Secondhand Goods Dealers and Secondary Metals Recyclers

Requirements for registering with the Department of Revenue and collecting sales and use tax.

Definitions

Secondhand Dealer - Any person, corporation, or other business organization which is not a secondary metals recycler engaged in the business of purchasing, consigning, or trading secondhand goods at a fixed location.

Secondhand Goods - Any property previously owned or used, but does not include:

• Books
• Clothing
• Coins
• Costume Jewelry
• Motor Vehicles
• Office Furniture
• Organs
• Pianos
• Secondhand sports equipment (excluding golf clubs) that is not permanently labeled with a serial number

If you purchase, consign, or trade any previously owned or used items other than those listed above, you may be required to register as a secondhand dealer. Contact the Department for assistance in determining your registration requirements (see below).

Secondary metals recycler - Any person, corporation, or other business organization, operating at a fixed location or otherwise, that is engaged in gathering or obtaining ferrous or nonferrous metals that are converted into raw material products.

Ferrous metal - Metal containing significant quantities of iron or steel.

Nonferrous metal - Metal not containing significant quantities of iron or steel.

Pawnbroker - Any person who is engaged in the business of making pawns; who makes a public display containing the term "pawn," "pawnbroker," "pawnshop," or any derivative thereof; or who publicly displays a sign or symbol historically identified with pawns. See Chapter 539, Florida Statutes (F.S.).

What is Subject to Sales and Use Tax?

Retail sales of secondhand goods and secondary metals are subject to Florida's sales and use tax, as well as any discretionary sales surtax (county tax). The state sales tax rate is six percent; see Form DR-15DSS (Discretionary Sales Surtax Information) for a list of counties and their local sales tax rates. Collect the tax from the purchaser at the time of sale. Tax must be separately stated on your sales invoice or any other evidence of sale or rental.

Who is Exempt from Registering as a Secondhand Dealer or Secondary Metals Recycler?

The following types of businesses and transactions are exempt:

• Governments and nonprofit organizations that hold a valid Florida Consumer's Certificate of Exemption (Form DR-14).
• Internet sales and sales by businesses that primarily buy, sell, or trade motion picture videos and video games (provided they meet certain conditions) specified under Chapter 538, F.S.
• Any auction business defined in section 468.382(1), F.S.
• Pawnbrokers.

What Registration Forms Are Required?

A secondary metals recycler or secondhand dealer must complete two separate registration applications in order to conduct retail business in Florida:

• Application for Secondhand Dealer or Secondary Metals Recycler Registration (DR-1S).
• Application to Collect and/or Report Tax in Florida (DR-1).

If a secondary metals recycler is solely a wholesale operation, the business is not required to submit Form DR-1.

A pawnbroker must:

• First register with the Florida Department of Revenue as a sales and use tax dealer by completing Form DR-1.
• After receiving a sales and use tax number from the Department of Revenue, contact the Florida Department of Agriculture and Consumer Services to obtain the necessary forms for a pawnbroking license, which will also cover the secondhand selling of goods. Go to the Department of Agriculture's Internet site at www.800helpfla.com or call 800-435-7352.

Pawnbrokers are not required to complete Department of Revenue Form DR-1S.

How to Register

Step 1. Any business that applies for registration as a secondhand dealer or secondary metals recycler is required to undergo a background investigation. This includes corporations, sole proprietorships, joint ventures, associations, and any other type of business entity. A completed Department-issued fingerprint card, a full-face photograph, and a $47 processing fee for each owner, officer, director, or stockholder with a controlling interest must be submitted to the Department along with Form DR-1S. (Note: processing fees are subject to change without notice.) Detailed instructions are included on Form DR-1S.

To obtain a registration package, go to www.myflorida.com/dor/forms/ and click on "order tax forms to be mailed to you." Select form number GT-200405 (Registration Package - Secondhand Dlr/Second. Metals). The package includes Form DR-1S, three Department-issued fingerprint cards, and other useful information. If you need additional fingerprint cards, select form number GT-200402 (FBI Fingerprint Cards for Second. Dlr/Second. Metal). Typically, forms are delivered within three to five days. If you do not have Internet access, call Taxpayer Services (see below).

A separate application must be completed for each business location. The initial registration fee is $6 for each location owned by the same owner or legal entity. The registration must be renewed by October 1 of each year; the fee is $6.

Step 2. To register a business for sales tax collection, go to the Department's Internet site at www.myflorida.com/dor/eservices. 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 DR-1 from your local Department of Revenue service center or one of the contacts listed on the back panel.

Forms DR-1S and DR-1 may be submitted to the Department at the same time.

How to File Sales and Use Tax

You will use a Sales and Use Tax Return (DR-15) to file and pay sales and use tax. The Department will send you personalized forms after processing your Application to Collect and/or Report Tax in Florida (DR-1).

Reference Material

Tax Laws

You may research legal requirements of Chapter 538, Florida Statutes and review Rule 12A-17, Florida Administrative Code at the Department’s Internet site (www.myflorida.com/dor/law). Look for Chapter 538 information via “All Taxes” in the Florida Tax Law Library.

Brochures

A Florida’s Sales and Use Tax brochure (GT-800013) is available from your local service center, the Distribution Center, or Taxpayer Services.

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
  

Department of Revenue service centers host educational seminars about Florida’s taxes. To get a schedule of upcoming seminars or to register for one,

• Visit us online at www.myflorida.com/dor, click on "Taxes," then click on "Free Tax Seminars" under the "Tax Information" heading or
• Call the service center nearest you.