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