(1) Definitions. For purposes of this rule,
the following definitions apply:
(a)
"Airport" means a facility as defined in s. 330.27(2), F.S.
(b)
1.
"Clothing" means any article of wearing apparel intended to be worn on or about
the human body, including all footwear, except skis, swim fins, roller blades,
and skates.
2. "Clothing" does not
include watches, watchbands, jewelry, umbrellas, and handkerchiefs.
(c) "Holiday period" means the
period from January 1, 2024, through January 14, 2024.
(d) "Learning aids" means flashcards or other
learning cards, matching or other memory games, puzzle books and
search-and-find books, interactive or electronic books and toys intended to
teach reading or math skills, and stacking or nesting blocks or sets.
(e)
1.
"Personal computers" includes electronic book readers, laptops, desktops,
handheld devices, tablets, or tower computers.
2. The term does not include cellular
telephones, video game consoles, digital media receivers, or devices that are
not primarily designed to process data.
(f) "Personal computer-related accessories."
1. The term includes keyboards, mice,
personal digital assistants, monitors, other peripheral devices, modems,
routers, and nonrecreational software, regardless of whether the accessories
are used in association with a personal computer base unit.
2. The term does not include furniture, or
systems, devices, software, or other peripherals that are designed or intended
primarily for recreational use.
3.
The term "monitor" does not include a device that includes a television
tuner.
4. The term "nonrecreational
software" includes software such as antivirus, word processing, financial,
database, and educational software. It does not include gaming
software.
(g) "Public
lodging establishment" means a facility as defined in s.
509.013(4),
F.S.
(h) "Remote sale" means a
retail sale of tangible personal property ordered by mail, telephone, the
Internet, or other means of communication from a person who receives the order
outside of this state and transports the property or causes the property to be
transported from any jurisdiction, including this state, to a location in this
state. For purposes of this emergency rule, tangible personal property
delivered to a location within this state is presumed to be used, consumed,
distributed, or stored to be used or consumed in this state.
(i) "School supplies" means pens, pencils,
erasers, crayons, notebooks, notebook filler paper, legal pads, binders, lunch
boxes, construction paper, markers, folders, poster board, composition books,
poster paper, scissors, cellophane tape, glue or paste, rulers, computer disks,
staplers and staples used to secure paper products, protractors, compasses, and
calculators.
(j) "Theme park or
entertainment complex" means a facility as defined in s.
509.013(9),
F.S.
(2) Clothing Sales.
(a) During the holiday period, tax is not due
of the retail sale of any article of clothing, wallets, or bags, including
handbags, backpacks, fanny packs, and diaper bags, but excluding briefcases,
suitcases, and other garment bags, with a sales price of $100 or less per item.
This exemption does not apply to sales of clothing, wallets, or bags within a
theme park or entertainment complex, public lodging establishment, or
airport.
(b)
1. The sales tax exemption applies to each
eligible item of clothing, wallet, or bag, having a sales price of $100 or less
per item. The exemption applies regardless of how many items are sold on the
same invoice to a customer.
2.
Example: A customer purchases two shirts for $55 each. Both items are eligible
for the exemption, even though the customer's total purchase price ($110)
exceeds $100.
(c)
1. The exemption does not apply to the first
$100 of price of an eligible item of clothing, wallet, or bag with a sales
price of more than $100.
2.
Example: A customer purchases a pair of pants costing $120. Tax is due on the
entire $120.
(3) School Supplies.
(a)
1.
During the holiday period, tax is not due of the retail sale of any item of
school supplies with a sales price of $50 or less per item. This exemption does
not apply to sales of school supplies within a theme park or entertainment
complex, public lodging establishment, or airport.
2. Example: A customer purchases a set of art
markers for $45. The purchase qualifies for the exemption.
3. Example: A customer purchases a calculator
with a sales price of $75. Tax is due on the entire $75.
(b)
1. The
sales tax exemption applies to each eligible item of school supplies with a
sales price of $50 or less per item. The exemption applies regardless of how
many items are sold on the same invoice to a customer.
2. Example: A customer purchases 15 notebooks
for $4.50 each. All 15 items will qualify for the exemption, even though the
customer's total purchase price ($67.50) exceeds $50.
(4) Learning Aids and Jigsaw
Puzzles. During the holiday period, tax is not due of the retail sale of any
learning aid or jigsaw puzzle with a sales price of $30 or less. This exemption
does not apply to sales of learning aids or jigsaw puzzles within a theme park
or entertainment complex, public lodging establishment, or airport.
(5) Personal Computers and Certain Personal
Computer-Related Accessories.
(a) During the
holiday period, tax is not due of the retail sale of any personal computer or
personal computer-related accessories for noncommercial home or personal use
with a sales price of $1,500 or less. This exemption does not apply to sales of
personal computers or personal computer-related accessories within a theme park
or entertainment complex, public lodging establishment, or airport.
(b)
1. The
sales tax exemption applies to each eligible personal computer or qualifying
personal computer-related accessory with a sales price of $1,500 or less per
item.
2. Example: A customer
purchases a $950 personal computer, a $100 printer, and a $400 tablet in a
single transaction. Each item will qualify for the exemption on the sales price
of the individual item.
3. Example:
A customer purchases a personal computer with a sales price of $1,700. Tax is
due on the entire $1,700.
(6) Sales of Sets Containing Both Exempt and
Taxable Items.
(a) When exempt items are
normally sold together with taxable merchandise as a set or single unit, the
sales price of the set or single unit is subject to sales tax.
(b) Example: A gift set consisting of a
wallet (which is defined as an eligible "clothing item") and key chain (which
is not defined as an eligible "clothing item") is sold for a single price of
$35. Although the wallet would otherwise be exempt during the holiday period,
the sales price of the gift set is subject to tax.
(c) Example: A packaged set consisting of a
bottle of correction fluid (which is not defined as an eligible "school
supply") and pens (which are defined as an eligible "school supply") is sold
for a single price of $10. Although the pens would otherwise be exempt during
the holiday period, the sales price of the packaged set is subject to
tax.
(7) Articles
Normally Sold as a Unit.
(a) Articles that are
normally sold as a unit must continue to be sold in that manner; they cannot be
separately stated and sold as individual items in order to obtain the
exemption.
(b) Example: A pair of
shoes normally sells for $120. The pair of shoes cannot be split in order to
sell each shoe for $60 to qualify for the exemption.
(c) Example: A two-piece suit is normally
priced at $150 on a single price tag. The suit cannot be split into separate
articles so that any of the components may be sold for $75 or less in order to
qualify for the exemption. However, components that are normally priced as
separate articles may continue to be sold as separate articles and qualify for
the exemption if the price of an article is $100 or less.
(d) Example: A pen and pencil set is normally
priced at $60 on a single price tag. The set cannot be split into separate
articles so that either of the components may be sold for $30 or less in order
to qualify for the exemption.
(8) Gift Cards.
(a) Eligible items purchased during the
holiday period using a gift card will qualify for the exemption, regardless of
when the gift card was purchased.
(b) Eligible items purchased after the
holiday period using a gift card are taxable, even if the gift card was
purchased during the holiday period.
(c) A gift card does not reduce the sales
price of an item.
(9)
Buy One, Get One Free or for a Reduced Price. The total price of items
advertised as "buy one, get one free" or "buy one, get one for a reduced price"
cannot be averaged in order for both items to qualify for the
exemption.
(10) Exchanges.
(a) If a customer purchases an eligible item
during the holiday period, then later exchanges the item for the same item
(e.g., different size or different color), no tax will be due even if the
exchange is made after the holiday period.
(b) If a customer purchases an eligible item
during the holiday period, then later returns the item and receives credit
towards the purchase of an item that did not qualify for the exemption, the new
item purchased is subject to tax.
(11) Coupons, Discounts, and Rebates. The
sales price of an item includes all consideration received by the retailer for
that item. The price of an item is not limited to the amount paid by a
customer.
(a) Manufacturer's coupons,
discounts, and rebates do not reduce the sales price of an item, because the
retailer is reimbursed for the amount of any discount provided to a customer.
Therefore, the amount of the reimbursement is included in the taxable sales
price of an item.
(b) Store
coupons, discounts, and rebates offered by the retail seller reduce the sales
price of an item because they reduce the total amount received by the retail
seller for the item.
(12) Returns. When a customer returns an item
purchased during the sales tax holiday period and requests a refund or credit
of tax the customer must produce a receipt or invoice showing tax was charged
and paid on the original purchase of the item, or the retailer must have
sufficient documentation to show tax was paid on the original purchase of the
item.
(13) Rain checks. Eligible
items purchased during the holiday period using a rain check will qualify for
the exemption regardless of when the rain check was issued. However, issuance
of a rain check during the holiday period will not qualify an eligible item for
the exemption if the item is actually purchased after the holiday
period.
(14) Layaway sales. A
layaway sale is a transaction in which merchandise is set aside for future
delivery to a customer who makes a deposit, agrees to pay the balance of the
purchase price over a period of time, and receives the merchandise at the end
of the payment period. Eligible items placed on layaway during the holiday
period are tax exempt, even if final payment of the layaway is made after the
holiday period. If a customer makes a final payment and takes delivery of the
item during the holiday period, the eligible items are tax exempt.
(15) Remote Sales.
(a) Eligible items purchased through a
marketplace provider or from a remote seller are exempt when the order is
accepted by the marketplace provider or remote seller during the sales tax
holiday period for immediate shipment, even if delivery is made after the sales
tax holiday period.
(b) An order is
accepted by the company when action has been taken to fill the order for
immediate shipment. Actions to fill an order include assigning an "order
number" to a telephone order, confirming an Internet order by an email to the
customer, or placing a date received on an order received by mail.
(c) An order is considered to be for
immediate shipment when delayed shipment is not requested by the customer. An
order is for immediate shipment even if the shipment may be delayed because of
a backlog of orders or stock is currently unavailable or on back
order.
(16) Shipping and
Handling Charges. When separately stated shipping charges are part of the sales
price, as provided in Rule
12A-1.045, F.A.C., and both
taxable and exempt items are listed on a sales invoice or receipt, the shipping
charges must be proportionately allocated to the charge for each item to
determine the total sales price of the item. The charge for each item is
divided by the total charge of all the items ordered to obtain the percentage
of charge that each item bears to the total order. The amount of the shipping
charge applicable to each item is calculated by multiplying the total shipping
charge by the percentage of cost for each item. If an item is exempt, the
associated shipping charge is also exempt.
(17) Service Warranties. The taxation of any
charges for a service warranty contract depends on the taxability of the
product being sold. If the retail sale of an item is exempt from tax, the
charge for a service warranty sold with the item is exempt.
(18) License Fees or Other Fees imposed by
Panama City and Panama City Beach. Panama City and Panama City Beach impose a
1% merchant's license fee or tax on retailers. The merchant's license fee is
included in the sales price of each item. When the fee is separately stated,
and both taxable and exempt items are listed on a sales invoice or receipt, the
merchant's fee must be allocated to the charge for each item on the invoice. If
the item is exempt, the associated merchant's license fee is exempt.
(19) Repairs or Alterations to Eligible
Items.
(a) Repairs to eligible items do not
qualify for the exemption.
(b)
Alterations to clothing or footwear do not qualify for the exemption, even
though alterations may be sold, invoiced, and paid for at the same time as the
item to be altered is purchased.
(20) Option to not participate. Qualified
businesses may choose not to participate in the tax holiday.
(a) Qualification. Businesses may choose to
opt out of the tax holiday when less than five percent (5%) of their gross
sales of tangible personal property during calendar year 2022 are sales of
items that would be exempt during the tax holiday periods. Businesses with
multiple locations must include the gross sales of all of their Florida
locations into this calculation. For businesses that were not in operation
during the 2022 calendar year, this option is available when less than five
percent (5%) of the inventory of items for sale by the business are items that
would be tax exempt during the tax holiday.
(b) Election. Qualifying businesses choosing
not to participate in the tax holiday must send a written notice to the Florida
Department of Revenue by December 23, 2023, for the January 2024 tax holiday.
The notice must be on business letterhead and state that the business meets the
qualifications stated in paragraph (a) and has chosen not to participate in the
tax holiday. The notice must be signed by an individual authorized to sign on
behalf of the business. Businesses with multiple locations may send a single
notice stating that all of their Florida locations will not participate in the
tax holiday. The notice may be delivered in one of three ways:
1. A letter can be mailed to the following
mailing address:
Sales Tax Holiday
Account Management MS 1-5730
Florida Department of Revenue
5050 W Tennessee St
Tallahassee, FL 32399-0160
2. A scanned letter can be emailed to:
registration@floridarevenue.com.
3.
A letter can be faxed to 850-922-0859.
(c) Sample Notice. The notice may take any
form as long as it clearly states that the business is electing not to
participate in the holiday. An example of notice language is as follows: "In
accordance with Section 43 of Chapter 2023-157, Laws of Florida, (Name of
Business) has chosen not to participate in the Back-to-School Sales Tax
Holiday, January 1, 2024, through January 14, 2024. For questions, please
contact (name of contact person at business) at (contact telephone number or
email address)." The notice must be signed by an authorized
individual.
(d) Posting of Notice.
Businesses that do not participate in the tax holiday must post the notice at
each business locationstating their choice not to participate in the
Back-to-School Sales Tax Holiday. The notice must be posted in a conspicuous
location where it is easily visible to customers.
(21) Rentals. Rentals of eligible items do
not qualify for the exemption.
(22)
List of Items of Clothing and Their Taxable Status During the Holiday Period.
The following is a list of items of clothing and their taxable status during
the holiday period, if they are sold for $100 or less per item. This is not an
exhaustive list. T = Taxable, E = Exempt.
A
T Accessories (generally)
E Barrettes and bobby pins
E Belt buckles
E Bow ties
E Hairnets, bows, clips, and hairbands
E Handbags
T Handkerchiefs
T Jewelry
T Key cases
E Neckwear
E Ponytail holders
E Scarves
E Ties
E Wallets
T Watchbands
T Watches
E Aerobic and fitness clothing
E Aprons and clothing shields
T Athletic gloves
T Athletic pads
E Athletic supporters
B
E Baby clothes
E Backpacks and book bags
E Bandanas
E Baseball cleats
E Bathing suits, caps, and cover-ups
E Belts
E Bibs
E Bicycle helmets (youth)**
E Blouses
E Boots (except ski or fishing boots)
E Bowling shoes (purchased)
T Bowling shoes (rented)
E Braces and supports worn to correct or alleviate a physical
incapacity or injury*
E Bras
T Briefcases
C
T Checkbook covers (separate from wallets)
T Chest protectors
E Choir and altar clothing*
E Cleated and spiked shoes
E Clerical vestments*
T Cloth, lace, knitting yarns, and other fabrics
T Clothing repair items, such as thread, buttons, tapes,
iron-on patches, or zippers
E Coats
E Coin purses
T Corsages and boutonnieres
T Cosmetic bags
E Costumes
E Coveralls
T Crib blankets
D-E
E Diaper bags
E Diapers, diaper inserts (adult and baby, cloth or
disposable)
T Diving suits (wet and dry)
E Dresses
T Duffel bags
T Elbow pads
F
E Fanny packs
T Fins
T Fishing boots (waders)
E Fishing vests (nonflotation)
T Football pads
E Formal clothing (purchased)
T Formal clothing (rented)
G
T Garment bags
T Gloves (generally)
T Baseball
T Batting
T Bicycle
E Dress (purchased)
E Garden
T Golf
T Hockey
E Leather
T Rubber
T Surgical
T Tennis
E Work
T Goggles (except prescription*)
E Graduation caps and gowns
E Gym suits and uniforms
H
T Hard hats
E Hats and caps
T Helmets (bicycle**, baseball, football, hockey, motorcycle,
sports)
E Hosiery and pantyhose, including support hosiery
E Hunting vests
I-J
T Ice skates
T In-line skates
E Jackets
E Jeans
K
T Key chains
T Knee pads
L
E Lab coats
E Leggings, tights, and leg warmers
E Leotards
T Life jackets and vests
E Lingerie
T Luggage
M-N
T Makeup bags
E Martial arts attire
O-P
E Overshoes and rubber shoes
T Pads (football, hockey, soccer, elbow, knee,
shoulder)
T Paint or dust masks
E Pants
T Patterns
T Protective masks (athletic)
E Purses
R
E Raincoats, rain hats, and ponchos
E Receiving blankets
E Religious clothing*
T Rented clothing or footwear (including uniforms, formal
wear, and bowling shoes)
T Repair of wearing apparel
E Robes
T Roller blades
T Roller skates
S
E Safety clothing
T Safety glasses (except prescription*)
E Safety shoes
E Scout uniforms
T Shaving kits/bags
E Shawls and wraps
T Shin guards and padding
E Shirts
E Shoe inserts and insoles
E Shoes (including athletic)
E Shoulder pads (e.g., dresses, jackets)
T Shoulder pads (e.g., football, hockey)
E Shorts
T Ski boots (snow)
T Ski vests (water)
E Ski suits (snow)
T Skin diving suits
E Skirts
E Sleepwear (nightgowns and pajamas)
E Slippers
E Slips
E Socks
T Suitcases
E Suits, slacks, and jackets
T Sunglasses (except prescription*)
E Suspenders
E Sweatbands
E Sweaters
T Swimming masks
E Swimsuits and trunks
T
E Ties (neckties, bow ties)
E Tuxedos (excluding rentals)
U
T Umbrellas
E Underclothes
E Uniforms (work, school, and athletic - excluding
pads)
V-W
E Vests
T Weight-lifting belts
T Wigs
* These items are always exempt as religious, prescription,
prosthetic, or orthopedic items.
** Bicycle helmets marketed for use by youth are always
exempt from sales tax.
(23)
List of School Supplies and Their Taxable Status During the Holiday Period. The
following is a list of school supplies and their taxable status during the
holiday period if they are sold for $50 or less per item.
T = Taxable, E = Exempt.
E Binders
T Books not otherwise exempt
E Calculators
E Cellophane (transparent) tape
E Colored pencils
E Compasses
E Composition books
E Computer disks (blank CDs only)
T Computer paper
E Construction paper
T Correction tape, fluid, or pens
E Crayons
E Erasers
E Folders
E Glue (stick and liquid)
E Highlighters
E Legal pads
E Lunch boxes
E Markers
T Masking tape
E Notebook filler paper
E Notebooks
E Paste
E Pencils, including mechanical and refills
E Pens, including felt, ballpoint, fountain, highlighters,
and refills
E Poster board
E Poster paper
T Printer paper
E Protractors
E Rulers
E Scissors
E Staplers and staples (used to secure paper products)
(24) List of Learning Aids and
Jigsaw Puzzles and Their Taxable Status During the Holiday Period. The
following is a list of learning aids and jigsaw puzzles and their taxable
status during the holiday period if they are sold for $30 or less per item. T =
Taxable, E = Exempt.
E Electronic books
E Flash cards
E Interactive books
E Jigsaw puzzles
E Learning cards
E Matching games
E Memory games
E Puzzle books
E Search-and-find books
E Stacking or nesting blocks or sets
E Toys that teach reading or math skills
(25) List of Personal Computers and Related
Accessories and Their Taxable Status During the Holiday Period. The following
is a list of personal computers and related accessories, and their taxable
status during the holiday period if they are sold for $1,500 or less per item.
This is not an inclusive list. T = Taxable, E = Exempt.
T Batteries (regular)***
E Cables for computers
E Car adaptors for laptop computers
T Cases for electronic devices (including electronic reader
covers)
T CDs/DVDs (music, voice, prerecorded items)
T Cellular telephones (including smart telephones)
E Central processing units (CPU)
E Compact disk drives
E Computer for noncommercial home or personal use
E Desktop
E Laptop
E Tablet
T Computer bags
E Computer batteries
T Computer paper
E Computer towers consisting of a central processing unit,
random-access memory, and a storage drive
T Computers designed/intended for recreation (games and
toys)
T Copy machines and copier ink/toner
E Data storage devices (excludes those devices designed for
use in digital cameras or other taxable items)
E Blank CDs
E Diskettes
E Flash drives
E Jump drives
E Memory cards
E Portable hard drives
E Storage drives
E Thumb drives
E Zip drives
T Digital cameras
T Digital media receivers
E Docking stations (for computers)
E Electronic book readers
T Fax machines (stand-alone)
T Furniture
T Game controllers (e.g., joy sticks, nunchucks)
T Game systems and consoles
T Games and gaming software
E Hard drives
E Headphones (including earbuds)
E Ink cartridges (for computer printers)
E Keyboards (for computers)
E Mice (mouse devices)
E Microphones (for computers)
E Modems
E Monitors (except devices that include a television
tuner)
E Motherboards
T MP3 players or accessories
E Personal digital assistant devices (except cellular
telephones)
E Port replicators
E Printer cartridges
E Printers (including "all-in-one" models)
T Projectors
E RAM - random access memory
T Rented computers or computer accessories
E Routers
E Scanners
T Smart telephones
E Software (nonrecreational)
E Antivirus
E Database
E Educational
E Financial
E Word processing
E Speakers (for computers)
E Storage drives (for computers)
T Surge protectors
E Tablets
T Tablet cases or covers
T Televisions (including digital media receivers)
T Video game consoles
E Web cameras
*** Batteries for use in prosthetic or orthopedic appliances
are always exempt from tax.
