Was a liquid concentrate made from coffee, natural flavoring, and sweeteners exempt from Florida sales tax as food?

Plain-English summary

The Florida Department of Revenue concluded that the taxpayer's liquid coffee concentrate was exempt from sales tax as a food product.

The online product was made from a blend of coffee, natural flavoring, and sweeteners. Florida's food exemption covers edible commodities generally regarded as food and specifically includes coffee and coffee substitutes.

What this means for you

Coffee-product sellers

The ruling supports food-exemption treatment for the specific liquid concentrate and ingredients submitted to the Department.

Tax professionals

Confirm that a different formulation remains a food product rather than assuming every beverage concentrate receives the same result.

Common questions

Q: Was the liquid coffee concentrate taxable?
A: No.

Q: Did its online sale change the result?
A: No, on the facts addressed.

Citations and references

• Fla. Stat. §§ 212.08(1) and 213.22
• Fla. Admin. Code r. 12A-1.011(2)(a)7.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 12A-029

Original ruling text

Interim
Executive Director
Marshall Stranburg

QUESTION: Whether the sale of a liquid coffee concentrate is exempt from sales tax as a food
product under s. 212.08(1), F.S.
ANSWER: The liquid concentrate coffee product qualifies as an exempt food product under s.
212.08(1), F.S., and is not subject to sales tax.

December 5, 2012

Re:

Technical Assistance Advisement – TAA 12A-029
Concentrated Coffee Product
Taxpayer Name: XXX (“Taxpayer”)
Taxpayer ID Number: XXX
Sales and Use Tax
Section 212.08(1), Florida Statutes (F.S.)
Rule 12A-1.011, Florida Administrative Code (F.A.C.)

Dear XXX:
This response is in reply to your letter to the Department, dated XXX, in which you are
requesting the Department's issuance of a Technical Assistance Advisement ("TAA") pursuant to
s. 213.22, F.S., and Chapter 12-11, F.A.C., regarding whether the sale of a liquid coffee
concentrate is exempt from sales tax as food product under section 212.08(1), F.S. An
examination of your petition has established that you have complied with the statutory and
regulatory requirements for issuance of a TAA. Therefore, the Department is hereby granting
your request for issuance of a TAA.
As provided in s. 213.22(1), F.S., a technical assistance advisement may be issued to a taxpayer
who requests an advisement relating to the exemptions in s. 212.08(1) or (2), F.S., at any time.
Technical assistance advisements shall have no precedential value except to the taxpayer who
requests the advisement and then only for the specific transaction addressed in the technical
assistance advisement, unless specifically stated otherwise in the advisement.
As stated in your letter, Taxpayer manufactures a liquid coffee concentrate made from a blend of
coffee, natural flavoring, and sweeteners. The product is sold almost exclusively via the internet
to end consumers throughout the United States.

Child Support Enforcement – Ann Coffin, Director  General Tax Administration – Maria Johnson, Director
Property Tax Oversight – James McAdams, Director  Information Services – Tony Powell, Director

www.myflorida.com/dor
Tallahassee, Florida 32399-0100

Technical Assistance Advisement
Page 2
REQUESTED RULING
You are requesting advisement regarding whether the sale of a liquid coffee concentrate is
exempt from sales tax as a food product under s. 212.08(1), F.S. It is your contention that the
product is exempt from sales tax as a food product, and that Taxpayer is not required to collect
sales tax on sales made to its Florida customers.
LAW
Pursuant to s. 212.08(1), F.S., there are exempted from tax imposed by this Chapter, 212, F.S.,
food products for human consumption. The term "food products," as defined in
s. 212.08(1)(b), F.S., means “edible commodities, whether processed, cooked, raw, canned, or in
any other form, which are generally regarded as food.” Food products include coffee and coffee
substitutes. See also Rule 12A-1.011(2)(a)7., F.A.C.
DETERMINATION
The liquid concentrate coffee product submitted for our review, qualifies as an exempt food
product under s. 212.08(1), F.S., and is not subject to sales tax.
This response constitutes a Technical Assistance Advisement under s. 213.22, F.S. which is
binding on the department only under facts and circumstances described in the request for this
advice, as specified in s. 213.22, F.S. Our response is predicated on 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 than expressed in this response.
You are further advised that this response, your request and related backup documents are public
records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions
of s. 213.22, F.S. Confidential information must be deleted before public disclosure. In an effort
to protect confidentiality, we request you provide the undersigned with an edited copy of your
request for Technical Assistance Advisement, the backup material and this response, deleting
names, addresses and any other details which might lead to identification of the taxpayer. Your
response should be received by the Department within 15 days of the date of this letter.
If you have any further questions with regard to this matter and wish to discuss them, you may
contact me directly at (850) 717-7202.
Sincerely,
Richard R. Parsons
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850) 717-7202
Record ID: 134004