English: 8-Hour License Renewal Auto Dealer Course
Sales and Use Taxes
assessment
Existing Dealers
Sales Taxes
The State of Florida requires the collection of 6% tax on all sales of taxable goods and services. As a dealer, you should understand that selling a vehicle anyone within the state will require the collection of tax unless your customer provides the Sales Certificate documentation to support exempt status.
Sales taxes are calculated based on the “taxable base” of the good being sold. In order to understand the taxable base, we must first understand what items are considered “taxable” and what items are not. With respect to the business of buying and selling vehicles, the following items are taxable:
- Sales price
- Freight
- Handling
- Delivery
- Notary fees
- Tire and waste fees
- Commissions
- Dealer Prep fees
Note: For leasing companies, there is a rental car surcharge of $2 per day applicable to the first 30 days of the lease. This fee is also taxable.
The following items are “non-taxable”:
- Vehicle trade-ins
- Tag and title registration fees
- Lien recording fees
Note: Manufacturer Rebates do not decrease the tax base; they only reduce the price to be paid by the customer.
We will discuss the calculation of Sales and Use Taxes, with Local Option Surcharges in a later section as these taxes are to be calculated and remitted on the same tax form DR-15: http://dor.myflorida.com/Forms_library/current/dr15.pdf
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Course
English: 8-Hour License Renewal Auto Dealer Course
Author
Joaquin Jimenez
Instructor
