Which components of the airport's automated people-mover replacement project qualified for Florida's sales-tax exemption?

Plain-English summary

Florida treated the publicly owned airport's automated people-mover system as an exempt people-mover system, but the exemption did not cover every item installed under the public-works contract.

Removable rail-line signaling equipment qualified, as did telecommunications equipment that retained its character as tangible equipment. Related power-distribution equipment assembled in delivery bungalows—including the backup generator, transformer switchgear, and blue-light stations—also qualified. Platform-screen-door equipment, the barrier-wall system with emergency doors, and removable over-travel buffers were exempt components.

The contractor remained liable for tax on items that became part of the realty. The Department identified embedded conduits and wiring in ceilings, floors, walls, or underground; concrete equipment pads; permanently mounted and wired CCTV monitors; and permanently wired terminal signage as taxable.

What this means for you

The classification turned on installation, not just on whether an item supported the transportation system. Equipment that could be removed without damaging the structure could qualify as part of the people-mover system. Embedded transmission materials and permanent building fixtures fell under the ordinary public-works contractor rules instead.

The advisement also says the contractor must give vendors the people-mover exemption certification described in Rule 12A-1.094(8)(b) for qualifying purchases.

Common questions

Was all signaling equipment exempt? Removable rail-line signaling equipment was exempt, but wiring and conduits embedded in the building or ground were taxable.

Were telecommunications items exempt? Equipment retaining its status as tangible equipment qualified. Permanently mounted and wired CCTV monitors and terminal signage were fixtures and taxable.

What power equipment qualified? The assembled backup generator, transformer switchgear, and blue-light station equipment qualified; concrete pads and embedded wiring did not.

Did the platform-door system qualify? Yes. The Department's exempt list included the door equipment, controls, panels, photo-eye system, barrier-wall system with emergency doors, and removable over-travel buffers.

Citations and references

• Fla. Stat. § 212.08(7)(zz).
• Fla. Stat. § 212.06(14).
• Fla. Admin. Code r. 12A-1.094(2), (5), and (8).
• Fla. Admin. Code r. 12A-1.051(10).

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 24A-001

Original ruling text

QUESTION

What is the proper tax treatment of the Signaling Equipment,
Telecommunications, Electrification, Platform Screen Doors and Barrier
Walls with regard to a “people mover system?”

EQUIPMENT
Signaling
Equipment

EXEMPT
Rail line signaling equipment that is
fastened to the rail line or the
structure that holds the rail line
and can be easily removed for
repair or replacement without
damaging the structure.

TAXABLE
Conduits or wiring running between
the rail line, power generation
equipment and control room or
between the equipment in the
central control room or signaling
room that is embedded in the ceiling,
under floor, or underground.

Telecommunicatio
ns Equipment

Property
related
to
the
telecommunications equipment
that retains its status as tangible
personal property/equipment that
is sold as part of the APMs.

CCTVs and video monitors which are
mounted to and permanently wired
into the building would be real
property fixtures.
Signage at the terminals that is
mounted and permanently wired to
the real property.

Electrification
Equipment

Related Control and power
distribution systems including
back-up generator, transformer
switchgear which are assembled
and installed in the bungalows
prior to delivery.
Blue light station equipment which
is installed at each entry on the
emergency walkway at the
equipment PDS.

Platform Screen
Doors

Platform screen door equipment
which includes door thresholds,
door operating equipment, door
controls, bi parting panels, call
push buttons, PLCs, photo eye
beam system and the barrier wall

Concrete pads which are affixed to
the realty, as well any conduits and
wiring that is located underground,
within the walls, ceiling or flooring
and runs to and from the
electrification equipment.

Technical Assistance Advisement
January 17, 2024
Page 2
system which includes emergency
doors.
Over travel buffers located at the
platform station will be replaced
by simply bolting to a bracket
which is bolted to a concrete pad.
January 17, 2024

Via Email:
Re:

Technical Assistance Advisement – TAA #:24A-001
. (“Taxpayer”)
Sales and Use Tax – Public Works Contracts
Section(s) 212.08(7), Florida Statutes (“F.S.”)
Rule(s) 12A-1.094, Florida Administrative Code(“F.A.C.”)
BP #:

Dear Taxpayer:
This is in response to your letter dated
, 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

1. What is the proper tax treatment of the Signaling Equipment, Telecommunications,
   Electrification, Platform Screen Doors and Barrier Walls with regard to an “automated people
   mover system” [APM].

Technical Assistance Advisement
January 17, 2024
Page 3
FACTS
Your request provides in part:
[Taxpayer] is currently looking to bid on a project with the
to include replacement of vehicles, train control, communications,
platform screen doors, running surface and other operating system elements as needed and
defined in the Design Criteria Package related to the A2 [Airside 2] and A4 [Airside 4] legs of
the airport system. The system carries guests from the main, land-side terminal of the
airport to one of the air-side terminals of the airport. The work will be performed at the
. The scope of work is
the following:
o
Automated People Movers (“APM”) vehicles
o Signaling equipment
o Telecommunications
o Running surface (i.e., including minor civil works) and guide beam repair
o Electrification (traction power and power rail)
o Platform screen doors
o Barrier walls

Referencing s. 212.08(6), F.S. and Rule 12A-1.094, F.A.C., you state:
Per … Rule 12A-1.094, [F.A.C.] a contract with the
at the
would qualify as a public works contract. [Taxpayer] believe[s]
the APM vehicles … would be exempt per Rule 12A-1.094(8), [F.A.C.] and [s. 212.08(7)(zz),
F.S.]. Similarly, the running surface is excluded from the definition of people movers and
would be subject to tax under the Public Works rules. Therefore, as noted above this request
is related to the tax treatment of the Signaling Equipment, Telecommunication,
Electrification, Platform Screen Doors and Barrier Walls.
Within the above statute and regulation[], it is noted the people mover system does not
include, “Embedded wiring, conduits, or cabling and the roads, rails, guidebeams, or other
permanent structures on which the vehicles run.” What is unclear is whether the intent of
including wiring, conduits or cabling after the word embedded is to imply that only such
materials that are embedded would not qualify. This is further emphasized with the
inclusion of the phrase “permanent structures” with the definition. If wiring, conduits and
cabling is simply attached and not embedded and can be removed without destruction to
the permanent structures, would it then be considered part of the equipment that makes
up the related control and power distribution systems? What would be the intent of
including the word Embedded if all wiring, conduits and cabling were to be excluded from
the definition of the system?

Technical Assistance Advisement
January 17, 2024
Page 4
According to the Meriam Webster dictionary, the word Embedded means, “enclosed closely
in or as if in a matrix: set firmly into a mass or material.” By this definition … anything not
set firmly into the APM permanent structures but rather attached, would not be considered
embedded.
Similarly, the FL regulation noted above goes on to define, “Related control and power
distribution systems” [to] include electrical or electronic control or signaling equipment…”
Wiring and cabling noted above could be considered part of the electrical system.

Signaling Equipment
Signaling equipment is designed to provide multiple communication functions along the rail
lines including the location of the APM, speed, direction and passenger information. It
includes equipment located along the rail lines, within the APMs, at the station terminals
and the central control room.

Your request includes a photo that depicts the conduits that will carry the cabling along the rail lines
and a piece of the signaling equipment located along the rail lines and provides information to the
station terminal signage, so that passengers are aware of the status of the APMs arrival at the station.
The project involves setting up conduits to connect various electrical and control systems
for the APM. Conduits are pipes that carry wires and cables. … The conduits will link the
Signaling Equipment Rooms, where the main power sources are, with the guideway, where
the APM vehicles run and with the station platform, which is where guests will board and
exit the APM vehicles. The conduits will also link the Power Distribution Rooms, where the
power is distributed to different parts of the system, with the guideway. Finally, the conduits
will link the Operations Control Center Equipment Room, where the APM system is
controlled and monitored, with the guideway.

The conduits will mainly connect [Taxpayer] equipment, which is the equipment made by
the company that is designed and built for the APM system, with installed cable trays,
conduits, junction boxes, etc. These are devices that hold and organize wires and cables. .1

In the airside and Main terminals, touch screen panels will be installed with International
1

Photos A and B provided with request.

Technical Assistance Advisement
January 17, 2024
Page 5
mode feature (location will be defined during project execution along with the customer)
that will be selectable and programmable by
… and are remotely responsible for close
car and station doors and enabling the train to depart the station. Currently, there is a key
lockout switch for the door sets on the platform….[2]
Code “Bravo” buttons will be installed in all stations to provide [an] “all trains stop[]” feature
and will be located in the TSA and
checkpoint desks (function currently exists).
Central Control room will receive all cabinets that interface signals and commands with
wayside equipment. Installation process for the Signaling Equipment room and the Central
Control Room should be similar to Photo D[3], which is a photo of the Signaling Equipment
Room. The cabinets come fully equipped with all electrical equipment … installed …. [It is]
uncertain at this time if the cabinets will be free-standing or bolted to the floor. Wiring
brought into the Signaling Equipment Room from various areas of the APM lines will … be
connected to the equipment in cabinets along with power. Wiring will run from one set of
cabinets to the other and will be pulled through the ceiling or floating floor.
Telecommunication Equipment
[Taxpayer] is providing an Operational Passenger Communications System (OPICS) which
provides two-way voice communication between APM cars and Central Control, public
address, passenger information messaging, and alarm reporting. OPICS includes equipment
onboard the APM cars, wayside public address cabinets, and platform LCD signs. The OPICS
systems may be controlled from workstations located at the Central Control room and the
backup Central Control room.
For Maintenance Radio communications, new handheld radios, batteries, and charge[r]s will
be provided for staff.
A Closed-Circuit Television (“CCTV”) system will be provided to monitor all activities
surrounding the APM areas including the APM cars. CCTV recording servers and
management servers will be in a cabinet assembly in the central control equipment room.
Cameras will be located along the guideway, platform areas, and maintenance areas.
Internal telephones and emergency intercoms will be provided throughout the facilities to
support APM operations. These telephones will connect to the existing Airport telephone
system.
A data transmission system will be provided for network communications. The network
equipment will be installed into equipment cabinets located at each station and Central
equipment room. For wireless communications, multiple radio systems will be installed
2
3

Photo C provided with request.
Photo D provided with request.

Technical Assistance Advisement
January 17, 2024
Page 6
along the guideway for train to wayside communications. Both the data transmission system
and radio network will use fiber optic cable installed along the guideway and through the
station equipment rooms to the Central Control room.
Electrification
[Taxpayer] will provide the substations for the two Legs. It includes but is not limited to the
following:
• Medium Voltage Vacuum Breaker Switchgear. One for 12.47 kV [kilovolt] supply and the
other for 34.5kv supply
• Step Down Transformers for Medium Voltage feeds to the 600 VAC [Volts Alternating
Current] Switchgear.
• 600 VAC Traction Power Equipment Emergency Diesel Generator with 5,000 Gallon
Diesel Fuel tank located above ground.
• Metering equipment
• Blue Light Stations
The … equipment will be installed for both guideways. As depicted in Photo E, it will be
located at ground level midway between the Landside Terminals and the Airside Terminals
on guideways A2 and A4. Each piece of equipment will come packaged inside metal
bungalows from the equipment supplier.
You included a photo that shows the traction power unit in gray and the transformers on the left in
the green unit.
These bungalows will be mounted on concrete pads sized to handle the square area and
weight of bungalows. This equipment is needed to supply traction power to the [APM]
vehicles being installed on the guideway. Required cabling will run underground between
this equipment and includes both power cabling and control cabling. Cables will also be
installed between the 600 VAC Switchgear and the guideways. It runs underground from
the Switchgear up through conduits connected to the support columns. This cabling
provides the traction power to the vehicle. The cables connect to the Power/Ground Rails
located on top of the center guidebeam (Photo F) on each lane of Airside guideway. The
vehicles use power collector shoes to collect this power from the power rails. The existing
Power Rail System will be replaced in kind. This includes, but is not limited to; support
b[r]ackets, power and ground rails, expansion joints, isolation joints, PVC covers, SST
hardware, etc. The rails are connected to these (glass reinforced fiberglass) brackets
approximately every 3 feet. The brackets are mounted to the top of the existing guidebeam
and are bolted to this beam using SST hardware.4
As part of this equipment, a diesel-powered emergency generator with an above ground
4

Photos E and F provided with request.

Technical Assistance Advisement
January 17, 2024
Page 7
5,000-gallon diesel fuel tank will be installed to replace the existing equipment. Similar to
the power equipment discussed above, the generator will sit in a bunk house that rests on
a concrete pad. This generator will be used to supply traction power to the system in the
unlikely event of a complete failure of the substation associated with a particular guideway.
The fuel tank is sized large enough to provide back up for the system for up to 48 hours.
Power/Ground Rail will be installed on all four guidebeams the length of each of the 4 lanes
of guideway.5
A new Blue Light Station … will be installed at each entry on to the emergency walkway and
at the Equipment PDS [Power Distribution Systems] bungalows. The Blue Light station[s] are
for use during emergency situations. They have a[n] LED Blue light for ease of finding, an
emergency intercom that directly dials up Central Control and an Emergency Power kill
button that shuts off power to the guideway.
“Code Bravo” Power kill pushbutton[s] will be installed near the TSA stations. These are
similar to the power kill buttons supplied at the blue lights with the same functionality as
described above. Thes[e] buttons are located near the TSA entry points and are used to kill
power to the guideway by the TSA if there is a security breach at the security checkpoints.
15 kVA [kilo volt-amperes] Un-interruptible Power Supplies (UPS) will also be supplied to
provide power to key elements of the system, including but not limited to, Automatic Train
Control (ATC) equipment, Station Platform Doors, Central Control equipment, Closed Circuit
TV (CCTV’s), PLCs for Power Distribution control and monitoring, etc. One 15 kVA UPS [unit]
will be installed at both Airside A2 and Airside A4 stations in the ATC equipment rooms next
to the Central Control Rooms. It will consist of 120 VAC supply units, rectifiers and batteries
to supply back power for up to 2 hours in the event of a power failure.
Platform Screen Doors and Barrier Walls
As part of the scope of equipment supply, [Taxpayer] will replace existing Platform Edge
Wall, Platform Barrier Walls and Station Platform automatic bi-parting platform doors. …
This equipment will be similar to the existing equipment …. This equipment is located at the
Station Platform level at the Landside Terminals and both platform levels at the Airside 2
and Airside 4 stations. … Door equipment will include Door Thresholds, Door Operating
equipment, Door Controls, Bi-Parting Panels, Call Pushbuttons, PLC’s, Bi-parting panels, and
photo-eye beam system. There are also emergency doors that are part of the barrier wall
system.[6]
The roof over the doors will be lifted while the barrier walls and subsequently the door
systems are replaced and … lowered down onto the new barrier walls. The neon lighting

5
6

Photo G provided with request.
Photo H provided with request.

Technical Assistance Advisement
January 17, 2024
Page 8
within the platform area will also be replaced.[7]
Eight (8) Over travel Buffers located at the platform stations at both ends of the track on
each individual guideway lane will be replaced. These buffers are used in the event the car
does not stop at the designated place in the terminal. These are bolted to a bracket, which
is bolted to a concrete pad. Only the buffer[s] will be replaced. 8
Maintenance equipment at the Maintenance and Service Facility (“M&SF”) area will include
a ground switch for each track for a total of four. Plus 3 stinger breakers and associated
stinger power chords per track to provide auxiliary power to the vehicles during light
maintenance activities on the cars. New Emergency walkway lighting will be furnished. It
will be integrated with the existing emergency walkway handrail and supplied on both
emergency walkways the length of the handrail system. Tactile equipment will also be
added if necessary. Along with Signage directing passengers to the closest emergency exit
in the event of an unlikely unassisted evacuation of the vehicles onto the emergency
walkway. The signage will be mounted to the railings and lighted internally with LED
lighting.[9]

With regard to the taxation of the various elements, Taxpayer provides the following determinations:
Signaling Equipment
Rail line signaling equipment should be exempt from sales tax as part of the rail control and
power distributions systems of a people mover system as noted in Rule 12A-1.094 [, F.A.C.].
While the rail line signaling equipment is fastened to the rail line or the structure that holds
the rail line, it can easily be removed for repair or replacement without causing any damage
to the rail line or any of the structure.
The conduits and associated wiring should be considered exempt from sales tax as neither
is embedded into any of the structure but rather connected to the structure through a series
of bolts and brackets. It can be removed without any damage to either. This area is
admittedly a gray area in the regulations. Normally, under a public works contract, this
would be considered taxable to the contractor. However, the regulations go on to
specifically mention people mover systems and their exemptions. The regulations also use
the word embedded as opposed to “fixed to” or “bolted to” as seen in other regulations to
describe the way in which the materials would be considered taxable. As noted above,
“Related control and power distribution systems” includes any electrical or electronic
control or signaling equipment, but does not include the “embedded wiring, conduits, or
7

Photo I provided with request.
Photo J provided with request.
9
Photo K provided with request.
8

Technical Assistance Advisement
January 17, 2024
Page 9
cabling used to transmit electrical or electronic signals among such control equipment,
power distribution equipment, signaling equipment, and wheeled vehicles.” [s.
212.08(7)(zz), F.S.]. Such a choice of wording would allow a greater exemption in respect to
people movers as opposed to other types of public works contracts. Central control room
and Signaling room equipment should be exempt from sales tax as all such equipment is
part of the related control and power distribution systems. The equipment comes fully
installed in cabinets that are shipped to the airport and placed in the central control room.
While the cabinets may be secured to the floor in some way to avoid the possibility of falling
in the event something disrupts them, they are not custom-made cabinets specifically
designed for this room but rather similar to a large PC that holds all the parts necessary for
it to function.
Any conduits or wiring running between the rail line, power generation equipment and the
control room that is installed in the ceiling, under the floor or within the walls or
underground would be subject to sales tax as it requires disturbing the ceiling, flooring, walls
or ground and could be considered to be embedded in such areas. Similarly, any wiring
between the equipment in the central control room or signaling room running in the ceiling,
floor or walls would be subject to tax for the same reason.
Telecommunication Equipment
Based upon the above description of the telecommunication equipment, most of the
property retains its status of tangible personal property. The equipment in the central
control is merely installed in cabinets and can easily be removed or replaced without
damage to the cabinets. CCTVs and video monitors also maintain their original status as
tangible personal property.
Signage at the terminals should be considered part of the signaling equipment but could
also be considered part of the overall people mover system. However, they are mounted to
the building and are permanently wired. So, it’s questionable whether this signage would
be excluded from the definition of the people mover system and be considered part of real
property subject to tax by the contractor as part of the public works contract.
Any wiring and cabling associated with the CCTVs, video monitors and signage should be
afforded the same treatment as any other wiring noted above for the signaling equipment.
Electrification
The back-up diesel generator and the transformer and switchgear are assembled and
installed in bungalows that are delivered on-site and placed on concrete pads. The concrete
pads are clearly subject to sales tax for the contractor, but the generator, transformers and
switchgear should qualify for the exemption as part of the Related control and power
distribution systems. The blue light station equipment should be exempt for the same
reason.

Technical Assistance Advisement
January 17, 2024
Page 10

Any conduits and wiring running to and from such equipment that is located underground,
within walls, ceiling or flooring should be subject to tax. The conduits running up the side of
the support columns and along the rail lines would appear to be exempt from tax similar to
conduits and wiring for signaling equipment as it is not embedded in any real property but
merely attached.
Platform Screen Doors and Barrier Walls
The doors located at both ends of the APM rail lines are not specifically mentioned in the
Florida statute that defines [] people mover systems. However, the definition of people
mover systems is relatively broad. The platform screen doors could be considered part of
the system, “exempt from the tax imposed by this chapter when the systems or parts go
into or become part of publicly owned facilities.” [Ibid.] However, if not considered part of
the system, it would seem appropriate to look to Rule 12A-1.094(2) [F.A.C.] to determine
taxability of the platform screen doors. As such, materials purchased would be subject to
sales tax to the contractor. This seems consistent with [Rule 12A-1.051(17), F.A.C.] which
defines a real property contractor as those who install doors or glass which installation is
considered permanent in nature. Similarly, lighting installed within the platform area along
the roof would be considered a fixture subject to sales tax if not considered part of the
people mover system. It should be noted that it would clearly be unsafe to operate the APM
system without such doors.
Platform barrier walls are made up of the edge and barrier walls. The screen doors and their
associated equipment are connected to these walls. Similar to above, it would seem
appropriate to look to Rule 12A-1.094(2) [,F.A.C.] to determine taxability of the platform
walls. As such, materials purchased would be subject to sales tax for the contractor unless
the Department were to take a broad interpretation of the people mover system since this
area would not exist but for the system.
Lighting and lighted signage replaced and/or installed along the emergency walkway would
be considered taxable fixtures and subject to sales tax by the contractor. This is
differentiated from other parts of the people mover system as it is more associated with the
airport terminals than the people mover system itself although needed for the APMs as an
emergency safety measure.
Buffers located at the end of each of the people mover lines should be considered part of
the entire people mover system and not subject to tax. While they are bolted to the base of
the rail lines, they can easily be removed with no damage to real property [upon] which they
are attached.

Technical Assistance Advisement
January 17, 2024
Page 11
You included the following attachments with your request:
•

•

•

•

Design Criteria Package, Volume 1A & 1B, Specifications. This document includes all
addendums up through 7/24/23; the last addendum that has been proposed. This
Request for Proposal includes a very detailed description of the project and
instructions on how to bid on such a project. The attached document is 311 pages.
Index of Design Criteria Package, Volume 1C, General Requirements. The total
document is 179 pages and generally describes how the contractor is expected to
work at the facility, with the
and responsibilities of the contractor in terms of
permits, regulations, etc. It doesn’t specifically relate to the scope of the project,
but if any or all of this document is desired, please advise and it will be provided.
Index of Design Criteria Package, Volume 1D, Special Provisions. The total document
is 377 pages and further discusses the expected execution of the project. It includes
a brief description of the project, similar to that mentioned in DCP 1A & 1B, a work
schedule, expected project management structure, expected quality control during
the project, payment schedule, verification and acceptance process, warranty
provisions and contract data requirements list. If any or all of this package is desired,
please advise and it will be provided.
Design Criteria Package, Volume 1E, Technical Provisions. The attached document is
285 pages. This document describes the technical requirements for the fully
automated driverless, fixed-guideway transportation systems to provide safe,
reliable transportation for the
passengers, visitors,
and staff. It provides a good description of the various parts of the project and
purposes of the systems.

LAW AND DISCUSSION

People-mover systems, and parts thereof, which are purchased or manufactured by contractors
employed either directly by or as agents for the United States Government, the state, a county, a
municipality, a political subdivision of the state, or the public operator of a public-use airport as
defined by s. 332.004(14), F.S. are exempt from the tax imposed by this chapter when the systems or
parts go into or become part of publicly owned facilities. In the case of contractors who manufacture
and install such systems and parts, this exemption extends to the purchase of component parts and
all other manufacturing and fabrication costs. The department may provide a form to be used by
contractors to provide to suppliers of people-mover systems or parts to certify the contractor’s
eligibility for the exemption provided under this paragraph. As used in this paragraph, “people-mover
systems” includes wheeled passenger vehicles and related control and power distribution systems
that are part of a transportation system for use by the general public, regardless of whether such
vehicles are operator-controlled or driverless, self-propelled or propelled by external power and
control systems, or conducted on roads, rails, guidebeams, or other permanent structures that are
an integral part of such transportation system. “Related control and power distribution systems”
includes any electrical or electronic control or signaling equipment, but does not include the

Technical Assistance Advisement
January 17, 2024
Page 12
embedded wiring, conduits, or cabling used to transmit electrical or electronic signals among such
control equipment, power distribution equipment, signaling equipment, and wheeled vehicles. See s.
212.08(7)(zz), F.S.
Rule 12A-1.094, F.A.C., provides in part:

(2) The purchase or manufacture of supplies or materials by a public works contractor,
when such supplies or materials are purchased for the purpose of going into or becoming
part of public works, whether the purchase or manufacture occurs inside or outside Florida,
is taxable to the public works contractor if the public works contractor also installs such
supplies or materials, since the public works contractor is the ultimate consumer of such
supplies or materials. Public works contractors that purchase or manufacture such supplies
and materials in Florida are liable for sales tax or use tax on such purchases and
manufacturing costs. A public works contractor that purchases supplies or materials that
may be sold as tangible personal property or may be incorporated into a public works
project may purchase such supplies or materials without tax by issuing a copy of the
contractor's Annual Resale Certificate and accrue and remit tax upon withdrawing such
supplies or materials from inventory to go into or become a part of public works. Public
works contractors that purchase or manufacture such materials outside the State of Florida
are liable for use tax, subject to credit for any sales or use tax lawfully imposed and paid in
the state of purchase or manufacture. (Emphasis added).

(5) Contractors, including subcontractors, that manufacture, fabricate, or furnish
tangible personal property that the contractor incorporates into public works are liable for
tax in the manner provided in subsection (10) of Rule 12A-1.051, F.A.C. The contractor and
subcontractors, not the governmental entity, are deemed to be the ultimate consumers of
the articles of tangible personal property they manufacture, fabricate, or furnish to perform
their contracts and may not accept a Certificate of Entitlement for these articles.

(8) Contractors that install people mover systems in public works projects are exempt
from sales and use tax on their purchases of such systems or components of such systems
and on any other costs incurred in the manufacture of such systems that would be taxable
under the provisions of subsection (10) of Rule 12A-1.051, F.A.C.

(b) A people mover system contractor should claim the exemption by providing a vendor
with a certificate of entitlement to the exemption. The vendor must maintain copies of

Technical Assistance Advisement
January 17, 2024
Page 13
certificates until tax imposed by Chapter 212, F.S., may no longer be determined and
assessed under Section 95.091, F.S. Possession by a vendor of such a certificate from the
purchaser relieves the vendor from the responsibility of collecting tax on the sale, and the
Department shall look solely to the purchaser for recovery of tax if it determines that the
purchaser was not entitled to the exemption. A suggested form of certificate follows:
SUGGESTED PURCHASER’S EXEMPTION CERTIFICATE
PEOPLE MOVER SYSTEMS AND PARTS
__ (Purchaser’s Name) certifies that the tangible personal property purchased on
or after _ (date) will be used as part of a people mover system that will become a part of a
publicly owned facility pursuant to a contract with the United States, a state, a county, a municipality,
a political subdivision of a state, or the public operator of a public-use airport as defined in Section
332.004, F.S. Such contract requires Purchaser to purchase the tangible personal property for use in
manufacturing, installing, manufacturing and installing, repairing, or maintaining, all or part of a
people mover system operated by the governmental entity as a public facility.
______ (Purchaser’s Name) further certifies: a) that all of the tangible personal property
purchased pursuant to this certificate is or will be part of a wheeled passenger vehicle or of related
control or power distribution systems that are part of a transportation system for use by the general
public; and b) none of the tangible personal property purchased pursuant to this certificate will be
used as embedded wiring, conduits, or cabling to transmit signals among the vehicles, control
equipment, power distribution equipment, and signaling equipment that make up the people mover
system.
The undersigned understands that if such tangible personal property does not qualify for this
exemption, the undersigned will be subject to sales and use tax, interest, and penalties. The
undersigned further understands that when any person fraudulently, for the purpose of evading tax,
issues to a vendor or to any agent of the state a certificate or statement in writing in which he or she
claims exemption from the sales tax, such person, in addition to being liable for payment of the tax
plus a mandatory penalty of 200% of the tax, shall be liable for fine and punishment provided by law
for conviction of a felony of the third degree, as provided in Section 775.082, 775.083 or 775.084, F.S.

Purchaser’s Name (Print or Type)

Signature and Title

Date

Florida Sales Tax Number

Federal Employer Identification
Number or Social Security Number

Telephone Number

Technical Assistance Advisement
January 17, 2024
Page 14
Section 212.06(14), F.S., provides:
(14) For the purpose of determining whether a person is improving real property, the term:
(a) “Real property” means the land and improvements thereto and fixtures and is
synonymous with the terms “realty” and “real estate.”
(b) “Fixtures” means items that are an accessory to a building, other structure, or
land and that do not lose their identity as accessories when installed but that do become
permanently attached to realty. However, the term does not include the following
items, whether or not such items are attached to real property in a permanent manner:
property of a type that is required to be registered, licensed, titled, or documented by
this state or by the United States Government, including, but not limited to, mobile
homes, except mobile homes assessed as real property, or industrial machinery or
equipment. For purposes of this paragraph, industrial machinery or equipment is not
limited to machinery and equipment used to manufacture, process, compound, or
produce tangible personal property. For an item to be considered a fixture, it is not
necessary that the owner of the item also own the real property to which it is attached.
(c) “Improvements to real property” includes the activities of building, erecting,
constructing, altering, improving, repairing, or maintaining real property.

Rule 12A-1.051, F.A.C., provides in part:

(10) … Contractors may maintain shops, plants, or similar facilities where they manufacture,
produce, compound, process, or fabricate items for their own use in performing contracts.
Contractors are required to pay use tax on the fabricated cost of those items. The elements
that must be included in the taxable cost of such items are set forth in Rule 12A-1.043, F.A.C.
In the case of real property contractors, the taxable cost of an item manufactured,
produced, compounded, processed, or fabricated for use in performing a contract does not
include labor that occurs at the job site where the item will be incorporated into a real
property improvement or transportation from the plant where an item was fabricated to
the job site. Examples of real property contractors who are subject to tax under this
subsection include cabinet contractors who build custom cabinets in their shops, roofing
contractors who operate tile plants, or heating/air conditioning/ventilation contractors who
maintain sheet metal shops for making ductwork. Real property contractors that are
required to remit use tax on fabricated items must register as dealers for purposes of
remitting such tax if they are not already registered as dual operators.

Technical Assistance Advisement
January 17, 2024
Page 15
Based on the information provided, Taxpayer plans to bid on a project with
to install a
replacement APM system at the
. The system described in Taxpayer’s
request and the included Design Criteria Package and Technical Provisions qualifies as a People Mover
System pursuant to s. 212.08(7)(zz), F.S.; therefore, when Taxpayer purchases or manufactures
supplies or materials that are installed or become part of a people-mover system, those supplies or
materials would be exempt from sales and use tax.
As provided in Rule 12A-1.094, F.A.C., the public works contractor is the ultimate consumer and
therefore liable for tax on supplies or materials purchased or manufactured by the public works
contractor and incorporated into the public works. In this case, when Taxpayer purchases and installs
any wiring, conduits, or cabling that is embedded into the roads, rails, guidebeams, or other
permanent structures, Taxpayer is acting as a public works contractor and therefore liable for tax on
supplies or materials purchased or manufactured and subsequently embedded into the public work.
The legislature’s intent of including wiring, conduits or cabling after the word embedded is to make
it clear to the contractor that any such wiring, conduits, and cabling that is incorporated into the
project is considered to be a public work, in which case the contractor is liable for tax on those
materials and supplies - as these materials would be considered part of the equipment that makes
up the related control and power distribution systems only when they do not become part of the
realty and are attached in such a manner that they can be removed without damaging to the realty.
To claim the exemption on its purchases of people mover systems or related components that are
subject to the exemption, Taxpayer must provide the vendor with a written certification such as the
suggested format found in Rule 12A-1.094(8)(b), F.A.C.
CONCLUSION
The Department’s determination regarding whether the various components of the people mover
system qualify for the exemption provided in the above-cited statutory and regulatory provisions is
as follows:
QUESTION

EQUIPMENT
Signaling Equipment

What is the proper tax treatment of the Signaling Equipment,
Telecommunications, Electrification, Platform Screen Doors and Barrier
Walls with regard to a “people mover system?”
EXEMPT
Rail line signaling equipment that is
fastened to the rail line or the
structure that holds the rail line
and can be easily removed for
repair or replacement without
damaging the structure.

TAXABLE
Conduits or wiring running between
the rail line, power generation
equipment and control room or
between the equipment in the
central control room or signaling
room that is embedded in the ceiling,
under floor, or underground.

Technical Assistance Advisement
January 17, 2024
Page 16
Telecommunications
Equipment

Property
related
to
the
telecommunications equipment
that retains its status as tangible
personal property/equipment that
is sold as part of the APMs.

CCTVs and video monitors which are
mounted to and permanently wired
into the building would be real
property fixtures.
Signage at the terminals that is
mounted and permanently wired to
the real property.

Electrification
Equipment

Related Control and power
distribution systems including
back-up generator, transformer
switchgear which are assembled
and installed in the bungalows
prior to delivery.

Concrete pads which are affixed to
the realty, as well any conduits and
wiring that is located underground,
within the walls, ceiling or flooring
and runs to and from the
electrification equipment.

Blue light station equipment which
is installed at each entry on the
emergency walkway at the
equipment PDS.
Platform Screen
Doors

Platform screen door equipment
which includes door thresholds,
door operating equipment, door
controls, bi parting panels, call
push buttons, PLCs, photo eye
beam system and the barrier wall
system which includes emergency
doors.
Over travel buffers located at the
platform station will be replaced
by simply bolting to a bracket
which is bolted to a concrete pad.

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.

Technical Assistance Advisement
January 17, 2024
Page 17
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)717-6701.
Sincerely,

Shundra McClean
Shundra McClean
Tax Law Specialist
Technical Assistance & Dispute Resolution
Record ID: 7001057188

Technical Assistance Advisement
January 17, 2024
Page 18
TADR Satisfaction Survey
The Florida Department of Revenue invites you to complete the online TADR Satisfaction Survey to
help us identify ways to improve our service to taxpayers. The survey is an opportunity to provide
feedback on your recent experience with the Department’s office of Technical Assistance and Dispute
Resolution (TADR). To access the survey, place the following address in your browser’s access bar:
https://tadr.questionpro.com
When you open the survey, you’ll be asked to enter the following information. This information will
enable you to complete and submit the survey.
Notification number:

7001057188

Respondent code:

44

Tax type:

Sales and Use Tax

Correspondence type:

Technical Assistance

If you need technical assistance accessing the survey, please email Douglas Charity at
[email protected].
Thank you.