When did Florida treat a rental vehicle as a surcharge-exempt truck rather than a passenger vehicle?

Plain-English summary

Florida used the vehicle's proper registration classification to decide whether it was a surcharge-exempt truck. A rental vehicle titled and registered as a truck under section 320.08(3) was not subject to the rental-car surcharge. A vehicle registered as a for-hire vehicle carrying fewer than nine passengers under section 320.08(6)(a) was subject to it.

The Department relied on the Department of Highway Safety and Motor Vehicles' classification, which in turn depended on the vehicle description in the manufacturer's statement of origin. A vehicle incorrectly registered for private use did not escape the surcharge when rented.

What this means for you

Body style or marketing labels were not the controlling test. A sport-utility vehicle could be treated as a passenger vehicle rather than a truck depending on its manufacturer description and registration.

Common questions

Q: Were all pickup trucks and SUVs automatically exempt? No. The ruling required the proper statutory registration classification.

Q: What if a rental vehicle was registered for private use? The Department said it remained subject to the surcharge because it should have been registered for hire.

Q: Whose classification did Revenue follow? The Florida Department of Highway Safety and Motor Vehicles.

Citations and references

• Fla. Stat. § 212.0606(1) — rental-car surcharge
• Fla. Stat. § 320.08(2), (3), (6)(a) — vehicle registration classifications
• Fla. Stat. § 319.21 — manufacturer's statement of origin
• Fla. Admin. Code r. 12A-16.002(1)(a) — surcharge scope
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 99A-055

Original ruling text

SUMMARY

QUESTION: What is meant by the term "truck" for purposes of
determining whether the rental car surcharge is applicable?

ANSWER - Based on Facts Below: Every motor vehicle leased
or rented by Taxpayer should be titled and registered by
the Department of Highway Safety and Motor Vehicles under
one of the subsections of s. 320.08, F.S. Section 320.08,
F.S., includes the following classifications of motor
vehicles that are relevant to this discussion: (3) TRUCKS;
and (6) MOTOR VEHICLES FOR HIRE. Paragraph (a) of
subsection (6) includes motor vehicles for hire that are
under nine passengers. If the vehicle is titled and
registered under s. 320.08(6)(a), F.S., it will be subject
to the rental car surcharge. If it is titled and
registered under s. 320.08(3), F.S., it will not be subject
to the surcharge.

Oct 14, 1999

Re: Technical Assistance Advisement 99A-055
Sales and Use Tax -- Rental Car Surcharge; Interpretation
of the Term "Truck"
Section 212.0606, F.S.; Rule Chapter 12A-16, F.A.C.
XXX ("Taxpayer")

Dear :

Your letter of July 27, 1999, requested a Technical Assistance
Advisement concerning the above referenced matter. This
response constitutes a Technical Assistance Advisement (TAA)
under Chapter 12-11, Florida Administrative Code, and is issued
to you under the authority of s. 213.22, Florida Statutes.

STATED FACTS

Taxpayer is a motor vehicle rental/leasing company. Taxpayer

provides motor vehicles to many different consumers. Vehicles
rented include passenger cars, passenger vans, pickup trucks,
cargo vans, and various sport utility vehicles.

REQUESTED ADVISEMENT

Taxpayer's request states the following:

Taxpayer requests interpretation of the state surcharge law
which applies to a "for hire passenger motor vehicle". The
law defines this as meaning 'any automobile designed to
carry fewer than nine passengers let or rented for
consideration'. It also says this does not include any
motorcycle, moped, truck, etc...".

Our specific question is, what is meant by the term "truck"
in this law.

APPLICABLE LAW

The following statutory and administrative law is relevant to
the issue under advisement:

Section 212.0606(1), F.S., dealing with the Rental Car
Surcharge, provides:

(1) A surcharge of $2.00 per day or any part of a day is
imposed upon the lease or rental of a motor vehicle
licensed for hire and designed to carry less than nine
passengers regardless of whether such motor vehicle is
licensed in Florida. The surcharge applies to only the
first 30 days of the term of any lease or rental. The
surcharge is subject to all applicable taxes imposed by
this chapter.

Rule 12A-16.002(1)(a), F.A.C., provides the general scope of the
rental car surcharge:

(1)(a)1. The lease or rental in Florida of a for hire
passenger motor vehicle is subject to a surcharge of $2.00
per day, or any part thereof, regardless of whether the

vehicle is licensed in Florida. For the purposes of this
rule, one day is defined as 24 consecutive hours.

2. The term "for hire passenger motor vehicle" means any
   automobile designed to carry fewer than nine (9) passengers
   let or rented to another for consideration; offered for
   lease or rent as a means of transportation for
   compensation; advertised; or generally held out as being
   for lease or rent. The term "for hire passenger motor
   vehicle" does not include any motorcycle, moped, truck,
   truck trailer, travel trailer, camping trailer,
   recreational vehicle with living facilities, or van
   conversion.

DETERMINATION

Rule 12A-16.002(1)(a)2., F.A.C., best illustrates the general
scope of the rental car surcharge. The statutory term, "motor
vehicle licensed for hire," is referred to in the rule as a "for
hire passenger motor vehicle." The term includes any automobile
designed to carry fewer than nine (9) passengers let or rented
to another for consideration; offered for lease or rent as a
means of transportation for compensation; advertised; or
generally held out as being for lease or rent. The term does
not include motorcycles, mopeds, trucks, truck trailers, travel
trailers, camping trailers, recreational vehicles with living
facilities, or van conversions.

The rule is not clear whether certain types of vehicles, such as
sport utility vehicles, are considered trucks, which are not
subject to the rental car surcharge, or rather for hire
passenger motor vehicles, which are subject to the rental car
surcharge. When making a determination whether a certain vehicle
is considered a "truck" or a "for hire passenger motor vehicle,"
the Department of Revenue relies upon the classifications by the
Department of Highway Safety and Motor Vehicles (DHSMV) to make
the determination. Section 320.08(6), F.S., includes in its
subsections the following classifications relevant to this
discussion: (3) TRUCKS; and (6) MOTOR VEHICLES FOR HIRE.
Paragraph (a) of subsection (6) includes motor vehicles for hire
that are under nine passengers.

The classification of a particular vehicle as a truck under
subsection (3) or as a for hire motor vehicle under nine
passengers under subsection (6)(a), depends upon the vehicle's
Manufacturer's Statement of Origin (MSO), which is required by
s. 319.21, F.S., to contain a description of the vehicle. For
example, many sport utility vehicles are considered to be
passenger vehicles, and not trucks on the MSO.

Every motor vehicle leased or rented by Taxpayer should be
titled and registered by DHSMV under one of the subsections of
s. 320.08, F.S. If the vehicle is titled and registered under
s. 320.08(6)(a), F.S., it will be subject to the rental car
surcharge. If it is titled and registered under s. 320.08(3),
F.S., it will not be subject to the surcharge. The Department
will respect the classification by DHSMV. However, a rental
vehicle titled as an "AUTOMOBILE FOR PRIVATE USE" under s.
320.08(2), F.S., will be subject to the rental car surcharge
when it is leased or rented, since such a vehicle should have
been registered as "for hire" motor vehicle.

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, 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.

Sincerely,

Ralph G. Pepe
Tax Law Specialist
Technical Assistance & Dispute
Resolution
(850) 922-4802

Control #: 38479