Question 1

What is use tax?

Accepted Answer

Use tax: a tax on the use, storage, or consumption of tangible personal property that was purchased without paying sales tax. Purpose: to complement the sales tax (if a buyer purchases goods from an out-of-state seller who does not collect FL sales tax: the buyer owes use tax at the same rate). In FL: the use tax rate is 6% (the same as the FL sales tax rate; plus any applicable local surtax). The use tax: prevents buyers from avoiding sales tax by purchasing from out-of-state sellers. Common triggers: online purchases, purchases in other states, and purchases from vendors who do not collect FL sales tax.

Question 2

How does use tax apply to Florida real estate?

Accepted Answer

RE application: construction materials (if a contractor purchases materials from an out-of-state supplier who does not collect FL sales tax: use tax is owed on the materials), furnishings (if a property owner purchases furniture or equipment from an out-of-state retailer: use tax is owed), and leased equipment (equipment leased for use in FL is subject to use tax if the lessor does not collect FL sales tax). The use tax: is self-reported by the purchaser on their FL sales and use tax return (DR-15). Penalty: failure to pay use tax: can result in back taxes, interest, and penalties.

Question 3

Who is responsible for paying use tax in Florida?

Accepted Answer

Responsible: the purchaser (not the seller). If the seller collects FL sales tax: no use tax is owed (the sales tax satisfies the obligation). If the seller does not collect: the purchaser must self-report and pay the use tax to the FL Department of Revenue. Businesses: must report use tax on their monthly or quarterly sales and use tax return (DR-15). Individuals: must report use tax on their FL consumer’s use tax return (DR-15MO) or on certain purchases through voluntary compliance. Exemptions: the same exemptions that apply to sales tax generally apply to use tax (e.g., groceries, medicine, and certain agricultural products).

Use Tax

Use Tax

What It Is

RE Application

Who Pays

Related Terms

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