12A-1.103. Mail Order Sales  


Effective on Thursday, April 17, 2003
  • 1(1) Every dealer, as defined in Section 8212.06(2)(c), F.S., 10who engages in the business of making mail order sales and who meets the requirements of Section 27212.0596(2), F.S., 29is exercising a taxable privilege in this state and is required to collect tax.

    43(2) A “mail order sale” is a sale of tangible personal property, ordered by mail or other means of communication, from a dealer who receives the order in another state of the United States, or in a commonwealth, territory, or other area under the jurisdiction of the United States, and transports the property or causes the property to be transported, whether or not by mail, from any jurisdiction of the United States, including this state, to a person in this state, including the person who ordered the property.

    131(a) Example: A multi-state company has stores located in Florida and a mail order division located in New York. The mail order division receives a customer telephone order for merchandise to be delivered to a Florida residence. The mail order division ships the item to the Florida residence. This is a mail order sale subject to Florida sales tax. The New York mail order division is required to collect Florida sales tax.

    203(b) Example: A Florida resident, while in New York, places an order for merchandise with a New York store and requests that the store deliver the merchandise to his or her Florida residence. This is not a mail order sale because the order was placed in person at the out-of-state location. The provisions of Section 258212.0596, F.S., 260for mail order sales are not applicable to this transaction.

    270(3) Dealer’s Responsibilities. Every dealer engaged in the business of making mail order sales is subject to the requirements of Chapter 212, F.S., including the requirement that the dealer register with the department; however, no registration fee is required for a mail order dealer.

    314(4) Transportation and Handling Charges. The total amount paid for tangible personal property, including transportation charges, handling charges, and any other charges whatsoever that occur prior to actual transfer of title of tangible personal property to the purchaser by the seller regardless whether such charges are separately stated, is subject to tax.

    366(5) Dealer’s Collection Allowance.

    370(a) The executive director of the Department of Revenue is authorized to negotiate a collection allowance with a dealer who makes mail order sales. However, the collection allowance negotiated shall not exceed 10% of the tax remitted for any reporting period.

    411(b) In making a determination of the amount of collection allowance authorized the Department may consider any of the following:

    4311. The estimated costs to the dealer of collecting the tax;

    4422. The volume and value of the dealer’s mail order sales to purchasers in this state;

    4583. The recognition by the dealer of its obligation to assume its fair share of the burden of maintaining this state’s prosperity and quality of life by collecting and remitting taxes on sales to purchasers who reside in this state; and

    4994. The cooperativeness of the dealer in resolving legal and other problems of taxing its mail order sales.

    517(6) Refund of taxes on mail order sales.

    525(a) When there has been a final adjudication, that any tax upon a mail order sales transaction was levied, collected, or both, contrary to the Constitution of the United States, or to the Constitution of Florida, or to both, the Department will, refund the amount of tax to the person who paid the tax. A “final adjudication” means a decision of a court of competent jurisdiction from which no appeal can be taken or from which the official or officials of this state with authority to make such decisions has or have decided not to appeal.

    621(b) To receive a refund of tax, the person who paid the tax must file an Application for Refund-Sales and Use Tax (Form DR-26S), incorporated by reference in Rule 65012-26.008, 651F.A.C., as provided in Rule 65612A-1.014, 657F.A.C.

    658Cross Reference: Rule 66112A-15.003, 662F.A.C.

    663Rulemaking Authority 665212.17(6), 666212.18(2), 667213.06(1) FS. 669Law Implemented 671212.02(14), 672(21), 673212.05, 674212.0596, 675212.06(2), 676(5), 677212.12(1), 678212.18(3), 679212.20(4), 680215.26(2) FS. 682History–New 12-8-87, Amended 8-10-92, 4-17-03.

     

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