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TIP # 00A01-26
DATE ISSUED: : 09/20/00

Notice to Dealers of New Sales Tax Exemptions on Purchases
Made by Certain Non-Profit Organizations

Effective January 1, 2001, a sales tax exemption will be available for non-profit organizations that have been determined to be exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code. This exemption applies only to sales and leases directly to these organizations. Dealers are not to accept proof of 501(c)(3) status as sufficient evidence to make tax-exempt sales to these entities. A valid Consumer's Certificate of Exemption (Form DR-14) is required.

Effective July 1, 2000, new sales tax exemptions are available to certain non-profit water systems, certain state theater contract organizations, the Florida Fire and Emergency Services Foundation and non-profit groups that provide crime prevention, drunk driving prevention or juvenile delinquency prevention services. These new exemptions apply only to sales and leases directly to these organizations. A valid Consumer's Certificate of Exemption is required.

DEALERS' DUTIES

The sales tax exemptions outlined above are available only for direct purchases made by holders of a valid Consumer's Certificate of Exemption. Only those purchases made when the organization's exemption certificate is presented and the organization's own funds are used will qualify as "direct" purchases entitled to the sales tax exemption.

Purchases made with an individual's personal funds on behalf of the organization are taxable, even if the purchaser presents the organization's exemption certificate and states that he or she will be reimbursed by the organization. Dealers wishing to verify the validity of a Consumer's Certificate of Exemption may call the Department of Revenue's toll free touch tone verification system at 1-877-357-3725 (1-877-FLRESALE). Dealers must maintain documentation to support the exempt sale.





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 our site at www.myflorida.com/dor. Or call Taxpayer Services, Monday through Friday, 8:00 a.m., to 7:00 p.m., ET, at 800-352-3671 (for Florida residents only), or 850-488-6800

Hearing- or speech-impaired persons should call our TDD at 1-800-367-8331 or 850-922-1115.

For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, 1379 Blountstown Highway, Tallahassee, FL 32304-2716.

To receive a fax copy of a form, call 850-922-3676 from your fax machine telephone.

References:
Chapter 2000-223, L.O.F.
Chapter 2000-228, L.O.F.
Section 212.08(7)(p), F.S.
Section 212.08(7)(vv), F.S.
Section 212.08(7)(ccc), F.S.
Section 212.08(7)(ddd), F.S.