Were a youth-services nonprofit's thrift-store sales of donated clothing, household goods, appliances, and vehicles exempt from Florida sales tax?

Plain-English summary

Florida ruled that a nonprofit serving at-risk youth could sell donated property through its thrift stores without collecting sales tax.

The organization was a Florida Chapter 617 nonprofit and public charity providing family-centered services intended to prevent juvenile delinquency and support minors' character and educational development. Its stores directly sold donated clothing, household goods, appliances, and vehicles.

The cited exemption covered qualifying organizations' direct sales of donated property, defined as property transferred to the nonprofit for less than 50% of fair market value. The organization also held a valid Florida Consumer's Certificate of Exemption and had officers and directors, satisfying the reviewed requirements.

For vehicles or vessels, buyers could document the exemption on title applications using the nonprofit's exemption number and statutory notation.

What this means for you

Nonprofit status alone is not enough. The organization's primary purpose, corporate form, executive level, exemption certificate, source of the goods, and direct-sale role all matter.

Common questions

Were all thrift-store sales exempt? The ruling exempted the qualifying donated property directly sold by this organization.

Did vehicles qualify? Yes, with the title-application documentation described in the TAA.

Citations and references

• Fla. Stat. § 212.08(7)(l), as quoted and discussed in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 09A-060

Original ruling text

SUMMARY
QUESTION: Are the sales of donated property exempt from tax pursuant to Section
212.08(7)(l), F.S.
ANSWER: Taxpayer fulfills the requirements of Section 212.08(7)(l), F.S.; therefore, its sales
through its Thrift Stores are exempt.
November 20, 2009
XXX
XXX
XXX
XXX
Re:

Technical Assistance Advisement 09A-060
Sales & Use Tax – Sales of Donated Property
Section: 212.08(7)(l), Florida Statutes (F.S.)
Petitioner: XXX
XXX (hereinafter collectively “Taxpayer”)

Dear XXX:
This letter is a response to your petition dated October 8, 2009, for the Department's issuance of
a Technical Assistance Advisement (TAA) concerning the above referenced party and matter.
Your petition and the supplemental information have been carefully examined and the
Department finds them to be in compliance with the requisite criteria set forth in Chapter 12-11,
Florida Administrative Code. This response to your request constitutes a TAA and is issued to
you under the authority of Section 213.22, F.S.
FACTS
Taxpayer is a 501(c)(3) organization that works with at risk youth to prevent juvenile
delinquency through a broad range of family-centered services. Taxpayer qualifies to receive tax
deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522 of the Internal
Revenue Code. Taxpayer is a Type 1 supporting organization under Section 509(a)(3), of the
Internal Revenue Code as a Public Charity.
Taxpayer operates Thrift Stores that sell a variety of donated items such as, clothing, household
items, appliances, and vehicles.
REQUESTED ADVISEMENT
Whether Taxpayer falls under the exemption found in Section 212.08(7)(l), F.S., regarding the
sales of donated property through its Thrift Stores.

Technical Assistance Advisement
Page 2

APPLICABLE LAW
Section 212.08(7)(l), F.S., provides:
Organizations providing special educational, cultural, recreational, and social benefits
to minors.--Also exempt from the tax imposed by this chapter are sales or leases to and
sales of donated property by nonprofit organizations which are incorporated pursuant to
chapter 617 the primary purpose of which is providing activities that contribute to the
development of good character or good sportsmanship, or to the educational or cultural
development, of minors. This exemption is extended only to that level of the organization
that has a salaried executive officer or an elected nonsalaried executive officer. For the
purpose of this paragraph, the term "donated property" means any property transferred to
such nonprofit organization for less than 50 percent of its fair market value.
RESPONSE
Taxpayer is a Florida Non Profit Corporation that contributes to the development of good
character or good sportsmanship, or to the educational or cultural development, of minors, in
order to prevent delinquency and develop strong, lawful, resilient, and productive citizens who
will make a positive contribution to the community. Taxpayer is organized pursuant to Chapter
617, F.S., and has officers and directors.
The sale or lease of tangible personal property such as clothing, household items, appliances, and
vehicles by qualified tax-exempt organizations or institutions which hold a valid Consumer’s
Certificate of Exemption issued by the Florida Department of Revenue is exempt from Florida
sales and use tax when the tangible personal property has been donated to, and is sold directly
by, an organization providing special educational, cultural, recreational, and social benefits to
minors, as provided in Section 212.08(7)(l), F.S.
The purchaser of a vessel or vehicle from a qualified exempt organization may document the
exemption on any application for certificate of title to transfer ownership of the vehicle or vessel
filed with any County Tax Collector, any licensed Private Tag Agency, or the Department of
Highway Safety and Motor Vehicles. Under the “Sales Tax Exemption Certificate” section of the
application for certificate of title, the purchaser is required to include the organization’s Florida
Consumer’s Certificate of Exemption number and a notation under the “Other” exemption
category indicating the appropriate statutory provision for exemption.
CONCLUSION
Taxpayer fulfills the requirements of Section 212.08(7)(l), F.S.; therefore, its sales of donated

Technical Assistance Advisement
Page 3
property through its Thrift Stores are not subject to Florida’s Sales and Use Tax.
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 Section 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 10 days of the date of this
letter.
Sincerely,

Horace Royals
Senior Tax Specialist
Technical Assistance & Dispute Resolution

Record ID: 72564