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The Florida Department of Revenue has issued a Technical Assistance Advisement clarifying that the replacement and re-keying of door locks are properly classified as improvements to real property for sales and use tax purposes. An invoice that separately states the items and services purchased as well as the tax constitutes a time and materials contract. Sales tax should not be charged as a separate line item in any amount on the contract. Instead, the contractor should have accrued tax on its purchases of the materials that it used and installed in the performance of the contract. The tax should have been included in the contract price, rather than separately-stated. (Technical Assistance Advisement, No. 07A-045, Florida Department of Revenue)

(03/30/2008)

Florida sales tax and local discretionary sales surtax may be avoided on certain charges for the delivery, inspection, placement, or removal of packaging or shipping materials of furniture, appliances, or similar items by the seller at the location of the buyer. In order for the charges to be exempt, they must be separately-stated and avoidable at the option of the purchaser. The Tax Information Publication defines “option of the purchaser” to mean that the purchaser has the option to pick up the appliance or furniture from the dealer, have someone pick it up on his/her behalf, or instruct the seller to make the delivery of the appliance or furniture. However, if any charge for the above transaction includes the modification, assembly, or construction of such furniture or appliances, then all of the charges are taxable. The sales price of the appliances and furniture remain subject to sales tax and surtax even when the separate charges for delivery qualify for exemption. (Tax Information Publication, NO. 07A01-09, Florida Department of Revenue)

(03/30/2008)

According to Florida Statute Section 212.08(7)(W), inserts sold as a component of newspapers are not subject to sales tax. To satisfy the requirements, the inserts must be printed by the publisher as part of the newspaper or delivered directly to the publisher by any other printer for inclusion in a distributed newspaper and labeled as part of the designated newspaper to which they were inserted. (Technical Assistance Advisement, No. 07A-033, Florida Department of Revenue, October 5, 2007)

(01/04/2008)

A Technical Assistance Advisement (TAA) was issued concerning Florida sales tax stating that a Florida dealer must collect and remit Florida sales tax on the sale of tangible personal property to a nonresident customer when the property is shipped to another Florida dealer who uses the property to manufacture a finished product. Generally, all sales of tangible personal property in Florida are subject to sales tax, unless specifically exempt by Chapter 212, F.S. Section 212.06(5). (Technical Assistance Advisement, No. 07A-018, Florida Department of Revenue, June 18, 2007)

(01/04/2008)

A project being conducted at a company qualified for the expanding business exemption from Florida sales/use tax. The Company met the requirements for the exemption, including submission of an Application for Temporary Tax Exemption and providing proof that the output of products produced at the facility increased by at least 10%. In meeting the 10% increase threshold, output from another of the Company’s facilities was not included since it operated independently and no work in process was transferred from one facility to the other. (Technical Assistance Advisement, No. 07A-003, Florida Department of Revenue, February 27, 2007)

(07/05/2007)

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