Florida Administrative Code › 12 - DEPARTMENT OF REVENUE › 12A - Sales and Use Tax › Chapter 12A-1 - SALES AND USE TAX › Section 12A-1.094 - Public Works Contracts

Current through Reg. 50, No. 138; July 16, 2024
(1) This rule shall
				govern the taxability of transactions in which contractors manufacture or
				purchase supplies and materials for use in public works contracts, as that term
				is referred to in Section
				212.08(6), F.S.
				This rule shall not apply to non-public works contracts for the repair,
				alteration, improvement, or construction of real property, as those contracts
				are governed under the provisions of Rule
				12A-1.051, F.A.C. In applying
				this rule, the following definitions are used.
(a)
1.
				"Contractor" is one that supplies and installs tangible personal property that
				is incorporated into or becomes a part of a public facility pursuant to a
				public works contract with a governmental entity exercising its authority in
				regard to the public property or facility. Contractors include, but are not
				limited to, persons engaged in building, electrical, plumbing, heating,
				painting, decorating, ventilating, paperhanging, sheet metal, roofing, bridge,
				road, waterworks, landscape, pier, or billboard work. This definition includes
				subcontractors.
2. "Contractor"
				does not include a person that furnishes tangible personal property that is not
				affixed or appended in such a manner that it is incorporated into or becomes a
				part of the public property or public facility to which a public works contract
				relates. A person that provides and installs tangible personal property that is
				freestanding and can be relocated with no tools, equipment, or need for
				adaptation for use elsewhere is not a contractor within the scope of this
				rule.
3. "Contractor" does not
				include a person that provides tangible personal property that will be
				incorporated into or become part of a public facility if such property will be
				installed by another party.
4.
				Examples.
a. A vendor sells a desk, sofas,
				chairs, tables, lamps, and art prints for the reception area in a new public
				building. The sales agreement requires the vendor to place the furniture
				according to a floor plan, set up the lamps, and hang the art prints. The
				vendor is not a contractor within the scope of this rule, because the vendor is
				not installing the property being sold in such a way that it is attached or
				affixed to the facility.
b. A
				security system vendor furnishes and installs low voltage wiring behind the
				walls, motion detectors, smoke alarms, other sensors, control pads, alarm
				sirens, and other components of a security system for a new county courthouse.
				The components are direct wired, fit into recesses cut into the walls or other
				structural elements of the building, and are held in place by screws. The
				vendor is a contractor within the scope of this rule. The security system is
				installed and affixed in such a manner that it has been incorporated into the
				courthouse.
c. A vendor enters an
				agreement to provide and install the shelving system for a new public library.
				The shelves are built to bear the weight of books. The shelf configuration in
				each unit maximizes the number of books the shelves can hold. The number and
				size of the units ordered is based on the design for the library space. The
				units will run floor to ceiling and will be anchored in place by bolts or
				screws. The vendor is a contractor within the scope of this rule. The shelving
				system will be affixed in such a manner that it becomes a part of the public
				library.
d. A vendor agrees to
				provide and install the computer terminals, monitors, keyboards, servers, and
				related equipment for a county tax collector's office in central Florida. The
				job includes connecting the equipment to the structural cabling system that has
				been installed by an electrical contractor. The cables running to the computer
				terminals are held in place by screws that fit into the back of the terminal
				units. The vendor is not a contractor within the scope of this rule. The
				computer equipment has not been affixed in such a way as to become a part of
				the facility. The equipment has not been attached to any structural element of
				the building.
e. A manufacturer
				agrees to provide the prestressed concrete forms for a public parking garage. A
				construction company is awarded the bid to install those forms and build the
				garage. The manufacturer is not a contractor within the scope of this rule,
				because the manufacturer will not install any tangible personal property that
				becomes a part of the garage. The construction company is a contractor within
				the scope of this rule.