Which armored transportation, ATM repair, cash-vault, and coin-wrapping charges were subject to Florida sales tax?

Plain-English summary

Florida treated the entire charge for traditional armored ground transportation as taxable protection service.

ATM maintenance depended on the machine and the repair. For an ATM that was a real-property fixture, separately described repair parts were taxable but installation labor was not. For an ATM that remained tangible personal property, a repair using no parts was nontaxable if the dealer's records proved that fact; supplying any tangible personal property made the entire labor-and-parts charge taxable.

Cash-vault, deposit-processing, change-order, and coin-wrapping services followed a bundling rule. If armored transportation or guard service was included without a separately stated charge, the entire service charge was taxable. If the protection or transportation fee was separately stated, that fee was taxable but the separate vault or coin-wrapping charge was not.

Food-stamp processing sold directly to a governmental entity was exempt when the government paid directly. The ruling said payment by a contractor or most government employees would not qualify for that exemption.

What this means for you

Security and cash-logistics companies

Separate invoicing mattered. A distinct transportation or guard fee limited tax to that protection-service charge for the vault and coin-wrapping services described in the TAA.

ATM service providers

Determine whether each ATM is a fixture or tangible personal property, and keep records showing whether repair parts were supplied.

Common questions

Was armored ground transportation taxable? Yes. The entire charge was taxable.

Were all ATM repair charges taxable? No. The answer depended on whether the ATM was real or tangible personal property and whether the repair included parts.

What happened when vault or coin-wrapping service bundled armored transport? The entire charge was taxable if the transportation or guard fee was not separately stated.

Was government food-stamp processing exempt? Yes, when sold to and paid directly by the governmental entity under the facts described.

Citations and references

• Fla. Stat. §§ 212.05(1)(j), 212.06(14), and 212.08(6)
• Fla. Admin. Code r. 12A-1.0092
• Fla. Admin. Code r. 12A-1.006(4)
• Fla. Admin. Code r. 12A-1.051(2)(d)
• Fla. Admin. Code r. 12A-1.001(9) and 12A-1.038(8)
• Fla. Stat. § 213.22

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 99A-008

Original ruling text

SUMMARY

Taxpayer is an armored transport company that provides
ground transport services, automated teller machine ("ATM")
services, cash vault and related services, and coin
wrapping services. Each service is contracted for
separately and itemized as a separate fee. Armored ground
transportation is subject to sales tax under Section
212.05(1)(j)1.a., F.S., and Rule 12A-1.0092(2)(a), F.A.C.

The taxation of ATM services depends upon whether the ATM
is real property or tangible personal property and whether
the transaction involves the provision of tangible personal
property to repair the ATM. Taxpayer has stated that the
customer is separately invoiced for any parts used in
making repairs. When the ATM is real property and any
parts used are specifically described and itemized on the
invoice, the charge for the parts is subject to taxation,
but no tax is due on the charge for installation of the
parts. When the ATM is tangible personal property, if no
tangible personal property is used in making the repair to
the ATM and that fact can be established by evidence in the
dealer's records, no sales tax is due on the repair
service. However, if any tangible personal property is
provided by the Taxpayer in repairing the ATM, then the
entire charge for the service (labor and parts) is subject
to tax.

The taxation of cash vault and related services and the
coin wrapping service depends upon whether the provision of
the service involves armored car transportation of the
items or the provision of guard services for the items and
whether any such charge is separately stated. If the
service involves armored ground transportation and the
charge for such transportation is separately stated, then
the charge for the service is not subject to tax, but the
charge for the transportation is subject to tax. The food
stamp processing service is not subject to tax when
provided to governmental entities, which are exempt
pursuant to Section 212.08(6), F.S.

Feb 11, 1999

Re: Technical Assistance Advisement 99A-008
XXX [hereinafter "Taxpayer"]
Sales and Use Tax - Armored Car Services
Sections: 212.02(16), 212.05(1)(j), 212.06(14), and
212.08(6), F.S.
Rules: 12A-1.0092, 12A-1.006, 12A-1.051, 12A-1.001(9), and
12A-1.038(8), F.A.C.

Dear :

This is a response to your letter of November 16, 1998,
requesting a Technical Assistance Advisement (TAA) regarding the
above-referenced matter. This response to your request
constitutes a TAA under Chapter 12-11, Florida Administrative
Code (F.A.C.), and is issued to you under the authority of s.
213.22, Florida Statutes (F.S.).

FACTS

In your letter you state:

[Taxpayer] is an armored transport company that provides
armored ground transport services, automated teller machine
("ATM") services, cash vault and related services, and coin
wrapping services to financial institutions and other
commercial customers. Taxpayer is strictly a service
company. The following describes each of the services:

1) The traditional armored ground transportation represents
the core service provided by Taxpayer. Armored vehicles
transport currency and other valuables between commercial
enterprises and banks, between banks, and from the Federal
Reserve Banks to commercial banks.

2) ATM services represent the most dynamic sector of our
business. ATM services consist of cash replenishment,

deposit pick-up, and first-line and second-line maintenance
services.

Cash replenishment and deposit pick-up at ATM locations is
substantially similar to normal ground transportation
services with respect to the transport of cash. However,
the servicing of ATM locations involves a greater degree of
mechanical proficiency in that guards are required to
disarm and reset alarms, change bill cassettes
(replenishing of cash in the ATMs) and perform various
other administrative and mechanical tasks. First-line
maintenance services involve correction of simple nontechnical problems such as dislodging jammed bills and
cards and refilling receipt paper and are frequently
provided by armored transport carriers. Second-line
maintenance services consist of more complex technical ATM
repairs and often require specialized training, diagnostic
equipment and an inventory of parts.

3) Cash vault and related service cover a wide array of
activities from passive, secured storage of valuables such
as currency, securities and computer chips to active
services such as deposit processing and consolidation,
change order preparation and food stamp processing.

4) Coin wrapping is essentially part of the cash vault
service. Taxpayer picks-up loose coins from its customers
or coin machines and transports it back to [Taxpayer's]
place of business where the loose coins are wrapped in each
respective roll (quarters, dimes, nickels and pennies).
The wrapped coins are then given back to the customer or
deposited. Often this service is incidental to the armored
car service that is already being provided to the customer.
(Emphasis in Original.)

Taxpayer has provided some copies of its invoices to demonstrate
its billing practice. Taxpayer also provided the following
documents with the TAA request:

1) AUTOMATED TELLER MACHINE ("ATM") SERVICE AGREEMENT,
including Exhibit A ATM LOCATIONS & RATE LISTING and

Exhibit B ATM SERVICE(S) DESCRIPTION (hereinafter referred
to as "Contract A");

2) SERVICE AGREEMENT, including Exhibit A (hereinafter
referred to as "Contract B"); and

3) CASH VAULT SERVICES AGREEMENT (hereinafter referred to
as "Contract C").

The following information was provided during a telephone
conference with you on January 6, 1999:

Each service is contracted for separately. Each service is
itemized as a separate fee. Each customer receives one invoice
that itemizes each service as a separate fee, with any
applicable taxes, and contains the total amount due by the
customer as a grand total.

Regarding the ATM services, the charges for first-line and
second-line maintenance services are separately stated on the
invoice. All work performed, on the ATM machines, is performed
by employees of your company. The supplies used in the
provision of first-line maintenance services may be provided by
the machine owner or by your company. Supplies that are
provided by your company are listed on the invoice and charged
to the customer. No distinction is made on the invoice as to
which first-line service is provided (i.e., whether a debit card
was jammed or the receipts needed to be refilled). Your company
provides parts and supplies used in the provision of second-line
maintenance services. The customer is invoiced for the parts
used to provide the second-line maintenance services.

Cash vault and related services generally involve the
transportation of valuables to the vault, a bank, or the
customer. Specifically, the cash vault service involves storage
of valuables in your company's vault. Deposit processing
includes picking up the money from the customer, counting the
money, preparing the deposit, depositing the money in the
customer's bank, and returning a receipt to the customer.
Deposit consolidation involves transporting all of the
customer's money, from various locations, to the customer's

bank. Deposit processing and deposit consolidation may occur
simultaneously or separately. Change order preparation allows
the customer to call in an order for different quantities of
change, have the order filled by your company, and have the
order dropped off to the location specified by the customer.
Food stamp processing allows the government to store food stamps
with your company, until the appropriate time for disbursement,
and then have your company disburse the food stamps to the
appropriate recipients.

Coin wrapping is primarily a service to wrap the coinage. The
guards who perform the armored ground transportation service
transport the coinage. An example of this service would be when
the owner of a machine, which allows a person to exchange a
large number of coins for dollar bills, contracts with your
company to empty, sort, wrap, and deposit the coinage from the
machine.

REQUESTED ADVISEMENT

Taxpayer has requested a Technical Assistance Advisement
regarding the taxability of the above-described services.

APPLICABLE LAW

The following statutory and administrative authorities are
relevant to the issues under advisement:

Section 212.02(16), F.S. (Supp. 1998), provides:

(16) "Sales price" means the total amount paid for tangible
personal property, including any services that are a part
of the sale, valued in money, whether paid in money or
otherwise, and includes any amount for which credit is
given to the purchaser by the seller, without any deduction
therefrom on account of the cost of the property sold, the
cost of materials used, labor or service cost, interest
charged, losses, or any other expense whatsoever. "Sales
price" also includes the consideration for a transaction
which requires both labor and material to alter, remodel,
maintain, adjust, or repair tangible personal property....

(Emphasis Supplied.)

Section 212.05, F.S., provides, in pertinent part:

It is hereby declared to be the legislative intent that
every person is exercising a taxable privilege... who rents
or furnishes any of the things or services taxable under
this chapter....

(1) For the exercise of such privilege, a tax is levied on
each taxable transaction or incident, which tax is due and
payable as follows:

(j)1. At the rate of 6 percent on charges for all:

a. Detective, burglar protection, and other protection
services (SIC Industry Numbers 7381 and 7382)....

2. As used in this paragraph, "SIC" means those
   classifications contained in the Standard Industrial
   Classification Manual, 1987, as published by the Office of
   Management and Budget, Executive Office of the President.

3. Charges for detective, burglar protection, and other
   protection security services performed in this state but
   used outside this state are exempt from taxation. Charges
   for detective, burglar protection, and other protection
   security services performed outside this state and used in
   this state are subject to tax.

4. If a transaction involves both the sale or use of a
   service taxable under this paragraph and the sale or use of
   a service or any other item not taxable under this chapter,
   the consideration paid must be separately identified and
   stated with respect to the taxable and exempt portions of
   the transaction or the entire transaction shall be presumed
   taxable. The burden shall be on the seller of the service
   or the purchaser of the service, whichever applicable, to
   overcome this presumption by providing documentary evidence
   as to which portion of the transaction is exempt from tax.
   The department is authorized to adjust the amount of

consideration identified as the taxable and exempt portions
of the transaction; however, a determination that the
taxable and exempt portions are inaccurately stated and
that the adjustment is applicable must be supported by
substantial competent evidence.

5. Each seller of services subject to sales tax pursuant to
   this paragraph shall maintain a monthly log showing each
   transaction for which sales tax was not collected because
   the services meet the requirements of subparagraph 3. for
   out-of-state use. The log must identify the purchaser's
   name, location and mailing address, and federal employer
   identification number, if a business, or the social
   security number, if an individual, the service sold, the
   price of the service, the date of sale, the reason for the
   exemption, and the sales invoice number. The monthly log
   shall be maintained pursuant to the same requirements and
   subject to the same penalties imposed for the keeping of
   similar records pursuant to this chapter. (Emphasis
   Supplied.)

Section 212.06(14), F.S. (Supp. 1998), defining "real property"
and "fixtures," 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:
trade fixtures; 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 machinery or equipment. 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....

Rule 12A-1.0092, F.A.C., provides, in pertinent part:

(1) Persons who provide any of the services enumerated in
Industry Numbers 7381 and 7382 of the Standard Industrial
Classification Manual, 1987, are dealers in a taxable
service and are required to charge sales tax on the total
taxable sales price of the service.

(2)(a) Detective, burglar protection, and other protection
services are those services which are rendered to minimize
or prevent loss or damage to life, limb, or property and
are of a kind typically performed by security or alarm
system companies, or are those investigative services which
are rendered to obtain evidence or other information for
legal, business, employment, or personal purposes of a kind
typically performed by detective or investigative agencies.
These taxable services include:

1. Armored car service;

6. Guard service;

10. Protective service, guard; and

11. Security guard service.

(b) The services in paragraph (a) above are taxable for all
persons, businesses, residences, or nonresidential
properties.

(f) The services which are subject to tax in this rule are
taxable when performed within or outside this state and
used within this state by the purchaser or when the
purchaser's primary benefit of the services is within this
state. The services which are subject to tax in this rule
are exempt when performed within this state but used

outside this state by the purchaser or when the purchaser's
primary benefit of the services is outside this state. The
seller must maintain a log pursuant to Rule
12A-1.0161(2)(d), F.A.C., documenting any transaction where
services are performed in this state but used by a
purchaser outside this state.

1. Example: Company E is located in Georgia and Florida.
   Company E suspects that its Georgia warehouse manager is
   stealing merchandise from the company and hires a Florida
   detective agency to investigate. Irrespective of where the
   investigative services are performed, since the services do
   not directly relate to real or tangible personal property
   located in Florida, nor do they directly relate to the
   Florida activities of Company E, it is presumed that the
   primary benefit or use of the detective services is enjoyed
   in Georgia. Therefore, the investigative services are not
   taxable.

3. Example: A California art gallery has loaned an
   important work of art to a Florida art gallery. Security
   services must be hired to protect this work of art. If the
   California art gallery is invoiced for the security
   services, it will be presumed that the primary benefit of
   the services is to protect the California art gallery's
   tangible personal property. Since the services are used by
   a purchaser who is located outside this state, the security
   services will not be taxable. If the Florida art gallery is
   invoiced for the security services, it will be presumed
   that the primary benefit of the services is to protect the
   activities of the Florida art gallery, and the charges will
   be subject to tax.

(3)(a) If a transaction involves both the sale or use of a
service which is taxable and the sale or use of a service
which is not taxable, the charges for the taxable portion
of the transaction must be separately stated from the
charges for the non-taxable portion or the entire
transaction will be presumed taxable.

1. Example: An armored car company makes daily pick-ups of

currency and coins from a discount store for transport to a
local bank. For an increased single monthly fee, the
armored car company will count and wrap the currency and
coins prior to transporting the cash to the bank. Since the
currency and coin wrapping service is included in the
taxable armored car service, the entire charge made by the
armored car company to the discount store is subject to
tax.

(6) Detective, burglar protection, and other protection
service providers are considered the ultimate users or
consumers of the tangible personal property sold to them
and used in connection with their service and are required
to pay the tax imposed upon such sales of tangible personal
property to their dealers. (Emphasis Supplied.)

Rule 12A-1.006, F.A.C., provides, in pertinent part:

(1)(a) Where parts are furnished by the repairer, the
entire charge the repairer makes to a customer for
adjusting, applying, installing, maintaining, remodeling,
or repairing tangible personal property is taxable,....

(4) ... [C]harges for repairs of tangible personal property
which require labor or service only are taxable unless the
repairer (dealer) can establish by evidence in the dealer's
records that the dealer furnished no tangible personal
property which was incorporated into or attached to the
repaired item. It is immaterial that the cost of the
material furnished is insignificant when compared to the
cost of the labor involved....

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

(1) This rule shall govern the taxability of purchases or
use of tangible personal property by contractors who
purchase or manufacture materials and supplies for use in
the performance of non public works contracts.... The
method by which contractors or subcontractors arrive at the
total contract price charged for repair, alteration,
improvement and construction of real property or for a

combination of work on both real and personal property must
be determined for the purpose of ascertaining whether the
receipts from sales made to or by them are taxable.

(2) Such contractors may include, among others, building,
electrical, plumbing, heating, painting, decorating,
ventilating, paper hanging, sheet metal, bridge, road,
landscape or roofing contractors and they may use one of
the following methods in arriving at the total contract
price:

(d) Contracts in which the contractor or subcontractor
repairs, alters, improves or constructs real property and
wherein he agrees to sell specifically described and
itemized materials and supplies at an agreed price or at
the regular retail price and to complete the work either
for an additional agreed price or on the basis of time
consumed.

(f) In cases falling in class (d) above, the contractor or
subcontractor is deemed to be selling tangible personal
property at an agreed retail price and shall collect tax
from his purchaser based upon the amount of the receipts
from such sales, excluding installation charges if
separately stated. A dealer selling to such contractor or
subcontractor must obtain a resale certificate in lieu of
tax.

Section 212.08(6), F.S. (Supp. 1998), provides:

(6) EXEMPTIONS; POLITICAL SUBDIVISIONS.-There are also
exempt from the tax imposed by this chapter sales made to
the United States Government, a state, or any county,
municipality, or political subdivision of a state when
payment is made directly to the dealer by the governmental
entity. This exemption shall not inure to any transaction
otherwise taxable under this chapter when payment is made
by a government employee by any means, including, but not
limited to, cash, check, or credit card when that employee
is subsequently reimbursed by the governmental entity. This
exemption does not include sales of tangible personal

property made to contractors employed either directly or as
agents of any such government or political subdivision
thereof when such tangible personal property goes into or
becomes a part of public works owned by such government or
political subdivision....

Rule 12A-1.001(9), F.A.C., provides in pertinent part:

(9) GOVERNMENTAL UNITS.
(a) All sales made directly to the United States
Government, a state, or any county, municipality, or
political subdivision of a state are exempt,.... Except for
purchases by employees of the United States Government,
this exemption is not available for any taxable transaction
when payment is made by a governmental employee by use of
personal funds, including cash, checks, or credit cards,
when the employee is subsequently reimbursed by the
governmental entity. Payment must be made directly to the
dealer by the governmental entity of a state, or any
county, municipality, or political subdivision of a state.
Purchases made by Federal employees on behalf of their
agency are exempt even though the employee is subsequently
reimbursed by the agency. Such governmental entities
desiring to qualify for the exemption must obtain from the
Department of Revenue a consumer's certificate of exemption
(see Rules 12A-1.038 and 12A-1.039, F.A.C.). The exemption
provided in this subsection shall be strictly defined,
limited, and applied to each entity as provided herein.

(d) Vendors are required to document exempt sales. Federal
employees, other government employees, and employees of
nonprofit organizations described in subsection (3) of this
rule shall provide the vendor with proper documentation of
the exempt nature of the sale....

Rule 12A-1.038(8), F.A.C., provides:

(8) Purchases by the United States government are exempt
whether or not a Consumer's Certificate of Exemption (Form
DR-14) is presented to the dealer. See Rule 12A-1.0161(4),
F.A.C.

DETERMINATION

A taxable service is subject to Florida sales tax when performed
within or outside this state and used within this state by the
purchaser or when the purchaser's primary benefit of the service
is within this state. If the taxable service is performed
within this state but used outside this state by the purchaser
or when the purchaser's primary benefit of the service is
located outside this state, then the service is considered to be
exempt. See Section 212.05(1)(j)3., F.S., and Rule 12A1.0092(2)(f), F.A.C. For examples of taxable and not taxable
transactions, please see Rule 12A-1.0092(2)(f)1. and 3., F.A.C.,
reprinted above.

Further, please be aware that when any of the discussed charges
are subject to Florida sales tax, then that taxable charge is
also subject to any applicable county surtaxes. County surtaxes
are covered inter alia by Rules 12A-15.002, 12A-15.003, and 12A15.004, F.A.C., which are enclosed.

The taxability of each specific service is addressed separately
below.

A. Armored Ground Transportation

Section 212.05(1)(j)1.a., F.S., imposes a sales tax on
detective, burglar protection, and other protection services.
It specifically states that the tax applies to SIC industry
numbers 7381 (Detective, Guard, and Armored Car Services) and
7382 (Security System Services). The Department has promulgated
Rule 12A-1.0092, F.A.C., to implement this section. Rule 12A1.0092(2)(a), F.A.C., specifically provides that armored car
services; protective services, guard; and security guard
services are subject to Florida's sales and use tax.

Based upon the above facts, Contract B, and the above-referenced
law, the entire charge for armored ground transportation made by
the Taxpayer to each customer is subject to Florida sales tax.

B. ATM Services

1. Discussion of Taxability of Charges

Based upon Contract A and the above facts, it is evident that
all services are to be provided by your company. The ATMs that
are to be serviced may be deemed real property or tangible
personal property. The determination whether the ATMs are real
property or tangible personal property must be made based upon
the specific facts of each individual location, and some
guidance is provided, below, in a separate discussion. Further,
this discussion is predicated on the fact that you state that
the customer is separately invoiced for the parts used in making
repairs, which has been supported by the copies of your invoices
that were supplied.

When an ATM is permanently affixed to real property, the ATM is
deemed to be a fixture and part of the real property. In that
case, the repair of the ATM would be repair to real property.
If all of the repair parts for the repair of real property are
specifically described and itemized on the customer's invoice,
the charge for those parts would be subject to tax, but no tax
is due on the installation of the parts. See Rule 12A1.051(2)(d), F.A.C. When the ATM is not permanently affixed to
real property, the ATM is deemed to be tangible personal
property. Under Rule 12A-1.006(4), F.A.C., when no tangible
personal property is provided by a person making a repair to
tangible personal property and when that fact can be established
by evidence in the dealer's records, no sales tax is due on the
repair service. However, if any tangible personal property is
provided by your company in repairing the ATM, then the entire
charge for the service (labor and parts) is subject to tax.

2. Determination of Real or Tangible Personal Property

Section 212.06, F.S., was amended during the 1998 legislative
session by section 5, Chapter 98-141, L.O.F., to provide
paragraphs (14)(a) and (b), defining "real property" and
"fixtures," respectively. "Fixtures" is defined to specifically
include items that "become permanently attached to realty."

Further, Florida courts have delineated four factors to assist

in determining whether an item of tangible personal property is
a fixture as an improvement to real property. See Commercial
Finance Co. v. Brooksville Hotel Co., 123 So. 814 (Fla. 1929);
Meena v. Drousiotis, 200 So. 362 (Fla. 1941); Dependable Air
Conditioning and Appliances, Inc. v. Office of Treasurer and
Ins. Comm'r, 400 So.2d 117 (Fla. 4th DCA 1981).

The first factor is actual annexation to the realty or something
appurtenant thereto. The second factor is the appropriateness
to the use or purpose of that part of the realty with which it
is connected. The third factor is the intention of the party
making the annexation that it shall be a permanent accession to
the realty. The fourth and final factor is whether the item can
be removed without material or substantial injury to the realty.

C. Cash Vault and Related Services

1. Cash vault, deposit processing, deposit consolidation,
   and change order preparation services.

The cash vault service, deposit processing service, deposit
consolidation service, and the change order preparation service
all use the same analysis to determine whether any tax should be
charged for these services and will be addressed together. If
the provision of this service involves armored car
transportation of the items or the provision of guard services
for the items and the charge for the armored transportation or
guard service is not separately stated as a separate fee, then
the charge for this service is subject to Florida sales tax and
any applicable county surtax. However, if the provision of this
service does include the provision of guard services or
transportation in the armored car and is for a separately stated
fee, then the separately stated fee for the transportation or
guard service is subject to Florida sales tax and any applicable
surtaxes, but the separate charge for the provision of this
service is not subject to Florida sales tax.

2. Food Stamp Processing Service.

The purchase of the food stamp processing service must go
through the same analysis as the other services. If guard

services or transportation in the armored car is provided and
not separately stated, then the whole charge for the service is
taxable. However, if the charge for the guard service or the
armored car transportation is separately stated, then only that
portion of the charge that relates to such guard or
transportation service is taxable.

If this service were sold to governmental entities, then it
would not be subject to sales tax; this is because governmental
entities are exempt pursuant to Section 212.08(6), F.S., which
is implemented in Rules 12A-1.001(9) and 12A-1.038(8), F.A.C.
However, this exemption only applies to payments made directly
by the governmental entity. If a contractor or governmental
employee pays for the service on behalf of the governmental
entity, then the service would be taxable because the exemption
would not apply, unless the employee is a federal employee. The
rationale for this position is found in Chestnut Fleet Rentals
v. Department of Revenue, 559 So. 2d 264 (1st DCA 1990), in
which the court held that the Supremacy Clause of the United
States Constitution, Article VI, Clause 2, precludes the state
from levying state sales tax directly upon federal employees for
payments that will be reimbursed by the Federal Government.
Rule 12A-1.001(9)(d)1., F.A.C., contains a suggested format of
the document to be provided by federal employees to you, the
vendor. For your convenience, I have enclosed that portion of
the Rule.

D. Coin Wrapping

When the provision of services includes guard services or
transportation in an armored car and the charge does not
separately state the transportation or guard fee, the entire
charge for the service is taxable. However, if the guard
service or armored car transportation charge is separately
stated, then only the charge for the transportation or guard
service is subject to taxation.

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 requests
for this advice, as specified in Section 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 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 response.

Sincerely,

Jennifer J. Silvey
Attorney
Technical Assistance & Dispute Resolution

Enclosures
Control #: 35897