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 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. Sales and Use Food and Beverage Other Vended Items Tax Rate Divisor 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

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. Sales/Surtax Rate Divisor 1. $100 ÷ 1.0767 = $92.88 6.0% 1.0645 (gross sales) 6.5% 1.0686 2. $100 - $92.88 = $7.12 7.0% 1.0726 (tax due, including surtax due) 7.5% 1.0767 3. $92.88 x .015 = $1.39 8.0% 1.0808 [surtax portion to be reported on Line 15(d)] 8.5% 1.0849

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 Tax Collected Transaction 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 A customer purchases an item for $1.55. 1.10 - 1.16 .07 Using the bracket system $0.10 should be 1.17 - 1.33 .08 charged. 1.34 - 1.50 .09 Calculated: 1.51 - 1.66 .10 1.67 - 1.83 .11 $1.55 x .06 = 0.093 1.84 – 2.09 .12 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 Beach or vacation • • houses Condominium units • Campground sites • Timeshare resort units • Trailer or RV parks • Single-family homes • Apartments or units in • multiple unit structures Mobile homes •

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

Local Option Florida Transient Rental Taxes DR-15TDT Located online Forms and Publications floridarevenue.com

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 or call 850-488-6800