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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).


The Florida Department of Revenue will develop and implement an amnesty program for taxpayers subject to various state and local taxes, including, corporate income, sales and use, severance, estate, and intangible personal property taxes. The program will run from July 1, 2010 to September 30, 2010. Eligible taxpayers must file the forms and other documentation specified by the Department of Revenue, including returns, full payment of tax due, interest, and the administrative collection processing fee. The amnesty program is a one-time opportunity for eligible taxpayers to satisfy their tax liabilities and avoid criminal prosecution, penalties, and in some cases, interest due. Any taxpayer which has entered into a settlement of liability for state or local option taxes before July 1, 2010, whether or not full and complete payment of the settlement amount has been made, is not eligible to participate in the amnesty program. However, taxpayers who may be under audit, inquiry, examination, or civil investigation initiated by the department may participate in the program and pay the full amount of the tax due, plus 75 percent of the interest. Taxpayers who make initial contact with the Department pursuant to the amnesty program will pay the full amount of the tax due and 50 percent of the amount of interest due. Additional rules and regulations may apply. (Ch. 2010-166 (H.B. 5801), Laws 2010, effective May 28, 2010)


An aircraft that was purchased and repaired in California more than six months to its use in Florida will be subject to Florida use tax because the taxpayer purchased the aircraft with the intent to base and use the aircraft in Florida. The taxpayer stated that the aircraft should be exempt from use tax because Florida law provides that an aircraft purchased outside the state and used in another state for six months or more prior to the time it is brought into Florida is presumed to be exempt as purchased for use outside of Florida. However, the taxpayer had indicated that the aircraft was intended to be used in Florida at the time of purchase, including that the aircraft would be flown to and be based in Florida following the repair and restoration work to render the aircraft serviceable. Any presumption that the aircraft was purchased for use outside Florida was rebutted with the taxpayer’s stated intent to base the aircraft in Florida following the repair and restoration work. (Technical Assistance Advisement, No. 10A-006, Florida Department of Revenue, February 10, 2010, released May 2010)


Florida bill numbers do not carry over from one session to another, so any bills that did not pass are considered dead. Legislation that would have brought Florida into conformity with the Streamlined Sales and Use Tax (SST) Agreement effective January 1, 2011, died on April 30, 2010. H.B. 165 was prefiled October 1, 2009, and S.B. 204 was prefiled October 5, 2009. It is not clear when (or if) the legislation will be introduced in a future session. (H.B. 165 and S.B. 204, died upon adjournment of the Florida Legislature on April 30, 2010)



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