Florida Administrative Code › 12 - DEPARTMENT OF REVENUE › 12A - Sales and Use Tax › Chapter 12A-15 - DISCRETIONARY SALES SURTAX › Section 12A-15.004 - Specific Limitations

Current through Reg. 50, No. 138; July 16, 2024
(1) SCOPE. This rule
				is intended to provide guidelines regarding the limitation for the sales amount
				above $5, 000 provided for any item of tangible personal property subject to
				the discretionary sales surtax imposed under Sections
				212.054 and
				212.055, F.S. For the
				application of the limitation to the fabrication of items used in the
				performance of a real property contract, see Rule
				12A-15.008, F.A.C.
(2)
(a) The
				surtax does not apply to the sales amount above $5, 000 on any item of tangible
				personal property. However, the surtax does apply to the first $5, 000 of the
				sales amount on the sale, use, lease, rental, or license to use any item of
				tangible personal property, including electric power or energy. The surtax
				applies, without limitation, to sales of admissions; sales and uses of
				services; sales of service warranties; charges for prepaid calling
				arrangements; leases, rentals, and licenses to use real property or transient
				accommodations; leases or rentals of parking or storage space for motor
				vehicles in parking lots or garages, docking or storage space in boat docks and
				marinas, and tie-down or storage space for aircraft; and all other transactions
				subject to the discretionary sales surtax.
(b) Each lease or rental payment made, or
				contracted to be paid, for the lease or rental of tangible personal property by
				a lessee or renter represents one taxable transaction. The surtax applies to
				the first $5, 000 of the lease or rental payment when the lease or rental
				payment is due. Liability for the immediate payment of the tax on all the
				payments required under the lease or rental does not arise at the time of the
				execution of the lease or rental.
(c)
1.
				Example: A motor vehicle dealer sells a vehicle for $12, 000 to a purchaser
				whose address on the registration or title document is in a county imposing the
				surtax. The first $5, 000 of the sales amount is subject to the surtax and the
				amount over $5, 000 (i.e., $7, 000) is not subject to the surtax.
2. Example: A person leases real property
				subject to the state sales tax for $10, 000 a month. The entire monthly rental
				(i.e., $10, 000) is subject to the surtax since the $5, 000 limitation only
				applies to items of tangible personal property.
3. Example: ABC, Inc., a consumer of electric
				power, is located within a county imposing the surtax. The consumer (a
				commercial account) receives a bill in the amount of $6, 700. The first $5, 000
				of the sales amount is subject to the surtax and the amount over $5, 000 (i.e.,
				$1, 700) is not subject to the surtax.
4. Example: A security company provides
				security services to a shopping mall located in a surtax county for $8, 000 a
				month. The entire monthly charge for security services (i.e., $8, 000) is
				subject to the surtax, since the $5, 000 limitation only applies to items of
				tangible personal property.