Sales Tax in Florida: Basics for Friends of Library Groups
Does your Friends group need to collect sales tax?
The answer is "yes" if your Friends group
In all these cases, Florida law requires non-profit groups to collect sales tax and to remit the tax to the Florida Department of Revenue.
This page provides basic information about Sales and Use Tax. For more complete information, contact the Florida Department of Revenue.
Florida's general sales tax rate is six percent. There is an established "bracket system" for collecting sales tax on any part of each total taxable sale that is less than a whole dollar amount.
Additionally, a discretionary sales surtax is imposed by many Florida counties. To compute the Florida sales tax rate for each county, add the county-imposed discretionary sales surtax rate to the general sales and use tax rate.
Discretionary sales surtax
A dealer who sells and delivers taxable merchandise or taxable services is required to collect the surtax at the rate imposed in the county where the merchandise or service is delivered.
Use tax and consumption
Use tax is due on purchases made out of state and brought into Florida within six months of the purchase date. Also, if you purchase a product tax-exempt that you plan to sell at retail, but end up using it at your place of business, the "use" of the product is subject to tax. If you purchase materials that are "consumed" in a manufacturing process to create your end product, but are not part of the end product, those materials are subject to tax.
Use tax complements and is applied in the same manner as sales tax. The use tax rate and sales tax rate are the same, including discretionary sales surtax, if applicable.
The "use" component of the sales and use tax provides uniform taxation on items that are purchased outside Florida, but are used or stored in the state. If the item brought into Florida is subject to tax, a credit for lawfully imposed taxes paid to another state, a U.S. territory, or the District of Columbia is permitted. Credit is not given for taxes paid to another country.
Who Must Register to Collect Tax?
Before beginning to conduct business in Florida, find out whether your business activity will be subject to Florida sales tax. Some government agencies (cities or counties) require registration with the Department of Revenue before they will issue a license.
Here are some examples of business activities in which Friends of Library groups might engage. All of these activities require the collection of sales tax or the payment of use tax:
This list is not exhaustive. For complete information on whether your group is required to register to collect sales tax, contact the Florida Department of Revenue Taxpayer Service Center nearest you.
Who is exempt from paying sales tax?
How do I register to collect sales tax?
You can register to collect and/or report tax via the Florida Department of Revenue's e-Services web page. If you do not have Internet access, you can complete a paper Application to Collect and/or Report Tax in Florida (Form DR-1 (PDF)). Obtain Form DR-1 from your local DOR service center or one of the contacts listed below.
After your registration application is approved, you will receive a Certificate of Registration (Form DR-11), an Annual Resale Certificate (Form DR-13), and your state tax return forms. The Annual Resale Certificate may be used for tax-exempt purchases or rentals of property or services that you intend to resell or re-rent as part of your business. If the goods purchased for resale are later used (not resold), you must report and pay use tax on those items, plus any applicable penalties and interest. There are additional liabilities for intentional misuse of an Annual Resale Certificate.
How is tax calculated?
Sales tax is calculated at the time of each transaction. Copies of the Sales Tax Rate Table (Form DR-2X (PDF)) and Individual sales and use bracket cards are available from your local DOR service center or one of the contacts listed below.
When sales transactions fall between whole dollar amounts, use the bracket system to calculate tax due when any part of each total sale is less than a whole dollar amount. The total tax collected must be calculated on the total amount of the sale.
The sales tax and discretionary sales surtax must be separately shown on each invoice or other evidence of the sales transaction. Taxpayers must remit the actual tax collected, which in many cases is more than a straight percentage of the sales or untaxed purchases.
Electronic filing and payment of tax
The Department of Revenue offers the convenience of a free and secure Internet site to file and pay sales tax. Alternatively, you may purchase software from an approved vendor for this purpose. If you would like to voluntarily file and pay taxes electronically, you may do so. However, if you pay $20,000 or more in sales and use tax between July 1 and June 30 (the state fiscal year), you must pay electronically and will receive instructions to begin using electronic funds transfer for the next calendar year.
Contact Taxpayer Services to request copies of the rules regarding sales and use tax. Tax laws are also available on the Department of Revenue's Web site. Look for the Florida Tax Law Library.
The following brochures are available online, or from your local DOR service center, the DOR Distribution Center, or Taxpayer Services.
For Information and Forms
Florida Department of Revenue conducts free tax seminars on Sales and Use Tax. Visit their site to locate a seminar near you.
Information and forms are also available on the Florida Department of Revenue's Web site.
To speak with a Department of Revenue representative, call Taxpayer Services, Monday through Friday, 8 a.m. to 7 p.m., ET, at (800) 352-3671.
Persons with hearing or speech impairments may call the TDD line at (800) 367-8331 or (850) 922-1115.
For a written reply to tax questions, write:
To receive forms by mail:
Order multiple copies of forms from the Florida Department of Revenue Internet site,
Mail form requests to:
For additional information, contact a Tax Specialist in the Florida Department of Revenue Taxpayer Service Center nearest you.
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