PDF Tax Information for Motor Vehicle Dealers

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GT-400400 R. 02/18

Tax Information for

Motor Vehicle Dealers

This publication was designed to be used as a training aid. It should not be used as a reference to cite the Department's position.

If legal advice or other expert assistance is required, dealers should obtain the services of a tax professional.

TABLE OF CONTENTS

Section 1 Introduction.............................................................................................................1-2

6HFWLRQ 'H?QLWLRQV ...............................................................................................................2-3

Section 3

0RWRU9HKLFOH'HDOHUV5HVSRQVLELOLWLHV ................................................................ 3-4 Dealer Responsibilities Refusing or Failure to Register In-State Dealers Out-of-State Dealers Multiple Locations Consolidated Returns

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&HUWL?FDWH2I5HJLVWUDWLRQ .....................................................................................5-6

Display Requirement

Effective Date

How Used in Transactions )ORULGD$QQXDO5HVDOH&HUWL?FDWHIRU6DOHV7D[

Suggested Format of an Exemption Statement )ORULGD&RQVXPHU?V&HUWL?FDWHRI([HPSWLRQ

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5HFRUGV ...................................................................................................................6-7 Records Required Statute of Limitations Accounting Systems Transferee Liability

Section 6

/RFDO2SWLRQ'LVFUHWLRQDU\6DOHV6XUWD[ .............................................................7-8 Sales of Motor Vehicles Surtax Cap of $5,000 on Tangible Personal Property (TPP) Motor Vehicles and Surtax Leases of Motor Vehicles

Section 7

7D[5HWXUQVDQG5HJXODWLRQV ..............................................................................8-18 Tax Due at Time of Sale Tax May Not be Absorbed Electronic Filing and Payment Requirements Estimated Tax Penalties Interest Collection Allowance Forms to be Used for Tax Remittance Consolidated Returns (Forms DR-15CON and DR-7) Combined Returns (Prime Number or County Control) Completing the Front of the DR-15 Sales and Use Tax Return How to Complete the Back of the DR-15 Sales and Use Tax Return How Does the Surtax Rate Apply to the $5000 CAP on the collection of DSS? Three Methods for Computing Estimated Tax Alternative Method for Estimated Sales Tax Payments Calculating Estimated Tax Using the Alternative Method Penalty and Interest for Underpayment of Estimated Tax

Florida Department of Revenue, Tax Information for Motor Vehicle Dealers, Page i

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&ROOHFWLRQDQG&RPSXWDWLRQ .............................................................................. 18-29 Taxable Base Applicable Tax Rate Taxable Sales Government Requirements Exempt from Tax Rental Payments Taxable Trade-in Allowance Separate Sales Transactions Dealer's Discount Manufacturer's Rebate Tax Calculation Tax Collected on Sales to Nonresidents Out-of-State Sales Tax Rates DR-15 Sales and Use Tax Return Out-of-State Purchasers Residing in States with a Sales Tax Rate Above 6% Exempt Transactions Sales for Resale Out-of-Country Exports Sales to Motor Carriers Sales to Exempt Entities /HDVHVWR*RYHUQPHQWDODQG1RQ3UR?W(PSOR\HHV Veterans Administration Service Warranties Tax Due at Time of Sale Repairs Lubrication Services Repairs to Tires Repairs to Vehicles Held in Inventory for Sale Insurance Claim Repairs Repairs to Vehicles Used as Rentals Wrecker Services Car Wash Services Replacement of Motor Vehicle (Lemon Law)

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8VH7D[ ................................................................................................................29-32 Dealers' License Plates Vehicles Not Held for Resale Taxable Loaner Vehicles Shop Overhead

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5HSRVVHVVLRQV%DG'HEWVDQG5HIXQGV ........................................................ 32-34 Repossessions Bad Debts Refunds and Credits

Florida Department of Revenue, Tax Information for Motor Vehicle Dealers, Page ii

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6ROLG:DVWH)HHV ................................................................................................34-39 Waste Tire and Lead-Acid Battery Fees Imposed on the Seller - Rules 12A-12.001 and 12A-12.0011, F.A.C Exempt Sales or Sales for Resale Remittance of the Solid Waste Fees Credits for Returns and Exchanges Motor Vehicle Warranty Fee (Lemon Law) Rental Car Surcharge- $2 per Day or Any Part of a Day Registration Remittance of the Surcharge Guaranteed Automobile Protection Insurance (GAP) Credit Card Discount Points

,QWDQJLEOH7D[ ...........................................................................................................39 Vehicle Financing

'RFXPHQWDU\6WDPS7D[ ....................................................................................39-40 Documentary Stamp Tax

&RUSRUDWH,QFRPH7D[ ............................................................................................. 40

5HHPSOR\PHQW7D[ .............................................................................................40-43 Reemployment Tax 'H?QLWLRQV Wages Tax Rate Tax Rate Calculation &ODLPVIRU%HQH?WV

0LVFHOODQHRXV,VVXHV .........................................................................................43-44 Reports of Large Currency Transactions How to Report When to File Where to File Penalties

$XWRPRELOH'HDOHUVKLS$XGLWV...........................................................................44-45 Sales Issues Purchase Issues Commercial Rental Issues Criminal Investigations

Florida Department of Revenue, Tax Information for Motor Vehicle Dealers, Page iii

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$WWKHHQGRIWKLVSXEOLFDWLRQ\RXZLOO?QGVDPSOHVRIWKHIROORZLQJ'HSDUWPHQWLVVXHG)RUPVDQG%URFKXUHV that cannot be found on our Internet site:

DR-11N &HUWL?FDWHRI5HJLVWUDWLRQ6DPSOH

DR-14

&RQVXPHU?V&HUWL?FDWHRI([HPSWLRQ6DPSOH

The following documents may be found on our Forms and Publications web page at ?RULGDUHYHQXHFRPIRUPV.

DR-2X

Sales Tax Rate Table.

DR-15DSS Discretionary Sales Surtax Information (Prior year rates are available along with current year rates)

DR-15SW Solid Waste and Surcharge Return

DR-16P Sales and Use Tax Direct Pay Permit (Sample 3)

DR-35

Motor Vehicle Warranty Fee Remittance Report

DR-95B Schedule of Florida Sales or Use Tax Credits Claimed on Repossessed Motor Vehicles

DR-123

$I?GDYLWIRU3DUWLDO([HPSWLRQRI0RWRU9HKLFOH6ROGIRU/LFHQVLQJLQ$QRWKHU6WDWH

DR-225

Documentary Stamp Tax Return for Registered Taxpayers' Unrecorded Documents

DR-228

Documentary Stamp Tax Return for Non-Registered Taxpayers' Unrecorded Documents

GT-800060 )ORULGD$QQXDO5HVDOH&HUWL?FDWHIRU6DOHV7D[LQFOXGHV6DPSOH&HUWL?FDWH

RT-6

Employer's Quarterly Report

The Tax Information Publication (TIP) for Motor Vehicle Sales Tax Rates by State is updated every January. The new TIP (and all previous TIPs for Motor Vehicle Sales Tax Rates by State) can be found in our Revenue Law Library on our website under "Sales and Use Tax," then select "Tax Information Publications."

The Department's website address is: ?RULGDUHYHQXHFRP

Florida Department of Revenue, Tax Information for Motor Vehicle Dealers, Page iv

Section 1

Introduction

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Motor Vehicle Dealers are responsible for being familiar with the tax laws of Florida. This document provides

you a helpful reference guide to:

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&KDSWHUVDQG)ORULGD6WDWXWHV)6 5XOH&KDSWHU$)ORULGD$GPLQLVWUDWLYH&RGH)$&

5HIHUHQFHV Chapters 212 and 213, F.S., and Rule 12A-1.007, F.A.C.

Be sure to access the Revenue Law Library and familiarize yourself with the Florida Statutes and the Florida Administrative Code through the Department of Revenue's website at ?RULGDUHYHQXHFRP or call or visit one of our service centers located throughout the state.

5HVRXUFHV If you go to our GENERAL TAX home page at ?RULGDUHYHQXHFRPWD[HV\RXZLOO?QGPDQ\UHVRXUFHV There are links to:

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7XWRULDOVon sales and use tax can help you learn Florida tax laws at your own pace and when it's convenient for you. Below is a listing of the sales and use tax tutorials we offer:

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