Florida Sales and Use Tax
Florida Sales and Use Tax tests the tax base, the state and county rate structure, exemptions, nexus, and collection duties. The exam distinguishes sales tax from use tax and tests the county surtax cap, resale certificates, and remote-seller obligations.
Core rules
- Florida imposes a 6% state sales tax on retail sales of tangible personal property and on specified services, including commercial rent and certain admissions. Counties may add a discretionary sales surtax, generally 0.5% to 1.5%, so the combined rate depends on the delivery location.
- Use tax complements the sales tax. A Florida purchaser owes use tax on taxable property purchased out of state and brought into Florida when no Florida sales tax was charged, with a credit for sales tax legally paid to another state up to the Florida tax.
- The county surtax applies to the first $5,000 of the sales amount of a single item of tangible personal property. The state 6% applies to the full sales price. This cap does not apply to the state portion.
- Exemptions include most groceries, prescription drugs, residential rent, occasional sales, and purchases for resale with a valid annual resale certificate. Manufacturing machinery and equipment may qualify for an exemption if the statutory requirements are met.
- A remote seller or marketplace provider with more than $100,000 of Florida sales in the prior calendar year must register, collect, and remit Florida tax. Physical presence also creates nexus.
Worked example
A customer buys a $10,000 piece of equipment delivered in a county with a 1% surtax. State tax is 6% of $10,000, or $600. County surtax is 1% of only the first $5,000, or $50. Total tax is $650. If the buyer gives a valid resale certificate, the sale is exempt. If the buyer instead bought the same item from an out-of-state seller with no Florida obligation and brought it in, the buyer would owe Florida use tax, subject to any credit for tax paid to the other state.
Traps
Do not apply the county surtax to the entire price of a single item above $5,000. Do not treat a resale certificate as valid for a purchase the buyer will use personally. Do not assume services are taxable; Florida taxes only enumerated services. Do not ignore the delivery location, because the surtax depends on where the property is delivered.