Was a portable lighting tower using solar panels and batteries exempt as a Florida solar energy system?

Plain-English summary

The Florida Department of Revenue concluded that the described portable lighting tower was not an exempt solar energy system.

The tower included solar modules, batteries, LED lights, inverters, a charge controller, a stand, and a trailer, and its charger could connect either to the solar panel or an electrical outlet. Its purpose was portable outdoor lighting, so the Department treated the complete product as a taxable lighting system that used solar components.

Solar modules, inverters, and charge controllers identified as eligible components could qualify for the solar exemption when sold or purchased separately.

What this means for you

Solar-product sellers

A product does not become an exempt solar energy system merely because it contains solar equipment. Classify the complete product by its purpose and certified components.

Accountants and tax professionals

Separate qualifying solar components from the taxable finished system when the transaction and product facts support separate treatment.

Common questions

Q: Was the complete portable lighting tower exempt?
A: No.

Q: Which listed components could qualify?
A: Solar modules, inverters, and charge controllers.

Citations and references

• Fla. Stat. §§ 212.02(19), 212.05, 212.055, 212.08(6), 212.08(7)(hh), and 213.22

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 15A-008

Original ruling text

Executive
Director
Marshall Stranburg

QUESTION: IS THE XXXX XXXX EXEMPT FROM FLORIDA SALES AND USE TAX UNDER
THE PROVISIONS OF S. 212.08(7)(HH), F.S., AS A SOLAR ENERGY SYSTEM?
ANSWER: THE XXXX XXXX IS NOT A SOLAR ENERGY SYSTEM AND, THEREFORE, IT IS
NOT EXEMPT FROM FLORIDA SALES AND USE TAX UNDER THE PROVISIONS OF S.
212.08(7)(HH), F.S.
June 10, 2015
Re:

Technical Assistance Advisement 15A-008
XXXX (“Taxpayer”)
Florida Sales and Use Tax
Exemption for Machinery and Equipment
Sections 212.05, 212.055, 212.08, Florida Statute (F.S.)
BP#: XXXX

Dear XXXX:
This letter is in response to your request dated XXXX, and received in this office on April 3, 2015, for
issuance of a Technical Assistance Advisement (“TAA”) pursuant to Section 213.22, F.S., and Rule
Chapter 12-11, F.A.C., concerning the taxability of machinery and equipment. An examination of your
request has established you complied with the statutory and regulatory requirements for issuance of a
TAA. Therefore, the Department is hereby granting your request for a TAA.
FACTS PRESENTED
Taxpayer is located in XXXX, Florida, and provides temporary lighting solutions to various types of
customers.
Taxpayer sells a temporary lighting system, the XXXX. This model provides a durable, reliable, portable
light and power source suitable for any situation or environment. The towers are outfitted with a photo
sensor that controls light on/off times, thus eliminating any operator interaction. Heavy duty construction
allows use of this tower in virtually any environment where portable lighting is required. The XXXX
model consists of the following: solar modules, AGM batteries, LED lights, inverter/charger, inverter,
charge controller, light stand, and trailer.

Child Support – Ann Coffin, Director  General Tax Administration – Maria Johnson, Director
Property Tax Oversight – Sue Harlan, Interim Director  Information Services – Damu Kuttikrishnan, Director

http://dor.myflorida.com/dor/
Florida Department of Revenue
Tallahassee, Florida 32399-0100

TAA
Page 2

REQUESTED ADVISEMENT
Is the XXXX exempt from Florida sales and use tax under the provisions of s. 212.08(7)(hh), F.S., as a
solar energy system?
APPLICABLE LAW AND DISCUSSION
Unless a specific exemption applies, s. 212.05, F.S., provides it is the legislative intent that every person is
exercising a taxable privilege that engages in the business of selling or repairing tangible personal
property1 in this state. For exercising such a privilege, a tax is levied on each taxable transaction or
incident. The tax is due and payable at the rate of 6 percent, plus any applicable surtaxes imposed under s.
212.055, F.S., on the total consideration received for each item or article of tangible personal property
when sold at retail or repaired in this state. Exemptions from tax are strictly construed against the
claimant. Wanda Marine Corp. v. Dep’t of Revenue, 305 So. 2d 65, 69 (Fla. 1st DCA 1975).
Section 212.08(7)(hh), F.S., provides that solar energy systems or any component thereof are exempt from
Florida sales and use tax. It further provides that the Florida Solar Energy Center shall from time to time
certify to the Department a list of equipment and requisite hardware considered to be a solar energy
system or a component thereof for the purposes of the exemption from tax.
Based on s. 212.08(7)(hh), F.S., the Department contacted the Florida Solar Energy Center for guidance
regarding a determination of whether the XXXX was a solar energy system. It was determined that the
XXXX would not be considered a solar energy system; however, certain components of the XXXX would
be considered solar equipment. The XXXX consists of a trailer, batteries, a set of adjustable LED lights, a
solar panel, and battery charger that can be connected to the solar panel or to an electrical outlet. The
purpose of an XXXX is to provide portable outdoor lighting for construction sites and outdoor events,
such as weddings or parties. In short, the XXXX is not a solar energy system, but rather a lighting system
that uses solar components (as well as electricity) to operate. The sale of an XXXX is subject to sales tax
and any applicable discretionary surtax, unless the sale is specifically exempt under another provision
within Chapter 212, Florida Statutes.2
Those components identified as eligible for tax exemption include the solar modules, inverters and charge
controllers. Thus, the sale or purchase of solar modules, inverters and charge controllers would be eligible
for tax exemption provided under s. 212.08(7)(hh), F.S.
CONCLUSION
The XXXX is not a solar energy system and; therefore, it is not exempt from Florida sales and use tax
under the provisions of s. 212.08(7)(hh), F.S.

1

Tangible personal property means and includes personal property which may be seen, weighed, measured, or touched or is in
any manner perceptible to the senses. See s. 212.02(19), F.S.
2
In prior contact with Taxpayer, it was indicated to the Department that sales of the XXXX would also be made to state and/or
local governments. For those sales, Section 212.08(6), F.S., may be applicable and warrant an exemption from tax.

TAA
Page 3

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 and 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.
Kind Regards,

Alan R. Fulton
Tax Law Specialist
Technical Assistance & Dispute Resolution
850-717-6735
ARF\st
Record ID: 193953