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Motor Vehicle Warranty Fee ("Lemon Law Fee")

Motor vehicle dealers and other persons in the business of selling or leasing motor vehicles must collect a $2.00 motor vehicle warranty fee, also called the ‘lemon law’ fee, from the buyer or lessee. This fee helps pay for arbitration on behalf of the buyer against the manufacturer when a vehicle is deemed a "lemon."

The fee must be collected at the time of sale or lease of:

  • A new motor vehicle (including recreational vehicles and demonstrator vehicles) for which a manufacturers warranty is issued.
  • At the time of sale of a new motor vehicle for which, as a condition of the sale, the dealer is not authorized to issue a manufacturer's warranty.
  • At the time of lease of a new motor vehicle if the lessee is responsible for making repairs to the vehicle.

Vehicles that are not subject to the fee are:

  • Motorcycles and mopeds.
  • Off-road vehicles.
  • Trucks over 10,000 pounds gross vehicle weight.
  • Sales or leases to city, county, or state agencies.

Payment of the fee depends on where the vehicle will be registered and titled.

  • If the vehicle will be registered and titled in Florida, the selling dealer must pay the fee to the county tax collector or private tag agency when the dealer applies for title.
  • If the vehicle will be removed from Florida and will not be titled or registered in Florida, the dealer must send the fee directly to the Department of Revenue with a Motor Vehicle Warranty Fee Remittance Report (Form DR-35).

The fees and returns are due when monthly sales and use tax returns are due. Returns and payments are due on the 1st and late after the 20th day of the month following the collection period.