Florida Sales Tax
Every person who engages in selling, renting, or licensing tangible personal property and certain services in Florida is exercising a taxable privilege. Transactions are not exempt from sales tax unless expressly exempted by statute. Sales tax should be charged in addition to the selling price and reported separately on the receipt. It is important to note that although the university is exempt from sales tax on purchases it makes for its own use, this does not relieve the university from its obligation to collect and remit sales tax on taxable transactions.
A purchaser must provide a valid copy of their Florida Consumer’s Certificate of Exemption (Form DR-14) in order to be exempt from sales tax. A copy of the organization’s IRS Determination letter confirming 501(c)(3) status is not acceptable for exempting a sale from Florida sales tax. Tax exempt purchases must be made with the purchasing entity’s funds and may not be made with the personal funds of the purchasing entity’s authorized representative. The department should retain either a physical or digital copy of the customer’s exemption certificate for a minimum of six fiscal years. Current tax rate information can be found at the Florida Department of Revenue website.
Anyone who engages in the business of selling communication services at retail in Florida is exercising a taxable privilege. Communication services include telecommunications, video, direct-to-home satellite, and related services. This definition includes voice, data, audio, video, or any other information or signals transmitted by any medium. As of July 1, 2015, the total Florida Communication Service Tax rate is 7.44%, in addition to a city/county rate that varies by location. Current tax rate information can be found at the Florida Department of Revenue website.
In addition to Florida sales tax, Tourist Development Tax is due on the total amount paid by a guest for the rental or lease of living quarters or accommodations in a hotel, motel, house, trailer camp, condominium, apartment, multi-unit structure, mobile home, trailer, single family home, or any other sleeping accommodations that are rented for a period of six months or less. Orange County Tourist Development Tax rate is 6%.
The university is no longer registered to do business in the state of Texas effective 12/31/2021. Therefore, beginning 1/1/2022 we should not collect sales tax on sales delivered to Texas.
Disclaimer: The University of Central Florida and its related organizations do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.