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 ...

 

DEPARTMENT OF REVENUE
Sales and Use Tax

RULE NO: RULE TITLE
12A-1.029: Labels and Other Printed Matter Sold to Manufacturers
12A-1.036: Furniture and Storage Warehousemen
12A-1.040: Sales of Containers, Wrapping and Packing Materials and Related Products
12A-1.075: Deposits
PURPOSE AND EFFECT: 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.
SUBJECT AREA TO BE ADDRESSED: The subject area of the rule development workshop is the proposed provisions regarding the taxability of: (1) materials, containers, labels, sacks, bags, or similar items intended to accompany a product for sale, as provided in Section 212.02(14)(c), F.S.; (2) tangible advertising materials, as provided in Section 212.02(14)(b), F.S.; and (3) the taxability of containers that are to be returned by the purchaser to the seller and the taxability of deposits by customers for returnable containers.
SPECIFIC AUTHORITY: 212.17(6), 212.18(2), 213.06(1) FS.
LAW IMPLEMENTED: 212.02(14), (15), (16), (18)-(21), 212.05(1)(b), 212.06(1)(a), 212.07(1)(b), 212.08(7)(v), 212.18(3) FS.
A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: December 9, 2008, 10:00 a.m.
PLACE: Room 118, Carlton Building, 501 S. Calhoun Street, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Larry Green at [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Janet L. Young, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone [phone]

THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS PUBLISHED ON THE DEPARTMENT’S INTERNET SITE AT: myflorida.com/dor/rules