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TIP #98(A)1-16
Date Issued: 07/02/98

Alternative Method of Calculating Estimated Tax for Boat, Motor Vehicle, and Aircraft Dealers.

Alternative Method for 1999 Estimated Sales Tax Payment
Boat, motor vehicle, and aircraft dealers have an alternative method available for calculating and paying their estimated sales tax. This method is first used to calculate Line 9 (estimated payment for January 1999) on the December 1998 Sales and Use Tax Return (Form DR-15).

Who Qualifies?
To qualify for the alternative estimated sales tax method, a dealer must have
made at least one sale of a boat, motor vehicle, or aircraft with a selling price of $100,000 or more in the previous state fiscal year.  The state fiscal year is from July lst through June 30th.

How To Apply
Dealers must apply before October 1st each year and be approved by the Department to use this alternative method. To apply, complete and mail the enclosed Boat, Motor Vehicle, or Aircraft Dealers Application for Special Estimation of Taxes (Form DR-300400) to:

Florida Department of Revenue
Return Reconciliation
5050 W Tennessee Street
Tallahassee, FL 32399-0100

Alternative Method of Calculating Estimated Tax
In addition to filing Form DR-15, dealers approved to use the alternative method will be required to:

pay estimated tax every month based on 66% of their average tax liability for all sales, excluding the sale of each boat, aircraft, or motor vehicle with a sales price of $100,000 or more during the previous state fiscal year; and,

pay the sales tax for each sale of a boat, motor vehicle, or aircraft with a sales price of $100,000 or more, by:

  • electronic funds transfer initiated on the date of the sale; or,
  • check submitted with a Single Transaction Sales and Use Tax Return (Form DR-300415) postmarked on the date of the sale.

SPECIAL NOTE:  If approved to use the alternative method described above, dealers will be required to pay estimated tax using ONLY this method for each month of the entire calendar year.

Alternative Estimated Tax Calculation Example
A yacht dealer reported taxable sales in the prior state fiscal year of $3,000,000.  Three boats were sold for prices more than $100,000 each, for a total of $600,000.  The net sales were $2,400,000.

A.Taxable sales (prior fiscal year)

$3,000,000

B.Less total of all individual sales of $100,000 or more

($600,000)

C.Net sales

$2,400,000

D.Total tax due (6% of Line C)

$144,000

E.Divide the amount on Line D by 12

$12,000

F.Monthly estimated tax (66% of Line E)

$7,920

Penalty and Interest

Failure to timely pay estimated tax using the alternative method and/or any tax due on a transaction of $100,000 or more on the date of sale will result in:




References:
s.212.11(4)(d), F.S.
Ch. 97-221, L.O.F. (CS/HB 915)

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