Did a farmer have to register as a Florida sales-tax dealer to buy crop-harvesting or farm-processing boxes tax-free?

Subject

Sale of Boxes to Farmers

Plain-English summary

A farmer did not have to register as a Florida sales-tax dealer to purchase qualifying boxes tax-free. Portable containers used for harvesting crops or processing farm products were exempt when the farmer signed the required certificate stating that the containers were exclusively for that use.

What this means for you

The exemption depended on the container's agricultural use and the signed certificate, not on the farmer obtaining a dealer-registration number.

Common questions

Which containers did the ruling cover? Portable boxes or containers used to harvest crops or process farm products.

Was an exemption certificate required? Yes.

Was a Florida sales-tax dealer number required? No.

Citations and references

• Fla. Stat. §§ 212.08(5)(a) and 213.22
• Fla. Admin. Code rr. 12A-1.039 and 12A-1.087(4), (7)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 94A-034

Original ruling text

Jun 10, 1994

Re: TAA 94A-034
Sale of Boxes to Farmers
Section 212.08(5)(a), F.S.
Rules 12A-1.039, 12A-1.087(4) and (7), F.A.C.

Dear :

This is in response to your recent telephone conversation
with Mr. Malcolm A. Craig of our Division in which you requested
the issuance of a technical assistance advisement based on your
letter to us dated April 26, 1994, Your letter asked whether or
not a farmer is required to register as a sales tax dealer with
the Department in order to receive a certificate number for
purposes of inserting same on an exemption certificate when
purchasing containers from your firm for tax exempt purposes.

APPLICABLE AUTHORITY

Section 212.08(5)(a), F.S., provides:

"(5) EXEMPTIONS; ACCOUNT OF USE."(a) Items in agriculture use and certain nets.-There are
exempt from the tax imposed by this chapter nets designed
and used exclusively by commercial fisheries; fertilizers;
insecticides; herbicides; and fungicides used for
application on crops or groves; portable containers used
for processing farm products; field and garden seeds;
nursery stock, seedlings, cuttings, or other propagative
material purchased for growing stock; cloth, plastic, and
other similar materials used for shade, mulch, or
protection from frost or insects on a farm; and liquefied
petroleum gas or other fuel used to heat a structure in
which started pullets or broilers are raised; however, such
exemption shall not be allowed unless the purchaser or
lessee signs a certificate stating that the item to be
exempted is for the exclusive use designated herein."

(Emphasis Supplied)

Rule 12A-1.087(4), F.A.C., clarifies the type of
certificate that must be used by the farmer to exempt the
purchase of boxes by requiring that it be as provided in Rule
12A-1.039, F.A.C. Additionally, Rule 12A-1.087(4), F.A.C.,
includes portable containers for harvesting crops or processing
farm products, such as boxes, within the list of exempt
agricultural supplies.

DEPARTMENT RESPONSE

The sale of portable containers used for harvesting crops
or processing farm products is exempt from tax when the farmer
signs a certificate in conformity with Rule 12A-1.039, F.A.C.,
stating that the items to be exempted are for the exclusive use
as provided in the certificate. The farmer is not required to
register with the Department as a sales and use tax dealer in
order to obtain a certificate number for insertion on the
exemption certificate when making purchases of containers for
harvesting crops or processing farm products from your firm.

Enclosed are copies of the rules cited in our response.

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
are public records under Chapter 119, F.S., which are subject to
disclosure to the public under the conditions of s. 213.22, F.S.
Your name, address, and any other details which might lead to
identification of the taxpayer must be deleted by the Department
before disclosure. In an effort to protect the confidentiality

of such information, we request you notify the undersigned in
writing within 15 days of any deletions you wish made to the
request or the response.

Sincerely,

Richard S. Harrod
Technical Assistant
RSH/h
Control No. 15815
Enclosures