Florida sales taxes
 

Confused or misled?

I'm having modifications done outside the house, on the driveway specifically. Got the bid and it includes 7% tax. Also having work planned for upgrading the garage. Got the bid; no tax included in the price. Are inside and outside contracted work taxed differently, or is one contractor padding the bill and the other guy is eating the tax?

This might help, What transactions are subject to the sales tax in Florida?, other option would be to call the sumter county office and ask them. I did not see a detailed list.

Years ago Home Depot did a kitchen installation for me and there was no sales tax. If I bought cabinets from them(only) and was told that the cabinets only were taxable. Told me that complete job was a service and not taxable. Looks like the outside contractor is charging you 7% for tax and putting it in his pocket

Florida Sales & Use Tax for Construction & Improvements = https://www.floridarevenue.com/forms...t/gt800067.pdf

Florida sales tax is sometime confusing. For example, if you buy a newspaper from a retail store (i.e., 7-11), it is subject to sales tax. If you buy the same newspaper from a vending machine is not subject to sales tax. If you buy pine straw from a big box store, it is taxable. If you buy the same pine straw from the farmer (producer), the pine straw is not subject to sales tax. Florida sales & use tax law is very specific.

Get another estimate and see if it’s taxed.

Generally speaking, the materials for the job would be subject to the tax, but not the labor. That's corroborated by that link above.

If they are trying to tax you on the labor, either they don't know the law, or are trying to squeeze you.

If you really want to avoid sales tax from someone you are employing.
Sort of ask is there a difference if you pay cash.
There are many who will jump at this.

I had one contractor tell me the estimate was if paid by credit card. If I paid by check price was 5% less and actual cash was 10% less.

I was charged a tax
I was also told if I used a credit card I would be paying 3.5% surcharge

"Generally, when installing or repairing tangible personal property, parts and labor are taxable. If the job is “labor only” it is not taxable, but the repairer must document that no parts or other items were incorporated into or attached to the repaired item." (Florida Department of Revenue)

Hope this helps.

Not true he is taxing the materials. Just like if you bought tires and had them installed tax on tires not labor to install.

Doesn't car washes charge you tax?

Is the tax for the soap or for the guys drying the car's labor?

I wouldn't pay tax on labor for work on my house.

It depends how the job is quoted. Generally improvements to real property are not taxable if quoted as a lump sum. If the materials are invoiced separately they are subject to tax, the labor is not.

If quoted as a lump sum the contractor pays sales tax when he purchases the materials.

I have a client that installs high end cabinets in homes. He charges no sales tax to the customer. If he installs an island that is permanently attached to the home - no sales tax. If the island is on wheels it is considered tangible personal property and my client charges sales tax.

If you are installing a driveway and are being quoted a lump sum there should be no sales tax.

I have a similar question regarding renting a home. We’ve been coming here for 20 years, renting 5 different houses. Only one charged 7% tax. What’s with that?

That’s a whole lot smarter than buying right now. It’s cheaper to rent than buy AND the property taxes are unreasonably high. Buying a newer home you are into about 10k annually for taxes (with bond) on a 500,000 dollar home.

Tax must be paid for rentals less than six months.
From a floridarevenue site:

What is Exempt?
Rental charges or room rates paid by a person who entered into a bona fide written lease for continuous residence for a period longer than six months are exempt.

I don't know what the rules might be for including tax in the listed rental price.

If it is a 6 month or less rental, tax is due and must be paid by the landlord to the state. If it is not paid, the state will come after him. If he is not charging you the tax explicitly, then he is probably just burying in the rate he is charging you. Charge you 10% more and pay the state 7%.