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Florida Sales Tax Rules
12A-15.005
12A-15.004
12A-15.0035
12A-15.003
Rule 12AER18-07
12A-15.002
12A-15.001
12A-1.108
12A-1.001
12A-1.0011
12A-1.0015
12A-1.002
12A-1.003
12A-1.004
12A-1.005
12A-1.006
12A-1.007
12A-1.0071
12A-1.008
12A-1.009
12A-1.0091
12A-1.0092
12A-1.010
12A-1.011
12A-1.0115
12A-1.012
12A-1.014
12A-1.0141
12A-1.0142
12A-1.0143
12A-1.0144
12A-1.015
12A-1.016
12A-1.0161
12A-1.017
12A-1.018
12A-1.020
12A-1.021
12A-1.0215
12A-1.022
12A-1.023
12A-1.024
12A-1.025
12A-1.027
12A-1.029
12A-1.032
12A-1.033
12A-1.034
12A-1.035
12A-1.036
12A-1.037
12A-1.0371
12A-1.038
12A-1.039
12A-1.040
12A-1.041
12A-1.042
12A-1.043
12A-1.044
12A-1.045
12A-1.047
12A-1.048
12A-1.049
12A-1.051
12A-1.053
12A-1.055
12A-1.056
12A-1.057
12A-1.059
12A-1.060
12A-1.061
12A-1.0615
12A-1.062
12A-1.063
12A-1.064
12A-1.0641
12A-1.065
12A-1.066
12A-1.067
12A-1.068
12A-1.070
12A-1.071
12A-1.072
12A-1.073
12A-1.074
12A-1.075
12A-1.076
12A-1.077
12A-1.080
12A-1.081
12A-1.085
12A-1.087
12A-1.089
12A-1.090
12A-1.091
12A-1.0911
12A-1.094
12A-1.096
12A-1.097
12A-1.103
12A-1.104
12A-1.105
12A-1.107


100 West Cypress Creek Road, Suite 930

Fort Lauderdale, FL 33309

Office (954) 761-3700

Fax (954) 761-1004

8875 Hidden river PKWY, Suite 230

Tampa, FL 33637

Office (813) 775-2131

Fax (866) 388-3029

3500 Financial Plaza, Suite 330

Tallahassee, FL 32312

Office (850) 250-3830

Fax (866) 388-3029

Florida Sales Tax Rules

12A-1.045 Transportation Charges.

(1) "Transportation charges" include carrying, delivery, freight, handling, pickup, shipping, and other similar charges or fees.

(2) Transportation charges which 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.

(3)(a) 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.

(b)1. Example: X is in the business of selling liquefied petroleum (L.P.) gas, gas tanks, and other related equipment. Y agrees to purchase a 500 gallon above ground tank from X to be placed at Y's place of business and to make future purchases of L.P. gas from X. X requires a delivery fee of $25 for each L.P. gas tank that it sells and will not allow the customer to pick up the tank nor make arrangements with any other transportation company to deliver the tank to the designated place. Since the $25 delivery fee is required by the seller and is not an option to the buyer, the invoice correctly includes the $25 delivery charge in the amount subject to tax as follows:

500 Gallon L.P. Gas Tank

$500.00

Delivery Fee

$25.00

Total Taxable Amount

$525.00

2. Example: X places an order to purchase a jacket for $100 with a mail order company. The mail order company's policy is that all items are shipped F.O.B. destination through the U.S. mail or by common carrier as the method of shipping its merchandise to its customers. The mail order company makes a separate charge to all of its customers for transportation based on the weight of the item sold and the distance required to deliver the item to the desired place. Since the method of shipping is mandated by the mail order company, the transportation charge becomes a part of the sales price. The invoice correctly includes the transportation charge in the amount subject to tax as follows:

Jacket #5054

$100.00

Shipping and Handling Charges

$8.75

Total Taxable Amount

$108.75

(4)(a) The charge for transportation services is not subject to tax when both of the following conditions have been met:

1. The charge is separately stated on an invoice or bill of sale; and

2. The charge can be avoided by a decision or action solely on the part of the purchaser. (See subsection (5) for shipping of tangible personal property F.O.B. origin.)

(b)1. Example: B is in the business of renting furniture and appliances. B rents a refrigerator to Customer C. B's policy is to allow customers to elect whether to pick up the rental property at B's place of business or to agree to a $25 delivery fee which B separately states on the customer's invoice. Since the separately stated $25 delivery fee could be avoided by a decision or action on the part of C, the $25 delivery fee is not subject to tax.

2. Example: D is in the business of selling appliance repair parts. E desires to purchase a hot water heater element from D. D must order the hot water heater element for E from a wholesaler. D requires E to pay the transportation charges only if E elects to have the item shipped directly from the wholesaler to E's residence. E requests that D instruct the wholesaler to ship the hot water heater element directly to E's residence. Since the transportation charge is incurred at the election of E and could have been avoided by E, the invoice correctly excludes the transportation charge from the amount subject to tax as follows:

Water Heater Element

$25.00

Total Taxable Amount

$25.00

Shipping and Handling Charges

$3.25

3. Example: X places an order for a piece of equipment for $300 with a mail order company. The mail order company allows X to choose a method of shipping or will allow X to pick up the piece of equipment at the mail order company's place of business. Since X can make an election to avoid the charge for transportation services, the invoice correctly excludes the transportation charges as follows:

Equipment

$300.00

Total Taxable Amount

$300.00

Shipping and Handling Charges

$8.75

(5) 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 passes 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.

(a) Example: Company B is in the business of selling large industrial type generators. Company B is located out-of-state. Due to the size and cost of the generators and the cost of delivery of the generators, Company B only sells the generators F.O.B. origin. Company C purchases a generator for $1 million for its own use and requests that the generator be shipped to Company C's location in Florida. Since the title to the equipment passes to Company C at Company B's location, no tax is due on any separately stated transportation charge.

(b) Example: Company X is in the business of selling widgets at retail. Company X's customers may order the widgets to be shipped F.O.B. origin or F.O.B. destination. Customer Z places his order for a dozen widgets of various sizes to be shipped F.O.B. destination to his business location in Florida. Since Customer Z could have requested the widgets to be shipped F.O.B. origin or destination, the separately stated transportation charge is not considered a part of the sales price of the widgets and is not subject to tax.

(6) When the purchaser of taxable tangible personal property contracts with a third party carrier at the purchaser's option and pays transportation charges thereon directly to the third party carrier, such transportation charges are not subject to tax.

Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(4), (15), (16), (19), 212.06(1), 672.319, 672.401 FS. History– Revised 10-7-68, 6-16-72, Amended 7-3-79, Formerly 12A-1.45, Amended 10-17-94.

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