From the Florida Department of Revenue web site:
Sales and Use Tax on Motor Vehicles
What every dealer should know about selling or leasing motor vehicles.
Definitions
Motor Vehicle An automobile, motorcycle, truck, trailer, semitrailer, truck tractor and semitrailer combination, or any other vehicle operated on the roads of this state that is used to transport persons or property and propelled by power other than muscular power. The term includes recreational vehicles, such as motor homes and travel trailers. Taxable Sales Price The full sales amount before any deductions are made for federal taxes, freight, handling, delivery, commission, advertising, future free service, or any other expense or cost. Costs for titling, licensing, and registration are not subject to tax if separately stated. A trade-in that the dealer intends to resell reduces the sales price if the sale and trade occur in one transaction. Manufacturer rebates are not considered a reduction in the sales price. Tax must be calculated on the taxable sales price before the rebate is deducted.
What is Taxable?
Six (6) percent sales tax must be paid on all new or used motor vehicles sold, leased, and/or delivered in Florida, unless specifically exempted by law. The purchase of a motor vehicle in this state by a resident of another country is taxable at 6 percent.
Many counties also impose a local discretionary sales surtax, which applies to the first $5,000 of each lease payment or the total sales price. Discretionary sales surtax is due on the purchase or lease of a motor vehicle when the residence address of the purchaser (as shown on the registration) is in a Florida county that imposes a surtax. For more information, ask for a
Discretionary Sales Surtax brochure and a list of surtax counties and rates (
Form DR-15DSS).
Who is Exempt?
Here are examples of motor vehicle sales that are exempt from sales and use tax:
- The seller delivers the vehicle outside of Florida.
- A Florida registered motor vehicle dealer purchases the vehicle for resale or lease.
- A Florida registered export/import company purchases a vehicle for resale and will immediately export it outside of Florida.
- A nonresident dealer who does not have a Florida sales tax number purchases a vehicle for resale or lease.
- A nonprofit organization purchases a vehicle and presents a current Florida Consumer's Certificate of Exemption (DR-14) to the seller.
Here are examples of motor vehicle sales that are
partially exempt from sales and use tax:
- If a Florida dealer sells a motor vehicle to a resident of another state that imposes a sales tax of less than 6 percent and the purchaser takes possession of the vehicle in Florida, the purchaser's home state tax rate may be applied to the sale. Other restrictions may apply.
- In order to be eligible for the lower tax rate, the purchaser must give the dealer a completed, notarized Affidavit for Partial Exemption of Motor Vehicle Sold for Licensing in Another State (DR-123). The dealer must keep the affidavit for 3 years.
Example #1: Residents of North Carolina sign the affidavit and pay no sales tax because their state has no sales tax on motor vehicles.
Example #2: Residents of Alabama sign the affidavit and pay 2 percent sales tax because Alabama has a 2 percent sales tax rate on motor vehicles.
- All tax collected must be remitted to the Florida Department of Revenue. The tax should never be sent to the purchaser's home state. For more information, ask Taxpayer Services for a copy of Motor Vehicle Sales Tax Rates by State.
- If a vehicle is purchased by a nonresident corporation or partnership, tax is due if any officer of the corporation, or any stockholder or partner who owns at least 10 percent of the corporation or partnership, is a Florida resident. However, if the vehicle is removed from Florida within 45 days after purchase and remains out of the state for a minimum of 180 days, the purchasing entity may qualify to pay its home state tax rate, despite the residency of its owners, stockholders, or partners.
- The portion of the invoice that the Veterans Administration pays directly to the dealer on behalf of the veteran.
All exemptions must be properly documented. For more information, contact Taxpayer Services (see "Whom to Call").
