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TIP #99A01-20
DATE ISSUED: 07/01/99

BOAT, MOTOR VEHICLE, AND AIRCRAFT DEALERS:
CHANGES IN THE ALTERNATIVE METHOD OF
CALCULATING ESTIMATED SALES TAX

Effective January 1, 2000, beginning with your December 1999 return, the threshold requirements and percentage used to calculate your monthly estimated tax payments change.

  • Threshold increases from $100,000 to $200,000
  • Percentage decreases from 66% to 60%

Alternative Method for Year 2000 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 used to calculate Line 9 (monthly estimated tax payment) on your 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 $200,000 or more in the previous state fiscal year (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 Form DR-300400 (Boat, Motor Vehicle, or Aircraft Dealers Application for Special Estimation of Taxes) to:

FLORIDA DEPARTMENT OF REVENUE
RETURN RECONCILIATION
5050 W TENNESSEE STREET
TALLAHASSEE, FL 32399-0100

You may obtain Form DR-300400 and other Department of Revenue forms from the Department's Web site at: http://www.myflorida.com/dor/ or from Fax on Demand (see details below).

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 60% of their average tax liability (see example below) for all sales during the previous state fiscal year, excluding the sale of each boat, aircraft, or motor vehicle with a sales price of $200,000 or more; and,
  • pay the sales tax for each sale of a boat, motor vehicle, or aircraft with a sales price of $200,000 or more, by:
    • electronic funds transfer initiated on the date of the sale; or,

    • check submitted with a Sales and Use Tax Return (Form DR-15CS) postmarked on the date of the sale.

Electronic Funds Transfer (EFT) and Electronic Data Interchange (EDI) requirements have not changed.

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 previous state fiscal year of $3,000,000. Three boats were sold for prices more than $200,000 each, for a total of $750,000. The net sales were $2,250,000 for the previous state fiscal year.

A. Taxable sales (previous state fiscal year)     $3,000,000
B. Less total of all individual
sales of $200,000 or more
    ($750,000)
C. Net sales     $2,250,000
D. Total tax due (6% of Line C)     $135,000
E. Divide the amount on Line D by 12
(this is your average tax liability)
    $11,250
F. Monthly estimated tax payment (60% of Line E)     $6,750

DO NOT UNDERESTIMATE. Underpayment of estimated tax will subject you to penalty and interest.

For More Information

References:
Ch. 99-239, L.O.F.
Section 212.11(4)(d), F.S.