Florida Government Finance Officers Association Rolinda Smoak Tax - - PowerPoint PPT Presentation

Florida Government Finance Officers Association

Rolinda Smoak

Tax Specialist II

Topics

• Sales tax overview
• Discretionary sales surtax
• Sales or rental of tangible personal property
• Rental of real property
• Completing the DR-15
• Where to find information

Sales and Use Tax is imposed on:

• Sales of tangible personal property
• Rental of real property
• Commercial
• Parking, docking, aircraft tiedown
• Admissions
• Certain services
• Service warranties
• Amusement/food and beverage vending

machines

Discretionary Sales Surtax

Tax Rate – Discretionary Sales Surtax

In addition to the state sales and use tax rate, Florida counties may impose a discretionary sales surtax. Discretionary sales surtax:

• Rates vary from county to county
• Collected along with the state sales tax
• Sent to the Department of Revenue with sales tax

Discretionary sales surtax applies to the first $5,000 of the sales amount on the sale of tangible personal property.

Florida Discretionary Sales Surtax

DR-15DSS

Located online Forms and Publications

floridarevenue.com

Sale or Rental of Tangible Personal Property

Florida

Nontaxable Medical Items and General Grocery List

DR-46NT

Located online Forms and Publications

floridarevenue.com

Vending Machines

Sales and Use Tax Rate Food and Beverage Divisor Other Vended Items Divisor 6.0% 1.0645 1.0659 6.5% 1.0686 1.0707 7.0% 1.0726 1.0749 7.5% 1.0767 1.0791 8.0% 1.0808 1.0833 8.5% 1.0849 1.0875

Sales tax at a state rate of 6%, plus any applicable discretionary sales surtax, is due on food, beverages, tobacco, and other items sold through vending machines.

To calculate the sales tax plus any applicable surtax:

• 1. Divide the total receipts from sales made through the

vending machines by the tax rate divisor for the county in which the machines are located to compute gross sales.

• 2. Subtract exempt sales made through the vending

machines (if any) from the gross sales to compute taxable sales.

• 3. Subtract taxable sales from the total receipts to

compute the amount of sales tax and surtax due.

Vending Machines

Example

Total receipts from a soft drink machine in a county with a combined sales and surtax rate of 7.5% total $100.

• 1. $100 ÷ 1.0767 = $92.88

(gross sales)

• 2. $100 - $92.88 = $7.12

(tax due, including surtax due)

• 3. $92.88 x .015 = $1.39

[surtax portion to be reported on Line 15(d)]

Sales/Surtax Rate Divisor 6.0% 1.0645 6.5% 1.0686 7.0% 1.0726 7.5% 1.0767 8.0% 1.0808 8.5% 1.0849

Vending Machines

Florida

Sales and Use Tax on Vending Machines

GT-800041

Located online Forms and Publications

floridarevenue.com

Tax Rate – Bracket System

“Bracket system” is used for collecting sales tax. There is a bracket system for each tax rate - Common Sales Tax Brackets (Form DR-2X). The bracket will apply to the sales price for each transaction. Multiple items sold together are one transaction. Multiple admissions – each admission is a separate transaction.

Florida

DR-2X

Located online Forms and Publications

floridarevenue.com

Tax Rate – Bracket System

Example 1

Based on 6% rate

One Individual Transaction Tax Collected Total Sale $11.00 Total Tax Due .66 One taxable transaction at $11.00 total sale. Total tax collected equals 66 cents. The total tax collected (66 cents) is due.

Tax Rate – Bracket System

Example 2

Bracket system at a 6% rate Amount of Sale Tax 1.10 - 1.16 .07 1.17 - 1.33 .08 1.34 - 1.50 .09 1.51 - 1.66 .10 1.67 - 1.83 .11 1.84 – 2.09 .12

A customer purchases an item for $1.55. Using the bracket system $0.10 should be charged. Calculated: $1.55 x .06 = 0.093 Rounded to the nearest cent = $0.09 $0.09 / $1.55 = 0.0580 or 5.80% 5.80% < 6%

Rental of Real Property

Rental of Real Property - Overview

Florida imposes a tax on the lease or rental of commercial real property. Examples of commercial real property include:

• Office or retail space
• Warehouses
• Convention or meeting rooms
• Mini-warehouses

Rental of Real Property - Overview

What is Taxable If the tenant makes payments such as:

• Mortgage,
• Ad valorem taxes,
• Common area maintenance charges, or
• Insurance paid on behalf of the landlord

These payments are included in the total amount of rent paid and are subject to sales tax and discretionary sales surtax.

Florida

Technical Assistance Advisement Fuel Flowage Fee

TAA 13A-013

Located online Forms and Publications

floridarevenue.com

Rental of Real Property – 5.7%

Commercial Rentals under Section 212.031, F.S.

The tax is 5.7% plus discretionary sales surtax (DSS). The tax rate will be reduced to 5.5% effective 1/1/20.

Note: $5,000 limitation for DSS does not apply to commercial rent.

Florida

Sales and Use Tax on the Rental, Lease, or License to Use Commercial Real Property

GT-800016

Located online Forms and Publications

floridarevenue.com

Rental of Real Property – 6%

What’s not affected - Rentals under Section 212.03, F.S.

• Transient rentals
• Parking or storage space for motor vehicles in parking

lots or garages.

• Docking or storage space for boats in boat docks or

marinas.

• Tie down or storage space for aircraft at airports.

The tax rate is 6% plus discretionary sales surtax.

Florida

Sales and Use Tax on Parking Lots, Boat Docks and Aircraft Hangars

GT-800031

Located online Forms and Publications

floridarevenue.com

Rental of Living or Sleeping Accommodations (Transient Rentals)

Transient Rentals

Examples

• Hotel and motel rooms
• Condominium units
• Timeshare resort units
• Single-family homes
• Apartments or units in

multiple unit structures

• Mobile homes
• Beach or vacation

houses

• Campground sites
• Trailer or RV parks

Transient Rentals

What is Taxable Tax applies to rental charges or room rates paid for the right to use or occupy living quarters or sleeping or housekeeping accommodations for rental periods six months or less.

• Sales and use tax
• Discretionary sales surtax
• County local option

Florida

DR-15TDT

Located online Forms and Publications

floridarevenue.com

Local Option Transient Rental Taxes

Florida

Reporting Commercial Rentals

• A. Commercial Rentals subject to 6% (parking, docking, aircraft tie down charges)
• C. Commercial Rentals subject to 5.7% (rental of office space, meeting rooms,

and warehouses)

Florida

Back of DR-15

Florida

1. Click on GENERAL TAX 2. Select Tax Information

• Sales and Use Tax

floridarevenue.com

Florida

Resources

• Industry Specific

Brochures

• Revenue Law

Library

• Tax Information

Publications

floridarevenue.com

Florida

Nonprofit Organizations and Sales and Use Tax

Florida

Information for Businesses and Employers

QUESTIONS

For more information visit floridarevenue.com

• r call

850-488-6800