The purpose of the proposed amendment to Rule 12A-1.006 (Charges by Dealers Who Adjust, Apply, Alter, Install, Maintain, Remodel, or Repair Tangible Personal Property), F.A.C., is to remove provisions regarding the exemption for labor charges for ...

 

DEPARTMENT OF REVENUE

Sales and Use Tax

RULE NO.:RULE TITLE:

12A-1.006Charges by Dealers Who Adjust, Apply, Alter, Install, Maintain, Remodel, or Repair Tangible Personal Property

12A-1.0071Boats Temporarily Docked in Florida

12A-1.025Receipts from Sales of Tangible Personal Property Sold to Building Operators, Business Establishments, Offices

PURPOSE AND EFFECT: The purpose of the proposed amendment to Rule 12A-1.006 (Charges by Dealers Who Adjust, Apply, Alter, Install, Maintain, Remodel, or Repair Tangible Personal Property), F.A.C., is to remove provisions regarding the exemption for labor charges for the repair and maintenance of certain aircraft that is redundant of paragraph 12A-1.007(10)(j), F.A.C. The purpose of the proposed amendments to Rule 12A-1.0071 (Boats Temporarily Docked in Florida), F.A.C., is to clarify the time periods that are tolled for boats purchased exempt from Florida tax when the boat is placed in a registered Florida repair facility, and to remove obsolete references to effective dates. The purpose of the proposed repeal of Rule 12A-1.025 (Receipts from Sales of Tangible Personal Property Sold to Building Operators, Business Establishments, Offices), F.A.C., is to remove an unnecessary rule.

SUMMARY: The proposed rule amendments remove redundant or obsolete language, and the proposed rule repeal removes an unnecessary rule.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 212.18(2), 213.06(1), 213.22(3), FS.

LAW IMPLEMENTED: 212.02(4), (14)(a), (15), (16), (17), (20), (25), 212.05(1), 212.06(1), (2), (5)(a)1., (8), (12), 212.08(7)(t), (v), FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: January 15, 2020, 10:00 a.m.

PLACE: 2450 Shumard Oak Boulevard, Building One, Room 1220, Tallahassee, Florida. If a meeting is requested in writing, members of the public can also attend electronically via webinar; registration information will be posted to the Department’s website at http://floridarevenue.com/publicmeetings.

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: Tonya Fulford 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 IS: Danielle Boudreaux, Technical Assistance and Dispute Resolution, Department of Revenue, P.O. Box 7443, Tallahassee, Florida 32314-7443, telephone [phone], email [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

12A-1.006 Charges by Dealers Who Adjust, Apply, Alter, Install, Maintain, Remodel, or Repair Tangible Personal Property.

(1)(a) Where parts are furnished by the repairer, the entire charge the repairer makes to a customer for adjusting, applying, installing, maintaining, remodeling, or repairing tangible personal property is taxable, except as otherwise provided in paragraph (b) of this subsection.

(b) Effective October 1, 1994, separately stated labor charges for the repair and maintenance of aircraft with a maximum certified take-off weight of more than 20,000 pounds are exempt, but the charges for parts and equipment furnished in connection with such labor charges remain taxable. If the charges for labor are not separately stated on the customer’s invoice, then the entire charge for the repair or maintenance is taxable, unless the repairer (dealer) can establish by evidence in the dealer’s records that the dealer furnished no parts or equipment which were incorporated into or attached to the aircraft. See paragraph 12A-1.007(10)(k), F.A.C.

(c) redesignated (b); No change.

(2) through (18) No change.

Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(4), (15), (16), (17), (20), 212.05(1), 212.06(1), (2), (5)(a)1., 212.08(7)(v), 212.21(2) FS. History–New 10-7-68, Amended 6-16-72, 12-11-74, 12-31-81, Formerly 12A-1.06, Amended 7-7-92, 10-17-94,_______.

 

12A-1.0071 Boats Temporarily Docked in Florida.

(1)(a) Notwithstanding Effective September 1, 1992, notwithstanding the provisions of Chapter Chapters 327 and 328, F.S., pertaining to the registration of vessels, a boat upon which sales or use tax has not been paid is exempt from the use tax if it enters and remains in Florida this state for a period not to exceed a total of 20 days in any calendar year, calculated from the date of first dockage or slippage at a facility registered with the Department.

(b)1. When Effective September 1, 1992, if a boat brought into Florida this state for use under this section is placed in a facility that is registered as a dealer with the Department, for repairs, alterations, refitting, or modifications and such repairs, alterations, refitting, or modifications are supported by written documentation, the 20-day period is shall be tolled during the time the boat is physically in the care, custody, and control of the repair facility.

2. The Effective September 1, 1992, the 20-day time period may be tolled only once within a calendar year when a boat is placed for the first time that year in the physical care, custody, and control of a registered repair facility, including the time spent on sea trials conducted by the facility; however, the owner may request and the Department is authorized to grant an additional tolling of the 20-day period for purposes of repairs that arise from a written guarantee given by the registered repair facility, when the guarantee covers only those repairs or modifications made during the first tolled period. All requests for additional tolling must be addressed to the Florida Department of Revenue, Compliance Determination-Campaigns, P.O. Box 6417, Tallahassee, Florida 32314-6417. All requests for the additional tolling period must be in writing, setting out the boat owner’s name; the boat’s description, which includes the name, make, model, year, serial number, and hull identification number of the boat; the trade name and mailing address of the registered repair facility; and the registered repair facility’s dealer’s certificate of registration number assigned by the Department. The Department will notify the dealer in writing of its determination of the request for the additional tolling period, and will grant the additional tolling, if the documentation provided is complete and guarantees to cover only the repairs or modifications made during the first tolled period. Additionally, a copy of the written guarantee required in this subsection shall be maintained as a part of the repair facility’s records for at least 5 years or until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

(c)1. Upon Effective September 1, 1992, upon completion of the repairs, alterations, refitting, or modifications, the registered repair facility must have in its possession, within 72 hours after the date of release, a copy of the release form which shows the date of release and a copy of the certification of any necessary sea trials performed by the repair facility, including the dates and time of the sea trial necessary to test the designated repairs, alterations, modifications, or seaworthiness of the boat, and the release of the boat. In addition, the repair facility shall maintain a log that documents all alterations, additions, repairs, and sea trials during the time the boat is under the care, custody, and control of the facility. The records required in this subsection shall be maintained as a part of the repair facility’s records for at least 5 years or until tax imposed by Chapter 212, F.S., may no longer be determined and assessed under Section 95.091(3), F.S.

2. through 3. No change.

(d) When, within 6 months after the date of its purchase, a boat is brought into Florida and placed into a facility registered with the Department for repairs, alterations, refitting, or modifications as provided in the rule this state under paragraphs (a), (b) and (c), the 6-month period provided in Section 212.05(1)(a)2. or 212.06(8), F.S., is shall be tolled. See subsection 12A-1.007(9), F.A.C.

(e) During Effective September 1, 1992, during the period of repairs, alterations, refitting, or modifications and during the 20-day period referred to in paragraphs (a) and (b), the boat may be listed for sale, contracted for sale, or sold exclusively by a broker or dealer registered with the Department without incurring a use tax. The sale of the boat is subject to tax. ; however, sales tax applies to all such sales.

(f) The mere storage of a boat at a registered repair facility does not qualify as a tax-exempt use in Florida this state.

(2) through (3) No change

Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 92.525(1)(b), (3), 117.05(13), 212.02(25), 212.05(1), 212.06(8), (12), 212.08(7)(t), 213.37, 328.03, 328.56, 328.58, 837.06 FS. History–New 12-8-87, Amended 8-10-92, 3-17-93, 5-18-94, 3-20-96,_____.

 

12A-1.025 Receipts from Sales of Tangible Personal Property Sold to Building Operators, Business Establishments, Offices.

Rulemaking Authority 212.17(6), 212.18(2), 213.06(1) FS. Law Implemented 212.02(14)(a), 212.05(1), 212.06(1)(a) FS. History–New 10-7-68, Amended 6-16-72, Formerly 12A-1.25, Repealed_______.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Tammy Miller

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Governor and Cabinet

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 3, 2019

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 31, 2019