May 31, 2019 Kym Graves

BLOG – Today Begins The Disaster Preparedness Sales Tax Holiday

Download Tax Information Publication Here

TIP #19A01-02Date Issued: 05/16/19

2019 Disaster Preparedness Sales Tax Holiday May 31 through June 6, 2019

The 2019 Disaster Preparedness Sales Tax Holiday begins on Friday, May 31, 2019, and ends on Thursday, June 6, 2019. During this sales tax holiday period, qualifying items related to disaster preparedness are exempt from sales tax.

The sales tax holiday does not apply to:

  • the rental or repair of any of the qualifying items.
  • sales in a theme park, entertainment complex, public lodging establishment, or airport.

Notice to Businesses with Multiple Locations

If you report sales tax for all of your locations on one consolidated tax return, please be sure you notify all of your individual store locations about this sales tax holiday and the specific provisions in this publication. A list of qualifying items and a copy of this publication are available on the Department’s website at floridarevenue.com

Qualifying Items

 Selling for $10 or less:

Reusable ice (reusable ice packs)

Selling for $20 or less:

Any portable self-powered light source (powered by battery, solar, hand-crank, or gas):

  • Candles, Flashlights, Lanterns

Selling for $25 or less:

Any gas or diesel fuel container, including LPgas and kerosene containers

Selling for $30 or less:

Batteries, including rechargeable batteries, listed sizes only (excluding automobile and boat batteries):

  • AAA-cell
  • AA-cell
  • C-cell
  • D-cell
  • 6-volt
  • 9-volt

Coolers and ice chests (food-storage; non-electrical)

Selling for $50 or less:

  • Bungee cords
  • Ground anchor systems
  • Radios (powered by battery, solar, or hand-crank)
  • Two-way
  • Weather band
  • Ratchet Straps
  • Tarpaulins (tarps)
  • Tie-down kits
  • Visqueen, plastic sheeting, plastic drop cloths, and other flexible waterproof sheeting

Selling for $750 or less:

Portable generators used to provide light or communications or to preserve food in the event of a power outage.

Note: Eligible light sources and radios qualify for the exemption even if electrical cords are also included.

Items Normally Sold as a Unit

Items normally sold as a unit must continue to be sold in that manner; these items cannot be separately priced and sold individually to get the sales tax exemption.

Example 1:

A multi-battery package sells for $25.The package contains an assortment of AA, C, and D cell batteries. The battery package qualifies for the tax exemption since the sales price of the package containing qualifying items is less than $30.

Example 2:

A ground tie-down kit with four tie-downs and related accessories sells for $100. The kit cannot be sold as four different packages to qualify

for the exemption.

Sets Having Exempt and Taxable Items

When qualifying items are normally sold together with non-qualifying taxable merchandise as a set or single unit, the price of the set or unit is subject to sales tax.

Example: Four AA rechargeable batteries are sold in a package that includes a battery charger for$25. Although the batteries would qualify for the exemption if sold separately during the sales tax holiday period, the battery charger does not qualify. The full sales price of $25 is taxable.

Buy One, Get One Free or for a Reduced Price

The total price of items advertised as “buy one, get one free” or “buy one, get one for a reduced price” cannot be averaged for both items to qualify for the exemption.

Gift Cards

The sale of a gift card is not taxable. A gift card does not reduce the selling price of an item. Qualifying items purchased during the sales tax holiday period using a gift card qualify for the exemption, regardless of when the gift card was purchased. Qualifying items purchased after the sales tax holiday period using a gift card are taxable, even if the gift card was purchased during the sales tax holiday period.

Exchanging a Purchase After the Sales Tax Holiday Expires

When a customer buys a qualifying item during the sales tax holiday period, then later exchanges the item for the same item (e.g., different size or color) no tax is due, even if the exchange is made after the sales tax holiday period. When a customer buys a qualifying item during the sales tax holiday period, then later returns the item and receives credit on the purchase of a different item, the new item purchased is subject to sales tax.

Returns

When a customer returns an item purchased during the sales tax holiday period and requests a refund or credit of tax:

  • The customer must produce a receipt or invoice showing tax was charged and paid on the original purchase of the item, or
  •  The retailer must have sufficient documentation to show tax was paid on the original purchase of the item.

Coupons, Discounts, and Rebates

The sales price of an item includes all consideration received by the retailer for that item. It is not limited to the amount paid by a customer. A coupon, discount, or rebate offered by the retail seller reduces the sales price of an item because it reduces the total amount received by the retail seller for such an item. Because a retailer’s coupon, discount, or rebate actually reduces the sales price of an item, such discounts may be used to determine whether an item qualifies for the exemption.

However, a retailer is reimbursed for the amount of any discount created by a manufacturer’s coupon, discount, or rebate, and the amount of the reimbursement is included in the total sales price of the item. Because the sales price is not actually reduced by a manufacturer’s coupon, discount, or rebate, such discounts cannot be used to determine if an item qualifies for the exemption.

Example:

A customer buys an $800 generator. The retailer offers a 10% discount. After applying the 10% discount, the final amount received by the seller for the generator (the sales price) is $720.The generator is exempt (it is less than $750).

Example:

A customer buys a $35 package of AA-cell batteries. The manufacturer offers a $5 instant rebate redeemed when the batteries are sold.

Although the purchaser pays $30, the retailer’s sales price remains at $35 because the retailer will receive a total of $35 for the item: $30 from the purchaser and $5 from the manufacturer. The battery package does not qualify for the exemption (it is more than$30).

Example:

A gas container sells for $30. The store offers an instant rebate of $5 for the purchase of the gas container. The customer redeems the $5store rebate and pays the retailer $25 for the gas container. The retailer’s sales price is reduced to $25 and the gas container qualifies for the exemption.

Rain Checks

Qualifying items purchased during the sales tax holiday period using a rain check qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check during the sales tax holiday period will not allow for a qualifying item to be exempt if the item is purchased after the sales tax holiday period.

Layaway Sales

A layaway sale is a transaction where merchandise is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the purchase price over a period of time, and receives the merchandise at the end of the payment period. Qualifying items sold as layaway sales qualify for the exemption when the customer:

  • Takes delivery of the merchandise during the sales tax holiday period, or
  • Puts a qualifying item on layaway, even if the final payment is made after the sales tax holiday period.

Mail-Order Sales

Qualifying items purchased by mail order, catalog, or through the internet are exempt when the order is accepted by the mail-order company during the sales tax holiday period for immediate shipment, even if delivery is made after the sales tax holiday period.

Shipping and Handling

Shipping and handling charges are typically part of the sales price of an item, even if they are separately stated. If multiple items are shipped on a single invoice, the shipping and handling charge must be fairly assigned to each item on the invoice to determine if an item is exempt during the sales tax holiday. If the customer has the option of having the item shipped and the shipping charges are separately stated, then the shipping charges are not included in the sales price.

Service Warranties

The taxation of any charges for a service warranty contract depends on the taxability of the product being sold. If the retail sale of an item is exempt from tax, the charge for a service warranty sold with the item is exempt.

Recordkeeping

Sales of qualifying items sold during the sales tax holiday period should be reported as exempt sales on your sales tax return.

Panama City and Panama City Beach Dealers Only 

Panama City and Panama City Beach impose on retailers a 1% merchant’s license fee or tax. The merchant’s license fee is included in the sales price of each item. If the fee is separately stated, it must be assigned to the sales price of each item on the invoice to determine if an item is exempt during the sales tax holiday.

Example – Panama City and Panama City Beach ONLY: An ice chest sells for $29.95. The1% merchant’s license fee is $.30. The total value of the ice chest is $30.25 ($29.95 + .30). The ice chest does not qualify for the sales tax exemption.

FOR MORE INFORMATION

This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance.

For forms and other information, visit the Department’s website at floridarevenue.com or call Taxpayer Services at 850-488-6800, Monday through Friday (excluding holidays).

For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services MS 3-2000, 5050 West Tennessee Street, Tallahassee, FL 32399-0112.

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  • Download Tax Information Publication Here
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