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The sale of steerable guide catheters and clip delivery systems is exempt from Florida sales and use tax as they are prescribed medical devices used in the treatment of injury, disease, or incapacity of a patient that are temporarily or permanently incorporated into a patient by a licensed medical practitioner. Medical devices are defined as items that are intended or designed to be used for a medical purpose to treat, prevent, or diagnose human disease, illness or injury. Sales of medical devices are exempt from Florida sales tax when sold pursuant to a written prescription from a qualifying medical practitioner. (Technical Assistance Advisement, No. 10A-036, Florida Department of Revenue, August 4, 2010)


The Florida Department of Revenue has issued a technical assistance advisement clarifying the taxability of payments on rentals of equipment from Florida dealers that are removed from the state. Rental payments made after equipment has been removed from Florida are not subject to sales and use tax. Rental payments made to the dealer prior to removing the equipment from Florida are subject to sales and use tax. In the former situation, the taxpayer’s rental of items is exempt from Florida sales and use tax provided that they furnish the Florida dealer with a signed certificate identifying the items and the date that the items were removed or will be removed from Florida. The Department of Revenue has provided a suggested format for the certificate. (Technical Assistance Advisement, No. 11A-003, Florida Department of Revenue, February 1, 2011)


The Florida Department of Revenue has issued guidance concerning contracts to sell and install countertops and cabinets. Contracts to sell and install countertops, kitchen cabinets and knobs are considered real property contracts. As a result, contractors entering into such a contract should not charge Florida sales tax to the customer. Instead, contractors owe use tax on the fabricated cost of those items. The aforementioned items are classified as improvements to real property once they are installed, thus contractors selling and installing them are making improvements to real property regardless of whether the contractor separates on the invoice charges for materials and labor. However, if the contract is a retail sale plus installation then sales tax should be charged to the customer. If a taxpayer has previously paid sales tax to a contractor on a real property contract, they must secure a tax refund from the contractor and not from the Florida Department of Revenue. Any refund of tax to the contractor from the Department of Revenue will be offset by the use tax it owes on the fabricated cost of the items if it hasn’t already been paid. (Technical Assistance Advisement, No. 10A-042, Florida Department of Revenue, August 17, 2010)


The Florida Department of Revenue has offered clarification on this year’s sales tax holiday, taking place from August 13 through August 15, 2010. New and used books with a selling price of $50 or less qualify for the sales tax exemption. Newspapers, magazines, periodicals and audio books do not qualify for the tax exemption. Other items that qualify for the exemption are clothing, footwear and accessories (with a cap of $50 per item) and certain school supplies (with a cap of $10 per item). In all cases, if the item price exceeds the exemption cap the entire amount is taxable not just the excess. In addition, if an exempt item is bundled and sold with a taxable item, the entire amount is taxable. (2010 Sales Tax Holiday Frequently Asked Questions and Answers, Florida Department of Revenue, August 1, 2010). (08/10)


The Florida Department of Revenue has issued detailed information concerning the tax amnesty program running from July 1, 2010 to September 30, 2010. Tax amnesty applies to state and local option tax liabilities that were due before July 1, 2010. Penalties and 50% of interest due will be waived for taxpayers who are reporting a tax liability previously unknown to the Department or who are responding to a Letter of Inquiry, self-audit or self-analysis. Penalties and 25% of interest due will be waived for taxpayers who are responding to a bill, delinquency, audit, or other assessment issued by the Department. Eligible taxes include, but are not limited to, sales and use tax, communications services tax, estate tax, and motor fuel tax. A complete list of eligible and non-eligible taxes, along with participant eligibility requirements can be found on the Florida Department of Revenue’s website (Facts About Florida’s Tax Amnesty, Florida Department of Revenue, June 11, 2010).



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