TIP # 02A01-03
DATE ISSUED: May 3, 2002
Clarification of the Partial Sales Tax Exemption
for Power-Driven Farm Equipment
Effective October 1, 1998, the partial sales tax exemption for farm equipment was expanded to include power-driven farm equipment. Power-driven farm equipment means ONLY moving or stationary equipment that is dependent upon an external power source to perform its function. Examples of power-driven farm equipment include pumps, conveyors, augers, and livestock or poultry feeding systems.
Generators, motors, and similar types of equipment DO NOT qualify for the partial exemption provided for power-driven farm equipment even though they are used to supply power to qualifying power-driven farm equipment.
For example, a "power-unit" used to supply power to an irrigation pump used by a farmer DOES NOT QUALIFY AND IS NOT included in the definition of power-driven farm equipment and is taxable at the rate of 6%, rather than 2.5%, plus any applicable discretionary sales surtax. Dealers are required to tax the sale of these type power-units at the full state rate of 6%, plus any applicable discretionary sales surtax, even though the purchaser requests that tax be paid at the reduced rate and they try to extend a partial exemption affidavit.
However, generators purchased or leased for exclusive use on a poultry farm are exempt from sales tax since these generators are specifically exempt by statutes, which is provided in Section 212.08(5)(a), Florida Statutes, and Rule 12A-1.087(8)(b), Florida Administrative Code. The exemption is only allowed if the purchaser or lessee issues to the seller a signed certificate stating the generator is purchased or leased for exclusive use on a poultry farm.
References: Sections 212.08(3) and 212.08(5)(a), Florida Statutes; Rule 12A-1.087(8)(b), Florida Administrative Code
FOR MORE INFORMATION
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 www.myflorida.com/dor. 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
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