Sales and Use Tax on Tangible Personal Property Rentals

Definitions

Tangible Personal Property

Personal property that may be seen, weighed, measured, or touched or is in any manner perceptible to the senses, including electric power or energy.

Lessor

Owner of tangible personal property who grants permission to use property, in return for a rental payment.

Lessee

Person who uses tangible personal property in return for a rental payment paid to the lessor.

Rental Payment

Payment made directly to the lessor for temporary possession and use of tangible personal property, without the transfer of title to the property.

What is Taxable?

• Aircraft
• Amusement machines
• Beach umbrellas
• Bicycles
• Boats
• Books, audio tapes
• Computers and copiers
• Motor vehicles
• Roller skates, ice skates
• Sailboats, sailboards
• Skis, jet skis, surfboards

What is Exempt?

Here are a few examples of tangible personal property rentals that are exempt from sales tax:

• Rental of equipment when the owner furnishes the equipment, operator and supplies, and contracts their use to perform work under his direction according to his customer's specifications; and the customer does not take possession of the equipment or have any direction or control over the equipment or its operation.
• Charters of any boat or vessel with a crew, solely for the purpose of fishing.
• Air taxi charters to transport a passenger to a certain destination (passenger does not pilot or take possession of aircraft). However, rides for amusement purposes (such as helicopter rides) are taxable.
• Motion picture films, when an admission is charged for viewing the films.

All rentals to non-profit organizations are exempt, provided that the organization presents a current Florida Consumer's Certificate of Exemption (Form DR-14) to the lessor.

If you are unsure whether your leases or rentals are taxable, contact Taxpayer Services

Who Should Register to Collect Tax?

If you lease or rent taxable tangible personal property to someone else, you are required to register as a dealer and collect sales tax. There is no exemption for occasional or isolated rentals.

If you lease or rent taxable tangible personal property from someone else for the purpose of leasing it to a third party, you are required to register as a dealer and collect sales tax. After you register, you will receive an Annual Resale Certificate (Form DR-13). Present a signed copy of your Form DR-13 to the lessor in order to lease the property tax-exempt.

You can register to collect and/or report tax via the Department's Internet site. Go to www.myflorida.com/dor and click on e-Services . If you do not have Internet access, you can complete a paper Application to Collect and/or Report Tax in Florida (Form DR-1). Obtain Form Form DR-1 from your local DOR service center or one of the contacts listed below.

Reference Material

Tax Law

Call Taxpayer Services to request a copy of Rule 12A-1.071, Renting Tangible Personal Property, Florida Administrative Code. Tax laws are also available on the Department's Internet site. Tax laws are also available in the Florida Tax Law Library.

Brochures

The following brochures are available from your local DOR service center, the DOR Distribution Center, or Taxpayer Services:

• Amusement Machines
• Vending Machines
• Commercial Real Property Rentals
• Residential Real Property Rentals

For Information and Forms

Persons with hearing or speech impairments may call the TDD at 800-367-8331 or 850-922-1115.

• Order multiple copies of forms from our Internet site, or
• Mail form requests to:
  Distribution Center
  Florida Department of Revenue
  168A Blountstown Hwy
  Tallahassee FL 32304-3761