Florida Sales Tax Rules
12A-1.044 Vending Machines
(1)(a) For purposes of this rule, the terms "vending machine" and "vending machine operator" shall have the meaning ascribed to them in Section 212.0515(1), F.S.:
(b) For the purpose of this rule, possession of a vending machine means either actual or constructive possession and control. To determine if a person has constructive possession and control the following indicia shall be considered: right of access to the machine; duty to repair; title to the machine; risk of loss from damages to the machine; and the party possessing the keys to the money box. If, based on the indicia set out above, the owner of the machine has constructive possession and control, but the location owner has physical possession of the machine, then the operator shall be determined by who has the key to the money box and is responsible for removing the receipts. If both the owner of the machine and the location owner have the keys to the money box and are responsible for removing the receipts, then they shall designate in writing who shall be considered the operator. Absent such written designation, the owner of the machine shall be deemed to be the operator.
(2) All sales made through vending machines of food, beverages, or other items are taxed in the manner provided in Section 212.0515(2), F.S., except as provided in paragraphs (a) and (b). See subsection (2) of Rule 12A-15.011, F.A.C., for the effective tax rates for sales made through vending machines in counties imposing a discretionary sales surtax.
(a) Receipts from vending machines owned and operated by churches or synagogues are exempt. Such entities are not required to post a notice as required in subsection (4).
(b) Food and drinks sold for human consumption for 25 cents or less through a coin-operated vending machine sponsored by a nonprofit corporation under s. 501(c)(3) or (4) of the Internal Revenue Code of 1986, as amended, are exempt. The nonprofit corporation is not required to post a notice as required in subsection (4).
(c) Food and beverages sold or dispensed through vending machines or other dispensing devices located in the student lunchroom, student dining room, or other area designated for student dining in state-supported or parochial, church, and nonprofit private schools operated for and attended by pupils of grades K through 12 are exempt. See Rule 12A-1.0011, F.A.C.
(3) Registration. Owners or operators of vending machines must obtain a separate Sales and Use Tax Certificate of Registration (Form DR-11) for each county in which the machines are located. One Sales and Use Tax Certificate of Registration is sufficient for all the owner's or operator's machines within a single county. See Rule 12A-1.060, F.A.C.
(4) Notice to be displayed on each vending machine; penalty and interest for failing to display notice.
(a) Before an operator may operate a food or beverage vending machine in this state, the operator must post a notice on each vending machine. Token machines are not considered to be vending machines which require a notice.
(b) The notice must contain the exact wording of the following statements in type that is not smaller than 14 point bold face, and the words "cash reward" must not be smaller than 30 point:
NOTICE TO CUSTOMER:
FLORIDA LAW REQUIRES THIS NOTICE TO BE POSTED ON ALL FOOD AND BEVERAGE VENDING MACHINES. Report any machine without a notice to 1-800-352-9273. You may be eligible for a CASH REWARD.
DO NOT USE THIS NUMBER TO REPORT PROBLEMS WITH THE VENDING MACHINE SUCH AS LOST MONEY OR OUT-OF-DATE PRODUCTS.
(c) The notice must be displayed on the upper front of a vending machine, unless such placement impairs the use of the machine. If the notice cannot be placed on the upper front of the vending machine, then the notice must be displayed on another place on the machine where it is easily readable by the public. The notice must be affixed to the machine so it is not easily removed.
(d) Any vending machine operator who fails to properly obtain and display the required notice on any vending machine is subject to the penalties and interest as provided in Section 212.0515(4), F.S.
(5) Purchases or leases of vending machines.
(a) The purchase or repair of a vending machine is subject to tax.
(b) The purchase of machines, machine parts and repairs, and replacements thereof that are a component part of the machine, by the machine owner or lessor for exclusive rental is exempt. The machine owner or lessor must register with the Department and must issue a copy of the dealer's Annual Resale Certificate to the selling dealer to purchase these items tax exempt for the purposes of leasing or renting the machine.
(c) The lease or license to use a vending machine to an operator is taxable. The tax is to be collected by the machine owner or lessor from the operator. When there is an oral or written agreement for the lease or license to use a vending machine with a location owner (where the machines are located), the location owner (lessee) is required to be the operator of the machine. Sales tax shall be collected by the machine owner or lessor from the operator based on the amount the machine owner receives for the lease or license to use the machine.
(6) Lease or license to use real property; direct pay authority.
(a) If the machine owner is also the operator and the operator places the machine at another person's location, the arrangement between the machine operator and location owner is a lease or license to use real property. The location owner shall collect the tax from the machine operator on the amount the location owner receives for the lease or license to use the real property. The tax must be separately stated from the amount of the lease or license payment.
(b) The purchase of machines, machine parts and repairs, and replacements thereof that become a component part of the machine, by the machine operator (owner) is taxable. The machine operator should pay the sales tax to the seller of these items at the time of purchase.
(c) If the machine operator (owner or lessee) has obtained a direct pay permit from the Department, the permit may be presented to the location owner. The direct pay permit authorizes the machine operator to self-accrue and remit the tax due on the lease or license to use the real property and relieves the location owner of this obligation.
(7) The following examples are intended to provide further clarification of the provisions of this section:
(a) Example: A vending machine owner enters into a license agreement with City Airport, which grants the machine owner the right to place vending machines in Concourse A. The vending machines consist of soft drink, snack food, and candy machines. City Airport has the right to designate the areas within the concourse where the machines will be located; the machine owner is the operator and the machine owner and owner's employees are to stock the machines and provide repairs as needed. The machine owner (operator) is required to remit the tax on the total proceeds from the machines. In addition, as consideration under the agreement, City Airport will receive 15 percent of all proceeds from the machines. By the terms of the agreement, this arrangement is a license to use real property, and City Airport, as the licensor, must collect tax from the machine owner.
(b) Example: When a bottler removes a drink vending machine from inventory to be placed at a location on a "fill service basis" and collects a "service charge" from the location operator for keeping the machine stocked with drinks it sells the location operator, the bottler shall declare and remit to the Department of Revenue a use tax on the value of such vending machine of 6 percent when title to the vending machine remains with the bottler and the service charge collected covers stocking the machine, making necessary repairs, repainting, and maintenance. The service charge is not taxable. All parts used in repairing the machines shall be taxed at 6 percent as use tax. The tax on all merchandise sold through the machine at 10 cents per bottle or more shall be reported to the Department by the location operator.
(c) Example: A bottler who removes from inventory a drink vending machine to be placed at a location on a "full service basis" and pays the location owner consideration for the right to place the machine at the location shall declare and remit to the Department of Revenue a use tax on the value of the vending machine when it is removed from inventory. All parts used in repairing the machine shall be taxed at 6 percent as use tax. The bottler is considered to be the operator of the machine. The tax due on all merchandise sold through the machine at 10 cents per bottle or more shall be reported by the bottler. The location owner shall collect tax from the bottler on the amount the location owner receives as a lease or license to use the real property.
(d) Example: When a bottler removes from inventory a drink vending machine to be placed at a location under an agreement where the location owner is the operator, the bottler, as a registered dealer, may extend a copy of the dealer' Annual Resale Certificate (Form DR-13) to purchase vending machines or component parts for exclusive rental. The rental of the vending machine may either be on a per case basis or a flat monthly rate. In such instances, the tax must be collected by the bottler and remitted at the rate of 6 percent of the amount received as rental. Also, tax is due on all merchandise sold through the machine by the location owner (operator).
(8) If any vending machine used on a full service basis or for exclusive rental is later sold as a "used" machine, the sale to the purchasing customer is subject to tax.
Rulemaking Authority 212.0515, 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(10)(g), (14), (15), (16), (19), (24), 212.031, 212.05(1)(h), 212.0515, 212.054(1), (2), (3)(l), 212.055, 212.07(1), (2), 212.08(1), (7), (8), 212.11(1), 212.12(2), (3), (4), (9), 212.18(2), (3) FS. History–Revised 10-7-68, 6-16-72, 1-10-78, Amended 7-20-82, Formerly 12A-1.44, Amended 12-13-88, 5-11-92, 3-17-93, 9-14-93, 12-13-94, 3-20-96, 7-1-99, 6-19-01, 11-1-05, 1-12-11, 5-9-13.
