What did the original TAA 99A-070 say about Florida recreational-vehicle exports, nonresident sales, fuel, and fees?

Plain-English summary

This original recreational-vehicle ruling was replaced by revised TAA 99A-070R dated July 16, 2003. Use the revised advisement for the Department's updated explanation.

The original addressed dealer documentation for exports and direct out-of-state delivery, Indiana and other nonresident purchases, Florida's partial exemption, propane used in RVs, and new-tire and lead-acid-battery fees. Its opening expressly directs readers to the revised ruling.

What this means for you

Do not rely on the original's procedures without checking TAA 99A-070R. Export contracts, carrier or exporter records, delivery affidavits, nonresident forms, reciprocity, and fee invoicing are detail-sensitive and were later revised.

Common questions

Q: Is this the Department's final version? No.

Q: Which ruling replaced it? TAA 99A-070R.

Q: What subjects did the original cover? RV exports, out-of-state delivery, nonresident sales, propane, and tire and battery fees.

Citations and references

• Fla. Stat. §§ 212.05, 212.06, and 212.08 — sales, export, fuel, and nonresident provisions cited in the original
• Fla. Stat. §§ 403.718 and 403.7185 — tire and battery fees cited in the original
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 99A-070

Original ruling text

See Revised TAA 99A-070R Dated July 16, 2003
SUMMARY

QUESTION: What documentation is required for the purchase
to be exempt from sales tax when the buyer hires the
transport company to deliver a recreational vehicle to
Canada or another country? When the dealer hires the
transport company? When the dealer delivers the vehicle?

ANSWER - Based on Facts Below: The dealer must have a sale
contract requiring the delivery of the vehicle to a common
carrier or licensed exporter. The dealer, not the buyer,
must deliver the vehicle to a common carrier or licensed
exporter. The dealer must have the necessary documentation
from the common carrier or licensed exporter.

The documentation is the same when the dealer hires the
transport company to export the vehicle.

The sales contract must require the dealer to deliver the
vehicle outside the state. The dealer must obtain, and
retain, the affidavit for delivery outside of Florida after
the vehicle is delivered. An affidavit for delivery
outside of Florida obtained before delivery of the vehicle
does not fulfill the requirements of Rule 12A-1.007(7),
F.A.C.

QUESTION: How may a resident of Indiana, a state that does
not give credit for tax paid in Florida, purchase a
recreational vehicle in Florida and not pay double taxes?

ANSWER - Based on Facts Below: A resident of Indiana may
avoid paying taxes in both Indiana and Florida by meeting
the requirements for Florida's export exemption or by the
sale not taking place in Florida. For the sale to not take
place in Florida, the sales contract must state where
outside Florida the title will pass and the dealer must
document delivery outside of Florida.

QUESTION: What documentation is needed to qualify for the

partial exemption for motor vehicles sold to residents of
another state? What documents residence?

ANSWER - Based on Facts Below: To qualify for the partial
exemption for motor vehicles sold to residents of another
state the dealer must obtain and retain a properly executed
Form DR-123, Affidavit for Partial Exemption of Motor
Vehicle Sold for Licensing Outside Florida, at the time of
the sale. The dealer must have documentation that the
appropriate tax was collected and remitted to Florida.

"Resident" is not defined in sales tax law. In other areas
of law, resident is determined by many factors, often
dependent on why residency is being established. A
driver's license or voter's registration support residency.
A declaration of homestead or domicile also support
residency.

QUESTION: Are sales of LP gas for use in recreational
vehicles for cooking and heating taxable?

ANSWER - Based on Facts Below: Properly documented sales of
LP gas for use in recreational vehicles for cooking and
heating are not taxable.

QUESTION: Is the statement "All applicable tire and/or
battery fees have been paid?" on the purchase and sales
agreement acceptable for separately stating the New Tire
and Battery Fees? Doesn't separately stating the fees
impose the fees on the buyer, not the dealer and make them
subject to sales tax?

ANSWER - Based on Facts Below: The statement does not
fulfill the requirement to separately state the New Tire
Fee on the invoice. The Battery Fee is separately stated
at the dealers option; therefore, the statement is not
necessary for the Battery Fee. The New Tire Fee is not
required to be in addition to the selling price.

Dec 10, 1999

Re: Technical Assistance Advisement 99A-070
Sales and Use Tax - Recreational Vehicle Sales
Sections 212.06(5)(a); 212.08(7)(j), (10); 403.718;
403.7185, F.S.
Rules 12A-1.007; 12A-1.059; 12A-12.001; 12A-12.0011, F.A.C.
XXX ("Association")
F.E.I. # XX

Dear :

This is in response to your letter dated XXX, requesting the
Department to issue a Technical Assistance Advisement ("TAA") on
various transactions conducted by members of the Association.
It is your desire for this advisement to be binding not only
upon the Association but also upon the members of the
Association. Therefore, this advisement is being issued to the
Association and its members.

You have requested our advisement concerning the taxability of
various transactions conducted by members of the Association.
You have submitted a series of questions from the members of the
Association describing various transactions involving the sale
of recreational vehicles and other items. Following an overview
and explanation of the law, each of your questions is listed
below with the Department's response.

Overview:

In accordance with section 212.02(15)(a), F.S., a sale is
considered a Florida sale if either title or possession
transfers in Florida. All sales are subject to sales tax unless
specifically exempt. [See Section 212.21(2), F.S.] Further,
pursuant to section 212.07, F.S., the state can collect the
sales tax from either the buyer or the seller. Therefore, it is
in the interest of both the dealer and the purchaser to
carefully document compliance with the requirements of Florida's
sales tax laws. If an exemption is claimed, the burden of proof
is on the party claiming it. Since exemptions are strictly and

narrowly construed, the party seeking an exemption should
carefully meet and document each and every requirement for the
exemption.

The following paragraphs provide a short overview of Florida law
regarding when a sale is not a Florida sale, when the export
exemption is available, and when the partial exemption for nonresident purchasers of motor vehicles is available. These
subjects are explored in more detail in the response to
particular questions.

Sales Not Taking Place in Florida:

Florida can impose sales tax only on sales taking place in
Florida. Thus, if neither title nor possession pass in Florida,
there is no Florida sale and no Florida sales tax can attach.
To document that neither title nor possession pass in Florida, a
dealer must have a copy of the sales contract specifically
stating where outside of Florida the title will pass and
documentation that delivery did not occur in Florida. The
dealer may obtain an affidavit attesting to delivery out of
Florida when the dealer is required by the sale contract to
deliver the vehicle and other documentation of delivery is not
available. A suggested form for this affidavit is found in Rule
12A-1.007(7)(b), F.A.C. The affidavit is to be completed after
delivery of the vehicle.

Any Florida dealer making sales outside the State of Florida
should be aware that these sales will involve the laws of the
state where the sales are taking place. These sales could
subject the dealer to the other state's tax laws. A dealer
making sales outside of Florida should also be aware that
Florida has information sharing agreements with most other
states.

Export Exemption:

An export is a transaction in which there has been a Florida
sale but the item purchased is irrevocably committed to the
stream of export at the time of purchase. Case law determining
whether or not a particular transaction meets the requirements

of "irrevocable commitment" has provided little comfort to
dealers, because acceptable proof of export to one court has
been deemed insufficient to another. Florida law, therefore,
provides dealers "safe harbor" provisions that, if met, will
guarantee that Florida will view the transaction as an export.
The safe harbor provisions are found in section 212.06(5), F.S.

In short, a dealer can ensure the Department of Revenue will
view a sale as a sale for export if the dealer meets ONE of the
following three requirements and keeps the supporting
documentation:

*the sales contract requires the dealer to deliver the RV
outside of the state using the dealer's own mode of
transportation (get an affidavit stating that the vehicle was
delivered outside of Florida; a suggested form is found in Rule
12A-1.007(7)(b), F.A.C.)
OR

• the sales contract requires the dealer to deliver the RV
  to a common carrier for final and certain delivery outside of
  Florida (get a dock or warehouse receipt, bill of lading,
  shipper's export declaration if destination is outside the U.S.)
  OR
  *the sales contract requires the dealer to deliver the RV
  to a licensed exporter (keep the documentation supporting such
  delivery).

Partial Exemption for Motor Vehicles Sold to Residents of
Another State:

Florida has an exemption for residents of other states or
territories of the United States. This exemption, found in
section 212.08(10), F.S., can be a full exemption or only a
partial exemption. The amount of the exemption depends on the
state or territory where the purchaser is a resident. If the
requirements are met, this exemption directs the selling dealer
to collect only the amount of sales tax that would have been
imposed on the sale had the sale taken place in the purchaser's
state or territory of residence.

This exemption allows the selling dealer to collect for Florida

the lesser of Florida's state sales tax rate, currently 6%, or
the amount of sales tax that would have been imposed on the sale
if the sale had taken place in the purchaser's state or
territory of residence. Thus, if the purchaser is a resident of
the State of Alaska, which has no sales tax, the tax collected
under this exemption would be 0%. In contrast, if the purchaser
were a resident of the State of Indiana, which has a 5% sales
tax, the tax collected from this purchaser and remitted to
Florida would be 5%. If the purchaser was from the State of
Illinois, which has a 6.25% sales tax rate, the sales tax
collected from the purchaser and remitted to Florida would be
limited to 6%. This exemption applies only to persons residing
within the United States, including the District of Columbia, or
one of the territories of the United States--Guam, Puerto Rico,
American Samoa, or the Virgin Islands. It does not apply to
residents of foreign countries.

QUESTIONS AND ANSWERS

Question 1: "A Canadian resident purchases [a recreational
vehicle] from a Florida dealer, in Florida, and the buyer hires
a transport company to deliver the [recreational vehicle] to the
Canadian border. The buyer meets the transporter at the border
and takes possession. The dealer does not collect Florida tax.
The buyer and the seller's agent sign the affidavit for
acceptance of delivery outside Florida, in the presence of a
Florida notary. What other documentation, if any, would be
required?"

Department response:

Since the facts are silent as to the contents of the sales
contract in the scenario described in Question 1, we would view
the title as passing in Florida. Thus, sales tax is due unless
there is an exemption that specifically applies. A review of
the law shows that only the export exemption of section
212.06(5), F.S., could possibly apply to the situation described
in Question 1. This exemption applies when goods are
irrevocably committed to the export process at the time of the
sale. Compliance with section 212.06(5), F.S., assures a taxfree transaction. (Please note that a dealer can rely on

federal constitutional principles of export to avoid state sales
taxes. However, federal export case law is complex and often
contradictory; thus, the dealer relying on federal law to avoid
state taxation faces an uncertain outcome. Federal law will not
again be addressed in this Technical Assistance Advisement.)

Florida's export exemption, section 212.06(5)(a), F.S., is very
specific regarding how the goods are to be transported out of
the state. This section provides that if the purchaser or buyer
is present at the time of sale, it is presumed that the goods
were delivered in this State and, therefore, taxable in this
State. The burden of proof is then on the dealer and the buyer
to show that the sale is for export and, therefore, not subject
to tax. Section 212.06(5)(a)1., F.S. (1999), provides, in part:

... [I]t is not the intention of this chapter to levy a tax
upon tangible personal property imported, produced, or
manufactured in this state for export, provided that
tangible personal property may not be considered as being
imported, produced, or manufactured for export unless the
importer, producer, or manufacturer delivers the same to a
licensed exporter for exporting or to a common carrier for
shipment outside the state or mails the same by United
States mail to a destination outside the state;... nor is
it the intention of this chapter to levy a tax on any sale
which the state is prohibited from taxing under the
Constitution or laws of the United States. Every retail
sale made to a person physically present at the time of
sale shall be presumed to have been delivered in this
state.

If transfer of title and possession of the goods occurs in
Florida, the sale will not be viewed as an export sale and will
be taxable. Thus, the purchase does not qualify for the export
exemption if the purchaser takes possession of the goods to be
then transported out of the state. For this reason, the buyer
should ensure that the contract of sale requires the dealer to
deliver the recreational vehicle to a common carrier or licensed
exporter for delivery outside of the state. It may be viewed as
the buyer taking possession in the state if the buyer is
obligated to pay the transport charges. The Department,

however, will accept the buyer's payment of the transport
charges as long as the contract requires the dealer to deliver
the recreational vehicle to the transporter and the transporter
is a third party common carrier or licensed exporter.

For the sale described in Question 1 to be considered as a sale
for export in compliance with section 212.06(5)(a), F.S., the
sales contract must require the dealer to deliver the
recreational vehicle to a common carrier or licensed exporter
for transport out of the state. The dealer, not the purchaser,
must make the delivery to the transporter. Upon delivery by the
dealer to a common carrier, the dealer must secure a dock or
warehouse receipt and a copy of the bill of lading. If shipment
is to a point outside the United States, the dealer must also
obtain a shipper's export declaration. If the vehicle is
delivered to a licensed exporter, the dealer must obtain and
retain documentation from the licensed exporter that the vehicle
was delivered to a point outside the state. Regardless of the
documentation maintained by the dealer, tax applies if the goods
are not actually delivered outside the state or are diverted in
transit to the purchaser or his representative in this state.

An export declaration is not required when motor vehicles are
imported into Canada. Canada only requires a certificate of
title to import a motor vehicle. If the person bringing the
motor vehicle into Canada is not the owner of the motor vehicle,
Canada requires a signed letter from the owner permitting that
person to bring the motor vehicle into Canada. As an export
declaration is not required in this instance, the recreational
vehicle would still be considered exempt as an export as long as
the remaining documentation required to support the export has
been obtained and retained by the dealer.

The dealer must keep copies of the sales contract requiring
delivery to the common carrier or licensed exporter and the
other documentation listed in the previous paragraphs to support
the export of the vehicle and the exempt status of the sale. It
is not necessary for the dealer to obtain the affidavit
attesting to delivery outside of Florida when a common carrier
or licensed exporter transports the vehicle.

When the buyer is arranging the transport of the vehicle as
described in Question 1), the affidavit would not be sufficient
to support the export of the vehicle without the other
documentation. The dealer and the buyer would then be
responsible for the taxes not collected on the sale of the
recreational vehicle. [See Section 212.07(1)(b), (2), (8), F.S.]

Question 1 a): "In the same scenario, the dealer hires the
transport company; the buyer meets the transporter at the border
and takes possession. The dealer does not collect Florida tax.
The buyer and the seller's agent sign the affidavit for
acceptance of delivery outside Florida, in the presence of a
notary at the U.S./Canadian border. What other documentation,
if any, would be required?"

Department response:

The answer to this question is the same as the answer to
Question 1. That is, for the sale described in Question 1 a) to
be considered exempt as a sale for export, the dealer must be
required by the sales contract to deliver the recreational
vehicle to a common carrier or licensed exporter for transport
out of the state. The dealer must make the delivery to the
transporter. Upon delivery by the dealer to a common carrier,
the dealer must secure a dock or warehouse receipt and a copy of
the bill of lading. If shipment is to a point outside the
United States, the dealer must also obtain a shipper's export
declaration. If delivery was to a licensed customs broker, the
dealer must obtain documentation from the licensed exporter of
delivery outside this state. The affidavit is not necessary
when a common carrier or licensed exporter transports the
vehicle. Regardless of the documentation maintained by the
dealer, tax applies if the goods are not actually delivered
outside the State or are diverted in transit to the purchaser or
his representative in this state.

Question 1 b): "In the same scenario, the dealer transports the
[recreational vehicle] to Georgia and the buyer takes possession
of the [recreational vehicle] in Georgia. The dealer does not
collect Florida tax. The buyer and the seller's agent sign the
affidavit for acceptance of delivery outside Florida, in the

presence of a Georgia notary. What other documentation, if any,
would be required?"

Department response:

The dealer must have a copy of the sale contract requiring the
dealer to deliver the recreational vehicle to Georgia. The
dealer must obtain and retain the affidavit for delivery outside
Florida described in Rule 12A-1.007(7), F.A.C. The suggested
wording of the affidavit found in Rule 12A-1.007(7)(b), F.A.C.,
is that the vehicle was accepted outside Florida. As such, the
affidavit must be obtained after delivery. A notary must have
authority to act in the state where the affidavit is executed.

As described in Question 1 b), a properly completed affidavit
obtained after delivery of the vehicle, notarized by a Georgia
notary, and the sales contract requiring the dealer to deliver
the vehicle to Georgia would support the export of the vehicle.

Question 1 c): "As in 1 b), all is the same except that the
buyer and seller's agent sign the affidavit for acceptance of
delivery outside Florida, in the presence of a Florida notary.
What other documentation, if any, would be required?"

Department response:

The sale contract must require the dealer to deliver the
recreational vehicle to Georgia. After delivery, the dealer
must obtain the affidavit for delivery outside Florida described
in Rule 12A-1.007(7), F.A.C. In addition to the sale contract,
the dealer must retain the affidavit to support the exempt
status of the sale.

The scenario described in Question 1 c) does not state whether
the affidavit for acceptance of delivery outside Florida and
notarized by a Florida Notary was obtained before or after
delivery. A Florida Notary does not have authority to act as a
notary in Georgia. An affidavit obtained in Florida before
delivery of the vehicle, notarized by a Florida notary, does not
meet the requirements of Rule 12A-1.007(7), F.A.C. In that
instance, the sale would not qualify as sale for export. The

dealer and the buyer would then be responsible to the state for
the tax not collected on the sale. [See Section 212.07(1)(b),
(2), (8), F.S.]

Question 2: "A resident of Indiana purchases [a recreational
vehicle] from a Florida dealer, in Florida. Indiana does not
give credit for taxes paid in Florida. The buyer does not want
to pay double taxes."

Department response:

The only way to avoid paying taxes in both Indiana and Florida
is to ensure either that the sale meets the requirements for
Florida's export exemption or that the sale does not take place
in Florida. The documentation required for the export exemption
is the same as that in the answers to Questions 1, 1 a), 1 b),
and 1 c), above. Alternately, the dealer can structure the sale
so it does not take place in Florida. As discussed above,
Florida can impose sales tax only on those sales taking place in
Florida. Thus, if neither title nor possession pass in Florida,
no sale occurred in Florida and no Florida sales tax can attach.
To document that neither title nor possession pass in Florida, a
dealer must keep a copy of the sales contract specifically
stating where outside of Florida the title will pass. The
dealer must also document that delivery did not occur in
Florida. The dealer may obtain an affidavit attesting to
delivery out of Florida when the dealer is required by the sale
contract to deliver the vehicle and other documentation of
delivery is not available. A suggested form for the statement
is found in Rule 12A-1.007(7)(b), F.A.C. The affidavit is to be
completed after delivery of the vehicle.

As noted in the Overview, any Florida dealer making sales
outside the State of Florida should be aware that these sales
could subject the dealer to the other state's tax laws. A
dealer making sales outside of Florida should be aware that
Florida has information sharing agreements with other states in
the United States.

Question 2 a): "The dealer delivers the vehicle to Georgia (or
another state); the dealer does not collect Florida tax; the

buyer and the seller's agent sign the affidavit for acceptance
of delivery outside Florida, in the presence of the other
state's notary. What other documentation, if any, would be
required?"

Department response:

The answer to Question 2 a) is the same as that given to
Question 1 b) and Question 2, above. As described in Question 2
a), a properly completed affidavit obtained after delivery of
the vehicle, notarized by the other state's notary, and the
sales contract requiring the dealer to deliver the vehicle to
the other state would support the export of the vehicle.

Question 2 b): "The dealer delivers the vehicle to Georgia (or
another state); the dealer does not collect Florida tax; the
buyer and the seller's agent sign the affidavit for acceptance
of delivery outside Florida, in the presence of the Florida
notary. What other documentation, if any, would be required?"

Department response:

The answer to this question is the same as the answer given to
Question 1 c). The sale contract must require the dealer to
deliver the recreational vehicle to Georgia. After delivery,
the dealer must obtain the affidavit for delivery outside
Florida described in Rule 12A-1.007(7), F.A.C. In addition to
the sale contract, the dealer must retain the affidavit to
support the exempt status of the sale.

The scenario described in Question 2 b) does not state whether
the affidavit for acceptance of delivery outside Florida and
notarized by a Florida Notary was obtained before or after
delivery. A Florida notary does not have authority to act in
another state. An affidavit obtained in Florida before
delivery, notarized by a Florida notary, does not meet the
requirements of Rule 12A-1.007(7), F.A.C. In that instance, the
sale would not qualify as sale for export. The dealer and the
buyer would then be responsible to the state for the tax not
collected on the sale. [See Section 212.07(1)(b), (2), (8),
F.S.]

Question 3: "A customer purchases [a recreational vehicle] from
a Florida dealer, in Florida. He has a Florida driver's
license. He has purchased a home in another state, but hasn't
closed on his Florida home yet; therefore he owns two homes. He
tells the dealer that he has a closing date set for his Florida
property, within 30 days from the date he picks up the
[recreational vehicle]. He wants to title and register the
[recreational vehicle] in his new state. That state is
reciprocal with Florida. Does the dealer consider the customer
as a Florida resident or can the dealer consider him as a
resident of the other state?"

Department response:

As discussed briefly in the overview above, Florida does have an
exemption for residents of other states or territories of the
United States. This exemption, found in section 212.08(10),
F.S., may be a full exemption or only a partial exemption,
depending on the purchaser's state or territory of residence.
This exemption allows the selling dealer to collect for Florida
the lesser of Florida's state sales tax rate, currently 6%, or
the amount of sales tax that would have been imposed on the sale
if the sale had taken place in the purchaser's state or
territory of residence.

Section 212.08(10), F.S. (1999), provides:

The tax collected on the sale of a new or used motor
vehicle in this state to a resident of another state shall
be an amount equal to the sales tax which would be imposed
on such sale under the laws of the state of which the
purchaser is a resident, except that such tax shall not
exceed the tax that would otherwise be imposed under this
chapter. At the time of the sale, the purchaser shall
execute a notarized statement of his or her intent to
license the vehicle in the state of which the purchaser is
a resident within 45 days of the sale and of the fact of
the payment to the State of Florida of a sales tax in an
amount equivalent to the sales tax of his or her state of
residence and shall submit the statement to the appropriate

sales tax collection agency in his or her state of
residence. Nothing in this subsection shall be construed to
require the removal of the vehicle from this state
following the filing of an intent to license the vehicle in
the purchaser's home state if the purchaser licenses the
vehicle in his or her home state within 45 days after the
date of sale.

Rule 12A-1.007(8)(a), F.A.C., provides guidance for implementing
the partial exemption allowed by Section 212.08(10), F.S. Rule
12A-1.007(8)(a), F.A.C., provides:

(8) Motor Vehicles.

(a) The sale in this state by a motor vehicle dealer of a
new or used motor vehicle to a resident of another state of
the United States is taxable in an amount equal to the
sales tax which would be imposed on such sale in the
purchaser's state of residence. (A list of the sales tax
rates applicable in other states and the District of
Columbia is available by: 1) writing Florida Department of
Revenue, Forms Distribution Center, 168 Blountstown
Highway, Tallahassee, Florida 32304; or, 2) faxing the
Forms Distribution Center at 850-922-2208; or, 3) using a
fax machine telephone handset to call the Department's
automated Fax On Demand system at 850-922-3676; or, 4)
visiting any local Department of Revenue Service Center to
personally obtain a copy; or, 5) calling the Forms Request
Line during regular office hours at 800-352-3671 (in
Florida only) or 850-488-6800; or, 6) downloading selected
forms from the Department's Internet site at the address
shown inside the parentheses
(http://sun6.dms.state.fl.us/dor/revenue.html). Persons
with hearing or speech impairments may call the
Department's TDD at 1-800-367-8331. However, such tax shall
not exceed the tax that would otherwise be imposed by Part
I, Chapter 212, F.S. At the time of the sale the purchaser
shall execute a notarized statement of his intent to
license the vehicle in his state of residence within 10
days from the date of purchase and:

1. Pay Florida sales tax to the dealer making the sale in
an amount equivalent to the sales tax in the purchaser's
state of residence;

2. Furnish the dealer making the sale with a signed copy of
   the notarized statement which the dealer shall retain in
   his records; and

3. Submit the notarized statement to the appropriate sales
   tax collection agency in his state of residence.

4. The Department prescribes Form DR-123, Affidavit for
   Partial Exemption of Motor Vehicle Sold for Licensing
   Outside Florida, incorporated by reference in Rule 12A1.097, F.A.C., to be completed by the purchaser and
   furnished to the selling dealer or appropriate sales tax
   collection agency.

Please note: Rule 12A-1.007(8)(a), F.A.C., has not been updated
to reflect the legislation enacted in 1999. The purchaser now
has 45 days to register the vehicle in his state of residence.
Form DR-123, Affidavit for Partial Exemption of Motor Vehicle
Sold for Licensing Outside Florida, has been updated and is
available from the sources listed in Rule 12A-1.007(8)(a),
F.A.C. The dealer must obtain and retain the properly completed
DR-123 affidavit from the purchaser at the time of the sale to
support the partial exemption or the sale is fully taxable in
Florida.

As noted in Rule 12A-1.007(8)(a)1., F.A.C., and the overview
above, the dealer is still responsible for collecting the sales
tax on the sale when the DR-123 affidavit is obtained. After
obtaining the properly completed DR-123 affidavit, the dealer
collects from the purchaser the appropriate sales tax rate of
the state or territory where the vehicle is to be registered.
The tax collected is then remitted to the state of Florida, not
the state where the vehicle is to be registered. The purchaser
is responsible for any additional taxes due in the state where
the vehicle is to be registered.

The dealer, however, is not required to accept a DR-123 and

partially exempt the sale from Florida taxes. Under certain
circumstances the dealer should not accept the DR-123. If the
dealer has reason to believe that the buyer is not executing the
DR-123 in good faith, the dealer should not accept the buyer's
affidavit. If the purchaser gives a Florida address, the dealer
should not accept it. If the dealer has reason to believe that
the address given by the buyer in another state is not in fact a
real address or is not the buyer's address, the dealer should
not accept the DR-123 from the buyer.

Any purchaser who fraudulently issues a DR-123, and any dealer
who knows the affidavit is fraudulent and accepts it, will be
liable for the taxes, penalties, and interest and also may be
subject to criminal prosecution.

If the buyer asserts that he is a resident of the other state,
given the fact that he already purchased a home in that other
state, it would appear that the dealer could safely accept a DR123 from this purchaser. This would not be the case if the
buyer states that he is not yet a resident but intends to become
a resident of the other state or if the buyer provides some
other information which would tend to negate his residency in
that other state. The dealer may obtain a copy of the buyer's
driver's license or voter's registration from the other state to
support residency in the other state. Other documentation, such
as a declaration of domicile or homestead, also supports
residency. Documentation of residency obtained by the dealer
should be retained with the sale contract and the DR-123 to
support the exempt status of the sale.

Question 3 a): "If the dealer has to consider him as a Florida
resident and the customer objects, and the customer tells the
dealer that if he has to title and register in Florida, then he
will not purchase the [recreational vehicle] in Florida but will
wait until he gets to his new state; what options does the
dealer have?"

Department response:

See the answers to Question 3 and Question 8.

Question 4: "A customer purchases [a recreational vehicle] from
a Florida dealer, in Florida. He has a Florida driver's
license. He has sold and closed on his Florida home, but he
hasn't left the state yet; he has a new address to give the
dealer for the home he purchased in another state. He will be
leaving Florida within 45 days of purchase. Does the dealer
consider him a Florida resident or an out of state resident? If
he signs Affidavit DR-123, is there anything else that would be
required?"

Department response:

Refer to the responses to Question 3 and Question 8.

Question 5: "A customer purchases [a recreational vehicle] from
a Florida dealer, in Florida. He has a Florida driver's
license. He owns his primary home in another state, which gives
credit for tax paid to Florida. He rents property in Florida
seasonally. He does not homestead. He also tells the dealer
that he is a registered voter in the other state. He wants to
title and register the [recreational vehicle] in his other
state. He will be returning to the other state within 45 days
after he picks up the [recreational vehicle]. He signs
affidavit DR-123. The dealer collects the other state's tax
rate. What other documentation, if any, would be required?"

Department response:

Refer to the responses to Questions 3 and Question 8.

Question 6: "A customer purchases [a recreational vehicle] from
a Florida dealer, in Florida. He owns real property in two or
more states, including Florida. He has more than one valid
driver's license, including Florida. He wants to title the
[recreational vehicle] in another state. That state is
reciprocal with Florida. If the dealer has the customer sign the
Affidavit DR-123, and collects that state's tax rate, is this
sufficient documentation for the dealer file?"

Department response:

Refer to the responses to Questions 3 and Question 8.

Question 7: "A customer purchases [a recreational vehicle] from
a Florida dealer, in Florida. He is a full-time RV'er and does
not own real property in any state. He has more than one valid
driver's license, including Florida. He wants to title the
[recreational vehicle] in another state. Is the affidavit DR123 sufficient documentation for the dealer file if the dealer
collects that state's tax rate?"

Department response:

Refer to the responses to Questions 3 and 8.

Question 8: "Is there a sequential list of items that can be
formulated for the dealer, that the dealer can rely on to
document 'residence' of a customer and avoid any problems in an
audit?"

Department response:

The word "resident" is not defined in the sales tax laws. In
other areas of the law, whether one is a resident is determined
by many factors, often dependent on why residency is being
established. For sales tax purposes, therefore, if the buyer
asserts residence in another state and fills out the DR-123
giving a street address in the other state, the dealer may
accept the DR-123 from the buyer if the dealer has no reason to
believe that the buyer is not telling the truth. Along with the
DR-123, the dealer may obtain and keep a copy of the buyer's
driver's license or voter's registration from the other state to
support residency in the other state. A declaration of
homestead or domicile in the other state would also support
residency.

A dealer should not accept a DR-123 that lists a Florida
address. If a DR-123 lists a post office box as the address of
residence in another state, the dealer should secure a street
address for the purchaser and include the street address on the
DR-123, as well as retain this information in the dealer's
records.

A dealer is not required to accept a DR-123, and should not, if
the dealer has possession of information that would lead him to
suspect, or would lead a reasonable person standing in the
dealer's shoes to suspect, wrongdoing on the part of the buyer
in asserting residency elsewhere. Under those circumstances,
the dealer should either not accept the DR-123 at all or should
investigate to determine whether the DR-123 can be accepted by
the dealer in good faith. For purposes of example only, a
dealer should further investigate or should refuse to accept a
DR-123 where the buyer is the third or fourth person to provide
the same street address in Alaska, a no sales tax state, as his
or her home address.

Question 8 a): "Can a Florida dealer rely on an Affidavit DR123, signed by the customer that he is a resident of that other
state, to show that we collected the correct sales tax and avoid
any problems in an audit?"

Department response:

A properly completed DR-123 affidavit may be relied on in an
audit to show that the customer qualifies for the partial
exemption allowed in section 212.08(10), F.S. In addition, the
dealer must have other records available for examination so the
auditor can determine that the correct tax has been collected
from the customer and remitted to Florida. The additional
records would include the sale documents and monthly sales tax
returns. Other records may also be needed to establish that the
correct tax has been collected and remitted to Florida. The
Department response to Question 3 and the overview explains the
dealer's responsibility for collecting and remitting the tax
from a purchaser who qualifies for the partial exemption allowed
in section 212.08(10), F.S.

Question 8 b): "If the customer signs a notarized Affidavit DR123 that he is a resident of another state, shouldn't the
customer be held liable if he lies, and not the dealer?"

Department response:

If a customer or purchaser provided a completed DR-123 affidavit
to a dealer that is later proven to be incorrect, that purchaser
becomes responsible for any use tax that is due to Florida, as
well as the applicable penalties and interest [See Section
212.07(8), F.S. (1999)]. As noted in the response to Question 8
a), if audited, a dealer may rely on a properly completed DR-123
affidavit and other records to show that the correct sales tax
was collected and remitted to Florida. The Department may
investigate to determine if the dealer had knowledge that the
DR-123 affidavit was incorrect. The dealer's responsibilities
when accepting the DR-123 affidavit are described in the
Department's responses to Questions 3 and 8.

Question 8 c): "Sometimes the customer only has a Florida
driver's license, showing his seasonal address, which may be a
campground or a relative or a friend's address; even though he
is a resident of another state, his driver's license renewal
falls during the time that he is in Florida, therefore, he
chooses to keep the Florida driver's license for convenience."

Department response:

Refer to the responses to Questions 3 and 8.

Question 9: "Some Florida dealers sell propane to owners of
[recreational vehicles] only. There is some confusion as to
whether or not to collect tax on the sale of propane, [Rule]
12A-1.059 [, F.A.C.,] states `when used for the purpose of home
cooking and heating' LP gas is exempt from sales tax.
[Recreational vehicles] are considered as a second home by all
governmental bodies, including the IRS, and the propane is used
for the purpose of cooking and/or heating. Therefore, is LP gas
sold for use in [recreational vehicles] for heating and cooking
taxable or non-taxable?"

Department response:

The Legislature provided an exemption from sales tax for fuel
sold to residential households or owners of residential models
when used for heating, cooking, lighting, and refrigeration.
This exemption is found in Section 212.08(7)(j), F.S. (1999),

which provides, in part:

Also exempt from payment of the tax imposed by this chapter
are sales of utilities to residential households or owners
of residential models in this state by utility companies
who pay the gross receipts tax imposed under s. 203.01, and
sales of fuel to residential households or owners of
residential models, including oil, kerosene, liquefied
petroleum gas, coal, wood, and other fuel products used in
the household or residential model for the purposes of
heating, cooking, lighting, and refrigeration,....

Rule 12A-1.059, F.A.C., Fuels and Lubricants, provides
guidelines for implementing Section 212.08(7)(j), F.S. Rule
12A-1.059, F.A.C., provides, in part:

(1)(a) The sale of fuel, including crude oil, fuel oil,
kerosene, sterno, diesel oil, natural and manufactured gas,
coke, charcoal briquets, cord wood, and other fuel products
is taxable. Natural and manufactured gas is exempt when
separately metered and sold for use in residential
households (including trailer lots) directly to the actual
consumer by utilities who are required to pay the gross
receipts tax imposed by Section 203.01, Florida Statutes.
The exemption for residential households (including trailer
lots) also includes L.P. gas, crude oil, fuel oil,
kerosene, diesel oil, coke, charcoal briquets, cord wood,
and other household fuels.... No exemption certificate or
affidavit is required to be obtained by a dealer of special
fuel or a dealer of liquefied petroleum gases when the fuel
is sold and delivered into the customer's storage facility
located on the customer's residential premises, when the
fuel is for the purposes of home cooking or home
heating....

(b) Where the amount of the sale exceeds two dollars, and
except for the filling of twenty-pound tanks, the dealer
must support his claim for exemption from the tax with a
copy of an invoice which contains the date of sale,
quantity and description of the fuel, license number, and
state of issue of the travel trailer. Twenty-pound L.P. gas

tanks are used exclusively for residential household
purposes and the filling of them with L.P. gas is exempt
under the law.

Sales of twenty-pound L.P. gas tanks are not subject to tax, and
the purchaser is not required to issue a certificate to the
seller. The seller or dealer, however, is required to document
the sale of a twenty-pound L.P. gas tank by noting on the
invoice or sales receipt that the sale is a sale of a twentypound L.P. gas tank. The same is true if the exempted fuel sale
is two dollars or less. This documentation must be maintained in
the dealer's books and records.

If the fuel sale amount is more than two dollars, and not the
sale of a twenty-pound L.P. gas tank, a dealer is required to
support the exemption with documentation. As described in Rule
12A-1.059, F.A.C., the documentation needed is a copy of the
invoice listing the date of the sale, the quantity and
description of the fuel, the license number, and the state of
issue of the travel trailer. When the required documentation is
maintained in the dealer's books and records, the sale of fuel
for use in a recreational vehicle is exempt for the purposes of
heating, cooking, lighting, and refrigeration.

Question 10: "A Florida dealer sells [a recreational vehicle]
and reports and pays the tire and battery fee[s] to the
Department of Revenue on the monthly report. The fee is not
passed on to the customer. Does the dollar amount of the fee
have to be reported on the purchase and sales agreement; or can
we simply state on the buyer's order the following: `All
applicable tire and/or battery fees have been paid'?"

Department response:

The dollar amount of the new tire fee must be stated separately
on the invoice to comply with the requirements of Section
403.718, F.S. (1999), the statute that imposes the new tire fee.
Section 403.718, F.S., provides, in part:

(1) For the privilege of engaging in business, a fee for
each new motor vehicle tire sold at retail is imposed on

any person engaging in the business of making retail sales
of new motor vehicle tires within this state.... The fee
imposed under this section shall be stated separately on
the invoice to the purchaser.... Such fee shall be subject
to all applicable taxes imposed in chapter 212.

Section 403.7185, F.S. (1999), imposes the lead-acid battery
fees and has no such requirement to state the fee separately on
the buyer's order or invoice. Section 403.7185, F.S., does
provide that the lead-acid battery fee is subject to the taxes
imposed in chapter 212. Rule 12A-12.0011(4), F.A.C., gives the
seller the option of separately stating the battery fee on the
invoice. If the seller decides to separately state the battery
fee, it becomes a part of the total selling price. As part of
the selling price, the dealer must then collect the sales tax on
the fee. [See: Rule 12A-12.0011(5), F.A.C.]

The statement on the buyer's order or invoice of "All applicable
tire and/or battery fees have been paid" does not comply with
the requirement to separately state the new tire fee on the
invoice. The statement is not necessary for the battery fee. As
noted above, separately stating the lead-acid battery fee on the
invoice is optional.

Question 10 a): "If the dollar amount of the fee is shown on the
buyer' s order, then we would have to collect sales tax and then
the cost would be passed on to the customer. The law states
that the solid waste fee is imposed on the selling dealer, not
the purchaser."

Department response:

Sections 403.718 and 403.7185, F.S., do impose the fees on the
selling dealer, not the purchaser. When the fees are separately
stated on the buyer's order or invoice, they do become part of
the selling price and subject to sales tax. The selling dealer
has the option of separately stating the lead-acid battery fee.

As previously noted, the selling dealer must separately state
the new tire fee on the invoice. Unlike sales tax, it is not
required that the new tire fee be in addition to the stated

selling price. The new tire fee may be stated on the buyer's
order or invoice in either of the following methods when an
advertised or contract price is $32.95.

Method 1

Method 2

$31.95

$32.95

Tire
New Tire Fee

Total Taxable Selling Price

1.00
$32.95

1.00
$33.95

With Method 1, the new tire fee is separately stated, but also
part of the advertised or contract price. With Method 2, the
new tire fee is in addition to the advertised or contract price.
Sales tax is due on the total selling price whether Method 1 or
2 is used to calculate the total selling price. With Method 1,
however, the total selling price is the same as the advertised
or contract price.

Question 11: "A Florida dealer attends a rally or [recreational
vehicle] show in another state. The dealer sells [a
recreational vehicle] to a resident of a state other than
Florida at that show or rally. The [recreational vehicle] is
delivered to the buyer at that show or rally. The dealer does
not collect any Florida tax; and the buyer and the seller's
agent sign the affidavit of delivery outside Florida in the
presence of notary in that state. What other documentation, if
any, would be required?"

Department response:

A sale occurring as described in Question 11 would not be a
Florida sale, and thus, not subject to Florida sales tax. The
dealer must maintain documentation that the sale occurred
outside of Florida. Because the sale did not occur in Florida
and the recreational vehicle was not delivered in Florida, the
affidavit for delivery outside Florida is not necessary.
Obtaining the affidavit, however, would aid in establishing that
the sale was not subject to Florida tax. The sale contract
should indicate where the sale occurred and that delivery of the
vehicle was not in Florida. The sale contract should be
retained with the other documentation establishing that the sale
did not occur in Florida. Acceptable documentation showing that

the sale occurred outside Florida would be space rental receipts
from the rally or show indicating the dates the dealer was at
the show, dealer jackets for sales made at the show, and
cancelled checks or sales tax returns for showing payment of
sales tax to the host state.

Question 12: "A customer purchases [a recreational vehicle] from
a Florida dealer, in Florida. The buyer is a resident of
another state and that state is not reciprocal with Florida.
The dealer is ordering the [recreational vehicle] from the
manufacturer and the customer will be picking up the
[recreational vehicle] directly from the manufacturer at the
manufacturing plant, which is in another state. All the
paperwork will be done at the Florida dealer's place of business
prior to the customer picking up the [recreational vehicle] at
the manufacturer. The dealer does not collect Florida tax. The
buyer and the seller's agent sign the affidavit for acceptance
of delivery outside Florida, in the presence of the Florida
notary. What other documentation, if any, would be required?"

Department response:

As noted in Question 1, Florida can impose sales tax only on
those sales taking place in Florida. Thus, if neither title nor
possession pass in Florida, no sale occurred in Florida and no
Florida sales tax can attach. In order to document that neither
title nor possession passes in Florida, a dealer should keep a
copy of the sales contract stating where outside of Florida the
title will pass. The sales contract should also state that the
vehicle will be delivered at the manufacturer's plant. The
dealer should obtain documentation from the manufacturer that
the recreational vehicle was delivered to the customer or
purchaser outside the State of Florida. The documentation from
the manufacturer is sufficient to show delivery of the vehicle
outside Florida. The dealer should retain this documentation to
support the exempt status of the sale. An affidavit for
acceptance of delivery outside Florida is not necessary. As
noted before, an affidavit for acceptance of delivery outside
Florida completed before delivery does not fulfill the
requirements of Rule 12A-1.007(7), F.A.C., and would not be
acceptable documentation of the exempt status of the sale.

Question 13: "A resident of another country (England, Germany,
France, etc.) purchases [a recreational vehicle] from a Florida
dealer, in Florida. The buyer contracts with an export company
and pays the export company directly. The export company
arranges for a transport company to pick up the [recreational
vehicle] at the dealership and drive the [recreational vehicle]
to the docks, in Jacksonville. Once the [recreational vehicle]
is delivered at the docks the export company provides the dealer
with a dock receipt; and once the [recreational vehicle] is
accepted in the foreign country, the export company provides the
dealer with a bill of lading. The dealer does not collect
Florida tax. The buyer and the seller sign the affidavit for
acceptance of delivery outside Florida in the presence of the
Florida notary. What other documentation, if any, would be
required?"

Department response:

Refer to the response to Question 1. As in Question 1, the
sales contract must state that the dealer will deliver the
vehicle to the common carrier or licensed exporter. The dealer
must deliver the vehicle to the common carrier or licensed
exporter. The dealer must obtain and retain documentation from
the common carrier or licensed exporter on the transport of the
vehicle out of Florida. It is not necessary to obtain the
affidavit.

When the buyer is arranging the transport of the vehicle, as
described in Question 13, the affidavit would not be sufficient
to support the export of the vehicle without the other
documentation. The dealer and the buyer would then be
responsible for the taxes not collected on the sale of the
recreational vehicle. [See Section 212.07(1)(b, (2), (8), F.S.]

Question 13 a): "Same scenario, except that the dealer
transports the [recreational vehicle] to the docks and meets the
export company agent at the docks. The buyer pays the export
company directly. The dealer follows the same procedure,
obtains the same documents, and has the affidavit signed. Would
anything different be required?"

Department response:

Refer to the response to Question 13.

This response constitutes a Technical Assistance Advisement
under section 213.22, F.S., which is binding on the Department
only under the facts and circumstances described in the request
for this advise, as specified in section 213.22, F.S. Our
response is predicated upon 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 from that which is 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., which are subject to disclosure to the public under the
conditions of section 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,

Debra Gifford
Senior Tax Specialist
Technical Assistance & Dispute Resolution

Control # 38767