Streamlining Courtesy Delivery: A Guide for Motor Vehicle Dealers

Hello Motor Vehicle, Mobile Home, and Vessel Dealers! In the dynamic realm of automotive transactions, every detail matters, especially when it comes to ensuring seamless operations and adhering to regulations. One crucial aspect that requires careful attention is the process of "Courtesy Delivery." We are here to provide you with comprehensive insights into this practice, helping you navigate it efficiently and in accordance with the regulations.

Understanding Courtesy Delivery

A courtesy delivery refers to a retail purchase of a motor vehicle that takes place in a different state, but the physical delivery of the vehicle occurs in Florida through a Florida dealer. This practice brings together various regulatory considerations to ensure a smooth and compliant transaction.

Required Information on Form HSMV 82040

When a Florida dealer is submitting paperwork for an out-of-state dealer involving a courtesy delivery, certain information must be presented:

The Florida dealership's information, including the dealer's name, license number, and the specific notation "courtesy delivery," should be clearly indicated on the form HSMV 82040.

Even though it's a courtesy delivery, the Florida dealer's license number should still be entered into the Florida Real-time Vehicle Information System (FRVIS). This assists both the DMS Regional offices and the Department of Revenue during potential audits.

Sales Tax Considerations

For a courtesy delivery, the following points should be noted:

The Florida dealer is responsible for collecting the appropriate sales tax for the sale.

Alternatively, the Florida dealer can submit proof that the tax was paid to the out-of-state dealer.

Importantly, the Florida dealer should not enter their "Florida sales tax registration number" on the form HSMV 82040, as this could imply unnecessary involvement in the sale.

Submitting Sales Tax

To streamline the process, here's how sales tax should be handled:

Any sales tax collected by the Florida dealer for the sale should be submitted to the tax collector's office or license plate agency, along with the customer's paperwork.

Electronic Filing System (EFS) agencies, however, may process it through the EFS system.

Note that the lemon law fee does not apply in this scenario.

Exception: Reassignment on the MCO

It's essential to differentiate between a courtesy delivery and an out-of-state dealer reassignment on the Manufacturer's Certificate of Origin (MCO). If the out-of-state dealer reassigns to the Florida dealer on the reverse side of an MCO, it's not considered a "courtesy delivery." In such cases:

The Florida dealer should not label it as a "courtesy delivery" on the form HSMV 82040.

The transaction should be processed as a regular dealer transaction within the required 30 days.

Understanding and adhering to these guidelines ensure that your courtesy delivery processes are efficient, compliant, and transparent.