Skip menu navigation
Home » Taxes » Tax Information Publications

TIP # 00A01-18
DATE ISSUED: 07/11/00

Sales and Use Tax Exemption Enacted for Contractors Furnishing Public People Mover Systems

Effective July 1, 2000, "people mover systems" and parts of such systems purchased or manufactured by contractors to become part of publicly owned facilities (including public-use airports) under contracts with governmental entities (including public operators of public-use airports) are exempt from sales and use taxes. The exemption extends to otherwise taxable fabrication costs of contractors who both manufacture and install people mover systems.

People mover systems include wheeled passenger vehicles and related electric or electronic control or signaling equipment that are part of a transportation system for use by the general public. The vehicles may be operator controlled, driverless, self-propelled, or propelled by external power systems and may run on roads, rails, guidebeams, or other permanent structures. The exemption does not apply to the permanent structures on which the systems run or to embedded wiring, conduits, or cabling used to transmit signals.

Contractors making purchases of people mover systems or components thereof that are subject to this exemption should claim the exemption by providing the seller with a written certification of the contractor's eligibility. Possession by a seller of a written certification by the purchaser, certifying the purchaser's entitlement to the statutory exemption, relieves the seller from the responsibility of collecting the tax. The Department shall look solely to the purchaser for recovery of such tax if it determines that the purchaser was not entitled to the exemption. A suggested form for the written certification is attached.

Contractors who maintain an inventory of parts that may be incorporated into tangible personal property for sale, may be used in performing real property contracts, and may be incorporated into exempt people mover systems, may purchase such inventory parts using a resale certificate in lieu of providing a certification of eligibility under the people mover system exemption.


This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance.

For forms and other information, visit our site at Or call Taxpayer Services, Monday through Friday, 8:00 a.m., to 7:00 p.m., ET, at 800-352-3671 (for Florida residents only), or 850-488-6800

Hearing- or speech-impaired persons should call our TDD at 1-800-367-8331 or 850-922-1115.

For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, 1379 Blountstown Highway, Tallahassee, FL 32304-2716.

To receive a fax copy of a form, call 850-922-3676 from your fax machine telephone.

Ch. 2000-355, L.O.F.
Section 212.08(7), F.S.