Published on: 6748695. The purpose of the proposed repeal of Rule 12A-1.029, F.A.C. (Labels and Other Printed Matter Sold to Manufacturers) and Rule 12A-1.075, F.A.C. (Deposits), the proposed amendments to Rule 12A-1.036, F.A.C. (Furniture and Storage Warehousemen), and the proposed substantial rewording of Rule 12A-1.040, F.A.C. (Containers and Other Packaging Materials; Gift Wrapping), is to: (1) consolidate and simplify provisions for packaging materials excluded from tax, as provided in Section 212.02(14)(c), F.S., and other materials that accompany a product for sale; (2) provide for the taxability of charges by, and materials used by, warehousemen for moving, storing, packing, and shipping tangible personal property belonging to other persons; and (3) provide for the taxability of charges for gift wrapping and the taxability of materials used in gift wrapping.
Section 212.02(14)(c), F.A.C., currently provides that one-time use items that accompany a product for the convenience of the customer are not subject to tax. Items accompanying food products when sold to a customer, such as aluminum foil covering a baked potato, steak markers used to indicate how a steak is cooked, toothpicks that secure a sandwich, and leftover bags provided to customers are not subject to tax. However, Rule 12A-1.040, F.A.C., currently provides that these items are subject to tax. This rulemaking is necessary to provide that these items are packaging materials that are not subject to tax.
In addition, Rule 12A-1.040, F.A.C., currently provides that “pallets for one-time use that are a part of packaging tangible personal property for shipment and sale are exempt.” This rulemaking is necessary to provide the criteria used to determine when pallets and other returnable packaging containers are not subject to tax.
Published on: 6420835. The purpose of the proposed repeal of Rule 12A-1.029, F.A.C. (Labels and Other Printed Matter Sold To Manufacturers), is to move provisions for sales of the following items to the substantial rewording of Rule 12A-1.040, F.A.C. (Containers and Other Packaging Materials; Gift Wrapping): (1) the sale of labels, name plates, and packing inserts used as packaging materials; (2) the sale of direction sheets and instruction books or manuals that provide instructions and accompany the product for sale; and (3) the sale of tangible advertising materials.
The purpose of the proposed amendments to Rule 12A-1.036, F.A.C. (Furniture and Storage Warehousemen), is to: (1) clarify that charges by warehousemen for moving, storing, packing, and shipping tangible personal property belonging to other persons are not subject to tax; (2) warehousemen who sell packaging materials and other items are required to register as dealers and collect sales tax on sales of taxable items; (3) provide that the payment of a claim for damaged merchandise is not a sale of tangible personal property; (4) provide that warehousemen who operate a business location to sell tangible personal property must collect tax on sales of tangible personal property; and (5) provide that the purchase of boxing, crating, shipping, and packaging materials for use by the warehousemen in performing their services of moving, storing, packing, and shipping tangible personal property belonging to other persons is subject to tax.
The purpose of the proposed amendments to Rule 12A-1.040, F.A.C. (Containers and Other Packaging Materials; Gift Wrapping), is to provide a single administrative rule regarding the taxability of containers and other packaging materials items that accompany a product for sale, the taxability of tangible advertising materials that accompany a product for sale, and the taxability of items used in gift wrapping. When in effect, the provisions of the substantial rewording will provide for the administration of sales and use tax for the following:
•Materials used for packaging tangible personal property for sale;
•Instructional materials that accompany the product when sold to customers;
•Tangible advertising materials that accompany the product to the customer;
•Containers used more than one time for packaging tangible personal property;
•Deposits charged for reusable containers and the taxability of those containers;
•Dunnage used to protect packages and cargo during shipment;
•Materials used by persons who are not required to collect tax for services provided to their customers; and
•Charges for gift wrapping and the taxability of materials used in gift wrapping.
The purpose of the proposed repeal of Rule 12A-1.075, F.A.C. (Deposits), is to move the provisions regarding the taxability of charges for returnable containers to the substantial rewording of Rule 12A-1.040, F.A.C.
Published on: 3906595. The Department has assembled a working draft of proposed amendments to Rule Chapter 12A-1, F.A.C. (Sales and Use Tax), for the purpose of gathering input and comment from the public regarding sales of grocery items, meals, snacks, and drinks. The Department will propose the final changes to Rule Chapter 12A-1, F.A.C., only after we receive input at this rule development workshop and input from interested parties who are unable to attend the workshop. We welcome your involvement in the development of these proposed rule amendments. If you are unable to attend, you may send comments and input to: Richard Parsons, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone (850)922-4838.
The purpose of the proposed amendments to Rule 12A-1.0011, F.A.C. (Schools Offering Grades K through 12; Parent-Teacher Associations; and Parent-Teacher Organizations), is to include meals or other prepared food products as examples of items sold for fund raising purposes.
The purpose of the proposed amendments to Rule 12A-1.005, F.A.C., is to provide that fees charged for entrance to a restaurant, tavern, night club, or similar place of business are subject to tax.
The purpose of the proposed substantial rewording of Rule 12A-1.011, F.A.C. (Sales of Food Products for Human Consumption by Grocery Stores, Convenience Stores, and Supermarkets; Drinking Water, Ice), is to clarify the application of tax on the sale of food products generally sold by grocery stores, convenience stores, supermarkets, bakeries, fish markets, produce markets, and other like places of business and on the sale of bakery products by bakeries, pastry shops, or like establishments. The provisions regarding the application of tax on food products generally served, prepared, or sold in or by restaurants, lunch counters, cafeterias, caterers, hotels, taverns, or other like places of business will be removed from the current rule and will be provided in Rule 12A-1.0115, F.A.C., as created. The current provisions of Rule 12A-1.011, F.A.C., are included in the substantial rewording of Rule 12A-1.011, F.A.C., or the creation of Rule 12A-1.0115, F.A.C., and, when necessary, are updated to be consistent with the provisions of Section 212.08(1), F.S., as amended by Chapter 98-408, L.O.F., regarding the taxability of food products.
The substantial rewording of Rule 12A-1.011, F.A.C., is intended to provide the application of sales or use tax for the following: (1) examples of exempt food products for human consumption; (2) the exemption provided for food products prepared off the seller’s premises when sold in the original sealed container or sliced into smaller portions; (3) bakery products when sold by bakeries, pastry shops, or like establishments that do not have eating facilities and bakery products when sold by such establishments that have eating facilities; (4) candy, gum, mints, and similar products; (5) food prepared on the seller’s premises and sold for immediate consumption; (6) hot prepared food products; (7) sandwiches sold ready for immediate consumption; (8) novelty items and frozen dairy or nondairy products; (9) soft drinks, including nonalcoholic beverages, noncarbonated beverage made from milk derivatives, and beverages containing fruit or vegetable juices labeled under federal standards as containing less than 100% juice; (10) tea sold in liquid form; (11) drinking water, ice, and additives; (12) the exemption provided for samples or donated food products; (13) food stamps or vouchers issued under authority of federal law; (14) packages containing both exempt food products and taxable food products or other items; and (15) the exclusion from tax for items and materials used one time only for packaging food products.
The purpose of the proposed creation of Rule 12A-1.0115, F.A.C. (Sales of Food or Drinks Served, Prepared, or Sold in or by Restaurants, Lunch Counters, Cafeterias, Caterers, Hotels, Taverns, or Other Like Places of Business and by Transportation Companies), is to provide the application of sales or use tax for the following: (1) food products generally served, prepared, or sold in or by restaurants, lunch counters, cafeterias, caterers, hotels, taverns, or other like places of business; (2) food products when sold by such establishments that also maintain a separate department that includes groceries; (3) when tax is due on the purchase of, or the cost of furnishing, food products consumed in places where an admission is charged for entrance; (4) when sales tax is to be collected on food products separately itemized and priced from the admission charge to a patron; (5) sales of meal tickets or coupon books and coupons or discounts for food products; (6) the exemption provided for donated food products; (7) when tax is due on complimentary food products; (8) food products sold or furnished by employers to employees; (9) food products sold by airlines, railroads (except Amtrak), vessels, or other transportation companies to their passengers while in Florida; (10) food products served, prepared, or sold by caterers and event planners; (11) purchases, leases, and rentals by caterers or event planners; (12) gratuities consistent with the guidelines established by the court in Green v. Surf Club, Inc., 136 So.2d 354 (Fla. 3rd DCA 1961), cert. den., 139 So.2d 694 (Fla. 1962); (13) fees for preparing or serving food products; (14) food products when furnished with living or sleeping accommodations at colleges or other institutions of higher learning; (15) the exemption provided for certain complimentary food and drinks provided by public lodging establishments; (16) food products when furnished with housing at labor camps or public housing quarters; (17) food products furnished at day care facilities, day camps, or other custodial camps; (18) the exemption provided to hospital patients and inmates or to residents of homes for the aged; (19) food products sold to or prepared and served by social clubs, civic clubs, or fraternal organizations; (20) food products sold to or by nonprofit organizations, religious institutions, and organizations sponsoring a fundraising event; and (21) the exclusion from tax for items and materials used one time only for packaging or serving food products.
The purpose of the proposed amendments to Rule 12A-1.040, F.A.C. (Sales of Containers, Wrapping and Packing Materials and Related Products), is to remove provisions regarding the packaging of food products that will be provided in Rule 12A-1.011, F.A.C., as substantially reworded, and Rule 12A-1.0115, F.A.C., as created.
The purpose of the proposed amendments to Rule 12A-1.071, F.A.C. (Rentals, Leases, or License to Use Tangible Personal Property), is to: (1) remove provisions regarding sales by caterers that will be provided in Rule 12A-1.0115, F.A.C., as created; and (2) remove provisions regarding water softening services that will be provided in Rule 12A-1.011, F.A.C., as substantially reworded.
The purpose of the proposed amendments to Rule 12A-1.097, F.A.C. (Public Use Forms), is to remove obsolete Form DR-46B (Examples of Nonalcoholic Preparations, Beverages and Drinks when Sold in Grocery Stores and Similar Establishments) which is no longer used by the Department.