27570715, 12A-1.001 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 27570715

Notice of Proposed Rule

Department:

DEPARTMENT OF REVENUE

Division:

Sales and Use Tax

Chapter:

SALES AND USE TAX

Overview

RULE:

12A-1.001	Specific Exemptions
12A-1.0092	Detective, Burglar Protection, and Other Protection Services
12A-1.020	Licensed Practitioners; Drugs, Medical Products and Supplies
12A-1.0371	Sales of Coins, Currency, or Bullion
12A-1.044	Vending Machines
12A-1.047	Florists
12A-1.056	Tax Due at Time of Sale; Tax Returns and Regulations
12A-1.066	Auctioneers, Agents, Brokers and Factors
12A-1.087	Exemption for Power Farm Equipment; Electricity Used for Certain Agricultural Purposes; Suggested Exemption Certificate for Items Used for Agricultural Purposes
12A-1.097	Public Use Forms
12A-1.107	Community Contribution Tax Credit

PURPOSE:

The purpose of the proposed amendments to Rule 12A-1.001, F.A.C. (Specific Exemptions), is to remove the unnecessary provision that the exemption in s. 212.08(7)(x), F.S., for certain sporting equipment brought into Florida is a use tax exemption.
The purpose of the proposed amendments to Rule 12A-1.0092, F.A.C. (Detective, Burglar Protection, and Other Protection Services), is to incorporate the sales tax exemption in s. 212.08(7)(uuu), F.S., created by s. 24, Ch. 2023-157, L.O.F., for the sale of private investigations services by a small private investigative agency to a client.
The purpose of the proposed amendments to Rule 12A-1.020, F.A.C. (Licensed Practitioners; Drugs, Medical Products and Supplies), is to incorporate the sales tax exemption in s. 212.08(7)(sss), F.S., for oral hygiene products created by s. 24, Ch. 2023-157, L.O.F. 
The purpose of the proposed amendment to Rule 12A-1.0371, F.A.C. (Sales of Coins, Currency, or Bullion), is to remove reference to a provision in Rule 12A-1.003, F.A.C., which has been repealed.
The purpose of the proposed amendments to Rule 12A-1.044, F.A.C. (Vending Machines), is to remove a provision that conflicts with s. 212.02(10)(j), F.S., which provides concession fees or fees for a license to do business paid to an airport are not payments for leasing, letting, renting, or granting a license for the use of real property.
The purpose of the proposed amendments to Rule 12A-1.047, F.A.C. (Florists), is to remove reference to the florists’ telegraphic delivery (FTD) association which no longer uses telegraphic technology to transmit floral orders from one florist to another.
The purpose of the proposed amendments to Rule 12A-1.056, F.A.C. (Tax Due at Time of Sale; Tax Returns and Regulations), is to provide that an application is available to obtain a county control reporting number to report sales for multiple business locations within a single county, and to remove provisions regarding the water treatment plant upgrade fee which is now obsolete.
The purpose of the proposed amendments to Rule 12A-1.066, F.A.C., is to clarify the example of expenses included in the taxable sales price of tangible personal property that was consigned, delivered, or entrusted to a dealer for the purpose of sale.
The purpose of the proposed amendments to Rule 12A-1.087, F.A.C. (Exemption for Power Farm Equipment; Electricity Used for Certain Agricultural Purposes; Suggested Exemption Certificate for Items Used for Agricultural Purposes), is to provide a suggested exemption certificate to be used to document tax exempt sales of materials used to construct or repair permanent or temporary fencing used to contain, confine, or process cattle used in agricultural operations on lands classified as agricultural lands, as provided in s. 212.08(5)(a), F.S., on created by s. 24 of Ch. 2023-157, L.O.F., and to provide examples of such materials.
The purpose of the proposed amendments to Rule 12A-1.097, F.A.C. (Public Use Forms), is to incorporate updates to Form DR-46NT, Nontaxable Medical and General Grocery List, to include the sales tax exemptions for diapers and incontinence products for human use and oral hygiene products provided in s. 212.08(7)(rrr) and (sss), F.S., created by s. 24, Ch. 2023-157, L.O.F.; to incorporate updates to the sales and use tax return instructions to reduce the state sales tax rate from 5.5% to 4.5% on the lease or rental of commercial real property, effective December 1, 2023, as provided in s. 22, Ch. 2023-157, L.O.F.; to repeal obsolete forms previously used to administer tax credits under the Enterprise Zone Program which has been repealed, and the obsolete application for a refund of sales tax paid during period July 1, 2017, through December 31, 2018, on equipment used to generate electricity in nursing homes or assisted living facilities; and to remove the application for refund of sales and use tax on building materials used in Florida neighborhood revitalization projects, which is being incorporated in Rule 12-26.008, F.A.C.
The purpose of the proposed amendments to Rule 12A-1.107, F.A.C., is to remove obsolete provisions previously used to administer the Florida Enterprise Zone sales tax exemption for electricity, sales tax refund for business equipment and building materials, and jobs credit, to remove unnecessary provisions redundant of the Application for Refund of Sales and Use Tax on Building Materials Used in Florida Neighborhood Revitalization projects (Form DR-26RP), and to clarify the community contribution tax credit may be taken against the state sales and use tax.

SUMMARY:

The proposed amendments to Rule 12A-1.001, F.A.C. (Specific Exemptions), remove the unnecessary provision that the exemption for sporting equipment brought into Florida for use not longer than four months by an athlete or athletic team in a single or series of sporting events is a use tax exemption.
The proposed amendments to Rule 12A-1.0092, F.A.C. (Detective, Burglar Protection, and Other Protection Services), incorporate the sales tax exemption for the sale of private investigations services by a small private investigative agency to a client, pursuant to s. 212.08(7)(uuu), F.S., as created by s. 24, Ch. 2023-157, L.O.F. The proposed amendments provide that a small private investigative agency means a private investigator who is licensed with the Department of Agriculture and Consumer Services and who employs three or fewer full-time or part-time employees, including leased employees, who, during the previous calendar year, performed private investigation services otherwise taxable in which the charges for the services performed were less than $150,000 for all its businesses related through common ownership. 
The proposed amendments to Rule 12A-1.020, F.A.C. (Licensed Practitioners; Drugs, Medical Products and Supplies), incorporate the sales tax exemption for oral hygiene products, pursuant to s. 212.08(7)(sss), F.S., created by s. 24, Ch. 2023-157, L.O.F. 
The proposed amendments to Rule 12A-1.0371, F.A.C. (Sales of Coins, Currency, or Bullion), remove reference to provisions regarding a single sale previously provided in Rule 12A-1.003, F.A.C., now repealed.
The proposed amendments to Rule 12A-1.044, F.A.C. (Vending Machines), remove an example regarding proceeds received from a vending machine placed at an airport that conflicts with s. 212.02(10)(j), F.S., which provides that such proceeds are not payments for leasing, letting, renting, or granting a license for the use of real property.
The proposed amendments to 12A-1.047, F.A.C. (Florists) removes reference to orders transmitted through a florists’ delivery association by telegraphic delivery, a transmission method no longer used.
The proposed amendments to Rule 12A-1.056, F.A.C. (Tax Due at Time of Sale; Tax Returns and Regulations), provide an Application for Sales and Use Tax County Control Reporting Number (Form DR-1CCN), for qualifying dealers to apply to report sales for multiple business locations within a single county, and remove obsolete provisions regarding the application of penalties and interest to the water treatment plant upgrade fee. 
The proposed amendment to 12A-1.066, F.A.C. (Auctioneers, Agents, Brokers and Factors), clarify the example of expenses, such as storage, rental, commission, or repairs, included in the taxable sales price of tangible personal property that was consigned, delivered, or entrusted to a dealer for the purpose of sale .
The proposed amendment to Rule 12A-1.087, F.A.C. (Exemption for Power Farm Equipment; Electricity Used for Certain Agricultural Purposes; Suggested Exemption Certificate for Items Used for Agricultural Purposes), incorporates the sales tax exemption in s. 212.08(5)(a), F.S., created by s. 24, Ch. 202-157, L.O.F., for materials used to construct or repair permanent or temporary fencing used to contain, confine, or process cattle used in agricultural operations on lands classified as agricultural lands under s. 193.461, F.S., in the suggested exemption certificate required to be obtained by selling dealers when making tax exempt sales of such materials. The proposed amendments provide examples of materials that are tax exempt when the material is incorporated into and becomes a component part of such constructed or repaired fencing.
The proposed amendments to Rule 12A-1.097, F.A.C. (Public Use Forms), incorporate the updates to Form DR-46NT, Nontaxable Medical and General Grocery List, which includes the sales tax exemptions for diapers and incontinence products for human use and oral hygiene products; incorporates updates to the sales and use tax return instructions which provide a 4.5% state sales tax rate on the lease or rental of commercial real property; and removes forms previously used to administer tax credits under the Enterprise Zone Program, the application for a refund of sales tax paid on equipment used to generate electricity in nursing homes or assisted living facilities, and the application for refund of sales and use tax on building materials used in Florida neighborhood revitalization projects.
The proposed amendments to Rule 12A-1.107, F.A.C., remove obsolete provisions previously used to administer the Florida Enterprise Zone sales tax exemption for electricity, sales tax refund for business equipment and building materials, and jobs credit; remove unnecessary provisions redundant of the Application for Refund of Sales and Use Tax on Building Materials Used in Florida Neighborhood Revitalization projects (Form DR-26RP); clarify the community contribution tax credit may be taken against the state sales and use tax; reflect the renaming of the Department of Economic Opportunity the Florida Department of Commerce, and update the rule title to “Community Contribution Tax Credit” to reflect the updated rule.

RULEMAKING AUTHORITY:

201.11, 202.17(3)(a), 202.22(6), 202.26(3), 212.05(1)(j), 212.0515, 212.0596(3), 212.06(5)(b)13., 212.0596(3), 212.06(5)(b)13., 212.07(1)(b), 212.08(7), 212.099(10), 212.11(5)(b), 212.12(1)(a)2., 212.18(2), (3), 212.183, 213.06(1), 288.1258(4)(c), 376.70(6)(b), 376.75(9)(b), 403.718(3)(b), 403.7185(3)(b), 1002.40(16) FS.

LAW:

125.0104, 125.0108, 201.01, 201.08(1)(a), 201.133, 202.11(2), (3), (6), (16), (24), 202.22(3)-(6), 202.28(1), 203.01, 212.03, 212.02(14), (16), (19), 212.0305, 212.031, 212.04, 212.05, 212.0501, 212.0506(4), (11), 212.0515, 212.054, 212.055, 212.0596, 212.05965, 212.06, 212.0606, 212.07(1), (8), 212.08, 212.084(3), 212.085, 212.09, 212.096, 212.099, 212.11(1), (4), (5), 212.12(1), (2), (3), (4), (9), (13), 212.14(2), (4), (5), 212.18(2), (3), 212.183, 212.1832, 213.235(1), (2), 213.29, 213.255(2), (3), 213.37, 213.755, 215.26, 219.07, 288.1258, 290.00677, 365.172(9), 376.70(2), 376.75(2), 403.718, 403.7185(3), 443.131, 443.1315, 443.1316, 443.171(2), 1002.40(13) FS.

PRINT PUBLISH DATE:

9/19/2023 Vol. 49/182

COMMENTS:

From 9/19/2023 To 10/10/2023 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

Ref-07748 DR-26RP

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