GT-300015

R.06/21

Business Owner’s Guide for Sales and Use Tax

The Guide includes general information on:
• Communications Services Tax
• Corporate Income Tax
• Lead-Acid Battery Fee
• New Tire Fee
• Prepaid Wireless E911 Fee
• Reemployment Tax
• Rental Car Surcharge

The Florida Business Information Portal

The Florida Business Information Portal at OpenMyFloridaBusiness.gov helps individuals
seeking to start and operate a business in Florida. The portal focuses on State of Florida
government requirements and resources for businesses. By entering the type of business
you want to start, the portal provides a checklist to help you understand governmental
requirements for your business category. The downloadable Guide to Starting a Business
in Florida, available on the portal, provides basic tools to open a business in Florida and
supplementary resources to the portal’s business-specific checklists.

Educational Tax Tutorials and Webinars

The Department of Revenue offers tax education through online tutorials and recorded
webinars. Visit the Department’s Taxpayer Education webpage for additional information at
floridarevenue.com/taxes/education.

The New Business Start-up Kit

The information provided in this section of the Department's website will assist newly
registered businesses in working with the Florida Department of Revenue.
Visit floridarevenue.com/dor/business and then select “New Business Start-up Kit.”
Opening a Florida Business ............................................................................................................................ 4
Registering a Florida Business ............................................................................................................................ 4
Business Opening Date....................................................................................................................................... 4
Dealer Responsibilities ........................................................................................................................................ 4
Posting Your Certificate of Registration .............................................................................................................. 5
Florida Annual Resale Certificate for Sales Tax ................................................................................................. 5
Sales and Use Tax Returns and Coupon Books................................................................................................. 5
Tax and Discretionary Sales Surtax Rates ................................................................................................. 5
State Sales Tax Rates ......................................................................................................................................... 5
Discretionary Sales Surtax Rates ....................................................................................................................... 5
Tax Calculation ................................................................................................................................................... 5
Commercial Rental Tax Rate .............................................................................................................................. 6
Transient Rental Tax Rates ................................................................................................................................. 6
Rates for Amusement Machine and Vending Machine Receipts ........................................................................ 6
Rates for Specific Industries ............................................................................................................................... 7
Discretionary Sales Surtax .............................................................................................................................. 7
Surtax Limitation .................................................................................................................................................. 7
Reporting Surtax on Your Tax Return ................................................................................................................. 8
Use Tax ................................................................................................................................................................. 8
Reporting and Paying Use Tax ........................................................................................................................... 8
Exemptions .......................................................................................................................................................... 9
Florida Tax Incentives for Businesses ................................................................................................................. 9
Nonprofit Organizations and Governmental Entities ........................................................................................... 9
Annual Resale Certificates ............................................................................................................................ 10
Using Your Annual Resale Certificate ............................................................................................................... 10
Accepting an Annual Resale Certificate ............................................................................................................ 10
Methods for Documenting Sales for Resale ...................................................................................................... 10
File and Pay Sales and Use Tax and Surtax.............................................................................................. 10
Filing Frequency ................................................................................................................................................ 10
Tax Return and Payment Due Dates ................................................................................................................ 11
Electronic Payment Deadlines .......................................................................................................................... 11
Paying Tax ........................................................................................................................................................ 11
Collection Allowance ......................................................................................................................................... 11
When No Tax is Due ......................................................................................................................................... 11
Penalty and Interest .......................................................................................................................................... 11
Using the Correct Return................................................................................................................................... 12
Estimated Sales Tax Payments ........................................................................................................................ 12
Tips for Filing Your Return ................................................................................................................................ 12
How Long to Keep Records ........................................................................................................................... 12
Types of Records .............................................................................................................................................. 13
New Tire Fee, Lead-Acid Battery Fee, and Rental Car Surcharge....................................................... 13
Registration ....................................................................................................................................................... 13
How to Report and Pay Fees and Surcharge ................................................................................................... 14
Communications Services Tax ..................................................................................................................... 13
Registration ....................................................................................................................................................... 14
Communications Services Tax Rates ............................................................................................................... 14
File and Pay Communications Services Tax ..................................................................................................... 15

Business Owner’s Guide for Sales and Use Tax, Page 2

Prepaid Wireless E911 Fee ............................................................................................................................ 15
Registration ....................................................................................................................................................... 15
Determining Where a Transaction Occurs ........................................................................................................ 15
File and Pay Prepaid Wireless E911 Fees........................................................................................................ 16
Collection Allowance ......................................................................................................................................... 16
Florida Corporate Income Tax ...................................................................................................................... 16
Filing Requirements........................................................................................................................................... 16
Florida New Hire Reporting Requirement .................................................................................................. 17
Florida Reemployment Tax ............................................................................................................................ 17
Employers Liable for Reemployment Tax ......................................................................................................... 17
Registration ....................................................................................................................................................... 17
Your Tax Rate ................................................................................................................................................... 17
File and Pay Reemployment Tax ...................................................................................................................... 18
Electronic Payment Deadlines .......................................................................................................................... 18
Penalty and Interest .......................................................................................................................................... 18
Protecting Your Tax Rate .................................................................................................................................. 18
Changing Your Business Information ........................................................................................................ 18
Buying an Existing Business ........................................................................................................................ 19
Power of Attorney ............................................................................................................................................ 19
Florida Taxpayers’ Rights Advocate ........................................................................................................... 19
Additional Resources and Contact Information ...................................................................................... 19
The Florida Business Information Portal ........................................................................................................... 19
Tax Education Webinars ................................................................................................................................... 19
Learn More with Tax Tutorials ........................................................................................................................... 19
Florida Tax Handbook ....................................................................................................................................... 20
Contact Information ........................................................................................................................................... 20
Subscribe to Receive Updates by Email .......................................................................................................... 20

Business Owner’s Guide for Sales and Use Tax, Page 3

Opening a Florida Business
Registering a Florida Business
If you will engage in a business activity that is subject to sales and use tax, you must register as a sales and
use tax dealer to collect, report, and remit Florida sales and use tax before you begin conducting
business in Florida.
Taxable business activity includes, but is not limited to:
• selling, leasing, licensing, or renting tangible personal property (i.e., electronics, furniture, motor vehicles,
certain food and meals, and other goods)
• leasing, licensing, or renting real property
• leasing, licensing, or renting living, sleeping or housekeeping accommodations
• selling detective or burglar protection service, nonresidential cleaning service, or nonresidential pest
control service
• selling admissions to any place of amusement, sport, or recreation
• operating amusement machines

You can register to collect, report, and pay sales tax and discretionary sales surtax online at
floridarevenue.com/taxes/registration. You must register each of your Florida business locations. The
online system will guide you through the registration application to help determine your tax obligations. If you
do not have internet access, you can complete a paper Florida Business Tax Application (Form DR-1).
When you register, you can enroll with the Department to pay tax or file returns and pay tax electronically.
You may also enroll after you have registered.
Taxpayers who enroll to file or pay electronically can take advantage of additional features: an encrypted
system that securely saves your contact and bank account information; the ability to view your filing history
and bills posted to your tax account; the ability to amend previously filed returns; and the ability to reprint
your returns.
You can file and pay tax electronically using the Department’s secure file and pay webpage at
floridarevenue.com/taxes/filepay. You also have the option of buying software from a software vendor. A
list of vendors is available at floridarevenue.com/taxes/eservices.
After you register as a sales and use tax dealer with the Department, you will receive by mail:
• A Certificate of Registration (Form DR-11)
• A Florida Annual Resale Certificate for Sales Tax (Form DR-13)
• An initial supply of tax returns (sales and use tax Form DR-15 or DR-15EZ) unless you are filing
electronically
• Discretionary Sales Surtax Information (Form DR-15DSS)
• A brochure, New Dealer Guide to Working with the Florida Department of Revenue (GT-800054)

Business Opening Date

The date of your business’s first Florida taxable activity included on your registration determines when your
first reporting period begins. If your first Florida taxable activity does not begin by the date indicated on your
application, notify the Department by calling Taxpayer Services at 850-488-6800, or file a return reporting
no sales. Otherwise, you will receive a delinquency notice.

Dealer Responsibilities
As a registered sales tax dealer, you act as an agent of Florida and must:
• Collect state sales tax, plus any applicable local discretionary sales surtax, on each taxable transaction
• Pay use tax on items or services purchased exempt from tax for resale, but used in the business instead
• Pay use tax on taxable items from an out-of-state business when Florida sales tax was not paid at the
time of purchase
• Remit the tax and surtax collected and pay the use tax owed to the Department by filing online or sending
a paper Sales and Use Tax Return with a check or money order
• Keep complete and accurate records for all of your tax returns, including proof of payment, and
documentation of sales and purchases for at least three years

Business Owner’s Guide for Sales and Use Tax, Page 4

Sales tax and surtax collected by your business Tax and Discretionary Sales Surtax Rates
become state funds at the time of collection. State Sales Tax Rates
You serve as a custodian of these funds until you Florida imposes a general state sales tax rate of
remit them to the Florida Department of Revenue. 6% on sales and purchases of applicable items,
Please keep accurate records and maintain a services, and transient rentals. However, other
separate accounting of these state funds. rates may apply, such as:
Posting Your Certificate of Registration • 4% on amusement machine receipts
Your Certificate of Registration (Form DR-11) has • 5.5% on leases and licenses of commercial real
your: property
• Business name and location • 6.95% on electricity
• Certificate number (on front) Discretionary Sales Surtax Rates
• Business partner number (on back) In addition to the Florida sales and use tax state rate,
Your Certificate of Registration authorizes you to many Florida counties impose an additional
conduct business at the address shown and must discretionary sales surtax. Discretionary sales surtax
be displayed in a visible place at your business rates vary by county. Counties may charge a rate
location. (Flea market vendors and other dealers between 0.5% and 2.5%; however, there are some
with temporary locations must have their certificate counties that do not impose a surtax. New
in their possession at the temporary location.) discretionary sales surtax rates become effective on
January 1 and terminate on December 31 of the year
Florida Annual Resale Certificate for Sales the tax ends. Discretionary sales surtax rates are
Tax published in the Discretionary Sales Surtax
Your Florida Annual Resale Certificate for Sales Information form (DR-15DSS) each year and are
Tax (Form DR-13) is used for tax-exempt available online at floridarevenue.com/forms under
purchases or rentals of property or services you the Discretionary Sales Surtax section.
intend to resell or re-rent as part of your business.
Your Florida Annual Resale Certificate for Sales
Tax Calculation
Florida’s general sales tax rate is 6%. Additionally,
Tax is not for buying office equipment, computers,
or other supplies that will be used by your business most counties have a local option discretionary sales
operation. If goods bought for resale are later used surtax. To compute the total tax rate, add the state
by your business (not resold), you must report and rate to the local discretionary sales surtax.
pay use tax, plus any applicable discretionary sales [Florida Sales and Use Tax General State Rate]
surtax, on those items. For more information, + [Surtax Rate]
review Annual Resale Certificates on page 10. = [Total Tax Rate]
Dealers must calculate the total tax due by multiplying
Sales and Use Tax Returns and Coupon the taxable sale amount by the total tax rate to determine
Books the amount of tax to be collected.
A sales and use tax return and instructions will be [Taxable Sale Amount] X [Total Tax Rate]
mailed to you for your first reporting period unless = [Tax Due on Sale]
you choose to file returns electronically. A sales
The tax computation must be carried to the third decimal
and use tax coupon book will also be mailed to you
place and rounded up to the next whole cent when the
to use for the remainder of the calendar year. It is
third decimal place is greater than 4.
your responsibility to file a return and remit tax
to the Department even if you do not receive Dealers must calculate the total tax due on each sale.
returns. If you do not receive your tax returns The tax must be shown separately on each invoice and
before your first due date, please call Taxpayer may be calculated on either the combined taxable
Services at 850-488-6800. amount or the individual taxable amounts on an invoice.
Example: A customer purchases one taxable item and
When you receive your coupon book, check your
takes delivery in a county that does not impose a
business name, address, certificate number, discretionary sales surtax. The dealer’s taxable selling price
reporting periods, and other personalized for the item is $50.45. To calculate the tax due, multiply the
information. If any information is incorrect, call taxable selling price by the tax rate of 6% and carry to the
Taxpayer Services at 850-488-6800. third decimal place.
$50.45 X 6% (or 0.06) = $3.027
Since the third decimal place is greater than 4, the tax
due must be rounded up to the next whole cent. The
total tax due on the sale is $3.03.

Business Owner’s Guide for Sales and Use Tax, Page 5

Commercial Rental Tax Rate amount first in order to calculate the gross sales.
Florida state sales tax at the rate of 5.5%, plus any 1) Compute the taxable amount: Subtract the
applicable discretionary sales surtax, is due on the exempt sales amount from the total receipts
total rent charged for renting, leasing, or granting a amount and divide the result by the tax rate
license to use commercial real property in Florida, divisor for the county where the machines are
unless the rent is specifically exempt. Some located to compute the taxable amount.
examples of taxable commercial real property (Example: $100 – $5 exempt sales =
rentals include commercial office or retail space, $95/1.0686 = $88.90 taxable amount)
warehouses, convention and meeting rooms, self- 2) Compute the amount of sales tax and surtax
storage units or mini-warehouses, and the due: Subtract the taxable amount from the total
placement of amusement machines or vending receipts amount less the exempt sales amount
machines on other peoples’ property. used in step 1 to determine the total tax due.
Enter this amount on column 4 of line E.
Transient Rental Tax Rates (Example: $100 – $5 = $95 – $88.90 = $6.10 tax
Individual Florida counties may impose a local due)
option tax on transient rental accommodations, 3) Compute gross sales: Add the taxable amount to
such as a tourist development tax, convention the exempt sales amount to calculate the gross
development tax, tourist impact tax, or municipal sales amount. (Example: $88.90 + $5 = $93.90
resort tax. These taxes are often called local gross sales)
option transient rental taxes and are in addition
to the 6% state sales tax and any applicable Amusement Machines:
discretionary sales surtax. In many counties, the Every location where amusement machines are in
local option transient rental taxes are reported and operation must display a certificate authorizing the
remitted directly to the county; however, sales tax operation of a specified number of machines. The
and discretionary sales surtax on transient rentals amusement machine operator is required to
are always reported and remitted to the purchase and display the annual Amusement
Department. Machine Certificate (Form DR-18C).

Visit floridarevenue.com/taxes/rates for Local To obtain the required annual certificates, submit an
Option Transient Rental Tax Rates (Form Application for Amusement Machine Certificate
DR-15TDT) and discretionary sale tax rates (Form DR-18). The annual cost of the certificate is
(Form DR-15DSS) for all Florida counties, whether $30 per machine at each location.
the tax is remitted to the Department or paid Amusement machine certificates expire on June 30
directly to the imposing county. each year. You must renew amusement machine
Rates for Amusement Machine and certificates before that date. A renewal notice
Vending Machine Receipts containing information on your Amusement Machine
Certificates will be mailed to you 30 to 60 days before
Sales tax at a state rate of 6%, plus any applicable
the certificate’s expiration date.
discretionary sales surtax, is due on food,
beverages, tobacco, and other items sold through Food and Other Vended
Sales and Amusement
vending machines. Surtax is due at the rate Beverage Items
Surtax Rate Divisor
Divisor Divisor
imposed by the county where the machines are
located. 6.0% 1.040 1.0645 1.0659
6.5% 1.045 1.0686 1.0707
Vending Machines without exempt items:
1) Compute gross sales: Divide the total receipts 7.0% 1.050 1.0726 1.0749
from sales made through the vending 7.5% 1.055 1.0767 1.0791
machines by the tax rate divisor for the 8.0% 1.060 1.0808 1.0833
county in which the machines are located. 8.5% 1.065 1.0849 1.0875
(Example: $100/1.0686 = gross sales of
$93.58) Example: The total amusement machine receipts of
2) Compute the amount of sales tax and surtax $100 are received from machines located in a county
due: Subtract taxable sales from the total with a combined sales and surtax rate of 6.5%.
receipts. (Example: $100 – $93.58 = $6.42) The amusement machine rate divisor is 1.045.
$100 ÷ 1.045 = $95.69 (gross sales)
Vending Machines with exempt items: $100 – $95.69 = $4.31 (sales tax and surtax due)
If the total receipts include exempt items, such $95.69 x 0.005 = $0.48 (discretionary sales surtax)
as bottled water, you must calculate the taxable Report $0.48 surtax for this transaction on your Sales
and Use Tax Return.

Business Owner’s Guide for Sales and Use Tax, Page 6

Rates for Specific Industries Discretionary Sales Surtax
Effective tax rates and rate divisors have been Many individual Florida counties have elected to
established for sales of alcoholic beverages and impose a discretionary sales surtax; however, there
sales of food and other items made at concession are some counties that have elected not to do so.
stands because the nature of these businesses You must collect discretionary sales surtax when the
makes it impractical to separately state Florida tax transaction occurs in, or delivery is into, a county that
on sales slips, invoices or other evidence of the imposes surtax and the sale is subject to state sales
sale. and use tax. For a list of discretionary sales surtax
rates, review Discretionary Sales Surtax Information
The effective tax rates and rate divisors
(Form DR-15DSS). For sales of tangible personal
established for these specific industries are
property, please review the following tables.
available in sales and use tax brochures for these
industries. Surtax Limitation
Visit floridarevenue.com/taxes/education, select The discretionary sales surtax does not apply to
“Other Resources,” and select “Industry Specific the sales amount above $5,000 on a single sale of
Brochures.” The rates and divisors are also tangible personal property when the property is
available in Instructions for DR-15 Sales and Use sold as a single item, in bulk, or as a working unit
Tax Returns (Form DR-15N). or part of a working unit.

When and At What Rate to Collect Discretionary Sales Surtax

(Local Option County Tax) on Taxable Sales
with a discretionary into the county where the selling surtax is collected at the county rate where
surtax dealer is located, the delivery is made.
If a selling
dealer located with or without a sells and into counties with different surtax is collected at the county rate where
in any Florida discretionary surtax delivers discretionary surtax rates, the delivery is made.
county
with or without a into counties without a
surtax is not collected.
discretionary surtax discretionary surtax,

into a Florida county with a surtax is collected at the county rate where
sells and discretionary surtax, the delivery is made.
If an out-of-state selling dealer
delivers into a Florida county without a
surtax is not collected.
discretionary surtax,

Sales, leases, or rentals of: Collect surtax at the county rate where the:
Admissions event is held for which a taxable admission is charged.
aircraft or boat is delivered or the use of the aircraft or boat
Aircraft and boats
occurs.
Commercial real property commercial real property is located.
Electricity or natural or manufactured gas consumer of the electricity or gas is located.
Florists florist taking the order is located.
owner’s residence address listed in the registration or title
Motor vehicles and mobile homes
of the motor vehicle or mobile home is located.
Parking or storage for motor motor vehicle parking lot or garage, boat dock or marina, or
vehicles, boats, and aircraft aircraft hangar or tie-down space is located.
Services (taxable) taxable service is provided.
item of tangible personal property indemnified by the
Service warranties
service warranty is delivered or located.
Transient rental accommodations transient rental accommodation is located.

Business Owner’s Guide for Sales and Use Tax, Page 7

Items sold in bulk or items sold as a working unit Use Tax
must be sold in a single sale for the $5,000 surtax Use tax is due on the use or consumption of taxable
limitation to apply. When a written purchase order goods or services when Florida sales tax was not
requires a specific quantity of tangible personal paid at the time of purchase. For example:
property to be delivered within a specified time, the • If you buy a taxable item in Florida and do not
purchase may qualify for the $5,000 limit. The pay sales tax, you owe use tax.
tangible personal property purchased must be items • If you buy an item tax-exempt intending to resell
that are normally sold in bulk or items that comprise it, and then use the item in your business or for
a working unit when assembled. The purchase personal use, you owe use tax.
order may allow items to be delivered and invoiced • If you buy a taxable item outside Florida and
in installments and still qualify as a single sale. bring it into (or have it delivered into) Florida, and
you do not pay sales tax on the item, you owe
Example: $7,000 dining room set delivered to a use tax.
county imposing a 1% discretionary sales surtax. • It is important to note that many businesses have
$7,000 x 6% = $420 ─ (state sales tax) a use tax liability. One of the most frequent
$5,000 x 1% = $50 ─ (county surtax) assessments made in audits involves unreported
Total Tax Due = $470 use tax.
• If your business purchased an item from a seller
The $5,000 limitation does not apply to the
following, and surtax is due on the entire sales located in another state, and the out-of-state
price for sales or charges for: seller charged less than 6% sales tax, or did not
• Admissions charge you sales tax, you must pay use tax
• Taxable services directly to the Department. The amount of Florida
• Service warranties use tax due is equal to the difference between
• Prepaid calling arrangements the tax you paid and the 6% Florida tax.
However, if you paid 6% sales tax or more to an
• Rentals, leases, and licenses to use real
property (commercial rental property) or living, out-of-state business, no Florida use tax is due.
• In addition to the Florida use tax due, registered
sleeping, or housekeeping accommodations
sales and use tax dealers must pay surtax at the
(transient rentals)
rate imposed where the purchased item is used.
• Parking or storing motor vehicles in parking lots
or garages Reporting and Paying Use Tax
• Docking or storage in boat docks and marinas Florida use tax is reported on your Sales and Use
• Tie-down or storage space for aircraft Tax Return (Form DR-15). If you purchased items
from outside Florida and paid sales tax to another
Reporting Surtax on Your Tax Return
state at a rate less than 6%, report the total amount
It is important to accurately collect and report
of Florida use tax and surtax due, and claim a
surtax on your sales and use tax returns. The
“Lawful Deduction” on the return for the tax paid to
Department distributes the discretionary sales
the other state. Be sure to include the amount of
surtax to the Florida counties where the surtax is
surtax due in the total amount of discretionary sales
imposed to fund locally authorized projects.
surtax reported on the return.
To report surtax information on your sales and
use tax return, you will need to know the: If accruing and paying sales tax and surtax on the
• Total amount of surtax due rental, lease, or license to use commercial rental
• Total amount of all sales and purchases property, the sales tax and surtax are reported on
for single items sold or purchased with a Line C (Commercial Rentals).
sales price of more than $5,000
• Total amount of sales or purchases subject to
surtax at a rate different than your county
surtax rate
• Total amount of sales and purchases
not subject to surtax

Business Owner’s Guide for Sales and Use Tax, Page 8

 Example: A registered dealer is in a county Nonprofit Organizations and
imposing a 1% discretionary sales surtax (6% state Governmental Entities
tax + 1% surtax = 7%). The dealer purchased Certain entities are granted specific exemptions
business equipment for $5,000 in New York and from sales tax. Such entities include, but are not
paid 4% sales tax ($200). limited to:
• Nonprofit organizations meeting the criteria in
$5,000 × 7% = $350 ─ (Florida tax and surtax amount)
- $200 ─ (New York state tax paid)
section (s.) 212.08(7), Florida Statutes (F.S.)
• State-chartered financial institutions described
= $150 ─ (Additional Tax and Surtax Due)
$5,000 × 1% = $50 (Surtax)
in s. 213.12(2), F.S.
• Governmental entities, including state
On Line B (Taxable Purchases) of the Sales and
Use Tax Return (Form DR-15), the dealer reports agencies,counties, municipalities, and political
taxable purchases of $5,000 and tax due of $350. subdivisions (e.g., school districts or municipal
libraries)
On Line 6 (Less Lawful Deductions), a deduction of
$200 is reported. To be eligible for the exemption, Florida law
On Line 15(d) (Total Amount of Discretionary Sales requires nonprofit organizations to obtain a sales
Surtax Due), $50 is reported. tax exemption certificate from the Department. To
The dealer will owe $150 to the Department for this obtain the required exemption certificate, submit a
purchase when the tax return is filed and tax is paid. completed Application for a Consumer’s Certificate
of Exemption (Form DR-5) to the Department.
Exemptions The application instructions provide details on the
You are required to charge sales tax unless the exemption criteria and the information to be provided
sale is specifically exempt. Information regarding to the Department for each type of nonprofit
the various exemptions from sales tax is available organization or governmental entity qualified to obtain
on the Department’s website. a Florida Consumer’s Certificate of Exemption (Form
DR-14). Nonprofit organizations, state-chartered
In addition, the Florida Tax Handbook is an
financial institutions,and governmental entities holding
excellent source for comprehensive information
a Florida Consumer’s Certificate of Exemption may
about exclusions, exemptions, deductions and
present a copy of the certificate to a selling dealer to
credits from sales and use tax. Visit
purchase or rent items or services tax-exempt as
edr.state.fl.us and search for “Tax Handbook.”
authorized by Florida law.
Examples of items that are specifically exempt
from sales and use tax include medicines and Payment for the purchase must be made with the
most groceries. Food items are generally organization’s funds. When payment is made with
exempt from sales tax when sold in grocery the personal funds of an authorized representative,
stores to be taken home and prepared. Some the purchase is subject to tax, even if the
examples of exempt grocery items are milk, representative is subsequently reimbursed with the
butter, cereal, frozen goods, and canned goods. organization’s funds.
Examples of taxable items include soap, paper The United States government, or any of its federal
goods, cleaning products, and candy. Visit agencies, is not required to obtain a Florida
floridarevenue.com/forms for a list of common Consumer’s Certificate of Exemption; however, many
nontaxable medical and grocery items, and federal agencies do obtain the certificate to present
select Nontaxable Medical Items and General to Florida retail dealers to document their tax-exempt
Grocery List (Form DR-46NT) under the Sales status. If you sell to a federal agency that does not
and Use Tax section. have a certificate, be sure to maintain documentation
to establish that the sale was sold directly to, and
Florida Tax Incentives for Businesses paid directly by, the federal agency.
Florida offers tax credits, refunds, and other
incentives to promote business development and
job creation within the state. To learn more about
specific tax incentives, visit
floridarevenue.com/taxes/incentives.

Business Owner’s Guide for Sales and Use Tax, Page 9

Annual Resale Certificates Method 2 – For each sale, obtain a transaction
If you registered your business to collect, report, authorization number from the Department’s Seller
and remit sales tax, a Florida Annual Resale Certificate Verification system at
Certificate for Sales Tax (Form DR-13) was mailed floridarevenue.com/taxes/certificates. Keep a
to your business. Certificates expire December 31 record of all verification response reports to document
of each year. If you registered your business to your tax-exempt sales.
only report Florida use tax (the business will not be
Method 3 – Each calendar year, obtain an annual
selling taxable items), a resale certificate will not
vendor authorization number for your regular
be issued. Sales tax dealers who electronically file
customers using the Department’s Seller Certificate
tax returns are required to download and print their
Verification system at
own certificate.
floridarevenue.com/taxes/certificates. You can
If you continue to conduct business in Florida and upload a batch file containing your customers’
are registered to collect sales tax, you will be issued certificate numbers and retrieve the results 24 hours
a new Florida Annual Resale Certificate for Sales after submission.
Tax each year. In mid-November, annual resale
certificates for the next calendar year are available You do not need to maintain a copy of your
online (login is required). Once you are logged in to customer’s annual resale certificate when you
your tax account, you may download, save, and maintain transaction authorization or vendor
print your certificate. All registered and active sales authorization numbers for tax-exempt sales for resale.
tax dealers may access their certificate online by
File and Pay Sales and Use Tax and
visiting floridarevenue.com/taxes/printcertificate.
Discretionary Sales Surtax
Using Your Annual Resale Certificate Sales and use tax and discretionary sales surtax are
Your Florida Annual Resale Certificate for Sales reported using the Sales and Use Tax Return form
Tax allows you to make tax-exempt purchases or DR-15 or DR-15EZ. The Department offers a secure
rentals for resale tax-exempt. Your certificate website for taxpayers to file and pay sales tax at
may be used only to purchase items or floridarevenue.com/taxes/filepay. You also have
services that will be resold or re-rented in your the option of buying software from a software vendor.
regular business operations. If you purchase A list of software vendors is available at
items or services to be used or consumed in your floridarevenue.com/taxes/eservices.
business, you must pay sales tax at the time of
Any taxpayer can voluntarily enroll to enjoy the
purchase, or accrue and pay use tax on your sales
benefits of electronic filing; however, Florida law
and use tax return filed with the Department.
requires businesses that paid $20,000 or more in
To make tax-exempt purchases of items or sales taxes between July 1 and June 30 (the state
services you will resell, provide a copy (paper or fiscal year) to file returns and pay taxes
electronic) of your annual resale certificate or electronically during the next calendar year.
your certificate number to the seller.
If you enroll to file or pay electronically, you can take
Accepting an Annual Resale Certificate advantage of additional features, including the ability
Other sales tax dealers may buy items or services to securely save your contact and bank account
from you tax-exempt for resale by providing you information, view your filing history and bills posted
with a copy of their current Florida Annual Resale to your tax account, and reprint your returns. If you
Certificate for Sales Tax (Form DR-13). did not enroll in eServices when you registered your
business, you may enroll at any time. To enroll, visit
Methods for Documenting Sales for Resale floridarevenue.com/taxes/enrollment.
As a seller, you must document each tax-exempt
sale for resale using one of the following methods. Filing Frequency
You may select a different method to document Your filing frequency is based on the amount of sales
each sale for resale. and use tax you collect. Most new businesses are set
up on a quarterly filing frequency, unless another
Method 1 – Obtain a copy of your customer’s frequency is requested.
current Florida Annual Resale Certificate for Sales
Tax. You can accept paper or electronic copies.
Maintain copies of the certificates (paper or
electronic) for three years.

Business Owner’s Guide for Sales and Use Tax, Page 10

When a sales and use tax dealer cannot Paying Tax
reasonably compile the information required for an Tax must be paid in U.S. funds only. If you are not
accurate return on a calendar month basis, the paying electronically, mail or deliver in person a
dealer may request to file returns and pay tax on check or money order payable to the Florida
an alternative-period basis. For more information, Department of Revenue. Write your complete sales
review Rule 12A-1.056, Florida Administrative and use tax certificate number on the check or
Code, available at flrules.org. money order.
Do not send cash in the mail or pay with cash
Filing Frequency Limits
at a local service center.
Annual Sales Tax Return and Payment
Collections Filing Requirement Collection Allowance
More than $1,000 Monthly When you electronically file your sales and use tax
return and electronically pay timely, you are entitled
$501 - $1,000 Quarterly to take a collection allowance. The collection
$101 - $500 Semiannual allowance is 2.5% (0.025) of the first $1,200 of tax
due, not to exceed $30.
$100 or less Annual
If you are entitled to a collection allowance, you
The Department reviews each sales and use tax may donate the collection allowance to the
account annually to determine the correct filing Educational Enhancement Trust Fund. This fund is
frequency for the next calendar year. Businesses used to purchase up-to-date technology for
whose filing frequency will be changed to monthly classrooms in local school districts in Florida. If
beginning the following calendar year are mailed a you are eligible and choose to donate your
letter notifying the business of the upcoming filing collection allowance to education, check the box
frequency change. If you would like to change “Check here if donating collection allowance to
your filing frequency, call Taxpayer Services at education” on your electronic return and leave the
850-488-6800 to see if you qualify. line for reporting the collection allowance blank.
Tax Return and Payment Due Dates Your collection allowance amount will be
Returns and payments are due on the 1st and late transferred to the Educational Enhancement Trust
after the 20th day of the month following each Fund. You must make this choice on each original
reporting period. If the 20th falls on a Saturday, and timely filed electronic return. You cannot make
Sunday, or state or federal holiday, returns are this choice after your electronic return is filed.
timely if filed electronically (without payment), When No Tax is Due
postmarked or delivered in person on the first You must file a tax return for each reporting period,
business day following the 20th. For example, if even when you do not have sales or rental activity to
the sale took place during January and you file report. If you file electronic returns, you will need to
returns monthly, your tax return is due February 1 electronically file a tax return to report that you do not
and late after February 20; however, if you file owe tax for the reporting period. If you file paper tax
quarterly, your return is due April 1 and late after returns and are not claiming deductions or credits,
April 20. you can call 800-550-6713 and follow the voice
Electronic Payment Deadlines prompts to telefile your return to report that you do
When you electronically pay only, or you not owe tax for the reporting period.
electronically file and pay at the same time, you When you telefile your return, you will need the
must initiate your electronic payment and certificate number printed on your return, gross sales,
receive a confirmation number no later than exempt sales, taxable sales, and tax collected (which
5 p.m. ET on the business day prior to the 20th should be zero). You will receive a confirmation
to avoid penalty and interest. For a list of number for your records.
payment deadlines, visit
floridarevenue.com/forms and select the Penalty and Interest
current year Florida eServices Calendar of If you file your return or pay tax late, a late penalty of
Electronic Payment Deadlines (Form DR-659) 10% of the amount of tax owed, but not less than
under the eServices section. Keep a record of $50, may be charged. The $50 minimum penalty
your confirmation numbers. applies even if no tax is due. A floating rate of
interest also applies to late payments and
underpayments of tax. Interest rate information is
updated semiannually on January 1 and July 1 and

Business Owner’s Guide for Sales and Use Tax, Page 11

available at floridarevenue.com/taxes/rates. • Complete all information on your return,
including the front and back of your paper
Using the Correct Return return.
If you are not obligated, or have not voluntarily • Be sure to include your signature and your
enrolled, to file and pay electronically, the preparer’s signature.
Department will provide you with personalized tax • If you are reporting discretionary sales surtax
returns. (county tax) collected, you must complete the
Businesses that file returns monthly or quarterly are surtax portion of the return(Lines 15a – 15d).
provided personalized tax returns in a coupon book. • Do not include tax collected in gross sales. If
Before completing a return, be sure you are you include the tax collected in gross sales, it
using the correct tax return for the reporting will increase the amount of tax due and you will
period. The bar code information on each return receive a bill for additional tax due.
allows the Department to credit your tax account for • When you electronically file and pay on time, you
the reporting period printed on the return. may take a collection allowance. Be sure to
calculate it correctly. The collection allowance is
Your coupon book also contains returns marked 2.5% (0.025) of the first $1,200 of tax due, not to
“Your Copy” for your records. If you misplace or exceed $30 for each reporting location. If you have
damage the original return for a reporting period, less than $1,200 in tax due, your collection
you can use the copy for that reporting period to allowance will be less than $30.
file with the Department. • If you make tax payments electronically, you
If you need a replacement return or coupon book, must initiate electronic payments and receive a
call Taxpayer Services at 850-488-6800 for a confirmation number no later than 5 p.m. ET on
personalized return or coupon book to be mailed to the business day before the 20th.
you. To assist the Department in correctly posting How Long to Keep Records
your return information and tax payment, it is
Records supporting all transactions in the reporting
important that you use a return personalized for you
period must be kept for at least three years from the
for the correct reporting period.
date the return was filed or was required to be filed,
Estimated Sales Tax Payments whichever is later. If you fail to file a return, file a
Dealers who paid sales and use tax of $200,000 or substantially incorrect return, or substantially
more (excluding local option surtax and transient underpay the tax due, the Department may audit your
rental taxes) during July 1 through June 30 (the records for periods longer than three years.
state’s fiscal year) must make estimated sales tax All records and documents must be made available to
payments during the next calendar year. The the Department upon request. If you fail to produce
estimated payments begin with your December records or submit a grossly incorrect or fraudulent
return due January 1 of the next calendar year. report, you could be subject to criminal or civil
Visit floridarevenue.com/taxes/education for penalties.
more information and to view the tax tutorial How Maintain documentation to support exempt sales
to Calculate and Pay Estimated Sales and Use and rentals as a part of your business records.
Tax. Examples of documentation required to be
Tips for Filing Your Return obtained from purchasers for exempt sales or
• File on time for each reporting period, even rentals include:
if no tax is due. Don’t skip reporting periods • Copies of Florida Annual Resale Certificates for
or add a partial reporting period to the next Sales Tax
return. • Copies of Florida Consumer’s Certificates of
• If you file a paper return, you can sign up Exemption
to receive a due-date reminder email • Signed statements or exemption certificates
every reporting period. Electronic filers to support certain exemptions
are automatically signed up to receive • Documents that support shipment of
reminders when enrolled. merchandise to out-of-state locations
• Sales reported on lines A through E of the
Sales and Use Tax Return (Form DR-15)
may have different tax rates. Enter your
transactions on the correct lines.
• Compute the correct sales tax,
including discretionary sales surtax
(county tax), if any.

Business Owner’s Guide for Sales and Use Tax, Page 12

Types of Records A $2-per-day rental car surcharge applies to the
Complete and accurate records of all sales and first 30 days, or portion of a day, a motor vehicle is
purchases must be kept. Examples of records to continuously leased or rented in Florida to one
keep are: person, even when the vehicle is licensed outside of
Florida.
• Sales and purchase invoices, receipts,
statements, register tapes, and other A $1-per-usage rental car surcharge applies to the
evidence of sales and purchases use of a motor vehicle by a member of a car-sharing
• Sales tax exemption certificates and direct pay service for a period of less than 24 hours. If the
permits member uses the motor vehicle for 24 hours or more
• Florida Annual Resale Certificates for Sales Tax in a single usage, the $2-per-day surcharge applies.
accepted from other dealers
• Resale verification and authorization numbers Registration
• Purchase and sales journals, cash receipt and Retail sellers must register each business location
disbursement journals, other journals, and where new tires or lead-acid batteries are sold to
general ledgers collect, report, and pay new tire fees and lead-acid
• Copies of sales and use tax returns and battery fees. Each business location where leased
payments, including electronic payment and or rented passenger motor vehicles are picked up
return filing confirmation numbers by the lessee must be registered to collect, report,
and remit the rental car surcharge. Register online
New Tire Fee, Lead-Acid Battery Fee, at floridarevenue.com/taxes/registration or
and Rental Car Surcharge submit a paper Florida Business Tax Application
New tire fees and lead-acid battery fees are (Form DR-1).
imposed on retail businesses that sell motor
vehicle tires or new or remanufactured lead-acid
How to Report and Pay Fees and
batteries for use in motor vehicles (on-road or off- Surcharge
road), vessels, or aircraft, including those sold to The new tire fee, the lead-acid battery fee, and the
governmental entities or to nonprofit organizations. rental car surcharge are reported on the Solid Waste
and Surcharge Return (Form DR-15SW).
These fees, imposed at the time of sale in Florida, The new tire fee and lead-acid battery fee are
are: reported for each business location where new tires
• $1 for each new motor vehicle tire sold or lead-acid batteries are sold. The rental car
• $1.50 for each new or surcharge is reported by the county where the lessee
remanufactured lead-acid battery picks up the passenger motor vehicle. More
information on these fees and surcharge is available
Each fee must be separately stated on your at floridarevenue.com/taxes.
customer’s sales invoice. The fees are included
in the total sales amount subject to sales tax. Communications Services Tax
In Florida, communications services tax (CST)
A “motor vehicle” for purposes of these fees is applies to sales of communications services unless
one that transports people or cargo, such as a specific exemption applies.
automobiles, motorcycles, trucks, trailers, semi- Examples of communications services subject to tax
trailers, and truck tractors. It also includes include, but are not limited to:
vehicles that operate on and off the roads of • Local, long distance, and toll telephone services
Florida, such as golf carts, all-terrain vehicles, (including those provided by hotels and motels to
and travel trailers. their guests)
The rental car surcharge is imposed on the lease • Voice-over-Internet Protocol (VolP)
or rental of or use under a car-sharing service telephone services
membership of, motor vehicles designed to • Mobile communications services (e.g.,
accommodate fewer than nine passengers. The cellular telephone service)
surcharge does not apply to the lease or rental of • Cable television service
motorcycles, mopeds, trucks, trailers, recreational • Direct-to-home satellite television service
vehicles, or van conversions. The lease or rental is • Video streaming services
exempt from the surcharge when the purchaser • Music services, including streaming services
issues a sales tax exemption certificate to lease or • Facsimile (fax) service, except when
rent the motor vehicle exempt from sales tax. provided in the course of providing
professional or advertising services

Business Owner’s Guide for Sales and Use Tax, Page 13

The following are not taxed as communications State Tax Rate
services: information services (e.g., electronic 4.92% State CST rate
publishing, web hosting, or end user 900-number Gross receipts additional tax rate
service); internet access, electronic mail, electronic +0.15%
bulletin board, or similar online computer services; 5.07% These rates may be combined
and the sale or recharge of prepaid calling and billed as “state tax”
arrangements. Florida CST Rate
5.07% “State tax” rate
Registration
If you will engage in the business of selling +2.37% Gross receipts tax rate
communications services, you must register to 7.44% State tax + the gross receipts
collect, report, and remit tax. You are required to tax = Florida CST Rate
register before engaging in business.
Each local taxing jurisdiction (charter municipality,
You can register online at charter county, or non-charter county) can impose a
floridarevenue.com/taxes/registration or submit specific local tax rate. Visit
a paper Florida Business Tax Application (Form floridarevenue.com/taxes/rates for a list of local
DR-1). rates or tax rates for a specific address.
Upon initial registration, dealers will be sent a
Florida Annual Resale Certificate for Total CST Rate
Communications Services Tax (Form DR-700015) 4.92% State CST rate
and a Certificate of Registration (Form +0.15% Gross receipts additional tax rate
DR-700014). This annual resale certificate is
+2.37% Gross receipts tax rate
separate from the one issued for sales tax. The
resale certificate may only be used to make tax- Local CST Rates (varies by
+Various
exempt purchases of communications services jurisdiction)
that will be resold. Certificates expire each year Total Total CST rate
on December 31. Registered active dealers are
issued a new resale certificate annually. Dealers must add the Florida communications
services tax and the local communications services
Registered dealers who electronically file their tax tax to the sales price of the communications services
returns are required to print their own resale sold. The Florida communications services tax and
certificate. Dealers who file paper returns will be the local communications services tax must be
mailed a new certificate each year in mid- separately itemized on the customer billing.
November.
Exemptions
All registered active dealers, regardless of filing The following transactions are exempt from
method, may access their certificate at communications services tax:
floridarevenue.com/taxes/printcertificate. Once • Sales of communications services provided to the
logged in, the annual resale certificate may be federal government, its agencies or
downloaded and printed or saved. instrumentalities, or any entity exempt from state
Communications Services Tax Rates tax by federal law
Communications services tax has two parts: • Sales of communications services to the state, or
Florida communications services tax and any county, municipality, or political subdivision
local communications services tax. Florida of the state when payment is made directly to the
communications services tax includes state tax and dealer by the governmental entity
gross receipts tax. The total Florida • Sales of communications services to religious
communications services tax rate is 7.44%, which institutions, educational institutions, and homes
includes the state tax rate and gross receipts tax as for the aged as defined in section 202.125,
shown in the following “State Tax Rate” table: Florida Statutes
• Sales for resale that comply with the provision of
Rule 12A-19.060, Florida Administrative Code

Business Owner’s Guide for Sales and Use Tax, Page 14

• A partial exemption is granted for sales of thereof, not to exceed a total penalty of 50% of
communications services to a residential unpaid tax, is charged. A floating rate of interest
household (see below). Sales that qualify for applies to underpayments and late payments of tax.
the partial exemption are exempt from the Interest rate information is updated semiannually on
4.92% state tax and the 0.15% gross receipts January 1 and July 1 and is available at
tax. The sales remain subject to the 2.37% floridarevenue.com/taxes/rates.
gross receipts tax and local communications
Prepaid Wireless E911 Fee
services tax. The partial exemption does not
Retail sellers of prepaid wireless services are required
apply to sales to any residence that constitutes
to collect a 40¢ fee on the sale of each prepaid
all or part of a transient public lodging
wireless service that allows a caller to connect to and
establishment or sales of video services (e.g.,
interact with the Enhanced 911 (E911) System. This
cable television services,video streaming
includes calling cards, plans, replenishments, or
services, music services), direct-to-home
devices sold with prepaid wireless service.
satellite services, or mobile communications
services. When a sale to a consumer includes multiple prepaid
wireless services in a single transaction, each
Total CST Rate for Residential Households
individual prepaid wireless service is considered a
+2.37% Gross receipts tax rate separate retail sale subject to the E911 fee. If a
prepaid wireless device is sold with a prepaid
+Various Local CST rates (varies by jurisdiction) wireless service of 10 minutes or less, or for $5 or
The total CST rate for residential less, the seller may elect not to apply the prepaid
Total households is the gross receipts tax wireless E911 fee to the sale.
rate + the local tax rate
Retail sellers must separately state or disclose the
Direct-to-home satellite service is taxed at a state fee on an invoice, receipt, or similar document
tax rate of 9.07% and a gross receipts tax rate of provided to the consumer, or otherwise disclose the
2.37%, for a total tax rate of 11.44%. fee to the consumer.
File and Pay Communications Services Tax The prepaid wireless E911 fee is not subject to sales
Communications services tax is reported using a tax.
Florida Communications Services Tax Return
(Form DR-700016). The Department offers a Registration
secure website to file and pay communications Retail sellers must register each business location
services tax at floridarevenue.com/taxes/filepay. where prepaid wireless E911 services are sold to
You may voluntarily file and pay tax electronically; collect, report, and remit prepaid wireless E911
however, Florida law requires businesses that paid fees. You can register online at
$20,000 or more in communications services tax floridarevenue.com/taxes/registration or submit
between July 1 and June 30 (the state fiscal year) a paper Florida Business Tax Application (Form
to file returns and pay tax electronically during the DR-1).
next calendar year. Determining Where a Transaction Occurs
Returns and payments are due on the 1st and late Retail sellers are required to report prepaid wireless
after the 20th day of the month following each E911 fees by the county where the sales
reporting period. If the 20th falls on a Saturday, transaction occurs. The Department’s
Sunday, or state or federal holiday, returns are Address/Jurisdiction Database at
timely if filed electronically, postmarked, or floridarevenue.com/taxes/pointmatch can be
delivered in person on the first business day used to determine the county for any Florida
following the 20th. A return must be filed for address.
each reporting period, even if you do not owe If a retail transaction takes place in person by a
tax. consumer at a retail location in Florida, the
transaction occurs in the county of the retail
When you electronically pay, or you electronically
location.
file and pay at the same time, you must initiate
your electronic payment and receive a If a retail transaction does not take place at a retail
confirmation number no later than 5 p.m. ET on location in Florida and items are shipped to the
the business day prior to the 20th to avoid penalty consumer, the transaction occurs in the county of the
and interest. consumer’s shipping address.
If you file your return or pay tax late, a penalty of If the retail transaction does not take place at a retail
10% of any unpaid tax for each 30 days or fraction location in Florida and no items are shipped to the

Business Owner’s Guide for Sales and Use Tax, Page 15

consumer, the transaction occurs in the county of comparison includes the corporation’s property,
the consumer’s address or location associated payroll, and sales.
with the consumer’s mobile telephone number.
The corporate income tax rate imposed on Florida
If the county in which the transaction occurs net income is:
cannot be determined, the fee is reported as Taxable Year Prior to 1/1/2019 - On or after
nonspecific. Beginning 1/1/2019 12/31/2021 1/1/2022
Tax Rate 5.5% 4.458% 5.5%
File and Pay Prepaid Wireless E911 Fees
Prepaid wireless E911 fees are reported using a Filing Requirements
Florida Prepaid Wireless E911 Fee Return Generally, all corporations, associations, or entities
(Form E911-PPW). The Department offers a doing business, earning income, or existing in
secure website to file and pay prepaid wireless Florida are required to file a Florida Corporate
E911 fees at floridarevenue.com/taxes/filepay. Income/Franchise Tax Return (Form F-1120) or, if
You also have the option of buying software from a qualified, a Florida Corporate Short Form Income
software vendor. A list of software vendors is Tax Return (Form F-1120A). Sole proprietorships,
available at floridarevenue.com/taxes/eservices. individuals, estates of decedents, and testamentary
You may voluntarily file and pay fees trusts are exempt and do not have to file a return.
electronically; however, Florida law requires For more information on filing Form F-1120A, visit
businesses that pay $20,000 or more in prepaid floridarevenue.com/taxes/cit.
wireless E911 fees between July 1 and June 30 A limited liability company, classified as a
(the state fiscal year) to file returns and pay fees corporation for Florida and federal income tax
electronically during the next calendar year. purposes, must file a Florida corporate income tax
Retail sellers may file returns using the same return.
filing frequency as their sales and use tax returns. A limited liability company, classified as a partnership
Sellers who anticipate fee collections to be less for Florida and federal income tax purposes, must file
than $50 per month may elect to report fees a Florida Partnership Information Return (Form
quarterly. F-1065) if one or more of its owners is a corporation.
Returns and payments are due on the 1st and In addition, corporate owners must file a Florida
late after the 20th day of the month following each corporate income tax return.
reporting period. If the 20th falls on a Saturday, A single-member limited liability company
Sunday, or state or federal holiday, returns are disregarded for federal and Florida income tax
timely if filed electronically, postmarked, or purposes is not required to file a separate Florida
delivered in person on the first business day corporate income tax return. The income must be
following the 20th. reported on the owner’s return if the single-member
When you electronically pay, or you electronically limited liability company is owned, directly or
file and pay at the same time, you must initiate your indirectly, by a corporation. The corporation must
electronic payment and receive a confirmation file a Florida Corporate Income/Franchise Tax
number no later than 5 p.m. ET on the business Return (Form F-1120) reporting its own income and
day prior to the 20th to avoid penalty and interest. the income of the single-member limited liability
company, even if the only activity of the corporation
Collection Allowance is ownership of the single-member limited liability
Retail sellers who file and pay timely are entitled to company. S corporations that pay federal income
take a 5% collection allowance. tax and tax-exempt organizations that have
“unrelated trade or business income” for federal
Florida Corporate Income Tax
income tax purposes must file a Florida corporate
Florida corporate income and franchise tax is
income tax return and pay any tax due.
imposed on all corporations for the privilege of
conducting business, deriving income, or Generally, the Florida corporate income tax return is
existing within Florida. Corporations, including due on or before the first day of the fifth month
entities that are taxed federally as following the close of the taxable year or the 15th
corporations, are subject to the tax. day following the due date, without extension, for the
A corporation’s federal income, as adjusted by filing of the related federal return, whichever is later.
Florida additions, subtractions, and adjustments, Visit floridarevenue.com/taxes/cit for more
is apportioned to Florida based on the information.
corporation’s activities in Florida compared to its
activities everywhere. In most cases, this

Business Owner’s Guide for Sales and Use Tax, Page 16

Florida New Hire Reporting Requirement • Purchases all or part of a liable business, or the
Federal and state law require Florida employers to combination of the business’s existing payroll or
report all new and rehired employees who work in employment and that of the business purchased,
Florida to meets the liability criteria
servicesforemployers.floridarevenue.com. Nonprofit organizations, government agencies, and
Employers must report all employees who work in Indian tribes are given the option of paying their
Florida, even if they only work one day. reemployment insurance costs by the tax-paying
Florida Reemployment Tax method (contributory) or the reimbursement method.
The Reemployment Assistance Program provides The reimbursing employer must repay benefits paid to
partial temporary income to workers who lose their former employees on a dollar-for-dollar basis.
jobs through no fault of their own and are able to Regardless of the method of payment, these
and available for work. employers (like contributory employers) must submit
an Employer’s Quarterly Report (RT-6) each quarter.
Reemployment tax is paid by employers, and the
tax collected is deposited into the state Nonprofit organizations, government agencies, and
Unemployment Compensation Trust Fund for the Indian tribes may elect to change the method of
sole purpose of paying reemployment assistance paying reemployment tax. See Information for
benefits to eligible claimants. The Department of Nonprofit Organizations (Form RTS-1C), available at
Economic Opportunity administers reemployment floridarevenue.com/forms under the Reemployment
assistance benefits. Only the first $7,000 of Tax section.
wages paid to each employee by their employer Employers liable for reemployment tax must display
in a calendar year is taxable. the poster To Employees (Form RT-83) where all
Employers pay Florida reemployment tax as a employees can see it. The poster is also available in
cost of doing business. Workers do not pay any Spanish (Form RT-83SP). Posters are available for
portion of this tax, and employers may not download at floridarevenue.com/forms.
make payroll deductions for the tax. Registration
Employers Liable for Reemployment Tax Employers register with the Florida Department of
An employer is liable to pay reemployment tax Revenue to report and pay Florida reemployment
when the employer meets any of the following tax. You can register online at
conditions: floridarevenue.com/taxes/registration or submit a
• Liable for federal unemployment tax Florida Business Tax Application (Form DR-1).
• Previously liable for reemployment tax in Your Tax Rate
the state of Florida The initial tax rate for new employers is 2.7%,
• Quarterly payroll of $1,500 or more which is applied to the first $7,000 in wages paid
in a calendar year to each employee during a calendar year. Any
• One or more employees for a day (or portion amount over $7,000 for the year is excess wages
of a day) during any 20 weeks in a calendar and is not subject to tax.
year
• Agricultural employer with five or more When a new employer becomes liable for
workers for a day (or portion of a day) reemployment tax, the initial rate of 2.7% applies
during any 20 weeks in a calendar year, or until the employer has reported for 10 quarters.
a $10,000 cash payroll or more in any Employers with stable employment records receive
calendar quarter reduced tax rates after a qualifying period.
• Private home or college club that paid $1,000 The only exception is for employers liable by
cash or more in a quarter for domestic succession who choose to accept the tax rate of the
services in a calendar year previous employer, along with the responsibility of
• Indian tribe or tribal unit paying any outstanding amounts due. At that time, a
• Nonprofit organization as defined in tax rate will be calculated using the employment
s. 3306(c)(8) of the Federal record and the rating factors, which are built into the
Unemployment Tax Act and s. 501(c)(3) Reemployment Assistance Law.
of the Internal Revenue Code and have
four or more employees for a day (or Successors must complete the Report to Determine
portion of a day) during any 20 weeks in Succession and Application for Transfer of
a calendar year Experience Rating Records (RTS-1S) within 90 days
• State, county, city, or joint governmental unit of the date of the succession.

Business Owner’s Guide for Sales and Use Tax, Page 17

The maximum tax rate allowed by law is 5.4%, complete and accurate information needed to
except for employers participating in the Short determine a claimant’s eligibility for benefits. Improper
Time Compensation Program. The 5.4% rate can payment of benefits can lead to negative financial
be earned, or it can be assigned to employers impacts for employers. Here’s how you can prevent
who have delinquencies greater than one year improper payments and protect your tax rate:
and to those employers who fail to produce all • Report all new and rehired employees to the
work records requested for an audit. By law, an Florida New Hire Reporting Center by the due
employer’s tax rate may not be lower than .1%. date, as required by federal law. Timely reporting
Rate notices are mailed to all contributing helps prevent improper payment of benefits after
employers each year. You may appeal the tax an individual has returned to work.
rate within 20 days from the date of notification • Respond promptly to any Request for Verification
(date printed on the rate notice). of Weekly Earnings. Verifying earnings ensures
that the correct amount of reemployment
File and Pay Reemployment Tax assistance is paid for weeks of partial
Employers must file an Employer’s Quarterly unemployment.
Report (Form RT-6) to report wage data and pay • Provide complete and accurate employee
reemployment tax due each calendar quarter. The separation information. The employer’s timely
Employer’s Quarterly Report is due the first day of response to the Determination Notice of
the month following the end of each calendar Reemployment Assistance Claim Filed (Form
quarter and is timely if filed electronically, UCB-412) is used, in part, to determine the
postmarked, or delivered in person on or before claimant’s eligibility for reemployment assistance.
the last day of the month following the calendar
quarter. If the last day of the month is a Saturday, Employers who do not comply with state and federal
Sunday, or state or federal holiday, reports are requirements for providing employee information risk
timely if filed electronically, postmarked, or higher costs through increased taxes, fines, or
delivered in person on the next business day. penalties.
Quarter Due By For questions about benefit eligibility and payment,
1st January – March April 30 call the Florida Department of Economic
2nd April – June July 31 Opportunity’s Reemployment Assistance Program at
3rd July – September October 31 800-204-2418.
4th October – December January 31 Changing Your Business Information
You must file a report each calendar quarter, Notify the Department of Revenue if you:
even if you did not pay wages and you do not • Change your business name
owe reemployment tax for the quarter. • Change your mailing address
• Change your location address within the same
Electronic Payment Deadlines county
Employers who employed 10 or more employees • Close or sell your business
in any calendar quarter between July 1 and
June 30 (the state fiscal year) must file reports You can also notify the Department when you
and pay tax electronically the next calendar year. temporarily suspend or resume business operations.
The quickest way to notify the Department of a
When you electronically pay, or you electronically change is online at
file and pay at the same time, you must initiate floridarevenue.com/taxes/updateaccount.
your electronic payment and receive a Submit a new registration (online or paper) if you:
confirmation number no later than 5 p.m. ET on • Move your business location from one Florida
the business day prior to the filing date to avoid county to another
penalty and interest. • Add another business location
• Purchase or acquire an existing business
Penalty and Interest
• Change the form of ownership of your business
A late filing penalty is charged at $25 per month or
fraction of a month that a report is delinquent. A If you close or sell your business, you must file a
floating rate of interest applies to late payments of final return and pay all taxes due within 15 days
tax. Interest rate information is updated after closing or selling the business. Your final return
semiannually on January 1 and July 1 and is must cover the period from your most recent return
available at floridarevenue.com/taxes/rates. filing to the closing date.
Protecting Your Tax Rate To notify the Department in writing, send an email to
Employers can help reduce tax rates by providing acctmaint@floridarevenue.com.

Business Owner’s Guide for Sales and Use Tax, Page 18

To mail the Department a letter: issue, call the office at 850-617-8168. Visit
Account Management MS 1-5730 floridarevenue.com/taxpayersrights for more
Florida Department of Revenue information.
5050 W Tennessee St Additional Resources
Tallahassee, FL 32399-0160
The Florida Business Information Portal
Be sure to include your business partner The Florida Business Information Portal at
number and your certificate number when OpenMyFloridaBusiness.gov helps individuals
writing the Department. seeking to start and operate a business in Florida.
Buying an Existing Business The portal focuses on State of Florida government
Before buying an existing business, the purchaser requirements and resources for businesses. By
should ask the seller for documentation of any tax, entering the type of business you want to start, the
penalty, or interest due to the Florida Department portal provides a checklist to help you understand
of Revenue. The purchaser could be liable for what governmental requirements for your business
is owed in relation to the business. The purchaser category. The downloadable Guide to Starting a
can withhold enough of the purchase money to Business in Florida provides basic tools to open a
cover the liability until the seller pays the amount business in Florida and supplementary resources
due. While the sale is pending, the purchaser such as business-specific checklists.
should have the seller hold an amount in escrow Tax Education Webinars
equal to any potential liability. The Department of Revenue presents webinars on
The seller can ask the Department for a Certificate topics that provide important tax information for
of Compliance as proof the Department has not your business. Tax webinars are available through
issued a Notice of Intent to Audit Books and the Department’s website at
Records and there are no outstanding liabilities on floridarevenue.com/taxes/education and include:
their account. The seller can provide this certificate • Florida Sales and Use Tax – Helping You
to the purchaser as proof of good standing when Succeed
selling a business or business interest. • Florida Sales Tax Tales: Fact vs. Fiction
• Florida Reemployment Tax Basics: Foundation
For more information, visit floridarevenue.com, for Your Success
select “Businesses and Employers,” and then • Use Tax and You: What Businesses Should
select “Certificate of Compliance.” Know About Florida’s Most Misunderstood Tax
• File and Pay Florida Taxes with Confidence
Power of Attorney
To protect your privacy, access to personal Learn More with Tax Tutorials
information about you is limited to individuals Tutorials can help you learn the basics of your
authorized by law to have access to it. To ensure responsibilities as a Florida employer and provide
that information is not provided without your information to assist you in collecting, reporting, and
consent, a written request from you is required remitting tax to the Department.
before the Department will provide your tax
information. To provide your consent, complete a The following tutorials are available at
Power of Attorney and Declaration of floridarevenue.com/taxes/education:
Representative (Form DR-835) to authorize your • Reemployment Tax Basics for Employers
representative to receive designated tax • Overview of Sales and Use Tax for Business
information. Owners
• Internet Enrollment for eServices
Florida Taxpayers’ Rights Advocate • How to eFile and ePay Sales and Use Tax
The mission of the Florida Taxpayers’ Rights (Form DR-15)
• How to Complete Sales and Use Tax Return
Advocate is to help promptly resolve problems
that have not been resolved through normal (Form DR-15)
• How to Complete Sales and Use Tax Return
Department administrative processes. The Office
of Taxpayers’ Rights Advocate is not a substitute (Form DR-15EZ)
• How to Calculate and Pay Estimated Sales and
for the Department’s normal administrative
procedures for appealing a tax assessment. The Use Tax
• How to Calculate, Collect, and Report Your
office can, however, assist a taxpayer who feels
all the issues in a case were not properly Discretionary Sales Surtax
• Motor Vehicle Dealers: How to Calculate,
addressed. If you believe the Office of Taxpayers’
Rights Advocate could assist you with your tax Collect, and Report Sales Tax

Business Owner’s Guide for Sales and Use Tax, Page 19

Florida Tax Handbook
The Florida Tax Handbook is an excellent source
for comprehensive information about exclusions,
exemptions, deductions, and credits from sales
and use tax. Visit edr.state.fl.us and search for
“Tax Handbook.”
Contact Information
Information and tutorials are available online at
floridarevenue.com/taxes/education.
Tax forms, industry-specific brochures, and
publications are available online at
floridarevenue.com/forms.
To speak with a Department of Revenue
representative, call Taxpayer Services at
850-488-6800, Monday through Friday,
excluding holidays.
For written replies to tax questions, write to:
Taxpayer Services ─ MS 3-2000
Florida Department of Revenue
5050 W Tennessee St
Tallahassee FL 32399-0112
Subscribe to Receive Updates by Email
Subscribe to receive an email for due-date
reminders, Tax Information Publications (TIPs), or
proposed rules, including notices of rule
development workshops and emergency
rulemaking. Subscribe today at
floridarevenue.com/dor/subscribe.

Follow the Department of Revenue on Twitter.

Visit twitter.com and follow @FloridaRevenue.

Business Owner’s Guide for Sales and Use Tax, Page 20