Hicks Hall, Building 53, Suite 2800Phone: (904) 620-2920Fax: (904) 620-2469E-mail: email@example.com
Student Financial Services
Hicks Hall, Building 53, Suite 1100
Phone: (904) 620-2472
Fax: (904) 620-1049
In general, revenue from the sale of tangible personal property or lease of tangible and real property is subject to Florida sales tax. The Tax Department is available to review revenues collected by the university to determine if transaction is subject to state and local sales taxes. Additional information regarding specific transactions and specific exemptions is provided via the links below.
The State of Florida imposes a tax on all sales of tangible personal property. A sale is defined as any transfer of title or possession, or both, exchange, barter, license, lease, or rental of tangible personal property for consideration. Most counties in the state impose additional surtaxes on sales.
Exempt organizations must collect sales tax on transactions made to individuals or organizations (i.e., vendors) that do not possess an exemption certificate. Organizations that have obtained an exemption certificate from the Florida Department of Revenue (DOR) are not subject to sales tax on items purchased for use in their exempt activities.
The primary sources of authority for determining whether a particular transaction is subject to Florida sales tax are the Florida Statutes (F.S.) and the Florida Administrative Code (F.A.C.). The Florida Department of Revenue (DOR) may issue a technical assistance advisement (TAA) to a taxpayer that submits a specific question in writing. The TAA is only binding for the requesting taxpayer. TAA's are published by the DOR without the taxpayer's name or identification number. The DOR is not required to follow guidance contained in a TAA in any situation other than the specific situation addressed for the specific requesting taxpayer.
The State University System (SUS) compiled a list of transactions along with a determination as to their taxability that was submitted to the DOR for review. The SUS and DOR engaged in subsequent meetings and correspondence regarding several transactions on the list. Refer to the Florida Department of Revenue (DOR) for the State University System for a list of taxable and non-taxable transactions as agreed by the DOR and the SUS. The determination as to the taxability of the transactions listed is not binding on the DOR.
Obtain the Necessary Documentation if Taxes are Not Collected
Political subdivisions and religious, charitable, educational and certain veteran organizations may qualify under Sections 212.08(6) and (7), F.S., and Rule 12A-1.038, F.A.C., to make purchases for use in the course of their customary nonprofit religious, nonprofit educational, or nonprofit charitable activities without paying the tax. Charitable organizations, which qualify under 501(c)(3)IRC, qualify for a consumer's certificate of exemption. Qualifying persons desiring to make tax-exempt purchases must apply for a certificate of exemption on form DR-5. This exemption must be renewed every 5 years per Sec. 212.084, F.S. Upon approval of the application, the Department will issue form DR-14, a Consumer's Certificate of Exemption.
The University of North Florida has obtained form DR-14, a Consumer's Certificate of Exemption, from the DOR. All Colleges and Departments at the University may use this certificate to exempt from sales tax purchases for use in the course of UNF's customary nonprofit educational activities. The Student Government, as a division of the University, is entitled to use the certificate. Student Organizations that receive A&S funds are entitled to use UNF's certificate when expending those funds. Student Organizations are not entitled to use UNF's certificate to obtain exemption for any other expenditures. Rule 6C4-6.017(1)(b)4., F.A.C., Registration and Conduct of Student Organizations, states that "although not an entity of or a division of the University, a student organization is given the opportunity to operate as a member of the University community...".
UNF must retain proper documentation when a sale or rental is made to an entity which is exempt from tax. Payment must be made directly by the exempt entity. The sale is not exempt if employee pays and will be reimbursed. UNF must retain in its files, either:
Rule 12A-1.038(8), F.A.C., provides that purchases by the U.S. government are exempt whether or not a Consumer's Certificate of Exemption (Form DR-14) is presented to the dealer. Rule 12A-1.038(4) F.A.C., contains a suggested document to be provided the dealer by Federal employees.
Sales tax is not required to be collected when property is purchased for subsequent resale to the final consumer (provided the seller obtains an Annual Resale Certificate from the purchaser). Beginning with calendar year 2000, the DOR will issue a sales tax Annual Resale Certificate (Form DR-13) to each active registered dealer. The certificates expire on December 31 of each calendar year. Sales tax must be collected when the property is sold to the final consumer. When UNF makes a tax exempt sale for the purposes of resale, it must obtain either a:
Renting, leasing, letting, or granting a license for the use of any real property are activities subject to sales tax. Section 212.031, F.S., provides that every person is exercising a taxable privilege who engages in the business of renting, leasing, letting, or granting a license for the use of any real property. The tax imposed shall be in addition to the total amount of the rental or license fee, shall be charged by the lesser or person receiving the rent or payment, and shall be due and payable at the time of the receipt of such rental or license fee payment. Payments for intrinsically valuable personal property such as franchises, trademarks, service marks, logos, or patents are not subject to tax under this section. In TAA 94A-065 the Department of Revenue determined that certain expenses paid directly by the lesser but apportioned to the tenant as additional rent are subject to sales tax.
Section 212.031(1)(c), F.S., requires sales tax to be imposed on the " total rent...charged for such real property by the person charging or collecting the rental...fee." This statute is interpreted specifically in paragraph (4)(b) in Rule 12A-1.070, F.A.C. which provides that tax is due "...on all considerations due an payable from the tenant...". Rule 12A-1.070(4)(e), F.A.C., states utility charges paid by a tenant to the lessor for the privilege or right to use or occupy real property are taxable, unless the lessor has paid the sales tax to the utility company on such utilities consumed by the tenant, and the utilities billed by the lessor to the tenant are separately stated on the lessor's invoice to the tenant at the same or lower price as that billed by the utility to the lessor. In TAA 89A-064 the Department of Revenue determined that the cost of improvement to premises when paid by the tenant is additional rent. The Department considers these payments as part of the total consideration given by the tenant for the right to use or occupy the property.
Management agreements are not subject to Florida sales tax; however, real property rentals and "licenses to use" real property "space" are both subject to Florida sales tax. This process discusses factors involved in determining classification of agreements in these categories.
Real Property rentals and licenses to use real property are both subject to Florida sales tax (see 212.03, F.S. and discussion in #1 above); however, management agreements are not subject to Florida sales tax. Several TAAs issued by the DOR have helped to provide guidance as to when a transaction qualifies as a "rental" or "license to use real property" (subject to Florida sales tax) versus a "management agreement" (not subject to Florida sales tax). This determination is complicated, and depends on the facts and circumstances of each contract.
Every person who rents, leases, or lets for consideration any living quarters or accommodations in any hotel, apartment hotel, motel, resort motel, apartment, apartment motel, rooming house, mobile home park, recreational vehicle park, or condominium for a term of 6 months or less is exercising a privilege, unless such person rents, leases, or lets for consideration any living quarters or accommodations which are exempt according to the provisions of chapter 212 (sales tax).
Note: If an entity is exempt from Florida sales and use tax, then that entity is also exempt from the tourist development tax.
Section 212.03, F.S., provides that every person is exercising a taxable privilege who engages in the business of renting, leasing, letting, or granting a license to use any living quarters or sleeping or housekeeping accommodations in, from, or a part of, or in connection with any hotel, apartment house, rooming house, or tourist or trailer camp. Any person who exclusively enters into a bona fide written agreement for continuous residence for longer than 6 months in duration at such property is not exercising a taxable privilege. The tax levied is 6% of the total rental charged. 212.03(7)(a), F.S.exempts full-time students enrolled in an institution offering post secondary education from the tax imposed by this section. The department shall be empowered to determine what shall be deemed acceptable proof of full-time enrollment. Rule 12A-1.061(10), F.A.C., provides that a full-time student is one taking that number of hours or courses considered by his or her educational institution to constitute full-time enrollment.
Rule 12A-1.061(1)(d), F.A.C., provides that day nurseries, kindergartens, church-operated and other custodial camps which primarily provide supervisory and instructional services which are professional and personal, are exempt and are not required to collect tax on fees charged for lodging to the students or campers. Sales of taxable items of tangible personal property at commissaries operated by such institutions are taxable. TAA 95A-049R acknowledges that the rule does not provide a clear definition of "custodial camp". Thus, we must look to other sources to define this term. The term "camp" is not defined in any statute or rule. However, the terms "summer day camp" and "summer 24 hour camp" are defined in Section 409.175(2), F.S. Both of those definitions specify that they are programs offered during summer vacation. Webster's Dictionary defines "camp" as being a "place provided with tents or cabins...designed for rest or recreation, especially for children during the summer." Thus, relying on these sources and the doctrine of "plain and ordinary meaning" we must conclude that a camp is a program that is of a temporary or limited duration conducted during a period when school is not normally being attended.
Section 125.0104(3)(a), F.S., provides for a tourist development tax which may be imposed by the governing board of a county. This tax is an ad valorem or property tax. Every person who rents, leases, or lets for consideration any living quarters or accommodations in any hotel, apartment hotel, motel, resort motel, apartment, apartment motel, rooming house, mobile home park, recreational vehicle park, or condominium for a term of 6 months or less is exercising a privilege which is subject to taxation under this section, unless such person rents, leases, or lets for consideration any living quarters or accommodations which are exempt according to the provisions of chapter 212. Note: If an entity is exempt from Florida sales and use tax, then that entity is also exempt from the tourist development tax.
Every person is exercising a taxable privilege that sells or receives anything of value by way of admissions. This process provides definitions for exemptions and outlines exemption criteria for:
Section 212.02(1), F.S. defines admissions as the net sum of money after deduction of any federal taxes for admitting a person or vehicle or persons to any place of amusement, sport, or recreation or for the privilege of entering or staying in any place of amusement, sport, or recreation, including, but not limited to, theaters, outdoor theaters, shows, exhibitions, games, races, or any place where charge is made by way of sale of tickets, gate charges, seat charges, box charges, season pass charges, cover charges, greens fees, participation fees, entrance fees, or other fees or receipts of anything of value measured on an admission or entrance or length of stay or seat box accommodations in any place where there is any exhibition, amusement, sport, or recreation, and all dues and fees paid to private clubs and membership clubs providing recreational or physical fitness facilities, including, but not limited to, golf, tennis, swimming, yachting, boating, athletic, exercise, and fitness facilities.
Section 212.04(1) declares that every person is exercising a taxable privilege that sells or receives anything of value by way of admissions. The tax is levied at the rate of 6 percent of sales price, or the actual value received from such admissions. Each ticket must show on its face the actual sales price of the admission, or each dealer must prominently display at the box office or other place where the admission charge is made a notice disclosing the price of the admission, and the tax shall be computed and collected on the basis of the actual price of the admission charged by the dealer.
Section 212.04(2)(a)1, F.S. exempts admissions to events sponsored by public colleges and universities when only student or faculty talent is used. This exemption shall not apply to admission to athletic events sponsored by an institution within the SUS system.
Section 212.04(2)(a)6, F.S., exempts admissions to live theater, live opera, or live ballet productions which are sponsored by an organization that has received a determination from the Internal Revenue Service that the organization is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code. The University of North Florida is not exempt under section 501(c)(3). The State University System comes under the umbrella of the Department of Education that is a governmental agency.
Section 212.04(2)(a)2, F.S., states that no tax shall be levied on admission charges imposed by not-for-profit sponsoring organizations. To receive this exemption, the sponsoring organization must qualify as a not-for-profit entity under the provisions of Sec. 501(c)(3) of the U.S. Internal Revenue Code of 1954, as amended. Rule 12A-1.005(1)(f), F.A.C., states that sponsorship of an event or program is determined by using the following criteria: 1. Active participation by the entity in the planning and conduct of the event or program; 2. Assumption by it of responsibility for the safety and success of the event or program, such that it will be subject to a suit for damages for alleged negligence in its conduct; 3. Entitlement by it to the gross proceeds from the event or program and to the net proceeds after payment of its costs; and 4. Responsibility by it for payment of costs of the event or program and for bearing any net loss if the costs exceed gross proceeds.
Meals, auction items and parking provided as part of a fundraising activity may be subject to sales tax. The sale of a gift certificate is not subject to sales tax.
Rule 12A-1.001(14), F.A.C., defines schools as tax supported ... schools conducting regular classes and courses of study required for accreditation by or membership in the Southern Association of Colleges and Schools ... . Tangible personal property sold outright or rented through the school to students is taxable based on delivered cost to the school or on the amount charged the student upon sale or rental. Student photographs, candies, confections, and novelties sold to students or the public for fund raising purposes come within this rule. Schools grades K through 12 and their respective P.T.A.'s or P.T.O.'s have been granted the privilege of paying tax to their suppliers on school materials and supplies that they purchase for resale to students and the tax is passed on to the student as part of the selling price. All others making sales of school supplies and materials are required to register as dealers and collect the tax thereon from the purchaser. Parent-teacher associations may qualify for exemption as educational institutions and may make tax-exempt purchases of items used in their customary activities or items donated by the associations to the schools. Parent-teacher associations holding fund raising events such as spring festivals, fun houses, and games where prizes are given away shall pay the tax on all materials used, including the prizes awarded.
Rule 12A-1.011(23), F.A.C., provides that barbecues, fish fries and similar dinners are taxable even if the entire proceeds are used for charitable purposes. If a club or similar organization charges its members or guests a greater amount at their luncheon meetings and dinners than it pays the caterer or restaurant which furnishes the meals, the tax may be computed on the charge made by the caterer or restaurant. In the case of fund raising events when the charge to the patron or customer bears no relationship to the actual value of that which is received, such as a $50 per place dinner, the tax base shall be the total amount charged by the caterer or restaurateur to the sponsoring organization. Subsection (26) states that if meals for members of school organizations are paid for out of school funds, the person paying for them may give a certificate to the person collecting for them stating that the meals are purchased from school funds for school purposes. This will relieve the seller of the responsibility of collecting sales tax on the meals. Subsection (27) provides that athletic organizations are taxable on meals purchased from caterers and served to their players without charge. When such organizations purchase groceries and prepare meals, which they serve to their players without charge, such meals are exempt.
Rule 12A-1.037, F.A.C., exempts occasional or isolated sales. Rule 12A-1.037(3)(b)(2) states such sales must occur no more frequently than two times during any 12-month period. An entity with more than one place of operation in the State of Florida shall be considered a single entity. Auctions held by UNF departments will not qualify for exemption because more than two auctions are held each year for the UNF campus as a whole. The isolated sales exemption does not apply to sales made by or through an auctioneer, agent, broker, factor, or any other person registered or requiring to be registered as a dealer to engage in, conduct, or hold itself out as engaged in business, regardless of whether the sale of such items by the owner would have qualified the sale as an isolated sale.
Rule 12A-1.089, F.A.C., provides that the sale of a gift certificate is not taxable.
Rule 12A-1.073, F.A.C., provides that the lease or rental of parking or storage spaces for motor vehicles in parking lots or garages is taxable.
A dealer is required to collect tax on sales of tangible personal property, when the property is delivered to the purchaser or the purchaser's representative in Florida. Sales tax is not due if the exportation process remains continuous and unbroken until the property is exported from Florida.
Rule 12a-1.0015(2)(a), F.A.C., provides that a dealer is required to collect tax on sales of tangible personal property, when the property is delivered to the purchaser or the purchaser's representative in Florida, whether the disclosed or undisclosed intention of the purchaser is to transport the property to a location outside Florida, or whether the property is actually so transported. every sale of tangible personal property to a person physically present a the time of the sale is presumed to have been delivered in Florida.
Rule 12a-1.0015(2)(b), F.A.C. states when a dealer sells tangible personal property, commits the property to the exportation process at the time of the sale, and the exportation process remains continuous and unbroken until the property is exported from Florida, the dealer is not required to collect tax. the intent of the seller and the purchaser to export the property is not sufficient to establish that the property is not subject to tax in Florida. the delivery of the property to a location in Florida for subsequent export from Florida is insufficient to establish documentary evidence that the property sold was irrevocably committed to the exportation process. the following are examples of methods to commit the property to the exportation process at the time of the sale: Solution
Rule 12a-1.0015(2)(c), F.A.C., states any dealer who makes tax exempt sales of tangible personal property for export outside Florida is required to maintain records to document that the property is committed to the exportation process at the time of sale and that the exportation process is continuous and unbroken until the property is exported from Florida.
Examples of records to document sales for export to points outside Florida are provided in rule 12a-1.0015, F.A.C.
When a sale is canceled or merchandise is returned, sales tax that was remitted to the DOR is returned to the customer. The amount of sales tax returned to the customer must be charged to the appropriate account in order to facilitate proper reporting on UNF's sales tax return.
F.S. 212.17 addresses when a sale is canceled or merchandise is returned, sales tax that was remitted to the DOR is returned to the customer. The amount of sales tax returned to the customer must be charged to the appropriate account in order to facilitate proper reporting on UNF's sales tax return.
Transportation charges include carrying, delivery, freight, handling, pickup, shipping, and other similar charges or fees that are not separately stated on an invoice or bill of sale but are included in the sales price of taxable tangible personal property are subject to tax. If a purchaser cannot elect to avoid the charge for transportation services, the charge for the transportation service is subject to tax, even if separately stated on an invoice or bill of sale.
Rule 12A-1.045, F.A.C., provides that transportation charges include carrying, delivery, freight, handling, pickup, shipping, and other similar charges or fees that are not separately stated on an invoice or bill of sale but are included in the sales price of taxable tangible personal property are subject to tax. Where the seller agrees to deliver tangible personal property to some designated place and the purchaser cannot elect to avoid the charge for transportation services, the charge for the transportation service is subject to tax, even if separately stated on an invoice or bill of sale. The charge for transportation services is not subject to tax when both of the following conditions have been met: (a) The charge is separately stated on an invoice or bill of sale; and (b) The charge can be avoided by a decision or action solely on the part of the purchaser. If the seller contracts to sell tangible personal property F.O.B. origin, the title to the property passes at the point of origin. Since the title to the property passes at the point of origin, transportation services arranged by the seller and rendered to the buyer are not a part of the taxable selling price, provided the transportation charges are separately stated. Where the transportation charges are billed by the seller to the buyer but documentation is inadequate to establish the point at which title passed to the buyer, it is presumed that the tangible personal property was sold F.O.B. origin and the title to the property passes at the point of origin. In such instances, the transportation charges are not considered a part of the selling price of the property, if separately stated.
Expenditures normally made by UNF in the development and presentation of conferences, seminars and educational programs are not subject to sales or use tax when purchases are made directly by UNF to "carry on" its "customary" nonprofit educational activities.
When programs at UNF charge a lump-sum amount for tuition including payment for fees, books, supplies, or any other property required of a particular course or program, sales tax is required to be collected and remitted on the sale of tangible personal property sold to program participants.
When programs at UNF charge a lump-sum amount for tuition including payment for fees, books, supplies, or any other property required of a particular course or program, sales tax is required to be collected and remitted on the sale of tangible personal property sold to program participants. When including charges for tangible personal property (such as textbooks) as part of a lump-sum charge, there are two options:
Prepaid calling cards are subject to Florida sales tax on telecommunications at the rate of 7 percent at the moment of sale to the customer. The tax also applies to recharging or reactivating the calling card.
According to DOR TIP 99A01-18, effective July 1, 1999, prepaid calling cards are subject to Florida sales tax on telecommunications at the rate of 7 percent at the moment of sale to the customer. The tax also applies to recharging or reactivating the calling card. However, the discretionary sales surtax (local option) does not apply to the sale, recharge, or reactivation of the calling card. The dealer is responsible for collecting and remitting the sales tax to the Florida Department of Revenue. The term "prepaid telephone calling card" includes any prepaid telecommunication service that allows the user of the card the right to exclusively make telephone calls using an access number, authorization code, authorization number, wireless or cellular mobile telephone account, whether dialed manually or electronically.
The sale of mailing lists is subject to Florida sales tax.
TAA 96A-023 determined the sale of mailing lists is subject to Florida sales tax. The sale of mailing lists is considered a sale of tangible personal property and as such requires the collection and remission of sales tax on any sale made to a purchaser in Florida.
If you plan to exchange property for another piece of property, sales tax must be collected on the deemed "sale" of property to the other party even though property, not cash, is received in return for the sale of that property.
212.02(15) F.S. defines a sale as any transfer of title or possession, or both, exchange, barter, license, lease, or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for consideration. If you plan to exchange property for another piece of property, sales tax must be collected on the deemed "sale" of property to the other party even though property, not cash, is received in return for the sale of that property.
Charges for photocopies made as a result of a public records request are not subject to sales tax. See Rule as described in the applicable Florida Administrative Code Section copied below.
Florida Administrative Code Section 12A-1.041 Photographers and Photo Finishers; Sales by Public Officials of Public Records states.
5)(a) The fee prescribed by law, or the actual cost of duplication, for providing copies of public records by public officers or public employees under Chapter 119, F.S., is exempt from sales tax.
(b) Actual cost of duplication means:
(c) The charge for copying documents and other papers which are not public records and which can be copied by a dealer engaged in such business represents the sale of tangible personal property and is taxable.
A Direct Support Organization (DSO), such as the University of North Florida Foundation, Inc., of the University of North Florida is responsible for collecting and remitting sales tax on applicable taxable transactions processed in each organization's accounting system.
Each DSO is a separate legal entity and as such, has financial statements and a federal tax identification number separate from the university. Each DSO is responsible for collecting and remitting tax, including filing tax returns with appropriate taxing authorities such as the Florida Department of Revenue (DOR) and the Internal Revenue Service (IRS).
UNF Departments are ultimately responsible for complying with applicable tax rules and regulations. Each UNF department is liable for any interest and penalties that may be assessed during a DOR or IRS audit. When university departments process transactions using DSO accounts, it is the department's responsibility to coordinate with DSO accounting staff to ensure proper collection and remission of sales and other applicable taxes takes place. Sales tax must be remitted to the DOR by the entity (university or applicable DSO) that processes the transaction.
UNF must keep and preserve a complete record of all transactions, together with invoices, bills of lading, gross receipts from sales, Resale Certificates (Form DR-13), Consumer Certificates of Exemption (Form DR-14), Transaction Authorization Numbers or Vendor Authorization Numbers and other pertinent records and papers as may be required by the Florida Department of Revenue to determine the amount of sales tax due.
Records may be requested within 5 years after the date the tax is due, any return with respect to tax is due, or the return is filed, whichever occurs later or within 6 years after the date the taxpayer either makes a substantial underpayment of tax, or files a substantially incorrect return. (See F.S. 212.17(6), 212.18(2), and 213.06(1).)
Rule 12A-1.056, F.A.C., provides that all taxes required to be collected in any month shall be due on the first day of the month following the date of sale or transaction. The payment and return must either reach the DOR or be postmarked on or before the 20th day of the month following the date of sale or transaction.
UNF departments should retain all records for 6 years from the 20th day of the month following the date of sale or transaction.
This process describes the how to collect sales tax.
Section 212.06, F.S., provides that the full amount of the tax on a credit sale, installment sale, or sale made on any kind of deferred payment plan shall be due at the moment of the transaction in the same manner as on a cash sale. Section 212.031, F.S., provides that the tax imposed on rental or license fees shall be due and payable at the time of receipt of such rental or license fee payment.
Section 212.07(2), F.S., states that a dealer shall, as far as practicable, add the amount of the tax imposed under this chapter to the sale price, and the amount of the tax shall be separately stated as Florida tax on any charge ticket, sales slip, invoice, or other tangible evidence of sale. Subsection (4) states that a dealer may not advertise or hold out to the public, in any manner, directly or indirectly, that he or she will absorb all or any part of the tax, or that he or she will relieve the purchaser of the payment of all or any part of the tax, or that the tax will not be added to the selling price of the property or services sold or released or, when added, that it or any part thereof will be refunded either directly or indirectly by any method whatsoever.
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