How did Florida TAA 24A-006 tax current and former United States legal tender?

Plain-English summary

The Department drew a clear line between current and former United States legal tender.

Coins or currency currently used as United States legal tender were not subject to Florida sales and use tax, even when sold above face value or based on precious-metal content.

Coins or currency previously used as United States legal tender, but no longer current legal tender, were taxable when sold above face value or for their precious-metal content.

What this means for you

Collectible or bullion value did not remove the exemption for current United States legal tender. Former legal-tender status did not qualify an item for that exemption.

Common questions

Is current United States legal tender taxable when sold above face value? No.

Is former United States legal tender taxable? Yes, under the described sales.

Did precious-metal pricing change those answers? No.

Citations and references

• Fla. Stat. §§ 212.05, 212.0596, and 212.08(13) and Fla. Admin. Code r. 12A-1.0371(1)(b) and (3)(a)1., as cited in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 24A-006

Original ruling text

QUESTIONS:

1. Whether any coins or currency currently used as legal tender of the United States are subject
   to Florida sales and use tax when sold for an amount that exceeds their face value or sold
   based on their precious metal content?
2. Whether any coins or currency previously used as legal tender of the United States are subject
   to Florida sales and use tax when sold for an amount that exceeds their face value or sold
   based on their precious metal content?
   ANSWERS:
3. Coins or currency currently used in the United States as legal tender and sold for an amount
   that exceeds their face value or sold based on their precious metal content are not subject to
   Florida sales and use tax.
4. Coins or currency previously used in the United States as legal tender and sold for an amount
   that exceeds their face value or sold based on their precious metal content are subject to
   Florida sales and use tax.
   May 01, 2024

Via e-mail:
Re:

Dear

Technical Assistance Advisement – TAA #: 24A-006
. (“Taxpayer”)
Sales and Use Tax – Coins or Currency
Sections 212.05, 212.0596, and 212.08(13), Florida Statutes - (F.S.)
Rule 12A-1.0371(1)(b), (3)(a)1., Florida Administrative Code - (F.A.C.)
BP #:
Sales and Use Tax#
FEI#:
:

This is in response to your letter received
, requesting this Department’s issuance
of a Technical Assistance Advisement (“TAA”) pursuant to Section(s.) 213.22, F.S., and Rule Chapter

Technical Assistance Advisement
May 01, 2024
Page 2

12-11 F.A.C, Florida Administrative Code, regarding the matter discussed below. Your request 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.
REQUESTED ADVISEMENTS
Whether any coins previously or currently as legal tender of the United States are subject to Florida
sales and use tax when sold for an amount that exceeds their face value or sold based on their
precious metal content?
FACTS
Taxpayer is a
of bars, rounds, and coins.

and an online retailer of precious metals primarily compromised

Taxpayer is a registered Florida sales and use tax dealer. Taxpayer’s corporate office is located in the
state of
. Although Taxpayer does not have any physical presence in the State of Florida, it had
previously determined that it is considered a “dealer” engaging in remote sales of tangible personal
property into the state of Florida and meets the economic nexus thresholds set forth in s. 212.0596,
F.S. As such, Taxpayer is required to collect and remit sales tax on some of the products it sells to
residents located in Florida.
LAW AND DISCUSSION
Section 212.05(1)(j)1., F.S., provides:

1. Notwithstanding any other provision of this chapter, there is hereby levied a tax on
   the sale, use, consumption, or storage for use in this state of any coin or currency,
   whether in circulation or not, when such coin, or currency:
   a. Is not legal tender1;
   b. If legal tender, is sold, exchanged, or traded at a rate in excess of its face value; or
   c. Is sold, exchanged, or traded, at a rate on its precious metal content.
2. Such tax shall be at a rate of 6 percent of the price at which the coin or currency is
   sold, exchanged, or traded, except that, with respect to a coin or currency which is
   legal tender of the United States, and which is sold, exchanged, or traded such tax
   shall not be levied.
3. There are exempt from this tax exchanges of coins or currency which are in general
   circulation in, and legal tender of, one nation for coins or currency which are in
   1 “Legal tender” means coins or currency that, at the time of the sale transaction, a creditor would be required to accept in

payment of a debt. See, 12A-1.0371(1)(b), F.A.C.

Technical Assistance Advisement
May 01, 2024
Page 3

general circulation in, and legal tender of, another nation when exchanged solely for
use as legal tender and at an exchange rate based on the relative value of each as a
medium of exchange.

4. With respect to any transaction that involves the sale of coins or currency taxable
   under this paragraph in which the taxable amount represented by the sale of such
   coins or currency exceeds $500, the entire amount represented by the sale of such
   coins or currency is exempt from the tax imposed under this paragraph. The dealer
   must maintain proper documentation, as prescribed by rule of the department, to
   identify that portion of a transaction which involves the sale of coins or currency and
   is exempt under this subparagraph.
   As provided in Section 212.08(13), F.S., no transactions shall be exempt from the tax imposed by
   Chapter 212, F.S., except those expressly exempted therein.
   The Department’s interpretation of subsection 212.05(1)(j), F.S., is that subparagraph 1., levies
   Florida sales and use tax on the sale, use, consumption, or storage for use in Florida of any coins or
   currency, whether in circulation or not. However, subparagraph 2., provides that coins or currency
   which is legal tender of the United States, and which is sold, exchanged, or traded, such tax shall not
   be levied. What this language means in totality is that a specific exemption is exclusively provided
   for the sale of legal tender of the United States.
   For coins and currency that are legal tender of the United States, no Florida sales tax is imposed
   regardless of whether the sales price exceeds the face value. It does not matter whether the coins or
   currency are in circulation. This exemption specifically applies to United States coins or currency.
   For coins and currency that are not legal tender tax is imposed at the rate of 6% of the sales price,
   plus any applicable discretionary sales surtax, unless the coins or currency have a sales price that
   exceeds $500. When the sales price exceeds $500 for a single sale, the transaction is exempt from
   sales and use tax. See Rule 12A-1.0371(3)(a)1., F.A.C.
   CONCLUSIONS
   Coins or currency currently used in the United States as legal tender and sold for an amount that
   exceeds their face value or sold based on their precious metal content are not subject to Florida sales
   and use tax.
   Coins or currency previously used in the United States as legal tender and sold for an amount that
   exceeds their face value or sold based on their precious metal content are subject to Florida sales
   and use tax.
   This response constitutes a TAA 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

Technical Assistance Advisement
May 01, 2024
Page 4

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 TAA,
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
ten (10) 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)717-7759.
Sincerely,

Alesia Pride
Alesia Pride
Tax Law Specialist
Technical Assistance & Dispute Resolution

Record ID: 7001094769

Technical Assistance Advisement
May 01, 2024
Page 5

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