(1) Art sold to or
used by an educational institution.
(a) A
"work of art, " as defined in Section
212.08(7)(cc)
8., F.S., is exempt from sales and use tax if the work of art is sold to or
used by an educational institution, as defined in Section
212.08(7)(cc)
8., F.S., or if it is purchased in Florida or imported into Florida within six
months from the date of purchase by any person exclusively for the purpose of
being donated to, or being loaned to and made available for display by, an
educational institution. A work of art is presumed to have been purchased in or
imported into this state exclusively for loan to an educational institution if
it is so loaned or placed in storage in preparation for such a loan within 90
days after purchase or importation, whichever is later. A work of art will not
be deemed to be "in storage" for purposes of this subsection if it is displayed
at any place other than an educational institution.
(b) The purchaser or his authorized agent
must:
(1) complete an affidavit documenting
entitlement to the exemption provided in Section
212.08(7)(cc),
F.S.,
(2) present the affidavit to
the seller of the work of art, and
(3) forward a copy of the affidavit to the
Department of Revenue when it is presented to the vendor. A purchaser may
authorize his or her agent to execute such affidavit by a documented Power of
Attorney and Declaration of Representative filed with the Department. The
Department prescribes Form DR-835, Power of Attorney and Declaration of
Representative (incorporated by reference in Rule
12-6.0015, F.A.C.), as the form
to be used for such purposes.
(c) The following is a suggested format of
the affidavit to be provided by the purchaser or the authorized agent to the
vendor of the work of art:
AFFIDAVIT FOR EXEMPTION OF A WORK
OF ART TO BE DONATED OR LOANED TO
AN EDUCATIONAL INSTITUTION
I, the undersigned, claim exemption under Section
212.08(7)(cc),
F.S., from Florida sales and use tax on the work(s) of art, described below,
purchased in Florida or imported into Florida exclusively for the purpose of
being (check one)
___ donated to _________________, an educational institution
as defined in Section 212.08(7)(cc)8., F.S.
___ loaned to ___________________, an educational institution
as defined in Section 212.08(7)(cc)8., F.S.
If a donation, title to the work(s) of art is being or will
be transferred to the educational institution, and at the time of transfer, I
will submit to the Department an affidavit evidencing the transfer of
title.
If a loan:
* The work(s) of art will be loaned to the educational
institution or placed in storage in preparation for loan within 90 days after
it was purchased in or imported into Florida. If placed in storage, it will not
be displayed until such time as it is delivered to an educational
institution.
* I have entered into a written agreement with the
educational institution providing for a loan of the work(s) of art and making
the work(s) of art available to the educational institution for display for a
term of not less than 10 years, or will do so before the transfer of possession
of the work(s) of art to the educational institution occurs. A copy of the loan
agreement will be provided to the Florida Department of Revenue at the time
that the agreement is executed.
* I understand that the exemption provided in Section
212.08(7)(cc), F.S., is allowed during the period of time in which the work(s)
of art is in the possession of the educational institution.
* I understand that tax based upon the sales price as stated
below will become due and payable at the time the provisions of Section
212.08(7)(cc), F.S., are no longer met, and the statute of limitations as
provided in Section 95.091, F.S., will begin to run
at that time. However, if I donate the work(s) of art to an educational
institution after the loan ceases, no tax be due.
* A signed copy of this affidavit is being forwarded to the
Florida Department of Revenue at the time the original is given to the seller
of the work(s) of art.
Name of Purchaser
__________________________________________________________________________________________
Purchaser's Permanent Address
_________________________________________________________________________
(Street)
____________________________________________ (City)
__________________________________________________ (State)
Name of Seller
_____________________________________________________________________________________________
Seller's Permanent Address
____________________________________________________________________________
(Street)
____________________________________________ (City)
__________________________________________________ (State)
DESCRIPTION OF WORK(S) OF ART
_________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Sales Price _____________________ Date of Sale
_________________________________________________________________
Name of Educational Institution
_______________________________________________________________________________
Institution's Address
__________________________________________________________________________________
(Street)
_______________________________________________ (City)
_______________________________________________ (State)
Educational Institution's Florida Consumer's Certificate of
Exemption Number ________________________________________
Under penalties of perjury, I declare that I have read the
foregoing affidavit, and the facts stated in it are true to the best of my
knowledge and belief.
_____________________________________
(Signature of Purchaser or Authorized Agent)
Original to be retained by the seller and made part of the
seller's records.
1st Copy to be submitted to the Florida Department of
Revenue, General Tax Administration MS 1-2800, P.O. Box 6417, Tallahassee,
Florida 32314-6417.
2nd copy: Purchaser's copy.
(d) The following is a suggested format of an
affidavit of transfer of title to be provided by the purchaser or the
authorized agent to the educational institution, as defined in Section
212.08(7)(cc)
8., F.S., upon donation of a work of art to that institution:
AFFIDAVIT TRANSFERRING TITLE OF A WORK
OF ART TO AN EDUCATIONAL INSTITUTION
I, the undersigned, claim exemption under Section
212.08(7)(cc),
F.S., from Florida sales and use tax on the work(s) of art, described below,
purchased in Florida or imported into Florida for the exclusive purpose of
being donated to ___________________________, an educational institution as
defined in Section 212.08(7)(cc)8., F.S. A copy of the affidavit provided to
the vendor of the work(s) of art at the time of purchase is attached.
Title to the work(s) of art has been, or is being,
transferred to the educational institution, effective ________________ (date;
no later than the date of this affidavit). Copies of any other documents
evidencing the transfer of title to the educational institution are attached to
this affidavit and are being forwarded to the Florida Department of Revenue
with the affidavit.
A signed copy of this affidavit is being forwarded to the
Florida Department of Revenue at the time the original is given to the
educational institution.
Name of Transferor
__________________________________________________________________________________________
Transferor's Permanent Address
_________________________________________________________________________
(Street)
________________________________________________ (City)
_______________________________________________(State)
DESCRIPTION OF WORK(S) OF ART
_________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Date Purchased
_____________________________________________________________________________________________
Name and Address of Person from Whom Purchased
________________________________________________________________
___________________________________________________________________________________________________________
Name of Educational Institution
________________________________________________________________________________
Institution's Address
___________________________________________________________________________________(Street)
___________________________________________________________________
(City) ____________________________(State)
Educational Institution's Florida Consumer's Certificate of
Exemption Number __________________________________________
Under penalties of perjury, I declare that I have read the
foregoing affidavit, including all attachments, and the facts stated in it are
true to the best of my knowledge and belief.
_________________________________
(Signature of Transferor)
Original to be retained by the educational institution and
made part of that institution's records.
1st Copy to be submitted to the Florida Department of
Revenue, General Tax Administration MS 1-2800, P.O. Box 6417, Tallahassee,
Florida 32314-6417.
2nd copy: Donor's copy.
(e) The exemption provided to the purchaser
of a work of art loaned to an educational institution is not terminated if the
educational institution, loans the work of art to another educational
institution(s) and the physical custody of such work of art is returned to the
lending educational institution at the termination of the loan agreement(s).
Any educational institution which transfers possession of a work of art that is
exempt under this subsection to other educational institutions is required to
notify the Department within 60 days of such transfers. The notification must
include a description of the work of art, the name and address of the purchaser
who loaned it, the names and addresses of each of the educational institutions
receiving the work of art for display, and the time periods that the work of
art will be displayed at each identified educational institution.
(f) Any educational institution in this state
that has received from a purchaser a work of art that is exempt under this
subsection is required to notify the Department within 60 days that it has
received the work of art. The notification to the Department must include a
description of the work of art, the name and address of the purchaser who
loaned it, and the date on which the transfer of possession occurred.
(g) Any educational institution which
displays a work of art received on loan that is exempt under Section
212.08(7)(cc), F.S., is required to maintain any written agreements,
notifications, affidavits, and any other documentation which substantiates the
educational institution's right to display the work of art until tax imposed by
Chapter 212, F.S., may no longer be determined and assessed under Section
95.091(3),
F.S., and such documentation shall be made available to the Department upon
request.
(h) Any educational
institution that transfers from its possession a work of art received on loan
that is exempt under Section
212.08(7)(cc),
F.S., is required to notify the Department within 60 days after the transfer,
except for transfers which do not terminate the exemption provided in Section
212.08(7)(cc),
F.S., for purposes such as storage, repairs, conservation and restoration,
authentication, insurance examination, valuation, appraisal, research,
photography and reproduction, or fumigation during which the work of art is not
displayed and the educational institution maintains documentation to
substantiate that such transfers do not constitute a transfer of possession for
purposes of display of such work of art. The notification to the Department
must include a description of the work of art, the name and address of the
purchaser who loaned it, the name and address of to whom the work of art is
transferred, and the date on which the transfer of possession
occurred.
(i) Documents and
notifications required to be provided to the Department should be mailed to the
following address:
Florida Department of Revenue
General Tax Administration MS 1-2800
P.O. Box 6417
Tallahassee, Florida 32314-6417
(2) Service transactions.
(a)
1. An
interior decorator's so-called fee is taxable as a part of the selling price
under Section 212.02(16),
F.S., or as a part of the cost price under Section
212.02(4),
F.S., and cannot be exempted as a professional or personal service charge when
the transaction involves the sale of tangible personal property. This is true
when the so-called fee is paid in the form of a trade discount, as is the case
when a supplier grants the decorator a trade discount and the decorator in turn
bills the client for the full list price. The decorator fee is also taxable
when it appears as an amount added to the decorator's cost when billed to the
client for tangible personal property on a cost plus basis.
2. If the decorator's fee is solely for
designing the interior and exterior decorative scheme or for advising his
clients and recommending colors, paints, wallpaper, fabrics, brands, sources of
supply, etc., and there is no sale of tangible personal property involved, then
such fee would be exempt as a professional or personal service
transaction.
3. In some instances,
the decorator may receive a fixed sum, which is not in any way contingent upon
the sale of tangible personal property, as a so-called decorator fee. Then, in
other completely unrelated transactions, he may sell tangible personal property
to the same client. In such cases the decorator's fee cannot be considered as a
part of the selling price of the property sold because there is no connection
between the transactions.
4. If the
decorator's client reimburses the decorator for the payroll cost of personnel
on the decorator's payroll assigned to a specific project, the duties performed
by such employees will determine whether or not this item is taxable. For
example, if these employees were engaged in painting murals on walls, etc., the
charge made for their services is exempt, whereas, if these employees fabricate
tangible personal property such as making bedspreads or draperies then the
charge for their labor is taxable.
(b) When an architect or engineer furnishes
his client or customer with a scale, working, or other model, the total amount
he charges his customer therefor is taxable. This constitutes the sale of
tangible personal property and is not exempt as an inconsequential element of a
personal service transaction.
(c)
The taking of dictation or the video recording by a public stenographer are
exempt as professional services. Charges for attendance and the stenographic or
videotape recordings of proceedings at a trial, hearing, conference, or similar
function by a court reporter are exempt as professional services. Charges made
by court reporters for transcripts or videotapes of proceedings are exempt as
professional services when furnished to parties to the proceedings. Charges for
transcripts or videotapes to third persons who are not parties to the
proceedings for which the reporter was engaged are taxable.
(5) Resource recovery
equipment or machinery.
(a) Resource recovery
equipment or machinery used in a facility owned and operated exclusively by or
on behalf of any county or municipality is exempt. To qualify for exemption,
the resource recovery equipment or machinery must:
1. Be certified as resource recovery
equipment or machinery by the Department of Environmental Protection under
Section 403.715, F.S., and Rule Chapter
62-704, F.A.C., Certification of Resource Recovery Equipment; and,
2. Be owned or operated exclusively by or on
behalf of a county or municipality.
(b) To obtain certification of the resource
recovery equipment or machinery, application must be made to the Department of
Environmental Protection. The Department of Environmental Protection will issue
a final examination and certification for qualifying resource recovery
equipment or machinery after the equipment or machinery is installed and
operational. Prior to the purchase and installation of qualifying resource
recovery equipment or machinery, a preliminary examination report may be
obtained from the Department of Environmental Protection. Persons who obtain a
preliminary examination report must also obtain a final examination and
certification after the equipment or machinery is installed and operational.
Copies of preliminary examination reports and final examination and
certifications issued by the Department of Environmental Protection are
provided to the Department of Revenue.
(c)
1.
Preliminary examination reports. A temporary exemption applies to the resource
recovery equipment or machinery specified in the preliminary examination report
issued by the Department of Environmental Protection. The temporary exemption
is contingent upon final examination and certification of the resource recovery
equipment or machinery by the Department of Environmental Protection.
2. Applicants who have received a preliminary
examination report may purchase the resource recovery equipment or machinery
identified in the preliminary report tax-exempt. A county or municipality that
has received a preliminary examination report may issue a copy of its Florida
Consumer's Certificate of Exemption to make tax-exempt purchases of the
identified resource recovery equipment or machinery. Prime contractors and
subcontractors who have entered into a contractual agreement with a county or
municipality to purchase the identified resource recovery equipment or
machinery may purchase the equipment or machinery tax-exempt by issuing a
written certification to the selling dealer. The prime contractor or
subcontractor must certify that the equipment or machinery qualifies as
resource recovery equipment or machinery that will be used exclusively by or on
behalf of a county or municipality, as provided in Section
212.08(7)(q),
F.S. The following is a suggested format of a written certification:
CERTIFICATION FOR RESOURCE RECOVERY EQUIPMENT OR
MACHINERY
This is to certify that the resource recovery equipment or
machinery, as described below, purchased on or after ________ (DATE) from
___________ (VENDOR) is purchased for use as qualifying resource recovery
equipment or machinery, pursuant to Section
212.08(7)(q),
Florida Statutes, and will be used exclusively by or on behalf of a county or
municipality.
Resource Recovery Equipment or Machinery:
___________________________________________
___________________________________________
___________________________________________
I understand that if I use the equipment or machinery for any
other purpose, I must pay tax on the purchase price of the taxable property
directly to the Department of Revenue.
I understand that it is a criminal offense to fraudulently
issue this certificate to evade the payment of sales tax and that I will be
liable for payment of the sales tax plus a penalty of 200% of the tax and may
be subject to conviction of a third degree felony.
Purchaser's Name
____________________________________________________
Purchaser's Address
__________________________________________________
Name and Title of Authorized Representative
______________________________
By
________________________________________________________________
(Signature of Purchaser)
________________________
(Date)
3.
The purchaser is required to pay tax at the time of purchase on any item
identified in the preliminary examination report by the Department of
Environmental Protection that does not qualify as possible resource recovery
equipment or machinery.
(d) Final examination and certification.
Resource recovery equipment or machinery identified in a final examination and
certification issued by the Department of Environmental Protection is exempt.
Applicants, prime contractors, and subcontractors who obtained a preliminary
examination report are entitled to an exemption for the resource recovery
equipment or machinery identified in the final examination and certification.
If it is determined by the Department of Environmental Protection that an item
identified in the final examination and certification does not qualify as
resource recovery equipment or machinery, tax, plus the applicable penalty and
interest computed from the date of purchase, is due to the Department
immediately.
(e) Refunds.
1. If an applicant, prime contractor, or
subcontractor did not obtain a temporary exemption from the Department to
purchase resource recovery equipment or machinery identified in the final
examination and certification tax-exempt, the exemption may be obtained through
a refund of previously paid taxes. Refunds will not be allowed until
information has been provided to the satisfaction of the Executive Director or
the Executive Director's designee that the resource recovery equipment or
machinery meets the requirements of Section
212.08(7)(q),
F.S. and this rule. The purchaser of the qualified resource recovery equipment
or machinery is entitled to a refund of Florida tax paid on the qualifying
resource recovery equipment or machinery. The purchaser must obtain a certified
statement from its supplier(s) certifying that the supplier(s) has remitted the
tax to the Department. If the purchaser paid tax directly to the Department,
the purchaser is required to provide documentation that the tax was remitted
directly to the Department.
2. The
following is a suggested format for a certified statement to be issued by the
supplier that tax has been remitted to the Department:
______________(COMPANY), its undersigned officer who is duly
authorized, hereby certifies to __________(CONTRACTOR OR SUBCONTRACTOR) it has
paid sales tax to the Florida Department of Revenue totaling the sum of
$________. The taxes were collected by (COMPANY) upon the sales of equipment or
machinery as evidenced by the attached invoice(s).
The company further certifies the sales tax for the attached
invoice(s) was paid to the Department of Revenue in the month following the
date of sale under sales tax certificate number ________________.
__________________________________________________
SIGNATURE OF AUTHORIZED OFFICER OF COMPANY
BY: ________________________________
TITLE: _____________________________
DATE: _____________________________
3. An Application for Refund-Sales and Use
Tax (Form DR-26S, incorporated by reference in Rule
12-26.008, F.A.C.) must be filed
within 3 years after the date the tax was paid in accordance with the timing
provisions of Section
215.26(2), F.S.
A copy of the final examination and certification issued by the Department of
Environmental Protection, the documentation to evidence the payment of Florida
tax, and the certified statement(s) from the supplier(s) that tax has been
remitted to the Department must accompany the application for refund. An
application for refund will not be considered complete pursuant to Sections
213.255(2) and
(3), F.S., and Rule
12-26.003, F.A.C., and a refund
will not be approved until the applicant can demonstrate that the resource
recovery equipment or machinery has been certified by the Department of
Environmental Protection and that tax on the purchase of the equipment or
machinery has been remitted to the Department.
