Tax Information for Tax Collectors in Florida

Tax Information for Tax Collectors in Florida Motor Vehicle and Vessel Transactions A to Z GT-300046 R. 02/09 Florida Department of Revenue In-State Service Centers and Area Tax Specialists Alachua Service Center 14107 NW US Highway 441, Suite 100 Alachua, FL 32615-6390 386-418-4444 (ET) Johnny Killebrew 386-418-4408 Clearwater Service Center Arbor Shoreline Office Park 19337 US Hwy 19 N, Suite 200 Clearwater, FL 33764-3149 727-538-7400 (ET) Larry Fast 727-538-7155 Daytona Beach Service Center 1821 Business Park Blvd Daytona Beach, FL 32114-1230 386-274-6600 (ET) Belinda Watson 386-274-6618 Cocoa Service Center 2428 Clearlake Rd Bldg M Cocoa, FL 32922-5731 321-504-0950 (ET) Belinda Watson 321-504-0978 Coral Springs Service Center Florida Sunrise Tower 3111 N University Dr, Suite 501 Coral Springs, FL 33065-5096 954-346-3000 (ET) Berry Paula 954-346-2996 Fort Pierce Service Center Benton Building, Suite 207-B 337 N US Hwy 1 Ft. Pierce, FL 34950-4255 772-429-2900 (ET) Joseph Sexton 772-429-2173 Key West Service Center 3106 Flagler Ave Key West, FL 33040-4602 305-292-6725 (ET) Fort Myers Service Center 2295 Victoria Ave, Suite 270 Ft. Myers, FL 33901-3871 239-338-2400 (ET) Fredrica Cosper 239-338-2481 Hollywood Service Center Taft Office Complex 6565 Taft St, Suite 300 Hollywood, FL 33024-4044 954-967-1000 (ET) Alberto Collazo 954-967-1821 Lake City Service Center 1401 W US Hwy 90, Suite 100 Lake City, FL 32055-6123 386-758-0420 (ET) Jacksonville Service Center 921 N Davis St, Suite A-250 Jacksonville, FL 32209-6829 904-359-6070 (ET) Douglas Robertson 904-359-6939 Lakeland Service Center 230 S Florida Ave, Suite 101 Lakeland, FL 33801-4625 863-499-2260 (ET) Connie Bartels 863-284-3022 Leesburg Service Center 1415 S 14th St, Suite 103 Leesburg, FL 34748-6686 352-315-4470 (ET) Chris Okolo 352-315-4470 Maitland Service Center 2301 Maitland Center Parkway Suite 160 Maitland, FL 32751-4192 407-475-1200 (ET) Margaret Anderson 407-475-1217 Naples Service Center 3073 Horseshoe Dr S, Suite 110 Naples, FL 34104-6145 239-434-4858 (ET) Marianna Service Center 4230 Lafayette St, Suite D Marianna, FL 32446-8231 850-482-9518 (CT) Miami Service Center 8175 NW 12th St, Suite 119 Miami, FL 33126-1828 305-470-5001 (ET) William Love 305-470-6905 – North Jose Angulo 305-499-2227 – South Panama City Service Center 210 N Tyndall Pkwy Panama City, FL 32404-6432 850-872-4165 (CT) Grady “David” Sturgil 850-747-5612 Orlando Service Center Regions Bank Building, 5th Floor 5401 S. Kirkman Rd Orlando, FL 32819-7911 407-903-7350 (ET) Gordon Herget 407-903-7329 Port Richey Service Center 6709 Ridge Rd, Suite 300 Port Richey, FL 34668-6842 727-841-4407 (ET) Pensacola Service Center 3670C N L St Pensacola, FL 32505-5217 850-595-5170 (CT) Tracey Mitchell 850-595-5190 Sarasota Service Center Sarasota Main Plaza 1991 Main St, Suite 240 Sarasota, FL 34236-5940 941-361-6001 (ET) Bob Norring 941-361-6176 West Palm Beach Service Center 2468 Metrocentre Blvd West Palm Beach, FL 33407-3105 561-640-2800 (ET) Michael Fabrizi 561-640-6152 Tallahassee Service Center 2410 Allen Rd Tallahassee, FL 32312-2603 850-488-9719 (ET) Richard Gould 850-488-5647 Tampa Service Center 6302 E Martin Luther King Blvd Suite 100 Tampa, FL 33619-1166 813-744-6590 (ET) Brenda Ogle 813-664-4061 Boat Enforcement Unit Florida Department of Revenue P.O. Box 6417 Tallahassee FL 32314-6417 Telephone: 850-487-3273 Fax: 850-487-0969 The Florida Department of Revenue’s in-state service centers host free educational seminars focused on Florida tax issues. These seminars are designed to provide you with the most up-to-date tax information. Contact the office near you to locate the various types of Florida tax seminars available in your area or visit our Internet site for an online listing at www.myflorida.com/dor Florida Tax Information for County Tax Collectors Table of Contents Introduction.......................................................................................................... 1 Purpose............................................................................................................. 1 References........................................................................................................ 1 Objectives ........................................................................................................ 1 Sales and Use Tax................................................................................................ 2 Exempt or Taxable? – The Tax Collector’s Role ................................................ 3 Title Transactions Between Individuals .............................................................. 3 Exchanges Between Individuals ...................................................................... 3 Trades Involving Tangible Personal Property ................................................. 4 Transfers Between Married Couples ............................................................... 4 Husbands and Wives with Different Last Names............................................ 5 Court-ordered Award of Vehicle ..................................................................... 5 Out-of-State Vehicle Purchases ........................................................................... 5 The Six-Month Rule ........................................................................................ 5 Vehicle Purchased in a Foreign Country ......................................................... 6 Gift from an Individual of a Foreign Country ................................................. 6 U.S. Military Personnel ................................................................................... 6 U.S. Military Temporarily Residing in Florida ............................................... 7 Consideration ....................................................................................................... 7 Lien .................................................................................................................. 7 Assumption of a Lien Equals Consideration ................................................... 8 Co-owners........................................................................................................ 8 “And” or “Or” Means Both or Either .............................................................. 9 Co-signers Jointly and Severally Liable .......................................................... 9 Adding Additional Parties: Joint vs. Joint and Several Liability................... 10 Default Not Taxable if Co-signer Must Take Over Payments....................... 11 Repossessions – Anticipation of Repossession ............................................. 11 Transactions Between Parents and Children Involving Liens ....................... 12 Gifts – Lien on a Gift..................................................................................... 13 Recording a Lien on a Gift ............................................................................ 13 Miscellaneous Transfers .................................................................................... 13 Trusts ............................................................................................................. 14 Revocable or Irrevocable Trust...................................................................... 14 Revocable or Irrevocable Trust to a Beneficiary of the Trust ....................... 15 Personal Representative Sells Vehicle........................................................... 15 Receipt of a Vehicle as a Prize ...................................................................... 15 Corporations/Individuals or Partnerships ...................................................... 15 Corporation to Individual/Individual to Corporation..................................... 16 Individual to Corporation............................................................................... 16 Gift from a Corporation to an Employee ....................................................... 16 Partnership ..................................................................................................... 17 Transfers to Stockholders .............................................................................. 17 Reorganization of a Corporation.................................................................... 17 Mobile Homes – Sales Between Individuals ..................................................... 18 Real Property Reverts to Tangible................................................................. 18 February 2009 i Florida Tax Information for County Tax Collectors Occasional or Isolated Sale............................................................................ 18 Mobile Home Park......................................................................................... 19 Mobile Home Developers .............................................................................. 19 Exclusive Rental as Tangible Personal Property ........................................... 19 Living Accommodations................................................................................ 19 Discretionary Sales Surtax................................................................................. 20 Sales of Motor Vehicles, Motor Homes, and Mobile Homes........................ 20 Sales to Common Carriers ................................................................................. 21 All-Terrain Vehicles .......................................................................................... 21 Auto Leasing Companies................................................................................... 21 High School Driver Education and Safety Program .......................................... 21 Dealership Loaners ............................................................................................ 21 Verifying the Sales Price of a Motor Vehicle.................................................... 22 Bill of Sale ..................................................................................................... 22 Letters of Inquiry ........................................................................................... 23 Computation of Tax Due ................................................................................... 24 What is the Full Taxable Selling Price?......................................................... 24 State Mandated Fees – Exempt...................................................................... 25 Motor Vehicle Warranty Enforcement Act – Lemon Law Fees.................... 25 Out-of-state Residents Move to Florida Within Six Months ......................... 25 Trade-In Allowance – Registered Dealers..................................................... 26 Trade Between Individuals – Other Than Motor Vehicles............................ 26 Tax Calculation.............................................................................................. 27 Manufacturer Rebates .................................................................................... 27 Dealer Discounts............................................................................................ 28 Motor Vehicle Exceptions ............................................................................. 29 Use Tax Due .................................................................................................. 29 Sales Tax Reporting........................................................................................... 29 Statute of Limitations......................................................................................... 30 Vessels ............................................................................................................... 31 Salt Water Vessels Requiring a Saltwater Fishing License ($200) ............... 31 Difference: Possession Taken ....................................................................... 32 Demonstration Vessels................................................................................... 32 Gift ................................................................................................................. 32 Exempt Sales of Vessels Older Than Six Months ......................................... 32 Foreign Countries........................................................................................... 32 Vessels of Five Net Tons of Admeasurement or Greater .............................. 32 Occasional or Isolated Sales .......................................................................... 33 Discretionary Sales Surtax (DSS) - Vessels .................................................. 33 ii February 2009 Florida Tax Information for County Tax Collectors Introduction The Florida Department of Revenue’s mission is: x x x x To serve citizens with respect, concern and professionalism; To make complying with tax and child support laws easy and understandable; To administer the laws fairly and consistently; and To provide excellent service efficiently and at the lowest possible cost. Purpose In accordance with our mission statement, this information has been designed and developed as a resource guide to assist Florida local county tax collectors in understanding their role and tax collection obligations under Florida's tax laws in a consistent, timely, and accurate manner. References Chapter 212 and 213, Florida Statutes (F.S.) Chapter 12A-1, Florida Administrative Code (F.A.C.) Be sure to access the Tax Law Library and familiarize yourself with the Florida Statutes and the Florida Administrative Code through the Department of Revenue's Internet site: www.myflorida.com/dor or by calling a Department representative listed on the back page of the front cover. Objectives x x x x x x x Upon completion of this training, the participant will be able to: Examine motor vehicle, vessel, and mobile home transactions; Determine tax liabilities and whether or not sales and use tax is due; Define “sales and use tax”; Define “discretionary sales surtax”; Identify the types of transactions that involve sales and use tax; and Determine the percentage of sales tax due when a vehicle has been purchased out-of-state and registered in Florida. February 2009 1 Florida Department of Revenue While this material is thorough in scope, it cannot address every situation that may arise in the course of dealing in motor vehicles. Therefore, reliance upon the information contained here does not excuse tax collectors from being knowledgeable of and adhering to the applicable Florida Statutes and rules of the Department of Revenue. By familiarizing yourself with the contents of this publication, you should gain knowledge that will help you to achieve and maintain compliance with Florida's sales and use tax laws. Sections 212.06, 212.0601, 212.08, F.S. Rule 12A-1.007, F.A.C. This section is to be used as a training aid. It should not be used to cite the Department of Revenue's position. For further information please reference the Florida Statutes [Sections 212.06, 212.0601, 212.08, Florida Statutes] and the Florida Administrative Code, [Rule 12A-1.007, F.A.C.]. If you need additional information, please contact your local service center or call 1-800-FLA-DOR1. Florida tax laws are continuously updated; therefore, we recommend that you refer to the Tax Law Library on our Internet site at http://www.myflorida.com/dor. Sales and Use Tax Section 212.06 (10), Florida Statutes states that no title certificate, license or registration required by law may be issued on any boat, mobile home, motor vehicle, or other vehicle unless there is evidence of payment of the tax imposed by Chapter 212, F.S. Sales or use tax is due on each transaction, unless the transaction is specifically exempt. Tax is due at the rate of 6% on the sale price of tangible personal property sold at retail in Florida, or 6% use tax, plus any applicable discretionary sales surtax. Definitions Jointly – combined or joined together in interest or liability. For two or more persons to become liable to a joint obligation. Jointly and Severally – two or more persons joined together or individually in a liability where a creditor may demand payment or sue one or more of the parties to the liability separately, or all of them together at the creditor's option. Lien – an encumbrance on property for payment of a debt or obligation. Right to retain property. 2 February 2009 Sales and Use Tax Consideration – whether paid in money, or otherwise sufficient or good value to enter into a contract. This publication briefly explains transactions involving motor vehicles and vessels and how sales and use tax affects those transactions. Exempt or Taxable? – The Tax Collector’s Role The tax collector’s office becomes involved in the sales and use tax issue when a motor vehicle, mobile home, or vessel has changed owners and there is a need to change the title and registration of the vehicle. There are several types of transactions that will be encountered by the tax collector: x x x x x x x x x Motor vehicle transactions between individuals. Exchanges between individuals. Title transactions between husbands and wives. Title transactions resulting from court settlements. Vehicles purchased out-of-state. Title transactions involving military personnel. Title transactions involving liens. Other miscellaneous transfers; i.e., trusts and beneficiaries, etc. Title transactions among corporations, individuals, and partnerships. After determining the type of transaction, you will be able to determine if it is a taxable or exempt transaction. Title Transactions Between Individuals Casual transactions between individuals are often encountered in the tax collector’s office. These can include individuals who trade vehicles, people who trade tangible personal property for a vehicle, and other types of sales of vehicles among individuals. Exchanges Between Individuals Often, individuals will make an even trade of a vehicle for another vehicle. A trade will reduce the taxable sales price when an individual sells, trades, or exchanges a motor vehicle, mobile home, or vessel for another motor vehicle, mobile home, or vessel. February 2009 3 Florida Department of Revenue Example: John makes an even trade of his truck for Bill’s car. The value of each is $5,000. When they go to the local tax collector’s office to apply for the registration and title, no sales tax will be due on the even trade. An even trade of a motor vehicle, or a trade-down for another motor vehicle, is exempt. There must be a sworn affidavit of the estimate of the value of the trade. The Affidavit for Private Casual Sale of a Motor Vehicle, Form DR-99A, may be completed by the purchaser for reporting individual transactions (Exhibit 1). Trades Involving Tangible Personal Property Some trades involve the exchange of items other than money. Each sale of a motor vehicle is subject to sales tax unless specifically exempt. While sales of tangible personal property between individuals are exempt from sales tax as an occasional or isolated sale, there are NO occasional sales of a motor vehicle for sales tax purposes. An occasional sale does not apply to sales of vessels, mobile homes, or motor vehicles required to be registered, licensed, titled or documented in Florida or by the United States government. Example: If John made an even trade with Bill of a motor vehicle worth $500 for a computer worth $500, sales tax will be due on the motor vehicle. The computer qualifies for the occasional sale under section 212.05(1)(a) 1.b, F.S., and is exempt from tax. The motor vehicle does not qualify as an occasional sale. A trade between individuals of tangible personal property other than a motor vehicle does not reduce the taxable base. Transfers Between Married Couples A situation that may occur involves a husband and wife who want to remove one of their names from a title. They also want to put a dollar amount on the title, for whatever reason. Individual – means separate and personal, one person. A husband and wife usually are “collectively” or “individually” liable. A transfer between married persons is NOT taxable. Married persons are considered one person, treated like an individual. Example: Mary and John (a married couple) purchased a new vehicle. At the time of titling, the dealership completed the paperwork and applied for the title only in John's name. Two weeks later, John wants the vehicle to be titled in Mary's name. The transfer of this title into Mary's name will NOT be subject to sales tax even if the title has a lien (liens will be addressed in a later section). 4 February 2009 Sales and Use Tax Husbands and Wives with Different Last Names One question that often comes up is “How do you prove a couple is husband and wife when applying for a title transfer if they have different last names?” The burden of proof is on the couple, not the tax collector. In completing form HSMV 82041, Application for Certification of Title and/or Vehicle Registration and Motor Vehicle Sales and Use Tax Report (Exhibit 2), they sign under penalty of perjury. Therefore, the tax collector will not have to request a copy of the marriage license. Court-ordered Award of Vehicle When a court grants ownership of a vehicle from one person to another, sales tax is not due. A common example would be a transaction involving divorce, where one party is awarded a vehicle as part of the settlement. In a marriage dissolution, a transfer of title is NOT taxable if the transfer is part of the property settlement or divorce decree. A certificate setting forth the facts and signed under penalty of perjury must accompany the application for title transfer or application for transfer of license or registration. Example: Tom and Joan, husband and wife, jointly own a new vehicle with a bank lien. In the divorce decree the judge awarded the vehicle to Joan. The title needs to be transferred from Tom and Joan's name to Joan only. The transfer of the title will NOT be taxable. This may also apply to other court awards involving transfer of motor vehicles. Out-of-State Vehicle Purchases Another common type of title transaction involves vehicles purchased out of state. The issue of sales and use tax arises when the individual buyer brings the car into Florida, and wants it titled and registered. The Six-Month Rule Any person who makes a purchase in another state and brings the vehicle into Florida for titling within six months will owe Florida sales tax and any applicable discretionary sales surtax. Credit will be given for any like tax lawfully imposed and paid to the other state. Question: A customer comes in to the tag office to register a car previously registered out of state that he has owned for less than six months. His previous state sales tax is 4.5%. Does he have to pay any Florida sales tax since he already paid sales tax in another state? February 2009 5 Florida Department of Revenue In the case described above, the customer would owe 1.5% state sales tax, plus any discretionary surtax applicable in his county of residence. There may be situations in which the customer decides not to register the vehicle in Florida. It is not our intent to harass the taxpayer, but to make him or her aware of the law requiring sales and use tax to be paid on vehicles requiring a Florida title that were purchased out-of-state less than six months ago. If a person purchases and registers a motor vehicle in another state, then brings the vehicle into Florida for titling more than six months after purchase, no sales tax will be due. Remember: To qualify for the Six-Month Rule Exemption, at the time of registering and titling the vehicle in Florida, the owner must show documentation of ALL of the following: * Vehicle was purchased in another state; * Vehicle was titled or registered in another state; * The lawfully imposed taxes on the vehicle were paid in another state; and * The vehicle was used for six months or more in another state or states under conditions which would subject the vehicle to the tax in at least one other state. Vehicle Purchased in a Foreign Country When a vehicle is purchased in a foreign country and brought into Florida for titling, tax will be due at 6% plus any applicable discretionary sales surtax, regardless of whether six months have elapsed. No credit will be given for tax paid to a foreign country. Gift from an Individual of a Foreign Country Motor vehicles that are given as gifts from individuals from foreign countries are taxable when brought to Florida and registered. The six-month rule and the gift rule do not apply. The tax should be computed on the fair market value. U.S. Military Personnel If a military member, who is a Florida resident, purchases a motor vehicle outside Florida and registers it in this state, the Department will presume the vehicle is subject to tax. The military member does not have to pay tax in another state to overcome this presumption. The documentation below is sufficient to overcome the presumption of taxability for military members. Upon registering the vehicle, the military member must provide a notarized statement of the following: x the vehicle will be held outside the state for longer than 6 months; x the member is a Florida resident; x the member currently is on orders outside Florida and lives outside Florida; 6 February 2009 Sales and Use Tax x x x the member recognizes that he or she owes tax to the state in which the motor vehicle was purchased, unless a specific exemption applied; the member did not intend to avoid sales or use tax in any state by registering the vehicle in Florida; and the military member will not bring the vehicle into Florida within 6 months from the purchase date, even for temporary reasons. U.S. Military Temporarily Residing in Florida If a military member, stationed in Florida under military orders, purchases a motor vehicle in this State, Florida’s sales or use tax applies. The Soldiers' and Sailors' Civil Relief Act does not prohibit Florida from imposing its sales and use tax on service members purchasing motor vehicles in this state even if they are residents of Florida or another state. The tax applies to aircraft, vessels, mobile homes, and automobiles. Consideration We have discussed types of transactions; now let’s talk about two key issues to examine when determining if tax is due. It is important to determine the following for each title transaction: x Did ownership rights transfer from one taxable individual to another? x In this transaction, was something of value, either in goods and/or money, exchanged for the vehicle? Typically, if the answer to both of these questions is yes, tax may be due unless the transaction is specifically exempt. Of these two questions, determining whether something of value was exchanged, often called “consideration,” is the more difficult of the two to identify. Consideration is the cause, motive, price, or impelling influence that induces a party to enter into a contract, whether paid in money or otherwise sufficient or good value. This may include cash, tangible personal property, or other items of value. Lien One form of consideration that you will see in the tax collector’s office is a lien, often seen in the form of a loan on a motor vehicle. A lien is an encumbrance on property for payment of a debt or obligation. It carries with it a right to retain the property if the lien is not settled according to agreed upon terms. Example: An individual might assume the lien on a vehicle from an individual who must sell the vehicle because they cannot make the payments. Example: Two people who own a vehicle jointly may decide that one person will buy the other’s interest in the vehicle, for which money is still owed to the bank. In this case, the bank maintains the lien. February 2009 7 Florida Department of Revenue Assumption of a Lien Equals Consideration In both of these cases, the responsibility for a lien is passed from one person to another. For tax purposes, this transfer of responsibility is seen as consideration. Something of value must change hands in order for there to be a recognizable contract. When one person assumes a lien, this is seen as an exchange of consideration, and the transaction is taxable. A lien assumption is a taxable transaction based on the actual consideration paid, and/or the lien amount assumed. If the consideration were not an indication of the true value, then the consideration would be based on the fair market value. Example: John owns an aircraft with an outstanding lien of $150,000. Charlie purchased the aircraft from John. He paid John $25,000 and assumed the balance of the lien. Sales tax is due on $175,000. This is based on the total consideration paid ($25,000 cash) plus the lien assumed of $150,000. Key Questions Did ownership rights transfer from one taxable individual to another? Yes. Charlie now has ownership of the aircraft. In this transaction, was something of value, either in goods and/or money, exchanged for the vehicle? Yes, the $25,000 payment PLUS the balance of the lien. Co-owners It is assumed that the words “and” or “jointly” mean co-ownership, and tax would be measured on the percent of interest transferred to the buying coowner. In other words a co-owner only owns a portion of the vehicle. When a co-owner transfers his or her interest in a motor vehicle required to be registered, titled or documented, tax is due on the following: Any cash paid for the equity transferred (consideration), and the selling coowner's share of liability assumed by the buying co-owner (consideration). Example: Jim and Bob are co-owners of a new Lamborghini (no lien outstanding). Bob decided he wanted to sell his interest in the car. Jim gave Bob $50,000 for Bob's share of the vehicle. Jim takes the title to the tax collector’s office to transfer the vehicle into his name only. How will this be taxed? Key Questions Did ownership rights transfer from one taxable individual to another? Yes. Jim only owned ½ of the car, now he has full ownership. In this transaction, was something of value, either in goods and/or money, exchanged for the vehicle? Yes, $50,000. 8 February 2009 Sales and Use Tax “And” or “Or” Means Both or Either When one person assumes a lien on a motor vehicle from another person, whether the assumption is joined by “and” or “or,” the assumption is “consideration.” The tax is based on that consideration, which is the amount of the lien assumed. Example: Mary and Sally were listed on the vehicle title as Mary “and” Sally. Mary and Sally as co-owners were liable on the loan “jointly” for the new Corvette they purchased. Mary decided to sell her half of the Corvette to Sally. When Sally went to the tax collector to transfer the title, she was charged sales tax on half of the lien balance, which is the “consideration” for the transfer. Key Questions Did ownership rights transfer from one taxable individual to another? Yes, Sally gained Mary’s interest in the vehicle. In this transaction, was something of value, either in goods and/or money, exchanged for the vehicle? Yes, Sally assumed Mary’s liability in the lien. Example: Keith and Phil as co-owners were jointly and severally liable on loan for a new jeep they had purchased. The title was listed as Keith “or” Paul. If either party decides to sell their half of the Jeep, sales tax would NOT be due; because both parties are fully liable for the loan. Key Questions Did ownership rights transfer from one taxable individual to another? Yes, Keith sold his portion of the Jeep to Phil. In this transaction, was something of value, either in goods and/or money, exchanged for the vehicle? No, because Keith and Phil were each liable for 100% of the note, and the bank would not release Keith from his responsibility for the note. Co-signers Jointly and Severally Liable In a “joint and several” note, the makers bind themselves both “jointly and individually” to the borrower. The creditor may demand payment or sue one or more of the parties to the liability separately, or all of them at the creditor’s option. If the co-signer of the motor vehicle is “jointly and severally” liable for the entire outstanding lien, and nothing is paid in cash or equivalent, then NO tax is due as there is NO consideration. February 2009 9 Florida Department of Revenue Example: John co-signs on a car note for Mary, who has had credit problems. For liability purposes, the only name on the title is Mary’s. Both of their names are on the note. Mary fails to pay for the car and John has to assume the payments. The bank refuses to release Mary from the lien, even though she gave up all rights to John. He comes in to the tax collector’s office to have the car titled in his name. Tax is not due because he was always responsible for the note, even though he was not listed on the original title. Key Questions Did ownership rights transfer from one taxable individual to another? Yes, ownership rights are passing from Mary to John. In this transaction, was something of value, either in goods and/or money, exchanged for the vehicle? No, consideration was not exchanged because John was already 100% responsible for the lien. Adding Additional Parties: Joint vs. Joint and Several Liability Question: If two persons add another name to the lien, will the transfer be subject to tax? If a new co-owner is being added to the loan with “joint” liability (not jointly and severally), then the tax will be measured on 1/3rd of the outstanding lien amount plus any cash or equivalent paid. If the new party is being added to the loan as “jointly and severally” then the tax will be based on the full outstanding balance of the lien at the time of the transfer plus any cash or equivalent paid. The words “and” or “or” will not change the situation. Example: Larry and Bob are listed on the title of a truck with a $100,000 lien balance, and Connie buys into the company with a percentage of ownership in the truck. The bank makes Connie sign a joint liability note and she wants to be added to the title. The liability is “joint,” and she owes tax on 1/3rd of the outstanding lien amount. If the liability were listed as “jointly and severally,” she would owe tax on the full outstanding balance, $100,000. 10 February 2009 Sales and Use Tax Default Not Taxable if Co-signer Must Take Over Payments Often, individuals will have to take over payments for a loan when the primary borrower defaults. Example: A grandmother and grandson own a car together and both are jointly and severally liable on the lien. The grandson has his license suspended and is sent to jail. Grandmother removes his name from the title for insurance purposes and to be able to renew the license plate. The bank will allow her to do so but both are still on the lien. Does grandmother pay sales tax? The transfer of title to a co-signer, who is NOT on the title but appears on the lien (loan contract), is NOT taxable if the titled owner defaults and cannot make the payments, provided the co-signer is “jointly and severally” liable for the loan amount. Repossessions – Anticipation of Repossession If a co-signer, in anticipation of repossession, transfers the title to the vehicle into his/her name, no tax will be due. It is presumed that the cosigner is “jointly and severally” liable for the full amount of the unpaid balance of the loan. Consideration is not paid in the transfer, so this transaction is tax exempt. Repossessions – Already Repossessed If the vehicle is repossessed by the bank, the vehicle title will be transferred to the bank. If the debtor who defaulted on the loan pays the arrearages and other required sums within 90 days (the redemption period) the title is reinstated and no tax is due. For the transfer to be exempt from tax, the repurchase must be made only by the original customer/debtor, on the same vehicle, with the lien reinstated to that customer. If the debtor repurchases the vehicle after the 90-day redemption period, the transfer is taxable. Vehicle Redeemed After Repossession by Co-signer If a vehicle is repossessed by the bank and the co-signer redeems the vehicle within the 90-day period, no tax is due. A co-signer whose name appears on the title prior to repossession is also a co-owner. As a co-owner, they are able to redeem the vehicle in the time (90 days from repossession) and not owe any tax on the transfer. February 2009 11 Florida Department of Revenue Transactions Between Parents and Children Involving Liens Parent and Child Co-owners When a parent and a child co-own a vehicle and the vehicle is subsequently transferred to the parent or child, the tax will be based on the lien amount transferred. Loan If the parent or child applies for a loan on the vehicle at the time of the transfer, the transaction will be subject to tax on the lien amount. If the parent or child applies for a loan on the vehicle (currently without a lien) after transferring the title, no sales tax will be due. Question: A vehicle has an outstanding lien with the parent and child transferring the vehicle title to the name of the child only. Does the connection of “and” or “or” make any difference? The assumption of a lien on a motor vehicle from the parent to the child, or child to parent, whether the assumption is joined by “and” or “or,” the assumption is “consideration.” The sales tax amount is based on the consideration, which is the amount of the lien assumed. Example: John Sr. and John Jr. purchased a vehicle with the title reflecting “John Sr. or John Jr.” There is a lien on the vehicle in John Sr.’s name only. John Sr. is transferring his half of the vehicle into John Jr.'s name. John Jr. is not giving his father any money for the half interest in the vehicle. Key Questions Did ownership rights transfer from one taxable individual to another? Yes, John Sr. transferred his half to John Jr. In this transaction, was something of value, either in goods and/or money, exchanged for the vehicle? Yes, the value of the lien is consideration. Sales tax is due on 50% of the lien amount as the lien is the “consideration” for the transferred half of the vehicle when applying for the vehicle title. When a parent transfers title to a motor vehicle to a child, the parent’s share of the motor vehicle is taxable based upon the lien amount assumed by the child, and any other consideration that may be given. 12 February 2009 Sales and Use Tax Gifts – Lien on a Gift In order for a transaction of title to be considered a gift transaction, there must be no consideration. The transfer of a title when a lien is assumed will NOT qualify as a gift and will be taxable on the lien amount. Example: Mary Jo gave a 1986 Oldsmobile to her brother Jim. There is no outstanding lien on the vehicle and Jim did not pay her any money. Key Questions Did ownership rights transfer from one taxable individual to another? Yes, Mary Jo gave the vehicle to Jim. In this transaction, was something of value, either in goods and/or money, exchanged for the vehicle? No, Jim did not pay her because there is no outstanding lien. The transaction is not taxable because there was no consideration. Recording a Lien on a Gift There are times when a person might want to record a lien on a gift transaction to keep someone from selling a vehicle. Example: A mother gives her son a car but does not want to be on the title for liability reasons. The car has no lien. The mother wants to put her name on the title as lien holder so that her son cannot sell the car without her permission. She did not sell the car to him, there was no money exchanged. Key Questions Did ownership rights transfer from one taxable individual to another? Yes, the mother gave the car to her son. In this situation, was consideration given? No, there was no lien. Miscellaneous Transfers There are a number of other types of transfers that might be encountered in the tax collector’s office. x Trusts x Beneficiary x Personal representative x Prize recipient February 2009 13 Florida Department of Revenue Remember, any time a motor vehicle is transferred from one owner to another, sales tax is due on the amount of the outstanding lien (unpaid balance) assumed by the transferee, plus any amount paid by the transferee in money or otherwise. Trusts Occasionally a vehicle will be held in trust for a minor child. There are often questions about when a person is no longer considered a minor child. Section 1.01(13), F.S. states a minor is an individual who has not attained the age of 18 years. Chapter 319, F.S. does not impose a minimum age for holding a motor vehicle title. Example: Toby’s grandfather put a car in trust for Toby to be received when he is 18 with no lien. Toby turned 18 last week and the attorney gave Toby the title. They are in the office to transfer the title from the trust to Toby. Key Questions Did ownership rights transfer from one taxable individual to another? Yes, from the trust to Toby. In this transaction, was something of value, either in goods and/or money, exchanged for the vehicle? No, because there is no lien and no consideration was paid. This transaction is not subject to tax. However, if a lien was recorded, the transfer would be taxable. Revocable or Irrevocable Trust Often individuals will place motor vehicles into a revocable or irrevocable trust for tax purposes. A motor vehicle transferred into or from a revocable or irrevocable trust is taxable. The transfer will be taxable even if the transfer involves married persons. The tax is computed on the amount of cash or its equivalent paid plus any outstanding lien assumed by the trust. Revocable trust: a trust in which the one who creates the trust reserves the right to revoke. Irrevocable trust: a trust which may not be revoked after its creation as in the case of a deposit of money by one in the name of another as trustee for the benefit of a third person (beneficiary). 14 February 2009 Sales and Use Tax Example: A married couple places a vehicle with a lien into a trust for tax purposes. The trust becomes liable and pays off the lien. Is the transfer exempt from sales and use tax? No, it is not exempt from sales and use tax. Key Questions Did ownership rights transfer from one taxable individual to another? Yes, from the couple to the trust. In this transaction, was something of value, either in goods and/or money, exchanged for the vehicle? Yes, the trust paid off the lien on the vehicle. Revocable or Irrevocable Trust to a Beneficiary of the Trust The transfer of a motor vehicle title from a revocable or irrevocable trust to a beneficiary of the trust, including a beneficiary who was a minor at the time of the formation of the trust, is not taxable unless there is consideration. If the beneficiary was “jointly and severally” obligated for the entire outstanding debt prior to the transfer, then no tax is due. Personal Representative Sells Vehicle The sale of a motor vehicle by a personal representative of an estate is taxable. Receipt of a Vehicle as a Prize Tax is due on the transfer of a title as a “gift or prize” in a contest or drawing by the recipient, unless the donor paid the tax on the sales or cost price. Tax will be due when titled on the “sale or cost” price of the vehicle; if that can't be determined, then on the book value. Corporations/Individuals or Partnerships When a vehicle is transferred between corporations/individuals/ partnerships, it is presumed that a consideration flows from one entity to the other. If no consideration is stated, the tax shall be based on the fair market value of the vehicle. Transfers of title from: x x x x x x x x Individual to a partnership; Individual to a corporation; Partnership to an individual; Partnership to a partnership; Partnership to a corporation; Corporation to an individual; Corporation to a partnership; or Corporation to a corporation …are generally taxable transactions because each involves transfer of ownership rights from one entity to another, along with a presumption of consideration. February 2009 15 Florida Department of Revenue Generally, transfers between corporations/individuals/partnerships are taxable, unless specifically exempted. Again, tax is based on the “consideration,” including any outstanding lien assumed plus any cash or equivalent. If the consideration is not stated, the tax is based on the fair market value, even if the same stockholders own both corporations involved in the transfer. In this situation, a vehicle given as a gift to a corporation is subject to sales tax based on the fair market value. Corporation to Individual/Individual to Corporation Example: Mary Smith purchases a new vehicle and titles the vehicle in the name of her new corporation, “Mary's Interiors Inc.” When she visits her insurance company to complete coverage, she learns that the insurance is going to be exorbitant and decides to change the title and place the motor vehicle in her individual name. At the local tax collector’s office, she learns that sales tax will be due on the amount of the lien. Upset about this, Mary says, “I just paid tax on the full amount of the purchase price and now I’m being taxed on the full amount of the lien. I think I'm being double taxed.” The title was originally in the name of the corporation, which is an “entity” under the Florida statutes. Tax will be due on the outstanding lien amount when transferring the title to Mary because she is an “individual entity.” Individual to Corporation Example: An officer of a corporation comes into to the tax collector’s office to transfer a title from an individual’s name. The officer says the vehicle was received as a gift, and does not want to pay sales tax. Again, even though this is a “gift” with no lien or exchange of money it is taxable because it involves a corporate entity. If the corporation refuses to pay the sales tax, they will receive a letter of inquiry, and/or a bill for tax, penalty, and interest from the Department of Revenue. This will be addressed further in the section entitled “Verifying the Sales Price of the Motor Vehicle.” Gift from a Corporation to an Employee A corporation is limited under federal regulations on the value of a vehicle that it can give as a gift to one of its employees. 16 February 2009 Sales and Use Tax If the transfer of a fully depreciated vehicle is made, its value will be based on the fair market value of the vehicle unless it is expressly exempt. For the transfer of a vehicle to be exempt, a certificate giving all the facts and signed under penalty of perjury must accompany the application for title transfer. No other documentation is required beyond completion of the exemption certification on the HSMV 82040 form (Exhibit 3). Corporate transfers are subject to audit verification by the Department of Revenue. Partnership Transfer of a motor vehicle is taxable when it involves transfers from: x x x A partnership to one of the partners; One of the partners to a partnership; One partnership to another partnership. The tax is based on the fair market value if actual consideration is NOT given. See Rule 12A-1.007, F.A.C., for additional taxable transactions. Transfers to Stockholders Title transfers to stockholders as part of a ratable portion of a dissolved corporation’s assets are exempt. Example: Upon dissolution of J & B Inc., the corporation John had formed with Bob, John was given title to the vehicle that was purchased by the corporation. When transferring the vehicle title, there would be no tax due on the transfer, even if there were a lien on the vehicle. If John transferred the corporate vehicle into his name without the transfer being the result of liquidation, the transfer would be subject to sales tax on the fair market value of the vehicle at the time of the transfer. Reorganization of a Corporation Transfer of a title in the name of the surviving corporation in a corporate merger, consolidation, or reorganization under federal guidelines, solely in exchange for stock, is NOT taxable. February 2009 17 Florida Department of Revenue Mobile Homes – Sales Between Individuals An occasional or isolated sale of a mobile home between individuals is subject to sales tax. Tax does NOT apply to the occasional or isolated sale of appurtenances such as the furniture, utility sheds, carports, drapes, and air conditioner units located outside the home. Sales between individuals of the appurtenances are not taxable. Sales tax only applies to the appurtenances when sold by a registered dealer. In order for the exemption to apply, the appurtenances must be separately itemized and separately priced on a notarized bill of sale. There are situations in which mobile homes are declared real property. The sale of a mobile home is taxable unless the mobile home is sold as “real property” with the land included as a packaged deal. [See Rule 12A1.007(11)(e) 1., F.A.C.] In order for a mobile home to be designated as “real property” the owner must have the mobile home declared realty by the county property appraiser. When the home has been declared real property the county tax collector will issue a ‘RP’ decal. When a person sells his or her land with the mobile home that has been previously declared real property, no sales tax is due. This transaction is a sale of “real” property and real property sales are exempt from sales tax. Example: Bob sells his five acres of land and “RP” tagged mobile home for a total of $50,000. No sales tax will be due on this transaction, since the land and mobile home are already declared “real property” by the county property appraiser. Bob pays property tax on that property each year when billed by the county tax collector. Real Property Reverts to Tangible A mobile home that has been declared real property and sold and removed from the land will revert to tangible property and is taxable on the sales price. Occasional or Isolated Sale The occasional or isolated sale of a mobile home sold with property not declared realty is taxable on the fair market value of the mobile home or taxable on any outstanding liens on the mobile home alone. If the seller separately describes and separately itemizes each appurtenance and has the bill of sale notarized, the appurtenances are not taxable. 18 February 2009 Sales and Use Tax Mobile Home Park Tax is due on the purchase of a mobile home placed in a park by the owner where the land is not owned by the mobile home owner, because a mobile home is considered tangible personal property. Mobile Home Developers At the time of sale, a developer may sell the mobile home and improvements for a lump-sum price and collect tax on that total sale. Developers of mobile home lots may make improvements to the lots without paying tax on the items purchased for resale used in the improvement, collecting tax when the mobile home and lot are sold to the new home owner. Exclusive Rental as Tangible Personal Property The sale of a mobile home for exclusive rental as tangible personal property (similar to a rented or leased automobile) is not subject to sales or use tax provided the buyer provides a resale certificate and completes Form HSMV 82041. [Rule 12A-1.007(11)(f) 1., F.A.C.] Example: Rent N’ Go Mobile Homes Inc. purchased six mobile homes for short and long term rentals. The purchases of these mobile homes are exempt from sales tax since they are to be used exclusively for re-rental. If the mobile home or travel trailer ceases to be used exclusively for rerental as tangible personal property, the owner must pay use tax on the fair market value at that time. Living Accommodations The sale of a mobile home for use as living or sleeping accommodations at a “fixed location” is subject to sales tax at the time of purchase and also subject to sales tax on the living accommodations rental. [Rules 12A-1.007 and 12A-1.061, F.A.C.] Example: XYZ Mobile Home Park purchased six new mobile homes to be used for short and long term living accommodation rentals. The purchases of these homes are subject to sales tax at the time of purchase, and they are also subject to sales tax on the lease of the living accommodation rentals. February 2009 19 Florida Department of Revenue Discretionary Sales Surtax Florida counties may levy an additional local option discretionary sales surtax from .25 percent up to 2.5 percent in addition to the state sales tax rate of 6 percent. (See Exhibit 4 for a list of the counties that impose a discretionary sales surtax.) The surtax applies to transactions subject to sales tax. The surtax applies to the first $5,000 of the selling price of each motor vehicle, vessel, or mobile home. It does not apply to the amount over $5,000 because there is an exemption on sale amounts over $5,000 on tangible personal property. The $5,000 cap applies to sales of tangible personal property sold to the same purchaser, at the same time. Sales of Motor Vehicles, Motor Homes, and Mobile Homes The sale of a motor vehicle, motor home, or mobile home is subject to sales tax and the discretionary sales surtax in the purchaser’s county of residence, regardless of the purchase location. The residence address of the purchaser shown on the registration or title document determines whether surtax will be charged. Example: Gene drove to a 1% county to purchase his new Expedition. Gene's home address is in Jackson County, which has a discretionary sales surtax rate of 1.5%. Gene will pay $75 in discretionary sales surtax, which is 1.5% of the $5,000 cap. If Gene purchases the new car service warranty, the surtax rate of 1.5% will apply to that purchase, as a service warranty is taxable at the rate of the county where the delivery occurs. Any vehicle that has been owned for longer than six months and registered and used elsewhere in the U.S. or territories is not subject to sales tax or discretionary sales surtax when brought into Florida. A person moving into Florida and wishing to title his or her vehicle purchased in a foreign country will owe sales tax and any applicable county discretionary sales surtax that may be due on the vehicle according to his or her residence address. 20 February 2009 Sales and Use Tax Sales to Common Carriers A common carrier who wants to prorate intrastate (Florida) miles against miles everywhere must be registered in Florida with a valid Florida sales tax number to be exempt on purchases of vehicles. The sales tax number is used for proration of taxes on Florida miles against miles everywhere. Section 212.08(9)(b), F.S. , Rule 12A-1.064(4), F.A.C. The common carrier must present their Sales and Use Tax Direct Pay Permit number(DR-16A-Exhibit 9)and complete the appropriate portion of Form HSMV 82040 (Exhibit 3) to be exempt from sales tax on the entity’s purchase of a motor vehicle. See section 212.08(9)(b), F.S., and Rule 12A-1.064(4), F.A.C. All-Terrain Vehicles Pursuant to Chapter 317, F. S. all-terrain vehicles and off-highway vehicles are required to be titled. They are no longer exempt as an occasional sale; and are not considered motor vehicles pursuant to Chapter 320, F.S. When a resident of another state comes to Florida to purchase one of these vehicles they are NOT to sign form DR-123, Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State (Exhibit 8) and pay that state’s rate. Auto Leasing Companies When a rental or leasing motor vehicle dealer purchases motor vehicles to be used exclusively for rental purposes the purchase is exempt from sales and use tax. To support that exemption the rental/leasing car dealer must complete the appropriate portion of Form HSMV 82040 providing the sales tax number issued to the rental/leasing car dealer for reporting sales tax collection. High School Driver Education and Safety Program If a motor vehicle dealer loans automobiles to a high school for use in the high school Driver Education and Safety Program, no sales or use tax is due. Dealership Loaners Automobiles loaned by the dealership to customers who have their motor vehicles in the dealership’s repair shop are tax-exempt. If the dealership loans the motor vehicle at “no charge” to a customer not having their car repaired, the dealership owes use tax based on the U.S. Internal Revenue Service’s Automobile Annual Lease Value table. February 2009 21 Florida Department of Revenue Verifying the Sales Price of a Motor Vehicle Individual sellers or dealers are required to report the selling price of a vehicle. If the price is not properly reported, they are subject to penalties from the Department of Revenue. The vehicle purchaser does not have to provide proof of selling price in order to complete a transfer of title or vehicle registration. However, to properly complete the HSMV 82041 form, Application for Certification of Title and/or Vehicle Registration and Motor Vehicle Sales and Use Tax Report (Exhibit 2), tax collector staff must indicate whether or not proof of the selling price of the vehicle has been established. Either of the following documents is acceptable as proof of the vehicle selling price: 1. A notarized bill of sale documenting the purchase. The bill of sale must include: x The signature of both the seller and the buyer; x The total selling price of the vehicle; and x A description of the vehicle on the bill of sale. 2. A statement that states the selling price and the condition of the vehicle along with the completed purchaser affidavit. If the purchaser and seller are both present at the time of the transaction and, through proper identification, the seller has been verified as the person on the old title, then the selling price can be shown as verified on the HSMV 82041. There are times when individuals will not verify a sale price, or will refuse to pay the tax. When the tax collector staff fills out the HSMV 82041 properly, an inquiry will be generated from the Department of Revenue, and the situation will be addressed. Example: Jane and Tom come into the tax collector’s office to transfer a title. They owe but refuse to pay sales tax and the tax collector is unable to collect any sales tax. The clerk leaves the checkbox in the Sales and Use Tax section of the form unchecked and a letter of inquiry is generated by the Department of Revenue. Bill of Sale One common misconception is that some amount of money must change hands to make a legal transaction. Be aware that this may cause the person receiving the gift to be liable for the tax on 80% of the fair market value 22 February 2009 Sales and Use Tax plus penalties and interest. A “bill of sale” on a motor vehicle for the price of $1 and other valuable consideration will result in a letter of inquiry from the Department of Revenue. If the motor vehicle is a gift, the person documenting, registering, or titling the vehicle should document the transaction as a gift with no money amount on the bill of sale. Example: Beverly has just received a car from her parents for her college graduation. She comes into the tax collectors office to have the car titled in her name and presents a bill of sale for $1. Key Questions Did ownership rights transfer from one taxable individual to another? Yes, Beverly’s parents gave her the car. In this transaction, was something of value, either in goods and/or money, exchanged for the vehicle? Yes, according to the bill of sale, $1 changed hands. As noted above, Beverly may receive a letter of inquiry form the Department of Revenue, because the bill of sale indicated $1. In actuality Beverly should sign an affidavit that the vehicle was a gift, and no tax would be due. Letters of Inquiry Vehicle purchasers who are not able to document the vehicle selling price at the time of title transfer may receive a letter of inquiry from the Florida Department of Revenue. Customers often return to the tax collector’s office with questions about the letter of inquiry. A letter of inquiry asks the purchaser to document the vehicle selling price (Exhibits 5 and 6). Purchasers receive this letter if the reported selling price of the vehicle they purchased is less than 80% of the average loan value for the vehicle as listed by the Maclean Hunter Market Reporters, Inc. Purchasers who receive a Letter of Inquiry are asked to document the purchase price of their vehicle by submitting either: 1. A notarized bill of sale with signatures of the buyer and seller; or 2. An affidavit with signatures of the buyer and seller. The letter of inquiry includes blank affidavits on the back of the letter for taxpayer convenience. If the price a purchaser paid for his or her vehicle is correct, the purchaser should submit either the bill of sale or the completed affidavit(s), as described above, to the Florida Department of Revenue at the address listed on the letter of inquiry. February 2009 23 Florida Department of Revenue Computation of Tax Due An aircraft, vessel, mobile home, or motor vehicle is taxable when sold in Florida, including occasional or isolated sales, on the full selling price. If the purchaser does NOT have a trade-in, the sales tax is computed on the total purchase price. Purchaser Responsibilities When a purchaser applies for a title on a motor vehicle in an occasional or isolated sale, the purchaser should present an affidavit signed by the buyer and seller with the purchase price of the vehicle. The buyer of an occasional or isolated sale should present an affidavit to the tax collector on any sales price that is less than 80 percent of the average loan value. If an affidavit is not presented, the buyer will be contacted by the Department of Revenue to verify the purchase price at a later date. If the purchaser is not able to verify the purchase price when contacted by the Department, he or she may be liable to pay sales tax due, penalty in the amount of twice the tax due, and interest. In order for the tax collector to determine the amount of sales tax to be collected, the tax collector must first determine the taxable base. To arrive at the taxable base, the following aspects must be taken into consideration: The retail sales price, the amount of any trade-in allowance, and whether the sale qualifies as an exempt sale. What is the Full Taxable Selling Price? Full taxable selling price includes: x x x x x x x x x x federal taxes, unless separately stated; freight; handling fees; delivery fees; commissions; repossession fees; advertising fees; service warranties purchased in Florida; future free service; or any other expenses whatsoever. When a motor vehicle, purchased in another state with a service warranty, is brought into this state and titled in this state within six months of the purchase, the motor vehicle is subject to use tax, with credit given for tax paid in the other state. The service warranty is not subject to use tax. If the service warranty is not itemized on the bill of sale, the entire amount is subject to use tax. 24 February 2009 Sales and Use Tax State Mandated Fees – Exempt In order to title and register your vehicle in Florida there are certain fees that are mandated by the state in regards to the titling. These fees are imposed after the sale and, as a result, are NOT subject to sales tax on the sale of the motor vehicle. For example, these fees may be related to: x registration; x licensing; x insurance; (including GAAP – Guaranteed Auto Protection) x transfer of ownership; x recording a lien; x motor vehicle warranty enforcement fee ($2 lemon law fee). Motor Vehicle Warranty Enforcement Act – Lemon Law Fees Exempt Paid to County Tax Collector The purpose of the “lemon law” is to assist the consumer with a replacement vehicle or a full refund on a motor vehicle that cannot be brought into conformity. This law allows the consumer to be protected from a manufacturer defect, or “lemon.” The “lemon law” fee is paid to the county tax collector as agent for the Florida Department of Revenue, and then transferred to the Department of Legal Affairs. [Section 681.117, Florida Statutes.] All motor vehicle dealers and all persons engaged in the business of leasing new motor vehicles are required to collect a $2 fee from the consumer. The $2 fee is due from the consumer at the consummation of the sale of the vehicle or at the time of entering into a lease agreement. Sales tax is NOT charged on this fee. If a person from another state comes and purchases a car in Florida, he or she is required to pay the lemon law fee of $2. This fee is reported to the Department of Revenue on Form DR-35, Motor Vehicle Warranty Fee Remittance Report. Out-of-state Residents Move to Florida Within Six Months An out-of-state resident who moves to Florida within the first six months of purchasing a new motor vehicle (out-of-state) does NOT owe the lemon law fee. The lemon law fee is only collected when the selling dealer sells a new vehicle in Florida. When transferring the title to Florida, the tax collector does NOT collect the lemon law fee. February 2009 25 Florida Department of Revenue Trade-In Allowance – Registered Dealers After the customer decides on the vehicle to be purchased, the customer and dealership arrive at an agreed price. If the customer has a trade-in, this is taken into consideration when computing the amount of sales tax due. A registered motor vehicle dealer may accept tangible personal property (TPP) as a trade-in allowance to reduce the selling price of the new motor vehicle. In order for the trade-in allowance of TPP to reduce the taxable base, the trade-in must meet the following requirements: x x x x x purchase and trade-in are one transaction; and trade-in must be tangible personal property; and trade-in must be a taxable product; and the dealer must intend the trade-in to be for resale. When all these requirements are met, the trade-in allowance is deducted from the total sales price to determine the taxable base. Sales tax is reduced on the selling price of a motor vehicle if the registered motor vehicle dealer accepts the trade-in toward the purchase of another motor vehicle. Trade Between Individuals – Other Than Motor Vehicles As discussed earlier, a trade between individuals of anything (tangible personal property) other than a mobile home, motor vehicle, aircraft, or vessel would NOT reduce the taxable total selling price. NO reduction will be allowed on the taxable selling price for the trade or exchange if the trade is anything other than a mobile home, motor vehicle, aircraft, or vessel. An independent or separate sale of an automobile, aircraft, mobile home, or vessel by two individuals (not a dealer) is NOT considered a trade-in, even if the proceeds are applied immediately to the purchase of another vehicle. Example: Ted sells his old car to Bob (individuals) for $500. After selling his car to Bob, Ted goes to the new car dealership and immediately applies the $500 to the price of a new car. The $500 does NOT reduce the taxable selling price. 26 February 2009 Sales and Use Tax Tax Calculation Once the full selling price is determined, the sales tax is computed by deducting the value of the trade-in (only dealers may reduce the taxable base) from the selling price of the motor vehicle. This leaves the cash price upon which the sales tax is computed. The cash price/net sales price (full sales price less any trade-in) is subject to tax. Example – motor vehicle trade-in: A registered motor vehicle dealer accepts a used motor vehicle from a purchaser as a trade-in at the time of sale (same transaction) of a new motor vehicle. Sales price of new motor vehicle Less trade-in used vehicle Net sales price/taxable base $27,500 <2,500> $25,000 Example: tangible personal property trade-in: The buyer trades a recreational vehicle air conditioning unit with a registered motor vehicle dealer as a credit towards the purchaser of a new RV. The dealership intends to install the unit in another recreational vehicle in inventory for resale. Sales price of new recreational vehicle $32,000 Less trade-in (air conditioning unit) <1,000> Taxable base $31,000 Manufacturer Rebates Rebates do NOT reduce the selling price or the tax due. Retail dealers may handle manufacturer rebates in one of several ways. Rebates may be: x x x Mailed directly to customer by the manufacturer after the sale; Advanced in cash to customer, customer assigns the manufacturer's rebate rights to retailer; or Used to reduce the selling price of the vehicle upon receiving assignment from customer of the rebate due from the manufacturer. The manufacturer uses rebates to reduce the amount paid for a product. The rebates do NOT reduce the selling price or the tax due, although the retail dealer may be able to apply the rebate directly to the selling price of the motor vehicle. Since manufacturer rebates occur after the sale, they do NOT reduce the taxable sales price. February 2009 27 Florida Department of Revenue Example: Sale of a new motor vehicle Tax due at 6% Total due Manufacturer’s rebate* Amount due from consumer *Takes place after the sale $30,000 1,800 31,800 <1,500> $30,300 Dealer Discounts A dealer's discount reduces the selling price of the vehicle at the time of sale before computing the sales tax. [Rule 12A-1.018 (3), (4), F.A.C.] Example: A motor vehicle dealer advertises a “BIG” sale. At the time of sale the dealer marked down the price of all cars in stock by $1,000. The car manufacturer is also providing new car buyers with a rebate of $1,500. Sales price of car Less dealer discount* Taxable base Sales tax @ .06% Total Manufacturer’s rebate Due from customer *Takes place before the sale The sales price of the car is reduced by the dealer's discount but NOT by the manufacture's rebate when determining the taxable base. The dealership receives the full sale price ($29,000) from the customer plus $1,500 from the manufacturer. Example: A car dealer with a “BIG” sale ($1,000 off), and a manufacturer’s rebate ($1,500) accepts a used car as a trade-in ($2,500) on the same transaction with a customer on the purchase of a new car with a sale of $25,000. Sales price of car Less dealer discount Reduced sale price Less trade-in Taxable base Tax due @ .06% Total Less manufacturer’s rebate Total due $25,000 * Again, the sale price of the car <1,000> is reduced by the dealer's 24,000 discount but NOT by the <2,500> manufacturer's rebate when 21,500 determining the taxable base. $1,290 The dealership receives the 22,790 full sales price, $24,000 <1,500> (trade-in $2,500 plus $21,500) $21,290 from the customer plus $1,500 from the manufacturer. $30,000 <1,000> $29,000 1,740 $30,740 <1,500> $29,240 28 February 2009 Sales and Use Tax Motor Vehicle Exceptions Medical Attachments Special attachments for disabled drivers that make it possible for them to drive are exempt from Florida sales or use tax. These special attachments may be purchased tax-exempt with a written prescription. There is NO exemption for the motor vehicle. The charge for the special attachment should be separately stated on the invoice and/or sales agreement to be exempt from tax. Example: A disabled driver purchases a van with a wheelchair lift. The wheelchair lift was priced at $1,200. The price of the van is $30,000. The $1,200 is deducted before computing the sales tax due. New van $30,000 Wheelchair lift 1,200 Total sale price 31,200 Taxable price 6% sales tax Total due 30,000 1,800 $33,000 Use Tax Due Dealer automobile license tags are purchased annually by the motor vehicle dealer from the local tax collector or tag agency for $27 each. This is an annual “use tax” for operation of the vehicles used in connection with the dealer’s business. The dealer's license plate is used when the vehicles are operated such as allowing potential buyers an opportunity to test drive vehicles, and transporting vehicles to and from repair facilities, other dealerships, auctions, etc. If the dealer removes a vehicle from the inventory, surrenders the manufacturer’s certificate of origin, and obtains a title certificate, registering the motor vehicle in his or her name, “use tax” is due on the cost price of the vehicle (6% plus any applicable discretionary sales surtax). Sales Tax Reporting The selling dealer must record the sales tax certificate of registration number and the amount of the tax collected on the form prescribed by the Department of Highway Safety and Motor Vehicles, Form HSMV 82040, Application of Certificate of Title With/Without Registration (Exhibit 3). This form verifies the sales tax amount collected and remitted to the Florida Department of Revenue. The registered dealer is responsible for collecting and reporting the sales tax on the dealer’s monthly Sales and Use Tax Return, Form DR-15. February 2009 29 Florida Department of Revenue Statute of Limitations Often, individuals will come into the tax collector’s office with a bill of sale on a vessel they purchased several years ago that has never been registered, titled, or documented. There is no statute of limitations on this type of transaction. If the purchaser fails to register, title, or document the motor vehicle or vessel for a long period of time, when they do register, title, or document the motor vehicle or vessel, sales tax will be due at that time on the purchase price. 30 February 2009 Sales and Use Tax Vessels The tax application to non-resident purchasers is the only difference between vessels and motor vehicles. All boats sold and/or delivered in this state within 30 days are subject to Florida's 6 percent sales and use tax, unless specifically exempt. Generally, Florida boat dealers and yacht brokers are required to collect tax from the purchaser at the time of sale or delivery. All sales of boats between individuals are fully taxable if the sale and/or delivery occurs in Florida. If a boat is delivered into a county that imposes a discretionary sales surtax, then the dealer must also collect this tax. Discretionary sales surtax applies only to the first $5,000 of the purchase price. If a dealer sells to a non-resident a boat, motor, and trailer, the dealer should have the non-resident complete the removal affidavit for the boat and motor but pay that state’s applicable tax for the trailer. Salt Water Vessels Requiring a Saltwater Fishing License ($200) Non-commercial sport fishing vessels (charter vessels) imported from other states that are required to have a saltwater fishing license, are taxable on a sliding scale regardless if documented, titled or registered and regardless of how long they have been used in another state or states. A vessel that is first licensed: x Within one year after purchase is subject to use tax on the full amount of the purchase price; x In the second year after purchase is subject to tax on 90% of the purchase price; x In the third year after purchase is subject to tax on 80% of the purchase price; x The fourth year after purchase is subject to tax on 70% of the purchase price; x The fifth year after purchase is subject to tax on 60% of the purchase price; x In the sixth year after purchase, or later, is subject to tax on 50% of the purchase price. If a purchaser fails to provide an invoice proving the date of purchase, the fair market value shall be used for the determination of the use tax. Credit is given for tax paid in another state. The tax application to non-resident purchasers is the only difference between vessels and motor vehicles. February 2009 31 Florida Department of Revenue Difference: Possession Taken Sales tax and discretionary sales surtax apply to the purchase of a vessel where the possession of the vessel takes place. Demonstration Vessels Section 212.06(1)(e)1., F.S., exempts tax on a vessel registered pursuant to s. 328.52, F.S., by a vessel dealer or vessel manufacturer with respect to a vessel used solely for demonstration, sales promotional, or testing purposes. These vessels may be used in fishing tournaments, sport or racing demonstrations. Gift The gift of a vessel is exempt from tax if there are no outstanding liens. To support the exemption the applicant must have a bill of sale stating the vessel is a gift. For a vessel to be given from a corporation as the ratable assets to a corporate officer, the corporation must be completely dissolved. Exempt Sales of Vessels Older Than Six Months Vessels, like motor vehicles, brought into Florida from other states or territories (or District of Columbia) more than six months after purchase and legally registered, titled, or documented in those states or territories are NOT taxable when brought into Florida unless they are required to be registered as “salt water boats” required to have fishing licenses. Foreign Countries Vessels from foreign countries documented by the U.S. government may or may not be taxable, depending upon if and how long they have been in another state or states. If the vessel is brought into Florida to be documented from another country, sales tax will be due. The six-month rule does not apply to foreign countries similar to motor vehicles. Vessels of Five Net Tons of Admeasurement or Greater “Admeasurement” means how much water the vessel will displace when placed in the water. Documented vessels purchased by nonresidents may qualify for the 90-day safe harbor exemption if removed within 90 days from the date of purchase. In order to qualify for the 90-day safe harbor, the new owner must purchase a $20 decal through the dealer at the time of purchase of the vessel. The decal grants the purchaser a 90-day period in which to remove the vessel. The selling dealer purchases these decals from the Department of Revenue and is 32 February 2009 Sales and Use Tax responsible for affixing the decal to the vessel. In no case may the vessel stay in Florida waters longer than 90 days unless for repairs. A vessel purchased in another state that remained in that state for three months, and then brought into Florida, is not required to be registered for 90 days, which will then qualify for the six-month exemption on sales tax when documenting, registering or titling the vessel in Florida. Occasional or Isolated Sales When an individual sells a boat, outboard motor, and trailer to another individual, tax is due only on the price of the boat and trailer if each item is separately listed. The outboard motor qualifies as an isolated sale, because the motor is not required to be registered, titled, or documented. The boat and trailer are both required to be titled, registered, or documented, and do not qualify as occasional or isolated sales. However, inboard motors go with the boat and are taxable. Discretionary Sales Surtax (DSS) – Vessels Sales of Vessels: Location Possession Taken Determines Surtax The discretionary surtax for vessels is applied based on where possession by the purchaser of the vessel takes place. The discretionary surtax for motor vehicles and trailers is applied based on the residence address of the purchaser on the registration or title document for such property. For example, if you reside in Leon County and purchase a vessel in MiamiDade County with the vessel to be docked in Bay County, the dealer should charge the tax that applies to the county of purchase (Miami-Dade County). However, if a higher discretionary rate is in effect in the county where vessel is to be docked (Bay County), the additional discretionary tax should be paid to the county tax collector. If more tax is remitted from the selling dealer’s county, no refund is due. If the vessel is to be docked in another county, the discretionary tax should be applied to the county in which the vessel is to be docked. DSS ($5,000) cap applies to the boat and trailer since both are title vehicles. Example: Jim buys a boat, motor, and trailer for $30,000 from a dealer. Boat $18,000 Motor $10,000 Trailer $ 2,000 Total $30,000 The cap would apply as follows: Boat $18,000 + Motor $10,000 = $28,000 x 1%= $50.00 Trailer $2,000 x 1% = $20.00 February 2009 33 Florida Department of Revenue NOTES 34 February 2009 Sales and Use Tax Exhibits Exhibit 1 Exhibit 2 Affidavit for Private Casual Sale of a Motor Vehicle (DR-99A) Application for Certification of Title and/or Vehicle Registration and Motor Vehicle Sales and Use Tax Report (HSMV 82041) Application for Certificate of Title With/Without Registration (HSMV 82040) Discretionary Sales Surtax Information (DR-15DSS) DOR Letter of Inquiry –Verification of Sales/Purchase Price, Individual (DR-99I) DOR Letter of Inquiry –Verification of Sales/Purchase Price, Corporate (DR-99C) Motor Vehicle Sales Tax Rates by State as of 1/30/09, and Tax Credit Application (TIP No: 09A01-01) Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State (DR-123) Sales and Use Tax Direct Pay Permit (DR-16P) Exhibit 3 Exhibit 4 Exhibit 5 Exhibit 6 Exhibit 7 Exhibit 8 Exhibit 9 Exhibit 10 Affidavit for Exemption of Boat Sold for Removal from the State of Florida by a Nonresident Purchaser (GT-500003) Exhibit 11 Ownership Declaration and Sales and Use Tax Report of Vessel Purchase (DR-42B) Exhibit 12 Declaration of Mobile Home as Real Property (DR-402) February 2009 35 Florida Department of Revenue NOTES 36 February 2009 Florida Department of Revenue DR-99A R. 05/99 Affidavit for Private Casual Sale of a Motor Vehicle Warning: Section 212.05(1)(a)1.b., F.S. provides in part: “. . . Any party to such sale who reports a sales price less than the actual sales price is guilty of a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083. The department shall collect . . . from such party any delinquent sales taxes. In addition, such party shall pay any tax due and any penalty and interest assessed plus a penalty equal to twice the amount of additional tax owed. . . ” Seller’s Affidavit STATE OF _____________________________________________________ COUNTY OF ______________________________________________________ Before me this day personally appeared _______________________________________________________ , who being first duly sworn, deposes and says: As seller of the vehicle described as a _________________________________________________________________________________________________________________________________ (MAKE) (MODEL) (VEHICLE IDENTIFICATION NUMBER) I swear or affirm that the total selling price of said vehicle, including any unpaid balance due, was $ _____________________. I understand that giving a false statement can subject me to penalty equal to twice the amount of the additional tax owed. Sworn to (or affirmed) and subscribed before me this _____________ day of __________, A.D., _________. (Day of Month) (Month) (Year) ______________________________________________ _______________________________________________ (Signature of Notary) (Signature of Seller/Affiant) Personally Known _________________________ Or Produced Identification __________________________ Type of Identification Produced _________________________ _______________________________________________ Print, Type or Stamp Name of Notary Purchaser’s Affidavit STATE OF _____________________________________________________ COUNTY OF ______________________________________________________ Before me this day personally appeared _______________________________________________________ , who being first duly sworn, deposes and says: As purchaser of the vehicle described as a _________________________________________________________________________________________________________________________________ (MAKE) (MODEL) (VEHICLE IDENTIFICATION NUMBER) I swear or affirm that the total purchase price of said vehicle, including any unpaid balance due, was $ _____________________. I understand that giving a false statement can subject me to penalty equal to twice the amount of the additional tax owed. Sworn to (or affirmed) and subscribed before me this _____________ day of __________, A.D., _________. (Day of Month) (Month) (Year) ______________________________________________ _______________________________________________ (Signature of Notary) Exhibit 1 (Signature of Purchaser/Affiant) Personally Known _________________________ Or Produced Identification __________________________ Type of Identification Produced _________________________ _______________________________________________ Print, Type or Stamp Name of Notary This transaction is subject to review by the Department of Revenue Exhibit 2 Exhibit 3 Discretionary Sales Surtax Information DR-15DSS R. 11/08 This document contains the discretionary sales surtax rates for 2009. Please check the rates for each county in which you make sales of or deliver taxable goods or services. Please see the back of this form for a list of specific counties that have changes for 2009. It is each dealer’s responsibility to verify the rates for 2009 and to collect and send in the correct discretionary sales surtax on each taxable sale that is subject to surtax. Also, the amount of tax we distribute to the county where the seller is located is based on the proper completion of the surtax information on the sales tax return. If you have questions, please visit our Internet site or call us. Discretionary Sales Surtax Rates for 2009 (as of November 4, 2008) COUNTY TOTAL SURTAX RATE EFFECTIVE EXPIRATION DATE DATE COUNTY TOTAL SURTAX RATE EFFECTIVE EXPIRATION DATE DATE 1% Jun 1, 1988 None 1% Sep 1, 1991 None 1% Jan 1, 1988 Dec 2017 None 1.5% (1%) Dec 1, 1989 Dec 2019 (.5%) Jan 1, 2003 Dec 2012 Levy 1% Oct 1, 1992 None Liberty 1% Nov 1, 1992 None Madison 1.5% (1%) Aug 1, 1989 None (.5%) Jan 1, 2007 None Manatee .5% Jan 1, 2003 Dec 2017 Marion .5% Jan 1, 2005 Dec 2009 Martin .5% Jan 1, 2007 Dec 2011 Miami-Dade 1% (.5%) Jan 1, 1992 None (.5%) Jan 1, 2003 None Monroe 1.5% (1%) Nov 1, 1989 Dec 2018 (.5%) Jan 1, 1996 Dec 2015 Nassau 1% Mar 1, 1996 None Okaloosa None Okeechobee 1% Oct 1, 1995 None Orange .5% Jan 1, 2003 Dec 2015 Osceola 1% Sep 1, 1990 Aug 2025 Palm Bch .5% Jan 1, 2005 Dec 2010 Pasco 1% Jan 1, 2005 Dec 2014 Pinellas 1% Feb 1, 1990 Dec 2019 Polk 1% (.5%) Jan 1, 2004 Dec 2018 (.5%) Jan 1, 2005 Dec 2019 Putnam 1% Jan 1, 2003 Dec 2017 St. Johns None St. Lucie .5% Jul 1, 1996 Dec 2026 Santa Rosa .5% Oct 1, 1998 Dec 2018 Sarasota 1% Sep 1, 1989 Dec 2024 Seminole 1% Jan 1, 2002 Dec 2011 Sumter 1% Jan 1, 1993 None Suwannee 1% Jan 1, 1988 None Taylor 1% Aug 1, 1989 Dec 2029 Union 1% Feb 1, 1993 None Volusia .5% Jan 1, 2002 Dec 2016 Wakulla 1% Jan 1, 1988 Dec 2017 Walton 1% Feb 1, 1995 None Washington 1% Nov 1, 1993 None Each county that has a new surtax levy or extension is indicated in bold. Any county that has a surtax that expires in 2009 is also in bold and has an beside the expiration date. Exhibit 4 .75% (.5%) Jan 1, 2009 Dec 2010 (.25%) Jan 1, 2005 Dec 2011 Baker 1% Jan 1, 1994 None Bay None Bradford 1% Mar 1, 1993 None Brevard None Broward None Calhoun 1.5% (1%) Jan 1, 2009 None (.5%) Jan 1, 2009 Dec 2018 Charlotte 1% Jan 1, 2009 Dec 2014 Citrus None Clay 1% Feb 1, 1990 Dec 2019 Collier None Columbia 1% Aug 1, 1994 None Dade See Miami-Dade for rates. De Soto 1% Jan 1, 1988 None Dixie 1% Apr 1, 1990 Dec 2029 Duval 1% (.5%) Jan 1, 1989 None (.5%) Jan 1, 2001 Dec 2030 Escambia 1.5% (1%) Jun 1, 1992 Dec 2017 (.5%) Jan 1, 1998 Dec 2017 Flagler 1% (.5%) Jan 1, 2003 Dec 2012 (.5%) Jan 1, 2003 Dec 2012 Franklin 1% Jan 1, 2008 None Gadsden 1.5% (1%) Jan 1, 1996 None (.5%) Jan 1, 2009 Dec 2038 Gilchrist 1% Oct 1, 1992 None Glades 1% Feb 1, 1992 Dec 2021 Gulf 1% (.5%) Jul 1, 1997 Jun 2017 (.5%) Jan 1, 2006 None Hamilton 1% Jul 1, 1990 Dec 2019 Hardee 1% Jan 1, 1998 None Hendry 1% Jan 1, 1988 None Hernando .5% Jan 1, 2005 Dec 2014 Highlands 1% Nov 1, 1989 Oct 2019 Hillsborough 1% (.5%) Dec 1, 1996 Nov 2026 (.5%) Oct 1, 2001 None Holmes 1% Oct 1, 1995 Dec 2013 Indian River 1% Jun 1, 1989 Dec 2019 Jackson 1.5% (1%) Jun 1, 1995 May 2010 (.5%) Jul 1, 1996 Dec 2015 Alachua Jefferson Lafayette Lake Lee Leon Please Note: The following counties have had changes to their discretionary sales surtax rates or expiration dates effective for 2009. Alachua County – .75% Total Surtax Rate Effective 1/1/2009 • • Passed a NEW .5% Local Government Infrastructure surtax that begins 1/1/2009 and expires 12/31/2010 Current .25% surtax is still in effect and expires 12/31/2011 Bay County – No Surtax Rate Effective 5/1/2008 • Previous .5% surtax expired 4/30/2008 • • • • • Passed a NEW .5% School surtax that begins 1/1/2009 and expires 12/31/2018 Extended their current 1% surtax starting 1/1/2009 and has no expiration date Extended their current 1% Local Government Infrastructure surtax starting 1/1/2009 and expires 12/31/2014 Passed a NEW .5% Indigent Care surtax that begins 1/1/2009 and expires 12/31/2038 Current 1% surtax is still in effect and has no expiration date Calhoun County – 1.5% Total Surtax Rate Effective 1/1/2009 Charlotte County – 1% Total Surtax Rate Effective 1/1/2009 Gadsden County – 1.5% Total Surtax Rate Effective 1/1/2009 Resources Florida Department of Revenue Service Centers (as of November 2008) Alachua Service Center 14107 US Highway 441 Ste 100 Alachua FL 32615-6390 386-418-4444 (ET) Clearwater Service Center Arbor Shoreline Office Park 19337 US Highway 19 N Ste 200 Clearwater FL 33764-3149 727-538-7400 (ET) Cocoa Service Center 2428 Clearlake Rd Bldg M Cocoa FL 32922-5731 321-504-0950 (ET) Coral Springs Service Center Florida Sunrise Tower 3111 N University Dr Ste 501 Coral Springs FL 33065-5096 954-346-3000 (ET) Daytona Beach Service Center 1821 Business Park Blvd Daytona Beach FL 32114-1230 386-274-6600 (ET) Fort Myers Service Center 2295 Victoria Ave Ste 270 Fort Myers FL 33901-3871 239-338-2400 (ET) Fort Pierce Service Center Benton Building 337 N US Highway 1 Ste 207-B Fort Pierce FL 34950-4255 772-429-2900 (ET) Hollywood Service Center Taft Office Complex 6565 Taft St Ste 300 Hollywood FL 33024-4044 954-967-1000 (ET) Jacksonville Service Center 921 N Davis St A250 Jacksonville FL 32209-6829 904-359-6070 (ET) Key West Service Center 3106 Flagler Ave Key West FL 33040-4602 305-292-6725 (ET) Lake City Service Center 1401 W US Highway 90 Ste 100 Lake City FL 32055-6123 386-758-0420 (ET) Lakeland Service Center 230 S Florida Ave Ste 101 Lakeland FL 33801-4625 863-499-2260 (ET) Leesburg Service Center 1415 S 14th St Ste 103 Leesburg FL 34748-6686 352-315-4470 (ET) Maitland Service Center Ste 160 2301 Maitland Center Parkway Maitland FL 32751-4192 407-475-1200 (ET) Marianna Service Center 4230 Lafayette St Ste D Marianna FL 32446-8231 850-482-9518 (CT) Miami Service Center 8175 NW 12th St Ste 119 Miami FL 33126-1828 305-470-5001 (ET) Naples Service Center 3073 Horseshoe Dr S Ste 110 Naples FL 34104-6145 239-434-4858 (ET) Orlando Service Center Regions Bank Building 5401 S Kirkman Rd 5th Floor Orlando FL 32819-7911 407-903-7350 (ET) Panama City Service Center 210 N Tyndall Pkwy Panama City FL 32404-6432 850-872-4165 (CT) Pensacola Service Center 3670C N L St Pensacola FL 32505-5217 850-595-5170 (CT) Port Richey Service Center 6709 Ridge Rd Ste 300 Port Richey FL 34668-6842 727-841-4407 (ET) Sarasota Service Center Sarasota Main Plaza 1991 Main St Ste 240 Sarasota FL 34236-5940 941-361-6001 (ET) Tallahassee Service Center 2410 Allen Rd Tallahassee FL 32312-2603 850-488-9719 (ET) Tampa Service Center Ste 100 6302 E Martin Luther King Blvd Tampa FL 33619-1166 813-744-6590 (ET) West Palm Beach Service Center 2468 Metrocentre Blvd West Palm Beach FL 33407-3105 561-640-2800 (ET) CT—Central Time ET—Eastern Time For Information and Forms Information and forms are available on our Internet site at www.myflorida.com/dor To speak with a Department of Revenue representative, call Taxpayer Services, Monday through Friday, 8 a.m. to 7 p.m., ET, at 800-352-3671. Persons with hearing or speech impairments may call our TDD at 800-367-8331 or 850-922-1115. For a written reply to tax questions, write: Taxpayer Services Florida Department of Revenue 5050 W Tennessee St Bldg L Tallahassee FL 32399-0112 To receive forms by mail: • Order multiple copies of forms from our Internet site at www.myflorida.com/dor/forms or • Mail form requests to: Distribution Center Florida Department of Revenue 168A Blountstown Hwy Tallahassee FL 32304-3761 Department of Revenue service centers host educational seminars about Florida’s taxes. To get a schedule of upcoming seminars or to register for one, • Visit us online at www.myflorida.com/dor or • Call the service center nearest you. Find information about Florida tax law in the “Tax Law Library” on our Internet site. Visit: www.myflorida.com/dor/law Vehicle Sales and Use Tax Mail to: Florida Department of Revenue 5050 W. Tennessee Street Tallahassee, Florida 32399-0145 DR-99I R. 12/05 CONTROL NO. FOR DOR USE ONLY Approved Disapproved Pmt FI Mail FI By Date Dear Vehicle Owner: The Florida Department of Revenue is required by section 212.05(1)(a), Florida Statutes, to review all nondealer or individual sales of motor vehicles to determine if any additional sales tax is due. If a vehicle is sold and the reported purchase price is less than 80% of the average loan value, the law requires us to ask the purchaser to verify that price. Because public records of the Florida Department of Highway Safety and Motor Vehicles indicate that you recently purchased a vehicle, and the reported purchase price for that vehicle is less than 80% of the average loan value, you need to verify the price in one of the ways listed below. However, if the stated purchase price was underreported, you need to pay the additional tax, specific penalty, and interest due. The amount due shown on the coupon below is an estimate of the additional amount that may be due, based on an average loan value. You must pay additional tax, penalty, and interest only if you are unable to verify that the stated purchase price is correct. You may verify the price by submitting at least one of the following: t The “Verification of Sales/Purchase Price” form conveniently provided on the back of this letter, completed by the seller* and purchaser. t A notarized affidavit (Form DR-99A) completed by the seller* and purchaser (call the number listed below to request this form). t A copy of the original bill of sale signed by both the seller* and purchaser and notarized. *If you are unable to locate the seller, you may verify the purchase price by providing: t A letter signed by you (the purchaser) describing the condition of the vehicle at the time of the purchase and the “Purchaser’s Declaration” portion of the “Verification of Sales/Purchase Price” located on the back of this letter. OR t A notarized affidavit (Form DR-99A) completed by the purchaser. You must respond to this letter (even if you do not owe additional tax) within 30 days of the postmark to avoid any further agency action. Again, if you simply verify the purchase price in one of the ways listed above, no additional tax or penalty is due. If you have any questions about this letter, please contact the Florida Department of Revenue, Monday-Friday, 8 a.m. to 7 p.m., ET, at 800352-3671 or 850-488-6800. Persons with hearing or speech impairments may call the TDD line at 800-367-8331 or 850-922-1115. An estimate of the additional tax and penalty you may owe (if you are unable to verify the stated purchase price) is set forth below. Vehicle Sales and Use Tax PLEASE REVIEW AND VERIFY THE INFORMATION BELOW CONTROL NO. MAKE AND MODEL VIN DATE PURCHASED DR-99I R. 12/05 Failure to respond to this letter within 30 days will result in further agency action and/or referral to a collection agency. 1. AVERAGE LOAN VALUE 2. PURCHASE PRICE ON BACK OF TITLE 3. DIFFERENCE (Line 1 minus Line 2) 4. TAX PAID WHEN TITLE WAS TRANSFERRED 5. ESTIMATED ADDITIONAL TAX DUE 6. LATE PENALTY 7. INTEREST 8. SPECIFIC PENALTY (Section 212.05(1)(a),F.S.) 9. ESTIMATED ADDITIONAL AMOUNT DUE 1. 2. 3. 4. 5. 6. 7. 8. 9. ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ Exhibit 5 VERIFICATION OF SALES/PURCHASE PRICE FOR PRIVATE CASUAL SALE OF A MOTOR VEHICLE Warning: Section 212.05(1)(a)1.b.,F.S. provides in part: “… Any party to such sale who reports a sales price less than the actual sales price is guilty of a misdemeanor of the first degree, punishable as provided in s.775.082 or s.775.083. The department shall collect… from such party any delinquent sales taxes. In addition, such party shall pay any tax due and any penalty and interest assessed plus a penalty equal to twice the amount of additional tax owed…” Seller’s Declaration STATE OF ____________________________________ COUNTY OF___________________________________________ I__________________________________________, as seller of the vehicle described as a _______________________ (Print seller’s name) (Year) ____________________________________________________________________, declare and affirm that the total selling (Make) (Model) (Vehicle Identification Number) price of said vehicle, including any unpaid balance due was $________________________________. Under penalty of perjury, as provided in s.92.525(1)(b) & (2), F.S., I declare that I have read the forgoing information verifying the sales price of the vehicle described and that the facts stated are true. I also understand a person who knowingly makes a false declaration under s.92.525(2) F.S. is guilty of crime of perjury by false written declaration, a felony of the third degree, punishable as provided in s.775.082, or s.775.083, or s.775.084, F.S. _____________________________________________ (Seller’s signature) __________________________ (Date) IF YOU CAN NOT LOCATE THE SELLER, ATTACH A LETTER STATING THE CONDITION OF THE VEHICLE WHEN PURCHASED. Purchaser’s Declaration STATE OF ______________________________________ COUNTY OF__________________________________________ I__________________________________________, as purchaser of the vehicle described as a ___________________ (Print purchaser’s name) (Year) _____________________________________________________________________, declare and affirm that the total selling (Make) (Model) (Vehicle Identification Number) price of said vehicle, including any unpaid balance due was $________________________________. Under penalty of perjury, as provided in s.92.525(1)(b) & (2), F.S., I declare that I have read the forgoing information verifying the sales price of the vehicle described and that the facts stated are true. I also understand a person who knowingly makes a false declaration under s.92.525(2) F.S. is guilty of crime of perjury by false written declaration, a felony of the third degree, punishable as provided in s.775.082, or s.775.083, or s.775.084, F.S. ______________________________________ (Purchaser’s signature) _________________________ (Date) LINE EXPLANATIONS Lines 1-5 Self-explanatory. Line 6 This figure represents 10% of the amount on line 5 for each 30 days or fraction therof, not to exceed 50%, computed from the date of transfer. Line 7 This figure is interest computed from the date of transfer. A floating rate of interest applies to underpayments and late payments of tax. The rates are updated January 1 and July 1 of each year by using the formula established in section 213.235, Florida Statutes. To obtain interest rates, you can visit the Department’s Internet site at www.myflorida.com/dor or call Taxpayer Services, Monday – Friday, 8 a.m. to 7 p.m., ET, at 800-352-3671 or 850-488-6800. Persons with hearing or speech impairments should call our TDD at 800-367-8331 or 850-922-1115. Line 8 Section 212.05(1)(a),F.S., provides that any party to such sale shall pay any tax due, penalty, and interest assessed, plus a penalty equal to twice the amount of the additional tax owed. Line 9 Total amount due based on the average loan value. APPLICABLE STATUTE CONCERNING LETTER OF INQUIRY Section 212.05(1)(a),F.S., provides in part if any party to an occasional or isolated sale of such a vehicle reports to the tax collector a sales price which is less than 80% of the average loan price for the specified model and year of such vehicle as listed in the most recent reference price list, the tax levied under this paragraph shall be computed by the department on such average loan price unless the parties to the sale have provided to the tax collector an affidavit, signed by each party, or other substantial proof, stating the actual sales price. Vehicle Sales and Use Tax Mail to: Florida Department of Revenue 5050 W. Tennessee Street Tallahassee, Florida 32399-0145 DR-99C R. 12/05 CONTROL NO. FOR DOR USE ONLY Approved Disapproved Pmt FI Mail FI By Date Dear Corporate Manager: Public records of the Florida Department of Highway Safety and Motor Vehicles indicate your corporation recently purchased a vehicle. The Florida Department of Revenue is required by section 212.05(1)(a), Florida Statutes, to review all corporate vehicle title transfers to determine if additional sales tax is due. You are required to document the vehicle purchase price, by either: • A notarized bill of sale with signatures of buyer and seller or • A notarized affidavit with signatures of buyer and seller and a statement on corporate letterhead from the selling corporation as to the fair market value. According to the information reported at the time of this vehicle title transfer and registration, you may owe additional tax. Since the reported price for this vehicle is less than 80% of the average loan value, we must ask you to confirm the reported price. An affidavit for this confirmation is provided on the back of this letter for your convenience. This also applies to title transfers from a corporation to an individual as well as from an individual to a corporation. Please Note: If the actual price you paid for this vehicle was more than the reported price listed at the time of vehicle registration, you may owe additional tax, penalties, and interest. Regardless of whether you owe additional tax, you must respond to this letter within 30 days of postmark to avoid further agency action and/or referral of your account to a collection agency. Please mail this letter with completed affidavit or a notarized bill of sale and any necessary payment to: Florida Department of Revenue 5050 West Tennessee Street Tallahassee, Florida 32399-0145 If you have questions about this letter, please contact the Vehicle Sales Tax Unit, Florida Department of Revenue, Monday-Friday, 8 a.m. to 7 p.m., ET, at 800-352-3671 or 850-488-6800. An estimate of the additional tax you may owe based on the loan value is provided below: Vehicle Sales and Use Tax PLEASE REVIEW AND VERIFY CONTROL NO. MAKE AND MODEL VIN DATE PURCHASED DR-99C R. 12/05 Failure to respond to this letter within 30 days will result in further agency action and/or referral to a collection agency. 1. AVERAGE LOAN VALUE 2. PURCHASE PRICE ON BACK OF TITLE 3. DIFFERENCE (Line 1 minus Line 2) 4. TAX PAID WHEN TITLE WAS TRANSFERRED 5. ESTIMATED ADDITIONAL TAX DUE 6. LATE PENALTY 7. INTEREST 8. SPECIFIC PENALTY (s. 212.05(1)(a),F.S.) 9. ESTIMATED ADDITIONAL AMOUNT DUE 1. 2. 3. 4. 5. 6. 7. 8. 9. ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ Exhibit 6 AFFIDAVIT FOR PRIVATE CASUAL SALE OF A MOTOR VEHICLE SELLER’S AFFIDAVIT STATE OF _______________________________________________ COUNTY OF __________________________________________ Before me this day personally appeared ____________________________________________________________________ , who being first duly sworn, deposes and says: As seller of the vehicle described as a _______________________________________________________________________________________________________________ (MAKE) (MODEL) (VEHICLE IDENTIFICATION NUMBER) I swear or affirm that the total selling price of said vehicle, including any unpaid balance due, was $ _____________________ I understand that giving a false statement can subject me to penalty equal to twice the amount of the additional tax owed. Sworn to (or affirmed) and subscribed before me this _____________ day of __________, A.D., _________. (Day of Month) (Month) (Year) ______________________________________________ (Signature of Seller/Affiant) _______________________________________________ (Signature of Notary) Personally known _________________________ Or Produced identification __________________________ Type of identification produced _________________________ _________________________________________________________ Print, type, or stamp name of Notary PURCHASER’S AFFIDAVIT STATE OF _______________________________________________ COUNTY OF __________________________________________ Before me this day personally appeared ____________________________________________________________________ , who being first duly sworn, deposes and says: As purchaser of the vehicle described as a _______________________________________________________________________________________________________________ (MAKE) (MODEL) (VEHICLE IDENTIFICATION NUMBER) I swear or affirm that the total selling price of said vehicle, including any unpaid balance due, was $ _____________________ I understand that giving a false statement can subject me to penalty equal to twice the amount of the additional tax owed. Sworn to (or affirmed) and subscribed before me this _____________ day of __________, A.D., _________. (Day of Month) (Month) (Year) ______________________________________________ (Signature of Purchaser/Affiant) _______________________________________________ (Signature of Notary) Personally known _________________________ Or Produced identification __________________________ Type of identification produced _________________________ LINE EXPLANATIONS Lines 1-5 Line 6 Line 7 _________________________________________________________ Print, type, or stamp name of Notary Line Line 8 9 Self-explanatory This figure represents 10% of the amount on line 5 for each 30 days or fraction thereof, not to exceed 50%, computed from the date of transfer. This figure is interest computed from the date of transfer. A floating rate of interest applies to underpayments and late payments of tax. The rates are updated January 1 and July 1 of each year by using the formula established in section 213.235, Florida Statutes. To obtain interest rates, you can visit the Department’s Internet site at www.myflorida.com/dor or call Taxpayer Services, Monday - Friday, 8 a.m. to 7 p.m., ET, at 800-352-3671 or 850-488-6800. Persons with hearing or speech impairments should call our TDD at 800-367-8331 or 850-922-1115. Section 212.05(1)(a),F.S., provides that any party to such sale shall pay any tax due, penalty, and interest assessed, plus a penalty equal to twice the amount of the additional tax owed. Total amount due based on the average loan value. APPLICABLE FLORIDA STATUTE CONCERNING LETTER OF INQUIRY Section 212.05(1)(a),F.S., provides in part: “If any party to an occasional or isolated sale of such a vehicle 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 in the most recent reference price list, the tax levied under this paragraph shall be computed by the department on such average loan price unless the parties to the sale have provided to the tax collector an affidavit, signed by each party, or other substantial proof, stating the actual sales price.” Additionally, this section provides: “Any party to such sale who reports a sales price less than the actual sales price is guilty of a misdemeanor of the first degree, punishable as provided in s. 775.082 or s. 775.083,F.S. The department shall collect... from such party any delinquent sales taxes. In addition, such party shall pay any tax due and any penalty and interest assessed plus a penalty equal to twice the amount of additional tax owed.” Florida Department of Revenue Tax Information Publication TIP No: 09A01-01 Date Issued: January 30, 2009 Motor Vehicle Sales Tax Rates by State as of January 30, 2009, And Tax Credit Application Motor Vehicles Purchased in Another State and Brought into Florida Section 212.06(7), Florida Statutes (F.S.), allows a credit to be given on tangible personal property brought into Florida where a like tax has been lawfully imposed and paid in another state. If the amount paid is equal to or greater than the amount imposed by Florida, no additional tax is due. If the amount is less than the amount imposed in Florida, only the difference between the two is due. However, it is presumed that tangible personal property used in another state, territory of the U.S., or District of Columbia for six months or longer before being brought into Florida was not purchased for use in Florida; and, therefore, no Florida tax is due. No credit of Florida tax is given for use or taxes paid in another country. See section entitled "Foreign Countries." Credit against Florida sales tax and any discretionary sales surtax shall be given for a like tax paid in another state, whether the tax has been paid to the state, or to a county or city (local taxes) within the other state, and provided the like tax is related to the transaction. Motor Vehicles Sold in Florida to Residents of Another State Section 212.08(10), F.S., allows a partial exemption for a motor vehicle purchased by a resident of another state. The tax imposed is the amount of sales tax that would be imposed by the purchaser’s home state if the vehicle were purchased in that state; however, it is not to exceed the Florida 6% tax rate. The tax collected is Florida tax and is to be remitted to the Florida Department of Revenue. The nonresident purchaser is required to complete, at the time of sale, Form DR-123, Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State, declaring his/her intent to license the vehicle in his/her home state within 45 days of the date of sale. If the nonresident purchaser licenses the motor vehicle in his or her home state within 45 days from the date of purchase, there is no requirement that the motor vehicle has to be removed from this state. The partial exemption for a motor vehicle sold in Florida to a nonresident purchaser does not apply to a nonresident corporation or partnership when: An officer of the corporation is a Florida resident; A stockholder who owns at least 10 percent of the corporation is a Florida resident; or A partner who has at least a 10 percent ownership in the partnership is a Florida resident. However, the partial exemption may be allowed for corporations or partnerships if the vehicle is removed from Florida within 45 days after purchase and remains outside this state for a minimum of 180 days, regardless of the residency of the owners or stockholders of the purchasing entity. Currently, the states of Arkansas, Mississippi, and West Virginia impose a sales tax on motor vehicles, but they DO NOT allow a credit for taxes paid to Florida. Residents of these states should be made aware that they are required to pay sales tax to Florida at the rate imposed by their home state when they purchase a vehicle in Florida and will also be required to pay tax to their home state when the vehicle is licensed in their home state. Exhibit 7 ALABAMA 2% sales tax rate. Credit is allowed by Florida for tax paid in Alabama. Credit is allowed by Alabama for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Boats without motors are taxed at 4%. Occasional or isolated sales are NOT exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. CONNECTICUT 6% sales tax rate. Credit is allowed by Florida for tax paid in Connecticut. Credit is allowed by Connecticut for tax paid in Florida. Tax calculated on sales price of motor vehicle, less credit for trade-in when purchased from a licensed motor vehicle dealer. Occasional or isolated sales are NOT exempt. Commercial trucks, truck tractors, tractors, semi-trailers, and vehicles used in combination therewith are exempt if the gross vehicle weight rating is in excess of 26,000 lbs. or the vehicle is used exclusively in interstate commerce. Sales of motor vehicles to resident military personnel are NOT exempt. ALASKA No sales tax. No credit is allowed by Florida for tax paid in Alaska. No credit is allowed by Alaska for tax paid in Florida. Local taxes authorized. DELAWARE ARIZONA 5.6% sales tax rate. Credit is allowed by Florida for tax paid in Arizona. Credit is allowed by Arizona for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales ARE exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. No sales tax. Credit is allowed by Florida for the motor vehicle document fee paid in Delaware. Credit is allowed by Delaware for tax paid in Florida if vehicle was titled in Florida and retitled in Delaware within 90 days from date of the Florida title. Effective 10/01/08, the document fee is 3.75%. Fee calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. ARKANSAS 6% sales tax rate. Credit is allowed by Florida for tax paid in Arkansas. No credit is allowed by Arkansas for tax paid in Florida. Sales tax imposed on motor vehicles with a taxable purchase price of $2500.00 or greater. Credit for trade-in allowed. Occasional or isolated sales are NOT exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. DISTRICT OF COLUMBIA No sales tax (on motor vehicles). No credit is allowed by Florida for the motor vehicle excise tax paid in the District of Columbia. No credit is allowed by the District of Columbia for tax paid in Florida. A motor vehicle excise tax is imposed. No credit for trade-in; 6% of fair market value of new & used 3,499 lb. or less; 7% on fair market value of new & used 3,500 lb. or more. Sales of motor vehicles to resident military personnel are NOT exempt. CALIFORNIA 7.25% sales tax rate. Credit is allowed by Florida for tax paid in California. Credit is allowed by California for tax paid in Florida. Tax calculated on sales price of new and used vehicles. NO credit for trade-in. Occasional or isolated sales are NOT exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. FLORIDA 6% sales tax rate. [REFER to this document (under other states) for tax credit provisions.] Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. COLORADO 2.9% sales tax rate. Credit is allowed by Florida for tax paid in Colorado. Credit is allowed by Colorado for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. GEORGIA 4% sales tax rate. Credit is allowed by Florida for tax paid in Georgia. Credit is allowed by Georgia for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales ARE exempt. Local taxes authorized. Please Note: Georgia does not allow credit for taxes paid in excess of 4% to apply against Georgia local taxes. Sales of motor vehicles to resident military personnel are NOT exempt. ILLINOIS continued 6 years or newer 7 years or newer 8 years or newer 9 years or newer 10 years or newer 11 years or older Table A $ 90 $ 80 $ 65 $ 50 $ 40 $ 25 Table B Vehicles purchased for $15,000 or more: Purchase Price $15,000 to $19,999 $20,000 to $24,000 $25,000 to $29,000 $30,000 or more Tax $ 750 $ 1,000 $ 1,250 $ 1,500 HAWAII No sales tax. No credit is allowed by Florida for the general excise tax paid in Hawaii. Credit is allowed by Hawaii for tax paid in Florida. 4% general excise tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales ARE exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. INDIANA 6% sales tax rate. Credit is allowed by Florida for tax paid in Indiana. Credit is allowed by Indiana for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. IDAHO 6% sales tax rate. Credit is allowed by Florida for tax paid in Idaho. Credit is allowed by Idaho for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Sales of motor vehicles with a maximum gross registered weight over 26,000 lbs. that are registered under the I.R.P. and used as part of a fleet with over 10% of miles outside Idaho are exempt. Sales of motor vehicles to resident military personnel are NOT exempt. IOWA 0% sales tax rate. Credit is allowed by Florida for the registration fee paid in Iowa. Credit is allowed by Iowa for tax paid in Florida. Effective July 1, 2008, the sale or lease of a vehicle that is subject to registration is exempt from Iowa sales tax. However, these vehicles are subject to a one time registration fee of 5% of the sales or lease price of the vehicle. The registration fee is calculated on the sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Trucks, trailers, and semi-trailers registered for a gross weight of 13 tons or more and used in interstate commerce are exempt. Sales of motor vehicles to resident military personnel are NOT exempt. ILLINOIS 6.25% sales tax rate. Credit is allowed by Florida for tax paid in Illinois. Credit is allowed by Illinois for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt; however, the tax is determined by the purchase price or fair market value of the vehicle and the age of the vehicle (See Table A and Table B listed below). Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. Table A Vehicles purchased for less than $15,000: Vehicle Age in Years 1 year or newer 2 years or newer 3 years or newer 4 years or newer 5 years or newer Tax $390 $290 $215 $165 $115 KANSAS 5.3% sales tax rate. Credit is allowed by Florida for tax paid in Kansas. Credit is allowed by Kansas for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. 3 KENTUCKY No sales tax (on motor vehicles sold to Kentucky residents). Credit is allowed by Florida for motor vehicle usage tax paid in Kentucky. Effective August 1, 2006, Florida residents are assessed Kentucky sales tax on the purchase of a motor vehicle in Kentucky. Credit is allowed by Kentucky for tax paid in Florida. There is a 6% motor vehicle usage tax on the total sales price. If it is a new vehicle, no credit for trade-in is allowed. If it is a used vehicle, credit for trade-in is allowed, if the trade-in was previously registered in Kentucky. The tax is based on the total sales price, provided the buyer and seller complete a notarized affidavit attesting to the total consideration. NOTE: Mobile homes, trailers, and boats are subject to 6% sales tax. Credit is allowed by Florida on mobile homes, trailers, and boats. Sales of motor vehicles to resident military personnel are NOT exempt. MARYLAND continued motor vehicles to resident military personnel are NOT exempt. MASSACHUSETTS 5% sales tax rate. Credit is allowed by Florida for tax paid in Massachusetts. Credit is allowed by Massachusetts for tax paid in Florida. Tax calculated on sales price of new or used motor vehicles. Credit for trade-in allowed when motor vehicle traded in to a registered dealer. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. MICHIGAN 6% sales tax rate. Credit is allowed by Florida for tax paid in Michigan. Credit is allowed by Michigan for tax paid in Florida. Tax calculated on sales price of new or used motor vehicles. No credit for trade-in. Occasional or isolated sales are NOT exempt. Concrete mixing trucks used for industrial purposes are exempt. Commercial trucks with 2 axles and GVW in excess of 10,000 lbs. or a power unit having 3 or more axles are exempt. Sales of motor vehicles to resident military personnel are NOT exempt. LOUISIANA 4% sales tax rate. Credit is allowed by Florida for tax paid in Louisiana. Credit is allowed by Louisiana for tax paid in Florida. Tax calculated on the sales price of new or used motor vehicles, less credit for trade-in. Trucks and trailers over 26,000 lbs. used 80% of the time in interstate commerce are exempt. Occasional or isolated sales are NOT exempt. Local taxes authorized. New mobile homes are taxed at 4% of 46% of the purchase price. Used mobile homes are exempt whether sold by a dealer or an individual. Sales of motor vehicles to resident military personnel are NOT exempt. MINNESOTA 6.5% sales tax rate. Credit is allowed by Florida for tax paid in Minnesota. Credit is allowed by Minnesota for tax paid in Florida. Tax is calculated on sales price of new and used motor vehicles, less credit for trade-in. Used vehicles that are 10 years old or older are taxed at a flat $10.00. Occasional or isolated sales are NOT exempt. Local taxes authorized. Ambulances owned and operated by local governments are exempt. Ready mix concrete trucks are exempt. Sales of motor vehicles to resident military personnel are NOT exempt. MAINE 5% sales tax rate. Credit is allowed by Florida for tax paid in Maine. Credit is allowed by Maine for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. MISSISSIPPI 5% sales tax rate on motor vehicles and light trucks 10,000 lbs or less; 3% on heavy trucks; 3% on semi-trailers; 7% on all other trailers; 7% on motorcycles. Credit is allowed by Florida for tax paid in Mississippi on any type of vehicle. No credit is allowed by Mississippi for tax paid in Florida (except for mobile homes). Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional, casual, or isolated sales are NOT exempt. Transfers of motor vehicles 10 or more years after the date of manufacture are exempt from tax. Sales of motor vehicles to resident military personnel are NOT exempt. MARYLAND No sales tax (on motor vehicles). Credit is allowed by Florida for the motor vehicle excise tax paid in Maryland. No credit is allowed by Maryland for tax paid in Florida. A motor vehicle excise tax of 6% on fair market value (for a new or used vehicle from a motor vehicle dealer, fair market value equals the purchase price of the vehicle as certified by the dealer) - less credit for trade-in. Occasional or isolated sales are NOT exempt. Sales of 4 MISSOURI 4.225% sales tax rate. Credit is allowed by Florida for tax paid in Missouri. Credit is allowed by Missouri for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. NEW JERSEY 7% sales tax rate. Credit is allowed by Florida for tax paid in New Jersey. Credit is allowed by New Jersey for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Only commercial vehicles over 26,000 lb., 18,000 lb. for farm vehicles, or operated pursuant to ICC permit are not taxable. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. MONTANA No sales tax. No credit is allowed by Florida for motor vehicle tax paid in Montana. No credit is allowed by Montana for tax paid in Florida. Motor vehicle tax calculated on manufacturer's F.O.B. factory list price - new only. Used motor vehicles: no sales tax but a 2% local property tax based on average trade-in value from N.A.D.A. Blue Book. No credit for trade-in. Occasional or isolated sales ARE exempt. Local taxes authorized. NEW MEXICO No sales tax (on motor vehicles). Credit is allowed by Florida for the motor vehicle excise tax paid in New Mexico. Credit is allowed by New Mexico for tax paid in Florida. A 3% motor vehicle excise tax is imposed on new and used vehicles on sales price less credit for trade-in. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. NEBRASKA 5.5% sales tax rate. Credit is allowed by Florida for tax paid in Nebraska. Credit is allowed by Nebraska for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales of motor vehicles between individuals are NOT exempt. Local taxes of 0.5%, 1.0%, or 1.5% authorized. Sales of motor vehicles to resident military personnel are NOT exempt. NEW YORK 4% sales tax rate. Credit is allowed by Florida for tax paid in New York. Credit is allowed by New York for tax paid in Florida. State sales tax plus applicable local tax. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. NEVADA 6.5%, 6.75%, 7%, 7.125%, 7.25%, 7.375%, or 7.75% sales tax rate (depending on county). Credit is allowed by Florida for tax paid in Nevada. Credit is allowed by Nevada for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales ARE exempt (effective January 1, 2006). Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. NORTH CAROLINA No sales tax (on motor vehicles). Credit is allowed by Florida for the highway use tax paid in North Carolina. Credit is allowed by North Carolina for tax paid in Florida. Motor vehicles are subject to a 3% highway use tax. Tax is calculated on sales price of new or used motor vehicle less credit for trade-in. $1,000 maximum tax applies only to vehicles with a gross vehicle weight of over 26,001 lbs. Recreational vehicles are subject to a maximum tax of $1,500 unless the recreational vehicle is over 26,001 lbs., which is subject to $1,000 maximum tax. Sales of motor vehicles to resident military personnel are NOT exempt. NEW HAMPSHIRE No sales tax. No credit is allowed by Florida for tax paid in New Hampshire. No credit is allowed by New Hampshire for tax paid in Florida. No state sales tax; local permit fee. 5 NORTH DAKOTA No sales tax (on motor vehicles). Credit is allowed by Florida for the motor vehicle excise tax paid in North Dakota. Credit is allowed by North Dakota for tax paid in Florida. A motor vehicle excise tax of 5% is imposed on the sales price of new and used motor vehicles less credit for trade-in. Occasional or isolated sales are NOT exempt. NOTE: New mobile homes are subject to 3% sales tax; used mobile homes are not taxed; boats and off-road vehicles are subject to 5% sales tax. Sales of motor vehicles to resident military personnel ARE exempt when the resident military member is stationed outside North Dakota. PENNSYLVANIA continued NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. RHODE ISLAND 7% sales tax rate. Credit is allowed by Florida for tax paid in Rhode Island. Credit is allowed by Rhode Island for tax paid in Florida. Tax calculated on sales price of new or used motor vehicles. Trade-in credit allowance on automobiles only. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. Boats are not subject to tax. OHIO 5.5% sales tax rate. Credit is allowed by Florida for tax paid in Ohio. Credit is allowed by Ohio for tax paid in Florida. Tax is calculated on sales price of new or used motor vehicles. Credit for trade-in allowed only when the motor vehicle is traded to a new motor vehicle dealer for a new motor vehicle. Occasional or isolated sales are NOT exempt. Local taxes authorized. Credit for trade-in allowed on new or used watercraft when another watercraft is given in trade and the seller is registered with the Ohio Department of Natural Resources. Sales of motor vehicles to resident military personnel are NOT exempt. SOUTH CAROLINA 5% sales tax rate ($300 maximum). Credit is allowed by Florida for tax paid in South Carolina. Credit is allowed by South Carolina for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in (maximum $300). Occasional or isolated sales are NOT exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. SOUTH DAKOTA No sales tax (on motor vehicles). Credit is allowed by Florida for the motor vehicle excise tax paid in South Dakota. No credit is allowed by South Dakota for tax paid in Florida. A 3% excise tax is calculated on the sales price of new and used motor vehicles with a credit allowed for trade-in. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. OKLAHOMA No sales tax (on motor vehicles). Credit is allowed by Florida for the motor vehicle excise tax paid in Oklahoma. No credit is allowed by Oklahoma for tax paid in Florida. A 3.25% excise tax is imposed on new motor vehicles on the purchase price. The excise tax on used vehicles is $20.00 on first $1,500.00 of purchase price plus 3.25% of remainder. No credit for trade-in. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. TENNESSEE 7% sales tax rate. Credit is allowed by Florida for tax paid in Tennessee. Credit is allowed by Tennessee for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Local taxes authorized. Mobile homes are taxed at 3.5%. Sales of trucks with maximum gross vehicle weight of 20,000 lbs. or more to common carriers holding common or contract authority by the federal government or other state regulatory agency for use in interstate commerce are exempt. Sales of motor vehicles to qualified military personnel are exempt. OREGON No sales tax. No credit is allowed by Florida for tax paid in Oregon. No credit is allowed by Oregon for tax paid in Florida. No state sales tax; registration fee in lieu of taxes. Fee is by weight for truckers. PENNSYLVANIA 6% sales tax rate. Credit is allowed by Florida for tax paid in Pennsylvania. Credit is allowed by Pennsylvania for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are 6 TEXAS 6.25% sales tax rate. Credit is allowed by Florida for tax paid in Texas. Credit is allowed by Texas for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. WEST VIRGINIA 5% sales tax (on motor vehicles). Credit is allowed by Florida for the tax paid in West Virginia, when the sale was made through a motor vehicle dealer. No credit is allowed by West Virginia for tax paid in Florida. Tax is imposed on the sales price of new and used motor vehicles, when sold by a vehicle dealer. Vehicles not purchased from a registered dealer are taxed on the current NADA loan value. Credit allowed for trade-in only if the vehicle being traded-in has been previously titled in West Virginia in the name of owner who is applying for title. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. UTAH 4.70% sales tax rate (effective January 1, 2009). Credit is allowed by Florida for tax paid in Utah. Credit is allowed by Utah for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. WISCONSIN 5% sales tax rate. Credit is allowed by Florida for tax paid in Wisconsin. Credit is allowed by Wisconsin for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. VERMONT 6% purchase and use tax rate. Credit is allowed by Florida for tax paid in Vermont. Credit is allowed by Vermont for tax paid in Florida. Credit allowed for trade-in. Occasional or isolated sales ARE exempt. Sales of motor vehicles to resident military personnel are NOT exempt. WYOMING VIRGINIA 3% sales tax rate ($35 minimum). Credit is allowed by Florida for tax paid in Virginia. Credit is allowed by Virginia for tax paid in Florida. $35 minimum. No credit for trade-in. (A Virginia resident who purchases a vehicle in Florida will receive credit for the tax paid to Florida, but will owe additional tax to Virginia on the amount of the trade-in.) Occasional or isolated sales are NOT exempt. Trucks, tractor trucks, trailers, or semi-trailers with a gross vehicle weight rating of 26,001 lbs. or more are exempt. Sales of motor vehicles to resident military personnel are NOT exempt. 4% sales tax rate. Credit is allowed by Florida for tax paid in Wyoming. Credit is allowed by Wyoming for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Sales of motor vehicles to resident military personnel are NOT exempt. WASHINGTON 6.8% sales tax rate. Credit is allowed by Florida for tax paid in Washington. Credit is allowed by Washington for tax paid in Florida. Tax calculated on sales price of new or used motor vehicle, less credit for trade-in. Occasional or isolated sales are NOT exempt. Local taxes authorized. Sales of motor vehicles to resident military personnel are NOT exempt. 7 TERRITORIES The full amount of Florida sales tax is imposed on the sales price of each motor vehicle to be exported to territories or foreign countries, when the motor vehicle is delivered to the purchaser or his representative in Florida. Tax does not apply if the motor vehicle is irrevocably committed to the exportation process at the time of sale, and such process is continuous and unbroken. References Sections 212.06(7) and 212.08(10), Florida Statutes. FOR MORE INFORMATION This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance. For forms and other information, visit our Internet site at www.myflorida.com/dor or call Taxpayer Services, 8:00 a.m. to 7:00 p.m., ET, Monday through Friday, excluding holidays, at 800-352-3671. Persons with hearing or speech impairments may call our TDD at 800-367-8331 or 850-922-1115. For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, 5050 W Tennessee St Bldg L, Tallahassee, FL 32399-0112. GUAM, PUERTO RICO The 6% Florida use tax will apply and be due on motor vehicles imported or caused to be imported from the territories of Guam and Puerto Rico for use, consumption, distribution, or storage to be used or consumed in Florida within 6 months from the date of purchase. The Florida use tax does not apply if a like tax equal to or greater than the amount levied by Florida law has been lawfully imposed and paid in those territories. However, it shall be presumed that a motor vehicle used in the territories of Guam or Puerto Rico for 6 months or longer before being imported into Florida was not purchased for use in Florida. AMERICAN SAMOA, VIRGIN ISLANDS The 6% Florida use tax will apply and be due on motor vehicles imported or caused to be imported from the territories of American Samoa and the Virgin Islands for use, consumption, distribution, or storage to be used or consumed in Florida. However, it shall be presumed that motor vehicles used in American Samoa or the Virgin Islands for 6 months or longer before being imported into Florida were not purchased for use in Florida. FOREIGN COUNTRIES 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 Florida for use, consumption, distribution, or storage to be used or consumed in Florida. It does not matter if the 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 when calculating the tax due. The tax is calculated on the value of the vehicle at the time it is brought into Florida, not on the original purchase price. 8 Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State DR-123 R. 02/09 AFFIDAVIT State of Florida, County of ________________________________________ Before me, the undersigned Notary Public, personally appeared _____________________________________________________________ , Who, being duly sworn, says that he/she is a resident of the State of ___________________________________and that he/she is the purchaser of the following described motor vehicle. Name of Purchaser ____________________________________________________________________________________________________ State of Residence and Address of Purchaser __________________________________________________________________________________________________ (Street) (City) (State) (ZIP) If the non-resident purchaser is a corporation or partnership, an officer or partner must acknowledge the following in order to be allowed the partial exemption: ❑ The vehicle will be removed from this state within 45 days of purchase and will remain outside this state for a minimum of 180 days. OR If the vehicle is not removed from this state, an officer or partner in the non-resident corporation or partnership must certify the following: ❑ There is no officer that is a resident of this state. ❑ There is no stockholder who owns at least 10% of the corporation that is a resident of this state. ❑ There is no partner in the partnership who has at least 10 percent ownership of the partnership that is a resident of this state. Name of Seller ________________________________________________________________________________________________________ Address of Seller ______________________________________________________________________________________________________ (Street) (City) (State) (ZIP) Seller’s Sales Tax Registration Number ___________________________________________________________________________________ Date of Sale _____________________________________ Description of Motor Vehicle: Make ___________________________________________Model __________________________________________Year __________________ Vehicle Identification Number _______________________________________ Motor Number ______________________________________ Sales Price________________________________________________________ Trade-In Allowance __________________________________ Sales Tax Paid to the STATE OF FLORIDA $ _______________________________________ I, ___________ understand that I may owe sales tax to the State of _______________________________; (Purchaser's Initials) (Purchaser's state - Do Not Abbreviate) • if the state, in which the vehicle is being registered/licensed, does not allow a credit for sales tax paid to the State of Florida; or • if that state imposes a rate higher than 6 percent. I also understand; • sales tax is being paid to Florida and not to any other state; and • I may request a copy of the "Motor Vehicle Sales Tax Rates by State" from the above motor vehicle dealer or the Florida Department of Revenue. This vehicle will be licensed in the State of ___________________________ within forty-five (45) days after the date it was purchased in the State of Florida. Sworn to (or affirmed) and subscribed before me this _____________ day of __________, A.D., _________. (Day of Month) (Month) (Year) ______________________________________________ (Signature of Nonresident Purchaser) Personally Known _________________________ Or Produced Identification _________________________ Type of Identification Produced _________________________ ___________________________________________ (Signature of Notary) Exhibit 8 ______________________________________________________ Print, Type or Stamp Name of Notary Sales and Use Tax Direct Pay Permit Issued Pursuant to Chapter 212, Florida Statutes DR-16P R. 01/05 Permit Number Effective Date Expiration Date Self-Accrual Authority Type The entity named below has met the requirements for self-accrual authority as indicated above. Business Partner #: This permit authorizes the holder to self-accrue the sales tax due as defined in Chapter 212, Florida Statutes, and described below. Authorized Uses of the Direct Pay Permit Apportionment (APP) The apportionment of tax by eligible air carriers for the purchase or use of tangible personal property, as provided in section 212.0598, F.S. The partial exemption applicable to vessels and parts thereof used in interstate or foreign commerce for the purchase of vessels and parts thereof, as provided in s. 212.08(8), F.S., and Rule 12A-1.064, Florida Administrative Code. The partial exemption applicable to railroads and parts thereof used in interstate or foreign commerce by licensed railroad carriers for purchases of tangible personal property, as provided in s. 212.08(9)(a), F.S., and Rule 12A-1.064, F.A.C. The partial exemption applicable to motor vehicles and parts thereof used in interstate or foreign commerce by licensed common carriers, as provided in s. 212.08(9)(b), F.S., and Rule 12A-1.064, F.A.C. Purchases of Tangible Personal Property (TPP) The lease or 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. The lease or 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, when the taxable status of such property will be known only upon its use. The taxable status of the property will be known upon its use when the dealer’s normal trade or business characteristics require the dealer to purchase tangible personal property that will either become a component part of a product manufactured for sale or will be used and consumed by the dealer. * There is no prohibition against the holder of the permit for use in the purchase of taxable services. Promotional Materials (PRO) The purchase of promotional materials, as defined in s. 212.06(11)(b), F.S., by dealers who are unable to determine at the time of purchase whether the promotional materials will be used in this state or exported from this state only when the seller of 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 promotional materials and the seller of the promoted subscriptions to publications are not required to be the same person. Real Property Leases (RPL) The lease or license to use real property subject to tax under s. 212.031, F.S., by dealers who are required to remit sales tax electronically, as provided under s. 213.755, F.S., from a number of independent owners or lessors of real property. The lease of or license to use real property subject to the tax imposed by s. 212.031, F.S., by a dealer who leases or obtains licenses to use real property from a number of independent property owners who, except for the lease or license to the dealer, would not be required to register as dealers engaged in the business of leasing real property. The lease or license to use real property subject to the tax imposed by s. 212.031, F.S., by operators of amusement machines or vending machines who lease or obtain licenses to use real property from property owners or lessors for the purpose of placing and operating an amusement or vending machine. Exhibit 9 General Information for All Direct Pay Permit Holders 1. Each permit holder must hold a valid dealer’s Sales and Use Tax Certificate of Registration (Form DR-11 or DR-11U). Upon cancellation of registration, this permit must be canceled and surrendered. 2. Permit holders must provide a copy of this permit to all dealers of tangible personal property and services, in order to relieve the selling dealer from the responsibility of collecting tax. 3. Permit holders are required to file tax returns according to their filing frequency and pay to the Department the amount of sales and use tax due on transactions for which this permit was extended. 4. Each direct pay permit holder must file a return even if no tax is due. 5. Recordkeeping requirements: a. Every holder of a Sales and Use Tax Direct Pay Permit is required to keep and preserve all information and documentation necessary to substantiate the holder’s authorization for the permit. The holder is also required to document payment of all tax due on its purchases of tangible personal property and services until such time as the taxes imposed and administered by Chapter 212, F.S., may no longer be determined and assessed under s. 95.091(3), F.S. b. A dealer of tangible personal property and services is not required to collect sales and use tax, as identified on the direct pay permit, on sales made to the permit holder. The dealer shall retain a copy of the permit in its records until such time as the taxes imposed and administered by Chapter 212, F.S., may no longer be determined and assessed under s. 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. 6. Reporting requirements: Every holder of a Sales and Use Tax Direct Pay Permit shall file with the Department, by September 30 of each year, a report showing the amount of total purchases by county for the period of September 1 through August 31, and the amount of use tax self-accrued on such purchases by county. This report should be mailed to Central Registration, Florida Department of Revenue, P.O. Box 6480, Tallahassee FL 32314-6480. 7. This permit expires five years from the effective date. The Department will provide a renewal notice to the permit holder 60 days prior to the expiration date of the permit. A person who does not receive a renewal notice or needs more information regarding the notice may contact Central Registration, Florida Department of Revenue, P.O. Box 6480, Tallahassee FL 32314-6480. In the event that the original Sales And Use Tax Direct Pay Permit is lost or destroyed, the permit holder may obtain a replacement by visiting any local Department of Revenue service center or calling the Department at 800-352-3671 (in Florida only) or 850-488-6800. Persons with hearing or speech impairments may call the Department’s TDD line at 800-367-8331 or 850-922-1115. Send written requests to Central Registration, Florida Department of Revenue, P.O. Box 6480, Tallahassee FL 32314-6480. Suggested Format for Affidavit for Exemption of Boat Sold for Removal from the State of Florida by a Nonresident Purchaser GT-500003 R. 12/01 The following is a suggested format for an affidavit to be completed by the purchaser and furnished to the selling dealer. In order to satisfy the requirements for exemption, the affidavit must contain all of this information and be completed in full. STATE OF__________________COUNTY OF __________________________ *** READ CAREFULLY BEFORE SIGNING *** Before me this day personally appeared the below named affiant who, being duly sworn, deposes and says: 1. 2. 3. 4. 5. I have read the Florida Department of Revenue Rule 12A-1.007(9), Florida Administrative Code, and § 212.05, Florida Statutes (F.S.); and 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 designated below; and I am not engaged in Florida in any employment, trade, business, or profession for which the designated boat will be used in Florida; and I represent a corporation which has no officer or director who is a resident of, or makes his or her permanent place of abode in Florida; and 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; and Within 30 days of the date of departure from Florida of the herein described boat, I agree to furnish the Florida Department of Revenue with written proof that this vessel was licensed, titled, registered or documented outside Florida; and Within 10 days of the date of departure of the herein described vessel, I agree to furnish the Florida Department of Revenue with invoices for fuel, dockage charges, or repairs issued by out-of-state vendors or suppliers or other documentary evidence which specifically identifies this boat, including the hull ID number; and I claim exemption under § 212.05(1)(a)2., F.S., from Florida sales and use tax on the purchase of the boat designated below for the following reason: Boat herein identified and described is 5 net tons of admeasurement or larger and I plan to have the boat in Florida for a period up to 90 days from the date of purchase. I hereby agree to purchase from the selling dealer, at the time of sale, a decal issued by the Florida Department of Revenue authorizing the boat to remain in Florida up to 90 days following the date of sale. I further agree to remove the boat from Florida within the 90 day period authorized by the decal and understand that the 90 day period may not be tolled for any reason including repairs. Boat will be removed by me or by my designated agent from the State of Florida within 10 days of the date of purchase. Boat is to be repaired or altered and will be removed from the State of Florida by me or by my designated agent within 20 days (excluding tolled days) after completion of the repairs or alterations consistent with § 212.05, F.S. 6. 7. 8. PLEASE TYPE OR PRINT THE FOLLOWING INFORMATION: Name of Purchaser _________________________________________________________________ SSN: __________________ If Purchaser is a Corporation or Partnership, List Officers or Partners______________________________________________ ___________________________________________________________________________________ T.I.N. __________________ Purchaser’s Permanent Address (Street) _______________________________________________________________________ (City) _____________________________________________ (State/Country) __________________ (ZIP) ___________________ Purchaser’s Daytime Telephone Number ( ___) ___________________ D.O.B. ________________________________________ Purchaser’s Driver’s License Number and State of Issuance ______________________________________________________ Purchaser’s Passport or Visa Number _________________________________________________________________________ Name of Selling Dealer ______________________________________________________________________________________ Address of Selling Dealer (Street) _____________________________________________________________________________ (City) _____________________________________________ (State/Country) __________________ (ZIP) ___________________ Selling Dealer’s Florida Sales and Use Tax Registration Number __________________________________________________ Dealer’s Telephone Number ( ____) _____________________ Date of Sale (Month) ______________ (Day) __________ (Year) _________________ Exhibit 10 DESCRIPTION OF BOAT Make _________________________ Model _____________________ Year __________________________ Hull Number ___________________________________________ New Used Name of Vessel (New) ____________________________________ (Ex) ______________________________________________ State/County Registration and/or Coast Guard Documentation Number ___________________________________________ Sales Price_______________________________________ Trade-In Allowance ________________________________________ Net Amount Paid _____________________________________ Ninety Day Decal Number, if applicable (Affix Here): _____________________________________________________________ Primary Location of the Vessel Prior to Removal: _______________________________________________________________ ___________________________________________________________________________________________________________ Under the 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. I understand that if I fail to comply with the requirements of this affidavit I will be liable for payment of the tax and a mandatory penalty equal to the tax. I further understand that if I purchase a decal and remove or alter it, or cause or allow another person to do the same, then I will be subject to payment of the tax plus a 200 percent penalty. I further understand that I may be subject to imprisonment of up to 1 year and a fine of up to $1000.00. ________________________________ Signature of Affiant (Purchaser) Sworn to (or affirmed) and subscribed before me this day of_______________, __________. Signature of Notary Print, Type or Stamp Name of Notary Personally known Produced identification Type of Identification: ______________________________ Original and copy of invoice, bill of sale or closing statement must be submitted within five (5) days of the date of sale to the Florida Department of Revenue, Central Compliance and Enforcement, Boat Enforcement Unit, P.O. Box 6417, Tallahassee, Florida 32314-6417. 1st copy: To be retained by the dealer and made part of the dealer’s records 2nd copy: Purchaser’s copy Dealer’s Notice: Affidavits not filed within five (5) days of the date of sale or closing will not be accepted by the Florida Department of Revenue. Ownership Declaration and Sales and Use Tax Report of Vessel Purchase DR-42B R. 07/02 Name of vessel Name of purchaser Address Year Make Model USCG documentation or state reg. no. Daytime telephone number (include area code) State ZIP Florida sales tax registration number City The vessel described above was purchased from (Name of seller, dealer, or broker) Address City State ZIP Delivery was accepted at_________________________________________________on the________ day of __________________ 20________. Name of marina, boat yard, etc. Address Present location of vessel Address City State ZIP City State ZIP Indicate the total purchase price, including any unpaid balance due seller, bank, or finance company. Include the total consideration valued in money, whether paid in money or otherwise. Total purchase price .......................................................................... Less: Trade-in (if applicable) .................................................. Net purchase price ............................................................................ Florida tax due (6%) .......................................................................... Florida discretionary sales surtax ..................................................... Less: Florida tax paid (attach copy of receipt) ...................... Less: Taxes lawfully imposed and paid to another state ....... (attach copy of receipt) Balance due ..................................................................................... Penalty (10% per month, up to 50%) ................................................ Interest .............................................................................................. TOTAL DUE $ _______________________________________________________ $ _______________________________________________________ $ _______________________________________________________ $ _______________________________________________________ $ _______________________________________________________ $ _______________________________________________________ $ _______________________________________________________ $ _______________________________________________________ $ _______________________________________________________ $ _______________________________________________________ $ _______________________________________________________ I hereby affirm under penalty of perjury that all of the above statements are true and correct to the best of my knowledge and belief. Sworn and subscribed to before me this______________day of____________, 20________ _________________________________________________ Notary Public _________________________________________________ Signature of purchaser _________________________________________________ Date THIS DOCUMENT MUST BE RETURNED TO THE DEPARTMENT OF REVENUE WITHIN 15 DAYS FROM RECEIPT. A COPY OF THE BILL OF SALE AND OTHER DOCUMENTATION WHICH EVIDENCES OWNERSHIP AND ACTUAL SELLING PRICE MUST BE ATTACHED. _________________________________________________ Date RETURN TO: ENFORCEMENT OPERATIONS DEPARTMENT OF REVENUE POST OFFICE BOX 6417 TALLAHASSEE, FLORIDA 32314-6417 Exhibit 11 Exhibit 12