Florida Tax Information Publication

TIP No: 19A01-01
Date Issued: January 11, 2019

Motor Vehicle Sales Tax Rates by State as of December 31, 2018

Motor Vehicles Sold in Florida to Residents of Another State

Florida law allows a partial exemption of sales and use tax to be collected on a motor vehicle purchased by a resident of another state. The amount of Florida sales tax to be collected is the amount of sales tax that would be imposed by the purchaser’s home state if the vehicle were purchased in that state. If the rate imposed in the purchaser’s home state is greater than 6%, the rate of Florida tax to be collected is 6%. The tax collected is Florida tax and must be paid to the Florida Department of Revenue.

For the partial exemption to apply, at the time of sale, the nonresident purchaser is required to complete Form DR-123, Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State, declaring the intent to license the vehicle in his or her home state within 45 days of the date of purchase. The completed Form DR-123 is provided to the selling dealer or, if purchased from an individual, to the tax collector or private tag agent when purchasing a temporary tag for the vehicle. If the nonresident purchaser licenses the motor vehicle in his or her home state within 45 days from the date of purchase, there is no requirement that the motor vehicle be removed from Florida.

The partial exemption for a motor vehicle sold in Florida to a nonresident purchaser does not apply to a nonresident corporation or partnership when:
 An officer of the corporation is a Florida resident;
 A stockholder who owns at least 10 percent of the corporation is a Florida resident; or
 A partner who has at least a 10 percent ownership in the partnership is a Florida resident.

However, the partial exemption may be allowed for corporations or partnerships if the vehicle is removed from Florida within 45 days after purchase and remains outside this state for a minimum of 180 days, regardless of the residency of the owners or stockholders of the purchasing entity.

Currently, the states of Arkansas, Mississippi, and West Virginia impose a sales tax on motor vehicles, but DO NOT allow a credit for taxes paid to Florida. Residents of these states should be informed that they must pay sales tax to Florida at the rate imposed by their home state when they purchase a vehicle in Florida, and must also pay tax to their home state when the vehicle is licensed in their home state.

Motor Vehicles Purchased in Another State and Brought into Florida

Florida’s use tax rate of 6% generally applies to motor vehicles purchased in another state, District of Columbia, or U.S. territory and subsequently titled, registered, or licensed in Florida.
Florida law allows a credit to be given to reduce the tax due when a like tax has been lawfully imposed and paid in another state, District of Columbia, or U.S. territory. Credit against Florida use tax and any discretionary sales surtax is given for a like tax paid in another state,

whether the tax has been paid to that state, or to a county or city (local taxes) within that state. If the amount paid is equal to or greater than the amount imposed by Florida, no additional tax is due. If the amount paid is less than the amount due as imposed by Florida, only the difference between the two tax rates is due.

Any motor vehicle used in another state, District of Columbia, or U.S. territory for six months or longer before being brought into Florida is presumed to be purchased for use outside Florida. When the vehicle owner provides documentation establishing that the vehicle was used outside Florida for six months or longer before being registered in Florida, no Florida use tax is due.

Rate Chart (attached via link to document - click here)

The attached chart contains information from each state regarding the rate of Florida tax to be imposed under this provision and whether credit for a trade-in is permitted by the home state. For sales of motor vehicles to residents of U.S. territories - American Samoa, Guam, Marianas, Puerto Rico, or the U.S. Virgin Islands - contact the Department.

The information in the chart may also be used to determine if Florida allows a credit for a like tax paid in another state.
This information is provided based on the best information made available to the Florida Department of Revenue as of the date of this publication. Contact the taxing authority in the non-resident purchaser’s home state to verify whether a credit of Florida sales tax paid will be allowed against any tax or fee due in the non-resident purchaser’s state of residence.

References: Sections 212.06(7), 212.06(8)(a), and 212.08(10), Florida Statutes