Florida Sales Tax Holiday
- Jul 27, 2012 | Susan McLain
“Florida law directs that no sales tax or local option tax (also known as discretionary sales surtax) will be collected on sales of clothing, footwear, and certain accessories selling for $75 or less per item, or on certain school supplies selling for $15 or less per item.
The Florida three-day tax holiday is in effect from 12:01 a.m. on Friday, August 3, 2012, through 11:59 p.m. on Sunday, August 5, 2012.”
Retailers should be aware of what is NOT exempt, such as:
- Sales of clothing or school supplies within a theme park, entertainment complex, public lodging establishment or airport.
- Repairs and alterations
Sales transactions that need special attention:
- Articles normally sold as a unit cannot be separately priced and sold as individual items in order to qualify for the exemption.
- Taxable and non-taxable items normally sold together as a “…set or single unit, the full price is subject to sales tax.”
- Buy One, Get One items “…cannot be averaged in order for both items to qualify for the exemption.”
- Gift certificates cannot be used to reduce the total sales price to qualify, but may be used to pay for the eligible item.
- Manufacturer’s coupons do not reduce the sales price in order to qualify an item for exemption.
- Store coupons and discounts can be used to reduce the price of an item to qualify for the exemption.
- Rain checks – “Tax-exempt items purchased during the exemption period using a rain check will qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check during the exemption period will not qualify an eligible item for the exemption if the item is actually purchased after the exemption period.”
- Layaway – A layaway item is exempt if the item is put on layaway during the sales tax holiday period, whether final payment is made during or after the exemption period. Items put on layaway prior to the sales tax holiday, but paid in full during the holiday will qualify for the exemption as well.
- Mail-orders – Mail orders made during the sales tax holiday time period are exempt “…even if delivery is made after the exemption period.”
Special note to Bay County dealers: The merchant’s license fee is included in the sales price of each item whether or not the fee is separately state on the invoice. Therefore, an item with a sales price of $74.95 and a merchant’s fee of .75, will bring the total sales price of the item to $75.70 and disqualifies the item for exemption.