Beginning on or after October 1, 2018, anyone who purchases or
registers a motor vehicle qualifying for the Hope Scholarship Program
in Florida may designate $105 of the state sales tax due at the time
of purchase or registration to an eligible nonprofit
scholarship-funding organization (SFO) participating in the Program.
If the state sales tax due is less than $105, the designated amount
would be the state sales tax due.
Example 1: A purchaser buys a motor vehicle from a
dealer with a taxable sales price of $25,000 in a county that imposes
a 1% discretionary sales surtax. The 6% state sales tax is $1,500. The
amount of discretionary sales surtax is $50. The purchaser elects to
contribute to an eligible SFO. The dealer would remit $1,445 to the
Department and $105 to the SFO.
| Sales price: |
$ |
25,000 |
|
Total Tax and Surtax Due: |
$ |
1,550 |
| 6% state sales tax: |
$ |
1,500 |
|
Contribution to SFO: |
$ |
105 |
| 1% discretionary sales surtax: |
$ |
50 |
|
Sales Tax Due to DOR: |
$ |
1,445 |
|
$ |
26,550 |
|
|
|
|
Example 2: A purchaser buys a motor vehicle from an
individual with a taxable sales price of $1,000 in a county that
imposes a 1% discretionary sales surtax. When the purchaser registers
the vehicle with a private tag agent or county tax collector, the
purchaser pays the sales tax and surtax due to the private tag agency
or county tax collector. The 6% state sales tax is $60. The 1%
discretionary sales surtax due is $10. The purchaser elects to
contribute to an eligible SFO. The private tag agent or county tax
collector would remit $10 to the Department and $60 to the SFO.
| Sales price: |
$ |
1,000 |
|
Total Tax and Surtax Due: |
$ |
70 |
| 6% state sales tax: |
$ |
60 |
|
Contribution to SFO: |
$ |
60 |
| 1% discretionary sales surtax: |
$ |
10 |
|
Sales Tax Due to DOR: |
$ |
10 |
|
$ |
1,070 |
|
|
|
|
Example 3: An out of state resident buys a motor
vehicle from a Florida dealer for a taxable sales price of $10,000.
The out of state resident completes and provides the dealer with
notice of their intent to license the vehicle in their home state. The
home state imposes a 2% sales tax. The dealer will collect $200 sales
tax. The purchaser elects to contribute to an eligible SFO. The dealer
would remit $95 to the Department and $105 to the SFO.
| Sales price: |
$ |
10,000 |
|
Total Sales Tax: |
$ |
200 |
| 2% state sales tax: |
$ |
200 |
|
Contribution to SFO: |
$ |
105 |
|
$ |
10,200 |
|
Sales Tax Due to DOR: |
$ |
95 |
"Motor vehicle" means any automobile, truck with a net vehicle weight
of 5,000 pounds or less and any other vehicle operated on the roads of
Florida, used to transport persons or property, and propelled by power
other than muscular power. Heavy trucks, truck tractors, trailers,
motorcycles, and mopeds are not "motor vehicles" for purposes of the
Hope Scholarship Program.
Motor vehicle dealers, private tag agencies, and county tax collectors
are required to provide a
Hope Scholarship Program - Contribution Election
(Form DR-HS1
) to each purchaser or registrant of a qualified motor vehicle. If
the purchaser or registrant chooses not to contribute, the Form DR-HS1
does not need to be completed or retained. The dealer, agency, or
county tax collector receiving the contribution must remit the
contribution directly to the designated nonprofit scholarship-funding
organization. If you have questions about the contribution remittance
process, contact the designated nonprofit scholarship-funding
organization.
Motor Vehicle Dealers, Private Tag Agencies, and County Tax Collectors
Beginning on or after October 1, 2018, motor vehicle dealers, private
tag agencies, and county tax collectors receiving contributions for
the Hope Scholarship Program must report the amount of contributions
received during each reporting period to the eligible nonprofit
scholarship-funding organization designated and to the Department.
The fastest and easiest way to complete the
Hope Scholarship Program - Dealer Contribution Collection
Report
is
online. You may also report by submitting the paper
Hope Scholarship Program - Dealer Contribution Collection
Report
(Form DR-HS2
).
Reports by motor vehicle dealers and
private tag agencies are due on the 1st day of the
month following the sales and use tax reporting period and are late
after the 20th day of the month following each reporting period. If
the 20th falls on a Saturday, Sunday, or a state or federal holiday,
the report will be timely if received on the first business day
following the 20th.
Reports by county tax collectors are due at the same
time sales and use tax reports and payments are due to the Department,
as prescribed in Section 219.07, Florida Statutes.
Motor vehicle dealers, private tag agencies, and county tax collectors
who had no contributions to collect or report during a reporting
period are not required to file a report (Hope Scholarship Program - Dealer Contribution Collection
Report) for that reporting period.
Reporting Tax Credits
Motor vehicle dealers, private tag agencies, and county tax collectors
receiving contributions of state sales tax Hope Scholarship Credits
must report the contributions on their sales and use tax returns for
reporting periods beginning on or after October 1, 2018. The total
amount of tax due reported on the tax return for vehicle sales or
registrations must include the total state sales tax and discretionary
sales surtax due before deducting the contribution of state sales tax
to the Hope Scholarship Program from the sales tax and surtax due to
the Department. For more information, see
Tax Information Publication #18A01-16.
Nonprofit Scholarship-Funding Organizations
Nonprofit scholarship-funding organizations receiving contributions
must file a
Hope Scholarship Program - Contributions Received by an Eligible
Nonprofit Scholarship-Funding Organization
(Form DR-HS3
) with the Department each month. The report must contain the
contributions received from each motor vehicle dealer, private tag
agency, and county tax collector during the reporting month. Reports
are due to the Department on or before the 20th day of the month
following the month of collection. If the 20th falls on a Saturday,
Sunday, or state or federal holiday, the report must be received on
the first business day following the 20th.
Any motor vehicle dealer, private tag agency, county tax collector, or
eligible nonprofit scholarship-funding organization that fails to file
a required report is subject to a penalty of $1,000 each month, or a
portion of a month, up to $10,000.
Florida law requires the Department to notify an eligible nonprofit
scholarship-funding organization upon a finding that a motor vehicle
dealer, private tag agency, or county tax collector claimed a Hope
Scholarship Program sales tax credit and failed to remit a
contribution to the affected organization. The notification will
include the name, address, federal employer identification number
(FEIN), and information related to the difference between the amount
of credit claimed and the contribution amount remitted to the
organization.
