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Books, clothing, footwear under $50. School supplies less than $10. Does not apply to goods sold in theme parks, entertainment complexes, public lodging establishments or airports. See Details


In a Technical Assistance Advisement, the Florida Department of Revenue responded to a taxpayer’s question pertaining to taxability of consulting services that were sold along with a software license. The Department of Revenue found that the sale of the software qualified as a retail sale. The Florida definition of “sales price” specifically includes services that are part of the sale. Since the consulting services are included in the initial contract for the sale of the software, even separate billing for the services will not render the consulting services exempt. (Technical Assistance Advisement No. 04A-069, Florida Department of Revenue, Dec. 21, 2004)


The State of Florida issued a Technical Assistance Advisement that found that purchases of machinery and equipment for use in a contract between a city and a contractor to construct exempt electricity generating units are exempt from state sales tax. The exemption applies only to materials and equipment that are permanently installed in the generating units and are integral to the production of electricity. The rental of any construction equipment will remain taxable. The City must present the contractor with an affidavit. To claim the exemption, contractors must present an affidavit to vendors at the time of sale. A sample affidavit is attached to the Technical Assistance Advisement. (Technical Assistance Advisement No. 05A-017, Florida Department of Revenue, March 23, 2005)


A sales tax and local options sales tax holiday is scheduled in Florida for the first twelve days of the 2005 hurricane season. Beginning June 1, 2005 and running through June 12, 2005 supplies related to hurricane-preparedness, such as battery-powered flashlights, tarpaulins, and ground anchor systems, can be purchased exempt from tax. The Florida Department of Revenue has released a tax information publication entitled Holiday Preparedness Sales Tax Holiday, which lists specific items that qualify for the exemption. These items are listed with a corresponding sales price limit. For example, only those tie-down kits selling for $50 or less will qualify for the exemption. Items typically sold as a packaged unit cannot be separated in order to meet the dollar limits of the exemption, nor can the price of items sold “buy one, get one free” be averaged together so that both items qualify. Transactions that involve the leasing of qualified items are not eligible for the exemption. For further information please visit: (TIP 05A01-01, Florida Department of Revenue, issued May 10, 2005)


A Florida Taxpayer who purchased materials for fabrication into various functional shapes that are then permanently installed into real property was required to collect tax on the sale of the finished product. The sale constituted a sale of tangible personal property at retail. The taxpayer was also responsible for tax on the cost of materials it fabricates and installs in conjunction with a real property improvement contract. (Technical Assistance Advisement, No. 05A-003, Florida Department of Revenue, January 12, 2005)



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