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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)

(06/07/2010)

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)

(05/28/2010)

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)

(05/18/2010)

When a taxpayer sells a sign for delivery or customer pick-up, but is not responsible for the installation of the sign, the sale constitutes a taxable sale of tangible personal property. The taxpayer should collect tax or an exemption certificate from the customer. The taxpayer does not owe use tax on the fabricated cost of the sign because materials and labor are considered to be purchased for incorporation into the sign for resale. When the taxpayer is responsible for the installation of the sign, either through employees or subcontractors, the taxpayer is the ultimate consumer of the materials incorporated into the sign and only owes use tax on the fabricated cost of the sign. In this situation, sales tax should not be charged to or collected from the customer. (Technical Assistance Advisement, No. 10A-001, Florida Department of Revenue, February 23, 2010)

(05/05/2010)

A truck rental business’ commission payments to dealers who rented trucks and equipment to customers were found to be not subject to Florida sales tax because the taxpayer did not have use, access, or control over the dealer’s real property, the dealer had sole discretion as to where to locate the trucks and equipment, the trucks and equipment did not reside on a set amount of space, and the taxpayer did not have a right to enter the dealer’s locations to reclaim property. Further, although the commission payments are made up of a variety of factors (such as safety, maintenance, customer complaints, etc), the payments are essentially tied to the amount of the time the trucks and equipment are rented out by the dealer and not located on the dealer’s property; if the trucks and equipment do not leave the dealer’s location, the dealer will not receive a commission. Because of these factors, the taxpayer was found to not be leasing or being granted a license for the use of the dealer’s real property, and therefore its payments to the dealer are not subject to sales tax. (Technical Assistance Advisement, No. 10A-005, Florida Department of Revenue, February 10, 2010)

(04/09/2010)

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