Was a palladium purchase exempt under Florida's precious-metals exemption in TAA 24A-014?

Plain-English summary

The sale or purchase of palladium was not exempt from Florida sales and use tax under the cited precious-metals provision.

The statute exempted qualifying transactions involving gold, silver, or platinum bullion. It did not list palladium, which the advisement treated as a separate and distinct metal. Because tax exemptions are strictly construed, the Department did not extend the exemption beyond the listed metals.

What this means for you

Similarity to an exempt precious metal did not suffice. The specific statutory list controlled.

Common questions

Was palladium covered by the bullion exemption? No.

Which metals did the cited provision list? Gold, silver, and platinum.

Was the palladium purchase taxable? Yes.

Citations and references

• Fla. Stat. §§ 212.02(19), 212.05, 212.055, and 212.08(7)(ww) and Fla. Admin. Code r. 12A-1.0371(3)(b)1., as cited in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 24A-014

Original ruling text

Florida Department of Revenue
Office of Technical Assistance

5050 West Tennessee Street Tallahassee FL 32399

Jim Zingale
Executive Director

floridarevenue.com

QUESTION: Is the sale/purchase of palladium exempt from Florida sales and use tax under the
provisions of s. 212.08(7)(ww), F.S., and Rule 12A-1.0371(3)(b)1. F.A.C.?
ANSWER: The sale/purchase of palladium is not exempt from Florida sales and use tax under the
provisions of s. 212.08(7)(ww), F.S., and Rule 12A-1.0371(3)(b)1. F.A.C.

December 3, 2024

Re:

Dear

Technical Assistance Advisement – TAA #: 24A(“Taxpayer”)
Sales and Use Tax – Sale/purchase of Palladium
Sections 212.02(19), 212.05, 212.055, 212.08(7)(ww), Florida Statutes - (“F.S.”)
Rule 12A-1.0371(3)(b)1., Florida Administrative Code - (“F.A.C.”)
BP #:
,

This is in response to your letter dated
, requesting this Department’s issuance
of a Technical Assistance Advisement (“TAA”) pursuant to Section(s.) 213.22, F.S., and Rule
Chapter 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 ADVISEMENT
Is the sale/purchase of palladium exempt from Florida sales and use tax under the provisions of
s. 212.08(7)(ww), F.S., and Rule 12A-1.0371(3)(b)1. F.A.C.?
FACTS

Technical Assistance Advisement
December 3, 2024
Page 2

On
, Taxpayer was invoiced1 by
, for
the purchase of three items. The quantity, item description, amounts per item, the subtotal, tax,
and total were indicated as follows:
Quantity Item

Price

As evidenced by the invoice provided, Taxpayer was only charged the 7% tax on the purchase of
the palladium.
LAW AND DISCUSSION
Unless a specific exemption applies3, 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 tangible personal
property4 in this state. For exercising such 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 in this state.
By definition, gold, silver, and palladium would be considered tangible personal property, and
any sale of such items would be subject to Florida sales and use tax, unless a specific exemption
applied.
Section 212.08(7)(ww), F.S., provides that the sale of gold, silver, or platinum bullion, or any
combination thereof, in a single transaction is exempt if the sales price exceeds $500. See also
Rule 12A-1.0371(3)(b)1. F.A.C.
1

Sales Order #
A registered Florida sales and use tax dealer.
3
The Department must point out that while taxing statutes are strictly construed against the taxing authority, statutes
that grant an exemption are strictly construed against the taxpayer. See Asphalt Pavers v. Dept. of Revenue, 584 So.2d
55 (Fla. 1st DCA 1991), at 57 (citing the rule that exemptions from tax are strictly construed against the taxpayer, with
any ambiguity resolved in favor of the administrative agency); State ex rel. Szabo Food Services Inc. v. Dickinson,
286 So.2d 529 (Fla. 1973) (“Exemptions to taxing statutes are special favors granted by the Legislature and are to be
strictly construed against the taxpayer.”). See also, United States Gypsum Co. v. Green, 110 So.2d 409 (Fla. 1959)
(also stating that exemptions from tax are strictly construed against the taxpayer) and Wanda Marine Corp. v. Dep’t
of Revenue, 305 So.2d 65, 69 (Fla. 1st DCA 1975).
4
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

Technical Assistance Advisement
December 3, 2024
Page 3

Metals are chemical elements - there are over ninety (90) metals in the Periodic Table. Gold,
silver, platinum and palladium are separate and distinct types of metals, including in their
appearance, melting point, density, and atomic number.
The statute and rule are clear on the types of metals and the circumstances that would qualify a
sale/purchase transaction for the exemption from Florida sales and use tax provided. The
exempt metals specified are gold, silver, and platinum. The exemption does not include
palladium. As stated above, exemptions are strictly construed against the taxpayer and in this
instance the plain language of the statute is clear as to what items are exempted.
CONCLUSION
The sale/purchase of palladium is not exempt from Florida sales and use tax under the provisions
of s. 212.08(7)(ww), F.S., and Rule 12A-1.0371(3)(b)1. F.A.C.
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 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)717-6735.
Sincerely,

Alan R. Fulton
Alan R. Fulton
Revenue Program Administrator I
Office of Technical Assistance

Technical Assistance Advisement
December 3, 2024
Page 4

CC:

Gary Gray, Taxpayer Rights Advocate
[email protected]

Record ID: 7001307007

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