TIP # 02A01-27
DATE ISSUED: 12/31/02
SALES OF MOTOR VEHICLES BY RELIGIOUS INSTITUTIONS AND ORGANIZATIONS PROVIDING BENEFITS TO MINORS AND PURCHASES OF MOTOR VEHICLES BY EXEMPT ORGANIZATIONS
Motor Vehicles Sold by Religious Institutions and Organizations Providing Benefits to Minors
Section 212.08(7)(m), Florida Statutes (F.S.), exempts the sale of tangible personal property by religious institutions. Section 212.08(7)(l), F.S., exempts the sale of donated property by nonprofit organizations whose primary purpose is to provide special educational, cultural, recreational, and social benefits to minors. These exempt statutory provisions include sales of motor vehicles. If the sale is exempt, tax cannot be imposed in the form of a use tax on the purchaser. Therefore, the transfer of title of a motor vehicle from a religious institution or a qualified nonprofit organization under Section 212.08(7)(l), F.S., to another party is not subject to tax.
The provisions in the law are restricted to sales by religious institutions and qualified nonprofit organizations under Section 212.08(7)(l), F.S. Sales by other nonprofit organizations are taxable. Also, sales made by an auctioneer who receives compensation for conducting an auction for a religious institution or a qualified nonprofit organization are not sales by the religious institution or the qualified Youth/Minor nonprofit organization and are taxable.
The exempt religious institution or qualified nonprofit organization should provide the purchaser with a bill of sale that identifies the exempt religious institution or qualified nonprofit organization and its Consumer's Certificate of Exemption number. The Consumer's Certificate of Exemption number will identify the entity as a religious institution by the last two digits of the number being 55 or, for a qualified Youth/Minor nonprofit organization, as 60.
To document this exemption on the HSMV 82040, Application for Certificate of Title With/Without Registration, the purchaser may check the "Other" box under Section 9, Sales Tax Exemption Certification, and make the notation "Exempt under s. 212.08(7)(m), F.S." for a sale by a religious institution, or "Exempt under s. 212.08(7)(l), F.S." for a sale by a qualified nonprofit organization. The religious institution's or nonprofit organization's Consumer's Certificate of Exemption number should also be noted on the application.
Purchases of Motor Vehicles by Exempt Organizations
Section 212.08(7), F.S., provides an exemption from sales tax on purchases by various nonprofit organizations for use in performing their customary nonprofit activities. This exemption includes the purchase of a motor vehicle. In order to establish the exempt status of the transaction, the exempt organization must hold, at the time of purchase, a Consumer's Certificate of Exemption issued by the Department, as stated in Section 212.08(7), F.S.
However, the purchase of a motor vehicle to be jointly titled in the name of a qualified exempt organization and a nonexempt party is fully taxable. This is true whether the names of the parties are joined by "and" or "or" on the title. Since the nonexempt party would not hold a Consumer's Certificate of Exemption, the jointly titled motor vehicle purchased in the name of an exempt organization and a nonexempt party would be taxable.
References: Sections 212.08(7), 212.08(7)(l) and (m), Florida Statutes
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.
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