Could a Florida resident buy a motor coach from a Florida dealer without Florida tax if delivery and the first six months of use occurred outside Florida?

Subject

Recreational Vehicle Delivered Outside the State of Florida

Plain-English summary

No Florida sales or use tax was due under the proposed out-of-state delivery and six-month use plan. The Florida dealer would deliver the motor coach outside Florida, title and possession would pass there, and the dealer and buyer would complete the required affidavit after delivery.

The buyer would register the coach and pay applicable tax and fees in North Carolina and would not bring it into Florida during the first six months. Under those facts, later temporary Florida trips or even later Florida registration did not create Florida tax.

What this means for you

The result required more than paper delivery. The contract, actual acceptance, affidavit, out-of-state registration, purchase intent, and full six-month absence from Florida all mattered.

Common questions

Q: Was tax due at purchase? No, with actual out-of-state delivery and acceptance.

Q: Could the coach enter Florida during the first six months? No.

Q: Could it be registered in Florida later? Yes, under the stated facts without triggering tax.

Citations and references

• Fla. Stat. § 212.02(15)(a) — sale and transfer of title or possession
• Fla. Stat. § 212.06(8)(a) and (10) — six-month use presumption and Florida registration
• Fla. Admin. Code r. 12A-1.007(7)(b) — out-of-state motor-vehicle delivery affidavit
• Fla. Stat. § 320.01(1)(b) — private motor coach definition
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 01A-033

Original ruling text

SUMMARY

Taxpayer is a Florida resident. Taxpayer maintains a
Florida driver's license and his primary residence is
located in the State of Florida. Taxpayer owns a vacation
home in North Carolina where he spends part of the year.
Taxpayer does not have a North Carolina driver's license
and has no intention of switching his primary residence
from Florida to North Carolina.

Taxpayer is interested in and is considering the purchase
of a private motor coach type recreational vehicle (as
those terms are defined in Section 320.01(1)(b) of the
Florida Statutes). The vehicle would be solely for
personal noncommercial uses and would be furnished complete
with sleeping, eating and bathroom facilities. Although
the vehicle would be purchased from a Florida dealer, the
contract will require and acceptance shall occur outside
the State of Florida.

Upon delivery of the vehicle outside the State of Florida,
Taxpayer and the Florida dealer will execute an affidavit
meeting the requirements of Section 12A-1.007(7)(b) of the
Florida Administrative Code stating that the vehicle was
delivered and accepted outside the State of Florida.

Taxpayer will pay all applicable fees and taxes in the
State of North Carolina including, but not limited to, the
North Carolina highway use tax and any property taxes due
and owing in that state. Taxpayer will register the
vehicle in North Carolina.

Under no circumstances will the Taxpayer bring this
recreational vehicle into the State of Florida within six
(6) months of purchase of the vehicle.

QUESTION 1: Is the purchase of this recreational vehicle
subject to Florida sales and use tax immediately upon
purchase?

ANSWER 1 - Based on Facts Below: Based on an assertion

that delivery and acceptance of the recreational vehicle
will occur outside the State of Florida, no Florida sales
and use tax is due. If delivery and acceptance of the
recreational vehicle is taken in a state other than Florida,
applicable taxes and fees may be due that state.

QUESTION 2: Will Taxpayer be subject to Florida sales and
use tax if in the future, but under no circumstances within
the first six (6) months after purchase, Taxpayer were to
bring the vehicle into the State of Florida for a limited
period of time, i.e., by driving it back and forth from his
vacation home to his primary residence in Florida?

ANSWER 2 - Based on Facts Below: Presuming the recreational
vehicle was not purchased for use in Florida and based on
an assertion that at no time within the first 6 months
after purchase will the recreational vehicle enter the
State of Florida along with the fact that the recreational
vehicle was properly registered in another state,
territory of the United States, or the District of
Columbia, no Florida sales and use tax will be due.

QUESTION 3: Will Taxpayer be subject to Florida sales and
use tax if in the future, but in no event within six (6)
months of the date of purchase, Taxpayer were to determine
that it is no longer in his best interest to maintain the
vehicle in North Carolina and bring the vehicle to Florida
and register it in this State?

ANSWER 3 - Based on Facts Below: Presuming the recreational
vehicle was not purchased for use in Florida and based on
an assertion that at no time within the first 6 months
after purchase will the recreational vehicle enter the
State of Florida, along with the fact that the
recreational vehicle was properly registered in another
state, territory of the United States, or the District
of Columbia, no Florida sales and use tax will be due.

Jun 18, 2001

Re: Technical Assistance Advisement 01A-033
Sales Tax
XXX ("Taxpayer")
Recreational Vehicle Delivered Outside the State of Florida
Section 212.02(15)(a), F.S.
Section 212.06(8)(a), F.S.
Section 212.06(10), F.S.
Rule 12A-1.007(7)(b), F.A.C.

Dear :

This is a response, styled a Technical Assistance Advisement, to
your letter dated April 11, 2001. You have asked the Florida
Department of Revenue to provide clarification and guidance on
an issue relating to the purchase of a recreational vehicle for
use outside the State of Florida. You presented the following
facts:

Taxpayer is a Florida resident. Taxpayer maintains a
Florida driver's license and his primary residence is
located in the State of Florida. Taxpayer owns a vacation
home in North Carolina where he spends part of the year.
Taxpayer does not have a North Carolina driver's license
and has no intention of switching his primary residence
from Florida to North Carolina.

Taxpayer is interested in and is considering the purchase
of a private motor coach type recreational vehicle (as
those terms are defined in Section 320.01(1)(b) of the
Florida Statutes) from XXX, a Florida dealer, whose address
is XX. The vehicle would be a custom motor carriage, 2002
model H3-45 S2, manufactured by XXX. The vehicle would be
solely for personal noncommercial uses and would be
furnished complete with sleeping, eating and bathroom
facilities. Although the vehicle would be purchased from a
Florida dealer, the contract will require and acceptance
shall occur outside the State of Florida. A copy of the
proposed contract is attached hereto as Exhibit "B."

Upon delivery of the vehicle outside the State of Florida,
Taxpayer and the Florida dealer will execute an affidavit
meeting the requirements of Section 12A-1.007(7)(b) of the
Florida Administrative Code stating that the vehicle was
delivered and accepted outside the State of Florida. A
copy of the proposed affidavit is attached hereto as
Exhibit "C."

Taxpayer will pay all applicable fees and taxes in the
State of North Carolina including, but not limited to, the
North Carolina highway use tax and any property taxes due
and owing in that state. Taxpayer will register the
vehicle in North Carolina.

Under no circumstances will the Taxpayer bring this
recreational vehicle into the State of Florida within six
(6) months of purchase of the vehicle.

Based on these facts, you ask the following questions:

1. Is the purchase of this recreational vehicle subject
   to Florida sales and use tax immediately upon
   purchase?

2. Will Taxpayer be subject to Florida sales and use tax
   if in the future, but under no circumstances within
   the first six (6) months after purchase, Taxpayer were
   to bring the vehicle into the State of Florida for a
   limited period of time, i.e., by driving it back and
   forth from his vacation home to his primary residence
   in Florida?

3. Will Taxpayer be subject to Florida sales and use tax
   if in the future, but in no event within six (6)
   months of the date of purchase, Taxpayer were to
   determine that it is no longer in his best interest to
   maintain the vehicle in North Carolina and bring the
   vehicle to Florida and register it in this State?

Discussion and Analysis of Law

In accordance with section 212.02(15)(a), F.S., a sale is
considered a Florida sale if either title or possession
transfers in Florida. If neither title nor possession passes in
Florida, there is no Florida sale and no Florida sales tax can
be attached to such sale. To document that neither title nor
possession passes in Florida, a dealer must have a copy of the
sales contract specifically stating where outside of Florida the
title will pass and documentation that delivery did not occur in
Florida. An affidavit attesting to these circumstances may be
found in Rule 12A-1.007(7)(b), F.A.C. This affidavit should be
completed after delivery of the motor vehicle.

For your benefit, section 212.02(15)(a), F.S., provides:

"Sale" means and includes:

(a) Any transfer of title or possession, or both, exchange,
barter, license, lease, or rental, conditional or
otherwise, in any manner or by any means whatsoever, of
tangible personal property for a consideration.

Florida law also addresses motor vehicle registrations with
respect to sales and use tax. Here, section 212.06(10), F.S.,
provides in part:

... A presumption of sales and use tax applicability is
created if the motor vehicle is registered in this
state....

Section 212.06(8)(a), F.S., provides an exemption from use tax
for tangible personal property that is used in another state for
a period of 6 months or longer before coming to the State of
Florida. Specifically, the law provides in pertinent part:

Use tax will apply and be due on tangible personal property
imported or caused to be imported into this state for use,
consumption, distribution, or storage to be used or
consumed in this state; provided, however,... it shall be
presumed that tangible personal property used in another
state, territory of the United States, or the District of
Columbia for 6 months or longer before being imported into

this state was not purchased for use in this state....
(emphasis supplied)

Department Response

Using the statutory and regulatory provisions cited above, the
Department can address each of your questions as follows:

1. Is the purchase of this recreational vehicle subject
   to Florida sales and use tax immediately upon
   purchase?

Answer: Based on your assertion that delivery and
acceptance of the recreational vehicle will occur
outside the State of Florida, no Florida sales and use
tax is due. Please be advised, however, that if
delivery and acceptance of the recreational vehicle is
taken in a state other than Florida, applicable taxes
and fees may be due that state.

2. Will Taxpayer be subject to Florida sales and use tax
   if in the future, but under no circumstances within
   the first six (6) months after purchase, Taxpayer were
   to bring the vehicle into the State of Florida for a
   limited period of time, i.e., by driving it back and
   forth from his vacation home to his primary residence
   in Florida?

Answer: Presuming the recreational vehicle was not
purchased for use in Florida and based on your
assertion that at no time within the first 6 months
after purchase will your client bring the recreational
vehicle into the State of Florida along with the fact
that the recreational vehicle was properly registered
in another state, territory of the United States, or
the District of Columbia, no Florida sales and use tax
will be due.

3. Will Taxpayer be subject to Florida sales and use tax
   if in the future, but in no event within six (6)
   months of the date of purchase, Taxpayer were to

determine that it is no longer in his best interest to
maintain the vehicle in North Carolina and bring the
vehicle to Florida and register it in this State?

Answer: Presuming the recreational vehicle was not
purchased for use in Florida and based on your
assertion that at no time within the first 6 months
after purchase will your client bring the recreational
vehicle into the State of Florida, along with the fact
that the recreational vehicle was properly registered
in another state, territory of the United States, or
the District of Columbia, no Florida sales and use tax
will be due.

This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S., which is binding on the Department only
under the facts and circumstances described in the request for
this advice as specified in s. 213.22, F.S. Our response is
predicated on those facts and the specific situation summarized
above. You are advised that subsequent statutory or
administrative rule changes or judicial interpretations of the
statutes or rules upon which this advice is based may subject
similar future transactions to a different treatment than
expressed in this response.

You are further advised that this response, your request and
related backup documents are public records under Chapter 119,
F.S., and are subject to disclosure to the public under the
conditions of s. 213.22, F.S. Confidential information must be
deleted before public disclosure. In an effort to protect
confidentiality, we request you provide the undersigned with an
edited copy of your request for Technical Assistance Advisement,
the backup material and this response, deleting names, addresses
and any other details which might lead to identification of the
taxpayer. Your response should be received by the Department
within 15 days of the date of this letter.

If you have any further questions with regard to this matter and
wish to discuss them, you may contact me directly at (850)9224729.

Sincerely,

Gary L. Gray
Tax Law Specialist
Technical Assistance & Dispute Resolution
Control No: 44965