Did Walton County's surtax apply to furniture later shipped to a buyer in a nonsurtax county?

Subject

Surtax - Delivery

Plain-English summary

Walton County's 1% discretionary sales surtax applied to all four items, including the two later shipped to Okaloosa County. The buyer took two lamps immediately and arranged an independent local carrier for a sofa table and wardrobe.

The retailer only helped arrange the shipment as a courtesy. The buyer paid the carrier directly and bore delivery risk, so title and possession had already passed in Walton County before shipment.

What this means for you

The buyer's home county and final destination did not control on these facts. Florida located the transaction where the buyer acquired title and possession, considering who hired the carrier and bore responsibility in transit.

Common questions

Q: Did the surtax apply to the two carry-out lamps? Yes.

Q: Did shipping the furniture to a nonsurtax county avoid the surtax? No.

Q: Why? The buyer independently arranged and paid for delivery after title and possession passed in Walton County.

Citations and references

• Fla. Admin. Code r. 12A-15.003(1), (2)(a)1. — county surtax transaction location
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 00A-011

Original ruling text

SUMMARY

QUESTION: Are the sales of four items in Walton County
subject to the 1% Discretionary Sales Surtax? The purchase
is made by an individual from Okaloosa County, a county not
imposing a sales surtax, two of the items are taken with
the purchaser at the time of sale, and the remaining two
items are shipped to the purchaser by an independent
shipper.

ANSWER - Based on Facts Below: All four of the items
purchased are subject to Walton County's 1% Discretionary
Sales Surtax because the buyer took possession of all four
items at the time of purchase. The title to all four items
sold passed to the buyer in the surtax county and, as such,
the sales would be subject to the surtax.

Mar 14, 2000

Re: Technical Assistance Advisement 00A-011
Sales and Use Tax
XXX ("taxpayer")
Surtax - Delivery
Rule 12A-15.003(1),(2)(a), F.A.C.

Dear :

This letter is a response to your request dated January 21,
2000, for the Department's issuance of a Technical Assistance
Advisement ("TAA") concerning the above referenced party and
matter. Your request has been carefully examined and the
Department finds it to be in compliance with the requisite
criteria set forth in Chapter 12-11, F.A.C. This response to
your request constitutes a TAA and is issued to you under the
authority of section 213.22, F.S.

FACTS PRESENTED

XXX (hereinafter "the taxpayer") is a retail XXX sales business
located in Walton County, Florida, a county imposing the 1%
Discretionary Sales Surtax. A sale has been made by the
taxpayer to a customer located in Okaloosa County, a county not
imposing a sales surtax.

On January 12, 2000, a buyer from Okaloosa County purchased
four items from the taxpayer's business. All four of the items
were purchased at the same time and billed on the same invoice.
The buyer took two of the items back to Okaloosa County, an
Oriental Ginger Jar Lamp and a Golfing Lady Lamp, at the time of
the purchase. The other two items, a sofa table and a large
pine wardrobe, were unable to be taken with the buyer at the
time of the sale. The buyer requested delivery of the two items
of furniture from the taxpayer. The taxpayer indicated that
they could arrange for delivery of the furniture through a local
delivery service, but the buyer would have to pay the delivery
service directly. The taxpayer, as a courtesy to their
customers, makes shipping arrangements, but in no way
participates in the revenues for these services; nor is the
taxpayer responsible for the safety of the merchandise en route
to the buyer. The buyer agreed with the shipping arrangements,
and the local shipping company delivered the furniture to the
buyer.

REQUESTED ADVISEMENT

You have requested clarification as to whether the sales of
the four items in Walton County are subject to the 1%
Discretionary Sales Surtax. The purchase is made by an
individual from Okaloosa County, two of the items are taken with
the purchaser at the time of sale, and the remaining two items
are shipped to the purchaser by an independent shipper.

APPLICABLE LAW

Rule 12A-15.003(1), F.A.C., provides in part, as follows:

(1) All transactions occurring in a county imposing the surtax
which are subject to the state tax imposed on sales, use,
rentals, admissions, and other transactions by Chapter 212,

F.S., are subject to the surtax....

Rule 12A-15.003(2)(a)1., F.A.C., provides in part, as follows:

(2) For purposes of the surtax, a transaction... shall be
deemed to have occurred in a county imposing the surtax
when:

(a)1. The selling dealer is located in the county imposing
the surtax, delivery is made to a location within the
county, and the sale includes tangible personal
property....

a. Example: A dealer in County A (a county imposing the
surtax at the rate of 1%) sells a washing machine for
$299 to a purchaser who takes the washing machine with
him. The transaction is deemed to have occurred in
County A and the surtax applies. Tax is due at the
rate of 7% (6% state sales tax and 1% surtax)....

Sales of tangible personal property subject to sales tax
that are sold and delivered to a buyer in a county imposing a
sales surtax are subject to the surtax. The four items
purchased from the taxpayer were subject to both the sales tax
and the surtax imposed. The buyer took possession of all four
items at the time of purchase; two of the items were taken from
the taxpayer's premises immediately, and two items were shipped
per the buyer's request. The title to all four items sold
passed to the buyer in the surtax county and, as such, the sales
would be subject to the surtax. The delivery and safety of the
merchandise sold was the responsibility of the buyer and the
shipping company, not of the taxpayer. The taxpayer did not
make delivery, nor was the taxpayer responsible for the
merchandise shipped to the buyer.

CONCLUSION

All four of the items purchased on January 12, 2000, are
subject to Walton County's 1% Discretionary Sales Surtax. The
purchaser of the items is not entitled to a refund of the surtax
paid on the two items shipped to Okaloosa County.

This response constitutes a Technical Assistance Advisement
under section 213.22, F.S., which is binding on the Department
only under the facts and circumstances described in the request
for this advice, as specified in section 213.22, F.S. Our
response is predicated upon those facts and the specific
situation summarized above. You are advised that subsequent
statutory or administrative rule changes or judicial
interpretations of the statutes or rules upon which this advice
is based may subject similar future transactions to a different
treatment from that which is expressed in this response.

You are further advised that this response and your request
are public records under Chapter 119, F.S., which are subject to
disclosure to the public under the conditions of section 213.22,
F.S. Your name, address, and any other details that might lead
to identification of the taxpayer must be deleted by the
Department before disclosure. In an effort to protect the
confidentiality of such information, we request you notify the
undersigned in writing within 15 days of any deletions you wish
made to the request or this response.

If you have any questions, please contact me at (850) 4888026.

Kind Regards,

Alan R. Fulton
Senior Tax Specialist
Technical Assistance and Dispute Resolution

Control No. 40075