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    • Navigating Salex Tax Collection: Essential Guidelines for Motor Vehicle Dealers

    Hello Motor Vehicle, Mobile Home, and Vessel Dealers! In the dynamic landscape of motor vehicle transactions, it's vital to ensure that all aspects are handled accurately and in accordance with the law. One significant area of focus is the collection of sales tax and discretionary sales surtax when applicable. The Tax Collector's Office is here to provide you with essential insights and guidelines on navigating this process seamlessly and responsibly.

    Sales Tax Collection: A Dealer's Responsibility

    When a motor vehicle, mobile home, or vessel transaction is facilitated by a dealer, the dealer is mandated to collect the appropriate sales tax and any applicable discretionary sales surtax. It's crucial to communicate this clearly to your customers and to ensure that the correct amount of tax is collected.

    How to Show Tax Collected

    There are several methods to indicate the sales tax collected:

  • The sales tax amount may be indicated on the Florida Certificate of Title being transferred.
  • Forms HSMV 82091 (Reassignment Supplement to a Certificate of Title) or HSMV 82994 (Motor Vehicle Dealer Title Reassignment Supplement) may be used when applicable.
  • For new motor vehicles, mobile homes, or vessels, or those with out-of-state proof of ownership sold by a dealer, form HSMV 82040 may be used.

    • Important Details to Include

    When collecting sales tax, dealers must provide essential details, including:

  • Firm name
  • Dealer license number (if applicable)
  • Sales tax registration number
  • Signature

    • Even in cases where sales tax is not applicable, dealers' information (name, address, and license number if applicable) must still be included on the reassignment document.

    Sales to Out-of-State Residents

    When conducting a sale from a Florida motor vehicle dealer to a resident of another state within the United States, specific provisions apply under Section 212.08(10)(a) of the Florida Statute. The sale is considered taxable in an amount equal to the sales tax that would be imposed on the same sale in the purchaser's state of residence. For more detailed information, you can refer to the Department of Revenue's Tax Information Publication 18A01-01.

    However, it's important to note that the sales tax collected from the out-of-state resident must not exceed Florida's state sales tax rate of six (6) percent. Notably, no Florida discretionary sales surtax is imposed on these types of sales. When referring to the "Motor Vehicle Sales Tax Rates by State and Tax Credit Application," if a state charges a "usage" or "excise" tax, Florida sales tax is not applicable.

    Let's take an example to illustrate this concept: Suppose another state charges 0% sales tax on new and used motor vehicles but imposes a 6% motor vehicle "usage tax."

    In this case:

  • Florida would not impose sales tax on the out-of-state resident for the motor vehicle purchase.
  • At the time of the sale, the purchaser is required to execute a notarized statement expressing their intent to license the vehicle in their state of residence within 45 days from the purchase date.
  • The purchaser must pay Florida sales tax to the dealer conducting the sale or to the appropriate tax collector's office or license plate agent in the event of a private sale. The tax amount should be equivalent to the sales tax rate in the purchaser's state of residence.
  • The purchaser must provide the dealer or the relevant tax collector's office or license plate agent with a signed copy of the notarized statement. The dealer should retain this copy in their records.
  • Finally, the original notarized statement must be submitted to the appropriate sales tax collection agency in the purchaser's state of residence.

    • To facilitate this process, the Florida Department of Revenue has created form DR-123, the Affidavit for Partial Exemption of a Motor Vehicle sold for Licensing in Another State. This form should be completed by the purchaser and provided to the selling dealer or the relevant sales tax collection agency.

    Hope Scholarship Program

    Lastly, we bring your attention to the Hope Scholarship Program, designed to provide students who experienced incidents of violence or bullying at school with the opportunity to attend eligible private schools. Make sure to offer the required form to each customer before sales tax is paid. For more information, please refer to the official form provided by the Florida Department of Revenue: Hope Scholarship Program Form.

    Additional Resources

    We encourage you to review these additional resources:

  • Sales Tax Rates for Other States
  • Affidavit for Partial Exemption of a Motor Vehicle Sold for Licensing in Another State

    • Your dedication to adhering to these guidelines ensures not only compliant transactions but also contributes to a smooth experience for all parties involved. We value your partnership and commitment to responsible business practices.