Installation of Door Locks are Florida Real Property Improvements

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)

Posted on March 30, 2008