Were a food-service equipment supplier's lounge and medical-center contracts taxable sales or real-property improvement contracts?

Subject

Real Property Improvements, Food Service Equipment Installation

Plain-English summary

The lounge and medical-center contracts were taxable sales of tangible personal property, so the supplier had to charge sales tax in addition to the contract price. The supplier furnished and set food-service equipment in place but did not perform the final plumbing or electrical work that would affix the main appliances to the buildings.

The lounge contract included stainless-steel wall shelves and flashing that the supplier appeared to install as real-property improvements, making it a mixed contract. Even so, the equipment sales predominated. The medical-center documents limited installation to uncrating, reassembly, setting in place, and operational checkout, so that contract also remained a sale of equipment.

What this means for you

Custom sizing, delivery, and placing equipment at a job site did not alone make the supplier a real-property contractor. The Department focused on who actually attached the items and on the predominant nature of each contract.

Common questions

Q: Were both contracts taxable retail sales? Yes.

Q: Did custom-fabricated equipment automatically become a real-property improvement? No.

Q: Why was the lounge project a mixed contract? The supplier appeared to install some wall shelves and flashing as improvements while selling the main equipment.

Q: What controlled the mixed-contract treatment? Whether real-property improvement work or tangible-property sales predominated.

Citations and references

• Fla. Stat. § 212.06(14) — real property and fixtures
• Fla. Admin. Code r. 12A-1.051 — real-property contractors and mixed contracts
• Fla. Stat. § 212.08(h)2.b. — installation of tangible personal property, as cited in the advisement
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 01A-060

Original ruling text

SUMMARY

QUESTION: Taxpayer requests whether the installation of
certain food service equipment should, for sales tax
purposes, be treated as improvements to real property or as
sales of tangible personal property.

ANSWER - Based on Facts Below: The determination whether an
item is a fixture or real property improvement depends upon
review of all the facts and circumstances of each
situation. Among the relevant factors that determine
whether a particular item is a fixture are the method of
attachment, intent of the property holder in having the
item attached, real property law, customization, permits or
licensing and any legal agreements. A review of the
contract involved it was the Departments determination and
the installation of the food service equipment was the
installation of tangible personal property.

Sep 26, 2001

Re: Technical Assistance Advisement 01A-060
Sales and Use Tax - Food Service Equipment Installation
Sections: 212.02, 212.06, F.S.Rule: 12A-1.051, F.A.C.
Petitioner: XXX (herein "Taxpayer")
FEI: XX

Dear :

This letter is a response to your petition dated March 13, 2001,
for the Department's issuance of a Technical Assistance
Advisement ("TAA") concerning the above referenced party and
matter. Your petition has been carefully examined and the
Department finds it to be in compliance with the requisite
criteria set forth in Chapter 12-11, F.A.C. This response to
your request constitutes a TAA and is issued to you under the
authority of s. 213.22, F.S.

FACTS

Your petition provides the following information:

... (T)axpayer provides and installs food service equipment
either to general contractors for new construction or
renovation, or to the owners of the underlying real
property for new construction or renovation of real
property.

Included with your petition is the bidding documentation,
details of the scope of work, cost sheets used in the
preparation of quotations, and bids for two projects performed
by Taxpayer. One project is a lounge in a hotel; the other is a
medical center. This documentation and these projects are
purported to be representative of Taxpayer's customary projects.

Lounge Project

The lounge project in the hotel calls for Taxpayer to provide
and (partially) install the following equipment: trash
receptacle; hand sink, cleaning faucet, mirror, and supports;
work counter with sink, and two faucets; two stainless steel
wall shelves; glass rack shelf; two under counter dish machines;
three stainless steel corner guards; work counter; microwave;
towel dispenser; counter top convection oven; stainless steel
wall flashing; glass door refrigerator; three under counter pass
through refrigerators; refrigerator cold pans; two induction
ranges; remote refrigerator rack. While most of the items are
obtained from other manufacturers or vendors, the following
items are custom fabricated by the Taxpayer: supports for hand
sink; work counter with sink; stainless steel wall shelves;
glass rack shelf; work counter; stainless steel wall shelves;
stainless steel wall flashing; three under counter pass through
refrigerators. Additionally, Taxpayer is to remove, clean, and
relocate the following equipment: ice storage shelving; cube ice
maker; mobile transport cart; water filter; pastry cart;
espresso maker.

Section 1.04 of the contract describes the work included in the
contract. The kitchen equipment contractor (Taxpayer) is to
"(f)urnish any and all labor, material and services necessary

for installation of food service equipment...." The kitchen
equipment contractor is also responsible for the following
relevant items and tasks: indirect waste piping (except sinks,
cooler/freezer assemblies and ventilators) to floor sinks;
cutting of holes in equipment for pipe, drains, electric
outlets, etc., as required for this installation; all work
involved in making stands and supports for all equipment
requiring them; and refrigerant, fittings, dryers, pipe
insulation, etc.

Section 1.05 of the contract describes the work not included in
the contract, which work is separated into four categories. In
the General Construction category, work not included in the
contract consists of the following: all floor assemblies; all
wall/partition assemblies; all ceiling assemblies; all roof
assemblies; all structural supports, materials and grounds for
hanging ceiling mounted and wall mounted items of foodservice
equipment assemblies.

In the Plumbing category, work not included in the contract
consists of the following: water, gas and steam supply systems;
sanitary drainage system; final plumbing connections including
mounting of drains, faucets and piping from point of connection
on equipment to building plumbing systems and interconnections
between equipment components; all plumbing materials; grease
traps; indirect condensate drain lines from walk-in
cooler/freezer assemblies and refrigeration units to drains;
mechanical/electrical gas shut off valves; all gas and water
piping materials including pipe, traps, valves, pressure
reducing valves and unions from point of connection on
equipment, interconnections between equipment and connection to
utility distribution system and to building gas and water
system; empty PVC conduit systems with pull boxes for beverage
and refrigeration systems.

In the HVAC category, work not included in the contract consists
of the following: ventilation ductwork, fans and final
connections to and from exhaust ventilators, dishwashers and
condensate hoods; all heating, ventilating and air conditioning
systems except as otherwise specified in the contract.

In the Electrical category, work not included in the contract
consists of the following: all electrical distribution, lighting
and power systems except as otherwise specified; final
electrical connections including wiring from point of connection
on equipment to building electrical systems and interconnections
between equipment components; all electrical materials; shunttrip breakers and/or contactors and all conduit and wire for
shut down of electrically operated cooking equipment; exhaust
fans, supply fans, interlocks, motor starters, disconnect
switches, fan controls, switches and interconnect wiring and
conduit; empty E.M.T. conduit systems for beverage and
refrigeration systems; empty conduit system for point-of-sale
register.

Medical Center Project

The medical center project calls for Taxpayer to provide and
(partially) install the following equipment: five four-tier
storage shelving racks; walk-in cooler, evaporator coil, and
remote refrigeration system; mobile utility racks; four-tier
mobile pot rack; hand sink with soap and towel dispenser; work
table with sink; mobile proofer/heater; eight four-tier storage
shelving racks; walk-in cooler, evaporator coil, and remote
refrigeration system; freezer assembly, evaporator coil, and
remote refrigeration system; compressor storage rack; three
dunnage racks; five four-tier storage shelving units; four
dunnage racks; seven four-tier track storage shelving racks; two
utility storage racks; two mobile work tables; two three-door
reach in refrigerators; two utility storage racks; two mobile
work tables; two-door reach in freezer; 28 four-tier storage
shelving racks; six dunnage racks; three mobile can storage
racks; one compressor storage rack. While most of the items are
obtained from other manufacturers or vendors, the following
items are custom fabricated by the Taxpayer: work table with
sink; two compressor racks; four mobile work tables.
Additionally, Taxpayer is to relocate the following equipment:
disposer control panel; disposer; pre-rinse assembly; pot sink;
two work tables.

Section 1.02 A. describes the scope of the work. The work
included in the food service section of the contract consists of

the following relevant items and tasks: furnishing all labor,
materials, equipment and services necessary for the completion
of the food service equipment work covered by the specifications
of the food service equipment section of the contract;
furnishing, delivering, and setting in place ready for
connection to services by others all items of food service
equipment; cutting all holes and ferrules on equipment for
piping, drains, electric outlets, etc., required for the
coordination and/or connection of the equipment covered by the
food service equipment section of the contract with the work of
others.

Section 1.02 B. describes the work not included in the food
service equipment section of the contract. The work not
included in the food service equipment section of the contract
is divided into several categories: electrical, plumbing,
ventilators and/or hoods, raised concrete floors and floor
depressions, and quarry tile.

In the Electrical category, work not included in the contract
consists of the following: furnishing and installing all
roughing in wiring for all items of food service equipment shown
in rough-ins and points of connection to the equipment;
furnishing and installing all wall receptacles shown on the
plans with receptacles to match the plugs on the food service
equipment; furnishing and installing all disconnect switches
between the roughing in points and the points of connection on
the equipment.

In the Plumbing category, work not included in the contract
consists of the following: furnishing and installing all
plumbing roughing in for all items of food service equipment;
furnishing and installing all hot and cold water piping between
roughing in and points of connection with the equipment;
installing faucets, vacuum breakers and other devices furnished
under the food service equipment section of the contract at
sinks, tables, etc., and making final connections thereto;
furnishing and installing all waste piping and making final
connections to drain outlets on sinks, disposers, dishwashers,
etc.

In the Ventilators and/or Hoods category, work not included in
the contract consists of ventilation ductwork including final
connections to the hood and ventilators.

Raising the concrete floors, making floor depressions, and the
quarry tile are covered by sections of the contract other than
the food service equipment section.

Documentation provided in connection with the medical center
project included a letter from Taxpayer to the General
Contractor, which letter states in regards to installation of
the food service equipment in pertinent part as follows:

Prices include uncrating, re-assembly and setting in place
as well as operational check-out. We will not do any
electrical wiring for lights or refrigeration system. All
drain lines and water lines are to be run by the plumbing
trades(,) not (Taxpayer). Assembly of the walk-in
cooler/freezer is included with the specified
refrigeration. We will run and charge all refrigeration
lines.

Plumbing, electrical and mechanical accessories will be
furnished only if they come from the factory as an integral
built-in part of the equipment itself. We will provide no
ductwork. All utility installation and connections between
and beyond equipment including control wiring shall be by
and the responsibility of the related trades(,) not
(Taxpayer).

Unless specifically noted above, our price does not include
any removal, repair or relocation of existing equipment.
Any quarry tile work is by others.

REQUESTED ADVISEMENT

Taxpayer requests advice as to the tax treatment of these
projects, specifically whether they are classed as improvements
to real property or as sales of tangible personal property.

TAXPAYER'S POSITION

Your petition relates the following as the taxpayer's position
on the taxability of the subject contracts:

The taxpayer believes that it should be treated as a
contractor who repairs, alters or improves and constructs
real property within the meaning of Rule 12A-1.051 of the
Florida Administrative Code in connection with the two
referenced contracts and the other projects it undertakes.
It does appear that the taxpayer's contracts may constitute
"mixed contracts" within the meaning of Rule 12A-1.051(8)(,
F.A.C.), however, as its contracts may also include
materials and labor that are not real property
improvements. Most of the items installed by the taxpayer
have to be custom made, and are anchored, secured, and
connected to electrical and plumbing lines and are also
caulked to the other parts of the real property. Thus,
most of the taxpayer's work become(s) fixtures within the
meaning of Rule 12A-1.051(2)(c)1.(, F.A.C.) As noted in
Rule 12A-1.051(2)(c)3(.)d(., F.A.C.), because its items are
custom designed or custom assembled to be attached in a
particular space, they are more likely to be classified as
fixtures.

The contracts the taxpayer enters into occasionally include
items, such as trash cans, that constitute tangible
personal property. As noted in Rule 12A-1.051(8)(a)(,
F.A.C.), "if the predominant nature of a mixed contract is
a contract for real property improvements, taxability will
be determined as if the contracts were entirely for real
property." Thus, based on the type of equipment referenced
in the two contract examples included herewith, the
taxpayer believes that, even if the contracts are "mixed
contracts," its work still constitutes improvement(s) to
real property and the taxpayer should be properly paying
use tax on the items of tangible personal property used in
fulfilling the contracts.

LAW AND DISCUSSION

Section 212.06(14), Florida Statutes, provides:

(14) For the purpose of determining whether a person is
improving real property, the term:

(a) "Real property" means the land and improvements thereto
and fixtures and is synonymous with the terms "realty" and
"real estate."

(b) "Fixtures" means items that are an accessory to a
building, other structure, or land and that do not lose
their identity as accessories when installed but that do
become permanently attached to realty. However, the term
does not include the following items, whether or not such
items are attached to real property in a permanent manner:
trade fixtures; property of a type that is required to be
registered, licensed, titled, or documented by this state
or by the United States Government, including, but not
limited to, mobile homes, except mobile homes assessed as
real property; or machinery or equipment. For an item to be
considered a fixture, it is not necessary that the owner of
the item also own the real property to which it is
attached.

(c) "Improvements to real property" includes the activities
of building, erecting, constructing, altering, improving,
repairing, or maintaining real property. (Emphasis
Supplied)

Rule 12A-1.051, Florida Administrative Code, provides in
pertinent part:

(2)(c)1. "Fixture" means an item that is an accessory to a
building, other structure, or to land, that retains its
separate identity upon installation, but that is
permanently attached to the realty. Fixtures include such
items as wired lighting, kitchen or bathroom sinks,
furnaces, central air conditioning units, elevators or
escalators, or built-in cabinets, counters, or lockers.

2. In order for an item to be considered a fixture, it is
   not necessary that the owner of the item also own the real

property to which the item is attached. A retained title
provision in a sales contract or in an agreement that is
designated as a lease but is in substance a conditional
sales contract is not determinative of whether the item
involved is or is not a fixture. Similarly, the fact that a
lessee or licensee of real property rather than the
lessor/owner enters into a contract for an item to be
permanently attached to the real property does not prevent
that item from being classified as a fixture.

3. The determination whether an item is a fixture depends
   upon review of all the facts and circumstances of each
   situation. Among the relevant factors that determine
   whether a particular item is a fixture are the following:

a. The method of attachment. Items that are screwed or
bolted in place, buried underground, installed behind
walls, or joined directly to a structure's plumbing or
wiring systems are likely to be classified as fixtures.
Attachment in such a manner that removal is impossible
without causing substantial damage to the underlying realty
indicates that an item is a fixture.

b. Intent of the property holder in having the item
attached. If the property holder who causes an item to be
attached to realty intends that the item will remain in
place for an extended or indefinite period of time, that
item is more likely to be a fixture. That intent may be
determined by reviewing all of the property holder's
actions in regard to the item, including how the item is
treated for purposes of ad valorem and income tax purposes.
For example, if a property owner reports the value of the
item for purposes of ad valorem taxation of the realty and
depreciates the item for tax and financial accounting
purposes as real property, that indicates an intent that
the property is permanently attached as a fixture.

c. Real property law. If an interest in an item arises upon
acquiring title to the land or building, the item is more
likely to be considered a fixture. For example, if the
seller of real property would be expected to leave an item

behind when vacating the premises for a new owner without
the contract specifically requiring that it be left, that
item is likely to be classified as a fixture.

d. Customization. If items are custom designed or custom
assembled to be attached in a particular space, they are
more likely to be classified as fixtures. Customization
indicates intent that the items are to remain in place
following installation.

e. Permits and licensing. If installation of an item
requires a construction permit or licensing of the
contractor under statutes or regulations governing the
building trades, that item is more likely to be regarded as
a fixture.

f. Legal agreements. The terms of any purchase agreement,
deed, lease, or other legal document pertaining
specifically to an item may be relevant in determining
whether that item is a fixture of real property.

The foregoing list of factors relevant to determining
whether an item is a fixture is intended to be illustrative
only. Additional factors may exist in any particular case,
and the weight to be given to the factors will also vary in
each case.

4. The term "fixture" does not include the following items,
   whether or not such items are attached to real property in
   a permanent manner:

a. Trade fixtures.

b. Titled property.

c. Machinery or equipment.

(e)1. "Machinery or equipment" means and includes property
that:

a. Is intended to be used in manufacturing, producing,

compounding, processing, fabricating, packaging, moving, or
otherwise handling personal property for sale or other
commercial use, in the performance of commercial services,
or for other purposes not related to a building or other
fixed real property improvement; and

b. May, on account of its nature, be attached to the real
property but which does not lose its identity as a
particular piece of machinery and equipment.

2. "Machinery or equipment" generally does not include
   junction boxes, switches, conduits, wiring, valves, pipes,
   and tubing incorporated into the electrical, cabling,
   plumbing, or other structural systems of fixed works,
   buildings, or other structures, whether or not such items
   are used solely or partially in connection with the
   operation of machinery and equipment.

3. "Machinery or equipment" serves a particular commercial
   activity that is carried on at a location rather than
   serving general uses of land or a structure. Examples of
   machinery or equipment include conveyor systems, printing
   presses, drill presses, or lathes. Examples of items that
   are not machinery or equipment because they are integrated
   into the structure or realty and retain their usefulness no
   matter what activity is carried on at the site include
   heating and air conditioning system components or water
   heaters. Any property that would be classified as machinery
   or equipment under section 212.08(5), Florida Statutes, or
   any other provision of Chapter 212, Florida Statutes, is
   considered to be machinery or equipment for purposes of
   this rule. In the case of property used in the production
   of electrical or steam energy, any item that would qualify
   as exempt machinery or equipment under section
   212.08(5)(c), Florida Statutes, is considered to be
   machinery or equipment for purposes of this rule.

(h)1. "Real property contract" means an agreement, oral or
written, whether on a lump sum, time and materials, cost
plus, guaranteed price, or any other basis, to:

a. Erect, construct, alter, repair, or maintain any
building, other structure, road, project, development, or
other real property improvement;

b. Excavate, grade, or perform site preparation for a
building, other structure, road, project, development, or
other real property improvement; or

c. Furnish and install tangible personal property that
becomes a part of or is directly wired or plumbed into the
central heating system, central air conditioning system,
electrical system, plumbing system, or other structural
system that requires installation of wires, ducts,
conduits, pipes, vents, or similar components that are
embedded in or securely affixed to the land or a structure
thereon.

2. The term "real property contract" does not include:

a. A contract for the sale or for the sale and installation
of tangible personal property such as machinery and
equipment; or

b. A contract to furnish tangible personal property that
will be installed or affixed in such a way as to become a
fixture or improvement to real property if the person
furnishing the property has not also contracted to affix or
install it.

3. A contract is a real property contract if described in
   subparagraph 1. above, whether or not such agreement also
   involves providing property or services that would not be
   considered improvements to real property. See subsection
   (8) of this rule for discussion of such contracts.

(j) "Trade fixtures" means items that are attached to real
property by the operator of a trade or business that
occupies the premises and are useful solely in connection
with or to facilitate that trade or business, rather than
serving functions integral to general use of land or a
building. For example, the operator of a bakery has a

special glass display counter installed for displaying
cookies and doughnuts. The counter would not be useful to a
different type of retail business because of the shelving
configuration and materials used. The counter is bolted to
the floor. The counter is a trade fixture and not a fixture
of the realty. If the bakery has a sign installed to
identify the location by name of the business, that sign is
a trade fixture. If the same bakery operator has built-in
storage shelving installed in a supply room or overhead
lighting installed in the shop area, those items are not
trade fixtures because the shelving and lighting are
equally functional for any subsequent user of the premises.

(8) Mixed contracts. A real property contract may also
include materials and labor that are not real property
improvements. A contract that includes both real property
work and tangible personal property is referred to in this
subsection as a mixed contract. A mixed contract is not the
same as a contract described in paragraph (3)(d) of this
rule. Paragraph (3)(d) deals with a real property contract
in which the contractor separately itemizes and prices all
the materials that will be incorporated as part of the real
property. A mixed contract is one that involves a real
property improvement, maintenance, or repair and also
involves providing tangible personal property that remains
tangible personal property and does not become part of the
real property. In the case of a mixed contract, taxability
depends upon the predominant nature of the work performed
under the contract and upon the contract terms.

(a) If the predominant nature of a mixed contract is a
contract for real property improvements, taxability will be
determined as if the contract were entirely for real
property. For example, a residential developer routinely
provides some items of tangible personal property, such as
free standing appliances, with new homes sold under costplus contracts. The predominant nature of the contract is
for a dwelling. The developer should pay sales or use tax
on the appliances. A contractor constructs a factory under
a turnkey contract that includes providing and installing
machinery and equipment that is not exempt from sales and

use tax. The contract is predominantly for a factory, a
real property improvement, and the contractor should pay
use tax on the cost of the machinery and equipment. No tax
is collected from the property owner in either case, even
though some tangible personal property is included in the
project.

(b) If the predominant nature of a mixed contract is a
contract for tangible personal property, taxability of the
contract will be determined as if the contract were
entirely for tangible personal property. For example, a
vendor of a mechanical conveyor system for a warehouse
provides reinforced concrete foundations and embeds steel
plates in the concrete to permit installation of the
equipment by bolting it to the plates. The contract is
predominantly for the sale of equipment. The contractor
should buy the equipment, concrete, and steel plates using
a resale certificate and charge tax on the full price
charged to the customer.

(c) The determination of the predominant nature of a
contract will depend upon the facts and circumstances of
each case. Consideration will be given to the description
of the project and the responsibilities of the contractor
as set forth in the contract. Consideration will also be
given to the relative cost of performance of the real
property and tangible personal property components of the
contract.

(d) If a mixed contract clearly allocates the contract
price among the various elements of the contract, and such
allocation is bona fide and reasonable in terms of the
costs of materials and nature of the work to be performed,
taxation will be in accordance with the allocation. For
example, a residential developer builds and sells a home on
a cost plus basis, but the contract provides separately
stated prices for the sale and installation of certain
optional free standing appliances that are tangible
personal property and are not classified as real property
fixtures. The contractor may purchase those appliances
using a resale certificate and charge sales tax on the

price paid for the appliances, including installation, by
the home buyer. The contractor is responsible for paying
tax on all the materials that are included in the cost plus
price of the home, other than the separately itemized
appliances. Similarly, a manufacturer who sells and
installs a mechanical conveyor system in a warehouse could
state a separate charge in the contract for providing
reinforced concrete with embedded steel plates in the
warehouse floor to support the conveyor. The conveyor
system is machinery or equipment and is therefore tangible
personal property. The concrete and plates would be
considered a real property improvement. The contractor
should pay tax on the materials used for the real property
part of the contract and not charge tax to the customer on
the related charge. The customer should pay tax on the rest
of the contract price allocable to the conveyor machinery
itself.... (Emphasis Supplied)

The first determination to be made is whether the contracts in
question are real property contracts. In order for a contract
to be considered a real property contract, items of tangible
personal property must be installed in such a way as to become a
fixture or improvement to the real property by the person
furnishing the tangible personal property. If items are
installed by someone other than the person furnishing the
equipment, then the furnisher of the equipment is not improving
the real property, even though the items may be considered a
fixture once the installation is complete.

In the example contracts, Taxpayer does not perform the
electrical or plumbing installation of any of the equipment. In
the case of refrigerators and similar appliances, it appears
that no other function is performed to attach these items to the
real property. Since Taxpayer is not attaching these items to
the real property, Taxpayer sells these items as tangible
personal property. No determination is made with respect to
these items as to whether they become fixtures upon
installation, or whether they remain tangible personal property
because they are classified as trade fixtures.

The lounge project includes items described as "stainless steel

wall shelves" and "stainless steel wall flashing." It appears
from the terms of the contract that Taxpayer may install these
items to the real property. Additionally, these items are in
the nature of real property improvements once they are attached.
Therefore, the lounge project is considered a mixed contract.
The determination as to the taxability of a mixed contract is
based on the predominant nature of the contract. If the
predominant nature of the contract is that of a real property
improvement contract, then the entire contract will be taxed as
a real property improvement. Likewise, if the predominant nature
of the contract is that of a sale of tangible personal property,
then the entire contract will be taxed as a sale of tangible
personal property. In determining what the predominant nature
of the contract is, we view the sale by the taxpayer of
refrigerators and other similar appliances as sales of tangible
personal property because the taxpayer has not contracted to
affix or install the appliances. See Section 212.08(h)2.b.,
Florida Statutes.

The medical center project documentation specifically states
that the installation of equipment includes only "uncrating, reassembly, setting in place, and operational check-out." In
determining what the predominant nature of the contract is, we
view the sale by the taxpayer of the equipment as sales of
tangible personal property because the taxpayer has not
contracted to affix or install the equipment. See Section
212.08(h)2.b., Florida Statutes.

CONCLUSION

The lounge project and the medical center project are sales of
tangible personal property. Tax should be charged and collected
on each contract in addition to the contract price.

This response constitutes a Technical Assistance Advisement
under Section 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 Section 213.22, F.S. Our
response is predicated upon 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 from that which is 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.

Sincerely,

Sara D. Faulkenberry
Tax Law Specialist
Technical Assistance and Dispute Resolution
850/414-9838

Control #44420