Were printed informational stickers sold to automobile dealers for attachment to cars offered for sale subject to Florida sales tax?

Plain-English summary

The printed stickers sold to automobile dealers were not subject to Florida sales and use tax.

Dealers affixed the stickers to vehicles offered for sale. The labels supplied vehicle information, sometimes to meet federal requirements, remained with the cars while offered for sale, and were discarded when the vehicles were sold. Their cost was included in the vehicle's purchase price, on which the dealer collected sales tax.

Florida's rule excludes labels and tags that remain affixed to tangible property offered for sale and provide information such as the property's nature, maker, price, size, operation, or maintenance.

What this means for you

A printed item can be exempt as a product label even though the label itself is tangible property. The relevant facts were that it accompanied the car offered for sale, furnished information about that car, and was used in that sale process.

Common questions

Were the auto-dealer stickers taxable? No.

Why did they qualify as labels? They remained affixed to vehicles offered for sale and furnished information about the vehicles.

Did federal labeling requirements matter? They supported the informational use, but the Department relied on Florida's label-and-tag statute and rule.

Citations and references

• Fla. Stat. § 212.02(14)(c).
• Fla. Stat. §§ 212.05 and 212.055.
• Fla. Admin. Code r. 12A-1.040(5)(a)1.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 23A-014

Original ruling text

QUESTION: Whether the sales of stickers, which are affixed by automobile dealers to automobiles
for sale and are used as informational labels, are subject to Florida sales and use tax.
ANSWER: The sales of stickers, which are affixed by automobile dealers to automobiles for sale and
are used as informational labels, are not subject Florida sales and use tax.
June 20, 2023

Re:

Dear

Technical Assistance Advisement – TAA #: 23A-014
. (“Taxpayer”)
Sales and Use Tax – Labels and Tags
Sections 212.02(14)(c), 212.05, and 212.055, Florida Statutes (“F.S.”)
Rule 2A-1.040, Florida Administrative Code (“F.A.C.”)
BP#:
,

This is in response to your letter dated April 26, 2023, requesting this Department’s issuance of a
Technical Assistance Advisement (“TAA”) pursuant to Section(s.) 213.22, F.S., and Rule Chapter 1211 F.A.C, Florida Administrative Code, regarding the matter discussed below. 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 s. 213.22, F.S.
REQUESTED ADVISEMENT
Whether the sales of stickers, which are affixed by automobile dealers to automobiles for sale and
are used as informational labels, are subject Florida sales and use tax.
FACTS
Taxpayer, via its
subsidiary, is engaged in the sale of stickers to auto dealers. The
stickers are affixed to automobiles to be sold. The sticker is discarded when the automobile is sold,
and the dealer collects sales tax on the sale of the automobile. The cost of the sticker is passed along
to the consumer in the form of the purchase price. Taxpayer believes that the sticker is not taxable,

Technical Assistance Advisement
June 20, 2023
Page 2

as it is an informational label sold to auto dealers. Taxpayer states that the label meets the federal
requirements for labels used in the sales of cars. Additionally, the label is sometimes required to
comply with certain federal regulations, such as the Federal Trade Commission’s Used Car Rule.
Taxpayer provided a picture of the blank label, which it buys, and the printed label, which it sells to
automobile dealers. Additionally, a sample invoice was provided.
LAW AND DISCUSSION
Unless a specific exemption applies, s. 212.05, F.S., provides it is the legislative intent that every
person is exercising a taxable privilege that engages in the business of selling tangible personal
property1 in this state. For exercising such a privilege, a tax is levied on each taxable transaction or
incident. The tax is due and payable at the rate of 6 percent, plus any applicable surtaxes imposed
under s. 212.055, F.S., on the total consideration received for each item or article of tangible personal
property when sold at retail in this state.
However, s. 212.02(14)(c), F.S., provides that retail sales “do not include materials, containers, labels,
sacks, bags, or similar items intended to accompany a product sold to a customer without which
delivery of the product would be impracticable because of the character of the contents and be used
one time only for packaging tangible personal property for sale ….”
Rule 12A-1.040, F.A.C., clarifies s. 212.02(14)(c), F.S., and provides the following in part:

(5) Labels, tags, and instructional materials.
(a)1. Labels, tags, and name plates, including the printing of these items, are not subject to tax when
they remain affixed to tangible personal property offered for sale or affixed to the container
containing tangible personal property prepared for shipment or delivery and:
a. Furnishes information as to the nature, quantity, maker, price, size, operation, or
maintenance of the tangible personal property for sale; or
b. Furnishes information as to the destination or the carrying instructions for the package
during shipment.

Based on the above, the sale of stickers which are affixed to automobiles to be sold is not subject to
Florida sales and use tax.
CONCLUSION
The sales of stickers, which are affixed by automobile dealers to automobiles for sale and are used as
informational labels, are not subject Florida sales and use tax. See s. 212.02(14)(c), F.S., and Rule 12A1

Tangible personal property means and includes personal property which may be seen, weighed, measured, or
touched or is in any manner perceptible to the senses. See s. 212.02(19), F.S.

Technical Assistance Advisement
June 20, 2023
Page 3

1.040, F.A.C.
This response constitutes a TAA under s. 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 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 TAA,
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
ten (10) 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)717-6839.
Sincerely,

Xiaoxi Miao
Xiaoxi Miao
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850)717-6839
Record ID: 7000981046

Technical Assistance Advisement
June 20, 2023
Page 4

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