selling dealer must obtain a new transaction authorization number for each and every transaction.

4. The selling dealer must document the transaction authorization number on the sales invoice, purchase order, or a separate form that is prepared by either the purchaser or the selling dealer.

(d)1. Vendor authorization number for regular customers – valid for the effective period indicated on the TEAM card. Instead of obtaining a copy of the TEAM Card or a Transaction Authorization Number from the Department for each sale to the farmer, the selling dealer may obtain a Vendor Authorization Number for that farmer. This option is available to selling dealers throughout the calendar year without limitation.

2. The “vendor authorization number” is a customer-specific authorization number that will be valid for all sales made to a qualifying farmer during the effective period indicated on the TEAM Card.

3. The Department’s online Certificate Verification System allows the user to verify up to five TEAM Card numbers and to obtain a transaction authorization number for single sales made to each exempt farmer at once. The system also allows the user to upload a batch file of up to 50,000 accounts or 10 MB for verification of TEAM card numbers and, 24 hours later, retrieve the file containing the vendor authorization numbers for all sales made to a qualifying farmer during the effective period indicated on the TEAM Card.

History

• Rulemaking Authority 212.08(19), 213.06(1) FS. Law Implemented 95.091(3), 212.02(28), 212.08(19), 212.13(2) FS. History–New 2-11-24.

Fla. Admin. Code R. 12A-1.117 Annual Back-to-School Sales Tax Holiday

(1) Definitions. For purposes of this rule, the following definitions apply:

(a) “Airport” means a facility as defined in Section 330.27(3), F.S.

(b)1. “Clothing” means any article of wearing apparel intended to be worn on or about the human body, including all footwear, except skis, swim fins, roller blades, and skates.

2. “Clothing” does not include watches, watchbands, jewelry, umbrellas, and handkerchiefs.

(c) “Holiday period” means the month of August.

(d) “Learning aids” means flashcards or other learning cards, matching or other memory games, puzzle books and search-and-find books, interactive or electronic books and toys intended to teach reading or math skills, and stacking or nesting blocks or sets, including learning aids sold with school supplies for a single charge.

(e)1. “Personal computers” includes electronic book readers, calculators, laptops, desktops, handheld devices, tablets, or tower computers.

2. The term does not include cellular telephones, video game consoles, digital media receivers, or devices that are not primarily designed to process data.

(f) “Personal computer-related accessories.”

1. The term includes keyboards, mice, personal digital assistants, monitors, other peripheral devices, modems, routers, and prepackaged nonrecreational software sold in a tangible form, regardless of whether the accessories are used in association with a personal computer base unit.

2. The term does not include furniture, or systems, devices, software, monitors with a television tuner, or peripherals that are designed or intended primarily for recreational use.

3. The term “nonrecreational software” includes software such as antivirus, word processing, financial, database, and educational software designed and intended to facilitate learning educational subjects. It does not include gaming software.

(g) “Public lodging establishment” means a facility as defined in Section 509.013(4), F.S.

(h) “Remote sale” means a retail sale of tangible personal property ordered by mail, telephone, the Internet, or other means of communication from a person who receives the order outside of this state and transports the property or causes the property to be transported from any jurisdiction, including this state, to a location in this state. For purposes of this rule, tangible personal property delivered to a location within this state is presumed to be used, consumed, distributed, or stored to be used or consumed in this state.

(i) “School supplies” means pens, pencils, erasers, crayons, notebooks, notebook filler paper, legal pads, binders, lunch boxes, construction paper, markers, folders, poster board, composition books, poster paper, scissors, cellophane tape, glue or paste, rulers, computer disks, staplers and staples used to secure paper products, protractors, and compasses.

(j) “Theme park or entertainment complex” means a facility as defined in Section 509.013(9), F.S.

(2) Clothing Sales.

(a) During the holiday period, tax is not due of the retail sale of any article of clothing, wallets, or bags, including handbags, backpacks, fanny packs, and diaper bags, but excluding briefcases, suitcases, and other garment bags, with a sales price of $100 or less per item. This exemption does not apply to sales of clothing, wallets, or bags within a theme park or entertainment complex, public lodging establishment, or airport.

(b)1. The sales tax exemption applies to each eligible item of clothing, wallet, or bag, having a sales price of $100 or less per item. The exemption applies regardless of how many items are sold on the same invoice to a customer.

2. Example: A customer purchases two shirts for $55 each. Both items are eligible for the exemption, even though the customer’s total purchase price ($110) exceeds $100.

(c)1. The exemption does not apply to the first $100 of price of an eligible item of clothing, wallet, or bag with a sales price of more than $100.

2. Example: A customer purchases a pair of pants costing $120. Tax is due on the entire $120.

(3) School Supplies.

(a)1. During the holiday period, tax is not due of the retail sale of any item of school supplies with a sales price of $50 or less per item. This exemption does not apply to sales of school supplies within a theme park or entertainment complex, public lodging establishment, or airport.

2. Example: A customer purchases a set of art markers for $45. The purchase qualifies for the exemption.

3. Example: A customer purchases a set of art markers with a sales price of $75. Tax is due on the entire $75.

(b)1. The sales tax exemption applies to each eligible item of school supplies with a sales price of $50 or less per item. The exemption applies regardless of how many items are sold on the same invoice to a customer.

2. Example: A customer purchases 15 notebooks for $4.50 each. All 15 items will qualify for the exemption, even though the customer’s total purchase price ($67.50) exceeds $50.

(4) Learning Aids and Jigsaw Puzzles. During the holiday period, tax is not due of the retail sale of any learning aid or jigsaw puzzle with a sales price of $30 or less. This exemption does not apply to sales of learning aids or jigsaw puzzles within a theme park or entertainment complex, public lodging establishment, or airport.

(5) Personal Computers and Certain Personal Computer-Related Accessories.

(a) During the holiday period, tax is not due of the retail sale of any personal computer or personal computer-related accessories for noncommercial home or personal use with a sales price of $1,500 or less. This exemption does not apply to sales of personal computers or personal computer-related accessories within a theme park or entertainment complex, public lodging establishment, or airport.

(b)1. The sales tax exemption applies to each eligible personal computer or qualifying personal computer-related accessory with a sales price of $1,500 or less per item.

2. Example: A customer purchases a $950 personal computer, a $100 printer, and a $400 tablet in a single transaction. Each item will qualify for the exemption on the sales price of the individual item.

3. Example: A customer purchases a personal computer with a sales price of $1,700. Tax is due on the entire $1,700.

(6) Sales of Sets Containing Both Exempt and Taxable Items.

(a) When exempt items are normally sold together with taxable merchandise as a set or single unit, the sales price of the set or single unit is subject to sales tax.

(b) Example: A gift set consisting of a wallet (which is defined as an eligible “clothing item”) and key chain (which is not defined as an eligible “clothing item”) is sold for a single price of $35. Although the wallet would otherwise be exempt during the holiday period, the sales price of the gift set is subject to tax.

(c) Example: A packaged set consisting of a bottle of correction fluid (which is not defined as an eligible “school supply”) and pens (which are defined as an eligible “school supply”) is sold for a single price of $10. Although the pens would otherwise be exempt during the holiday period, the sales price of the packaged set is subject to tax.

(7) Articles Normally Sold as a Unit.

(a) Articles that are normally sold as a unit must continue to be sold in that manner; they cannot be separately stated and sold as individual items in order to obtain the exemption.

(b) Example: A pair of shoes normally sells for $120. The pair of shoes cannot be split in order to sell each shoe for $60 to qualify for the exemption.

(c) Example: A two-piece suit is normally priced at $150 on a single price tag. The suit cannot be split into separate articles so that any of the components may be sold for $75 or less in order to qualify for the exemption. However, components that are normally priced as separate articles may continue to be sold as separate articles and qualify for the exemption if the price of an article is $100 or less.

(d) Example: A pen and pencil set is normally priced at $60 on a single price tag. The set cannot be split into separate articles so that either of the components may be sold for $30 or less in order to qualify for the exemption.

(8) Gift Cards.

(a) Eligible items purchased during the holiday period using a gift card will qualify for the exemption, regardless of when the gift card was purchased.

(b) Eligible items purchased after the holiday period using a gift card are taxable, even if the gift card was purchased during the holiday period.

(c) A gift card does not reduce the sales price of an item.

(9) Buy One, Get One Free or for a Reduced Price. The total price of items advertised as “buy one, get one free” or “buy one, get one for a reduced price” cannot be averaged in order for both items to qualify for the exemption.

(10) Exchanges.

(a) If a customer purchases an eligible item during the holiday period, then later exchanges the item for the same item (e.g., different size or different color), no tax will be due even if the exchange is made after the holiday period.

(b) If a customer purchases an eligible item during the holiday period, then later returns the item and receives credit towards the purchase of an item that did not qualify for the exemption, the new item purchased is subject to tax.

(11) Coupons, Discounts, and Rebates. The sales price of an item includes all consideration received by the retailer for that item. The price of an item is not limited to the amount paid by a customer.

(a) Manufacturer’s coupons, discounts, and rebates do not reduce the sales price of an item, because the retailer is reimbursed for the amount of any discount provided to a customer. Therefore, the amount of the reimbursement is included in the taxable sales price of an item.

(b) Store coupons, discounts, and rebates offered by the retail seller reduce the sales price of an item because they reduce the total amount received by the retail seller for the item.

(12) Rain checks. Eligible items purchased during the holiday period using a rain check will qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check during the holiday period will not qualify an eligible item for the exemption if the item is actually purchased after the holiday period.

(13) Layaway sales. A layaway sale is a transaction in which merchandise is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the purchase price over a period of time, and receives the merchandise at the end of the payment period. Eligible items sold as layaway sales qualify for the exemption when the customer accepts delivery of the merchandise during the sales tax holiday period, or puts an eligible item on layaway, even if final payment is made after the sales tax holiday period.

(14) Remote Sales.

(a) Eligible items purchased through a marketplace provider or from a remote seller are exempt when the order is accepted by the marketplace provider or remote seller during the holiday period for immediate shipment, even if delivery is made after the holiday period.

(b) An order is accepted by the company when action has been taken to fill the order for immediate shipment. Actions to fill an order include assigning an “order number” to a telephone order, confirming an Internet order by an email to the customer, or placing a date received on an order received by mail.

(c) An order is considered to be for immediate shipment when delayed shipment is not requested by the customer. An order is for immediate shipment even if the shipment may be delayed because of a backlog of orders or stock is currently unavailable or on back order.

(15) Shipping and Handling Charges. When separately stated shipping charges are part of the sales price, as provided in Rule 12A-1.045, F.A.C., and both taxable and exempt items are listed on a sales invoice or receipt, the shipping charges must be proportionately allocated to the charge for each item to determine the total sales price of the item. The charge for each item is divided by the total charge of all the items ordered to obtain the percentage of charge that each item bears to the total order. The amount of the shipping charge applicable to each item is calculated by multiplying the total shipping charge by the percentage of cost for each item. If an item is exempt, the associated shipping charge is also exempt.

(16) Service Warranties. The taxation of any charges for a service warranty contract depends on the taxability of the product being sold. If the retail sale of an item is exempt from tax, the charge for a service warranty sold with the item is exempt.

(17) License Fees or Other Fees imposed by Panama City and Panama City Beach. Panama City and Panama City Beach impose a 1% merchant’s license fee on retailers. The merchant’s license fee is included in the sales price of each item. When the fee is separately stated, and both taxable and exempt items are listed on a sales invoice or receipt, the merchant’s fee must be allocated to the charge for each item on the invoice. If the item is exempt, the associated merchant’s license fee is exempt.

(18) Repairs or Alterations to Eligible Items.

(a) Repairs to eligible items do not qualify for the exemption.

(b) Alterations to clothing or footwear do not qualify for the exemption, even though alterations may be sold, invoiced, and paid for at the same time as the item to be altered is purchased.

(19) Rentals. Rentals of eligible items do not qualify for the exemption.

(20) List of Items of Clothing and Their Taxable Status During the Holiday Period. The following is a list of items of clothing and their taxable status during the holiday period, if they are sold for $100 or less per item. This is not an exhaustive list. T = Taxable, E = Exempt.

A

T Accessories

E Barrettes and bobby pins

E Belt buckles

E Bow ties

E Hairnets, bows, clips, and hairbands

E Handbags

T Handkerchiefs

T Jewelry

T Key cases

E Neckwear

E Ponytail holders

E Scarves

E Ties

E Wallets

T Watchbands

T Watches

E Aerobic and fitness clothing

E Aprons and clothing shields

T Athletic gloves

T Athletic pads

E Athletic supporters

B

E Backpacks and book bags

E Bandanas

E Baseball cleats

E Bathing suits, caps, and cover-ups

E Belts

E Bibs

E Blouses

E Boots (except ski or fishing boots)

E Bowling shoes (purchased)

T Bowling shoes (rented)

E Bras

T Briefcases

C

T Checkbook covers (separate from wallets)

T Chest protectors

E Cleated and spiked shoes

T Cloth, lace, knitting yarns, and other fabrics

T Clothing repair items, such as thread, buttons, tapes, iron-on patches, or zippers

E Coats

E Coin purses

T Corsages and boutonnieres

T Cosmetic bags

E Costumes

E Coveralls

T Crib blankets

D-E

E Diaper bags

T Diving suits (wet and dry)

E Dresses

T Duffel bags

T Elbow pads

F

E Fanny packs

T Fins

T Fishing boots (waders)

E Fishing vests (non-flotation)

T Football pads

E Formal clothing (purchased)

T Formal clothing (rented)

G

T Garment bags

T Gloves

T Baseball

T Batting

T Bicycle

E Dress (purchased)

E Garden

T Golf

T Hockey

E Leather

T Rubber

T Surgical

T Tennis

E Work

T Goggles

E Graduation caps and gowns

E Gym suits and uniforms

H

T Hard hats

E Hats and caps

T Helmets (baseball, football, hockey, motorcycle, sports)

E Hosiery and pantyhose, including support hosiery

E Hunting vests

I-J

T Ice skates

T In-line skates

E Jackets

E Jeans

K

T Key chains

T Knee pads

L

E Lab coats

E Leggings, tights, and leg warmers

E Leotards

E Lingerie

T Luggage

M-N

T Makeup bags

E Martial arts attire

O-P

E Overshoes and rubber shoes

T Pads (football, hockey, soccer, elbow, knee, shoulder)

T Paint or dust masks

E Pants

T Patterns

T Protective masks (athletic)

E Purses

R

E Raincoats, rain hats, and ponchos

T Rented clothing or footwear (e.g., uniforms, formal wear, and bowling shoes)

T Repair of wearing apparel

E Robes

T Roller blades

T Roller skates

S

E Safety clothing

T Safety glasses

E Safety shoes

E Scout uniforms

T Shaving kits and bags

E Shawls and wraps

T Shin guards and padding

E Shirts

E Shoe inserts and insoles

E Shoes (including athletic)

E Shoulder pads (e.g., dresses, jackets)

T Shoulder pads (e.g., football, hockey, sports)

E Shorts

T Ski boots (snow)

E Ski suits (snow)

T Skin diving suits

E Skirts

E Sleepwear (nightgowns and pajamas)

E Slippers

E Slips

E Socks

T Suitcases

E Suits, slacks, and jackets

T Sunglasses

E Suspenders

E Sweatbands

E Sweaters

T Swimming masks

E Swimsuits and trunks

T

E Ties (neckties, bow ties)

E Tuxedos (purchased)

U

T Umbrellas

E Underclothes

E Uniforms (work, school, and athletic - excluding pads)

V-W

E Vests

T Weight-lifting belts

T Wigs

(21) List of School Supplies and Their Taxable Status During the Holiday Period. The following is a list of school supplies and their taxable status during the holiday period if they are sold for $50 or less per item. T = Taxable, E = Exempt.

E Binders

T Books not otherwise exempt

E Cellophane (transparent) tape

E Colored pencils

E Compasses

E Composition books

E Computer disks (blank CDs only)

T Computer paper

E Construction paper

T Correction tape, fluid, or pens

E Crayons

E Erasers

E Folders

E Glue (stick and liquid)

E Highlighters

E Legal pads

E Lunch boxes

E Markers

T Masking tape

E Notebook filler paper

E Notebooks

E Paste

E Pencils, including mechanical and refills

E Pens, including felt, ballpoint, fountain, highlighters, and refills

E Poster board

E Poster paper

T Printer paper

E Protractors

E Rulers

E Scissors

E Staplers and staples (used to secure paper products)

(22) List of Learning Aids and Jigsaw Puzzles and Their Taxable Status During the Holiday Period. The following is a list of learning aids and jigsaw puzzles and their taxable status during the holiday period if they are sold for $30 or less per item. T = Taxable, E = Exempt.

E Electronic books

E Flash cards

E Interactive books

E Jigsaw puzzles

E Learning cards

E Matching games

E Memory games

E Puzzle books

E Search-and-find books

E Stacking or nesting blocks or sets

E Toys that teach reading or math skills

(23) List of Personal Computers and Related Accessories and Their Taxable Status During the Holiday Period. The following is a list of personal computers and related accessories, and their taxable status during the holiday period if they are sold for $1,500 or less per item. This is not an inclusive list. T = Taxable, E = Exempt.

E Cables for computers

E Calculators

E Car adaptors for laptop computers

T Cases for electronic devices (including electronic reader covers)

T CDs and DVDs (music, voice, prerecorded items)

T Cellular telephones (including smart telephones)

E Central processing units (CPU)

E Compact disk drives

E Computer for noncommercial home or personal use

E Desktop

E Laptop

E Tablet

T Computer bags

E Computer batteries

T Computer paper

E Computer towers consisting of a central processing unit, random-access memory, and a storage drive

T Computers designed and intended for recreation (games and toys)

T Copy machines and copier ink and toner

E Data storage devices (excludes those devices designed for use in digital cameras or other taxable items)

E Blank CDs

E Diskettes

E Flash drives

E Jump drives

E Memory cards

E Portable hard drives

E Storage drives

E Thumb drives

E Zip drives

T Digital cameras

T Digital media receivers

E Docking stations (for computers)

E Electronic book readers

T Fax machines (stand-alone)

T Furniture

T Game controllers (joy sticks, nunchucks)

T Game systems and consoles

T Games and gaming software (not including electronically delivered software)

E Hard drives

E Headphones (including earbuds)

E Ink cartridges (for computer printers)

E Keyboards (for computers)

E Mice (mouse devices)

E Microphones (for computers)

E Modems

E Monitors (except devices that include a television tuner)

E Motherboards

T Music players or accessories

E Personal digital assistant devices (except cellular telephones)

E Port replicators

E Printer cartridges

E Printers (including “all-in-one” models)

T Projectors

E RAM - random access memory

T Rented computers or computer-related accessories

E Routers

E Scanners

T Smart telephones

E Software (nonrecreational)

E Antivirus

E Database

E Educational

E Financial

E Word processing

E Speakers (for computers)

E Storage drives (for computers)

T Surge protectors

E Tablets

T Tablet cases or covers

T Televisions (including digital media receivers)

T Video game consoles

E Web cameras

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 212.08(20) FS. History-New 12-29-25.

Chapter 12A-3 TOURIST DEVELOPMENT TAX

Fla. Admin. Code R. 12A-3.001 Scope of Rules; Imposition of the Tax

History

• Rulemaking Authority 125.0104(3)(k), 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 125.0104, 125.0108, 212.03(1), (2), (3), (4), (5), (7) FS. History–New 3-27-78, Amended 4-16-78, 11-13-78, 5-28-85, Formerly 12A-3.01, Amended 7-29-91, 11-30-97, Repealed 5-9-13.

Fla. Admin. Code R. 12A-3.002 Taxable Status of Guests or Tenants on the Effective Date of the Levy of the Tax

History

• Rulemaking Authority 125.0104(3)(k), 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 125.0104, 212.03(1), (2), (3), (4), (5), (7) FS. History–New 3-27-78, Amended 5-28-85, Formerly 12A-3.02, Amended 11-30-97, Repealed 5-9-13.

Fla. Admin. Code R. 12A-3.006 Rents Involving Fractions of a Dollar; Computation of Tax

History

• Rulemaking Authority 125.0104(3)(k), 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 125.0104, 125.0108, 212.03(1), (2), (3), (4), (5), (7) FS. History–New 3-27-78, Amended 5-28-85, Formerly 12A-3.06, Amended 7-29-91, 3-21-95, 11-30-97, Repealed 5-9-13.

Chapter 12A-8 DADE COUNTY CONVENTION DEVELOPMENT TAX

Fla. Admin. Code R. 12A-8.001 Scope of Rules; Imposition of Tax

History

• Rulemaking Authority 212.0305(3)(f), 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.03(1), (2), (3), (4), (5), (7), 212.0305 FS. History–New 5-28-85, Formerly 12A-8.01, Amended 11-30-97, Repealed 5-9-13.

Fla. Admin. Code R. 12A-8.002 Rate of Tax

History

• Rulemaking Authority 212.0305(3)(f), 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.03(1), (2), (3), (4), (5), (7), 212.0305 FS. History–New 5-28-85, Formerly 12A-8.02, Amended 11-30-97, Repealed 5-9-13.

Chapter 12A-9 DUVAL COUNTY CONVENTION DEVELOPMENT TAX

Fla. Admin. Code R. 12A-9.001 Scope of Rules; Imposition of Tax

History

• Rulemaking Authority 212.0305(3)(f), 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.03(1), (2), (3), (4), (5), (7), 212.0305 FS. History–New 5-28-85, Formerly 12A-9.01, Amended 11-30-97, Repealed 5-9-13.

Fla. Admin. Code R. 12A-9.002 Rate of Tax

History

• Rulemaking Authority 212.0305(3)(f), 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.03(1), (2), (3), (4), (5), (7), 212.0305 FS. History–New 5-28-85, Formerly 12A-9.02, Amended 11-30-97, Repealed 5-9-13.

Chapter 12A-10 VOLUSIA COUNTY CONVENTION DEVELOPMENT TAXES

Fla. Admin. Code R. 12A-10.001 Scope of Rules; Imposition of Tax

History

• Rulemaking Authority 212.0305(3)(f), 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.03(1), (2), (3), (4), (5), (7), 212.0305 FS. History–New 5-28-85, Formerly 12A-10.01, Amended 11-30-97, Repealed 5-9-13.

Fla. Admin. Code R. 12A-10.002 Rate of Tax

History

• Rulemaking Authority 212.0305(3)(f), 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.03(1), (2), (3), (4), (5), (7), 212.0305 FS. History–New 5-28-85, Formerly 12A-10.02, Amended 11-30-97, Repealed 5-9-13.

Chapter 12A-12 SOLID WASTE FEES

Fla. Admin. Code R. 12A-12.001 New Tire Fee

(1)(a) Section 403.718, F.S., imposes a fee at the rate of $1 for each new motor vehicle tire sold at retail in this state.

(b) The fee is imposed upon the dealer selling the new motor vehicle tire and not upon the purchaser.

(c) The fee is applicable even when the sale of a new motor vehicle tire is to any governmental agency or any organization that holds a Florida Consumer’s Certificate of Exemption.

(d) The fee is required to be stated separately on the sales invoice or other tangible evidence of sale given to the purchaser.

(e) The fee is to be included in the price upon which sales or use tax or any other tax imposed by Chapter 212, F.S., is computed, even though the fee is listed as a separate item on the invoice.

(2) For purposes of this rule:

(a) “Motor vehicle” means an automobile, motorcycle, truck, trailer, semitrailer, truck tractor and semitrailer combination, or any other vehicle operated in this state, used to transport persons or property, and propelled by power other than muscular power. Any vehicle that has been designed for the primary purpose of carrying multiple passengers in addition to a driver or operator is considered as being used to transport persons. Any vehicle that has been designed for the primary purpose of carrying freight, baggage or bulk materials or bulk liquids is considered as being used to transport property.

1. The term motor vehicle also includes:

a. All-terrain vehicles or ATVs, as defined by Section 317.0003, F.S.

b. Golf carts, as defined by Section 320.01, F.S.

c. Trucks defined as “goats” by Section 320.08, F.S.

d. Utility vehicles, as defined by Section 320.01, F.S.

2. The term motor vehicle specifically does not include:

a. Bicycles.

b. Electric personal assistive mobility devices, commonly known as Segways, as defined by Section 316.003, F.S.

c. Farm tractors, as provided by Section 320.51, F.S.

d. Farm trailers, as provided by Section 320.51, F.S.

e. Forklift trucks, motorized pallet trucks, or other similar industrial equipment used in warehouse or supply yard operations.

f. Mopeds, as defined by Section 320.01, F.S.

g. Racing vehicles that run exclusively at a “closed-course motorsport facility,” as defined by Section 549.09, F.S., or at a “motorsports entertainment complex,” as defined by Section 549.10, F.S.

h. Special mobile equipment, as defined by Section 316.003, F.S., such as traction engines, road rollers, motor graders, haulers, backhoes, wheel loaders, or other similar heavy-duty vehicles requiring specialized off-the-road tires or continuous tracks.

i. Vehicles that are designed with the specific primary purpose of performing work and are not intended to transport persons or property, such as aircraft pushback tractors or riding mowers, regardless of the fact that an operator or materials are also being carried during the performance of the work.

j. Wheelchairs, including powered models.

(b) “New tire” or “new motor vehicle tire” is one that has never been used in the movement of a motor vehicle, regardless of the time that has elapsed since the tire was manufactured. A tire is not “new” for purposes of this rule if it has been so used, including a tire that has been used but has been recapped or retreaded. The terms include the original retail sale of a spare tire as a component part of a new motor vehicle.

(c) The term “sales tax resale certificate” means an Annual Resale Certificate issued by a dealer to make tax exempt purchases for the purposes of resale, as provided in Rule 12A-1.039, F.A.C.

(d) “Tire” means a continuous solid or pneumatic rubber covering encircling the wheel of a motor vehicle.

(3)(a) The new tire fee imposed by Section 403.718, F.S., applies to retail sales of new motor vehicle tires, whether sold separately or as a component part of a new or used motor vehicle sold at retail in Florida.

(b) Retail sales of new motor vehicles are subject to the fee.

(c) Retail sales of used motor vehicles are considered as having been made with used tires and are not subject to the fee unless the sales invoice indicates that a new tire or tires have been installed by the dealer prior to sale.

(4)(a) A motor vehicle dealer can purchase tires exempt from the fee as a sale for resale by presenting a sales tax resale certificate to the seller of the tires. If the motor vehicle dealer subsequently withdraws any such tire from inventory to use on the dealer’s own vehicle, to give away, or for any purpose except for resale, the motor vehicle dealer will owe the fee at the time the tire is withdrawn from inventory. If the motor vehicle dealer sells the tire at retail, whether separately or installed on a motor vehicle, that sale will be subject to the fee. If the motor vehicle dealer resells the tire to a dealer who presents a sales tax resale certificate, no fee will be due on that transaction.

(b) Motor vehicle dealers that exclusively sell used motor vehicles may elect to pay the fee to the tire wholesaler on the purchase of tires instead of purchasing tires exempt from the tire fee. If the used motor vehicle dealer elects to do so, the dealer must pay the tire fee to the tire wholesaler on all its purchases of tires. For the purpose of the tire fee only, the wholesale tire dealer is to treat the sale as a retail sale and must separately state the tire fee on the sales invoice to the used motor vehicle dealer. On subsequent retail sales by the used motor vehicle dealer, the dealer must state in the contract or on the sales invoice to the purchaser that the applicable tire fee has been previously paid.

(5) A sale to a motor vehicle leasing company of a new motor vehicle tire or a vehicle of which a new motor vehicle tire is a component part is not a retail sale for purposes of the fee when the leasing company gives the seller a sales tax resale certificate. Instead, the fee is payable by the leasing company when it first puts the vehicle into use in this state.

(6)(a) When a sale of a new tire, upon which the fee has been paid, is cancelled or the tire is returned to the seller, and the sale price is refunded in full to the purchaser, the dealer may take a credit for the fee previously paid.

(b) If, instead of refunding the purchase price of the tire, the customer is given a new tire in exchange for the tire that was returned, the dealer cannot take credit for the fee on the returned tire, but no fee is due on the new tire that is given in exchange.

(c) If the purchaser of a new tire who returns it to the dealer is given a partial refund, based on mileage or wear on the tire, the dealer cannot take credit for the fee previously paid.

(d) If the purchaser of a new tire who returns it is not given another new tire in exchange but, instead, is given a credit in partial payment on a new tire, the dealer is not allowed a credit for the fee previously paid and must pay a fee on the sale of the new tire for which a partial credit was given.

(7)(a) When there is a sale of a new tire that can either be used on a “motor vehicle,” or on a farm tractor, farm trailer, or other equipment that is specifically excluded from that definition, it will be presumed to be purchased for use on a “motor vehicle” unless the purchaser gives to the seller at the time of purchase a certificate to the effect that the new tire will be used on a farm tractor, farm trailer, or other equipment that is specifically excluded from that definition. The exemption certificate must be retained by the selling dealer until the fee imposed under Section 403.718, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(b) The following is a suggested exemption certificate to be completed by a purchaser and presented to the seller:

EXEMPTION CERTIFICATE

TIRE FEE

The undersigned hereby certifies that the new tire(s) listed on the attached sales invoice or purchase order will be used exclusively on the following type of vehicle or equipment, which is excluded from the definition of “motor vehicle,” as provided by paragraph 12A-12.001(2)(a), F.A.C.:

_____ Farm tractor

_____ Farm trailer

_____ Other (specify) _____

I understand that if I fraudulently issue this certificate to evade the payment of the fee imposed on a new tire I will be liable for payment of the fee, plus a penalty of 200% of the fee, and may be subject to conviction of a third degree felony.

Under the penalties of perjury, I declare that I have read the foregoing Exemption Certificate and the facts stated in it are true.

Purchaser’s Name _______________________

By (Purchaser’s Signature) ________________

Date _______________

History

• Rulemaking Authority 212.07(1)(b), 212.18(2), 213.06(1), 403.718(3)(b) FS. Law Implemented 212.07(1)(b), 212.12, 212.17(1)(a), 403.717, 403.718 FS. History–New 1-2-89, Amended 10-16-89, 12-16-91, 3-20-96, 6-19-01, 10-29-13.

Fla. Admin. Code R. 12A-12.0011 Battery Fee

(1)(a) Section 403.7185, F.S., imposes a fee at the rate of $1.50 for each new or remanufactured lead-acid battery sold at retail in this state.

(b) The fee is imposed upon the dealer selling the new or remanufactured lead-acid battery and not upon the purchaser.

(c) The fee is applicable even when the sale of a new or remanufactured lead-acid battery is to any governmental agency or any organization that holds a Florida Consumer’s Certificate of Exemption.

(d) The dealer is not required to state the fee separately on the invoice to the purchaser. However, if the fee is separately stated on the invoice, the fee must be included in the price upon which any tax imposed by Chapter 212, F.S., is computed.

(2) For purposes of this rule:

(a) A “lead-acid battery” is a starting, marine, or deep-cycle battery that is designed for use in motor vehicles, vessels, and aircraft.

(b) “Motor vehicle” means motor vehicles as provided in Rule 12A-12.001, F.A.C.

(c) A “new” lead-acid battery is one that has never been used in the operation of a motor vehicle, vessel, or aircraft, regardless of the time that has elapsed since the battery was manufactured.

(d) A “remanufactured” lead-acid battery is one that has gone through an industrial process including the removal of sulfation to restore the battery’s original electrical capacity. A remanufactured battery is not a used battery that has only been recharged.

(e) The term “resale certificate” or “sales tax resale certificate” means an Annual Resale Certificate issued by a dealer to make tax exempt purchases for the purposes of resale, as provided in Rule 12A-1.039, F.A.C.

(3)(a) Section 403.7185, F.S., imposes a fee on retail sales of new or remanufactured lead-acid batteries, whether sold separately or as a component part of a motor vehicle, vessel, or aircraft.

(b) Retail sales of new motor vehicles, vessels, or aircraft are subject to the fee.

(c) Retail sales of used motor vehicles, vessels, or aircraft are considered as having been made with a used battery and are not subject to the fee, unless the sales invoice indicates that a new or remanufactured battery has been installed by the dealer prior to sale.

(4)(a) The fee imposed by Section 403.7185, F.S., is applicable to retail sales of lead-acid batteries, even if that battery is purchased for other uses.

(b) Example: A person goes to an auto parts store and purchases an automobile battery for use with an emergency electrical generator. The fee will be imposed on the sale of the battery since it was designed for use in a motor vehicle.

(c) Example: A rural farm supply store does not have the exact model and size battery recommended by the manufacturer for a farmer’s tractor. However, the farm supply store does have an automobile battery that will be able to start the farmer’s tractor. The fee will be imposed on the sale of the battery, even though it will be installed in a vehicle that is not defined as a motor vehicle.

(5)(a) The sale of a new or remanufactured lead-acid battery to a dealer for the purpose of resale is not subject to the fee imposed by Section 403.7185, F.S. A resale certificate given to the seller for sales tax purposes will also be sufficient evidence that the sale was not a retail sale for purposes of the fee.

(b)1. If a dealer purchases a new or remanufactured battery for resale, and later withdraws the battery from inventory to use in the dealer’s own motor vehicle, vessel, aircraft, machinery, or other equipment; to give away; or for any purpose other than for resale, that dealer will owe the fee at the time the battery is withdrawn from inventory.

2. Example: Motor vehicle Dealer A purchases a new or remanufactured lead-acid battery for installation in a used vehicle. No fee is payable by the battery seller, when Dealer A extends a sales tax resale certificate. Dealer A will not owe the fee when the battery is installed into the vehicle that is to be sold, but the dealer will owe the fee when the vehicle is sold at retail. However, if Dealer A sells the vehicle, in which the battery has been installed, to motor vehicle Dealer B to sell at retail, the fee will not be payable by Dealer A when Dealer B extends a resale certificate. The fee will be payable by Dealer B when that dealer subsequently sells the vehicle at retail.

(c) Dealers that exclusively sell used motor vehicles, used vessels, or used aircraft may elect to pay the battery fee to the battery wholesaler on the purchase of batteries instead of purchasing batteries exempt from the fee. If the dealer elects to do so, the dealer must pay the fee to the battery wholesaler on all its purchases of batteries. The motor vehicle, vessel, or aircraft dealer is not required to indicate on the sales invoice to its retail customer that the applicable battery fee has been paid.

(6) A sale to a leasing company of a new or remanufactured lead-acid battery, or motor vehicle, vessel, or aircraft in which the lead-acid battery is a component part, is not a retail sale when the leasing company gives the seller a sales tax resale certificate. Instead, the fee is payable by the leasing company when it first puts the motor vehicle, vessel, or aircraft into use in this state.

(7)(a) When a sale of a new or remanufactured battery upon which the fee has been paid is cancelled or the battery is returned to the seller, and the sales price is refunded in full to the purchaser, the dealer is not required to report the sale and remit the fee, or, if previously remitted, may take a credit for the fee previously paid.

(b) If, instead of refunding the purchase price of the new or remanufactured battery, the customer is given a new battery in exchange for the battery that was returned, the dealer cannot take credit for the fee that was paid on the sale of the returned battery, but no fee is due on the battery that was given in exchange.

(c) If the purchaser of a new or remanufactured battery in a sale on which the fee is payable, returns it to the dealer and is given a partial refund, the fee is payable on this retail sale, and if it has already been remitted when the partial refund is given the dealer cannot take credit for the fee previously paid.

(d) If the purchaser of a new or remanufactured battery returns it and is not given another battery in exchange but, instead, is given a credit or partial payment on another lead-acid battery, the fee is payable on the original retail sale, and if it has already been remitted when the credit or partial payment is given the dealer is not allowed a credit for the fee previously paid and must pay a fee on the sale of the lead-acid battery for which a partial credit was given.

History

• Rulemaking Authority 212.07(1)(b), 212.18(2), 213.06(1), 403.7185(3)(b) FS. Law Implemented 212.07(1)(b), 212.12, 212.17(1)(a), 403.717(1)(b), (h), 403.7185 FS. History–New 10-16-89, Amended 12-16-91, 3-20-96, 4-2-00, 6-19-01, 10-29-13.

Fla. Admin. Code R. 12A-12.002 Newprint Fee

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1), 403.7195(2)(b) FS. Law Implemented 403.7195 FS. History–New 1-2-89, Amended 11-29-89, 3-17-93, 4-12-94, Repealed 3-20-96.

Fla. Admin. Code R. 12A-12.003 Registration

(1)(a) Every person desiring to engage in or conduct business in this state of making retail sales of new motor vehicle tires or lead-acid batteries must register with the Department of Revenue and obtain a certificate of registration for each place of business. Dealers who hold a valid certificate of registration, who at the time of registration for purposes of sales and use tax were not engaged in or conducting such business, are required to change their registration with the Department and register their new tax obligation at each existing place of business.

(b) Registration with the Department for purposes of making retail sales of new motor vehicle tires or lead-acid batteries is available by using one of the following methods:

1. Registering through the Department’s website at floridarevenue.com, using the Department’s eServices.

2. Filing a Florida Business Tax Application (Form DR-1, incorporated by reference in Rule 12A-1.097, F.A.C.) with the Department, as indicated on the registration form.

(c) A separate application is required for each place of business. If a business previously submitted Form DR-1 to the Department and holds an active certificate of registration or reemployment tax account, the business may use an Application for Registered Businesses to Add a New Florida Location (Form DR-1A, incorporated by reference in Rule 12A-1.097, F.A.C.) in the following circumstances:

1. To register an additional business location, or

2. To update a registered location that has moved from one Florida county to another.

(d) Each application submitted to the Department must contain sufficient information to facilitate the processing of the application.

(2) Any person who is not the holder of a valid certificate of registration, or whose registration has been cancelled by the Department, is prohibited by law from engaging in such a business; and no license from any authority within the State of Florida to engage in such a business may be issued to any such person.

History

• Rulemaking Authority 212.18(2), 213.06(1), 403.718(3)(b), 403.7185(3)(b) FS. Law Implemented 212.18(3), 403.718, 403.7185 FS. History–New 1-2-89, Amended 10-16-89, 12-16-91, 4-2-00, 4-17-03, 11-6-07, 1-17-18, 3-25-20.

Fla. Admin. Code R. 12A-12.004 Reporting and Remitting Fees

(1)(a) A Solid Waste and Surcharge Return (form DR-15SW, incorporated by reference in Rule 12A-16.008, F.A.C.) reporting fees imposed by Sections 403.718 and 403.7185, F.S., on new tires and lead-acid batteries sold at retail shall be filed with the Department. Except as provided in rule Chapter 12-24, F.A.C., the payment and the return must be delivered to the Department or be postmarked on or before the 20th day of the month following the date of sale to avoid penalty and interest for late filing. If the 20th day falls on Saturday, Sunday, or a legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For purposes of this rule, a legal holiday means a holiday that is observed by federal or state agencies as a legal holiday as this term is defined in Chapter 683, F.S. and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a Statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) When quarterly, semi-annual, or annual reporting is authorized by the Department pursuant to Section 212.11(1)(c), F.S., the fee is due the first day of the month following the authorized reporting period and becomes delinquent on the 21st day of that month. When a dealer is required to file the new tire fee and the lead-acid battery fee under a single account number on the same return, the dealer may not exceed the limitations provided in Section 212.11(1)(c), F.S., to be eligible to file on a quarterly, semi-annual, or annual basis.

(c) Any dealer who operates two or more places of business in a single county for which returns are required and who has obtained a county control reporting number from the Department for purposes of reporting sales and use tax must report the new tire fee and the lead-acid battery fee for all places of business located within a single county return using the county control reporting number.

(d) Any dealer who operates places of business in two or more counties for which returns are required and who has obtained a consolidated reporting number from the Department for purposes of reporting sales and use tax must report the new tire fee and the lead-acid battery fee for all places of business using the consolidated reporting number.

(e) For information on how to obtain a county control reporting number or a consolidated reporting number for purposes of sales and use tax, see subsection (1) of Rule 12A-1.056, F.A.C.

(f) Each dealer is required to file a return for each reporting period even when no fee is due for that reporting period.

(g) Electronic filing of payments and returns for reporting fees must be submitted to the Department, as provided in Rule Chapter 12-24, F.A.C., when:

1. Payment of the fee is required to be made by electronic means;

2. Any return for reporting fees is required to be submitted by electronic means; or

3. No fees are due with a return for reporting fees.

(2) The failure of any dealer to secure a tax return for reporting new tire and lead-acid battery fees does not relieve the dealer from the requirement to file a return or to remit fees due to the Department. The Department is not authorized to extend the time for any dealer to file any return or to pay any fee due.

(3) Persons who are required to make a return or to pay fees imposed by Sections 403.718 and 403.7185, F.S., and administered under Chapter 212, F.S., and fail to do so will be subject to penalties, as provided in Section 212.12(2), F.S., and to the interest imposed on deficiencies established under Section 213.235, F.S., and Rule 12-3.0015, F.A.C. Guidelines are provided in subsection (4) of Rule 12A-1.056, F.A.C.

History

• Rulemaking Authority 212.18(2), 213.06(1), 403.718(3)(b), 403.7185(3)(b) FS. Law Implemented 212.12(2), 213.235, 213.755, 403.718, 403.7185 FS. History–New 1-2-89, Amended 10-16-89, 12-16-91, 4-12-94, 3-21-95, 3-20-96, 4-2-00, 6-19-01, 4-17-03, 9-28-04, 7-28-15, 3-25-20.

Fla. Admin. Code R. 12A-12.005 Records and Auditing Requirements

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1), 403.718(3)(b), 403.7185(3)(b), 403.7195(2)(b) FS. Law Implemented 95.091(3)(a), 403.718, 403.7185, 403.7195 FS. History–New 1-2-89, Repealed 4-2-00.

Fla. Admin. Code R. 12A-12.007 General Administrative Procedures

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1), 403.718(3)(b), 403.7185(3)(b), 403.7195(2)(b) FS. Law Implemented 403.718(3)(a), 403.7185(3)(a), 403.7195(2)(a) FS. History–New 1-2-89, Amended 10-16-89, Repealed 4-2-00.

Chapter 12A-13 FEE ON THE SALE OR LEASE OF MOTOR VEHICLES

Fla. Admin. Code R. 12A-13.001 Scope of Rules

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 681.102(14), 681.117 FS. History–New 4-5-89, Amended 5-4-03, Repealed 5-9-13.

Fla. Admin. Code R. 12A-13.002 Collection and Remittance of Fee

(1) Each motor vehicle dealer licensed under Section 320.27, F.S., and each person engaged in the business of leasing motor vehicles, is required to collect a $2 fee from the consumer at the consummation of the sale of a motor vehicle or at the time of entry into a lease agreement for a motor vehicle. The term “motor vehicle” means those motor vehicles as defined in Section 681.102(14), F.S.

(2) All fees collected for motor vehicles that are titled and registered in this state must be remitted to the county tax collector or private tag agency.

(a) Each county tax collector is required to file a Motor Vehicle Warranty Remittance Fee Report (Form DR-35) and remit such fees to the Department at or within the time or times prescribed in Section 219.07, F.S.

(b) Each private tag agent is required to file a Motor Vehicle Warranty Remittance Fee Report (Form DR-35) and remit such fees to the Department at or within the times the private tag agent’s sales and use tax and return is due. See Rule 12A-1.056, F.A.C.

(3) All fees collected for motor vehicles sold or leased by motor vehicle dealers in this state for titling and registering outside this state must be remitted directly to the Department. Dealers are required to file a Motor Vehicle Warranty Remittance Fee Report with the Department and remit the collected fees monthly. Dealers who have not sold or leased a motor vehicle for titling and registering outside this state during the monthly reporting period are not required to file a report for that reporting period.

(4) Form DR-35, Motor Vehicle Warranty Fee Return (R. 01/17, Effective 01/17) (http://www.flrules.org/Gateway/reference.asp?No=Ref-07751) is hereby incorporated by reference in this rule. Form DR-35 is available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 219.07, 320.27(1)(c), 681.102(14), 681.117 FS. History–New 4-5-89, Amended 5-4-03, 9-28-04, 1-11-10, 5-9-13, 1-10-17, 12-29-25.

Fla. Admin. Code R. 12A-13.003 Distribution of Fees Remitted to the Department of Revenue

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 681.117 FS. History–New 4-5-89, Repealed 5-4-03.

Chapter 12A-14 APALACHICOLA BAY OYSTER SURCHARGE

Fla. Admin. Code R. 12A-14.001 Oyster Surcharge

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1), 370.07(3)(g) FS. Law Implemented 370.07(3) FS. History–New 10-16-89, Amended 3-20-96, Repealed 4-5-07.

Fla. Admin. Code R. 12A-14.002 Reporting and Remitting the Surcharge

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1), 370.07(3) FS. Law Implemented 212.12(2), 213.235, 213.755, 370.07(3) FS. History–New 10-16-89, Amended 3-21-95, 3-20-96, 4-2-00, 9-28-04, Repealed 4-5-07.

Fla. Admin. Code R. 12A-14.003 Records and Auditing Requirements

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) 370.07(3)(c) FS. Law Implemented 95.091(3), 212.13(2)(5), 212.14, 212.15, 213.29, 370.07(3)(c),(g) FS., s. 16, Chapter 99-208, L.O.F. History–New 10-16-89, Amended 4-2-00, Repealed 4-5-07.

Chapter 12A-15 DISCRETIONARY SALES SURTAX

Fla. Admin. Code R. 12A-15.001 Scope of Rules

(1) For the purpose of administering the Discretionary Sales Surtax (referred to as the Surtax, or Tax), all rules relating to Sales and Use Tax (Chapter 12A-1, F.A.C.) shall apply to the Surtax, except in those situations where rules relating to the Surtax have been issued to clarify specific statutory provisions.

(2) The list of counties levying the surtax is subject to frequent revision. An up-to-date listing of counties levying the surtax is available, without cost, by one or more of the following methods: 1) downloading Form DR-15DSS, Discretionary Sales Surtax information, updated annually, from the Department’s website at floridarevenue.com/taxes/rates; or, 2) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.054(2), (4) FS. History–New 12-11-89, Amended 11-16-93, 11-1-05, 6-14-22.

Fla. Admin. Code R. 12A-15.002 Surtax Brackets

History

• Rulemaking Authority 212.12(11), 212.18(2), 213.06(1) FS. Law Implemented 212.054, 212.055, 212.12(9), (10), (11) FS. History–New 12-11-89, Amended 8-10-92, 3-17-93, 12-13-94, 3-20-96, 6-19-01, 11-1-05, 6-1-09, Repealed 6-14-22.

Fla. Admin. Code R. 12A-15.003 Admissions; Tangible Personal Property; Services; Service Warranties; Transient Accommodations; Use Tax

(1) SCOPE.

(a) Section 212.054, F.S., provides for the imposition of discretionary sales surtaxes levied by a governing body of any county, as authorized in Section 212.055, F.S. This rule is intended to clarify the application of the surtaxes on admissions, sales and use of tangible personal property and services, leases, rentals, and licenses to use real property or transient accommodations, and other transactions.

(b) Rule 12A-15.0035, F.A.C. (Aircraft, Boats, Motor Vehicles, and Mobile Homes), governs the imposition of surtax on the sale, lease, rental, and use of any aircraft or boat that is required to be registered, licensed, titled, or documented in this state or by the United States Government and any motor vehicle or mobile home of a class or type that is required to be registered in this state.

(2) DEFINITION. For purposes of this rule, a “surtax county” means a county whose governing body levies a discretionary sales surtax pursuant to Sections 212.054 and 212.055, F.S.

(3) ADMISSIONS. When the event for which a taxable admission is charged is held within a surtax county, surtax is due at the rate imposed by the county where the event occurs. The seller of the admission to an event is required to collect surtax on the sales price or actual value of the admission, as provided in Section 212.04(1)(b), F.S., when the event is held within a surtax county.

(4) SALES OF TANGIBLE PERSONAL PROPERTY.

(a) A dealer who makes sales of tangible personal property, including tangible personal property sold through a marketplace or by remote sale, is required to collect surtax when the taxable item of tangible personal property is delivered within a surtax county. The dealer is required to collect surtax at the rate imposed by the county where the delivery occurs, whether the delivery is made directly by the dealer or by a manufacturer or wholesaler who delivers the property to the purchaser on behalf of the dealer. When the item of tangible personal property is delivered within a county not imposing a surtax, the dealer is not required to collect surtax.

1. Example: A dealer in County A (a county not imposing a surtax) sells a washing machine to the purchaser, who takes possession of the washing machine at the dealer’s location in County A. The purchaser then takes the washing machine to a location within County B (a county imposing a 1% surtax). The sales transaction occurs in County A. The selling dealer is required to collect sales tax on the sales price of the washing machine at the rate of 6% and is not required to collect surtax. No surtax is due by the purchaser or the seller when the washing machine is taken to County B.

2. Example: A dealer in County A (a county imposing a 1% surtax) sells a washing machine to a purchaser and delivers the washing machine to a location in County B (a surtax county imposing a 1/2% surtax). The sales transaction occurs in County B. The selling dealer is required to collect sales tax and surtax on the sales price of the washing machine at the rate of 6 1/2% (6% state sales tax and 1/2% surtax).

3. Example: A retail dealer of office equipment in County A (a county imposing a 1/2% surtax) sells office equipment to a customer in County B (a county imposing a 1% surtax). The retail dealer in County A has the out-of-state manufacturer of the office equipment deliver the equipment to the customer in County B. The transaction occurs in County B, where the delivery to the customer is made. The retail dealer in County A is required to collect sales tax and surtax on the sales price of the office equipment at the rate of 7% (6% state sales tax and 1% surtax).

(b) When a florist who takes the original customer order to sell tangible personal property is located within a surtax county, the florist is required to collect surtax at the rate imposed where the florist is located. Florists are not required to collect surtax when they deliver tangible personal property to a location within a surtax county for another florist who received the original customer order.

(c) The sale of subscriptions to a newspaper, newsletter, magazine, or other periodical that is delivered to the customer by a carrier or by means other than by mail, such as home delivery, is subject to surtax when delivery of the publication is made to a location within a surtax county. The sales of subscriptions to periodicals that are delivered to a customer by mail are exempt. See Rule 12A-1.008, F.A.C., for the requirements to collect and remit sales tax on sales of periodicals and sales of subscriptions to periodicals.

(5) SERVICES.

(a) When a dealer sells a taxable service, and delivery of the service, or tangible personal property representing a taxable service, is made to a location within a surtax county, the dealer is required to collect surtax at the rate imposed in the county where the services are provided or where the tangible personal property representing the services is delivered. If there is no reasonable evidence of delivery of a service, the sale of a service occurs in the county in which the purchaser accepts the invoice for services rendered.

(b)1. Example: A dealer in County A (a county not imposing a surtax) sells nonresidential cleaning services to a purchaser in County B (a surtax county imposing a 1% surtax) and performs those services at a location in County B. The service transaction occurs within County B. The selling dealer is required to collect sales tax and surtax on the sales price of the service at the rate of 7% (6% state sales tax and 1% surtax).

2. Example: A dealer in County A (a county imposing a 1/2% surtax) sells burglar monitoring services to a location in County B (a surtax county imposing a 1% surtax). The burglar monitoring service monitors the alarms at the purchaser’s location in County B. The service transaction occurs within County B. The dealer is required to collect sales tax and surtax on the sales price of the service at the rate of 7% (6% state sales tax and 1% surtax).

3. Example: A dealer in County A (a county imposing a 1% surtax) sells armored car service to a bank in County B (a surtax county imposing a 1/2% surtax). The armored car service is provided to the bank’s branches located in different counties and to the main bank. Under this example, the armored car service provider cannot reasonably allocate the service provided to each county. The main bank located in County B receives the invoice for services rendered. Therefore, the service transaction occurs within County B. The dealer is required to collect sales tax and surtax on the sales price of the services at the rate of 6 1/2% (6% state sales tax and 1/2% surtax).

(6) SERVICE WARRANTIES.

(a) Any dealer who receives consideration for the issuance of a service warranty from the agreement holder is required to collect surtax at the rate imposed by the county where the tangible personal property indemnified by the service warranty is delivered or located.

(b)1. Example: The person receiving consideration for a service warranty is located in County A (a county imposing a 1% surtax). The service warranty covers a refrigerator sold in County A and delivered in County B (a county imposing a 1.5% surtax). The person receiving consideration for the service warranty is required to collect sales tax and surtax on the sales price of the service warranty at the rate of 7.5% (6% state sales tax and 1.5% surtax).

2. Example: The person receiving consideration for the issuance of a service warranty is located in County A (a county imposing a 1% surtax). The service warranty covers a television located within County B (a county not imposing the surtax). The person receiving consideration for the service warranty is required to collect sales tax on the sales price of the service warranty at the rate of 6%. The person receiving the consideration is not required to collect surtax.

3. Example: The person receiving consideration for the issuance of a service warranty is located in County A (a county not imposing a surtax). The service warranty covers a motor vehicle, and the resident address of the owner identified on the title document is located in County B (a county imposing a 1% surtax). The person receiving consideration for the service warranty is required to collect sales tax and surtax on the sales price of the service warranty at the rate of 7% (6% state sales tax and 1% surtax).

(7) ELECTRIC AND GAS UTILITIES.

(a) When a dealer sells electricity or natural or manufactured gas to a consumer located within a surtax county, the dealer is required to collect surtax at the rate imposed by the county where the consumer is located. See Rule 12A-1.060, F.A.C.

(b) Any dealer who provides electricity or natural or manufactured gas to consumers located within a surtax county is required to register for sales tax purposes in each surtax county in which its consumers are located.

(8) TRANSIENT ACCOMMODATIONS.

(a) When any transient accommodation that is leased, rented, or upon which a license for use is granted is located within a surtax county, surtax on the rental or license payment is due at the rate imposed within the surtax county.

(b) The owner of a transient accommodation that is leased, rented, or upon which a license for use is granted or the owner’s representative is required to collect surtax at the rate imposed by the surtax county where the transient accommodation is located.

(9) USE TAX.

(a) Any person who is not required to be a registered dealer but who owes use tax on tangible personal property purchased out-of-state, in another country, or through a remote sale is not required to pay surtax when paying the applicable use tax to the Department.

(b) Any person who purchases tangible personal property and pays the selling dealer the applicable sales tax and surtax due at the time of sale is not required to pay any additional surtax when the item of tangible personal property is later used within a surtax county imposing a surtax at a rate higher than the rate imposed at the time of sale.

(c) Any person, located within a surtax county, who owes use tax on newspapers, magazines, or other publications it produces for its own use or purchases without paying the applicable sales tax due is required to accrue and remit sales tax and surtax at the rate imposed by the surtax county where the publications are used. See Rule 12A-1.008, F.A.C.

(d) A dealer who is registered with the Department and who is required to pay use tax directly to the Department must pay surtax in the following manner:

1. When tangible personal property is purchased, leased, or rented outside Florida for use in a surtax county, the dealer is required to pay surtax at the rate imposed by the surtax county where the tangible personal property is used.

2. When a dealer is required to pay use tax on services and when the primary benefit of the service is used or consumed within a surtax county, the dealer is required to pay surtax at the rate imposed by that surtax county, as provided in subsection 12A-1.0161(2), F.S.

3. For surtax due on the fabrication of items of tangible personal property by real property contractors for use in performing contracts, see Rule 12A-15.008, F.A.C.

(e)1. Example: A purchaser of tangible personal property in County A (a surtax county imposing a 1% surtax) has received authority from the Department to self-accrue and remit the state sales and use tax directly to the Department. The purchaser issues a copy of its direct pay permit to the seller of the property relieving the seller from the responsibility of collecting and remitting state sales tax on the transaction. The purchaser must self-accrue and pay sales tax and surtax at the rate of 7% (6% state use tax and 1% surtax).

2. Example: A dealer in County A (a surtax county imposing a 1% surtax) purchases office supplies from an out-of-state dealer that is not registered with Florida to collect sales tax. The purchasing dealer is required to pay use tax and surtax at the rate of 7% (6% state use tax and 1% surtax).

3. Example: A dealer purchases office supplies at the selling dealer’s location in County A (a county not imposing a surtax) and takes possession of the supplies at the dealer’s location. The dealer pays the applicable 6% sales tax to the selling dealer. The purchaser immediately transports the office supplies to the purchaser’s business location in County B (a county imposing a 1% surtax). Florida sales tax has been properly collected on the office supplies, and no use tax is due; therefore, no additional surtax is due when the office supplies are used by the purchaser in the surtax county.

History

• Rulemaking Authority 212.0596(3), 212.18(2), 213.06(1) FS. Law Implemented 212.04(1), 212.05(1), 212.0506, 212.054, 212.055, 212.0596, 212.06(1), (2), (4), (6), (8), (10), 212.07(8), 212.12, 212.18(3), 212.183, 213.053 FS. History–New 12-11-89, Amended 1-30-91, 5-12-92, 8-10-92, 11-16-93, 3-20-96, 6-19-01, 10-2-01, 4-17-03, 5-28-06, 6-14-22, 12-29-25.

Fla. Admin. Code R. 12A-15.0035 Aircraft, Boats, Motor Vehicles, and Mobile Homes

(1) SCOPE. This rule is intended to provide guidelines regarding the application of surtaxes imposed on the sale, purchase, or transfer of title of any aircraft, boat, mobile home, motor vehicle, or other vehicle subject to the discretionary sales surtax imposed under Sections 212.054 and 212.055, F.S.

(2) TITLE CERTIFICATE, LICENSE, OR REGISTRATION.

(a) No title certificate may be issued on any aircraft, boat, mobile home, motor vehicle, or other vehicle, or, if no title certificate is required by law, no license or registration may be issued for any aircraft, boat, mobile home, motor vehicle, or other vehicle by any state agency unless there is filed with the application for title certificate or license or registration a receipt evidencing the payment of the applicable surtax issued by:

1. Any authorized aircraft, boat, mobile home, or motor vehicle dealer;

2. Any County Tax Collector;

3. Any licensed Private Tag Agency;

4. The Department of Highway Safety and Motor Vehicles; or

5. The Department of Revenue or its designated agents.

(b) Sales, purchases, and transfers of title submitted by persons who are not required to be registered as a dealer to any County Tax Collector, licensed Private Tag Agency, or the Department of Highway Safety and Motor Vehicles are subject to the surtax on the first $5,000 on all transfers submitted on or after the effective date of a county imposed surtax.

(3) DEFINITIONS. For purposes of this rule, the following definitions will be used:

(a) “Aircraft or boat” means an aircraft or boat of a class or type that is required to be registered, licensed, titled, or documented in this state or by the United States government.

(b) “Mobile home, motor vehicle, or other vehicle” means a mobile home, motor vehicle, or other vehicle of a class or type that is required to be registered in this state or in any other state.

(c) “Surtax county” means a county whose governing body levies a discretionary sales surtax pursuant to Sections 212.054 and 212.055, F.S.

(4) AIRCRAFT AND BOATS.

(a)1. A registered aircraft or boat dealer who makes a sale of an aircraft or boat is required to collect surtax when the aircraft or boat is delivered to a location within a surtax county. The dealer is required to collect surtax at the rate imposed by the county where the delivery occurs. When the aircraft or boat is delivered within a county not imposing a surtax, the selling dealer is not required to collect surtax.

2. The sale of a boat and the corresponding boat trailer identified as a motor vehicle, as defined in Section 320.01(1), F.S., to the same purchaser, at the same time, and included in the same invoice, is deemed to occur in the county where the purchaser resides, as identified on the registration or title documents for the boat and the boat trailer. The dealer is required to collect surtax at the rate imposed by the county where the residence address of the purchaser is located.

(b)1. When the owner imports an aircraft or boat into a surtax county for use, consumption, distribution, or storage in that county, the aircraft or boat is subject to the surtax imposed by that county. The surtax shall be collected from the owner at the time of titling, registration, licensing, or documenting of the aircraft or boat, irrespective of whether such titling, registration, licensing, or documenting occurs in that surtax county.

2.a. A credit against any Florida use tax and surtax due on the use of an aircraft or boat is allowed to any purchaser who provides documentary evidence that a like tax has been lawfully imposed on the sale or use of the aircraft or boat and has been paid to another state, territory of the United States, or the District of Columbia. The credit allowed shall be the amount of legally imposed like tax paid to the other state, territory of the United States, or the District of Columbia. When the applicable tax credit is equal to or greater than the amount of tax or surtax due on the use of the aircraft or boat in a surtax county, no additional surtax is due. When the tax is paid to another state, territory of the United States, or District of Columbia is greater than the Florida sales tax and surtax due, no refund is due from the State of Florida.

b. No credit is allowed for any taxes paid to a foreign country.

3.a. No additional surtax is due on any aircraft or boat, except as provided in subparagraph b., used outside a surtax county for 6 months or longer before being imported into that surtax county. It is presumed that the aircraft or boat was not purchased for use in that surtax county, when the aircraft or boat is used outside that county for 6 months or longer before being imported into that county.

b. Any boat imported into Florida for which a saltwater fishing license fee is required to be paid pursuant to Section 372.57(7), F.S., for the boat or the captain, for the purpose of taking, attempting to take, or possessing any marine fish for noncommercial purposes, such as sport or pleasure fishing, is subject to use tax on an amount of the purchase price of the boat, based on a percentage provided in Section 212.06(8)(b), F.S. When the boat is licensed within a surtax county, the taxable amount of the purchase price is subject to surtax at the rate imposed by that surtax county.

(c)1. Example: A dealer located in County A (a county imposing a 1% surtax) sells a boat to a purchaser who resides in County B (a county imposing a 1/2% surtax). The purchaser takes possession of the boat at the dealer’s location in County A. The dealer is required to collect sales tax and surtax at the rate of 7% (6% state tax and 1% surtax). The purchaser immediately takes the boat to County B for storage and use in County B. No additional surtax is required to be paid when the boat is registered for use in County B, because a surtax greater than the rate imposed in County B has been paid.

2. Example: A purchaser who resides in County A (a county not imposing the surtax) purchases a boat in County A from an individual who is not a registered boat dealer. The purchaser takes possession of the boat in County A. The purchaser immediately takes the boat to County B (a county imposing a 1/2% surtax) to be used in County B. A use transaction occurs in County B. The purchaser is required to pay sales tax and surtax at the rate of 6 1/2% (6% state tax and 1/2% surtax) to any County Tax Collector or Licensed Private Tag Agent.

3. Example: A purchaser who resides in County A (a county imposing a 1/2% surtax) purchases a boat and uses the boat in County A. Nine months after the date of purchase, the purchaser moves the boat to County B (a county imposing a 1% surtax) for storage and to be used in County B. No additional surtax is due, because the boat was used in County A for 6 months or longer before being imported for use in County B.

(5) MOBILE HOME, MOTOR VEHICLE, OR OTHER VEHICLE.

(a) A registered mobile home, motor vehicle, or other vehicle dealer who makes sales of any mobile home or vehicle is required to collect surtax when the residence address of the purchaser identified on the registration or title document for the mobile home or vehicle is located within a surtax county. The dealer is required to collect surtax at the rate imposed by the county where the residence address of the purchaser is located. When the residence address of the purchaser is located within a county not imposing a surtax, the dealer is not required to collect a surtax.

(b) When the purchaser of any mobile home, motor vehicle, or other vehicle is a resident of a surtax county, surtax is due on the purchase at the rate imposed by the county of residence. The address appearing on, or to be recorded on, the registration document will determine the residence address of the purchaser. The surtax is required to be collected from the purchaser incident to the titling, registration, or documenting of the mobile home or vehicle, irrespective of whether such titling, registration, or documenting occurs in the surtax county.

(c)1. When mobile home, motor vehicle, or other vehicle that is required to be registered in this state is imported from another state into a surtax county for use, consumption, distribution, or storage within the surtax county, the mobile home or vehicle is subject to surtax when the user resides within the surtax county. The surtax is required to be collected from the user incident to the titling, registration, or documenting of the mobile home or vehicle, irrespective of whether such titling, registration, or documenting occurs in the surtax county.

2.a. A credit against any Florida use tax and surtax due on the use of any mobile home, motor vehicle, or other vehicle is allowed to any purchaser who provides documentary evidence that a lawfully imposed tax on the sale or use of the mobile home or vehicle has been paid to another state, territory of the United States, or the District of Columbia. The credit allowed shall be the amount of legally imposed tax paid to the other state, territory of the United States, or the District of Columbia. When the applicable tax credit is equal to or greater than the amount of tax or surtax due on the use of the mobile home or vehicle in a surtax county, no additional surtax is due. When the tax paid to another state, territory of the United States, or District of Columbia is greater than the Florida sales tax and surtax due, no refund is due from the State of Florida.

b. No credit is allowed for any taxes paid to a foreign country.

3. No additional surtax is due on any mobile home, motor vehicle, or other vehicle used outside a surtax county for 6 months or longer before being imported into that county. It is presumed that the mobile home or vehicle was not purchased for use in that surtax county, when the mobile home or vehicle is used outside that county for 6 months or longer before being imported into that county.

(d)1. Example: A mobile home dealer in County A (a county not imposing a surtax), sells a mobile home for $12,599. The residence address of the purchaser on the title document is in County B (a county imposing a 1/2% surtax). The transaction occurs in County B. The selling dealer is required to collect sales tax and surtax at the rate of 6 1/2% (6% state tax and 1/2% surtax) on the first $5,000 of the sales price and sales tax at the rate of 6% on the amount of the sales price in excess of $5,000.

2. Example: A person purchases a motor vehicle in Alabama for $7,500, and pays $150 state sales tax and $75 local sales tax for a total tax of $225 to the State of Alabama. Within 6 months from the date of purchase, the purchaser imports the vehicle into Florida for use in County A (a county imposing a 1/2% surtax). The purchaser’s residential address on the registration document is located in County A. The use transaction occurs in County A. The amount of tax due prior to deducting the like tax paid in Alabama is $475 [($7,500 x .06) + ($5,000 x .005)]. Even though the local tax paid in Alabama exceeds the surtax due in County A, the total amount of like tax paid in Alabama will be allowed as a credit against the Florida use tax and surtax due in County A. A credit of $225 tax paid in Alabama will be allowed. The purchaser is required to pay $250 in tax and surtax due [$475 Florida tax and surtax due – $225] to any County Tax Collector or licensed Private Tag Agent when registering the vehicle in this state.

3. Example: A person purchases, titles, and registers a motor vehicle in Great Britain and pays the appropriate taxes imposed in Great Britain. One year later, the purchaser imports the vehicle into Florida for use in County A (a county imposing a 1% surtax). The purchaser’s address on the registration document is located within County A. The use transaction occurs in County A. The purchaser must pay Florida use tax and surtax due on the first $5,000 of the taxable amount and use tax at the rate of 6% on the taxable amount in excess of $5,000.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented, 212.05(1), 212.054, 212.055, 212.06(4), (6), (7), (8), (10), 212.18(3) FS. History–New 4-17-03, Amended 2-20-25.

Fla. Admin. Code R. 12A-15.004 Specific Limitations

(1) SCOPE. This rule is intended to provide guidelines regarding the limitation for the sales amount above $5,000 provided for any item of tangible personal property subject to the discretionary sales surtax imposed under Sections 212.054 and 212.055, F.S. For the application of the limitation to the fabrication of items used in the performance of a real property contract, see Rule 12A-15.008, F.A.C.

(2)(a) The surtax does not apply to the sales amount above $5,000 on any item of tangible personal property. However, the surtax does apply to the first $5,000 of the sales amount on the sale, use, lease, rental, or license to use any item of tangible personal property, including electric power or energy. The surtax applies, without limitation, to sales of admissions; sales and uses of services; sales of service warranties; charges for prepaid calling arrangements; leases, rentals, and licenses to use transient accommodations; leases or rentals of parking or storage space for motor vehicles in parking lots or garages, docking or storage space in boat docks and marinas, and tie-down or storage space for aircraft; and all other transactions subject to the discretionary sales surtax.

(b) Each lease or rental payment made, or contracted to be paid, for the lease or rental of tangible personal property by a lessee or renter represents one taxable transaction. The surtax applies to the first $5,000 of the lease or rental payment when the lease or rental payment is due. Liability for the immediate payment of the tax on all the payments required under the lease or rental does not arise at the time of the execution of the lease or rental.

(c)1. Example: A motor vehicle dealer sells a vehicle for $12,000 to a purchaser whose address on the registration or title document is in a county imposing the surtax. The first $5,000 of the sales amount is subject to the surtax and the amount over $5,000 (i.e., $7,000) is not subject to the surtax.

2. Example: ABC, Inc., a consumer of electric power, is located within a county imposing the surtax. The consumer (a commercial account) receives a bill in the amount of $6,700. The first $5,000 of the sales amount is subject to the surtax and the amount over $5,000 (i.e., $1,700) is not subject to the surtax.

3. Example: A security company provides security services to a shopping mall located in a surtax county for $8,000 a month. The entire monthly charge for security services (i.e., $8,000) is subject to the surtax, since the $5,000 limitation only applies to items of tangible personal property.

(3) When multiple items of tangible personal property are sold by a dealer to the same purchaser at the same time, the $5,000 limitation applies when the sale or purchase is a single sale that meets the requirements of paragraph (a) and is a sale of items normally sold in bulk or items that comprise a working unit, or a part of a working unit, that meets the requirements of paragraph (b).

(a) SINGLE SALE. The sale or purchase of multiple items of tangible personal property must be a single sale in which the purchaser buys all items of tangible personal property from the dealer at the same time.

1. There must be an invoice, sales slip, charge ticket, written purchase order or agreement, or other tangible evidence of sale that establishes the items were sold in a single sale.

2. A single sale of items of tangible personal property that is documented by a written purchase order or written agreement executed between a purchaser and the selling dealer must:

a. Provide for a specific quantity of tangible personal property; and,

b. If delivery of all items does not occur at the same time, provide for a specific time period within which delivery of the tangible personal property to the purchaser must be made.

3. Each delivery of items of tangible personal property, under the provisions of a written purchase order or written agreement that does not specify the quantity and the time period during which delivery of the property will occur, will be a single sale.

4.a. Example: A developer and an appliance distributor enter an agreement pursuant to which the developer purchases 250 refrigerators for an apartment complex project. Delivery will be in 10 loads of 25 refrigerators, as buildings in the complex are completed, with invoicing to follow each delivery and final delivery to occur no later than 10 months after the contract is signed. The 250 refrigerators will be viewed as purchased in a single sale, because the agreement specified both the quantity to be purchased and the time period in which delivery will occur.

b. Example: A road contractor enters a contract to purchase all of the asphalt needed for a certain job from an asphalt dealer that is willing to guarantee delivery as needed over a six-month period for a set price per ton, with invoicing to follow each delivery. Each delivery is a separate sale, because the agreement does not specify the quantity of asphalt to be purchased.

(b) ITEMS NORMALLY SOLD IN BULK OR ITEMS THAT COMPRISE A WORKING UNIT. A single sale must be a sale of items of tangible personal property that meets at least one of the following conditions:

1. The items are multiple quantities of a single item that the dealer normally sells in multiple quantities in the normal course of the dealer’s business or that the purchaser normally buys in multiple quantities in the normal course of the purchaser’s business;

2. The items are normally sold as a set or a unit and the utility of each for its intended purposes is dependent on the set being complete;

3. The items are normally sold in single sale by the seller to the purchaser for use in the normal business practice of the purchaser as an integrated unit;

4. The items are component parts that have no utility unless assembled with each other to form a working unit or part of a working unit; or

5. The items are a boat and the corresponding boat trailer identified as a motor vehicle, as defined in Section 320.01(1), F.S., sold to the same purchaser, at the same time, and included in the same invoice.

(c) MULTIPLE ITEMS OF TANGIBLE PERSONAL PROPERTY IN A SINGLE SALE. Multiple items of tangible personal property sold or purchased under a single sales transaction that are not normally sold in bulk or that, when assembled, will not comprise a working unit, part of a working unit, or comprise an integrated unit to be used in the purchaser’s normal business practice, cannot be aggregated into a single sale for purposes of the surtax limitation.

(d) EXAMPLES.

1. When furniture dealers advertise, sell, and invoice furniture suites or sets for a certain amount, without itemization of individual pieces that make up the suite or set, the surtax applies to the first $5,000 of each such suite or set of furniture. If the invoice contains other items not included in the suite or set, the surtax applies to the first $5,000 of each of these items. When furniture dealers sell individual pieces of furniture and separately itemize each piece, the surtax applies to the first $5,000 of each piece.

2. When a heating and air conditioning contractor, who normally purchases several heating and air conditioning units at the same time, purchases several units from a selling dealer who bills for the units on one invoice, the surtax applies to the first $5,000 on the total amount of the invoice.

3. When a lumber and building supply dealer sells lumber of various kinds and sizes, nails of different sizes, rolls of felt, squares of shingles, and other building materials that are used by the purchaser to comprise a working unit (e.g., a roof) the surtax applies to the first $5,000 of the total amount of the single sale. If the single sale or purchase contains items that are not used to comprise the working unit (e.g., the roof), the surtax applies to the first $5,000 of each item separately itemized on the sales invoice or other evidence of sale. Example of such items that are used by the contractor to construct the roof, but do not become a part of the roof when completed are hammers, saws, shovels, and power tools.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.02(15), (19), 212.05(1), 213.053, 212.054, 212.055 FS. History–New 12-11-89, Amended 5-12-92, 3-17-93, 11-16-93, 10-2-01, 4-17-03, 2-20-25, 12-29-25.

Fla. Admin. Code R. 12A-15.005 Permits, Certificates, and Affidavits

(1) Permits, certificates, and affidavits required for sales and use tax shall satisfy the requirements of the surtax. However, if a permit, certificate, or affidavit is issued by the purchaser at the time of purchase in lieu of tax, and the purchaser makes a taxable use of the items, the purchaser is required to remit use tax.

(2)(a) Where a purchasing dealer has obtained written consent from the Department of Revenue to assume the obligation of remitting the tax to the State, and has issued a statement relieving the selling dealer from the responsibility of collecting the tax, the purchasing dealer is required to remit the surtax based upon where the taxable transaction occurred.

(b) Example: If the purchaser is in a county imposing the surtax and the purchase or lease involves tangible personal property, the purchaser or lessee is required to remit the surtax.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.054, 212.055, 212.183, 213.053 FS. History–New 12-11-89, Amended 5-12-92, 12-29-25.

Fla. Admin. Code R. 12A-15.006 Tax Returns and Regulations

(1) All taxes shall be due, payable, and must be remitted pursuant to the same provisions as sales and use tax; provided, however, the surtax shall not be included in the computation of estimated taxes pursuant to Section 212.11(1)(a), F.S.

(2) The provisions of sales and use tax law regarding interest and penalties on delinquent taxes apply to the surtax.

(3) The same procedures used in the administration, collection, and enforcement of sales and use tax law apply to the surtax.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.054(4)(a), 212.055 FS. History–New 12-11-89.

Fla. Admin. Code R. 12A-15.007 Records

Persons making sales and use of tangible personal property; charging admissions; furnishing electricity or natural or manufactured gas; or leasing or renting any transient rental accommodations subject to the surtax must maintain adequate and sufficient books and records to indicate what sales and uses are subject to the surtax. The failure to maintain such records subjects the total sales amount to the surtax.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.054, 212.055, 212.12(6)(a), 212.13(2), 213.053 FS. History–New 12-11-89, Amended 10-2-01, 12-29-25.

Fla. Admin. Code R. 12A-15.008 Construction Contractors Who Repair, Alter, Improve, and Construct Real Property; Refund of Surtax

(1) LUMP SUM, COST PLUS, FIXED FEE, OR GUARANTEED PRICE CONTRACTS.

(a) Contractors or subcontractors purchasing tangible personal property from a dealer for use in a lump sum, cost plus, fixed fee, guaranteed price, or similar type of contract must pay the surtax to the selling dealer, when the property is delivered to a location within a county imposing the surtax. The surtax to be paid to the selling dealer is based on the rate imposed in the county where delivery of the tangible personal property is made. When the tangible personal property is delivered to a location within a county not imposing the surtax, no surtax is due.

(b) A contractor or subcontractor who is not required to be a registered dealer and who owes use tax on taxable items of tangible personal property purchased out-of-state, in another country, or through a remote sale for use in a lump sum, cost plus, fixed fee, guaranteed price, or similar type of contract is not required to pay surtax when paying the applicable use tax to the Department.

(c)1. Contractors and subcontractors are required to pay use tax on the fabricated cost of items of tangible personal property they manufacture, produce, compound, process, or fabricate for their own use in performing contracts. When the contractor or subcontractor owes use tax on the fabricated cost of items manufactured, produced, compounded, processed, or fabricated for use at a manufacturing plant site located within a surtax county, the contractor or subcontractor is required to pay surtax on such fabrication cost. Labor incurred at the job site where the item will be incorporated into a real property improvement or transportation from the plant where an item was fabricated to the job site is not subject to tax or surtax. See Rule 12A-1.043, F.A.C., for determining fabrication cost.

2. Contractors who pay sales tax to vendors for direct materials that are incorporated into fabricated items of tangible personal property are not required to pay use tax on the cost of those materials. Contractors who are registered as dealers may elect either to pay sales tax to their vendors on direct materials or to extend a copy of their Annual Resale Certificate and accrue use tax when the materials are used for fabrication. If sales tax is paid on the purchase of direct materials at the time of purchase, the county of delivery determines whether surtax is due. If use tax is accrued at the time of fabrication of the items, the surtax must also be accrued when the fabrication occurs within a county imposing a surtax.

3. Contractors and subcontractors who are located within a county imposing a surtax, and who have elected and have been authorized by the Department to use an alternate tax calculation method, must compute the surtax on the appropriate percentage of the contract price at the same time and in the same manner in which use tax is computed.

4. The $5,000 limitation is applicable to the fabricated cost when the written contract or agreement specifies the particular project for which the fabricated item of tangible personal property is to be used.

5. Example: A contractor operates a roofing tile manufacturing plant in a surtax county. The contractor sells roofing tiles, as well as uses roofing tiles in performing real property contracts. The contractor is a registered dealer and purchases raw materials tax exempt by extending a copy of the dealer’s Annual Resale Certificate. The contractor enters a contract to furnish materials and install a tile roof for $15,000. The direct materials cost is $5,000 and the other taxable fabrication costs are $3,000, for a total of $8,000 on which use tax must be accrued. The contractor must accrue sales tax and surtax, because the fabrication occurs at the plant located within a surtax county. If roofing contractors were permitted to accrue use tax on 40 percent of the contract price, use tax would be due on $6,000, because the fabrication occurred at the plant located within a surtax county. Whether the contractor computes use tax on $8,000 actual cost or on $6,000 on a percent of contract price basis, surtax only needs to be accrued on $5,000, because the fabricated tangible personal property is identified to the specific contract.

(2) RETAIL SALE PLUS INSTALLATION CONTRACTS. Contractors or subcontractors performing contracts where the contractor or subcontractor agrees to sell specifically described and itemized materials and supplies at an agreed price or at the regular retail price and to complete the work either for an additional agreed price or on the basis of time consumed, are required to register as dealers. They must collect surtax from customers on the sales price of the materials when the materials are delivered to a county imposing the surtax at the rate imposed by that county.

(3) The application of surtax to sales, fabrication, use, consumption, distribution, or storage of tangible personal property to or by contractors or subcontractors shall be determined on the basis of the date of each invoice for such sales, the date such fabrication occurred, or the date of importation for use, consumption, distribution, or storage. The date the written contract was entered into, the date of the oral contract, or the date of the purchase order does not determine the application of the surtax.

(4)(a) In the case of written contracts executed (signed) prior to the effective date of any surtax, for the repair, alteration, improvement, remodeling, or construction of real property, the surtax shall be paid by the contractor responsible for the performance of the contract. However, the contractor responsible for the performance of the written contract signed prior to the effective date of any such surtax may apply for one refund per contract of any such surtax paid by the contractor responsible for the performance of the contract on materials necessary for the completion of the contract.

(b) To receive the refund, the contractor responsible for the performance of the contract must file an Application for Refund-Sales and Use Tax (form DR-26S), incorporated by reference in Rule 12-26.008, F.A.C. Such application for refund shall be made no later than 15 months following the initial imposition of the surtax in the county in which the transaction subject to the initial imposition of the surtax occurred.

(c) The contractor must submit the information as provided in subparagraphs 1. through 5., with the Application for Refund-Sales and Use Tax (form DR-26S). Upon approval of a completed application, the Department shall, within 30 days, certify to the county or counties information necessary for issuance of a refund directly to the applicant of said taxes. Counties are authorized to issue refunds for this purpose and shall set aside from the proceeds of the surtax a sum sufficient to pay any refund lawfully due.

1. A copy of the bidding instructions, a signed copy of the original contract, and a copy of the general and specific provisions of the contract.

2. A summary schedule of material invoices related to the contract in which the tax was paid to a vendor or accrued by the contractor. The summary schedule shall reflect the county where the selling dealer is located, invoice date, invoice number, vendor’s name, amount of refund claimed on taxes paid to vendor, amount of refund claimed on taxes accrued by the contractor, and total amount of the refund claimed.

3. Contractors who operate manufacturing plants which make items of tangible personal property for their own consumption and use in performance of contracts for the construction or improvement of real property must supply, in addition to the contract documents enumerated in sub-subparagraph a. above, a summary schedule by county identifying the manufactured cost on which tax has been accrued and remitted to this state. The summary schedule shall reflect by month and year the amount of raw materials, as well as an itemization by type and amount of other manufactured costs, such as labor, power, transportation-in, and other related plant expenses, on which tax was accrued and remitted to this state.

4. In those instances where a contractor operates in the manner outlined in subparagraph 3. above, but pays tax to its vendors on part of the raw materials and purchases the remainder of the raw materials tax exempt, the contractor shall furnish, in addition to the contract documents enumerated in subparagraph 1. above, a summary schedule by county of material invoices that is required in subparagraph 2. above, on materials for which tax was paid to vendors and a summary schedule by county identifying the manufactured cost on which tax has been accrued and remitted to this state in the form required in subparagraph 3. above.

5. Any other information that is required by the Department of Revenue in order to verify the authenticity of the refund application.

(d) Any person who fraudulently obtains or attempts to obtain a refund not permitted by law, in addition to being liable for payment of any refund fraudulently obtained plus a mandatory penalty of 100% of the refund, is guilty of a felony of the third degree, punishable as provided in Section 775.082, 775.083, or 775.084, F.S.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.054, 212.055, 212.06(1), 212.14(5) FS. History–New 12-11-89, Amended 5-12-92, 8-10-92, 11-16-93, 3-20-96, 4-17-03, 6-14-22.

Fla. Admin. Code R. 12A-15.009 Occasional and Isolated Sales

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(2), 212.05(1), 212.054, 212.055, 212.06(1), (2), (10) FS. History–New 12-11-89, Amended 5-12-91, Repealed 4-17-03.

Fla. Admin. Code R. 12A-15.010 The Sale of Food, Drink, and Tangible Personal Property at Concession Stands

(1)(a) Concessionaires at arenas, auditoriums, carnivals, fairs, stadiums, theaters, and similar places of business where it is impracticable to separately state Florida sales tax on any charge ticket, sales slip, invoice, or other tangible evidence of sale, may calculate tax due for counties imposing a surtax as follows:

1. Divide the total gross receipts by the divisors provided in paragraph (b) to compute taxable sales;

2. Subtract taxable sales from the total gross receipts to compute the amount of sales tax, plus surtax, due.

(b) Divisors for counties imposing surtax at the following rates are:

Surtax Rate

Divisor

No Surtax

1.0659

1/4%

1.0678

1/2%

1.0697

3/4%

1.0724

1%

1.0751

1 1/4%

1.0773

1 1/2%

1.0795

1 3/4%

1.0817

2%

1.0839

(2) Concessionaires at arenas, auditoriums, carnivals, fairs, stadiums, theaters, and similar places of business that separately state Florida sales tax on their charge tickets, sales slips, invoices, or other tangible evidence of sales must remit to the State the amount of tax collected and due on their sales.

History

• Rulemaking Authority 212.07(2), 212.18(2), 213.06(1) FS. Law Implemented 212.054, 212.055, 212.07(2) FS. History–New 12-11-89, Amended 3-20-96, 6-19-01, 11-1-05, 6-1-09.

Fla. Admin. Code R. 12A-15.011 Coin-Operated Amusement and Vending Machines, and Other Devices

(1) Amusement machine sales; effective tax rates.

(a) Charges for the use of amusement machines, as defined in Section 212.02(24), F.S., are subject to the surtax at the rate imposed by the county where the machine is located. To calculate the tax due in an applicable reporting period for amusement machines located in counties imposing a surtax:

1. Divide the total gross receipts from charges for the use of amusement machines by the divisors provided in paragraph (b) to compute taxable sales;

2. Subtract taxable sales from the total gross receipts to compute the amount of sales tax, plus surtax, due.

(b) Divisors for counties imposing surtax at the following rates are:

Surtax Rate

Divisor

No Surtax

1.040

1/4%

1.0425

1/2%

1.045

3/4%

1.0475

1%

1.050

1 1/4%

1.0525

1 1/2%

1.055

1 3/4%

1.0575

2%

1.060

(c) The sale of tokens, slugs, coupons, and other items over-the-counter by individuals for the use of entertainment or amusement devices is taxable. Surtax is to be collected by the seller from the customer on the sales price at the rate of tax imposed by the county where the business is located.

(2)(a) Vending machine sales; effective tax rates. The amount of tax to be paid on food, beverages, and other items of tangible personal property that are sold in vending machines is subject to the surtax at the rate imposed by the county where the machine is located. To calculate the tax due in an applicable reporting period for vending machines located in counties imposing a surtax:

1. Divide the total gross receipts from sales made through the vending machines by the divisors provided in paragraph (b) to compute gross taxable sales;

2. Subtract gross taxable sales from the total gross receipts to compute the amount of tax, plus surtax, due.

(b) Divisors for counties imposing surtax at the following rates are:

Surtax Rate

Divisor for Food and Beverages

Divisor for Other Items of Tangible Personal Property

No Surtax

1.0645

1.0659

1/4%

1.06655

1.0683

1/2%

1.0686

1.0707

3/4%

1.0706

1.0727

1%

1.0726

1.0749

1 1/4%

1.07465

1.0770

1 1/2%

1.0767

1.0791

1 3/4%

1.0788

1.0812

2%

1.0808

1.0833

(c) When an operator cannot account for each type of item sold through a vending machine, the highest divisor rate must be used to calculate the amount of sales tax, plus surtax, due for all products sold through that machine.

(3) Special rules govern how the discretionary sales surtax applies to the amount received for the rental of vending and amusement machines.

(a)1. A discretionary surtax applies to the lease of a vending or amusement machine if the machine is located within a county imposing the surtax. The surtax to be collected by the lessor from the lessee on the rental payments for the machine is the rate imposed in the county where the machine is located and operated by the lessee.

2. Example: The machine owner (lessor) is located in County A imposing a 1% surtax and the operator (lessee) operates the machine in County B imposing a 1/2% surtax. The surtax to be collected on the lease payments for the machine is 1/2%.

(b)1. The discretionary surtax is not due when the machine owner (lessor) is located in a county imposing the surtax and the machine is delivered to a location within a county without a surtax.

2. Example: The machine owner (lessor) is located in county A imposing a 1/2% surtax and the machine is delivered to an operator (lessee) located in county B without a surtax; there is no surtax due on the lease payments. In 4 months the machine is placed by the lessee at a location within another 1/2% surtax county; the lessee owes 1/2% surtax on the lease payments from the date the machine is placed in the surtax county.

(c)1. The discretionary surtax is not due when the machine owner (lessor) is located in a county imposing the surtax and the machine is delivered to a location within a county without a surtax. However, if the operator (lessee) places the machine in a county which imposes a surtax at a later date, then the surtax is due at the rate imposed in the county where the machine is located.

2. Example: The machine owner (lessor) is located in County A imposing a 1/2% surtax and the machine is delivered to location in County B without a surtax; there is no surtax due on the lease payments. Seven months later, the machine is placed by the lessee at a location within another surtax county imposing a 1% surtax; the lessee owes the 1% surtax on the lease payments from the date the machine is placed in the surtax county. The lessor should collect the state sales tax and the surtax from the lessee and remit the tax to the Department of Revenue.

History

• Rulemaking Authority 212.05(1)(h)6., 212.0515(6), 213.06(1) FS. Law Implemented 212.05(1)(h), 212.0515, 212.054, 212.055, 212.07(2) FS. History–New 12-11-89, Amended 1-30-91, 5-12-92, 9-14-93, 11-16-93, 12-13-94, 3-20-96, 6-19-01, 11-1-05, 5-28-06, 6-1-09.

Fla. Admin. Code R. 12A-15.012 Alcoholic and Malt Beverages

(1)(a) Alcoholic beverages, including beer, ale, and wine, are subject to surtax at the rate imposed by the county where the business is located.

(b) Except as provided in Section 212.07(4), F.S., a dealer will add the sales tax, plus the applicable surtax, to the sales price of each sale, and may not advertise or hold out to the public in any manner that the dealer will pay all or any part of the sales tax or surtax due or that the dealer will relieve the purchaser from the payment of sales tax or surtax.

(c) In some instances, it may be impractical for dealers who sell package goods, mixed drinks, or a combination of package goods and mixed drinks to separately itemize the sales price of the beverage and the tax. In such cases, a dealer is required to remit tax in accordance with one of the methods outlined below, and the dealer’s records must substantiate the method chosen.

(2) DEALERS WHO DO NOT SELL MIXED DRINKS.

(a)1. When a dealer, located in a county imposing a surtax, who sells package goods but does not sell mixed drinks, does not put the public on notice that tax is included in the total charge, the dealer is required to remit tax at the following rates. The dealer should multiply the total gross receipts derived from the sale of package goods by the following effective tax rates to compute the amount of sales tax, plus surtax, due.

County Surtax Tax

Effective Tax Rate

No Surtax

.0635

1/4%

.0656

1/2%

.0677

3/4%

.07035

1%

.0730

1 1/4%

.0753

1 1/2%

.0776

1 3/4%

.0799

2%

.0822

Example: A package store located in a county imposing surtax at the rate of 1 1/2% that does not sell mixed drinks and whose total gross receipts are $2,000 would multiply $2,000 by .0776 to compute tax due of $155.20. This is the amount of sales tax, plus surtax, due.

(b)1. When a dealer, located in a county imposing a surtax, who sells package goods but does not sell mixed drinks, puts the public on notice through the posting of price lists or signs prominently throughout the business establishment that tax is included in the total charge, the dealer is required to remit tax in the following manner:

a. Divide the total gross receipts by the following divisors to compute taxable sales:

County Surtax Rate

Divisor

No Surtax

1.0635

1/4%

1.0656

1/2%

1.0677

3/4%

1.07035

1%

1.0730

1 1/4%

1.0753

1 1/2%

1.0776

1 3/4%

1.0799

2%

1.0822

b. Subtract taxable sales from the total gross receipts to compute the amount of sales tax, plus surtax, due.

2. Example: A package store located in a county imposing a surtax at 1 1/2% that does not sell mixed drinks and whose total gross receipts are $2,000 would divide $2,000 by 1.0776 to compute taxable sales of $1,855.98. The store would subtract $1,855.98 from $2,000 to compute $144.02 tax due. This is the amount of sales tax, plus surtax, due.

(3) DEALERS WHO SELL MIXED DRINKS.

(a)1. When a dealer, located in a county imposing a surtax, sells mixed drinks or both mixed drinks and package goods and does NOT put the public on notice that tax is included in the total charge, the dealer is required to remit tax at the following rates. The dealer should multiply the total gross receipts derived from the sale of mixed drinks and package goods by the following effective tax rates to compute the amount of sales tax, plus surtax, due.

County Surtax Tax

Effective Tax Rate

No Surtax

.0659

1/4%

.0678

1/2%

.0697

3/4%

.0724

1%

.0751

1 1/4%

.0773

1 1/2%

.0795

1 3/4%

.0817

2%

.0839

2. Example: A dealer located in a county imposing a 1% surtax who sells mixed drinks or both mixed drinks and package goods and whose total gross receipts are $2,000 would multiply $2,000 by .0751 to compute tax due of $150.20. This is the amount of sales tax, plus surtax due.

(b)1. When a dealer, located in a county imposing a surtax, sells mixed drinks or both mixed drinks and package goods and puts the public on notice through the posting of price lists or signs prominently throughout the business establishment that tax is included in the total charge, the dealer is required to remit tax in the following manner:

a. Divide total gross receipts by the following divisors to compute taxable sales:

County Surtax Tax

Divisor

No Surtax

1.0659

1/4%

1.0678

1/2%

1.0697

3/4%

1.0724

1%

1.0751

1 1/4%

1.0773

1 1/2%

1.0795

1 3/4%

1.0817

2%

1.0839

b. Subtract taxable sales from the total gross receipts to compute the amount of sales tax, plus surtax, due.

2. Example: A dealer located in a county imposing a 1% surtax who sells mixed drinks or both mixed drinks and package goods and whose total gross receipts are $2,000 would divide $2,000 by 1.0751 to compute taxable sales of $1,860.29. The dealer would subtract $1,860.29 from $2,000 to compute $139.71 tax due. This is the amount of sales tax, plus surtax, due.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.054, 212.055, 212.07(2), (4), 212.08(4) FS. History–New 12-11-89, Amended 3-20-96, 6-19-01, 11-1-05, 6-1-09, 6-14-22.

Fla. Admin. Code R. 12A-15.013 Interstate and Foreign Commerce

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.054, 212.055, 212.0598, 212.06(2)(d), 212.08(4)(a), (8), (9) FS. History–New 12-11-89, Amended 11-16-93, 3-20-96, Repealed 4-17-03.

Fla. Admin. Code R. 12A-15.014 Transition Rule

(1)(a) Accrual basis accounting recognizes the sales date as the invoice date. At the time the invoice is prepared, accounts receivable will be increased with a corresponding entry to increase the sales accounts. Thus, for sales, purchases, and rentals of tangible personal property, the Department will be guided by the invoice date to determine if the surtax is applicable for transactions prior to the effective date of any such surtax, or if the surtax is applicable to transactions during the period the surtax is levied. Cash sales will be subjected to the surtax if the transaction occurs on or after the effective date of any such surtax.

(b) The Department will recognize the state sales and use tax rate as the appropriate tax rate, if the state sales and use tax is included in the tax return, for sales invoices dated and recorded reflecting total income through the sales accounts, prior to the effective date of any such surtax, provided the goods or services are delivered within the customary period for the particular type of firm. Delivery within 45 days of the sales invoice date may be utilized for auditing purposes during this transition period to support a normal delivery period.

(2) Electric Utilities; Natural or Manufactured Gas; Fuel Oil.

(a) Electric utilities and sellers of gas and fuel oil normally bill their customers after the period of service. The 6.95% tax rate plus the surtax rate will apply to billing cycles, which includes services billed for cycles ending on or after the effective date of any such surtax.

1. Example: If the effective date of the surtax is January 1, 1995, and the monthly service cycle is December 1, 1994, through December 31, 1994, and the service cycle billing is mailed to customer on January 5, 1995, the surtax does not apply.

2. Example: If the effective date of the surtax is January 1, 1995, and the monthly service cycle is December 10, 1994, through January 10, 1995, and the service cycle billing is mailed to customer on January 15, 1995, the surtax applies.

(b) Where service periods or cycles are not noted on the bill to the customer, the invoice or billing date would determine the applicable tax rate. In the cases of electric, gas, and fuel oil, billing cycles are from the most current meter reading to the previous meter reading.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1), 212.05011, 213.053, 212.054, 212.055 FS. History–New 12-11-89, Amended 11-16-93, 3-20-96, 10-2-01, 4-17-03, 1-17-18, 1-8-19, 12-12-19, 6-14-22, 12-29-25.

Fla. Admin. Code R. 12A-15.015 Public Use Forms

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.054, 212.055 FS. History–New 12-11-89, Amended 8-10-92, 9-14-93, 3-20-96, 6-19-01, Repealed 4-17-03.

Chapter 12A-16 RENTAL CAR SURCHARGE

Fla. Admin. Code R. 12A-16.001 Scope of Rules

For the purpose of administering the Rental Car Surcharge (referred to as the surcharge), all rules relating to Sales and Use Tax (Chapter 12A-1, F.A.C.), shall apply to the surcharge, except in those situations where rules relating to the surcharge have been issued to clarify specific statutory provisions.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.0606 FS. History–New 11-14-89.

Fla. Admin. Code R. 12A-16.002 Imposition and Payment of the Surcharge

(1) Definitions. For the purposes of this rule chapter, the following definitions will apply.

(a) The term “car-sharing service” has the same meaning as provided in Section 212.0606, F.S.

(b) The term “day” means 24 consecutive hours.

(c)1. The term “for-hire passenger motor vehicle” means a motor vehicle designed to carry fewer than nine passengers and is leased or rented for financial consideration without transfer of title, regardless of whether the motor vehicle is registered in Florida.

2. The term does not include any motorcycle, moped, truck, truck trailer, travel trailer, camping trailer, recreational vehicle with living facilities, or van conversion.

3. “For-hire passenger motor vehicles” are rented or leased through a motor vehicle rental company or available for use by members of a car-sharing service.

(d) The term “motor vehicle rental company” has the same meaning as provided in Section 212.0606, F.S.

(e) The term “peer-to-peer car-sharing program” has the same meaning as provided in Section 627.7483(1), F.S.

(f)1. The term “shared vehicle” means a motor vehicle that is designed to carry fewer than nine passengers for consideration without transferring the title and is registered in Florida.

2. The term does not include for-hire motor vehicles, as defined in paragraph (c), or motor vehicles used for ridesharing or carpools.

3. Shared vehicles are offered for use through a peer-to-peer car-sharing program.

(2) Under Section 212.0606(2), F.S., a surcharge of $2.00 per day or any part of a day is imposed upon the lease or rental of a for-hire passenger motor vehicle by a motor vehicle rental company. The surcharge must be collected by the motor vehicle rental company.

(a) The surcharge applies to the first 30 days of the lease or rental of a for-hire passenger motor vehicle.

(b) When the terms of a lease or rental agreement authorize the lessee to extend the lease or rental beyond the initial lease term without executing an additional lease or agreement and without any action on the part of the lessor, the extension period will not be considered a new lease or rental.

(c) When the terms of a lease or rental agreement require the lessee to execute an additional lease or agreement or require any action on the part of the lessor, the additional days during the extension period will be considered a new lease or rental.

(d) The surcharge imposed upon the lease or rental of a for-hire passenger motor vehicle is subject to sales tax and discretionary sales surtax.

(3)(a) Under Section 212.0606(3), F.S., a surcharge of $1.00 per day or any part of a day is imposed upon each peer-to-peer car-sharing program agreement involving a shared vehicle under Section 212.0606(3), F.S. The surcharge must be collected by the peer-to-peer car-sharing program.

(b) If the car-sharing period is less than 24 hours, then the surcharge is $1.00 per use.

(c) The surcharge applies to the first 30 days of a car-sharing period.

(d) The surcharge imposed upon a peer-to-peer car-sharing agreement is subject to sales tax and discretionary sales surtax.

(4)(a) Under Section 212.0606(4), F.S., a surcharge of $1.00 per usage is imposed when the for-hire passenger motor vehicle is used for less than 24 hours by a member of the car-sharing service. The surcharge must be collected by the car-sharing service.

(b) If the member uses the same motor vehicle for 24 hours or more, then the surcharge is $2.00 per day or any part of a day the motor vehicle is used.

(c) The surcharge does not apply to the lease, rental, or use of a motor vehicle from a location owned, operated, or leased by or for the benefit of an airport or an airport authority.

(5)(a) Motor Vehicle Leased or Rented by a Motor Vehicle Rental Company or through a Peer-to-Peer Car-Sharing Program for Less Than 12 Months.

1. When a for-hire passenger motor vehicle is leased or rented in Florida, the lease or rental is subject to the rental car surcharge, even though the vehicle may be driven to another state or the lease or rental payment is made outside Florida.

2. When a for-hire passenger motor vehicle is leased or rented outside Florida, the lease or rental is not subject to the rental car surcharge, even though the vehicle may be driven into Florida or the lease or rental payment may be made in Florida.

(b) Motor Vehicle Leased or Rented for 12 Months or Longer.

1. When a for-hire passenger motor vehicle is leased or rented in Florida for a term of 12 months or longer, the rental car surcharge is due for the first 30 days.

2. When a for-hire passenger motor vehicle is leased or rented outside Florida for a term of 12 months or longer and the vehicle is registered, licensed, or titled in Florida, it is presumed subject to the rental car surcharge. This presumption may be rebutted only by documentary evidence that the vehicle was used outside Florida continuously for the first 30 days before being brought into Florida.

(6)(a) The surcharge is due as follows:

1. When the lease or rental payments are made to a motor vehicle rental company under the terms of the lease or rental agreements.

2. When payment for the usage of a shared vehicle is collected pursuant to a peer-to-peer car-sharing program agreement.

3. Per use of a motor vehicle through a car-sharing service regardless of payment or payment plans for membership or access to motor vehicles.

(b) The amount of the rental car surcharge is required to be separately stated on any charge ticket, invoice, or other tangible evidence of lease or rental and will be a debt from the lessee or renter to the dealer until paid.

(c) The surcharge does not apply to a for-hire passenger motor vehicle or shared vehicle when a replacement vehicle is provided at no charge to a person whose motor vehicle is being repaired, adjusted, or serviced by the entity providing the replacement motor vehicle.

(7) Any lessee who has leased or rented a for-hire passenger motor vehicle under the terms of a lease or rental agreement or car-sharing service membership or entered into a peer-to-peer car-sharing agreement and cannot prove that the rental car surcharge has been paid will be directly liable to the state for the surcharge and any interest or penalty due.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(c), 212.06(1)(a), 212.0606, 212.07(2), (4), (8) FS. History–New 11-14-89, Amended 7-7-91, 5-19-93, 3-20-96, 9-28-04, 7-28-15, 5-23-22.

Fla. Admin. Code R. 12A-16.003 Exemptions

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.0606, 212.08(6), (7) FS. History–New 11-14-89, Repealed 6-19-01.

Fla. Admin. Code R. 12A-16.004 Registration

(1) Every person who operates a car-sharing service, a peer-to-peer car-sharing program, or motor vehicle rental company must register with the Department as a dealer for the purposes of remitting the rental car surcharge.

(a) Motor vehicle rental companies are required to register each place of business located in Florida.

(b) Car-sharing services and peer-to-peer car-sharing programs are required to submit a registration application for each county in which business is conducted.

(2)(a) Registration is available by using one of the following methods

1. Completing a Florida Business Tax Application through the Department’s website at floridarevenue.com/taxes/registration.

2. Submitting Form DR-1, Florida Business Tax Application (incorporated by reference in Rule 12A-1.097, F.A.C.), as indicated on the form.

(b) If a business previously submitted Form DR-1 and holds an active certificate of registration or reemployment tax account, the business may use Form DR-1A, Application for Registered Businesses to Add a New Florida Location (incorporated by reference in Rule 12A-1.097, F.A.C.), in the following circumstances.

1. To register an additional business location.

2. To update a registered location that has moved from one Florida County to another.

(c) Specific registration requirements for sales tax purposes are outlined in Rule 12A-1.060, F.A.C.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.0606, 212.18(3) FS. History–New 11-14-89, Amended 8-10-92, 3-21-95, 6-19-01 4-17-03, 11-6-07, 1-17-18, 3-25-20, 5-23-22.

Fla. Admin. Code R. 12A-16.005 Exemption Permits, Certificates, and Affidavits

(1) The lease or rental of a for hire passenger motor vehicle or shared vehicle directly to an entity that holds a valid Consumer’s Certificate of Exemption (Form DR-14) issued by the Department is exempt. Direct pay permits, exemption, certificates, and exemption affidavits required to be issued to lease or rent a vehicle exempt from sales and use tax shall satisfy the requirements of the exemption from the surcharge. However, if a permit, certificate, or affidavit is issued by the lessee or renter at the time of the lease or rental in lieu of surcharge, and the lessee makes a taxable use of the motor vehicle, the lessee or renter is required to remit the surcharge directly to the Department.

(2) Where a person registered for sales tax has obtained written consent from the Department of Revenue to assume the obligation of remitting sales and use tax to the State, and has issued a statement relieving the leasing dealer from the responsibility of collecting said tax, such person is required to remit the surcharge.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.05(1), 212.06(1), 212.0606, 212.12, 212.18(3), 212.183 FS. History–New 11-14-89. Amended 6-19-01, 5-23-22.

Fla. Admin. Code R. 12A-16.006 Surcharge Returns and Filing Requirements

(1)(a) Except as provided in rule Chapter 12-24, F.A.C., the surcharge for each month is due to the Department on the first day of the month following the date the lease or rental payments are to be made by the lessee or renter under the terms of the lease or rental agreement, or on the first day of the month following the date the membership usage fees are billed to the member of a car-sharing service. The payment and return must be delivered to the Department or be postmarked on or before the 20th day of the month following the date the lease or rental payments or membership usage fees are billed to the lessee, renter, or the member of a car-sharing service to avoid penalty and interest for late filing. If the 20th day falls on a Saturday, Sunday, or legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department on the next succeeding day which is not a Saturday, Sunday, or legal holiday. For this purpose, a legal holiday means a holiday which is observed by federal or state agencies as a legal holiday as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(b) The rental car surcharge is required to be reported to the Department on a Solid Waste and Surcharge Return (Form DR-15SW). A Schedule of Rental Car Surcharge by County (Form DR-15SWS) is used to report the surcharge attributed to each county. Forms DR-15SW and DR-15SWS are incorporated by reference in Rule 12A-16.008, F.A.C. The surcharge is attributed to the county:

1. Where the lessee picks up the for hire passenger motor vehicle, if the motor vehicle is picked up in Florida and is leased or rented for less than 12 months; or

2. Where the residence address of the lessee identified on the registration, license, or title is located, if the motor vehicle is leased or rented for 12 months or longer.

3. The rental car surcharge for the use of a shared vehicle through a peer-to-peer car-sharing program is attributed to the county corresponding to the location of the motor vehicle at the car-sharing start time.

(c) Any dealer who operates places of business in two or more counties for which returns are required and who has obtained a consolidated filing number from the Department for purposes of reporting sales and use tax must report the rental car surcharge for all places of business using the consolidated filing number. The dealer is required to file a consolidated Solid Waste and Surcharge Return (Form DR-15SW) with a Schedule of Rental Car Surcharge by County (Form DR-15SWS) to report the surcharge attributed to each county.

(d) Any dealer who operates two or more places of business in a single county for which returns are required and who has obtained a county control reporting number from the Department for purposes of reporting sales and use tax must report the rental car surcharge for all places of business located within a single county using the county control reporting number. Such dealers are reporting the rental car surcharge attributed to that county and are not required to file a Schedule of Rental Car Surcharge by County (Form DR-15SWS).

(e) Out-of-state dealers who have no physical place of business located within Florida that are required to report the rental car surcharge must file a Solid Waste and Surcharge Return (Form DR-15SW) with a Schedule of Rental Car Surcharge by County (Form DR-15SWS) to report the surcharge attributed to each county. The Schedule of Rental Car Surcharge by County must be included with the return even when the dealer reports the number of days that all for hire passenger motor vehicles were leased or rented during the month for a single county.

(f) For information on how to obtain a county control reporting number or a consolidated filing number for purposes of sales and use tax, see subsection (1) of Rule 12A-1.056, F.A.C.

(g) Each dealer is required to file a return each month, even when no rental car surcharge is due for that month. However, a dealer is not required to file a Schedule of Rental Car Surcharge by County (form DR-15SWS) when no rental car surcharge is due for that month.

(h) Electronic filing of payments and returns for reporting the rental car surcharge must be submitted to the Department, as provided in rule Chapter 12-24, F.A.C., when:

1. Payment of the rental car surcharge is required to be made by electronic means;

2. Any return for reporting the rental car surcharge is required to be submitted by electronic means; or

3. No fees are due with a return for reporting the rental car surcharge.

(2) Persons who are required to make a return or to pay the rental car surcharge and fail to do so will be subject to penalties, as provided in Section 212.12(2), F.S., and to the interest imposed on deficiencies established under Section 213.235, F.S. and Rule 12-3.0015, F.A.C. Guidelines are provided in subsection (4) of Rule 12A-1.056, F.A.C.

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.0606, 212.11, 212.12(2), (3), (4), 213.235, 213.755 FS. History–New 11-14-89, Amended 7-7-91, 8-10-92, 5-19-93, 3-20-95, 3-20-96, 4-2-00, 4-17-03, 9-28-04, 7-28-15, 5-23-22.

Fla. Admin. Code R. 12A-16.007 Interstate and Foreign Commerce

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.0606, 212.07, 212.08(9), 212.13 FS. History–New 11-14-89, Repealed 4-17-03.

Fla. Admin. Code R. 12A-16.008 Public Use Forms

(1)(a) The following public use forms and instructions are employed by the Department of Revenue in its dealings with the public in administering the rental car surcharge, as provided in this rule chapter, and the solid waste fees, as provided in rule Chapter 12A-12, F.A.C. These forms are hereby incorporated by reference in this rule.

(b) Copies of these forms are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 711, 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2) DR-15SW

Solid Waste and Surcharge Return (R. 01/15)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-05594)

07/15

(3) DR-15SWN

Instructions for DR-15SW Solid Waste and Surcharge Returns

(http://www.flrules.org/Gateway/reference.asp?No=Ref-16260)

01/24

(4) DR-15SWS

Schedule of Rental Car Surcharge by County

(http://www.flrules.org/Gateway/reference.asp?No=Ref-14235)

01/22

History

• Rulemaking Authority 212.18(2), 213.06(1) FS. Law Implemented 212.0606, 212.12(2), 213.235, 213.755, 376.70, 403.717, 403.718, 403.7185 FS. History–New 11-14-89, Amended 7-7-91, 8-10-92, 3-21-95, 6-19-01, 4-17-03, 9-28-04, 6-28-05, 7-25-06, 4-5-07, 1-1-08, 1-27-09, 1-11-10, 1-12-11, 1-25-12, 1-20-14, 7-28-15, 4-16-18, 1-1-21, 5-23-22, 1-1-23, 1-1-24, 12-29-25.

Chapter 12A-17 REGISTRATION AS SECONDHAND DEALER OR SECONDARY METALS RECYCLER

Fla. Admin. Code R. 12A-17.001 Scope of Rules

History

• Rulemaking Authority 213.06(1), 538.11, 538.37 FS. Law Implemented 538.09, 538.32 FS. History–New 3-15-90, Amended 11-14-91, 8-1-02, Repealed 1-17-13.

Fla. Admin. Code R. 12A-17.002 Definitions

History

• Rulemaking Authority 212.17(6), 212.18(2), 213.06(1), 538.03, 538.11 FS. Law Implemented 212.02(15), 538.18 FS. History–New 3-15-90, Amended 11-14-91, 4-18-93, 10-18-93, Repealed 8-1-02.

Fla. Admin. Code R. 12A-17.003 Registration

(1)(a) Any person, corporation, or other business entity must submit a completed Registration Application for Secondhand Dealers and Secondary Metals Recyclers (Form DR-1S, incorporated by reference in Rule 12A-17.005, F.A.C.), and obtain a certificate of registration before engaging in business as a secondhand dealer or secondary metals recycler. If a secondhand dealer, or secondary metals recycler is the owner of more than one business location, the application must list each location owned by the same legal entity. The Department will issue a certificate of registration to the applicant for each location.

(b) Each business owner, officer, member, director, partner and stockholder with a controlling interest in the business entity must undergo a state and federal criminal history record check (background check). Employees of secondhand dealers or secondary metals recyclers with no controlling interest, financial or otherwise, are not required to undergo a criminal history record check.

(2)(a) The certificate of registration issued by the Department is only valid for the business entity listed on the certificate and for the registration indicated on the certificate. The certificate of registration may not be assigned or transferred to any other legal entity.

(b) Engaging in business as a secondhand dealer or secondary metals recycler without first obtaining a certificate of registration or after a certificate is revoked or suspended by the Department is prohibited.

(3) The effective date of the certificate of registration issued by the Department is the date the application is postmarked, hand-delivered, or submitted electronically to the Department. For the purposes of this rule, “postmark date” includes the date on which a taxpayer delivers a completed application to an express service or delivery service for delivery to the Department.

(4)(a) For businesses that hold a valid certificate of registration, a new completed application must be submitted and a new certificate of registration must be obtained when there is a change in the form of ownership in the business. For example, a sole proprietor that incorporates or a corporation that converts to a limited liability company must submit a new registration application to the Department and obtain a new certificate of registration.

(b) When there is a change in a general partner of a partnership, in the members of an association, joint venture, limited liability company, or other entity, or in the corporate officers, directors, or stockholders who hold a controlling interest in a corporation, each new partner, member, corporate officer or director, or stockholder must undergo a state and federal criminal history record check.

(5) Each business that holds a secondhand dealer or secondary metals recycler certificate of registration is required to pay an annual renewal fee of $6 per location. Renewal notices are provided annually to each registered secondhand dealer or secondary metals recycler. Annual renewal fees are due by October 1 of each year.

(6)(a) Local law enforcement officials may request a report on the registration of secondhand dealers or secondary metals recyclers in their jurisdiction by calling the Department at (850)488-6800. After verifying the official’s identity, as provided in Rule 12-22.005, F.A.C., the Department will release the following information to a law enforcement official who requests verification of a secondhand dealer’s or a secondary metals recycler’s certificate of registration:

1. Whether a specified person holds a valid certificate of registration;

2. Whether a specified certificate number is valid, has been canceled, or is inactive or otherwise invalid and the name of the holder of that certificate number; and,

3. The name and address of any secondhand dealer or secondary metals recycler registered to do business within the official’s jurisdiction.

(b) Pursuant to Section 213.053(9), F.S., the Department will provide information required by an order of a judge or a subpoena.

History

• Rulemaking Authority 213.06(1), 538.11, 538.37 FS. Law Implemented 213.053(9), (11), 538.09, 538.25, 538.32 FS. History–New 3-15-90, Amended 11-14-91, 4-18-93, 10-18-93, 10-17-94, 3-20-96, 8-1-02, 9-15-08, 6-1-09, 1-17-13, 1-10-17.

Fla. Admin. Code R. 12A-17.004 Denial, Suspension, or Revocation of Registration

History

• Rulemaking Authority 120.53(1)(b), 212.17(6), 212.18(2), 213.06(1), 538.11 FS. Law Implemented 538.09, 538.25 FS. History–New 3-15-90, Amended 11-14-91, 4-18-93, 3-20-96, 8-1-02, Repealed 7-31-03.

Fla. Admin. Code R. 12A-17.005 Public Use Forms

(1) The following public-use forms and instructions are employed by the Department in its dealings with the public in administering Chapter 538, F.S., and are incorporated by reference in this rule. Copies of forms are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday (excluding holidays); or, 3) visiting any local Department of Revenue Service Center; or, 4) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-2000, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

Form Number

Title

Effective Date

(2) DR-1S

Registration Application for Secondhand Dealers and Secondary Metals Recyclers (R. 01/17)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-07825)

01/17

(3) DR-1SN

Instructions – Registration Application for Secondhand Dealers and Secondary Metals Recyclers (R. 01/17) (http://www.flrules.org/Gateway/reference.asp?No=Ref-07756)

01/17

History

• Rulemaking Authority 213.06(1), 538.11, 538.37 FS. Law Implemented 538.09, 538.25, 538.31, 538.32, 539.002 FS. History–New 3-15-90, Amended 11-14-91, 4-18-93, 10-17-94, 8-1-02, 9-28-04, 6-28-05, 9-15-08, 1-11-10, 1-17-13, 1-10-17.

Chapter 12A-19 COMMUNICATIONS SERVICES TAX

Fla. Admin. Code R. 12A-19.010 Registration

(1) Scope of rule. This rule provides guidelines regarding the procedures and requirements for the registration of persons providing communications services and persons requesting a communications services tax direct pay permit.

(2)(a) With the exception of the activities described in paragraph (3)(c), a person that engages in the business of providing communications services must register with the Department to obtain a Communications Services Tax Certificate of Registration (Form DR-700014).

(b) Registration with the Department for communications services tax purposes is available by using one of the following methods:

1. Registering through the Department’s website at floridarevenue.com using the Department’s eServices.

2. Filing a Florida Business Tax Application (Form DR-1, incorporated by reference in Rule 12A-1.097, F.A.C.) with the Department, as indicated on the form.

(3)(a) Except as provided herein, a person registering with the Department for the communications services tax must notify the Department of the method(s) that will be employed to determine the local taxing jurisdiction in which service addresses are located. The notification to the Department must be made by indicating the method on Form DR-1. The following persons are not required to indicate a method with respect to the following activities:

1. Direct-to-home satellite providers;

2. Resellers of prepaid calling arrangements;

3. Direct pay permit applicants with no obligation to collect and remit local communications services taxes;

4. Pay telephone operators; and,

5. Persons who will make no sales of communications services except to purchasers who purchase for resale in compliance with the provisions of Rule 12A-19.060, F.A.C.

(b) Persons who must register for the communications services tax include persons who provide the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals, including video services, to a point, or between or among points, by or through any electronic, radio, satellite, cable, optical, microwave, or other medium or method now in existence or hereafter devised, regardless of the protocol used for such transmission or conveyance, for a consideration, except as provided in paragraph (c).

(c) Persons who only engage in the following activities are not required to register for the communications services tax:

1. Information services;

a. An information service is the offering of a capability for generating, acquiring, storing, transforming, processing, retrieving, using, or making available information via communications services.

b. Examples of an information service are electronic publishing, web-hosting service, and end-user 900 number service.

2. The installation or maintenance of wiring or equipment on a customer’s premises;

3. The sale or rental of tangible personal property;

4. The sale of advertising services, such as directory advertising;

5. Bad check services;

6. Late payment services;

7. Billing and collection services;

8. Internet access services, electronic mail services, electronic bulletin board services, or similar on-line computer services;

9. Communications services paid for by inserting coins into coin-operated communications devices available to the public;

10. The sale or recharge of prepaid calling arrangements;

11. The provision of air-to-ground communications services, defined as a radio service provided to purchasers while on board an aircraft; and,

12. The provision of professional or advertising services that include charges for the service of sending or receiving a document, commonly referred to as a facsimile, regardless of whether the charge is separately stated.

(d) Persons who engage in the business of the sale of communications services paid for by inserting coins into coin-operated communications devices available to the public and/or the purchase of communications services for resale as prepaid calling arrangements may register for the communications services tax, even though registration is not required. Such persons may elect to register in order to purchase communications services for resale in compliance with Rule 12A-19.060, F.A.C.

(4) In order to self-accrue the communications services tax, persons must obtain a Communications Services Tax Certificate of Registration (Form DR-700014), as provided in subsection (2). See Rule 12A-19.030, F.A.C., Communications Services Tax Direct Pay Permits.

History

• Rulemaking Authority 202.17(3)(a), 202.22(6)(a), 202.26(3)(e), (h) FS. Law Implemented 202.17(1), (4), 202.22(6)(a), 202.27(6) FS. History–New 1-31-02, Amended 4-17-03, 7-16-06, 1-17-13, 3-25-20.

Fla. Admin. Code R. 12A-19.020 Tax Due at Time of Sale; Tax Returns and Regulations

(1)(a)1. Except as provided in rule Chapter 12-24, F.A.C., and this rule, all taxes required to be collected in any calendar month by Chapter 202, F.S., are due to the Department on the first day of the month subsequent to the sale of communications services.

2. For recurring charges for communications services, tax is due at the moment that consideration is received for services to be rendered in the future.

3. To avoid penalty and interest for late filing, the payment and return must be received by the Department or be postmarked on or before the 20th day of the month subsequent to the sale of communications services.

(b) When quarterly, semiannual, or annual reporting is authorized by the Department pursuant to Section 202.27(2), F.S., the tax is due on the first day of the month following the authorized reporting period and becomes delinquent on the 21st day of that month.

(2) As compensation for the prescribed record keeping, and accounting for and timely remittance of taxes, persons collecting taxes imposed by and administered under Chapter 202, F.S., are allowed a collection allowance when the return is timely filed with the Department and the amount of tax due is remitted with the return, except as provided in Rule 12-24.009, F.A.C.

(a) The collection allowance rate depends upon the method used by a communications services tax dealer to assign service addresses to local taxing jurisdictions.

1. A dealer of communications services may deduct .75 percent of the amount of tax due as a collection allowance when the dealer:

a. Employs the electronic database provided by the Department under Section 202.22(2), F.S.;

b. Employs a database that has been certified by the Department under Section 202.22(3), F.S.; or

c. Employs enhanced zip codes to assign each street address, address range, post office box, or post office box range to a specific local taxing jurisdiction under Section 202.22(1)(c), F.S.

2. When a dealer of communications services employs a method of assigning service addresses other than those provided in subparagraph 1., the deduction allowed to the dealer is .25 percent of the amount of the tax due to the Department.

(b) Except as provided herein, all communications services tax dealers must notify the Department of the method or methods the dealer will employ to determine local taxing jurisdictions in which service addresses are located. The notification to the Department must be made by indicating the method of Form DR-1, Florida Business Tax Application (incorporated by reference in Rule 12A-1.097, F.A.C.) All subsequent changes must be reported using Form DR-700020, Notification of Method Employed to Determine Taxing Jurisdiction (Communications Services Tax) (incorporated by reference in Rule 12A-19.100, F.A.C.). If a communications services tax dealer that is required to notify the Department of the method to be used to determine local taxing jurisdictions fails to notify the Department that the dealer will use a method described in subparagraph (a)1., the dealer will be assigned an initial collection allowance of .25 percent. If a dealer is assigned a collection allowance of .25 percent due to failure to notify the Department of use of a method described in subparagraph (a)1., the dealer will be assigned a .75 percent collection allowance upon subsequently providing a completed Form DR-700020. The dealer will be entitled to a refund or credit of the difference between the .25 percent collection allowance initially assigned and the .75 percent collection allowance during any period the dealer was using an eligible method and claiming the lower allowance prior to notifying the Department. The following persons are not responsible for collecting and remitting local communications services taxes and are not required to file Form DR-700020:

1. Direct-to-home satellite providers;

2. Resellers of prepaid calling arrangements;

3. Direct pay permit applicants with no obligation to collect and remit local communications services taxes;

4. Pay telephone operators; and,

5. Persons who will make no sales of communications services except to purchasers who purchase for resale in compliance with the provisions of Rule 12A-19.060, F.A.C.

(c) A communications services tax dealer that assigns customer service addresses using both methods that are eligible for the .75 percent collection allowance and methods that are eligible for only the .25 percent collection allowance must indicate on Form DR-1 or Form DR-700020, as provided in paragraph (b), all of the methods that the dealer will employ. In order to claim the .75 percent collection allowance on collections for service addresses assigned pursuant to a method or methods eligible for that collection allowance rate, a dealer will be required to file separate returns for collections eligible for each of the two collection allowances.

(3)(a) Form DR-700016, Florida Communications Services Tax Return (incorporated by reference in Rule 12A-19.100, F.A.C.), accompanied by the applicable payment, is due on the first day of the month subsequent to the sale of communications services. A return is required to be filed with the Department even when no tax is due with the return.

(b) Form DR-700016, Florida Communications Services Tax Return, contains current tax rates for each local taxing jurisdiction. These rates are also contained on the Department’s website at floridarevenue.com/taxes/rates. The Department’s website and Form DR-700016 are revised annually to reflect changes to the tax rate of local jurisdictions. Versions of Form DR-700016, Florida Communications Services Tax Return, and the applicable reporting periods and service billing dates are provided in Rule 12A-19.100, F.A.C.

(4)(a) A communications services tax is due on purchases of communications services subject to the state communications services taxes imposed under Sections 202.12 and 203.01(1)(a)2., F.S., and the local communications services tax imposed under Section 202.19, F.S., when the communications services are purchased from a seller located in Florida or in another state, territory, the District of Columbia, or foreign country who is not a registered Florida dealer.

(b) Any person who purchases communications services at retail from a Florida dealer is liable for the state communications services tax imposed under Sections 202.12 and 203.01(1)(a)2., F.S., and the local communications services taxes imposed under Section 202.19, F.S. Proof of payment of the tax to a Florida dealer is sufficient to relieve the purchaser from liability for the tax. Any person engaged in the business of providing taxable communications services in Florida who is required to be a registered Florida dealer remains liable for the communications services taxes until paid to the Department.

(c) Any person who purchases taxable communications services within Florida, or outside Florida, without payment of the applicable communications services tax is required to remit use tax to the Department based on the cost of the communications services. Persons who are not registered with the Department are required to pay use tax with Form DR-700019, Communications Services Use Tax Return (incorporated by reference in Rule 12A-19.100, F.A.C.), on a semi-annual basis. To avoid penalty and interest for late filing, the payment and return for the period ending June 30 must be received by the Department or be postmarked on or before July 20th, and the return for the period ending December 31 must be received by the Department or be postmarked on or before January 20th.

(5) For purposes of this rule, when the 20th day falls on Saturday, Sunday, or a legal holiday, payments accompanied by returns will be accepted as timely if postmarked or delivered to the Department on the next succeeding day that is not a Saturday, Sunday, or legal holiday. For purposes of this rule, a legal holiday means a holiday that is observed by federal or state agencies as a legal holiday as this term is defined in Chapter 683, F.S., and s. 7503 of the Internal Revenue Code of 1986, as amended. A “legal holiday” pursuant to s. 7503 of the Internal Revenue Code of 1986, as amended, means a legal holiday in the District of Columbia or a statewide legal holiday at a location outside the District of Columbia but within an internal revenue district.

(6) Purchasers paying communications services use tax directly to the Department are not allowed to deduct a collection allowance as compensation for the prescribed record keeping, accounting for, and timely remittance of taxes imposed by and administered under Chapter 202, F.S.

(7) The failure of any dealer to secure a tax return for communications services tax does not relieve the dealer from the requirement to file a return or to remit tax due to the Department. The Department is not authorized to extend the time for any dealer under Chapter 202, F.S., to file any return or to pay any tax due.

(8) A return for communications services tax filed with the Department that does not include the required schedules as indicated on the return is considered an “incomplete return” and subject to penalty as provided in Section 202.28(1), F.S.

(9)(a) Persons who are required to make a return or to pay taxes imposed by and administered under Chapter 202, F.S., and fail to do so will be subject to penalties, as provided in Section 202.28, F.S.

(b) Persons who fail to remit collected taxes with intent to unlawfully deprive or defraud the state or local government of its moneys or the use or benefit thereof are subject to penalties imposed under Section 202.33, F.S.

(10) Interest shall accrue on any delinquent tax at the rate established pursuant to Section 213.235, F.S., and Rule 12-3.0015, F.A.C. (prorated daily). Interest accrues on the amount of tax due from the date of delinquency until the date on which the tax is paid.

History

• Rulemaking Authority 202.151, 202.26(3)(a), 202.27(1), 202.28(1)(b)2. FS. Law Implemented 202.12(1), 202.151 202.16, 202.19(1), 202.22(6), 202.27, 202.28(1), (2), 202.30(3), 202.33(2), 202.35(1) FS. History–New 1-31-02, Amended 4-17-03, 7-31-03, 10-1-03, 9-28-04, 6-28-05, 7-16-06, 3-25-20.

Fla. Admin. Code R. 12A-19.030 Communications Services Tax Direct Pay Permits

(1) Persons who purchase communications services may apply for a communications services tax direct pay permit from the Department to assume the obligation of self-accruing and remitting to the state the tax due on their purchases of communications services when:

(a) The majority of the communications services purchased for use by a person are for communications that originate outside Florida and terminate within Florida; or

(b) The taxable status of sales of communications services will be known only upon use.

(2) For purposes of this rule, the term “person” means a single legal entity and does not mean a group or combination of affiliated entities or entities controlled by one person or group of persons.

(3)(a) To request a Communications Services Tax Direct Pay Permit, a person must file form DR-700030, Application for Self-Accrual Authority/Direct Pay Permit Communications Services Tax (incorporated by reference in Rule 12A-19.100, F.A.C.), with the Department, in the manner provided on the form.

(b) Each permit holder must hold a valid dealer’s Communications Services Tax Certificate of Registration (form DR-700014) issued by the Department. Persons that are not registered with the Department for the communications services tax must file a Florida Business Tax Application (form DR-1) with the Department. If form DR-700030, Application for Self-Accrual Authority/Direct Pay Permit Communications Services Tax accompanies form DR-1, then form DR-700020, Notification of Method Employed to Determine Taxing Jurisdiction (Communications Services Tax) (incorporated by reference in Rule 12A-19.100, F.A.C.), is only required to be filed if an applicant will be responsible for collecting and remitting local communications services taxes on sales of communications services.

(4)(a) The effective date of a Communications Services Tax Direct Pay Permit is the postmark date of the application or, when delivered by means other than the United States Postal Service, the date the application is received by the Department.

(b) The Department will specify on each communications services tax direct pay permit the specific taxes for which the dealer is authorized to self-accrue and remit tax directly to the Department. When a direct pay permit authorizes self-accrual of any local communications services taxes, each service address that a direct pay permit applies to will be identified.

(c)1. A communications services tax direct pay permit expires five (5) years from the effective date. The expiration date shall be the end of the month preceding five (5) years from the effective date, if the effective date is on or before the 15th of the month. The expiration date shall be the end of the month that is five (5) years from the effective date, if the effective date is after the 15th of the month. The Department will provide a Renewal Notice and Application for Self-Accrual Authority/Direct Pay Permit – Communications Services Tax (Form DR-700032, incorporated by reference in Rule 12A-19.100, F.A.C.) to a permit holder sixty (60) days prior to the expiration date of a permit. Holders of a communications services tax direct pay permit whose certificate will expire must complete Form DR-700032 prior to expiration of their current direct pay permit. Persons that fail to receive Form DR-700032 or who need more information regarding the notice may contact the Department at Account Management, Florida Department of Revenue, P.O. Box 6480, Tallahassee, Florida 32314-6480.

2. When the registration of a permit holder has been canceled, and the permit holder no longer holds a valid dealer’s Communications Services Tax Certificate of Registration, the permit holder must surrender the permit to the Department for cancellation. To surrender a permit, the permit holder must forward the permit to Account Management, Florida Department of Revenue, P.O. Box 6480, Tallahassee, Florida 32314-6480.

3. Upon expiration of the purchasing customer’s communications services tax direct pay permit, a dealer is required to collect and remit the applicable communications services tax from that customer.

(5) COMMUNICATIONS SERVICES TAX Direct Pay Permit for Interstate Communications Services.

(a) Persons issued a direct pay permit under the provisions of this subsection will receive Form DR-700031, Communications Services Tax Direct Pay Permit. Permit holders must provide a copy of Form DR-700031 to the communications services dealer to purchase communications services identified on the permit tax-exempt at the time of purchase.

(b) Permit holders are required to pay each calendar year to the Department an amount not to exceed the following:

1. $100,000 in communications services taxes, imposed under Sections 202.12 and 203.01(1)(a)2., F.S., on all charges for interstate communications services that originate outside Florida and terminate inside Florida that are billed to a single entity; or

2. $100,000 in communications services taxes, imposed under Sections 202.12 and 203.01(1)(a)2., F.S., on all charges for interstate communications services that originate outside Florida and terminate inside Florida that are billed to a single entity and $25,000 in local communications services tax, imposed under Section 202.19(1), F.S., on charges for interstate communications services that originate outside Florida and terminate inside Florida that are billed to each individual service address identified on a permit in any municipality or county imposing a local communications services tax.

(c) The filing of the returns for the taxes identified on a direct pay permit must be made on a monthly basis, and the tax may be remitted in one of the following manners:

1. The tax due may be prorated throughout the calendar year;

2. The tax due, based on a permit holder’s purchases, may be paid to the Department as the applicable tax is accrued; or

3. The total amount of the tax due, not to exceed the amount of the partial exemption authorized under the permit, may be paid in full as a single payment with the first return of each calendar year. Subsequent returns must be filed indicating that no tax is due with the return.

(d) A return must be filed by a direct pay permit holder even if no tax is due.

(e) A permit holder must pay its tax obligation to the Department using electronic funds transfer, as required by Section 202.30(1), F.S., and rule Chapter 12-24, F.A.C., and must submit its return using electronic data interchange, as required by Section 202.30(2), F.S., and rule Chapter 12-24, F.A.C.

(f) In the calendar year of issuance, any amounts of communications services taxes paid by a permit holder to its provider(s) after the effective date of a direct pay permit will be included in the total amount of communications services tax due to the Department for that calendar year. When remitting the remaining amounts to the Department, the amount paid directly to communications services provider(s) after the effective date of a permit may be deducted from the total amount due to the Department. In the event that a permit holder has paid to its provider(s) an amount that exceeds the amount of tax allowed by the permit, the permit holder must obtain the applicable refund or credit from its provider(s).

(g) Communications services taxes and local communications services taxes are due and must be paid to the selling dealer or directly to the Department on all charges for intrastate communications services and charges for interstate communications services that originate inside Florida and terminate outside Florida.

(6) COMMUNICATIONS SERVICES TAX DIRECT PAY PERMIT FOR TAX DUE UPON DETERMINATION OF USE.

(a) Persons that are issued a direct pay permit under the provisions of this subsection will receive Form DR-700031, Communications Services Tax Direct Pay Permit. Permit holders must provide a copy of Form DR-700031 to the communications services dealer to purchase communications services identified on the permit tax-exempt at the time of purchase.

(b) Permit holders are required to file tax returns on a monthly basis and pay to the Department the amount of the state communications services tax, imposed under Sections 202.12 and 203.01(1)(a)2., F.S., and the amount of local communications services taxes, imposed under Section 202.19, F.S., due upon the determination of the use of such communications services.

(7) In the event that an original communications services tax direct pay permit is lost or destroyed, a permit holder may request a replacement by contacting the Department at (850)488-6800. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).Written requests should be addressed to Account Management, Florida Department of Revenue, P.O. Box 6480, Tallahassee, Florida 32314-6480.

(8)(a) Persons that are registered with the Department for the communications services tax do not receive a collection allowance unless communications services taxes are actually collected and remitted to the Department. See paragraph (3)(b) concerning the requirement to file form DR-700020, Notification of Method Employed to Determine Taxing Jurisdiction.

(b) Communications Services Tax Annual Resale Certificates may only be used in the manner provided by Rule 12A-19.060, F.A.C., Sales for the Purpose of Resale.

(9) RECORDKEEPING REQUIREMENTS.

(a) Any holder of a communications services tax direct pay permit is required to keep and preserve all information and documentation necessary to substantiate that the holder was qualified to receive a communications services tax direct pay permit and that the holder has paid all tax due on its purchases of communications services until such time as the taxes imposed by and administered under Chapter 202, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(b) A dealer of communications services is not required to collect communications services taxes identified on the communications services tax direct pay permit for services sold to a permit holder. A dealer shall retain a copy of a permit in its records until such time as the taxes imposed by and administered under Chapter 202, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(c) Electronic storage of all required records through use of imaging, microfiche, or other electronic storage media will be sufficient compliance with the provisions of this subsection.

Cross-Reference: Rules 12A-19.010 and 12A-19.060, F.A.C.

History

• Rulemaking Authority 202.26(3)(e), (i), 202.27(7) FS. Law Implemented 202.12(3), 202.16(4), 202.19(7), 202.27(7)(b), 202.30, 202.34(3) FS. History–New 1-31-02, Amended 4-17-03, 4-5-07.

Fla. Admin. Code R. 12A-19.041 Sales of Communications Services to a Residential Household

(1) This rule is intended to clarify the application of tax on sales of communications services to residential households and the documentation and recordkeeping requirements of dealers who make sales to residential households.

(2) APPLICATION OF TAX.

(a) Sales of communications services to a residential household are exempt from the state portion of the Florida communications services tax, imposed by Section 202.12(1)(a), F.S., and the additional gross receipts tax rate, imposed by Section 203.01(1)(b)3., F.S.

(b) Sales of communications services to a residential household remain subject to the Florida gross receipts tax rate, imposed by Section 203.01(1)(b)2., F.S., and the local communications services tax rates, imposed by Section 202.19, F.S.

(c) The partial exemption for sales to a residential household does not apply to:

1. Sales of any video service, as defined in Section 202.11(24), F.S.;

2. Sales of any direct-to-home satellite service, as defined in Section 202.11(4), F.S.; and,

3. Sales of mobile communications services, as defined in Section 202.11(7), F.S.

(3) TRANSIENT PUBLIC LODGING ESTABLISHMENTS. The partial exemption for sales to residential households does not apply to sales to any residence that constitutes all or part of a transient public lodging establishment, as defined by Section 509.013, F.S.

(a) The purchaser is required to notify the communications services dealer when the communications services are used in a transient public lodging establishment. If the purchaser fails to provide such notification, the Department will look to the purchaser, rather than the dealer, for any applicable tax, penalty, or interest due when the services were purchased for use in a transient public lodging establishment.

(b) Persons that are entitled to an exemption from sales tax on the purchase of electric power or energy, gas, or fuel for use in a residential household, as provided in Rules 12A-1.053 and 12A-1.059, F.A.C., are not entitled to the exemption from communications services tax when the service address constitutes all or part of a transient public lodging establishment.

(c) A “transient public lodging establishment,” as defined in Section 509.013, F.S., means any unit, group of units, dwelling, building, or group of buildings within a single complex of buildings that is:

1. Advertised or held out to the public as a place that is regularly rented to guests; or

2. Rented more than three times in a calendar year, with each separate rental period having a duration less than 1 calendar month or less than 30 days.

(d) Transient public lodging establishments are rented to guests whose occupancy is intended to be temporary. Examples of transient public lodging establishments include hotels, motels, bed and breakfast inns, transient apartments, and vacation rentals.

(4) DOCUMENTATION REQUIREMENTS. A communications services dealer, unless notified by the purchaser that the residential exemption does not apply, is not required to collect and remit tax on sales of communications services when:

(a) The service is sold at a rate based on a “residential schedule,” under the tariffs filed by a service provider with the Public Service Commission; or

(b) A dealer has on file a writing or document evidencing a representation that the communications services are being purchased for residential household use. The writing or document may be a customer application or a certificate that identifies the customer as purchasing the communications services for residential purposes. A “customer application” includes a record of information obtained electronically or orally from the customer in the ordinary course of business. A dealer must have acted in good faith in accepting the representation of a customer.

(5) RECORDKEEPING REQUIREMENTS.

(a) When a dealer has complied with the documentation requirements of this rule and the Department determines that tax, penalty, and interest are due, the Department will look to the customer for payment of the tax, penalty, and interest due. The Department will look to a dealer for payment of any applicable tax, penalty, and interest due when a dealer’s books and records demonstrate a failure to comply with the documentation requirements of this rule.

(b) Electronic storage of all required records through use of imaging, microfiche, or other electronic storage media will be sufficient compliance with the provisions of this subsection.

History

• Rulemaking Authority 202.26(3)(c) FS. Law Implemented 202.12(1)(a), 202.125(1), 202.13(2), 202.16(4), 202.19(9), 202.34(3) FS. History–New 1-31-02, Amended 2-7-11, 1-25-12, 1-17-13.

Fla. Admin. Code R. 12A-19.042 Governmental Exemption from the Communications Services Tax

(1)(a) The sale of communications services, as defined in Section 202.11(1), F.S., is subject to the Florida communications services tax and the local communications services tax, unless specifically exempt.

(b) This rule governs the documentation and recordkeeping requirements regarding the exemption for sales to the federal government, state government, and political subdivisions of the state or federal government from the communications services taxes.

(2) SALES TO THE FEDERAL GOVERNMENT. The sale of communications services to the Federal Government, its agencies or instrumentalities, or any entity that is exempt from state taxes under federal law is exempt from the Florida communications services tax and the local communications services tax.

(3) SALES TO THE STATE AND POLITICAL SUBDIVISIONS. The sale of communications services to a state or any county, municipality, or political subdivision of a state is exempt from the Florida communications services tax and the local communications services tax.

(4) DOCUMENTATION REQUIREMENTS.

(a) A dealer is not obligated to collect and remit the Florida communications services tax and the local communications services tax on such sales when either of the following two alternative documentation requirements has been met and the payments are made directly by the governmental entity.

1. A dealer has on file a writing or document evidencing a representation of the dealer’s customer that the communications services are being purchased by an entity described in subsection (2) or (3). The writing or document may be a customer application, a certificate, or a series of billing statements to the customer that identifies the customer as such an entity and that provides the customer a means to change its classification if the communications services are no longer purchased for use by the entity. A “customer application” includes a record of information obtained electronically or orally from the customer in the ordinary course of business at the time of establishing the account.

2. A dealer has on file a copy of the customer’s Florida Consumer’s Certificate of Exemption (form DR-14) identifying the customer as “federal,” “state,” “county,” or “municipality.”

(b) A dealer must have acted in good faith in accepting the representation of the customer.

(c) When a dealer accepts a payment made using an authorized Purchasing or Procurement Card (“P-Card”) that indicates on its face that it is a Florida state or local government purchasing card for official business only, a dealer should not charge any communications services taxes.

1. To substantiate the exempt nature of the sale in its books and records, a dealer is only required to either:

a. Obtain a copy of the face of the Purchasing or Procurement Card, or

b. Obtain the tax exempt number, account number, and cardholder name from the face of the card.

2. Payments made using a Purchasing or Procurement Card are direct payments by the authorizing governmental entity. A dealer is not required to obtain a copy of the governmental entity’s Consumer’s Certificate of Exemption.

3. A dealer is not obligated to determine what items the Purchasing or Procurement card may or may not be used to purchase. It is the cardholder’s responsibility to use the card only for allowable purchases.

(5) RECORDKEEPING REQUIREMENTS.

(a) When a dealer has complied with the documentation requirements of this rule and the Department determines that tax, penalty, and interest are due, the Department will look to the customer for payment of the tax, penalty, and interest due. The Department will look to a dealer for payment of any applicable tax, penalty, and interest due when a dealer’s books and records demonstrate a failure to comply with the documentation requirements of this rule.

(b) Electronic storage of all required records through use of imaging, microfiche, or other electronic storage media will be sufficient compliance with the provisions of this subsection.

History

• Rulemaking Authority 202.26(3)(c) FS. Law Implemented 202.125(2), (3), 202.13(2), 202.16(4), 202.34(3) FS. History–New 1-31-02.

Fla. Admin. Code R. 12A-19.043 Homes for the Aged and Religious and Educational Institutions Exemptions from the Communications Services Tax

(1)(a) The sale of communications services, as defined in Section 202.11(1), F.S., is subject to the Florida communications services tax and the local communications services tax, unless specifically exempt.

(b) This rule provides guidelines regarding sales by religious institutions and the documentation and recordkeeping requirements regarding the exemption for sales to homes for the aged and to religious or educational institutions from the communications services taxes.

(2) SALES TO HOMES FOR THE AGED.

(a) The sale of communications services to a home for the aged, as defined by Section 202.125(4), F.S., is exempt from the Florida communications services tax and the local communications services tax when the home for the aged is exempt from federal income tax under s. 501(c)(3) of the Internal Revenue Code, holds a valid Consumer’s Certificate of Exemption (form DR-14) issued by the Department for sales and use tax purposes, and meets one of the following provisions:

1. The home for the aged is licensed as a nursing home or an assisted living facility under Chapter 400, F.S.; or an assisted living facility under Chapter 429, F.S.; or

2. At least 75 percent of the occupants in the home for the aged are 62 years of age or older or totally and permanently disabled and the home for the aged qualifies for an ad valorem property tax exemption under Section 196.196, 196.197, or 196.1975, F.S.

(b) DOCUMENTATION REQUIREMENTS.

1. To be entitled to exemption as a home for the aged at the time of purchase, the purchaser must issue to the selling dealer a certificate signed by an authorized representative stating that the purchases are for a home for the aged, as defined by Section 202.125(4), F.S., that is exempt from federal income tax under s. 501(c)(3) of the Internal Revenue Code. Dealers are not required to obtain copies of Internal Revenue Service determination letters granting the home for the aged an exemption under s. 501(c)(3) of the Internal Revenue Code.

2. The following is a suggested format to be provided by a home for the aged to the selling dealer.

EXEMPTION CERTIFICATE FOR PURCHASES OF

COMMUNICATIONS SERVICES BY

HOMES FOR THE AGED

DATE:____________________________

TO:_______________________________ (Selling Dealer’s Business Name)

_________________________________ (Selling Dealer’s Address)

I, the undersigned, am a representative of the exempt home for the aged identified below. The purchases of communications services made on or after ________________ from the business identified above are for use by the home for the aged identified below.

The charges for the purchases of communications services from the dealer identified above will be billed to and paid directly by the exempt home for the aged identified below. These purchases are exempt from the Florida communications services tax and the local communications services tax because the entity is exempt from federal income tax under s. 501(c)(3) of the Internal Revenue Code, holds a valid Florida Consumer’s Certificate of Exemption, and is a “home for the aged,” as defined by Section 202.125(4), F.S.

Under penalties of perjury, I declare that I have read the foregoing and that the facts stated in it are true.

---

AUTHORIZED SIGNATURE ON BEHALF OF THE EXEMPT HOME FOR THE AGED

---

PRINTED NAME OF AUTHORIZED SIGNATORY AND TITLE

---

NAME OF THE EXEMPT HOME FOR THE AGED

---

ADDRESS OF EXEMPT HOME FOR THE AGED

(3) SALES TO OR BY TO RELIGIOUS INSTITUTIONS.

(a) The sale of communications services by a religious institution is exempt from the Florida communications services tax and the local communications services tax when the religious institution:

1. Is exempt form federal income tax under s. 501(c)(3) of the Internal Revenue Code; and,

2. Has an established physical place for worship at which nonprofit religious services and activities are regularly conducted and carried on.

(b) The sale of communications services to a religious institution, as defined by Section 202.125(4), F.S., is exempt from the Florida communications services tax and the local communications services tax when the religious institution is exempt from federal income tax under s. 501(c)(3) of the Internal Revenue Code and is an organization which is:

1. An organization owning and operating an established physical place for worship at which nonprofit religious services and activities are regularly conducted;

2. A nonprofit corporation the sole purpose of which is to provide free transportation services to religious institution members, their families, and other religious institution attendees;

3. A nonprofit state, district, or other governing or administrative office the function of which is to assist or regulate the customary activities of religious institutions;

4. A nonprofit corporation that owns and operates a Florida television station, at least 90 percent of the programming of which station consists of programs of a religious nature and the financial support for which, exclusive of receipts for broadcasting from other nonprofit organizations, is predominantly from contributions from the general public;

5. A nonprofit corporation the primary activity of which is making and distributing audio recordings of religious scriptures and teachings to blind or visually impaired persons at no charge; or

6. A nonprofit corporation the sole or primary function of which is to provide, upon invitation, nonprofit religious services, evangelistic services, religious education, administrative assistance, or missionary assistance for a religious institution or established physical place of worship at which nonprofit religious services and activities are regularly conducted.

(c) DOCUMENTATION REQUIREMENTS.

1. To be entitled to exemption as a religious institution at the time of purchase, the purchaser must issue to the selling dealer a certificate signed by an authorized representative stating that the purchases are for a religious institution, as defined by Section 202.125(4), F.S., that is exempt from federal income tax under s. 501(c)(3) of the Internal Revenue Code. Dealers are not required to obtain copies of Internal Revenue Service determination letters granting religious organizations exemption under s. 501(c)(3) of the Internal Revenue Code.

2. The following is a suggested format to be provided by a religious institution to the selling dealer.

EXEMPTION CERTIFICATE FOR PURCHASES OF

COMMUNICATIONS SERVICES BY

RELIGIOUS INSTITUTION

DATE: _____________________________

TO: ________________________________ (Selling Dealer’s Business Name)

________________________________ (Selling Dealer’s Address)

I, the undersigned, am a representative of the exempt religious institution identified below. The purchases of communications services made on or after _________________________ from the business identified above are for use by the exempt religious institution identified below.

The charges for the purchases of communications services from the dealer identified above will be billed to and paid directly by the exempt religious institution identified below. These purchases are exempt from the Florida communications services tax and the local communications services tax because the entity is exempt from federal income tax under s. 501(c)(3) of the Internal Revenue Code and is a “religious institution” as that term is defined by Section 202.125(4), F.S.

Under penalties of perjury, I declare that I have read the foregoing and that the facts stated in it are true.

---

AUTHORIZED SIGNATURE ON BEHALF OF THE EXEMPT INSTITUTION

---

PRINTED NAME OF AUTHORIZED SIGNATORY AND TITLE

---

NAME OF THE EXEMPT INSTITUTION

---

ADDRESS OF EXEMPT INSTITUTION

(4) EDUCATIONAL INSTITUTIONS.

(a) The sale of communications services to an educational institution, as defined by Section 202.125(4), F.S., is exempt from the Florida communications services tax and the local communications services tax.

(b) The term “educational institution” only refers to organizations that are exempt from federal income tax under s. 501(c)(3) of the Internal Revenue Code.

(c) “Educational institutions” include:

1. State-tax supported, parochial, religious institution, and nonprofit private schools, colleges, or universities that conduct regular classes and courses of study required for accreditation by or membership in the Southern Association of Colleges and Schools, the Florida Council of Independent Schools, or the Florida Association of Christian Colleges and Schools, Inc.;

2. Nonprofit private schools that conduct regular classes and courses of study accepted for continuing education credit by a board of the Division of Medical Quality Assurance of the Department of Health;

3. Nonprofit libraries;

4. Nonprofit art galleries;

5. Nonprofit performing arts centers that provide educational programs to school children, which programs involve performances or other educational activities at the performing arts center and serve a minimum of 50,000 school children a year; and,

6. Nonprofit museums that are open to the public.

(d) A state-tax supported school, college, or university that is exempt as a governmental organization described in Rule 12A-19.042, F.A.C., and as an educational institution as described in this rule may claim either exemption.

(e) DOCUMENTATION REQUIREMENTS. To be entitled to exemption as an educational institution at the time of purchase, the purchaser must issue to the selling dealer a certificate signed by an authorized representative stating that the purchases are for an educational institution, as defined by Section 202.125(4), F.S., that is exempt from federal income tax under s. 501(c)(3) of the Internal Revenue Code. Dealers are not required to obtain copies of Internal Revenue Service determination letters granting educational institutions exemption under s. 501(c)(3) of the Internal Revenue Code.

(f) The following is a suggested format to be provided by an educational institution to the selling dealer.

EXEMPTION CERTIFICATE FOR PURCHASES OF

COMMUNICATIONS SERVICES BY

EDUCATIONAL INSTITUTIONS

DATE: ____________________________

TO: ______________________________ (Selling Dealer’s Business Name)

_________________________________ (Selling Dealer’s Address)

I, the undersigned, am a representative of the exempt educational institution identified below. The purchases of communications services made on or after _________________________ from the business identified above are for use by the exempt educational institution identified below.

The charges for the purchases of communications services from the dealer identified above will be billed to and paid directly by the exempt educational institution identified below. These purchases are exempt from the Florida communications services tax and the local communications services tax because the entity is exempt from federal income tax under s. 501(c)(3) of the Internal Revenue Code and is an “educational institution,” as defined by Section 202.125(4), F.S.

Under penalties of perjury, I declare that I have read the foregoing and that the facts stated in it are true.

---

AUTHORIZED SIGNATURE ON BEHALF OF THE EXEMPT INSTITUTION

---

PRINTED NAME OF AUTHORIZED SIGNATORY AND TITLE

---

NAME OF THE EXEMPT INSTITUTION

---

ADDRESS OF EXEMPT INSTITUTION

(5) RECORDKEEPING REQUIREMENTS.

(a) When a dealer has complied with the documentation requirements of this rule and the Department determines that tax, penalty, and interest are due, the Department will look to the customer for payment of the tax, penalty, and interest due. The Department will look to a dealer for payment of any applicable tax, penalty, and interest due when a dealer’s books and records demonstrate a failure to comply with the documentation requirements of this rule.

(b) Electronic storage of all required records through use of imaging, microfiche, or other electronic storage media will be sufficient compliance with the provisions of this subsection.

History

• Rulemaking Authority 202.26(3)(c) FS. Law Implemented 202.125(4), 202.13(2), 202.16(4), 202.26(2), 202.34(3) FS. History–New 1-31-02, Amended 4-17-03, 1-1-04.

Fla. Admin. Code R. 12A-19.050 Notification of Local Communications Services Tax Rate Changes and Permit Fee Elections

(1) Any municipality or county that adopts, repeals, or changes a local communications services tax rate or changes a permit fee election must notify the Department as provided in this rule.

(a) Notification of local communications services tax rate changes and changes in permit fee elections must be made on form DR-700021, Local Communications Services Tax Notification of Tax Rate Change (incorporated by reference in Rule 12A-19.100, F.A.C.), and a copy of the applicable resolution or ordinance must be submitted with the notification.

(b) Except as otherwise provided in subsection (4):

1. Local communications services tax rate changes are effective as to taxable communications services included on bills dated on or after the January 1 subsequent to adoption of the change;

2. The municipality or county adopting a change in local communication services tax rates or in permit fee election must notify the Department by the September 1 immediately preceding the January 1 effective date; and,

3. The Department must provide notice of any change in local communication services tax rates to all affected dealers of communications services at least 90 days before the January 1 effective date.

(c) In the event a local government fails to notify the Department of any rate change within the required time as set forth in this rule, the Department is not liable for any loss of or decrease in revenue that results from such error, omission, or untimely action on the part of the local government.

(2) Permit Fee Elections.

(a) If a municipality or charter county elects to not require permit fees, the total rate for the local communications services tax as computed under Section 202.20, F.S., for that municipality or charter county may be increased by ordinance or resolution by an amount not to exceed a rate of 0.12 percent.

(b) If a noncharter county changes its election and exercises its authority to collect permit fees, the rate of the local communications services tax imposed by the jurisdiction will automatically be reduced by the rate increase in the local communications services tax, if any.

(c) Any county or municipality that changes its election and exercises its authority to collect permit fees must provide written notification to all dealers of communications services in the jurisdiction by the September 1 immediately preceding the January 1 effective date of the change of election.

(d) If a noncharter county elects to not require permit fees, the total rate for the local communications services tax as computed under Section 202.20, F.S., for that noncharter county may be increased by ordinance or resolution by an amount not to exceed a rate of 0.24 percent, to replace the revenue the noncharter county would otherwise have received from permit fees for providers of communications services.

(3) Emergency Local Rate Changes.

(a) Any jurisdiction may adjust its local communications services tax rate by emergency ordinance or resolution as provided in Section 202.20(2)(a)3., F.S. Emergency rate changes take effect for taxable services included on bills that are dated on or after the first day of the first month beginning at least 60 days after adoption of the rate change.

(b) A local taxing jurisdiction must notify the Department, using form DR-700021, Local Communications Services Tax Notification of Tax Rate Change (incorporated by reference in Rule 12A-19.100, F.A.C.), immediately upon adoption of an emergency rate change, but not less than 60 days prior to its effective date. The Department will provide written notice of the emergency rate adoption to affected dealers within 30 days after receipt of notification from the local taxing jurisdiction.

(c) A copy of the emergency ordinance or resolution adopting the rate change must be provided to the Department. The emergency ordinance or resolution must specify the new rate and effective date.

(4) In addition to the methods used by the Department to notify dealers of changes in the tax rate pursuant to Sections 202.20(2) and 202.21, F.S., the Department provides the tax rates for each local taxing jurisdiction by listing the rates on the Department’s website at floridarevenue.com/taxes/rates and on form DR-700016, Florida Communications Services Tax Return (incorporated by reference in Rule 12A-19.100, F.A.C.). The Department’s website and form DR-700016 are revised when the tax rate in any local taxing jurisdiction changes.

History

• Rulemaking Authority 202.21 FS. Law Implemented 202.20(2)(a), 202.21, 337.401(3)(c), (j) FS. History–New 1-31-02, Amended 4-17-03, 5-9-13, 1-1-24.

Fla. Admin. Code R. 12A-19.060 Sales for the Purpose of Resale

(1) A sale for the purpose of resale is excluded from the tax imposed by and administered under Chapter 202, F.S., only when the sale is made in strict compliance with the provisions of this rule.

(2) For purposes of this rule, the following terms are defined as:

(a) A “dealer” means a person registered with the Department as a provider of communications services in Florida.

(b) An “active registered dealer” means a person who is registered with the Department as a communications services tax dealer and who is required to file a communications services tax return at least once during each applicable reporting period, as provided in Section 202.17(6), F.S.

(c) A “purchaser” means the person paying for or obligated to pay for communications services.

(3) A “sale for the purpose of resale” occurs when a person purchases communications services from a dealer and then resells the communications services, uses the communications services as a component part of communications services that are offered for retail sale, or integrates the purchased communications services into communications services offered for retail sale.

(4) ANNUAL RESALE CERTIFICATES ISSUED BY THE DEPARTMENT.

(a) Each newly registered dealer will receive a Communications Services Tax Certificate of Registration (Form DR-700014) and a Communications Services Tax Annual Resale Certificate (Form DR-700015). For each calendar year, the Department will issue to each active registered dealer a Communications Services Tax Annual Resale Certificate that specifically identifies the valid period of the certificate.

(b) The business name and mailing address of the certificate holder, the certificate/business partner number, the registration effective date, and the expiration date of the certificate will be indicated on each Communications Services Tax Annual Resale Certificate.

(c) The effective date of a dealer’s initial Communications Services Tax Annual Resale Certificate will be the postmark date of the application or, when delivered by means other than the United States Postal Service, the date the application is received by the Department.

(d) Dealers may obtain a copy of their Communications Services Tax Annual Resale Certificate through a secure link on the Department’s website at floridarevenue.com, by visiting any local Department of Revenue Service Center to personally obtain a copy or by contacting the Department at (850)488-6800. Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY). Written requests should be addressed to Account Management, Florida Department of Revenue, P.O. Box 6480, Tallahassee, Florida 32314-6480.

(5) A dealer is not required to collect tax when a copy of the certificate is provided to the selling dealer in lieu of payment of the tax on any sale made on or after the registration effective date and on or prior to the certificate expiration date, as indicated on the certificate, and when the selling dealer receives a copy of the certificate in good faith.

(6) A dealer making a sale for resale is required to document the exempt sale by CHOOSING ONE of the following three methods:

(a) COPIES OF ANNUAL RESALE CERTIFICATES OBTAINED BY THE SELLING DEALER. A selling dealer who makes a sale for the purpose of resale must obtain a signed copy of the purchaser’s current Communications Services Tax Annual Resale Certificate or a Transaction Resale Authorization Number or Vendor Resale Authorization Number issued by the Department.

1. A selling dealer may make sales for resale to a purchaser whose current Communications Services Tax Annual Resale Certificate is on file without seeking a new certificate for each subsequent transaction during that calendar year. A new Communications Services Tax Annual Resale Certificate must be obtained each calendar year. Except for sales made to purchasers who purchase on account from the dealer on a continual basis, a selling dealer may only make exempt sales for resale to purchasers during the calendar year for which the purchaser’s Communications Services Tax Annual Resale Certificate appears valid on its face.

2. For sales made to purchasers who purchase on account from a dealer on a continual basis, the selling dealer may rely upon the Communications Services Tax Annual Resale Certificate beyond the expiration date of the certificate and is not required to obtain a new certificate each calendar year.

a. For purposes of this paragraph, the phrase “purchase on account from a dealer on a continual basis” means that the selling dealer has a continuing business relationship with a purchaser and makes recurring sales on account to that purchaser in the normal course of business.

b. For purposes of this paragraph, a sale “on account” refers to a sale where the dealer extends credit to the purchaser and records the debt as an account receivable, or where the dealer sells to a purchaser who has an established cash or cash on delivery (C.O.D.) account, similar to an “open credit account.”

c. For purposes of this paragraph, purchases are made from a selling dealer on a “continual basis” if the selling dealer makes sales to the purchaser no less frequently than once in every twelve-month period in the normal course of business.

(b) TRANSACTION RESALE AUTHORIZATION NUMBER ISSUED PRIOR TO OR AT THE POINT-OF-SALE – VALID FOR SINGLE TRANSACTION ONLY. In lieu of obtaining a signed copy of the purchaser’s Communications Services Tax Annual Resale Certificate for each tax-exempt sale made for the purposes of resale, the selling dealer may obtain a Transaction Resale Authorization Number or a Vendor Resale Authorization Number from the Department.

1. A “transaction resale authorization number” must be obtained by the selling dealer prior to or at the point-of-sale by using the Department’s on-line Certificate Verification System at floridarevenue.com/taxes/certificates or by calling the Department’s nationwide toll-free telephone verification system at 1(877)357-3725.

2. When using the Department’s on-line Certificate Verification System, the dealer may key up to five (5) purchaser’s communications services tax certificate/business partner numbers into the system. When using the Department’s automated nationwide toll-free verification system, the selling dealer is prompted to key in a single purchaser's communications services tax certificate/business partner number. The system will either issue a 13-digit transaction resale authorization number or alert the selling dealer that the purchaser does not have a valid resale certificate. Selling dealers using the automated telephone verification system who do not have a touch-tone phone will be connected to a live operator Monday through Friday (excluding holidays) 8:00 a.m. to 5:00 p.m. (Eastern Time). Persons with hearing or speech impairments may call the Florida Relay Service at 1(800)955-8770 (Voice) and 1(800)955-8771 (TTY).

3. A transaction resale authorization number is not valid to exempt subsequent resale purchases made by the same purchaser. A selling dealer must obtain a new transaction resale authorization number for each and every resale transaction.

4. The selling dealer must document the transaction resale authorization number on the sales invoice, purchase order, or a separate form that is prepared by either the purchaser or the selling dealer.

(c) VENDOR RESALE AUTHORIZATION NUMBER FOR REGULAR CUSTOMERS WHO HAVE PREVIOUSLY SUBMITTED DOCUMENTATION TO THE SELLING DEALER – VALID FOR CALENDAR YEAR ISSUED. In lieu of obtaining a Transaction Authorization Number or a signed copy of the purchaser’s valid Communications Services Tax Annual Resale Certificate for each tax-exempt sale made for the purposes of resale, the selling dealer may obtain a Vendor Resale Authorization Number from the Department. This option is available to selling dealers throughout the calendar year without limitation.

1. The “Vendor Resale Authorization Number” is a customer-specific authorization number that will be valid for all sales for resale made to a particular customer during the calendar year. When obtaining a Vendor Resale Authorization Number, the selling dealer must obtain a signed copy of the purchaser’s Communications Services Tax Annual Resale Certificate to document that the purchaser is authorized to make tax-exempt purchases for the purposes of resale. Once a Vendor Resale Authorization Number is obtained for that customer, the selling dealer is not required to obtain a Communications Services Tax Annual Resale Certificate from that customer each year.

2. To obtain vendor resale authorization numbers, the selling dealer must use the Department’s on-line Certificate Verification System at floridarevenue.com/taxes/certificates. The system also allows the user to upload a batch file of up to 50,000 accounts for verification of a Communications Services Tax Annual Resale Certificate number and to, 24 hours later, retrieve the file containing the Vendor Authorization Numbers for sales made for the purposes of resale to each purchaser during the calendar year.

3. The selling dealer may make exempt sales for resale to a customer during the period in which the vendor resale authorization number for that customer is valid. Vendor resale authorization numbers are valid for the remainder of the calendar year during which they are issued. However, vendor resale authorization numbers issued by the Department in November or December shall be valid for the remainder of the current calendar year and for the next calendar year.

(7) BURDEN OF ESTABLISHING EXEMPT NATURE OF SALES FOR RESALE.

(a) Copies of Communications Services Tax Annual Resale Certificates that are obtained after the sale from purchasers who were active registered dealers at the time of the sale and are submitted to the Department during an audit or subsequent informal protest period of the audit will be considered sufficient compliance with this rule.

(b) A sale made to a person who was not an active registered dealer at the time of the sale is a retail sale, and the sale can never be considered a sale for resale. However, a selling dealer who accepts a signed copy of a Communications Services Tax Annual Resale Certificate that appears valid on its face will not be held liable for the tax on such transaction, if it is later determined that the purchaser was not an active registered dealer.

(8) PROVISIONS APPLICABLE TO PURCHASING DEALERS.

(a) A signed copy of a Communications Services Tax Annual Resale Certificate may only be provided by an active registered dealer who holds a valid Communications Services Tax Certificate of Registration issued by the Department.

(b) A dealer whose Communications Services Tax Certificate of Registration has been revoked by the Department or whose registration has been inactivated or canceled is prohibited from providing copies of its Communications Services Tax Annual Resale Certificate in lieu of paying the tax due on its purchases of communications services. A dealer who provides a copy of its Communications Services Tax Annual Resale Certificate for any purchase after its Communications Services Tax Certificate of Registration has been revoked, inactivated, or canceled will be held liable for the tax, penalty, and interest on all such purchases.

(c) In the event that a purchasing dealer provides a copy of its Communications Services Tax Annual Resale Certificate to a selling dealer and subsequently consumes the communications services by not reselling the communications services, the purchasing dealer must pay all applicable communications services taxes directly to the Department with its first return due subsequent to the consumption of the communications services.

(9) REQUIRED RECORDS. A dealer is required to document the nature of sales made for the purpose of resale and is required to maintain copies of Communications Services Tax Annual Resale Certificates, Vendor Resale Authorization Numbers, Transaction Authorization Numbers, and receipts, invoices, billing statements, or other tangible evidence of such sales until the tax imposed by and administered under Chapter 202, F.S., may no longer be determined and assessed under Section 95.091(3), F.S. Electronic storage by a selling dealer of a copy of a purchaser’s Communications Services Tax Annual Resale Certificate and other required documentation through use of imaging, microfiche, or other electronic storage media will be sufficient compliance with the provisions of this subsection.

History

• Rulemaking Authority 202.16(2), 202.26(3)(c), (d) FS. Law Implemented 202.13(2), 202.16(2), (4), 202.17(6), 202.175, 202.177, 202.34(3), (4)(c) FS. History–New 1-31-02, Amended 7-16-06, 6-4-08, 2-17-15.

Fla. Admin. Code R. 12A-19.070 Assignment of Service Addresses to Local Taxing Jurisdictions; Liability for Errors; Avoidance of Liability Through Use of Specified Methods; Reduction in Collection Allowance for Failure to Use Specified Methods

(1)(a) Dealers of communications services that are required to collect local communications services taxes must assign each customer service address to a specific local taxing jurisdiction for purposes of determining the appropriate local communications services tax rate to be applied to sales made to that address. Local communications services taxes must be collected and remitted for each service address in accordance with the service address assignments in the effective communications services tax Address/Jurisdiction Database, which is the official electronic database maintained by the Department that is posted 90 days prior to its adoption and becomes effective every January 1 and July 1, as discussed in Rule 12A-19.071, F.A.C.

(b)1. In determining the liability for any additional local communications services taxes, interest, and penalties of a dealer who does not use a method as described in paragraph (2)(a) and has failed to assign one or more service addresses to the correct local taxing jurisdiction, the Department will take into account all underpayments and overpayments of the local tax.

2. The dealer will be held liable for the net aggregate underpayment of tax and associated interest and penalties for incorrectly assigning one or more service addresses when:

a. The dealer does not use or employ one or more of the methodologies described in paragraph (2)(a) for assigning service addresses to local taxing jurisdictions;

b. The Department determines that there are misallocations of the local communications services taxes collected by the dealer between local taxing jurisdictions during the tax period(s) examined; and,

c. The dealer’s assignment of service addresses to local taxing jurisdictions results in a combined net aggregate underpayment of local communications services tax during the tax period(s) examined.

3. In addition, a specific penalty of 10 percent of any tax collected but reported to an incorrect jurisdiction as a result of an incorrect address assignment, not to exceed $10,000 per return, will be imposed on any dealer that does not use a database described in paragraph (2)(a).

(c) When a dealer fails to respond to a contact by the Department to the dealer’s designated managerial representative regarding the completeness or accuracy of the dealer’s return, or when a dealer’s records are determined to be inadequate for purposes of determining whether the dealer properly allocated tax to or between local governments, the Department may use the best information available to determine the proper allocation or reallocation. In such circumstances, the Department shall seek the agreement of the affected local governments.

(2)(a) A dealer will not be liable for any additional local communications services taxes, interest, or penalty due solely because of an error in assigning a service address to a local taxing jurisdiction if the dealer exercised due diligence in employing one or more of the following methodologies in assigning that service address:

1. The Address/Jurisdiction Database;

2. A database that has been certified by the Department, as provided in Rule 12A-19.072, F.A.C.;

3. An enhanced zip code method, as discussed in Rule 12A-19.073, F.A.C.; or

4. A database that, upon audit by the Department, is determined to have met the accuracy rate criterion required for certification under Rule 12A-19.072, F.A.C.

(b) A dealer must timely notify the Department of the method or methods to be used in assigning service addresses. Upon initial registration with the Department for communications services tax purposes, dealers must provide that information when completing Form DR-1, Florida Business Tax Application (incorporated by reference in Rule 12A-1.097, F.A.C.). If a dealer changes the method or methods to be used, the dealer must notify the Department of the change in method or methods and of the effective date of the change on Form DR-700020, Notification of Method Employed to Determine Taxing Jurisdiction (Communications Services Tax) (incorporated by reference in Rule 12A-19.100, F.A.C.).

(c) Due Diligence. In order to avoid liability for any additional local communications services tax, penalty, and interest resulting from errors in the assignment of customer service addresses to local taxing jurisdictions under paragraph (a), a dealer must exercise due diligence in employing one or more of the described methodologies. The dealer must exercise the care and attention that is expected from and ordinarily exercised by a reasonable and prudent person, under the circumstances, when ascertaining the correct local taxing jurisdiction to which the purchaser’s service address should be assigned.

1. A dealer is exercising due diligence if that dealer expends reasonable resources to accurately and reliably implement one or more of the methods described in paragraph (a) and maintains adequate internal controls in the assignment of service addresses.

a. Internal controls in the assignment of service addresses are adequate if the dealer has in place and consistently follows procedures to obtain and incorporate accurate updates to its database at least once every six months and corrects errors in assignments of service addresses within 120 days from discovering or being notified of such errors by any person. A dealer’s internal controls must ensure that procedures are in place to prevent the recurrence of errors that the dealer was previously notified of and has previously corrected. A dealer may choose to update its database more frequently than once every six months, as long as the dealer has in place and consistently follows procedures to obtain and incorporate accurate updates. The file containing approved pending address additions and the file containing approved pending address deletions described in paragraph (1)(b) of Rule 12A-19.071, F.A.C., that are maintained by the Department and available to dealers and local government users may be used by the dealer to update the dealer’s database more frequently than the minimum of at least once every six months. However, the availability of the pending files on the Department’s website does not constitute notice to a dealer of errors in the dealer’s assignments of service addresses contained in the pending files.

b. Internal controls in the assignment of service addresses are not adequate if the procedures in place to prevent the recurrence of previously corrected errors are not used to prevent the recurrence of incorrect assignments. Once notified by any person of an error, the dealer must ensure that the corrected information is preserved in its database. In the event that an error recurs, the dealer will be considered to have exercised due diligence as required for the protection described in paragraph (a) only if the recurrence occurs even though the dealer did in fact exercise the care and attention that is expected from, and ordinarily exercised by, a reasonable and prudent person under the circumstances, with regard to the recurrence of the error.

2. A communications services dealer must maintain records to establish that the dealer has exercised due diligence for the period of time during which the Department is authorized to assess taxes on sales of communications services by that dealer. Examples of such records include instructions or procedures provided to employees, contracts and correspondence with third-party vendors or service providers concerning the acquisition or maintenance of data, documentation establishing that the data was consistently updated at least once every six months, records concerning customer or local taxing jurisdiction objections to the assignment of service addresses and responses to those objections, records of changes made to the assignment of service addresses and when the changes were made, and any other records that pertain to the acquisition, maintenance, and revision of the data upon which service address assignments are based. For purposes of documenting that the dealer corrected errors within 120 days of notice or discovery, dealers should maintain documentation that establishes that the amount of time between the initial notification or discovery of the error and correction of the error did not exceed 120 days. Keeping records of each step within the process or procedures used to correct the error is not necessary; however, to establish due diligence, the dealer must be able to demonstrate that the overall time required to correct errors did not exceed 120 days. A dealer will not be entitled to the protection described in paragraph (a) during any period that the dealer does not have records establishing that the dealer exercised due diligence for that period.

3. If a communications services dealer uses a certified database provided by a third-party vendor, the communications services dealer must exercise due diligence in its own conduct in using the database. A dealer using a certified database provided by a third-party vendor is exercising due diligence if that dealer expends reasonable resources to accurately and reliably implement the third-party vendor’s certified database and maintains adequate internal controls in the assignment of service addresses. As part of its due diligence, the dealer must comply with the vendor’s instructions or directions in the dealer’s use of the certified database. Further, the dealer has a duty to take reasonable steps to ascertain that the vendor maintains the database so as to ensure continuing qualification for certification. For example, if a vendor failed to provide an update to the database when scheduled to do so, a reasonable and prudent dealer relying on that vendor’s database would contact the vendor and make inquiry. A dealer that uses a third-party vendor’s certified database must ensure that when the dealer discovers or is notified of errors in assignments of service addresses, the errors are corrected within 120 days from discovering or being notified of such errors and that procedures are in place to ensure that the error is not repeated when a subsequent update is obtained from the vendor. Nothing in this subparagraph requires a dealer using a certified database to update its database more than two (2) times a year, so long as each update incorporates all changes received from the vendor since the prior update.

(d) If a communications services dealer uses multiple databases or methodologies, such dealer is protected from liability for any additional local communications services tax, interest, and penalty only as to service addresses assigned as specified in paragraph (a) of this subsection. Such a dealer is liable as provided in subsection (1) for any additional local communications services taxes, interest, and penalties in regard to erroneous jurisdictional assignments for any service address not assigned by a methodology described in paragraph (a). A dealer that uses multiple databases must maintain documents demonstrating that a service address has been assigned employing a methodology described in paragraph (a) in order to be held harmless for any additional local communications services taxes resulting from erroneous assignment of that service address.

(e)1. Employing one or more of the methods described in paragraph (a) protects a dealer from liability for any additional local communications services taxes and related interest and penalties that would otherwise have been due to a local taxing jurisdiction. All requests by a purchaser for a refund or credit must comply with the provisions of Section 202.23, F.S., which controls a purchaser’s entitlement to a refund or credit. A dealer’s employment of one or more of the methods described in paragraph (a) does not deprive a purchaser of the right to a refund or credit of overpayment of local communications services taxes resulting from an erroneous assignment of that customer’s service address to a local taxing jurisdiction with a higher rate than that in effect in the correct local taxing jurisdiction. If a purchaser complies with the procedural requirements of Section 202.23, F.S., and establishes that the dealer has incorrectly assigned the purchaser’s service address and that an overpayment of local communications services tax has resulted, the dealer must refund or credit the amount of the overpayment to the purchaser. Upon making such refund or credit, the dealer would be entitled to an equal refund or credit from the Department upon proper reporting to the Department of the amount and jurisdictions involved. Dealers are not entitled to retain or take credits for taxes collected from any customers assigned to an incorrect local taxing jurisdiction in excess of the taxes due to the correct local taxing jurisdiction unless a refund or credit has been provided to the customer.

2. For purposes of this paragraph, a purchaser that requests a refund or credit from the provider in accordance with the provisions of Section 202.23, F.S., and that establishes that a dealer has assigned the purchaser’s service address to a different local taxing jurisdiction from the one to which that address was assigned in the effective Address/Jurisdiction Database as of the date of the sale has established a presumption that the dealer’s assignment was erroneous, because the effective Address/Jurisdiction Database is conclusive for purposes of the communications services taxes. If a dealer believes that the assignment of the purchaser’s address in the Department’s database is incorrect, the dealer should refer the claim for a refund or credit to the Department for a determination in accordance with the procedures in Section 202.23, F.S. A dealer who assigned a purchaser’s service address in accordance with the effective Address/Jurisdiction Database at the time of the sale on which the purchaser asserts that tax was overpaid should refer the purchaser to the Department in order for the purchaser to object to the Address/Jurisdiction Database as a substantially affected person. The dealer is not required to make a refund or credit to the purchaser unless the Department has subsequently revised the assignment of that address to correct an error, such revision was to the effective Address/Jurisdiction Database that became effective prior to the date of the sale involved in the claim as provided in paragraph (3)(g) of Rule 12A-19.071, F.A.C., and the purchaser has requested a refund or credit in the manner required by Section 202.23, F.S. The provisions of this rule are subordinate to Section 202.23, F.S., and are intended to provide additional information regarding the effect of incorrect service address assignments by dealers who are employing a method identified in paragraph (2)(a).

(3) Collection Allowance.

(a) Any communications services dealer that employs one or more of the methodologies described in subparagraph (2)(a)1., (2)(a)2. or (2)(a)3. for assigning service addresses to local taxing jurisdictions is entitled to a collection allowance of .75 percent on taxes collected on service addresses assigned using the described methodologies and will not be denied the collection allowance solely because the dealer assigned one or more addresses to an incorrect local taxing jurisdiction. Any communications services dealer that employs any methodology that is not described in subparagraph (2)(a)1., (2)(a)2. or (2)(a)3. for assigning service addresses to local taxing jurisdictions is entitled to a collection allowance of .25 percent on taxes collected on service addresses assigned using such other methodology. A communications services dealer who is not liable for an assessment of additional local communications services taxes, interest, and penalties by reason of employing a database that is found upon audit to meet the accuracy criteria for certification, as described in subparagraph (2)(a)4., is entitled to a collection allowance of .25 percent until such time as an application for certification of the database is made and approved.

(b) A communications services dealer must maintain records to demonstrate that a .75 percent collection allowance was claimed only in regard to taxes that were collected for service addresses that were assigned employing one or more of the methodologies that qualify for that allowance. If a communications services dealer’s records do not clearly establish that the assignment of the service addresses was made employing one or more of the methodologies described in subparagraph (2)(a)1., (2)(a)2. or (2)(a)3., the dealer shall be entitled to only a .25 percent collection allowance on sales made to such service addresses.

(c) A communications services dealer must also timely file its return, remit all tax reported, and meet all the other requirements of Section 202.28, F.S., in order to be entitled to any collection allowance. This rule deals only with determining the amount of collection allowance available to a dealer who otherwise qualifies to receive the allowance. It does not create any separate entitlement to an allowance other than that set forth in Section 202.28, F.S.

History

• Rulemaking Authority 202.26(3)(b), (f), (g), 202.28(1) FS. Law Implemented 202.22(1), (4), (5), (6), (8), 202.23, 202.28, 202.34(1)(a), 202.35(3) FS. History–New 11-14-05, Amended 12-20-07, 1-17-13, 3-25-20.

Fla. Admin. Code R. 12A-19.071 Department of Revenue Electronic Database

(1)(a) The Department maintains an electronic database that assigns service addresses to local taxing jurisdictions in a format that satisfies the requirements of Section 202.22(2)(a), F.S. The electronic database, referred to as Florida’s Address/Jurisdiction Database, is maintained on the Department’s website at pointmatch.floridarevenue.com. An updated Address/Jurisdiction Database is posted to the Department’s website 90 days prior to adoption of the Address/Jurisdiction Database. The updated Address/Jurisdiction Database is adopted and becomes effective every January 1 or July 1. References to the effective Address/Jurisdiction Database refer to the official database that is available on the website and conclusive for purposes of communications services tax, which was adopted the previous January 1 or July 1. The effective Address/Jurisdiction Database does not include the information contained in the pending files described in paragraph (b).

(b) When a change to the Address/Jurisdiction Database has been approved, the approved pending address additions and approved pending address deletions are stored in separate files until they are included in the next scheduled update of the database. These pending files include corrections of any errors discovered since the last preceding update, as well as changes in addresses or jurisdictional boundaries, that are based on information provided by local taxing jurisdictions and have been approved by the Department. These pending files contain the most recent local taxing jurisdictional assignment information. The individual address lookup feature searches the current database and the pending files and may reflect information that has not yet been incorporated into the database available for downloading and use by local taxing jurisdictions and insurers. Dealers may use the pending files to update their service address assignments between the January 1 and July 1 effective dates of the Address/Jurisdiction Database even though such use of the pending files is not required to satisfy due diligence requirements. In such cases, the individual address lookup page carries a statement notifying the viewer that it reflects a pending change to the database.

(c) Registered local taxing jurisdictions and communications services dealers have the capability of downloading databases of addresses assigned to each local taxing jurisdiction. A file of addresses in the format adopted by the Federation of Tax Administrators and the Multistate Tax Commission in accordance with the federal Mobile Telecommunications Sourcing Act is available.

(d) The Department’s website also has a single address lookup feature that permits any person to enter an address and ascertain to which local jurisdiction it is assigned. The individual address lookup feature searches the pending files, as well as the effective database, and may therefore reflect information that has not yet been incorporated into the effective database. In such cases, the individual address lookup page carries a statement notifying the viewer that it reflects a pending change to the database.

(e) The availability and effective date of the updated Address/Jurisdiction Database are announced in the Florida Administrative Register. Updates incorporate corrections of any errors discovered since the last preceding update, as well as changes in addresses or jurisdictional boundaries based on information provided by local taxing jurisdictions. Each update of the Address/Jurisdiction Database is posted on the Department’s website at least 90 days prior to adoption and is also available to dealers of communications services, vendors of databases, and other persons authorized to download the database.

(f) To fulfill its statutory responsibility to maintain the database, when the Department notices apparent errors, such as an address that is assigned to multiple jurisdictions, the Department will initiate an objection to the database in accordance with the provisions of subsection (3) and will process the objection in the same manner in which other objections are processed.

(2)(a) Local taxing jurisdictions have a continuing obligation to provide the Department with information to update the Address/Jurisdiction Database, such as changes in service addresses or address ranges, annexations, incorporations, reorganizations, and any other changes to jurisdictional boundaries. Local taxing jurisdictions must inform the Department of the identity of the jurisdictions’ officers or employees who are authorized to act as contact persons with the Department on database matters. Local taxing jurisdictions are limited to two authorized contact persons; however, local taxing jurisdictions may provide updated contact person information as frequently as necessary to ensure that the appropriate contact person can be reached by the Department to administer database matters. The contact list of authorized local government contact persons for all local taxing jurisdictions is located on the Department’s website and is available to those persons who have local government access.

(b) Local taxing jurisdictions must submit information requesting changes to the Address/Jurisdiction Database electronically, using instructions in Form DR-700002, User’s Guide for the Address/Jurisdiction Database (hereby incorporated by reference, effective 08/20, http://www.flrules.org/Gateway/reference.asp?No=Ref-13414), copies of this form can be downloaded from the Department’s website at floridarevenue.com/forms. Authorized local jurisdiction contact persons may access the login screen for registered users at pointmatch.floridarevenue.com. Local taxing jurisdictions that do not have access to computers with Internet access should contact the Department to request authorization to submit changes through alternative electronic media. The information must also be submitted on Form DR-700022, Notification of Changes to the Address/Jurisdiction Database (incorporated by reference in Rule 12A-19.100, F.A.C.).

(c) The local taxing jurisdiction must specify the effective date of any information to be incorporated in the Address/Jurisdiction Database. The effective date must be the next January 1 or July 1 after the date of submission of the information to the Department. Changes must be submitted no later than the date that is 120 days prior to the January 1 or July 1 on which changes are to be effective. The Department will review the information provided in the requests for change and store the approved changes in the approved pending files. Local governments, including special fire districts, should not submit changes during the periods September 4 to October 3 and March 4 to April 2. The Department completes its review of pending submissions for the next database update during these periods and is unable to process new submissions. Submissions of information initiated during these time periods will be denied, and a new submission will be necessary.

(d)1. Any requested changes or additions to the Address/Jurisdiction Database must be supported by competent evidence. Competent evidence to support a change to the Address/Jurisdiction Database is documentation establishing that the service addresses affected by the requested change or addition are located in the local taxing jurisdiction indicated on the request. Examples of competent evidence include annexation ordinances, articles of incorporation of a new municipality, the plat filed for a newly approved subdivision, or the enhanced 911 Master Street Address Guide (MSAG) database information relating to local law enforcement responders issued by the local jurisdiction coordinator’s office. Competent evidence must clearly designate the service addresses or address ranges that are affected.

2. If a requested change is to move an address from one local taxing jurisdiction to another, competent evidence includes the consent of the local taxing jurisdiction that did not request the change. To facilitate processing of the change, the local taxing jurisdiction requesting the change should attempt to obtain written consent to the change from an authorized contact person of the non-requesting jurisdiction. Form DR-700022 contains an authorization statement that will serve as the written consent of the non-requesting local taxing jurisdiction when signed by that jurisdiction’s authorized contact person. The Department will consider the receipt of a Form DR-700022 containing the signatures of the authorized contact persons of both the initiating and affected jurisdictions to be sufficient competent evidence. In such instances, the Department will make the change based upon the representations on the form. A local taxing jurisdiction that objects to the change should use Form DR-700022 to change the address information and, unless the affected local taxing jurisdiction signs the form, the Department will treat the request as one that must be resolved by the local taxing jurisdictions involved as provided in this paragraph. Identification of the case number associated with the address changes is insufficient by itself to demonstrate competent evidence establishing that the service addresses are located in the local taxing jurisdiction indicated on the request.

3. If the requesting jurisdiction has not obtained the written consent of the non-requesting jurisdiction, the Department will contact the non-requesting jurisdiction before making the change. Based upon the response of the non-requesting jurisdiction, the Department will take the following action in regard to the requested change:

a. If the non-requesting jurisdiction consents in writing, the Department will accept and process the change.

b. If the non-requesting jurisdiction objects in writing, the Department will treat the requested change as one that must be resolved by the local taxing jurisdictions involved as provided in subsection (3).

c. If the non-requesting jurisdiction fails to either consent or object in writing within 20 days after the date on which the Department notified that jurisdiction of the requested change, the Department will accept and process the change. This will not preclude the non-requesting jurisdiction from subsequently submitting requests to change the new address assignments after they have been processed.

4. If a requested change affects only the requesting local taxing jurisdiction and does not affect another local taxing jurisdiction, the Department will consider receipt of an affidavit signed by the authorized contact person for that local taxing jurisdiction that identifies the addresses or address ranges and states that the change affects only the requesting local taxing jurisdiction to be sufficient competent evidence. The use of an affidavit is not required but, at the option of the requesting local taxing jurisdiction, may be used in lieu of providing other documentation such as subdivision plats. In such instances, the Department will make the change based upon the representations on the form and the affidavit. A local taxing jurisdiction that objects to the change should use Form DR-700022 to change the address information and, unless the affected local taxing jurisdiction signs the form, the Department will treat the request as one that must be resolved by the local taxing jurisdictions involved as provided in subsection (3).

(e) Examples.

1. A local taxing jurisdiction approves the plat and grants the permits necessary for development of a new subdivision on February 1, 2005. The plat indicates street names but no address numbers have yet been assigned. In order for the addresses to be added to the electronic database effective the following July 1, the local taxing jurisdiction must file Form DR-700022 with a copy of the approved subdivision plat or an affidavit indicating that the change affects only the requesting local taxing jurisdiction and submit on-line address change information by March 3, 2005. If that deadline is not met, the earliest date on which the new service addresses can be added to the database is January 1, 2006. In order to meet the deadline and be certain that the actual address numbers are included, the contact person for the local taxing jurisdiction may request the addition of a range of numbers that is certain to include the actual numbers. Because the development of the subdivision affects only the requesting jurisdiction, no consent from any other jurisdiction is required.

2. A municipality annexes an area with 1500 service addresses that was formerly in an unincorporated area of the county. The annexation is effective July 1, 2004. The municipality’s database contact person timely enters address change requests for 1525 addresses on-line and files a Form DR-700022 on March 2, 2004. Included with the form are a copy of the annexation ordinance and a map with the annexed area outlined with street address ranges included in the annexed area noted. The county database contact person has not signed the Form DR-700022 or otherwise given written consent to the changes. On March 5, 2004, the Department notifies the county of the requested changes and provides copies of the municipality’s Form DR-700022, annexation ordinance, and map. The county does not respond with written consent or a written objection. On March 26, 2004, the Department processes the changes, and they are included in an update posted on April 2, 2004, to take effect July 1, 2004. The county’s database contact person notifies the Department on July 15, 2004, that the county believes the database now incorrectly assigns 25 service addresses to the municipality. The county should submit Form DR-700022 to move the addresses from the municipality to the county. The Department will handle this as a change to the database.

3. A municipality annexes an area with 1500 service addresses that was formerly in an unincorporated area of the county. The annexation is effective July 1, 2004. The municipality’s contact person timely enters address change requests for the 1500 addresses on-line and writes a letter to the county’s contact person requesting that consent be indicated by signing a Form DR-700022 that has been prepared by the municipality and enclosed with the letter. Also enclosed with the letter is a copy of the annexation ordinance and a street map on which the annexed area is outlined. The county contact person signs the Form DR-700022. The municipality submits the form to the Department on February 15, 2004. The Department will approve the changes and include them in the July 1, 2004 update to the Address/Jurisdiction Database.

(3)(a) Any substantially affected party may object to information contained in the Address/Jurisdiction Database by submitting Form DR-700025 Objection to Address Assignment in the Adress/Jurisdiction Database (incorporated by reference in Rule 12A-19.100, F.A.C.), along with competent evidence to support the party’s objection. Only objections to the effective Address/Jurisdiction Database can be considered; those objections that are not objections to the effective Address/Jurisdiction Database will be denied. Before submitting an objection, a person should check the effective Address/Jurisdiction Database to determine whether the contemplated objection is necessary. Examples of substantially affected parties include purchasers of communications services who pay local communications services taxes, dealers who are required to collect local communications services taxes, the Department of Revenue, and local taxing jurisdictions. However, local taxing jurisdictions should use Form DR-700022 to create addresses in the Address/Jurisdiction Database or to request address assignment changes. Regardless of which form is used to request changes to the Address/Jurisdiction Database, the consent of all affected jurisdictions will be required.

(b) Multiple address submissions affecting multiple jurisdictions should be segregated, based on the specific combinations of the affected jurisdictions, in a manner that segregates the changes from City A to City B from the changes from City B to City A.

(c) In the event that a dealer that is required to collect local communications services tax elects to formally object to information contained in the Address/Jurisdiction Database, the dealer must file Form DR-700025. If the dealer’s objection is to the assignment of multiple addresses or address ranges, the dealer should electronically submit the addresses in the format used to apply for certification of databases by following the on-line Instructions for Preparing and Submitting Customer Address Files for Certification Testing, as provided in paragraph (2)(a) of Rule 12A-19.072, F.A.C. In the event that the dealer is unable to submit its objection on-line, the dealer should contact the Department to request authorization to submit changes through alternative electronic media. This rule is not intended to interfere with any procedures implemented by dealers to inform local taxing jurisdictions of errors in the Address/Jurisdiction Database.

(d) Examples of competent evidence that support an inquiry into a substantially affected party’s objection include a voter registration card indicating the voter residing at a service address is entitled to vote in municipal elections or only in county elections, the enhanced 911 MSAG database, or a map that includes the boundaries of a local taxing jurisdiction and clearly places a service address inside or outside those boundaries. For example, if a map shows that a street is entirely within the boundaries of a municipality, that map is competent evidence that a service address on that street should be assigned to that municipality in the database. The Department will notify the substantially affected party of any deficiencies in the objection or competent evidence.

(e) When the Department believes that addresses or address ranges have been assigned to an incorrect local taxing jurisdiction, the Department will initiate the change by using Form DR-700025. The Department will use any information at its disposal, including enhanced 911 Master Street Address Guide database address information and information supplied by any dealer, as a basis for initiating an objection; however, in no event, will the Department change any address assignment without providing notice to the affected jurisdictions in the manner provided in paragraph (3)(f). If the change is approved, it would be included in the pending files with other approved changes for inclusion in the next update of the database.

(f) Upon receipt of an objection on a completed Form DR-700025, including competent evidence to support the objection, the Department will forward copies of the form, along with the associated documentation, to the database contact person in each affected taxing jurisdiction. The Department will provide to the affected local taxing jurisdictions Form DR-700026, Local Government Authorization for Address Changes Described on Form DR-700025 (incorporated by reference in Rule 12A-19.100, F.A.C.), to use to agree, disagree, or partially agree with the address jurisdiction changes proposed by the attached completed Form DR-700025. The Department will provide to the affected local taxing jurisdiction Form DR-700027, Local Government Authorization for Omission of Address or Incorrect Address Identification (incorporated by reference in Rule 12A-19.100, F.A.C.), to use to agree or disagree with the inclusion of a service address or address range or with changing non-jurisdictional information about a service address or address range proposed by the attached completed Form DR-700025. In case the forms become separated, the Department will include on the bottom portion of each form the same tracking number and date to identify which forms belong together. The Department will, when practicable, provide the information electronically for review by the local taxing jurisdictions. These forms will not be sent to the local taxing jurisdictions between February 1 and April 2 nor between August 4 and October 3 due to the inability of local taxing jurisdictions to make on-line changes during the updating and posting of the next effective Address/Jurisdiction Database. The local taxing jurisdictions should review the specific address(es) at issue as well as the address range(s) that will be impacted by the change to ensure that each local taxing jurisdiction retains all of the addresses that it believes are within its jurisdictional boundaries. The Department will instruct each local taxing jurisdiction to indicate in writing its determination in regard to the objection by completing the provided authorization form, either Form DR-700026 or Form DR-700027, and filing the form with the Department. If the affected local taxing jurisdictions both indicate agreement with the objection, the Department will revise the electronic database accordingly. If a local taxing jurisdiction fails to respond within a reasonable time, which shall be no less than 30 days, such jurisdiction shall be deemed to have indicated agreement with the objection. If either local taxing jurisdiction notifies the Department in writing that it does not agree with the objection, the Department will not change the address in the database. The service address will be reassigned to a local taxing jurisdiction when one of the following events occurs:

1. The Department receives written notification from the local taxing jurisdiction that did not agree with the change requested in the objection that such local taxing jurisdiction has subsequently determined that the change should be made;

2. The Department receives written notification from the party that filed the Form DR-700025 that the objection was erroneous and the assignment in the database was correct; or

3. The Department is provided with a copy of a final order, judgment, or other binding written determination resolving the jurisdictional assignment of the contested address.

(g) No communications services provider who relies on the assignment of a service address in the effective Address/Jurisdiction Database will be held liable for any additional local communications services tax, interest, or penalty in regard to that service address if the assignment is later determined to be erroneous under this subsection. All requests by a purchaser for a refund or credit must comply with the requirements of Section 202.23, F.S. When a substantially affected person files an objection to the Address/Jurisdiction Database no later than August 3 for an assignment that became effective on July 1 or no later than February 1 for an assignment that became effective on January 1 that is approved, the substantially affected person’s local taxing jurisdiction will be changed in the effective Address/Jurisdiction Database. Such a person would be entitled to a refund or credit of any local communications services taxes overcollected during the period of time that the incorrect assignment occurred in accordance with the documentation provided by the Department demonstrating approval of the objection and the date from which the change to the Address/Jurisdiction Database is effective, as long as the claim for refund or credit complies with the provisions of Section 202.23, F.S.

History

• Rulemaking Authority 202.26(3)(b), (g) FS. Law Implemented 202.22(2), 202.23 FS. History–New 11-14-05, Amended 12-20-07, 6-28-10, 1-20-14, 1-20-15, 7-8-19, 8-15-21.

Fla. Admin. Code R. 12A-19.072 Certification of Service Address Databases

(1) A communications services dealer that develops and maintains its own database for assigning service addresses to local taxing jurisdictions or a third-party vendor that provides a database for sale to communications services dealers or uses such a database in providing billing or other services to communications services dealers may apply to the Department for certification of the database. A database will be certified if it assigns street addresses, address ranges, post office boxes, and post office box ranges to the proper local taxing jurisdictions with an overall accuracy rate of 95 percent with a 95 percent level of confidence, based on a statistically reliable sample. Accuracy must be measured based on the entire geographic area within the state of Florida covered by the database for which certification is sought.

(2)(a) Application for certification must be made to the Department on Form DR-700012, Application for Certification of Communications Services Database (incorporated by reference in Rule 12A-19.100, F.A.C.), and in accordance with the instructions on the form. All applicable portions of the application must be completed. Communications services dealers and vendors that sell databases of addresses to dealers must submit the address databases for which certification is sought with their applications.

(b) The Department will notify the applicant of any errors or omissions in the application and of all additional information or documentation required within 90 days of receipt of the application. The Department will review the application and contact the individual designated in the application concerning any additional information required and the format in which such information must be submitted. The applicant shall provide access to all records, facilities, and processes reasonably required to review, inspect, or test the database within 10 working days of the Department’s request for such access.

(c)1. The Department will test the applicant’s database by comparing the assignments of service addresses to the assignments of service addresses in the Address/Jurisdiction Database, which is the Department’s on-line database described in Rule 12A-19.071, F.A.C. The Department will notify the applicant of all service addresses that do not match the Address/Jurisdiction Database, regardless of whether the applicant’s database meets the accuracy criterion for certification.

2. In the event that an applicant vendor has a software program that assigns addresses to jurisdictions rather than a database of addresses, the vendor should include a copy of the “user manual” or equivalent directions that will be provided to purchasers of the software with its application for certification. Procedures for testing the software and its assignment of addresses or address ranges to local taxing jurisdictions will be determined on a case-by-case basis. The procedures must be sufficient to ensure that the software meets an overall accuracy rate of 95 percent with a 95 percent level of confidence.

(d) Within 180 days of receipt of a completed application, the Department will issue a written determination.

1. If the notice grants certification, it will specify the expiration date, which will be three years from the date of the notice.

2. If the notice denies certification, it must specify the grounds, inform the applicant of any available remedy, and set forth procedures for protesting the denial. If the applicant cures the defects that formed the basis for denial and upon retesting the database meets the requirements for certification, the Department will issue a notice certifying the database. Under such circumstances, the Department will issue a notice certifying the database, even in cases where the applicant has filed a petition and a proceeding is pending under Chapter 120, F.S. If the defects forming the basis of the denial are based on a sample, correction of the errors identified in the sample does not constitute correction of the database.

(3) An application for recertification of a database must be submitted on Form DR-700012 when the certification period expires. If an application for recertification is received prior to the stated expiration date of the certification period, the prior certification will not expire until the Department takes final action on the application for recertification. In such cases, if the Department denies recertification, the prior certification will remain in effect until the time for administrative or judicial review of the Department’s denial of recertification has expired or, if later, the date fixed by order of the reviewing court.

(4) Certification or recertification of a database is effective upon the date of the Department’s notice approving the application. The notice approving the application is in the form of a letter stating that the database is certified and that an application for renewal should be applied for by a specified date. Unless a timely application for recertification has been filed as provided under subsection (3), a certification or recertification is effective through the date stated on the notice.

(5) In determining whether a database qualifies for certification, the Department will consider whether the applicant will implement procedures designed to maintain the accuracy level required for certification throughout the certification period. If the Department obtains information indicating that a certified database is not being properly maintained and updated to ensure on-going accuracy at the required levels, the Department will notify the applicant and review the operation and maintenance of that database. If the Department determines that a database no longer qualifies for certification and remedial steps are not promptly taken, the Department will revoke the certification. The Department will first provide notice to the applicant of its intent to revoke the certification, as provided in Section 120.60, F.S., and afford the applicant a point of entry under Chapter 120, F.S., to contest the notice of intent.

(6) Certification is contingent upon there being no material changes to the database or procedures for its updating and maintenance. If there are such changes, the applicant should inform the Department and request a determination regarding whether a new Form DR-700012 should be submitted. If practicable, the Department will test the effect of the changes rather than require a new certification procedure for the entire database. A material change is any change that could reasonably be expected to affect whether the database would still meet the 95 percent accuracy level required for certification. Examples of changes that could be material would be a substantial expansion of the service area covered by a database, the merger of the certified database with a non-certified database, a change in the sources from which information for the database is obtained, or alteration of the methods by which service addresses are assigned, updated, or corrected. Changes to the assignment of service addresses or address ranges that are made in the course of consistently followed procedures to obtain and incorporate accurate updates and to correct errors in assignments of service addresses as required to satisfy the due diligence standards set forth in paragraph (2)© of Rule 12A-19.070, F.A.C., are not material changes that require Department review of a database.

History

• Rulemaking Authority 202.26(3)(g) FS. Law Implemented 202.22(3) FS. History–New 11-14-05.

Fla. Admin. Code R. 12A-19.073 Use of Enhanced Zip Code Method to Assign Service Addresses to Local Taxing Jurisdictions

(1) An enhanced zip code method is a method of assigning service addresses to local taxing jurisdictions based on United States postal zip codes of at least nine digits.

(2) A communications services dealer may avoid liability as provided in Rule 12A-19.070, F.A.C., for any additional local communications services tax, penalty, and interest resulting from errors in assigning service addresses to an incorrect local taxing jurisdiction when the correct local taxing jurisdiction has a higher local tax rate by employing an enhanced zip code method only if the requirements of this rule are satisfied.

(3)(a) When the area covered by the enhanced zip code is not entirely located within the same local taxing jurisdiction as the post office, dealers or vendors providing databases are not permitted to presume that all service addresses within the enhanced zip code are sitused to the same local taxing jurisdiction. In some cases, the area included in an enhanced zip code overlaps local jurisdictional boundaries or is outside the local taxing jurisdiction where the post office to which a zip code is assigned is located. In addition, a dealer may provide services to customer service addresses for which an enhanced zip code is not available, because the service address is in a rural area or is without postal delivery. The dealer or the vendor must use a reasonable methodology that accurately assigns service addresses to the correct local taxing jurisdictions in such circumstances. The dealer or vendor will be considered to have used a reasonable methodology if it relies on information obtained from one or more of the following sources:

1. The Address/Jurisdiction Database, described in Rule 12A-19.071, F.A.C.;

2. A database that has been certified by the Department as provided in Rule 12A-19.072, F.A.C.;

3. Representatives of relevant local taxing jurisdictions whose responsibilities entail knowledge of the location of addresses as within or without their jurisdictions;

4. The United States Census Bureau; or

5. The United States Postal Service.

(b) The dealer must maintain records that establish the methodology used to assign service addresses as provided in this subsection.

(4) The dealer employing an enhanced zip code method to assign service addresses to local jurisdictions must satisfy the notification and due diligence requirements set forth in paragraphs (2)(b) and (c) of Rule 12A-19.070, F.A.C. For purposes of due diligence requirements, a communications services dealer or an enhanced zip code database vendor is deemed to have expended reasonable resources to accurately and reliably implement an enhanced zip code method if the requirements of subsection (3) have been met. The due diligence requirement includes the requirement to correct errors in the assignments of service addresses within 120 days of discovering or being notified by any person of such errors. The database vendor or dealer must also maintain adequate internal controls to assure the on-going accuracy of an enhanced zip code database as described in subparagraph (2)(c)1. of Rule 12A-19.070, F.A.C.

(5) Mobile communications services providers using an enhanced zip code method are subject to the safe harbor provisions of Title 4 United States Code (U.S.C.) s. 120, including the termination of the safe harbor provided by that section. Such providers will be held harmless from liability for additional local communications services tax, penalty, and interest resulting from erroneous assignments of customer service addresses to local taxing jurisdictions as provided in the federal Mobile Telecommunications Sourcing Act. On May 23, 2003, the Department provided notice, as required by Title 4 U.S.C. s. 119(b), that the Department of Revenue’s Address/Jurisdiction Database complies with the formatting requirements of Title 4 U.S.C. s. 119(a)(2) of the Mobile Telecommunications Sourcing Act.

(6) In order to be entitled to the .75 percent collection allowance, a communications services dealer that employs an enhanced zip code method to assign service addresses must satisfy the requirements of subsection (3) of this rule and the requirements of subsection (3) of Rule 12A-19.070, F.A.C.

History

• Rulemaking Authority 202.26(3)(b), (f), (g), 202.28(1) FS. Law Implemented 202.22(1), (4), (6), (7) FS. History–New 11-14-05.

Fla. Admin. Code R. 12A-19.080 Distribution Adjustments Resulting From Misallocation of Tax

(1) The purpose of this rule is to establish procedures when the Department determines that misallocations of communications services taxes require adjustments to distributions of the taxes. This determination will occur annually, with the adjustment cycle running from February 1 through January 31 of the subsequent year.

(2) DEFINITIONS: For purposes of this rule, the following terms are defined:

(a) “Distribution adjustments” are the reallocation of tax between local taxing jurisdictions or reallocation of tax distributed incorrectly to either the state, gross receipts or local portion of Communications Services Tax. This reallocation may be the result of incorrect local jurisdictional situsing, misapplication of tax on the return, or other filing errors causing tax misallocation.

(b) “Situsing” is the assignment of a service address to a local taxing jurisdiction.

(c) A “completed audit” is as an audit that has been paid and all formal or informal protest rights have been exercised or expired.

(3) DISTRIBUTION THRESHOLDS.

(a) The Department’s determination will occur annually on or about November 15 and notice of this determination will be mailed to each affected local jurisdiction.

1. When the distribution adjustment is less than ninety percent (90%) of the average monthly distributions to the affected jurisdiction for the immediately preceding six months, the Department will make such adjustments in the month immediately following the Department’s determination that misallocations occurred.

2.a. When the distribution adjustment is equal to or exceeds ninety percent (90%) of the average monthly distributions to the affected jurisdiction for the immediately preceding six months, the Department will make such adjustments beginning with the March distribution, unless affected jurisdictions seek another form of reallocation as described in sub-subparagraph 2.b. The adjustments will be made over a time period that equals the time period that the misallocations occurred.

b. Affected jurisdictions may seek another form of reallocation of proceeds other than by monthly Department distributions. The affected jurisdictions may execute a written agreement specifying a method of adjustment. A copy of the written agreement must be provided to the Department no later than the first day of the month following 90 days after the date the Department transmits notice of the misallocation.

(b) Example: A jurisdiction’s average monthly distribution is $10,000. The jurisdiction’s sum total of adjustments for the adjustment cycle is ($9,000). All adjustments are from audits with a 36-month audit period. The ($9,000) will be allocated equally over a 36-month period with a monthly adjustment of ($250). [($9000) / 36 months = ($250)].

(c) Example: A jurisdiction’s average monthly distribution is $10,000. The jurisdiction’s sum total of adjustments for the adjustment cycle is ($8,000.00). The ($8,000) adjustment will be made to the jurisdiction’s December distribution.

(4) DISTRIBUTION ADJUSTMENT TIMELINE.

(a) On February 1, distribution adjustments will be combined into one electronic file organized by county and then jurisdiction within the county. For each local jurisdiction, the file will identify the taxpayer names, federal identification numbers, and the amount of the distribution adjustment. The file will be posted to the Local Government Communications Services Tax Information Sharing System. All local jurisdictions will have 30 days to review and make general inquiries regarding their proposed distribution adjustment. A local jurisdiction may make the inquiry to the Florida Department of Revenue, Local Government Unit, by mail at 5050 W. Tennessee St., Mail Stop 1-4400, Tallahassee, FL 32399-0161, or by email to local-govt-unit@floridarevenue.com, or by phone to (850)717-6630. All general inquiries regarding proposed distribution adjustments must be postmarked or otherwise time stamped or received by March 1.

(b) At any time, a local government may request to review adjustment documentation. Local governments who seek to review the documentation regarding their distribution adjustment(s) must submit a written letter specifying which adjustment(s) the local jurisdiction wishes to review. The letter must include:

1. The name of the local government;

2. The requestor’s name, mailing address, phone number and email address;

3. The requestor’s signature; and,

4. Specification of which adjustment(s) by taxpayer name and federal identification number the local government is requesting to review. The federal identification number can be found in the Adjustment Distribution File or Distribution Data Download file posted on the Local Government Communications Services Tax Information Sharing System. The letter should be sent to the Florida Department of Revenue, Security and Disclosure Officer, P.O. Box 37372, Tallahassee, FL 32315-7372.

(c) On April 1, a final adjustments file will be posted to the Local Government Communications Services Tax Information Sharing System.

(d) On or about November 15, if the Department determines that misallocations have occurred, it will mail notification of this determination to each affected local jurisdiction.

(e) The December distribution of communications services tax will include adjustments for those jurisdictions whose net adjustments are less than ninety percent (90%) of the average monthly distributions to the affected jurisdiction for the six months immediately preceding November 1.

(f) March Distribution of the subsequent year: For those jurisdictions whose net adjustments are equal to or in excess of the ninety percent (90%) of the average monthly distributions to the affected jurisdiction for the six months immediately preceding November 1, the first distribution adjustments will occur in March, unless the Department has received a written agreement specifying a different method of adjustment from affected jurisdictions by March 1.

(g) If any date specified above falls on a Saturday, Sunday, or federal or state legal holiday, the specific action will occur on the next succeeding workday.

(5) All information posted to the Local Government Communications Services Tax Information Sharing System for all jurisdictions to review is confidential taxpayer information pursuant to Section 213.053, F.S. This information shall not be distributed by the local government, except for use(s) as described in Section 213.053(8)(v), F.S.

History

• Rulemaking Authority 213.06(1) FS. Law Implemented 202.18(3)(c), 202.231, 213.053(8)(t) FS. History–New 12-2-09.

Fla. Admin. Code R. 12A-19.100 Public Use Forms

(1)(a) The Department employs the following public-use forms and instructions in the administration of Chapter 202, F.S., Communications Services Tax, and in the administration of the Department’s electronic Address/Jurisdiction Database created pursuant to Sections 175.1015 and 185.085, F.S. These forms are hereby incorporated by reference in this rule.

(b) Copies of these forms are available, without cost, by: 1) downloading the form from the Department’s website at floridarevenue.com/forms; or, 2) calling the Department at (850)488-6800, Monday through Friday, (excluding holidays); or, 3) writing the Florida Department of Revenue, Taxpayer Services, Mail Stop 3-200, 5050 West Tennessee Street, Tallahassee, Florida 32399-0112. Persons with hearing or speech impairments may call the Department’s TDD at 711, 1(800)367-8331 or (850)922-1115.

(2) The following versions of Form DR-700016, Florida Communications Services Tax Return, are applicable to the reporting periods and service billing dates indicated:

REVISION DATE

REPORTING PERIODS

SERVICE BILLING DATES

1/26

January 2026 -

January 1, 2026 –

1/25

January 2025 – December 2025

January 1, 2025 – December 31, 2025

Form Number

Title

Effective Date

(3) DR-700012

Application for Certification of Communications Services Database (R. 10/13)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-03623)

01/14

(4)(a) DR-700016

Florida Communications Services Tax Return (R. 01/26)

(http://flrules.org/Gateway/reference.asp?No=Ref-18764)

01/26

(b) DR-700016

Florida Communications Services Tax Return (R. 01/25)

(http://flrules.org/Gateway/reference.asp?No=Ref-17779)

02/25

(5)(a) DR-700016N

Instructions for Completing the Florida Communications Services Tax (Form DR-700016) (R. 01/26)

(http://flrules.org/Gateway/reference.asp?No=Ref-18765)

01/26

(b) DR-700016N

Instructions for Completing the Florida Communications Services Tax (Form DR-700016) (N. 01/25) (http://www.flrules.org/Gateway/reference.asp?No=Ref-17780)

02/25

(6) DR-700019

Communications Services Use Tax Return (R. 1/18)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-08962)

01/18

(7) DR-700020

Notification of Method Employed to Determine Taxing

Jurisdiction Change (Communications Services Tax)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-11786)

03/20

(8) DR-700021

Local Communications Services Tax Notification of Tax Rate Change (R. 06/12)

(https://www.flrules.org/Gateway/reference.asp?No=Ref-02542)

05/13

(9) DR-700022

Notification of Changes to the Address/Jurisdiction Database

(http://www.flrules.org/Gateway/reference.asp?No=Ref-13416)

12/20

(10) DR-700025

Objection to Address Assignment in the Address/Jurisdiction Database

(http://www.flrules.org/Gateway/reference.asp?No=Ref-13417)

08/20

(11) DR-700026

Local Government Authorization for Address Changes Described on Form DR-700025 (R. 10/13)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-03627)

01/14

(12) DR-700027

Local Government Authorization for Omission of Address or Incorrect Address Identification

(http://www.flrules.org/Gateway/reference.asp?No=Ref-13418)

12/20

(13)(a)

DR-700030

Application for Self-Accrual Authority/Direct Pay Permit – Communications Services Tax (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06322)

01/16

(b) DR-700032

Renewal Notice and Application for Self-Accrual Authority/Direct Pay Permit – Communications Services Tax (R. 01/16)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06323)

01/16

(14) DR-700033

Alternative-Period Basis Reporting Form (N. 10/15)

(http://www.flrules.org/Gateway/reference.asp?No=Ref-06324)

01/16

History

• Rulemaking Authority 175.1015(5), 185.085(5), 202.151, 202.16(2), 202.22(6)(a), 202.26(3), (c), (d), (e), (j), 202.27(1), (7), 213.06(1) FS. Law Implemented 175.1015, 185.085, 202.12(1), (3), 202.151, 202.16, (4), 202.17(1), (4), (6), 202.19(1), (7), 202.27, 202.28(1), (2), 202.29, 202.30(3), 202.33, 202.34(3), (4)(c), 202.35(1), (2), 213.053(8)(t) FS. History–New 4-17-03, Amended 7-31-03, 10-1-03, 9-28-04, 6-28-05, 11-14-05, 7-16-06, 4-5-07, 11-6-07, 12-20-07, 1-28-08, 1-27-09, 1-11-10, 6-28-10 (3), 6-28-10 (5), 2-7-11, 1-25-12, 1-17-13, 5-9-13, 1-20-14, 1-20-15, 1-11-16, 1-10-17, 1-17-18, 1-8-19, 1-6-20, 3-25-20, 1-24-21, 8-15-21, 5-23-22, 1-16-23, 2-11-24, 2-20-25, 1-25-26.